Despite sustained economic growth sincethe mid-1980s, Lao PDR's education system faceschallenges in meeting its goals of providing all studentswith access to education and improving learning outcomes. Tofurther the country's economic development, theGovernment of Lao PDR has placed a priority on improving itseducation sector. However, as of 2012, Lao PDR was not ontrack to achieve its Millennium Development Goal (MDG) ofuniversal primary education. There are concerns abouteducation quality as well, particularly whether students arecompleting primary school with sufficient mathematics andliteracy skills. To help address these challenges, thegovernment instituted in 2011 a School Block Grant (SBG)program that gives provinces, districts and schools greateradministrative control than they have ever had. This reportpresents a framework that explains how SBGs can improveeducation quality. The framework draws lessons frominternational experience that may be particularly useful forthe government, and identifies challenges and potentialrisks to successful implementation of the program.
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