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Despite research demonstrating that investment in the earliest years has the highest rate of return, across the board, funding for pre-primary education is very low, both in terms of domestic financing and international aid. The mobilization of adequate financial resources to expand pre-primary provision, especially for the most marginalized, is a major challenge in low- and lower-middle income countries, where the pre-primary sub-sector is often nascent and extremely underfunded. Indeed, the poorest countries – who would likely benefit the most from investing more in early education – greatly underinvest in early education, with an average of less than 2% of the domestic education budget going towards the sub-sector. In addition, education budgets are highly unbalanced in favor of other sub-sectors. The very limited public investment in pre-primary education is further compounded by the fact that less than 1% of international aid to education goes to support pre-primary.
This paper will summarize the state of financing for ECE, with a focus on low and lower middle-income countries. An overview of the role of domestic and international sources of funds will be complemented by a simulation model exploring the tradeoffs in terms of quality, length of pre-primary, as well as targeting of services to the most marginalized, that low income countries may be facing in order to expand financing and access to pre-primary education. Financing modalities for a few scaled-up programs will also be highlighted. A set of strategic recommendations targeting both domestic and international actors will be presented for improving the effectiveness and overall status of financing available for pre-primary education.