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We conducted a systematic review to identify policy interventions that improve education quality and student learning in developing countries. Relying on a theory of change typology, we highlight three main drivers of change of education quality: (1) supply-side capability interventions that operate through the provision of physical and human resources, and learning materials; (2) policies that through incentives seek to influence behaviour and intertemporal preferences of teachers, households, and students; (3) bottom-up and top-down participatory and community management interventions, which operate through decentralisation reforms, knowledge diffusion, and increased community participation in the management of education systems. Overall, our findings suggest that interventions are more effective at improving student performance and learning when social norms and intertemporal choices are factored in the design of education policies, and when two or more drivers of change are combined. Thus, supply-side interventions alone are less effective than when complemented by community participation or incentives that shift preferences and behaviours.

This article reviews what has been learned over many decades of foreign aid to education and discusses what works and what does not work. It shows the positive contribution that aid has made to education in aid-recipient countries, the most tangible outcome of which is the contribution that aid makes to expanding enrolments especially of basic education. But the article also indicates that there is a considerable gap between what aid does and what it could potentially achieve, especially in relation to its contribution to improvements in educational quality. It shows the distortions caused by focusing on enrolments and insufficiently on quality. Sustainable education outcomes will not be achieved merely by reproducing yet more successful, but individual projects. Perversely, development agencies which focus only on demonstrable short-term impact may well be contributing, unwittingly, to an undermining of long-term impact on the education systems and their deepening development, to whose progress they are trying to contribute.

This paper discusses the recent history of education aid policy, and introduces the studies that constitute this UNU-WIDER Special Issue. It highlights an important shift in policy-thinking in the international aid architecture that has dominated the global education aid agenda since the early 1990s. It argues that Rawlsian principles of social justice, human rights perspectives, and advancements in economic theory that emphasize the role of human capital in development have been central in that process. The studies of this Special Issue aim to address the general question of how aid can better support the collective actions that seek to improve education systems in developing countries. Overall, they provide an analysis of key policy strategies that can improve the functioning of education systems and the quality of services, and discuss major challenges for the future global education agenda.