Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 3423a-PH

STAFF APPRAISAL REPORT

PHILIPPINES

SECTOR PROGRAM FOR ELEMENTARY EDUCATIO}

May 29, 1981

Projects DepartmentEast Asia and Pacific Regional Office

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENT

P 7.5 = US$1.00

P 1.0 = US$0.13

GLOSSARY

BEE - Bureau of Elementary Education in the Ministry of Educationand Culture

EDPITAF - Educational Development Projects Implementing Task ForceMEC - Ministry of Education and CultureMIS - Management Information System of the Office of Planning

Services in the MECMPW - Ministry of Public WorksNEDA - National Economic Development: AuthorityOPS - Office of Planning Services in the MECSOUTELE - Survey on the Outcomes of Elementary Education

GOVERNIENT OF THE PEIILIPPINESFISCAL YEAR

January I-December 31

GOVERNMENT OF THE PHILIPPINESSCHOOL YEAR

July-April

f

FOR OFFICIAL USE ONLY

PHILIPPINES

SECTOR PROGRAM FOR ELEMENTARY EDUCATION

Table of Contents

Page No.

BASIC DATA

1. INTRODUCTION ... . . . . . . . . . . . . . . . . . . . . . . 1

2. ISSUES IN ELEMENTARY EDUCATION . . . . . . . . . . . . . . . . 3

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . 3Main Issues. . . . . . . . . . . . . . . . . . . . . . . . . 4Policy Problems. . . . . . . . . . . . . . . . . . . . . . 4Sector Finance .... . . . . . . . . . . . . . . . . . 4Teacher Utilization .... . . . . . . . . . . . . . . 5Student Admnissions and Progression . . . . . . . . . . . 5

Management Problems. . . . . . . . . . . . . . . . . . . . . 6Bureau of Elementary Education and the Regional Offices. 7Office of Planning Services and Regional Planning Staff. 9Textbook Agency. . . . . . . . . . . . . . . . . . . . . 10

Performance Problems .1.0.. . . . . . . . . . . . . . . . . loCurriculum and Teaching Methods. . . . . . . . . . . . . 11Instructional Materials. . . . . . . . . . . . . . . . . 14Facilities. . . . . . . . . . . . . . . . . . . . . . . 14Teachers ..... . . . . . . . . . . . . . . . . . . . 16

3. SECTOR PROGRAM FOR ELEMENTARY EDUCATION . . . . . . . . . . . 16

Strategy .... . . . . . . . . . . . . . . . . . . . . . 16The Sector Development Program . . . . . . . . . . . . . . . 19Policy Changes . . . . . . . . . . . . . . . . . . . . . . 19Regional Expenditure Allocations . . . . . . . . . . . . 19Apportionment of Recurrent Expenditures . . . . . . . . 20Teacher Utilization . . . . . . . . . . . . . . . . . . 20Student Admissions and Progression . . . . . . . . . . 21

Management Changes .... . . . . . . . . . . . . . . . . 22Bureau of Elementary Education and the Regional Offices 23Office of Planning Services and RegionalPlanning Units ...... . . . . . . . . . . . . . . 25

The Instructional Materials Corporation . . . . . . . . 26Performance Improvements (Expenditure Components). . . . . 28

Curriculum and Teaching Methods . . . . . . . . . . . . 29Instructional Materials . . . . . . . . . . . . . . . . 31Facilities . . . . . . . . . . . . . . . . . . . . . . 33

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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Page No.

Teachers .... . . . . . . . . . . . . . . . . . . . 35Staff Development . . . . . . . . . . . . . . . . . . . 35

Sector Evaluation . . . . . . . . . . . . . . . . . . . 37

4. MANAGEMENT A-ND IXPLEMENTATION OF THE SECTOR PROGRAM . . . . . 39

The Sector Approach ... . . . . . . . . . . . . . . . . . 39Organization and Staffing ... . . . . . . . . . . . . . . 40

Organization ... . . . . . . . . . . . . . . . . . . . . 40

Staffing . . . . . . . . . . . . . . . . . . . . . . . . . 40Procedures for Subproject Processing . . . . . . . . . . . . 43

Identification and Preparation . . . . . . . . . . . . . . 43

Appraisal. . . . . . . . . . . . . . . . . . . . . . . . . 43

Approval . . . . . . . . . . . . . . . . . . . . . . . . . 43Supervision. . . . . . . . . . . . . . . . . . . . . . . . 45Monitoring ... . . . . . . . . . . . . . . . . . . . . . 45

Guidelines and Criteria for Investment and Approval of

Subprojects . . . . . . . . . . . . . . . . . . . . . . . 45

Guidelines for the Allocation of Funds . . . . . . . . . . 45Criteria for Subproject Approval . . . . . . . . . . . . . 46

Implementation Schedule. . . . . . . . . . . . . . . . . . . 47

5. PROGRAM COSTS AND FINANCING. . . . . . . . . . . . . . . . . . 48

Development Expenditures . . . . . . . . . . . . . . . . . . 48Recurrent Cost Implications . . . . . . . . . . . . . . . . 52Financing and the Bank Contribution . . . . . . . . . . . . 53Procurement ... . . . . . . . . . . . . . . . . . . . . . 54Disbursements. . . . . . . . . . . . . . . . . . . . . . . . 55

Accounts, Documentation and Auditing . . . . . . . . . . . . 56

6. BENEFITS AND RISKS .57

Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . 57Risks.. .. 58

7. AGREEMENTS REACHED AND RECOMMENDATIONS . . . . . . . . . . . . 59

LIST OF TABLES

2.1 Regional Variations in Educational Opportunity . . . . . . . 112.2 Elementary Education - Participation, Survival and

Achievement Rates by Region, 1978/79 ... . . . . . . . . 122.3 Estimated Needs for Elementary Classrooms at the Start of

School Year 1978/79 ... . . . . . . . . . . . . . . . . 152.4 Student-Teacher Ratios in Public Elementary Schools, 1978/79 17

Page No.

3.1 Projected Requireiients for Elementary School Teachers . . . 213.2 Targeted Rates f)r Participation of Seven-Year Olds and

for Cohort Survival in Elementary Education . . . . . . . 223.3 Projected Enrollment and Efficiency Rates . . . . . . . . . 233.4 Elemetntary CurriculIlm - Time Allocations by Subject . . . . 303.5 Scheduled Introduction of New Series of Basic Textbooks 323.6 Staff Development - Workshops . . . . . . . . . . . . . . . 364.1 Regional Guidelines for the Allocation of Development

Expenditures . . . . . . . . . . . . . . . . . . . . . . 465.1 Ten-Year Development Program - Estimated Expenditures by

Year and Category ... . . . . . . . . ..... . . . . 495.2 Development Expenditures by Type of Expenditure, 1982-85 505.3 Development Expenditures by Local and Foreign Currency

Components 1982-85 . . . . . . . . . . . . . . . . . . . . 515.4 Estimated Recurrent Costs for Elementary Education . . . . . 535.5 Financing Plan, 1982-85 . . . . . . . . . . . . . . . . . . 535.6 Disbursements Schedule by Semester . . . . . . . . . . . . . 55

CHARTS

2.1 Philippines - .Ministry of Education and Culture(Organization Chart) ... . . . . . . . . . . . . . .. 8

4.1 Sector Program for Elementary Education - ManagementResponsibilities ... . . . . . ..... . . . . . . . . 41

4.2 Sect)r Program for Elementary Education - Procedures forGenerating and Processing Subprojects .......... 44

ANNEXES

1. Comparative Education Indicators2. Materials in the Program File3. Terms of Reference for Program Technical Staff4. Guidelines for the Allocation of Development Funds and Criteria for

Subproject Approval5. Implementation Schedule

MAP

PIIILIPPINES

SECTOR PROGRAM FOR ELEM4ENTARY EDUCATION /a

Basic Data

GENERAL

Population (mlns.) 46.8Annual Growth (x) 2.4/b

Labor Force (mlns) 16.8 /cParticipation Rate (%) 63 /c

Employment by Sector (%)Agriculture 48Industry 18Services 34

GNP per capita (US$) 600

EDUCATION EnrollmentNet Parti-

Enrollment cipationEnrollments (mlns) Rate (%)

Elementary Schools 7.8 84Secondary Schools }Vocational Schools } 2.9 55Colleges, Universities 1.1 21

Literacy Rate (%) 75/d

Elementary EducationRate of Student Completion (%) 65Rate of Student Progression

to Secondary School (%) 89

/a Data are for 1979 unless otherwise noted. Further comparative dataare shown in Annex 1.

lb Growth rate for 1980.

Ic Data for 1978.

/d Although literacy rates as high as 90% of the population aged 10 yearsor more have been reported in the Philippines since the mid-1970s,more recent government data suggest a rate on the order of 75%. Giventhe large proportion of adults who never completed elementary schooling(60% of the population over 25 years of age in 1975), the lower rateappears to be reasonable.

Grades 1-4 142,400Teacher-Student Ratio 1:40

Grades 5-6 106,000Teacher-Student Ratio 1:20

Expenditures on Education

Total Public Expenditure on Formal Educationas % of 5NP 2.8as % Total Public Expenditure 14.0

Public Expenditure for Elementary Level

Recurrent expenditureper student/year (US$) 42 /a

% salariesand administration 98

Capital expenditureper student/year (US$) 4 /a

/a Expenditure for 1980.

INTRODlUCT IO

1.01 Development strategy and related requirements for human resourcedevelopment in the Philippines have undergone a shift in emphasis since thenid-1970s. Throughout the l960s and early 1970s, development policy stressedgrowth in output in agriculture, traditional exports and large-scale industry.More recently, facing limits to further agricultural expansion, publicresourze constraints and problems of unemployment, development strategy haschanged. Emphasis is given to greater self-sufficiency in food production andenergy, agricultural diversification and development of small and medium scalemanufactures (including nontraditional exports) to generate productiveemployment and alleviate poverty. Particular priority is given to providingopportunities to the rural population to adopt improved agricultural methodsand to acquire new, off-farmn skills to maintain or generate productiveemployment and to raise incomes.

1.02 The development strategy supports the widespread provision of basicinfrastructure and services, including education, as requirements for achiev-ing productivity and employment objectives. Both the economic developmentprocess and the task of subsequent learning (through work or future education)are enhanced by general education. The knowledge, attitudes and skills devel-oped through effective basic education are essential for attaining developmentobjectives. Recent research demonstrates a positive relationship among basiceducation, farm productivity, health and ability to adapt to socio-economicchange./I

1.03 Despite relatively high participation rates, basic education inthe Philippines requires strengthening to achieve the desired development ofskills. In the first (elementary) cycle of educat.in, disparities, reflectedin regional variations in student participation and achievement, remain; theaverage quality of education, reflected in student performance on standardachievement tests, is low; and inefficiencies, reflected mainly in dropoutrates, persist. To support the development strategy, improvements in thequality of basic education, with emphasis on reaching Large numbers of disad-vantaged youths, are required.

1.04 During the mid- and late-1970s, the Government began to addressthe problems of its basic education system. It initiated a program for text-book development and production (assisted by the Bank through Loan 1224T-PH),developed and experimented with a revised curriculum and educational radiofor elementary education (the latter assisted by the Bank through LoanS-8-PH), and launched a regular program for the expansion and replacement ofschool facilities. A 1977 Bank sector memorandum recommended that furtherattention be directed towards improving the quality and efficiency of basic

/1 For discussion on education as a requirement for sustained development,see the Education Sector Policy Paper, IBRD, April 1980, especially pp.12-15; and Philippines: Poverty, Basic Needs and Employment, IBRDReport 2984-PU of December 1, 1980, pp. 30-31 of main volume.

education./l During 1979 th-e Government prepared a ten-year development pro-gram designed to reduce disparities and improve overall quality and efficiencyin elementary education./2 Thnis program was submitted to the Bank to supporta request for a loan -in October 1979 and forned the hasis for Bank pre--appraisal during Novenher-December 1979. Appraisal was carried out duringSeptemiber-October 1980 /3 with foLlow-up in February 1981.

1.05 The Oovernment-s development program (1981-90) addresses the mainpolicy, management and quality issues in elementary education. Revisedpolicies for finance and management would be introduced to reduce disparitiesin educational opportunity and to support general improvements in quality andefficiency. Further modifications would be made in the organization andfunctions of the main agencies involved in the sector to improve managementand planning. Development funds would be allocated for curriculam develop-ment; provision of textbooks and related materials; facilities and equipment;monitoring of teacher supply; staff development; and sector evaluation. Theproposed loan of USSI0O0 million would help to finance development comnponentsscheduled during the four year period 1982-85.

1.06 The Bank thas previously supported six education projects in thePhilippines. (Related loans and credits have amounted to US$108.7 million)./4

/1 Philippines Education Sector Memorandum, August 16, 1977 (ReportNo. 1704-PH)

/2 Entitled Program for Decentralized Educational Development - ElementaryEducation, EPPITAF, September 1979.

/3 Consisting of Mrs. E.L. Schreiber (economist, mission leader) andMessrs. H.r. Chai (educator), S.Z. Sung (educator) and P. Neumann(textbook publisher and consultant). Mlessrs. S. Sigurdsson (architect),D. Jamison (evaluation specialist) and J. Rose (management specialist,consultant) and Ms. N. Birdsall (evaluation specialist) also visited thePhilippines in connection with preappraisal of the project.

/4 The first project (Loan 393-PUH, 1964), completed in 1973, assisted indeveloping the University of the Philippines College of Agriculture atLos Banos; the second (Credit 349-PI4, 1973), completed in 1973, centeredon the development of two regional agricultural colleges, 13 agri-cultural high schools, and 10i technical and three technician traininginstitutes; the third (Loan 1224T-PH, 1976), for which the recommendedclosing is scheduled for June 1982, was designed to reduce a severetextbook shortage in elementary and secondary education; the fourthLoan 1374-PIU, 1977) is designed to furth,er strengthen selected facilitiesat the University in Los Banos, develop a college of agriculture in theVisayas and introduce nonformal training to farmers; the fifth(Loan S-8-PUi, 1973) supports experimentation with development ofeducational radio for classroom use and inservice teacher training; andthe sixth (Loan 1786, 1979) is designed to strengthen technical andmanagerial manpower and research for fisheries development.

Four of these have centered on developing technical and managerial manpowerfor agriculture and fisheries. Two projects have focussed on improving basiceducation through experimentation with educational radio and through the pro-vision of about 30 million textbooks to students in public elementary andsecondary schools (para. 1.04). The Educational Projects Implementing TaskForce (EDPITAF), created in 1972 on an ad hoc basis to provide expertise ineducational developmnent, has had overall responsibility for the execution ofthese and other externally-assisted education projects. Generally, implemeni-tation of the projects has been satisfactory and objectives have been largelyachieved. However, earlier projects have also met with some implementationconstraints. The completion and audit reports have been prepared for thefirst project (IBRD Report 820) and the completion report for the secondproject is being prepared. General lessons relata to. (a) the importance ofproviding local financing in a timely manner; and (b) the need for improvedprocedures to expedite procurement. Experience gained from more recentprojects confirms the importance of sufficiently advanced preparation prior toproject appraisal and implementation. These concerns have been addressed inpreparing the elementary education program.

1.07 Bank financing is recommended to support the development program forelementary education. The program is central to the Government's overalldevelopment objectives to achieve widespread provision of basic services, tosupport rural development and to increase productivity. The program addressesthe major issues in elementary education and arrangements for management andfinancing have been organized to achieve objectives.

2. ISSUES IN ELEMENTARY EDUCATION

Overview

2.01 Enrollments in elementary education in the Philippines expanded

rapidly during the 1960s and early 1970s and nearly doubled between 1965and 1979. By 1979, about 7.7 million children, including more than 80% ofthose in the relevant age group (7-12), were enrolled in elementary schools.Despite this relatively high participation rate, substantial changes areneeded in the elementary sector to improve the quality and coverage of basiceducation.

(a) Policy Problems. Financial and administrative policies havecontributed to an uneven development of elementary education.Policies for financing and the utilization of teachers perpetuatedisparities in educational opportunity and an inappropriate balanceamong educational inputs (e.g., teachers and mnaterials) provided.Policies for student admissions and progression further reduce the

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productivity of elementary education. Revised policies are neededto support improvements in the quality, coverage and efficiency ofelementary education.

(b) Management Problems. The management structure for elementaryeducation is inadequately organized to guide sector development inaccordance with the national development strategy. Rigidities andinefficiencies in the schooling process derive largely from theabsence of effective support from the center and from incompleteplanning efforts. A fragmentation of management responsibilitiescontributes to additional problems of functional overlap and poorcoordination. The structure, functions and staffing of agenciesinvolved in elementary education na d to be oriented towardseffective management and planning.

(c) Performance Problems. The impact of policy and institutional prob-lems is evident in variations in student participation an-a achieve-ment. In the regions, the availability of facilities and teachersdiffers as does the relevance of the curriculum, teaching methodsand instructional materials. Moreover, average student achievementin basic skill areas (i.e., the language arts, mathematics) is low.Both disparities in educational opportunity and more general qualityshortcomings need to be corrected to improve sector performance.

Main Issues

Policy Problems

2.02 Policies for financing and administration have detracted from theeffectiveness of elementary education. Emphasis has been given to enrollmentexpansion (primarily by expanding the teaching force) with inadequate atten-tion to quality, efficiency and regional variations in student performance.Policy weaknesses are reflected in the main outcomes of elementary education:on average, student achievement scores are a third lower than the designatednorm; and 35% students entering grade 1 never complete the six-year edu-cational cycle.

2.03 Sector Finance. The Central Government carries the main responsi-bility for financing elementary education./l In 1980 capital expenditureon elementary education amounted to about US$4.00 equivalent per student and

/1 The localities retain a portion (5%) of real estate tax revenues foreducational expenditures. While the amounts of such funds vary inaccordance with property values, they represent nominal increments tothe Central Government-s contribution.

