handshake IFC's quarterly journal on public-private partnerships INFRASTRUCTURE: Education PPPs come of age SERVICES: Vouching for the future INNOVATION: Mobile learning dials up success - INTERVIEW: U.S. Secretary of Education Arne Duncan C Iternational Finance Corporation World Bank Group IN PARTNERSHIP WITH Australia * Austria * Brazil * Canada * Catalonia (Spain) * Flanders (Belgium) * France * Ireland * Italy Japan * Kuwait * Netherlands * Norway * Sweden * Switzerland * United Kingdom * United States * Public-Private Infrastructure Advisory Facility (PPIAF) * Global Partnership for Output-Based Aid (GPOBA) * Private Infrastructure Development Group (PIDG) * African Development Bank * Asian Development Bank * Brazilian Development Bank (BNDES) * Caribbean Development Bank * Central American Bank for Economic Integration * European Investment Bank * European Bank for Reconstruction and Development * Inter-American Development Bank * Infrastructure Consortium for Africa * Islamic Development Bank handshake Issue #8 - January 2013 IFC's quarterly journal on public-private partnerships IFC Advisory Services in Public-Private Partnerships 2121 Pennsylvania Avenue, NW *Washington, D.C. 20433, USA * +1 (202) 458 5326/7 * ifc.org/ppp Editorial Tanya Scobie Oliveira * Alison Buckholtz Art & Design Jeanine Delay * Victoria Adams-Kotsch Outreach Chrysoula Economopoulos Disclaimer This journal was commissioned by IFC, a member of the World Bank Group, through its Advisory Services in Public-Private Partnerships department, which helps governments improve access to basic public services through public-private partnerships in infrastructure, health and education. The conclusions and judgments contained in this report should not be attributed to, and do not necessarily represent the views of, IFC or its Board of Directors or the World Bank or its Executive Directors, or the countries they represent. IFC and the World Bank do not guarantee the accuracy of the data in this publication and accept no responsibility for any consequences of their use. Cover photo @ Martin Goncalvez "Disruptive technology," the term coined by Harvard Busi- ness School professor Clayton Christensen, is most success- ful in markets "where the alternative is nothing"-an apt description of the centuries-old education model. But just as advances in technology have launched a paradigm shift in learning, public-private partnerships (PPPs) in education have also transformed the learning landscape. These PPPs allow governments to ensure access to quality education while O removing educators from the day to day burdens of manag- ing services and maintaining a facility. The newest genera- tion of partnerships reaches beyond infrastructure to deliver school choice via vouchers for poor students, low-cost private schools, and incentives for high-performing teachers. Inspired by the possibilities of education PPPs, we decided to approach the world's leading thinkers in education-includ- ing U.S. Secretary of Education Arne Duncan, edX President Anant Agarawal, and former Washington, D.C. schools Chancellor Michelle Rhee-with big questions of our own. Their responses hint at a future in which even the poorest have access to education and the opportunities that inevita- bly follow, benefitting households as well as national econo- mies. That's exactly the sort of "disruptive" approach that earns top marks in our book. Laurence Carter, Director Tanya Scobie Oliveira, Editor IFC Advisory Services in Public-Private Partnerships Features Services A charter for change | 38 Vouching for the future | 52 Low fees, high hopes | 54 . Private schools for the poor | 60 * Governments and business schools I62 Infrastructure A new direction for New Zealand schools | 20 Primary schools, primary importance 28 Sustainable school buildings | 32 PPPs build the future | 34 rIn this issue 2| IFC.ORG/HANDSHAKE Columns Innovation Education for the 21I century | 66 PERSPECTIVE Insights &opinions Access for all 68 Learning to change 06 Bricks and clicks | 70 Open education goes the distance | 72 Surveying the PPP landscape Grading teachers |74 PPP prep 10 M is for mobile 84 . 11 INSIGHT Online learning | 88 Commentary on current events Tearing down walls to build stronger schools |116 LEGALEASE .Law & legislation, decoded Not just another social accommodation project |124 Interviews: Michelle Rhee: Philosophy in practice 141 Emily Lawson: Prepping neighborhoods for change |45. Arne Duncan: American schools on the world stage |48 IFC |3 Contributors Michelle Rhee Marcello Faulhaber Arne Duncan Lauren Dawes Anant Agarawal Carl Bistany is the President of edX, a worldwide, online is President of SABIS', a global education learning initiative of MIT and Harvard management organization. University, and a professor at MIT. Page Schindler Buchanan Paul Angell is the Communications and Media Officer at is a Counsel at Ashurst, specializing in advising the Global Business School Network, a nonprofit the public sector, concessionaires, and funders on working to address the shortage of management public-private partnership transactions in a range talent in the developing world by building the of sectors, including numerous social infrastruc- capacity of local business schools. ture and transportation projects. Lauren Dawes Tomas Anker is the Head of mLearning for the GSMA, the is an Associate Investment Officer for IFC global trade association for mobile network Advisory Services in Public-Private Partnerships, operators, based in London. based in SBo Paulo, Brazil. 41 IFC.ORG/HANDSHAKE Ben Gerritson Jason Radford is the Managing Director of Castalia's office heads Ashurst's Energy, Transportation and in Wellington, New Zealand. Infrastructure practice in North America and John Kjorstad is the co-editor of A Practical Guide to PPP in is editor of Inftastructure Journal. the UK Michael Latham Jamil Salmi is Director, CfBT Education Services, is a global tertiary education expert and was based in South Asia. formerly the World Bank's tertiary education coordinator. Norman LaRocque is a Senior Education Specialist in the Southeast INTERVIEWEES Asia Department of the Asian Development Bank, based in the Philippines. Afonso Celso Renan Barbosa Muhabbat Mahmudova is interim Secretary of Education for the is responsible for Infrastructure Journats man- municipality of Belo Horizonte, Brazil. agement and delivery of research and analysis Arne Duncan content, its project database, and production is U.S. Secretary of Education and former Chief of its infrastructure industry league tables. Executive Officer of the Chicago Public Schools. Fiona Natusch Marcello Faulhaber is an analyst in Castalia's Wellington, New is Secretary of Development for the municipality Zealand office. of Belo Horizonte, Brazil. Tanya Scobie Oliveira Emily Lawson is Senior Operations Officer in IFC's Advisory is the Founder of DC Prep, the highest- Services in Public-Private Partnerships and the performing network of public schools in Editor-in-chief of Handshake. Washington, D.C. V. Darleen Opfer Michelle Rhee is Director at RAND Education and is founder and CEO of StudentsFirst and Distinguished Chair in Education Policy former Chancellor of the District of Columbia at the RAND Corporation. Public Schools. Harry Anthony Patrinos is Sector Manager, Education at the World Bank. 1FC 15 黝織婦細騙〝 州‘ 礬 PERSPECTIVE Think back to your first classroom. The desks were lined up in rows (or perhaps clustered, if your school was especially progressive), and a teacher holding a piece of dusty chalk stood at a blackboard, talking through a lesson and hoping for the best. Sound familiar? That's what my high school in Hamilton, New Zealand looked like in the 1980s. It's what my parents school looked like in the (even) less-developed 1950s, and my grandpar- ents' schools in the rural 1920s. As you can see from the painting at left, it's what fourteenth-century schools looked like in Bologna, Italy. And that's pretty much how my children still learn, in their urban Washington, D.C., schools in 2013. The familiarity of this education model, static not just for generations but for centuries, may bring comfort to some, but leaves many more questioning why so little has changed. With all this sophisticated technology that's spurred paradigm shifts large and small, there's almost zero prog- 7bis illustrationftom afourteentb-century manuscript sbows Henry of Germany delivering a lecture to university students in Bologna. Artist., Laurentius de Voltolina; Liber etbicorum des Henricus de Alemannia; Kupferstichkabinett SMPK BerlinlStaadicbe Museen Preussiiscber Kulturbesitz, Min. 1233 1FC 7 ress in the practice of what surely we can agree must be regarded with suspicion lest it fleece the is the most important thing we do as a society: government, unsuspecting children, and their develop the minds and characters of our young- families. These fairly rigid views have relaxed est citizens. in the past decade or so, and more and more But if you pay attention, inspired educators, countries are considering and implementing entrepreneurs, technologists, and others are public-private partnerships (PPPs) for educa- hard at work. Their findings are beginning to tion-potentially a hugely beneficial balancing alter how students learn as well as where that act where each side offers what it does best. learning takes place. Change hasn't yet trickled These partnerships got their start as education down to most of our childrens' classrooms, but private finance initiatives (PFI*) in the United it's on the way. Kingdom-bundling the finance, construc- tion, and facilities maintenance for the private sector-between about 2000 and 2010. This has grown strong globally, especially since 2005, Change hasn 't yet trickled and even continued to grow during the 2009 to down to most of our child- 2010 global financial crisis, finally tapering off in 2011. But PFIs are often criticized as being as rens' classrooms, but it's on boring and basic as the ABCs. (In this issue John the way. Kjorstad invokes Pink Floyd's dejected student in The Wall to make a similar point much more vividly.) After all, this type of PPP tackles "o nly' the school infrastructure, leaving out the ques- A PPPiece of the puzzle tion of uninspired (or even absent) teachers and unchallenged students. Because technology has placed us at the cusp of School infrastructure, however, has an impact such radical shifts in learning, the finance and on learning, especially in developing countries administration of education delivery systems where shoddy infrastructure, poorly maintained, seem a little like bit players in an epic drama. negatively affects students' ability to learn. But the sweep of history has stirred change PFI-style, infrastructure-only PPPs relieve school here as well. Until recently, it was fairly widely management of the daily headaches of broken believed that governments alone could and ceiling fans, overflowing toilets, or crumbling should ensure education for all, and could do bricks. This lets teachers to focus on instruction so only if that education was wholly publicly and allows students to learn in more comfortable delivered, owned, and financed. Most also felt that any private sector involvement in education *A term coined in the UK but now used to mean infrastructure- only Pfiv. 81 IFC.ORG/HANDSHAKE While PFIs continue to fill a need in many areas, and can be a politically pragmatic and palatable "starter" PPP, education partnerships are evolving into more comprehensive PPPs that take on the core problems in education: the quality of teachers, the management of teaching, and the teaching itself. environments, while higher-level administrators incentives for teachers, and new models in can finally turn their limited attention to strategy Brazil, India, Nigeria, and the Philippines. and policy. Each of these projects and partnerships, how- ever small, paves the way for more learning, and The next level facilitates expanded access to education as tech- nology reaches into every pocket of the globe. While PFIs continue to fill a need in many areas, The end result is a future in which classrooms, and can be a politically pragmatic and palatable at long last, no longer resemble fourteenth- "starter" PPP, education partnerships are evolv- century paintings. M ing into more comprehensive PPPs that take on the core problems in education: the quality of teachers, the management of teaching, and the teaching itself. Appropriately incentivizing the private sector to deliver education can introduce innovation, rigor, and efficiencies that can be very difficult to do in traditional public school environments with entrenched mindsets, bureau- cracies, and policies. Contributors to this issue report from the front lines of these experiments, which include charter schools and their offshoots, voucher programs, 1FC I9 ZZ-= *. ..0...m.... EdctoSnfatutr *oms o ag COMPASS Between 2000 and 2010, global investment THE RISE OF PPPs in education grew rapidly. Governments began to attract private capital to build and Ps havben ilypie t the deier modernize school building infrastructure in the education sector Global investment this approach, the governments pay private has been growing especially strongly since companies throughout the concession period for 2005, and even continued to grow during the construction, operation, and often the main- the 2009 to 2010 global financial crisis. tenance of education infrastructure facilities. The The impact of the crisis on public finances sheer number of education projects developed and he vaiabilty f lng-trm ebtdid through PPPs argues that positive results can be and the availability of long-term debt did, acivdnwelsrtudeuaioPPpoj however, ultimately have an impact. Activ- achievenwesructr educat sectpr ity decreased in a number of countries, and ecsagornntbnfifompvteetr rtefletin ti, thal volmer of invtrest-an expertise and rely on timely and efficient delivery reflecting this,t t total dun 2011 of infrastructure, operation, and maintenance of ments 01 the facility. PPPs opened an alternative way of WHAT MAKS EDUHO E RS O P hv i e a u s o c be widel appld t hes dei lenge tha disingush tem fomtaditontisfraprc,te gursovrment paypprateo n infrstruturePPPssuc as ransort,tecomp-anies thoughoulitheicoudncsonsiperiono munications, ~ ~ ~ ~ th eeg,adwtrThyelofacosrucin adeoperai, notn min- heailyon oliicasuporanimlyreaer teahroug PPPs arhngu thansi ht ultianb interdependence ~ ~~ ect aswen h government,hc aeycet s eefitl fvromete secor pof 0 th i t a th p s lin or anm. thefailty. PPP opene n lteriWnaivc walty of 11 delivering essential social infrastructure through structure, education PPPs are well-positioned to the structures of these contracts. grow in importance. Although PPP use has increased considerably The chart below shows the volume of global over the last 10 years, traditional procure- investments that went