There is no reliable cross country data on private expenditures on education. This is an
important gap in data since private expenditures in publicly funded systems may be
substantial and comparable with expenditure per child by the state. Moreover very little
is known about how private expenditures behave in relation to public expenditures. It
will make a great deal of difference whether or not private expenditures remain a
constant proportion of public expenditure as public expenditure increases or declines.
Perverse results seem possible (Colclough with Lewin 1993). Where private disposable
incomes are declining (which has been the case in many Sub Saharan African
countries), the ratio of private to public expenditures may have changed in the direction
of reducing private contributions. Even where public expenditure has been increased
this may have resulted in a net decline in the total amount of expenditure per child on
education. In Malawi, Zaire, and Nigeria there appears to be evidence that the
introduction of fees has been accompanied by reductions in school attendance (Stewart
Moreover, UNICEF (1984) has argued a 2-3% decline in average incomes can easily
result in a 10-15% decline in the incomes of the poorest groups and an even larger
reduction in their disposable income. This suggests that where total expenditure
declines, and where enrolments drop as a result of increased direct costs of schooling, it
is likely to be the children of the poorest families that are most vulnerable to
withdrawal from school.
2.5.2 Cost recovery and user fees
Some of the issues raised by cost recovery policies are worth exploring further since it
seems likely they will continue to figure prominently in the policy debate. They are
discussed in Lewin (1987) and summarised here. Charging fees directly to those who
benefit from a service rather than indirectly through the taxation system is presumed to
have at least two main kinds of benefit improved accountability and increased
resources. Arguably it shortens the chain of accountability between the providing
agencies (predominantly schools) and the users of the service. Parents and pupils are
expected to value schooling more and place direct pressure on schools and teachers to
maintain quality. Fees for educational services may also increase educational
expenditure since they represent an addition to public subsidies. Where private
schooling is encouraged this reduces the demand on the public system for school
places.
There are counter arguments to these presumed benefits. They include the conflict
between individual benefit and collective gain, the sophistication of user groups, the
impact on participation of charging user fees, and the nature of the service provided at
different levels of cost. The mechanism for increased accountability to user groups can
be expressed in terms of the benefits parents and pupils hope to obtain from schooling.
These reflect the expected returns to individuals in income and social status from
schooling and educational qualifications. There is no necessity for this to result in