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recurrent expenditure to US$42.00 per student. W4hile the level of recurrentexpenditure Falls within the lower range for Asia,/l the main constraints toImprovements in t'he quality and coverage of elementary education are found inpolicies for allocating funds. Development and recurrent appropriations areallocated in equal portions to the regions on the basis of standard appropria-tions per student enrolled. The policy discriminates against regions withlarge numbers of children not in school and provides no compensatory financingfor regions where student achievement is low. Further, allocations by cate-gory of recurrent expenditure are poorly balanced. Of the total recurrentappropriation for elementary education, 98% is allocated for salaries andadministration and 2% (about US$0.80 per student) is available for otherinputs. The resulting gap in resources available for instructional materials,classroom supervision, teacher upgrading, and mnaintenance of facilities issubstantial.

2.04 The share of public expenditure on education appears to have stabi-lized after a recent period of decline (20% of public expenditure wasallocated for education in 1973 by comparison with 14% in 1979). However,significant increases in real recurrent expenditure per student in elementaryeducation will not likely be made in the near future. In order to expand thecoverage and raise the quality of elementary education, improvements incost-effectiveness are required. Revised policies and guidelines for theallocation and use of resources, by region and by type of expenditure, areneeded.

2.05 Teacher Utilization. Adequate financing for nonsalary expendituresfrom recurrent appropriations would be available if the policy for teacherutilization were more effective. One classroom teacher is responsible forclasses of students in grades 1-4 while subject matter teachers are used ingrades 5 and 6. In 1979, the average student-teacher ratio in elementaryeducation was about 31:1. However, the ratio was 40:1 for grades 1-4 and 20:1for grades 5 and 6 (for which 42% of teachers were serving 27% of the stu-dents). The lower student-teacher ratio in grades 5 arnd 6 is attributablelargely to the underutilization of the subject teachers: the teacher-classratio is 2:1 on average (e.g., the subject teachers work on average 50% of thetime). Present requirements for teachers would be reduced by about 14%(35,000 teachers in 1979) if the teacher class-ratio at grades 5 and 6 werereduced to 1.2:1. Such a policy change is needed to improve efficiency andfree resources for nonsalary expenditures.

2.06 Student Admissions and Progression. Present practices for studentadmissions and the policy for advancing students from grade to grade contri-bute to problems of poor student admissions, which requires that children

/1 On average, annual recurrent expenditure (public only) per elementaryschool student in Asia (nine country sample) was about US$66 equivalentin 1976 (1976 prices), ranging from about US$10-45 in Burma, India,Pakistan, Sri Lanka, Thailand and Korea to US$125-152 in Malaysia,Singapore and Hong Kong.

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enter grade 1 at age seven, is appropriate but ineffectively enforced. In1979, some 15% of students in elementary schools were over- or under-agedwhile 26% of seven year olds were not enrolled at all. The policy foradvancement bases promotion on the results of a single year-end examination.The elementary curriculum includes a relatively large number of subjects to becovered in detail. Inadequate time is available for diagnostic testing andremedial instruction prior to final examinations, and 8% of students enrolledrepeated grades during the mid-1970s. Research findings suggest that bothteaching and learning are most effective when children are grouped with agepeers./l Results of recent studies further suggest that grade repetition doesnot necessarily improve the performance of low achievers and can create moraleproblems that lead to the dropout of such students./2 MIore effective enforce-ment of the admissions policy and revised procedures for student evaluationand progression are needed to raise achievement and survival rates. Due tothe high dropout rate at present, eight years (rather than the prescribed six)are required to produce a graduate and the efficiency of the system is 76%./3

IManagement Problems

2.07 The principal agencies involved in elementary education are theBureau of Elementary Education and the Office of Planning Services in thenational offices of the 'Ministry of Education and Culture (MIEC), the RegionalOffices of the MEC, and the Government's Textbook Agency. The tIEC's 13Regional Offices were created in conjunction with a 1974 reorganization ofGovernment agencies: at that time routine responsibilities for educationalplanning and administration were transferred from the center to the regions.Control over policy, budget, curriculum and the mass development and produc-tion of textbooks was retained at the national level. The decentralizationeffort was intended to improve the responsiveness of education to local needsthrough effective planning and management at the regional level. However,appropriate modifications in the organization, functions and staffing patternsof agencies involved were not undertaken. As a result, management weaknessespersist at both the central and regional levels. The problems are manifest ina lack of systematic support for the regions, poor coordination of sectoractivities and incomplete planning.

/1 T.N. Posthlewaite, "Success and Failure in School" Prospects, Vol. X,No. 3, 1980.

/2 A review of the literature on the effects of repetition is found in"Educational and Economic Effects of Promotion and Repetition Practices,"World Bank Staff Working Paper No. 319, MIarch 1979.

/3 In 1978/79 graduates numbered about 930,000 and represented a usefuloutcome (including repetition) of 5.58 million student-years (930,000 x6). The total number of student years required to produce this resultwas 7.34 million (the sum of student cohorts from grade 1 in 1973/74through grade 6 in 1978/79). The efficiency of the system was thus5.58/7.34 = 76%.

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2.08 Bureau of Elementary Education and the Regional Offices. TheBureau of Elementary Education (BEE) is charged with recommending policiesfor elementary education and guiding sector management. However, the BEE½sauthority and functions are poorly suited to the implementation of theseresponsibilities. The BEE lacks a direct line of coamunications to theRegional Offices of the MEC (both report 7irectly to the MIinister, MEC, asshown in Chart 2.1). It also lacks a clear mandate for coordinating sectormanagement and development. As a result, the BEE serves essentially as astaff agency. Its three main divisions have concentrated on developingexperimental curricula and materials, related inservice training andfacilities standards. Minimal attention has been given to the review andrevision of sector policies and systematic guidance and support services forthe regions have not been provided. Important services (i.e., inservicetraining for teachers) are provided on an ad hoc basis by several agencies.These agencies (e.g., the BEE, the Textbook Agency) often work directly withthe regions (through the Minister) but independently of each other.

2.09 Each Regional Office of the NEC has a division for elementaryeducation which is directly responsible for managing the local schoolsystem. These divisions consist of 12-15 subject matter specialists offi-cially assigned to positions as school supervisors. In practice, theyconduct minimal school supervision and are organizationally too far removedto do so effectively. Classroom supervision of teachers is carried out byan additional 12-15 subject supervisors located below the regional level ineachn provincial or city office of the MEC. Below the provincial level, adistrict superintendent is directly responsible for a group of about 8-15schools. While staff of the elementary divisions are informally grouped tocarry out general administrative responsibilities, they have not been fullyprepared (through regular guidance from the nationa'l level or on-the-jobtraining) for managing the regional school systems. A shortage of basicoffice equipment (i.e., typewriters, photocopiers, calculators), both in theBEE and in the regional divisions for elementary education and the absenceof suitable facilities for the in-service training of regional staff alsodetract from management effectiveness.

2.10 The main consequences of institutional constraints in the managementof elementary education include: the lack of systematic guidance for theregions, the concentration of administrative authority in the Office of theMinister, and a resulting inability of the Regional Offices to effectivelyimplement their decentralized responsibilities. In addition, inadequatecoordination of sector activities results in inefficiencies in the provisionof supporting services. Functional and organizational changes are requiredin the BEE and the regional divisions for elementary education to enablethem to carry out their respective responsibilities; and revised staffingpatterns and staff upgrading are required to improve administrativeefficacy. Supporting equipment for the BEE and the Regional Offices, andregional training centers should also be provided.

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Chart 2.1: PHILIPPINESMINISTRY OF EDUCATION AND CULTURE

ORGANIZATION CHARTIJ

11 NISTERNATIONAL BOARD

BOARD OF _ATION

| STUDENTS' LOAN | |TEXTBOOK FROF|SSIO'A, CHARTERED EDUCATION

|F UN D AUTHORIT Y || BOBOARD BOARDS STATE TESTINA CENTE

COLLEGES AND

NIV ERSIT TES

FEINANCIAL| PLANNIN MANAGEMENT | |ADMINISTRATIVE: IANFORMU ATION|| A 'E. REGIONAL DID PUBLICATIO NJ

SERVICE ~SERVICE SERVICE SERVICE

LU ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ S N REEGRC ONAL DIRCHOORBREUO

CURRICULUM RESEARCH YOUTH RE- OF NATIONAL SCHOOL ELEME NTARY SECONDARY HIGHERSCRIACUDE TEANE ISTTUEEARAULFTURAUOF BUEATG

CENTERFCENTER SEARCH CENTER LANGUAGE HEALTH UNITPEDUCATION EDUC ATIONIED UCAIO

REGINADIRECTRO EDUATON

ASSISTANT REGIONAL DIRECTOR

ADMINISTRATIVE BUDGNET EDCTOAEUAINDDCTO

DIVISIONDIIINL IODIIIN DVSN

PROVINCIAL/CITY SCHOOL DIVISIONSSUPERINTENDENT, ASST. SUPERINTENDENTI

| DSTRICT

| UERVISOR

| ELEMENTARY | | OTH IR1/ Excludes Cultural Agencies SCHOOLS

Source: Ministry of Education and Culture.World Bank-22E25

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2.11 Office of Planning Services and Regional Planning Staff. Broadparameters for education policy at all levels are set by NEDA, the NationalEconomic Development Authority. Within the MEC, the Office of PlanningServices (OPS) is charged with responsibility for coordinating planningcarried out by the Regional Offices and for preparing national plans andbudget requests for education. However, organizationial and staffing weak-nesses in the Regional Offices and within the OPS have impeded development ofa reliable data base and the systematic analysis of issues needed foreducational planning.

2.12 Since its creation in 1975, the OPS has worked to establish amanagement information system (MIS) to support educational planning. Duringthe late 1970s, it initiated a scheme for collecting regional statistics onelementary education. Initial weaknesses (e.g., overly complicated forms,nonreporting) have been partially overcome but incomplete and inconsistentdata remain problematic and limited access to computer time slows processing.In addition, the data focus on student participation. Information on theavailability of educational inputs, efficiency, quality and costs is lacking.Further, the Regional Offices of the MEC are inadequately organized andstaffed to provide comprehensive data and to carry out related planning. EachRegional Office has a position for one planning officer but lacks apermanently staffed planning unit. Data collection and planning are carriedout on an ad hoc basis by borrowed personnel (teachers, principals,supervisors) often unfamiliar with statistical and planning techniques.

2.13 Further problems arise from a fragmentation of the planning processwithin the OPS and from related staffing constraints. The OPS has threedivisions for research and statistics, projects and evaluation, and pro-gramming and planning. These divisions concentrate on data compilation, pro-gramming and budgeting, and special projects, respectively. However, analysisof data in elementary education and monitoring of performance are not carriedout systematically. The statistics division has insufficient staff withexpertise in quantitative methods and computer use to carry out the requireddata analysis and projections. The projects and evaluation division focusseson experimental projects and research rather than on continuous monitoring andevaluation of performance. The elementary education unit within theprogramming and planning division lacks experience in preparing analyticalplans and medium-term programs and is underserviced by the other OPSdivisions.

2.14 Without systematic analysis of sector data and issues, informationfor policy formulation by the BEE as well as for sector planning has beeninadequate. To improve planning and policy formulation, functions andstaffing patterns within the OPS should be modified to support systematicevaluation of sector performance; permanent planning units should be estab-lished and staffed in the regions; and the MIS should be expanded to includeinformation on the quality, efficiency and costs of elementary education.

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Related staff development programs at both the central and regional levelsand improvements in data collection and processing techniques are alsorequired. The OPS is in the process of purchasing two mini-computers toresolve problems of computer access. However, office equipment (mainlycalculators and typewriters) is in short supply and required both for theOPS and for planning in the regions.

2.15 Textbook Agency. The Government's Textbook Agency (para. 1.06) was

created in 1976 to reduce a severe textbook shortage in public elementary andsecondary schools (in 1975 one textbook was available on average for each 10students in elementary schools). The Agency has made considerable progress inbuilding a capacity for developing, producing and distributing textbooks.However, it was created on a temporary basis and lacks permanent arrangementsfor financing and staffing. The Agency has suffered the loss of trained staffowing in part to the absence of employment security. In addition, thetemporary responsibilities of the Textbook Agency have overlapped with theregular responsibilties of government agencies (i.e., the Agency has providedinservice training for teachers on the use of new textbooks without the closeinvolvement of other agencies, para. 2.08). Further, the division ofresponsibility for educational publishing, between the Government andpublishers in the private sector, has not been clarified. In the past fewyears the Textbook Agency has largely pre-empted the market for elementary anda substantial portion of secondary textbooks. A Textbook Board in the MEC isresponsible both for managing the Textbook Agency and for approving textbookspublished by the private sector for use in public schools. However, thisBoard has had inadequate resources and representation (with three members) todevelop a suitable policy for private sector participation; and, in practice,the Textbook Board-s participation in management of the Textbook Agency hasfocussed on day to day decisions rather than important policy questions.

2.16 In order to ensure continuing availability of textbooks and toconsolidate institutional gains made to date, permanent status is requiredfor the Textbook Agency. Emphasis would need to be given to ensure thecost-effectiveness of procedures for regular publishing operations in thepublic sector. In particular, inefficiencies encountered by the TextbookAgency in paper procurement (para. 1.06) and in the distribution of textbooksneed to be resolved. A clarification of responsibilities, based on theGovernment-s long-term policy for providing textbooks, is also required toresolve problems related to the ad hoc status of the Textbook Agency and tosupport the development of a healthy publishing industry in the privatesector.

Performance Problems

2.17 The most striking performance problem in elementary education is thelow productivity evident in average student achievement and survival rates

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(para. 2.02). However, these averages conceal significant interregionalvariations in participation and achievement. The degree of variation forselected indicators, as represented by the Gini coefficient /1, is greatestfor cohort survival as shown on Table 2.1. Actual variations in enrollment,survival and achievement are shown in Table 2.2. The differences are

Table 2.1: REGIONAL VARIATIONS IN EDUCATIONAL OPPORTUNITY

Indicators Gini coefficient

Cohort survival (completion of grades 1-6) 0.25Enrollment of children aged 7-12 0.10Average Achievement Scores 0.10

explained by both home /2 and school factors. School-related determinantsof variations in regional performance derive largely from shortcomings inthe curriculum, instructional materials and teaching methods and fromvariations in access to classrooms and teachers.

2.18 Curriculum and Teaching Methods. The elementary curriculum includesan average eight subjects per grade (beginning in grade 1). /3 The averageweekly schedule of 30 hours is allocated approximately as follows: 22% oftime for Pilipino; 16% for English; 10% for mathematics; 10% for health andscience; 6% for social studies; and 36% for physical education, music and art,citizenship and practical arts. The time allocated for mathematics is low

/1 The Gini coefficient is used as a measure of dispersion. The coefficientranges from 0.0 to 1.0, with 0.0 representing a perfectly equitabledistribution. For the purpose of analysis of inequities in first leveleducation, extreme disparities would be indicated by Gini coefficients of0.20 or higher and moderate disparities by coefficients of 0.10-0.20.

/2 No regular fees are levied by the Government for elementary educationand 95% of children enrolled attend government schools. It is noted,however, that regions with substantially lower than average enrollment,survival or achievement rates (Table 2.2) are mainly characterizedby higher than average proportions of rural population (average 70%)and higher than average poverty incidence (average 45%). (The parti-cularly low enrollment rate in Central Mindanao in 1978/79 is, however,mainly explained by political disturbances.)

/3 This compares with an average of six subjects per grade in Singapore andHong Kong.

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Table 2.2: ELFMENTARY EDUCATION - PARTICIPATION, SURVIVALAND ACHIEVEMENT RATES BY REGION, 1973/79

( 000)

------ Enrollment ------Enrollment

Enrollment aged 7-12 Achievementgrades 1-6 as % of Cohort (average

Population as % total population survival studentRegions aged 7-12 enrollment aged 7-12 (%)/a scores - %)/b

I. Ilocos 566 8 88 82 56II. Cagayan Valley 360 5 92 66 49

III. Central Luzon 800 10 90 77 52IV. Southern Tagalog 943 13 84 78 50V. Bicol 636 9 86 60 40VI. W4estern Visayas 747 10 86 60 44

VII. Central Visayas 592 8 84 61 44VIII. Eastern Visayas 494 6 78 52 44

IX. Western Mindanao 399 5 95 51 43

X. Northern Mindanao 443 5 85 64 40XI. Southern Mindanao 517 7 80 66 46

XII. Central Mindanao 550 5 54 50 55XIII. National Capital

Region 733 9 86 84 56

Total 7,785 100 /c 84 /c 65 48

/a Proportion of students enrolled in grade I in 1973/74 completing grade 6 in 1978/79.

/b Average student scores on achievement tests administered by the MEC to a sample ofgrade six students under project SOUTELE (Survey on the Outcomes of ElementaryEducation).

/c Total enrollment - 7.68 million students; total number of students enrolled aged7-12 - 6.51 million.

Source: World Bank: population projections (for World Development Report, 1980).MEC: enrollment, survival and achievement data.

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by international standards while that for the practical arts (17% of weeklyhours beginning in grade 3) is high for elementary education. The allocationfor language arts compares favorably with time devoted for first and secondlanguage teaching in Singapore and Hong Kong. However, a particularly heavyburden is placed on more than half of children in the early grades. For about60% of the population, the national language (Pilipino) is not the mothertongue. Students from the relevant population groups (largely in the Visayasand Mindanao) must learn and work in three languages during grades 1 and 2.

2.19 Teachers are held accountable lor covering the details of eightsubject syllabi but are often unable to do so by the end of a school year.Gaps in the students' conceptual and practical knowledge result becausefollow-up is not provided in the next grade. This weakness, which is relatedto the absence of regular diagnostic testing and remedial teaching during theschool year, (para. 2.06), contributes to problems of poor student achieve-ment.

2.20 Problems with teaching and evaluation techniques are reinforced bysupervisory practices. The subject supervisors in each provincial (or city)office of the MEC carry out classroom supervision (para. 2.09). While super-visors, like teachers, generally possess the necessary formal qualifica-tions, they lack experience with techniques for remedial instruction.Further, budget allocations for regular school supervision are inadequate(para. 2.03) and supervisors are rarely able to visit schools as often asplanned (e.g., about 18-20 days per month). These constraints are linked withweaknesses in preservice and inservice teacher training: inadequate control isexercised over the content of preservice training; and regular inserviceupgrading for teachers is not provided (para. 2.08).

