Features of education financing in developing countries

Comparative Analysis of Education Financing Models in Selected Countries, 2022

It is universally agreed that no prosperity and economic growth can be achieved without proper education. As it is basis for development and social welfare, every government must be in charge of education. Funding of higher education by the state is one of vital importance for the social and economic development of the country. Depending on the current legislation, the principle of the purpose and efficiency of expenditures in the program budget is a requirement of the state, which, as the research has found, is executing ineffectively at this stage and demands fundamental changes. Finally, it should be noted that science is developing day by day. Tasks that we perform today will be implemented by technologies tomorrow, in less time. That is why the state should make more emphasis on areas that will guarantee tomorrow days’ success and not the useless expense as we have today.

JISR management and social sciences & economics

This study aims to identify a sustainable financing solution for developing the education sector in low-income countries. The United Nations underlines education as a means to achieve sustainable development in its fourth Sustainable Development Goal. Quality education can be crucial in bringing about global peace and prosperity by improving human capital and producing future leaders capable of efficient problem-solving and social transformation. However, imparting quality education is difficult when adequate resources and revenue are lacking. In this respect, the education sectors of most developing countries are resource-constrained, and thus, cannot achieve the fourth sustainable development goal by 2030. To address these confronting challenges, our study proposes the formation of an “Education Development Bank”, particularly in developing countries. It asserts that an independent corporation may provide sustainable financing solutions to bolster the education sector and related ...

Fundamental approaches to financing the education sector depend on economic and political management models applied in countries. Economic conditions have a significant impact on the education system. The public sector of education gradually changes according to the principle of self-sufficiency. At the same time, the development of a market economy, taking into account the tendencies of the formation of a postindustrial society, leads to an increase in the need for education and, above all, in higher education in the areas of high technology. Both education and science require significant investment, not providing a quick return. This part of the budget is costly and accounts for a fairly large share of GDP. How do countries with different supply of natural resources come out of this difficult situation? What trends can be traced in the financing of education? The objective of the paper is a retrospective analysis of the financing of education (in % of GDP) in the countries of the world, depending on what proportion of GDP is made up of natural resources. In authors' opinion, it determines a strategy of long-term investments in human resources with varying degree of availability of natural resources. The authors use comparative analysis of data from open sources of the World Bank. Presenting free access to statistical information about development indicators around the world, the World Bank makes it possible to conduct such retrospective studies.

The Sustainable Development Goals (SDGs) are ambitious, and this ambition needs to be reflected in financing options created in order to achieve these goals by 2030. As with the rest of the SDG agenda, SDG 4 sets the bar high with its commitment to “provide equitable and inclusive quality education and life-long learning opportunities for all,” including “free, equitable and quality primary and secondary education.” Similarly, the Incheon Declaration, the outcome of the 2015 World Education Forum, calls for “the provision of 12 years of free, publicly funded, equitable quality primary and secondary education, of which at least nine years are compulsory, leading to relevant learning outcomes.” These global development aspirations, however, come at a time of pressing emergencies and vulnerable financial markets. At the Third International Conference on Financing for Development (FfD), which took place in Addis Ababa, July 2015, UN Secretary-General Ban Ki-moon argued enthusiastically that “this conference is the starting point in a new era of cooperation and global partnership.” With regard to financing for education, it remains to be seen to what extent Addis can be considered a new starting point. This brief aims to shed some light on financing for education, the current gaps, and the opportunities created at the most recent global conferences. The education diplomacy perspective can help make sense of various negotiation streams and outcome documents and provide opportunities for follow-up and implementation on the one hand and further expansion and refinement of financing options for education in the 2030 development agenda on the other hand.

