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Torres, Carlos TITLE Educational Change and Structural Adjustment: a Case Study of Costa Rica

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Torres, Carlos TITLE Educational Change and Structural Adjustment: a Case Study of Costa Rica DOCUMENT RESUME ED 368 046 EA 025 667 AUTHOR Carnoy, Martin; Torres, Carlos TITLE Educational Change and Structural Adjustment: A Case Study of Costa Rica. [Working Document.] INSTITUTION United Nations Educational, Scientific, and Cultural Organization, Paris (France). Bureau for the Coordination of Operational Activities. PUB DATE Sep 92 NOTE 88p.; A Case Study prepared for ILO-UNESCO Interagency Task Force "Austerity, Adjustment and Human Resources." PUB TYPE Guides Non-Classroom Use (055) Reports Descriptive (141) EDRS PRICE MF01/PC04 Plus Postage. DESCRIPTORS Case Studies; Conservatism; Developing Nations; *Economic Change; *Educational Finance; Elementary Secondary Education; Foreign Countries; *Government Role; Higher Education; *Policy Formation; *Political Influences; Public Education IDENTIFIERS *Costa Rica; Inteinational Monetary Fund; *World Bank ABSTRACT In the 1960s and 1970s, steady economic growth helped the Costa Rican government expand its education system rapidly. The 1979 oil shocks, the U.S. 1981-82 recession, and other factors ended this prosperity and exposed the fragility of Costa Rica's late 1970s debt-financed development. To restore economic growth, new economic policies were implemented, based on International Monetary Fund bridge loans and World Bank Structural Adjustment loans. Structural adjustment imposed cf.rtain conditions, including reduced government spending for social programs like educeion. Secondary education was sacrificed politically to keeping teacher salaries low, parent material contributions high, and university education subsidies high. As morale fell, scapegoating teachers became common. This study examines why the Costa Rican government made such education decisions during structural adjustment (1983-91) and explores how structural adjustment policies are being implemented in Costa Rica's educational setting. Clearly, the government's decision to reduce educational spending was influenced by IMF/World Bank pressures. Policies were less planned than reactive. Teacher organizations' reactions to salary reductions were understandable. The neo-conservative adjustment process negatively affected the shape and quality of Costa Rica's public education. Contains 130 references, 18 tables, and 7 figures.(MLH) *********************************************************************** Reproductions supplied by EDRS are the best that can be made from the original document. *********************************************************************** Ite ,14". U S DEPARTMENT Of EDUCATION OthceI Educa lion& Re beaten end Improvement "PERMISSION TO REPRODUCE THIS EDUCATIONAL RESOURCES INFORMATION MATERIAL HAS BEEN GRANTED BY CENTER ;ERIC) This documenl has ben reproduced at tecehed from the person or organization ortg.nat.no C Minor changes hate been made to improve teproductton ouainy Potnts of wet* ot opmtons stated In this dOttr meet do not neCesSenty represent offictal TO THE EDUCATIONAL RESOURCES OERt position or policy INFORMATION CENTER (ERIC)" wpm.ikainkas 01,4,1 r -mot 0-0 vs et m , ri Operational Policy and Sector Analysis Division Working documents EDUCATIONAL CHANGE AND STRUCTURAL ADJUSTMENT: A CASE STUDY OF COSTA RICA by Martin Carnoy and Carlos Torres Staff responsible for the document: Lueila Jallade UNESCO Bureau for the Co-ordination of Operational Activities (BAO) Paris, September 1992 3 BA0/92/WS/4 A Case Study Prepared for ILO-UNESCO Interagency Task Force "Austerity, Adjustment and Human Resources" Martin Carnoy is Professor, Stanford University. Carlos Torres is Associate Professor, University of California Los Angeles. With the collaboration of: Yolanda Rojas and Carlos Paniagua, Professors, University of Costa Rica. The views expressed in this paper are those of the authors and not necessarily those of UNESCO. 4 Preface Many countries facing persistent economic problems have been forced to initiate far-reaching modifications of economic policy and structure. Both the economic crisis and the adjustment process itself are generally painful and politically difficultResponses to the crisis, whether or not organized into a formal adjustment process, have frequently involved reducing public expenditures on social services.In allocating resources for investment and recurrent expenditures, many countries have in practice assigned a lower priority to education and training, or have adopted austerity measures that have severely compromised the quality of education and training. Such disinvestment in the skills and knowledge of young people may jeopardize countries' longer term recovery and development prospects. Both ILO and UNESCO have a worldwide mandate