Public-Private Roles in Education

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Public-Private Roles in Education

• E. Jimenez

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Q1 The figure below showsa) Private education
expenditure as of total b) Public education
expenditure as of total
Bolivia
0
50
100
Ghana USA
Germany
Uganda Sierra Leone
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Q1. The figure below showsa) Private education
expenditure as of total b) Public education
expenditure as of total
Netherlands
Bolivia France UK
0
50
100
S. Africa
Venezuela Ghana USA
Indon. German.
Peru Uganda Sierra Leone S. Korea
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Q2. The figure below shows (secondary)a) Private
education enrollment as of total b) Public
education enrollment as of total
Netherlands
0
50
100
USA
Australia Korea
Chile
Belgium
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Q2. The figure below shows (secondary)a) Private
education enrollment as of total b) Public
education enrollment as of total
Kuwait France
Netherlands Mauritius
0
50
100
Mexico USA Niger Cyprus
Australia Korea
Chile
Belgium
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AnswersQ1 The figure below showsa) Private
education expenditure as of total
Netherlands
Bolivia France UK
0
50
100
S. Africa
Venezuela Ghana USA
Indon. German.
Peru Uganda Sierra Leone
Source Psacharopoulos and Nguyen 1995 Fighting
Poverty the role of government and the private
sector World Bank.
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Answers Q2 The figure below showsa) Private
education enrollment as of total
Kuwait France
Netherlands Mauritius
0
50
100
Mexico USA Niger Cyprus
Australia Korea
Chile
Belgium
8
What lessons?

• Public intervention through finance is different
  from provision
• Its hard to generalize where the private sector
  may be large.

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Options for intervention
Degree of public financing
100
Voucher supported schools Regulated private
schools (Netherlands, Belgium)
Public schools with no cost recovery (many)
Public facilities with cost recovery (US
universities)
Unsubsidized private sector (Philippine, tertiary
level)
0
100
Degree of public provision
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What lessons?

• Public intervention through finance is different
  from provision
• Its hard to generalize where the private sector
  may be large.
• If there is a private sector, then the govt has
  an important regulatory role.
• Finance, provision and regulation must be set to
  meet access, equity and quality goals

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Analyzing public-private interactions Outline

• Functions of government financing, providing and
  regulating
• Financing education analyzing issues and
  options
• Providing and regulating education analyzing
  issues and options

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Analyzing public finance

• Relate public spending to educational outcomes
• Improving quality of spending

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Education spending and outcomes
15
10
Years of schooling completed
5
0
0
2
4
6
8
10
Public spending on education as of GDP
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Education spending and outcomes are NOT correlated
Poor correlation between education spending and
outcomes
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South
Sri Lanka
Jamaica
Guatemala
Zimbabwe
Africa
Jordan
Philippines
Tunisia
Algeria
Colombia
Egypt
10
Indonesia
Syria
China
Paraguay
India
Honduras
Kenya
Nicaragua
Ecuador
Cameroon
Togo
Zambia
Years of schooling completed
Nepal
Ghana
Laos
Morocco
Rwanda
Cote
Malawi
Uganda
Bangladesh
d'Ivoire
Tanzania
C.A.R.
Madagasca
5
Sierra
Senegal
Burundi
r
Leone
Chad
Pakistan
Mozambiqu
Guinea
e
Burkina
Faso
Niger
Ethiopia
Mali
0
0
2
4
6
8
10
Public spending on education as of GDP
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Analyzing public finance

• Relate public finance to educational outcomes
  its not the amount, its the quality of spending
• Improving quality of public spending
• Market failures vary by type of education

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Market for education
private MC
Price
social MB
private MB
Quantity
0
Q
Q
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Market failures in education

• Characteristic
• Market Failures
• Externalities
• Productivity
• Nation-bldg, community

• Applies to?
• Primary education the effects of numeracy and
  literacy

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Example of externality effects Effect on
earnings of an illiterate of having a literate
member in the household () in Pakistan, 1998-99
Source Pakistan Poverty Assessment, 2001 World
Bank
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Example of externality effectsEffects on health
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Market failures in education

• Characteristic
• Market Failures
• Externalities
• Productivity
• Nation-bldg, community

• Applies to?
• Primary education the effects of numeracy and
  literacy
• -- Research

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Market failures in education

• Characteristic
• Market Failures
• Externalities
• Productivity
• Nation-bldg, community
• Capital Mkt Failures
• Redistribution

Higher education
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Proportion of public subsidy received by poorest
quintile
Colombia 92 Kenya 92/3 Ghana 91/2 Indonesia,
Malaysia 89
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Analyzing public finance

• Relate public finance to educational outcomes
  its not the amount, its the quality of spending
• Improving quality of public spending
• Knowing what to finance -- market failures vary
  by type of education
• Knowing whether to finance or provide

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Education in Papua New Guinea
MC
MC
SMB
SMB
PMB
PMB
Secondary
Primary
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Insert slide on FSSAP Bangladesh
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Pakistan Encouraging private schools to meet
social goals

• In Feb 1995, Urban Girls Fellowship Program in
  Quetta is establishing private schools in poor
  neighborhood cost-effective?
• Subsidies paid directly to schools for 3 years
• Initial Rs.100 (3)/mo/girl to limit of Rs10K
  plus Rs.200/girl
• Reduced in 2nd and 3rd years then zero.
• Unsubsidized boys to be no more than 1/2 of
  enrollment
• Randomized selection of neighborhoods

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Pakistan Encouraging private schools to meet
social goals
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Pakistan Encouraging private schools to meet
social goals
Source J. Kim, H. Alderman and P. Orazem, 1998
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Pakistan Encouraging private schools to meet
social goals

• It aint easy
• In five districts in UP, India, imaginary private
  schools skimmed 386 Rs crore
• In Pakistan, 1 out of 4 English-medium schools
  had anyone who could converse with Bank SASED
  management

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Analyzing public-private interactions Outline

• Functions of government financing, providing and
  regulating
• Financing education analyzing issues and
  options
• Providing and regulating education analyzing
  issues and options