Education, a new area of action for innovative financing

2011-02-14 17:16:33

One of the first contributions highlighted the fragility of MDG-related developments in education : although access to primary education has seen a marked increase since 1990, progress has been in decline since the financial crisis (72 million out-of-school children), and the quality of education has not made similar progress. However, access to education is a key factor in the fight against poverty and for growth. Annual needs in terms of education not covered by ODA and domestic tax revenue are estimated at $16 billion per year. In response to this, the report by the Task Force on Innovative Financing for Education was the subject of a detailed presentation focusing on the two ideas explored : mobilizing a broad base of new resources (e.g. tax on international financial transactions, bonds for education in local currencies, Education Venture Fund, “diaspora” bonds, voluntary contributions from migrants, debt conversions for education, etc.) and actions aimed at ensuring greater visibility and mobilization concerning education for all (contribution to sports, public-private partnerships, micro-donations from individual bank transactions, etc.). There was a broad consensus for recognizing the need to focus greater attention on potential solutions that innovative financing could provide in the area of education and for developing the avenues set out in the experts’ report in 2011.

Leading Group on Innovative Financing for Development