Budgeting for Education: Bolivia, Honduras and Nicaragua
Evaluation and Monitoring of Poverty Reduction Strategies - 2005
NIEK DE JONG , ARJUN BEDI , JUAN PONCE & ROB VOS - ISS
In the context of the alignment of poverty reduction strategies with the Millennium Development Goals (MDG), there is a clear need for output-oriented budgets. Accordingly, many countries, including Bolivia, Honduras and Nicaragua, have taken steps to make their budgets more result-oriented. The main findings of this report are that net primary school enrolment rates have increased in the three countries in the past decade, but that more progress needs to be made in raising the quality of education. Further, the cost-effectiveness analysis has shown that - within reasonable limits - it will apparently not be feasible to reach the MDG of 100% net primary enrolment in Bolivia, Honduras and Nicaragua, using only one or more of the education policy instruments considered in the enrolment models estimated for these countries. This suggests that apparently one also has to look at demand-side variables - in particular the reduction of poverty - to reach the goal of universal primary education.