Overview of International Budget Literacy Practices: Key Findings and Lessons Learned

Harika Masud

September 14, 2015

Agenda

Definition, methodology and scope

School-based BL initiatives

• Classroom-based initiativesBL in classroom and out-of-classroom initiatives: why?BL in school curricula: how?BL learning outcomesBL subjects, themes and topics BL pedagogical approaches and activitiesBL assessment methods

• Out-of-Classroom initiatives

Lessons learned

Useful resources/links

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Definition, Methodology and Scope

• Definition: “The ability to read, decipher, and understand public budgets to enable and enhance meaningful citizen participation in the budget process”.

• Scope: Documentation of 35 case studies from 33 countries (primarily OECD countries and BRICs) School-Based BL initiatives (27) and Beyond School BL initiatives (8)

• Methodology: Review: Desk research on national education policies/strategies and curriculum

standards for primary and secondary school subjects in 33 countries Outreach and Compilation: Outreach to more than 200 individuals and 150 organizations

and compilation of inputs via emails and/or phone discussions Documentation: Use of standard template to draft country case studies of illustrative

budget literacy practices Analysis: Based on learning outcomes, contents, pedagogical approaches and materials,

and assessment methods

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BL in school-based initiatives: Why? • Engaging with the federal budget and the federal debt enables students to

understand the contextual factors that play a role in economic decision-making (Etizoni,1967)

• They gain insights into how the federal government’s responsibilities and approach change over time through an examination of the federal budget, federal debt, and budget deficit (Mosher, 1980).

• Students will be unprepared to express views and exert meaningful influence on public policy directions without knowledge of budget issues (Forsyth, 2006)

• Since an economically educated citizenry is more likely to appreciate longer run implications of economic policy, this may reduce scope for governments to secure short-term support at the expense of long-term disadvantage for citizens (Davies, 2002)

• An understanding of economic concepts can promote active citizenship and provide an analytical framework which citizens can adopt in a democratic society (Miller and VanFossen, 2008)

• Measures of general economic knowledge, or knowledge of a particular economic issue are among the most important factors affecting public opinion on a wide range of economic issues (Walstad, 1997)

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BL in school-based initiatives: Why? (continued)

BL education in schools is intended to help attain the following objectives:

• Strengthening civic and legal consciousness (Canada, Czech Republic)

• Fostering awareness of tax obligations (Japan, Uruguay)

• Increasing comprehension of economic and social roles (United States, Singapore)

• Improving knowledge of policy formulation (Austria, Hong Kong)

• Enhancing participation in fiscal policy processes (Brazil, Costa Rica)

• Developing economic competence (Australia, India)

• Building real-life skills (South Africa, Namibia)

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BL in school-based initiatives: How?

Strategies to integrate BL education in schools include:

• Cross-Curricular vs. Stand-Alone Approach (e.g. United States and Brazil)

• National vs. Subnational Approach (e.g. Hong Kong and Canada)

• Tiered vs. Direct Approach (e.g. Australia and Japan)

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BL Learning Outcomes In School Curricula: Knowledge

Role of Government: e.g. learn how the government redistributes income (Namibia)

System of Government Revenues and Expenditures: e.g. define progressive, proportional, and regressive taxation, and determine whether different types of taxes (including income and sales) are progressive, proportional, or regressive (United Kingdom)

Fiscal Policy: e.g. discuss state budget drafting, taxation policy and redistribution of income (Estonia)

Policymaking: e.g. formulate the conflicting objectives and various positions regarding economic policy (Austria)

Economic Competence: e.g. understand the government’s constraints as well as short term and long term economic and social impacts of public finance (Hong Kong)

Real-Life Skills: e.g. describe the method of calculating the subsistence minimum of his/her household and applying for social benefit for which he/she is eligible (South Africa)

Civic Awareness: e.g. acquire a sense of responsibility and consciousness of the social value of taxes and their important role for social development (Costa Rica)

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BL Learning Outcomes In School Curricula: Competencies

Literacy: Examine and interpret budget data and communicate conclusions to a range of audiences through a range of multimodal approaches.