to finance education PPP ment remains widely used as countries which projects from 1995 to 2012. A total of 383 proj- promoted the use of PPPs, such as Australia, ects have been recorded to reach financial close Canada, Germany, and the United Kingdom, within this period, with a total value of around continue to develop education projects through $40 billion. design and build contracts. The market was the most active from 2007 Looking ahead globally, as governments seek to to 2010, recording the highest level of invest- apply the lessons learned from conventional PPP ments in education. It is worth noting that the schemes in transport and other economic infra- volumes in 2009 and 2010 were bolstered by two multibillion dollar projects in the United Global investments in education, by sources of funding US$bil$ion Dealcount 7 Flo/government support 50 Equity -45 6 Debt U$l Dealcount D 40 5 -35 30 4- -25 3 -20 2 -15 -10 -5 0 -0 1995 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Infrastructure Journal 12 IFC.ORG/HANDSHAKE Regional investments, by source of funding (1995 to October 2012) All figures in US$ millions. Source: Infrastructure Journal Arab Emirates and Belgium. Many education WHO PAYS? projects during this period (around 37 percent The education projects considered here have or 140 deals) were small projects with capital value below $50 million. There were 238 deals be iacdpiaiywt h s fdb between $50 million and $500 million, through project finance structures. adis means betwen 50 illon ad $00 illon.that commercial banks have lent the bulk of the Among the five deals that had capital values capital costs required for the construction of above $500 million were three British schools: projects-usually around 80 percent of project Glasgow Secondary Schools, Tower Hamlets costs. This has been a preferable way for the BSF, and South Lancashire Schools PFL In government to fund construction and modern- addition, there were two record high value deals: ization for quick and efficient delivery of educa- Zayed University in the United Arab Emirates tional facilities. (worth $1.2 billion) and the Flemish Schools Debt levels fluctuated in 2008 at the onset of PPP in Belgium (worth $2.8 billion), the global financial crisis, and the share and overall volume of debt financing fell dramatically 1FC 113 before rising again in 2009 and 2010 (thanks sovereign debt problems and stagnant national to the two aforementioned mega projects in the economic growth. Changes in politics and ruling United Arab Emirates and Belgium). There was a governments also meant changes to the priorities considerable drop in 2011 with a further decline of education overall as a sector and the level of in 2012. Difficult economic conditions are investments allocated to it. partly the reason for the slowdown in activity, as it has become a challenge to commit public REGION BY REG ION funds to projects in countries with mounting Europe has been the Is, most prominent region for private capital ti , investments in educa- tion. It is supported 0 by stable legislation Regional and country deal and regulation regimes counts in education across its jurisdictions, (1995 to October 2012) as well as strong politi- cal will and financial and institutional support behind the delivery of education projects. A number of Seducation-specific pol- PP (9 ) cies and governments cal will an financial commitments phave helped to deliver Frdance (e3) education infrastruc- Demakr1 ture-primarily school buildings. Within Europe, the ZD United Kingdom has been the most active market for private capital investments. It was supported by a 0 well-established PFI Source: 0, j />%/ procurement process, Infrastructure Journal 141I IFC.ORG/HANDSHAKE as well as the U.K. government's support in the to attract private expertise and capital to the form of PFI grants and guarantees, the sup- construction, operation, and maintenance of port of the European Investment Bank, and the schools through the use of PPPs; private capital government's landmark £55 billion Building is sometimes auxiliary and invested alongside Schools for Future (BSF) program, which in regional or central government funding. 2004 announced the goal of rebuilding every The United Kingdom, despite the government's secondary school in England. These factors decision to cut the BSF program, is still together helped boost private investments in the mitted to delivering education projects, albeit delivery of a number of school buildings, student through a modified PFI procurement model accommodation, and higher education facilities that came into force in July 2011. This $4.8 in the country. There were a total of 254 projects billion priority schools building program now valued at $26 billion reaching financial close in has both PF and fully government-financed the U.K. market since 1995. school projects. However, the United Kingdom may have Consistently active education markets-includ- trouble retaining its position as a global leader ing Canada, France, and the United Kingdom- in attracting private investments for education currently have a late-stage mature pipeline of infrastructure. In 2010, the newly elected U.K. projects in education. Other countries across government conducted a review of the BSF the globe are also delivering a number of educa- program, which resulted in the cancellation tion projects with the help of the private sector, of around 700 schools throughout England. including Brazil, Canada, Denmark, Egypt, The cuts in the BSF program have affected the Finland, Hungary, India, Ireland, the Nether- volume of private investments in education and lands, the Philippines, Poland, Russia, Saudi lowered the United Kingdom's position in the Arabia, and also the United States. By prioritiz- global education infrastructure market. ing investments in education infrastructure in tougher economic times, these governments THE FUTURE LOOKS SMARTER ultimately hope to increase enrollment in schools Going forward, emerging markets are set to and create jobs for education professionals while increase their share in the global volume of getting a head start on fulfilling their economys education sector investments. Many of today's skills requirements for the future. f developing markets will be looking to build or Note: The charts were created using the datafor the new-build modernize education infrastructure as a result of or expansion construction projects and theirprimaryfinancing; a growing student population. Emerging mar- no secondary market activit has been included. kets need to address population needs to create more inclusive growth patterns and to offer their workforce more and better jobs in their national economies. Many countries have already started IFC 115 Photos ©0 BSF iii Htill *ol bal Tea ring do wn wa Ils 161 W C.ORG/HANDSHAKE I INSIGHT A new approach for education inftastructure F By John Kjorstad In the late 1970s, Roger Waters, the former adteotoe,aigbik n otro bassist and lyricist for the British rock band Pink Biansps-ol a 1euainsco a' 0a Floyd, wrote a damning critique of a broken beinrd society in Yhe Wal-the band's 1PV studio album and a film of the same name. Tefclt atr A work of fiction, the concept behind Yhe Wal col r ntttosdsge omk h was semniautobiographical and drew partially ms forhmncptl hl erigi on Waters' own experiences growing up in the abumchortanhepyilevrnet United Kingdom. He orchestrated distinc- tive events for the story that shaped a sense of ceryipoewe tdnshv cest abandonment and isolation in its main character, Pink. Over time, Pink builds a metaphorical cainsabupltngheedsokowde barrier between himself and the world, leading to the album's most famous line: "All in all you',re ihntefriemns fyuh hncetn th rih enirnmn to betfcltaelann just another brick in the wall." sol eahg roiyfrgvrmns ria Inequality and an excessively rigid education tinfeilzradpstctolrn'rquedo system feature prominently in he Wal. A con- nection between Pinks personal deterioration through ~ ~ ~ ~ ~ ~~ ~n th uligo amtpoia brir rqie omoed frnaigl bikstndotaro Th failt 0matterrsos most f u h n c . W l i aprpit an wl-mange faclii. If edu caio s botplnin tesed.o koleg within ~ th fetl mid of yoth thncetn the-rihtSenvronmen0to*bstaiiaelann 0hul .e a .high priritfo goenmns Irriga tion fetilzer an pet.cntrl-aen' reuird t make see grw 0u maae corcty ths technique will inrease cro yields.They als thouh h bilig f mtphria brre reur more up fron caia invstmnt to . *~ 0build*stronger schools - -.IFCo|-17 in these times of global austerity--when politi- Bidn ulig cians around the world speak of prioritizing "1economic infrastructure" or revenue-generating BuligShosfrteFue(S)wate projects that may effectively fund themselves- prvosUKgvenntsabiusf5 financing the social fabric of our communities blinmse lnt eaiiaeisetr with public money is increasingly more challeng- scnaysho saeadtcl ecie ing. TIhis is where public-private partnerships inqatywhntesaeedciossem (PPPs) can help.-fcwrtfclte-fethsinporuba Society must understand thewalunhdi205 difference between what it-fcdlvrofteBFpgamwsvren wants, and what it needs. pbi oyfre hog on etr bewe th Deatmn fo Chlrn Scol Since 2005, Infastructure ournalhas trackede more than 200 closed transactions funding wsltrsohre noteTesr n PPPs in education. One hundred and fifty of reandIfasucreU)advris these deals have been in the United Kingdom. piaesco ates Although Roger Waters had nothing to do with `Iefrtgyhouhhewlawyses the creation of the private finance initiative (or bloyanthU.'sBFeprncwsnt PFI, for which we can thank John Major), his wtotisbuss ahpoetwsdsge bitter observations on the U.K.'s education sys- adpoue niiuly n oa uhrte tem in 7he Wallwere not isolated. British citizens i hs is e ae ftepormlce eventually came to the conclusion that they had temngmn xets n aaiyt vr underinvested in publicly-funded schools (not sesuhabtospjcs.1eomlxevs to be confused with "public schools," a term ofbraccydedtcslyeasuniev- commonly used in England and Wales to refer totulyhepormntrcsswsanddo BuldngSol foSh Fuur(SFwath prvou ..5oenmn 5abtou55 wealhierindeendet o priatechoos)secomndary chootl este and tacke upeivedy i a w h the.state educti thecfistto reeive nvesmentwhendhetpogra differenceabetweeniwhat0it want,Partnhteishees.s fo Scoos a oearmna an -aiis (frel h Dprmn o wa5lte sohone itote-resuy*n rerade Inrsrutr UK,adaiu prvae ecorpatnrs The fir ~sytruhtewlalases bloy,ad h UK'sBF xerecews-o wih u t buss ac rjc wsdsge an*pocre idiidaly,an lca athriie in -~ ths frtew avs oftepormlce the maaemn exetsadcpctyt-vr see5 such abtos prjcsTecmlxevs ofbreurayade t otl ely5utl-vn tulytepourmn rcs wsaeddt wealther indpendet or pivateschos.eiiaecptlwseadsedu eiey 18 | IF.ORG/HNDSHAK When the current coalition government came itnesThU..pormdlvedoe to power in 2010, the new Secretary of State - for Education Michael Gove-a vocal critic of te-aiysm ftebs ulcyfne PFI-acted quickly and controversially to shut piayadscnaysho nrsrcuei down the BSF program. He cancelled all projectsthwol.H evrsuhxclnecaeta not yet at the preferred bidder stage, sparking a steprc;heourycrenplicalads legal battle with some of the local councils of thehaetrditxoton more than 1,000 schools yet to be built. Looking back at its legacy, BSF and the Primary i vligtemdli epdivn.A h Capital Programme for primary schools did tm fwiig h rts ulci ainl deliver billions of pounds of private investment aatn ute eal ntecutysnx for U.K. schools in a relatively short period gerainoPPaswlasGv'chenu- of time. By June 2010, 178 schools had been cesrtBS,aLbilopirtychlsuld rebuilt or refurbished, and 231 projects were inprga.Ohrmkesrodtewrl under or entering the construction phase. The hv dpe h rts F oe ome hi program had cost roughly fE5 billion.owinealeds Lessons learnedofapoutvsoit,adBFchlswr What might the rest of the world gather from abtosydsge oisielann.I that experience?goenetgeitrgtthnftegnraos First and foremost, society must understand te'esml digbik otewl.0 thth world.nc However, such exelec cames atd aha Exelnc ae tasteep price; the country's currentpoicaledr poliica leaershave termed it extortion. TeUidKnohalan ie 0i0 evol0ing 0h moe0thle ivn.A h time6of wrtig the Brts puli ispaietl 0witngfuthr etis n heconty' nx generation- of PP as0wl sGv'hsnsc cessor toBSF a 03blinpiriyshosbid ambitiously- deig e toisielann.I th-ifrnebt e whti0wns adwa Exe/ec caea0 te0rc; h onr' urn poliica ledershav temed t etorion IFC0| 0 By Ben Gerritsen & Fiona Natusch SCHOOL BUS ROUTE A FOR NEW ZEALAND SCHOOLS Is it better to combine several sites to achieve scale efficiencies, or instead limit project scope and respond to local needs? New Zealand's govern- ment recently discovered that "right sizing" an education PPP transaction involves complex trade-offs that are critical to a project's success. INFRASTRUCTURE Photo @ George Clerklistockphoto In April 2012, New Zealand's government MODEL NOT NECESSARILY contracted a private consortium to design, build, finance, operate, and maintain two new schools. This is the first public-private partnership (PPP) New Zealand's government recognized that for schools in New Zealand, which until now preparing and tendering a PPP transaction have been financed and maintained by the would likely increase upfront transaction costs Ministry of Education. of procurement to more than 10 percent of the The government put considerable effort into transaction value. These costs are not only borne building a strong framework for school infra- by the government, but also by consortia putting structure PPPs, providing useful lessons for other together complex bids with risks carried over countries considering PPPs in the education 25 years. These transaction costs include legal sector. This article explores the challenge of advice, proposal preparation costs, initial design, "right-sizing" school procurements to maximize evaluation, and contract negotiation costs. the benefits delivered by the project. As a result, if the PPP transaction was too small, the project would be unlikely to provide enough THE ELL INGSIN 21 3benefits to exceed the total costs. For example, it THE BELL RINGS IN 2013 would make little sense to spend a fixed $5 mil- The two new schools developed under the PPP lion to prepare a $15 million transaction. model are located at Hobsonville Point, Auck- land, and have an expected construction cost of Ti Ean atale w re The Minstr around $57 million. The school bell will ring in ofuEducation ned or th 0 proosed January 2013 to begin primary school classes, "bundls" onw shst be r cu der and the secondary school is due to open at the the firs P co Thee udesied start of 2014. The PPP contract focuses on school infra- against criteria that included: structure only, so the government will still be * Sufficient project size; responsible for employing principals, teaching - Risk to government (i.e., complexity staff, and school administrators. However, one of of managing the contract); the benefits of the PPP transaction is that school * Potential for competitive tender process; staff will have more time to focus on providing high quality education, with less time spent on managing the ongoing maintenance of school * Scope for innovation. property. 