Innovative Financing for Global Education. ESP Working Paper Series. 2013 No. 58

Innovative financing is a growing prospect and priority in the education sector, where over 57 million children and youth do not have access to schools, and the funding gap for achieving basic education for all is estimated at $26 billion. It has made a significant difference in meeting the UN Millennium Development Goals, especially in health, by generating more than $7 billion in additional financial resources through a range of new institutions and partnerships. This paper presents a comprehensive and practical analysis of the current state of innovative financing in global education. The report argues that education is a complex sector characterized by significant barriers to investment. But it also suggests how to break through these barriers using innovative financing such as solidarity levies and private sector investments through a global education investment bank. This research, carried out by the Innovative Finance Foundation, is part of the Open Society Education Support Program's efforts to identify innovative financing mechanisms and approaches that can increase the availability and allocation of resources for education systems. [This report was written with contributions by Diego Filmus and Taya L. Owens.]