Download Education Sector Portfolio

Financing Education
The World Bank
Latin America and the
Caribbean Region
23 July 2003
Outline
• Lending
• Challenges/strategies
• Future approach
Volume of World Bank LAC
Specific Education Lending
FY97-FY03
Number of Projects
approved per year
1,200
millions of U$
1,000
800
600
400
FY97
2
FY98
11
FY99
4
FY00
3
FY01
7
FY02
6
FY03
7
200
0
1997
1998
1999
2000
2001
2002
2003
Specific Education Lending FY03: U$ 432 million
Volume of Total World Bank
LAC Education Lending
1,200
millions of U$
1,000
800
600
400
200
0
1997
1998
1999
Specific
2000
2001
2002
2003
Adjustment
Total Education Lending FY03: U$ 772 million
Specific and Adjustment
Education Lending for LAC
FY02-FY03
800
millions of U$
700
Number of projects
$115
$340
600
FY02 FY03
500
400
300
$595
$432
200
100
Specific
6
7
Adjustment
3
6
Total
9
13
0
2002
Specific
2003
Adjustment
Total Education Lending FY02: U$ 710 million
Total Education Lending FY03: U$ 772 million
Education Lending for LAC as a
% of total WB education lending
100%
90%
80%
SAR
70%
MNA
60%
ECA
50%
EAP
40%
AFR
30%
38%
20%
10%
0%
43%
30%
11%
6%
1997
49%
1998
1999
2000
2001
2002
LAC
Evolution of LAC Education Lending
by Sub-Sector, FY91-FY03
Pre Primary
3%
FY91-FY96
Vocational
Training
19%
FY97-FY03
General
Education
9%
Vocational
Training
1%
General
Education
32%
Tertiary
Education
28%
Tertiary
Education
12%
Adult
Literacy/ Non
Formal Ed.
1%
Secondary
Education
10%
Primary
Education
46%
Adult
Literacy Non Formal
Ed.
0%
Secondary
Education
11%
Primary
Education
23%
Pre Primary
5%
Total World Bank Lending
Volume and Composition FY02
Agriculture
Fishing and
Forestry
6%
Transportation
12%
Law, Justice Public
Administration
24%
Energy - Mining
10%
Industry Trade
7%
Information C ommunication
1%
Health
16%
Water,
Sanitation Flood protection
3%
Finance
14%
Education
7%
Total WB Lending for FY02: U$ 19.5 billion
LAC Lending Volume and
Composition FY02
Transportation
11%
Energy Mining
10%
Law, Justice Public
Administration
30%
Industry Trade
1%
Information &
C ommunic.
0%
Health
15%
Water,
Sanitation Flood
protection
1%
Agriculture
Fishing and
Forestry
2%
Education
13%
Finance
17%
Total LAC Lending for FY02: U$ 4.4 billion
Challenges
•
•
•
•
•
Basic education –reaching last “10%”
Secondary
Quality
Post-secondary/lifelong learning
Research and innovation
Basic 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
– below world averages
.
100
KOR
Net secondary enrolment rate, 1998
MY S
80
JAM
TTO
CHL
ARG
HKG
GUY
PER
60
PHL
THA
MEX
DOM
MNG
CHN
VNM
ECU
IDN
40
COL
PRY
SLV
BLZ
CRI
NIC
BRA
LAO
PNG
VEN
KHM
20
5
6
7
8
Log of per capita GDP, 1998
9
10
But quality is poor...
Outcomes uncorrelated with income
GDP per Capita
Mean Scores
Cuba
Honduras
Bolivia
Paraguay
Dom. Rep.
Venezuela
Brazil
Mexico
Argentina
14000
12000
10000
8000
6000
4000
2000
0
Chile
Third Grade Mathematics Test Results and
GDP per capita for selected countries
400
350
300
250
200
150
100
50
0
Lifelong Learning/
Post - Secondary
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 Delivery
•
•
•
•
Utilizing the private sector
Demand-side finance
Student finance (higher education
student loans)
Lifelong learning
Utilizing 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 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
Future
• Service delivery
Basic
Quality
Governance
• Knowledge economy
Secondary education
Sustainable higher education
Lifelong learning
Moving 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
Education
Provision
Financing
Private
Public
Private
Private Schooling
Home Schooling
User fees
Public
Vouchers
Charter Schools
Contracting out
Traditional Public
Schools
Messages
• Investigate the market for education
Demand and supply
• Separate finance and provision
Role of private, NGO sector
• New roles for:
government, students, families,
communities