0521946-Private eSector Cvr.qxd 4/28/05 4:29 PM Page 1 WORKING PAPER SERIES NO. 2004-13 The World Bank Human Development Sector Unit 1818 H Street, NW East Asia and the Pacific Region Washington, DC 20433 USA The World Bank Telephone: 202-473-1000 Facsimile: 202-477-6391 East Asia and Pacific Region Human Development Sector Unit http://www.worldbank.org Private Sector Involvement in Education A Review of World Bank Activities in East Asia and Pacific, 1996–2002 Elizabeth King Lynnette de la Cruz Perez Mario Taguiwalo with Yolanda Quitero July 2004 33811 Working Paper Series on Private Sector Involvement in Education: A Review of World Bank Activities in East Asia and Pacific 1996 – 2002 Paper No. 2004-13 Human Development Sector Unit East Asia and the Pacific Region The World Bank July 2004 Acronyms AAA – Analytical and Advisory Activities EASHD – East Asia and Pacific Human Development Unit ECD – Early Childhood Development ED – Executive Director ESW – Economic and Sector Works ICR – Implementation Completion Report IFC – International Finance Corporation PAD – Project Appraisal Document PER – Public Expenditure Review SAR – Staff Appraisal Report UNESCO – United Nations Educational, Scientific and Cultural Organization UNICEF – United Nations Children’s Fund Table of Contents Foreword ....................................................................................................................................... iii Acknowledgements ....................................................................................................................... iv 1. Introduction .............................................................................................................................. 1 1.1 Background........................................................................................................... 1 1.2 Purpose and Scope................................................................................................. 2 2. Issues and Private Sector Participation in Education........................................................... 2 2.1 Issues in the education sector in East Asia and Pacific Countries .............................. 2 2.2 Private sector participation in education in East Asia Pacific Countries ..................... 4 2.2.1 Private Provision ......................................................................................... 4 2.2.2 Private Financing ......................................................................................... 6 3. Review of World Bank Portfolio............................................................................................. 7 3.1 Methodology .......................................................................................................... 7 3.2 Findings.................................................................................................................. 7 3.2.1 Degree of private sector involvement ...................................................... 7 3.2.2 Trends over time ...................................................................................... 8 3.2.3 Characteristic by country ...................................................................... 10 3.2.4 Characteristics by sub-sector ................................................................ 11 3.2.5 Private sector involvement stated as objective ...................................... 11 3.2.6 Private sector engagement..................................................................... 12 3.2.7 Assessment of the private sector ............................................................ 12 3.2.8 Adequacy of private sector assessment.................................................. 13 3.2.9 Information on utilization of private sector ........................................... 13 3.2.10 Private expenditure................................................................................ 13 3.2.11 Reasons for private sector Involvement................................................. 13 3.2.12 What kind of activities is the private sector involved in? ..................... 16 3.2.13 What mechanisms are used to involve private sector actors? ............... 17 3.2.14 Is there any consultation with private actors?....................................... 18 3.2.15 Are any costs financed by the private sector? ....................................... 18 3.2.16 Indicators to measure the impact of private sector involvement ........... 18 4. Conclusions and Recommendations ..................................................................................... 19 4.1 Conclusions.......................................................................................................... 19 4.2 Recommendations................................................................................................ 21 Annex 1: Reviewed Projects ...................................................................................................... 24 Annex 2: Worksheet of Findings................................................................................................ 30 Annex 3: Template for Data Collection..................................................................................... 39 Annex 4: Ratings of AAAs and projects for each country...................................................... 43 References .................................................................................................................................... 44 List of Tables Table 1: Basic Socio-Economic and Educational Indicators in Countries in the Region ..............3 Table 2: Percentage of students enrolled in Private Schools by Level of Education .....................4 Table 3: Private Financing as a Share of the Total Expenditure (%) .............................................7 Table 4: Type and Enrollment Share in Private Schools..............................................................10 Table 5: Activities in which the Private Sector is Involved .........................................................16 Table 6: Mechanisms Used to Involve Private Sector..................................................................17 List of Figures Figure 1: Degree of Private Sector Involvement by Type of Activity .........................................8 Figure 2: Proportion of the Total Number of Projects that Involve Private Sector by Year ........9 Figure 3: Education Lending: Overall and Including the Sector, by Year and Amount ..............9 Figure 4: Private Involvement by Level of Education ...............................................................11 Figure 5: Explicit Statement of Private Sector Involvement as a Part of Objective...................12 Figure 6: Private Sector Engaged Component ...........................................................................12 Figure 7: Assessment of Private Sector......................................................................................12 Figure 8: Adequacy of Assessment on Private Sector................................................................13 Figure 9: Information on Private Provider .................................................................................13 Figure 10: Information on Private Expenditure............................................................................14 Figure 11: Reason for Private Sector Involvement/Non-Involvement .........................................14 Figure 12: Consultation with Private Sector ................................................................................19 Figure 13: Indicators to Measure the Impact of Private Sector Involvement...............................19 List of Boxes Box 1: IFC’s Support to Private Sector in Education in the EAP Region ...................................1 Box 2: Main Findings from Sector Work ..................................................................................20 Box 3: Korea Sector Program on Higher Technical Education (1980) .....................................22 Box 4: Selected Examples of Private Public Partnerships in Education Projects......................23 ii Foreword The global market for education is large and growing, estimated by some to be worth more than $2 trillion. Employment in the education sector makes up about 5 percent of the total labor force in most countries. Household spending on education is considerable in many countries. Despite massive expansion of education supply in many years, there are still many children in low income countries without access, and large unmet demand for higher education in many countries. Yet, the returns to education remain relatively high, and in the case of middle income countries are increasing. In order to improve the delivery and expand access to education, a number of projects financed by the World Bank include efforts to increase the participation of the private sector in the education system. These projects aim to: respond to excess demand; improve the quality of privately provided educational services; increase private sector access to public funding; promote teacher training for primary and secondary education; and support system wide capacity building at tertiary and vocational levels. The private sector is a significant education service in most, if not all, countries of the East Asia and Pacific region. In most of these countries, the poor use the private sector. Traditionally, World Bank education projects and analytical work has primarily focused on the role and reform of public sector actors and entities. However, the approach to education sector analysis and project development takes into account the role of the private sector. Projects include initiatives to improve the contribution of the private sector through, for example, contracting with private providers. It is clear that leverage is being used over policymakers to guide the formation of better public policy toward the private education sector, as a means of achieving improvements in outcomes. What is not clear is what, specifically, we are doing? Or if we are approaching policy toward the private sector as systematically as we do the more traditional, and familiar areas of health policy. It is hoped this review of education projects and sector work will shed some light on the matter, but more important, that it will spur further action. Emmanuel Jimenez Sector Director, Human Development East Asia and the Pacific World Bank iii Acknowledgements This paper was written by Harry Anthony Patrinos and Naoki Umemiya, with support from Robert Krech, and under the guidance and supervision of Emmanuel Y. Jimenez and Christopher J. Thomas. The authors acknowledge the useful comments and information received from Ernesto P. Cuadra, Halsey Beemer, Dingyoung Hou, Peter Moock, Liping Xiao, Eduardo Velez, and Elizabeth King (World Bank) and Tanya Scobie (International Finance Corporation). Administrative assistance was provided by Chandra Chakravarthi. iv Private Sector Involvement in Education 1 1. Introduction be with respect to non-public providers. The experience varies from aggressive partnerships to benign neglect to stultifying 1.1 Background restrictions. Many are looking for ways to leverage the non-government sector to Non-government providers play an achieve public policy goals – such as important role in many countries in East Education for All or Life Long Learning. Asia. In the Philippines and Korea, the share of enrolment in non-government The East Asia Human Development primary and secondary schools exceeds one- Unit (EASHD) has a wide range of activities third and in tertiary two-thirds. In countries in education, including nine new projects where the share is still relatively small, the under preparation, 26 under supervision and growth of non-government alternatives is an array