Non-traditional financing for education

Non-traditional financing is nascent and accounts for only a small percentage of current education spending. In terms of what is working, evidence is limited. Some non-traditional financing instruments with a longer history in education, for example cash transfers, vouchers and PPPs have shown signs of success in certain contexts, but there are still many gaps in evidence, especially in Africa. Some have only recently been implemented in education, for example social impact investing and PbR. Some are not in developing countries, for example SIBs, and therefore cannot yet demonstrate when and how they may work most effectively. Other instruments have yet to be implemented in education at all, for example DCDBs and diaspora bonds. To evaluate the potential of the various instruments, the topic guide presents a high-level assessment, using the following criteria: impact on learning outcomes; equity; enabling governments to deliver on their responsibilities; potential additional funds; sustainability and predictability of funding; innovation; efficiency; and ease of implementation.