The reduction of transaction costs is a commonly mentioned yet rarely elaborated goal for aid effectiveness in educational development. The casual use of the concept of transaction costs conceals which costs may be reduced, which costs are required and, indeed, what transaction costs actually are. Examining issues related to harmonizing the…

This paper explores some of the financial issues that arise for teacher education policy and practice in developing countries. It is based on the results of the MUSTER research programme. First it provides an overview of the context which shapes investment in teacher education across four countries. Second, each case is considered from different…