Building a Collective Approach: Standardized Cost Analysis Methods for Comparable Evidence

• In Event: Comparing Costs: Methods for and Examples of Analyzing Activity Cost Data to Build Evidence

Proposal

Comparative and International Education research and analysis methods vary across stakeholders (academic institutions, donors, non-governmental institutions, etc.). While this diversity can lead to innovation and new findings, the lack of a standard approach, in some contexts, can limit the comparability, replicability, and ultimately, usefulness of findings. For example, there is agreement in the education development sector that we can achieve better and more sustainable results if we use cost data alongside effectiveness data to inform investment decision-making. However, despite decades of investments in education interventions, the cost of specific components of common interventions in the education sector is poorly understood.
USAID Center for Education’s Cross-Country Basic Education study (presented prior) is one of the first major studies to explore the cost of common interventions across contexts. This study was possible due to a standardized approach to cost reporting and cost analysis published by USAID/Education. The cost reporting and cost analysis guidances establish the process and procedures for how USAID partners collect and submit cost data, how analysts examine USAID cost data in the education sector, and how to report on findings.
The cost reporting process involves reporting expenditure data using cost ingredients and cost categories. Cost categories disaggregate expenditure data by intervention. The reporting process also includes submission of contributions data and details of the interventions, including information such as number of beneficiaries reached, number of teaching and learning materials received by each learner, and number of hours of individualized training received by each teacher. To assist in providing this information, partners are given standard templates for submitting contributions and intervention details information, as well as a template for a cost manual where they can record the cost categories being used for the activity.
Using the USAID/Education cost data to conduct cross-country analyses is new to the education sector, therefore understanding the challenges and rewards, as compared to a single-country cost studies, is critical. Methodologically speaking there are several challenges. First, identifying which interventions are appropriate for comparability requires careful thought and strong methodological guidance. Then, understanding the different theories of change among the interventions being analyzed, fosters a broader perspective-there are different paths to reach the same desired outputs or outcomes. Finally, presenting and using the cross-country findings in a way which informs stakeholders is imperative to appropriate use of the data.
As demonstrated by the Cross-Country Basic Education study, there are rich rewards to conducting cross-country studies. Such studies help to build the evidence base and support stakeholders in making decisions about activity design, scale-up, and transfer. Furthermore, cross-country studies can provide detailed information about the variation in costs based on delivery mechanisms, contexts, beneficiaries served, services delivered, and scope. Ultimately, the findings of cross-country studies help donors, governments, and implementing partners to make informed choices about how and where to best invest scarce funds. Further, the findings developed in studies conducted with these methods demonstrate the value of standardized research and analysis practices and the importance of communication and capacity building across stakeholders.

Author

• Christine Harris-Van Keuren, Salt Analytics