Title: Stimulating Investment in Global Education
1Stimulating Investment in Global Education
February 2003
2Overview
- The Story To Date
- Why EdInvest?
- Pressures for Change
- - Global Education Market
- - Education Reform
- - New Roles
- Some Lessons Learnt from West Africa
- The Story going Forward
- Products and Services
- Outcomes and findings
- Accomplishments in 2002
- Plans for 2003
- Room for Partnership?
3The Story To Date
- Why EdInvest?
- Pressures for Change
- - Global Education Market
- - Education Reform
- - New Roles
- Some Lessons Learnt from West Africa
4Why EdInvest?
- Global education industry
- IFC receiving education proposals
- Education reform
5Global Education Market
- 113 million children worldwide have no access to
primary education. (World Education Forum,
Dakar)
- Global demand for higher education will reach 160
million by 2025, up from 84 million today.
(Merrill Lynch)
- Education expenditure in developing countries is
inadequate to cover rising enrollments (UNESCO
World Education Report)
- Over the past 50 years, K-12 enrollment in
developing countries has increased by a factor of
8, and higher education enrollment has increased
by a factor of 14. - Public expenditure per student has remained
generally flat in relation to GNP, particularly
for the least developed countries.
6Household Spending ( of total ed. spending) all
levels
Uganda Chile Korea Indonesia United States Ma
li Japan Germany France Denmark Netherlands
Sweden
57
45
41
37
26
25
23
22
9
7
3
2
0
10
20
30
40
50
60
7Private Enrolment in Tertiary Education
8Education Reform
- Growing private provision
- Vietnams semi-public schools
- Deregulation eg, Senegal, Tanzania
9(No Transcript)
10Competition
- Scholarships and vouchers
- Chile, Colombia, Côte dIvoire
11Contracts
- Private management and subsidies
- Kenya, West Africa
12Public Role in Education
- Income distribution
- Capital market imperfections
- Information asymmetries
- Externalities
13Private Role in Education
- Reduce fiscal burden
- Improve efficiency
- Enhance choice and diversity
- Increase accountability
14Financing and Provision
15Regulatory Framework West Africa
- The Gambia Senegal Côte dIvoire
- Entry/Exit Limited Relatively liberal Authorized
or
- Regulations No waiting period chartered
schools
- Authorized or Take account of recognized
schools impact on existing schools
- Fees No limits for No limits Ministry of fully
private Commerce
- Grant-aided ratifies fees
- limited
- Direct No for private Recognized Subsidies to
primary
- Subsidies fee-paying private schools schools
- Yes for Grant- subsidized Public sponsorship
- aided of students in private
- schools
16Regulatory Framework West Africa
- The Gambia Senegal Côte dIvoire
- Subsidized Yes No No
- land/
- buildings
- Tax/Customs Exempt from No education No
education
- Exemptions duties, income specific specific
tax
- sales taxes, exemptions. Exemptions
- training/ex-pat Non-profit -only for
non-profit levies exemptions
- Curriculum Free Centrally Centralized, but
- prescribed but variations allowed
- variations allowed for French schools
- School Hours Free Free Free
- School Year Free Free Set centrally after
- discussion
17Private Education in West Africa, late 1990s
18Growth in Enrollments (private institutions, )
66
Tertiary
8
Secondary/Senior Secondary
72
20
32
Middle/Junior Secondary
123
6
123
Primary
40
0
20
40
60
80
100
120
140
Côte dIvoire(Average annual growth from 1991/92
- 1995/96)
Senegal (1987/88 - 1997/98)
The Gambia (1993 - 1996)
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21The Story Going Forward
- Products and Services
- EdInvest Outcomes
- Accomplishments in 2002
- Plans for 2003
- Room for Partnership?
22Products and Services
- Engages in four major activities
- conducts research into market-based solutions in
education markets, with a particular emphasis on
developing countries
- undertakes consultancies that enable the
discovery of underlying patterns and processes
that are at work in the burgeoning global
education industry - offers training modules with a particular focus
on the institutional requirements for
public-private partnership and
- markets and promotes conferences.
23EdInvest Outcomes
- Internal IFC-World Bank dialogue, strategy, new
department, investments
- External demand for consulting
- News/reviews of global industry
- Assistance to education entrepreneurs
24EdInvest Outcomes
- Internal IFC-World Bank dialogue, strategy, new
department, investments
- External on-line resources
- News/reviews of global industry
- Market studies (Africa, Eastern Europe)
- Conferences
25EdInvest Outcomes
- Market surveys (W. Africa)
- Regulatory framework is key
- Education entrepreneurs worldwide
- Research program
26Accomplishments in 2002
- EdInvest has achieved a lot during its first year
of operation
- EdInvest website of global investment
opportunities
- monthly newsletter about global education market
activity distribution has doubled within the
past year to more than 7,000 individuals
worldwide - global education conferences in Athens, Lisbon,
Phoenix and London
- market analyses on Saudi Arabia and Ethiopia and,
in the Balkans, Albania, Bulgaria, Croatia, FYR
of Macedonia, Romania
- training through the United Nations Training
Institute, the World Bank Institute and the
Institute of Economic Affairs, and
- leveraged additional resources from multi and
bilateral contracts and commissions from the
private sector.
27Activities for 2003 (through June) - Actual
- Consultancies
- Global Study Private Education for the Poor
(Templeton Foundation)
- India Study of Demand and Supply for SME in
Education (IFC)
- Saudi Arabia Partners in Progress (GKSA)
- Rwanda Private Education Sector Study (DfID)
- Africa (pending) Secondary Education in Africa
Study Financing and Costs (WB)
- Conferences
- India Education India (April)
- Portugal World Education Market (May)
28Activities for 2003 - Planned
- Development and rollout of an Education
Development Finance Facility for Private
Education.
- Establishment of a virtual Community of
Practice in which public and private education
stakeholders share their reflections and
findings and - Hosting of global e-discussions.
29The Education Development Finance Facility
- Objective
- To create a vehicle that can enable disbursement
of small amounts (eg. 200,000 to 1.5 million)
to education enterprises in a secure manner.
- Required
- Information
- - access for enterprises to existing sources of
commercial finance
- - demand from enterprises for commercial finance
products
- - potential partners among commercial providers
of finance
- - parameters and possible structures for an IFC
sponsored facility.
- Infrastructure
- - to disburse the funds
- - to ensure quality.