Explaining Leakage of Public Funds
Using panel data from a unique survey of public primary schools in Uganda, The authors assess the degree of leakage of public funds in education. The survey data reveal that on average during 1991-95 schools received only 13 percent of the central...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2001/11/1643364/explaining-leakage-public-funds http://hdl.handle.net/10986/19425 |
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okr-10986-19425 |
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oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
AUTHORITY BROADCASTING BUDGET SYSTEM BUDGETARY ALLOCATIONS BUREAUCRACY CENTRAL GOVERNMENT CENTRAL GOVERNMENT POLICY CENTRAL GOVERNMENT SPENDING CITIZENS CLASSROOM CONSTRUCTION CLASSROOMS COMMUNITY PARTICIPATION COMMUNITY SCHOOLS CORRUPTION DEVELOPING COUNTRIES DISTRICTS EDUCATION OFFICERS EDUCATION SYSTEMS EDUCATIONAL SERVICES ENROLLMENT EXPENDITURE FEDERALISM FINANCIAL CONTRIBUTION FINANCIAL INFORMATION FINANCIAL SUPPORT FISCAL FORMAL EDUCATION GOVERNMENT EXPENDITURES GOVERNMENT FUNDING GOVERNMENT LEVEL GOVERNMENT OFFICIALS GOVERNMENT PRIMARY SCHOOLS GOVERNMENT SPENDING GOVERNMENT STATISTICS GOVERNMENT'S BUDGET HUMAN DEVELOPMENT INSTRUCTIONAL MATERIALS LEADERSHIP LET LEVELS OF GOVERNMENT LOCAL ACCOUNTABILITY LOCAL GOVERNMENT LOCAL GOVERNMENTS LOCAL LEVEL MEDIA MOBILITY MOTIVATIONS NATIONS PAPERS PARENTS PRIMARY EDUCATION PRIMARY SCHOOL PRIMARY SCHOOL TEACHERS PRIMARY SCHOOLS PUBLIC FUNDING PUBLIC FUNDS PUBLIC OFFICIALS PUBLIC PRIMARY PUBLIC RESOURCES PUBLIC SCHOOLS PUBLIC SECTOR PUBLIC SERVICE PUBLIC SPENDING QUALIFIED TEACHERS RADIO REHABILITATION RESOURCE ALLOCATIONS RURAL AREAS SCHOOL CONSTRUCTION SCHOOL FACILITIES SCHOOL INSPECTION SCHOOL SUPPLIES SCHOOLS SOCIAL COHESION SOCIAL DEVELOPMENT SOCIAL NETWORKS SOCIAL SECTORS STUDENT COSTS TEACHER TEACHER ASSOCIATIONS TEACHER RECRUITMENT TEACHER TRAINING TEACHERS TEACHING TEACHING STAFF TEXT BOOKS TEXTBOOKS TUITION FEES URBAN AREAS WALKING SURVEY DATA PRIMARY SCHOOLS PUBLIC SCHOOLS EDUCATIONAL FINANCING ALLOCATION OF RESOURCES PUBLIC RESOURCES GOVERNMENT BUDGETING EDUCATIONAL EFFICIENCY EQUITY IN EDUCATION INFORMATION DISSEMINATION FLOW OF FUNDS PUBLIC EXPENDITURES |
| spellingShingle |
AUTHORITY BROADCASTING BUDGET SYSTEM BUDGETARY ALLOCATIONS BUREAUCRACY CENTRAL GOVERNMENT CENTRAL GOVERNMENT POLICY CENTRAL GOVERNMENT SPENDING CITIZENS CLASSROOM CONSTRUCTION CLASSROOMS COMMUNITY PARTICIPATION COMMUNITY SCHOOLS CORRUPTION DEVELOPING COUNTRIES DISTRICTS EDUCATION OFFICERS EDUCATION SYSTEMS EDUCATIONAL SERVICES ENROLLMENT EXPENDITURE FEDERALISM FINANCIAL CONTRIBUTION FINANCIAL INFORMATION FINANCIAL SUPPORT FISCAL FORMAL EDUCATION GOVERNMENT EXPENDITURES GOVERNMENT FUNDING GOVERNMENT LEVEL GOVERNMENT OFFICIALS GOVERNMENT PRIMARY SCHOOLS GOVERNMENT SPENDING GOVERNMENT STATISTICS GOVERNMENT'S BUDGET HUMAN DEVELOPMENT INSTRUCTIONAL MATERIALS LEADERSHIP LET LEVELS OF GOVERNMENT LOCAL ACCOUNTABILITY LOCAL GOVERNMENT LOCAL GOVERNMENTS LOCAL LEVEL MEDIA MOBILITY MOTIVATIONS NATIONS PAPERS PARENTS PRIMARY EDUCATION PRIMARY SCHOOL PRIMARY SCHOOL TEACHERS PRIMARY SCHOOLS PUBLIC FUNDING PUBLIC FUNDS PUBLIC OFFICIALS PUBLIC PRIMARY PUBLIC RESOURCES PUBLIC SCHOOLS PUBLIC SECTOR PUBLIC SERVICE PUBLIC SPENDING QUALIFIED TEACHERS RADIO REHABILITATION RESOURCE ALLOCATIONS RURAL AREAS SCHOOL CONSTRUCTION SCHOOL FACILITIES SCHOOL INSPECTION SCHOOL SUPPLIES SCHOOLS SOCIAL COHESION SOCIAL DEVELOPMENT SOCIAL NETWORKS SOCIAL SECTORS STUDENT COSTS TEACHER TEACHER ASSOCIATIONS TEACHER RECRUITMENT TEACHER TRAINING TEACHERS TEACHING TEACHING STAFF TEXT BOOKS TEXTBOOKS TUITION FEES URBAN AREAS WALKING SURVEY DATA PRIMARY SCHOOLS PUBLIC SCHOOLS EDUCATIONAL FINANCING ALLOCATION OF RESOURCES PUBLIC RESOURCES GOVERNMENT BUDGETING EDUCATIONAL EFFICIENCY EQUITY IN EDUCATION INFORMATION DISSEMINATION FLOW OF FUNDS PUBLIC EXPENDITURES Reinikka, Ritva Svensson, Jakob Explaining Leakage of Public Funds |
