Achieving education for all: how much does money matter?

Abstract

This paper explores the extent to which differences in the resources allocated to education explain differences in educational access and performance across countries. Cross-country regression analysis shows that the link between educational access and performance and public education expenditure is weak. The paper suggests that levels of household spending, the effectiveness of the public expenditure management system and the composition of public education spending are important factors explaining this weak link. The results imply that the achievement of the education millennium development goals will require more than just increases in expenditure on primary education. This does not imply that resources are unnecessary, but that increasing resources alone is unlikely to be sufficient. The composition of resources and institutions that govern the use of these resources play a central role in translating resources into better schooling outcomes. A stronger focus on these aspects of education systems will be required if the Millennium Development Goals in education are to be achieved. Copyright © 2005 John Wiley & Sons, Ltd.

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