Back Matter
  • 1 https://isni.org/isni/0000000404811396, International Monetary Fund

References

  • Appleton, Simon, 1999, “Education, Incomes and Poverty in Uganda in the 1990s,” CREDIT Research Paper No. 01/22 (Nottingham, England: Centre for Research in Economic Development and International Trade, University of Nottingham).

    • Search Google Scholar
    • Export Citation
  • Bernbaum, M., and others, 1998, Evaluation of USAID/Malawi Girls Attainment in Basic Literacy and Education (GABLE) Program (Washington: Academy for Educational Development).

    • Search Google Scholar
    • Export Citation
  • Birdsall, Nancy, and Francois Orivel, 1996, “Demand for Primary Schooling in Rural Mali: Should User Fees be Increased?Education Economics, Vol. 4 (December), pp. 27996.

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Bray, Mark, and Kevin Lillis, eds., 1988, Community Financing of Education: Issues and Policy Implications in Less Developed Countries (New York: Pergamon Press).

    • Search Google Scholar
    • Export Citation
  • Burnett, N., and R. Bentaouet-Kattan, 2002, User Fees in Primary Education (unpublished; Washington: World Bank).

  • Castro-Leal, Florencia, 1996, “Who Benefits from Public Education Spending in Malawi? Results from the Recent Education Sector Reform,” World Bank Discussion Paper No. 350 (Washington).

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Chad, Ministry of Education, 2002, “Education Sector Policy Statement: Support Program for Education Sector Reform in Chad,” (unpublished; N’Djamena).

    • Search Google Scholar
    • Export Citation
  • Chu, Ke-young, and Richard Hemming, eds., 1991, Public Expenditure Handbook: A Guide to Public Expenditure Policy Issues in Developing Countries (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Chu, Ke-young, and others, 1995, Unproductive Public Expenditures: A Pragmatic Approach to Policy Analysis, IMF Pamphlet Series, No. 48 (Washington: International Monetary Fund). Available via the Internet at http://www.imf.org/external/pubs/ft/pam/pam48/pam48con.htm.

    • Search Google Scholar
    • Export Citation
  • Disability Awareness in Action, 2002, A Real Horror Story: The Abuse of Disabled People’s Human Rights (London).

  • Easterly, William Russell, 2001, The Elusive Quest for Growth: Economists’ Adventures and Misadventures in the Tropics (Cambridge, Massachusetts: MIT Press).

    • Search Google Scholar
    • Export Citation
  • Filmer, Deon, 1999, “The Structure of Social Disadvantage in Education: Gender and Wealth,” World Bank Policy Research Report on Gender and Development Working Paper No. 5 (Washington).

    • Search Google Scholar
    • Export Citation
  • Fisman, Raymond, and Roberta Gatti, 2000, “Decentralization and Corruption: Evidence Across Countries,” World Bank Policy Research Working Paper No. 2290 (Washington).

    • Search Google Scholar
    • Export Citation
  • Gershberg, Alec Ian, 1999, “Fostering Effective Parental Participation in Education: Lessons from a Comparison of Reform Processes in Nicaragua and Mexico,” World Development, Vol. 27 (April), pp. 753771.

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Gertler, Paul, and S. Boyce, 2001, “An Experiment in Incentive-Based Welfare: The Impact of Progresa on Health in Mexico,” (unpublished; University of California, Berkeley).

    • Search Google Scholar
    • Export Citation
  • Gertler, Paul, and Paul Glewwe, 1989, “The Willingness to Pay for Education in Developing Countries: Evidence from Peru,” World Bank Living Standards Measurement Study Working Paper No. 54 (Washington).

    • Search Google Scholar
    • Export Citation
  • Gertler, Paul, and Paul Glewwe, 1992, “The Willingness to Pay for Education for Daughters in Contrast to Sons: Evidence from Rural Peru,” World Bank Economic Review, Vol. 6 (January), pp. 17188.

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Gupta, Sanjeev, Hamid Davoodi, and Rosa Alonso-Terme, 2002, “Does Corruption Affect Income Inequality and Poverty?Economics of Governance, Vol. 3, No. 1, pp. 2345.

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Gupta, Sanjeev, Hamid Davoodi, and Erwin Tiongson, 2000, “Corruption and the Provision of Health Care and Education Services,” IMF Working Paper 00/116 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Gupta, Sanjeev, Luiz de Mello, and Raja Sharan, 2001, “Corruption and Military Spending,” European Journal of Political Economy, Vol. 17 (November), pp. 74977.

