2 0 1 0 Education for All Global Monitoring Report
CHAPTER 4
Reforming the Fast Track Initiative
While there have been some real accomplishments, the initiative manifestly has not put the poorest developing countries on ‘an education fast track’
When the FTI was launched in 2002, Jim Wolfensohn, then president of the World Bank, hailed it as a ‘historic first step towards putting all developing countries on an education fast track that could transform their social and economic prospects’ (World Bank, 2002a). The FTI was widely seen as a catalyst for accelerated progress towards Education for All. While there have been some real accomplishments, the initiative manifestly has not put the poorest developing countries on ‘an education fast track’. The overall record is one of sustained underachievement – and reform is an urgent priority. Disappointment in the FTI has been heightened by the gap between its ambitions and its achievements. At its inception, the initiative was seen as embodying a new type of global compact between developing countries and aid donors aimed at achieving international development goals. Developing countries were to put in place credible plans for accelerating progress in education, with donors backing strengthened national efforts through increased, more effective and more predictable aid. Seven years on, the credibility of the initiative is at an all-time low, reflecting its poor record on delivery. The time is ripe for developing countries, donors and non-government organizations to reassess the FTI. An independent evaluation is scheduled to report on the FTI’s effectiveness and formulate proposals for reform.27 Several donors are pressing for more predictable arrangements for financial replenishment, including an initial US$1.2 billion commitment. Meanwhile, the new United States administration has signalled an intention to create a new global fund for education, though the details remain unclear. This backdrop creates an opportunity for far-reaching reform of the FTI.
27. The evaluation covers 2002-2008. The report is scheduled for late 2009. Working papers and the preliminary draft report, which were available at the time of writing, were referred to for this section.
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Seizing that opportunity is critical for progress towards Education for All. The FTI is not working, but a dynamic multilateral aid initiative could create a powerful new momentum towards reaching the targets set in Dakar in 2000. It could play a vital role in supporting countries that are off track for achieving the EFA goals and in mobilizing resources for marginalized groups. Unlocking the potential will require strong political leadership and greater
clarity, notably over the role of the FTI in mobilizing and delivering the additional finance needed to achieve the goals. This section provides a critical assessment of the Fast Track Initiative. It sets out the problems in governance, finance and country coverage. The scale of these problems rules out business as usual. Bluntly stated, the FTI in its current form is indefensible. Abolishing the current framework and developing a new multilateral blueprint from scratch is not the answer, however. The world needs an ambitious multilateral framework to accelerate progress towards the 2015 goals, and a reformed FTI is the most viable option. The following are among the key messages of this section:
The FTI has failed to mobilize and deliver financing on the required scale. The initiative has delivered too little aid with too many transaction costs. Initially it was envisaged that the FTI would galvanize resources indirectly through an ‘endorsement effect’, with its stamp of approval unlocking increased donor support. The Catalytic Fund was later introduced to provide direct support. There is no compelling evidence, however, that bilateral aid to FTI-endorsed countries has increased. Meanwhile, the Catalytic Fund has suffered from a weak and erratic donor support base and a large gap between commitments and disbursements. The FTI has left intact a failed approach to the assessment of financing gaps. Achieving the EFA goals will require a significant increase in aid financing. By this Report’s estimate, an additional US$16 billion is required annually to 2015. The FTI has not provided a vehicle for addressing this challenge. National plans still reflect donors’ assessments of what they can afford rather than what countries need, and fail to address the additional costs of reaching marginalized groups. Aid financing for education continues to be dominated by short-termism (with typical commitment periods of one to three years), poor predictability and limited support for teacher salaries. The FTI has in some cases weakened efforts to improve aid effectiveness and implement the Paris agenda. To be eligible for Catalytic Fund support, countries must meet the rules governing the release of funds from the World Bank’s International Development Association (IDA). National reporting and procurement