1. Financing Education The World Bank Latin America and the Caribbean Region 23 July 2003

2. Outline Lending Challenges/strategies Future approach

3. Number of Projects approved per year FY972 FY9811 FY994 FY003 FY017 FY026 FY037 Volume of World Bank LAC Specific Education Lending Specific Education LendingFY97-FY03 Specific Education Lending FY03: U$ 432 million

4. Volume of Total World Bank LAC Education Lending 0 200 400 600 800 1,000 1,200 millions of U$ 1997199819992000200120022003 SpecificAdjustment Total Education Lending FY03: U$ 772 million

5. Specific and Adjustment Education Lending for LAC FY02-FY03 Total Education Lending FY02: U$ 710 million Total Education Lending FY03: U$ 772 million Number of projects FY02FY03 Specific67 Adjustment36 Total913

6. Education Lending for LAC as a % of total WB education lending

7. Evolution of LAC Education Lending by Sub-Sector, FY91-FY03

8. Total World Bank Lending Volume and Composition FY02 Total WB Lending for FY02: U$ 19.5 billion

9. LAC Lending Volume and Composition FY02 Total LAC Lending for FY02: U$ 4.4 billion

10. Challenges Basic education –reaching last “10%” Secondary Quality Post-secondary/lifelong learning Research and innovation

11. Basic Education Education For All - Fast Track Initiative Four LAC countries selected: Honduras, Nicaragua, Bolivia, Guyana Mainly IDA countries where completion will not be achieved without support

12. Secondary enrollment in LAC – below world averages

13. But quality is poor... Outcomes uncorrelated with income

14. Lifelong Learning/ Post - Secondary Chile Reduce deficit of adults without complete basic or secondary education Provision of adult education Improve skill & productivity of labor force Improve international competitiveness Develop new modalities articulating adult education and training for workers in small and medium size enterprises

15. Innovative Delivery Utilizing the private sector Demand-side finance Student finance (higher education student loans) Lifelong learning

16. Utilizing the Private Sector Trinidad & Tobago: Public-private partnerships in child care Colombia: Private school vouchers for poor Links between universities and private sector (Chile, Mexico, Brazil)

17. Student Finance Colombia Higher Education Project Redesign and expand student loan scheme Enable needy but qualified students to attend 100,000 beneficiaries (9% of total students) Mexico Higher Education Financing Project Improve, expand student loans in Sonora Develop private sector student loan scheme Improve access to higher education

18. Future Service delivery Basic Quality Governance Knowledge economy Secondary education Sustainable higher education Lifelong learning

19. Moving Forward Market has strengths and weaknesses Government has strengths and weaknesses  Draw on strengths of both market and government  Minimize weaknesses of both  Context-specific

20. Financing and Provision of Education Provision FinancingPrivatePublic PrivatePrivate Schooling Home Schooling User fees PublicVouchers Charter Schools Contracting out Traditional Public Schools

21. Messages Investigate the market for education  Demand and supply Separate finance and provision  Role of private, NGO sector New roles for:  government, students, families, communities