2.21 Shortcomings in the curriculum and teaching methods largely explainthe low productivity in elementary education and account in part for regionalvariations in student achievement and survival. Results of standardizedachievement tests indicate that despite the relatively high number of class-room hours (30 hours compared with 25 hours in Hong Kong and Singapore),insufficient emphasis is given to the development of basic skills. TheMEC's Survey on the Outcomes of Elementary Education (SOUTELE) reveals thefollowing: on average graduates of elementary schools can answer less than50% of test items correctly (average score 48% compared to a designatedlearning norm of 75%, shown on Table 2.2 for 1979) and score lowest in readingand mathematics. In accordance with SOUTELE recommendations, a simplifiedcurriculum focussing on basic subjects is required to raise overall levels ofachievement and to reduce disparities. Use of a second language approach forteaching English and (as relevant) Pilipino would also improve comprehensionand reading abilities in the early grades. Accompanying modifications inteaching and evaluation techniques need to include provisions for remedialteaching. The content of preservice teacher training programs should also bereviewed with a view to making necessary adjustments and upgrading forsupervisors and school staff would be required.

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2.22 Instructional Materials. A general shortage of instructionalmaterials has contribluted to the performance problems in elementaryeducation. The textbook shortage is presently being eased through thetextbook project assisted by Loan 1224T-PH (para. 2.15). About 25 milliontextbooks have been produced and distributed to elementary sc'hool studentsand a ratio of one textbook in each subject for every two students istargeted for 1985/86. The importance of textbooks as a determinant ofstudent achievement in the Philippines is confirmed through initialevaluation of project results: in three jbre subjects (Pilipino, scienceand mathematics) a random sample of students using project textbooksreceived significantly higher scores on achievement tests (by an average of12%) than a control group. However, shortcomings in the quality andrelevance of the present generation of textbooks and related teacher rmanualsparallel more general weaknesses in the curriculum and teaching methods.Initial results reveal that textbooks in some subjects are too long orcomplex and less relevant for rural than urban students. Related problemsderive from the absence of special materials for low or high achievers andfrom the absence of special series to cater for different language back-grounds (para. 2.18). At present, authors, drawn mainly fromn four curri-culum centers,/l and content editors in the Textbook Agency lack experiencein preparing special materials. While emphasis is placed on the need forsuitable textbooks and teachers editions, at least 40% of elementary schoolslack other basic instructional materials (i.e., maps, charts). Efforts areunderway to develop and produce such materials at the local level usinglocal resources. Decentralized Learning Resource Centers, operated byteachers, have been designated for this purpose.

2.23 Despite the considerable progress made since 1976 in reducingthe textbook shortage, further developmental work is required to ensure theeffectiveness of basic textbooks over the iext 10-15 years. The revisionof existing textbooks and the planned development of new titles should becarried out with a view to supporting a simplified curriculum and improvingthe relevance of materials for special client groups. An expanded pool ofauthors and training to improve editorial expertise would be required tocarry out these tasks effectively. A complementary effort, to provide basicteaching aids throughout the elementary system, is required.

2.24 Facilities. In 1978/79, some 187,000 classrooms (of which over8,000, or 4%, were designated as dilapidated and overdue for replacement) wereavailable in 27,400 elementary schools. Table 2.3 shows an overall shortage

/1 Four curriculum centers conduct research in particular subject areasfor elementary and secondary education. Those for science and mathe-matics, languages and the practical arts are located in universities.A center for social science is located in the MEC.

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Table 2.3: ESTIMATED NEEDS FOR ELE4IENTARY CLASSROOhSAT THE START OF SCHOOL YEAR 1978/79

Averagenuriber of

Number Total Classroom Actual Shortfall studentsof elementary require- N14umber of or per

Region schools enrollment ments /a classrooms/b surplus classroom('.00) ('000) ('000) ('000)

I 2,715 579 16.1 17.9 +1.8 32II 1,989 376 10.4 10.7 + .3 35III 2,230 779 21.6 20.3 -1.3 38

IV 3,499 964 26.8 25.0 -1.8 38V 2,521 654 18.2 16.7 -1.5 39

VI 2,577 778 21.6 19.3 -1.3 40VII 1,959 581 16.1 13.1 -3.0 44VIII 2,857 484 13.4 13.3 -0.1 36

IX 1,457 399 11.1 9.3 -1.8 43X 2,059 413 11.5 11.3 -0.2 36XI 1,872 558 15.5 12.5 -3.0 45XII 1,302 404 11.2 9.1 -2.1 44XIII 387 715 19.9 8.8 -2.3/b 81/b

Total 27,404 7,684 213.4 187.3 -16.3 41

/a Based on an average utilization factor of 0.9, for design capacity of40 students/classroom.

/b In the Metro-Manila area (Region XIII) most schools are run on a doublesession. A conservative estimate of the classroom shortage would be about2,300 with the average number of students per classroom per session on theorder of 40.

Source: MEC and Mlinistry of Public Works.

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of 16,300 classrooms and regional variations in average class size duringthe 1978/79 school year. In practice, the number of students per classroomvaries from less than 20 students to more than 70 and reflects both under-and overutilization of facilities. However, overcrowding is the more commonresult. Further, access to the complete six year cycle is reduced by theabsence of facilities for grades 5 and 6 in a third of all elementaryschools and basic equipment (e.g., blackboards as well as school projectorsand duplicators) and furniture items are lacking in about 40% of schools.

2.95 In 1978/79 only 74% of seven year olds entered grade 1 and over1.2 million children aged 7-12 were not attending school. The imbalance inthe allocation of classrooms contributes to problems of nonparticipationand poor quality through overcrowding. The Government's program for theconstruction of classrooms (para. 1.04) has begun to reduce overallshortages. However, to reduce disparities in the provision of facilitiesand in access to the six year educational cycle, the MEC needs to adoptsystematic criteria for school location and facilities planning.

2.26 Teachers. The availability of teachers also varies from region toregion. Table 2.4 shows that average student-teacher ratios range from ahigh of 39:1 (Southern Mindanao) to a low of 25:1 (Ilocos). More signi-ficant variation is found intraregionally: in rural areas, a student-teacherratio on the order of 50-70:1 is common (often combined with multigradeteaching) and highs of 110:1 are reported. )The differences in student-teacherratios are attributable in part to the policy for teacher deployment (para.2.05). Schools offering less than the six year cycle of education have higherstudent-teacher ratios than those using subject teachers in grades 5 and 6.The absence of systematic procedures for matching admissions in teachertraining institutions with local requirements for teachers also result indisparities in student-teacher ratios. Extreme teacher shortages contributeto repetition and dropout (the incidence of which is greatest in the earlygrades) through excessive class size and related weaknesses in the quality ofteaching. The MEC needs to address this problem and proposes to do so bymonitoring teacher demand and supply at the regional level.

3. SECTOR PROGRAM FOR ELEMENTARY EDUCATION

Strategy

3.01 The Government's ten-year development program (1981-90) directlyaddresses the main policy, management and performance issues in elementaryeducation. The main objective of the program is to improve student partici-pation and achievement, with particular emphasis on regions with lowperformance standings. To achieve this objective the Government would:(a) introduce revised policies for sector financing and management to raisequality and reduce disparities; (b) effect institutional changes to strengthen

Table 2.4: STUDENT-TEACHER RATIOS IN PUBLIC ELEMENTARY SCHOOLS

1978/79

Enrollment Distribu- DistrLbut[on of Number of studenits

tion (%) Teachers (°/) /a per teachker

Grades Grades Grades Grades Grades Grades

Region 1-4 5-6 1-4 5-6 1-4 5-6 Total

I. Ilocos 69 31 55 45 32 16 25

II. Cagayan Valley 73 27 64 36 38 26 34

III. Central Luzon 71 29 58 42 40 23 33

IV Southerrn Tagalog 71 29 56 44 40 21 31

V. Bicol 73 27 60 40 40 22 32

VI. Western Visayas 73 27 56 44 36 19 28

VII. Central Visayas 75 25 60 40 37 18 29

VIIL. Eastern Visayas 75 25 58 42 34 15 26

IX. Western Mindanao 77 23 58 42 41 20 32

X. Northern Mindanao 74 26 62 38 41 25 36

XI. Southern M4indanao 74 26 60 40 48 25 39

XII. Central Mindanao 78 22 60 40 50 21 31

XIII. National CapitalRegion 70 30 55 45 40 20 31

% Total: 73 27 58 42 Average: 40 20 31

/a Total number of teachers in 1978/79 was 248,000.

Source: MEC.

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sector 'lanagement; and (c) provde revis.ŽJ ir,structlianal programs and animproved distribution of teachpers and facilities to improve studentperformance.

3.02 Policies. Under the developnent prograrm the following policies forfinance and manageazent mould be intro(duced to strengthen elementary educAtion:

(a) a new formula would 'he use(i in allocating development expenTi tIIr-sto give priority to regions vJith below average performance;

(b) allocations for recurrent expenditures vould be apportioned toaclhievi an appropriate balance among educational inputs;

(c) the teachier-class ratio would be reduced to iLmprova theeffec-.iveness of teacher utilization; and

(d) policies for student adnissions and progression would be ,iodified toimprove p-ct i ity and increase participation rates.

3.03 Managenent. To improve the responsiveness of elementary educationto both national development strategy and regional needs the followinginstitutional modifications Would be carried out:

(a) the functions and authority of th-ie BEE and the functions of tlhsre-ional divisions for elementary education ould be miodified toimprove sector managenent;

(b) the functions and or,-anlzation of the OPS would be expandedand regiornal planning units established to strengthen planning; and

(c) the Textboo)kr Xgency uould be converted to a pertianent governTimentc3rporation responsible for supplying texthooks to students inpublic schlools.

3.04 Performance. Together with the pol'cy and institutional changes,i,rrove.ients in student performance would he achieve' through:

(a) the introduction of a revised curriculum and improved teachingmethods and instructionaicl ciaterials;

(b) an equitable distribution of facilities and teachers among thieregions;

(c) the provision of staff development programs for the centraland regional agencies involved with elementary educationi and forschool principals and teachers; and

(d) the introduction of systematic moaitorinig and evaluation of sectorperformance.

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The development program would provide financing for curriculim development,development and production of instructional materials, facilities andequipment, the monitoring of teacher supply, staff development, and sectorevaluation.

The Sector Development Program

Policy Changes

3.05 The policy changes to be introduced under the development programare designed to improve the effectiveness of elementary education.The new financing policies give emphasis to reducing interregional dispar-ities and raising quality. The modified policies for teacher utilization,student admissions and student progression would raise overall efficiencyand student achievement. These policy changes are embodied in a program andpolicy statement for elementary education submitted to the Bank by theGovernment at negotiations. During negotiations the Government agreed thatit would consult with the Bank in the event that major changes in thesepolicies or in other components of the development program are required.

3.06 Regional Expenditure Allocations. The new formula for the regionalallocation of development funds would give priority to regions with belowaverage performance. The formula is based on a weighted indicator of defi-ciencies in student enrollment, survival and achievement, and on the distri-bution of the school-aged population. It would replace a formula for standardallocations per student enrolled (para. 2.03). In 1980, the average perfor-mance rating for thie country in terms of the weighted indicator was 0.36,ranging from a high (poorest performance) of 0.47 in Central Mindanao to a low(best performance) of 0.27 in Ilocos and Manila. In accordance with theseratings and the distribution of the school-aged population among the regions,initial guidelines for investment under the sector program would be asfollows: 32% of development funds would be allocated for four regions withbelow average performance (accounting for 27% of the age group 7-12); 35% forfive regions with roughly average performance (34% of the relevant popu-lation); and 33% for four regions with above average ratings (39% of thepopulation). Details of the revised financing policy and the allocationformula are provided in Chapter 4, (Management and Implementation of theSector Program, para. 4.17 and Annex 4.). A similar formula would be used toallocate increments to recurrent appropriations for elementary education. Therevised allocation policy is designed to reduce disparities in educationalopportunity. In particular, shortfalls in the availability of facilities,equipment and teachers (through recurrent allocations) would be reduced. Inaddition the largest share of investment for staff development andsupplementary instructional materials would be directed towards the regionswith the poorest performance.

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3.07 Apportionment of Recurrent Expenditures. Allocations for recurrentexpenditures would be reapportioned to achieve an appropriate balance betweensalary and nonsalary items (para. 2.03). To improve quality and efficiency,allocations for items other than salaries and administration would beincreased fromn 2% to a targeted 7% of recurrent expenditures between 1981 and1990. The share of salaries and administrative costs would decline from 98%at present to about 93%. Real expenditure for other items would be increasedfrom less than US$1.00 per student at present to nearly US$3.00 by 1990. Thisamount would be adequate to finance planned improvements in quality and theregular maintenance of school facilities. Some 2%-3% of total recurrentappropriations would be allocated for instructional materials and supplies;2%-3%o for school supervision and in-service training; and 1% for maintenanceof facilities.

3.08 Teacher Utilization. Under the development program a revised policywould be effected to improve the efficiency of teacher utilization(para. 2.05). The average number of teachers per class in grades 5 and 6would be reduced from 2.0 to a targeted 1.2. The targeted ratio would allowfor appropriate flexibility in the scheduling of teaching hours while signi-ficantly improving efficiency. The improvements in teacher utilization wouldbe accomplished chiefly by assigning teachers to classes at more than onegrade level keeping them in (or close to) their subjects of specialization.The revised pattern for teacher deployment would lead to an increase in thestudent-teacher ratio from 31:1 at present to 36:1 by 1986/87. This increasedratio would reduce total requirements for teachers by about 46,000 (16%) by1990/91 (Table 3.1). The resulting savings in recurrent expenditure,amounting to about US$50 million in 1985/86 and to US$60 million by 1990/91,would free resources required for planned nonsalary expenditures withoutraising the real recurrent cost per student.

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Table 3.1: PROJECTED REQUIREMENTS FOR ELEMENTARY SCHOOLTEACHERS (1981/82-1990/91)

Teacher require-Teacher requirements assuming ments assum-rising student teacher ratio ing constant

Total Number of Student-teacher student-teacherYear enrollment teachers ratio ratio of 31:1

('0O0) ('000) ('000)

1981/82 8,610 278 31:1 2781982/83 8,860 279 32:1 2861983/84 9,050 274 33:1 2921984/85 9,190 270 34:1 2961985/86 9,340 267 35:1 3011986/87 9,480 263 36:1 3061987/88 9,640 268 36:1 3111988/89 9,800 272 36:1 3161989/90 9,960 277 36:1 3211990/91 10,100 280 36:1 326

Source: MEC.

3.09 Student Admissions and Progression. Enforcement of policy forstudent intake would be strengthened and the policy for student evaluation andprogression would be revised to raise participation and achievement rates(para. 2.06). Age at intake would be gradually normalized to raise theproportion of 7-year olds entering grade 1 from 74% to 90%. This will beaccomplished by introducing a national scheme, reinforced by community andschool officials, to encourage parents to enroll children at age seven. Inaddition, a scheme to improve progression rates would be introduced to supportan increase in cohort survival from 65% to 86% (Table 3.2). This improvementwould be achieved mainly through the introduction of revised techniques forevaluation and teaching. Students' performance would be assessed throughregular diagnostic testing. Results would be used to match programs of studywith students' learning abilities. Emphasis would be given to raising theachievement of below average performers to acceptable levels while students(or groups of students) with average or above average achievement levels wouldbe encouraged to progress further. On average, 65% of class hours would beused for regular instruction while 35% would be used for remedial orenrichment teaching as appropriate. This revision in the use of class hourswould be achieved through the introduction of a revised curriculum (discussedin paras. 3.25-3.26, below). The more formal assessment of students'progress (i.e., through end-of-year examinations) would also focus on thetesting of skill levels achieved in core subjects. Students unable to reach

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appropriate skill levels by the end of the school year (estimated at up to4%) would be retained in grade. More effective enforcement of the intakepolicy and the revised progression policy would improve the access of theschool-aged population to the complete cycle of elementary education andraise achievement and efficiency. A decline in the average number of yearsrequired to produce a graduate (from 8 at present to 6.7 by 1990/91) wouldincrease the system's productivity from 76% to 90% (Table 3.3). A savingsof 16% in real recurrent expenditure per graduate (i.e., per studentcompleting grade six) would result from this gain (i.e., a decline fromUS$55 equivalent per graduate to US$45).

Management Changes

3.10 Under the sector development program institutional modificationsare being introduced to strengthen sector management. Included are changesin structure, functions and staffing patterns within the principal agenciesinvolved in elementary education. Related staff development programs wouldbe provided among expenditure components.

Table 3.2: TARGETED RATES FOR PARTICIPATION OF SEVEN-YEAROLDS AND FOR COHORT SURVIVAL IN ELEMENTARY EDUCATION

(%)

Participation rate ofRegion 7 year olds Cohort survival rates

1978/79 1985/86 1990/91 1978/79 1985/86 1990/91

I. Ilocos 82 86 92 82 87 90II. Cagayan Valley 78 84 90 66 78 82III. Central Luzon 83 87 92 77 84 87IV. Southern Tagalog 82 86 97 78 84 86V. Bicol 71 78 90 60 78 81VI. Western Visayas 68 81 88 60 74 77VII. Central Visayas 65 78 88 61 74 78VIII. Eastern Visayas 60 76 84 52 84 87

IX. Western Mindanao 82 85 92 51 71 74X. Northern Mindanao 73 86 93 64 77 81XI. Southern Mindanao 70 75 89 66 78 82XII. Central Mindanao 70 76 95 50 70 74XIII. National Capital 70 75 88 84 88 92

Average 74 84 90 65 78 86

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Table 3.3: PROJECTED ENROLLMENT AND EFFICIENCY RATES(1978/79 - 1990/9 1)

1978/79 1979/80 1980/81 1985/86 1990/91(Base) (Actual) (Projected) (Projected) (Projected)

Enrollmentsby Grade ('000)1 1,690 1,700 1,710 1,760 1,7902 1,430 1,550 1,560 1,660 1,7603 1,280 1,370 1,490 1,600 1,7204 1,190 1,240 1,330 1,540 1,680

Subtotal 5,590 5,860 6,090 6,560 6,950

5 1,090 1,100 1,160 1,440 1,6206 1,000 1,010 1,040 1,340 1,530

Subtotal 2,090 2,110 2,200 2,780 3,150

Grand Total 7,680 7,970 8,290 9,340 10,100

Graduates ('000) 930 939 967 1,260 1,470

Graduates as % ofgrade 6 enrollment 93.0 93.0 93.0 94.0 96.0

Efficiency rate (%) 76.0 76.0 78.0 83.0 90.0

Years required to pro-duce a graduate 8.0 7.8 7.7 7.2 6.7

Source: MEC data for 1978/79 and 1979/80 and MEC and mission projections.

