Filling the financing gaps in basic education the case for - - PowerPoint PPT Presentation

Filling the financing gaps in basic education – the case for innovative finance

UNESCO Future Seminar - 14 September 2010 Kevin Watkins Director, Education for All Global Monitoring Report

EFA Global Monitoring Report

Education for All Global Monitoring Report

Why innovative financing (IF) – and why now?

• Despite progress, EFA 2015 project is facing a

crisis

• Financing deficits are holding countries back
• Unlike health, education is not on IF map
• Key role of education for MDGs, employment,

and ‘knowledge societies’

• Political momentum is gathering – and UNESCO

should be seizing opportunity

• IF is about more than financing – galvanising

new partnerships, building momentum, links to G20 and G8

Education for All Global Monitoring Report

Some issues for debate

• Identify how education fits into IF ‘big

picture’ and distinctive elements

• Communicating the argument
• Strategy-free smart arguments don’t

deliver results

Education for All Global Monitoring Report

2008 2009 2010 2011 2012 2013 2014 2015

56 million

8 million 23 million

Rest of the World South and West Asia 39 million

Sub‐Saharan Africa

45 million

20 40 60 80 100 120

Out-of-school children (millions)

East Asia and the Pacific

2000 2001 2002 2003 2004 2005 2006 2007

32 18

9 6 3

72 million

1999

6 8 4

105 million

Out-of-school children

Arab States Latin America and the Caribbean

The EFA crisis – a snapshot

East Asia and the Pacific Arab States Latin America and the Caribbean

• Still 56 million children out of school in 2015
• Progress is slowing

Education for All Global Monitoring Report

Wider problems in equity and quality

• Child hunger undermining learning
• Persistent inequalities and highly

marginalised groups getting left behind

• Conflict-affected states and populations

face grave difficulties

• Chronic problems in quality
• Challenges in secondary and tertiary

Education for All Global Monitoring Report

The EFA financing gap

• Confusion over the ‘gap’
• GMR estimate based on adaptation of input-
• utput model for UPE + by 2015
• Factors in ‘best endeavour’ by aid recipients
• Covers three levels

– Early childhood – Primary – Lower secondary

• Includes estimate for reaching marginalised

Education for All Global Monitoring Report

The Education for All financing gap

Additional aid to basic education if Gleneagles commitments are met In 2010 Current aid to basic education

Aid shortfall $ 11 billion

Estimated current resources $ 12 billion

Additional resources from prioritization

EFA financing gap $ 16 billion

5 10 15 20 25 30 35 40

$ 3 billion $ 4 billion

Average annual resources needed to finance EFA (2009‐2015) US$ 36 billion

Additional resources from growth $ 3 billion $ 2 billion

Education for All Global Monitoring Report

Getting left behind – aid for health and education

Education for All Global Monitoring Report

High levels of innovation in health

• Global Fund – UNITAID, Red, Gates
• Gavi – IFFIm bonds and Advanced Market

Commitments (commercial banks)

• High-level task force on IFHS
• Strong focus on results and country-level

action

• Developed multilateral mechanisms
• Some ‘vertical’ problems in skewing

priorities

Education for All Global Monitoring Report

Current context – and EFA opportunities

• Resurgence of interest in IF linked to financial

crisis, aid pressure, and MDG shortfalls

• Momentum behind financial sector taxes

– Welcome back James Tobin – ‘Robin Hood’ (NGOs + several governments) tax on all financial transactions – Swedish ‘stability fee’/US ‘responsibility fee’ – IMF tax on profits and bonuses

• Proposals for scaling-up existing mechanisms
• New options under review– from mobiles to migrants

Education for All Global Monitoring Report

Issues for EFA leaders

• Scale, feasibility and political attainability
• Go for a twin track strategy – global MDGs plus EFA
• Consider scale/efficiency Vs attribution/communication
• Look beyond education to integrated MDG approach

and UN political strategy on financial taxes

• Identify EFA partnerships on IF (business, NGOs)
• Recognise dangers of proliferating vertical funds
• Aim at real new money, not repackaging, front-loading or

‘results-based’ aid conditionality

• Establish credible delivery mechanisms to achieve…
• ….clear human benefits

Education for All Global Monitoring Report

• “Any new funding mechanism and its instruments should

satisfy several criteria:

– They should be related to areas that depend on or benefit from global interdependence, multilateralism and collective security; – They should be universal in outreach and applicability; – They should be able to yield financial resources commensurate to the global needs; – Their yields should be predictable and assured for a considerable period

• f time;

– The collection of the revenue should not be cumbersome; – They should avoid economic distortions to the extent possible; – They should preserve a sense of joint “ownership” among all involved and therefore be perceived as just and equitable.” Towards a new multilateralism: Funding Global Priorities, 1995