The Role and Impact of Public-Private Partnerships in Education

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14 THE ROLE AND IMPACT OF PUBLIC-PRIVATE PARTNERSHIPS IN EDUCATION to the finance ministry or treasury (World Bank 2006). This is done to ensure that the government rapidly develops the expertise that it needs to manage the “transaction” or capital part of the initiative. However, in the social sectors, the service purchasing contract is an integral part of the feasibility and attractiveness of the proposed private involvement. Officials from both the central unit and the sectoral ministry must work together effectively to design the two contracts (World Bank 2006). Nonetheless, their very different priorities, training, and perspectives often make it difficult for the staff of these two entities to collaborate. The contracting process itself can be expensive, which may dampen interest among potential private operators and investors because unsuccessful bidders have to absorb the considerable cost of bidding. Despite these challenges, comprehensive contracting combines the advantages of contracting out both facility availability and services, and savings and efficiencies could result from having the same organization design and build a facility in which it will deliver high-quality services at the lowest possible cost. Delivered by The World Bank e-library to: unknown IP : 192.86.100.35 Mon, 30 Mar 2009 12:16:23 (c) The International Bank for Reconstruction and Development / The World Bank
International Experience While governments remain the main financiers of primary and secondary education, a substantial share of education worldwide is now delivered by private agents (Lewin and Sayed 2005). Private enrollment has increased faster than public enrollment in recent years. Enrollment in private primary education grew by 58 percent between 1991 and 2004 from 39 to 62 million, while public enrollment grew by only 10 percent from 484 to 530 million during the same period (UNESCO 2007). Sub-Saharan Africa, the Middle East, and South Asia are the regions with the largest growth in the private provision of education (UNESCO 2007). To increase access and improve quality in education, many governments are finding it effective to separate the financing of education from its provision (World Bank 2003a). Empirical evidence suggests that education systems in which schools are publicly funded but privately operated are associated with better student performance (Schütz, West, and Woessmann 2007). So governments are exploring ways to involve the private sector in providing education. This chapter presents a global review of public-private partnerships (PPPs) in primary and secondary education, focusing on partnerships in which governments use contracts as instruments of accountability. The underlying idea behind contracts is that they introduce a performance-based approach to education because they clearly link funding and provision with education outputs and they direct services to underserved student populations, especially marginalized groups such as low-income or disadvantaged students. In the most common type of PPP, governments fund existing private schools, mainly to increase access to education but also to enhance quality by enabling poor students to attend better private schools and by introducing school competition to promote efficiency. In more recent types of PPPs, governments have contracted with private providers to deliver a range of inputs and services with the expectation that they will introduce new pedagogical skills and management efficiencies that the public sector lacks, thus generating alternatives to traditional forms of public education. As discussed in the previous chapter, contracts for education-related services can cover a range of services and inputs including the private management of public schools, subsidies and vouchers, private finance initiatives for school construction and maintenance, and professional services such as teacher training, curriculum design, and textbook provision. The expansion of private participation in the education systems of both developed and developing countries is increasingly turning them into markets with the potential to develop innovative education methods. In the following chapters, we discuss examples of public-private partnerships from around the world. These countries and programs are described in more detail in appendix A, which contains information on 92 PPP programs and policies across 47 countries. The PPPs are organized by contract type, as defined in chapter 1, and are listed alphabetically by country within each of these categories. The list is not exhaustive but gives a representative picture of the Delivered by The World Bank e-library to: variety and unknown geographical location of PPPs worldwide. IP : 192.86.100.35 Mon, 30 Mar 2009 12:16:23 chapter2 15 (c) The International Bank for Reconstruction and Development / The World Bank
Page 1 and 2: The Role and Impact of Public-Priva
Page 7 and 8: Contents Foreword ix Acknowledgment
Page 9 and 10: Contents vii Boxes 1.1 Sources of c
Page 11 and 12: Foreword Education is widely believ
Page 13 and 14: Acknowledgments We acknowledge the
Page 15 and 16: Abbreviations AVEC BRAC BTL CARE ES
Page 17 and 18: Introduction Despite recent increas
Page 19 and 20: Introduction 3 schools (for example
Page 21 and 22: Introduction 5 PPPs may face resist
Page 23 and 24: Introduction 7 recent (such as thos
Page 25 and 26: Understanding Public-Private Partne
Page 27 and 28: Understanding Public-Private Partne
Page 29: Understanding Public-Private Partne
Page 33 and 34: International Experience 17 Countri
Page 35 and 36: International Experience 19 BOX 2.1
Page 37 and 38: International Experience 21 of stud
Page 39 and 40: International Experience 23 of trad
Page 41 and 42: International Experience 25 to prov
Page 43 and 44: International Experience 27 allocat
Page 45 and 46: International Experience 29 student
Page 47 and 48: What Do We Know about Public-Privat
Page 49 and 50: What Do We Know About Public-Privat
Page 59 and 60: Designing a Conducive Environment f
Page 75 and 76: Conclusions Despite recent increase
Page 77 and 78: Conclusions 61 for providing educat
Page 79 and 80: Conclusions 63 The United States ha
Page 81 and 82:
Conclusions 65 limited data, and, t
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Conclusions 67 funding system shoul
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Conclusions 69 system is a persiste
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Public-Private Partnerships: Progra
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appendix BMethods for Evaluation of
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References Aedo, C. 1997. “Organi
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References 87 in Emerging Economies
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References 89 Discussion Paper 2003
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References 91 ———. 2003b. Par
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Index Boxes, figures, and tables ar
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Index 95 H Haiti, 18, 19b, 73 Heckm
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Index 97 schools. See also charter
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Delivered by The World Bank e-libra
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