In this article, we will take a look at 25 Countries that Spend Most on Education Per Capita.
The Link Between Education Spending and Academic Performance
The amount allocated to education spending is a key policy question for all governments, which is why there have been multiple studies on whether higher education spending produces beneficial outcomes. A 2023 study by Jung et al., titled ‘The Effect of Extra School Funding on Students’ Academic Achievements under a Centralized School Financing System’ evaluated the same in South Korea. The study discovered that additional funding for underperforming schools did result in academic improvement for some subjects. A 20% increase in financing decreased the number of below-average students in mathematics by 19.7%, science by 18.1%, English by 17%, and social studies by 16.1%. However, increased financing did not significantly affect students’ reading performance. The additional funding was utilized for various initiatives, including individual tutoring, after-school classes, and summer programs.
However, funding without proper planning and accountability achieves the opposite of the desired effect. Not every place results in improved academic performance when funding is increased. For example, Canada is one of the countries that spend the most on education, but a closer inspection reveals several discrepancies. When fiscal year 2012-13 is compared with fiscal year 2020-21, one of the highest percentage increases in public school spending occurred in Nova Scotia (42.7%). In contrast, the lowest occurred in Newfoundland & Labrador (7.9%).
However, students from the two performances didn’t perform much differently in the 2022 PISA examination, which is an international assessment of how good 15-year-old students are in reading, mathematics, and science. Both provinces came below the Canadian and the OECD average in mathematics, with Nova Scotia ranking seventh and Newfoundland & Labrador ranking tenth amongst all Canadian provinces. Both provinces ranked below the Canadian average in reading, with NS taking the sixth position and NL taking the ninth. Lastly, in science, NS and NL ranked eighth and ninth, respectively, with a difference of just one point among their average scores. The scores for reading and science were topped by the Alberta province, where spending increased only 15.1%.
Finally, the highest increase in spending from 2012-13 to 2020-21 occurred in Quebec (57.8%), but the province ranked below the national average in both reading and science. Furthermore, despite the increase in spending, the overall performance of the province decreased. From 2018 to 2022, Quebec’s average score in reading decreased by 18 points, whereas its score in science decreased by 25 points from 2015 to 2022. While PISA results are not the ultimate determiner of academic improvement, they give us one way of evaluating whether increased spending translates into improved performance, and the results for Canada are currently non-conclusive. So, while better spending can be leveraged for improved results, that does not always occur.
The Rising Cost of College
Even with governments increasing education spending, tertiary education continues to become more expensive than ever. In October 2023, the Guardian reported that in Australia, the tuition costs for certain humanities courses increased as much as 140% over the past five years. Despite rising costs, Australia is still one of the best countries for getting a college education. In 2021, a report from the Georgetown University Center on Education and the Workforce revealed that from 1980 to 2020, there had been a 169% increase in the average cost of tuition, accommodation, dining, and fees for an undergraduate degree.
However, over the same four decades, the average earnings for people aged 22 to 27 increased only 19%. This showcases a disproportionate rise in the cost of education compared to average income. It is also concerning, as both Australia and the United States have some of the best education systems in the world. Due to the rising costs, these education systems have become inaccessible to a large number of the population.
Offering Affordable Alternatives
As college becomes more unaffordable, people are turning to unconventional options for tertiary education that might allow them to acquire degrees at a lower cost. 2U, Inc. (NASDAQ:TWOU) is one such company that partners with colleges and universities to offer online degree programs. According to its 2022 Transparency and Outcomes Report, 2U, Inc. (NASDAQ:TWOU) provided over 4,000 digital programs in 2022, which included 163 degree programs, 264 executive education programs, and 3,371 open courses, among others. Of its 163 degree programs, 86% were either cheaper than their campus counterparts or at the same price. Throughout the entire year, 2U, Inc. (NASDAQ:TWOU) managed to build a learner network of 73 million people.
The company has also partnered with nine institutions to offer degrees priced under $26,000, allowing people to seek affordable options. For example, through this platform, Boston University offers an MBA and a Master’s in Public Health Degree, both of which cost $24,000. The MBA program had scaled to 1,700 students by 2022, which is when BU decided to launch the MPH program. 2U, Inc. (NASDAQ:TWOU) also engages in ‘Access Partnerships,’ which are agreements with non-profit universities and other organizations to offer free or extremely cheap tech skill programs. These are meant to provide job-relevant skills to people who belong to marginalized communities. An example is the Tulsa Community College, which partnered with the company to offer free cybersecurity and data science boot camps.
So far, in 2024, the company has taken several steps to grow its portfolio. On May 16, 2U, Inc. (NASDAQ:TWOU) announced an expansion of its partnership with Pepperdine University, offering six new programs in the fields of education and healthcare. On the same date, the company also announced that it had facilitated 100,000 job placements for students from its healthcare and education degree programs. On February 1, the company announced a new partnership with the University of Surrey to launch 15 online master’s degrees and 15 online professional certificate programs. All of these announcements show that not only is the company dedicated to growing its partner network but also to ensuring the career success of its students.
Companies like 2U, Inc. (NASDAQ:TWOU) do make it easier to get an education by significantly reducing the costs associated with educational programs. However, it doesn’t negate the importance of government spending in this domain. With this context, let’s take a look at 25 countries that spend the most on education per capita.
