let us open the door to equal opportunities

Let us Open the Door to Equal Opportunities

Study on Investment in Early Child Education in Montenegro

Ivana Prica

Lazar Čolić

Hana Baronijan

Importance of pre-school education


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Confirmation in numerous empirical studies

Pre-school education plays an important role in child development and has important effects on the society

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Result of the PISA tests analysis in 34 countries (Pisa in Focus, 2010) show there is a link between attendance of PE and later success and that which is more important:

─ when PE includes a wider layer of children

─ when PE lasts longer

─ when the ratio between the number of children and the number of educators is smaller

─ when more resources are invested per child


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397

411

423

393

408

425

403

422

440

Ne Da, jedna godina imanje

Da, više od jednegodine

Link between achievement and kindergarten attendance, PISA 2012, Montenegro

Matematika Nauka Jezik

Return of investment into human capital depending on age

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Schooling

Pre-school programme

Job training

4-5Preschool

School After completing schooling

Age

Inicijalno postavljene stope povraćaja ulaganja u ljudski kapital jednake po uzrastima

Rat

e o

f re

turn

of

inve

tsm

ent

into

hu

man

cap

ital Programmes oriented to earliest age

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Souruce:"The case for investing in young children."(Heckman, 2012)

INVESTMENT INTO LEARNING AT AN EARLY AGE YIELDs A CONSIDERABLY HIGHER RETURN THEN INVESTMENT LATER IN LIFE (HECKMAN, 2012)

Importance of preschool education

Return of investments into human capital at different ages depending on social-economic status

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Level of return Children from low level

social-economic environment

Children from low level social-economic environment

Early childhood

Primary and Second. School

Higher education

Adulteducation

Age

Source:"Efficiency and equity of European education and training policies." (Woessmann, 2008)

Good quality pre-school programmes enable children from marginalized families to have equal beginning of education



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In a number of countries there has been a change in the role of PE from primary role of keeping children safe to the function of educating children

Montenegro has recognized the importance of pre-school education and upbringing and there is programme base for extending it

„By 2020 a minimum of 95% of children between the age of4 and the age when obligatory primary education begins should participate in the early education programmes”(Europe 2020)

To provide for all the children in Montenegro, from birth until the time when they start primary school, good quality services for early development and learning so that they reach their full potential and become active and productive members of the society”

Strategiy of Early Pre-school education and upbringing for the period 2010 to 2015

Aim of the Study

Project aim: how to extend services of pre-school education to as many children an possible, especially those coming from vulnerable and marginalized groups

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Study objective: analysis of the pre-school education funding scenarios

Funding scenarios have been analyzed which

– Ensure universal coverage of children by pre-school education (one year before startign school),

– Ensure gradual increase in coverage by pre-school programme for children aged 3-5

The Project was initiated by UNICEF Office in Montenegro and the Ministry of Education of Montenegro

On the other side, many parents in Montenegro are notfamiliar with the development role of pre-school institutions

Children coverage is not high.

On one side it is necessary to familiarize parents through a campaign with the benefits of pre-school education, and on the other to provide conditions for all children to attend pre-school

education

¼ of parents think a child is better off at home, without considering the benefits of PE attendance for child development„Assessment of knowledge, views and behaviour related to the care of children”, UNICEF, 2009, Montenegro

The state of pre-school education in Montenegro

Coverage of children from 0 to 6 years of age: 33,2% or 15.604 of children

Coverage of children 3 to 6 years of age: 52.4% or 11.641 children

Coverage varies depending on the age of children and the territory

Numerous pre-school institutions operate beyond their capacities: 3.377 or 30% of surplus children aged 3-6

The state of pre-school education in Montenegro

The relation between the degree of a municipality development and degree of coverage of children by PE, Montenegro, 2012

Assessment of costs of introducing pre-school

preparatory programme with general coverage

Introducing preparatory pre-school programme (PPP)

Recognized importance of pre-school education and long-term benefits of general coverage

Pre-school preparatory programme (PPP)

3 hours per day, 5 days per week and 10 months per year, so that every child has at least 600 hours of PPP per year;

Cover all the children who have:

– One year before starting school in 2015,

– Two years before starting school in 2017, and

– Three years before starting school in 2019;

PPP is free

Provides one meal (light meal)

Total costs of pre-school education (PE), 2015-20, EUR

Primary programmes

costs

PPP costs for children who do

not attend PETotal costs

of PEShare of PPP in total costs

2015 16.963.657 989.243 17.952.900 6%

2016 16.876.707 1.034.122 17.910.829 6%

2017 16.719.488 2.033.033 18.752.521 11%

2018 16.679.920 1.955.438 18.635.358 10%

2019 16.814.183 3.461.938 20.276.121 17%

2020 16.870.884 3.433.725 20.304.610 17%

PE costs and budget expenditures for PE, 2015-20, EUR

PE costsBudget expenditures

for PE (3,8% GDP)Costs–

budg. expend.

2015 17.952.900 13.209.506 4.743.394

2016 17.910.829 13.525.081 4.385.748

2017 18.752.521 13.879.032 4.873.489

2018 18.635.358 14.257.791 4.377.567

2019 20.276.121 14.646.886 5.629.235

2020 20.304.610 15.046.600 5.258.010

Scenarios of funding the remaining costs from compensations paid by parents

Currently parents are paying 40 and 20 Euros per month, i.e. 1,8 and 0,9 Euros per day

Compensation for half a day is always 1/2 of the compensation for full day primary programme

Options:

The same compensation for crèche and kindergarten or higher compensation for crèche in relation to kindergarten

Compensation is not changed during 2015-20 or compensation increases in 2017 and 2019

Compensation is realized 100% or is realized only 80%

Compensation is the same or different per municipalities….

