IFFEd PROSPECTUS
The International Finance Facility for Education If no action is taken, about 400 million girls will not be on track to have the skills needed for employment in 2030. CONCLUSION
The International Finance Facility for Education Make impossible possible IFFEd PROSPECTUS The International Finance Facility for Education is a groundbreaking way to finance education in countries around the world. By multiplying donor resources and motivating countries to increase their own investments, the Facility will unleash tremendous new funding streams for education. The Facility has the power to help tens of millions of children go to school and prepare millions more young people for the future of work. The opportunity to give every child a quality education is within our grasp. It’s time to make impossible possible.
Photo: Dominic Chavez/World Bank CONCLUSION
More than 260 million children and youth are not in school today. Over half a billion school-age children will end up without a primary education because they drop out of school at a young age or learn very little. In 20 African and Asian countries, more than half of the adult population is unable to read and write. In total, 750 million adults are illiterate, and 500 million of them are women.
The problem is so severe that by 2030, more than half of the world’s children and young people – over 800 million – will not have the basic skills or qualifications needed for the modern workforce.
The deepening crisis The knowledge divide is widening. Learning standards in the typical low- and lower- middle-income country – and across Africa – are 100 years behind today’s average high-income country. On current trends, it will take until after 2100 for all countries to reach the targets set in the United Nations’ Sustainable Development Goal 4 (SDG 4) – and ensure that all children complete primary and secondary education. That timeline falls far short of the global community’s pledge to meet the SDGs by 2030.
Without immediate action, the global community will break its promises to the world’s children. Progress has stalled as domestic investment has not kept pace with the need for education funding and support from international aid budgets has gone into reverse. Funding for education, which was 13 percent of all international aid a decade ago, has been falling and is now 10 percent. All aid to education in developing countries combined offers only US$10 per child – not enough to pay for a secondhand textbook, let alone a quality education. P2
Photo: EU/ ECHO and Save the Children The education crisis is creating a wide and persistent divide between children who have access to skills and opportunity – and those who do not. Half of the next generation won’t be able to escape poverty, improve their health and well-being, or build more stable, secure, and peaceful communities.
But the human faces behind these statistics are the most
heartbreaking. Instead of being in school, children will be IFFEd PROSPECTUS trapped as laborers, brides, soldiers, and victims of trafficking. Aspiring doctors, lawyers, teachers, and innovators of tomorrow will never realize their talents. This is a loss we cannot afford.
The plight of refugees and displaced children
Long-term funding to rebuild education systems after emergencies is urgently needed. There are 11 million refugee boys and girls and 20 million children displaced in their own countries. About 75 million children have their education disrupted due to disaster or conflict. Only three percent of humanitarian budgets goes towards getting refugees into school. Some crisis appeals are only one percent funded.
The International Finance Facility for Education
#MakeImpossiblePossible P4 the reductions in adult mortality can be attributed to gains attributed be can mortality adult in reductions the of one-third of life. Around quality abetter and communities, peaceful and stable equality, more gender opportunities, employment families, to leads healthier Education of it. out themselves to the means lift people young by giving poverty extreme to possible it end making Goals, Development Sustainable generation. our of struggle rights civil the is education universal Delivering Education’s promise andyouth’s demands and opportunity. to so they all have access education world’s children equal to We promises to the our on of deliver need people. young It’s time for all of enthusiasm us to and match the courage to desire their move to exploitation education. from safety.school Youth like out never about before arespeaking for campaigns are leading people –young shootings school the threat of liveto under students the States United –where – the threat of kidnapping live under students –where Nigeria from places diverse in And America. Latin in fees for education reduce and India, in labor stop child Bangladesh, in marriage change. demanding are themselves people young news that is good The by 20 percent. involved conflict in boy’s of risk becoming adolescent an reduces of schooling year war, additional of civil every the and probability decreases literacy rates and enrollment school secondary that increasing suggests strongly Evidence security. also increases Education digital economy. and global increasingly our in participate can people young all skills, theright With women. young and girls educating in Young people are at the forefront of efforts to end child to child end Young ofare at the forefront efforts people The benefits of learning cut across all the across cut of learning benefits The Education will drive growth THE FOUR TRANSFORMATIONS: INCLUSION in an uncertain future
In the coming decades, as technology, demographic shifts, and globalization continue to rapidly reshape the world we live in, economies will rise and fall depending on their intellectual resources more than their physical resources. DEFAULT ICON IFFEd PROSPECTUS The old routes to full employment are closing as manufacturing produces more with less and even Africa, with only 10 percent of employment in manufacturing, will need to adjust to a changing labor market. Future jobs based on technical skills will matter more to developing economies.
