With more than 260 million children and young people throughout the world not in school, the need to provide support for education globally is more important than ever. In a new article appearing in the Stanford Social Innovation Review, Justin W. van Fleet and Liesbet Steer, co-directors of the Education Commission, describe the value of the proposed International Finance Facility for Education as a way to make donor dollars go further in support of global education.
The authors cite Pakistan as a country that is making significant strides in reducing the number of out-of-school students. They note, however, that Pakistan will require external funding to continue these gains. Currently, the country is eligible for low-interest loans from the World Bank and regional development banks. As it moves up the middle-income ladder, however, it will no longer qualify for such funding support, and borrowing money at higher interest rates to finance education will be challenging.
The proposed International Finance Facility for Education would create a new stream of education credits for lower-middle-income countries and would also help these countries mobilize additional funds from donors to subsidize—or completely pay down—interest rates on these credits. The authors believe the facility could generate an additional $10 billion annually starting in 2020 to make quality education possible for children worldwide, particularly in lower-middle-income countries.
To learn more, read the full article.