Handbook of Development Economics, 2007

The funding of education sector in both developed and developing economies across the globe is to ensure the welfare of citizens. In most developed countries, the education sector feeds the industries with trained personnel while the goods and services produced by the industries lead to the growth and development of their economies, consequently improving the welfare of their citizens. The objective of this study is to investigate empirically whether the funding of the Nigerian education sector over the years has any significant impact on the welfare of Nigerians. The study adopted the Ordinary Least Square technique using data obtained from World Bank and Central Bank of Nigeria Statistical Bulletin of relevant years covering a period of 36 years (1977 - 2012) and using appropriate explanatory and criterion variables as proxies. Major findings include: strong positive correlation between expenditure on education sector and welfare of Nigerians which is not significantly affected by inflation rate; unidirectional granger causality running from recurrent expenditure to GDP per capita; significant impact of expenditure on education sector on welfare of Nigerians with recurrent expenditure having the significant impact, not capital expenditure; amongst others. Policy implications include: the need for government policies towards: increasing expenditure in the education sector (especially capital expenditure); monitoring and supervision of expenditure to ensure higher levels of accountability and high quality service delivery; periodic review and update of accounting and finance procedure, records and reporting in this sector in conformity with IPSAS standards with the view to enhancing the welfare of Nigerians.

2007

In developing countries, rising incomes, increased demand for more skilled labor, and government investments of considerable resources on building and equipping schools and paying teachers have contributed to global convergence in enrollment rates and completed years of schooling. Nevertheless, in many countries substantial education gaps persist between rich and poor, between rural and urban households and between males and females.

In this report, we will discuss the types of education in its various stages, including formal, informal, non-formal, and distance educations, as well as online learning and blended teaching. We explore several issues of education development in developing countries in the 21 st century. These issues include the following topics: Knowledge and learning skills, budgeting and management practices, immigration and brain drain, education and birth control; primary education outcomes, information gaps, improved knowledge about what students are learning and enhancing classroom practice. In conclusion, we present recommendations to fulfil the United Nation's vision of 2030 by providing opportunities for education for all.

1986

Recent research findings on the economic implications of investments in the quality of education are examined in this report. "The Quality of Education and Economic Growth: A Review of Literature" (Lewis C. Solmon) reviews evidence on ways to develop educational policy that would stimulate economic growth in developing countries. "School Quality and Economic Growth in Mexico" (Bruce Fuller, Kathleen Gorman and John Edwards) directly assesses the contributions of education to early agricultural and industrial growth in Mexico between 1880 and 1945. "The Stages of Growth in Educational Systems" (C.E. Beeby) examines the nature of change in education systems (stages.of growth, qualitative changes in the classroom, and external constraints of changes) and the conditions necessary for this change. Finally, the reports on eight operational sessions--the administration of school systems, examination and selectiofi policies, promotion and retention practices, teacher training, time on task, prevocational subjects, production and distribution of textbooks, and electronic media--are summarized under the title "Lessons from Bank Experience". A bibliography of World Bank research on the quality of education in developing countries is included. (SY)

1996

The views expressed in the papers are those of the authors and do not necessarily represent the official policy of the Bank. Rather, the papers reflect work in progress. They are intended to make lessons emerging from the current work program available to operational staff quickly and easily, as well as to stimulate discussion and comment. They also serve as the building blocks for subsequent policy and best practice papers.

Higher education in most of the country contributes to the human development to promote highly educated society in order to keep stability in economy, social, and political. In order to promote sustainable development, the role of higher education is very important because the governments in most developing countries provide strong funding capacities to their higher education institutions. Therefore, the strategic funding approach that based on the performance based become very popular to be implemented to increase the accountability and transparency.

SSRN Electronic Journal, 2017

Developing countries intensively promote education abroad through financial aid policies. While some financially support students with scholarships, other countries prefer to provide loans. This paper provides a novel data-set containing characteristics of worldwide government-funded scholarship and loan programs supporting education abroad. The data allows us to identify unique stylized facts on these financing policies for middle and low income countries. We find that scholarship programs more frequently select students based on merit criteria, target graduate and postgraduate study level, and require recipients to return after studies than loan programs do. We build a two-country student migration model with government intervention to qualitatively account for the observed patterns. In our model, government intervention is justified for two reasons. First, students from a developing country are financially constrained and cannot afford education abroad. Second, the government values the productivity of "returnees" higher than the market does. We argue that when students are uncertain about their future productivity and may fail at their studies, scholarship programs can insure them against potential default. Consequently, if students differ in their expected ability, under certain conditions a government with a tight budget will prioritize ex-ante high-ability students and support them with scholarships with the return requirement, and support ex-ante low-ability students with loans without the return requirement.