Education and the World Bank in India Sam Carlson Lead Education Specialist scarlson@worldbank.org

Summary Primary education is a fundamental right in India, and at the international level an important Millennium Development Goal to which India and the Bank are totally committed. GOI and States increasingly recognize education as a critical input for human capital development, employment/ jobs, and economic growth, and are putting major financial and technical resources into this effort. Nevertheless, demand for education far exceeds supply, in terms of both access and quality, at all levels. Anxious to get YOUR views as to how the Bank can improve its impact on access, learning outcomes and reducing skills shortages.

Basic Education Two decades of focused programs in basic education have reduced out-of-school youth to about 10 M (down from 25 M in 2003), most from marginalized social groups. Net enrollment rate is 85%, with social disparities. Key challenge is to finish the “access agenda” and dramatically increase focus on quality, with more attention to classroom processes, basic reading skills in early grades, teacher quality and accountability, community/parent oversight, evaluation/assessment.

Secondary Education Access and Quality remain big challenges. Gross enrollment rate of 40%, with significant gaps between genders, social groups, urban/rural, such that most secondary students are urban boys from wealthier population groups. Private aided and unaided schools = 60% of all secondary schools, and growing. Overloaded curriculum, poor teaching practices and low primary level quality affect secondary quality.

Vocational Education and Training (VET) VET system is small, and not responding of needs of labor market; <40% of graduates find employment quickly. Insufficient involvement of industry and employers in VET system management, internships. Lack of incentives of public training institutions to improve performance.

Technical and Higher Education Numerically huge: 330 universities and 18,000 colleges Substantial private provision in professional education. But just 11% of youth 18-23 are enrolled. Problems of capacity, quality, relevance, and public funding. Hard to retain qualified faculty. Limited research. Several world-class institutions.

GOI Education Strategy Unprecedented priority to universal elementary education. Sarva Shiksha Abhiyan: aims to universalize elementary education by 2010, and improve learning outcomes. Education cess of 3% on income tax, corporation tax, excise and customs duties generates necessary resources Cost-Share: was 50/50 (2007), moving to 65/35 Center/State Estimate: 11th Plan: ’07-’12: 60,000-70,000 crores (US$17 billion) Increased focus on quality and upper primary in phase II.

GOI Strategy (continued) National Mission for Skills is being set up, looking at both VET and secondary education New centrally sponsored scheme to update all industrial training institutes (ITIs) Significant investments in higher education (including reforms and expansion) are expected

Bank Strategy and Support IDA Lending: 0%, 35 years to repay with first 10 years “grace” (no repayment) Since FY00: over US$ 1 Billion (Rupees 40 billion) committed to sector. Over last 10 years: eight State-level District Primary Education Projects US$ 500 M for SSA I; Additional US$500 M in November 2007 for SSA II Increased focus on quality in SSA II Partner with European Commission and UK DFID Still a small player: Bank $ is less than 10% of GOI $

Bank Strategy and Support (continued) US$ 280 M for VET: support 400 Industrial Training Institutes, for improved quality and relevance (June 2007) US$ 250 M for Technical Education and Engineering: reforms in 128 competitively selected engineering institutions in 13 states to address skills shortages US$ 70 M for polytechnics in six remote states (possible $300 M additional) State education reforms in Orissa and AP

Collaboration with Civil Society Over 7,000 NGOs participating as partners in SSA Alternative education programs: “bridge courses” Monitoring of quality Capacity-building of VECs Reference Groups advising States, Districts and Blocs Contracting (e.g. MP with Pratham) Not surprisingly, varies greatly by State

Bank Research Elementary Education Impact evaluation regarding: Incentive payments and schooling inputs on student learning Dissemination of education information on school governance and student outcomes School characteristics and student outcomes Instructional time on task survey

Bank Research Early Childhood Development – focus on integrated (health/nutrition/education) approaches Will feed into US$ 450 M Integrated Child Development Services Project Secondary Education – major analytical study related to expanding access, particularly for girls and marginalized groups, and to role of private sector Higher Education – contribute to debate regarding how India can address skills shortages among HE graduates, linked to economic growth opportunities.

Bank’s Limitations Engagement in Indian education is largely through centrally-sponsored schemes, while most implementation happens at the State level. Need to find ways to foster dialogue and technical assistance with States, and increase exchanges with civil society on substantive policy issues.

Additional Issues for Discussion Access versus quality tradeoffs Role of public and private sectors in education financing and provision Prioritization of education levels (basic, secondary, VET, higher) Role of civil society in policy debates and project implementation

Thank You