10.26.07

Global Education:
A Transformative Investment

Education is a critical piece of the development puzzle. Research indicates that investment in education, with a particular focus on girls, may be one of the highest yield investments available in the developing world. In addition to equipping a child with the knowledge and skills needed for a productive life, a quality education can impact a family's income earnings and health, prevent the spread of HIV/AIDS, and even contribute to economic growth and democratization. Despite the proven potential of expanding education, 77 million children remain out of school around the world; 38 million of them in Africa. In order for countries to realize their full development potential, access to quality primary education must be made universal.

The United States has a vital role to play in supporting governments who commit to the goal of universal primary education. Through debt cancellation, the US and other donors enabled African governments to redeploy resources to the education sector, which has helped send over 20 million African children to school for the first time in the past seven years. Donors can expand on this success by providing scaled-up, sustained support to help African countries fully finance their national education priorities.

The Fast Track Initiative
The Education for All-Fast Track Initiative (FTI) matches bilateral and multilateral funding with countries whose education plans have been technically vetted and endorsed. Established 2002, FTI is centered on the idea of mutual commitments between donor and developing countries: Donors agree to provide increased funding and technical know-how if developing countries prioritize primary education, produce national education plans, and increase domestic education funding. So far, 19 countries in Africa (32 globally) have produced rigorous and accountable national education plans that have been endorsed by FTI.

Where donors and African countries have delivered on their promises, impressive results have been achieved through FTI:

• Six African FTI countries increased enrollments by 40% within four years of their endorsement.
• Since receiving FTI-endorsement in 2002, Burkina Faso has increased its primary enrollments by 55%, sending nearly 550,000 more children to school.
• Teacher recruitment in Niger has jumped by 1,000% and enrollments doubled from 530,000 to 1.1 million children between 2002 and 2005 thanks to a three-fold increase in donor assistance through FTI.

But not all well structured plans are receiving the support promised by donors. The 19 FTI endorsed African countries' plans cost a total of $3.75 billion. They have collectively mobilized $2.7 billion in domestic resources- more than 70% of the total cost. But the remaining resources promised by donors are not being mobilized quickly enough to fully fund their plans. These 19 countries currently face an external financing gap totaling $370 million ($500m globally). The gaps are expected to grow significantly in 2008 as more countries are endorsed. The G8 pledged to follow through with the promised resources at the 2007 G8 Summit in Germany, but so far no action has been taken.

US Support for Global Education

US support for basic education has been modest to date. In FY2007 the US appropriated $460 million for basic education (see funding history). The best estimate for the cost of putting every child in school by 2010 is $10 billion annually, a sum equivalent to the annual operating budget for New York City public schools. The US should aim to contribute $3.3 billion annually to global education by 2010, its equitable share of the $10 billion need. The below outlines current and pending US global education initiatives that contribute towards that goal.

• The African Education Initiative: The African Education Initiative (AEI), a program launched by President Bush in 2002, provides teacher training, learning materials and scholarships for girls throughout Africa. With over $200 million of funding by the end of 2007, this program has awarded 85,000 scholarships to girls in 38 countries and delivered close to 2 million new textbooks to primary school children in Benin, Ethiopia, Guinea, Namibia, Senegal and South Africa. While AEI programs are supporting children in several FTI endorsed countries, the initiative is not explicitly designed to support gaps in African governments comprehensive education sector plans.

• President's International Education Initiative: In September, First Lady Laura Bush announced the President's International Education Initiative, which aims to provide comprehensive basic education for four million children in six FTI endorsed countries: Ethiopia, Liberia, Ghana, Mali, Honduras and Yemen. Mrs. Bush also announced the creation of a new Education Coordinator to oversee US global education activities. To finance this initiative, President Bush is asking Congress to provide $425 million over five years, with a scale up from around $20m in FY2008 to around $120m in FY2012. The initiative is similar to the EFA Act, but on a much smaller scale.

• Education for All Act: The Education for All (EFA) Act of 2007 would support countries with rigorous and accountable education plans endorsed by the Fast Track Initiative, and would also channel resources to post conflict/fragile countries through non-governmental channels. The Act calls for appropriations of $1 billion in FY2008, scaling up by $500 million each year to a total of $3 billion in FY2012. The legislation would create an Education Coordinator to report to the Secretary of State, with the authority to direct resources to various US government agencies for implementation. The Act was introduced with bipartisan support in the House and Senate by Congresswoman Nita Lowey and Senator Hillary Clinton, and Congressman Spencer Baucus and Senator Gordon Smith.

The Education for All Act, and on a smaller scale, the International Education Initiative, will provide vital US support to governments that have demonstrated their commitment to achieve the ambitious goal of universal primary education. Investment in education not only provides the poorest countries with a vital platform for development, it is also a demonstration of American values and generosity.