Model of different compensations per municipalities:

20% higher in municipalities with a high rate of coverage:

Budva, Tivat, Kotor, Herceg Novi and Cetinje

Average (median) for municipalities with the average rate of coverage:

Podgorica, Kolašin, Danilovgrad, Bar, Pljevlja and Žabljak, Nikšić, Mojkovac, Ulcinj and Plav

20% lower in municipalities with a low rate of coverage:

Bijelo Polje, Berane, Šavnik, Andrijevica, Plužine and Rožaje

Scenarios of funding the remaining costs from compensations paid by parents

A. The same price for kindergarten and crèche

B. Different price for kindergarten and crèche

C. Compensation is paid for attendance rate of up to 80%.

Scenarios A: The same price for kindergarten and crecheRevenues - expenditures, EUR

A1 A2 A3 A4

2015 741,464 164,110 360,688 60,447

2016 1,062,746 489,220 693,470 394,693

2017 526,600 242,385 164,738 164,738

2018 1,004,718 721,440 649,536 649,536

2019 -202,378 -202,378 -554,515 -256,003

2020 186,850 186,850 -160,244 139,624

A1: 38 Euros per month A2: 34, 36 a 38 Euros per month

A3: median 34 Euros per month

A4: median 32, 34 and 36 Euros per month in 2015, 2017 and

2019

Scenarios B: Compensation for crèche higher than for kindergartenRevenues- expenditures, EUR

B1 B2 B3 B4

2015 366,778 587,899 572,726 272,486

2016 693,666 912,280 907,628 608,851

2017 163,519 379,284 380,075 344,185

2018 644,441 858,959 866,083 829,992

2019 -566,385 -349,841 -336,730 -110,812

2020 -178,108 39,069 58,763 285,629

B1: 40 full day crèche and 34 kindergrat B2: 40 full day creche and 36 kindergartenB3: median 40 full day creche and 34 kidergartenB4: median for full day creche 38, 39 and 40, and 32, 34 and 36 Euros for kindergarten

Scenarios C: 80% of compensation is charged from parentsRevenues - expenditures, EUR

C1 C2 C3

2015 -124,567 568,258 587,899

2016 202,458 890,688 912,280

2017 -326,045 356,071 379,284

2018 154,883 834,751 858,959

2019 -1,059,250 -373,753 -349,841

2020 -672,865 14,907 39,069

C1: 40 Euros per month for full day programmeC2: 46 Euros per month for full day programmeC3: 50 Euros for full day crèche and 45 Euros for kindergarten

Scenarios C: 80% of compensation is charged from parentsRevenues - expenditures, EUR

C4 C5 C6

2015 106,375 540,832 60,447

2016 431,868 872,737 355,002

2017 128,699 342,557 105,464

2018 608,128 826,963 590,393

2019 -373,753 -375,408 -375,408

2020 19,677 19,677 16,534

C4: 42, 44 and 46 Euros per month for full day programmeC5: median 44 Euros per month for full day programmeC6: median is 40, 42 and 46 Euros per month for full day

programmes in 2015, 2017 and 2019

Main findings

In scenario C the rate of collection of 80% causes an increase in the amount of compensation to be paid by parents by around 20%

In general programmes where compensation is changed over the years are more efficient

Of all A scenarios, scenario A4 shows the lowest difference between total revenues and total expenditures, followed by scenario A2

Of all B scenarios, scenario B4 results in the lowest difference between revenues and expenditures and thus is more superior

Of all C scenarios, scenarios C4 and C6 show the lowest degree of aberration of revenues from costs

Besides the above quoted, the choice of the scenario depends also on the compensation to be paid in those scenarios…

Municipalities 2015 2017 2019

Compen.per scenario A2 34 36 38

Compen.perscenario A4

Higher coverge 38 41 43Average coverage 32 34 36Low coverage 26 27 29

Compen.per scenario C4 42 44 46

Compen. perscenario C6

High coverage 48 50 53Average coverage 40 42 44Low coverage 32 34 35

Monthly compensations for full day programmes, EUR

Monthly compensations for full day programme in scenario B4, EUR

Minicipalitieswith higher cover.

Minicipalitieswith average cover.

Minicipalities with low cover.

2015 creche 46 38 30kindergar. 38 32 26



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Conclusions

The costs of PPP make up 6%-17% of total costs PE

The budget covers 75% of total costs of PE for 2015-2020

The remaining amount would be paid by parents through compensation, in accordance with the proposed scenarios

The amount of compensation in different scenarios varies depending on:

year of programme implementation;

weather crèche or kindergarten is concerned;

weather a municipality with average, lower or higher rate of children converge by PE is concerned, and, the key factor is

rate of collection of compensations by the parents.

Conclusions

Scenarios that cover the costs of PE most efficiently are scenarios A2, A4, B4, C4 and C6.

The selection, in ideal case of one of these 5 scenarios, will depend on concrete circumstances and the needs of decision makers:

The basic issue is that of degree of collection of compensations from parents

One of the factors affecting the selection of the scenario is also the amount of compensation paid by parents in different scenarios

At the same time it must be taken into account that degree of realization of compensations from parents has an opposite effect on the general level of compensations to be paid by the parents – the lower the rate of collection the higher the total compensation to be paid by parents.

Thank you for your attention!

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