of non-lending services (see Box 1 dramatic. In Vietnam, China, Lao PDR and for a description of IFC activities in Cambodia, reports from the government, education in the region). There is a need to media and informed observers indicate that harvest this rich diversity of experiences to formal and informal private providers are determine whether, in the case of lending growing very rapidly. In terms of financing, activities, to what extent they are affecting one-half of all spending is done outside of the private financing and provision of the public budget. education already; whether there have been some missed opportunities; and what more As the demands increase to improve can be done in the future. In the case of access and quality of education in the non-lending services, there will be similar region, particularly for the poorest questions – on whether private sector households, governments are grappling with activities have been taken into account and, options and many are now asking what if not, whether there have been any should the appropriate stance of government repercussions in terms of quality or access. Box 1: IFC’s Support to Private Sector in Education in the EAP Region There is only one education project in the EAP region, which was approved by IFC in 2001: RMIT Vietnam Project (Total project cost: $33.8 million; IFC participation: $7.5 million as of Board Approval). The project represents the first phase of RIUV, a university to be developed as a high-standard, multi-disciplinary international university that will become the leader in the Mekong Delta Region for tertiary education and vocational training. It is located in Ho Chi Minh City as a wholly owned subsidiary of RMIT University based in Melbourne, Australia. The five- year project is the first stage of the Sponsor's plan, and will be able to accommodate up to 4,150 full-time students upon completion. IFC and the Asian Development Bank provide a loan of US$7.5 million each on the same terms and conditions. Other activities of the IFC in the region have been through technical assistance. The IFC has supported Norton University in Cambodia for their development of quality management system and academic development. The IFC is also about to complete a study of the tertiary sector in China, and the South Pacific Development Facility supported a school development initiative in a private primary-secondary school in Samoa. 2 Private Sector Involvement in Education 1.2 Purpose and Scope regulatory and legal reforms, contracting out, etc.; and The purpose of the study is to review the lending activities and Analytical (4) Discuss the appropriate roles of the and Advisory Activities (AAAs) in EASHD public and private sectors, since 1996, including Economic and Sector distinguishing between finance and Work (ESW) and Public Expenditure provision. Reviews (PERs) 1/ in order to: A total of 55 lending and non-lending (1) Document how the private sector has operations were reviewed for the study (see been treated (many of the interactions Annex 1 for a listing of the projects and may be in sub-components of loans or Annex 2 for detailed findings). subsidiary activities); for example, is the size of the private sector 2. Issues and Private Sector documented? Are regulatory issues Participation in Education mentioned? Is the private sector taken into account when estimating total spending? Do learning assessments 2.1 Issues in the education sector in East discuss private sector performance? Asia and Pacific Countries Are public-private partnerships discussed? The countries in the East Asia Region have expanded their education systems (2) Assess whether the way it has been significantly in the past 10 years. Primary treated has led to policy options in the gross enrolment rate of all the countries in case of non-lending services; and in the region reached over 80 percent by the the case of lending operations have mid-1990s (see Table 1). However, there there been any interventions and how are many issues remaining in the education have they worked? Also, draw sector in the region. While these issues lessons for future activities; significantly differ across the countries, they face some common challenges in (3) Assess opportunities in the future educational development (World Bank where educational outcomes may be 1998a). These include: enhanced further by an explicit engagement with the private sector. (1) Access to primary education. There Examples might include public- are still large numbers of basic school private partnerships, school age children who are not enrolled. choice/vouchers, capitation funding The problem is worst in the poorest in the case of public support of nations of Southeast Asia – Cambodia private providers, student loans, and Lao PDR. But it is also significant in the poorer parts of 1/ In addition to ESWs on education in the relatively prosperous countries such as region, PERs were reviewed focusing on China and Indonesia. Those who sections on education, because most of them never enroll in school tend to be from extensively analyze the education sector and the most disadvantaged group: girls, make policy recommendations from a fiscal ethnic minorities, the poor and point of view. Other AAAs such as poverty working children. assessment and Country Economic Memorandum were not reviewed because the education sector analysis or policy recommendation for the education sector is not a main theme of these AAAs. Private Sector Involvement in Education 3 Table 1: Basic Socio-Economic and Educational Indicators in Countries in the Region GNP Population GER, NER, GER, NER, GER, per (thousands) Primary Primary Secondary Secondary Tertiary capita 2000 (%) (%) (%) 1995 (%) (%) 1997 1995 1995 1995 1996 Cambodia 300 120,212 126 78 27 -- 1 China 860 1,262,4 118 98 67 -- 6 60 Fiji 2470 811 -- 99 64 -- 13 Indonesia 1110 206,264 115 97 48 42 11 Kiribati 910 90 -- -- -- -- -- Lao PDR 400 5,279 109 69 26 18 3 Malaysia 4680 23,270 104 102 59 -- 11 Mongolia 390 2,398 88 80 59 57 17 Myanmar -- 47,749 121 -- 30 -- 6 PNG 940 5,130 80 -- 14 -- 3 Philippines 1220 76,626 114 101 78 60 35 Samoa 1150 172 102 97 63 45 5 Solomon 900 419 97 -- 17 -- -- Islands Thailand 2800 60,728 87 -- 54 -- 21 Tonga 1830 100 -- -- -- -- Vanuatu 1310 197 106 -- 20 -- -- Vietnam 320 78,523 114 91 47 -- 5 Source: World Bank 1999c; World Development Indicators Database. (2) Completion of primary cycle. (5) Resource mobilization and use. The Although the enrolment rate at the recent financial crisis in Asia primary level has increased, the highlights the need for a more completion rate of the primary cycle effective and efficient use of public still remains low. funds. Even governments which have generously funded education in the (3) Access to higher levels of education. past are looking for ways to improve Enrolment rates at the secondary and the impact of their spending. The tertiary levels remain low. challenge is to generate resources to Governments in the region are facing expand access to education and to enormous pressures from the business ensure that both public and private community and from families to resources are spent in an effective and expand the number of school places in efficient manner. secondary and tertiary education. (4) Quality and relevance. Low quality of education is a significant issue all countries are facing. The government also has to ensure that education is relevant to the needs of society and the labor market. 4 Private Sector Involvement in Education 2.2 Private sector participation in Vietnam has a long history of free education in East Asia Pacific education and central planning, which led to Countries a situation where education is almost entirely provided by the government. 2.2.1 Private Provision Therefore, the private sector traditionally played only a small role in the provision of The percentage of students enrolled education. However, recent years have seen in private schools varies significantly across a gradual change with an expansion of the countries in the region (see Table 2). In the private sector. As part of the restructuring Philippines and Indonesia, the private sector of the education system since 1989, the plays a significant role at all levels of government in Vietnam has implemented education. several reforms, including a reform to develop a “non-public” system of education Up until the late 1980s or early and training to parallel the public system in 1990s, education was the exclusive domain order to achieve its objective of increasing of the public sector, regarded as an educational coverage and changing important political instrument in most educational content so as to prepare workers former or currently socialist countries. to perform effectively in the labor market. However, although the private sector The Fourth Plenum of the Central remains small in these countries, it is of Committee of the Communist Party in 1992 increasing significance as the government reached several important decisions for the recognizes the importance of the private future development of education and sector and encourages its expansion through training in Vietnam. These included plans enabling legislation and financial incentives for the consolidation of public education, (World Bank and UNICEF 1996). encouragement of people-founded institutions at all levels, and the legalization of private institutions in pre-school education. Table 2: Percentage of Students Enrolled in Private Schools by Level of Education Pre-primary Primary Junior secondary Senior secondary Tertiary All levels Cambodia6 -- 0.7 1.1 2.1 19.5 0.9 China8 19.7 1.8 3.1 7.0 -- Indonesia1 99.6 17.0 41.0 53.0 65.6 -- Lao PDR7 13.4 2.5 1.1 0 0.0 -- 42.0 0.4 5.0 46.0 -- -- Malaysia4 Philippines5 53.0 7.2 24.1 73.8 -- -- Solomon Islands3 9.0 10.6 17.0 -- -- Thailand3 26.0 12.3 6.0 -- -- Timor Leste -- -- -- -- -- -- Vanuatu -- -- -- -- -- Vietnam2 41.0 1.0 5.0 25.0 -- -- Sources: Indonesia: World Bank 1998a; China: staff calculation based on data from Chinese Ministry of Education 2002. The figure for all levels do not count tertiary level; Vietnam: World Bank 1996; Thailand, Solomon Islands: World Bank 1999a; Malaysia: World Bank 2000 (for tertiary), World Bank 1999a (for other levels); Philippines: World Bank 1999a (for pre-primary), World Bank 2002 (for other levels); Cambodia: World Bank 1999b; Lao PDR: World Bank 1998b. Notes: 1. 1993/94 data; 2. 1996 data. Tertiary includes open universities; 3. 1997 data; 4. 1997 data; 5. 1995 data for pre-primary level. 1999/2000 data for the other levels; 6. 1997 data; 7. 1994/95 data; 8. 