By 2030, up to half of today’s jobs – around two billion – are at high risk of disappearing due to automation. This reality will radically alter what many countries need to maintain productivity, with both a demand for new types of high-level skills and a growing dependence on the global labor supply.
The World Bank has shown that nearly 70 percent of all capital is human capital – and if we fail to invest in it we will be left behind. The World Bank’s forthcoming Human Capital Index will provide new insights into the impact of countries’ investment in their next generation with metrics and comparisons.
The path to growth for developing economies will depend less on traditional forms of export-led growth than on education-led growth. If countries want to do more, there must be additional resources available to help them improve investments in their most important asset: people. The International Finance Facility for Education will provide an additional tool for countries to improve the performance, innovation, and inclusion of their education systems.
As more countries move up the ladder from low-income status – which can only happen with radical, disruptive education interventions – the global community will be less vulnerable to instability, extremism, migration, and health-related crises.
Photo: Paul Saad P6 financing gap in countries on the road to universal education. roadthe to on education. universal countries in gap financing the bridging in role will play the Facility a crucial education, in investments domestic increase and revenue themedium-term in to tax expand efforts with hand-in-hand investment. Working to and reform committed for countries ofstream finance a new creating further, go can so it funding donor multiply investment in history. education largest achieve the to collectively community international the and countries for possible make it would and plan abold is Education for Facility Finance International The A newway to financeeducation • • • • to education right the way anew for to finance support Growing for education. countries $1.5system about provides a year to billion lower-middle-income (MDB) bank the entire multilateral and development education to goes aid of humanitarian percent Less than three declined. investment has education while decade, the past in doubled have investments infrastructure in In addition, more. billions private of from several philanthropists contributions large not including annually now billion at$20 for health, support toamounts $12 just ayear. billion with contrasts growing This for education donors Multilateral official bilateral from aid and gap. financing persistent and aunique will fill Facility The regional development banks support the Facility. support banks development regional the four and the World Bank, UNSecretary-General, The Germany. Hamburg, the 2017 at Declaration Leaders’ Joint their in in G20 meeting for the Facility support urged ministers prime and Presidents the International Finance Facility for Education. into with that action transformed the SDGs be demanding have apetition signed people million than one More for all. education secondary and primary quality for the SDGs including timetable 2030 to led the UN’s which education, to universal action deliver In 2015, demanding petition 10 aglobal signed people million This innovation in global finance will will innovationfinance This global in
The Facility will complement, not replace or duplicate, current initiatives in education finance. It will enhance World Bank and regional development bank financing for low-income and lower- middle-income countries, and work alongside international actors such as the Global Partnership for Education; the Education Cannot Wait fund; UN agencies such as UNICEF, UNESCO, UNHCR, and UNRWA; bilateral donors; and thousands
of charities worldwide. IFFEd PROSPECTUS
What will the Facility’s impact look like? According to our estimates, the Facility will create opportunities for more than 20 million children to attend quality schools in its initial period. It will help girls complete both primary and secondary school, support programs to get at-risk children into school, provide longer-term finance for refugees or displaced children, allow for new innovations in the delivery of education, assist countries as they build comprehensive early childhood development programs, and provide support for initiatives to bring children with disabilities into education. In short, the Facility will contribute to developing all talents of all children.
The International Finance Facility for Education
Photo: Lana Wong/Education Commission
#MakeImpossiblePossible Why the Facility is essential to achieving Sustainable Development Goal 4
Low-income countries (LICs) have new means to finance education. While low-income countries (LICs) – the poorest of the poor – have traditionally faced some of the greatest barriers to education, recent developments have made it easier for them to get financing. Low-cost financing has grown thanks in part to the World Bank’s $75 billion replenishment of its financing available to low-income countries which allows for a 50 percent increase in financing for LICs through grants and favorable lending terms. In addition, many donors are giving greater priority to the poorest countries in their foreign aid portfolios, and more grant resources have been mobilized through the successful Global Partnership for Education (GPE) replenishment and the recent establishment of the Education Cannot Wait fund (ECW). Efforts to make World Bank financing even more affordable through subsidies for interest rates could double the financing available to these countries. All these resources create a pathway forward for LICs that want to make progress on education.
