1. The Role and Impact of Public-Private Partnerships in Education Harry Anthony Patrinos Felipe Barrera-Osorio Juliana Guaqueta The World Bank 2009

2. 75 million Children Out of School

3. Private Enrollment 1991-2003 Source: UNESCO

4. Rationale for Government Involvement Externalities Capital market imperfections Agency concerns Equity Information asymmetries

5. Variety of Instruments Ownership/Delivery Funding Regulation/Information

7. Public-Private Partnerships (PPPs) in Education Formal contractual arrangement Involve public and private sectors Outcome focus Sharing risks/rewards, public & private Recognize complementary roles

8. 69% 9% 5% 100%

9. Benefits of PPPs Increase efficiency Improve service delivery Secure specialized skills Overcome public service restrictions Permit quicker response Achieve scale economies Allow gov’t to focus Increase access for under-served Promote transparency

10. Concerns Contracting out services is controversial –Fears of privatization; segregation But these are empirical questions: need evidence Evaluate with valid control group & baseline Clearly specify objectives, compare relevant outcomes Randomization is gold standard; but not always possible Still, need to over come selection bias Other methods of randomization: entry, encouragement Or eligibility criteria, difference over time, instruments, matching

11. Effects of Different Types of PPPs on Delivery Factors Private management VouchersSubsidiesPrivate Finance Initiatives Flexibility+++ Quality Criteria +++ Risk-Sharing++ Competition+

12. Expected Effects of PPPs on Education Outcomes Increasing enrollment Improving outcomes Reducing inequality Reducing costs Vouchers++++ Subsidies++ Private Management and Operations + Private finance Initiatives ++

13. 92 PPP programs in 47 countries

14. …23 evaluations, 9 countries

18. Colombia

19. Concession Schools: Bogotá, Colombia

20. A Public School Concession School

21. Concession Schools, Bogota Providers contracted to manage public schools 25 schools serving 26,000 disadvantaged students Autonomous 15 year contract Designed to overcome problems faced by public schools

22. Concession Schools Impacts Reduction in dropout rates, 1999-2003 (% points)

24. Conclusions Need more evidence, but positive effects PPPs can be tailored to country Not a panacea, but can play role Not just private sector that brings gains – regulatory environment has impact Policy framework important, thinking broadly about role of government

25. Policy Implementation Issues Resistance from certain stakeholders Need consultation Improve quality of contract, implementation Produce solid & credible evidence

26. Enabling Regulatory Framework Providers in national education strategy Criteria for private school operation School funding systems that integrate Effective quality assurance system

27. Thank you Harry Anthony Patrinos hpatrinos@worldbank.org