Association for Public Policy Analysis & Management

Researchers and practitioners alike are increasingly concerned about the sustainability of project-based services after development aid ends. In this paper, we document the sustainability of early childhood education centers under a large-scale project in Indonesia. Using panel data on early childhood education centers established under the project, we examine (i) whether service provision changed after project closure when development aid funds were no longer available and (ii) what factors predict the sustainability of early childhood education centers after project closure. We find that centers established under the project began rapidly introducing student fees, expanded funding sources to non-government and community organizations, and cut back on provision of additional services such as vitamins and supplementary food. We also find that sources of funding, quality of early childhood education, and local market condition during the project investment period are important predictors of whether centers are sustained after project closure. Implications for sustaining development projects in early childhood education are discussed.