Download - Financing Education
Financing EducationFinancing Education
The World Bank
Latin America and the Caribbean Region
23 July 2003
OutlineOutline
• Lending
• Challenges/strategies
• Future approach
Number of Projects approved per year
FY97 2
FY98 11
FY99 4
FY00 3
FY01 7
FY02 6
FY03 70
200
400
600
800
1,000
1,200
mill
ion
s of
U$
1997 1998 1999 2000 2001 2002 2003
Volume of World Bank LACVolume of World Bank LAC Specific Specific Education LendingEducation Lending
FY97-FY03FY97-FY03
Specific Education Lending FY03: U$ 432 million
Volume of Total World Bank Volume of Total World Bank LACLAC Education LendingEducation Lending
0
200
400
600
800
1,000
1,200
mill
ions
of
U$
1997 1998 1999 2000 2001 2002 2003
Specific Adjustment
Total Education Lending FY03: U$ 772 million
Specific and Adjustment Specific and Adjustment Education Education LendingLending for LAC for LAC
FY02-FY03FY02-FY03
Total Education Lending FY02: U$ 710 million
Total Education Lending FY03: U$ 772 million
Number of projects
FY02 FY03
Specific 6 7
Adjustment 3 6
Total 9 13
$595
$115
$432
$340
0
100
200
300
400
500
600
700
800
millions
of
U$
2002 2003
Specific Adjustment
Education Lending for LAC as a Education Lending for LAC as a % of total WB education lending% of total WB education lending
6%
38%30%
11%
43% 49%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1997 1998 1999 2000 2001 2002
SAR
MNA
ECA
EAP
AFR
LAC
Evolution of Evolution of LAC Education Lending LAC Education Lending by Sub-Sector, by Sub-Sector, FFY9Y911-FY-FY0303
FY91-FY96
Primary Education
46%
Tertiary Education
12%
Vocational Training
19%
General Education
9%
Pre Primary 3%
Secondary Education
10%Adult Literacy/ Non
Formal Ed.1%
FY97-FY03
Adult Literacy -
Non Formal Ed.0%
Secondary Education
11%
Pre Primary 5%
General Education
32%
Vocational Training
1%
Tertiary Education
28%
Primary Education
23%
Total Total World Bank Lending World Bank Lending Volume and CompositionVolume and Composition FY02 FY02
I ndustry - Trade
7%
Energy - Mining10%
Law, J ustice - Public
Administration24%
I nformation - Communication
1%
Education7%
Transportation12%
Agriculture Fishing and
Forestry6%
Water, Sanitation -
Flood protection3%
Health16%
Finance14%
Total WB Lending for FY02: U$ 19.5 billion
LACLAC Lending Volume and Lending Volume and CompositionComposition FY02 FY02
Finance17%
I ndustry - Trade
1%
Energy - Mining10%
Law, J ustice - Public
Administration30%
I nformation & Communic.
0%
Education13%
Transportation11%
Agriculture Fishing and
Forestry2%
Water, Sanitation -
Flood protection
1%
Health15%
Total LAC Lending for FY02: U$ 4.4 billion
ChallengesChallenges
• Basic education –reaching last “10%”
• Secondary
• Quality
• Post-secondary/lifelong learning
• Research and innovation
BasicBasic Education Education
Education For All - Fast Track Initiative
• Four LAC countries selected:Honduras, Nicaragua, Bolivia, Guyana
• Mainly IDA countries where completion will not be achieved without support
Secondary enrollment in LAC Secondary enrollment in LAC – below world averages– below world averages
.
Net
sec
onda
ry e
nrol
men
t rat
e, 1
998
Log of per capita GDP, 19985 6 7 8 9 10
20
40
60
80
100
KHM
VNM
LAO
MNG
NIC
CHN
GUY
PNG
IDN
PHL
ECU
SLV
PRY
JAM
DOM
PER
COL
THA
BLZ
VEN
MEX
CRI
MYS
BRA
TTOCHL
ARG
KOR
HKG
But quality is poorBut quality is poor......Outcomes uncorrelated with incomeOutcomes uncorrelated with income
Third Grade Mathematics Test Results and
GDP per capita for selected countries
02000400060008000
100001200014000
Arg
entin
a
Chi
le
Mex
ico
Bra
zil
Ven
ezue
la
Dom
. Rep
.
Par
agua
y
Bol
ivia
Hon
dura
s
Cub
a
050100150200250300350400
GDP per Capita Mean Scores
Lifelong Learning/Lifelong Learning/PostPost - - SecondarySecondary
Chile
• Reduce deficit of adults without complete basic or secondary education
• Provision of adult education
• Improve skill & productivity of labor force
• Improve international competitiveness
• Develop new modalities articulating adult education and training for workers in small and medium size enterprises
Innovative DeliveryInnovative Delivery
• Utilizing the private sector• Demand-side finance• Student finance (higher education
student loans)• Lifelong learning
Utilizing the Private SectorUtilizing the Private Sector
• Trinidad & Tobago: Public-private partnerships in child care
• Colombia: Private school vouchers for poor
• Links between universities and private sector (Chile, Mexico, Brazil)
Student FinanceStudent Finance
Colombia Higher Education Project• Redesign and expand student loan scheme• Enable needy but qualified students to attend• 100,000 beneficiaries (9% of total students)
Mexico Higher Education Financing Project • Improve, expand student loans in Sonora• Develop private sector student loan scheme• Improve access to higher education
FutureFuture
• Service deliveryBasic
Quality
Governance
• Knowledge economySecondary education
Sustainable higher education
Lifelong learning
Moving ForwardMoving Forward
• Market has strengths and weaknesses
• Government has strengths and weaknesses
Draw on strengths of both market and government
Minimize weaknesses of both
Context-specific
Financing and Provision of Financing and Provision of EducationEducation
Provision
Financing Private Public
Private Private Schooling
Home Schooling
User fees
Public Vouchers
Charter Schools
Contracting out
Traditional Public Schools
MessagesMessages
• Investigate the market for education
Demand and supply
• Separate finance and provision
Role of private, NGO sector
• New roles for:
government, students, families,
communities