1FC 121 The winning option-to bundle the Hobsonville parent representatives, the principal, a staff Primary and Secondary schools together- representative, and a student representative. This achieved some scale while attracting a sufficient decentralized governance structure helps idi- number of bidders to maintain competitive vidual schools interact with their communities, tension throughout the procurement process. and this responsiveness needed to be preserved as While the option of bundling more schools part of the shift to PPPs. together took advantage of scale, this option What does local community input mean for was considered to have the highest risk to the right-sizing a PPP school? On the one hand, the government. This option may also have discour- contractor can take advantage of scale by build- aged potential bidders worried about servicing ing and operating multiple schools under a single contracts in very different locations. procurement and contracting process. On the other hand, this risks reducing the accountability LOCAL INPUT for good contractual performance, as distinct issues at the school level may not be understood Local communities have substantial involvement by either of the contracting parties (the ministry in New Zealand schools. Each school is governed or the private contractor). by a board of trustees (BoT) that includes five DECENTRALIZED GOVERNANCE STRUCTURE vidua scContracting Counterparty .0.00 part of therhit PP Governance of School muContract Educational Services + by, eithef/7 Maintain, & Finance 22 IFC.ORG/HANDSHAKE To operate effectively, the PPP contractor needs to have individual partnerships with the BoT, staff, and principal at each school. These parties A monitor the day-to-day operations and mainte- nance of the school property, even though the E o contract is held by the Ministry of Education. l Smaller-sized contracts can help ensure that the PPP contractor has a strong relationship with i w school staff and the local community (through P the BoT), and is held accountable for day-to-day C n operations and maintenance. Good lines of communication also ensure that serious issues identified at the school level (by ab staff, principals, and BoTs) can be escalated to the ministry and effectively resolved through contractual mechanisms if required. THE FINAL EXAM One of the contracting options considered in New Zealand was a single transaction covering s The 0 three geographical regions, which included a p a total of five schools. This structure would take b a advantage of scale, but would limit opportunities r i for the private contractor to reduce the costs of operating and maintaining the facilities. Coordinators of the project compromised by g rp r 0 t a including two schools in the same suburb under s w c c one contract to achieve some scale. Both these schools have similar community concerns and t b s the contractor can lower its operational costs by l c effectively servicing the nearby facilities. This "right sizing" signals a new direction for schools that need to map out the best possible future for their students. Po 1FC 1 23 LEGALEA E Not just another social accommodation project By faon Radford r Paul Angell EduItcation pu,blic-private par-tner-ship (PPP) projects are not just another form ofsocial accommodation PPR 7hey involve the assessment of'a number of'unique issues. For thye most successfnd outcome, bothy thye public and private sector should address these issues at an early stage in the procurement and imiplemnenta- tion process. This will help all parties appropriately manage the structural, technical delivery, and risk allocation arrangements; ensu re that such projects arefinanceable; and avoid any unexpected sut;p rises. We hyave soughit to set out below a handid of'some of'the challenges tbat are relevant to or arise in thye d1iffrent phases of thgeprojects life. SCOPING THE PROJECTog.IadiinITcnrcrsrcfeutl INFORMATION TECHNOLOGY I ehooismyb le ocntuto In structuring an education PPP, those involved cnrcos oteecnb ako prca should decide at an early stage how information tinothcmpeitrfesharsu. technology (IT) will be delivered and operated. ItgaigI ntlainit h dcto Simply adding IT delivery to the scope of proj- PPisaheblbusoldeaprcedwt ect operations is unlikely to be the answer. In fact, the use of the PPP model in the IT market adsol eblne gis n des has historically been beset with problems. Chal- ipc nvlefrmnygvntecnrco' lenges include performance management (e.g. ne omng,freape monitoring and identifying performance failures Thinedpdncsbtwntewok and allocating responsibility), limitations on the anITislatodungcsrcinad availability of replacement IT contractors, and oeain hss ogy Inadto, ITcnrcosaefqutl thetio ofrshn the complexe interface that result. Inegatn ITFistalaton/ntoNheSductio **heitedpedncesbtwe*tewok an0T ntlltondrngcnsrcio n * . operations 0hases th0ersigfoslt sotwr and0tchnol 24 |IFCORG/ANDHAK * The ongoing allocation of responsibility for performance of the passive and active networks;PRGAMN * The scope of the IT installation tests during handover; andinonwshobuligdrngtmtme SThe consequences of IT contractor failure given the strength of IT contractor balance srs nlt opeinrss smnrdly sheets and the value of the IT contract myrsl ndsrprint pnlis .. relative to the overall PPP project.nojutfrtepidofheelybtutlte COMMUNITY BENEFIT hne vr Often, procuring authorities ("Authorities") will want to utilize their new asset to provide wider community opportunities and benefits. If the Itiim oanthtec Authority envisages the school operating as a multifaceted community facility, a number of prysrsosblte r additional issues need to be considered. These fil aacd include: * Is the contractor entitled to generate revenue from third-party activities outside of school hdeariksexcbtdbyevalfto, hours and if so, from which activities? * Will these revenues be "hard wired" into sc stepesr httehnoe etito the financial model to reduce the Authority's plcsolng availability payments or will they be shared Ti a ea su hr otatri ed as potential "upside" only? t advrbti rvne rms on * How will the number and type of Authority lnso emnto ae nte ikfco "1community use" hours be identified? ivle h nefcsa lywt utpepr * How much will it cost to keep the school tc nae ntehnoc rcs.Eape open during community use periods? myicuemitnnecnrco oiia * Which areas of the school will be used for to osatoeain,Atoiyrlcto community use and how will performance/ aragmnsadITitlaioadteig availability deductions be calculated and poess Typcaly Auhrte wl o an omv intoate newin schooit buldng durigitrmdime From 0r0 stesonlt copeinrss.smnrdly maAesl n iprprioae pnlte"0.. not* jut o the peido h eay unih net valalehliaywhn0h shol anb hade over t sim otnttatec patysrepnsb iis0r farl baacd Thea ris is excebae 0ysvrlfcos suha0tepesueta0tehndvrrstito placs o lonsto defulttermnaton dtes Thscnb nisewer otatri ed tohadoe bu-i prvne 0rmson uni0h ethldyad sarsl,ht h lonsto temnto dae*nte ikfco t0o to str oprtos Autoit eocto aragmnt,adITisalainad0etn procsses alloateddurig comuniy us perods IFC0| 2 These risks can and should be mitigated.temniotrgrsdduinlvl, Typically, the right combination of factors adisrnecvrg) would include: * Scheduling handover during the longerPOTCMLINWRK holidays;Oneteshohabenhneovrtee * Giving the contractor some flexibility i fe niseo o opormte"ot to amend the construction timetable;copeinwrk.Tscarfrptnily * Incorporating reasonable "slack in the construction timetable; andars.hesltofrteeps-cmein * Negotiating adaptable interface and e resolution arrangements among allanimotneothprvsnofduto. involved in the handover process. Hwvr sust osdricue PHASING -Tepootoaiyo h uhrt' Further complications can arise where an(ie,trnao,sepn,ducos) Authority wishes to move into a school in stages, -Tetigrdt o h eidgvnt h or procures a number of facilities under onecotaorocmpeeh wksan agreement. Authorities should be cognizant of and structure around issues such as: Magigdlyinhdngoe STermination risks created by maintenances subcontractor default during the construction patn etitos phase (particularly given the likelihood of limited maintenance subcontractor liability OEAIN caps); Dmg n adls SHow defaults/termination triggers are applied and calibrated at one school and across all of the schools (i.e., can performance failure at thtrletodmganvnais.Aocig one school result in possible termination of repniltyfrdmgorvdasmcud the entire project?); and b i hlrn eces rtelclcmu * Changes to the contractual mechanics and associated arrangements required as schools eneigteshowtouprmsoncnba are~ ~ ~ ~~~~~~~~~n haddoe icuigwt epc o tikinsuo race covers age). al tu we POS T-OMLEIO W Once tc s b isofe a0sseofhw0o rgrmth pot copein*oks hscnrfeAoetal totedmlto of th ol scol layin **h 0ootonlt ofteAthrt' * aagn deay inhnigoe plyn ils tc,gvnsaoa planting retitos OPERAT OS *S Damgean vadais Th*peain fascolcraeSuiu Sse tht elt todmg anadaim Allctn repniilt o dmg r adlsmcue by() hlde,tecer,orteloa cmu niy(rsn5it-emsin; n i)ayn enteringthe schol withut permssincnb trcy5ie5odrw Thsi atclalrewe ar hade ove (icudn wit respett 2PCOGHSHAK * thme contractor has complied with1 its obligations and is not at fault. It is important that each party's respon- sibilities are fairly balanced. In particu- lar, thought should be given to: * Whether responsibility for damage/ vandalism is to be allocated by reference to areas of "control"; * How damage/vandalism is distin- guished from "fair wear and tear"; * Which party has the burden of proving responsibility for the damage/vandalism; II * Which assets fall within the damage/ vandalism risk profile; and * The adequacy of the standard project insurances in respect of vandalism risks. M Ashurst LLP is a market leader in the PPP education market, having closed over 80 education PP'Ps acting for the public and private sector with a capital value of'over $9 billion. This has included working on projects in Australia, Egypt, France, Ireland, the U.K, and Singapore. Photo (D miggslives IFC |27 Brazil's early education PPPs expand access to learning 28 1 IFC.ORG/HANDSHAKE INFRASTRUCTURE Belo Horizonte, one of the largest cities in Brazil,, has made early cites n Bazi,,hasmad ealyMarcello Faulhaber Afonso Ce/so Renan education a priority in an effort Barbosa to improve the long-term compet- Why is childhood education itiveness of its workforce and sup- in Brazil such a priority? port the national government's policy goals. With IFC's assistance, In Brazil, childhood education is very it turned to private sector fund- important due to our sociocultural in situation. Many women in Brazil in9 n xets oepn n become mothers at a young age, so by strengthen its preschool and pri- promoting education for children, we mary school system. The conces- can simultaneously ensure that mothers sion-Brazil's first public-private are better prepared for life and work. partnership (PPP) in the education sector-was awarded in July 2012. The partnership will expand access Horizonte schools PPP was to early education in Belo Hori- so successful? zonte, reaching 18,000 additional We believe our PPP was very well children and creating new jobs in designed. First, we started with an the education sector. existing project that already had achieved good results and was well In the following joint interview, accepted by the public. This acceptance Afonso Celso Renan Barbosa, gave rise to the increasing demand from interim Education Secretary for the city. As the PPP allows us to imple- ment several projects within a very short Belo Horizonte, and Marcello timeframe, it will allow us to fulfill Faulhaber, Development Secretary the demand we are experiencing. In for Belo Horizonte, share their addition, the PPP frees the municipal- lessons from the project. ity from having to handle dayto-day school management, allowing us more Interview by TomWas Anker time to focus on educational policy. continued on p. 31 The municipality of Belo Horizonte, the capital As lead advisor to the municipality, IFC explored of the Brazilian state of Minas Gerais, has made ways that this private sector participation could early education a top priority. Until recently, help advance Belo Horizonte's early education there was a critical gap in access to education, system, and what mechanisms could be used. with over 11,000 children (many underprivi- Because there was no history of public-private leged) on a waiting list to enroll in school. In partnerships (PPPs) in Brazil's educational solving the problem, the municipality adopted a system, IFC used examples from other countries long-term approach, operating under the belief to develop a detailed model, demonstrating how that a strong educational foundation is necessary a well-designed PPP could help the municipality to improve the competitiveness of the workforce meet its objectives. in a growing region. This fit within the agenda of Brazil's federal government, which has made NEW SCH00LS, DELIVERED strengthening education a primary objective. IFC proposed a 20-year concession to finance, By p educationfo build, equip, and operate non-pedagogical children, services for 32 new preschools and five primary ensure that mothers are better schools. Compared to the traditional procure- ment process, private sector involvement Will prepared significantly shorten the time required to build and launch these new schools. The new units will be delivered within two years of signing, which is But the municipality's efforts were hampered a record in construction procurement timing by by technical and financial limitations. It faced governments. Primary schools will then become a shortage of school buildings and had the operational about one year after that. resources to meet only about 35 percent of Under the terms of the concession, the munici- demand. It also lacked the resources to man- pality is required to provide sites for the facilities age procurement of construction services and while the private sector partner is responsible manage the non-pedagogical services of new for the construction and operation of non-ped- schools. To address these issues, Belo Horizonte agogical services, such as cleaning, surveillance, decided to explore options for the private sector laundry, maintenance, and utilities management. to expand and strengthen its early education This approach improves overall administrative system. efficiency by consolidating these services under 30 s IFC.ORG/HANDSHAKE a single provider. This also enables the directors continuedfromp. 