PUBLIC-PRIVATE PARTNERSHIPS FOR EDUCATION Presented at the World Bank Training Course April 11, 2002 Professor E.S. Savas School of Public Affairs, Baruch College, City University of New York

Compaq: GOVERNMENTAL Government NONGOVERNMENTAL

Individual goods Common- Exclusion pool goods Consumpt ion Collective Feasible Exclusion Infeasible Fish in the sea Indiv Private auto Higher education Consumpt ion Taxi Primary education Bus City street Turnpike Highway National defense Joint Cable TV Collective goods Toll goods

INSTITUTIONAL ARRANGEMENTS

SERVICE ARRANGEMENTS FOR EDUCATION svc arrangements, 1

SERVICE ARRANGEMENTS FOR EDUCATION svc arrangements, 2

TYPICAL PROBLEMS OF PUBLIC SCHOOLS

PUBLIC POLICIES TO EXPAND PRIVATE EDUCATION

EDUCATION TRENDS AND PRIVATE-SECTOR POTENTIAL (1)

EDUCATION TRENDS AND PRIVATE-SECTOR POTENTIAL (2)

ARGUMENTS FOR VOUCHERS 6.

Selected Examples of Demand-Side Financing in Developing Countries Mechanism Country Public stipend/ Bangladesh, Indonesia, Guatemala, Scholarship Mozambique, Pakistan Community Financing Chad, El Salvador, Myanmar, Pakistan Targeted Bursaries Brazil, China, Colombia, Mexico, Tanzania Voucher-type scheme Chile, Colombia, Côte d’Ivoire, Kenya Public subsidies to Belize, Czech Republic, Dominican Private schools Republic, Lesotho Community grants Bangladesh, Brazil, Pakistan Matching grants Botswana, China, India, Tanzania

Growth in Private Enrollments, West Africa (%) 66 Tertiary 8 Secondary/Senior Secondary 72 20 Middle/Junior Secondary 32 123 6 Primary 123 40 20 40 60 80 100 120 140 Côte d’Ivoire(Average annual growth from 1991/92 - 1995/96) Senegal (1987/88 - 1997/98) The Gambia (1993 - 1996)

Private Enrollment in Primary Education (%)

Private Enrollment in Tertiary Education (%)

Inequitable Public Spending: Distribution of Public Expenditures by Income Quintile

Private Business Schools in Eastern Europe, 1998 Poland 91 Czech Republic 29 Armenia 21 Romania 18 Bulgaria 4 Slovenia 1 Macedonia 0 Apollo Group (Univ of Phoenix) -- Apollo International Sylvan Learning Systems -- Universidad Europea de Madrid Unext.com? Columbia, Chicago, Stanford, LSE, Carnegie Mellon

Private Spending on Education as Percent of Total Education Spending, all Levels Uganda Chile Korea Indonesia United States Mali Japan Germany France Denmark Netherlands Sweden 57 45 41 37 26 25 23 22 9 7 3 2 10 20 30 40 50 60

THE CHALLENGE To promote the sustainable supply of quality private education at all levels