One of the indicators that can reveal the level of development of a country is the way it allocates its education budget. Education is a key factor for economic growth, social cohesion and human well-being.
However, not all countries invest in education in the same way or with the same efficiency. In this blog post, we will explore some of the aspects that determine how the education budget is spent and what are the implications for development.
The first aspect to consider is the size of the education budget. According to UNESCO, the global average public expenditure on education as a percentage of GDP was 4.8% in 2018. However, there is a wide variation among regions and countries.
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For example, Sub-Saharan Africa had an average of 4.5%, while Europe and North America had an average of 5.1%. Within each region, there are also significant differences. For instance, Norway spent 7.9% of its GDP on education, while Greece spent only 3.5%. These figures reflect the different priorities and capacities of each country to invest in education.
The second aspect to consider is the distribution of the education budget among different levels and types of education. Generally speaking, countries that spend more on pre-primary and primary education tend to have higher enrolment rates, lower dropout rates and better learning outcomes. These are the foundations for lifelong learning and skills development.
On the other hand, countries that spend more on tertiary education tend to have higher innovation rates, higher productivity and higher income levels. These are the drivers for economic competitiveness and social mobility. However, there is no optimal formula for allocating the education budget. Each country has to balance its short-term and long-term needs, as well as its equity and efficiency goals.
The third aspect to consider is the quality of the education spending. This refers to how effectively and efficiently the resources are used to achieve the desired outcomes. Quality of spending depends on many factors, such as governance, accountability, transparency, management, monitoring and evaluation.
It also depends on how well the education system is aligned with the labour market and the society’s needs and aspirations. Quality of spending can be measured by indicators such as student-teacher ratio, teacher qualification, learning materials, infrastructure, student assessment, etc.
How the education budget is spent is a sign of underdevelopment or development of a country. It reflects not only the number of resources available, but also the vision, strategy and performance of the education system. A well-spent education budget can contribute to economic growth, social cohesion and human well-being. A poorly spent education budget can lead to wasted potential, social exclusion and human suffering.
