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 c. A similar pattern of disproportionate expenditure burden is found when the impact is examined by the family’s main occupation. The comparison of expenses as a proportion of income for varying occupations is shown in Figure 16 below. The discrepancy between the highest and lowest income groups by occupation is not as large as in the previous comparison (Figure 15). But the burden on the agricultural families, and to a lesser degree those in the informal sector, is still significant. Even the cost of public education for agricultural families requires almost four times the percentage of income compared to government and state employees. d. A similar pattern of income-related burden is found in the results of the higher education survey. The respondents to that survey were asked to indicate if their income were sufficient to support higher education for their children. The answers to that question by income group are shown in Figure 17 below. The pattern there is quite striking. Slightly over 70 per cent of the highest income families 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 per cent. Only in the highest income group did more than half of the families indicate that they thought they had sufficient income for these purposes. Of course whether the income is sufficient requires a subjective judgment, and can vary a great deal from one family to another. And given the high levels of subsidy to higher education generally, this reporting of “insufficient income” in the upper income groups is suspect. But the equity implications of the responses of the lowest income groups do appear to be meaningful and should be taken into account in equity policy formulation. Figure 17 - Per cent of families with sufficient income to support higher education Per Cent of Families with Sufficient Income to Support Higher Education Percent of Respondents 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% < 3,000 3,000- 6,000 6,001- 10,000 10,001- 20,000 20,001- 30,000 over 30,000 Family Income (Baht per month) e. Overall these survey results clearly indicate that even the poorest families are willing to make major sacrifices to support their children’s education. The results also indicate that the method of financing that relies on heavy private sharing of 68
Final Report, Volume II/3 Anthony. Cresswell: Educational Finance UNESCO-PROAP TA 2996-THA Education Management and Finance Study July 1999 expenses leads to a less equitable system. This is an obvious characteristic of educational financing that requires effective equalizing policies to overcome. Approaches to such policies are described in the recommendations section. 2.3.3 School level revenues: survey results a. To examine the flow of private support to education, a sample of 625 schools was chose to receive a survey. The school head or principal was asked to describe the amounts and types of support received from all sources, along with descriptive data about the school (description of the survey is found in the Appendix 3). The overall results of this survey are shown in Table 12 below. The results show that on average the schools receive significant amounts of direct support from the socalled private sector. The amounts shown in Table 12 include the reported tuition received by the school, private donations, and estimates of the value of contributions in kind. As would be expected, the private schools, particularly the owner-operated (proprietary) ones, receive substantial support. However, the overall averages are slightly misleading, due to the large variations in the amounts of donations and in-kind support. A few schools received very large donations or in-kind gifts, such as a building or expensive equipment. However, even if these very large donations excluded, the average support for the schools does not change appreciably. Table 12 - Overall support from private sources by type of school School Type Average Support Average Support plus Tuition Number of Schools ONPEC 210 212 523 Municipal 330 358 24 OPEC 619 3,441 6 Private-Owner 1,152 4,133 29 DGE 65 512 56 DVE 37 1,206 14 Total 244 468 652 b. The wealth of the province in which the schools were located did not have any apparent relationship with the level of private support reported by the schools. There were schools from seven provinces sampled for the survey, ranging from the wealthiest (BMA) to two of the poorest. The average support level received by schools in BMA was the third lowest among the seven, and the province with the highest average was in the next-to-lowest wealth quartile. c. In order to assess the likelihood of increasing private sector support, the school survey included questions on that subject. The school head was asked to estimate the percentage increase he or she believed possible from several sources of private support. The overall response to these questions was quite pessimistic. Out of 625 respondents, the largest number of answers over zero to any item was 89. Due to these small number of responses computing an average would not be meaningful. Instead the table below (Table 13) reports the number or respondents who estimated 10 per cent or more increase possible for their school. To the extent that 69
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- Volume II/3 - Educational Finance
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Table of Contents A. Executive Summ
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Table of Tables Table 1 Adjustments
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Figure 18 Figure 19 Figure 20 Figur
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Final Report, Volume II/3 Anthony.
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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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