3.11 Bureau of Elementary Education and the Regional Offices. The BEE'spresent functions and authority have been modified to enable it to guide thedevelopment and management of elementary education effectively (para. 2.08).The Bureau would perform the following functions:

(a) provide (or arrange for provision of) regular advisory, supervisoryand support services in the regions;

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(b) coordinate sector activities at the national and regional levels;and

(c) formulate and update recommendations for sector policies andprocedures.

In accordance with the objectives of the 1974 reorganization of governmentagencies, the regions would continue to be directly responsible for managingelementary education. However, the BEE would provide regular assistanceto the regions to guide the use of sector policies and procedures and toupgrade regional administrators and teachers. For this purpose a ministerialorder has been introduced which assigns the BEE a line authority for technicalsupervision over the regions. The BEE's three main divisions would be res-ponsible for introducing guidelines and standards for the development andutilization of curriculum and materials, staff and physical facilities andfor coordinating related activities at the central and regional levels. Thecurriculum and materials division created a permanent coordinating committeein October 1980 and began work on a revised curriculum (para. 2.21).Included as members of this committee are representatives of the TextbookAgency, the curriculum development agencies, the OPS and regional educators.Each of the BEE divisions would participate in continuous review of sectorpolicies and procedures, with particular emphasis on sector financing. Thistask would be carried out in liaison with the OPS and the Financial Manage-ment Service of the MEC (responsible for administering MEC expenditures,Chart 2.1). Results would be used to advise the Minister on matters ofpolicy. To assist the BEE in carrying out these functions, several staffwould be appointed to fill gaps in technical expertise, notably in systemsmanagement, educational financing and planning, teaching and evaluationtechniques and evaluation and facilities design. These staff were designatedby the BEE prior to negotiations. During negotiations an understanding wasreached that these staff would be formally appointed during the 1982 budgetyear, in accordance with regular procedures for creating new positions. Inaddition, the BEE prepared an overall staffing plan for the period 1982-85which was reviewed by the Bank prior to negotiations and found to besatisfactory.

3.12 In the Regional Offices of the MEC, staff of the divisions forelementary education are being reorganized to strengthen their managerial role(para. 2.09). They would be responsible for monitoring the implementation ofsector policies and programs in accordance with BEE criteria and standards andwould provide related assistance to the provincial and district authorities.The revised functions would parallel those of the BEE and staff are beingorganized in three main units for curriculum and materials, staff developmentand facilities development.

3.13 In implementing its revised responsibilities, the BEE would con-tribute to improved quality and relevance in regional administration and toimproved coordination among the agencies working in elementary education.

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The reorganization of the elementary education divisions in the RegionalOffices would strengthen regional management arrangemaents and eliminatesupervisory responsibilities which cannot easiLy be fulfilled (para. 2.09).(Regular school supervision would continue to be conducted below theregional level by the provincial level supervisors and districtsuperintendents.)

3.14 Office of Planning Services and Regional Planning Units. The OPSwould retain its responsibilities for coordinating regional planning andpreparing national :)lans and budgets for education. To strengthen itscontributions, the would:

(a) maintain a comprehensive information system (basedon regional statistics) for educational planning;

(b) undertake systematic monitoring of sector performance; and

(c) provide assistance to the regions in sector planning.

3.15 To provide these services, organizational and staffing changes arebeing carried out within the three OPS divisions (paras. 2.12-2.13). Theresearch and statistics division would be strengthened through appointmentof an experienced data systems analyst and two computer programmers to carryout improved data processing, analysis and forecasting. Data on schoolquality, efficiency and costs would be added to existing MIIS data for elemen-tary education. The projects and evaluation division would be mainlyresponsible for systematic monitoring of sector performance. A new unit forschool location planning, to be headed by a facilities planner, is beingadded to that division to monitor the availability of facilities and tosupport improved planning and budgeting for school construction at theelementary and secondary levels (para. 2.25). The planning and programmingdivision would also be strengthened through the appointment of twoexperienced planners and a budgeting analyst. A new unit, responsible forfinancial analysis, is also being created within that division to assist thesector-specific (e.g. elementary, secondary and higher education) units inassessing the cost-effectiveness of operations and in establishing priori-ties among sector needs to accommodate budgetary constraints. A facilitiesplanner has been designated by the OPS and staff for the other key positionshave been recommended. During negotiations an understanding was reachedthat qualified staff for these key positions in the OPS would be appointedin 1982. Overall staffing plans for the OPS during 1982-85 were reviewed bythe Bank prior to negotiations and found to be appropriate.

3.16 Permanent planning units have been created by ministerial order toreplace the ad hoc units in each of the regional offices. The maainresponsibilities of these units would be to prepare medium-term plans foreducational development, annual programs and related budget requests on apriority basis. Regular activities would include the collection,compilation and analysis of educational data; the preparation of relatedprojections; and the provision of advisory services to subregional

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(provincial, district and school) authorities responsible for providing theraw data. Prior to negotiations at least six staff were designated foreach of the 13 regional planning units. Included are staff for the positionsof economist, statistician, educational planner (one of whom would headthe unit at a level equivalent to a regional division chief of the MlEC),demographer and program analyst. During negotiations an understanding wasreached that these staff would be formally appointed in 1982.

3.17 The organizational changes and expanded functions for the OPS andregional planning units would support improved analysis of issues inelementary education as required for sector policy reviews and planning(para. 2.14). In carrying out its expanded functions, the OPS would provideadvisory services to the central and regional agencies involved witheducational planning and would help arrange for related in-service training.In the elementary sector, liaison with these agencies would be providedthrough the BEE.

3.18 The Instructional Materials Corporation. The Textbook Agencywould be converted into a permanent government corporation, the InstructionalMaterials Corporation. Such status, which includes exemptions from a numberof government regulations (i.e., schedules for staff remunerations, procure-ment regulations), would be sufficient to consolidate the achievements of theTextbook Agency (paras. 2.15-2.16). In creating the Corporation, severalmodifications would be introduced in the organization and functions of thepresent Textbook Agency and MEC's Textbook Board. Chief among these are thereplacement of the existing Textbook Board by an Instructional MaterialsCouncil, independent of the Corporation; the introduction of revisedpublishing responsibilities for the Corporation; and changes in theorganization and financing arrangements for textbook publishing by theGovernment.

3.19 The Instructional Materials Council would be responsible forapproving textbooks and supplementary and reference materials appropriate forthe curricula in elementary and secondary schools (both public and private);and for supporting educational publishers in the private sector by securingand introducing measures to encourage participation. The present TextbookBoard has been unable to effectively implement its responsibilities largelydue to inadequate representation and support (para. 2.15). The new Councilwould therefore have an expanded Board of Directors chaired by the Minister ofEducation and including representatives from publishers in the private sector.In addition, it would be serviced by a permanent secretariat. Duringnegotiations, understandings were reached that by October 1981 the MEC would:complete plans for purchasing instructional materials from private publishers,including statements on related incentives and the limits of the Government'spublishing responsibilities; and designate the Board of Directors and stafffor the Council's secretariat, with formal appointments scheduled for 1982.

3.20 The Government's long-term policy on instructional materialssupports the provision of basic textbooks for all students in publicelementary and secondary schools. Over the medium-term, the Government plans

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to provide one textbook per subject for ev_ry two students./l TheInstructional Materials Corporation would be charged with formulating andimplementing plans and programs for the development, production or procurementand distribution of instructional materials in accordance with this policy./2The Corporation would give priority to providing textbooks, teacher editionsand supplementary materials for the elementary level. Publishing activitieswould be carried out in accordance with standards and criteria set by theInstructional Materials Council. Regular consultation with the relevant MECbureaus would also be carried out to ensure adequate coordination betweencurriculum and materials development (paras. 2.08 and 3.11). During 1981-83the Corporation would complete the production, manufacture and distribution ofsecondary textbooks developed under the textbook project assisted through Loan1224T-PI. Thereafter, it is expected that the Corporation would provide someor all of these materials as prototypes to be adapted, published and sold bythe private sector publishers. The Corporation would act in behalf of the MECto procure and distribute such materials for use in public schools.Responsibilities previously carried by the Textbook Agency for trainingteachers in the use of books would be integrated into inservice trainingprograms to be provided through the MEC bureaus.

3.21 Both equity capital and regular financing for the Corporationwould be provided by the Government (though sales to the private sector wouldalso be permitted under the Corporation's charter). Equity and operatingappropriations would he provided by the Bureau of the Treasury. Initialcapitalization would consist of working capital and the transfer of accu-mulated assets of the Textbook Agency to the Corporation. Among fixed assetsto be transferred are included an administrative complex and a central ware-house in Manila which have not been completed as a result of delays attri-butable to change orders and price escalation. During negotiations arrange-ments were finalized to ensure adequate financing for completing these works.An understanding was also reached that a revised or new contract for thesefacilities would be signed by October 31, 1981. Regular appropriations fordevelopment and publishing activities would derive from annual orders placedby the 2IEC. Order amounts would be based on requirements for new or revisededitions and replacements to reach and maintain the Government-s targetedstudent-textbook ratio. The MEC would be charged for textbook orders on acost-plus basis at prices required to sustain operations. Any surplus fromsales would be used for financing the development of supplementary materialsor returned to the Government in the form of dividends. During negotiations

/1 In recent years the Government has provided textbooks free of charge tostudents in public schools. A nominal charge is being considered bythe MEC for financially able students.

/2 Initially, the IMC would concentrate on providing basic textbooks andsupporting materials. Eventually, the Corporation would also beresponsible for other (nonprint) instructional materials and possiblyequipment.

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an understanding was reached that detailed financing requirements for theCorporation during 1982-85, and projections for the period 1986-90, would beprepared with the assistance of short-term consultants by October 31, 1981.

3.22 Organizational and procedural changes would be undertaken to improvethe effectiveness of textbook operations in the public sector. Major changesinclude the separation of responsibilities for policy formulation and manage-ment for the Corporation and for publishing and administration within theCorporation. A Board of Directors, chaired by the Minister of Education,would be created for the Corporation. Members would be drawn from theMinistry of the Budget, the President's Office, and the EducationalPublishers' Association and would include the President of the Corporation.The Board of Directors would be responsible for overall plans and policies forthe Corporation and for approving major expenditures (para. 2.15). Regularmanagement responsibilities would be carried by the President and staff of theCorporation. By comparison with the present Textbook Agency, the Corporationwould have expanded administrative functions. Two vice-presidencies and newdivisions for sales, accounting and administrative services would be createdto carry out the additional responsibilities. Divisions for editing, produc-tion, manufacturing, evaluation and marketing would be grouped under theVice-President/Publishing; and divisions for accounting, administrative ser-vices, and warehousing and distribution would be grouped under theVice-President/Finance (Organization charts for the existing Textbook Agencyand the proposed Corporation are included among working papers in the programfile, as listed in Annex 2.) Operations would be based on central costaccounting. Revised procedures for the production, procurement and distri-bution of materials would be introduced to ensure cost-effective operations(para. 2.16). The Government plans to prepare a medium-term staffing plan forthe Corporation and to appoint the President, Vice-Presidents, a controllerand a business manager by October 31, 1981.

3.23 The proposed charter for the creation of the Corporation and theCouncil are appropriate to sustain effective textbook publishing in the publicsector and to support development of the publishing capability in the privatesector (para. 2.16). During negotiations the Government agreed to establishthe Instructional Materials Corporation and the Instructional MaterialsCouncil with authority, responsibilities, staff and resources satisfactory tothe Bank by October 31, 1981.

Performance Improvements (Expenditure Components)

3.24 The revised sector policies and institutional changes to be intro-duced under the development program would support both general and region-specific improvements in the effectiveness of elementary education. Inaddition to improved participation and survival rates (para. 3.09), an averageincrease of 15% in student scores on standard achievement tests (from 48% in1979 to about 55% in 1985 and 63% by 1990) is targeted between 1981 and 1990.

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Planned improvements in the quality and relevance of instructional programsand in access to facilities and teachers would support progress towards pro-gram targets. A new curriculu-m, supported by revised teaching techniquesand instructional materials, would be introduced; classrooms and teacherswould be provided to reduce shortages; staff development programs would beprovided for staff of the MEC and Instructional Materials Corporation toenable them to carry out revised and expanded tasks effectively; andsystematic evaluation would be introduced to ensure the continued relevanceof policies and programs for elementary education. These inputs wouldcomprise the expo-"iture components included under the development programas discussed below kcosts and financing are discussed in Chapter 5).

3.25 Curricullum and Teaching Methods. Since October 1980, thecurriculum working group (para. 3.11) has developed a revised curriculum.In accordance with SOUTELE recommendations (para. 2.21), the proposedcurriculum emphasizes basic skills in literacy and numeracy (Table 3.4).The number of subjects in grades 1-2 would be reduced from eight to three,i.e., Pilipino, English and mathematics. Elements of the arts and socialsciences would be incorporated into the teaching of these subjects. Ingrades 3-6, environmental education would be added as a fourth and separatesubject. It would include units for the sciences, arts, social sciences,practical arts and physical education. Time allocated for each of theseunits would vary depending upon the grade level. However, emphasis would begiven to the arts and social sciences in grades 3-4 and to the sciences,social sciences and practical arts in grades 5 and 6. The reduced number ofsubjects would permit a planned doubling in the share of class hoursallocated for mathematics to correct the shortfall in the present curriculum(para. 2.18) as well as an increase in the share for English.

3.26 Teaching objectives and methods would be reoriented to support therevised curriculum. Teaching goals would be set on the basis of students'progress towards absorbing basic skills and concepts (paras. 2.19 and 3.09).In addition, techniques for second language teaching in English and Pilipino(for nonnative speakers) would be introduced in the early grades to improvecomprehension and reading abilities (para. 2.21). The revised financingpolicies would enable provincial supervisors to provide regular support forteachers (para. 3.07). The efficiency of school supervision would also beimproved by orienting supervisors to review at least two (related) subjectareas during school visits.

3.27 The revised curriculum would be completed during December 1981 andintroduced grade by grade during 1983-88. The new core curriculum, togetherwith revised techniques for teaching and measuring achievement, would assiststudents in the early grades to achieve improved skill levels in the languagearts and mathematics. These results would lead to improved performance in the

Table 3.4: ELEMENTARY CURRICULIJM - TIME ALLOCATIONS BY SUBJECT /a

1970 (Current) curriculum (%) Proposed curriculum (%)Grade Average Grade Average

Subject areas 1 2 3 4 5 6 Grades 1-6 1 2 3 4 5 6 Grades 1-6

Character education andopening exercises 7 7 6 6 5 5 6 - - - - - -

Language/artsVernacular 13 13 - -- - 4 33 32 - - - -

Pilipino 20 20 19 17 15 15 18 } 20 17 16 16 22

English 13 13 19 17 15 15 16 33 33 20 18 16 16 23Mathematics 10 10 9 8 10 10 10 34 35 20 14 12 12 21

Social studies 10 10 9 11 10 10 6 }1Health and science 10 10 9 - - - 5 CD

Science - - - 8 10 10 5 }

Music and arts 10 10 9 8 7 7 9 } - - 40 51 56 56 34Practical arts - - 13 17 19 19 11

Physical education 7 7 6 8 10 10 8

Total 100 100 100 100 100 100 100 100 100 100 100 100 100 100

Total weekly hours

25 25 27 30 35 35 30 25 25 27 30 35 35 30

/a Figures rounded.

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higher grades (para. 1.02). The quality gains would support improvements inprogression rates and achievement of related targets for cohort survival.Financing for curriculum development has been provided through the use of 1981allocations for the investment program. Further support would be provided tofinalize details and make adjustments required on the basis of initialexperience.

3.28 Instructional Materials. Under the development program, theGovernment's targeted ratio of one textbook for every two elementary studentsin each subject and grade would be reached by 1985/86 and maintained there-after (para. 2.22). This would be accomplished through the implementation ofa second phase of textbook development, production and distribution to becarried out by the Instructional Materials Corporation. The Corporation wouldfocus on improving the quality and relevance of basic textbooks to support thenew curriculum. Improved effectiveness in publishing activities would beachieved through use of new author groups, strengthened editorial services andrevised procedures for production, distribution and procurement (paras. 2.16and 2.22).

3.29 A ten-year publishing program (1981-90) has been prepared for theelementary sector by the Textbook Agency. Approximately 110 million basictextbooks would be produced and distributed between 1981 and 1990./IIncluded in the basic series are three textbooks for grades 1-2 (for Pilipino,English, mathematics) and five textbooks for grades 3-6 (for Pilipino,English, mathematics, science and social studies). In addition, some 6 mil-lion teachers' editions as well as special series (i.e., materials forchildren in non-Pilipino speaking areas) and supplementary materials (work-books, pamphlets, readers and other materials for remedial teaching andenrichment), would be provided to support the basic textbooks and to meetspecific regional needs. The publishing program is appropriately designed toimprove the relevance of materials and meet quantitative targets. It isexpected, however, that adjustments would be required from time to time tomaintain appropriate coverage and to service particular needs. Detailedworking papers on the publishing schedule, by year and title, are available inthe project file (Annex 2).

3.30 The second generation of basic textbooks would be developed andintroduced between 1983 and 1990 as shown in Table 3.5.

/1 This number of copies is based on 50% of projected enrollments by grade.Annual replacement at 15% of copies in circulation and the introductionof a revised or new edition for each textbook in the basic series everyfour years are also assumed.

