Innovative Financing for Education: Analysis of Multi-stakeholder Perspective Case Studies

Group Submission Type: Pre-conference Workshop

Description of Session

Achieving global education targets has put increasing pressure on global and national budgets, requiring the mobilisation of resources through existing and new financial sources. As a result of the need for more funding, a search for new ways to fund development is emerging. Termed "innovative financing", this approach looks for non-traditional ways to raise additional funds and to spend existing funds in more efficient and effective ways through the use of market-like practices. Over the last decade, several proposals have been discussed on using innovative financing instruments and arrangements; the sector is only now witnessing widespread experimentation in the education sector. Many, but not all, innovative financing mechanisms move away from the traditional supply-driven paradigm of international aid financing to more market-oriented approaches that combine social and financial returns, foster collaboration between the public and private actors to deliver development outcomes at scale, more effective distribution of delivery and financial risk and address market failures and catalyses political momentum. Alongside the enthusiasm for utilising innovation in financing, there also exists scepticism and polarising debates, primarily around the engagement of the private sector in financing and delivery of education as a public good. The debate on innovative financing is heated with proponents who, arguing from an economic perspective, point at the need for non-traditional and new means of funding. In contrast, opponents with a background in human rights and education, highlight concerns of equity and quality when development work follows the logic of a market. Education is an attractive arena for private sector engagement, where both philanthropic and profit-seeking activities have considerably increased over the past few years. Without any doubt, the private sector has discovered education service provision as a terrain in which huge profits can be made given the right to education legislation in different parts of the world. Research on the topic is scarce in capturing the experience of piloting and scaling up of particular innovative financing mechanism, and critical analysis of the stakeholder motivation for engaging in innovative financing projects. On a more practical side, there is also a lack of documentation on lessons learned around mechanism implementation in terms of relevance, applicability, adaptability, efficiency, efficacy, and effectiveness for reaching the targets of SDG4.


In this workshop, participants will work through four case studies that capture the multi-stakeholder perspective on designing and implementing innovative financing mechanism within the education and youth employment sector. Participants will work in groups to analyse the relevance, applicability and adaptability of these experiences to additional educational contexts.

Case Studies:
Argentina - Proyectá tu Futuro: a case study of a Social Impact Bond for employability training in Buenos Aires
Ethiopia - Results-Based Financing in Vocational Education and Training: the Skills and Knowledge for Youth Project
India Education Outcomes Fund
South Africa- Financing Early Childhood Development: the Impact Bond Innovation Fund

Sub Unit

• Pre-Conference Workshops, Book launches, and Art Exhibits / Pre-Conference Workshop

Workshop Organizers

• Arushi Terway, NORRAG

• Marina Avelar, NORRAG

• Marina Dreux Frotte, NORRAG

Presenters

• Felicitas Acosta, Universidad Nacional de General Sarmiento

• Tomas Esper, Columbia University

• Archana Mehendale, Tata Institute of Social Sciences