“sustainable Financing For Higher Education: Lessons From Around The World”

“sustainable Financing For Higher Education: Lessons From Around The World” – Quality education for all, one of the Sustainable Development Goals (SDGs) agreed by the United Nations in 2015, is central to achieving the 2030 Agenda for Sustainable Development, especially in these times of global health and economic crisis, when societies worldwide seek to navigate. the social and economic impacts of the coronavirus (COVID-19) pandemic.

It improves health outcomes (SDG 3), equips people with the skills to secure decent jobs (SDG 8), the knowledge and skills to take action to combat climate change (SDG 13), and the values to build more inclusive and peaceful societies (SDG 16). It also has the potential to reduce inequalities, which is particularly important since inclusion and equality are at the heart of all policies (SDG 16) and the absence of which has been reinforced by the current COVID-19 pandemic.

“sustainable Financing For Higher Education: Lessons From Around The World”

Improved educational outcomes directly contribute to higher incomes and improvements in living standards. They are therefore one factor that contributes to higher tax revenues in the medium-long term, in addition to other factors such as job opportunities. The impact of education on tax revenue occurs via two main avenues:

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Taken together, these effects also provide an opportunity for governments to further reform their fiscal policy and administration to increase domestic revenue. This is particularly important for low- and middle-income countries where public resources are constrained, especially at the current time when so many countries are experiencing recessions caused by the COVID-19 crisis.

As illustrated in the figure above, improved education outcomes contribute to per capita income growth, which in turn increases the potential to raise tax revenue in an economy. With careful political and administrative choices, this potential can be translated into increased tax revenues. Many studies find that there is a positive and significant relationship between per capita income and tax revenue. Increased domestic resources provide governments with more resources, part of which can be allocated to education in line with international benchmarks. Understood and well spent, these resources can further improve education outcomes and complete a virtuous circle that helps achieve SDG 4 and other SDGs.

Education investment should be a priority at the center of any economic and social strategy for recovery post-COVID-19.

This virtuous circle will be even more important as we address the COVID-19 pandemic, which has already changed education, with school closures and the increasing offering of online education. Ensuring that these changes do not negatively impact students will be a critical part of education policy in the future, and will require an effective deployment of resources to address the changing situation. As we emerge from the crisis, additional investment in education will be a critical part of social recovery. Investing in education increases information and knowledge about health, as well as economic opportunities for countries to return to growth as quickly as possible and contributes to the creation of more cohesive societies. , in which every single person has the chance to develop his or her talents. In this sense, education investments should be a priority at the center of any economic and social strategy for recovery post-COVID-19.

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While the benefits of quality education for everyone are beyond doubt, the world has a long way to go to ensure this goal. There have been significant gains in access to education in recent years, but schooling is not equal learning for all: more than 617 million – or six out of ten – children and adolescents worldwide, mostly in low- and middle-income -Income countries, do not reach even minimum levels of skills in reading and mathematics.

In these countries, there is a strong correlation between increased spending and improved education outcomes. Nevertheless, there is an estimated 39 billion annual financial shortfall to achieve the SDG for education (SDG 4), and this shortfall mainly affects low- and middle-income countries. However, as our virtuous circle shows: the achievement of a quality education, itself, can contribute to closing this funding gap.

Funding for education in low- and middle-income countries comes mainly from two sources: domestic funding (governments as well as households) and international development cooperation. Domestic financing, of which tax revenues are the primary component, are by far the largest source of financing in these countries, dwarfing the resources provided by development cooperation (aid as a share of GDP in low-income countries is fell across the countries. last two decades, reached 7.9% in 2014, back to 9.1% by 2018). Work by the UN Inter-Agency Task Force on Financing for Development has shown that aid is a small proportion of total spending on education in low- and middle-income countries. Furthermore, while aid to education reached an all-time high of USD 15.6 billion in 2018, less than half of this goes to primary and secondary education and to low and low-income countries Means that need the most. Therefore, public domestic financing is the only source that has a real potential to grow and contribute to improved learning outcomes in low- and middle-income countries. A focus on boosting tax revenues can allow governments to invest in their priorities, especially education.

As reported by the UNESCO Institute for Statistics (UIS), one in three of the 148 countries with available data – all low- and middle-income countries – do not meet either of the two financing benchmarks set by SDG 4. -Education 2030 Incheon Declaration and Framework for Action: public expenditure on education of 4-6% of GDP and at least 15-20% of public expenditure. These benchmarks imply that countries must raise internal resources to finance a minimum level of total expenditure, corresponding to at least 20% of GDP. Most of these domestic resources must come from tax revenues.

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Many low- and middle-income countries have a tax-to-GDP ratio of less than 15%. These countries, in particular, must expand their tax base, as agreed at the Addis Ababa conference in 2015 as a necessary step to accelerate progress on SDG 4.

Understandably and well spent, tax revenues can further improve education outcomes and create a virtuous circle that helps achieve SDG 4 and other SDGs.

How money is spent is almost as important to learning outcomes and achieving SDG 4 as how much money is spent. The OECD Program for International Student Assessment (PISA) shows how countries with similar resources for education sometimes achieve very different learning outcomes. Above a certain level (about USD 50 000 per student between the ages of 6 and 15) most students achieve at least the minimum level of reading competence that is the benchmark for SDG 4: a score higher than 406 points on the PISA Scale. A number of countries fall below this expenditure threshold, including some OECD countries, and are far from certain that all their children will receive at least basic skills. Therefore, to complete our virtuous circle, it is necessary for countries to generate data and evidence for educational results through teaching assessments and other educational surveys on which to base effective policies and resource allocations to ensure that better teaching and learning takes place in schools.

If all countries can ensure that their children achieve at least the minimum level of skills in basic skills, such as literacy and numeracy, the economic results would be significant – even for high-income OECD countries. In low- and middle-income countries, OECD analysis suggests that the gains would be high: a current value of gains on average 13 times the current GDP of these countries. Translated into a percentage of future GDP, this implies a GDP that is, on average, 28% higher every year for the next 80 years for countries that achieve universal basic skills. In countries where only about 75% of school-age children are enrolled in school, the gains from improving the current quality of schools would be three times greater than those from expanding enrollment without the quality of to improve the education provided.

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For these countries, especially in a time of global health and economic crisis, the economic gains from the achievement of universal basic skills will exceed the cost of quality universal education and the achievement of the SDG for education. The registration is now open. Check out our new offerings for 2023–24: micro-certificates, 7-week courses, & enhanced degree residency.

Creating a more sustainable future requires an all-hands-on-deck approach from most industries – finance leaders included. Enter: sustainable finance.

The financial sector holds enormous power for funding and raising awareness of issues of sustainability, whether through research and development of alternative energy sources or supporting businesses that follow fair and sustainable labor practices.

Sustainable finance is defined as investment decisions that take into account the environmental, social and governance (ESG) factors of an economic activity or project.

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Environmental factors include the mitigation of the climate crisis or the use of sustainable resources. Social factors include human rights and animal rights, as well as consumer protection and various employment practices. Governance factors relate to the management, employee relations, and compensation practices of both public and private organizations.

Investment in companies and projects with sustainable ESG practices is already on the rise, as is the demand for financial professionals with expertise in this niche but fast-growing field. Bloomberg recently reported on the trend, saying it is already one of Asia’s most in-demand fields.

“Clients understand that the talent pool is very thin, especially in finding candidates with a proven track record

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