Reforming Education Finance in Transition Countries

A WORLD BANK STUDY
Reforming Education
Finance in Transition
Countries
SIX CASE STUDIES IN PER CAPITA
FINANCING SYSTEMS
Juan Diego Alonso and
Alonso Sánchez, editorsWORLD BANK STUDY
Reforming Education Finance
in Transition Countries
Six Case Studies in Per
Capita Financing Systems
Juan Diego Alonso and Alonso Sánchez, editorsCopyright © 2011
The International Bank for Reconstruction and Development/The World Bank
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ISBN: 978-0-8213-8783-2
eISBN: 978-0-8213-8784-9
DOI: 10.1596/978-0-8213-8783-2
Library of Congress Cataloging-in-Publication Data has been requested
Reforming education fi nance in transition countries : six case studies in per capita fi nancing systems.
p. cm.
ISBN 978-0-8213-8783-2 -- ISBN 978-0-8213-8784-9
1. Education--Developing countries--Finance--Case studies. I. World Bank.
LB2826.6.D44R44 2011
379.1724--dc23
2011020610
Cover photo: “Original gra ffi ti by SP£ND, anonymous street artist, Oxfordshire, United Kingdom,” by
Kate Mellersh.
4Contents
Foreword .....................................................................................................................................xi
Contributors ............................................................................................................................ xiii
Acronyms and Abbreviations ................................................................................................xv
Executive Summary .............................................................................................................. xvii
1. Reforming Education Financing Systems in Transition Countries: An
Introduction to Six Case Studies ..................................................................................... 1
1.1. Introduction ...... 1
1.2. From Input-Based Financing to Per Capita Financing ............................................ 2
1.3. About This Book ...........................................................................................................7
2. Per Capita Financing of General Education in Armenia .......................................... 10
2.1. Introduction ................................................................................................................. 10
2.2. Background ................................................................................................................. 11
2.3. The Design of the Funding Formula ........................................................................ 13
2.4. The Implementation of the Funding Formula ........................................................ 15
2.5. Assessment of Outcomes ........................................................................................... 18
2.6. Conclusions ................................................................................................................. 28
3. Per Capita Financing of Education in Estonia ............................................................ 33
3.1. Introduction .... 33
3.2. Background .. 34
3.3. The Design of the Funding Formula ........................................................................ 36
3.4. The Implementation of the Funding Formula ........................................................ 53
3.5. Assessment of Outcomes ........................................................................................... 60
3.6. Conclusions ... 82
Annex A. Additional Statistics ......................................................................................... 87
Annex B. List of People Interviewed for the Country Case Study ............................. 98
4. School Vouchers in Georgia: Implementation of a Simple Idea in a
Complex Environment................................................................................................... 101
4.1. Introduction ............................................................................................................... 101
4.2. Background ............................................................................................................... 102
4.3. The Design of the Funding Formula ...................................................................... 110
4.4. The Implementation of the Funding Formula ...................................................... 115
4.5. Assessment of Outcomes ......................................................................................... 120
4.6. Conclusions ............................................................................................................... 127
iiiiv Contents
5. Student Basket Reform in Lithuania: Fine-Tuning Central and Local
Financing of Education.................................................................................................. 133
5.1. Introduction ............................................................................................................... 133
5.2. Background ............................................................................................................... 135
5.3. The Design of the Funding Formula ...................................................................... 141
5.4. The Implementation of the Funding Formula ...................................................... 151
5.5. Assessment of Outcomes ......................................................................................... 170
5.6. Conclusions ............................................................................................................... 177
Annex A. Methodology of Student Basket .................................................................. 182
Annex B. Complete Table of Allocation Coe ffi cients for Student Basket in 2007 ... 189
Annex C. List of People Interviewed for the Country Case Study .......................... 192
6. Per Capita Financing of General Education in Poland: A Case Study ................. 198
6.1. Introduction ............................................................................................................... 198
6.2. Background ............................................................................................................... 199
6.3. The Design of the Funding Formula ...................................................................... 204
6.4. The Implementation of the Funding Formula ...................................................... 212
6.5. Assessment of Outcomes ......................................................................................... 222
6.6. Conclusions ............................................................................................................... 238
Annex A. Additional Statistics on School Funding .................................................... 242
Annex B. List of People Interviewed for the Country Case Study ........................... 249
7. Per Capita Financing of General Education in Russia: An Assessment of
the Financing Reform in the Chuvash Republic and the Tver Oblast .................. 252
7.1. Introduction ............................................................................................................... 252
7.2. Background ............................................................................................................... 253
7.3. The Design of the Funding Formula ...................................................................... 255
7.4. The Implementation of the Funding Formula ...............................