1. Overview of International Budget Literacy Practices: Key Findings and Lessons Learned Harika Masud September 14, 2015

2. Agenda Definition, methodology and scope School-based BL initiatives Classroom-based initiatives  BL in classroom and out-of-classroom initiatives: why?  BL in school curricula: how?  BL learning outcomes  BL subjects, themes and topics  BL pedagogical approaches and activities  BL assessment methods Out-of-Classroom initiatives Lessons learned Useful resources/links

3. Definition, Methodology and Scope Definition: “The ability to read, decipher, and understand public budgets to enable and enhance meaningful citizen participation in the budget process”. Scope:  Documentation of 35 case studies from 33 countries (primarily OECD countries and BRICs)  School-Based BL initiatives (27) and Beyond School BL initiatives (8) Methodology:  Review: Desk research on national education policies/strategies and curriculum standards for primary and secondary school subjects in 33 countries  Outreach and Compilation: Outreach to more than 200 individuals and 150 organizations and compilation of inputs via emails and/or phone discussions  Documentation: Use of standard template to draft country case studies of illustrative budget literacy practices  Analysis: Based on learning outcomes, contents, pedagogical approaches and materials, and assessment methods 3

4. BL in school-based initiatives: Why? Engaging with the federal budget and the federal debt enables students to understand the contextual factors that play a role in economic decision-making (Etizoni,1967) They gain insights into how the federal government’s responsibilities and approach change over time through an examination of the federal budget, federal debt, and budget deficit (Mosher, 1980). Students will be unprepared to express views and exert meaningful influence on public policy directions without knowledge of budget issues (Forsyth, 2006) Since an economically educated citizenry is more likely to appreciate longer run implications of economic policy, this may reduce scope for governments to secure short-term support at the expense of long-term disadvantage for citizens (Davies, 2002) An understanding of economic concepts can promote active citizenship and provide an analytical framework which citizens can adopt in a democratic society (Miller and VanFossen, 2008) Measures of general economic knowledge, or knowledge of a particular economic issue are among the most important factors affecting public opinion on a wide range of economic issues (Walstad, 1997) 4

5. BL in school-based initiatives: Why? (continued) BL education in schools is intended to help attain the following objectives: Strengthening civic and legal consciousness (Canada, Czech Republic) Fostering awareness of tax obligations (Japan, Uruguay) Increasing comprehension of economic and social roles (United States, Singapore) Improving knowledge of policy formulation (Austria, Hong Kong) Enhancing participation in fiscal policy processes (Brazil, Costa Rica) Developing economic competence (Australia, India) Building real-life skills (South Africa, Namibia) 5

6. BL in school-based initiatives: How? Strategies to integrate BL education in schools include: Cross-Curricular vs. Stand-Alone Approach (e.g. United States and Brazil) National vs. Subnational Approach (e.g. Hong Kong and Canada) Tiered vs. Direct Approach (e.g. Australia and Japan) 6

7. BL Learning Outcomes In School Curricula: Knowledge Role of Government: e.g. learn how the government redistributes income (Namibia) System of Government Revenues and Expenditures: e.g. define progressive, proportional, and regressive taxation, and determine whether different types of taxes (including income and sales) are progressive, proportional, or regressive (United Kingdom) Fiscal Policy: e.g. discuss state budget drafting, taxation policy and redistribution of income (Estonia) Policymaking: e.g. formulate the conflicting objectives and various positions regarding economic policy (Austria) Economic Competence: e.g. understand the government’s constraints as well as short term and long term economic and social impacts of public finance (Hong Kong) Real-Life Skills: e.g. describe the method of calculating the subsistence minimum of his/her household and applying for social benefit for which he/she is eligible (South Africa) Civic Awareness: e.g. acquire a sense of responsibility and consciousness of the social value of taxes and their important role for social development (Costa Rica) 7

