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 provincial officers were given budget reduction targets (e.g., ten per cent reductions in primary education), but were allowed to decide in what budget categories to take the funds. The provincial education officers interviewed for this project reported very similar decision patterns. They did not take across-the-board reductions, but concentrated in reductions for those discretionary areas where the impact on basic or core program operations would be minimized. d. The implications of this situation for the longer-term improvement of education finance are mixed. The positive aspect is that short-term responses to the crisis have been effective in minimizing the possibility of serious immediate damage to basic programs and direct services to students. This strategy can be thought of as buying time for effective longer-term strategies to be put in place to deal with crisis-related financial problems. However the negative aspect of this approach is closely related, namely that the responses are appropriate only for the short term and do not provide a basis for sustained budget reductions or more fundamental reform of the finance system. In addition, the financial crisis provides an opportunity to re-examine the finance arrangements and create reforms responsive both to immediate needs and problems of longer standing. The additional problems and issues are described in some detail in the context of the SSPL Loan conditionalities discussed in the following section. 1.3.3. Social sector program loan (and ADB conditionalities) a. The goals for the social sector program loan combine a concern for alleviating the more immediate effects of the financial crisis as well as addressing some of the more fundamental reform goals for the educational system. This can be seen in the summary of the conditionalities shown in Table 2 below. These are summarized from the Policy Matrix developed by the Government and ADB to guide the implementation of the SSPL. 32
Final Report, Volume II/3 Anthony. Cresswell: Educational Finance UNESCO-PROAP TA 2996-THA Education Management and Finance Study July 1999 Table 2 - SSPL policy matrix conditionalities To be completed Prior to Feb., 1998 1. Increase budget for student loans to B17,100 million 2. Ensure female students benefit equitably from loan program 3. Establish monitoring for science, math, and foreign language teaching 4. Maintain teacher training and instructional material budget for science, math & foreign language at FY 97 levels 5. Control hiring of primary teachers to bring student/teacher ratio to 25:1 6. Government confirms plans for higher ed. Institutions to manage non-salary budget by 2000 7. Government allow all higher ed. institutions to reallocate 5% of budget between items 8. Government maintain budget share of primary and secondary funds outside Bangkok at pre FY97 levels 9. Amend Human Resource Development Fund regulations to allow access from private schools To be completed prior to March, 1999 1. Cabinet approve draft law for independent school inspection and performance based management 2. Increase budget to general secondary relative to vocational education by 5% 3. Reduce ratio of public upper sec. voc. ed. Enrollments to total public upper sec. to 1990 level, over 1998-2001 4. Cabinet approve draft law for teacher personnel and salary system for local employment 5. Cabinet approve draft law to reduce staff at MOE by at least 25% 6. Universities granted authority to manage non-salary current budget 7. Cabinet approve draft law for phased delegation of selected management functions to local schools 8. Delegate to vocational school and skill centers authority and responsibility for program, personnel, and finance 9. Confirm commitment to make all public universities autonomous by 2002; one by 1998 10. Cabinet adopt policy to avoid crowding out private schools, equitable regulation, and set own fees Source: Asian Development Bank Loan Program Report, p. 56-57 b. All of the conditionalities in the SSPL have some budget implications, but they vary considerably in their relevance to this review. The items to be completed prior to Feb., 1998 predate the activities of this review and therefore represent a base of completed policy or budget action on which to base analysis or recommendations, or in some cases are relevant to other components of this project and are treated there. 10 Among the items due for completion in March, 1999, several are major education finance concerns. Two of the items involve specific budget allocations or related decisions: reduction of MOE staff by 25 per cent, and increasing the general vs. vocations education budget ratio. The item calling for independent school inspection and performance-based management, while arguable linked to efficiency concerns, is not a finance matter and is therefore outside the scope of this review. Five of the remaining items involve delegation of financial decision-making authority to the local school or campus, and thus will change the budget process in fundamental ways. This is a shared concern of this review and the decentralization component, and so will be discussed in both reports. The call for policy changes relative to private school operations and finance will be discussed in the sections dealing specifically with private education. 10 Policies and budget actions respecting the student loan program are discussed in the separate report on that subject (see Vol. II/4). The matters dealing with decentralization and devolution of financial authority are to some extent in this review and also in the decentralization report (see Vol.II/1). 33
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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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