But lower-middle-income countries (LMICs) face a structural challenge. They lose access to the funds they once had as LICs and their tax base cannot cope with their education needs. The funding drop-off is startling. Recent analyses show that, of the $40 billion in funding available for middle- income countries from the multilateral development banks, less than one percent goes to education in all of Africa and Asia combined!
These countries face an untenable choice: stop sending children to school or borrow money at much higher or commercial rates that saddle them with risky debt. Recent reports show significant increases in commercial debt in a number of countries. Even as LMICs mobilize substantial additional domestic resources, existing grant finance is not sufficient and they still have a gap that needs to be filled with additional, affordable financing.
The Facility provides LMICs with longer-term, predictable, and sustainable funding to help achieve SDG 4. It keeps their education financing options more constant and avoids a sudden systems shock by extending the highly concessional terms that LMICs once enjoyed, and offering funding with a grant element of more than 50 percent. By providing affordable “bridge financing,” these countries can continue investing in their education systems during this critical stage of their development. They won’t face the choice of taking on expensive commercial debt or denying education to millions of children. Filling a critical gap in funding
The proposal for the Facility was a recommendation of the International Commission on Financing Global Education Opportunity. The Commission consisted of global leaders including current and former presidents, prime ministers, and ministers, experts in finance, civil society champions, and leaders from international organizations – including the World Bank, UNESCO, UNICEF, and the Global Partnership for Education. The recommendations of the Commission also benefited from 130 civil society consultations conducted in over 80 countries across six continents.
The Commission envisions a new education financing structure that would enable countries committed to reform to realize what we call the “Learning Generation” – a generation where all children are in school and learning. This structure has three basic building blocks:
1 More domestic resource mobilization
2 Increased international aid
3 New funding instrument to multiply donors’ impact
Photo: Roy Kaltschmidt P10 3 2 1 Saharan Africa, and the total cost of universal education would thetotal and education of universal cost Africa, Saharan sub- in child ayear, to average, on aschool-age educate $400 over just Itcosts will persist. shortfall afinancial systems, education of their improve and performance the education in investments their However, augment countries even if poorer 2030. now and between to over 6percent least at just 4percent from countries middle-income in and 3 to from rising 5percent countries low-income in education’s of share budgets national to education. commitments financial own and reform their up ramping countries involves middle-income low- block and building first The the multilateral development banks. banks. multilateralthe development potential of theuntapped by harnessing for education funding create and new resources to donor multiply instrument a new Education for Facility Finance International to the create is all for education finance to fully block building third The 2030. in billion $20 and 2020 of $10 gap least at financing education an still be in billion would there aid, increased and mobilization resource domestic of Yet organizations. optimistic scenarios the most even under multilateral through of more that funding channel and 0.7 aid, on of spending of income national gross percent thetarget to approach gradually budgets aid their augment countries time that atthe same all donor would happen today to 15percent by critical. –is 2030 percent 10 from aid ofinternational share education’s – increasing finance education in block building second why the That’s of unrealistic. GDP is simply 4 percent average of about to this level the current spending from ofshare education to able towill be cover. raise countries their developing Asking these countries in budgets education is than what far more by 2030. to This than 7percent more countries middle-income (from all sources) to than 10 more of lower- GDP and percent to total raise countries their investment low-income require The Commission’s vision includes includes Commission’svision The This growth growth This –
FundingFunding needed needed to achi toeve achieve Sustainable Development Goal 4 Sustainable Development Goal 4
Funding source Current investment Required investment Sources
Governments should improve their tax 1. Domestic collection s ystems (including through resource % addressing tax avoidance alongside wider mobilisation 4 % tax reforms ) and dedicate more of this 6 increased revenue to education. (Education budget as a % of Gross Domestic Product)
Donors must move towards contributing 0.7% of GDP to Overseas Development 2. Aid to Assistance. To be more effective, a larger % share of this increasing amount should education 10 % be spent multilaterally through the 15 Global Partnership for Education, Education Cannot Wait, UNICEF, UNRWA, (Percentage of aid going to education) other agencies, and IFFEd.
