Demand-side financing in education

Demand-side financing in education

Publisher: IIEP
Serie: Education Policy Series
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Demand-side f nancing is a way in which the government can f nance private consumption of certain goods and services. In contrast to supply-side f nancing, where public funds go directly to suppliers, under demand-side f nancing consumers (or in the case of education, parents or students) receive a certain amount of money for specif c expenditures. There has been considerable attention devoted to demand-side f nancing in the literature and the popular press. Approaches that allocate f nancial incentives to families in order for their children to attend school and programs that channel public funds for education through the benef ciary and their family are reputed to be more eff cient uses of resources and more effective at improving outcomes than most supply-side only interventions.Demand-side f nancing initiatives in education have been implemented in a number of countries. A number of these have been put in place to address the needs of families with children at risk of not attending school. Most involve cash payments to low-income families with children who regularly attend school. The transfers are contingent on the condition of regular attendance. The benef t levels are intended to offset some or most of the opportunity costs of sending children to school. In the best examples, the subsidies vary by grade and gender of the child to address higher opportunity costs as the child gets older and in some countries the higher tendency of girls to drop out.In most cases, demand-side programs are associated with increased school attendance rates and lower school drop-out rates. They can also be used in some cases to improve learning outcomes and to pursue other important goals such as gender equity and longer-term poverty reduction.

Divers
Authors Patrinos, Harry Anthony
Country
ISBN 978-92-803-1298-0
Date of publication 2007
Number of pages 21 p.

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