Connect with us

Development

Two-Thirds of Poorer Countries Are Cutting Education Budgets Due to COVID-19

Published

on

Children in Côte d'Ivoire wear face masks as they return to school after temporary closures due to COVID-19. © UNICEF/Frank Dejongh

Education budgets are not adjusting proportionately to the challenges brought about by COVID-19, especially in poorer countries.  Despite additional funding needs, two-thirds of low- and lower-middle-income countries have, in fact, cut their public education budgets since the onset of the Covid-19 pandemic, according to the new joint World Bank – UNESCO Education Finance Watch (EFW)

In comparison, only one-third of upper-middle and high-income countries have reduced their budgets.  These budget cuts have been relatively small thus far, but there is a danger that future cuts will be larger, as the pandemic continues to take its economic toll, and fiscal positions worsen.  These differing trends imply a significant widening of the already large spending disparities seen between low- and high-income countries.

According to the new report, prior to the COVID-19 pandemic, in 2018-19, high-income countries were spending annually the equivalent of US$8,501 for every child or youth’s education compared to US$48 in low-income countries. COVID-19 is only widening this huge per-capita education spending gap between rich and poor countries.

EFW stresses that the education finance challenge is not only about mobilizing resources, but also about improving the effectiveness of funding. Unfortunately, recent increases in public education spending have been associated with relatively small improvements in education outcomes. Although access to education has improved, the learning poverty rate – the proportion of 10-year-olds unable to read a short, age-appropriate text – was 53 percent in low- and middle-income countries prior to COVID-19, compared to only 9 percent for high-income countries.  COVID-19 related school closures are likely to increase this 53 percent share to as much as 63 percent.

“This is a critical moment where countries need to recover the learning losses the pandemic is generating, invest in remedial education, and use this window of opportunity to build more effective, equitable, and resilient systems,” said Mamta Murthi, World Bank Vice President for Human Development.  “The learning poverty crisis that existed before COVID-19 is becoming even more severe, and we are also concerned about how unequal the impact is.  Countries and the international development community must invest more and invest better in education systems and strengthen the link between spending and learning and other human capital outcomes.”

EFW notes that global spending on education has increased over the last 10 years, but the signs are that the pandemic may interrupt this upward trend. Funding for education has grown most rapidly in low- and lower-middle-income countries, where the gaps between the funding needed to achieve the SDGs and current allocations are the widest. The deterioration in government finances over the medium-term suggests that without concerted efforts to prioritize education, the outlook for mobilizing the domestic resources required for education will worsen.

Aid for education has increased by 21 percent over the last 10 years. Disbursements had increased rapidly in the 2000s and fell between 2010 and 2014 in the aftermath of the great financial crisis. However, since 2014, aid to education has increased by 30 percent, reaching its highest recorded level of US$ 15.9 billion in 2019. However, fiscal constraints, other sectoral needs, and changes in student mobility patterns, suggest that external aid for education might fall at a time when it is needed most.    

“External financing is key to support the education opportunities of the world’s poorest,” said Stefania Giannini, Assistant Director-General at UNESCO. “Yet donor countries are likely – and some have already begun – to shift their budget away from aid to domestic priorities. Health and other emergencies are also competing for funds.  We foresee a challenging environment for countries reliant on education aid. UNESCO estimates that it may fall by US$ 2 billion from its peak in 2020 and not return to 2018 levels for another six years.” 

The EFW is a collaborative effort between the World Bank and the UNESCO Global Education Monitoring Report team.  It will be produced annually following the main release of spending data by UNESCO’s Institute of Statistics.  The EFW aims to draw together the best data available on all sources of education funding and monitor efforts to improve information on the levels and use of education funding.  However, good quality and timely information on government, household, and aid spending in education is not readily available in all countries.  This hinders planning and monitoring at a time when countries cannot afford any missteps.

Continue Reading
Comments

Development

ADB, AFD Reaffirm Strong Cooperation in Key Sectors, Including Climate Action

Published

on

Asian Development Bank (ADB) President Masatsugu Asakawa in a call today with Agence Française de Développement Group (AFD) Chief Executive Officer Rémy Rioux reaffirmed the importance of collaboration between the two institutions, particularly on key issues such as climate change and aspirations for COP26.