2002 data; -- data not available. Private Sector Involvement in Education 5 Non-public institutions still enroll teachers and principals who only teach 18 only a very limited number of students, hours per week (and get paid equivalently) though many “semi-public” institutions are in regular public schools. Indeed, a mixed-mode, with operating costs still significant number of private schools are heavily subsidized by government. At the operated and administered by the teachers' primary level, non-public enrollments are association (World Bank 1998b). still relatively rare. The fraction of students that attend semi-public or private schools is In Thailand, the government has slightly higher at junior and senior recognized the importance of private secondary level, but they still remain at 5 provision and has encouraged its expansion percent and 25 percent respectively. Non- through enabling legislation and financial public enrolments make up only a small part incentives. For example, various subsidy of enrollments in tertiary institutions. schemes have been initiated to encourage Vietnam’s two open universities, however, greater private participation in educational which started offering courses in 1994, provision. Despite such support, the share account for 15 percent of students in higher of private students has been falling recently education and enroll students on a semi- and the role of the private sector is relatively public basis (World Bank 1996, World Bank low by regional standards due to a control and UNICEF 1996). on tuition fees and the expansion of public schools in urban and rural areas. In Indonesia, the private sector has been heavily involved in providing In quantitative terms, the policy of education, particularly at the post-basic encouraging the private sector has been level, which brought about a rapid successful. The share of students enrolled in expansion of education. This is a result of a private institutions is 26 percent of students government strategy to restrict the at pre-primary, 12.3 percent at primary and expansion of public post-basic education 6 percent at secondary education in 1995. and rely on the private sector to respond to Most of these private students paid the full demand at this level, while focusing its costs of the educational services received. spending priorities on the lower levels of Many of them would not have been education. accommodated in the absence of a private education sector, or their enrollments would As a result, private education is a have been in public sector institutions and at relatively small share of primary education a much higher public cost (World Bank (17.0 percent of enrolment). Beyond the 1998i) primary level, however, the private sector plays a large role in education (Table 2); at In Malaysia, the private sector plays the junior secondary level it represents 40 an important role despite its short history. percent of total enrollment, and at the post- While its participation is relatively limited in basic level, private education is more than basic education, the private sector is most 50 percent of enrollment and has been active at the levels of pre-primary and growing over time. Private schools (primary tertiary, with the government pushing to senior secondary) are established and privatization of higher education operated mainly by: (a) local communities; institutions. In 1998, the government (b) the Association of Indonesian Teachers decided to incorporate five public (PGRI); and (c) Islamic groups. Other universities with respect to their groups such as Catholic organizations and management and system of governance. large enterprises have a smaller participation in numerical terms. Many private schools In China, private schools are not truly independent schools but exist disappeared after the Communist Party came as a second income source for public school to power in 1949. By the mid-1950s, all 6 Private Sector Involvement in Education private schools had been converted to than 3 percent of all students at the pre- publicly-owned, state-funded schools. For school through lower secondary level are several decades, education was the exclusive currently enrolled in private schools. domain of the public sector, and was Private schools are concentrated in a few regarded as an important political major urban areas, where demand for instrument. The opening up of the economy education is relatively high and where there saw a tentative comeback in private is a critical mass of higher income families education in the early 1980s and it has been (World Bank 2001d). strengthened through policies that recognize the role of the private sector (Arthur Until 1991, the state in Cambodia Andersen 2000). While the share of was the exclusive provider of education at students enrolled in private schools still all levels. Since 1991, there has been some remains very low at all levels of education, growth in the private sector in education. the government of China approved a law in Nevertheless, the private sector's role in the December 2002 which aims to promote the provision of education is still relatively development of private education in a small. Data indicate that, overall, less than 1 healthy manner and to safeguard the legal percent of students at all levels are enrolled rights and interests of private schools. in non-government schools (World Bank 1999a). The Philippines’ 1987 Constitution mandates the establishment and maintenance 2.2.2 Private Financing of a system of free public education in the elementary and secondary level, and also In most countries, primary ordains that the state should assign the education is officially free of charge. In highest budgetary priority to education. The some countries, official fees are demanded Philippine education system consists of a at post-primary levels. Some countries have broad-based basic education sub-sector that introduced a policy that permits public is largely provided by the public sector. The institutions to charge fees when government thus is the dominant provider of encountering a public budget constraint. For basic education: the public sector accounts example, the Vietnamese government has for over 90 percent of total enrolment at the set a policy that now permits public primary level. In contrast, the public sector institutions to charge fees at all levels of has traditionally been a relatively small education except at the primary level. player at the tertiary level. However, the national government has become Private financing as a share of the increasingly involved in direct provision of total education expenditure was found to be post-secondary vocational and higher fairly high in all the countries where data is education though the continuous creation of available, except for Malaysia and Thailand State Universities and Colleges (World (Table 3). Private financing covers official Bank 2002). or unofficial fees as well as other kinds of direct costs including uniforms, food, books, The private sector plays only a small stationery, and transport. role in Lao PDR. Presently, private schools operate at the basic education level. Less Private Sector Involvement in Education 7 Table 3: Private Financing as a Share of the Total Expenditure (%) Pre- Primary Junior Senior Tertiary All primary Secondary Secondary levels Cambodia6 -- -- -- -- -- 34 China5 45.4 44.2 43.2 44.2 Indonesia1 94.7 23.4 56.2 35.5 -- -- Lao PDR -- -- -- -- -- -- Malaysia4 -- 2.0 4.0 2.0 Philippines5 -- 40.3 55.5 42.7 Solomon -- -- -- -- -- -- Islands Thailand3 7.4 2.2 16.7 5.4 Timor Leste -- -- -- -- -- -- Vanuatu -- -- -- -- -- -- Vietnam2 59.6 47.9 58.5 62.0 18.6 43.1 Sources: Indonesia and Thailand: World Education Indicators, UNESCO; China, Philippines and Malaysia: EdStats, World Bank; Vietnam: World Bank 1996; Cambodia: World Bank 2003 Notes: 1. 2000 data; 2. 1996 data; 3. 1997 data; 4. 1992-93 data; 5. 1996 data; 6. 2002 data; -- data not available. 3. Review of World Bank Portfolio questionnaire lists key components looked for in the project documents. Annex 1 3.1 Methodology identifies the type of document that was consulted for each project. For some To obtain information for the study, projects, task team leaders were contacted in Project Appraisal Documents (PADs), Staff order to verify the findings and to generate Appraisal Reports (SARs), Memoranda and additional information and more detailed Recommendations of the President, illustrations of projects that engaged the Implementation Completion Reports (ICRs), private sector in the education provision and 2/ AAA products and other relevant sources financing. of information were consulted for fiscal years 1996-2002. To ensure a structured 3.2 Findings review of project components and activities, a questionnaire was developed and used for 3.2.1 Degree of private sector involvement the review (see Annex 3). The In order to gauge the degree of 2/ There were five projects whose ICRs were private sector involvement in project available at the time of the review (see activities, involvement was rated to be Annex 1). However, five of them did not “High”, “Low” or “Zero.” 3/ This admittedly involve the private sector and the ICR of the rather subjective rating was based on two other project with low private sector measures: (a) available budget information involvement – Indonesia Capacity Building for Human Resource Development Project – and narrative description in the project did not mention the impact of private sector documents; and (b) the degree of stated involvement, with the overall unsatisfactory project implementation result. Therefore, not much could be learned from these ICRs 3/ in terms of impact of private sector Subsequently, more variables are involvement at this time. considered. 8 Private Sector Involvement in Education intentions to encourage private sector private sector while the private sector was participation. engaged in project/sector components to a Private sector involvement was minor extent. Lastly, private sector rated as “High” if project documents clearly involvement was rated as “Zero” when the stated a strong intention to involve the private sector was not engaged in private sector and that the private sector was project/sector components at all whether an engaged in project/sector components to a assessment of the private sector had taken relatively high degree. Private sector place during project planning or involvement was rated as “Low” if there implementation. The findings are was no evidence of either substantial fund summarized by type of activity (AAA or allocation or stated intentions to involve the project) in Figure 1. Figure 1: Degree of Private Sector Involve ment by Type of Activity * numbe rs re pre nse nt actual numbe r of proje cts 100% 6 9 15 80% 8 Degree of 60% 17 High Involvement 9 40% 18 Low 23 20% 5 Zero 0% AAA Project T otal Type of Activity There are more AAA products that 3.2.2 Trends over time involve the private sector than lending projects. This could be for either one of, or The study also explored if private combination of, the following reasons: (1) it sector involvement is a recently emerging is difficult for lending projects to phenomenon. As illustrated in Figure 2, operationalize or support the policy which shows the percentages of the total recommendations of AAA products; and/or number of projects with private sector (2) AAA products are not referred to during involvement by year, we were not able to the preparation of lending projects. identify any clear trends. However, we could come up with a different result if we reviewed projects over a longer period or if we reviewed projects across regions to draw conclusions on any trends of private sector involvement in education projects. Private Sector Involvement in Education 9 Figure 2: Proportion of the Total Number of Projects that involve Private Sector by Year *numbe rs re pre se nt actual number of proje cts 100% 0 80% 6 2 3 4 2 4 6 60% Proportion 1 Zero 40% 2 3 2 1 3 Low 20% 4 2 3 3 2 1 High 1 0% 1996 1997 1998 1999 2000 2001 2002 Year Of the 55 projects and AAA that approximately 44 percent of lending, at products reviewed, 31 were identified as the most, has activities that impact the projects involving the private sector (56%). private sector, though the degree varies EASHD made loans in the total amount of across projects. As illustrated in Figure 3, $2,101.5 million for 32 lending projects in the proportion of the lending projects with education while 14 projects have involved private sector involvement was larger in the the private sector. These 14 projects earlier than in the later years. account for $862.6 million. This suggests Figure 3: Education Lending: Overall and Including the Sector, by Year and Amount 900 800 Lending Amount ($millions) 700 600 Total 500 400 Lending with Involvement 300 200 100 0 1996 1997 1998 1999 2000 2001 2002 Year 10 Private Sector Involvement in Education 3.2.3 Characteristic by country The study also explored if there is any relationship between the degree of The distribution of ratings for private sector participation and country type projects and AAAs for each country is also identified above and the degree of private examined (see Annex 4). 