Numeracy: Apply numeracy knowledge and skills to display, interpret and analyze fiscal data, draw conclusions, make predictions and forecast outcomes.

ICT: Develop ICT capability when they access and use digital technologies as an investigative and creative tool. Locate, evaluate, research, plan, share and display budget data and/or information.

Critical Thinking: Develop critical and creative thinking to identify, explore and determine questions to clarify budget issues and/or events and apply reasoning, interpretation and analytical skills to data and/or information.

Intercultural Understanding: Develop an understanding and appreciation of the different ways other countries respond to budget issues and events related to fiscal policy.

Oral and Written Expression: Analyze fiscal sources and data, interpreting this information to make arguments, and communicating ideas and findings with clarity.

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BL Learning Outcomes In School Curricula: Values and Attitudes

• Gain the confidence and conviction to participate in decision making and play an active role as effective citizens in public life (United Kingdom)

• Think proactively about economic phenomena. (Luxembourg)

• Participate as informed persons in the discussion of economic issues and decision-making (Hong Kong)

• Strengthen understanding and fair judgment on issues surrounding politics, economy, and international relations (Japan)

• Understand the perspectives of a range of different stakeholders in relation to economic activity (India)

• Apply theoretical knowledge successfully to the current economic situation, and not fall for superficial judgment but have the ability to analyze the situation correctly (Czech Republic)

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BL: Subjects

Subject Country Examples

Economics India, Austria, France, United States

Social Studies/Social Sciences

Estonia, Japan, New Zealand and Singapore

Mathematical Literacy/Mathematics

Canada, South Africa, United States

Civics/Government Canada, United Kingdom, Poland, United States

Business Studies Ireland and Namibia

History United States

Politics and Governance Philippines

Life Skills/Contemporary Issues

Czech Republic, Hong Kong and Namibia

Fiscal Education Course Bolivia, Brazil, Chile, Costa Rica, El Salvador, Guatemala, Honduras, Paraguay, Peru and Uruguay

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BL: Themes and Topics

Theme Examples of Budget Literacy Topics

Education about Tax

New Zealand. Module [Tax Education and Citizenship] - Taxes and their impact, how decisions are made about public finances and differing

opinions on tax spending- How decisions on taxation affect young people, varying understanding of fairness in

relation to taxation, and how young people can influence policy decision-making about taxation

Introduction to Basic Economic Concepts

India. Module [Government Budget and the Economy]- Objectives of government budget- Classification of receipts – revenue and capital; classification of expenditure – revenue

and capital, developmental and non-developmental etc- Revenue deficit, fiscal deficit and primary deficit: meaning and implications

Economic Citizenship

Singapore. Module [Managing our Financial Resources] “Careful Use Of Our Country’s Financial Resources Helps Singapore To Progress”.- Developing Singapore through the national budget- Importance of the national budget to me- The role of citizens in contributing to the management of financial resources in the

country

Economic and Social Policy

Austria. Module [Macro-economic Results and Challenges – Economic and Social Policy] - Fiscal/tax policy- Social policy: who finances social safety nets?- Specificities of the Austrian economic and social policy- How effective are the state’s instruments?

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BL: Pedagogical Approaches and Activities

Approach/Activity Country Examples

Simulations and Role Play Germany, South Australia

Fact finding and Analysis Canada, New Zealand

Using Real-life Situations and Scenario Analysis

India, Hong Kong

Debate and Discussion Victoria-Australia, United Kingdom

Interaction with Relevant Authorities and Field Trips

Philippines, Costa Rica

Write-ups, Essays and Reports South Africa, United States

Contests and Quizzes Japan, Singapore

Art and Cartoon Analysis United Kingdom, United States

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BL Assessment Methods

Formal Assessments (i.e. tests, exams and quizzes)• Multiple choice questions (New Zealand)• Data Interpretation questions (South Africa)• Questions on public budget concepts (Ireland)• Open-ended questions (Austria)

