Educational Finance in Thailand - UNESCO Bangkok

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Final Report, Volume II/3 Anthony. Cresswell: Educational Finance UNESCO-PROAP TA 2996-THA Education Management and Finance Study July 1999 however, a similar, though somewhat slower expansion was occurring in Malaysia, with the increase from 1991 to 1996 from approximately 600,000 to 1,000,000 university students. Yet the capital expenditure for Malaysian higher education in 1995 was less than 10 % of the total. Thus the capital costs for higher education do appear to be unusually high. c. The high subsidy levels for higher education were justified by participants of a Policy Workshop on Educational Finance Reform Proposals (5-6 March 1999, The Rose Garden) as necessary investments to accomplish the recent expansion of participation in higher education. 6.3. Public vs. private schools a. Financial resources for the private schools for recurrent expenditure are below those for the public schools in the basic education levels. The total expenditure levels for the public and private basic education levels are roughly comparable, with the largest difference between the primary levels, with the public level being approximately 26 % above the private, and the Upper secondary private about 6 % below the public. However, the total expenditure levels do not give a complete picture. The recurrent expenditure levels in the public schools are considerably above the private schools, with the reverse being true in the capital expense category. The capital expense levels are roughly equal to the recurrent expense in the private schools, an unusually high proportion for basic education. This is most likely a consequence of lower salary levels in the private schools, greater expense for development and expansion, and possibly higher levels of expenditure on equipment and other capital goods. b. The differences between public and private sectors are much more pronounced in higher education. Expenditures per head in the closed (highly selective) universities is more than six times that in the private universities. In contrast with basic education, the level of capital expenditure in the private higher education sector is considerably lower than in the public. Only the Ramkhamhaeng Open University has lower expenditure levels for either recurrent or capital categories. Given the large enrollment, largely part-time nature of the Ramkhamhaeng Open University, this expenditure level is not surprising. What these data show clearly is a three-level higher education system: the closed universities at the top, with three to six times the resources levels of the rest of the sector, other public institutions in the middle, still well above the private, and the private university system is the low finance level, roughly on a par with private upper secondary expenditure levels. c. Higher education systems in most countries show wide differences in expenditures per head, so these differences in themselves are not necessarily a policy problem. However the relationship between the sources of the finances and the beneficiaries raises a question of equity. Higher education in general serves families with considerably higher income than the population as a whole. The higher education system is apparently less open to lower income students, in part no doubt because they received lower quality basic education and do not qualify for admission, and in part because they cannot afford to attend. To the extent that 6
Final Report, Volume II/3 Anthony. Cresswell: Educational Finance UNESCO-PROAP TA 2996-THA Education Management and Finance Study July 1999 this is true, the higher education system is less of a mechanism to promote access to education and educational opportunity, and more a mechanism to reinforce the existing patterns of wealth and status in the society. This latter outcome would be quite inconsistent with overall policy goals and principles of equity. 7. Private educational expenditure 2 a. The high level of private expenditure on education has important implication for the pursuit of the Government’s equity goals. The private costs of education occupy a much larger proportion of household income for the poor households than for the richer ones, as would be expected. For the three highest income groups the expenditure for basic education is approximately 10 % or less of total family income, even for private schooling. For the lowest income groups the proportion rises to as much as 70 % for the total expense of private schooling. As would be expected, the burden of expenses for private education exceeds that for public by substantial proportions, even at the low percentages for the high-income groups. Even the expenses for the highly subsidized public schools impose a substantial burden on the lowest income group, where the cost of public schooling exceeds 20 % of total income. A similar pattern of disproportionate expenditure burden is found when the impact is examined by the family’s main occupation. b. The income-related burden is similar for higher education. Slightly over 70 % of the highest income families surveyed reported that their income was sufficient to support higher education for their children. For the lowest income group, the comparable number was less than 5 %. Only in the highest income group did more than half of the families indicate that they thought they had sufficient income for these purposes. 7.1 School level revenues a. The schools report receiving significant amounts of direct support from the socalled private sector. These range from an annual average of approximately 200 Baht per pupil in ONPEC schools to over 4,000 Baht per pupil in proprietary schools. The amounts include tuition, private donations and contributions in kind. The wealth of the province in which the schools were located does not have any apparent relationship with the level of private support reported by the schools. b. The prospects for increasing this support are weak according to school principals. Only 89 principals out of 625 responding indicated any possibility of increasing revenues, and only 77 estimated 10 % or more. However, some schools are extremely successful in mobilizing resources from the private sector. To increase the likelihood of private support the Government should provide training, incentives, and support for school administrators to mobilize new private revenues. This should not supplant government support to those schools were private funding cannot be increased. 2 The estimates of household outlays are based on two sources of data: a survey of approximately 5,000 households conducted by the ONEC in 1997, and the results of the 1996 National Social Survey, employing a sample of approximately 25,000 households. The estimates of school revenues from private sources are based on a sample survey of over 600 schools conducted as part of this project (described in Appendix 3). 7
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mission and operations. The term
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The information requirements for fi
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Table 1: Continued Dept. Flow of Re
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Table 1: Continued Dept. Flow of Re
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Description and assessment of compu
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Table 3: Existing computer systems
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Table 3: Continued Current existing
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Description of flows of financial i
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(teachers, facilities, etc) if data
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Table 4: Continued. Content of curr
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Table 5: Assessment of information
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An assessment of information system
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general administration, these syste
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Recommendation for IS Most involved
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6. The nation wide implementation.
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References Office of the permanent
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Office of private education commiss
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Interviews 10 September 1998, 9:00-
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Appendix 2 Projections of Costs of
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Projected Cost Increases for Expand
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Identification of Schools for Sampl
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8. Please place an X in a box below
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enrollment as a whole growing at an
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Figure 1: Thailand’s Development
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Table 5: Crude transition rates of
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and level of education, 1993 and 19
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2.31 Questionable quality of educat
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income inequality between agricultu
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4.1.4. The percentages calculated f
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Table 11: Public and Private sector
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4.3.8. As would be expected, unempl
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5.7 The dilemma is to balance the s
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Table 14: Unemployment and Underemp
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there any activities that would be
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References Chalongphob Sussangkarn
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Appendix 6 BMA Voucher Policy A. Lo
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Appendix 7 Finance Allocation Metho
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Appendix 8 Program Structure of the
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Not all possible flows are show, si
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Appendix 11 Results of Regression A
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Educational Finance in Thailand - UNESCO Bangkok

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