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Table 3.5: SCHEDULED INTRODUCTION OF NEW SERIESOF BASIC TEXTBOOKS

Year English Pilipino Mathematics Science Social Studies

1983 Gr. 11984 Gr. 2 Gr. 11985 Gr. 3 Gr. 1 Gr. 21986 Gr. 4 Gr. 2 Gr. 3 Gr. 31987 Gr. 5 Gr. 3 Gr. 4 Gr. 4 Gr. 31988 Gr. 6 Gr. 4 Gr. 5 Gr. 5 Gr. 41989 Gr. 5 Gr. 6 Gr. 6 Gr. 51990 Cr. 6 Gr. 6

The revised and new editions in this series would be geared to the abilitiesof the average student and teacher in both rural and urban environments.They would focus on basic skills and concepts, moving from the simple to thecomplex. Particular inprovements would be achieved through a simplificationof the language used in mathematics and science textbooks, for which Englishis the medium of instruction; the use of second language techniques forEnglish and Pilipino for nonnative speakers (para. 3.26); and revisions inthe social studies series to improve its relevance to Philippine history andculture. The series would be supplemented with the region-specific, reme-dial and enrichmlent materials. Under the development program, remedialand region-specific materials would be financed in accordance with therevised formula and guidelines for the allocation of development funds(para. 3.06).

3.31 A broadened range of author and editorial expertise would bedeveloped by the Instructional Mlaterials Corporation. While the curriculumagencies (para. 2.22) would continue to provide manuscript writers, newauthor groups would also be created to encourage a variety of approaches.Some new authors would be recruited from existing agencies (i.e., theCreative Writing Center at the University of the Philippines, the Children'sCommunications Center) and others would be developed. Both the authorgroups and content editors within the Corporation would be strengthenedthrough training to be provided under t'he development program.

3.32 M1Ieasures would also be taken to improve the effectiveness of text-book development and format. Emphasis would be placed on obtaining reliablefeedback from pilot programs and new series would be tested for a full year.The replacement of teachers' manuals with teachers' editions (facsimiles oftextbook pages plus instructions for teaching) would support an improved useof textbooks by teachers. The average nurmber of pages per textbook would be

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reduced from 255 at present to 175 in the new series. This change would

correct weaknesses in the earlier series (para. 2.22) and result inreductions in book costs.

3.33 Gains in efficiency would be achieved through revised distributionand procurement practices. Distribution costs would be reduced from about18% of the average textbook cost to 15% (from P 1.20 per textbook toP 1.00 at present) by improving the efficiency of delivery. Under the firsttextbook project, 54 warehouses were constructed throughout the regions. Anadditional 26 warebioises would be constructed under the sector developmentprogram to reduce L,ie distance between stocks and end-users. In addition, theregional warehouses would be authorized to deliver directly to schools ratherthan through the provincial and district offices of the MEC as at present.Budget provisions would be made to the regions to carry out distributionresponsibilities and a local ordering system would be instituted to reduce theincidence of delivery shortfalls and surpluses. Delays encountered in theprocurement of paper and printing services under the first project (delays inarrival of paper stock and in delivery of paper to local printers were common)would also be reduced. Paper stocks amounting to estimated annual require-ments would be procured in advance and replenished periodically; andarrangements would be finalized with an international bank to expedite theforwarding of documents required for off-loading at the Port of Manila. Withimplementation of these measures, printers would be expected to fulfillcontracts within four months and the entire procurement process would bereduced from a year to six months.

3.34 The new and revised instructional materials would support gains instudent achievement in elementary education with particular attention toregion-specific needs. Tinder the development program support would beprovided for publishing activities scheduled during 1981-90 (e.g., develop-ment, manufacture and distribution of textbooks and related materials).Twenty-six regional warehouses, phototypesetting equipment (for preparingpilot editions) and a resource center (a library of prototype publications)for the Instructional Materials Corporation would also be provided.

3.35 Facilities. Facilities and equipment would be provided to meet theneeds of the school system and the agencies managing elementary education.Office equipment would be provided for the central and regional agencies andregional training centers would be constructed (paras. 2.09 and 2.14). How-ever, the major development input would be the provision of classrooms. Onaverage, 11,000 new classrooms would be provided annually between 1981 and1990. Included would be about 7,000 classrooms required to meet enrollmentgrowth and 4,000 (representing less than 2% of stock per year on average) toreplace dilapidated facilities. Funds would also be provided for therehabilitation classrooms.

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3.36 In order to rationalize the provision of classrooms (para. 2.24),complete elementary schools (i.e., those offering six grades) and relatedequipment and furniture among the regions, revised criteria would be intro-duced (para. 2.25). Requirements for classrooms would be determined on thebasis of systematic planning information including school maps, population andenrollment data, the number of available places per grade and the status ofexisting facilities. Priority would be given to expanding existing shools(rather than to establishing new schools). Additional criteria have beendeveloped to improve the cost-effectiveness of provision and utilization ofclassrooms. Preference would be given to classroom rehabilitation (ratherthan replacement) where economically viable (e.g., where rehabilitation wouldcost less than replacement and major structural weaknesses are not involved).Further, where geographically feasible, complete schools would be expanded toabsorb children from nearby schools with enrollments too low to warrantadditional classrooms for grade 5 and 6 students. Otherwise, multigradeteaching would be used in small schools to provide the full cycle economic-ally. (Details on the revised facilities planning criteria, which would beused in preparing and approving regional requests under the developmentprogram, are provided in Annex 4). The Government's standard designs forelementary classrooms and lists for basic furniture and equipment (i.e.,photocopiers, science kits, basic tools, etc.) are appropriate. Regulargovernment policy on the provision of equipment and furniture for elementaryschools delegates financing responsibilities to the regions. Under thedevelopment program, furniture and equipment would be provided only to reduceacute shortfalls in school districts with poor performance (para. 3.06).

3.37 The information required to introduce the criteria for systematicfacilities planning (e.g., continuous school mapping, facilities inventoriesand enrollment and population information) would be included in the manage-ment information system of the OPS. The OPS would assist the regionalplanning units in preparing the information needed (para. 3.17) and compilethe requests in order of priority as the basis for annual programming andbudgeting. Three agencies are chiefly involved in school construction in thePhilippines. These are the NEC and the Ministries of Local Governments andPublic Works. The Ministry of Public Works, MPW, is responsible for theconstruction and rehabilitation of classrooms while the HEC sets standards andcriteria for the provision of school facilities. The Ministry of LocalGovernments is mainly responsible for the acquisition of sites. The revisedcriteria and instructions for school location and facilities planning havebeen incorporated into a memorandum of agreement among the ministriesinvolved.

3.38 The use of the systematic criteria for the provision of classroomswould serve to reduce regional disparities in opportunity. The developmentprogram would provide approximately 110,000 classrooms over the period1981-90. Basic school furniture and equipment for districts most in need,administrative equipment for the central and regional offices, and 13regional training centers would also be provided.

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3.39 Teachers. In order to reduce disparities in the availability ofteachers and to ensure progress towards the targeted teacher-class ratio of1.2:1 in grades 5 and 6 and the targeted student-teacher ratio of 36:1, anational scheme for monitoring teacher demand and supply would be established(para. 2.26). The Regional Offices of the MEC would implement the scheme incooperation with teacher training institutions in the regions. Informationprepared in the regions on the availability of teachers and student-teacherratios for the OPS would be passed to the preservice training institutions andused to establish enrollment and output targets. The monitoring of theprovision of teachers at the regional level would be more effective inreducing disparities than a centrally managed scheme. Most students inteacher training institutions live in nearby areas and prefer to stay in thoseareas. The detailed proposal for monitoring teacher supply and demand wascompleted prior to negotiations. Implementation is scheduled to begin aftertesting during 1982.

3.40 Staff Development. Training would be included under the develop-ment program for staff of the MEC and the Instructional Materials Corporation(paras. 2.10, 2.14 and 2.23)./1 Upgrading would be provided through workshops(Table 3.6) and fellowships. Expert services in selected fields would also beprovided.

/1 Staff of the Financial Management Service of the MEC (para. 3.11) would beincluded in training programs to ensure common understanding of therevised sector financing policies and to improve skills for effectivefinancial management in the MEC.

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Table 3.6: STAFF DEVELOPMENT - WORKSHOPS (1981-85)

Number of Average Total man-participants from course months

National Regional Total duration ofParticipants level level (months) training

MECAdministrators /a 80 2,500 2,580 0.6 1,548Planners /b 50 2,300 2,350 0.6 1,410Principals - 14,000 14,000 0.5 7,000Teachers - 125,000 125,000 0.5 62,500

Instructional MaterialsCorporation 125 - 125 1.0 125

Total Man-months 72,583

/a Including professional staff of the BEE (50); staff of the FinancialManagement Service (30); key staff in the regional offices of the MEC(475); provincial superintendents and supervisors (225); and districtsuperintendents (1,800).

lb Including professional staff of the OPS (50); key staff in the regionaloffices of the MEC (275); provincial superintendents and supervisors(225); and district superintendents (1,800).

3.41 Prototype syllabi for workshops for MEC staff during the first halfof the development program, ending in December 1985, have been prepared by theBEE with assistance from the OPS and other agencies. Trainers for workshopsfor staff of the central MEC and the Regional Offices would be drawn mainlyfrom local firms specializing in training and from the universities. Trainersfor other workshops would be drawn from the Regional Offices. The content ofeach workshop would be designed to support the sector development strategygenerally and to develop particular skills. Course specializations foradministrators would include: organizational management and administrativeprocedures; project and program financing; personnel management and staffdevelopment; and communications management. Courses for planners would centeron: project and program planning; educational financing and budgeting; datasystems and management; and school location planning. As far as possible,staff from various levels would be grouped together in workshops. The work-shops for supervisory staff, principals and teachers would support the intro-duction of the revised curriculum, instructional materials and procedures forevaluation of student performance (paras. 3.09 and 3.26). Particular emphasiswould be given to methods for subject and lesson planning including theselection of behavioral objectives, teaching strategies, use of instructionalmaterials and techniques for testing and evaluation. Attention would also be

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given to the development of local materials (para. 2.22). School supervisorsfrom the provincial offices and district superintendents wouldreceive similar training and an orientation to multi-subject supervision(para. 3.26) in conjunction with management and planning workshops.

3.42 During 1982-85, staff of the Instructional Materials Corporationwould participate in workshops for the development of materials in thecore subjects and practical arts included in the revised curriculum. Theseworkshops would bring together curriculum specialists, writers and editors.Workshops would 21 - be provided in book design and layout, management ofpublishing activities, marketing and distribution.

3.43 Fellowships and expert services planned over the first half of thedevelopment program would provide specialized upgrading and assistance forMEC and Corporation staff. About 250 staff of the central and regionaloffices of the MEC would participate in fellowship training. Some 600 man-months of fellowships (400 man-months local, 200 foreign) would be providedfor degree programs and 1,250 man-months for shorter, non-degree training(1,000 man-months local, 250 foreign). Expert services (180 man-months ofwhich about half would be local and half foreign) would be provided to theMEC for educational testing and evaluation; school location planning; datasystems and processing; curriculum and teaching methods; financial managementand budgeting; and for introducing the monitoring scheme for teacher supplyand demand (para. 3.39). An additional 200 man-months of local expertservices would be provided to assist directly with implementation of thedevelopment program. About 109 man-months of fellowship training (non-degree,foreign) would be provided for 30 staff of the Corporation in management andaccounting, writing and editing, design, manufacturing and distribution. Inaddition, 36 man-months of expert services would be provided to develop theworkshops for Corporation staff. Longer term expert services (90 man-months,foreign) would be provided for six experts in textbook development; managementand production; printing; accounting; data processing; and controllership.

3.44 The training and assistance to be provided to staff of the MEC andInstructional Materials Corporation staff through 1985 would be financed underthe development program. It would reach all professional staff in theCorporation; 100% of those involved with elementary education in the centraland regional agencies of the MEC; and about 50% of school principals andteachers. Further staff upgrading, including training for teachers andprincipals not reached during the period 1982-85, would be scheduled duringthe second half of the development program.

3.45 Sector Evaluation. To support the regular review and updating ofpolicies and guidelines, systematic performance evaluation would be introducedunder the development program as follows:

(a) monitoring of regional data on elementary education an annualbasis;

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(b) in-depth evaluation on determinants of student participation andachievement over the ten-year development period; and

(c) research on selected topics related to sector performance.

3.46 The monitoring system would be established through improvements inthe OPS- management information system (para. 3.15). The expanded datawould be adequate for purposes of inter- and intraregional comparisons onstudent participation, performance and expenditure and for projecting relatedrequirements. To reduce difficulties encountered in the initialimplementation of the MIS (para. 2.12) school forms would be simplified;procedures for the distribution and retrieval of forms would be streamlined;and data compilation and processing would be improved through the use of theminicomputers purchased by OPS (para. 2.14). The projects and evaluationdivision of the OPS would compile and analyze the information and report onthe status of sector performance each year.

3.47 An in-depth evaluation of sector performance would be conductedduring the period 1981-90. The research design calls for a baseline survey(to be undertaken during 1981/82) on school and home determinants ofeducational participation and achievement. The survey would employ samplingtechniques to cover about 100 school districts (of over 1,800). Use wouldbe made of existing educational and household data in designing the surveys.The household survey would be used to assess the relations between socio-economic status and participation. The household data would be matched withschool and community-based data to assess thne relationships betweenschooling inputs and student performance. In conjunction with the survey,standardized achievement tests, including indicators of school quality andinternationally comparable items, would be administered regularly during1981-90. The BEE would manage the development and administration of thetests with inputs provided by other agencies with expertise in educationalmeasurement. 'During negotiations an understanding was reached thatshort-term consultants would be retained to finalize plans for the baselinesurvey by October 31, 1981.

3.48 Reporting requirements for the evaluation would include a reviewof baseline survey results (1982); an interim synthesis of baseline data andperformance monitoring outcomes (to be carried out during 1983); and amid-term evaluation (1985) with followup planned for the end of the develop-ment period (1990). The evaluation would be managed by tEC authoritiesresponsible for administering thne development program.

3.49 Research relevant to elementary education would also be carried outunder the development program. Criteria for the approval of research requestshave been established to ensure that the proposals address the main issues inelementary education and have practical applications (Annex 4). Research onexperimental delivery systems as well as on particular issues would beincluded. It is expected that between 1981 and 1985 about 30 studies would be

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undertaken by research proponents from GovernLment and the universities withregional cooperation as appropriate. Included would be three studies on thefinancing of education, a review of preservice teacher training programs forelementary and secondary school teachers (para. 2.21), and a review of theexpected impact of the development program for elementary education on the

secondary school system. Terms of reference for the financing study have beencompleted. It is expected that terms of reference for the other two studieswould be completed by December 1981.

3.50 The results of evaluation work to be carried out under the sectordevelopment program would be used to adjust sector policies and programsvis-a-vis national development strategy and regional needs. The developmentprogram would finance the annual monitoring exercise, the in-depth evaluationand the research studies. Results (data and related reports) would be madeavailable for use by the relevant agencies.

4. MANAGEMENT AND IMPLEMENTATION OF THE SECTOR PROGRAM

4.01 Arrangements for management of the Government½s ten-year developmentprogram (1981-90) for elementary education have been organized to facilitateprogram execution and include:

(a) a sector approach to management;

(b) appropriate organization and staffing arrangements;

(c) well-defined implementation procedures;

(d) guidelines and criteria for allocating funds and approvingsubprojects; and

(e) a feasible implementation schedule.

The Sector Approach

4.02 The development program for elementary education is designed forBank assistance through a sector operation and is well-suited to thisapproach. The program covers ten years (1981-90), includes a large number ofsubprojects and involves several agencies under the authority of the MEC. TheBank loan would be used to assist the first half of the development program,which ends in December 1985.

4.03 The development program is based on the introduction of revisedpolicies and institutional changes designed to support broad improvements inthe management and performance of elementary education (paras. 3.01-3.04).These objectives and related targets would be achieved largely through thedevelopment and implementation of subprojects. The Bank loan would assistwith the financing of about 60 subprojects scheduled during 1982-85. Theseinclude 52 regional subprojects for the provision of facilities, furniture aequipment (one per year per region); four staff development subprojects (one

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per year); and one subproject each for curriculum development, the provisionof instructional materials, monitoring teacher supply, and sector evaluation.Bank appraisal and supervision of these subprojects, particularly the numerousfacilities subprojects, planned training sessions and sector-related studies,would be impractical. These tasks could be more effectively carried out bythe GovernmLent through a sector lending approach.

4.04 A deliberate effort has been made to rely as much as possible onregular Government procedures for implementing the development program. TheMEC would have responsibility for the preparation, appraisal, approval andimplementation of subprojects. No further appraisal would be required for theinstructional materials subproject, the sector performance monitoring schemeor the in-depth evaluation (all of which have been reviewed in detail by theBank). All subproject processing and financing would be carried out inaccordance with procedures and criteria agreed with the Bank. Programmanagement would be directly accountable to the Minister of Education and,through periodic review, to the Bank.

Organization and Staffing

4.05 The Government has devised an effective organizational structureand prepared suitable staffing arrangements for implementing the program.Management functions are assigned to staff of the relevant agencies andoffices of the MEC.

4.06 Organization. Management responsibilities under the sector programwould be assigned as summarized in Chart 4.1. The Minister of Education wouldhave final authority for the approval of subprojects. A Program ExecutiveAuthority, Technical Staff, and Regional Management Groups were created inNovember 1979. The Program Executive Authority is chaired by the DeputyMinister of Education and includes the heads of BEE, OPS, EDPITAF (para.1.06), the Financial Management Service (para. 3.11) and the present TextbookAgency (to be replaced by the President of the Instructional MaterialsCorporation). It is supported by a Technical Staff, which is headed by theAssistant Director of the BEE and which would be primarily responsible forappraising subprojects (i.e., for facilities, curriculum, staff development,monitoring of teacher supply and sector related studies) and for supervisingimplementation. The Regional Management Groups are chaired by the AssistantDirectors of the Regional Offices of the MEC. They would be mainlyresponsible for preparing and implementing facilities subprojects and forpreparing training requests involving regional staff. Civil works componentsincluded in the regional facilities subprojects would be approved through themanagement structure for the sector program and carried out by the MPW (para.3.37). Furniture for the regions would be procured by the Regional Manage-ment Groups; and most equipment wcould be procured centrally by the TechnicalStaff and distributed to thc relevant national agencies and the regions.

