Education Finance Watch 2024: The Growing Challenges in Global Education Funding

The Education Finance Watch 2024 highlights the growing challenges in global education financing, emphasizing persistent funding gaps, declining aid, and the increasing burden of public debt on education budgets. Governments must adopt smarter, more equitable investment strategies to ensure sustainable educational outcomes.

The Education Finance Watch (EFW) 2024 report, published by the World Bank in collaboration with the Global Education Monitoring (GEM) Report and the UNESCO Institute for Statistics (UIS), provides a critical analysis of global education financing. While overall education spending has risen, substantial disparities persist, especially in low-income and lower-middle-income countries (LICs and LMICs), highlighting an urgent need for more equitable and efficient resource allocation.

Persistent Gaps in Education Spending

Significant shortfalls remain in many LICs and LMICs despite an increase in total education expenditures. In 2022, LICs spent an average of just US$55 per child annually, while LMICs allocated US$309 per child—figures that fall drastically short of the necessary investment to ensure quality education and tackle the ongoing learning crisis. The financial constraints in these countries are exacerbated by inefficient spending, further limiting educational outcomes and opportunities.

A Call for Smarter Investments

Governments worldwide must increase and optimize education budgets. Many nations face systemic inefficiencies in public financial management, school administration, and teacher performance. Strategic investments in cost-effective policies and better governance could maximize the impact of available funds, ensuring resources are allocated where they are needed most.

Foreign Aid Declines as Priorities Shift

Although absolute aid for education in LICs has grown, its relative share has declined over time. In 2019, education aid constituted 9.3% of total international assistance, but by 2022, it had dropped to 7.6%, as global donors redirected funding to other urgent sectors. This trend raises concerns about the sustainability of education financing in the world’s most vulnerable regions.

The Growing Debt Burden on Education Budgets

A particularly alarming trend is the rising share of public debt servicing relative to education spending. In some countries—especially in Africa and South Asia—governments now allocate nearly as much per capita to debt repayment as they do to education. Nations like Ghana, Zambia, and the Republic of Congo are facing mounting fiscal pressures that squeeze their education budgets, further exacerbating existing disparities.

Data Transparency: The Key to Informed Policymaking

Reliable, timely, and disaggregated data on education financing is crucial for informed policymaking. Many countries struggle with inconsistent or delayed reporting, making it difficult to assess trends and allocate resources effectively. Governments must enhance their education data systems to enable better decision-making and international comparisons.

The Education Finance Watch 2024 underscores the urgent need for greater and more efficient investment in education worldwide. While funding has increased, persistent gaps, declining aid, and mounting debt burdens call for immediate action. Governments, donors, and policymakers must work collaboratively to ensure sustainable, equitable, and high-impact education financing, paving the way for a brighter, more inclusive future.