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Developing Countries I School Management in Developing Education Policy in Developing Countries Edited by Paul GLewwe The University of Chicago Press :: Chicago and Losidon Contents Overview of Education Issues in Developing Countries i Paul GLewwe School Resources and Educational Outcomes in Developing Countries: A Review oi the Literature from 1990 to 2.010 13 Pant GLewwe, Eric A. Hanushek, Sarah Humpage, and Renato Ravina Preschool Programs in Developing Countries 65 Jere R. Behrman, Patrice Engle, and Lia Fernald Child Health and Educational Outcomes 107 HaroLd Alderman and Hoyt BLeakley Incentives for Students and Parents 137 Jere R. Bebrman, Susan W. Parker, and Petra E. Todd School Management in Developing Countries 193 Sebastian GaLiani and Ricardo Perez-Tryglia Competition and Educational Productivity: Incentives Writ Large 243 W. Bentley MacLeod and Miguel Urquriola Compararive Cost-Effectiveness Analysis to Inform Policy in Developing Countries: A General Framework with Applications for Education 2.8 5 IqbaL Dhaliwal, Esther Duflo, Rachel Glennerster, and Caitlin Tulioch Index 339 2 School Resources and Educational Outcomes in Developing Countries: A Review of the Literature from 1990 to 2010 Paul Glewwe (University of Minnesota) Eric A. Hanushek (Stanford University) Sarah Humpage (University of Minnesota) Renato Ravina (University of Minnesota) 2. /. Introduction and Motivation As explained in chapter i, economists and other research ers have accumulated a large amount of evidence that ed ucation increases workers' productivity and thus increases their incomes.1 There are also many nonmonetary benefits of education, such as improved health status and lowered crime (Lochner 2011). Finally, at the country level there is also a large amount of evidence that education increases the rate of economic growth (Hanushek and Woessmann 1008). These analyses all highlight the value of improving a country's human capital and provide the motivation for developing countries to invest in the skills of their popula tions. They do not, however, indicate which types of spe cific investments should be pursued. Chapter r also pointed out that policymakers in devel oping countries have quite generally accepted the message of these benefits from improved human capital and have bLtffttt.HANUSHiK. HUMPAGE.ANDRAVINA 14 SCMOOl RESOURCES AND E D U C A TI 0 NA t OUTCOMES 15 greatly increased their funding of education. As seen in table 2.1, since Table 2.3 Primary and secondary gross enrollment rates. 1980-2010 1980 real government expenditures on education more than doubled in Latin America, almost tripled in the Middle East and Sub-Saharan Primary Secondary Africa, and increased by more than fivefold in East Asia and by about Region 1980 1995 2010 1980 sevenfold in South Asia. International development agencies have also 1995 2010 East Asia and Pacific 111 115 called for greater resources to be devoted to education, and have in 111 43 65 76 Latin American and Caribbean 106 111 117 42 Middle East and North Africa 53 90 creased their levels of assistance for education projects in recent years, as 87 97 102 42 64 72 South Asia 76 shown in table 2.2. 99 no 27 Sub-Saharan Africa 49 55 78 75 100 The most consistent focus of investment has been on increasing pri 14 27 36 mary and secondary school enrollment rates, with the ultimate goal of Sourtes: World Bank 1996, 2013. higher levels of educational attainment. The increases in enrollment over the past three decades, particularly at the primary level, have been Table 2.4 Primary school completion rates, 1991 and 2010 quite dramatic. From 1980 to 2010 primary and secondary enrollment Region 1991 2010 rates have increased in all regions of the developing world (table 2.3), East Asia and Pacific 101 so that by 2010 gross primary enrollment rates were at or above 100% Latin American and Caribbean 97 84 Middle East and North Africa 102 in all regions, and gross secondary enrollment rates were above 50% in 77 South Asia 88 62 all regions except Sub-Saharan Africa.2 Similarly, table 2.4 shows that Sub-Saharan Africa 86 51 primary school completion rates increased in all regions from 1991 to 67 2010, and in the latter year were near 90% or higher in all regions ex Sources: Woild Bank 2002, J012. cept Sub-Saharan Africa. Much of the increased funding for education, particularly in the where no school previously existed, reflecting the rather obvious fact earlier periods, took the form of building and staffing schools in areas that it .s hard to go to school if no school exists. Moreover, there is am ple evidence that enrollment increases when the distance to the nearest Table 2.1 Public expenditures on education in developing countries. 