to exercise leadership in the development of human resources and hence consider it their responsibility to assist countries that pursue structural adjustment measures to maintain and improve the provision of education and training. Both organizations have sought to play a more active role in the context of structural adjustment and are indeed well placed to promote fruitful dialogue among all the parties involved in developing and implementing structural adjustment programmes. As specialized UN agencies, ILO and UNESCO have an objective and well-recognized neutrality in their programmatic efforts.They have close contacts with the ministries, governmental and non governmental institution's responsible for social programmes and at the same time speak the language of both funding agencies and ministries of finance. Their extensive and rich experience in human resource development enables them to create programmes for education and training that str -ss both equity and efficiency. Recognizing their common concern with the impact of financial constraints on human resource development, UNESCO and ILO have established an Interagency Task Force on Austerity, Adjustment, and Human Resources.The Task Force has undertaken to develop approaches to respond to education and training challenges of countries undergoing economic restructuring. Through their joint work, both organizations aim not only at facilitating dialogue on education and training policies in the context of economic adjustment, but also at supporting the development of national analytic, policy formulation and implementation rvacities. The initial deliberations and papers commissioned by the Task Force focused on developing a clearer picture of the consequences of the widespread financial crisis for education and training. 5 On this basis, the Task Force initiated a programme of policy oriented research. The basic concern of the research is the need to protect and develop education and training through informed, feasible and sustained policy reform. This requires a fuller understanding of national responses to financial crisis and economic reorganization and of the international economic and political environment that circumscribes those responses. Especially since critical decisions on education and training policies may take place in different institutional settings, the ;3int research programme has been organized around focused case studies. The purpose of the case studies is to learn from countries' experiences to assist national decision makers and managers in other countries in their efforts to bring about sustainable policy reform. The central focus of the case studies is on the response of the decision making process and on the political, economic, and social contexts within which policies are adopted and implemented.The case studies analyze in detail the education and training responses of governments, institutions, interest groups, firms, communities, households, and individuals to structural change and financial retrenchment. Case studies have been undertaken with ILO support in Brazil, Senegal and Hungary, and with UNESCO support in Costa Rica and Tanzania. Each case study has been conducted by a small group of national and foreign researchers with extensive experience in education, training and development. The UNESCO case studies were coordinated by Joel Samoff, Stanford University, who is also the senior consultant to the ILO-UNESCO Task Force.The Task Force coordinator at UNESCO is Lucila Jal lade, education economist in the Operational Policy and Sector Analysis Division. The Costa Rica case study, commissioned by UNESCO, is presented here. It was prepared by Martin Carnoy, Stanford University, and Carlos Torres, University of California at Los Angeles, who are leading specialists in the economics and sociology of education, with the collaboration of Yolanda Rojas and Carlos Paniagua, University of Costa Rica.Beaudouin Duvieusart, educational planner and Marc Cohen at UNESCO have provided useful contributions for the finalisation of the study. Juan Chong Sanchez, Head of UNESCO's Regional Office in Costa Rica provided guidance and support. Klaus Bahr Director a.i. Bureau for Co-ordination of Operational Activities 6 Table of contents Page 1. Introduction 1 2. Economic crisis and education in Costa Rica: the setting 6 Structural adjustment policies 10 Structural adjustment and income distribution 16 The crucial and growing role of foreign assistance 19 3. Educational policies under structural adjustment 20 Policies in the Arias Administration 20 Policies in the Calderon Administration 24 4. Structural adjustment policies and educational change 28 Public spending on education 29 Primary education 31 Secondary academic education 33 Vocational education 35 Higher education 35 The Instituto Nacional de Aprendizaje 38 5. Selected issue: the changing role of teachers
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