Education Financial Simulation Model
The EFSM model is a tool designed to facilitate policy tradeoffs in education. Its results can help narrow the menu of policy choice to those that are likely to achieve the desired education outcomes in a fiscally sustainable manner. The model covers all education sub-sectors, but may emphasize one or more sub-sectors, depending on the country and policy context. It is a simple Excel-based model focused on the key parameters that are relevant to education policy. The model is usually developed as part of the process of preparing a Country Status Report on Education (CSR), which is a diagnostic study of the education system. The CSR as well as the model are always developed in cooperation with a national team representing the different Ministries in charge of education and other relevant agencies. Once the model is developed in a given country, it may then be used for other purposes, such as project appraisal, costing of sector plans, etc.
Pre-primary: GER. Primary: GIR, PCR and the share of repeaters. General Secondary: transition rate primary-secondary, retention rate, share of repeaters, class size, teacher workload and student workload. TVET: number of students per 100,000 inhabitants. Tertiary: number of students per 100,000 inhabitants. Resource needs are generally calculated from: 1) the teacher salary bill, based on the teacher unit cost (teacher salary as a share of GDP per capita), and 2) spending other than teacher salaries (as share of total spending).
The EFSM model is an integral part of a Country Status Report (CSR) on education, which is a diagnostic study of the education sector.