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Characteristics of FY07 Education Projects

Characteristics of FY07 Education Projects. A wide variety of approaches to economic analysis reflecting the fact that every project is unique. Guatemala Education Quality and Secondary Education. Costs Accelerated program for overage students

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Characteristics of FY07 Education Projects

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  1. Characteristics of FY07Education Projects A wide variety of approaches to economic analysis reflecting the fact that every project is unique

  2. Guatemala Education Quality and Secondary Education • Costs • Accelerated program for overage students • Expanding lower secondary for 60,000 students, mostly rural and lower income • Quality improvement: teacher education, learning materials, school-based management

  3. Guatemala Education Qualityand Secondary Education • Benefits • Increased earnings of graduates • IRR = 31% • Sensitivity analysis • ⅓ reduction of incremental income = 26% • Recalculate NPV at 15% (really not a sensitivity analysis) IRR still 31% • 20% less investment, 40% less benefit = 27%

  4. Viet Nam 2nd Higher Education • Costs • Support for capacity building for policy development • Support for capacity building for university teaching and research through teaching and research innovation grants (TRIG)

  5. Viet Nam 2nd Higher Education • Benefits: • Increased graduate earnings due to improved learning • Internal efficiency gains • Returns to R&D activities based on returns elsewhere (in contrast to Nigeria S&T which said could not forecast grants and thus could not estimate benefits) • IRR = 34%

  6. Viet Nam 2nd Higher Education • Sensitivity analysis • Returns to R&D reduced by ½ = 28% • Graduate earnings reduced ⅓ to ½ = 29% • Combined = 23% • (Loan repayment as a cost)

  7. Argentina Lifelong Learning • Costs • New competency-based training in 30 economic sectors • Innovations to make adult education more relevant and effective • Promotion of youth employment through training and internships

  8. Argentina Lifelong Learning • Benefits: How much must earnings increase to yield 12% (NPV @ 12% = 0) • Competency: $124 /year (well below monthly minimum wage) • Adult education: $34/year (also well below minimum monthly wage) • Youth internships: $357/year (only marginally efficient)

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