SACRED LESSONS A study of religion and the effectiveness of foreign aid to education

Abstract

The effect that foreign aid to education has on educational outcomes has been explored through numerous studies. Although the literature agrees that aid positively affects school outcomes, fewer studies have explored country differences and their effect on aid efficiency. Drawing upon literature on religion and its impact on attitudes toward education, this essay examines the effect that religiosity, measured as the degree of religious education, and religion have on the effectiveness of aid to education. Using panel data from 106 developing countries spanning 2002 to 2014, the study explores how religious contexts and religiosity influence the effectiveness of aid on primary school enrollment. The findings show that foreign aid to education generally has a significant and positive effect on primary enrollment, aligning with earlier research. However, the effectiveness of aid varies across religious contexts. In predominantly Christian countries, aid significantly improves enrollment rates while in Muslim-majority countries, aid has no significant effect. The results for Hindu and Buddhist countries are inconclusive for total enrollment but suggest a positive effect on female enrollment. Unexpectedly, higher levels of religiosity amplify the effect of aid on enrollment, challenging assumptions that religiosity hinders educational development. The findings show that the effectiveness of aid varies across religious contexts and underscores the importance of adapting aid strategies to the religious and cultural contexts of recipient countries.