Increased bilateral + multilateral aid Funding gap primarily focused on Even if the above targets are fully met, lower-income countries there will still be a funding gap for global education . Bridging this gap requires an innovative solution. IFFEd creates $10 billion in additional investments
so lower -middle-in come countries do not suddenly lose their concessional funding for education
3. International IFFEd would request contributing Finance Facility governments to provide guarantees which ~$ B ~ would be used to leverage new finance. for Education 2 $ B Guarantees 10 Some of the additional aid money generated (IFFEd) (point two above) would be used to make $2B in guarantees combined with $2B in grants, these terms concessional. creates $10B in new finance
Backstage at the 2017 Global Citizen Festival in Hamburg: President Mauricio Macri and First Lady of Argentina Juliana Awada; Commissioner Julia Gillard; Commission Co-Convener and Norwegian Prime Minister Erna Solberg; Commissioners Helle Thorning-Schmidt and Shakira Mebarak; Malawian education advocate Wongani Nyirenda; and Commission Chair Gordon Brown Photo: Global Citizen P12 school age, more than three times the number in LICs. Sixty Sixty LICs. in times than the number three more age, school boys to and of girls are home million 700 countries These to has LMICs. shifted burden of the world’s education Much funding. education adequate getting from prevents them –that dilemma middle” –a“missing problem astructural face lower-middle-income countries (LMICs). These countries often of needs financing education the targets specifically Facility The “missing middle” countries The financingdilemmaof precarious economic success hangs in the balance. the balance. in hangs success economic precarious their but to education, are eager make on progress countries These own. their on education to wealthynot finance but enough favorable at – they’re too rates funding wealthy to external get conundrum leaves middle” This a “missing in many stuck LMICs need. systems desperately education that their upgrades and the expansion to finance enough have quickly not increased of these receipts countries the tax At time, the same education. to loans interest-free or finance low-interest, for grants, qualify not do and ground Many have LMICs economic gained LMICs. in will be needs financing education of the total percent global 80 2030, By youth. displaced and asof half do all refugee by LMICs, in reside basic skills 2030 to track not on have people young and of all children percent
Facility will also use grants to soften the financing terms will also use grants toFacility thefinancing soften The for education. funding usethismarkets additional and will capital in allowFacility MDBs to mobilize financing more the countries, by donor provided results. guarantees Using and to reform, investment, committed countries in education of the MDBs to for more do the capacity will increase Facility education. for funding ofaffordable stream anew with LMICs to is these provide Facility ofthe purpose central The financing forthe “missing middle” The solution:increasing education new fundingforeducation The InternationalFinanceFacility creates education. global in utilizing money aid way of makes cost-effective the most it model Facility’s The investments.to for education attractive make more them T The InternationalFinance The Facility gene International Finance Every $1 T IFF CON CON r r aditio G $ $ $ aditional aidforeducation Ed u 100 100 100 G T T a g R R ener r nal aid is essential, r of aid ant ant I I BUTIO BUTIO ates new s e M M M e leads s N N r
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IFFEd PROSPECTUS P14 • • • The Facility runsonabasicsetofprinciples: • efficiently leverage financing and deliver development development deliver and financing leverage efficiently Efficiency. contributing to SDG 4 on a sustained basis. to asustained 4on SDG contributing MDBs therole play on in toinformation accessible be will the investments also track more allowing of the MDBs, Facility results. The deliver help and management, risk active debt and mobilization resource domestic encourage plans, sector education with will align theFacility through forSustainable financing results. years of operation. $10 few its in first of investments billion new education in investments existing mobilize the MDBs and from double Itwill scale. considerable reach times than four and more aid Scale. investment. for educational manageable and affordable more Affordability. level. atthe country actors new no require and Itwill mechanisms use existing assistance. The Facility has the potential Facility to The traditional multiply creates about $4 in additional investments. additional in $4 creates about guarantees $1 in Every packages. finance to grants create and guarantees affordable combining by funding new generates countries and aid is not sufficient. IFFEd lower-middle-income in exist gaps Large The Facility will harness MDBs’ power MDBs’ to will harness Facility The The Facility will soften loan terms making them them terms making loan will soften Facility The Investments mobilized