25 Countries that Spend Most on Education Per Capita
Our Methodology
In order to compile this list of 25 countries that spend the most on education per capita, we consulted the Insider Monkey Global Education Index. Our index sourced per capita expenditure data from the UNESCO Institute of Statistics. For countries whose data was missing, the values were calculated through correlation. You can look at the Insider Monkey Global Education Index for detailed insight into the methodology and subsequent calculations.
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25 Countries that Spend Most on Education Per Capita
25. United Kingdom
Per Capita Education Spending (2023): $2,606
The United Kingdom is one of the countries that spend the most on education per capita. In total, 81 universities from the country rank in the top 1,000 universities by the QS World University Ranking. The country ranks second on our Insider Monkey Global Education Index due to its education quality and spending in the field.
24. Qatar
Per Capita Education Spending (2023): $2,651
Qatar spends 3.23% of its total GDP on education and ranks 24th on our list. In 2023, the country spent $2,651 on education per capita. Two universities from the country are ranked in the top 1,000 by the QS World University Ranking.
23. New Zealand
Per Capita Education Spending (2023): $2,663
New Zealand ranks 34th on our Insider Monkey Global Education Index and spends 5.54% of its GDP on education expenditure. The QS World University Rankings rank eight universities from the country in the top 1,000.
22. Macao
Per Capita Education Spending (2023): $2,851
Despite its small size, Macao is one of the countries that spends the most on education per capita. In total, 5.25% of the region’s GDP goes to education. It also has two universities ranked in the top 1,000 by QS.
21. Cayman Islands
Per Capita Education Spending (2023): $2,855
The Cayman Islands are a British Overseas Territory and rank 21st on our list. In 2023, the region spent $2,855 on education per capita, or 2.87% of the total GDP.
20. Austria
Per Capita Education Spending (2023): $2,893
All public education, including universities, is free in Austria. Citizens from the EU and the EEA can enroll in any tertiary program for free, but other international students can expect to pay around 1,500 Euros a year in tuition fees.
19. Gibraltar
Per Capita Education Spending (2023): $3,004
Gibraltar ranks 19th on our list of countries that spend the most on education per capita, with around 4.87% of its GDP going to education expenditure.
18. Finland
Per Capita Education Spending (2023): $3,104
Finland spends 5.69% of its GDP on education and has nine universities ranked in the top 1,000 by the QS World University Ranking. All public universities in Finland are free for citizens of the EU and the EEA.
17. Netherlands
Per Capita Education Spending (2023): $3,172
The Netherlands ranks 17th on our Insider Monkey Global Education Index and our list of countries that spend the most on education per capita. 13 universities from the country are mentioned in the top 1,000 by the QS World University Rankings.
16. Belgium
Per Capita Education Spending (2023): $3,345
Belgium spends 6.23% of its GDP on education, which is among one of the highest rates in the world. The country ranks 28th on our Insider Monkey Global Education Index.
15. Ireland
Per Capita Education Spending (2023): $3,350
Eight Irish universities are ranked in the top 1,000 by QS, and the country is 15th on our list of countries with the highest education per capita spending.
14. Channel Islands
Per Capita Education Spending (2023): $3,351
The Channel Islands consist of two Crown Dependencies, but they are not an official part of the United Kingdom. With a per capita education spending of $3,351, the islands rank 14th on our list.
13. Monaco
Per Capita Education Spending (2023): $3,429
Monaco might be known for its gambling scene, but it is also one of the countries that spend the most on education per capita, ranking 13th on our list.
12. Australia
Per Capita Education Spending (2023): $3,527
Australia ranks fifth on our Insider Monkey Global Education Index, with 36 universities in the top 1,000 spots ranked by QS. The country spends 5.56% of its GDP on education, along with a per capita spending of $3,527.
11. Sweden
Per Capita Education Spending (2023): $3,688
Sweden is 11th on our list of countries that spend the most on education per capita. All public universities are free for students from the EU, the EEA, other Nordic countries, and Switzerland. PhD programs are free for students from all countries, regardless of their citizenship.
10. Isle of Man
Per Capita Education Spending (2023): $4,015
The Isle of Man is a self-governing British Crown Dependency, which ranks tenth on our list of countries with the highest per capita education spending.
9. Denmark
Per Capita Education Spending (2023): $4,313
Denmark is another European country that offers free higher education for EU or EEA citizens. The government spends 6.04% of its GDP on education expenditure.
8. United States
Per Capita Education Spending (2023): $4,371
The United States ranks first on our Insider Monkey Global Education Index, with QS ranking 142 of its universities in the top 1,000. From fiscal year 2021 to fiscal year 2022, public school spending per student increased 8.9%, the largest increase in over 20 years.
7. Norway
Per Capita Education Spending (2023): $5,005
Norway ranks seventh on our list of countries that spend the most on education per capita. Out of its total GDP, the country spends 5.04% on education expenditure.
6. Faroe Islands
Per Capita Education Spending (2023): $5,090
The Faroe Islands are a self-governing entity under Denmark, ranking sixth on our list of countries that spend the most on education per capita.
5. Switzerland
Per Capita Education Spending (2023): $5,189
Switzerland ranks fifth on this list and 23rd on our overall Insider Monkey Global Education Index. Ten universities from the country have made their way into the top 1,000 positions by the QS World University Rankings.