“ADB’s partnership with France, through AFD, is strong and continues to build on our long history of collaboration on important development issues and projects across many countries and sectors in Asia,” Mr. Asakawa said. “This solid foundation and our dynamic collaboration allows us to support an inclusive and resilient green recovery across the region as it emerges from the COVID-19 pandemic.”

The two leaders met ahead of the agencies’ annual high-level consultation on 14 and 15 April.

ADB and AFD signed their first partnership framework agreement in October 2016. They have since jointly funded 22 projects in 10 countries, in sectors such as energy, transport, public sector management, finance, agriculture, water, urban infrastructure, and health. AFD has provided $1.9 billion in cofinancing alongside $4.7 billion from ADB to fund these development programs across the region.

Mr. Asakawa updated Mr. Rioux on ADB’s response to the coronavirus disease (COVID-19) pandemic, which includes a $20 billion support package for Asia and the Pacific announced in April last year. ADB has committed $17.1 billion through grants, technical assistance, and loans to governments and the private sector and has mobilized an additional $12.2 billion in cofinancing. Mr. Asakawa acknowledged with appreciation AFD cofinancing for ADB’s $500 million COVID-19 response program in Pakistan. Mr. Asakawa stressed the importance of vaccine access to enable the post-COVID-19 recovery, and updated Mr. Rioux on the roll-out of ADB’s $9 billion Asia Pacific Vaccine Access Facility (APVAX).

The two leaders discussed cooperation on mitigating the severe impact of climate change in Asia and the Pacific which threatens to further undermine development gains over the last several decades. As part of that endeavor, ADB and ADF have a shared objective to contribute to the success of the COP26 summit to be hosted by the UK government later in the year. In 2020, while responding to the COVID-19 pandemic, ADB committed $4.3 billion in climate finance and mobilized $729 million from external resources.

Continue Reading

Development

COVID-19 strategies must invest in human-centred recovery

Published

on

COVID-19 crisis recovery policies must be human-centred and address pre-existing world of work challenges as well as the impact of the pandemic, the Director-General of the International Labour Organization (ILO), Guy Ryder, told the members of the Development Committee and the International Monetary and Financial Committee (IMFC), who convened during the 2021 Spring Meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF) .

Citing the sharp increase in poverty and inequalities seen since the pandemic began, he also warned delegates that without comprehensive and concerted policy efforts, “there is a very real risk that the COVID-19 crisis  will leave a legacy of widening inequality and social injustice.”

Coherent, multilateral action is essential to ensure that economic and social recovery is as human-centred as the impact of the pandemic itself, he said, pointing out that the ILO Centenary Declaration for the Future of Work , adopted unanimously by ILO Member States in 2019, offered an internationally-agreed roadmap to more inclusive and resilient societies.

“[Accelerating] implementation of this roadmap should be made a top priority of public policy and international cooperation,” he said.

In his written statement to the Development Committee, Ryder said the response to COVID-19 should prioritize the creation of decent work. He cited four components needed for a human-centred recovery that would also build resilience against future shocks. These include strengthening occupational safety and health systems, where the vast human impact of poor safety and health practices is estimated at an economic cost of four per cent of global GDP per year.

In addition, poor and vulnerable people should be supported, including with better social protection.

“We have an opportunity today to join forces around a common paradigm that recognizes both the value and urgency of investing in comprehensive and adequate social protection systems,” he said.

Support for business growth and job creation must be sustainable and focus on the quality of employment, with policies and measures that reach all workers and businesses, including the informal economy.

The institutions of work should be strengthened, including freedom of association and more effective collective bargaining and other social dialogue – including in relation to wages.

In remarks to the IMFC, Ryder raised the issue of climate change. While this threatens macro-economic stability and millions of livelihoods, there is considerable potential to combine the transition to a low-carbon future with creating decent work.

“The trillions of dollars deployed in the economic recovery process can be a driver for sustainability and decent work creation,” he said, adding that ILO research indicated that a green recovery that focused on investment in renewable energy, building efficiency and green transport could add some 20.5 million jobs by 2030.

Equal access to the right skills training and support for lifelong learning would be essential for this transition and a key element in inclusive and sustainable development, he added.

Continue Reading

Development

Digital Technologies Can Help Maldives Build Back Better From the COVID-19 Shock

Published

on

Maldives can leverage digital technologies to build back better for a more green, resilient, and inclusive development following the COVID-19 pandemic, says the latest World Bank Maldives Development Update: A Digital Dawn released today.