IFFEd PROSPECTUS
The International Finance Facility for Education
Photo: Morgana Wingard/USAID #MakeImpossiblePossible P16 • and additional financing for education. innovation an is on new based that will Facility generate The How itworks • • • urgent needs today needs to urgent realize to the right education. make revenues and available future to pay capacity for tax their increase can countries mobilization, resource domestic on a focus placing By approaches. integrating results-based on (d) and agreement an if necessary, budget education its domestic increase and its budget within national education (c) distress, of risk debt a high to prioritize the commitment theMDBs without through to lending takeability additional on (b) have the plan, sector (a) education of a credible evidence to will need Countries are met. criteria if certain this financing commitment. country The includingfinancing, grants and loans. of concessional in $5 billion package a total financing creating MDB in financing, billion $4 would unlock Facility the through $1 channeled aid in billion instance, For effective. will make toinvestment. aid This grant times four LMICs more for educational affordable and attractive financing new the making terms, concessional to very reduced be can to theFacility, contributed aid grant the terms of this money using By credits. into affordable more financing leveraged component. grant The for education. financing new in billion $4 would leverage $1 timesfour by guarantees in example, For the MDBs. billion by approximately multiplied be value of could the guarantees the suggest Projections countries. eligible in for education to make financing and leverage available additional and new if they use it –only theWorld and Bank Development, and for Reconstruction Bank the European Banks, Development Inter-American and available Asian, to MDBs –the African, leverage. The to $10 contribute need maymillion only cash. in million for $100 theFacility guaranteeing adonor example, For cash. 10 only and expenditure to 15 to in paid will be need percent as public will guarantees not count donor In many cases, for education. MDBs to lending increase enabling countries, by contributing provided guarantees through financing new Facility. to the guarantee donor The The Facility will make Facility its base guarantee The The Facility will convert this newly this newly will convert Facility The Countries will only be able to access to able be access will only Countries The Facility will leverage leverage will Facility The The Country Commitment
Elegibility for International Finance Facility for Education EligibilityCountries criteriamust: for International Finance Facility for Education Countries must:
The Country Commitment
Have a credible Be able to Commit to mobilizing Integrate results- education sustainably take on more domestic based performance Elegibility for International Finance Facility for Educationsector plan more development funding IFFEd PROSPECTUS targets Countries must: bank financing
Have a credible Be able to Commit to mobilizing Integrate results- education sustainably take on more domestic based performance sector plan more development funding targets bank financing
• Participating countries lead the way. The Facility’s funds will be used by countries for government-led education initiatives aligned with the sector plan and national education goals. Governments will lead in determining educational priorities and how to deliver education aligned with the right to education and SDG 4. Civil society will play a key consultative role in setting all priorities and plans.
• What the funding covers. Initiatives that will be eligible for Facility funding include early childhood programs; support and professional development for teachers; girls’ education programs; basic education programs; vocational and skills training programs; and programs addressing the most marginalized or children with disabilities. Innovations in teaching and learning will be moved to the center of the education agenda. Governments will be encouraged and The International enabled to invest in new approaches and adapt to future needs. Finance Facility for Education • Working behind the scenes. The Facility is a financial mechanism, not a delivery organization. With a staff of about ten people, the Facility will focus on monitoring and working through the MDBs to increase and improve funding for education. All existing sector planning and delivery mechanisms will remain the same and no new actor will be present at country level as the MDBs will be the entity interfacing with governments.
