AT THE CROSSROADS. Choices for Secondary Education in Sub Saharan Africa. The Sequel: Financing the Strategy. Comments:

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1 AT THE CROSSROADS Choices for Secondary Education in Sub Saharan Africa The Sequel: Financing the Strategy Comments:

2 The pivotal challenge: Mobilizing Financial Resources (1) Enrollments in secondary education can not be significantly expanded at present unit cost levels. In most countries opportunities to increase share education in national budget or share of secondary in education budget are very limited Considerable potential for efficiency gains through more intensive and effective deployment of currently available resources

3 The pivotal challenge: Mobilizing Financial Resources (2) External financial support will only have marginal net impact on resource availability Partnerships with communities, faith based organizations and for profit providers hold considerable promise

4 Towards African Strategies: Policies consistent with available means Rely on national resources Expect only modest increases in national public expenditures Adopt policies that imply resource requirements consistent with the available national means; Develop well structured public private partnerships. Don t count on external aid

5 The Cost of Expanding Access GER primary 110%; GER JSE 60%; GER SSE 30% Business as Usual Prim. JSE SSE Other Total Pupil Teacher Ratio Teacher salaries /GNP/capita Non teaching salaries/gnp/capita Non salary expenditure / GNP/capita Teacher salaries as % of total recurrent 85% 69% 63% Total unit cost % GNP /cap 12% 32% 74% % budget higher +other ed. 20% % GNP Needed 2.43% 1.73% 1.54% 1.14% 6.84% Source: Lewin 2006

6 Source: Lewin 2006 The Cost of Expanding Access GER primary 110%; GER JSE 60%; GER SSE 30% Implementing reforms Prim. JSE SSE Other Total Pupil Teacher Ratio Teacher salaries /GNP/capita Non teaching salaries/gnp/capita Non salary expenditure / GNP/capita Teacher salaries as % of total recurrent 81% 65% 60% Total unit cost % GNP /cap 11% 20% 30% % budget higher +other ed. 15% % GNP Needed 2.13% 1.16% 0.84% 0.61% 4.64%

7 The Cost of Expanding Access GER primary 110%; GER JSE 100%; GER SSE 50% Implementing reforms Prim. JSE SSE Other Total Pupil Teacher Ratio Teacher salaries /GNP/capita Non teaching salaries/gnp/capita Non salary expenditure / GNP/capita Teacher salaries as % of total recurrent 81% 65% 60% Total unit cost % GNP /cap 11% 20% 30% % budget higher +other ed. 15% % GNP Needed 2.13% 1.77% 1.40% 0.80% 6.11%

8 Using resources more efficiently: Teacher deployment Math of Teacher Requirements Pupil Teacher Ratio: PTR Official Weekly Teaching load: TL Teacher class ratio: TCR Weekly Hours of Instruction for each class: HI TCR = HI/ TL 2 = 40/ = 40/25 PTR = Class size/ TCR 35 = 70/2 35 = 56 /1.6

9 Using resources more efficiently: Teaching loads in selected OECD and WEI countries (2003) Country JSE SSE Country JSE SSE New Zealand Jordan Scotland Malaysia Ireland Paraguay United States Peru OECD mean Philippines Argentina Russia Brazil Thailand Chile Tunisia Egypt Uruguay India Zimbabwe Indonesia WEI mean Jamaica

10 Using resources more efficiently: teacher salaries Beginning secondary teacher salaries as a multiple of primary teacher salaries Country JSE SSE Country JSE SSE Argentina Malaysia Brazil Paraguay Chile Peru Egypt 1.00 Philippines India Sri Lanka Indonesia Thailand Jamaica Tunisia Jordan SSA

11 Indicative Financial Framework: Domestic Resource Mobilization (2015 target ratios) teacher salary (x GDP/p.c) Primary Junior secondary Senior secondary Pupil-teacher ratio Junior secondary Senior secondary Non-teacher salary share of recurrent spending (%) Junior secondary Senior secondary Repeaters (%) Junior secondary Senior secondary Based on FTI primary multiple. And WEI primary/ secondary ratio Based on East Asian multiples; efficient deployment of teachers and increased teaching loads See Lewin, 2006 and textbook cost estimates Some decrease from current levels; assuming that senior level will remain selective

12 Indicative Financial Framework: Service delivery indicators (2015 target ratios) Government revenue (% GDP) As in FTI framework Education spending as percent of recurrent Primary percent of recurrent education budget (REB) 20-25% As access to secondary education expands ratio may have to increase from 20% in countries at the high end of this range, share may decline Secondary % of REB % Junior secondary % Senior secondary Share of total secondary cost privately funded (%) Cost of JSE classrooms Assuming a higher education share of 15-20% 35 Where share is high it will decrease as more poor enroll $15,000 With simple structures and decentralized management

13 Towards African Strategies: Policies consistent with national means (2) Rely on national resources Expect only modest increases in national public expenditures Adopt policies that imply resource requirements consistent with the available national means; Develop well structured public private partnerships.