| relation |
Policy Research Working Paper;No. 2709 |
| description |
Using panel data from a unique survey of
public primary schools in Uganda, The authors assess the
degree of leakage of public funds in education. The survey
data reveal that on average during 1991-95 schools received
only 13 percent of the central government's allocation
for the schools' nonwage expenditures. Most of the
allocated funds were used by public officials for purposes
unrelated to education or captured for private gain
(leakage). The survey data also reveal large variations in
leakage across schools. A small set of school-specific
variables can explain a significant part of this variation.
Specifically, the authors find that larger schools receive a
larger share of the intended funds per student. Schools with
children of wealthier parents also experience a lower degree
of leakage, while schools with a higher share of unqualified
teachers receive less. After addressing potential selection
and measurement issues, the authors show that these school
characteristics have a quantitatively large impact on the
degree of leakage. The findings are consistent with the view
that resource flows-and leakage-are endogenous to
schools' sociopolitical endowment. Rather than being
passive recipients of flows from government, schools use
their bargaining power relative to other parts of government
to secure greater shares of funding. Public resources are
therefore not allocated according to the rules underlying
the government's budget decisions, with obvious equity
and efficiency implications. The survey findings had a
direct impact on policy in Uganda. As evidence on the degree
of leakage became public knowledge, the central government
enacted a number of changes: it began publishing monthly
transfers of public funds to the districts in newspapers,
broadcasting them on radio, and requiring schools to post
information on inflow of funds. An initial assessment of
these reforms shows that the flow of funds improved
dramatically, from 13 percent on average reaching schools in
1991-95 to around 90 percent in 1999. These improvements
emphasize the role of information in mobilizing
"voice" for better public expenditure outcomes. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Reinikka, Ritva Svensson, Jakob |
| author_facet |
Reinikka, Ritva Svensson, Jakob |
| author_sort |
Reinikka, Ritva |
| title |
Explaining Leakage of Public Funds |
| title_short |
Explaining Leakage of Public Funds |
| title_full |
Explaining Leakage of Public Funds |
| title_fullStr |
Explaining Leakage of Public Funds |
| title_full_unstemmed |
Explaining Leakage of Public Funds |
| title_sort |
explaining leakage of public funds |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2001/11/1643364/explaining-leakage-public-funds http://hdl.handle.net/10986/19425 |
| _version_ |
1764439833084690432 |
| spelling |
