Public-Private Partnerships in Education Contracting Forms Harry Anthony Patrinos The World Bank 2010
75 Million Children Out of School Low Academic Achievement Private Enrollment Returns to Education by Level PrimarySecondaryHigher PrivateSocial Latest estimates (97 countries)
Premise Government’s Role Externalities Capital market imperfections Agency concerns Equity Information asymmetries Variety of Instruments Ownership/Delivery Funding Regulation/Information
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
Nascent Integral EmergingEngagedLacks Public provides, finances, regulates education services Vouchers, Loans, Scholarships. Funding follows student. Moderate Subsidies to private schools Contracts with private schools to provide a portion of education. Private schools Low PPPHigh PPP 100% Public100% Private Private Management of public schools PPP Continuum
69% 9% 5% 100%
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