Module 2 – Part 3 Innovative finance for lifelong learning
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Module 2 – Part 3 Innovative finance for lifelong learning


Now that we have looked at how we can raise more public finance Let’s look at non-traditional routes and some more innovative avenues of funding Here are eight innovative cases at state and provincial level First, consider an extra taxation strategy whether using a Sin Tax like Thailand which taxes items that have negative health or social impacts on society a Special Education fund, like the Philippines, which draws from a 1% tax levy on property, land and machinery or an Education Cess, like India drawn on top of personal and corporate income tax, customs duties or service tax to give a short-term boost in funding. Special taxation can provide yet another income stream to boost available finance. Secondly, leverage the support of the private sector. This might be through offering tax breaks for philanthropy, such as in Singapore, which offers a tax break of two hundred and fifty percent of the amount given This means for every one dollar donated to a registered charity, two dollars fifty will be deducted from one’s taxable income. Or… through corporate social responsibility schemes, such as in the Philippines, where a partnership between the Filipino government and the McDonald’s Foundation has provided another stream of funding. Or… by systematically supporting charitable investments by individuals into education, such as in Vietnam, where the Association for learning promotion Encourages individuals and affluent families to channel funds directly to where it is needed You may also have heard of the social impact bond The social impact bond or SIB is a new pay-for-success financing tool that may offer yet another possible pathway of funding support So how does it work in practice? Let’s run a short example The government has a problem one town above all has a high level of illiteracy and this is affecting people’s access there to employment, health services and happier lives There are five key players in the process An investor invests money into a bond through an intermediary the money goes to the implementer to solve the illiteracy problem. The results are checked by an independent evaluator and the evaluator reports the results to the government If it is successful on all outcomes the government will pay the total back to the investor with additional interest. If only partial the government only pays for the part that’s successful If none of the outcomes are met the government doesn’t pay a cent Since its inception in the UK more than 90 SIBs have been developed in many areas in more than 19 countries all over the world, including in the Republic of Korea and India Pay-per-outcome models potentially offer yet another financing strategy Another interesting and divergent route provides lifelong learning funds directly to the learner For example, with Singapore’s Skills Future credit As part of the scheme, Singaporeans aged 25 and above receive a direct payment to upgrade their skills and can voluntarily choose from a range of government-approved courses including workplace literacy and numeracy. This gives the learner autonomy to choose courses that best fit their needs Next, let’s look at some innovative strategies being used at the level of the community Make use of crowdfunding platforms to raise additional funding or to support one-off special activities or programmes There are a number of platforms you might choose to look into… from Kickstarter and GoFundMe to Crowdrise Investigate and consider any market opportunities for further income generation. For example, through tourism or other means By embracing the social enterprise concept, communities in Thailand supported by Very Local Trip offer tourism and local artisan experiences which allow funds to flow directly from the tourist to the community Thirdly, utilize online marketplaces to sell community products which generate income for your centre and increase their visibility to new markets On top of raising more funding to support what we need we should be striving to make use of funds effectively and efficiently We recommend these three key steps for this how funds flow in your system should be transparent, clear and understandable to all involved Find simpler routes for distributing funds down the chain and… as much as possible, direct to the provider or learner Monitor and evaluate its use and encourage all stakeholders to feedback on its effectiveness Remember there is potentially a lot to be gained by achieving even the smallest of increases in efficiency and investment Let’s look at some key takeaways from this video Raising the public budget will be key integrate newer and innovative approaches maximize efficiency by making systems transparent and understandable Remember that collaboration and partnership will be crucial to success at all levels Through increasing public investment in the adult learning sector through the development of new and innovative pathways through leveraging the full possibilities of multilateral partnership and by driving towards greater efficiency in the disbursement of funds and resources we can make these gains even more considerable and the future of adult learning and education can look brighter.

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