260 | The Role of Intergovernmental Fiscal Transfers in Improving Education Outcomes
BOX 9.2
Improving education outcomes in Ceará, Brazil Each year, the state of Ceará in Brazil distributes a fixed sum of money to its municipalities, placing the municipalities in competition with one another for those resources. To receive more resources, municipalities need not have the highest test scores or the lowest dropout rates; they merely need to show improvement. Those that show improvement each year receive more funds, and those that rest on their laurels will likely lose funding. The distribution of funds is based on a formula that includes two results indicators—test scores and dropout rates. The formula takes into account both the levels of the indicators (a municipality with high test scores and low dropout rates will receive more funding) and the changes in the indicators (a municipality that improves test scores and lowers dropout rates will receive more funding). Importantly, the state does not rely solely on the results-based mechanism but also provides technical assistance to municipalities, particularly under its
Program to Achieving Literacy at the Right Age. The program provides schools with learning materials that define a clear timetable for classes and prioritizes basic skills, especially literacy in the early grades. Teachers undergo regular training on how to use these materials, including classroom observation with feedback. Municipalities with low-performing schools get additional support, while those with high-performing schools must ensure that these schools assist their low-performing counterparts to qualify for additional rewards from the state. The state also works with municipalities to improve the management of their education systems. It provides training and materials to municipal education secretariats, with the goal of increasing classroom teaching time, reducing the number of multigrade classes, adopting meritocratic selection criteria for school principals, and offering financial and nonfinancial incentives to teachers whose students meet literacy targets.
Source: Loureiro, Cruz, and Lautharte 2020.
Develop reliable quality indicators and measurement instruments and set clear targets To increase the system’s focus on learning outcomes, better data will be needed to quantify and track learning. Without better data, problems will continue to go unnoticed and unaddressed. As of 2018–19 school year, for example, national assessments were carried out in grades 4, 7, and 12. (The external assessment for students in grade 10 was pending.) The 2018 grade 7 assessment results for Bulgarian language showed that there are a large number of failing schools. The scores of these schools were so low that it is hard to determine whether any learning took place during those seven years. Introducing early grade reading and numeracy assessments and setting clear and easy to understand targets for what all 2nd graders should be able to do would be an important step. Such early grade assessments were critically important in motivating mayors and communities to take action in Ceará, but they are also used by countries that are among the top education performers (such as Singapore) to identify and quantify challenges and take rapid action. These assessments help to quantify problem areas, allowing teachers and teacher training to identify topics or students that need more focus. More broadly, Bulgaria needs a credible and trusted assessment system and to use the data generated from that system to inform decision-making. Assessments
