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Education investment and commitment: reassessing the international benchmarks Albert Motivans UNESCO Institute for Statistics IWGE 2010, Stockholm 7 June 2010 UNESCO INSTITUTE for STATISTICS UIS and global education finance data The UNESCO Institute for Statistics: Collects national domestic finance data annually Disseminates data three times a year on the UIS Data Centre which is revised retrospectively based on new GDP estimates Uses and interprets data • • Impact of financial crisis on education budgets (2009) Financing education in Africa (with Pole de Dakar and IIEP in 2010) Provides technical assistance/data quality diagnoses • • Sustainable reporting of financing data in sub-Saharan Africa review follow-up) Data quality assessment framework (DQAF) UNESCO INSTITUTE for STATISTICS (sector The global distribution of education spending, 2007 Public education expenditure (billion PPP$) United States 726.9 TOTAL 784.1 Arab States (15/20) Central/Eastern Europe (18/21) Central Asia (7/9) 219.7 8.7 Latin America/ Caribbean (35/41) 260.1 South/West Asia (7/9) 153.7 Sub-Saharan Africa (38/45) UNESCO 88.1 53.8 INSTITUTE for STATISTICS Source: UNESCO Institute for Statistics, 2010 The investment to educate a child One year of primary school, PPP$ UNESCO Czech Rep. Kuwait Seychelles 2,508 2,618 2,803 Estonia 2,896 Poland Rep. Korea Hungary 3,041 3,910 3,978 INSTITUTE for STATISTICS Source: UNESCO Institute for Statistics, 2010 Risks in benchmarking public education spending Crude measures of macro-level inputs Missing a big part of the picture where household contributions are not counted Likewise miss the contributions from local and regional governments Relying only on relative measures one can lose sight of absolute needs Missing the underlying story of the conditions that influence spending/costs UNESCO INSTITUTE for STATISTICS Accounting for national contexts Overall proportion of and growth rates of the school age population Coverage of the education system • The roles of government and societies • years of primary schooling, hours of instruction Quality of education provision • Redistributive or direct channel for families Volume of education provision • even by single grades! teaching standards, teaching/learning environment Efficiency of education provision • repetition, retention and completion UNESCO INSTITUTE for STATISTICS Different levels of capacity and demand imply different resource needs 160 Sierra Leone Group A Brazil Guyana Cambodia Sao Tome Lesotho 140 Primary GER 2005 Russian Fed. Group B Madagascar Gabon Nepal Belize Rwanda 120 Guatemala Equat. Zambia Malawi Guinea 100 Yemen Congo Afghanistan Gambia Guinea UAE Senegal Chad PNG Cote d'Ivoire Mali Eritrea Sudan Burkina Faso CAR 80 60 Group C Djibouti 40 40 60 80 100 120 140 UNESCO declining population increasing population INSTITUTE for STATISTICS Primary school age population (1995=100) 160 The traditional benchmarks Investment/cost • • Per pupil public expenditure (PPP$) Per pupil public expenditure as a share of GDP per capita Effort/commitment • • • Public education expenditure as a share of national income (GDP) or per capita Public education expenditure as a share of government budget (TGE) Share of education expenditure by source of funds UNESCO INSTITUTE for STATISTICS Investment/cost Per pupil expenditure is calculated as the annual expenditure (recurrent or total) divided by the number of pupils Countries range from 2% to 25% and less than PPP$100 to more than PPP$15,000 Often presented as ‘unit costs’ but only represents part of total costs; better described as public investment per pupil Two complementary measures • • Relative (as a % of GDP per capita) allows cross-national comparisons Absolute measures (in PPP$) allow assessment of its sufficiency UNESCO INSTITUTE for STATISTICS Relative and absolute measures of per primary pupil public expenditure in SS Africa, 2008 1,600 35 % GDP per Capita 30 Expenditure in PPP$ 1,200 25 1,021 20 806 800 15 461 346 314 400 10 263 162 156 132 110 5 94 83 81 77 76 75 72 61 51 Expenditure as a % of GDP per capita PPP $ 1,386 39 0 N So ut h Af ric a Bo am t s ibia w C ana ap e -1 Ve r Bu Le de rk so in a t ho Fa s Ke o-2 ny a2 N ig Be e r n C in-2 om C oro am s er oo n R Ma w an li da M U -1 oz ga am nd bi a qu e To -2 Et go1 h M iop ad iaag 1 C as en c t ra Bu ar lA ru n f ri E ca rit di n r R ea ep -2 ub lic -1 0 Note: -1 data refer to 2007; -2 data refer to 2006 Source: UNESCO UNESCO Institute for Statistics. INSTITUTE for STATISTICS Source: UNESCO Institute for Statistics, 2010 Effort/commitment, I The share of national income (GDP) invested in education – often interpreted as a measure of commitment to education Countries range from less than 1% to 15% Often misapplied, e.g., ‘5-6% of GDP should be spent on education’ cited (based on OECD) Not always a good measure of government ‘effort’ because of differences in duration of schooling, coverage of education and other national contexts UNESCO INSTITUTE for STATISTICS Effort/commitment, II • The share of public expenditure invested in education – also interpreted as a measure of commitment to education • Countries range from less than 10% to 30% • Closer to commitment in that it represents the actual government budget constraints • Level highly dependent upon the role of governments and societies; whether governments play a redistributive role or families and communities are more directly responsible for the education of their children UNESCO INSTITUTE for STATISTICS Comparing national ‘effort’ from the perspective of fiscal space 100 Timor-Leste > 7.0 90 6.0-7.0 5.0-6.0 70 60 50 40 30 20 10 Cyprus-1 Higher share of public spending Total public expenditure as a percentage of GDP 80 2.5-5.0 Cuba <2.5 Maldives Belarus-1 Sweden-1 Belgium-1 Italy-1 Austria-1 Lesotho Guyana-1 Israel-1 Barbados Dominica Poland-1 Bulgaria-1 Samoa Spain-1 USA-1 Romania-1 Latvia-1 Slovakia-1 Paraguay-1 Yemen Anguilla Egypt Georgia Lebanon Iceland-1 Norway-1 Cape Verde South Africa Belize-1 Macao, China CAR-1 Tunisia-1Burundi Saudi Arabia Viet Nam Senegal** Malaysia-1Ukraine-1 El Salvador Colombia Bahrain Togo-1 Liberia Madagascar Cameroon Lao PDR Singapore Bangladesh Philippines-1 Azerbaijan Pakistan Cambodia-1 Moldova Botswana-1 Djibouti-1 Swaziland Namibia Kyrgyzstan-1 Tanzania Ethiopia-1 Costa Rica Morocco Vanuatu Nepal Algeria Burkina Faso-1 Mali Rwanda Côte d'Ivoire Thailand Tajikistan Hong Kong SAR Peru Guinea Higher share of education spending UAE 0 Note: -1 data 0 refer to 2007 5 Source: UNESCO Institute for Statistics. UNESCO 10 15 20 INSTITUTE for STATISTICS Expenditure on education as percentage of total public expenditure 25 30 Developing the measurement agenda Improve relevance of benchmark measures • • Improve comparative frameworks for measuring household contributions to education • Explore grade or school-year based measures of investments/costs Capture the full picture of investments/costs Reach consensus on what represents an education cost in different societies/economies Data/indicators that are needed to address emerging issues...open for discussion UNESCO INSTITUTE for STATISTICS