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Education finance in Egypt: Problems and a possible solution

Citation

Healey, F., Crouch, L., & Hanna, R. (2014). Education finance in Egypt: Problems and a possible solution. (RTI Press Publicaton No. OP-0017-1401). Research Triangle Park, NC: RTI Press. DOI: 10.3768/rtipress.2014.op.0017.1401

Abstract

Egypt, currently in the throes of major political change, will likely undergo various reforms in the next few years. Some reforms are likely to give local entities, including schools, greater control over education finances. In 2007, the Government of Egypt began to decentralize some non-personnel recurrent finances from the Ministry of Education and the Ministry of Finance (MOF) to lower-level jurisdictions using a number of simple and transparent enrollment- and poverty-based funding formulas. By 2010, a sizable amount of capital expenditure was also being transferred to lower levels of the system via similar equity-based funding formulas. Prior to these formula-based decentralization efforts, a large amount of education-related non-personnel recurrent finances had been moving from the MOF to the muderiyat. Analysis of these latter allocations reveals that they are highly inequitable on an inter-governorate per-student basis, ranging from EGP 966 per student in New Valley to EGP 25 per student in 6th of October. This paper examines the nature and potential causes of this inequity and puts forth a way in which these funds could also be transferred using an equity-based funding formula that “holds harmless” those muderiyat that would lose absolute amounts of money under a more equitable distribution scheme.

Author Details

Luis Crouch

Luis Crouch, (PhD, Agricultural Economics, University of California, Berkeley) is Chief Technical Officer within the International Development Group at RTI International. He has provided policy advice on data and finance to many governments around the world, has a long record of using data for policy advice, and has written extensively on the use of data for development planning and service improvement.

R Hanna

Rafik Hanna, BA, served as education decentralization specialist for the United States Agency for International Development’s (USAID’s) Girls’ Improved Learning Outcomes Project in Cairo, Egypt.