Scaling-up ECCD in Africa Cost, Financing and Use of New Funding Such As Conditional Cash Transfers and EFA-Fast Track Initiative Marito Garcia PhD The World Bank, Washington DC Africa Regional ECCD Workshop Zanzibar, Tanzania, October 26-28, 2009

ECD improves schooling success!

What to fund in ECD 0-3 age groups? Maternal and child health, immunization Growth monitoring and promotion Nutrition supplementation Parenting education Child care at community, home or center

What to fund in ECD 3-6 up to 8 age groups Pre-primary education (preschools, kindergarten, creches, nursery schools) Nutrition, food supplements Parenting education Child care at community, home or center Preschool teachers training

Unit cost of ECD provision: Some recent data Per child costs South Africa $315/year (0-3 age) $240/year (4-6 age) Kenya Madrassa $198/year (4-6 age) Zanzibar Madrassa $ 126/year (4-6) Uganda Madrassa $198/year (4-6) Egypt $145/year (4-6) Bangladesh $36/year (4-6) Algeria $235/year (4-6)

Projected annual costs ECCD 0-6 programmes are large and unaffordable! Cost Per child # Children Total Guinea $ m $ 132-m Kenya m 835-m Liberia m 19-m Mali m 267-m Niger m 148-m Nigeria m 5.2-b Malawi m 129-m Mozambique m 835-m Senegal m 362-m Tanzania m 607-m Uganda m 416-m

Financing options for ECD Financing options for ECD Public sector budgets Community and parents Civil society including community, NGOs, church, mosques, private foundations Private sector

Public funding of ECD Public funding of ECD Sweden > 80% UK> 80% France> 80% US60% South Africa 40% Indonesia5% Lesotho5% Kenya2% Uganda1% Source: UNESCO 2006

Who provides funding for ECD Services in Africa? Who provides funding for ECD Services in Africa? In general, the public sector does not provide for ECD services in Africa. Only less than 1%! ECD is primarily the responsibility of parents! Thus, ECD funding and service delivery in the hands of: ----Communities ----Parents associations ----Private sector ----International, National NGOs ----Religious organizations, church, mosques

Making the case for ECD Public Funding Percent ECD Funding to Total Education Budgets to Increase From current 1% to 5% of Education Budgets. MOE to be consciously programming

Making the case for public financing of ECD programs (a) Colombia’s 2% payroll tax pay (b) Nigeria’s public funding from 5% of UBEC Intervention Fund © Eritrea’s ECD credit from the WB (d) California’s funding from tobacco tax

New ideas for financing of ECD service delivery from Africa and rest of the world! Kenya (Public funding plus Private Foundations) –NACECE, DICECE, Bernard van Leer Foundation –Aga Khan Foundation South Africa (40% public funding) –Grade R –New national ECD programme with employment creation for females Lesotho (Public funding through borrowing) –Grade R, with funding from WB Eritrea (Public funding through borrowing) –Integrated ECD with 5 ministries Lagos (Nigeria) –Private sector led delivery and funding

New and creative ideas for financing ECD ! Colombia: 2% payroll tax financing of ECD California, USA: 30% of tobacco tax used to finance ECD programs Philippines: 20% of Casino gambling tax earmarked to finance ECD programs Nigeria: Earmarked 5% of the National UBEC Intervention Fund for ECD programs Brazil: Use of public-private partnerships in the Millenium ECD Fund

New Ideas for Public Funding of ECD Programs ! From the EFA-FTI Fast Track Initiative Catalytic Funding New programs in Social Protection such as Conditional Cash Transfers Borrowing from WB or other international agencies (Indonesia, Yemen, Eritrea)

Fast Track Initiative Countries with Catalytic Funds: $1.2 billion Benin Burkina F. CameroonCARepublicsEthiopia The Gambia GhanaGuineaKenyaLesothoChadMalawiUgandaBurundiTanzaniaZambiaMadagascarMaliMauritaniaMozambiqueNigerRwanda St. Tome & Prin Senegal Sierra Leone Yemen Approved Pipeline

CCT has spread from Mexico Turkey Palestine Kenya Burkina Faso Swaziland Mozambique Sri-Lanka Bangladesh Pakistan Cambodia Mexico Jamaica Dominican Republic Nicaragua Honduras Costa Rica Colombia Ecuador Brazil Peru Chile Paraguay Total Countries: 21 since 1997 Source: Garcia and Mulaa (World Bank) 2005

Cash transfers programs: Africa Cash transfers programs: Africa Source: Garcia and Moore 2009

Countries with Cash Transfers Programs in Africa, Source: Garcia and Moore 2009 Countries in which cash transfer programs have been discussed, planned, or implemented Countries with no known dialogue surrounding cash transfer programs Countries excluded from the study

Mexico CCT Program Oportunidades Provides: Monthly Cash and Food Payments to Women in Eligible Families IF People in the Families Use Education and Health Services

Four components: Oportunidades Education Scholarships (higher for girls than for boys) conditional on assistance $25 Average monthly cash transfer to the mother in the family Health Regular check-ups in health clinics In kind + Nutrition Cash transfer + Nutritional suplement conditional on women training $15 $40 + Total Assets $8 Savings account, conditional on graduation

Conditional Cash Transfers Programs: Examples Mexico Oportunidades $4-billion Brazil Bolsa Familia $ 5-billion Colombia Familias en Accion $ 1-billion Kenya CCT for OVC $180 million Nigeria CCT $300 million Ghana LEAP Program $30 million Senegal CCT $10 million South Africa Cash Transfers $ 6 billion Malawi Mchinji Cash Transfers $2 million Source: Garcia and Moore, 2009

CCT Programs in Africa: NEW programs emerging !! Kenya Conditional Cash Transfers for OVC $180 million Nigeria CCT Program $300 million GHANA LEAP Cash Transfers $30 million Ethiopia Productive Safety Nets (Cash transfers) $450 million South Africa Child Grants $1 billion