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...pan and the United States) (ibid: 39).sThere are many illustrations of aid waste. In one case, less than one per cent of assistance to asministry of health was found to actually reach health clinics (=-=Collier 2007-=-: 102); 11 per centsof aid has been found to actually finance the military (ibid: 103); and when allocated on thesbasis of ex ante policy conditionality, donors have been found to allocate aid in spit...

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...ts in India showed that a remedial education programme increasedsaverage test scores of treatment schools and a computer assisted learning programmesfocusing on math increased children’s math scores (=-=Banerjee et al. 2005-=-). Even the mostssevere critics of foreign aid, like Easterly, acknowledge positive effects of educationalsintervention programmes.sIt is also relatively recent that economists began to conduct macro-...

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...ernational financial institutions (Cullen 2008: 118). Some, including Africanss(Moyo 2009) have suggested that aid is dysfunctional (Calderisi 2006; Collier 2007: 99) andsshould be replaced by trade (=-=Easterly 2006-=-).sAid effectiveness is difficult to measure (Cullen 2008: 24). Evaluations may assess particularsprojects or programmes and sometimes these may lead to clear conclusions.4 Some agenciesshave been fou...

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...–52 to support the reconstruction ofs14 European countries, with the UK receiving the highest percentage (24 per cent) andsNorway receiving the highest allocation in per capita terms (US$136/person) (=-=Moyo 2009-=-:s1sAdapted from Heyneman (2012b).s2s12). The macro purposes of aid seemed to shift each decade––from war reconstruction (1940ssand 1950s), industrialization (1960s), poverty reduction2 (1970s), makin...

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...es helped stimulatesdemand for primary and secondary education (Bowman 1962).s10sTable 3: Ranking of donors on aid effort and qualitysAid quality indexessDonor country Aid effortasPoverty elasticitys(=-=Dollar & Levin 2004-=-)sPolicy elasticitys(Dollar & Levin 2004)sComposites(Roodman 2004)sDenmark 1 1 1 3sUK 3 3 2 1sNorway 2 2 3 5sFrance 4 5 6 2sUS 6 4 5 4sJapan 5 6 4 6sNote: a Aid effort is measured by ODA as a percenta...

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...rticipation in voluntary activities. It alsosinfluences the efficiency of public communications and the degree to which adults seek newsknowledge and skills over a lifetime (Blaug 1978; Schultz 1982; =-=McMahon 1999-=-).sHow communities learn, therefore, is a principal ingredient of their development. In modernseconomies, schools and universities are the primary means by which knowledge is passed tosnew generations...

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...tices, childrearing and participation in voluntary activities. It alsosinfluences the efficiency of public communications and the degree to which adults seek newsknowledge and skills over a lifetime (=-=Blaug 1978-=-; Schultz 1982; McMahon 1999).sHow communities learn, therefore, is a principal ingredient of their development. In modernseconomies, schools and universities are the primary means by which knowledge ...

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...rearing and participation in voluntary activities. It alsosinfluences the efficiency of public communications and the degree to which adults seek newsknowledge and skills over a lifetime (Blaug 1978; =-=Schultz 1982-=-; McMahon 1999).sHow communities learn, therefore, is a principal ingredient of their development. In modernseconomies, schools and universities are the primary means by which knowledge is passed tosn...

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...t of their development. In modernseconomies, schools and universities are the primary means by which knowledge is passed tosnew generations and how new knowledge is systematically incorporated (World =-=Bank 1995-=-).sEducation was first included as a component of foreign assistance in the early 1960s.sInitially, education aid was deployed to support workforce development plans, sosprogrammes emphasized vocation...

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...yneman, Anderson and Nuraliyeva 2008), leading to asdistrust of international financial institutions (Cullen 2008: 118). Some, including Africanss(Moyo 2009) have suggested that aid is dysfunctional (=-=Calderisi 2006-=-; Collier 2007: 99) andsshould be replaced by trade (Easterly 2006).sAid effectiveness is difficult to measure (Cullen 2008: 24). Evaluations may assess particularsprojects or programmes and sometimes...

