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Source: OECD 1994; West 1996. Education (World Bank 1995), along with a call for greater participation in the financing and governance of education, and in decisionmaking. The issues surrounding the introduction of choice are addressed here without taking sides in what has become an inflammatory subject. To many, demand-side financing is a pragmatic choice for introducing needed reforms according to local needs and resources. For example, in the United States the problem is quality, in Yemen it is lack of capacity, and in Chile it is equity.

The partnership established with beneficiaries allowed for the detection of this problem long before animosities became irreversible. Furthermore, from these consultations with beneficiaries the government of Bangladesh realized the need for a flexible approach involving periodic evaluation to determine the right amount of subsidy. Finally, this pilot grew out of a local initiative, which had much to do with its success and its expansion into a national program. Community Financing: Chad Community-based primary schools are extensive throughout Chad.

Review of World BankFinanced Projects World Bank clients have used innovative demand-side financing mechanisms in recent education projects. Here, we review World Page 15 Table 4. Demand-Side Financing Options by Level of Education: A Partial ListingProblemPrimarySecondaryHigherQualityVouchersVouchersTargeted bursariesTargeted bursariesManagement capacityCommunity financingFunding and government grantsForeign aidCommunity grantsForeign aidForeign aidMixture of private funding and government grantsMixture of private funding and government grantsEfficiencyParental financingParental financingParental financingVouchersVouchersEquityAssistance to private schoolsVouchersStudent loans StipendsUser chargesStipendsScholarshipsScholarshipsScholarshipsTaxesTargeted bursariesUser chargesDeficit financingEarmarked taxesTaxesEarmarked taxesSource: Authors' compilation.