private education in developing countries

8/7/2019 Private Education in developing countries

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Private Higher Education inDeveloping Countries:


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It doesnt matter if a cat is black or white, as long

as it catches mice.

Deng Xiaopings signature phrase,first uttered in the early 1960s


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The Global

Education

Market


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The Global Education Market

Education market in many developed and developing countries

is significant and growing:

global education marketplace equal to $2 trillion (Merrill Lynch)

15% of global education market is in developing countries

significant private sectors in several developing countries -

Argentina, Colombia, Cameroon, Indonesia, India, Cote dIvoire,

Peru, etc

increased use of innovative finance and delivery mechanisms in

both developed and developing countries.


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Private Higher

Education

Market


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Private Higher Education in Developing Countries

Higher education in many

developing countries is

dominated by the public sector

- provision and funding

But, this is not true everywhere

- some countries have

significant private higher

education sectors when

measured in terms of share of

enrolments.

Private Sector Share of Higher

Education Enrolments

Korea 75%

Indonesia 65%

Philippines 80%

Colombia 60%

Brazil 60%

Source: The World Bank (1994)


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Further evidence on size of private higher education sector

comes from a series of World Bank/International Finance

Corporation studies of private education markets in

developing countries

Detailed studies of private education sector in Ghana,

Cameroon, The Gambia, India, Senegal, Cote dIvoire,

Oman, Mauritania, China, India, Uganda, Zimbabwe andBahrain

Country overviews in James Tooleys IFC book.


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Studies show that size of private higher education sector

varies greatly - significant in some countries and sectors,

but small in others:

100% of professional training market in Cote dIvoire

44% of skills training market in The Gambia

almost non-existent in Mauritania

75% of tertiary colleges in India

9 private colleges and 200 private training institutes with 8,200

students - 21% of higher education sector - in Oman

1,274 private institutions, with 4 million students in China

37 tertiary institutions in Ghana (11 accredited).


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Common characteristics of private higher education sector: fees are main source of revenue

private institutions serve both rich and poor - generally second chance

students who could not get admission to public universities

sector is generally younger than private school sector (e.g., 1980s in post-reform China, 1990s in West and Central Africa)

complete range of institutions - from full-fledged universities to institutions

that prepare students for national exams

range of institutional types - franchises, chains, sole proprietorships, for-

profit companies, not-for-profits, religious-based organisations

institutions generally offer a limited range of professional/practically orientedcourses (e.g., accounting, management, English)

often use part-time staff (practitioners, professors from public institutions)

regulatory framework less developed than in school sector.


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Institution Profile: Groupe Pigier, Abidjan, Cote dIvoire

Established 1956. Focus on

professional training - accounting,

management, etc

Franchise of 150 yr old Paris-based firm

Fees range from $US750 to $US1,166per year

2,000 students - 50% Government

sponsored

Strong emphasis on quality assurance -

staff training, inspection of teachers,assessment of student progress,

curriculum advisory panel

Exam results above national average in

all areas.


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Private Higher Education in Developing Countries:Significant Growth

Private higher education is growing strongly in many countries:

at least 3 new university colleges currently being set up in Ghana

a new private university is being created in Bahrain

3 private universities approved in Oman. Nine private colleges created

since mid-1990s

500 new tertiary institutions created in China between 1995 and 1999

7 applications for private universities and 25 for private training colleges

in Cameroon

recent UNESCO report called growth of the private sector the most

significant development in Arab higher-education systems in the 1990s.


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Why Private Higher Education is Growing

Demand for qualifications is high

- significant excess demand for

tertiary places

Demand for job-oriented skills ishigh - IT, Engineering, Management

International orientation (e.g.,

2+2, English language, alliances

with foreign institutions, etc)

Policy changes to encourage

private sector growth

Macro factors - currency

devaluations, economic growth.


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Lessons for

Private

Education


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The Demand for Private Education

Government affects the demand for private education

Developing countries face many challenges in common budgetary constraints

high population growth rates increasing urbanisation

low per capita incomes

globalisation

high demand for education

Public education is under pressure disparities in access to education (e.g., girls, rural, poor)

low enrolment ratios

poor quality of public education

poor quality of public spending

education already a high proportion of the budget.