1980-2010 (millions of 2000 school decreases. When increased spending on existing schools makes US dollars) them more attractive, either by reducing school fees and other direct Region 1980 1996 2010 costs of school.ng or by improving the quality of the educational oppor- tunmes they provide, one would expect that enrollment would increase East Asia and Pacific 78,923 197,804 435,982 further.' Latin American and Caribbean 51,931 70,067 130,500 Middle East and North Africa 26,326 41,915 68,486 More recently, however, attention has begun to swing toward the South Asia 4,315 14,972 30,195 quality of schools and the achievement of students-and here the evi Sub-Saharan Africa 9,332 13,089 27,405 dence on outcomes is decidedly more mixed. Over the past decade it Sources; World Bank 1999, 2008, 2012. has become possible to follow changes in student performance on tests offered by the Programme for International Student Assessment (PISA). Table 2.2 Official development assistance for education. 1980-2010 (millions of constant 2010 US dollars) While student learning appears to be increasing in several countries, this tendency ,s not universal. More specifically, table 2.5 presents evidence 1980 1990 2000 2010 or1 learning among 15-year-old students in 12 developing countries (of Atl donors 7,400 10,986 7,619 13,412 wh.ch 7 are in Latin America). Examining trends from 2000 to 2009 DAC (OECO Oev. Assist, Comm.) Countries 7,400 8,631 5,522 9,420 Multilateral S countries show clear upward trends (Chile, Colombia, Peru, Tunisia! — 2,355 2,097 3,652 Non-DAC countries and Turkey), while the other 7 show either mixed or even decreasing — — — 340 trends. At the aggregate level, it may simply be that expanded enrollment Soutte: OECO, International Development Statistics (www.oecd.org/dac/sUts/idsonline). brings m progressively less able and less qualified students, who then GlEWWE. HANUSHEK. HUMPAbl. AND RAVIN* Hnuui ment, but this impact may be limited to new students who were not Table 2.5 Scores on internationally comparable tests for 15-year-old students. 2000-2009 previously in school, with no effect (or even a negative effect) on current 2003 2006 2009 Country Subject 2000 students. 374 398 This discussion is related to a substantial body of literature, particu Argentina Reading 418 381 388 Mathematics larly for developed countries, that suggests that money alone is not the 396 403 393 412 Brazil Reading 386 answer to increase student learning. Specifically, for developed countries Mathematics 356 370 449 Reading 410 442 Chile there is substantial research indicating that overall expenditures, and 421 Mathematics 411 common school initiatives funded by those expenditures such as lower 385 413 Colombia Reading 481 Mathematics 470 class sizes or more educated teachers, are not closely related to student 382 393 402 Indonesia Reading 371 outcomes.6 Similar findings, although not as strong, come from the re 371 Mathematics 360 381 401 405 search on schools in developing countries (Fuller and Clarke 1994; Ha Jordan Reading 387 Mathematics 384 nushek 1995; Harbison and Hanushek 1992). 400 410 425 Mexico Reading 422 419 In response to findings that increased educational spending has had Mathematics 385 406 370 Peru Reading 327 little effect on student performance, many policymakers and researchers 420 417 421 Thailand Reading 431 in both developed and developing countries have advocated changing 419 Mathematics 417 417 375 380 404 the way that schools are run—such as changing the incentives faced by Tunisia Reading 371 Mathematics 359 365 teachers (and by students) and, more generally, changing the way that 375 380 404 Turkey Reading 424 445 schools are organized. The evidence on whether such policies have been Mathematics 423 Reading 434 413 426 Uruguay effective is reviewed in chapters 5, 6 and 7 of this book. 427 Mathematics 422 427 Yet it is still possible that spending that changes basic school and Sources: OECO 2000. 20O3. 2006. 2009. teacher characteristics, if properly directed, could play a role in improv Note: Peru has a math score for 2009. but not for any of the previous years. Since the main purpose o! this table is to ing students' educational outcomes in developing countries. Thus it is compare changes over time in test scores. Peru's math score in 2009. which was 365. is not included in this table. useful to review the more recent literature on school spending and re pull down the average score. Yet some countries with mixed or declin sources, extending the prior reviews that covered studies through the ing trends did not show large increases in school enrollment, and were early 1990s. Indeed, significant numbers of new studies have appeared increasing real expenditures per student on education. For example, in since 1990. Argentina the gross secondary school enrollment rate has been about More important, many of the newer studies employ much stron 85% from 1998 to 2007, and spending per pupil was somewhat higher ger research designs than were previously used.
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