8. BL Learning Outcomes In School Curricula: Competencies Literacy: Examine and interpret budget data and communicate conclusions to a range of audiences through a range of multimodal approaches. Numeracy: Apply numeracy knowledge and skills to display, interpret and analyze fiscal data, draw conclusions, make predictions and forecast outcomes. ICT: Develop ICT capability when they access and use digital technologies as an investigative and creative tool. Locate, evaluate, research, plan, share and display budget data and/or information. Critical Thinking: Develop critical and creative thinking to identify, explore and determine questions to clarify budget issues and/or events and apply reasoning, interpretation and analytical skills to data and/or information. Intercultural Understanding: Develop an understanding and appreciation of the different ways other countries respond to budget issues and events related to fiscal policy. Oral and Written Expression: Analyze fiscal sources and data, interpreting this information to make arguments, and communicating ideas and findings with clarity. 8

9. BL Learning Outcomes In School Curricula: Values and Attitudes Gain the confidence and conviction to participate in decision making and play an active role as effective citizens in public life (United Kingdom) Think proactively about economic phenomena. (Luxembourg) Participate as informed persons in the discussion of economic issues and decision-making (Hong Kong) Strengthen understanding and fair judgment on issues surrounding politics, economy, and international relations (Japan) Understand the perspectives of a range of different stakeholders in relation to economic activity (India) Apply theoretical knowledge successfully to the current economic situation, and not fall for superficial judgment but have the ability to analyze the situation correctly (Czech Republic) 9

10. BL: Subjects SubjectCountry Examples EconomicsIndia, Austria, France, United States Social Studies/Social Sciences Estonia, Japan, New Zealand and Singapore Mathematical Literacy/Mathematics Canada, South Africa, United States Civics/GovernmentCanada, United Kingdom, Poland, United States Business StudiesIreland and Namibia HistoryUnited States Politics and GovernancePhilippines Life Skills/Contemporary Issues Czech Republic, Hong Kong and Namibia Fiscal Education CourseBolivia, Brazil, Chile, Costa Rica, El Salvador, Guatemala, Honduras, Paraguay, Peru and Uruguay 10

11. BL: Themes and Topics ThemeExamples of Budget Literacy Topics Education about Tax New Zealand. Module [Tax Education and Citizenship] -Taxes and their impact, how decisions are made about public finances and differing opinions on tax spending -How decisions on taxation affect young people, varying understanding of fairness in relation to taxation, and how young people can influence policy decision-making about taxation Introduction to Basic Economic Concepts India. Module [Government Budget and the Economy] -Objectives of government budget -Classification of receipts – revenue and capital; classification of expenditure – revenue and capital, developmental and non-developmental etc -Revenue deficit, fiscal deficit and primary deficit: meaning and implications Economic Citizenship Singapore. Module [Managing our Financial Resources] “Careful Use Of Our Country’s Financial Resources Helps Singapore To Progress”. -Developing Singapore through the national budget -Importance of the national budget to me -The role of citizens in contributing to the management of financial resources in the country Economic and Social Policy Austria. Module [Macro-economic Results and Challenges – Economic and Social Policy] -Fiscal/tax policy -Social policy: who finances social safety nets? -Specificities of the Austrian economic and social policy -How effective are the state’s instruments? 11

12. BL: Pedagogical Approaches and Activities 12 Approach/ActivityCountry Examples Simulations and Role PlayGermany, South Australia Fact finding and AnalysisCanada, New Zealand Using Real-life Situations and Scenario Analysis India, Hong Kong Debate and DiscussionVictoria-Australia, United Kingdom Interaction with Relevant Authorities and Field Trips Philippines, Costa Rica Write-ups, Essays and ReportsSouth Africa, United States Contests and QuizzesJapan, Singapore Art and Cartoon AnalysisUnited Kingdom, United States

13. BL Assessment Methods Formal Assessments (i.e. tests, exams and quizzes) Multiple choice questions (New Zealand) Data Interpretation questions (South Africa) Questions on public budget concepts (Ireland) Open-ended questions (Austria) Other Assessments Teacher assessment: e.g. learning journals, oral presentations, class participation, poster designs, field studies Peer assessment: e.g. role play, project learning, group work, debates Self assessment: e.g. self reflection on learning based on feedback from teachers and/or peers 13

