1

Recent Developments in Financing for Education in Low-Income

Countries: Implications for Girls and Women

Bob Prouty

EFA FTI Secretariat

CIES Gender Symposium

March 18, 2008

Outline

• Trends for coordination of financial support to education sector plans– Gender implications

• Trends in domestic financing for education in low-income countries– Gender implications

• Trends in external financing for education in low-income countries

• World Bank trends as a precursor?– Gender implications

• Trends in girls’ enrollment

The FTI Compact

Low-income countries:Low-income countries: • Prepare sound national education plans • Allocate adequate share of the national budget to

education

Donors:Donors: • Mobilize additional resources• Make aid more predictable

Goal:Goal: • Accelerated progress toward universal learning

Gender Implications of FTI Processes

• Opportunity to ensure gender lens applied to preparation of ed sector plans by national governments

• Opportunity to ensure consistent approach and support by donor partners

• Risk that non-primary sub-sectors will receive less

Domestic Financing Trends

• GMR 2008 reports a mixed picture

• Sub-Saharan Africa, Central Asia performing well

• 9 of 14 LICs with >1% increase in share of GNP for education are FTI-endorsed

FTI Countries pay most of the education bill themselves

Typically, in FTI countries 70 to 80%70 to 80% of education costs are financed domesticallyfinanced domestically

Domestic Funding

Bilaterals

Multilaterals

FTI Catalytic Fund

External Aid

Yemen

Tajikistan

Senegal

Sao Tome & Principe

Moldova

Nicaragua

Lesotho

Kyrgyz Rep.

Guyana

Guinea

Gambia

Ethiopia

Cameroon

Cambodia

Albania

-2,0

-1,5

-1,0

-0,5

0,0

0,5

1,0

1,5

2,0

2,5

3,0

-6,0 -4,0 -2,0 0,0 2,0 4,0 6,0 8,0 10,0

PCR annual increase 2000-2005 (percentage points)

Relationship between Education Expenditure and Primary Completion in FTI Countries

Gender Implications of Domestic Financing Trends

• Sustainability– If it is to be sustainable over time, it will need

to be included in government budgets and supported through domestic resources

• Effectiveness– Increased financing, coupled with solid

policies, leads to more girls completing school

0

1

2

3

4

5

6

7

1999

2000

2001

2002

2003

2004

2005

2006

2002

2003

2004

2005

2006

Commitments Disbursements

US

$ b

illi

on

s (c

on

stan

t 20

06)

Total

Basic

Secondary

External Financing for Education in Low Income Countries

Education Aid Flows in Low Income Countries

3.3 3.5

1.9

5.6

6.5

1.9

0.9

3.0

4.1

1.6

0.9 1.0

0.3

0.4

0

1

2

3

4

5

6

7

1999 2000 2001 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006

Commitments Disbursements

US

$ b

illi

on

s (c

on

stan

t 20

06)

Total

Basic

Secondary

Girls’ Education Lending, IDA

0.000% 0.005% 0.010% 0.015% 0.020%

Norway

Netherlands

Ireland

United Kingdom

Canada

New Zealand

Sweden

Denmark

Belgium

France

Luxembourg

Australia

P ortugal

J apan

United States

Germany

Spain

Switzerland

Italy

Austria

Greece

Finland

2002

2005

ODA to Basic Education in Low-Income Countries as a Percentage of GNI

Austria

IDA

UnitedStates

UnitedKingdom

EC

Japan

Netherlands

Canada

France

Norw ay

Germany

Sw eden

Ireland

Australia

Denmark

Spain

Belgium

Italy

Portugal

New Zealand

Luxembourg

Sw itzerland

Greece

0%

20%

40%

60%

80%

100%

0% 10% 20% 30% 40% 50%

Share of education in sector-allocable ODA

Sh

are

of b

asi

c e

du

catio

n in

ed

uca

tion

OD

A

Share of Education and Basic Education in ODA Disbursements from DAC Countries to Low-Income Countries in 2005

Leveraging policy change?

• FTI countries show increased hours of increased hours of schoolingschooling

• FTI countries lower repetition rateslower repetition rates much faster than others, with high PCR gains

• FTI countries that have abolished user abolished user feesfees see faster PCR gains

Source: FTI Annual Report 2007Source: FTI Annual Report 2007

A Shift in IDA Financing—Primary as % of Total Education Credits

• 1990-94 42

• 1995-99 45

• 2000-2004 46

• 2005-2007 29

Emerging Trends: IDA CreditsSecondary vs. Primary

• 1990-94 23 %

• 1995-99 19 %

• 2000-04 19 %

• 2005-07 57 %

Gender Issues Linked to External Financing Trends

• How to ensure predictable financing • How to protect financing for primary • How to ensure shift toward secondary

gives due attention to gender issues• How to finance marginalized populations• How to increase financing, and spread it

more evenly among donors• How to leverage positive change on

gender issues

Girls’ Access Trends--Primary

• 1990-94 from 77% GER to 78%

• 1995-99 from 78% GER to 80%

• 2000-05 from 81% GER to 99%

Male and Female GER—Upper Secondary

Benin Burkina Faso

Guinea Ethiopia Mozambique Mauritania Djibouti Yemen

Girls 14 5 14 11 3 19 13 25

Boys 27 9 27 20 5 22 21 55