There is a $59bn a year black hole in the global education funding budget.
Current recovery plans fall short of what is needed to fix this crisis.
If we’re serious about delivering Sustainable Development Goal 4 - equitable and inclusive quality education for all by 2030 – then world leaders need to step up.
The scale of the global education crisis is mind-boggling.
Even before Covid-19 struck, there were 258 million children who did not have a place in school. It was forecast that more than 50 per cent of young people would not have the most basic reading and maths skills by 2030. Millions would either never set foot in a school or dropped out early.
The impact of pandemic, which at its peak locked 1.6 billion children out of school, has made the challenge of providing quality education even more acute, with an estimated 24 million children at risk of never returning to education. The most marginalised and underserved – children with disabilities, minority populations, low-income families and girls – have been pushed further to the margins.
Contracting economies mean many government budgets will be smaller at a time when the need for investment in education has increased dramatically. Without quality education, the next generation faces the threats of child labour, poor health, early marriage and intergenerational poverty. Drastic action is needed.
$75 billion a year needs to be mobilised to put the world’s children on track for universal education. But current funding falls far short of the money needed. In fact, there is at least a $59bn a year black hole in the global education funding budget.
Current aid levels are falling far short of the average annual need over the next 10 years to fund SDG 4.
Hoping for increased aid to fill the gap, while most countries are cutting aid, is unrealistic.
We need to fund our current efforts and add something to the mix to help us reach our goal. And the International Finance Facility for Education (IFFEd) is ready to open for business, to generate the resources necessary to fill its part of the gap.
What is the International Finance Facility for Education (IFFEd)?
The International Finance Facility for Education (IFFEd or the Facility) is a major innovation that will tackle the global education crisis and, if fully supported by the international community, be a game-changer for millions of children, giving them the quality education that they deserve.
IFFEd “supercharges” education finance, creating new pools of funding strictly dedicated to supporting a country’s education system and existing plans.
International donor countries – the likes of the UK, Netherlands, Germany, the U.S, - supply guarantees, which are then used by multinational development banks (MDBs) to raise finance on the international money markets.
Find out more here:
The Education Finance Playbook
A practical guide for governments, donors and philanthropists to fund quality, inclusive education for all by 2030.
The Education Finance Playbook provides much-needed clarity and shows how Sustainable Development Goal 4 – equitable and inclusive quality education for all by 2030 – can be achieved. It will require nothing less than a Marshall Plan for education recovery across the globe.
The playbook identifies a price tag of $75 billion a year, on average, that the international community needs to mobilise to put the world’s children on track for universal education. It recommends a three-point plan to fund education post-pandemic, showing that Sustainable Development Goal 4 is within reach if it is taken seriously and if stakeholders innovate.
Take action & help us close the Education Funding Gap
We’re calling on world leaders at the G7 Summit in June to prioritise education in their recovery plans because currently the numbers just don’t add up.
We’re urging them to:
- Support all the major funds for education such as the Global Partnership for Education and Education Cannot Wait
- Invest at least $1 billion of new money in innovative financing through the International Finance Facility for Education (IFFEd)
$1bn invested in IFFEd could help raise another $25bn+ of available funds for lower-income countries to fund education projects.