Harvard’s Lant Pritchett writes in a new paper for the Copenhagen Consensus Project:

There are many ways to press forward this kind of systemic reform, Mr Pritchett argues. Vouchers and a �market� for education might work well in some circumstances, but other approaches could achieve good results too in some cases: school autonomy (as granted to �charter schools� in the United States, for instance), decentralisation of control, community management, and the use of non-government providers, could all, Mr Pritchett argues, serve the goal of structural reform that he regards as necessary if the application of extra resources is to succeed.
One striking indication of how easy it is to spend money fruitlessly in education comes from the rich countries. According to one study cited by Mr Pritchett, Britain increased its real spending per pupil by 77% between 1970 and 1994; over the same period, the assessment score for learning in maths and science fell by 8%. Australia increased its real spending per pupil by 270%; its pupils� scores fell by 2%. Extra spending by itself is likely to be no more successful in the poor countries than it has been in the rich.