#MakeImpossiblePossible P18 Côte d’Ivoire has recognized the value of education, recently recently thevalue of hasCôte recognized education, d’Ivoire Côte d’Ivoire the Facility: from benefit could that afew are just countries Here funds. existing other through countries thepoorest in available for education become to financing will allow it grant more and countries, income many in lower-middle- of gap than 50 the more financing education an will fill of stream new funding Facility’s The Who willbenefit it critical to offer affordable alternatives through the Facility. alternatives through to affordable offer critical it making rising, of stocksshare has been private its in debt debt the low but Kenya’s is deemed future. risk sustainability debt of arestill out of children numbers high but education, free introducing after enrollment school Kenya increased drastically Kenya Facility. the through potential is strong to funding up There scale to education. allocated of has been total 2 percent MDB financing only level. aid To –ten million times the current $400 date, nearly to to up is add expected gap financing as the external short to billion by $2 will billion 2025, still it over fall $4 nearly from education on spending its domestic doubles if Côte d’Ivoire mandating that all children receive a primary and lower- and aprimary receive that all children mandating secondary education to obtain the necessary skills to skills to thenecessary obtain education secondary Adding to this strain, the country faces a shortfall in in ashortfall faces to the country Adding this strain, the system across are persistent. inequalities and school education has stagnated at around $40 million. Even million. $40 has around stagnated at education continue their education or thrive in the labor force. force. thrivethelabor in or education their continue financing that cannot be filled by increased domestic domestic by increased filled be that cannot financing million on average, with declining levels likely the in declining with average, on million $100 atjust stands 2025. to aid International education by will exist billion $2 of gap about financing external 2015 in billion $3 from to 2025, atotal in $6billion its spending doubles Even if the country alone. spending to of aid share international The remain. challenges populations, rates disadvantaged and for girls enrollment low rates, and dropout and repetition high of learning, However, low levels youth agrowing with population, of out-of-school children are among the highest in the world. Even world. the in if the highest among are children of out-of-school that its fact the rates and crises of strain regional the added considering particularly for education, funds in shortfall a significant faces Pakistan Pakistan the Sustainable Development Goal for education. Development Sustainable the 2009-2011. achieve and the gap Guatemala bridge help could Facility The access, education improving in strides Guatemala has significant made Guatemala to 4. needs achieve SDG Vietnam’s immediate financing bridge help could the Facility investment, domestic strong and plan sector education Vietnam’s with its financing aligning By amount. the needed below much rates, strong completion school primary has high country The decades. over three the past education in gains has impressive made Vietnam Vietnam children. school-age million to than 2 more educate helping resources, investment domestic from additional in million by matched than $500 be more could the Facility gender parity, and a low out-of-school rate. But progress is fragile as is rate. fragile progress But alow out-of-school parity, and gender but progress is constrained by high rates of inequality and low levels and rates by high of is constrained inequality progress but by filled be that cannot financing in ashortfall is facing Vietnam finance. to access loses graduates concessional and country the of learning. To will haveof to learning. the country improvements, accelerate been has already Vietnam alone. spending domestic increased spending 20 percent of its budget on education since 2008. Even if 2008. since education on of its budget 20 percent spending never meet this need. While domestic spending on education is education on spending domestic While this need. never meet for money. Each additional $100for money. additional Each of million investment through more than double its domestic spending on education by 2025, education on spending its domestic than double more increased domestic investments, and provide greater provide value investments, and domestic increased encourage resources, aid grant scarce multiply could Facility ratios – the the world in ofhas thelowest one tax-to-GDP revenues the country – given by of government lack constrained only $53 million dollars in 2014-2016, in dollars million $53 only in million $63 from down averaged to education financing International shrinking. been has to aid international education have costs rising, while been Unfortunately, to billion. over are projected costs reach $4 when annually, million at$230 stands currently years and recent in falling has been for education by 2025. financing International of than $1 gap more billion finance will haveand external an needed to billion able will the $30 2025, not be it now reach and between spending its education than doubles more country the Pakistan more than doubles its domestic spending on education education on spending its domestic than doubles more Pakistan than four times the current levels of available. aid will timesthan four aid the current Grant to $16 more billion, of with a gap $3 by left will billion be 2025, it
IFFEd PROSPECTUS THE FOUR TRANSFORMATIONS: FINANCE
DEFAULT ICON
The Facility offers an opportunity to upgrade the international development financing architecture and use aid more effectively. There are many benefits for contributing countries:
• Value for money: Contributing countries can provide guarantees and leverage their resources through the MDBs, generating new resources for education and creating the greatest value for money. Providing grants to the Facility will allow donors to unlock new financing for education. Every grant dollar could unlock $4 of new financing, and combined with $50 in domestic resources, make better use of aid.
• Greater country investment and reform: The Facility will require countries to have clear sector strategies including plans for reforms. Countries using financing from the Facility will commit to increasing domestic spending for education, thus helping them move towards aid independence.
• Working through existing mechanisms: The Facility will work through the existing MDB structure. It will require no new in-country actors and encourage greater efficiencies. Maximizing the impact of donor funds • Self-sustaining business model: The Facility will be self-sustaining and require no additional financing for its core operations. All costs of running the Facility will come from its revenue stream.
• Financial safeguards: The Facility will work directly with AAA- rated MDBs and comply with extensive financial safeguards. P20 THE FOUR TRANSFORMATIONS: INCLUSION
DEFAULT ICON
What does success look like?