okr-10986-194252021-04-23T14:03:43Z Explaining Leakage of Public Funds Reinikka, Ritva Svensson, Jakob AUTHORITY BROADCASTING BUDGET SYSTEM BUDGETARY ALLOCATIONS BUREAUCRACY CENTRAL GOVERNMENT CENTRAL GOVERNMENT POLICY CENTRAL GOVERNMENT SPENDING CITIZENS CLASSROOM CONSTRUCTION CLASSROOMS COMMUNITY PARTICIPATION COMMUNITY SCHOOLS CORRUPTION DEVELOPING COUNTRIES DISTRICTS EDUCATION OFFICERS EDUCATION SYSTEMS EDUCATIONAL SERVICES ENROLLMENT EXPENDITURE FEDERALISM FINANCIAL CONTRIBUTION FINANCIAL INFORMATION FINANCIAL SUPPORT FISCAL FORMAL EDUCATION GOVERNMENT EXPENDITURES GOVERNMENT FUNDING GOVERNMENT LEVEL GOVERNMENT OFFICIALS GOVERNMENT PRIMARY SCHOOLS GOVERNMENT SPENDING GOVERNMENT STATISTICS GOVERNMENT'S BUDGET HUMAN DEVELOPMENT INSTRUCTIONAL MATERIALS LEADERSHIP LET LEVELS OF GOVERNMENT LOCAL ACCOUNTABILITY LOCAL GOVERNMENT LOCAL GOVERNMENTS LOCAL LEVEL MEDIA MOBILITY MOTIVATIONS NATIONS PAPERS PARENTS PRIMARY EDUCATION PRIMARY SCHOOL PRIMARY SCHOOL TEACHERS PRIMARY SCHOOLS PUBLIC FUNDING PUBLIC FUNDS PUBLIC OFFICIALS PUBLIC PRIMARY PUBLIC RESOURCES PUBLIC SCHOOLS PUBLIC SECTOR PUBLIC SERVICE PUBLIC SPENDING QUALIFIED TEACHERS RADIO REHABILITATION RESOURCE ALLOCATIONS RURAL AREAS SCHOOL CONSTRUCTION SCHOOL FACILITIES SCHOOL INSPECTION SCHOOL SUPPLIES SCHOOLS SOCIAL COHESION SOCIAL DEVELOPMENT SOCIAL NETWORKS SOCIAL SECTORS STUDENT COSTS TEACHER TEACHER ASSOCIATIONS TEACHER RECRUITMENT TEACHER TRAINING TEACHERS TEACHING TEACHING STAFF TEXT BOOKS TEXTBOOKS TUITION FEES URBAN AREAS WALKING SURVEY DATA PRIMARY SCHOOLS PUBLIC SCHOOLS EDUCATIONAL FINANCING ALLOCATION OF RESOURCES PUBLIC RESOURCES GOVERNMENT BUDGETING EDUCATIONAL EFFICIENCY EQUITY IN EDUCATION INFORMATION DISSEMINATION FLOW OF FUNDS PUBLIC EXPENDITURES Using panel data from a unique survey of public primary schools in Uganda, The authors assess the degree of leakage of public funds in education. The survey data reveal that on average during 1991-95 schools received only 13 percent of the central government's allocation for the schools' nonwage expenditures. Most of the allocated funds were used by public officials for purposes unrelated to education or captured for private gain (leakage). The survey data also reveal large variations in leakage across schools. A small set of school-specific variables can explain a significant part of this variation. Specifically, the authors find that larger schools receive a larger share of the intended funds per student. Schools with children of wealthier parents also experience a lower degree of leakage, while schools with a higher share of unqualified teachers receive less. After addressing potential selection and measurement issues, the authors show that these school characteristics have a quantitatively large impact on the degree of leakage. The findings are consistent with the view that resource flows-and leakage-are endogenous to schools' sociopolitical endowment. Rather than being passive recipients of flows from government, schools use their bargaining power relative to other parts of government to secure greater shares of funding. Public resources are therefore not allocated according to the rules underlying the government's budget decisions, with obvious equity and efficiency implications. The survey findings had a direct impact on policy in Uganda. As evidence on the degree of leakage became public knowledge, the central government enacted a number of changes: it began publishing monthly transfers of public funds to the districts in newspapers, broadcasting them on radio, and requiring schools to post information on inflow of funds. An initial assessment of these reforms shows that the flow of funds improved dramatically, from 13 percent on average reaching schools in 1991-95 to around 90 percent in 1999. These improvements emphasize the role of information in mobilizing "voice" for better public expenditure outcomes. 2014-08-19T17:00:22Z 2014-08-19T17:00:22Z 2001-11 http://documents.worldbank.org/curated/en/2001/11/1643364/explaining-leakage-public-funds http://hdl.handle.net/10986/19425 English en_US Policy Research Working Paper;No. 2709 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |