PROGRAM INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: AB6991 Operation Name FAST TRACK INITIATIVE GRANT III FOR BASIC EDUCATION Region AFRICA Country Burkina Faso Sector Primary education (35%); Secondary education (35%); Public administration- Education (10%); Pre-primary education (10%); Adult literacy/non-formal education (10%) Operation ID P127166 Lending Instrument Programmatic Development Policy Grant Borrower(s) BURKINA FASO Implementing Agency Contact: Ministry of Economy and Finance of Burkina Faso Title: Minister of Economy and Finance of Burkina Faso 01 BP 7008 Ouagadougou 01 Phone: +(226) 50 32 42 11 Fax: +(226) 50 31 27 15 Email: Dg.coop@finances.gov.bf Date PID Prepared December 22, 2011, Estimated Date of December 20, 2011 Appraisal Estimated Date of Board March 9, 2012 (RVP) Approval Corporate Review Following the corporate review on December 6, 2011, the decision Decision was made to proceed with the preparation of the operation. I. COUNTRY AND SECTOR CONTEXT 1. During February and June 2011, wide spread demonstrations ended in frequent incidents of looting. Popular dissatisfaction was sparked by rising fuel and food prices, limited political debate, perceived corruption, abuse of procurement processes and mistrust in the justice system. The Consultative Council established to promote dialogue with civil society has produced recommendations, which the President has promised to use as a basis for deepening reforms. In 2010, economic growth accelerated to 7.9 percent, up from 3.2 percent in 2009. Growth is projected at 5.8 percent in 2011. The large share of growth in 2010 was accounted for by industry, in particular gold mining. The overall fiscal deficit is projected at about 4 percent of GDP in 2011. A preliminary assessment shows that the impact of measures enacted in response to civil unrest will be marginal. Budget transparency has improved over the years and the system was graded A, both in 2007 and 2010 by the Bank. The allocations in the MTEF have been in line with the PRSP priorities and the government devotes a large share of the discretionary budget to priority sectors. The MTEF also allows Burkina Faso to be responsive to changing fortunes. In 2011, the current account deficit (excluding grants) was 11.2 percent. While the country has solid performance from cotton and gold exports, rises in global oil prices and higher non-oil imports used for investment purposes have led to deterioration in the trade balance. The inflation rate increased to 2.8 percent in 2011 partly due to spillover effects from the Ivorian crisis, increased global food and fuel prices, and supply disruptions from the social unrest. About 44% of the population is poor partly due to the enclave nature of the mining industry. There has been some improvement in poverty over the years due to higher agricultural production. Expected economic growth in 2011 remains positive, but challenges remain. The medium-term macroeconomic prospects are positive. Based on the assessment the macro-economic framework is considered adequate to support this operation. 2. Education and training is one of the key priorities in the government’s development program. The proposed Third Basic Education Program Support Grant (BEPSG 3), the third and last in a series of three Development Policy Grants financed by the Global Partnership for Education Fund, aims to support Burkina Faso sustain and deepen its continued reforms in the education and training sector started under the Ten-Year Basic Education Development Program (PDDEB). The first grant in the amount of US$ 22 million was approved on June 29, 2009. The second for US$ 45 million was approved on March 24, 2011. The proposed third grant for US$ 35 million will largely complete the reforms implemented in the first two operations. 3. The education system in Burkina Faso has shown signs of rapid development in the recent past but is weak compared to other SSA countries. Enrollment has increased recently but regional and gender inequities to access remain, quality is low and the management system is inadequate to meet the needs partly due to a centralized management structure. Access and quality to secondary and tertiary education is also limited and graduates of the system often do not have the profiles needed in the labor market. In partnership with donors involved in the sector, the Government has been addressing these issues through the PDDEB since 2002, and substantial success has been achieved over the period. The gross enrollment rate increased from 42.7% in 2002 to 77.6% in 2010. The quality of education also improved. Management of the system was strengthened partly through increased decentralization. Nevertheless, inefficient utilization of resources, such as teachers, continues to be of concern. The government is increasing its efforts to expand girls’ participation in the system and to promote private provision of education especially post-primary and secondary education. 4. The first phase support to the Government’s PDDEB I (2002-2007) also enabled the Ministry of Basic Education (MEBA) to strengthen harmonization among development partners in the sector. An external evaluation of the implementation of the 2000 – 2007 sector plans was positive and formed the basis for the 2007 Education Law and a national consensus on priority areas in the sector for the period 2008 to 2015. The PDDEB II (2008-2011) introduced further reforms for the development of basic education focusing on quality and improving management of the sector. Achieving these qualitative and quantitative objectives require reforms in the administrative, fiduciary and pedagogical management of the system to optimize utilization of resources. Implementation of the reform program in BEPSG 1- 3 is helping achieve the objectives of PDDEB II. II. DEVELOPMENT OBJECTIVES 5. The BEPSG-1-3 support the Government’s Ten-Year Basic Education Sector Program which aims to (i) Improve access and equity in basic education; (ii) Improve quality, efficiency, and relevance of basic education, including technical education and vocational and (iii) Strengthen sector management including administrative, fiduciary and pedagogic management. Specifically BEPSG 1-3 will help introduce the following key policy and institutional reforms to complement investments and other measures being carried out to implement the sector plan: (i) launching multi-grade teaching; (ii) including the COGES in the decentralization structure; (iii) launching a new distance education program for training secondary level student teachers in math and science; (iv) increasing the actual number of teaching hours in basic education; (v) launching a system for the utilization of the results of 2 student assessment to improve student learning; (vi) introducing a system for dual apprenticeship training in technical education and vocational training and (vii) including school health, nutrition and HIV and AIDS in the senior secondary school curricula. Measures (i) and (ii) are expected to increase access to primary education while measures (iii), (iv) and (v) are aimed at improving quality in both primary and secondary education. Measure (vi) will help better prepare students for the labor market and Measure (vii) will help raise awareness and teach provide skills in healthy living and methods for combating HIV/AIDS. The overall impact would be to help raise the educational level of the population to support equitable economic growth and social development. III. RATIONAL FOR BANK INVOLVEMENT 6. Despite progress in implementing its development agenda, Burkina Faso continues to rank towards the bottom of the Human Development Index and the country is unlikely to reach several Millennium Development Goals by 2015. The country maintains a comparatively low ranking of 181 out of 187 countries in the UNDP Human Development Index for 2011. While Burkina Faso is on track to reach the MDG targets for access to potable water and reduced HIV prevalence, significant challenges exist with respect to attaining the rest of the targets including those in the education sector. 7. In education, the literacy rate was only 28.7% in 2007 and the quality of education has remained low. Further development of the education sector will not only help raise the level of education of the population in the medium and long term but will have positive impact on the health indicators through changes in behavior. Better educated parents, especially women, in addition to demanding higher levels of education for their children also adopt better health, sanitation and nutrition practices. However, the worsening global financial situation is likely to have a negative impact on Burkina’s progress towards attaining the MDG’s. 8. To address these issues, the Government and Partners formally requested the Bank to lead the effort to put in place an education sector reform program financed by GPEF, including acting as the supervising agency for the utilization of the funds. This is a key role for the Bank since these funds are essential to help consolidate the gains achieved in the first phase implementation of the Ten-Year Basic Education Program and also to deepen the reforms that would permit achievement of the MDGs in the education sector. Significant progress has been made in the implementation of the reform actions undertaken in BEPSG 1 and 2 especially in introduction of multi-grade and complete schools, reform of training of science and math teachers for secondary schools, measures to increase time on task, development of a system for assessment of student learning and development of dual training programs. Between 2008/09 to 2010/11, the enrollment rate increased from 72.4% to 77.6%, and girls’ enrollment rate from 67.7% to 75.0%, much higher increase than for boys. Time on task in primary education has increased from 574 or 57% of the total to 736 or 77% of the total. A learning assessment system that is used to improve learning is in place and dual apprenticeship training has been introduced in 4 training centers. 9. The Bank’s support is particularly relevant given that IDA has always played a major role in the policy dialogue in the education sector in Burkina Faso, and until recently was the lead donor for the sector for the country. In this role the Bank has supported the GoBF in preparing analytical work for the education sector which have been the basis for policy dialogue and the education sector reform program. The GoBF and partners active in the education sector are fully committed to the program and the performance of the education sector has been satisfactory. 3 10. The sector program is part of the government’s poverty reduction strategy agreed by all partners and is consistent with the CAS. Allocations proposed in the program are also included in the MTEF, a key instrument in the implementation of the macro-economic program. IV. Tentative Financing Global Partnership for Education Fund: US$ 35 million Recipient: US$ $0.00 V. Tranches: This is a Single Tranche Operation. VI. INSTITUTIONAL AND IMPLEMENTATION ARRANGEMENTS The Ministry of Economy and Finance will be responsible for overall management of the Grant. The Permanent Secretariat which is responsible for the Monitoring the implementation of Basic Education Development Plan (SP-PDDEB) in the MENA will lead the Government’s technical team responsible for implementation of the policy reforms and institutional strengthening supported by BEPSG 1-3. This Secretariat works in close collaboration with representatives of the Ministries of Economy and Finance; Labor and Employment, Social Protection, National Education and Literacy; Secondary, Higher Education and Scientific Research; Decentralization and Public Administration as well as with representatives of teachers unions and parents associations. Implementation of the policy and institutional changes will be carried out by the respective departments of the ministries involved in the program. Implementation will be reviewed twice a year during the joint annual review of the PDDEB by the government and development partners. In addition, the impact of some of the reform measures such as those related to time on task and student assessment will be assessed during and after grant closure to determine next steps in the reform program. The impact of BEPSG 1 – 3 also be assessed a part of The Africa Program on Education Impact Evaluation. 