The Maldives Development Update (MDU) notes that the country, post a massive pandemic led downturn, is firmly on the road to recovery. Thanks to successful marketing campaigns and relatively straightforward entry requirements, Maldives received more than 300,000 tourists in the first quarter of 2021. Assuming that a million tourists visit the country this year, the World Bank forecasts real GDP to grow by 17.1 percent in 2021. There are both downside and upside risks to the forecast.

The Update analyzes the devastating effect of the pandemic on the island nation’s economy. From end-March to mid-July 2020, the country was forced to close its borders to tourists, bringing the economy to a standstill. Tourist arrivals plummeted nearly 70 percent, leading real GDP growth to contract by nearly 30 percent compared to 2019. The government took steps to protect the lives and livelihoods of Maldivians, and yet the pandemic is expected to have led to a temporary increase in poverty.

“The Government of Maldives has shown the world that a safe reopening to tourism is possible,” said Faris. H. Hadad-Zervos, the World Bank Country Director for Maldives, Nepal and Sri Lanka. “With active management of the current macro-fiscal situation, Maldives’ medium-term growth prospects can continue to be positive given its strong reputation as a luxury destination and ongoing investments in tourist infrastructure.”

As Maldives builds back better from the COVID-19 crisis, addressing fiscal and debt vulnerabilities will be important. In 2020, the fiscal deficit reached nearly USD 900 million or 20 percent of estimated 2020 GDP. Total public and publicly guaranteed debt reached USD 5.6 billion or nearly 140 percent of estimated 2020 GDP. Although the recovery is now underway, Maldives’ fiscal deficit and debt ratio are expected to remain elevated over the medium term.

The pandemic has led to a spike in debt vulnerabilities across the globe, and Maldives is no exception,” said Fernando Im and Pui Shen Yoong, lead authors of the MDU. “Addressing these vulnerabilities would help Maldives build resilience to cope with unexpected future shocks”.

The special focus section of the MDU sheds light on how digital technologies can be game changers for Maldives’ growth and development. The COVID-19 pandemic has accelerated the digital transformation that was already underway, thanks to relatively high broadband and mobile internet penetration in the country. About 63 percent of the population used the Internet in 2019, a higher proportion than in other South Asian countries and peers outside the region. There is tremendous potential to use digital technologies to improve the delivery of services such as health, education, and disaster risk management, especially to outer atolls.

To leverage the digital dividend, Maldives needs to address policy, legal and regulatory gaps that currently inhibit the adoption of digital technologies. It also needs to boost Maldivians’ digital capabilities and skills to ensure that all Maldivians can take advantage of new technologies in an increasingly digital world.

“Wider use of digital technologies can help the government improve service delivery and allow smaller businesses and informal workers to expand access to markets,” said Junko Narimatsu, lead author of the special focus section. “However, for digital development to play a more prominent role in Maldives’ economic recovery, it is essential to close the digital divide between Male’ and the atolls.”

Continue Reading

Publications

Latest

Intelligence2 hours ago

Under False Pretenses: Who Directed the Assassin to Kill the Russian Ambassador in Turkey in 2016?

Motivation for the assassination of Andrei Karlov, the Russian ambassador to Ankara, remains shrouded in mystery five years after off-duty...

Americas4 hours ago

United States must rebalance its relationship with Russia

Hours after signing an executive order, on April 15, 2021, which imposed sanctions on Russia, US President Joe Biden stated...

Eastern Europe6 hours ago

Does Biden want to keep Ukraine as a personal fiefdom?

The strange policy, pursued by the present occupant of the White House during the past few weeks is fairly surprising....

Tourism8 hours ago

UNWTO and Facebook: Leverage Digital Marketing to Restart Tourism

The World Tourism Organization (UNWTO) and Facebook have partnered to help global destinations make use of the power of digital...

Reports10 hours ago

Commodity Prices to Stabilize after Early 2021 Gains

Commodity prices continued their recovery in the first quarter of 2021 and are expected to remain close to current levels...

Development12 hours ago

ADB, AFD Reaffirm Strong Cooperation in Key Sectors, Including Climate Action

Asian Development Bank (ADB) President Masatsugu Asakawa in a call today with Agence Française de Développement Group (AFD) Chief Executive...

Environment14 hours ago

Environmental rights, here and now: working for change in 2021

COVID-19 hasn’t only raised concern for health. It has also stimulated thought and debate around issues of human rights –...

Trending