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Will Formula-Based Funding and Decentralized Management Improve School Level Resources in Sri Lanka?

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  • Nisha Arunatilake
  • Priyanka Jayawardena
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    Abstract

    Using the experience of the Educational Quality Inputs (EQI) Scheme in Sri Lanka, the paper examines the distributional aspects of formula-based funding and efficiency of decentralized management of education funds in a developing country setting. The study finds that the EQI fund distribution is largely pro-poor, with the exception of expenditure at the collegial level. The study finds that allocating more funds to more disadvantaged schools alone is insufficient to reduce disparities as the inability of schools to fullly utilize the funds holds back progress. The study findings support the hypothesis that qualified principals, adequate levels of human and physical resources, and state-level monitoring and support is needed for the success of education management at the school level. The study highlights the need to better use information collected from the schools on the EQI scheme to simplify and improve its implementation and effectiveness.

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    Bibliographic Info

    Paper provided by PEP-PMMA in its series Working Papers PMMA with number 2008-12.

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    Date of creation: 2008
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    Handle: RePEc:lvl:pmmacr:2008-12

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    Keywords: Education finance; Sri Lanka; formula-based funding; decentralized management of schools;

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    1. Gunnarsson, Victoria & Orazem, Peter & Sanchez, Mario A. & Verdisco, Aimee, 2004. "Does Local School Control Raise Student Outcomes?: Theory and Evidence on the Roles of School Autonomy and Community Participation," Staff General Research Papers 11417, Iowa State University, Department of Economics.
    2. Galiani, Sebastian & Gertler, Paul & Schargrodsky, Ernesto, 2008. "School decentralization: Helping the good get better, but leaving the poor behind," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 2106-2120, October.
    3. Yasuyuki Sawada, 1999. "Community Participation, Teacher Effort, and Educational Outcome: The Case of El Salvador's EDUCO Program," William Davidson Institute Working Papers Series 307, William Davidson Institute at the University of Michigan.
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