CAF Education Agenda 2016-2020 More inclusion, more equity, more productivity

Contributions to the Education Inter-American Agenda Ninth Inter-American Meeting of Ministers of Education February, 2017

Who we are and what we do

CAF - Development Bank of Latin America is a multilateral organization created in 1970, owned by 19 countries - 17 of Latin America and the Caribbean, Spain and Portugal- as well as 14 private banks in the region.

It promotes a sustainable development model through credit operations, non-reimbursable resources, and support in the technical and financial structuring of projects in the public and private sectors of Latin America.

Content

I. Education in Latin America: 5 messages for CAF action

I. CAF support strategy

I. Education in Latin America: 5

messages for CAF action

More education, higher economic and social development

Source: WDI (World Bank), PISA 2012 (OCDE), RED Report (CAF, 2016)

PISA results in Mathematics and GDP per cápita

PISA results and long term economic growth, difefrente regions

100 points of diference in PISA = 2 percentual points of anual growthin long term 100 points of diference in PISA = 2 years of formal education

Message 1:

Education has a strong influence on economic growth, social

welfare and individual progress

Access to basic education has increased but important deficits and high inequality persists

• 70% of 3 years old

children does not have access to early chilhood atention

• 15% 5 years old children

is out of school

• 1 in 5 young people

does not attend school at age 16

Fuente: Con base en SEDLAC- Socio-Economic Database for Latin America and the Caribbean, Encuestas de Hogares homogeneizadas

0

20

40

60

80

100

120

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Perú Argentina Colombia Brasil

Enrollment rate by age. Selected LA countries, 2013.

00

05

10

15

20

25

30

35

40

45

3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Dif Q5-Q1

Dif Urbano-Rural

Difference in enrollment rates, by income quintiles and region (urban - rural) 2013

Source: Based on SEDLAC- Socio-Economic Database for Latin America and the Caribbean, Homogenized household surveys

Access to basic education has increased but important deficits remain and high inequality persists

Message 2:

Latin America must increase acces to early education and ensure graduation of

upper secondary education, specially among low-income population

Science Results, PISA 2015. Several countries

*Promedio OECD excluyendo a Chile y México **La muestra de Argentina es pequeña para asegurar comparabilidad Fuente: Elaborado con base en los Resultados PISA 2015, en Foco. Programa para la Evaluación Internacional de Alumnos. OCDE

Low cognitive skills in Latin American students

Percentage of students by level in Science. LA countries and OCDE Average. PISA 2015

0 100 200 300 400 500 600

Rep. Dominicana

Perú

Brasil

México

Colombia

Costa Rica

Trinidad y Tobago

Argentina**

Uruguay

Chile

Promedio OECD*

Finlandia

Estonia

Japón

Singapur

0% 20% 40% 60% 80% 100%

Promedio OECD

Chile

Argentina**

Uruguay

Trinidad y Tobago

Costa Rica

México

Colombia

Brasil

Perú

Rep. Dominicana

Debajo de Nivel 2 Nivel 2 Nivel 3 Nivel 4 Niveles 5 y 6

… and results are highly conditioned by socioeconomic status

Percentage of variance in Science results explained by socioeconomic status. PISA 2015

0,0

5,0

10,0

15,0

20,0

25,0

Alg

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ave

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w Z

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ru

Message 3: Latin America must increase

quality of education, with focus in equity

Skills for work: Disconnection with labor demands

40

25

9

0

5

10

15

20

25

30

35

40

45

Hasta secundariaincompleta

Secundaria completa Superior completa

40

29 27

25 24 23 23 23 21 19

0

5

10

15

20

25

30

35

40

45

Percentage of people who consider that the knowledge and skills acquired at school is useless or unhelpful for their current job

Source: ECAF 2015

Nini’s: 1 out of 6 young people in LAC neither work nor study

16.4 17.1

18 18.2 18.2

20.8

1990 1995 2000 2005 2010 2015

66%

34%

Ninis mujeres

Ninis hombres

Individuals between 15 y 24 neither attend to schoolo or working (milions)

Source: De Hoyos, Rogers y Popova, 2015

Mesagge 4:

Latin American young people need to gain the skills and competencies they need to succeed

at work

Public spending in education as a share of GDP increased in most Latin American countries, but we are still below the OECD average

Fuente: UNESCO

5.5

4.4

012345678

NZE

NO

R

SWE

FIN

BEL IR

L

ISR

AST

NTH FR

A

CA

N

AU

S

EST

SWI

SPA

GER

KO

R

CH

Z

ITA

JAP

PR

OM

OEC

D

BO

L

BR

A

MEX

AR

G

PR

Y

CO

L

UR

Y

ECU

CH

I

ESV

PA

N

GU

A

PER

PR

OM

AL

4.5

5.9

3.9 3.9 3.8 4.4 4.6

4.2

3.1 2.5

4.9

7.0

6.1

4.3 4.6 5.2

3.3

4.6

2.8

4.4

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

ARG BOL BRA CHI COL MEX PAN PRY PER URY

2000-2002 2010-2012

Gasto público en educación, % del PIB

But we may still improve results with current spending

Fuente: UNESCO

Países con gasto acumulativo por estudiante (entre sus 6 y sus 15 años) inferior a USD 50 000

Ajuste lineal para estos países 1

Países con gasto acumulativo por estudiante (entre sus 6 y sus 15 años) superior a USD 50 000

Ajuste lineal para estos países 2

Slovak Republic

Czech RepublicEstonia

Israel

Poland

Korea

Portugal

New Zealand

CanadaGermany

Spain

France

Italy

Singapore

Finland

Japan

SloveniaIreland

Iceland

Netherlands

Sweden

Belgium

United Kingdom

AustraliaDenmark

United States

Austria

Norway

Switzerland

Luxembourg

Viet Nam

Jordan

Peru

Thailand

Malaysia

Uruguay

Turkey

Colombia

Tunisia

MexicoMontenegro

Brazil

Bulgaria

Chile

Croatia

LithuaniaLatvia

Hungary

Shanghai-China

R² = 0,01

R² = 0,37

300

350

400

450

500

550

600

650

0 20 000 40 000 60 000 80 000 100 000 120 000 140 000 160 000 180 000 200 000

Not

a pr

omed

io P

ISA

201

2 (m

atem

átic

a)

Gasto promedio acumulado por estudiante entre sus 6 y sus 15 años (USD, PPP)

Message 5:

Latin America needs to invest more and better

II. CAF Education Agenda

CAF Action 1. Increase access, with focus on low income population

Educational Infrastructure

Equipment, learning environments and

technology

Systems for planning and

managment of physical resources

Strategies for promoting demand of

low income population

CAF Action 2. Increase quality of education

Investments in early childhood education and care and preschool education

Teacher quality, specially professional development (ECE, ICT, innovative practices)

Interventions for aquiring reading skills at an early stage

Curricular reforms to better match skills with those demanded in the labor market

Expansion and strengthening upper secondary and post secondary education offers, including TVET, that allow transition to labor market or

higher education

Promoting qualification frameworks and strategic partnerships

Promoting innovation capacity and entrepreneurship

CAF Action 3. Increase relevance of education

Access

Quality

Relevance

1: Increase access to early childhood education and assure graduation from secondary education

2: Increase quality of education, with focus on equity

3: Increase correspondence between instruction and skills for work

Tech

nical an

d fin

ancial

sup

po

rt

Review

and

dissem

inatio

n

of b

est practices

www.caf.com