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The Supply of Private Education

The private sector is growing in response

primary, secondary and tertiary education

for-profit and non-profit

high and low quality

Government affects the efficiency of private education

funding (supply vs demand side)

entry provisions (direct and indirect barriers to entry)

regulation (eg non-profit)

indirect barriers to entry (eg red tape)

Government affects the equity of private provision

funding (supply vs demand).


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Institution Profile: Bhopal School of Social Sciences,Bhopal

Private aided Catholic college

Established 1972

Affiliated with Barkatullah

University

1,200 students

Generally middle class

Excess demand for most

courses

Initial infrastructure funded by

diocese

Some teacher salaries paid by

government (decreasing by 20%pa over 5 years)

Tuition fees Rs 3,000/yr

Quality constrained by

Barkatullah University - syllabus

not challenging enough and fees

capped

Plan to become autonomous

college


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What Government can do to Facilitate the Contribution ofthe Private Sector

Design framework based on assessment of appropriate role of

the state in education. Employ the right regulatory mix: ownership

funding

regulation

Adopt a light-handed and neutral regulatory framework:

no controls on fee setting by private institutions

no unnecessary barriers to entry

focus on information provision and ongoing review, rather than tightregulation and input controls to protect quality

clear, objective and efficient processes for accreditation

allow range of providers to operate - for-profits, not-for-profits

neutral and targeted funding and student assistance arrangements.


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What Government can do to Facilitate the Contribution ofthe Private Sector

Allow foreign institutions to operate domestically and allow

mutual recognition of degrees with foreign institutions

Make use of innovative instruments such as contracting,

demand-side financing, private regulation and methods of

disseminating information

Set up appropriate legal frameworks for private sector, including

recognition of private sector role in legislation

Provide a strong macro regulatory framework to support private

sector (including employment law, company law, judicial system,

etc).


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Institution Profile: Sichuan Normal University Film andTelevision Art Promotion College, Chengdu, Sichuan

Private boarding college, affiliatedto a public university. Offers 2 and3 diplomas and 4 year BachelorsDegrees

Established 1992, affiliated 1995 450 students from Sichuan Province

pay fees of RMB10,000/year

Affiliation allowed film school tomore easily obtain degree-granting

status, which would have been diffi-cult as a private provider (only 37degree-granting providers in China)

Students graduate with SNUdegree.


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Quality Assurance: Examples of Light Handed Regulation

Quality assurance is key issue in private education debate.

Many ways to help maintain/lift quality: promote competition and keep barriers to entry low

ensure consumers are provided with information

importance of developing brand name - whether institution-based or

groups of providers (e.g., NZAPEP, Catholic education, etc)

allow foreign institutions to operate and mutual recognition of degrees to

ensure international quality benchmarks apply

use of franchises and chains of institutions (e.g., NIIT, South Ocean

Schools in China, Sabis Schools in Middle East) that bring a strong

curriculum, culture of quality assurance and brand name

ongoing quality review/audit with focus on outputs/outcomes, not inputs.


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Quality Assurance: Examples of Light Handed Regulation

Many examples of light-handed quality assurance mechanisms:

requirement that private colleges in Oman be affiliated to foreign institutions

in order to receive accreditation

use of private sector in carrying out school reviews (e.g., CfBT undertakes

reviews of public schools in Oman)

private sector provides information for consumers - Good Universities

Guide in Australia

the Bahrain government provides info on private schools on the internet

private sector provision of school and university accreditation services (e.g.,

Seventh Day Adventist run their own accreditation services)

ERO review of New Zealand schools

Ghanas requirement that institutions begin as university colleges affiliated

to domestic universities before moving to university status.

Private sector can play big role in regulating quality.


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Private Education

and the WorldBank/IFC


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Private Education and the World Bank/IFC

World Bank/IFC have recently begun an initiative to promote

private education in developing countries. This work includes:

Promoting policies to client governments that encourage growth of the

private education sector

Carrying out surveys of private education market and legal/regulatory

framework in client countries

Publishing profiles of private education market in developing countries

Development of EdInvest (Match.com for private education investors and

those seeking investments)

Increased IFC involvement in financing of private education including loan

guarantees, equity investments, financing student loan schemes. First

investments in Pakistan, Uzbekistan and West Africa. Examining other

possibilities in Vietnam, India, China, etc.

private education in developing countries

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