This article is part of the #FundEducation blog series, which focuses on the urgent need to bridge the financing gap for SDG 4: Quality Education for All. The series gathers insights from partners and experts in education finance, reflecting on the challenges of enhancing the volume, efficiency, and quality of resources dedicated to education worldwide, as well as the actions needed to ensure that education is adequately funded in the future.

Latin America and the Caribbean must urgently prioritize education financing, ensuring financial sustainability, efficiency, and equity, as part of a shared commitment to the future by governments, international organizations, the private sector, and civil society.

Education is a fundamental human right and an enabling condition for accessing other rights, such as better health, decent employment, and the ability to participate actively in political and social life. In Latin America and the Caribbean, investing in education is especially urgent. It’s the most powerful way to reduce inequality and build a more inclusive and sustainable future.

During the first decade of the 21st century, Latin American and Caribbean countries experienced a significant period of growth in public investment in education. Around 2015, spending on this sector reached its highest level, reflecting governments’ increasing commitment to ensuring the right to education. However, after this period, investment began to stagnate and even decline, a phenomenon that paradoxically coincided with the implementation of the SDG4-Education 2030 Agenda.

The COVID-19 health crisis further exacerbated this situation. During 2020 and 2021, fiscal plans aimed at mitigating the effects of the pandemic did not prioritize education, resulting in insufficient resource allocation to the sector. In the period 2001-2023, although the region’s average public investment in education has remained at 4.2% of GDP, it has fallen from 16.3% to 13.9% of total public expenditure, the lowest level in more than 20 years.

When analyzing the situation of each country, progress is uneven, but almost half of countries fail to meet the minimum investment thresholds established in the 2015 Incheon Declaration. Additionally, when compared to more developed economies, public spending per student in Latin America and the Caribbean remains significantly low.

In response to this situation, the region’s education authorities have expressed growing concern and intensified discussions on education financing. Since 2015, this issue has gained prominence, with various regional meetings of ministers of education repeatedly emphasizing the need to prioritize and safeguard investment in the sector.

The most recent of these meetings, held in January 2024 in Santiago, Chile, marked a milestone in the regional debate. The meeting focused on three key issues: education financing, post-pandemic recovery, and education transformation. For the first time, it also facilitated a joint discussion between education and finance authorities on how to ensure sustainable, efficient, and equitable funding for education.

During this meeting, the Santiago Declaration 2024 was adopted, renewing the call to ensure adequate budgets for education. Countries agreed on the urgent need for a regional strategy to ensure that education funding is inclusive and effective. A commission—made up of United Nations agencies, development banks, and civil society organizations—is now working on this plan. Their proposal is based on three key principles that guided the discussions at the ministerial meeting:

• Financial sustainability: Stable sources of funding are essential to support the design, planning, and implementation of medium- and long-term education policies.
• Efficiency in resource use: Budget allocations must translate into concrete and effective actions in the education sector.
• Equity: Resources must be distributed equitably to ensure that all students, regardless of their background or context, have access to quality educational opportunities.

The commission also identified five public policy proposals relevant to Latin America and the Caribbean, focused on advancing the three mentioned dimensions and on actions for educational reactivation, recovery, and transformation. These policy proposals will be part of the final report of the commission and will be visited in an upcoming new blog post.

Latin America and the Caribbean still face major education challenges. Many children struggle to access preschool and secondary education, and too many students aren’t learning the skills they need for the future. At the same time, new challenges are emerging, like the role of AI in education and how schools can contribute to inclusive social development, which is a priority for moving towards sustainable development. 

Current figures and challenges make it clear that education must be prioritized on the public agenda, and budgets must be protected and increased. Only by doing so can we ensure that every child, youth, and adult can reach their full potential and contribute actively to the progress of their communities and countries.

This responsibility doesn’t rest on governments alone. The path to a stronger education system requires a collective effort from policymakers, international organizations, the private sector, and civil society. In this regard, the commitment to investing in education is a commitment to the future, an urgent call to action to ensure that education remains the fundamental pillar upon which the well-being and development of our nations are built.

*About the institutions:

• The Economic Commission for Latin America and the Caribbean (ECLAC) is one of the five regional commissions of the United Nations. Its purpose is to contribute to the region’s economic and social development by driving initiatives and strengthening cooperation among countries.
• The UNESCO Regional Office in Santiago and Office for UN Coordination in Latin America and the Caribbean has been a key player in regional cooperation, supporting Member States in improving their education systems and promoting education as a driver of development. Over time, it has expanded its scope to include science, culture, communication, and information, aligning with UNESCO’s global objectives.

Disclaimer: This blog section features insights and ideas from the SDG4 High-Level Steering Committee members and other education partners on transforming education and leading SDG 4. The opinions expressed are those of the authors alone.