In its initial phase, the Facility will unlock $10 billion in new funding for education from the international community. When matched by an additional $100 billion in domestic investment by recipient countries that reach increased domestic targets as proposed by the Education Commission, the Facility could make it possible to provide an additional 200 million years of IFFEd PROSPECTUS quality schooling for millions of children – offering them the opportunity for a better future.
Here’s how it would work: In the first round of funding, donor countries will provide the Facility with about $2 billion in guarantees, which will then be leveraged to create up to about $8 billion in new financing. By blending this financing with $2 billion of grant funding, IFFEd would help mobilize a total of more than $10 billion in affordable financing for education.
It takes time for the education of children to affect national economies, but if we can realize the Learning Generation, GDP per capita in low-income countries will be almost 70 percent higher by 2050 than if current trends continued. Extreme poverty rates will be reduced by one-third due to education alone. By 2050, the mortality reductions from education improvements, measured in years of life gained, will be nearly equivalent to if the world eradicated HIV and malaria deaths today.
Most importantly, young people will be prepared for the job market of the future, ready to become the next generation of innovators, teachers, and leaders – and able to realize and The International contribute all their talents. Finance Facility for Education
#MakeImpossiblePossible P22 make possible. impossible isThere no time to waste. and for interests economic –will immense. be areality.become payoff The –both for humanity Education, the vision of the Learning Generation can With the International Finance Facility for and the of obstacles birth lottery they face. children realize their full potential regardless of the collective future than education. We all help can isand learning. There no investment better in our of new dollars financing to children get in school formodel education funding that will billions unlock worldThe to needs together come and create anew Now it’s education’s turn and adaptation. have transformed funding for climate mitigation Climate Investment Funds andGreen Climate Fund, toCopenhagen Paris, as well as the creation of the last few years, climate agreements change from the health sector and saved millions of lives. In the of have which billions channeled of dollars into and Malaria andGAVI, the Vaccine Alliance, both create the Global Fund to Fight AIDS, Tuberculosis anda halfA decade ago, cooperation such helped international have can efforts profound impact. History shows that innovative and concerted The timeisnow The LearningGeneration: Let’s get started and and started get Let’s
IFFEd PROSPECTUS P24 Photo: Caroline Gluck/Oxfam Caroline Photo: Annex 1: Lower-middle-income countries – today through 2030
Lower-middle-income countries today East Asia & Pacific Latin America & the Caribbean Cambodia * Bolivia Federated States of Micronesia El Salvador Indonesia Guatemala Kiribati † Honduras Lao PDR * Nicaragua IFFEd PROSPECTUS Mongolia Middle East & North Africa Myanmar Djibouti * Papua New Guinea † Egypt * Philippines Jordan Solomon Islands † Morocco * Timor-Leste Syria Vanuatu * † Tunisia * Vietnam * West Bank & Gaza South Asia Yemen Bangladesh † Sub-Saharan Africa Bhutan Angola India † Cabo Verde * Pakistan † Cameroon * † Sri Lanka † Congo, Rep. * Europe & Central Asia Côte d'Ivoire * Armenia * Ghana *† Georgia Kenya † Kosovo Lesotho † Kyrgyz Rep. Mauritania * Moldova * Nigeria † Tajikistan São Tomé and Príncipe * Ukraine Sudan Uzbekistan Swaziland † Zambia †
Lower-middle-income countries in 2020 and 2030 Anticipated LMIC by 2020 Anticipated LMIC by 2030 Benin * Afghanistan Chad * Burkina Faso * Senegal * Comoros * Tanzania † Ethiopia Guinea-Bissau * Haiti * Note: Not all LMICs will be eligible for Mali * financing from the Facility. Countries Marshall Islands will need to meet certain criteria and participation should not raise debt Mozambique † sustainability issues. Nepal * Of the current LMICs, 17 are Rwanda * † member states of the International Sierra Leone † Organisation of La Francophonie. Ten more francophone countries will Togo * become lower middle income by 2030. Uganda † † Of the current LMICs, 15 are Commonwealth countries. Five more Commonwealth countries will become lower middle income by 2030. #MakeImpossiblePossible
The International Commission on Financing Global Education Opportunity
@educommission [email protected] educationcommission.org