Guatemala is the largest country in Central America and has the largest population. Despite continued economic growth, the education sector presents enormous challenges.

Different partners have been working with Guatemala for several years to address those challenges, but results have been limited. Factors stalling progress include a lack of resources as well as lack of effective coordination mechanisms among partners and the government.

Bringing partners together to support education

The possibility of boosting coordination in the sector and accessing resources motivated Guatemala to engage with GPE in 2020. A newly established local education group agreed on an education sector plan and key activities to be prioritized.

The plan for 2020-2024 aims to ensure that children, adolescents and youth – especially those from indigenous backgrounds and living in rural areas – have access to quality education. Activities include improving the curriculum, school infrastructure and system resilience to crises, such as COVID-19.

By 2021, the government and partners came together mobilizing US$47.19 million towards the country’s education priorities as identified in the plan. The resources co-financed a US$10 million GPE Multiplier grant.

The GPE Multiplier is an innovative financing mechanism to catalyze more and better investment in education. Since 2018, GPE has allocated $480 million in grants through the Multiplier to 40 countries, crowd in more than $2 billion in additional external co-financing from a range of partners, including foundations and multilateral development banks.

In Guatemala, co-financers include several local foundations and associations: Carlos F. Novella Foundation, Sergio Paiz Andrade Foundation, IsraAID Guatemala, IsraAID Guatemala NGO Association, O.B.A.D.I. They also include international NGOs (World Vision and Save the Children) and UNICEF.

All commitments were new and additional resources to the sector in the form of grants, which generated greater resources to the sector than if it were in the form of loans, minimizing Guatemala’s debt sustainability implications.

The additional resources leveraged through the Multiplier grant and the alignment generated by the education sector plan created the incentives for them to join this initiative.

We spoke with two of Guatemala’s co-financers about their experience in partnering with GPE through the Multiplier.

How did your organization start the relationship with GPE?

Cecilia Dougherty, President, Carlos F. Novella Foundation: We were invited to be part of Guatemala’s local education group by the Minister of Education. We have been working closely with the ministry for many years, and most of our programs are certified by them so our actions align with the national vision and action.

Why is education an important agenda for your organization?

Salvador Paiz, President, Sergio Paiz Andrade Foundation: Education is the base of society. Not only does it provide stability and knowledge, but it makes people thrive. Education helps people transform their lives into something better and fulfilling.

My grandfather, Carlos Paiz, became orphan at a very early age. Due to his situation, he had to abandon his hometown, his education and everything he knew. He needed to make his way into the world with his skills. With tremendous effort, he built our family business, which continues to grow. He always emphasized in the importance of education and how it has the potential to transform a person’s life.

That is why our main purpose is to transform lives. We believe that a fundamental part of this transformation is education. Education is the strongest and only way to achieve a more prosperous country. We promote efforts such as leveraging technology as a tool for development, by introducing it at public schools to enhance education quality.

What motivates your organization to provide funding alongside the Multiplier grant?

Cecilia Dougherty, President, Carlos F. Novella Foundation: Our commitment to education in Guatemala comes from over 30 years as a private foundation and over 100 years as a family-owned business. We know that our investment grows exponentially in impact when it contributes to a national plan, and we become part of something greater. Working in alliance is powerful and effective and we, as citizens, need to support strong institutions. Complex challenges need a multilateral and long-term solution, and multisector involvement enriches outcomes.

Salvador Paiz, President, Sergio Paiz Andrade Foundation: What motivates and inspires us the most is knowing that our efforts change lives. We believe that the resources we devote to our work will have a multiplier effect. And this will add up to the vision we have as a more prosperous country. Being a part of this road map allows us to join efforts and measure the impact of our investments.

How can the Multiplier, as an innovative finance mechanism, support education transformation?

Cecilia Dougherty, President, Carlos F. Novella Foundation: The Multiplier gives focus to everyone working or investing in education, and it can reduce inefficiencies or duplicity in the topics being addressed. Civil society and private sector actors follow one path, and we all know the size and place of our contribution, which automatically becomes part of a greater institutional and inclusive approach. I think the Multiplier gives additional impact to current investment in education from sectors other than the government.

Guatemala’s Ministry of Education has led the identification and management of strategic co-financing partners, mobilizing critical resources to support large-scale reforms. GPE’s support through the Multiplier coupled with its partnership approach is helping the country achieve its goal to deliver quality education to all children.

A new era of cooperation has started in Guatemala. The Multiplier’s incentivizing effect goes well beyond its innovative financing role: it also helps broaden GPE’s partnership approach.

The members of the local education group and other coordination mechanisms, such as the education cluster, are benefiting from it for better coordination, but the greater beneficiaries will be the Guatemalan children.