Other Assessments• Teacher assessment: e.g. learning journals, oral presentations, class

participation, poster designs, field studies• Peer assessment: e.g. role play, project learning, group work, debates • Self assessment: e.g. self reflection on learning based on feedback

from teachers and/or peers

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BL: Out-Of-Classroom Initiatives Country Examples of Initiatives

Austria The Entrepreneur’s Skills Certificate online training program

Brazil - CGU Drawing and Composition Contest - Citizen Child Day

Canada - School participatory budgeting in Vancouver- CIVIX Student Budget Consultations

Chile The Band’s Debut TV show

Costa Rica Tribute to My Country

France Participatory budgeting in Poite-Charentes, Nord Pas de Calais and Ile-de-France

Hong Kong Seminars e.g. Hong Kong’s public finance and long-term fiscal planning

Japan - Study tours and education classes- National essay competitions on taxes- Poster competition on taxes at the prefecture level- Award program for promoting tax education for students

New Zealand - High School Policy Challenge- Policy Workshops

Peru - Payment Receipt Contest- Youth Auditors Program

Singapore Annual MOE-MOF Budget Debate Seminar

United Kingdom Chance to be Chancellor Program

Uruguay Videogames Contest

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Lessons LearnedIncorporating BL in School Curricula• Utilize existing subject curricula as entry points to teach budget literacy. • Adopt a gradual, tiered approach to educate students about public budgets that begins at the

primary school level. • Continue to rely on a tiered approach for budget literacy instruction during secondary level

schooling. • Emphasize both civic competence and technical knowledge to capture the true essence of

budget literacy. • Use budget literacy contents to convey a range of interesting facts, initiate stimulating

discussions and pose real-life challenges to students.

Developing Diverse Methods and Materials to Teach Budget Literacy• Use instruction methods which make learning about public budgets relevant and compelling for

students. • Arrange for the students to receive feedback on their contributions to budget processes, to the

extent possible. • Develop pedagogical materials which can accommodate the varying knowledge of educators

regarding budget literacy.

Building Capacity to Promote Budget Literacy Education• Collaborate with relevant stakeholders while designing and implementing measures to

strengthen budget literacy. • Explore various means of providing on-going support to educators.

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Useful Resources

Type of Resource Examples

Blogs • Understanding Fiscal Responsibility Blog (United States)

Comics/Cartoons • Sofinha and her Gang (Brazil)• What’s in it for Us? (New Zealand)

Crossword Puzzles • National Budget Crossword (Ireland)

Datasets on Public Spending

• A Scuola di OpenCoesione (Italy)• Budget Stories (Moldova)

Glossaries/Primers • The ABC of Taxes (Guatemala)• Declaring My Taxes (Costa Rica)

Interactive Games • CyberBudget Game (France)• Role Playing Game-Deciding a Municipal Budget (Germany)

Participatory Budgeting Guides

• Handbook for Schools to Implement Student Participatory Budgeting (Germany)• Welsh Government Participatory Budgeting Toolkit (United Kingdom)

PowerPoint Presentations • Budget Taxation & Government Finances (Ireland)• Government Spending (United States)

Posters/Graphics/ Wordles • National Budget Wordle (Ireland)• Tax Expenditure Interactive Graphic (Uruguay)

Quizzes/Trivia and Surveys • Taxes Trivia (Dominican Republic)• Tax Education and Citizenship Survey (New Zealand)

TV shows/media clips • 10-minute-box (Japan)• PBS Learning Media: Government Revenues and Spending (United States)

Worksheets and Handouts • Government Expenditures Worksheet (Canada)• Comparison of tax rates (Hong Kong)

Tool Kits/Lesson Plans • ‘Tax Matters’. HM Revenue and Customs. [United Kingdom]• Overview of Budget 2015: Building Our Future, Strengthening Social Security (Singapore)