4.07 Staffinp. :ne Gove; m t has taken steps to ensure that the MEC hassufficient, competent staff i _.npiement the sector program. The ProgramTechnical Staff has three divisions for (a) subproject development, appraisal

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Chart 4.1: SECTOR PROGRAM FOR ELEMENTARY EDUCATIONMANAGEMENT RESPONSIBILITIES

Approval and | Minister of Ministry of Audit Ministry ofInterministerial Education Budget Commission Public Works

Coordination

General Management eputy MinisterReview of Recommended of EducationSubprojects (Procr-" F)irector)

ProgramExecutiveAuthority

Subproject Appraisal,Supervision andMonitoring; Program ProgramEvaluation; and TechnicalPreparation of Centrally- StaffManaged Subprojects

_ _ _ _ _ _ I--- -- -- --- -- --_-- -- -- --- -- -- --- -- -- --- -- -- --- - -- --- -- -- --- -- -- --- -- -- --- -- - --- -- --

Financial Control Program

Technical ManagementStaff Servzice

Procurement MEC National Ministry of Public

Agencies and Contract Works RegionaiRegional Office Ofic°ffices

Regional Management| MEC Regional l

Offices l

Subproject Preparation,Implementation and RegionalMonitoring Management Group

World Bank-22526

- 42 -

and implementation; (b) technical services and monitoring; and (c) financialplanning and control. (The terms of reference for each division are shown inAnnex 3.) It includes 32 full-time and 20 part-time staff drawn from the BEE,the OPS, the Textbook Agency (to be replaced by staff of the InstitutionalCorporation), the Financial Management Service of the MEC and EDPITAF. TheOPS and BEE staff assigned to the Technical Staff have been involved in thedetailed preparation of the sector program since mid-1979. They would beassisted in their management tasks by EDPITAF staff (both senior programofficers and technical staff). EDPITAF has considerable expertise in thepreparation and implementation of education projects and programs. In therecent past, the Government has placed emphasis on developing these skillswithin the MEC bureaus and services. EDPITAF has continued to play an impor-tant role through the provision of technical services and through contribu-tions to project development and educational research. It would continue toprovide support to the MEC during implementation of the development programfor elementary education. A pool of local consultants has also been organizedto provide specific managerial and technical expertise as may be required(para. 3.43). For purposes of implementation of the sector program, theInstructional Material Corporation would report to the Deputy Minister throughthe Technical Staff. The Corporation would, however, be directly responsiblefor implementing the instructional materials subproject and has sufficientstaff and experience for this purpose.

4.08 The Regional Management Groups each comprise up to 15 membersincluding staff the regional divisions for elementary education, the chiefsof the regional planning units, and MEC staff from the provincial officesand school districts. The regional planning unit would serve as thetechnical secretariat for the Group and would recruit provincial anddistrict level staff to work on specific subprojects. The regions would besupported by the Technical Staff through provision of assistance as may berequired to carry out subproject preparation or implementation. The majorresponsibility of the regions would be for preparing and implementing thefacilities subprojects. Initial assistance in incorporating the facilitiesplanning criteria would be provided by the OPS through the technical staff(para. 3.37). The Regional Offices of the TPW, which have constructed over10,000 classrooms per year for the past several years, have sufficientexperience and staff to supervise the facilities subprojects.

4.09 The staffing arrangements for managing the development program havebeen reviewed by the Bank and are appropriate. All staff involved in manage-ment have participated in seminars on the design and implementation of theprogram and further training would be provided during implementation. Asexperience is gained during program execution, it is expected that modifica-tions would be made in the organization and staffing structure for the sectorprogram as necessary. During negotiations the Government agreed to (a) makeuse of the expertise and staff of EDPITAF (or other agencies of the MEC) toprovide assistance in implementing the development program under terms ofreference satisfactory to the Bank; and (b) appoint and retain suitablyqualified staff in adequate numbers in the TEC to implement the developmentprogram.

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Procedures for Subproject Processing

4.10 The Government has designed suitable procedures for implementing thesector program. These procedures, shown in Chart 4.2, would be followed forthe implementation of all subprojects and for the preparation and approval ofall subprojects not appraised by the Bank. They have been designed to ensurethat subprojects conform with the Government s overall development strategyfor elementary education, adhere to the main objectives of the developmentprogram and are feasible. Procedures for preparing and appraising subprojectshave been tested for about half (six) of the facilities subprojects and allother subprojects to be appraised and approved by the MEC and scheduled forimplementation during 1982 (e.g. staff development, special studies, curricu-lum development and the scheme for monitoring teacher supply). The Governmentplans to finalize appraisal documentation for all subprojects scheduled for1982 by September 30, 1981.

4.11 Identification and Preparation. All subprojects to be implementedduring the first half of the development program have been identified by MEC.Subprojects for subsequent years have also been broadly identified, but wouldbe refined annually. The Program Technical Staff would prepare the training,teacher monitoring and curriculum subprojects and the regions would preparethe facilities subprojects and contribute to the preparation of training com-ponents for regional staff. Proponents from the public and private sectorswould be eligible to prepare requests for experimental or research componentsunder the evaluation subproject. For regions lacking the technical competenceto prepare subprojects in accordance with agreed criteria, the Technical Staffwould arrange to provide assistance. For the facilities and training sub-projects, single preparation documents are being prepared for the first fiveyears of the program. These would be updated annually as the basis forappraisal.

4.12 Appraisal. The Technical Staff would review subproject documentsto determine whether agreed criteria for subproject design have been met. Onthe basis of satisfactory documentation, the Technical Staff would appoint ateam to carry out appraisal. Each team would include staff qualified toreview educational objectives and justification, management capabilities,costs and implementation schedules and include at least one full-time memberof the Technical Staff. Field visits would generally be required of appraisalteams dealing with regional requests. If particular subprojects wereinadequately prepared, the preparation document would be modified andreappraisal arranged. An appraisal report, based on a standard format, wouldbe prepared for each subproject or group of subprojects and submitted to theProgram Executive Authority and the Minister through the Technical Staff.

4.13 Approval. The Program Executive Authority would review and approve(or request modifications of) subprojects based on the appraisal reports.Subprojects approved by the Executive Authority would be submitted throughthe Deputy Minister to the Minister for final endorsement.

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Chart 4.2: SECTOR PROGRAM FOR ELEMENTARY EDUCATIONPROCEDURES FOR GENERATING AND PROCESSING SUBPROJECTS

Subprojects 4 - - - - - - - - - -Prepared bys

Nationalr - - - - - - - - - - Agencies and I

Regional Offices I

Technical Staff Yes Required for

Provides Assistance 4 Subproject I\Preparation/ |

l ~~~~~~~~~~~~~~~~~(2)Yes Technical Staff |

l ~~~~~AppraisesI t Subproject (s)

0 Modification No Subproject \

Possi ble V.t Cr itrie

rAtraj Yes

'I= /roJX .. : us .(3AExecutive Moiiain No

-0 Authority Reviews Possible - ITechnical Staff Executive

Recommendations Aut

Yes

Minister Yes Agency

Approves ImplementsSubprojects Subprojects

No

World Bank-22527

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4.14 Supervision. The Program Executive Authority would oversee theimplementation of subprojects. The Technical Staff would be directlyresponsible for ensuring the effective execution of subprojects at both theregional and national levels. The role of the Bank would be to participatein annual discussions on policies affecting the sector and to review overallprogress on policy and institutional changes. It is not expected that theBank would become involved in the details of assistance to particularsubprojects. During the annual discussions, however, the Bank would reviewimplementation of three to four regional facilities subprojects and two ofthe nationally man.-ed subprojects. In this manner about 25% of subprojectswould be reviewed oy the Bank during 1982-85. The Bank would also undertakeprior review of subproject appraisal reports (initially all such reports) toensure that they conform with agreed guidelines and criteria. Prior tonegotiations agreement was reached on a proposed schedule for the annualreview of sector policies and program implementation with the Bank. Duringnegotiations the Governrment agreed to submit to the Bank for review andcomments, not less than three months before the scheduled start ofimplementation, subproject proposals requested by the Bank.

4.15 Monitoring. Implementation of the sector program would be moni-tored by the Technical Staff. Information would be provided on progress withimplementing and financing subprojects and on progress towards achievingrelated targets. Recommendations for improvements or modifications insubproject content or criteria as well as in implementation procedures wouldalso be included. Quarterly progress reports, to be submitted to theMinister and the Bank, would form the basis for program monitoring.

Guidelines and Criteria for Investment and Approval of Subprojects

4.16 Guidelines and criteria have been established to promote achieve-ment of objectives of the development program -- guidelines for the allocationof development expenditure, and criteria for approval of subprojects. Theguidelines and criteria are designed to support the revised sector policiesand achievement of targeted improvements in sector performance. They may beamended by mutual agreement in light of experience gained during implementa-tion. During negotiations the Government agreed that it would select andimplement subprojects in accordance with guidelines, criteria and proceduressatisfactory to the Bank.

4.17 Guidelines for the Allocation of Funds. In terms of sector require-ments for improved coverage, efficiency and quality, planned developmentexpenditures strike an appropriate balance between allocations for facilitiesand other educational inputs. In addition, guideline- have been developed toensure that allocations are made in accordance with regional needs to redressdisparities in educational opportunity (para. 3.06). For 80% of developmentexpenditures, annual allocations to the regions would be based on a weightedindicator of deficiencies in the enrollment rate of the relevant age group,the cohort survival rate, and average achievement scores; and on the size of

- 46 -

the school-aged population in each region. For 20% of development expendi-tures, standard allocations, based on the share of the school-aged population,would be made to the regions. Table 4.1 illustrates the resulting investmentguidelines based on 1980 standings (details are shown in Annex 4). Theguidelines would be revised annually in accordance with changes in regionalrankings and reviewed by the Bank during annual discussions. The guidelineswould need to be interpreted flexibly so as not to conflict with criteriaestablished for subproject approval. The formula for allocating funds to theregions would be subject to review and revision after the first year ofproject implementation and periodically thereafter.

Table 4.1: REGIONAL GUIDELINES FOR THE ALLOCATION OFDEVELOPMENT EXPENDITURES

Share of Deficiency Guidelines forpopulation indicators proportional

Region aged 7-12 (for 1980) investment

XII. Central Mindanao .07 0.47 .088VIII. Eastern Visayas .06 0.44 .076

V. Bicol .08 0.40 .090X. Northern Mindanao .06 0.39 .061IX. Western Mindanao .05 0.39 .055VII. Central Visayas .08 0.39 .082VI. Western Visayas .10 0.39 .102XI. Southern Mindanao .07 0.38 .069II. Cagayan Valley .05 0.33 .043IV. Southern Tagalog .12 0.31 .110III. Central Luzon .10 0.29 .088I. Ilocos .07 0.27 .058

XIII. National Capital Region .09 0.27 .075

Total: 1.00 Average: 0.36 Total: 1.000(rounded)

4.18 Criteria for Subproject Approval. The MEC would appraise andapprove subproject requests on the basis of four general criteria, viz:(a) relevance to the objectives of the development program; (b) technicalfeasibility; (c) efficiency; and (d) managerial feasibility. Adherence to therelevance criterion would ensure that subprojects are designed to supportachievement of one or more sector objectives and related targets, i.e.,equalizing opportunity, improving efficiency, improving quality, strengtheningmanagement and planning. Technical feasibility refers to the degree to whichobjectives and targets set could be achieved. This criterion would be appliedto assess the suitability of project design. Third, subprojects would beevaluated to determine the extent to which investment would be efficiently

- 47 -

utilized. Fourth, the implementation capacity of the requesting agency wouldbe evaluated to ensure efficient subproject implementation. Assistance wouldbe provided to improve the capabilities to those agencies regularly involvedin elementary education as required. More specific criteria have beendeveloped for evaluating facilities subprojects, training components andresearch proposals (Annex 4). Regional requests for facilities would beevaluated and approved on the basis of systematic facilities planning andlocation criteria (para. 3.36). The content of training (both workshops andfellowships) for supervisors, principals and teachers would be justified andapproved with a view to resolving particular shortcomings in studentperformance at the regional or subregional level. Experimental and researchcomponents would be assessed on the basis of replicability and potentialcontributions to sector policies, respectively.

Implementation Schedule

4.19 An implementation schedule for the development program is shown inAnnex 5. The program has been underway since January 1981. Implementationof the portion of the program to be assisted by the Bank loan is expected tobe completed by December 31, 1985. The schedule for 1982-85 is consideredfeasible in view of the advanced state of preparation of subprojects.Implementation of the textbook subproject has begun and the Government hasalso completed the following major activities:

(a) appraised half of the facilities subprojects scheduled for 1982;

(b) prepared and appraised prototype courses for the training sub-projects scheduled during 1982-85 and prepared draft contracts forthe management of fellowship programs and the provision of expertservices;

(c) appraised about 10 proposals for special studies and researchrelated to elementary education about seven of which would beimplemented during 1982; and

(d) completed design of the performance monitoring scheme forelementary education.

In addition, standard designs for the 13 regional training centers have beenprepared and tender and contract documents for equipment and furnitureprocurement have been drafted. (Procurement of goods and services requiredfor all subprojects during 1982-85 would proceed as scheduled during 1981 tothe point of contract signing.) It is expected that the detailed appraisalof all 13 facilities subprojects, and training and research activitiesscheduled for 1982 would be completed by September 30, 1981 in accordance withagreed guidelines and criteria. It is also expected that the final detailsof the revised curriculum would be completed by December 1981 to permit ayear of testing prior to introduction in 1983; and that the data forms formonitoring teacher supply (already prepared) would be tested beforeintroduction in 1982.

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5. PROGRAM COSTS AND FINANCING

Development Expenditures

5.01 The Government's ten-year program for elementary education would besupported by development expenditures estimated at US$767 million in (1981prices) as shown in Table 5.1./I The expenditure planned for civil works(amounting to 77% of the total) would cover basic requirements for newclassrooms during 1981-90. Estimated expenditures for other components (23%of total) are sufficient to support planned improvements in quality,management and efficiency. The costs of the program are both economical andfeasible.

5.02 Costs for the portion of the sector program to be assisted by theBank are defined as total development expenditures programmed for elementaryeducation during 1982-85. These costs amount to US$448 million includingcontingencies (Tables 5.2 and 5.3).

5.03 Base costs for the program during 1982-85 refer to first quarter1981 prices and are reasonable. Civil works costs are estimated on the basisof MEC standards and FPW unit costs./2 Equipment and furniture costs arebased on the MEC's standard lists which are adequate and economical. Papercosts are based on recent contracts awarded by the Textbook Agency (US$800 permetric ton). Equipment and paper purchased under the sector program would beexempt from import duties. The technical assistance component would includeapproximately 506 man-months of specialist services (about 216 foreign and 290local) and 1,960 man-months of fellowships (about 560 foreign and 1,400local). The unit costs per man-month are expected to average about US$6,400for expert services (about US$8,300 for foreign experts and US$5,000 for localexperts including recruitment, travel, benefits, and salary) and US$900 forfellowships (about US$1,250 for overseas fellowships and US$700 for localfellowships). About 30 policy-related studies and experimental programs wouldbe undertaken under the evaluation component at an average cost of aboutUS$25,000 each. The cost of sector performance monitoring and the in-depthevaluation is approximately US$1.2 million and an additional US$1.0 millionhas been included for the preparation of future projects.

/1 The Government approved both the civil works budget and the budget forthe existing Textbook Agency for 1981. Initial staff development andrelated activities are being financed through use of the preparation itemincluded under Loan 1786-PH.

/2 The unit cost for a regular classroom is about US$5,500 (1981 prices) witha space allowance of 1.2 square meters per student place; and the unitcost of a multipurpose workshop (100 square meters) is US$9,000 (1981prices).

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Table 5.1: TEN-YEAR PROGRAM1 - ESTIMATED DEVELOPMENT EXPENDITURESBY YEAR AND CATEGORY

(1981 prices, US$ million)

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 Total

Developmentand provisionof instruc-tionalmaterials 7 6 10 12 15 7 9 15 7 94

Staff andcurriculumdevelopment/a 2 4 4 4 4 4 4 4 < 4 <4 37

Provision offacilities andequipmentcivil works/b 44 56 57 59 62 62 62 62 62 62 588equipment &furniture/c - 6 5 6 6 3 3 3 3 3 38

Sector evalua-tion andpreparationof futureprojects <1 <1 <1 <1 <1 <1 <1 <1 <1 <1 5

Technicalassistance /d - >1 >1 >1 >1 - - - - - 5

Total 53 74 73 81 86 84 76 79 84 76 767

/a Includes US$200,000 for developing and introducing a scheme for monitoringteacher supply and demand.

/b Includes US$2.8 million for warehouses for the IMC and construction of13 regional training centers

/c Includes US$1.4 million for equipment for the IMC.

/d Includes US$1.0 million for short-term technical assistance (local) forprogram management.

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Table 5.2: DEVELOPMENT EXPENDITURES (1982-85) BY TYPE OF EXPENDITURE(US$ million)

Category 1982 1983 1984 1985 Total

Civil works 56.0 56.6 58.7 61.7 233.0Equipment and paper /a 5.8 4.8 8.0 8.8 27.4Furniture 2.7 2.7 2.9 2.9 11.2Instruction naterials

Printing 1.7 1.6 2.7 3.1 9.1Development & distribution 2.0 1.6 2.6 3.1 9.3Staff development 4.0 4.1 4.1 4.1 16.3Evaluation, studies and

preparation of futureprojects 0.6 0.7 0.8 0.9 3.0

Technical assistance 1.2 1.4 1.4 1.0 5.0

Subtotal 74.0 73.5 81.2 85.6 314.3

Contingenciesphysical (9.6%) 7.1 6.9 7.8 8.4 30.2Price (33%) 14.1 21.4 30.0 38.1 103.6

Subtotal 21.2 28.3 37.8 46.5 133.8

Total 95.2 101.8 119.0 132.1 448.1

/a Includes materials such as books and journals.

