Abstract

This study examines the impact of the economic crisis on school funding and spending in Peru during 2020-2021 and reviews actions taken in educational expenditure from 1950-2019 and prove that spending on education benefits the country by fostering human development and teaching life skills. The study was non-experimental, longitudinal and analyzed trends in order to achieve the first two objectives and was cross-cutting in order to attain the third objective. Information regarding Peru´s educational finances and GDP for the 1950-2019 period, life skills, education, health, economy and social data for 2012, 2015 and 2018, was based on 2018-2019 data sources from 55 countries from both national and internationally renowned organizations. Data processing was based on inferential statistical techniques including the OLS (Ordinary Least Square) method, Chow Test and correlation. Research results reveal 1) a contraction in public spending on education towards the end of 2020 and growth in 2021; 2) existing tension in defining the source (public or private) of educational funding, public funding on education as an economic policy tool and the overlap of life skills with school enrollment since 2001; 3) Based on international evidence, the benefits of life skills in an effective school approach. Recommendations for each of the aforementioned results are made in the conclusion.

Keywords COVID-19; Economic Growth; Education; Public Finances; Peru