the role and impact of public-private partnerships in education harry anthony patrinos felipe...

The Role and Impact of The Role and Impact of Public-Private Partnerships Public-Private Partnerships

in Educationin Education

Harry Anthony PatrinosFelipe Barrera-Osorio

Juliana Guaqueta

The World Bank2009

75 million Children Out of School

Private Enrollment 1991-2003Private Enrollment 1991-2003

Source: UNESCO

113% 109%

12%

1%

76%

21%

52%

15%

-13%

-1%

18%

-5%

Africa Arab States Latin America Pacif ic South & EastAsia

Central Asia

Private Public

Rationale for Government Rationale for Government InvolvementInvolvement

• Externalities

• Capital market imperfections

• Agency concerns

• Equity

• Information asymmetries

Variety of InstrumentsVariety of Instruments

• Ownership/Delivery

• Funding

• Regulation/Information

Provision

Finance Private Public

Private

Private schools Private universities Home schooling Tutoring

User fees Student loans

Public

Vouchers Contract Schools Charter schools Contracting out

Public schools Public universities

Public-Private Partnerships Public-Private Partnerships (PPPs) in Education(PPPs) in Education

• Formal contractual arrangement• Involve public and private sectors• Outcome focus • Sharing risks/rewards, public & private• Recognize complementary roles

PPP Continuum and Coverage

0102030405060708090

100

Bangladesh Philippines United States Netherlands

Emerging Moderate Engaged Integral

Co

vera

ge

69%

9%5%

100%

Benefits of PPPsBenefits of PPPs• Increase efficiency• Improve service delivery• Secure specialized skills• Overcome public service restrictions• Permit quicker response• Achieve scale economies• Allow gov’t to focus• Increase access for under-served• Promote transparency

ConcernsConcerns

• Contracting out services is controversial– Fears of privatization; segregation

• But these are empirical questions: need evidence• Evaluate with valid control group & baseline• Clearly specify objectives, compare relevant outcomes • Randomization is gold standard; but not always possible• Still, need to over come selection bias• Other methods of randomization: entry, encouragement• Or eligibility criteria, difference over time, instruments,

matching

Effects of Different Types of Effects of Different Types of PPPs on Delivery FactorsPPPs on Delivery Factors

Private management

Vouchers Subsidies Private Finance Initiatives

Flexibility + + +

Quality Criteria

+ + +

Risk-Sharing + +

Competition +

Expected Effects of PPPs on Expected Effects of PPPs on Education OutcomesEducation Outcomes

Increasing enrollment

Improving outcomes

Reducing inequality

Reducing costs

Vouchers + + + +

Subsidies + +

Private Management and Operations

+

Private finance Initiatives

+ +

92 PPP programs in 47 countries92 PPP programs in 47 countries

……23 evaluations, 9 countries23 evaluations, 9 countries

Colombia

Concession Schools:Concession Schools:Bogotá, ColombiaBogotá, Colombia

A Public SchoolA Public School Concession Concession SchoolSchool

Concession Schools, BogotaConcession Schools, Bogota• Providers contracted

to manage public schools

• 25 schools serving 26,000 disadvantaged students

• Autonomous

• 15 year contract

• Designed to overcome problems faced by public schools

7,007

19,374

21,430

23,117

26,308

0

5,000

10,000

15,000

20,000

25,000

30,000

2000 2001 2002 2003 2004

En

rollm

ents

Concession Schools ImpactsConcession Schools ImpactsReduction in dropout rates, 1999-2003Reduction in dropout rates, 1999-2003

(% points)(% points)

Direct

Indirect

-2

-1.6

-1.2

-0.8

-0.4

0

Math

Reading

0

1

2

3

4

5

Concession Schools ImpactsConcession Schools ImpactsReduction in dropout rates, 1999-2003Reduction in dropout rates, 1999-2003

(% points)(% points)

ConclusionsConclusions

• Need more evidence, but positive effects

• PPPs can be tailored to country

• Not a panacea, but can play role

• Not just private sector that brings gains – regulatory environment has impact

• Policy framework important, thinking broadly about role of government

Policy Implementation IssuesPolicy Implementation Issues

• Resistance from certain stakeholders

• Need consultation

• Improve quality of contract, implementation

• Produce solid & credible evidence

Enabling Regulatory Enabling Regulatory FrameworkFramework

• Providers in national education strategy

• Criteria for private school operation

• School funding systems that integrate

• Effective quality assurance system

Thank youThank you

Harry Anthony Patrinoshpatrinos@worldbank.org