4/ Based on the sector participation in terms of: (1) private trends of the distribution, countries can be provision (measured by percentage of classified into three types: students enrolled in private school), and (2) private financing (measured by private (1) Type 1 countries: where all AAA financing as a share of total education products and projects are rated as expenditure). These are summarized in “Zero”; neither ESW nor projects Tables 2 and 3. We found the following involved the private sector. Only tendencies between the type and degree of Timor Leste falls into this category. private sector participation in terms of private provision: (2) Type 2 countries: where some AAA products are rated as “High” or “Low” (1) The Type 1 and Type 2 countries have while all the projects are rated as a low or medium enrolment share in “Zero”; some AAA products involved private schools (only Malaysia has a the private sector while no project medium enrolment share among involved the private sector. These them). include: Cambodia, China, Malaysia, (2) The Type 3 countries have a medium Lao PDR, and Thailand. or high enrolment share in private schools. (3) Type 3 countries: where both some AAA products and some projects are The findings are summarized in rated as “High” or “Low”; both some Table 4. AAA products and some projects involved the private sector. These include Indonesia, the Philippines, Vanuatu, and Vietnam. Table 4: Type and Enrolment Share in Private Schools Type Enrolment share in private schools Timor Leste 1 Low Malaysia 2 Medium Cambodia 2 Low Lao PDR 2 Low China 2 No data available Thailand 2 Low Vietnam 3 Medium Philippines 3 High Vanuatu 3 Medium Indonesia 3 High 4/ Mongolia is not included here because there is only one AAA product for Mongolia. Private Sector Involvement in Education 11 On the other hand, we did not find a products and projects at all different levels strong correlation between the type and of education do not show any particular degree of private sector participation in characteristics with mixed ratings (or single terms of private financing. rating in the case of ECD and non-formal education which have only one project) In summary, we found that AAA except for the tertiary level, where no ESW products and projects tend to involve the or project was rated as “High.” It is private sector in a country where private interesting to note that we did not find any participation in the education sector is high project with a “High” rating at the tertiary in terms of provision of education services. level where private sector participation is most active in terms of education service 3.2.4 Characteristics by sub-sector provision among different levels of education in most countries, as Table 2 Ratings by level of education were shows. also examined. As Figure 4 shows, ESW Figure 4: Private Involvement by Level of Education 10 9 8 7 6 Number of Projects 5 4 3 2 1 High 0 All/multi Low Technical & Vocational Basic Education Non-formal Tertiary ECD Zero Education Level of Education 3.2.5 Private sector involvement stated as proportion of the projects that involve the objective private sector as a part of components in the next section (56%), there are projects that As Figure 5 shows, for 47% of the involve the private sector without explicitly reviewed projects and AAA products, stating it as a part of the objectives or scope. private sector involvement is stated as a part The degree to which these projects involve of project objectives or explicitly included in the private sector tends to be low. the scope of a project. By comparison, the 12 Private Sector Involvement in Education Figure 5: Explicit State me nt of Private Se ctor Involve me nt as a Part of Obje ctive ? YES 47% NO 53% 3.2.6 Private sector engagement analytical work for AAA). It appears there is a strong correlation between private sector For 56% of the reviewed projects, involvement and whether an assessment took private sector involvement is stated as a part of place. Most of the projects that involved the the project objective or explicitly included in the private sector conducted an assessment of the scope of the project (see Figure 6). private sector in its preparation or analytical stage. There are only three projects that involved 3.2.7 Assessment of the private sector the private sector without conducting an assessment, and only two projects that As Figure 7 shows, for 65% of the projects, an conducted an assessment but decided not to assessment of the private sector took place involve the private sector. during project planning or implementation (or Figure 6: Private Sector Engaged Component Figure 7: Assessment of Private Sector NO 44% 35% 56% YES 65% Private Sector Involvement in Education 13 3.2.8 Adequacy of private sector 3.2.9 Information on utilization of private assessment sector As Figure 8 shows, 42% of the As Figure 9 shows, 56% of the projects are considered to have taken the project documents present information on private sector into account adequately given utilization of private providers/ producers. project/sector objectives and magnitude of It was found that there is a strong correlation the relevant private sector. It was found that between private sector involvement and there is a strong correlation between private presentation of the information; that is, most sector involvement and the extent to which a of the projects that involved the private project takes the private sector into account; sector present information on utilization of that is, most of the projects that involved the private providers/ producers. There are only private sector took the private sector into two projects that involved the private sector account in its preparation or analytical stage. without presenting information on utilization There are only two projects that involved the of private providers/ producers, and two private sector without adequately taking it projects that presented information on into consideration. utilization of private providers/ producers without involving the private sector. Figure 8: Adequcy of Assessment on Private Sector Figure 9: Information on Private Provider YES NO 42% 44% NO YES 58% 56% 3.2.10 Private expenditure 3.2.11 Reasons for private sector Involvement Only 31% of project documents present information on private expenditure, despite As Figure 11 shows, 62% of the the fact that 58% of the projects involve the project documents state the reason why the private sector (see Figure 10). This implies project decided to involve (or not to involve) that there are projects that involve the the private sector. It is interesting to note private sector without presenting that all project documents that provided information on private expenditure. In fact, adequate assessment of the private sector there are 14 projects that involve the private gave reasons why the project did or did not sector without presenting information on involve the private sector, while any project private expenditure. document that did not provide adequate assessment on the private sector also did not give reasons. 14 Private Sector Involvement in Education Figure 10: Information on Private Expenditure Figure 11: Reason for Private Sector Involvement/Non- involvement YES NO 31% 38% YES NO 62% 69% Projects and sector studies offer ¾ In the case of the Library Development various rationale for private sector Project in Indonesia, supporting involvement, as illustrated in the examples initiatives by a few dedicated people or below: institutions was the objective. The project emphasizes the long-term ¾ The study Education in Indonesia sustainability of existing grassroots (World Bank 1998b) recognizes the small libraries by working with relevance of government policy that communities, charities, and local private schools should preserve and government as well as the private sector even increase their share of total junior (World Bank 2001f). secondary enrollments. The rationale for maintaining a role for the private ¾ In the case of the Higher Education sector in the expansion of junior Project in Vietnam, the preparation team secondary education is three-fold: (1) argued that high private rates of return the costs of expansion have been to higher education in Vietnam provide estimated under alternative economic justification for supporting public/private scenarios and results strategies of cost-recovery and private indicate that if the government proceeds sector development in higher education with a primarily public expansion, the (World Bank 1998h). cost to achieve universal basic education almost doubles in comparison with the ¾ The study Thailand Education cost of the current public/private ratio of Achievements, Issues, and Policies 60/40; (2) a significant portion of (World Bank 1998i) justifies policies to private schools offer access to junior support the private sector based on the secondary education – particularly those fact that its share is already large and run by religious groups – to small, poor that the existence of private schools communities at a unit cost that is provides an element of competition to significantly lower than public schools, public schools and widens the choices of primarily because of lower teacher education opportunities. salaries; and (3) the private sector has often served as a generator or testing ground for new approaches. Private Sector Involvement in Education 15 ¾ The study Thailand Secondary would not rise to unsustainable levels Education for Employment (World Bank while there would be an important role 2001j) argues that the government for the government to play in supplying should de-regulate private schools so information on the availability and that they are more free to administer quality of private education. A Public their works for the following reasons. Expenditure Review in Malaysia (World First, private education has the potential Bank 2000b) also recommends to help raise quality by providing increasing public university fees, to competition with the public sector. foster the private education and to Second, if the government respects their establish a funding mechanism because self regulation, private schools can tertiary education has a high cost per manipulate resources so as to compete student and, arguably, has little better with public institutions. Third, externalities, plus being inequitable and the government should promote a unsustainable to finance it from public diversity of providers operating on a revenue. level playing field. Public Expenditure Reviews in Thailand suggests ¾ There are only four projects with no encouraging universities to move to private sector involvement that stated autonomous status, to create institutions explicitly why they decided not to that are more responsive to opportunities involve the private sector: the Indonesia for quality improvement and efficiency Secondary School Teacher Development gains, and achieve cost saving with cost Project, the Thailand Universities recovery. Science and Engineering Education Project, and the China Higher Education ¾ The study Out of School Children and Reform Project. Youth in the Philippines (World Bank 2002g) argues that several private sector ◊ The Indonesia Secondary School initiatives for out-of-school children and Teacher Development Project youth incorporate best practices, but considered that private institutes they have tended to be small scale, were far inferior to the quality levels localized efforts working in isolation. achieved by the public institutions, Therefore, considerable