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EDUCATION STAFF DEVELOPMENT PROGRAM – Global
EDUCATION STAFF DEVELOPMENT PROGRAM
Why Invest in the Private Sector?
Harry Anthony Patrinos The World Bank
May 8, 2014
1
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EDUCATION STAFF DEVELOPMENT PROGRAM – Global
Why Invest in the Private Sector?
2
1. Challenge of ensuring learning for all
2. Growth in private sector engagement
3. Evidence revolution
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EDUCATION STAFF DEVELOPMENT PROGRAM – Global
Increased Focus on Measurement
3
TIMSS
PISA
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EDUCATION STAFF DEVELOPMENT PROGRAM – Global
Growing Market for Education
4
2
4.5
1999 2013
Education expenditure ($ trillion)
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EDUCATION STAFF DEVELOPMENT PROGRAM – Global
Education Spending
5
AustraliaBulgaria
Colombia
Czech Republic
Denmark
Germany
Greece
Hong Kong
Iran
Japan
Korea
Lithuania
Netherlands
Norway
Portugal
Romania
Singapore
Slovak Republic
South Africa
Spain
Sweden
Switzerland
Thailand
United States
300
400
500
600
700
0 2 4 6 8
Public spending on pre-primary, primary, and
secondary education (% of GNP)
Med
ian
mat
h sc
ore
TIM
SS
me
dia
n m
ath
sco
re
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EDUCATION STAFF DEVELOPMENT PROGRAM – Global
Teacher Absenteeism
6
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EDUCATION STAFF DEVELOPMENT PROGRAM – Global
Why Invest in the Private Sector?
7
1. Challenge of ensuring learning for all
2. Growth of private sector engagement
3. Evidence revolution
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Private Sector Growth
8
0%
5%
10%
15%
20%
25%
1990 2000 2010
Private enrollment as % of total student enrollment
Source: World Bank 2013
Low income countries
Middle income countries
High income countries
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EDUCATION STAFF DEVELOPMENT PROGRAM – Global
Type of Provider
9
Provider Example Government
Traditional public schools
Faith-based
Madrasas Fe y Alegría schools in Latin America
NGO BRAC schools in Bangladesh
Community EDUCO schools in El Salvador
Private, for-profit
Bridge academies in Kenya Omega schools in Ghana Beaconhouse schools in Asia
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EDUCATION STAFF DEVELOPMENT PROGRAM – Global
Public, Private & Mixed Goods
10
Pure Public Good Mixed Good
Mixed Good Pure Private Good
More Nonexcludable
More Excludable
More Rival More Nonrival
Mixed Good
Pure Private Good Mixed Good
Pure Public Good
•food, clothing
•sold-out movie
•crowded highway
•software
•movie with empty seats
•uncrowded highway
•urban park
•national defense
•crowded city streets
•fish in international waters
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Why Public Intervention?
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Government Intervention…
EDUCATION STAFF DEVELOPMENT PROGRAM – Global 12
…need not be provision…
…nor even finance…
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Government Intervention…
EDUCATION STAFF DEVELOPMENT PROGRAM – Global 13
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EDUCATION STAFF DEVELOPMENT PROGRAM – Global
Finance-Provision Matrix
14 Patrinos et al. (2009)
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EDUCATION STAFF DEVELOPMENT PROGRAM – Global
Private Engagement across Countries
15 Source: Baum et al. (2013)
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Economics of Education
EDUCATION STAFF DEVELOPMENT PROGRAM – Global
(1930-2014)
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Economics of Vouchers
EDUCATION STAFF DEVELOPMENT PROGRAM – Global
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Public Schools & Vouchers
Current system of education
• Families purchase public or private education, subject to budget constraint
With a voucher
• Parents that choose public no worse off
Parents that switch
• Able to consume more schooling and other goods
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EDUCATION STAFF DEVELOPMENT PROGRAM – Global
Why Invest in the Private Sector?