14 Models of Financing and Provision Public provision Private provision Public financing Free government schools Public subsidies complementing or replacing payment of tuition and other charges Management contracts Private financing User fees complementing public financing Pure private schooling, including unsubsidized community schools Source: Based on Patrinos and Sosale (2006)

15 Public-private financing schemes in Sub Saharan Africa Country Botswana Chad Côte d Ivoire, Uganda Gambia Kenya Lesotho Mauritius Senegal Mechanism Matching-grant schemes Community financing Government sponsorship of students at private institutions Targeted scholarships, capitation grants for all students Voucher for informal sector workers for short-term skill upgrading courses Government partnership with churches to share costs Publicly funded private provision Scholarships for students to attend private and public schools Tanzania Matching-grant schemes, targeted bursaries for secondary school girls Source: Latham, 2004, Verspoor 2008

16 Elements of a Policy Agenda for PPPs Separating policies for financing and provision Recognizing parents as the third partner of PPPs Creating an enabling environment for private provision Providing subsidized access for the poor to public and private schooling Recognizing the comparative advantage of each partner as the starting point for PPPs Building capacity and creating an enabling environment are critical for effective implementation

17 Effective public private partnerships Key elements Clear legal framework Transparent implementation Options for specific actions Simple procedures for registration and licensing Ensure transparency in resource allocation, Subsidize enrollment of disadvantaged students Create accountability indicators Encourage demand side financing schemes Open and participatory procedures for consultation on policy and implementation Rule-based policy implementation, clear accountability and effective communication

18 Towards African Strategies: Policies consistent with available means (2) Rely on national resources Expect only modest increases in national public expenditures Adopt policies that imply resource requirements consistent with the available national means; Develop well structured public private partnerships. Don t count on external aid

19 Education Aid in SSA by sub-sector (US$ billions) Education Total Basic Education Level Unspecified Post-Secondary Education Secondary Education US$ billions (current) Source: OECD/DAC database

20 Uganda: Towards Universal Secondary Education Government pays capitation grant instead of fees to all participating schools High cost government schools are not eligible Selected private schools in sub counties without government school can participate PTR: 40; Class size 60 Overcrowded schools are encouraged to double shift facilities Minimum teaching load increased to 21 periods (= 14 hours) Curriculum streamlined Construction decentralized and cost reduced

21 Uganda: Secondary Enrollment projection All secondary schools (private & government) Private and community secondary schools USE students Government aided secondary schools Participating USE private schools

22 Uganda: Funding Secondary education (Ush billion) Resources available for secondary education (7.5% LTEF) Total estimated cost secondary

23 ASSUMPTIONS PTR % enrolled in government schools Student class room ratio Proportion of diploma teachers Proportion of graduate teachers Monthly salary of diploma teachers (000) Monthly salary of graduate teachers (000) Growth in S1 enrollment % 5% 5% 5% 5% 5% 5% 5% 5% Teacher attrition 6% 6% 6% 6% 6% 6% 6% 6% 6% Proportion of private USE enrollments 8.5% 13% 13% 13% 13% 13% 13% 13% 13%

24 In conclusion (1) African secondary education development strategies will: align closely with national development priorities and anticipate trends in labor market demand recognize the bottom-up sequential nature of education development ensure effective central direction but strengthen school autonomy have to be cost-conscious in resource use support and build public-private partnerships reflecting relative competence for action.

25 In conclusion (2) Implementing reforms: the politics of change Political will: involves the will to act but also readiness for consultative practices for policy development, effective communication strategies, transparency in decision making and resource allocation processes and a willingness to consider evidence and lessons of experience Political will is most powerful when it derives from a national development vision which links education development to national development strategies.

26 In conclusion (3) : Implementing reforms: the practice of change: School systems are increasing transforming themselves in a system of schools where the responsibility for improvement and performance is shifting from the central level managers to the school level. Evidence based strategies are at the root of successful reform. Continuous learning from experience requires information Communication of challenges and achievements, public discussion of policy options and transparency in decision making are key ingredients of effective implementation strategies.

27 The Quality Imperative Thank You

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