Abstract
With the decrease in oil revenues in recent years, Bahrain has been forced to increasingly resort to external financing to support its development programs. While much concern has been expressed over the expansion in general public services, these activities do not appear to have contributed significantly to the country's increased debt burden. Instead, educational expenditures appear to be one of the major areas that have benefitted from the stepped up levels of government borrowing. However, it is also apparent that deficiencies with respect to the quality and relevance of the country's school system will reduces these dividends considerably below their potential.
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