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UNESCO INSTITUTE for STATISTICS Financing Education: Investments for the Future in Latin America and the Caribbean Third Meeting of Ministers of Education Albert Motivans UNESCO Institute for Statistics Mexico

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UNESCOINSTITUTE for STATISTICS

Financing Education:Investments for the Future in

Latin America and the Caribbean

Third Meeting of Ministers of Education

Albert Motivans UNESCO Institute for Statistics Mexico City, 12 August 2003

UNESCOINSTITUTE for STATISTICS

2

Data quality issues Coverage (private, local government) Comparability

Adopting and implementing upon a common framework and approach

Summit of the Americas technical assistance programme

World Education Indicators Programme Finance comparability study

Comparing education finance indicators

UNESCOINSTITUTE for STATISTICS

3

Investing in Education

1. Educational participation – past and future

2. Public and private funding for education

3. Resources per student and per school career

4. Meeting regional goals for 2010

UNESCOINSTITUTE for STATISTICS

4

A Latin American success story…

Source: UNESCO/OECD, 2003; OECD, 1999

02468

1012141618

Mea

n ye

ars

of s

choo

ling

Adult population School expectancy (5 year-old)

UNESCOINSTITUTE for STATISTICS

5

Expanding educational opportunities

Most countries are near UPE and some enrol more than 90 per cent of youth up to age 15

Secondary net enrolment rates have risen in the 1990s and range from 26 per cent (Guatemala) to 86 per cent (Bahamas)

Tertiary graduation rates are over 20 per cent in Chile and Argentina, but under 10 per cent in Brazil and Paraguay

UNESCOINSTITUTE for STATISTICS

6

The distribution of opportunities

Source: IDB as cited in Wolff and De Moura Castro, 2003

0

2

4

6

8

10

12

14

Mea

n ye

ars

of s

choo

ling

Richest 10% Poorest 30%

UNESCOINSTITUTE for STATISTICS

7

Education expenditure and primary enrolments, 1975 to 1997

0

50

100

150

200

250

5 10 15 20 25 30 35 40

Current Expenditure (billions of US$ 95)

En

rolm

en

t (m

illio

ns)

Sub-Saharan Africa

Arab states

Latin America / Caribbean

Eastern Asia / Oceania

Southern Asia

1997

1975

1975

1975

1975

1975

1997

1997

1997

1997

1997

UNESCOINSTITUTE for STATISTICS

8

Education expenditure and primary classroom inputs, 1975 to 1997

20

25

30

35

40

45

50

5 10 15 20 25 30 35 40

Current Expenditure (billions of US$ 95)

