Alternate Sources of Financing in Education - Public Private Partnership Dr. Allah Bakhsh Malik

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Supply and Demand for Educational Services:

Access, Quality, and Responsiveness to Local Needs

Dr. Allah Bakhsh Malik PhD

June 13, 2012

Alternative Financing for Delivery of 

Education Services in Pakistan

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Pakistan Map

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Alternative Financing for Delivery of Education Services in Pakistan

• Pakistan a country with 192 million population• Literacy rate 61%: 69% male and 45% female

• One out of three children not going to school

•

40% drop-out before Grade 4, 23% enrolled appearfor Grade 10

• Issues: access, quality, equity, infrastructure, missingfacilities, teacher absenteeism, truancy, financing,

and questions of political economy• Private school system expanding fast

• PIHS 2001 Surveys and NEC 2006

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Alternative Financing for Delivery of Education Services: Design & Instruments

•

Instruments designed for PPP in education inPunjab – The largest province through PunjabEducation Foundation - PEF

• Replication in all provinces and territories with

minor variations due to local context• English medium schools are priority of parents

• Comparative cost of education in Public andprivate schools: PKRs. 2300 & PKRs.400

• Alternate sourcing of education: Financingthrough public funds and service delivery byprivate sector

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Alternative Financing for Delivery of Education Services: Design & Instruments

q Initiative through legislation by Parliamentq Administrative and financial autonomyq Better service delivery with better learning

outcomes at a much lower costq Exponential growth: 2005 to 2012, schools 54 to

2227, students 18 thousand to 1.6 million,financing from 5 million to 6 billion, expansionfrom 5 districts to 36

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Alternative Financing for Delivery of Education Services: Design & Instruments

• Could have been even better sans politicalownership and consistency

• Program stalled in 2008 due to change in

Government for more than a year• Public pressure on political economy for

continuity of program: more than a millionfamilies are beneficiary

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Promote quality education through Public-Private

Partnership, encourage and support the efforts of 

private sector through technical and financialassistance, innovate and develop new instrumentsand enable private educational institutions tochampion wider educational opportunities ataffordable cost to the poor 

Vision for Alternate Financing in Punjab

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ü Foundation Assisted Schools - FASü Continuous Professional Development Program

- CPDPü School Leadership Development Program -

SLDPü Subject Based Support Program - SBSP

ü Skill Development Program - SDPü Education Voucher Scheme - EVS

Successful Initiatives through AlternateFinancing

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q Assistance @ PKRs.400 and PKRs. 500 (Primary to HigherSecondary) on per child enrolled basis, driven byconsiderations of equity, access and quality;

q School selection criteria; Physical infrastructure 20%, Faculty20%, Quality Assurance Tests (QAT) 60%,

q Selection of schools on merit through a transparent process;q Enrolment in schools: 100 -750;q Correct reporting of enrolment in school and QATs - chief 

determinants for continuation of financial assistance;q School does not charge students;

q Household income increased: Parents relieved from paymentof fee;

Foundation Assisted Schools - FAS

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Foundation Assisted Schools - FAS

q Schools relieved from collection of fee - concentrate onquality of education;

q Results of QATs very encouraging : Mean average movedfrom 63% (2005) to 89 % (2011);

q Schools invested heavily in infrastructure to accommodatemore students;

q 40 % overall increase in enrolment in partner schools;q Incessant demand; all districts enthusiastic to join;q Gender ratio: 50:50;q Inclusive model;q

Demonstrated that better quality education can beprovided at a cost lower than public sector;

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q QATs of partner schools after every six months, 66.6%students to get 50% marks; threshold being raised by BOD,

q Ranking of schools, financial assistance will vary on thebasis of QAT results;

q QAT outsourced;q Girl’s education priority, 4 Higher Secondary Schools for

females;q Honoraria: Rs.50,000 on high performance – above 90%;q Reward for best performing schools in districts in future;

Foundation Assisted Schools - FAS

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Geographic Location

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Level Wise

High44%

Primary

6%

Middle

50%

High

Middle

Primary

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Gender Wise

Female

15%

Coeducation

76%

Male

9%

Male

Female

Coeducation

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ü Private sector expanding fast;

