1. Filling the financing gaps in basic education – the case for innovative finance UNESCO Future Seminar - 14 September 2010 Kevin Watkins Director, Education for All Global Monitoring Report EFA Global Monitoring Report

2. Education for All Global Monitoring Report Why innovative financing (IF) – and why now? Despite progress, EFA 2015 project is facing a crisis Financing deficits are holding countries back Unlike health, education is not on IF map Key role of education for MDGs, employment, and ‘knowledge societies’ Political momentum is gathering – and UNESCO should be seizing opportunity IF is about more than financing – galvanising new partnerships, building momentum, links to G20 and G8

3. Education for All Global Monitoring Report Some issues for debate Identify how education fits into IF ‘big picture’ and distinctive elements Communicating the argument Strategy-free smart arguments don’t deliver results

4. Education for All Global Monitoring Report 2008200920102011201220132014 2015 56 million 8 million 23 million Rest of the World South and West Asia 39 million Sub-Saharan Africa 45 million 0 20 40 60 80 100 120 Out-of-school children (millions) East Asia and the Pacific 2000200120022003200420052006 2007 32 18 9 6 3 72 million 1999 6 8 4 105 million Out-of-school children Arab States Latin America and the Caribbean The EFA crisis – a snapshot East Asia and the Pacific Arab States Latin America and the Caribbean Still 56 million children out of school in 2015 Progress is slowing

5. Education for All Global Monitoring Report Wider problems in equity and quality Child hunger undermining learning Persistent inequalities and highly marginalised groups getting left behind Conflict-affected states and populations face grave difficulties Chronic problems in quality Challenges in secondary and tertiary

6. Education for All Global Monitoring Report The EFA financing gap Confusion over the ‘gap’ GMR estimate based on adaptation of input- output model for UPE + by 2015 Factors in ‘best endeavour’ by aid recipients Covers three levels –Early childhood –Primary –Lower secondary Includes estimate for reaching marginalised

7. Education for All Global Monitoring Report The Education for All financing gap Additional aid to basic education if Gleneagles commitments are met In 2010 Current aid to basic education Aid shortfall $ 11 billion Estimated current resources $ 12 billion Additional resources from prioritization EFA financing gap $ 16 billion 0 5 10 15 20 25 30 35 40 $ 3 billion $ 4 billion Average annual resources needed to finance EFA (2009-2015) US$ 36 billion Additional resources from growth $ 3 billion $ 2 billion

8. Education for All Global Monitoring Report Getting left behind – aid for health and education

9. Education for All Global Monitoring Report High levels of innovation in health Global Fund – UNITAID, Red, Gates Gavi – IFFIm bonds and Advanced Market Commitments (commercial banks) High-level task force on IFHS Strong focus on results and country-level action Developed multilateral mechanisms Some ‘vertical’ problems in skewing priorities

10. Education for All Global Monitoring Report Current context – and EFA opportunities Resurgence of interest in IF linked to financial crisis, aid pressure, and MDG shortfalls Momentum behind financial sector taxes –Welcome back James Tobin –‘Robin Hood’ (NGOs + several governments) tax on all financial transactions –Swedish ‘stability fee’/US ‘responsibility fee’ –IMF tax on profits and bonuses Proposals for scaling-up existing mechanisms New options under review– from mobiles to migrants

11. Education for All Global Monitoring Report Issues for EFA leaders Scale, feasibility and political attainability Go for a twin track strategy – global MDGs plus EFA Consider scale/efficiency Vs attribution/communication Look beyond education to integrated MDG approach and UN political strategy on financial taxes Identify EFA partnerships on IF (business, NGOs) Recognise dangers of proliferating vertical funds Aim at real new money, not repackaging, front-loading or ‘results-based’ aid conditionality Establish credible delivery mechanisms to achieve… ….clear human benefits