Education finance is a term used to describe the financial and in-kind resources available for education. The concept of education finance also addresses questions about how resources are allocated, used, and accounted for to achieve sustainable, quality education for all children and youth (Education Links, no date).

(See also ‘Funding’)
 

Inclusion is both a principle and a process: ‘Inclusion and equity in and through education is the cornerstone of a transformative education agenda […] No education target should be considered met unless met by all’ (World Education Forum, 2015, p. 2).

It can be seen as: ‘A process consisting of actions and practices that embrace diversity and build a sense of belonging, rooted in the belief that every person has value and potential and should be respected’ (UNESCO, 2020a, p. 419).

The term was often associated with disability, but now extends to wider groups as ‘a response to increasingly complex and diverse societies. It treats diversity as an asset which helps prepare individuals for life and active citizenship in increasingly complex, demanding, multi-cultural and integrated societies’ (Soriano, Watkins and Ebersold, 2017, p. 7).

‘An education that promotes mutual respect and value for all persons and builds educational environments in which the approach to learning, the institutional culture and the curriculum reflect the value of diversity’ (UNESCO, 2020a, p. 420).

The Agency views inclusive education as ‘a systemic approach to providing high quality education in mainstream schools that effectively meets the academic and social learning needs of all the learners from the school’s local community’ (European Agency, 2015, p. 2).

Inclusive education supposes a real change at both policy and practice levels regarding education. Learners are placed at the centre of a system that needs to be able to recognise, accept and respond to learner diversity. Inclusive education aims to respond to the principles of efficiency, equality and equity, where diversity is perceived as an asset. Learners also need to be prepared to engage in society, to access meaningful citizenship and to acknowledge the values of human rights, freedom, tolerance and non-discrimination (Soriano, Watkins and Ebersold, 2017, p. 6).

In this funding model, funds are allocated on the basis of output: for example, in terms of the number of referred learners (the lower the number, the more funds) or achievement scores (added value: the higher the achievement scores, the more funds). The output can be defined on the basis of different aggregation levels. An output-based system generates behaviour towards achieving the desired results. An output model may reinforce the referral of learners with expected low gains in achievement scores to other parts of the system (Meijer, 1999, pp. 152–153).

This ‘usually refers to decision-making that takes into account the actions and reactions of other … agents. Its essential feature is the recognition of the direct interdependence between one’s behaviour and that of others’ (Encyclopedia.com).

Within the education field, financing mechanisms may incentivise unwanted strategic behaviour. For example, ‘financial constraints may lead to strategic behaviour where schools directly link the support learners may need with an official decision’ (European Agency, 2022e, p. 12). ‘Similarly, parents may also demonstrate strategic behaviour that is not in line with the policy’ (Meijer, 1999, p. 20). ‘These forms of strategic behaviour may result in less inclusion, more labelling and rising costs’ (ibid., p. 12).

Throughput funding is ‘based on the functions or tasks that have to be undertaken or developed. It is not based on needs, but rather on the services provided by a school, municipality or region’. Finances are allocated on the condition that particular services will be developed or maintained. ‘Schools, municipalities or regions are equally treated: funds are based on total enrolment or on other population indicators’. Of course, certain output conditions can be included in this model, but funding itself is not based on outputs (or inputs) (Meijer, 1999, p. 152).