ü No institutional arrangements for professionaldevelopment of teachers in private sector;

ü

PEF entered into partnerships with 40 lead NGOs andelite private teacher training institutions;

ü Sharing resources: infrastructure and utilities by the focalinstitution;

ü Financial and technical input by PEF;ü Initiative welcomed by private schools;ü Ravenous market and incessant demand;

Continuous Professional Development Program:Financing by Public Sector and Service Delivery byPrivate Sector and Institutions

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Training workshops conducted 3300

2005-2011

Teachers trained 102,000Male 15%

Female 85%

Schools benefited 19487

Average cost per participant 2100

Cost effective and economical model in PPP

Continuous Professional Development ProgramAchievements

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Workshops for Principals/Heads, VicePrincipals/Deputy Heads 1240

Principals/Heads trained 15000Male 15%

Female 85%

Institutions benefited 11900

Average cost per participant 1850

School Leadership Development Program: Financing byPublic Sector and Service Delivery by Private Sector

Subject Based Support Program: Financing by

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ü

Low cost educational institutions lack resources to affordqualified subject specialists;

ü PEF engage Subject Specialists of very high quality

ü Financing by PEF and management by private sector

ü Focus on problem areas and impact peers and associates;

ü Sharing Resources: Science Labs for cluster of schools;

ü Model Labs established

Subject Based Support Program: Financing byPublic Sector and Service Delivery by Teachers – Private Sector

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q Education in decrepit slums – poorest of the poor;q Freedom of Choice to access a school;

q Funding by PEF and management by private sector

q Pilot Project: Voucher of Rs.400/= per child;

q Targets are residents of slums and remote ruralareas;

q Started in August, 2006;

q 100,000 Vouchers;

q For each child 5-13 years;

Education Voucher Scheme: Financing by PublicSector and Service Delivery by Parents and PrivateSector

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q Non-tradable instrument;

q Redeemed at any participating school within 2-kilometer radius of slums

q Sustained retention and no drop out;q EVS and FAS two competing instruments;

q Gnawing need to expand due to incessant demandand astounding success;

q Prodigious accomplishment;

Education Voucher Scheme

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Skill Development Program: Financing by PublicSector and Service Delivery by Private SectorTechnical Institutes • Skill for adult illiterates and drop-outs• Vocational training in clusters

• Payment to service provider is linked to quality of mentoring judged by third party independentevaluation

• Out-sourcing to private technical institutes

• Easier, faster and cost-effective

•

Skills linked with market, self-employment andentrepreneurship

• Target: women in rural areas and urban slums

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Ø Variation in Feedback from different regions but success interms of quality, responsiveness and cost-effectiveness arecommon features

Ø Effective M&E SystemØ Transparency and Accountability: Audit of Accounts,

Internal and External Checks:Ø Internal: Finance Committee constituted by Board;Ø Third Party EvaluationØ Trust of people ?Ø Political involvement?Ø Selection of schools on merit?Ø Enrolment capped?Ø Waiting for elections and new set-up!!!!!!!!!!

Situation Analysis: Issues, Challenges, Hopesand Opportunities

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Conclusion

ü

Alternative Financing for Delivery of EducationServices is a successful and replicable modelprovided that there is:

ü Political will and ownership

ü Well designed instrument with proper legislativecover

ü Autonomy

ü Efficient implementation mechanism

ü Monitoring and evaluation

ü Organizations on learning curve; balancing andreinforcing; based on compensating feedback 

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SourcesPunjab Education Foundation  www.pef.edu.pk Asian Development Bank http://www.adb.org/publications/public-private-partnerships-education-lesson

UNESCO http://unesco.org.pk/education/documents/situationanalysis/Education_Polic

Freedom of Choice: Malik, A. B (2007)http://books.google.com.pk/books

NCSPE Teachers College Columbia University NY http://www.ncspe.org/list-papers.php

Commonwealth Education Partnerships www.nexuspartnerships.com; www.commonwealth-of-nations.org;www.cedol.org

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Alternative Financing for Delivery of Education Services in Pakistan

Thanks

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