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Gupta, Sanjeev, and Marijn Verhoeven, 2001, “The Efficiency of Government Expenditure: Experiences from Africa,” Journal of Policy Modeling, Vol. 23 (May), pp. 43367.

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Gupta, Sanjeev, and Erwin Tiongson, 2002, “The Effectiveness of Government Spending on Education and Health Care in Developing and Transition Economies,” European Journal of Political Economy, Vol. 18 (November), pp. 71737.

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Hillman, Arye L., 2003, Public Finance: Responsibilities and Limitations of Government (New York: Cambridge University Press).

  • Hillman, Arye L., and Otto Swank, 2000, “Why Political Culture Should Be in the Lexicon of Economics,” European Journal of Political Economy, Vol. 16 (March), pp. 14.

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Jimenez, Emmanuel, 1987, “Pricing Policy in the Social Sectors: Cost Recovery for Education and Health in Developing Countries,” (Baltimore: Johns Hopkins University Press for the World Bank).

    • Search Google Scholar
    • Export Citation
  • Jimenez, Emmanuel, 1989, “Social Sector Pricing Policy Revisited: A Survey of Some Recent Controversies,” in Proceedings of the World Bank Annual Conference on Development Economics (Washington: World Bank).

    • Search Google Scholar
    • Export Citation
  • Jimenez, Emmanuel, and V. Paqueo, 1996, “Do Local Contributions Affect the Efficiency of Public Primary Schools?Economics of Education Review, Vol. 15, No. 4, pp. 377-386.

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Jimenez, Emmanuel, and Yasuyuki Sawada, 1999, “Do Community-Managed Schools Work? An Evaluation of El Salvador’s EDUCO Program,” World Bank Economic Review, Vol. 13 (September), pp. 41541.

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Kadzamira, Esme, and Pauline Rose, 2001, “Educational Policy Choice and Policy Practice in Malawi: Dilemmas and Disjunctures,” IDS Working Paper No. 124 (Brighton, England: Institute of Development Studies, University of Sussex).

    • Search Google Scholar
    • Export Citation
  • Katav-Herz, S., 2003, “Public Policy To Discourage Child Labor When Social Norms Influence Fertility,” Review of Economics of the Household (forthcoming).

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Lockheed, Marlaine E., and Adriaan M. Verspoor, 1991, Improving Primary Education in Developing Countries (Washington: World Bank).

  • Mauro, Paolo, 1997, Why Worry About Corruption? Economic Issues No. 6 (Washington: International Monetary Fund). Available via the Internet at http://www.imf.org/EXTERNAL/PUBS/FT/ISSUES6/INDEX.HTM.

    • Search Google Scholar
    • Export Citation
  • McGee, Rosemary, 2000, “Meeting the International Poverty Targets in Uganda: Halving Poverty and Achieving Universal Primary Education,” Development Policy Review, Vol. 18 (March), pp. 85106.

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Mingat, Alain, and Jee-Peng Tan, 1985, “On Equity in Education Again: An International Comparison,” Journal of Human Resources, Vol. 20 (Spring), pp. 298308.

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Mingat, Alain, and Jee-Peng Tan, 1986, “Expanding Education Through User Charges: What Can Be Achieved in Malawi and Other LDCs?Economics of Education Review, Vol. 5, No. 3, pp. 27386.

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Mingat, Alain, and R. Rakotomalala, 2002, “Coverage of Primary Education in Chad: Analysis of the Multiple Indicator Cluster Survey (MICS 2000) of Households and Demographic Data of Education,” (unpublished; Washington: World Bank).

    • Search Google Scholar
    • Export Citation
  • Mingat, Alain, and Carolyn Winter, 2002, “Education for All by 2015,” Finance & Development, Volume 39 (March). Available via the Internet at http://www.imf.org/external/pubs/ft/fandd/2002/03/mingat.htm

    • Search Google Scholar
    • Export Citation
  • Morrisson, Christian (ed.), 2002, “Education and Health Expenditure and Poverty Reduction in East Africa: Madagascar and Tanzania,” OECD Development Centre Studies, (Paris, France; OECD)

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Nagy, Piroska Mohácsi, Joseph Karangwa, and Jean-Francois Dauphin, 2002, “Chad: Statistical Appendix,” IMF Country Report No. 02/28 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Oxfam, 2001, “Education Charges: A Tax on Human Development,” Oxfam Briefing Paper No. 3 (Oxford, England).