synergies can be thus to upgrade institutional had with additional funds along with the capability to the levels that would awareness and interest created by enable them to prepare teachers for government and the business sector. the expanded nine-year basic education would require financial, ¾ Several sector studies suggest a greater technical, and development time degree of cost recovery. One of the investments unacceptable to the main policy recommendations of the government which aims at reaching Vietnam Education Financing Study their expansion targets in 10-15 (World Bank 196l) is higher cost years. Therefore, it decided to recovery at tertiary level. The study of target public institutions (World Thailand Education Achievements, Bank 1996g). Issues, and Policies (World Bank 1998i) and Policies and Public Expenditure ◊ The preparation team of the Review in Thailand (World Bank 2000f) Indonesia Higher Education Support recommend that the government should Project conducted comprehensive abolish the ceiling on fees to private analysis of the private sector schools which do not meet the needs involvement in the education sector criteria for subsidies. It argues that and concluded that the private sector market forces would ensure that fees played a very important role in 16 Private Sector Involvement in Education higher education in the country. state policy did not permit on- However, it decided to target six of lending to non-government the less-established public institutions during repayment of a universities, pointing out that the Bank credit/loan. Second, the team other on-going project in the sector recognized that quality of public allow private institutions to compete higher education is superior to that for funds (World Bank 1996f). of private schools and judged that centralized control of higher ◊ The preparation team of the education would continue for some Thailand Universities Science and time yet (World Bank 1999g). Engineering Education Project acknowledged that the private 3.2.12 What kind of activities is the university sector played an private sector involved in? important role in Thailand but decided to target only public As Table 5 illustrates, 5/ the major activity universities based on the fact that that the private sector undertakes with the government had recently project support is service provision. Several introduced a large amount of loan projects provide training to teachers in funding with subsidized interest private schools. Other activities include rates to support the expansion of support to develop private libraries, private institutions (World Bank utilization of Global Development Learning 1997d). Centers by the private sector, and private sector participation in introducing new ◊ The China Higher Education technologies to higher education and to out- Reform Project decided to focus on of school children. public schools, first of all, because Table 5: Activities in which the Private Sector is Involved Type of Activity Number of Projects Building and maintenance 1 Social marketing 1 Communication 0 Distribution of books, supplies, etc. 2 Service provision 25 Training 3 Other 4 Total 36 5/ It is important to note that the private sector is involved in multiple activities in some projects. Private Sector Involvement in Education 17 3.2.13 What mechanisms are used to adjustment lending programs. It is involve private sector actors? interesting to note here that while major mechanisms used in the projects are grants As Table 6 illustrates, a variety of and training, major mechanisms mechanisms have been used to involve the recommended by sector works are cost private sector. 6/ It was found that recovery and regulations, which none of the recommendations by the ESWs include a lending projects used. These findings lead wider variety of mechanisms to involve the to the following recommendations: private sector than lending projects. This could be for either one of the following (1) Explore ways to support different reasons: (1) ways to support other mechanisms through lending projects. mechanisms through lending projects have Successful examples from the Bank’s not been explored fully well; or (2) it is just experience across regions could help difficult to support some of the mechanisms this process. with lending projects. For example, cost recovery and regulations in general are (2) Explore ways to extend support with difficult to support with lending projects, adjustment lending to those whereas they seem to be better supported by mechanisms which are difficult to support with lending projects. Table 6: Mechanisms Used to Involve Private Sector Number of Projects Type of Mechanisms Projects AAAs Total Assessment of private sector 0 2 2 Vouchers 0 1 1 Scholarships 3 2 5 Contracting 0 1 1 Franchising 0 0 0 Grants 6 3 9 Non-financial incentives 0 0 0 Public/private partnerships 3 2 5 Regulatory instruments 0 11 11 Training 0 6 6 Self-regulatory enhancement 0 1 1 Learning Assessments 0 0 0 Cost Recovery 0 7 7 Other 1 2 3 Total 13 38 51 6/ It is important to note that several projects used multiple mechanisms, at the same time, to involve the private sector. 18 Private Sector Involvement in Education Major mechanisms that are used in 2001j) suggests that the government should the projects are briefly described as follows: deregulate private schools so that they are In Indonesia, while private junior secondary more free to administer their works schools are numerous, especially in the rural areas, they are often of poor quality and, Several Economic and Sector Works serving the poorest, many of them are under suggest a greater degree of cost recovery. funded. The two Basic Education Projects For example, one of the main policy in Sumatera, and in Sulawesi and Eastern recommendations of the Vietnam Education Islands provides matching grants to these Financing Study (World Bank 1996l) is a private schools on a proposal basis, which higher cost recovery at tertiary level. The they would use for needed quality study Thailand Education Achievements, improvements that could range from Issues, and Policies (World Bank 1998i) construction and rehabilitation, to hiring of recommends that the government should extra teachers, school materials, or abolish the ceiling on fees to private schools participation in teacher training programs. which do not meet the needs criteria for The projects also provide teacher up-grading subsidies. and certification to low qualified schools and teachers. 3.2.14 Is there any consultation with private actors? The three Junior Secondary Education Projects in East Java and East As shown in Figure 12, only 2% of Nusa Tenggara, Central Indonesia and project documents explicitly indicate that Sumatra also support private junior there has been consultation with the private secondary schools to improve their quality sector in the design of projects. However, and management by providing teacher in- there might have been consultation with the service training, teaching equipment and private sector in more projects, which are materials, references and library books, and not necessarily recorded in documents. management training for school principals. In addition to these supports, the project 3.2.15 Are any costs financed by the helps promising but poor students get access private sector? to junior secondary schools through the expansion and improvement of the existing It was found that there was no cost scholarship programs (World Bank 1996d, sharing by private sector actors in lending 1996e, 1996h). projects or in sector work. The study Training and the Labor 3.2.16 Indicators to measure the impact Market in Indonesia (World Bank 1997e) of private sector involvement suggests designing an appropriate institutional framework for in-service As shown in Figure 13, there are training in which schools and training only a few projects that have set clear centers design and provide training in indicators to measure private sector collaboration with private sector employers. involvement. This is limited to those It also suggests establishing a transparent projects that involved the private sector to a licensing and accreditation of institutions, high degree. Some projects set the increase and relying more on self-regulation under in student examination scores in private government guidelines. schools as a key performance indicator for the project objectives. The study Thailand Secondary Education for Employment (World Bank Private Sector Involvement in Education 19 Figure 12: Consultation with Private Sector Figure 13: Indicators to Measure the Impact of Private Sector Involvement YES 2% YES 11% NO NO 98% 89% 4. Conclusions and Recommendations The following trends in relationship between the type and degree of private sector participation in terms of private 4.1 Conclusions provision were documented: More AAA products involve the ¾ Countries where no sector work or private sector – either in terms of analysis or lending operations involved the private participation or both – than do lending sector (Type 1), and countries where projects. This indicates a disconnect some sector work involved the private between analytical work (and policy advice) sector while no lending operation did and lending operations (see Box 2 for the (Type 2), have low or medium (only main lessons from sector work). It was also Malaysia) enrolment shares in private found that recommendations in sector schools. These include: Timor Leste, studies included a wider variety of Malaysia, Cambodia, Lao PDR, China mechanisms to involve the private sector and Thailand. than lending projects. This could be explained by either one of, or combination ¾ Countries where both sector work and of, the following: (1) it is difficult to lending operations involve the private operationalize or support AAA policy sector (Type 3) have medium or high recommendations in lending; and/or, (2) enrolment shares in private schools. AAA products are not referred to during the These include Vietnam, the Philippines, preparation of lending projects. Whatever Vanuatu and Indonesia. the actual reason, if there are sound reasons for including the private sector in A strong correlation between the operations, then more needs to be done to country type and degree of private sector make this happen. There are only three participation in terms of private financing projects that provided reasons why they was not found. The most often encountered decided not to involve the private sector. If activity for private sector involvement was there are clear reasons for not including the service provision at different levels of private sector, then this should be clearly education. The most frequently used discussed in the rationale of the lending mechanisms include grants to schools and operation. individuals, and regulatory instruments. 