Alternative Financing for Delivery of Education Services in Pakistan

1. Alternative Financing for Delivery of Education Services in Pakistan Supply and Demand for Educational Services: Access, Quality, and Responsiveness to Local Needs Dr. Allah Bakhsh Malik PhD June 13, 2012

2. Pakistan Map

3. Alternative Financing for Delivery of Education Services in Pakistan • Pakistan a country with 192 million population • Literacy rate 61%: 69% male and 45% female • One out of three children not going to school • 40% drop-out before Grade 4, 23% enrolled appear for Grade 10 • Issues: access, quality, equity, infrastructure, missing facilities, teacher absenteeism, truancy, financing, and questions of political economy • Private school system expanding fast • PIHS 2001 Surveys and NEC 2006

4. Punjab Province

5. Alternative Financing for Delivery of Education Services: Design & Instruments • Instruments designed for PPP in education in Punjab – The largest province through Punjab Education Foundation - PEF • Replication in all provinces and territories with minor variations due to local context • English medium schools are priority of parents • Comparative cost of education in Public and private schools: PKRs. 2300 & PKRs.400 • Alternate sourcing of education: Financing through public funds and service delivery by private sector

6. Alternative Financing for Delivery of Education Services: Design & Instruments • Initiative through legislation by Parliament • Administrative and financial autonomy • Better service delivery with better learning outcomes at a much lower cost • Exponential growth: 2005 to 2012, schools 54 to 2227, students 18 thousand to 1.6 million, financing from 5 million to 6 billion, expansion from 5 districts to 36

7. Alternative Financing for Delivery of Education Services: Design & Instruments • Could have been even better sans political ownership and consistency • Program stalled in 2008 due to change in Government for more than a year • Public pressure on political economy for continuity of program: more than a million families are beneficiary

8. Vision for Alternate Financing in Punjab Promote quality education through Public-Private Partnership, encourage and support the efforts of private sector through technical and financial assistance, innovate and develop new instruments and enable private educational institutions to champion wider educational opportunities at affordable cost to the poor

9. Successful Initiatives through Alternate Financing • Foundation Assisted Schools - FAS • Continuous Professional Development Program - CPDP • School Leadership Development Program - SLDP • Subject Based Support Program - SBSP • Skill Development Program - SDP • Education Voucher Scheme - EVS

10. Foundation Assisted Schools - FAS • Assistance @ PKRs.400 and PKRs. 500 (Primary to Higher Secondary) on per child enrolled basis, driven by considerations of equity, access and quality; • School selection criteria; Physical infrastructure 20%, Faculty 20%, Quality Assurance Tests (QAT) 60%, • Selection of schools on merit through a transparent process; • Enrolment in schools: 100 -750; • Correct reporting of enrolment in school and QATs - chief determinants for continuation of financial assistance; • School does not charge students; • Household income increased: Parents relieved from payment of fee;

11. Foundation Assisted Schools - FAS • Schools relieved from collection of fee - concentrate on quality of education; • Results of QATs very encouraging : Mean average moved from 63% (2005) to 89 % (2011); • Schools invested heavily in infrastructure to accommodate more students; • 40 % overall increase in enrolment in partner schools; • Incessant demand; all districts enthusiastic to join; • Gender ratio: 50:50; • Inclusive model; • Demonstrated that better quality education can be provided at a cost lower than public sector;

12. Foundation Assisted Schools - FAS • QATs of partner schools after every six months, 66.6% students to get 50% marks; threshold being raised by BOD, • Ranking of schools, financial assistance will vary on the basis of QAT results; • QAT outsourced; • Girl’s education priority, 4 Higher Secondary Schools for females; • Honoraria: Rs.50,000 on high performance – above 90%; • Reward for best performing schools in districts in future;

13. Geographic Location

14. Level Wise

15. Gender Wise

16. Continuous Professional Development Program: Financing by Public Sector and Service Delivery by Private Sector and Institutions • Private sector expanding fast; • No institutional arrangements for professional development of teachers in private sector; • PEF entered into partnerships with 40 lead NGOs and elite private teacher training institutions; • Sharing resources: infrastructure and utilities by the focal institution; • Financial and technical input by PEF; • Initiative welcomed by private schools; • Ravenous market and incessant demand;

17. Training workshops conducted 3300 2005-2011 Teachers trained 102,000 Male 15% Female 85% Schools benefited 19487 Average cost per participant 2100 Cost effective and economical model in PPP Continuous Professional Development Program Achievements

18. Workshops for Principals/Heads, Vice Principals/Deputy Heads 1240 Principals/Heads trained 15000 Male 15% Female 85% Institutions benefited 11900 Average cost per participant 1850 School Leadership Development Program: Financing by Public Sector and Service Delivery by Private Sector

19. Subject Based Support Program: Financing by Public Sector and Service Delivery by Teachers – Private Sector • Low cost educational institutions lack resources to afford qualified subject specialists; • PEF engage Subject Specialists of very high quality • Financing by PEF and management by private sector • Focus on problem areas and impact peers and associates; • Sharing Resources: Science Labs for cluster of schools; • Model Labs established

20. Education Voucher Scheme: Financing by Public Sector and Service Delivery by Parents and Private Sector • Education in decrepit slums – poorest of the poor; • Freedom of Choice to access a school; • Funding by PEF and management by private sector • Pilot Project: Voucher of Rs.400/= per child; • Targets are residents of slums and remote rural areas; • Started in August, 2006; • 100,000 Vouchers; • For each child 5-13 years;

21. Education Voucher Scheme • Non-tradable instrument; • Redeemed at any participating school within 2-kilometer radius of slums • Sustained retention and no drop out; • EVS and FAS two competing instruments; • Gnawing need to expand due to incessant demand and astounding success; • Prodigious accomplishment;

22. Skill Development Program: Financing by Public Sector and Service Delivery by Private Sector Technical Institutes • Skill for adult illiterates and drop-outs • Vocational training in clusters • Payment to service provider is linked to quality of mentoring judged by third party independent evaluation • Out-sourcing to private technical institutes • Easier, faster and cost-effective • Skills linked with market, self-employment and entrepreneurship • Target: women in rural areas and urban slums

23. Situation Analysis: Issues, Challenges, Hopes and Opportunities • Variation in Feedback from different regions but success in terms of quality, responsiveness and cost-effectiveness are common features • Effective M&E System • Transparency and Accountability: Audit of Accounts, Internal and External Checks: • Internal: Finance Committee constituted by Board; • Third Party Evaluation • Trust of people ? • Political involvement? • Selection of schools on merit? • Enrolment capped? • Waiting for elections and new set-up!!!!!!!!!!

24. Conclusion • Alternative Financing for Delivery of Education Services is a successful and replicable model provided that there is: • Political will and ownership • Well designed instrument with proper legislative cover • Autonomy • Efficient implementation mechanism • Monitoring and evaluation • Organizations on learning curve; balancing and reinforcing; based on compensating feedback

25. Sources Punjab Education Foundationwww.pef.edu.pk Asian Development Bank http://www.adb.org/publications/public-private-partnerships-education-lessons-learned-punjab-education-foundation UNESCOhttp://unesco.org.pk/education/documents/situationanalysis/Education_Policy_Analysis_for_Punjab.pdf Freedom of Choice: Malik, A. B (2007) http://books.google.com.pk/books NCSPE Teachers College Columbia University NYhttp://www.ncspe.org/list-papers.php Commonwealth Education Partnershipswww.nexuspartnerships.com; www.commonwealth-of-nations.org; www.cedol.org

26. Alternative Financing for Delivery of Education Services in Pakistan Thanks