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Public-Private Partnerships in Education Contracting Forms. Harry Anthony Patrinos The World Bank 2010. 75 Million Children Out of School. Low Academic Achievement. Private. Social. 35. 26.6. 30. 25. 18.9. 19.0. 17.0. 20. 13.1. Returns to Education by Level.

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Public-Private Partnerships in Education Contracting Forms

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Public-Private Partnerships in EducationContracting Forms

Harry Anthony Patrinos

The World Bank

2010


75 Million Children Out of School

Low Academic Achievement

Private

Social

35

26.6

30

25

18.9

19.0

17.0

20

13.1

Returns to Education by Level

  • Private Enrollment 1991-2003

10.8

15

10

5

0

Primary

Secondary

Higher

Latest estimates (97 countries)


Premise

Government’s Role

Variety of Instruments

Ownership/Delivery

Funding

Regulation/Information

  • Externalities

  • Capital market imperfections

  • Agency concerns

  • Equity

  • Information asymmetries


PPPs can be defined as a contract that a government makes with a private service provider to acquire a specified service of a defined quantity and quality at an agreed price for a specified period


Framework


PPP Continuum

Low PPP

High PPP

Integral

Moderate

Lacks

Nascent

Emerging

Engaged

Vouchers, Loans, Scholarships. Funding follows student.

Public provides, finances, regulates education services

Private schools

Subsidies to private schools

Contracts with private schools to provide a portion of education.

Private Management of public schools

100% Public

100% Private


100%

69%

9%

5%


Benefits of PPPs

  • Efficiency

  • Service delivery

  • Specialized skills

  • Overcome public service restrictions

  • Quicker response


Concerns

  • Contracting out services is controversial

    • Privatization

    • Socioeconomic segregation

    • Poorer students left behind

  • But these are empirical questions

  • Base decisions on facts, not opinions

  • How to evaluate


Issues

  • Resistance from certain stakeholders

    • Teachers and other employees

    • Civil service

  • Can block, severely delay, stifle reforms…

  • Consultation

  • Quality of contract design, implementation

  • Create credible evidence


Evidence on Private School Choice


Education Service Contracting:The Philippines


Concession Schools:Bogotá, Colombia


Private Education Provision and Public Finance: The Netherlands


Thank you

Harry Anthony Patrinos

hpatrinos@worldbank.org


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