20 Private Sector Involvement in Education Box 2: Main Findings from Sector Work The private sector plays a key role in many countries in the region as a provider of education. Many governments have introduced policies which have led to the expansion of the private sector. The expansion of the private sector has contributed to increased enrolments by providing access to a larger segment of the population. In some countries, expansion of the private sector at higher levels of education has not only increased enrolments at that level, but also contributed indirectly to increasing access at lower levels of education. In Indonesia, the private sector has been playing a significant role, especially at the post-basic education level. This has enabled the government to focus its spending priorities on the lower levels of education in order to achieve quality universal basic education, which requires a significant amount of public resources (World Bank 1998b). It should be noted that Korea went through similar experiences, partly with World Bank support, which contributed to the expansion of private higher technical schools and freed up public resources to be used as additional expenditure for lower levels of education. While the private sector has been more active than before in many countries, some countries have seen a decline in private enrollment shares, such as Thailand and the Philippines. Sector work on these countries analyzing the causes of this decline document that in Thailand, despite the government’s effort to encourage private schools through budget contributions, tax incentives and subsidies, the share of private students decreased due to: (1) over-regulation, including controls on tuition fees, and (2) the expansion of public schools in urban and rural areas (World bank 2000f). The Philippines has also seen the decline at post-primary level mainly due to the rapid increases in public secondary schools and state universities (World Bank 1998e). This suggests that public policy both on public schools and private schools have a significant influence on the activities of the private sector while many governments have been trying hard to come up with more effective and more efficient policies. Even in countries where the government’s pro-active policies to encourage private sector participation has successfully expanded the sector, there still remain issues to be addressed. In Indonesia, maintaining the role of the private sector raises the issue of the quality of the majority of private schools and whether the current structure of public subsidy to private schools is conducive to improved quality. The subsidy in the form of secondment of teachers is prone to abuse and leads to adverse effects, such as teachers being seconded to the better private schools in the wealthier provinces while grants are more successful in reaching the needier schools and provinces (World Bank 1998b). Therefore, the sector work suggests that the government should change the way it supports private schools by expanding the grant schemes rather than subsidy in the form of secondment of teachers. It also argues that government support should be conditional upon improvements in quality within a specified period of time. In the Philippines, the private sector also spans a wide range in terms of quality. Therefore, many countries, even where the private sector has expanded rapidly with government support, are still exploring more effective and efficient ways to encourage private sector participation while assuring the quality of private education. The government should also play an important role in providing information on private schools to the public, which most governments have not sufficiently extended. Informed choices require the availability of relevant information. The government should provide information on schools and programs, as well as the employment and earning experiences of graduates. This is useful not only to students and parents for choosing among educational options, but also to institutions as they improve their programs. The private sector also plays an important role in terms of financing in many countries in the region. Many governments have adopted policies to introduce tuition fees especially at the tertiary level. In addition, informal charges and incidental costs exist, which must be met by individuals at all levels including primary. The net result is that Vietnam, for example, has reached a high level of cost recovery in education: private financing is estimated to be above 40 percent of the total direct costs of education (World Bank 1996l). Private financing has a different impact on different income groups. In general, lower income groups face a larger burden in sending children to school than do higher income groups. This trend is inclined to grow as the level of education goes up. Therefore, many sector studies argue that a cost-recovery policy should be introduced with a complementary policy to support the poor, for example, using scholarship programs and/or student loan programs. Private Sector Involvement in Education 21 It was confirmed that private ownership, or a combination. Many enrollment shares in a country and whether governments today concede that greater the activity is a project or not were the most significant factors associated with private involvement can improve involvement of the private sector. Statistical performance of their social sectors. In the analysis confirms that there is a significant case of the East Asia and Pacific Region, and negative relationship between more could be done to involve the private participation of the private sector and sector in ways that can improve outcomes whether the activity is a project. That is, it overall and lead to greater efficiencies and is unlikely that a project will include the equity. private sector; and it is more likely that AAA will involve the private sector. The first priority for the Region is to assess the disconnect between AAA products and lending projects. More can be 4.2 Recommendations done to follow up on the recommendations in Economic and Sector Works, exploring In order to improve the delivery and ways to support recommended mechanisms expand access to education, greater for utilizing the private sector, either by involvement of the private sector (including lending projects or adjustment loans, and not-for-profit organizations) in the Region’s drawing on successful experiences of the operations could help address the following Bank across regions. If there are reasons for problems: excess demand, low quality of not moving forward on ESW objectives, services, inadequate funding, and capacity- then the rationale for the lending operations building efforts at the post-basic education should be more explicit. levels. There are still large numbers of primary school age children who are not Second, a better understanding of enrolled. The problem is worse in the the current and potential role of the private poorest nations of Southeast Asia – sector in education, as well as public policy Cambodia and Lao PDR. But it is also in client countries, is needed. This can be significant in the poorer parts of relatively accomplished through more focused analysis prosperous countries, such as China and in future sector work. Indonesia. Although the enrolment rate at the primary level has increased, the Examples of creative and innovative completion rate for the primary cycle still use of the private sector in education lending remains low. Those who never enroll in operations should be better disseminated to school tend to be from the most task teams. This should begin with the disadvantaged group: girls, ethnic projects such as those in Indonesia that minorities, the poor, and working children. make good use of the existing private sector, The involvement of the private sector in or past projects in Korea (see Box 3) that education does not necessarily imply the used the projects to finance post-basic outright sale of public assets to the private education and release public resources that sector, but includes initiatives that allow were targeted for universalizing basic greater private participation – including not- education. In addition, there are a number for-profit and non-government providers. of operations in other Regions that could be These initiatives can take the form of private studied for adaptation in the East Asia and financing, private management, private Pacific region. 22 Private Sector Involvement in Education Box 3: Korea Sector Program on Higher Technical Education (1980) The Korea Sector Program on Higher Technical Education was the Bank’s first education sector loan to Korea. The actual project cost amounted to $627 million, consisting of the Government’s share of $243 million, a contribution from the private sector of $284 million, and a Bank loan of $100 million. The program objectives were: to create a flexible system of supplying technical skills, to remove principal constraints on quality improvement, and to reduce the projected investment gap at selected public and private technical training institutions. Private institutions comprised about 75% of the higher technical education sector, but its expansion was constrained due to lack of resources. The investment gap was estimated at US$400 million in 1979. In order to bridge the investment gap, the project supported the Korean government’s efforts to: (1) provide grants for staff upgrading; (2) offer loans on favorable terms for lab equipment and construction of facilities; (3) provide matching funds to stimulate industry investments; and (4) study the feasibility of increasing revenues to private institutions through allowing fee increases and student loans. In its support, the government on-lent funds to the private institutions as well as the public institutions. The project had a major positive impact on expansion and improved quality at both public and private institutions, and on creating a lower starting capital base of private institutions. The expansion of the private sector in higher technical education partly contributed to a budget cut for the sub-sector, which enabled the government to invest a larger portion of its public fund on basic education. Source: World Bank 1980, 1988 Other types of interventions that ¾ Individual learning accounts and have worked well in other countries that education savings accounts (Brazil). could be tried in the region include (see Box 4 below): ¾ Regulatory reforms to level the playing field in higher education, to encourage ¾ Formula funding and competitive private investment in R&D, and to ease funding mechanisms in basic education restrictions to new private providers at (including scholarship/voucher schemes, the basic education level. As enrolment contract schools, school choice) rates at the secondary and tertiary levels (Bangladesh). remain low, governments in the region are facing enormous pressures from the ¾ Formula funding and innovative student business community and from families credit programs (private sector loan to expand the number of school places programs, income contingent loan in secondary and tertiary education schemes, human capital contracts) (Chile). (Mexico). Private Sector Involvement in Education 23 Governments in East Asia, even spending. The challenge is to generate those which have generously funded resources to expand access to education and education in the past, are looking for new to ensure that both public and private ways to improve the impact of their resources are spent in an effective and efficient manner. Box 4: Selected Examples of Private Public Partnerships in Education Projects Mechanism Country Examples Stipend/scholarship Bangladesh, Guatemala, Mozambique Community financing Chad, El Salvador, Pakistan Targeted bursaries Mexico, Tanzania Vouchers Colombia, Côte d'Ivoire, Kenya Public subsidies to private schools Belize, Lesotho Student loans Jamaica, Mexico Community grants Bangladesh, Brazil, Pakistan Matching grants India, Tanzania Source: Vawda 2000 24 Private Sector Involvement in Education Annex 1: Reviewed Projects No. Country Project Name Year Document Lending Poverty Key Sub- Enrolment in Private Enrolment Private Reviewed Amount Intervention sector private expenditure in private expenditure (US$million) schools (%) (%) in sub- in sub- sector (%) sector (%) 1 Vietnam ESW: Education Financing 1996 Report N.R. N.R. All/Multi 41(pre), 1(p), 43.1 N.R. N.R. 5(js), 25(ss), 15(t) Study 2 Vietnam PER: Public Expenditure 2000 Report N.R. N.R. All/Multi 43.1 N.R. N.R. Review 3 Vietnam Higher Education Project 1998 PAD N.A. Tertiary 43.1 15 19 83.3 4 Vietnam Primary Teacher Development 2001 PAD N.A. Basic 43.1 41(pre), 50 19.8 1(p), 5(js) 