1. Public Expenditure and Service Delivery in Papua New Guinea Deon Filmer Development Research Group The World Bank IWGE January 14 2005

2. Public Expenditure and Service Delivery in Papua New Guinea The PESD Survey – 214 Primary and Community Schools in – 19 districts across 8 Provinces School “ accessibility ” and poverty ranges considerably Survey instruments: school; teacher roster; select teachers; data appendix; Grade 5 teacher; Board of Management; parent; District Education Advisor; Provincial Education advisor

3. Public Expenditure and Service Delivery in Papua New Guinea Main questions – Status of service delivery — relationship to poverty and remoteness – Roles and responsibilities in service delivery – School funding – Teachers

4. Public Expenditure and Service Delivery in Papua New Guinea School funding – Tracking expenditures … a difficult task

5. Funding education in PNG 2001, million Kina Source: Based on information collected during the PESD 2002 survey.

6. Funding education in PNG 2001, million Kina Source: Based on information collected during the PESD 2002 survey.

7. Funding education in PNG Estimates of School Subsidy Leakage Percentage comparison of what a school didn’t receive relative to what was disbursed per school (range estimate for 2001) Source: PESD 2002.

8. Funding education in PNG Estimates of School Subsidy Leakage Source: PESD 2002. What happened between 2001 and 2002? 2002 was an election year. Incumbent government banned school fees, and instituted direct payment of “ school subsidies ” from central government to schools. There was large scale publicity campaign around distribution of school subsidies. The change was instrumental in reducing leakage.

9. Funding education in PNG Estimates of School Subsidy Leakage In 2003: – System reverted to a mixed direct and indirect (i.e. through Provincial budgets) payment of school subsidies. – School fees were allowed. – No information on what happened to leakage …

10. Public Expenditure and Service Delivery in Papua New Guinea School funding – The importance of teachers … and teacher salaries

11. Ghost Teachers: Discrepancy between school and payroll rosters “Ghost” teachers are more prevalent in remote provinces (and schools) Source: PESD 2002.

12. Absent Teachers: Percent absent on the day of the unannounced visit Source: PESD 2002. Absenteeism is more prevalent in remote provinces (and schools)

13. Absent Teachers: Percent of days missed since start of school year Source: PESD 2002. Cumulative absence is highest in remote poor areas

14. Teacher absence Source: PESD 2002. Teacher absence declines with parent and community involvement

15. Depletion of the effective supply of teachers Source: PESD 2002.

16. Public Expenditure and Service Delivery in Papua New Guinea Politically driven change in policy lead to a reduction in measured leakage … – … but change in political environment lead to a change in policy. “ Leakage ” affects more than just recurrent expenditures … – … for example: effective supply of teachers A combination of government and local action is needed – … for example: cleaning up “ ghost ” teachers; involving communities and parents.