  • Oxfam, 2002, “Every Child in School: A Challenge to Finance and Development Ministers,” Oxfam Briefing Paper No. 20 (Oxford, England).

    • Search Google Scholar
    • Export Citation
  • Pritchett, Lant, and Deon Filmer, 1997, “What Educational Production Functions Really Show: A Positive Theory of Education Spending,” World Bank Policy Research Working Paper No. 1795 (Washington).

    • Search Google Scholar
    • Export Citation
  • Psacharopoulos, George, Jee-Peng Tan, and Emmanuel Jimenez, 1986, Financing Education in Developing Countries: An Exploration of Policy Options (Washington: World Bank).

    • Search Google Scholar
    • Export Citation
  • Reddy, S., and J. Vandemoortele, 1996, “User Financing of Basic Social Services: A Review of Theoretical Arguments and Empirical Evidence,” UNICEF Staff Working Papers Series (New York: United Nations International Children’s Emergency Fund).

    • Search Google Scholar
    • Export Citation
  • Reinikka, Ritva, and Jacob Svensson, 2001, “Explaining Leakage of Public Funds,” World Bank Policy Research Working Paper No. 2709 (Washington).

    • Search Google Scholar
    • Export Citation
  • Schultz, T. Paul, 2001, “School Subsidies for the Poor: Evaluating the Mexican Progresa Poverty Program,” Economic Growth Center Discussion Paper No. 834 (New Haven, Connecticut: Yale University).

    • Search Google Scholar
    • Export Citation
  • Thomas, Duncan, 1990, “Intra-Household Resource Allocation-An Inferential Approach,” Journal of Human Resources, Vol. 25, No. 4, pp. 63564.

  • Uganda, Ministry of Finance, Planning, and Economic Development, 2001a, Poverty Status Report (Kampala).

  • Uganda, Ministry of Finance, Planning, and Economic Development, 2001b, “Poverty Reduction Strategy Paper Progress Report 2001” (Kampala). Available via the Internet: http://www.imf.org/external/NP/prsp/200l/uga/01/INDEX.HTM

    • Search Google Scholar
    • Export Citation
  • Van Adams, Arvil, and Teresa Hartnett, 1996, “Cost sharing in the Social Sectors of Sub-Saharan Africa: Impact on the Poor,” World Bank Discussion Paper No. 338 (Washington).

    • Search Google Scholar
    • Export Citation
  • World Bank, 1993, “Ghana: Primary School Development Project,” Staff Appraisal Report No. 11760 (Washington).

  • World Bank, 1995a, Priorities and Strategies for Education: A World Bank Review, (Washington).

  • World Bank, 1995b, “Kenya Poverty Assessment,” Sector Report No. 13152 (Washington).

  • World Bank, 2002, “Achieving Education for All by 2015: Simulation Results for 47 Low-Income Countries,” Human Development Network: Africa Region and Education Department (unpublished; Washington).

    • Search Google Scholar
    • Export Citation
1

Sanjeev Gupta proposed this topic of investigation and provided helpful comments when the paper was in preparation. We have also benefited from the comments and observations of colleagues at the IMF and the World Bank, in particular Piroska Nagy, Dzingai Mutumbuka, Alan Gelb, Shanta Devarajan, Nick Burnett, Elizabeth Huybens, Mourad Ezzine, Barbara Bruns, James Yao, Hans Weisfeld, and Volker Treichel. For their comments, we thank the participants in the Silvaplana Workshop of Political Economy, in particular the discussant Peter Bernholz, as well as the participants in an IMF Fiscal Affairs Department seminar.

2

It should be noted that we often observe a hybrid situation in low-income countries, where primary schooling is compulsory, but not enforced, and user payments are informal.

4

The Millennium Goals were originally set out in the United Nations Millennium Declaration, adopted by all 189 Member States at the Millennium Summit in September 2000.

5

Net enrollment rates are enrollments based on the age cohort that should be at the level of a class. Gross enrollment rates take into account children who are not in the age cohort for a class: gross enrollment rates can therefore exceed 100 percent.

6

The primary completion rate is defined as the total number of students successfully completing the last year of the primary cycle, as defined for the country, in a given year, divided by the total number of children of official graduation age in the population.

7

This dichotomy can be used because the distribution of income or wealth in these countries is in general bimodal: that is, the countries lack a significant middle class.