5 China ESW: Higher education reform 1996 Report N.R. N.R. Tertiary 19.7(pre), 44.2 N.A. 18 1.8(p), 3.1(js), 6 China ESW: Strategic goals for 1999 Report N.R. N.R. All/Multi 7.0(ss) 44.2 N.R. N.R. Chinese education in the 21st century 7 China ESW: China and Knowledge 2001 Report N.R. N.R. Tertiary 44.2 N.A. 18 Economy 8 China PER: Managing Public 2000 Report N.R. N.R. All/multi 44.2 N.R. 18 Expenditures for Better Results 9 China Third Basic Education Project 1996 SAR, ICR 100.0 YES Basic 44.2 19.7(pre), 25 1.8(p), 3.1(js) 10 China Vocational Education Reform 1996 SAR, ICR 30.0 NO Tech/Voc 44.2 N.A. 47 Project 11 China Fourth Basic Education Project 1997 SAR 85.0 YES Basic 44.2 19.7(pre), 25 1.8(p), 3.1(js) 12 China Higher Education Reform 1999 PAD 70.0 NO Tertiary 44.2 N.A. 18 Project Private Sector Involvement in Education 25 No. Country Project Name Year Document Lending Poverty Key Sub- Enrolment in Private Enrolment Private Reviewed Amount Intervention sector private expenditure in private expenditure (US$million) schools (%) (%) in sub- in sub- sector (%) sector (%) 13 Thailand ESW: Education 1998 Report N.R. N.R. All/multi 26(pre), 5.4 N.R. N.R. achievements, issues, and 12.3(p), 6(s) policies 14 Thailand ESW: Secondary education for 2001 Report N.R. N.R. Tech/Voc 5.4 27 20 employment 15 Thailand PER: Public Finance Review 2000 Report N.R. N.R. All/multi 5.4 N.R. N.R. 16 Thailand Technical Education Project 1996 SAR, ICR 31.6 NO Tech/Voc 5.4 27 20 17 Thailand Second Secondary Education 1996 SAR 81.9 NO Basic 5.4 26(pre), 20 Quality Improvement 12.3(p), 6(s) 18 Thailand Universities Science and 1997 SAR NO Tertiary 5.4 N.A. 67.5 Engineering Education Project 143.4 19 Philippines ESW: Education for the 21st 1998 Report N.R. N.R. All/multi 53(pre), 7.2 42.7 N.R. N.R. Century (p), 24.1(s), 73.8(t) 20 Philippines ESW: Out of School Children 2002 Report N.R. N.R. All/multi 42.7 N.R. N.R. and Youth in the Philippines 21 Philippines PER: Public Expenditure, 2002 Report N.R. N.R. All/multi 42.7 N.R. N.R. Procurement and Financial Management Review 26 Private Sector Involvement in Education No. Country Project Name Year Document Lending Poverty Key Sub- Enrolment Private Enrolment Private Reviewed Amount Intervention sector In private expenditure in private expenditure (US$million) Schools (%) (%) in sub- in sub- sector (%) sector (%) 22 Philippines Third Elementary Education 1996 SAR YES Basic 42.7 53(pre), 7.2 31 Project (p), 24.1(s) 113.4 23 Philippines Social Expenditure 2000 PAD YES Basic 53(pre), 42.7 53(pre), 7.2 31 (p), 40.3 Management Project 7.2 (p), (p), 24.1(s) (p+s) 24.1(s), 100.0 73.8(t) 24 Philippines Second Social Expenditure 2002 PAD YES Basic 42.7 53(pre), 7.2 31 (p), 40.3 Management Project (p), 24.1(s) (p+s) 100.0 25 Indonesia ESW: Education in 1998 Report N.R. N.R. All/multi 99.6(pre), 17 35.5 N.R. N.R. Indonesia : from crisis to (p), 41 (ls), 53 recovery (us), 65.6(t) 26 Indonesia ESW: Training and the labor 1997 Report N.R. N.R. Tech/Voc 35.5 40 N.A. market in Indonesia 27 Indonesia PER: Public Expenditure 1998 Report N.R. N.R. All/multi 35.5 N.R. N.R. Review 28 Indonesia Secondary School Teacher 1996 SAR NO Tertiary 17 (p), 40 35.5 65.6 over 50 (t) Development Project 60.4 (LS), 58 (US), 29 Indonesia East Java and East Nusa 1996 SAR YES Basic 67(t) 35.5 99.6(pre), N.A. Tenggara Junior Secondary 17 (p), 41 Education Project 99.0 (ls) 30 Indonesia Central Indonesia Junior 1996 SAR YES Basic 35.5 99.6(pre), N.A. Secondary Education Project 17 (p), 41 104.0 (ls) 31 Indonesia Higher Education Support 1996 SAR, ICR NO Tertiary 35.5 65.6 over 50 Project 65.0 Private Sector Involvement in Education 27 No. Country Project Name Year Document Lending Poverty Key Sub- Enrolment Private Enrolment Private Reviewed Amount Intervention sector In private expenditure in private expenditure (US$million) Schools (%) (%) in sub- in sub- sector (%) sector (%) 32 Indonesia Sumatra Junior Secondary 1996 SAR YES Basic 35.5 99.6(pre), N.A. Education Project 17 (p), 41 98.0 (ls) 33 Indonesia Quality of Undergraduate 1997 PAD 71.2 N.A. Tertiary 35.5 65.6 over 50 Education Project 34 Indonesia Capacity Building for Human 1997 Memorandum 20.0 NO All/multi 35.5 N.R. N.R. Resource Development to Eds, ICR Project 35 Indonesia West Java Basic Education 1998 PAD 103.5 YES Basic 35.5 99.6(pre), 18.2 Project 17 (p), 41 (ls) 36 Indonesia Early Child Development 1998 PAD YES ECD 99.6 N.A. Project 21.5 35.5 37 Indonesia Sumatera Basic Education 1999 PAD YES Basic 35.5 99.6(pre), 18.2 Project 17 (p), 41 74.6 (ls) 38 Indonesia Sulawesi and Eastern Islands 1999 PAD YES Basic 35.5 99.6(pre), 18.2 Basic Education Project 17 (p), 41 63.8 (ls) 39 Indonesia Library Development Project 2001 PAD 4.2 NO Non-formal 35.5 N.R. N.A. 40 Indonesia Global Development 2002 PAD 2.6 NO Tertiary 35.5 N.R. 56.4 Learning Network Project 41 Malaysia PER: Public Expenditures 2000 Report N.R. N.R. All/multi 42(pre), 2.0 N.R. N.R. 0.4(p), 5(s), 46(t) 42 Malaysia Social Sector Support Project 1999 PAD 60.0 YES ECD 2.0 42 N.A. 43 Malaysia Education Sector Support 1999 PAD NO All/multi 2.0 N.R. N.R. Project 244.0 44 Cambodia ESW: Public Expenditure 1999 Report N.R. N.R. All/multi 0.88 34.0 N.R. N.R. Review 28 Private Sector Involvement in Education No. Country Project Name Year Document Lending Poverty Key Sub- Enrolment Private Enrolment Private Reviewed Amount Intervention sector In private expenditure in private expenditure (US$million) Schools (%) (%) in sub- in sub- sector (%) sector (%) 45 Cambodia Social Fund II Project 1999 PAD 25.0 YES Basic 0.88 34.0 0.9 N.A. 46 Cambodia Education Quality 1999 PAD 5.0 NO Basic 0.88 34.0 0.9 N.A. Improvement Project 47 Timor Emergency School Readiness 2000 PAD NO Basic N.A. N.A. N.A. N.A. Leste Project 3.9 48 Timor Fundamental School Quality 2001 PAD NO Basic N.A. N.A. N.A. N.A. Leste Project 13.9 49 Lao PDR ESW: Education Financing 2001 Report N.R. N.R. All/multi 13.4 (pre), 8.0 N.R. N.R. 50 Lao PDR PER: Public Expenditure 2001 Report N.R. N.R. All/multi 2.5 (p), 1.1 8.0 N.R. N.R. Review (ls), 0(us), 0(t) 51 Solomon ESW: Primary and Secondary 2000 Report N.R. N.R. Basic N.A. N.A. N.A. N.A. Islands Education: A Community Standard for School Financing 52 Vanuatu ESW: Education Master Plan 1999 Report N.R. N.R. All/multi N.A. N.A. N.R. N.R. 53 Vanuatu Second Education Project 2001 PAD 3.5 NO All/multi N.A. N.A. N.R. N.R. 54 Mongolia PER: Public Expenditure and 2002 Report N.R. N.R. All/multi N.A. N.A. N.A. N.A. Financial Management Review 55 Pacific ESW: Promoting Social 2001 Report N.R. N.R. All/multi N.A. N.A. N.R. N.R. Region Tolerance and Cohesion through Education Private Sector Involvement in Education 29 No. Country Project Name Year Document Lending Poverty Key Sub- Enrolment Private Enrolment Private Reviewed Amount Intervention sector In private expenditure in private expenditure (US$million) Schools (%) (%) in sub- in sub- sector (%) sector (%) Fiji No relevant project Kiribati No relevant project Marshall No relevant project Islands Micronesia No relevant project Palau No relevant project Samoa No relevant project Tonga No relevant project Notes: Document Reviewed: PAD = Project Appraisal Document, SAR = Staff Appraisal Document, Report = Sector or Country Report Lending Amount (US$million): N.R. = not relevant Poverty Intervention: "Does the project entail poverty targeted intervention?" (N.A. = no information available) Key Sub-sector: All/Multi = all or multi sectors, ECD = early childhood development, Basic = general primary and/or secondary, Tech/Voc = technical and vocational education, Tertiary = tertiary, Non-formal = non-formal Enrolment in private schools (%): Share of enrolment in private schools (%) Private expenditure (%): Share of private expenditure in education sector (%) Enrolment in private in sub-sector (%): Share of enrolment in private schools in the relevant sub-sector (%) Private expenditure in sub-sector (%): Share of private expenditure in the relevant sub-sector (%) 30 Private Sector Involvement in Education Annex 2: Worksheet of Findings This worksheet summarizes the findings of the review and was used for calculations of data and for the figures. For an explanation of column headings, please refer to notes at the end of the worksheet. No. Country Project Name Degree of Objective ComponentAssessment Adequacy Information Information Reason Activity MechanismConsultation Cost Indicator Involvement on Private on Private Sharing Provider Expenditure by Private 1 Vietnam ESW: High YES YES YES YES YES YES YES OTH COS NO NO NO Education Financing Study 2 Vietnam PER: Public Zero NO NO YES NO NO YES NO None None NO NO NO Expenditure Review 3 Vietnam Higher Low YES YES YES YES YES YES YES SER GRA NO NO NO Education Project 4 Vietnam Primary Zero NO NO NO NO NO NO NO None None NO NO NO Teacher Development 6 China ESW: Higher Low YES YES YES YES YES YES YES SER REG, COS NO NO NO education reform 7 China ESW: Strategic Zero NO NO NO NO NO NO NO None None NO NO NO goals for Chinese education in the 21st century 8 China ESW: China Low YES YES YES YES YES YES YES SER REG NO NO NO and Knowledge Economy Private Sector Involvement in Education 31 No. Country Project Name Degree of Objective ComponentAssessment Adequacy Information Information Reason Activity MechanismConsultation Cost Indicator Involvement on Private on Private Sharing Provider Expenditure by Private 9 China PER: Managing Low YES YES YES NO NO NO YES None VOU NO NO NO Public Expenditures for Better Results 10 China Third Basic Zero NO NO NO NO NO YES NO None None NO NO NO Education Project 11 China Vocational Zero NO NO NO NO NO YES NO None None NO NO NO Education Reform Project 12 China Fourth Basic Zero NO NO NO NO NO NO NO None None NO NO NO Education Project 13 China Higher Zero NO NO YES NO YES NO YES None None NO NO NO Education Reform Project 14 Thailand ESW: High NO YES YES YES YES NO YES SER ASS, SCH, NO NO NO Education GRA, REG achievements, issues, and policies 15 Thailand ESW: High YES YES YES YES YES NO YES SER REG NO NO NO Secondary education for employment 32 Private Sector Involvement in Education No. Country Project Name Degree of Objective ComponentAssessment Adequacy Information Information Reason Activity MechanismConsultation Cost Indicator Involvement on Private on Private Sharing Provider Expenditure by Private 16 Thailand PER: Public High YES YES YES NO YES NO YES SER REG, COS NO NO NO Finance Review 17 Thailand Technical Zero NO NO NO NO NO YES NO None None NO NO NO Education Project 18 Thailand Second Zero NO NO NO NO NO NO NO None None NO NO NO Secondary Education Quality Improvement 19 Thailand Universities Zero NO NO YES NO NO YES YES None None NO NO NO Science and Engineering Education Project 20 Philippines ESW: High YES YES YES YES YES YES YES SER SCH, REG, NO NO NO Education for GRA the 21st Century 21 Philippines ESW: Out of High YES YES YES YES YES NO YES SER PAR NO NO NO School Children and Youth in the Philippines 22 Philippines PER: Public Zero NO NO YES NO YES NO NO None None NO NO NO Expenditure, Procurement and Financial Management Review Private Sector Involvement in Education 33 No. Country Project Name Degree of Objective ComponentAssessment Adequacy Information Information Reason Activity MechanismConsultation Cost Indicator Involvement on Private on Private Sharing Provider Expenditure by Private 23 Philippines Third Low NO NO YES YES YES YES YES DIS REG NO NO NO Elementary Education Project 24 Philippines Social Zero NO NO NO NO NO NO NO None None NO NO NO Expenditure Management Project 25 Philippines Second Social Zero NO NO NO NO NO NO NO None None NO NO NO Expenditure Management Project 26 Indonesia ESW: High YES YES YES YES YES YES YES DIS, CON, NO NO NO Education in SER, GRA, REG, Indonesia : OTH COS, OTH from