Item 5: Brief Overview of SSI&II and Country Survey Responses on “Financing ECEC”* Miho Taguma Project leader on ECEC 7th Meeting of the OECD Network on Early Childhood Education and Care, Paris, 21-22 June 2010 * Included: BEL, CAN, FIN, IRL, ITL, JAP, MEX, NLD, NOR, SLV, SWE who submitted the responses by the deadline or a little later than the deadline. Agenda 1. Issues surrounding data collection (Item 6) 2. Sources of financing and reasons for investment (Item 7) 3. Funding strategies (Item 8) Agenda 1. Issues surrounding data collection (Item 6) 2. Sources of financing and reasons for investment (Item 7) 3. Funding strategies (Item 8) Data Needs for International Comparison: Items on the Wish List Quantitative data • • • Share of public and private sources for childcare (cf. available in EAG for pre-primary education) Net costs of childcare per child for parents; direct contributions of parents with children (some by DELSA) Costs of different ECEC services (unit costs or per child costs/ full-time vs part-time) Qualitative information • • • • • Updating definitions of early childcare, pre-primary education, early childhood education, pre-school, etc. Laws that regulates the financial and operational aspects of ECEC services Different systems for inspections and evaluations Different systems to distribute resources for better quality and equality of child outcomes – item 8 International comparison of children’s needs identified for different ages Constraints in data collection and international comparison • • • • • Low policy priority Fragmentation of ECEC services (central vs local; different ministries) vs integrated ECEC services Jurisdictional differences (different definitions, different fee structures, different spending, etc.) System is currently in flux. Lack of knowledge about private sources of private institutions; different accounting standards for private institutions and public institutions. Recent attempts to address the constraints • • • (CAN) Data needs: Set up a roundtable discussion among different levels of governments – advance knowledge and research. (IRL) Cost info: Require for-profit providers to calculate with ‘cost price’ – good indication although caution is required to compare the commercial sector and the nonprofit sector. (NOR) Financial info: Require private institutions to present the annual account in a standardised questionnaire - improved data on financial aspects of these institutions In Item 6 Presentations: • International comparative data – OECD (EDU/DELSA), UNESCO • Country experiences with data needs, international comparison, and constraints – NOR, FIN, ESP Questions for Reflection: • How much do countries spend on each child (ECEC, cash benefits, tax reduction, etc.)? Should parental leave benefits be inclusive or exclusive? What is the optimal level of spending on ECEC? • How much private sources are being spent on ECEC? • How much does high quality ECEC cost per child or per unit? • How much does ECEC cost to parents? Agenda 1. Issues surrounding data collection (Item 6) 2. Sources of financing and reasons for investment (Item 7) 3. Funding strategies (Item 8) Who provides sources of ECEC? Why do they invest? Private business community Private forprofit enterprise Social organisations Parents Governments Resources for ECEC International organisations 1. Supporting female labour participation 2. Reconciling work and family responsibilities Private Private for3. Managing demographic business profit challenges community 4. Acting against child poverty, educational enterprise disadvantage, and poverty chain Parents Governments 5. ECEC as a public good Resources for ECEC Social organisations International organizations Focus in Item 7: Making a Case for Public Spending on ECEC Economic outcomes Social outcomes Educational outcomes for Children Parents (esp. mothers) Society at large Purchase ECEC services 1. 2. 3. 4. Female labour market attachment Need for more family income with two earners Private Private forNeed for time to be free from childcare work business profit Socialisation and education of their children community enterprise Social organisations Parents Stay home and devote “time” and “materials” to ECEC at home 1. 2. Governments Attachment to the child Culture, values, and traditions to care and educate children at home Resources for ECEC International organizations Private business community Private for-profit enterprise 1. To keep their qualified, Parents by trained employees promoting their worklife balance Governments 2. To encourage their (national, state, customers with children municipal and to buy services (in a combinations) shopping centre, etc). • Resources for ECEC Social organisations To make profits Investment = taking a financial risk/ loans International organizations • Private business community For philanthropy, religious commitment, social corporate responsibility, Private for- parental and community engagement, etc. profit enterprise Social organisations Parents Governments Resources for ECEC • International organisations Part of foreign aid programmes (donations or loans) In Item 7 Presentations: • Intergenerational social mobility, social outcomes - OECD (ECO/EDU) • Cost benefit analysis; economic and social returns – Prof. Steven Barnett • Country experiences – ENG, MEX Questions for Reflection: • What does recent research show about economic, social and educational returns on investment in ECEC? • How can countries actually use the research findings to make a case to increase public spending on ECEC? • How can countries effectively find and use other sources than public funding to finance ECEC? Agenda 1. Issues surrounding data collection (Item 6) 2. Sources of financing and reasons for investment (Item 7) 3. Funding strategies (Item 8) Political decisions on public investment on young children, especially in time of financial constraints • Balance between parental leave benefits and ECEC services • Balance between cash benefits, tax credits, vouchers (demand-side) and direct ECEC services (supply-side) • Balance between universal measures and targeted measures o If universal (e.g. making ECEC free or part of compulsory) for what age group? for how many hours of provision? o If targeted, how to define targeting criteria (e.g. family income, residential areas/poverty areas, child’s outcomes/needs, etc)? • Balance between direct investment in expanding access (e.g. infrastructure, workforce supply, etc.) and direct investment in quality initiatives (e.g. curriculum development, upskilling workforce, quality assurance/ rating systems, etc.) • Maintaining national standards for quality and equity while giving more financial autonomy to local governments. • Maintaining national minimum for quality while deregulating standards to give incentives to various service providers to expand places. In Item 8 Presentations: • Market mechanism in school: implications for ECEC - OECD (EDU) • Research on financing mechanisms – Mr. Myers, Ms. Bock-Famulla • Country experiences – AUS, SLV, BEL(FL) Questions for Reflection: • What is the optimal division between parental leave and ECEC? • Should subsidies for ECEC be on the demand side or the supply side? • Should the government provide ECEC services through the public sector and/or subsidise private ECEC? For the latter, should it allow forprofit institutions? • How can governments ensure quality and sustainability of ECEC services in a market or quasi-market mechanism?