29 of the schools to focus on teaching rather than managing multiple vendors. Why is this new approach The private partner was selected through a important? competitive bidding process. Its services will be Maintenance and administrative duties measured according to a set of performance and availability indicators which will then be assessed by an independent verifier. ral burdens today, and this administra- tive burden distracts school principals RESULTSfrom their main responsibility. RESULTS * Provides for the construction and opera- How would you advise other tion of non-pedagogical services for 37 new municipalities that would schools (32 preschools and five primary like to initiate similar PPPs in schools) in less time and at a lower cost. * Over 18,000 children from low-income areas of the municipality will be able to attend - Be sure that you have the right kindergarten and elementary school. political arrangement and support * Mobilizes $80 million in private sector investment. - Make partnerships with good * Offers tremendous replication potential in azian seeh en ank. other states and municipalities of the country, thereby supporting the overarching educa- - Have a department responsible for tional goals of Brazil's federal government. LJ PPPs in your government directly linked to the mayor. W Involve a variety of government departments in the development of the project (for example, legal, finance, civil works, and education). c Set up appropriate guarantees for the project before signing the partner- ship contract. s r 1FC 1 31 Roof-mounted P cooler, save energy, solar panels turn adpoieafle sunlight into anfostrwae alternative rn f MEN energy source for the Moms school. sWn Soures:Thecentr fr Geen chols ndGheeU.nGeenBoilingaoecil Skylights and large windows allow daylight to stream in, reducing energy costs and improving student concentration and performance. Sources: The Center for Green Schools and the US. Green Building Council 32 | IFC.ORG/HANDSHAKE INFRASTRUCTURE WATER EFFICIENCY ENERGY EFFICIENT LIGHTING Low-flow sinks, waterless urinals, Adding remote sensors, individual and dual-flush toilets reduce total controls, and task lighting can water use by as much as 50 percent. greatly reduce electricity costs. Green schools use less energy and emit less CO2 than conventionally designed schools. On average, green schools save $1 0,000 33% less (average) per year on operating expenses. P#% RECYCLING SDiverting solid waste from landfills reduces impacts on municipal services. ALTERNATIVE TRANSPORT Alternative-fuel buses reduce CO2 emissions and decrease smog and ground level ozone. Bike racks, safe bike paths, and sidewalks encourage an active lifestyle and decrease emissions. IFC | 33 %~ Nk reurdw er fbsi dcto einn in 076 anadtinl27 ilo . lssomse r a tw-ya peio .- D- 9 9 D - 99 -. 9~ 9iM Photo (D Moyer Photos IF A T U T R INFRASTRUCTURE The Philippines faces significant shortages of school inputs, including teachers, classrooms, textbooks, and chairs. In June 2010, it was estimated that the Philippines was short more than 66,000 classrooms, and the shortfall has likely increased since then. Not surprisingly, class sizes are large, and many schools operate double shifts. In some cases, one set of students attends school on Mondays, Wednesdays, and Fridays, and another set attends on Tuesdays and Thursdays. Absent any action, classroom shortages will become more acute when the government introduces the senior secondary component of its flagship K to 12 (kindergarten to twelfth grade) agenda beginning in school year 2016. One of the key planks of that policy is the addition of two years of senior secondary school (grades 11 and 12) on top of its existing 10 years of basic education. The Department of Educa- tion (DepED) estimates that the introduction of this policy will mean an additional 2.7 million students in the school system (2 million from public junior secondary schools and 0.7 million students from private junior secondary schools). IFC 35 ACCOMMODATING from the PPP Center of the Philippines. In early ADDITIONALOctober2012, DepED signed agreements with ADDIIONA MILIONStwo consortia for the first phase of the PSIR The The government has identified a variety of pos- next phase will involve 10,600 classrooms cover- sible responses to the challenges posed by the K ing remaining shortages in Luzon, Visayas, and to 12 agenda. While the official policy response Mindanao. is still being developed, it is expected that incoming students from public junior second- PPPs IN THE PHILIPPINES ary schools will be accommodated through a combination of subsidized enrollments in private senior secondary schools and tertiary education non-infrastructure forms of PPP, such as con- institutions, and through increased numbers of tracting for the delivery of education services. students in state schools. The country's Education Service Contracting Accommodating these new students in state pays private schools to enroll students at public schools will require a significant school building expense to reduce state school overcrowding, has program-particularly because it comes on top been in operation since 1987. of the infrastructure requirements to address existing shortages. The government has taken its first steps toward addressing the existing class- room shortage using a public-private partnership Although PPPS are not a panacea, (PPP) procurement modality-the PPP for they can play a key role in improv- School Infrastructure Project (PSIP), which aims ing infrastructure in the Asia and to build up to 20,000 classrooms over a two-year period. The PSIP is intended to complement DepED's existing classroom construction initiatives, and involves the design, financing, construction, The Philippines was one of the first developing and maintenance of more than 9,000 one- and countries with a Build-Operate-and-Transfer two-story classrooms, including furniture and (BOT) Law and a dedicated BOT Center. fixtures, at locations in three DepED regions. Despite some early achievements in the power The PPP involves the use of a build-lease- sector, progress subsequently lagged due to weak transfer concession model and is projected to PPP governance and an increase in unsolicited cost approximately $400 million. DepED is the proposals. The advent of the Benigno Aquino implementing agency for the PSIP, with support administration in 2010 provided new impetus 36PP IFC.ORG/HANDSHAKE for implementation of infrastructure PPPs, and preparation of pre-feasibility, feasibility stud- the usefulness of these PPPs has since broadened ies, bidding documents, draft contracts, and to other sectors, including health and education. assistance to government agencies in the bidding One result is that the government has taken process. The PDMF provided funding for the steps to revitalize and transform the former BOT successful bid of the PSIP project to the private Center into the PPP Center of the Philippines. sector in October 2012. A NEW C HAPTER FOR The Philippines has been a leader ASIAN PPPs in the use of non-infrastructure PPPs are garnering increased interest within forms of PPPR such as contract- the ADB, driven in part by Asia's significant ing for the delivery of education infrastructure backlog and the organizations services. focus on private sector development and private sector operations as a driver of change in its long-term strategic framework. Although PPPs are not a panacea, they can play a key role in To support the introduction of the K to 12 improving infrastructure in the Asia and Pacific agenda, the Asian Development Bank (ADB) region. Increased demand for access to quality is working with the government to prepare an education and training eases the way for private education improvement program. The program investment, particularly through the use of is examining the use of infrastructure PPPs for infrastructure PPPs. There are many reasons for the construction of senior secondary schools, as this, including the relative stability of demand in well as the use of innovative mechanisms for the the sector, the less complex nature of the sec- finance and delivery of senior secondary school- tor compared to others, and the less extensive ing (including private sector delivery). The ADB, project safeguard issues that arise in education along with the government of Australia and the projects compared to others, such as transport. government of Canada, has provided technical Infrastructure PPPs in the education and train- assistance to support the strengthening of the ing sector can help meet rapidly growing school PPP Center of the Philippines. infrastructure requirements, create better teach- A centerpiece of this program is the Project ing and learning environments, and improve Development and Monitoring Facility (PDMF), maintenance by pre-committing governments an innovative revolving fund facility that to maintaining schools once they are built- provides funding for professional transaction a perennial problem in the education and advisory services for PPP projects, including training sector. it 1FC 1 37 bh b _j ac a charter for a change Approaches to charter schools differ, but goals are the same x+Y=Z 0 44 2 1\ P=2a+2b 38 W IC.ORG/HANDSHAKE Cll .a+ b -6 -4 -2 2 4 6* 246 -2 - SERVICES -4- x OW f(x)= - +5 P = 2a 3 P=2a+2b c ba a' b s a0 C . s o i th U A e S s (i l t "fre s s" 0 0 9040 e. 40 . 9 00 009 0 g 0 . e- g g -00a g * 0 - 0g - - *4 0 8 - .me. . - * . *0-~ * 0 00S . " 4- . 9 . " in . - .m) ar e m wi -poce to p Z or~ madae teo deie edcto to pulil fude stdets 0 hate and sttue tha appl to ote puli scoos Inted chre schol are40 4 . * 0 0 9 . A. .4 * 0 e. . . . 0 4 * 0 A .. . 0 . " " 49 * * - 9 . 9 9 * 9 B " * . * -0 0 . - 00 -. - .4 4 * 0 9 0 S * expecte to 0-mdu e ti reuls se fot in. ac scol'hatr Illustration @ Mustafa Hacalakilistockphoto IFC | 39 � в � �� `ч INTERVIEW Michelle Rhee is Founder and CEO of StudentsFirst, a grassroots movement designed to mobilizeparents, teachers, students, administrators, and citizens throughout the United States, and to channel their energy to produce meanin& ful results on both the local and national levels. She waspreviously Chancellor of the District of Columbia Public Schools, a school district serving more than 47, 000 students in 123 schools. 0 0 ?D 1jy inPractice 1FC 141 What has defined the success What hurdles has the charter school of the movement in the United movement had to overcome, and States to include the private what are the biggest continuing sector in public education challenges? through charter schools? /////////////////////////////////////////////////// Among the major hurdles public charter schools Public charter schools employ two principles encounter are various state laws restricting commonly found in the private sector, alternative public schools' options. Recently, accountability and innovation. These two voters in Washington State approved a ballot principles, when used correctly, can produce measure allowing for public charter schools. successful schools and high levels of student However, there are still eight states that do not achievement. In fact, a just-released study by allow public charter schools at all. In other a Stanford University research center shows states, caps exist on the number of public charter students in New Jersey's public charter schools schools that can operate. Rather than focusing experienced greater learning gains than those on the number of charters, states should remove in comparable district schools. Public charter arbitrary caps and create a system with clear schools typically have much more flexibility accountability provisions to ensure that the char- to try new educational approaches than ters that exist, that all schools for that matter, are traditional district schools and often serve as serving students well. models of innovation. With the added flex- Charter schools generally also have to overcome ibility must come accountability standards to hurdles in many states and districts related assure all schools are providing kids with the to funding and facilities. Most public charter best education possible. schools report that they don't receive funding to cover the cost of securing and maintaining I chrterschool buildings and thus must stretch their Successful operational funds to cover facilities as well, schools demonstrate unlike traditional public schools. Also, right thenow, some states fail to ensure that charter the pssiblitis ofschools receive their fair share of student fund- public education and ing. Rather, local districts and charter school provide a road map for authorizers are permitted to retain a percentage of these funds-taking money away from the scaling up the most classroom. Policymakers must work to ensure successful strategies. ~) we have equitable per-pupil funding for public charter school students. 42 I FC.ORG/HANDSHAKE Charter schools are innovative in part because they have the flexibility to respond to the needs of the com- munity they serve. This flexibility seems to be an important com- ponent of the paradigm .. shift in education that's taking place. What other ways do charter schools contribute to the paradigm shift in education? Successful charter schools are showing what is possible in public education and providing a potential road map for scal- ing up what works. Public charter schools are showing that it is possible to deliver a great public education to students in some of the most challenging environments by establishing a culture of high expectations and delivering great instruction. Charters tend to place a great emphasis on recognizing, rewarding, and retaining excellent teachers and r t c ..... principals. Many charter schools are also taking the lead in integrating digital learning into the curriculum. However, this autonomy also must come with accountability for results-as it should for all schools receiving public funds. LD 1,2,3 THREE CHARTER SCHOOL APPROACHES THAT PASS THE TEST KIPP: The Knowledge is Power Program (KIPP) is America's largest network of charter schools. It operates a nation- wide network of free open- enrollment college preparatory schools in under-resourced communities, usually estab- lished under state charter p school laws. . Harlem Children's Zone: A non-profit organization for poor children and families liv- ing in the New York City com- munity of Harlem, providing free support for the children and families in the form of par- enting workshops, a preschool Emily Lawson isfounder ofDC program, three public charter Prep, the highest-performing schools, and child-oriented Charter Management Organiza- health programs for thousands tion in Washington, D.C Since of children and families. 2003, DCPrep's mission has DC Pre: Washngton,D.C.'sbeen to bridge the educational itPE DC Prep: Washington, D.C.'s D' C NO PREP highest-performing Charter divide in the nation's capital tmnl a'shoii i Management Organization, by increasing the number of with a network of preschool studentsfrom underserved to eighth grade campuses and m itie with the academic a record of achievement. aton n personal char- Cte o succeed in competitive high schook and colleges. 