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...sinconclusive. Although more studies show a modest positive relationship between educationsaid and enrolment, the estimated effects are rather low and are sensitive to different modelsspecifications (=-=Michaelowa and Weber 2006-=-). The relationship between aid and economicsgrowth is much more contested than aid on education outcomes. Implications from the effectsof aid on economic growth research is that when a study assumes ...

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... of the World Bank recommends a worldwide priorityson gathering data to monitor and evaluate educational progress and assisting countries tosbring this monitoring up to international standards (World =-=Bank 2011-=-). This seems sensible.s9sThis policy is diametrically opposite the policy of the UK whose development assistance agency (DFID) issforbidden by law to take British national interest into account.s10sH...

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...ecent trendssBilateral education aid has expanded during the 1960s to 1990s. It totalled US$3.4 billion ins1965, to up to US$6 billion in 1980, and then to US$3.9 billion (constant 1994 US$) in 1995s(=-=Mundy 2006-=-). However, the figure below shows that the increase has slowed after thes1990s. As of 2011, it accounts for US$11 billion (constant 2010 US$) worldwide, or about 8sper cent of total official developm...

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...cademic achievement and wide variation instheir quality from one part of the world to another. As a result, it is difficult to map educationsprogress in terms of enrolment, completion and efficiency (=-=Heyneman 1999-=-).sWeakened domestic institutionssIn some cases, instead of strengthening domestic institutions, aid can actually weaken thems(Heyneman 2006a). Policy decisions can be left to external authorities as ...

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...ary education should take precedence oversaid to higher education when in fact public investments in higher education in the United States helped stimulatesdemand for primary and secondary education (=-=Bowman 1962-=-).s10sTable 3: Ranking of donors on aid effort and qualitysAid quality indexessDonor country Aid effortasPoverty elasticitys(Dollar & Levin 2004)sPolicy elasticitys(Dollar & Levin 2004)sComposites(Roo...

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...on within the WTOs(Heyneman 1997, 2001). Schools are the world’s largest source of employment and a largessource of demand for computer software, furniture, chemicals, books and electronicsequipment (=-=Heyneman 2001-=-). Education aid has not taken sufficient account of thesmagnitude of the sector’s commercial vibrancy (Heyneman 2011b).sAid has had such a poor reputation that suggestions on how to improve it must b...

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...ore and better data on educational quality such as learning outcomes,swhich currently are restricted to upper middle-income countries. Many children completesprimary school without becoming literate (=-=UNESCO 2012-=-). Therefore, it is crucial tosmeasure learning outcomes to see the effect of educational aid, hence the need forsachievement assessments. But most conspicuous is the absence of aid’s impact on the so...

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...‘glamour aid’ madespopular by a variety of moral campaigners (2000s) (Moyo 2009).sThe first multilateral organizations consisted of UNESCO (1945), WHO (1948), UNICEFs(1946) and the World Bank (1944) (=-=Singh 2011-=-). Their mandates differ. Some are permittedsto grant project monies and do not need to be repaid (e.g., UN organizations), while othersssuch as the World Bank (IBRD), the International Monetary Fund ...

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...sionally without reliable information, but there is aswidening gap in the ability of countries to provide this information, with the result being thatsin many instances education data are unreliable (=-=Heyneman and Lykins 2008-=-). For example,sthere are no accurate counts of school attendance by student age, no accurate information onsunit expenditures, little evidence of trends in academic achievement and wide variation ins...

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...962).s10sTable 3: Ranking of donors on aid effort and qualitysAid quality indexessDonor country Aid effortasPoverty elasticitys(Dollar & Levin 2004)sPolicy elasticitys(Dollar & Levin 2004)sComposites(=-=Roodman 2004-=-)sDenmark 1 1 1 3sUK 3 3 2 1sNorway 2 2 3 5sFrance 4 5 6 2sUS 6 4 5 4sJapan 5 6 4 6sNote: a Aid effort is measured by ODA as a percentage of the donor country’s GNI. The data are from thesWorld Bank (...