- 51 -

Table 5.3: DEVELOPMENT EXPENDITURES (1982-85) BYLOCAL AND FOREIGN CURRENCY COMPOLENTS

Local Foreign Total Local Foreign TotalCategory ----- (P million) ---- (US$ million) --

Civil works 1,399 349 1,748 186.5 46.5 233.0Equipment and

paper /a 9 196 205 1.2 26.2 27.4Furniture 56 28 84 7.5 3.7 11.2Instructional materialsPrinting 37 31 68 5.0 4.1 9.1Development anddistribution 31 31 70 5.1 4.2 9.3

Staff development 110 12 122 14.7 1.6 16.3Evaluation, studies,and preparation offuture projects 7 15 22 1.0 2.0 3.0

Technicalassistance 19 19 38 2.5 2.5 5.0

Total basecost 1,676 681 2,357 223.5 90.8 314.3

ContingenciesPhysical 161 66 227 21.5 8.7 30.2Price 553 224 777 73.7 29.9 103.6

Subtotal 714 290 1,004 95.2 38.6 133.8

Total 2,390 971 3,361 318.7 129.4 448.1

/a Equipment $11.9 million and paper $15.5 million.

_ 59 _52-

5.04 Contingencies are estimated at US$134 million. They represent 42.6%of the base cost. Physical contingencies for technical assistance, evaluationand studies are estimated at 5% of the base cost and for all other items at10%. Price contingencies as a percentage of base costs are estimated asfollows:

1981 1982 1983 1984

_________ (% ) …-------

Local currency components 14.0 10.0 8.0 8.0Foreign currency components 9.0 8.5 8.0 7.5

Foreign exchange costs are estimated at 20% for civil works; 90% forequipment; 33% for furniture; 100% for paper; 10% for staff developmentworkshops; 45% for textbook development, pr-inting and distribution; 50%for technical assistance; and 66% for evaluation. The total foreignexchange cost of the sector project is US$129.4 million or 29% of the totalcost including contingencies.

5.05 The economical nature of the development program is reflected in theunit development expenditure. During the period 1981-90, the annual develop-ment cost per student would amount to about US$8.2 which compares favorablywith unit costs elsewhere in the region and reflects an economical utilizationrate (90%) for classrooms.

Recurrent Cost Implications

5.06 The development expenditures are not expected to generate increasesin recurrent financing for elementary education. Through the improvements tobe effected in efficiency, particularly in teacher utilization, the annualrecurrent cost per student in real terms would remain constant. The overalleffect of efficiency gains would be to reduce the relative share of operatingcosts for elementary education in total public recurrent expenditure(projected on the basis of nominal GNP growth) from about 9.5% in 1980 to 7.5%by 1985 and thereafter (Table 5.4).

- 53 -

Table 5.4: ESTIMATED RECURRENT COSrS FOR ELEMENTARY EDUCATION(US$ milLion, 1980 constant prices)

1982 1983 1984 1985

Total requirements 470 500 540 570

as % of --<rernaent-soperating expenditures 9.5 9.0 8.0 7.5

Financing and the Bank Contribution

5.07 UJnder the sector program, the Government would undertake 78% of theinvestnent planned 'or the period 1982-85. The proposed Bank loan of US$100million would cover 22% of total investment (Table 5.5), and represent 77% ofthe estimated foreign exchange component.

Table 5.5: FINANCING PLAN (1982-85)

EstimatedGovernment IBRD Total IBRD share

Category --- -- US$ million (%)

Civil works 330 - 330 -Equipment, materials

and paper - 35 35 100Furniture - 15 15 100Instructional materials(a) Printing - 10 10 100(b) Development & distribution 5 5 10 50Staff development 7 13 20 65Teclhaical assistance,

evaluation and studies - 9 9 100Special account /a - 3 3 100Unallocated 6 10 16 62

Total 348 100 448 22

/a To accelerate implementation and disbursements, a Special Accountwould be established to Finance the Bank's share of costs for selecteditems under the development program as discussed in para. 5.14 below.

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5.08 The development expenditures are feasible and within the financialcapability of the Government. The average yearly expenditure in the ten-yearperiod 1981-90, at about US$77 million (1981 constant prices), is equivalentto about 15% of the annual recurrent budget for elementary education andwould exceed anticipated savings in teachers salaries by only 28% at the endof the program period (para. 3.08). In addition, annual allocations for thelargest item, civil works, are in line with recent allocations for classroomconstruction. These allocations are expected to increase by about 5% p.a. inreal terms through 1985 and to remain constant thereafter. The proposed Bankloan would serve to reduce foreign exchange constraints anticipated by theGovernment during the program period.

Procurement

5.09 Under the development program contracts for civil works would beawarded on the basis of the Government-s regular local competitive biddingprocedures which are acceptable to the Bank. Contracts for furniture wouldbe numerous, scattered and relatively small. They would be awarded either onthe basis of local competitive bidding procedures or through negotiationswith nearby trade schools able to manufacture furniture of satisfactoryquality at reasonable prices. Contracts for the printing and distributionof instructional materials would also be awarded on the basis of local com-petitive bidding procedures. Prior review by the Bank on bidding documents,bid evaluation and contract awards for civil works, furniture and theprinting and distribution of instructional materials would not be required.

5.10 Contracts for equipment and paper would be grouped to the extentpossible to form attractive bid packages and awarded on the basis ofinternational competitive bidding in accordance with the Bank Groupguidelines for procurement. Contracts on bid packages for equipment andpaper which cannot reasonably be grouped to exceed US$100,000 equivalent inestimated value, (estimated at 25% of total value) would be awarded on thebasis of local competitive bidding procedures. Miscellaneous items incontracts not exceeding US$25,000 equivalent each and subject to an aggregatetotal of US$1,000,000 equivalent could be purchased on the basis of a minimumof three price quotations. Reference materials would be procured directlyfrom suppliers after negotiation for discount. Locally manufacturedequipment and paper at ex-factory prices offered in competition withinternational bidders would be accorded a 15% margin of preference or theexisting rate of import duties, whichever is the lower, over the c.i.f.price of competing foreign suppliers. Standard bidding documents have beenreviewed and are satisfactory. Bank review of bid evaluation before contractawards would be required for the procurement of equipment exceedingUS$100,000 per contract. Such review is anticipated for an estimated 60contracts expected to cover 70% of the total value and 20% of the number ofcontracts awarded. For the procurement of paper, Bank review of bidevaluation before contract award would be limited to about 25 contractsexceeding US$300,000 each. Such review is expected to cover over 40% of thetotal value and 15% of the number of paper contracts.

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5.11 Disbursements. Disbursements under the proposed sector loan wouldbe made as follows:

(a) 100% of the c.i.f. cost of imported equipment, materials and paper;

(b) 100% of the ex-factory cost of locally manufactured equipment,materials, furniture and paper;

(c) 65% of the invoiced cost of locally procured equipment, materials,furniture, and paper;

(d) 100% of expenditures on experts and fellowships (includingcontracts for research and studies); and

(e) 100% of expenditures on printing of instructional materials;

(f) 65% of expenditures on local training workshops; and

(g) 50% of expenditures on development and distribution of instruc-tional materials.

5.12 Table 5.6 shows estimated loan disbursements by semester. Theestimates are based on a review of historical experience with other educationprojects in the Philippines and comparison with all education projects in theregion. It is expected that disbursements would be completed by December 31,1986.

Table 5.6: DISBURSEMENTS SCHEDULE BY SEMESTER(USs million)

Fiscal Accumulatedyear Disbursements disbursements

19822nd 1.5 1.5

19831st 3.5 5.02nd 6.0 11.0

19841st 7.0 18.02nd 7.0 25.0

19851st 8.0 33.02nd 12.0 45.0

19861st 20.0 65.02nd 25.0 90.019871st 10.0 100.0

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Accounts, Documentation and Auditing

5.13 The development program for elemenitary education includes numerous,small items to be procured locally and for which approximately 40% of theloan has been allocated. These include furniture (locally manufactured),miscellaneous items (to be procured off-the-shelf), development and distri-bution of instructional materials, local training workshops and local fellow-ships. Submission of the numerous and small contracts, invoices, receiptsand other supporting documents for these items would be unduly costly andburuensome for both the Government and the Bank. Statement of expenditure(SOE) procedures would therefore be used for these items. Supporting docu-ments would, however, be retained and made available for review by visitingBank missions. Disbursements against various other small local expenditures,each less than US$1,000 and aggregating less than US$500,000, would also bemade against SOEs. Disbursements against SOEs would be made on the basis of aconsolidated summary of quarterly expenditures. To the extent possible, SOEswould be aggregated to amounts not less than US$50,000 per withdrawal.Disbursements against remaining program expenditures would be made againstfull documentation.

5.14 Execution of many ongoing projects in the Philippines has beendelayed by late availability of funds (para. 1.06). Due to local currencyconstraints, budget provisions to cover the Bank's share of local expenditureshave often been inadequate to meet project implementation schedules. Tofacilitate implementation of the elementary education program, the Bank wouldmade advance payments into a Special Account to cover the estimated Bank shareof certain local expenditures. The Special Account would be in PhilippinePesos in the Central Bank of the Philippines and controlled by the Bureau ofTreasury. The Special Account would be used to finance items for whichdisbursements would be made on the basis of certified statements of expen-diture as well as small local currency payments for printing and consultantservices. Deposits would be based on the estimated quarterly requirements forexpenditure on these items, but at no time would the amount exceed $3.0 mil-lion equivalent. The Bureau of Treasury would be responsible for ensuring theproper use of funds deposited in the Special Account. Replenishment of theaccount by the Bank would be subject to review and approval of withdrawalapplications justifying the amounts withdrawn from the Special Account.

5.15 Regular procedures employed by the Ministry of the Budget and theCommision on Audit for accounting and auditing would provide adequate controlover financial transactions under the sector program. Government auditors arelocated throughout the regions and the national government agencies to super-vise transactions. Separate books of accounts would be used under the sectorprogram to record expenditures from loan proceeds and government funds inaccordance with sound accounting procedures. Such accounts, together withdisbursement documents, would be audited annually by the Commission on Auditin accordance with standard government practices. The annual audit reports onproject accounts prepared by the Commission on Audit and related documentation

- 57 -

would be furnished to the Bank upon request. During negotiations, the Govern-ment agreed that program accounts would be maintained in accordance with soundaccounting procedures; and auditing procedures acceptable to the Bank(including separate opinions with regard to use of the Special Account anddisbursements made on the basis of statements of expenditures) would beapplied annually during program implementation.

6. BENEFITS AND RISKS

Benefits

6.01 The priority given to the development program for elementaryeducation derives from the Government's strategy to provide basic education ofadequate quality to the school-aged population. The provision of soundliteracy and numeracy skills is included among requirements for raisingproductivity and incomes, particularly among low income and rural segments ofthe population. At present, the majority of Filipino children has access toelementary schooling. However, a third of the children enrolled nevercompletes the six-year cycle and both coverage and quality vary among andwithin the country's 13 regions. Moreover, scores on standard achievementtests reveal poor average achievement, with lowest performance in the basicskills, e.g., reading, reading comprehension and numeracy. The developmentprogram is designed to correct these shortcomings through the introduction ofrevised policies and management responsibilities and through improvements ininstructional programs and the distribution of facilities and teachers.

6.02 The revised policies for financing and teacher utilization wouldreduce disparities and improve quality and efficiency. The largest share offunds would be allocated to regions with the poorest performance; and theimproved utilization of teachers would support an increase in the share ofnonsalary items in recurrent expenditures. The Government has targeted sig-nificant increases in the enrollment rate of the school-aged population(from 74% to 90% between 1981 and 1990) and in cohort survival (from about 65%at present to 78% by 1985 and 86% by 1990). Substantial progress towardsthese targets and improvement in student achievement would be achieved throughthe new policies for student intake and progression together with revisedinstructional programs and techniques for teaching and evaluation. About 11million textbooks would be manufactured and distributed annually to reach atargeted student-textbook ratio of 2:1 by 1985. Supervisors, principal-s andteachers would receive upgrading to support the introduction of the revisedcurriculum, methods and materials between 1981 and lQ90. Mainly as a resultof improved survival rates and population growth, enrollments would increaseby about 2.2 million between 1980 and 1990 and would exceed 10 million by1990. Some 11,000 new classrooms (net additions to stock plus replacement)would be provided annually to meet this increase. Sector management would bestrengthened under the development program through the introduction of organi-zational changes, provision of training for planners and administrators, andsupport for systematic evaluation of sector performance.

- 58 -

6.03 The overall impact of sector development activities scheduled for1981-90 would be as follows: some 6% more of the relevant age group (600,000children in 1990) would be enrolled in elementary schools at the end of theten-year period; about 20% more of each entering cohort would complete the sixyear cycle (amounting to 300,000 graduates in 1990); and levels of competencein basic subject areas would be raised and evident in improved achievementscores and, towards the late 1990s, in declining rates of adult illiteracy.As a result of efficiency gains, particularly in teacher utilization, it isexpected that these results would be achieved without increases in the realrecurrent cost per student. In addition, institutional changes and relatedtraining inputs would improve the long-term effectiveness of sectormanagement.

Risks

6.04 The proposed sector operation represents an innovative approach toeducational development projects in the Philippines (for both the Borrower andthe Bank) and is complex. The program focuses on the introduction of revisedpolicies and management practices. The precise outcomes of these changes,which may require further modification on the basis of experience, cannot beaccurately predicted. In addition the program comprises numerous subprojects.A risk exists that delays will arise in the course of implementation. Severalmeasures have been undertaken to reduce this risk. First, the main agenciesinvolved participated extensively in the identification of the developmentprogram and took responsibility for preparation of the program, including therevised policies, institutional changes and guidelines and criteria forsubproject approval. Second, the proposed management framework andprocedures, guidelines and criteria for subproject approval have been designedto allow for adaptation and modification by mutual agreement on the basis ofearly implementation experience. Third, procurement and financing proceduresconform with regular Government procedures and are designed to facilitateprogram execution. Finally, the program management organization drawstogether staff from the participating agencies and includes officials withextensive experience in the implementation of development projects.Additional support would be arranged as required through use of a pool oflocal consultants. The Bank has been involved in the education sector in thePhilippines since 1964 and provided loan or credit assistance for six previousprojects. All of these have been (or are being) satisfactorily implemented,and the development impact of the first several has equalled or exceededappraisal expectations. On balance, the Borrower's experience, familiaritywith the content of the proposed program and commitment to its objectiveslimit the risk of implementation difficulties to an acceptable level. Theloan would help to finance investments planned during the first half of thedevelopment program. This scheduling would permit relatively early Bankreview of overall progress and possible follow-up.

- 59 -

7. AGREEMENTS REACHED AND RECOMMENDATIONS

7.01 During negotiations understandings were reached between the Bankand the Government on the following points:

(a) appointing key staff for new positions in the BEE, OPS, regionalplanning units and the Instructional Materials Council and itssecretariat during 1982 (paras. 3.11, 3.15, 3.16, and 3.19);

(b) preparing plans for purchasing instructional materials from privatepublishers by October 31, 1981 (para. 3.19);

(c) signing a new or revised contract for completing central facilitiesfor the existing Textbook Agency by October 31, 1981 (para. 3.21);

(d) preparing financing requirements and a medium-term staffing planfor the Instructional Materials Corporation and appointing keystaff by October 31, 1981 (paras. 3.21 and 3.22); and

(e) finalizing plans for the baseline survey for the evaluation sub-project by October 31, 1981 (para. 3.47).

7.02 During negotiations agreement was reached with the Government onthe following points:

(a) consulting with the Bank in the event major changes are requiredin the revised policies for elementary education or in othercomponents of the development program (para. 3.05);

(b) establishing, by October 31, 1981, the Instructional MaterialsCorporation and the Instructional Materials Council with authority,responsibility, staff and resources satisfactory to the Bank(para. 3.23);

(c) using the expertise and staff of EDPITAF (or any other agency of theMEC) to assist in carrying out the development program under termsof reference satisfactory to the Bank (para. 4.09);

(d) appointing and maintaining suitably qualified staff in adequatenumbers in the MEC for implementing the development program(para. 4.09);

(e) furnishing to the Bank for review and comment, no later than threemonths before the scheduled start of implementation, subprojectproposals requested by the Bank (para. 4.14);

- 60 -

(f) selecting and implementing subprojects in accordance with guide-lines, criteria and procedures satisfactory to the Bank(para. 4.16); and

(g) maintaining program accounts in accordance with sound accountingprocedures and applying auditing procedures acceptable to theBank (including separate opinions with regard to use of theSpecial Account and disbursements made on the basis of statementsof expenditure) annually during program implementation (para. 5.15).

7.03 Subject to the above conditions, the proposed program constitutesa suitable basis for a Bank loan to the Government of the Philippines ofUS$100 million equivalent, with a term of 20 years, including a grace periodof 5 years.