441| IFC.ORG/HANDSHAKE Prepping neighborhoods What's your adv ce on the best Did you approach these way to conduct community out- community organizations reach from the time a charter with a set idea and plan school is first proposed? already in place? In a highly "charterized" urban area like Wash- You need to have enough of a guiding vision and ington, D.C., parents have many choices when mission for people to react to, but also want to it comes to where to send their child to school have flexibility or room for customization at the every day. In this kind of environment, it's criti- same time. Ultimately, you want to be able to cal for key people in any new charter school to ask people authentically for their input, and be spend a lot of time in their campus' surrounding able to implement it. I don't think you should neighborhood. When DC Prep was still just an ask for input if you're not willing to take it. It's a idea, my core team and I would go door-to-door give and take, but the key is frequent and open to the various organizations headquartered in communication with key community-based the neighborhood around our flagship school to stakeholders. forge relationships with community leaders and better understand residents' perception of the need and receptivity to a school like ours. Yout need tohveeogho giin iio n How did you approach individual to tailor key ideas for specific stakeholders I was citizens in the neighborhood? talking to at any given time. DC Prep has always found success with grass- roots outreach in the community around each of our campuses-including grocery stores. When were successful? DC Prep was opening up, I spent a lot of time Early on, we went door-to-door in residential outside of neighborhood grocery stores. I even neighborhoods dropping off flyers and infor- had my own folding chair! I talked to people as mation, and also did direct mail campaigns in they walked in or out, asking if they had a child who was the right age level for our school. This Throughout DC Prep's history, we have always sort of 1:1 contact with individuals is incredibly engaged in a broad array of marketing tactics instructive-in many ways it provides a de facto that were the right fit for D.C. Every city will "focus group" of sorts, canvassing a representa- require a different kind of outreach, tailored tive sample of the community, gauging interest to the families there, and it's important for a and a parent's receptivity to enroll their child in a charter organizer to spend time figuring out new school. To this day-a decade after open- what kind of outreach best suits their school ing our first campus-DC Prep still engages in and community needs. this "high-touch" form of grassroots outreach in our surrounding neighborhoods. It's something we've always deeply believed in, and found to There's often a philosophical be immensely helpful in getting the word out, disagreement over private admitting new students, meeting key members of the neighborhood, and staying in touch with the general pulse of our campus' surrounding Did your community outreach help communities. you when you faced the inevitable opposition? What did you learn from Since our inception, we have always had a strong approaching people and groups to group of core supporters - from prominent present the idea for DC Prep? community leaders, to local foundations and nonprofits, to committed, happy parents willing Starting a charter school is a little like a political to speak out on our behalf When faced with campaign; you need to keep your audience in any opposition, we could go back to our sup- mind. A foundation representative is more inter- porters and get a read on the situation and how ested in hearing about different aspects of the serious it was. Our governance structure helped school than a parents' group. I quickly learned us navigate these sorts of challenges as well. In 461I IFC.ORG/HANDSHAKE addition to our very active Board of Directors, I set up different advisory groups, such as a teachers' advisory group, which was comprised of volunteers with experience in a particular area. These experts were available to me whenever challenges arose, and were able to credibly speak F i th U K out on behalf of DC Prep. What are the three lessons you t wa l p n i ore learned from this process that i are important for someone who g F S s would like to set up a charter g school? e a e c In looking back on DC Prep's history, I firmly h believe that strong governance and a financial p t n r for foundation is critical, but not enough. You have c to attract and retain great educators, who are t ma adept at teaching challenging academics, while also building strong social skill development in Fe So a a students. MD p i t U go Frgemadfraraie scho ols Emily Lawsonth e an udr.TefrtFree Schools aealaiiysae topwhat localppeople need,inuorder mots afe th U.K Seceayo SaRto impo educa fo chidre invthei romunity.mThrough iter government-fundedupFre schools pro- ect experbotts can ope Schools t tadreneal dend wipthine an0ar. TeU.K. EARtmn OFoEdctn FREE SCHOOLS ar4 eatvl De pheomno inteUie Kigdm ope inSptme 21,jst1 U onth S ECRR thO.F ertayo FREE SECHOOLS O 48 | IFC.ORG/HANDSHAKE -NTERV-EW 團離驪劉 Making American schools competitive globally isa primary goal of the U.S.Department of Education& and you mentioned in a recent blog chat that we have to Iook at high一performing countries Iike Fin- Iand and Singapore for new ideas on what works. What models have you seen operating successfully outside of the U.S.that should be adapted by AmeriCan SCh00-S? In the current global,knowledge econom&AI11erica&s educations&tem has stagnated iust as a world一class education has become more essential than ever to individual success and national prosperity. We are in the middle of the pack in international comparisons.Our country has to move beyond complacenc又Thanks to strong leadershiP from state and local officials nationwide,a powerful movement to dramatically accelerate achievement and attainment in the U.S.ist山ng hold in districts,schools,and homes across the countr舛 IFC-49 Looking to best practices, not just in the U.S. performing countries. We could really use more but from around the world, has played an of that here in the U.S. important role in guiding federal efforts to When you look at where education has changed advance achievement and invest resources. For over recent years with Race to the Top, our the last two years, our Department has gathered ESEA Flexibility program, and our RESPECT education ministers, labor leaders, and educators proposal, you see most of the country is mov- from around the world to share effective ideas ing in those directions. We still have a long way and lessons learned about how to strengthen the to go to close achievement gaps and before our teaching profession. I've learned a lot from them. schools ensure that every child has a world-class In fact, their input has led our Department to education. But I am tremendously hopeful that gather insight from teachers nationwide, and many of the reforms underway today have the directly resulted in our RESPECT project. potential to help children excel and our country It is important to recognize that no two nations prosper for decades to come. are the same. 1here is no single recipe for creating a high-performing education system When you talk about the future that will work across every culture and type of government. But it is also true that there are of charter schools, you often say some consistent, core principles across high- that " " What sorts of industry performing countries-college and career-ready and government partnerships can academic standards; collaborative partnerships lead to more successful coordina- among elementary, secondary, and postsecond- ary schools and with industry; a rigorous bar tion between charters and school to entry for teachers and principals paired with districts? high-quality professional development; and treating teachers and school leaders with respect, When the charter movement began 20 years ago, as skilled professionals. charter school proponents promised a set of dis- For instance, Finland rigorously recruits and tinctive features: they would perform better than reviews only the best candidates for its teaching traditional schools, they would be more account- force. In South Korea, educators are referred to able, they would be cheaper, and the innovations as "nation builders." Singapore's teachers receive and discoveries along each of these dimensions- a minimum of 100 hours of professional devel- quality, accountability, and cost-would transfer opment a year. In general, teachers tend to be back into the traditional public school system. more respected, better supported in advancing Thus far, charter schools have only partially their work, and better compensated in high- delivered on these promises. Charter authoriz- ers have been too slow to close failing charter schools and they haven t done enough yet to 50 1 IFC.ORG/HANDSHAKE Looking to best practices, not just in the U.S. performing countries. We could really use more but from around the world, has played an of that here in the U.S. important role in guiding federal efforts to When you look at where education has changed advance achievement and invest resources. For over recent years with Race to the Top, our the last two years, our Department has gathered ESEA Flexibili1y program, and our RESPECT education ministers, labor leaders, and educators proposal, you see most of the country is mov- from around the world to share effective ideas ing in those directions. We still have a long way and lessons learned about how to strengthen the to go to close achievement gaps and before our teaching profession. I've learned a lot from them. schools ensure that every child has a world-class In fact, their input has led our Department to education. But I am tremendously hopeful that gather insight from teachers nationwide, and many of the reforms underway today have the directly resulted in our RESPECT project. potential to help children excel and our country It is important to recognize that no two nations prosper for decades to come. are the same. There is no single recipe for creating a high-performing education system that will work across every culture and type of government. But it is also true that there are of charter schools, you often say some consistent, core principles across high- that "good charter schools are performing countries-college and career-ready part of the solution, bad charter academic standards; collaborative partnerships among elementary, secondary, and postsecond- schools are part of the problem." ary schools and with industry; a rigorous bar What sorts of industry and gov- to entry for teachers and principals paired with emnment partnerships can lead high-quality professional development; and to more successful coordination treating teachers and school leaders with respect, as skilled professionals. For instance, Finland rigorously recruits and districts? reviews only the best candidates for its teaching When the charter movement began 20 years ago, force. In South Korea, educators are referred to charter school proponents promised a set of dis- as "nation builders." Singapore's teachers receive tinctive features: they would perform better than a minimum of 100 hours of professional devel- traditional schools, they would be more account- opment a year. In general, teachers tend to be able, they would be cheaper, and the innovations more respected, better supported in advancing and discoveries along each of these dimensions- their work, and better compensated in high- quality, accountability, and cost-would transfer back into the traditional public school system. 501I IFC.ORG/HANDSHAKE Thus far, charter schools have only partially Research Projects Agency was created in response delivered on these promises. Charter authoriz- to the launch of Sputnik, the federal government ers have been too slow to close failing charter has played an active role in fostering innovation schools and they haven't done enough yet to by pursuing revolutionary research and develop- share successful practices with traditional public ment in areas ranging from defense to medicine schools. Too many district leaders have seen to energy. The Internet, GPS, the Human charters only as competitors. And too many Genome, and many other path-breaking innova- charter school operators have only seen district tions stemming from government research have schools as bureaucrats to avoid. I'm pleased to see forever changed their fields-and sometimes, that the Gates Foundation recently recognized the world. Yet we haven't yet seen that kind of and awarded several grants to explore project focused, ambitious, revolutionary pursuit in development by district and charter school education. partners in Boston, Mass., Denver, Colo., Hart- That is why our Department has proposed to ford, Conn., New Orleans, La., New York City, work with Congress to create an ARPA-ED Philadelphia, Pa., and Spring Branch, Texas. program. It will complement our traditional Fostering more collaborative partnerships can research efforts, push frontiers of learning science generate important school innovations that can and technology that could result in break- be leading examples for other states and districts throughs to help raise student performance, and by changing the lives of our neediest children. close achievement gaps. In America, education Government and non-profit leaders should do must be the great equalizer. M more to break down barriers between district and charter schools by bringing together leaders Arne Duncan from both public school sectors to develop and drive forward policies and practices that benefit all students. What is the role of government in supporting the next stage of education via ARPA-Ed? It's a myth that government has no role in Americads innovation and technological leader- ship. In fact, government investment has had a tremendous impact on leadership and economic_ growth. Since at least 1958, when the Advanced Photo i House Committee on Education and the Workforce Democrat 1FC 151 share successful practices with traditional public ment in areas ranging from defense to medicine schools. Too many district leaders have seen to energy. The Internet, GPS, the Human charters only as competitors. And too many Genome, and many other path-breaking innova- charter school operators have only seen district tions stemming from government research have schools as bureaucrats to avoid. I'm pleased to see forever changed their fields-and sometimes, that the Gates Foundation recently recognized the world. Yet we haven't yet seen that kind of and awarded several grants to explore project