Results-Based Financing and Output-Based Aid in Education · • Financing gap: $22 billion per...
Transcript of Results-Based Financing and Output-Based Aid in Education · • Financing gap: $22 billion per...
Results-Based Financing and Output-Based Aid in Education
Nicholas Burnett, Managing Director, Global Education, R4D
Inga Afanasieva, Infrastructure Specialist, World Bank
February 10, 2016
• Results-based financing and its application in education
• How output-based aid is a solution to providing access
to quality education
• Project example: Vietnam Upper Secondary Education
• OBA in education: key takeaways
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Presentation outline
Education sector overview: key challenges
• Access
– 1 in 6 children in low- and middle-income countries will not complete primary school
– 58 million children out of school
• Literacy
– 250 million children failed to learn minimum literacy standards by grade 4
– Adult illiteracy: 781 million illiterate adults
• Learning
– East Africa (Uwezo)
• Over 2/3 of Grade 3 students cannot pass Standard 2 assessments
• 1 in 5 Grade 7 students cannot pass Standard 2 assessments3
Education sector overview: key challenges
• Skills
– Global labor market 2020: 45 million medium skilled worker shortages but 95 million low skilled worker surplus
• Financing gap: $22 billion per year
– Aid for education and for basic education increased initially, then stagnated, now declining
• Growth of private sector
– Increasing number of private sector actors in education. Increases access and promotes competition, but mixed government attitude towards private education in some cases.
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Education sector overview:
differentiating characteristics
Education sector differs in 6 key ways, having implications for RBF and OBA
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1. Public vs. private engagement
2. Costs and user fees vary dramatically
3. Measuring results: access vs. quality
4. Lack of evidence
5. Human resources: Teachers
6. Recurrent costs
Education sector overview: Types of interventions
Education interventions
Provide
information
Reduce costs
Readiness
ResourcesTeachers
Pedagogy
School management
• School lunch
• ECD
• CCTs
• Scholarships
• Subsidies
• Vouchers
• Training
• Provision
• Incentives
• School construction
• Teaching materials
• Innovative
pedagogy
Adapted from: Krishnaratne et al. 2013
Education sector overview: Results chain
Inputs* OutputsIntermediate
OutcomesOutcomes Impacts
• School
construction
• Classroom
materials
• Textbooks
• ICT equipment
• Teachers
• Etc.
• # schools
constructed
• # teachers
trained
• # textbooks
distributed
• Etc.
• Attendance
rates
• Enrollment
rates
• Drop-out
rates
• Test scores
• Literacy and
numeracy rates
• Employment
rates
• Salaries
• Educated populace
• Employment rates
• Income
Example components of results chain in education:
*Highlighted in red are outputs/outcomes to which GPOBA could disburse payments.
Types of Schemes
RBF in education may provide funds to government, service providers, and/or students and families
Targeting national governments
Targeting service providers
Targeting students/households
Cash on Delivery (COD)World Bank PforRDebt-swaps Loan/debt buy-downs
Output-Based Aid (OBA)Social impact bonds (SIBs) and
development impact bonds (DIBs)
Conditional Cash Transfers (CCTs)Performance-based scholarships
RBF IN EDUCATION
Examples of schemes in education:
COD project in Ethiopia (DFID)
World Bank RBF (Brazil, Indonesia, Jamaica, Pakistan, Tanzania)
OBA in Vietnam (GPOBA)
Educate Girls DIB, Rajasthan (UBSOF/CIFF)
CCTs (e.g. Brazil Bolsa Familia)
Scholarships (e.g. Bangladesh)
Growing but limited experience and actors in RBF and RBA in education
Additional developments in RBF in education
REACH: a new Norad trust fund within the World Bank
GPE funding: now 30% results-based
Current LandscapeRBF IN EDUCATION
Definition of OBA in Education
“A form of results-based financing in which service providers are contracted
to improve education access and/or quality, especially for
disadvantaged populations, whereby service providers assume some
degree of performance risk for specific outputs/outcomes upon
which payments are contingent.”
Vietnam Upper Secondary Education Enhancement Project (2010-2013)
Program students demonstrating adequate GPA, attendance, and behavior receive tuition subsidies from schools
EMWF provides funds to schools after receiving reports of student performance
GPOBA provides funds to EMWF
• 12 provinces
• 7,500 students
OBA PROJECT EXAMPLE
Project scoping and analysis
EAST ASIA &
PACIFIC (EAP), 1
LATIN AMERICA &
CARIBBEAN
(LAC), 3
SOUTH ASIA (SA),
11
SUB-SAHARAN
AFRICA (SSA) , 8
REGION
EARLY CHILDHOOD EDUCATION, 2
LOWER SECONDARY, 11
PRIMARY, 11
SECOND CHANCE, 1
UPPER SECONDARY, 10
VOCATIONAL, 6
EDUCATION SUBSECTOR
OBA IN EDUCATION
How has OBA been applied to date
• Subsidize fees
• Incentivize targeting
• School construction
• Program financing
• Incentivize improved enrollment/retention/completion rates
Improve access
• Incentivize improved learning outcomes
• Provide inputs (books, teacher training, etc.)
• Incentivize improved employment ratesImprove quality
• Emphasizes increased efficiency and autonomy through a focus on results Improve system
(e.g. low equity, high tuition or
household costs)
(e.g. low learning levels, disconnect
between education and labor market)
(e.g. inefficiencies, lack of service
provider autonomy or competition)
OBA IN EDUCATION
Key takeaways from scoping study
1. OBA can address a wide range of issues in education
Access, quality, system inefficiencies
2. OBA is a promising instrument for targeting disadvantaged
populations
E.g. poor, girls, orphans, disabled, minorities
3. Government buy-in is a key determinant of project
sustainability
4. M&E is key
Incorporate evaluation into project design
OBA IN EDUCATION
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Recommendations: Areas for OBA application
Subsectors Vocational training (formal)
Skills training (informal)
Secondary education
Early childhood education
Higher education
Target groups Poor and disadvantaged
Disabled
Minorities
Girls
Children of nomadic families
Illiterate adults
Interventions Tuition subsidies or bonus
payments
Learning materials
Teacher training
PPPs
Country contexts Decentralized education systems
Favorable to private sector
High inequity in education
NEW REPORT
Paying for Performance: An Analysis of Output-Based Aid in Education
Interested in learning more about this topic?
Visit: www.r4d.org/obareport
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Questions
Results-Based Financing and Output-Based Aid in Education
Contact information
Inga Afanasieva
Nicholas Burnett
Questions or follow-up?