Public Disclosure Authorized Case-Studies- in Financing Quality gasic Ehrcation Public Disclosure Authorized TEe World Bank Mducation and Social Pblicy-Department Public Disclosure Authorized Public Disclosure Authorized FILE COPY SbiaONdIEEMGbtUf UTERNWM NSCVERUn@CONPWAMM ::;! ‘⋯⋯⋯⋯乌⋯ Case Studies in Financing Quality Basic Acknowledgements These case studies, co-edited by Adriaan Verspoor and Mun C. Tsang, provide the background for the Bank-sponsored presentation on "Financing Quality Basic Education" for the second meeting of the EFA Forum at New Delhi in September, 1993. Mun C. Tsang is the author of the Introduction and of the case study on China. The case study on Chile was co-authored by Donald Winkler and Taryn Rounds. David Plank is the author of the Brazilian case study. Staff in the Education and Social Policy Department prepared the case study on India. The Sahelian case study was prepared by staff in the Population and Human Resources Operations Division of the Sahelian Department. Staff in the Population and Human Resources Division of the Middle East and North Africa Country Department 1B (MN2CO) prepared the case study on Yemen. Theresa Moran provided editing and coordinated the case studies' publication. Many thanks go to all who contributed to the development of these studies and much appreciation goes to Margot Verbeeck for her invaluable assistance and desktop publishing skills. These case studies are not a formal publication of the World Bank. The findings, interpretations, and conclusions expressed in these case studies are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiated organizations,or to members of its Board of Executive Directors or the countries they represent. The case studies on Chile and on China were previously presented at the International Symposium on the Economics of Education in Manchester, England, May 18-21, 1993. ia Case Studies in Financing Quality Basic Table of Contents Page Acknowledgements ............................................. i Introducion ................................................. 1 I. Issues in the Financing of Quality Basic Education ................... 2 Resourc Reallocation for Quality Improvement .................. 2 Resource Mobilization for Basic Education ........ ........... 2 Targeting Resources to Benefit Females and Marginalized Populations .... 3 Decentralization ...................................... 5 II. Summary of Case Studies ................................... 6 The Sahelian Counties .................................. 7 Yemen ............................................ 7 C ins ............................................ 8 Chile ............................................. 8 India ............................................. 8 Brazil ............................................ 9 Financing Qualty Basic Educarion in the Sahel .......................... 12 1. Resource Mobilization for Basic Education ....................... 14- More Efficient Resource Use............................. 15 Reallocation of Education Resources in Favor of Primary Education .... 23 Mobilizing Outside Resources ............................ 24- Conclusion ........................................ 25 II. Quality of Basic Education .................................. 25 Repetition and Drop-out in Primary Education .................. 26 Inservice Teacher Training .............................. 29 Textbooks......................................... 30 School Feeding Programs ............................... 30 Administrative Control and 1ocal Development ................. 30 V Case &xdies i FLnescdM QaIY Bastc Educian M. Basic Education for Girls .................................. 32 IV. Conclusion ........................................... 33 Republic of Yemen: Hunan Development, Societal Needs and Human CapitalResponse . 40 I. The Financing of Education: An Overview ...................... 42 II. Increasing Female Participation in Primary Education ................ 44 M. Quality Improvement in Basic Education ........................ 46 IV. Key Issues and Problems in the Financing of Basic Education ........... 47 V. Conclusion ........................................... 51 FinancialReform of Basic Education: The Chinese Experience ................. .53 I. Socio-Economic Context of Reform ........................... 53 U. Decentralization and Diversification ........................... .55 Decentralization ..................................... 55 Diversification ...................................... 56 Ill. An Assessment of the Financial Reform of Basic Education ............. 58 An Emerging Financing System for Basic Education .............. 59 Increased Resource Mobilization ........................... 59 Low Investment and Difficulties in Poor Areas .................. 62 Large Disparities ...................... .*.*. ..... .64 Inefficiency and Management Weakness ...................... 65 IV. Lessons and Further Development ............................ 65 Increasing Resources to Basic Education ...... 66 Assisting Disadvantaged Areas and Populations ................. 68 Improving Efficiency .................................. 68 Education Reform in Cile: Decemraliationand Sdool Ooice ................ 72 1. Education Reform in Chile ................................. 72 II. Municipal and Private Sector Response ......................... .73 Revenues ......................................... 73 Changing Market Share ................................ 74 Demand for Private Education ............................ 74 Supply of Private Education ............................. 76 Model of Private School Market Share ....................... 77 Vi Tabe of CmmsIn M. The Equity and Efficiency Consequences of the Reform . 79 Equality in Spending .................................... 79 Equality in Outcomes .. ................................. 80 Effects on Costs....................................... 81 Cost-Effectiveness ................................... 82 IV. Conclusions .......................................... 85 Financing Quality Basic Educarion in India ............................. 88 1. Problems of Educational Development in India .................... 90 II. The New Direction in Indian Elementary Education: The National Policy of Education............................................ 93 M. The Uttar Pradesh Basic Education Project ....................... 94 Community Participation . ............................... 97 Institutional Development ................................. 97 Improving Information Systems for Planning, Management and Professional Support .......................................... 98 Conclusion ........................................ 98 FinancingBasic Education in Brazil ................................. 114 I. The Quality of Basic Education .............................. 115 II. Educational Finance in Brazil ................................ 117 M. Policy Options in Educational Finance .......................... 120 Administrative Decentralization............................. 120 Diversification of Revenue Sources .......................... 121 Targeting Resources to Marginalized Populations ................ 122 Transparency and Accountability .......................... 123 Conclusion ........................................ 124 vii 子 ―-------------------------,--(- Caw SmAn in Plnemcdne Ousft Bwk Edumgm 1. ISSUIES IN THE MANCING OF QUALXrV BASIC EDUCATION Resource ReaUocafton for QuaUty Imprvvemext To achieve quality basic education for all, existing resources mist be used efficiently. Interventions in the education process have to be undertaken to allocate resources among the different inputs in such a way that they improve pupil learning with maximum cost-effectiveness. In its 1990 policy paper on primary education, the World Bank identified three categories of policy measures related to I i : provision of inputs that increase learning, such as tcabooks and. improved curricula; cost-reduction measures that, within reisonable ranges, have little negative effect on learning, such as multiple shifts and multigrade classes; and inputs dun indirectly improve learning by improving educationzoana ement such as incentives for teachers and information system. For example, the Republic of Yemen is currently wairin an effort to improve education quality by reallocating its resources. Mie Yemeni govemment has a specific budget item earniarked for quality improvements in basic education such as curriculmn and tettbwk I- --1-,- - and in4ervieg tearhin training. This budget item will increase over time so that by the yew 2000 ft will be approximately 700 million Rials (about one percent of total primary education mr; . Many of the resources used for quality improvement will come from savings realized Wough the 0 n a of the teachin profession. Local teachers are replacing more experienced outside teachers and are being trained to upgrade their pedagogical skills and topic knowledge. A study of rural northeastern Brazil by R. Harbison. and E. Hanushek argues that in many cam quality improvements in basic education can over time be . The study shows that quality UMLLV .-. 1 can be P ipP P! P d to lead to gain in efticiency (such as a reduction in the number of students that repeat grades or drop out) that more than offset the direct costs of such imptovements. In fwt quality i tovements can make schooling in= equally accessible by fiveing up places occupied by repeaters for new entrants. 7his further strengthens