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Public–Private Partnerships for Education and Training: Special Innovative Strategies for Accelerated Human Resource Development in South Asia Public–Private Partnerships for Education and Training Special Focus on Bangladesh, Nepal, and Sri Lanka South Asia remains one of the fastest-growing regions in the world but concerns are rising that its workforce lacks the skills and education to drive its economy into the ­st century. Providing access to quality education and skills training is now a priority of policymakers in the region. But even though government spending on education has increased signifi cantly in recent years, it has not resulted in e ective education outcomes. This report is one in a series of four publications that examines how education and training systems in the region can be improved. In particular, it looks at the role that the private sector can play in improving standards through investments in education and training. About the Asian Development Bank ADB’s vision is an Asia and Pacifi c region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to a large share of the world’s poor. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration. Based in Manila, ADB is owned by members, including from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance. INNOVATIVE STRATEGIES FOR ACCELERATED HUMAN RESOURCE DEVELOPMENT IN SOUTH ASIA PUBLICPRIVATE PARTNERSHIPS FOR EDUCATION AND TRAINING Special Focus on Bangladesh, Nepal, and Sri Lanka ASIAN DEVELOPMENT BANK 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines ASIAN DEVELOPMENT BANK www.adb.org 9 789292 610340 INNOVATIVE STRATEGIES FOR ACCELERATED HUMAN RESOURCE DEVELOPMENT IN SOUTH ASIA PUBLICPRIVATE PARTNERSHIPS FOR EDUCATION AND TRAINING Special Focus on Bangladesh, Nepal, and Sri Lanka ASIAN DEVELOPMENT BANK Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) © 2017 Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 632 4444; Fax +63 2 636 2444 www.adb.org Some rights reserved. Published in 2017. ISBN 978-92-9261-034-0 (print), 978-92-9261-035-7 (electronic) Publication Stock No. TCS179081 DOI: http://dx.doi.org/10.22617/TCS179081 The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area. This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) https://creativecommons.org/licenses/by/3.0/igo/. By using the content of this publication, you agree to be bound by the terms of this license. For attribution, translations, adaptations, and permissions, please read the provisions and terms of use at https://www.adb.org/terms-use#openaccess. This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributed to another source, please contact the copyright owner or publisher of that source for permission to reproduce it. ADB cannot be held liable for any claims that arise as a result of your use of the material. Please contact [email protected] if you have questions or comments with respect to content, or if you wish to obtain copyright permission for your intended use that does not fall within these terms, or for permission to use the ADB logo. Notes: In this publication, “$” refers to US dollars. Corrigenda to ADB publications may be found at http://www.adb.org/publications/corrigenda. Printed on recycled paper CONTENTS Tables, Figures, and Boxes v Foreword ix Preface x Abbreviations xi Key Messages for Forging Public–Private Partnerships in Education and Training in South Asia xii Executive Summary xiii I. Introduction and Background A. ADB Support to Public–Private Partnerships ¥ B. Limitations § C. Definition of Private Provision ¨ D. Brief Overview of Education and Training in South Asia ª II. Public–Private Partnerships in Education and Training A. Trends in Private Participation in Education «« B. Types of Public–Private Partnership Arrangements «§ C. Advantages and Challenges of Public–Private Partnerships in Education «¨ D. Stages of Public–Private Partnership Maturity «ª III. Challenges and Possible Use of Public–Private Partnerships as An Innovative Solution A. Challenges and Possible Solutions in Basic Education «¬ B. Challenges and Possible Public–Private Partnership Solutions in Post-Basic Education and Training §ª IV. Establishing a Framework for Reform Using