14. BL: Out-Of-Classroom Initiatives CountryExamples of Initiatives AustriaThe Entrepreneur’s Skills Certificate online training program Brazil-CGU Drawing and Composition Contest -Citizen Child Day Canada-School participatory budgeting in Vancouver -CIVIX Student Budget Consultations ChileThe Band’s Debut TV show Costa RicaTribute to My Country FranceParticipatory budgeting in Poite-Charentes, Nord Pas de Calais and Ile-de-France Hong KongSeminars e.g. Hong Kong’s public finance and long-term fiscal planning Japan-Study tours and education classes -National essay competitions on taxes -Poster competition on taxes at the prefecture level -Award program for promoting tax education for students New Zealand-High School Policy Challenge -Policy Workshops Peru-Payment Receipt Contest -Youth Auditors Program SingaporeAnnual MOE-MOF Budget Debate Seminar United KingdomChance to be Chancellor Program UruguayVideogames Contest 14

15. Lessons Learned Incorporating BL in School Curricula Utilize existing subject curricula as entry points to teach budget literacy. Adopt a gradual, tiered approach to educate students about public budgets that begins at the primary school level. Continue to rely on a tiered approach for budget literacy instruction during secondary level schooling. Emphasize both civic competence and technical knowledge to capture the true essence of budget literacy. Use budget literacy contents to convey a range of interesting facts, initiate stimulating discussions and pose real-life challenges to students. Developing Diverse Methods and Materials to Teach Budget Literacy Use instruction methods which make learning about public budgets relevant and compelling for students. Arrange for the students to receive feedback on their contributions to budget processes, to the extent possible. Develop pedagogical materials which can accommodate the varying knowledge of educators regarding budget literacy. Building Capacity to Promote Budget Literacy Education Collaborate with relevant stakeholders while designing and implementing measures to strengthen budget literacy. Explore various means of providing on-going support to educators. 15

16. Useful Resources Type of ResourceExamples BlogsUnderstanding Fiscal Responsibility Blog (United States)Understanding Fiscal Responsibility Blog Comics/CartoonsSofinha and her Gang (Brazil)Sofinha and her Gang What’s in it for Us? (New Zealand)What’s in it for Us Crossword PuzzlesNational Budget Crossword (Ireland)Crossword Datasets on Public Spending A Scuola di OpenCoesione (Italy)A Scuola di OpenCoesione Budget Stories (Moldova)Budget Stories Glossaries/PrimersThe ABC of Taxes (Guatemala)The ABC of Taxes Declaring My Taxes (Costa Rica)Declaring My Taxes Interactive GamesCyberBudget Game (France)CyberBudget Game Role Playing Game-Deciding a Municipal Budget (Germany)Role Playing Game Participatory Budgeting Guides Handbook for Schools to Implement Student Participatory Budgeting (Germany)Handbook Welsh Government Participatory Budgeting Toolkit (United Kingdom)Toolkit PowerPoint PresentationsBudget Taxation & Government Finances (Ireland)Budget Taxation & Government Finances Government Spending (United States)Government Spending Posters/Graphics/ WordlesNational Budget Wordle (Ireland)National Budget Wordle Tax Expenditure Interactive Graphic (Uruguay)Tax Expenditure Interactive Graphic Quizzes/Trivia and SurveysTaxes Trivia (Dominican Republic)Taxes Trivia Tax Education and Citizenship Survey (New Zealand)Tax Education and Citizenship Survey TV shows/media clips10-minute-box (Japan)10-minute-box PBS Learning Media: Government Revenues and Spending (United States)PBS Learning Media: Government Revenues and Spending Worksheets and HandoutsGovernment Expenditures Worksheet (Canada) Comparison of tax rates (Hong Kong) Tool Kits/Lesson Plans‘Tax Matters’. HM Revenue and Customs. [United Kingdom]Tax Matters Overview of Budget 2015: Building Our Future, Strengthening Social Security (Singapore) 16