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Gminas in 2005 A WORLD BANK STUDY Public Disclosure Authorized Public Disclosure Authorized Reforming Education Public Disclosure Authorized Finance in Transition Countries SIX CASE STUDIES IN PER CAPITA FINANCING SYSTEMS Juan Diego Alonso and Public Disclosure Authorized Alonso Sánchez, editors WORLD BANK STUDY Reforming Education Finance in Transition Countries Six Case Studies in Per Capita Financing Systems Juan Diego Alonso and Alonso Sánchez, editors Copyright © 2011 The International Bank for Reconstruction and Development/The World Bank 1818 H Street, NW Washington, DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org 1 2 3 4 14 13 12 11 World Bank Studies are published to communicate the results of the Bank’s work to the development community with the least possible delay. The manuscript of this paper therefore has not been prepared in accordance with the procedures appropriate to formally-edited texts. This volume is a product of the staff of the International Bank for Reconstruction and Development / The World Bank. The fi ndings, interpre- tations, and conclusions expressed in this volume do not necessarily refl ect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judge- ment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmi ing portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruc- tion and Development/The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Internet: www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Of- fi ce of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: [email protected]. ISBN: 978-0-8213-8783-2 eISBN: 978-0-8213-8784-9 DOI: 10.1596/978-0-8213-8783-2 Library of Congress Cataloging-in-Publication Data has been requested Reforming education fi nance in transition countries : six case studies in per capita fi nancing systems. p. cm. ISBN 978-0-8213-8783-2 -- ISBN 978-0-8213-8784-9 1. Education--Developing countries--Finance--Case studies. I. World Bank. LB2826.6.D44R44 2011 379.1724--dc23 2011020610 Cover photo: “Original graffi ti by SP£ND, anonymous street artist, Oxfordshire, United Kingdom,” by Kate Mellersh. Contents Foreword .....................................................................................................................................xi Contributors ............................................................................................................................ xiii Acronyms and Abbreviations ................................................................................................xv Executive Summary .............................................................................................................. xvii 1. Reforming Education Financing Systems in Transition Countries: An Introduction to Six Case Studies .....................................................................................1 1.1. Introduction ...................................................................................................................1 1.2. From Input-Based Financing to Per Capita Financing ............................................2 1.3. About This Book ...........................................................................................................7 2. Per Capita Financing of General Education in Armenia .......................................... 10 2.1. Introduction ................................................................................................................. 10 2.2. Background ................................................................................................................. 11 2.3. The Design of the Funding Formula ........................................................................ 13 2.4. The Implementation of the Funding Formula ........................................................ 15 2.5. Assessment of Outcomes ........................................................................................... 18 2.6. Conclusions ................................................................................................................. 28 3. Per Capita Financing of Education in Estonia ............................................................ 33 3.1. Introduction ................................................................................................................. 33 3.2. Background ................................................................................................................. 34 3.3. The Design of the Funding Formula ........................................................................ 36 3.4. The Implementation of the Funding Formula ........................................................ 53 3.5. Assessment of Outcomes ........................................................................................... 60 3.6. Conclusions ................................................................................................................. 82 Annex A. Additional Statistics ......................................................................................... 87 Annex B. List of People Interviewed for the Country Case Study ............................. 98 4. School Vouchers in Georgia: Implementation of a Simple Idea in a Complex Environment................................................................................................... 101 4.1. Introduction ............................................................................................................... 101 4.2. Background ............................................................................................................... 102 4.3. The Design of the Funding Formula ...................................................................... 110 4.4. The Implementation of the Funding Formula ...................................................... 115 4.5. Assessment of Outcomes ......................................................................................... 120 4.6. Conclusions ............................................................................................................... 127 iii iv Contents 5. Student Basket Reform in Lithuania: Fine-Tuning Central and Local Financing of Education.................................................................................................. 133 5.1. Introduction ............................................................................................................... 133 5.2. Background ............................................................................................................... 135 5.3. The Design of the Funding Formula ...................................................................... 141 5.4. The Implementation of the Funding Formula ...................................................... 151 5.5. Assessment of Outcomes ......................................................................................... 170 5.6. Conclusions ............................................................................................................... 177 Annex A. Methodology of Student Basket .................................................................. 182 Annex B. Complete Table of Allocation Coeffi cients for Student Basket in 2007 ... 189 Annex C. List of People Interviewed for the Country Case Study .......................... 192 6. Per Capita Financing of General Education in Poland: A Case Study ................. 198 6.1. Introduction ............................................................................................................... 198 6.2. Background ............................................................................................................... 199 6.3. The Design of the Funding Formula ...................................................................... 204 6.4. The Implementation of the Funding Formula ...................................................... 212 6.5. Assessment of Outcomes ......................................................................................... 222 6.6. Conclusions ............................................................................................................... 238 Annex A. Additional Statistics on School Funding .................................................... 242 Annex B. List of People Interviewed for the Country Case Study ........................... 249 7. Per Capita Financing of General Education in Russia: An Assessment of the Financing Reform in the Chuvash Republic and the Tver Oblast .................. 252 7.1. Introduction ............................................................................................................... 252 7.2. Background ..............................................................................................................
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