focused, ambitious, revolutionary pursuit in development by district and charter school education. partners in Boston, Mass., Denver, Colo., Hart- That is why our Department has proposed to ford, Conn., New Orleans, La., New York City, work with Congress to create an ARPA-ED Philadelphia, Pa., and Spring Branch, Texas. program. It will complement our traditional Fostering more collaborative partnerships can research efforts, push frontiers of learning science generate important school innovations that can and technology that could result in break- be leading examples for other states and districts throughs to help raise student performance, and by changing the lives of our neediest children. close achievement gaps. In America, education Government and non-profit leaders should do must be the great equalizer. U more to break down barriers between district and charter schools by bringing together leaders from both public school sectors to develop and drive forward policies and practices that benefit all students. Arne Duncan What is the role of government in supporting the next stage of education via ARPA-Ed? It's a myth that government has no role in America's innovation and technological leader- ship. In fact, government investment has had a tremendous impact on leadership and economic growth. Since at least 1958, when the Advanced Research Projects Agency was created in response to the launch of Sputnik, the federal government has played an active role in fostering innovation by pursuing revolutionary research and develop- Photo House Committee on Education and the Workforce Democrats 1FC 151 Vouchingfor the future How school vouchers improve education In theory, school vouchers increase competition in the school system, giving all students the opportunity to choose the best learning environ- ment. A look at voucher programs around the world reveals results. By Harry Anthony Patrinos As the demand for education increases, resources Advocates of the voucher system believe that remain scarce. In most countries, the govern- competition will lead to efficiency gains, as ment is both the major financier as well as the schools-public and private-vie for students provider of education. However, schooling still and try improving quality while reducing does not reach all members of society equally. expenses. The idea is that when private schools One way of financing education is to provide are encouraged to attract students, they become families with the funding via cash transfers to innovative and thereby bring improvements to schools based on enrollments, or by providing the learning process. Likewise, public schools, to cash to families to purchase schooling. These are attract students and the resources that come with known as vouchers. them, seek to improve themselves to provide an The objective of a voucher program is to extend education on par with the private schools. the government's financial support to any educa- On the other hand, opponents believe that tion provider and thus give all parents, regardless under a voucher system, private providers will be of income, the opportunity to choose the school unaccountable to taxpayers and the public. They that best suits their preferences. School choice question claims of efficiency gains. They assert via vouchers is often promoted as a means of that choice will lead to privatization, less public increasing competition in the school system. control of education, and increased segregation. 52 1 IFC.ORG/HANDSHAKE SERVICES While all these concerns need to be taken into The municipal authorities also fund student consideration, the decision on how to finance attendance at subsidized private schools, which education should be based on evidence. parents can choose. While test scores are similar in both public and private schools, after control- TARGETED VS UNIVERSAL ling for socioeconomic status, unit costs are VOUCHERSlower in subsidized private schools. VOUCHERSResearch on Chile's voucher program has been Colombia has a targeted voucher system. The subject to a high level of scrutiny. Though there Program for the Expansion of Secondary Educa- are no randomized trials or rigorous impact tion Coverage (PACES) was launched in 1991 evaluations, research results have been varied to provide the poorest third of the country's but trend positive. population access to secondary education. The The Netherlands is another country which program was oversubscribed, so students selected illustrates the effectiveness of vouchers. Seventy by a lottery were provided with vouchers to attend private schools. Municipal governments financed private schools. On average, these provided 20 percent of the funding for PACES; students tend to be from families which belong the federal government provided the remainder. to a lower socioeconomic class when compared The program, which ran until 1997, covered to pupils attending public school, and yet test 125,000 children in 216 municipalities. The unit scores achieved are higher. The level of choice cost per student for participating private schools offered, alongside fixed funding from the govern- was 40 percent lower than for non-participating ment per student (with additional funding for private schools. The lottery allocation provided disadvantaged students) appears to provide researchers with a natural experiment. Findings incentives for Dutch schools to keep improving. from the analysis showed that voucher beneficia- At the same time, given the need for schools to ries have higher educational attainment. When compete for students by demonstrating success, compared with non-voucher students, voucher there's no evidence of grade inflation. students were 6 percent less likely to repeat a These examples demonstrate that vouchers have grade; they scored 0.2 standard deviations higher the potential to help countries improve their on achievement tests and they were 20 percent education systems. But they do so within a con- more likely to take the college entrance exam. They were also less likely to be married and how they work, if they work, and for whom earned more in wages. they work. U Chile's universal voucher program has been active since 1980. Every municipality receives individualizedEducation Systems"published on the Opinions section of the number of students attending class in its schools. World Innovation Summitfor Education (WISE) website. 1FC 153 . . . . . . . . . . ......... 4C .... ..... aelLatha Sarva Shiksha Abhiyan (SSA), India's flagship basic education pro- gram for children six to 11 years old, has brought over 60 million additional children into school in the last decade-expansion at a scale and pace unprecedented in any other country While the physical challenges of access seem to have been largely overcome, data indicates the twin challenges of high dropout rates and low levels of learning have yet to be addressed. Concurrent with the expansion of government schooling has been a dramatic expan- sion of low fee private schools and an associated migration of students from the state to non-state sector Gyan Shala, one of these non-state programs, has proven especially effective. A recent study funded by UKaid from the since 2011. It has garnered special attention United Kingdom's Department for International because its quality educational offerings have Development has focused attention on Indias been verified by a variety of external assessments, innovative non-state education program, Gyan including from MIT/Pratham, Education Shala, which opened its first school in 2001. Initiatives, and CfT Education. Gyan Shala offers low-cost basic education to children from very poor backgrounds in urban DOING THE NUMBERS slums in the states of Bihar, Gujarat, and West Bengal. The annual cost for the Gyan Shala program is Gyanapproximately $50 per student at the elementary education to children in the urban slums of Ahmedabad city (Gujarat) since 2002, Patna city costs are lower than the unit cost in government Bihar) since 2008, and Kolkata (West nschools for comparable grade levels. The revenue is collected from three sources: government Gyan Shala program enrollment in Gujarat, Bihar, and West Bengal 2001-2012 Number of students 10,000 5,00 Source: Gyan Shala 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 data 2012 56 | IFC.ORG/HANDSHAKE funding under SSA, contributions from donors, and user fees of approximately $3 per month. STUDENT BACKGROUND An assessment of the catchment background of the users of the program in Bihar ascertained that 60 percent of the families are based in a nuclear family setting, with 47 percent having six or more members in the family. Seventy-two percent of the males are daily wage laborers with earnings of $3 per day, and 56 percent of the males and 31 percent of the females were literate. However, only 3 percent and 2 percent of the TRADITIONAL NUCLEAR FAMILY males and females respectively had progressed beyond secondary education. Interestingly- given the urban slum location-96 percent of SIX 47I E the population were permanent settlers in the area and 57 percent owned their home. FOUR FEATURES FATHERS WHO ARE DAI There are four key features to the Gyan Shala EAR S I2 model of education design and delivery: Distributed classes model. A distribution system akin to "ripples in a pond." The design team T and the field supervisors ensure that there is ATE FATHERS standardization of the curriculum across all the centers and minimal, uniform standards of per- formance in a geographically distributed class set that is located close to the homes of the students + and their teachers.f LTREMOHS 3 1 Re-engineered teacher role. Education delivery that is built on elements that are highly stan- dardized, broken down into units, and divided 1FC 157 into per day lesson plans. This may be delivered PROMISING FINDINGS within the classroom by less qualified person- nel who are in turn supported in an integrated Some common tre emerge fo thy manner by a design and management team that Shala g thatiae paiculay noterthy creates curriculum, takes feedback from teach- GyansShata is flexible in incorporin n ers on this curriculum design on a weekly basis, the sense that a Shala will be set up only if the and teaches classes to train the teachers through community wishes to set up a center. Further, demonstration. demostraion.the community is encouraged to suggest suitable candidates from within who could teach in these centers. These "para-teachers" graduate from a This program is effective in customized training program that involves basic reaching over 25,000 children content and pedagogy modules, and they are from poor and vulnerable rigorously supported by a senior team providing urban and rural families, and on-site, continuous follow-up training. Finally, and perhaps most critically, since these para- is replicable on a mass scale. teachers are selected from within the community and regularly monitored and supported by the central team, they have much more direct accountability to their clients and beneficiaries as Continuous curriculum design adaptation. well as to their employers. A design pedagogy in which the design team constantly creates and/or modifies a curriculum T he o ce deosrt hat this that responds to the local context in conformity pror as raoer 25,00 chile fo with state and national curriculum norms, while pa able uran and rura es is incorporating elements of curriculum design rpicabte ona ass slea op within from the best-in-class global curricula. uno tt aregbelow or w Learning development culture. A culture that is structured to support the strategy of using relatively less educated staff (ensuring affordabil- ity and low cost) who deliver quality education outcomes through an ongoing support system composed of high-caliber, highly qualified staff elsewhere. 58 P IFC.ORG/HANDSHAKE CONTINUING CONSIDERATIONS This study was a preliminary effort to review over free schooling, even when they four overarching questions worthy of further have very little disposable income? research: 3. Without reengineering the mode of 1. Without a subsidy or a possible PPP delivery, is it possible for the private or arrangement, is it possible for a private public provider to deliver quality edu- education provider to deliver quality cation that meets the particular physical education based only on fee collec- and social needs of these clients? tion from the lowest socioeconomic 4. To what extent does the regulatory quintile? environment impact upon this signifi- 2. To what extent are very poor parents cant consumer choice for the poor? prepared to choose low-cost schooling public p to d e a u caio tatmetsth prtcuarPysca for Ithe po THE MODEL IN ACTION Omega Schools was founded An all-inclusive, daily by Ken and Lisa Donkoh fee payment system and James Tooley as a social with no hidden costs. benefit for families in Ghana. _______________It improves the quality of andande tends accessNZoQ.4 Ato education to needy policrtatinsurnes families at the lowest cost. policy that ensures every child can com- plete their schooling. IfMIfMgrown to 20 schools and 11,000 Eft__ Ef students in three years, creating Fifteen free school a "school-in-a-box" model that is days per year. E widely replicable. A nutritious hot lunch each day Within 10 days of opening, and attention to a new a capacit health issues. t yy ________________with 500 students. W Source: Omega Schools 60 IKLFC.ORG/HANDSHAKE SERVICES Girls make up 52 percent of enrollment in Ghana. All pupils are from the lowest two income quintiles. A A partner hardship fund $ * extends access.. . . *0 incoe quntils. ABridge International Academies parter ardsip undoperates a franchise-like net- exteds acesswork of ultra low-cost, for-profit to orphans. private schools, delivering high- quality education for less than $4 per student per month. One father, living in the Kenyan slum of Kibera, 2 mor t summarized it like this: AR a n 'If you go to a market and are offered free fruit and vegetables, you know f g K a h now they'll be rotten. If you e d tK- want fresh produce, you have to pay for it.' O a a b -James Tooley, "Welcome to easy- s a Learn, Class 1," The Times (U.K.) lan fo a e* col aut two 5 a . afte thrst SCHOOL'S OUT i y wJan ary BBC Newsnight broad-han 2,0d e casts on private schools for the poor.gre K-, andernow IFC 1 61 Partnering to bring prosperity to developing economies By Page Schindler Buchanan Government aid, policy reform, and interna- knowledge, critical thinking skills, and leader- tional investment can do wonders for the people ship, business schools are in a unique position in a developing nation, but they can only take to match experienced individuals with the needs an economy so far. A deep pool of talent with of businesses, society and government. Partner- management skills and business know-how is ships with business schools allow governments critical if a country is going to develop the local