8

The role of social norms in influencing the decision whether to send children to school has been studied by Katav-Herz (2003).

9

For example, government tax revenue as a percentage of GDP is 9.6 percent in the Central African Republic, 8 percent in Chad, 9.3 percent in Haiti, 9.1 percent in Niger, and 9.8 percent in Rwanda. However, low tax revenues and expenditure do not necessarily have to lead to low education indicators if spending is efficient (see Gupta and Verhoeven, 2001).

10

On problems of low productivity of public expenditures, see Chu and others (1995). For a study that confirms that public expenditures on education can be productive, see Gupta, Verhoeven, and Tiongson (2002). On the role of political culture in determining the effectiveness of public policy and public spending, see Hillman and Swank (2000).

11

Conditions in Uganda have improved, and recent surveys showed that leakage has fallen substantially. In the context of the Enhanced initiative for Highly Indebted Poor Countries (HIPCs), the World Bank and the IMF are helping countries to track poverty-reducing spending (including that financed from debt relief) through improved public expenditure management systems. See http://www.imf.org/external/np/hipc/2001/track/index.htm

12

See Hillman (2003), Chapter 8.

13

Allowing for only fixed costs is a simplification because some costs are per student (textbooks, pencils, etc.). Major costs can, however, be viewed as fixed and independent of the number of children in the classroom (up to the ceiling for effective learning).

14

User financing is often used to supplement public funds.

15

In some poor societies children are, unfortunately, purposefully disabled to allow income to be earned as disabled beggars. On abuses of disabled people’s rights, see Disability Awareness in Action (2002).

16

In richer countries also some evidence suggests that private schools based on user payments are generally more efficient. Again, parents sending children to private schools are making a market purchase as opposed to receiving benefits from government, and place more attention on evaluating and monitoring benefits.

17

Parental involvement, however, does not necessarily require user fees, as evident in some developed countries.

18

User payments also save the cost of disbursement through government bureaucracies.

19

Illegal user charges are prevalent in many transition economies, seriously eroding the access of the poor to education (See Gupta, Davoodi and Tiongson, 2000).

20

For example, in Kenya in 1992, user payments by parents financed 34 percent of the cost for primary education, 66 percent of the cost for secondary education, and about 20 percent of the cost for higher education, with the remainder financed through public spending (Van Adams and Harnett, 1996). In neighboring Tanzania, user payments covered about a third of the cost of schooling prior to their abolition (Oxfam, 2001).

21

Interview with Nick Burnett, Chief Executive, Burnett International LLC.

24

Strategies to enhance education developed by the governments and the World Bank, along with other donors, have taken into account Chad’s history of parental participation and community involvement, and rely on parent-teacher associations, formalizing their role in education (Chad, 2002).

25

The World Bank education project and the government are trying to address this issue by improving training for community teachers. Also, teachers are being trained to teach in areas where no teachers are currently present.

26

The families are also obliged to obtain preventive health care, participate in growth monitoring and nutrition-supplement programs, and learn about health and hygiene. Gertler and Boyce (2001) report that the outcome has been a significant improvement in the health of both children and adults.

27

Thomas (1990) shows that giving money to women increases the likelihood that money will be spent on children.

28

On Uganda, see also Appleton (1999).

29

These simulations imply benchmarks for average teacher salaries, pupil-teacher ratios, nonsalary recurrent spending, average repetition rates, private enrollment rates, and budgetary allocations to primary education.

30

Compulsory user payments may also lead to exclusion where payments are enforced, but school attendance is not.

31

By the criterion of Pareto efficiency (some persons are better off while no one is worse off), 45 attending school is better than none attending. Usual specifications of social welfare rank the outcome where some children are attending school (and others not) ahead of the situation where no child is attending school. For example, a Bentham specification of social welfare calls for maximizing ex ante or expected utility of children who do not know who they are going to be (that is, whether they will have parents who are willing or unwilling to pay the user price). Under such a view of social welfare, society is better off (expected utility is higher) when some children are educated although others are excluded. Using the alternative social welfare specification of Rawls requires identifying and sequentially maximizing the well-being of the worst-off person. The worst-off is an excluded child. The logic of Rawls is that, if the excluded child cannot be helped, no improvement takes place in social welfare by educating other children. This is an extreme view of social welfare that gives prominence to an objective of equal outcomes without regard for efficiency.

User Payments for Basic Education in Low-Income Countries
Author: Ms. Eva Jenkner and Mr. Arye L. Hillman