World Bank Approves €66.3M Loan to Advance Inclusive Education Reform in Serbia

In a major step toward reforming and strengthening its primary education system, the World Bank’s Board of Directors has approved a €66.3 million loan (approximately $75 million) to the Republic of Serbia. The new initiative, titled the Inclusive Primary Education Improvement Project, is designed to modernize learning environments, address educational disparities, and raise overall education standards in line with European Union norms.

This strategic investment will directly impact approximately 250,000 primary school students and 20,000 teachers, with a special focus on marginalized groups such as students from rural areas, Roma communities, and children with disabilities. The World Bank’s support highlights Serbia’s commitment to building a more inclusive, equitable, and future-ready education system.

Bridging Development Gaps Through Human Capital Investment

The new education initiative reflects Serbia's notable progress in human development, a domain in which the country has emerged as a regional leader in the Western Balkans. Despite these advances, gaps remain—particularly in ensuring equal access to quality education for all children.

Nicola Pontara, the World Bank’s Country Manager for Serbia, stressed the significance of the new project:

“Serbia has made notable progress in human development, advancing to the highest level in the Western Balkans in just one decade, but there are still gaps to be bridged with European standards. With this project, we wish to support efforts to design inclusive learning environments where the children of Serbia can thrive and catch up with their peers in Europe.”

Infrastructure, Inclusion, and Innovation at the Core

One of the project’s central goals is to revitalize school infrastructure, especially in disadvantaged areas—including low-income municipalities, regions inhabited by ethnic minorities, and zones vulnerable to climate risks such as flooding and heatwaves. New investments will support the construction and modernization of schools to meet the demands of energy efficiency, safety, and accessibility.

Alongside physical upgrades, the project takes a comprehensive and inclusive pedagogical approach. The Serbian government plans to introduce a Whole Day School model, aiming to:

• Extend instructional time beyond current limits, aligning Serbia’s education system with EU averages.

• Promote lifelong learning competencies, such as problem-solving, digital literacy, and communication skills.

• Embed mental health support and well-being practices within the school environment.

• Expand extracurricular and co-curricular offerings to enhance student engagement and inclusion.

This Whole Day School model marks a transformative shift from traditional learning structures, creating space for a richer, more holistic educational experience that caters to diverse student needs.

Fostering Equity Through Policy and Partnerships

The Inclusive Primary Education Improvement Project is not merely an infrastructure upgrade—it represents a policy commitment to social equity and inclusive growth. It embodies the principles of education for all, targeting the most vulnerable children who often face multiple layers of exclusion, whether due to ethnicity, geography, socio-economic status, or disability.

The project will support systemic reforms in:

• Teacher training and professional development, equipping educators to work in diverse and inclusive classrooms.

• Curriculum enrichment, ensuring alignment with both national priorities and European benchmarks.

• Monitoring and evaluation systems, enabling the government to track educational progress and adjust policies accordingly.

This is expected to create ripple effects in broader human capital development and economic competitiveness, given education's vital role in social mobility, employment outcomes, and civic participation.

A Strong Step Toward EU Integration and Long-Term Growth

The World Bank’s financial and technical backing aligns with Serbia’s aspirations for European Union integration, particularly its commitment to advancing toward Chapter 26: Education and Culture of the EU acquis.

The Inclusive Primary Education Improvement Project is poised to serve as a flagship model for the region, promoting resilience, equity, and excellence in education. As Serbia invests in its young learners, it moves closer to a future where every child—regardless of background—can access quality learning and thrive in an increasingly complex world.