Pu

pil/

Te

ach

er

Ra

tio

Sub-Saharan Africa

Arab states

Latin America / Caribbean

Eastern Asia / Oceania

Southern Asia

1975

1997

1997

19971997

1997

1975

1975

1975

19751975

UNESCOINSTITUTE for STATISTICS

9

Education expenditure as a % of GDP

6.1

8.0

4.83.7

4.75.5

4.5 4.8 5.24.3

3.3

1.2

2.8

5.7 5.2 4.8 4.73.4 3.2

2.5

1.1

3.3

2.2 0.61.4 1.0

0.8

1.2

2.5

0.1

0.0

0.23.22.2

0

2

4

6

8

10

Ed

uca

tio

n e

xpen

dit

ure

as

a %

of

GD

P

Public Private

Source: UIS

UNESCOINSTITUTE for STATISTICS

10

Tertiary expenditure as a % of GDP

1.21.4

0.8

0.4

0.9 0.8 0.8

1.51.8

0.90.7 0.8

0.6

1.5 1.6

0.81.0

0.80.5

0.2

0.20.4

0.7 0.0

0.30.5

1.3

0.0

1.8

1.8

<1

0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Jam

aica

Cub

aP

arag

uay

Chi

leU

.S.A

.B

eliz

eA

rgen

tina

Can

ada

Bar

bado

sM

exic

oP

eru

Col

ombi

aU

rugu

ay

Pan

ama

Bol

ivia

Cos

ta R

ica

Bra

zil

Trin

idad

&A

ntig

ua&

El S

alva

dor

Ter

tiary

exp

endi

ture

as

a %

of

GD

P

Public Private

Source: UIS

UNESCOINSTITUTE for STATISTICS

11

Allocating resources across levels

7 8 3 5 10 9 9 9

35 36 51 4344

33 33 33

33 36 13 2222

36 36 38

21 1828

2924 22 22 21

1533

0

20

40

60

80

100

1998 2000 1998 2000 1998 2000 1998 2000

% o

f to

tal e

du

catio

na

l exp

en

ditu

re

Not Allocated

Tertiary

Secondary

Primary

ECD

Argentina BrazilBolivia Uruguay

UNESCOINSTITUTE for STATISTICS

12

Blurred boundaries between public and private roles in education

Public Private

Public

Private

Financing

Provision

Teachers and other costs

Voucher schemes, subsidies, grants, SLS

Fees, tuition

Fees, in-kind contributions1 3

2 4

UNESCOINSTITUTE for STATISTICS

13

Public and private education providers

Defined by governance and source of funding Public Private

» Government-dependent ( > 50% funding )» Independent private ( < 50% funding )

Private provision in LAC countries is prevalent at both primary and secondary levels, especially govt.-dependent; private tertiary provision is considerable

UNESCOINSTITUTE for STATISTICS

14

Primary expenditure per student, PPP$

252 300 471801 886 902 947 967 994 1019

1533 1570 1720

4632

6719

0

1000

2000

3000

4000

5000

6000

Gua

tem

ala

Bol

ivia

Per

u

Bel

ize

Bra

zil

Jam

aica

Par

agua

yU

rugu

ayP

anam

aM

exic

oA

rgen

tina

Cos

ta R

ica

Chi

leB

arba

dos

U.S

.A.

Pri

mar

y ex

pend

iture

per

stu

dent

in P

PP

$

Source: UIS

UNESCOINSTITUTE for STATISTICS

15

Expenditure per primary student as a % of GDP per capita

6

13 1115

12

25

19

11

1813 13

1619

30

20

0

10

20

30

40

Gua

tem

ala

Bol

ivia

Per

u

Bel

ize

Bra

zil

Jam

aica

Par

agua

yU

rugu

ayP

anam

aM

exic

oA

rgen

tina

Cos

ta R

ica

Chi

leB

arba

dos

U.S

.A.

As

a %

of

GD

P p

er c

apita

Source: UIS

UNESCOINSTITUTE for STATISTICS

16

Per student costs by levels of education

0

20

40

60

80

100

120

140

160

180

Barba

dos

Jam

aica

U.S.A

.Chi

le

Parag

uay

Panam

a

Costa

Rica

Belize

Bolivi

a

Mex

ico

Argen

tinaBra

zil

Urugu

ayPer

u

Gua

tem

ala

Colom

bia

As

a %

of G

DP

per

cap

ita

primary lower secondaryupper secondary secondarytertiary

UNESCOINSTITUTE for STATISTICS

17

Expenditure over the entire school career of a student

0

100

200

300

400

500

600

Primary Lower secondary

Upper secondary Tertiary

PPP$

UNESCOINSTITUTE for STATISTICS

18

Cost of grade repetition as a % of GDP

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8% GDP

Primary Secondary

UNESCOINSTITUTE for STATISTICS

19

Anticipating future educational demand

50

60

70

80

90

100

110

120

130

140

150

In p

erce

ntag

es (

2000

=10

0)

Primary Secondary Primary, demography only Secondary, demography only

150

250

350

//

UNESCOINSTITUTE for STATISTICS

20

Learning achievement and spending per student (PISA 2000)

Peru

Brazil

Argentina

Chile

Mexico

USA

Canada

300

350

400

450

500

550

600

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000

Cumulative education expenditure to age 15 (PPP$)

Ave

rage

com

bine

d lit

erac

y sc

ore

Poland

UNESCOINSTITUTE for STATISTICS

21

Conclusions Efforts to expand education are showing positive

results Public resources to education have increased Private contributions play a big role in financing

education, especially at higher levels Per student costs vary widely Where prevalent, the cost of repetition represent a

large part of total spending Future presents a « window of opportunity » for some

and a challenge to even maintain current participation rates for others