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Eqity and financing rado

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Equity of Financing and Financing for Equity. Palic, 2011.

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Eqity and financing rado

  1. 1. Equity of Financing and Financing for Equity The best fit of financing to a more equitable education system Péter Radó educational policy specialist senior consultant, Expanzió Consulting Ltd.
  2. 2. E q u i t y i n E d u c a t i o n
  3. 3. F i n a n c i n g f o r E q u i t y Two competing basic principles Categorical equity: unit cost (standardized inputs) are emphasized and equalized (the traditional access-oriented framework) Fiscal neutrality: learning outcomes and choice are emphasized, inputs are adjusted (financial argument for decentralization)
  4. 4. K e y s y s t e m i c f a c t o r s Governance The systemic environment that determines the latitude for school operations The quality of teaching and schools School System Characteristics External challenges with high impact on the school system
  5. 5. E q u i t y c o n t e x t • The magnitude of school failure in Serbia: more than fifth of students do not reach secondary enrollment, nine out of ten Roma children do not complete primary, more than half of the 15 years olds are functional illiterates = education gets rid of the most „problematic” children and offer poor average quality to the rest. • Large inequities and poor average quality is caused buy the combined effect of the failure of schools and governance failures • Distinction between medium- and long-term policy objectives. – Medium-term: improving participation (increased enrollment, decreased dropout and early school leaving) – Long term: improving learning outcomes (reduced learning failures) • Primary objective: enabling schools to respond to equity challenges by placing them to the appropriate systemic environment and by empowering them with the necessary pedagogical and institutional capacities
  6. 6. P o l i c y c o n t e x t Overcoming governance failures • Making school failures visible, strengthening professional accountability • Generating vested interests for avoiding school failure • Making easily accessible professional support to schools and children available • Extending the scope of professional, organizational and financial autonomy of schools • Effective anti-discrimination measures, strengthening legal accountability Acculturation of schools (teaching + school operations) • Making teaching more differentiated • Providing individualized supplementary support (drop-out prevention, inclusion) • Adjusting school operations to the problems to be solved (self-evaluation based school improvement)
  7. 7. The potential of normative financing The decline of dropout in primary education in Hungary after introducing per capita financing in 1991. School year Completion rate Number of school leavers without completed primary 1990/91 92,9 10300 1991/92 93,5 12400 1992/93 94,5 10000 1993/94 96,1 6800 1994/95 96,0 6600 1995/96 96,8 5000 1996/97 96,5 5200 1997/98 95,2 5000 1998/99 96,2 5200 1999/00 97,5 5000
  8. 8. How can be the vested interest of schools in full enrollment created? • Per capita based financial allocation + Setting hard budgetary constraints (it’s not automatically flows from normative financing!) + Perpetual adjustment of the capacities to the declining number of students enrolled (= local ownership instead of brainless central school network rationalization campaigns) → Two layers financial allocation system
  9. 9. Financial relationships at two levels Central financing Technically easy automatism that ensures minimum level efficiency + allows for flexible local financing regimes with revenue sharing + allows for using financing as policy instrument Local financing By balancing incomes and cost harmonizes the distinct logic of central financing and school level planning + allows space for adjusting to the diversity of local and school level diversity of educational needs
  10. 10. S u m m a r r y Financing for mainstreaming Centralized financing on a historical basis: schools are financed regardless of the task they perform (→ pupils with specific needs are taught in separate schools) Decentralized financing on the basis of categorical equity: emphasis of fairness of allocation ↔integration is financed but not inclusion → no space for ensuring fairness of outcomes Decentralized financing on the basis of fiscal neutrality: mainstreaming is financed = integration + differentiation + individualized supplementary support
  11. 11. A n e x a m p l e The evolution of Roma educational policies • „Paper based” demonstration policies – Success reports for the international community – Financing: long list of small-scale grass-root projects mainly funded by the donor agencies • „Ghettoized” policies – Roma education strategies or medium-term working plans (compilations) – Financing: set-aside for small grants + scholarship schemes + limited resources for development • „Mainstreamed” policies – Operationalization and implementation of mainstream strategies – Financing: • Roma education is a „horizontal goal” • Funding is incorporated to the normal allocation system (i.e. incentives) • Direct costs of development

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