19
1. Challenge of ensuring learning for all
2. Growth of private sector engagement
3. Evidence revolution
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EDUCATION STAFF DEVELOPMENT PROGRAM – Global
Evidence Revolution | Advances
20
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School Choice in the Netherlands
EDUCATION STAFF DEVELOPMENT PROGRAM – Global
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EDUCATION STAFF DEVELOPMENT PROGRAM – Global
Evidence Revolution | What Works
22
1/3 to 1/2 SD in English by grade 8
0.12 SD; for special education & limited English students: 0.3 - 0.4 SD
0.09 - 0.17 SD (English) 0.18 - 0.54 SD (math)
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EDUCATION STAFF DEVELOPMENT PROGRAM – Global
Good Charters use No Excuses Model
23
Frequent teacher feedback
Data to guide instruction
High-dosage tutoring
Increased instruction time
High expectations
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Traditionally collected input measures:
• Class size
• Per-pupil expenditure
• Teacher certification & teacher training
What Doesn’t Work
EDUCATION STAFF DEVELOPMENT PROGRAM – Global
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EDUCATION STAFF DEVELOPMENT PROGRAM – Global
Concession Schools
25
Public School Ciudad Bolivar, Bogotá,
Colombia
Concession School Ciudad Bolivar, Bogotá,
Colombia
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EDUCATION STAFF DEVELOPMENT PROGRAM – Global
Concession Schools
26
Enrollments
0
5000
10000
15000
20000
25000
30000
2000 2004
Drop out Outcomes
Direct
Indirect
-2
-1.6
-1.2
-0.8
-0.4
0
Direct
Indirect
Reduction in dropout rates, 1999-2003 (% points)
Math
Reading
0
1
2
3
4
5
Increase in test scores, 1999-
2003 (% points)
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Targeted Vouchers: Colombia Indicator Voucher students were:
Schooling 10 pts more likely to finish grade 8
Grade repetition 6 pts less likely to repeat
Test scores 0.2 SD higher
High school 5-7 pts more likely to complete
College exam 15-20% more likely to take
College scores 2 pts higher
Work 3 pts less likely during study
Delay marriage 1 pts less likely
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Universal Vouchers: Chile
• Expansion of schooling
• Mixed evidence on learning (Urquiola; Sapelli, Gallegos)
• New evidence on long term impacts (Patrinos, Sakellariou; Bravo,
Mukhopadhyay, Todd)
EDUCATION STAFF DEVELOPMENT PROGRAM – Global
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EDUCATION STAFF DEVELOPMENT PROGRAM – Global
Pakistan Foundation Assisted Schools
29
Public financing & private provision to reach poor
households
Results-oriented approach to raise
educational outcomes
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EDUCATION STAFF DEVELOPMENT PROGRAM – Global
Andhra Pradesh School Choice Project
30
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EDUCATION STAFF DEVELOPMENT PROGRAM – Global
BRAC Education Programme
31
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EDUCATION STAFF DEVELOPMENT PROGRAM – Global
Investing in Private Sector | Concerns
32
Public divided on issue of school vouchers
Remain controversial
Opponents of voucher system fear:
• Only poorest of poor would be left in public schools
• Beneficiaries would be high income families
• Funds would be drained away from public schools
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EDUCATION STAFF DEVELOPMENT PROGRAM – Global
Key Features of Successful PPPs
33
Appropriate legal / institutional framework
Well-informed decision making
Clear / detailed contracts
Open, competitive, transparent procedures
Predictable regulatory environment
Appropriate sharing of risks
Well developed administrative structures
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EDUCATION STAFF DEVELOPMENT PROGRAM – Global
Investing in Private Sector | Summary
34
Tailored to country circumstances
Not a panacea
Regulatory environment important
Think broadly about role of government
More evidence needed
Implementation
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EDUCATION STAFF DEVELOPMENT PROGRAM – Global
More Evidence
35
300 impact evaluations
http://datatopics.worldbank.org/EdStatsApps/Edu%20Evaluation/evaluationHome.aspx?sD=E