The current global education financing model struggles to meet today’s challenges. Outdated and fragmented systems cannot respond to economic shocks, demographic changes, rising debt burdens, or climate instability.
Even when countries meet international spending benchmarks, investments remain far below what is needed to tackle the learning crisis, particularly in the poorest and most fragile states.
By putting public finance at the center and leveraging concessional, philanthropic, and private capital, GPE is helping countries move from short-term, fragmented aid to long-term, sustainable investments that reinforce education systems and deliver lasting impact.
From fragmentation to systemic impact
Sustainable financing is not just about mobilizing more resources. It is about structuring smarter, better-aligned, and system-anchored investments that are grounded in fiscal realities, responsive to political priorities and designed to reinforce national leadership.
This approach strengthens national systems and bolsters long-term reform strategies.
Innovative financing supports this shift by using funds in ways that unlock, de-risk, or sustain systemic investment, delivering long-term development impact and fiscal dividends beyond the education sector.
Transforming how education is financed
Sustainable education investments must be country-led, anchored in public finance, and complemented by catalytic ODA grants, concessional finance, and private investment. This model rests on three core principles:
- Public finance as the anchor: Domestic public finance is the foundation of education funding, with external resources used strategically to unlock, blend, and stretch what countries can mobilize themselves.
- System alignment: Every dollar aligns with national priorities and strengthens education systems.
- National leadership: Governments lead investment strategies that combine diverse financing sources, driving reforms and enabling sustainable transformation.
GPE’s unique role in sustainable financing
GPE combines the strength of a multi-stakeholder partnership with the resources of a global education fund. This dual identity allows GPE to align financing behind national priorities and drive system-level reforms.
GPE anchors education financing in macro-fiscal realities and national priorities, supporting countries across the full investment cycle—from planning and policy dialogue to implementation, monitoring, and course correction.
Through Partnership Compacts, GPE works with countries to define reform priorities and bring together diverse financing sources in a coordinated, strategic manner.
GPE deploys results-based grants as catalytic capital to encourage countries to strengthen domestic resource mobilization, improve spending efficiency and advance equity. These grants co-finance long-term reforms and system investments that domestic budgets alone rarely cover, helping to de-risk wider education investments and translate donor contributions into sustainable impact.
GPE also multiplies the effect of each grant by leveraging concessional loans and private capital, ensuring additional resources flow to education priorities without compromising equity or national leadership. Partnerships with development banks, philanthropy and outcome funders allow GPE to structure blended financing and manage investment risks responsibly.