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...per in 1980 thatsdiversified the analytic models for assessing education outcomes beyond forecastingsmanpower needs to include calculating the economic rates of return on education investmentss(World =-=Bank 1980-=-; Heyneman 2009, 2010). A common finding was that primary educationshad the highest economic returns, leading to calls for public financing to shift from higher tosprimary education, and for higher ed...

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...k of commitment on the part of the recipient (ibid: 108). Some have drawn a link betweensaid and corruption both in the recipient countries and in the donor agency (Klees, Samoff andsStromquist 2012; =-=Cullen 2008-=-: 110; Heyneman, Anderson and Nuraliyeva 2008), leading to asdistrust of international financial institutions (Cullen 2008: 118). Some, including Africanss(Moyo 2009) have suggested that aid is dysfun...

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...and aid volatilitysIn terms of the portion of the nation’s economy, Britain’s programme of assistance is threestimes the size of that of the US and half again the size of the assistance from Germanys(=-=Economist 2012-=-: 60). The total of UNESCO budget of US$989 million6 is about one-half thesbudget of an American research university (Heyneman 2011a). Though the World Banksallocates 20 times this amount to education...

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...n this figure.sUNESCO’s education budget was only US$54 million in each of 2008 and 2009 (17 per cent of total UNESCOsbudget), of which only US+$16.5 million was allocated for operational activities (=-=Fredriksen 2010-=-).s7sRawls’ (1971) second principle of justice states that public benefits should be targeted so that the greatestsbenefit would be captured by the least advantaged. Assisting a country with problems ...

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...rms of education assistance, aid constituted 70 perscent of the domestic education budget in Gambia, 66 per cent in Mozambique, 60 per cent insKenya, 55 per cent in Zambia, and 51 per cent in Rwanda (=-=Fredriksen 2011-=-). This level ofsdependency creates problems of many kinds, the most important of which is the impressionsthat national sovereignty has been ceded to external authorities.sInconsistencysChina received...

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...ndustrial machinery were still the most important priorities ofsdevelopment aid, but they needed skilled maintenance. Education aid was a way to make suresthe necessary skills were locally available (=-=Heyneman 2004-=-a).sBy the 1980s, education aid had grown to include primary and secondary education,shumanities and social sciences, professional education and education research. The shift wasstriggered by the Worl...

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... participate in international education. They supply goods andsservices, experiment with new institutions, lobby for new policies and generate newsinitiatives. About 80 per cent of them are American (=-=Heyneman 2005-=-) because charitablesgiving in the US is supported by the tax code and there is a relatively low marginal tax ons0 10 20 30 40 50 60 70 80 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 2...

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... thatsdiversified the analytic models for assessing education outcomes beyond forecastingsmanpower needs to include calculating the economic rates of return on education investmentss(World Bank 1980; =-=Heyneman 2009-=-, 2010). A common finding was that primary educationshad the highest economic returns, leading to calls for public financing to shift from higher tosprimary education, and for higher education to be f...

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...right, excessive donor coordination can reduce choice andscompetition, while leaving an aid-receiving nation more vulnerable to mistakes in directionsdue to short-term fads in development priorities (=-=Heyneman 2010-=-). Single-issue aidsprioritization also results in little assistance being directed to regions where that issue is notsthe problem. With regard to education aid, where basic education is not the most ...

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...t of the US and half again the size of the assistance from Germanys(Economist 2012: 60). The total of UNESCO budget of US$989 million6 is about one-half thesbudget of an American research university (=-=Heyneman 2011-=-a). Though the World Banksallocates 20 times this amount to education programmes each year, the portion of loans itsallocates to education is only 4 per cent, a level no higher than it was 20 years ag...

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... for allocating personal wealth properly, which are oftensoverseen by state institutions. In the case of Pakistan, for instance, the central governmentsministry of Waqf manages charitable activities (=-=Richardson 2004-=-: 156).s3 Recent trendssBilateral education aid has expanded during the 1960s to 1990s. It totalled US$3.4 billion ins1965, to up to US$6 billion in 1980, and then to US$3.9 billion (constant 1994 US$...