The Neglected Generation

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The Delors Standard, Education Spending, and Debt Servicing

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The Neglected Generation

  1. 1. The Neglected Generation The Delors Standard, Education Spending, and Debt Servicing Youth Against Debt (YAD)
  2. 2. UNESCO on 21 st Century Education <ul><li>In 1996, the United Nations Educational, Scientific and Cultural Organization (UNESCO) formed the International Commission on Education for the 21 st Century (a.k.a. the Delors Commission) </li></ul><ul><li>Headed by Jacques Delors, stated that “in confronting the many challenges that the future holds in store, humankind sees in education an indispensable asset in its attempt to attain the ideals of peace, freedom and social justice”. </li></ul><ul><li>“ Education is a human right and an essential tool for achieving the goals of equality , development and peace .” </li></ul>
  3. 3. The Delors Standard <ul><li>This Delors Commission pegs real education expenditure at 6% of the Gross National Product (GNP) for developing nations such as the Philippines. </li></ul><ul><li>The international benchmark set by Delors was adopted by UNESCO. </li></ul><ul><li>This is to increase the skills and knowledge of the would-be labor sector of the country. </li></ul>
  4. 4. Education Spending of Various Countries (2002, UNESCO)
  5. 5. Education Spending of Various Countries (2002, UNESCO)
  6. 6. Education Spending as %age of GNP
  7. 7. Education Spending and Relative Wealth of Countries <ul><li>We decided to test if there is a correlation between education spending as % of GNI/GNP, and GDP per capita in PPP (purchasing power parity, US dollars), of 83 countries in the year 2004, using UNESCO Institute for Statistics data. </li></ul><ul><li>The resulting correlation coefficient is 0.468412 < .5, indicating mild correlation between the two variables. </li></ul><ul><li>This only proves that to some degree, the wealth of the country is proportional to its education spending. </li></ul>
  8. 8. Scatter Diagram of 83 Countries Philippines Saint Vincent and the Grenadines Denmark Chad Kenya
  9. 9. Education Spending and Relative Wealth of Countries <ul><li>But let us look for countries with similar income per capita as the Philippines. Are they spending the same for education? </li></ul><ul><li>Only war-torn Lebanon is fractionally higher than the Philippines. All others are spending above 5% of their GNI to education. </li></ul><ul><li>Thus, education under-spending is mostly a matter of national policy . </li></ul>UNESCO 2004 data GDP per Capita, PPP, in US$ Education Spending as % of GNI Cape Verde 5,449 6.23 Lebanon 5,422 2.51 Philippines 4,834 2.36 Swaziland 4,646 6.24 Guyana 4,482 5.35
  10. 10. Education Spending vs. Delors Required Education Spending (in billions)
  11. 11. Years and Admin. Ramos Estrada Arroyo 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 in billion pesos 6% of GNP 135.7 151.4 168.9 188.2 209.8 232.6 253.4 277.9 314.9 353.1 394.2 436.5 Education Spending 74.7 95.0 106.9 110.6 116.8 121.5 125.4 129.0 128.8 131.2 144.2 164.1 Delors Gap 61.0 56.4 62.1 77.6 93.0 111.1 128.0 148.9 186.1 221.9 250.0 272.4 Delors Gap Total 1,668.5 in percentage Education Spending as % of GNP 3.30 3.76 3.80 3.53 3.34 3.13 2.97 2.79 2.45 2.23 2.20 2.26
  12. 12. Where did the money go? <ul><li>There is no exact answer to that, but let take a look at where government spending goes. </li></ul><ul><li>While there are many answers to this question ranging from corruption, obese pork barrel allocations to unnecessary spending, one way of knowing is by looking deeply into our debt problem. </li></ul><ul><li>Due to the policy of prioritizing debt payments as mandated by the automatic debt servicing provision as provided for by Sec. 26(b) of the Revised Administrative Code of 1987, administrations have been investing much less in social services in terms of percentage. </li></ul>
  13. 13. Education vs. Interest Payments
  14. 14. Delors Gap vs. Interest Payments (in billions)
  15. 15. Neglecting Education
  16. 16. Suffer the Future Debt per capita vs. Health, Education per capita
  17. 17. What was lost? <ul><li>PhP 400,000 / classroom </li></ul><ul><li>2000 prices </li></ul><ul><li>Php 375,000 infra </li></ul><ul><li>30 books </li></ul><ul><li>30 chairs </li></ul>
  18. 18. THE CAMPAIGN FIX SIX WILL
  19. 19. Debt Service: Menace to Education Spending <ul><li>In the recent years, debt service allocations dwarfed allocations for social spending, including spending for education. </li></ul><ul><li>This is despite the constitutional provision (Article XIV, Section 5.5) stating that education should receive the highest budget. </li></ul>
  20. 20. The Cause: Automatic Appropriations for Debt Service <ul><li>Sec. 26 (B), Book 6 of the Revised Administrative Code of 1987 state: “Automatic Appropriations. — All expenditures for ... (b) principal and interest on public debt, ... are automatically appropriated.” </li></ul><ul><li>Copied exactly from Marcosian law, Sec. 31 (B) of Presidential Decree 1177. </li></ul>
  21. 21. The Solution: Automatic Appropriations for Education <ul><li>Legislate an Automatic Appropriations Provision for Education to be incorporated in the Revised Administrative Code of 1987. </li></ul><ul><li>Such legislation will compel legislators to make a choice between DEBT or EDUCATION , the Filipino students or its foreign lenders. </li></ul>
  22. 22. Where do we peg education spending? <ul><li>As discussed earlier, Delors Commission pegs real education expenditure at 6% of the Gross National Product (GNP) for developing nations such as the Philippines. </li></ul><ul><li>The international benchmark set by Delors was adopted by UNESCO. </li></ul>
  23. 23. Automatic Appropriation at 6% of GNP <ul><li>YAD proposes an automatic appropriation for education pegged at 6% of the projected GNP , as required by the Delors Commission standard for education spending. </li></ul><ul><li>This can be done in a gradual manner, with a 1% of GNP increase yearly for education spending until 2010 . </li></ul>
  24. 24. Activities <ul><li>Drafting a legislative bill seeking to automatically appropriate education spending at 6% of GNP, with a 3-year transitional period </li></ul><ul><li>Massive in-school, out-school signature campaign in support of the bill </li></ul><ul><li>Youth SONA! </li></ul><ul><li>Continuation of YAD’s Budget Engagement </li></ul>
  25. 25. sixwillfix.wordpress.com AUTOMATIC FOR EDUCATION APPROPRIATION NOW!

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