to find creative ways to foster economic and businesses, organizations, and agencies that social development. create jobs, provide goods, and deliver services. For governments seeking to work with business Business schools, public and private, are a schools to build a talent pool and create a foun- valuable resource for driving economic growth dation for economic prosperity, the following and improving living standards. As educational tips may be helpful. institutions dedicated to teaching practical 62 1 IFC.ORG/HANDSHAKE SERVICES Engage a local business school to deliver entrepreneurship training to complement govern- ment investment in the sector. Use the expertise of business This is what business schools know and do schools to train civil servants every day, and while all entrepreneurs may and government officials in not need a business degree, they can certainly essential skills such as program benefit from practical training and network- management, procurement, ing opportunities provided by business negotiation, and budgeting. schools to support their ideas and ambi- tions. Work with business schools to develop Many of the skills necessary in business are new-or tap into existing-entrepreneurship extremely relevant in the public sector. Work programs to ensure that your support of the with business schools to ensure that your staff sector is as successful as possible. is performing to the best of their ability. Establish new business schools or training centers in partnership with the private sector, with the guidance of faculty experts from leading business schools around the world. By partnering with the private sector and management education professionals, you can ensure that new institutions that you establish will produce employable managers and effective leaders to help drive your economy forward. IFC | 63 Partner with business schools on research initiatives to explore policy impact, new market- based development approaches, supply chain management, and feasibility studies. Business school faculties around the globe are always looking for opportunities to do research that will advance their understanding of management and development impact. By working with them you can capitalize on their rigorous methods and expertise, while improving your own systems and policies. Improve the delivery of social services such as health and education by training staff at all levels, from front-line personnel to sector leadership, to better manage resources and people. It isn't just the top level of management that needs to understand management and business. Outcomes in services can improve immensely when staff is trained in human resources, supply management, budgeting, marketing, and other areas traditionally seen as management territory. III 64 | IFC.ORG/HANDSHAKE Strengthening Small Businesses in Kenya A Project of the Global Business School Network When the Kenyan Ministry of Industry realized it needed to improve the success and growth rates of micro, small, and medium enterprises (MSMEs), officials took a long look at what makes these businesses thrive. The answer? Good management. But to make sure entrepreneurs, and the manag- ers they need to hire, get quality training that is applicable to the local Kenyan market, they needed to build the capacity of their country's institutions to deliver management education. That is where the Global Business School Network (GBSN) got involved. GBSN, a nonprofit organization based in Washington, D.C., helped the government identify three local business schools to establish an initial MSME management training program. GBSN brought in international experts from Columbia Business School (United States), IESE Business School (Spain), and IMD (Switzerland) to mentor Kenyan faculty in developing teaching cases that combined international best practice with local relevance. Through this partnership with business schools, officials trained a cohort of entrepreneurs and managers, and established practical, relevant curriculum and teaching cases for MSME management education that could be delivered throughout the country. Through this partnership, the government found a sustainable way to address the shortage of man- agement talent in Kenya, while strengthening local institutions at the same time. ED The Global Business School Network (www.gbsnonline. org) is a nonprofit organization that addresses the severe shortage of management talent in the developing world by building management education capacity. Harnessing the power of a diverse international network of leading business schools, GBSNfosters networking, knowledge sharing, and collaboration across borders to advance management education that combines international best practice with local relevance. st INNOVATION In little over a decade, digital technologies haveprofoundly changed our lives. They are now starting to do the same for our centuries-old education model, making us question the most basic tenets of learning. From rural Uruguay to the heart of Cambridge, Massachusetts, educational authorities worldwide are rethinking long-held assumptions about how we learn, which skills we need, and why expanding our access to open education matters. Technology makes it possible to topple the four walls of the traditional classroom, and in this section, we present innovative initiatives that are doing just that. In Uruguay, the attempt to bridge the digital divide led to providing all public school students with lap- tops and free Internet access. In North America, inno- vative schools are experimenting with a new blended approach that creates a learning experience focused on the individual needs of each student. And spanning the globe, new MOOCs (massive open online courses) being embraced by over 35 top universities world- wide allow anyone with an Internet connection to participate in classes once limited to a chosen few. MD IFC | 67 WNN NNOVATIO0N T- EXPENSE $50 million per year ($100 per child per year) QUIPMENT XO machines frorn One Laptop Per Child loaded w "Sugar" a Linux-based, ope source operating system. EXEC#r10N Plan CI BAL was publicly funded (including $6 mil- lion in financing from the Inter-American Develop- ment Bank) and managed by LATU (Laboratorio Tecnológico del Uruguay), a partnership between the public and private sectors. Hardware, software, and ser- vices were bid out to private providers. Acces Uruguay's Plan C ridging the digital & social equality divide Documentary: Plan CEIBAL: TEDx Madrid "Every child a laptop" Educational Impact Miguel Brechner (LATU) In 2007, Uruguay's government made Five years and 580,000 laptops later, the plan a bold move towards social equality by resulted in a giant leap in access to technology ensuring access to the Internet for all and equality, its main goal. Prior to CEIBAL, primary and secondary students and computer access in schools was highly limited- teachers in the country. The first only 14 percent of schools had more than five program of its kind in the world, computers and, in those, students had access to the Plan CEIBAL (Conectividad a computer for a mere three hours per month. Educativa de Informdtica Bdsica By contrast, today 100 percent of the students in para elAprendizaje en Linea) was Uruguays public schools (85 percent of Uru- launched under leadership of guays primary and secondary student popula- then-president Tabar6 Vizquez, tion) have their own laptop and 2,300 schools who strongly believes digital have free Wi-Fi networks. literacy is essential to make Furthermore, an independent study published in Uruguay competitive in the El Pais showed that students participating in the twenty-first century. plan achieved the same level of understanding The plan ventured beyond and usage of technology as university graduates, hardware distribution or while also visibly enhancing self-esteem and classroom walls by gifting motivation among children from the poorest the laptops to each child quintile. and encouraging their Although one-on-one computing projects use at home and among in Latin America have not yet demonstrated family members. The improvements in learning outcomes, the initial plan also included the investment in infrastructure has the potential to set up of an Internet transform teaching and learning practices portal and a TV in Uruguay. LD channel. 1FC 1 69 In most of the world, the way children are The methods used by each school vary. Some taught hasn't changed much since the introduc- combine online learning of basic skills with a tion of free, compulsory elementary schooling traditional face-to-face approach (a "hybrid"). by the King of Prussia in the 1700s. But finally Others follow a more blended approach and a paradigm shift is emerging in education. New even "flip" the classroom, which requires technology-based approaches pioneered by inno- students to learn more at home. Still others vative charter schools across the United States completely redesign the school infrastruc- have the potential to revolutionize the ture and curriculum to provide for differ- way learning is conceived. ent learning modalities, support work in These programs-which include the School small groups, and follow the academic of One, DSST Public Schools, and High progress of each child in real time. Tech High-rethink the fundamental tenets Regardless of the methodology, all of education, from the way children are taught these programs allow students to to the way courses are organized and class- choose the pace that suits them best rooms designed. while freeing teachers to zero in on Conventional schooling systems were designed critical thinking instruction, and to educate the masses in the most economical provide extra help for students way possible, using a factory-based model that who are struggling. M sorts children by age. These new approaches, however, tailor the program to the needs of each child, thereby shifting the focus from seat-time requirements to actual learning. andCLICKS Sources: EducationNext, Forbes, and School of One 70 1 IFC.ORG/HANDSHAKE 0 0 0 Se Denver School of Science High Tech High ad Technology (DSST) Pt INNOVATION The providers Open education-programs from educational Coursera,institutions that alow anyone with an Internet -~ Cursea, oundd bytwoconnection to register-debuted in 2012, when top Stanford professors, offers 213 free universities from the United States to Scotland and courses and partners with 33 univer- Australia began offering courses online. These inter- sities worldwide (coursera.org). active offerings (called MOOCs, or massive online open courses), are unprecedented in their reach and edX a not-for-profit enterprise of Harvardtechnological sophistication. Unlike the distance learning courses of old, these new platforms schusettsincorporate streaming video and interactivity with offes 2 cousesfromsixU. . S.increasingly complex data gathering algorithms Openuton educaion-pogram fro educationa nsthat make teaching more effective. Although many elite universities are in the vanguard developing MOOCs, courses are by definition free, presenting many students in poor countries with the opportu nity of a top-grade education for the first time. The system allows universities to pool resources by using the lectures as a basis for their own credit-bearing classes, and it could also reduce the costs associated with building and maintaining infrastructure while freeing up teacher time for research and fieldwork. The classes so far have proved widely popular across the globe. At the end of 2012, Coursera, edX and Udacity together offered around 230 MOOCs from about 40 universities worldwide to over three mil- lion students in over 196 different countries. And, not far behind, The Open University in the United Kingdom has launched FutureLearn with 12 U.K. universities. It will start offering free MOOCs in 2013, including a course on "Learning Design for a 21 n a Century Curriculum." i tdenhclassroom Sources: Coursera, edX FutureLearn, Udacit, and Wikipedia IFC 1 73 *A* . - 0 - 0 0 . - * .* - * - - o* o .-.0so - * e %0 " * 0 0 0 %* 0 to But new teaching theories, tactics, and technologies may render our most basic assumptions useless for the next generation. When Handshake approached seven visionaries in education to ask how teachers' success will be evaluated in 2050, more than one questioned the idea that teachers would still head a classroom at all. In the following pages, experts ranging from the U.S. Secretary of Education to the founder of a Washington, D.C. middle school charter grapple with the same question: bIn 2050, what will be the top three criteria for judging a teacher's success? 74 | IFC.ORG/HANDSHAKE Carl Bistan~y I would be surprised if teachers were used in classrooms by 2050. The way technology is moving, it is likely that President learning will be imparted much more through students' SABISO use of technology and IT-related tools. Student learning in such an environment would still need to be driven by teachers or some other sort of expert. There would still need to be a means of evaluating results and thereby gauging the effectiveness of the program and means of instruction. In the end, whether teachers are found in the classroom or not in 2050, just as it is today, the top gauge of success-teacher or technology-needs to be results, results, results. IFC 75 !륵 Arne Duncan In the last decade, I have talked to literally thousands of teachers and school leaders. I have yet to speak to one who thinks teacher U.S. Secretary of Education evaluation in America works well today. Ten or twenty years from now is too long for us to wait to do a better job of evaluating instruction in a holistic way. Teachers deserve to be treated like the professionals that they are, and a large part of that is how we assess and support their work. We also have to remember that the purpose of improving evaluations isdt about judging teachers. It's about creating a system that helps teachers identify when and how instruction is most effective while strengthening areas where it is less effective through meaningful feedback and professional development. From our labor management conferences, our Teacher Incentive Fund, and through Race to the Top, we know that there are doz- ens of great examples on how to do this work better already hap- pening across the country. 'fhey involve transforming evaluations to include multiple measures like classroom observation, peer review, student growth, and parent and student feedback often developed together with teachers. We hope states and districts can take this work to the next level through our teacher-led RESPECT project. 'fhe fact is, teachers are the most important in-school factor for influencing student achievement. Teacher evaluations should accurately reflect the difference that great teachers make. I'm hopeful that the country will start to see dramatic change in the next few years. 