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were free to use the additional resources on other budget items (Lautharte, Oliveira, and Loureiro 2020). The reform also benefitted small municipalities with good education outcomes, which had previously received lower transfers based on their small populations and low levels of economic activity (Albuquerque 2009; Sales 2011). Research also indicates that the policy promoted a more egalitarian share of resources (Franca 2014; Nogueira 2012), and the revenues received as a result of the RBF mechanism are higher than the investment that municipalities need to improve health and education indicators (Garcia, Simonassi, and Costa 2015).
Impact of RBF on education outcomes in Ceará Ceará’s municipalities had the greatest improvement in the quality of primary and lower secondary education since 2005 and, collectively, have the best education quality index in the country when socioeconomic conditions are taken into consideration. Ceará’s municipalities had the largest increase in IDEB scores between 2005 and 2017 among all 5,570 Brazilian municipalities, with one of its municipalities, Sobral, reaching first place in 2017, the latest IDEB ranking, and with 10 of its municipalities among the top 20. Map 8.2 shows the change in the IDEB scores of Brazilian municipalities between 2005 and 2017 and demonstrates that Ceará, in the Northeast region, had the largest improvement. When socioeconomic conditions are taken into account, as measured by the Human Development Index, Ceará had the best municipal primary and lower education
MAP 8.2
Change in IDEB scores, 2005–17
Sources: World Bank with data from 2005 and 2017 IDEB and INEP in primary and lower secondary education. Note: Legends indicate the change in IDEB scores. IDEB = National Index of Education Quality; INEP = National Institute of Educational Studies and Research