crisis to recovery 27 Indonesia ESW: Training High YES YES YES YES YES NO YES SER ASS, GRA, NO NO NO and the labor SEL, REG market in Indonesia 28 Indonesia PER: Public Low YES YES YES NO NO NO YES SER REG NO NO NO Expenditure Review 29 Indonesia Secondary Zero NO NO YES YES YES NO YES None None NO NO NO School Teacher Development Project 34 Private Sector Involvement in Education No. Country Project Name Degree of Objective ComponentAssessment Adequacy Information Information Reason Activity MechanismConsultation Cost Indicator Involvement on Private on Private Sharing Provider Expenditure by Private 30 Indonesia East Java and High YES YES YES YES YES NO YES SER SCH, PAR, NO NO YES East Nusa TRA Tenggara Junior Secondary Education Project 31 Indonesia Central High YES YES YES YES YES NO YES SER SCH, PAR, NO NO YES Indonesia TRA Junior Secondary Education Project 32 Indonesia Higher Zero NO NO YES YES YES YES YES None None NO NO NO Education Support Project 33 Indonesia Sumatra Junior High YES YES YES YES YES NO YES SER SCH, PAR, NO NO YES Secondary TRA Education Project 34 Indonesia Quality of Low YES YES YES YES YES NO YES SER GRA NO NO YES Undergraduate Education Project 35 Indonesia Capacity Low YES YES YES NO NO NO YES SER n.a. NO NO NO Building for Human Resource Development Project Private Sector Involvement in Education 35 No. Country Project Name Degree of Objective ComponentAssessment Adequacy Information Information Reason Activity MechanismConsultation Cost Indicator Involvement on Private on Private Sharing Provider Expenditure by Private 36 Indonesia West Java Low NO YES NO NO YES YES NO SER GRA NO NO NO Basic Education Project 37 Indonesia Early Child Low NO YES NO NO NO NO NO TRA TRA NO NO NO Development Project 38 Indonesia Sumatera Basic High YES YES YES YES YES NO YES SER, GRA, TRA NO NO YES Education TRA Project 39 Indonesia Sulawesi and High YES YES YES YES YES NO YES SER, GRA, TRA NO NO YES Eastern Islands TRA Basic Education Project 40 Indonesia Library High YES YES YES YES YES NO YES OTH GRA NO NO NO Development Project 41 Indonesia Global Low YES YES YES NO NO NO YES OTH OTH YES NO NO Development Learning Network Project 42 Malaysia PER: Public Low YES YES YES NO YES NO YES SER COS, SCH NO NO NO Expenditures 36 Private Sector Involvement in Education No. Country Project Name Degree of Objective ComponentAssessment Adequacy Information Information Reason Activity MechanismConsultation Cost Indicator Involvement on Private on Private Sharing Provider Expenditure by Private 43 Malaysia Social Sector Zero NO NO NO NO NO NO NO None None NO NO NO Support Project 44 Malaysia Education Zero NO NO NO NO NO NO NO None None NO NO NO Sector Support Project 45 Cambodia ESW: Public Low YES YES YES YES YES YES YES SER REG NO NO NO Expenditure Review 46 Cambodia Social Fund II Zero NO NO NO NO NO NO NO None None NO NO NO Project 47 Cambodia Education Zero NO NO NO NO NO NO NO None None NO NO NO Quality Improvement Project 48 Timor Emergency Zero NO NO NO NO NO NO NO None None NO NO NO Leste School Readiness Project 49 Timor Fundamental Zero NO NO NO NO NO NO NO None None NO NO NO Leste School Quality Project 50 Lao PDR ESW: Zero NO NO NO NO NO NO NO None None NO NO NO Education Financing Private Sector Involvement in Education 37 No. Country Project Degree of Objective Component Assessment Adequacy Information Information Reason Activity Mechanism Consultation Cost Indicator Name Involvement on Private on Private Sharing Provider Expenditure by Private 51 Lao PDR PER: Public Low YES YES YES NO YES NO YES SER GTA, REG NO NO NO Expenditure Review 52 Solomon ESW: Low YES YES YES YES YES YES YES COS COS NO NO NO Islands Primary and Secondary Education: A Community Standard for School Financing 53 Vanuatu ESW: High YES YES YES YES YES YES YES BUI, PAR NO NO NO Education SOC, Master Plan SER 54 Vanuatu Second Low NO YES YES NO YES NO YES SER OTH NO NO NO Education Project 55 Mongolia PER: Public Low NO YES YES NO YES NO YES SER COS NO NO NO Expenditure and Financial Management Review 56 Pacific ESW: Zero NO NO NO NO NO NO NO None None NO NO NO Region Promoting Social Tolerance and Cohesion through Education 38 Private Sector Involvement in Education No. Country Project Name Degree of Objective ComponentAssessment Adequacy Information Information Reason Activity MechanismConsultation Cost Indicator Involvement on Private on Private Sharing Provider Expenditure by Private Fiji No relevant project Kiribati No relevant project Marshall No relevant Islands project Micronesia No relevant project Palau No relevant project Samoa No relevant project Tonga No relevant project Notes: Degree of Involvement: "To what extent does the project/sector work involve private sector?" Objective: Is private sector involvement stated as a part of project/sector objective? Component: Is the private sector engaged in project/sector components? Assessment: Has an assessment of the private sector taken place during project planning or implementation (or analytical work for AAA)? Adequacy: Given project/sector objectives and magnitude of relevant private sector; was the private sector adequately taken into account? Information on Private Is information on utilization of private providers/ producers presented? Provider: Information on Private Is information on private expenditure presented? Expenditure: Reason: Were reasons given for why the private sector was (or was not) involved in project/sector activities? Activity: What kind of activities is the private sector involved in? (BUI=Building and maintenance, SOC=Social marketing, COM=Communication, DIS= Distribution of books, supplies, etc., SER=Service provision, TRA=Training, OTH=Other) Mechanism: What mechanisms are used to involve the private sector actors? (ASS=Assessment of private sector, VOU=Vouchers, SCH=Scholarships, CON=Contracting, FRA=Franchising, GRA=Grants, INC=Non-financial incentives, PAR=Public/private partnerships, REG=Regulatory instruments, TRA=Training, SEL=Self-regulatory enhancement, LER=Learning assessments, COS=Cost Recovery, OTH=Other) Consultation: Is there any consultation with private actors? Cost Sharing by Private: Are any costs financed by the private sector? Indicator: Are there indicators to measure the impact of private sector involvement? Private Sector Involvement in Education 39 Annex 3: Template for Data Collection East Asia and Pacific Region (EAP) – FY 1996-2003 Portfolio Review of Private Sector Involvement in Education Projects and AAA INFORMATION VARIABLES ANSWERS Country: Project: Year: Amount of loans/credits (for projects) Poverty Targeted Intervention Yes No Document reviewed: Project Appraisal Document ICR ESW/ AAA Concept Note ESW/AAA Report Trust Funds Research Other Multi/All ECD Primary Secondary Given project/sector objectives, what were the Tertiary key service or product delivery sectors for the Lifelong learning/ Knowledge Economy project/task? Technical/vocational Teachers (training) Textbooks Education Reform Other (specify) What was the approximate ratio of private to public activities in this (sub) sector at this time (utilization data if available; expenditure data if not) What was the approximate ratio of private to public activities in relevant sub-sector in the country at this time? (if available) 40 Private Sector Involvement in Education INFORMATION VARIABLES ANSWERS Given project/sector objectives and magnitude of relevant private sector; was the private Yes No sector adequately taken into account? Is the private sector engaged in project/sector components? Yes No If so, which components? Has an assessment of the private sector taken Yes No place during project planning or implementation (or analytical work for AAA)? If yes, describe the assessment. Given intended engagement/ relevance of Yes No private sector, was the assessment adequate? Is private sector involvement stated as a part Yes No of project/sector objectives? Is information on utilization of private Yes No providers/ producers presented? Is information on private expenditure Yes No presented? Were reasons given for why the private sector Yes No was (or was not) involved in project/sector activities? If yes, list the reasons. Were reasons given as to why the specific Yes No group or sub-sector of private sector was involved in project/sector activities? Were the reasons adequate? Yes No Private Sector Involvement in Education 41 INFORMATION VARIABLES ANSWERS Which private sector actors are involved in Multi/All the project/task? ECD Primary Secondary Tertiary Lifelong learning/Knowledge Economy Technical/vocational Teachers (training) Textbooks Education Reform Other (specify) What kind of activities is the private sector Building and maintenance involved in? Social marketing Communication Distribution of books, supplies, etc. Service provision „ Primary „ Secondary „ Tertiary „ Lifelong „ Other Training Other (specify) What mechanisms are used to involve the Assessment of private sector private sector actors? Vouchers Scholarships Contracting Franchising Grants Non-financial incentives Public/private partnerships (please describe) Regulatory instruments Training Self-regulatory enhancement Learning Assessments Cost Recovery Other (specify) 42 Private Sector Involvement in Education INFORMATION VARIABLES ANSWERS Is there any consultation with private actors? Yes No If yes, please describe. Are any costs financed by the private sector? Yes No If yes, describe the costs. Are there indicators to measure the impact of Yes No private sector involvement? If yes, list the indicators. Are these indicators tied (in logframe or otherwise) to the project/ sector work Yes No objectives? Rating on the extent to which the project/sector work involves private sector and other additional comments. Private Sector Involvement in Education 43 Annex 4: Ratings of AAAs and projects for each country High Low Zero Total Cambodia AAA 0 1 0 1 Project 0 0 2 2 Total 0 0 3 3 China AAA 0 3 1 4 Project 0 0 4 4 Total 0 3 5 8 Indonesia AAA 2 1 0 3 Project 6 5 2 12 Total 8 6 2 16 Lao PDR AAA 0 1 1 2 Project 0 0 0 0 Total 0 1 1 2 Malaysia AAA 0 1 0 1 Project 0 0 2 2 Total 0 0 3 3 Mongolia AAA 0 1 0 1 Project 0 0 0 0 Total 0 1 0 1 Pacific Region AAA 0 0 1 1 Project 0 0 0 0 Total 0 0 1 1 Philippines AAA 2 0 1 3 Project 0 1 2 3 Total 2 1 3 6 Solomon AAA 0 1 0 1 Islands Project 0 0 0 0 Total 0 1 0 1 Thailand AAA 3 0 0 3 Project 0 0 3 3 Total 3 0 3 6 Timor Leste AAA 0 0 0 0 Project 0 0 2 2 Total 0 0 2 2 Vanuatu AAA 1 0 0 1 Project 0 1 0 1 Total 1 1 0 2 Vietnam AAA 1 0 1 2 Project 0 1 1 2 Total 1 1 2 4 Total AAA 9 9 5 23 Project 6 8 18 32 Total 15 17 23 55 Percent AAA 39% 39% 22% 100% Project 19% 25% 56% 100% Total 27% 31% 42% 100% 44 Private Sector Involvement in Education References Arthur Andersen. 2000. 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World Bank, Washington, DC. 48 Private Sector Involvement in Education Working Papers Human Development Sector Unit East Asia and Pacific Region The World Bank 2004-1 Disability Issues in East Asia: Review and Ways Forward 2004-2 Cambodia Skills and Growth 2004-3 Evaluating the Performance of SGP and SIP: A Review of the existing Literature and Beyond 2004-4 Vietnam Reading and Mathematics Assessment Study - Volume1 2004-5 Addressing Inequity in Access to Health Care in Urban China: A Review of Health Care Financing Reform Experiments 2004-6 Strengthening World Bank Support for Quality Assurance and Accreditation in Higher Education in East Asia and Pacific 2004-8 Financing Health Care for Poor Filipinos 2004-8 Health Care Financing for the Poor in Vietnam 2004-9 Pro-Poor Health Financing Schemes in Thailand: A Review of Country Experience 2004-10 Health Financing for the Poor in Indonesia 2004-11 Making Injections Safe In China: How Much Will It Cost and Who Will Pay?