Education is in crisis worldwide. Millions of children, especially the most marginalized, are excluded from school. Many millions more attend school, but they do not learn basic reading and math skills. In addition, international funding for education is on the decline. "The Investment Case for Education and Equity" explains the global education crisis and outlines solutions. It establishes three essential ingredients to revive progress in increasing the number of children who can go to school and learn: more funding for education, an equitable approach to resource allocation and more efficient spending on quality education. The report is divided into four chapters. Chapter 1 examines the wide-reaching impact of education, economically and socially. One key message is that not all education levels are equally important--both from an equity perspective and as a means to maximize the benefits of education in developing countries. Chapter 2 analyses which children remain excluded from education, considering access, completion and learning. Chapter 3 explores the barriers to education, including education funding levels (domestic resources and external aid), how it is distributed and how efficiently it is used. Finally, Chapter 4 recommends ways of addressing the challenges highlighted in Chapter 3, including improved data and increased, more equitable and cost-effective investment. Nine appendices are included: (1) Human development benefits of education; (2) Age and dropout (3) Per pupil expenditures in secondary and tertiary vs. primary education; (4) Geographical distribution of funding and teachers per child; (5) Reasons for not being in school; (6) The SEE [imulations for Equity in Education] Database; (7) Interventions to increase access; (8) Interventions to increase learning: Full interventions list and cost estimates; and (9) ICEF's Strategic Plan 2014-2017 and results framework for education. A list of references and resources is provided. [For the executive summary, see ED560008.]