Public–Private Partnerships A. Policy Options, Level of Private Participation, and the Political Economy Sector Reform ¨¯ B. Public Financial Management—Fiscal Risks and Value for Money ²¥ C. Access to Long-Term Finance ²« D. Enabling Environment ²¨ E. Institutional Capacity to Design, Deliver, Monitor, and Evaluate ²¨ iv Contents V. Public–Private Partnerships for Education in Bangladesh A. Public–Private Partnerships in Bangladesh ²¬ B. Education Sector Analysis ª§ C. Education Challenges ª³ D. Opportunities ¬¥ E. Conclusion and Recommendations ¬¬ VI. Public–Private Partnership for Education in Nepal A. Public–Private Partnerships in Nepal ³¥ B. Education Sector Analysis ³§ C. Education Challenges ¯´ D. Opportunities ¯² E. Conclusion and Recommendations ¥´´ VII. Public–Private Partnership for Education in Sri Lanka A. Public–Private Partnerships in Sri Lanka ¥´² B. Education Sector Analysis ¥´¯ C. Education Challenges ¥¥² D. Opportunities ¥«¥ E. Conclusion and Recommendations ¥«³ VIII. Summary, Conclusion, and Recommendations A. Why Invest in Education and Training in South Asian Countries? ¥§¥ B. Growth of Public–Private Partnerships in Education and Training ¥§¨ C. Findings and Recommendations ¥§³ References Appendix: PERFECT—A Summary of Public–Private Partnership Framework Requirements TABLES, FIGURES, AND BOXES Tables ¥ ADB Documentation on the Need for Public–Private Partnerships « « General Background Information on Five South Asian Countries, «´¥¨ § § Public and Private Financing and Provision ² ¨ General Status of Education and Training in Asia and the Pacific ª ² Gross Enrollment Rate in Five South Asian Countries from Preprimary to Secondary Level, «´¥¨ ¬ ª Numbers of Technical and Vocational Education and Training Institutions, Enrollment, and Market Share in Bangladesh, Nepal, and Sri Lanka ¯ ¬ Institutional Di·erentiation in Higher Education: Bangladesh, Nepal, and Sri Lanka ¥´ ³ Resources for Education in South Asian Countries, «´¥¨ ¥§ ¯ Financial Indicators for Higher Education in Selected South Asian Countries ¥¨ ¥´ Number of Qualified Teachers and Pupil–Teacher Ratios by Region, Primary and Secondary Education, ¥¯¯¯ and «´¥« ¥² ¥¥ Grade ¥ Intake and Primary Cycle Completion Rates by Year, «´¥´–«´¥« ¥ª ¥« Secondary and Tertiary Enrollment Rates in Selected South Asian Countries, «´¥¥ ¥³ ¥§ Labor Participation Rates in Selected South Asian Countries by Gender, «´¥ª ¥¯ ¥¨ Factors to Support the Creation of Successful Education-to-Employment System ¥¯ ¥² Private Enrollment Numbers and Market Share by Region, «´¥« «« ¥ª Classifying Types of Education Partnership «¨ ¥¬ Arguments for and against Public–Private Partnership «¨ ¥³ Issues and Challenges in the Basic Education Sector in South Asian Countries «¬ ¥¯ Examples of Public–Private Partnership Infrastructure Arrangements §² «´ Issues and Challenges in Post-Basic Education in South Asian Countries §ª «¥ Assessing the Scope for Public–Private Partnerships in Education and Training ²´ «« Selected South and Southeast Asian Countries’ Rankings on the World Bank’s Ease of Doing Business Survey ²¥ «§ Summary of Activities and Requirement for Establishing and Operating Public–Private Partnerships ²² «¨ Examples of Public–Private Partnerships in Basic Education ª´ vi Contents «² Trends in National and Education Budget as Percentage of Gross Domestic Product in Bangladesh, FY«´¥´–FY«´¥§ ª¨ «ª Number of Institutions, Enrollment, and Teachers in Primary and Post-Primary Institutions, Bangladesh, «´¥´ ª² «¬ Summary of Challenges in Basic Education in Bangladesh ª¯ «³ Summary of Challenges in Technical and Vocational Education in Bangladesh ª¯ «¯ Main Challenges in Higher Education in Bangladesh ¬¥ §´ Examples of Possible Public–Private Partnerships in Basic Education in Bangladesh ¬« §¥ Challenges in Technical and Vocational Education and Training and Possible Responses Using Public–Private Partnerships in Bangladesh ¬¨ §« Examples of Possible Public–Private Partnerships in Higher Education in Bangladesh ¬² §§ A Summary of Challenges to Public–Private Partnership Formulation and Implementation ¬³ §¨ Examples of Public–Private Partnerships in Education in Nepal ³« §² Level of Education by Age, Nepal ³¨ §ª Number
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