By: Patrinos HA
Published by: International Institute for Educational Planning (UNESCO), 2007
Via: Eldis
In an attempt to improve the delivery of basic services and the equity with which public funds are disbursed, some governments are experimenting with new ways of channelling public funds. One such mechanism is demand-side financing, whereby public funds are channelled directly to individuals or to institutions based on the characteristics of users (eg. income). In the last few years, some important demand-side financing initiatives in education have been implemented in a number of countries.
Demand-side financing includes a range of interventions. The focus is on putting the resources in the hands of those who demand education and not those who supply it. The goal is to bring down the barriers that prevent children from continuing their education. In most cases, demand-side programmes are associated with increased school attendance rates and lower school dropout rates.
The study highlights that a variety of demand-side financing mechanisms exist. Although demand-side financing increases costs, the benefits are high. Some of these benefits include:
- schooling gains, in terms of higher enrolments
- attendance, completion and achievement
- increased access to education
- makes it easier to institute school choice plans
- relates resources to the ultimate beneficiaries – students and their families
- close monitoring of resources could lead to considerable efficiency gains to the system, thus increasing the cost-effectiveness of education programmes
- can also be used in some cases to improve learning outcomes and to pursue other important goals such as gender equity and longer-term poverty reduction.
=http://www.unesco.org/iiep/PDF/Edpol7.pdf)
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