1FC 177 Michelle Rhee Founder and CEO StudentsFirst Now and in the future, the criteria for evaluating educators should vary somewhat depending on the grade and subject taught and school in which a teacher works. Teacher evaluations should always be based on multiple measures of success. But one very sig- nificant component must include the degree to which students are learning and making progress. Too often now, teachers are evaluated without objectivity, rigor, or frequency. This makes no sense at all, given the critical role teachers play in kids' lives. I hope as we move toward better evalu- ations, and more states and districts implement new systems, that they learn from each other, especially with regard to what works best. 78 | IFC.ORG/HANDSHAKE Jamil Salmi Independent tertiary education expert Teaching and learning will look very different in 2050. We can imagine a single teacher giving a course to more than 100,000 students at the same time, online. We can imagine a robot teaching a small group of students. We can imagine students learning from each other without any teacher involvement. Or we can imagine a student learning on her/his own, guided by an educational software using artificial intelligence... Are these outlandish dreams? Actually, they are real-life examples of the radical transformation that tertiary education is undergoing today. We are likely to witness drastic changes in the near future under the combined influence of two key factors. First, progress in education technology (online learning, simulation robots, gaming-like software) is opening new avenues for interactive and problem-based learning. Second, tertiary education institutions are faced with the challenge of preparing young people for jobs that do not exist yet. The traditional approach where teachers impart their knowledge to students in the classroom must be replaced by a dynamic learning model where students acquire generic competencies that prepare them to identify their own learning needs and advance their skills throughout their working life. IFC |79 Anant Agarawal President, edX; Professor MIT In 2050, the top three criteria for judging (such as low-income, and the impoverished) into a teacher's success will be quality, scale, and the education net, will be the most successful. efficiency. Finally, the most successful teachers will be the First, the most successful teachers will be ones who can reach students efficiently. As qual- the ones who are recognized for high-quality ity education extends its reach across the world, teaching. This is true today, as well. But as the the pool of learners will explode. Technology is landscape of traditional and online education making this possible, and future advances will transforms through enterprises like edX, student allow more reach with fewer resources. This will satisfaction will become critical. How engaged help decrease education costs as well. How many and excited are students? Did the professor meet students can a teacher support while simultane- the student's goals? For some, their goal might ously decreasing her time commitment? be achieving mastery in a subject. For others it EdX has a goal to educate 1 billion people might be rounding out a skill set for employ- worldwide. To do that effectively, teachers will ability or upward mobility. Why will student need mechanisms to deliver content efficiently satisfaction be so crucial to a teacher's success? and to respond quickly to students with help Because student satisfaction translates into and support. For traditional learning, blended increased chance of student success. courses (courses with an interactive computer- Second, the most successful teachers will be ones ized component) will be such a mechanism. whose reach extends globally to have an eco- Artificial Intelligence is also becoming a greater nomic impact on humanity. Education must and component of online learning in the edX online will become more accessible and more affordable learning platform. Who knows? Twenty-five worldwide. Teachers who can provide tangible years from now, we may have the perfect intel- job training, and scoop non-traditional learners ligent tutor. 80 1 IFC.ORG/HANDSHAKE ou rse, st rti P rite t in U s V Darleen Opfer Director, RAND Education Distinguished Chair in Education, RAND Corporation By 2050, we will be judging teaching success rather than teacher's success. This is an important shift that has already begun to occur. In the last few years, as coun- tries around the world have developed new measures for evaluating teachers, it has become clear that teaching success is variable and not static. It can change depend- ing on the conditions under which teaching occurs, the personal and professional circumstances of the teachers themselves, and with the kinds of supports provided for their teaching. With this understanding of teaching, we are starting to break the long-held notions of "teaching as art" and "once a good teacher, always a good teacher." Research is starting to demonstrate that teaching, like all professions, is something that can be learned, continuously improved upon, and is subject to the conditions under which it occurs. This shift in thinking will be an important ingredient for assuring teaching success in the future. Such a future would likely see significantly more resources devoted to understand- ing the elements of teaching success, cultivating it with proper renewal of skills, and ultimately producing students who understand their own learning as dynamic and continuous. 82 | IFC.ORG/HANDSHAKE Emily Lawson Founder and CEO DC Prep I actually don't think that the criteria will have changed that much from what's important today, but I hope that the assessments by which the criteria are measured will have become more sophisticated. In addition, I would hope that teachers will be asked more explicitly to help students develop social skills, as well as to assist in the professional development of their peers and new teachers entering the field. So the three criteria would be: * Teacher's impact on students' academic knowledge, as measured by students' academic growth. * Teacher's impact on students' character skills, as measured by a (to be developed) assessment of students' social/character skills. * Teacher's impact on the professional growth and success of her colleagues and trainees. IFC 83 /1 a.~~~ IM *e I. - 9. - is for. mobile mLearning dials up new opportunities for education and employment By Lauren Dawes INNOVATION Over three billion people around the world already have mobile handsets. Educational organizations are responding to this new reality by developing new and different ways to capitalize on mobile learning and training for formal and informal education. Mobile learning, or mLearning, is not a in a sense of security and increased confidence. new concept, but its popularity is surging as The project was launched in partnership with organizations explore new methods of reaching UNESCO and has helped thousands of women those who are unable to access formal education. increase their literacy and numeracy by up to 60 For those taking advantage of mLearning, this percent. approach can enrich classroom learning, assist Mali: PAJE-Nieta with teacher training, and provide workplace training to students. Best of all, many of these pn Mali,t USAIDunEdrpAeneta p- services require technology that's already ubiq- uitous: basic mobile handsets. Two of the most delivers basic educational skills, such as reading successful projects are based in Pakistan and math, and identifies employment opportuni- and Mali. ties via mobile phones. Under the project, young Pakistan:people create associations within each Village, Pakitan SMSforLiteacyand the associations then act as a hub for future SMS for Literacy, an initiative launched by vocational training and job mentoring. From telecommunication service provider Mobilink, is this hub, participants design community service a leading example of a successful mobile learning projects that they carry out locally. The goal is to project that helps to equip young women with demonstrate to their neighbors, their family, and essential life skills. The project has been designed their bosses that this program is about more than to improve the basic literacy skills of the learn- simply receiving assistance-it's about showing ers by sending educational messages in Urdu, that the youth of Mali will give back as they the local language. In addition to an improve- move forward. ment in the women's literacy, the initiative also Sustainability tracked a positive indirect benefit in helping to break down cultural barriers to mobile phone ne coie aa use in henges ownership for women-which in turn resulted N a d th e 1FC 1 85 with mobile learning products and services is three and reached 157 schools in 2011. With an sustainability. Discussions around payment, additional 15 schools added to the program in the role of government, and which institutions 2012, a total of 557 schools now have access to are key players in the value chain are frequent the technology. Text2Teach has also trained more topics of debate. However, innovative projects than 1,600 teachers on the use of the technol- have already started to solve the sustainability ogy in the classroom. The program attributes its problem. Some of the most successful are already success to strong partnerships and community looking toward an expansion of services, includ- ownership. ing those in Bangladesh and the Philippines. Bangladesh:From education to employment Bangades: BC JaalaBeyond education, there is vast potential In Bangladesh, the learning project BBC Janala for mobile learning to link to employment aims to raise the English language skills of 25 million Bangladeshis by 2017. Since its launch O n is in 2009, BBC Janala has attracted over 8 million one elis he USI-f )e Soma users in Bangladesh and received several inter- from 2008 through 2011 to provide training national awards for its innovative mix of pre- recorded English lessons and quizzes delivered core program content through mobile through basic mobile phones.supported by lead project implementer EDC Inc. By delivering SMS and audio mobile learning and job infor- One o t mation services across the regions of Puntland, South Central Somalia, and Somaliland, end mobile l n p a users gained real-time access to key information services s susta. nabilityincommunitieswithowwebaccessandlimited local media. The comparison of pre- and post- test outcomes showed a positive and statistically significant change in test scores, for both the Philippines: Text2Teach attitudinal and knowledge-based questions. In the Philippines, the International Youth Participants also demonstrated some improve- Foundation, Nokia, and the United Nations ment in their understanding of the concept of Development Programme combined forces to budgeting to manage finances. develop a project to deliver educational video In underserved communities like these, access content in classrooms via mobile technology and to life-changing mobile tools and resources are televisions. Launched in 2003 with Globe Tele- helping to bridge the gap between disillusion- com, the Text2Teach program is now in phase ment and opportunity. h l 861I IFC.ORG/HANDSHAKE DIGITAL ACCESS INDEX Selected countries, 2002 0.00 .2 0.40 .6 0.81 .0 Sweden South Korea China (HK, Taiwan) Finland United States New Zealand Portugal Hungary Uruguay Brazil South Africa TeDgtlAcs ne D I,a ne BotswanatinUno (IU,mauethovrlabiy Egyptofidvdasiaconrtoacsan usne Sri Lanka(C s.T eD Ii uitaon orfna Pakistan t cesI T:ifatutr;af raiiy Bangladesh koldeadqaiy n culuaeo C s Haiti adalw onre osehwte o pr Bhutantopesadjdeterrltvstegh an Thkses DgTalAces DIne (DAroi),s a irnexen SierraLeotions Uional (IT su,bl meares t orain abilitys towrim vn accesst ICTs:.nrsrcue;afraiiy to psddhra sns wekess Th DA0lopoie rnprn an gobll masralewa o tacin poges toadimrvn aces toCTs Niger - Sorc: T Why Open Education Matters First prize winner of the "The Why Open Education Matters" video competition organized by Creative Commons, the U.S. Department of Education, and the Open Society Institute. 200,000 1 00,000 approximate number of approximate number of students undergraduates enrolled enrolled in the first online classes in the world's top 20 universities at Coursera, edX and Udacity 88 | IFC.ORG/HANDSHAKE Who enrolls in MOOCs? the MOO Cs *Massive Open Online Course Sir Isaac Pitman starts delivering shorthand courses by mail in 1. United States 23. Japan 45. Serbia 2. Brazil 24. Greece 46. Belgium 3. India 25. Pakistan 47. Czech Republic 4. China 26. Poland 48. Iran M aking the sw itch 5. Canada 27. Romania 49. NewZealand 6. United Kingdom 28. South Korea 50. Saudi Arabia 7. Russia 29. Switzerland 51. Finland 10 8. Germany 30. Chile 52. Croatia 09 9. Spain 31. Vietnam 53. Norway 10. Australia 32. Turkey 54. Belarus 11. Colombia 33. Denmark 55. Ecuador 07 12. Ukraine 34. Bulgaria 56. United Arab 13. Mexico 35. Hong Kong Emirates 06 14. Thailand 36. Portugal 57. Lithuania 15. Singapore 37. Israel 58. Austria 05 16. France 38. Venezuela 59. Bangladesh 17. Malaysia 39. Indonesia 60. Latvia U.S. college students 18. Philippines 40. Sweden 61. Estonia 03 enrolled in online degree- 19. Italy 41. Peru 62. Kazakhstan granting programs as per- 20. Netherlands 42. CostaRica 63. Dominican 02 centage of total enrollment Republic I I I I I 21. Taiwan 43. South Africa 64. Uruguay 0 5 10 15 20 25 30 35 22. Argentina 44. Hungary 65. Others Source: Going the Distance, Online Education in the United States, Source: Coursera, August 2012 2011 Babson Survey Research Group and the College Board FAST FACTS 1. Shanghai, China 18. Poland 35. Spain 2. Hong Kong, China 19. Iceland 36. Luxemburg 3. Finland 20. Norway 37. Lithuania 4. Singapore 21. United Kingdom 38. Croatia 5. South Korea 22. Denmark 39. Greece 6. Japan 23. Slovenia 40. Russian Fed. 7. Canada 24. Ireland 41. UAE 8. New Zealand 25. France 42. Israel 9. Chinese Taipei 26. United States 43. Turkey 10. Australia 27. Hungary 44. Serbia 51 11. Netherlands 28. Sweden 45. Chile 12. Liechtenstein 29. Czech Rep. 46. Bulgaria toD cou n iCs 13. Switzerland 30. Portugal 47. Uruguay 14. Estonia 31. Slovak Rep. 48. Romania OECD's PISA education rankings 15. Germany 32. Latvia 49. Thailand 16. Belgium 33. Austria 50. Mexico 17. Macau, China 34. Italy Source: PISAs 2009 database, OECD Worldwide, at least 875 million adults remain illiterate Literacy rates 0 >97% 0 90-97% 80-90% pe 70-80% 0 60-70% 0 50-60% 0 35-50% 0 <35% * No data Source: UN Human Development Report 2007/2008 90 | IFC.ORG/HANDSHAKE CC They say that we are better educated than our parents' generation. What they mean is that we go to school longer. It is not the same thing. ) -Richard Yates 1FC 191 * - **- 0 .0 0 e-' Sub***i*e: fi faebo.cmic©frsrcur ** * ***s. FSC Recycled S.pp,zp!ilk hadsae@.or 036 Mmi International Finance Corporation January 2013 World Bank Group