11. VII. RISKS AND RISK MITIGATION Macroeconomic risk. The recent rebound in gold and cotton price has helped Burkina Faso recover from the global economic crisis. However, the country remains heavily exposed to swings in the terms- of-trade and weather-related shocks. The growing import demand consistent with economic activities and increasing oil prices, coupled with a deterioration of the terms of trade, could weaken the country’s external position. This could make it difficult for the government to make the necessary budgetary allocations to the education and training sector. The government has established a system jointly with partners for monitoring and protecting social sector expenditures even during periods of crisis. Also, effective implementation of growth-enhancing reforms and export diversification will help mitigate these risks. The macro-economic risks were heightened this year following the social unrest which threatened to disrupt public sector operations partly by diverting resources from essential current and development expenditures to security and emergency operations. However, based on assessments of the impact of these events the impact turned out to be minimal and future prospects are projected to be good. 12. 4 13. Education sector risks. Reforms related to multi-grade classes, abolition of biennial intake, enrollment and equity may trigger resistance. To mitigate these risks, the Government has undertaken a nationwide campaign to build consensus around these policies before they were introduced. The necessary support systems such as clear guidelines have been put in place to permit successful implementation of the multi-grade program. 14. Decentralization. The decentralization strategy raises significant challenges, including in the education sector. Officials at the center may resist the transfer of responsibilities to local Governments, while local Governments may lack resources and capacity to carry out their new responsibilities. To address this issue, the Government has adopted a participatory and gradual decentralization approach that includes establishing a framework for increased collaboration between the de-concentrated units and local government authorities as well as increased involvement of communities in the management of schools. The Government also plans to adopt a school-based approach that would bring significant benefits to schools in the short term while capacity for full devolution of the management system is being established. VIII. Poverty and Social Impacts and Environmental Aspects 15. Poverty and Social Aspects. The BEPSG 1-3 series is expected to have a significant positive direct impact on poverty reduction. First, the expansion of quality basic education targeting in particular rural areas will help increase individual and family incomes and economic growth by providing opportunities aimed at increasing productivity in the rural and urban economies. In addition, targeted interventions to increase the participation of disadvantaged groups, including girls in the education system, would help promote greater social cohesion and increased productivity of these groups. It will also help promote economic growth. Externalities from increased levels of education will help raise the standards of living of communities and disadvantaged groups. 16. Second, strengthening of the public financial management system is expected to enhance efficiency, transparency and accountability in the use of public resources. Such measures will increase the country’s absorptive capacity for external resources as it will enhance social service delivery, particularly for the poor. Both of these measures will help increase returns to investments in the education sector. 17. Third, the reforms related to decentralization/deconcentration including piloting initiatives for closer involvement of families and communities in the management of schools will help promote efficient use of resources and increased learning outcomes by building stronger community/school organizations that would work more effectively to improve the teaching/learning process. A significant byproduct from increased transfer of resources to communities would be higher incomes in those areas as a result of increased demand for local goods and services. These measures are expected to strengthen social accountability in the program. In addition, these operations are being implemented in parallel with the JICA financed Support to School Management Committees Project and the Community Monitoring for Better Health and Education Service Delivery Technical Assistance Grant both of which will help strengthen the capacity of communities to participate in implementation of programs. The freedom of information initiative is also being proactively implemented in Burkina Faso to promote greater social accountability. 18. Environmental Aspects. Results from the environmental team’s assessment of the government’s readiness to address environmental and social safeguard issues, conducted as part of the preparation of 2007 PRSC, revealed that Burkina Faso has the necessary regulations pertaining to environmental and social impacts assessment. In addition, the Grant Recipient is familiar with World Bank safeguards 5 policies and has shown reasonable capacity in implementing numerous bank-funded projects in nearly all sectors although in the past compliance with such regulations was somewhat weak. 19. Current practice is for internal environmental monitoring to be carried out for all sectoral programs across the country and this has been facilitated by the establishment and capacity strengthening of an environmental and Social Safeguard unit (Cellule Environnementale et Sociale). 20. As a result of the 2007 assessment of the country’s readiness to address safeguard issues, further institutional measures were taken that led to the creation in 2008, of the Bureau National des Evaluations Environmentales et du Development (BUNED), in accordance with articles 24 and 49, Decree 2008-8-22/PRES/PM/MECV. The BUNED, an autonomous entity of the Ministry of Environment, and its decentralized structure, have the mandate to review and clear program safeguard reports and ensure that they are disclosed at all designated areas in the country. Moreover, the BUNED is responsible to undertake external monitoring, to ensure that the implementation of programs and projects comply with national and donor, including World Bank, safeguards policies and procedures. IX. CONTACT POINT World Bank: Title: Senior Education Specialist Tel: 5354+6314 / +(226) 50.49.63.14 Fax: +(226) 50.49.06.30.64 Email: aouedraogo1@worldbank.org Location: Ouagadougou, Burkina Faso (IBRD) Recipient: Contact: Ministry of Economy and Finance of Burkina Faso Title: Minister of Economy and Finance of Burkina Faso 01 BP 7008 Ouagadougou 01 Phone: +(226) 50 32 42 11 Fax: +(226) 50 31 27 15 Email: Dg.coop@finances.gov.bf For More information Contact: The InfoShop etc The World Bank 1818 H Street, NW Washington, DC.20433 Telephone: (202)458-4500 Fax: (202) 522-1500 Web: http://www.worldbank.org/infoshop 6