- 61 -

CI8MF<A0AIVE ECIUCAT ION INDICATORS ANNEX 1

JUNE 1. 19B1

* OAPTA: OGCIT. IEDIUCATION 'LTIFR- IPRI. WODMPLE- :STU- :UNIT COSTIEROGRESS-: SEC. :STU- 'HIGHER'

* AT : 1F7F',ON1I RECUIRRENT :Ally IENROILITLION IOENTSWPRIM. ED,IION RATE IENROLLIOENTSIENROLLI* IMARSET. SN 000 lEA. AUCISXP A-LLOCATES:" RATE IRATIB IRATE FORIPER A85 0 GNFP/FR0M PRI.:RATIO '.PER 'RATIO I

707,t' :PRI06:CE S UOTIOEIA,UBEXFI 10c: 1(% OF NET :P80.SCH,I1EACHI CAPITA :TO SEC.I NET :TEACH- GROSS:YR:9M15. II 1 (059<: T1 ECU. ION E[OU.'IPRi, SEI,. HI.IADUJLTS)( (5) ICYCLE()ZE) :ER () 1(5 7 1 I)

ADYANCL I'

AUSI RIA 74 7.5A-, 7.5720H 5.~3L ... , 24Y 51Y 1T5Y 99 90 930 26 10.70 990 51C 190 16.85YCANADA 70 23.5 8.670 9,1 24,3 25 39 23 99 100 100 21 12.6 100 92 18 22,000589507 1 REP,7E 6)1.3 10,300 4, R) 4. 600....... 99 ... 100 400 94 228 12,00?

iA(S)) ~~~~75 11 I4.9H 7,700(1 4. 3DW 20, 7D 401(7 37U7Y 150 IY99 990, 998 25 ., 99 957 08 469

NEI1H751 ANCSE 78 13.9 9,200( 8,3A 94.2 20 3.5 24 99 96 93 19 17.8 99, 82 13 12.00NEW ZEALAND 73A 3.2H 5, 530H1 5,2W- ... 39 24 29 99 99 99 26 19,4 99 67 19 24,00NoRWAY 76 4,OH 9,560 7,2 14.4 54 24 15 99 99 99 16 151.8 99R 62 10 11.00SWEDEN 78 8.3 10.140 8,87FW 68.7 37 11 10 99 99 100 16F 22.7 100 79 13F 30.O08U.R. 75 01,89 5.H7206; O - IL) .. 216 4) 18 99 99 ... 74 ,, . .. 68 17 23,0011,8.A. 711 218.5 F 9,770 ~ 14,7 .. ,. 5/88 18 9 9 98 99 278 .r 99 97 19)3 41.00

99(E E1 iSE f 9 41! 4,1(506l 2,6W) I 10)3.0 37 26 21 86A 99 820 31 6,27 700 80 27 15.0018(<0NI' 7/4 32,'1) 3.610(1 .1-11 ... 437 4)7Y 147 9)3 10817 998 35 ... 95A 6517 19 11.47Y001 LI UA, 77 9,9(il1 91.40H 1)-O W 100).0 4) 2) 1 5 7)t5' 871 6081 19 7.87? 75* 35, 12 5,00ROMANIA 72 ' i 210 1,65<6 4,)) ... 36 (9 13 98 1009 I., 23 .. ,, 9 49 22 10,00F0E8 I8 74 372) I 3 3.%~,i 2.4A3 ... 497 2271 157 908 11107 ... 358 .. , .. , 7817 30 17.68Y

A) 10610 I 79 19.5 ) I4!,oif 7,i<. 10).)) 341K 26K1 25(1 308 94X0 45(17 37K1 11.9 I2RT 331,? 371. 5,OOKXBISONN 74 3.310 720! 72011,N 94.00 470i 230 100, 110 4410 708: 537 483.29 438 1199 398 0,7478018SW)380 78 0,8 66)1 5,411 100.00 413 39 13 35 80 78 31 9.87 50 20 22 1.50BURUNDI5 715 4,9 1606 2,711w 100.0)'l 46R 338 258R 25 231 45 32 31 .50 22 39 16 8.5CAMEROON 76 8..iH 49)3H 3.711 100.0 33 43 20O . . 60 45 52 11.8 20 901 24 0.9009C,.9A . 74 1,96'? 2/OH 3.0DEW 1)30.0 568l 1901i... 1.. 917 25 697 21.58 18 897 2787 0.21YI(HAD 77, 4,3H 15,)HK 3,011 91.6A 78 22 .. 15f 29187 30 6589Y ... 8 2980 38 0.01890090000 80) 0.4 200O 5_3 .. 4)3 28 14 207 999 66 45 16.0 58 21 30 1.400880<9`) 74 18 566)) 6,011W . 40 32 25 50T 1331 63 63 13.38 48 331 22 3.40EGYO'T 791 31.0 17 30 2.7)3 90,1<1F .. ...... 1 L 38 90 30' 10.3 82 49 17? 15,00ENIHOPFIA 79 31.0 130 2.2W1 90.57' . . . 15 38 9.. 59 20.07 . . 9 41 .GAB0N 74 0,60i 3, 3<0H 5.0511w 1)0,.0 250) 90r. 110) ... 1007 250 460 4.77 188 31Y 210 0.297GAMBIA 76 0,6(1 1836 3.314 4o, 21, 6 10 27 90 33 44.7 92 13 25 ..GHANA 74 11.1)8 3)30H .,.. 43Y 227 2078 ... 6010 628, 307 ... 148 35XY 160? 1,09?GUINEA 76 5.1H 260Ki 4,38) ,, 30 30 30 ... 301 64 45 31.1? 86 139 26 4,00IVORY COAST 76 7,88H 95681- 6811 100.0 33 46 13 98 50 86 43 19.7 47 17XY 26 1.64Y

KENYA 79 15,3 380 5.911 80.0 711 15 14 45 92 74 40 15.83 41 19 28 1.0LESOTHO 79) 1,3 340 4,L 61 41 29 20 52 68 32 49 8,0 65 15 23 0.90LIBERZIA 77 1.7H 4606 3,1W ... 23 13 26 30 511 ... 54 27,9w 76 241 16 .8M1<80A8C8R 77 8.3H 250H 4,01 1:00,0 53 28 19 58 90 33 44 . .. 38 14 23 1.70MALAWI 79? 5,9 201 2.2811 99,08 40 23x 23 250 59 178 6218 10.00 50E 68 21 ..MALI 75 6,31) 130H 4.2MW 100,08 457 37E 187 1bE 22X7 ... 48E7 ... 50E 61 21

MAURITANIA 71 1,5KH 270H) 4,011w ... .. ,.,.... 109 17XY - 22A . .. ... 319 24AMAURITIUS 76 0,9H 92084 4,78 100.0 50 26 6 808 94 99, 24 191.59 9 45 32 1.50MOROCCO 79 38.98 680K 6,311 ... 36 44 20 28 68X 30 39 39.7 40 209 20 5.00

NIGER 77 5.0H 240H 2.B)3 ... 52 43 5 8 17 50 39 38,7 35 2 24 ..NIGERIA 74 80,6H 6(008 4.007 .. . 239 169 420 ,... 49XY ... 3407 .. . 1017 2087 0.48YRWAN008 73 4.5K 190K 3,28W ,...,...,..... 23 52 ... 51 .. .. 2 13 8.23BYSENEGAL 77 5,4H 360K 0,0 .. . 46 34 20 10 32 ... , 49 21.68 20 10 23 1.5SIERRA 17007E 73 3.391 2306 3.411 100,0 31 36 30 157 34X 45 32 13.70 68 13X 21 0.53AYSOMALIA 78 3.7K 1)35H 2.011 100,0 55 10 21 50 44 ... 32 20.4 40 5 15 1.00SUDIAN 76 17,4K 340H' 4,511 64,0"lB 40 36 16 20 34 74 33 46.78 33 14 24 1,24SWAZILAND 78 0-58 580 6,30W 300.0 37 335 23 65 921 49 37 7.7 66 329 20 2.0DMXTANZANIA 78 17.1 230 6.8NW 100.0 43 07 10 667 96 87 58 11.17 9 4 2011 0.38TO80 77 2.481 320H 5,5iW 100.0 30 28 21 18 74 40 58 13.383 52 - 44 2.00TUNISIA 79 6.4 1.130 7,011 100.0 42 39 18 62 100 80 39 11.47 30 30 30 6:00OUGANDA 75 12.48 280H" 3.4CY ... 3407 4057 22DY 258 5397 ... 3407Y ... 14A 6187 218 0.56YUPPER VOLTA 77 5.68 160K 3.4W1 . .. 30 16 32 10 13 23 51 52.5w 19 2 25 1.8ZAIRE 76 26.88 240K? 6.0W ,.. 49 26 25, 1D 861 44 42X 20.08 41 131 27 1.001ZAMBIA 90 5.7 140 -5.6 000.0 40 23 22 44 981 80 48 12.9 19 17 22 1.50

CENTRAL AMERICA AND 1H5 080088789N

8A888A8 79 0.2 2.7830 6,5N 10)3.0 36 36 11 93 99 97 24 . .. 97 75 19 -BARBADOS 76 0.2' 2.080i 8.31W 100,0 43 31 16 99 106X 99 21 19.9F 99 941 17 ..COSTA RICA 78 2.1 1.610 6.6 ... 370 270 30 905i 93 77 32 11,8?, 77 39* 19 13.0080CUB8 74 9,7 1.000 8.0 ...... I..... 96 98 98 22 ... 98 65 15 15,00DOMINICAN 879•f72 5.1H 900KH 3,0 ... 42' 24 22 51 80 17 54 4.59 63 14 24 7.800EL BAILVADOR 77 4.38 6408 4.0 ... 64 8 27 62 881 32 39 . 41 23 21 7,00G3UATENALA 73 6.6H 930H 1,9 ... 55, 23 14 47 64 26 35 ... 69 8 25 4.097HAITI 76 4.881- 2408 1.0 100.0 61 21 11 231 25F 13 56)3 8.6 62 4 ... 0.7800011888 78 3.4 480 4.21 ... 6210 157 199 607 78 30 35 12.87F 68 11 17 4.00JAMAICA 76 2.1H 1.190H 9.9 .. . 37 33 22 90 91 52 39 6,4A 94 64 25 7.58MEXICO 80 67.4 1.8081 4,9 81,0 46 39 15 92 98 49 40 9.5 83 44 17 10.00NICARAGUA 78 2.5 660 3.0W1 100,0 600 130i 13Ci 90L. 61 24 44 7.31 930 4L 37 7,800DP'ANAMA 783 1.81 1,260 5.4 ... 4203 138 13 788 97 821' 328 11.6 858 49 348 20.00TRINIDIAD I T. 77 1.08 3.501H 4.5 100,0( 48 32 20 95 98 90 30 10.51 49? 62 24 ..

SOUTH AMERICA

ARGENTINA 78 26.7 1,9110 4.4 ... 4303 317 180 93 89 52 17 ... 87 31 8 23.00BOLIVIA 76 5.38 1108 51.0w ... ,... ... ... 42L BO& 290 24 .. .. 4 3808-RAZIL. 75 119.5H 1,510H 2.8)3W ... 420) 2001 2283 848 887 ... 2787 , Y . 26F 151B7 6.008CHILE 75 10,7K 1.4701K 3.8R0 81,0'A 239 109 50Y ... 11997 ... 350 B.818 ., 48XY ... 16.55YCOLOMBIA 74 25.6H 900H 3i.307 . .. 4407 2207 117 780' 10517 20 337 11.09 90 3617 148 6.67YECUADOR8 71 7,8K 950H 3.7C0....... ...... 760 10307 .. . 388 ... ... 3819 148 ..GUYANA 74 0.8KH 5j609 1.804 100,0 47 35 14 838 921 39 33 19,80 19 62X 24 1.00PARAGUAY 79 7,0 97084 1.4 100.0 42 17 20 84 82? 32 28 3.18 75 22 12 7.00PERU 75 16,8K- 6808 4,709 ... 407 229 157 72 11117 38 3907 11.08 70 4897 230? 14.41YURUGUAY 75 2.98 1.7908 2.15 100.0 46 34 20 94 931 ... 24 12.3E 83 ... 10 ..V3ENEZUIELA 73 14,08 28350K 4,611 72.078 300 280I 3513 778 81 ... 33 ... ... 33 .. 12,63CY

- 62-

COMPARATIVE.EDUCATION INDICATORS (CONTD) ANNEX 1 P'AGE 2

JUNE 1, 19B1

GNP08F I CENTRALI?. OF PUBLIC 1 1 P(RI. '.RECURRENT' . SEC* CAPITBI 'GOVT. :EDiUCATION :LITER- P RI. (COMPLE- :STU- :UNIT COST(PROGRESS--: SEC. NSIL- :HIGHER:* : AT ( :EXP.QN RECURRENT :ACY :EN ROL L :T ION :DENTS(PRIM. ED. (ION RATE: : E N ROLL:DEtE NT S :EN RI)L L:* :MARKET: 1 0NF' :ED. ASZIEXP ALL-OCATEDI. RATE (RATIO :RATE FOR:PER -AS Z SNF'/:FRO)M PRI. (RATIO :PER (RATIO

POP. :0-RI C ES: DEVOTED(PUB.EXP: TO: ((1 OrF.*NET (FPRI,SCH, TEACH: CAP'ITA :TO SEC. NET :TEACH- GROSS:YR(MELLLS.: (US$8: TO EDIU.ON EDU.(PRI. SEC. HI.(ADjIJLTS)( (V.) (CYCLE(%8.ER ::() () (ER CZ()

() (2) ((3) :(4) : )s ( (6) ((7) ((8) : 9 (10) :(11) :(12) :(13) :014)

ASIA6 AND OCEANIA

AFGHANISTAN 77 14.68 160H4 1.8 100.0 47 19 15 12 29X 69 37 13.8 62 58 17 1.00BiANG-LADESHI 73 84.78 90H 1.2W .. 44Y 22Y 21Y 23Di 56X ... 48D 10.0 .. 23X1' 20CHINA 79 971,0 256 3.3 69 34 36 30 66 93 64 27 0.0 83 51Y 19 2.00(INDiIA 75 643.9H4 1008 2.6Y ... .298 65XY .. . 43A .. ., 29XY 20AY 2.34EYINDONESIA 78 136.08 340 2.4W4 . 6 260 3'206 150' 62 92 40 32 .. 70 19 17 2.00IRAN 73 33.818 ... 3.3W 5. SB 108 128 50 77 74A 32 ... BOA 24 32 4.32CYIRAQ 75 12.2H 1,B50H 6.7CW ,... ...... 261 9389 ... 22 .. . . .. 38XY 2610 8.47YJORDAN 77 3.DH 1,100H 6.4K 99.0 25R 5bR 3R 70 97K 81 32 6.1? 91 68 22 10.60KOREA 718 36.6 1,310 2.8W 89.OC 35 29 36 93 1028 94 49 8.60 91 60) 45 18.00LEBANON 72 3,0HK... 3.~5W ... 39 40 10 60 86 65 19 23.28 63 26UJ 25 23.00MALAYSIA 76 13,3H 1.150H 6,7W 70.OD 42 34 15 608 95 93 32 6.610 78 40 28 3.00NEPAL 76 11.6H4 1208 1.1W4 ... 29 20 41 19 59 28 31 ,... 64 14 24 0.03OMAN 72 .0KH 2,790H4 1.7NW ... 96 - - 20 24X 99 27F 25.0'i. ... 0.4X 9 ..PAKISTAN 79 70,0 270 2.0 .. 39 26 27 245 56X 5E 48 6.5 .. . 20K 17 6.OOEFPAPUMI N.D. 75 2.98 62 01H 5.4L-W 100.0 38 16 24 32 5 7? 73P 31 28. 0? 90 12X? 24 0.90?~PHILIPPI NES 79 '9(,i & OQC 2.8 W 14.0 64 36**8 75 84 65 31 7.0 89 55 36 21.00SINGAPORE 74 2.38 3,260H 2.7YW 100.0 39 991? 2A 099 7A 319Y .A 9A 449 2 .8SYRIA) 78 7.9 960H4 4.4 ... 39 25 26 58 898X 80 35 7.7E 60 45K 21 12.60THAILAND 77 44.5 530 4.OVW ... 55 30 15 84F 83 30 35 10.00 70 28 25, 3.00TUIRKE Y 73 43.18 1,280H4 5.6CYW ... ... ,..... 0. 5Y ... , 349 7.2A -, 249 2709 5.133YYEMEN 73 5.614 4108 0,~15W 100.0 45P 21P 23P 10 15X 10 36 19.3 75 28 19 0.0509YYEMEN P,ID,R, 76 1,01H 450H 6. 6W ,. 57 28 8 40K 898 40I 30 183.6 94 21X 24 0.10

SUMMARY FOR DEVELOPI NO COUNTRIES).

NUJMBEIR OF- COIUNTREES: 102 54 89 90 90 94 100 81 101l 7 1 88 100 99 8 7

RANGE) (0.5- (14.3-- (20 (0- (3-- (5- (1.3- (13- (16- (3.1 (8- (.4- (0-- (.01-9.9 ) 10.0) 96 (73) 50) 99) 1338) 99 1 69 152.5 ) 99) 985 48) 41,0)

GUARTTLES:JJPPER (5.6 90. 5 49 35 22 86 98 91 42 9 91 48 25 1.0(MEDIAN: 4,2 100.0 42 26 18 60 0 2 65 34 1 3 68 24 22 3. 4LODWER (3.0 100.0( 34 21 13 25 56 33 29 20 41 10 10 .0(

SYMBOLS:,... DIATUM UNAVAILABLE A=1971 DR BEFORE M=CURRZENT PRICES SOURCES:-MAGNI TUDiE NIL OR NEGLIGIBLE 8=1972 N;=GDP----

Q UESTIONABL.E - C =1 973 P=INCLUDING FOREIGN AID COLUMNS:! AND 2 WORLD BANK ATL-ASBINCLUDES PART--TIME STUDtENTS 01=1974 O=CENTRAL GOUVT. ONLY OR IBRO MiISSIONS

8* DCMBINED, WITH PRIMARY E=l1975 R=MINISTRY OF EDUCATION (MOE) ONLY 3 To0 1 4 IBREO MISSIONS*8COMBiINEDi WITH HIGNE-R F=1976 S=MOE AND STATE GOUVT. ONL-Y AND/OR UNESCO

0=1977 T=EXCLUDINI CE-NTRAL GOVT. STATISTICAL8=1978 U=WUBLIC ONLY YEARBOOK8=1979 V1 NCLUDING PRIVATE EXPENEiT TUREL=1980 W=PUBLIC EXFPENDITURE ONLY

X~INCLUDIN NOVIERASED STUDIENTSY=UNESCO SOURCES

COMPARATIVE EDUCATION DATA ARE USEFUL. IN THE EVALUATION OF VARIOUS EIDUCATION SYSTEMS AND ANALYSIS OP RELATIVE STAGES IF EDUCATIOINALDEVELOPMENT BETWEEN VARIOUS COUJNTRIES. HDWEVER,ON THE BASIS OF THE FKRESENT IATA.CROSS-NATIDNAL COMP'ARISON SHOULD BE APPROACHED WITHGREAT CAUTION, DATA PRESENTED IN THE ABOVE TM4BLE HAVE BEEN COLLECTEED LARGELY BY THE BANK MISSIONS PROIM GOVERNMENT SDURKCES; THEREMAINDER ARE STAFF ESTIMATES OR DiATA FROIM UNESCO, EFPORTS NAVE BEEN MADE TO STANDARDIZE DEFINITIONS AND WITHIN LIMITS, TO CHECK THEACCURACY OF THE DATA. NEVERTHELESS,SUCH DATA ARE STlILL IMPERFECT IN SEVERAL RESPECTS AND THE BANK IS WORZKING To IMPROVE THEMPROGRESSIVEL-Y OH THE OCCASION OF ITS OP'ERATIONAL WORK. IN THE USE OF THESE DIATA. THE FOLLOWING QUALIFICATION!, SHOULD BE BORNE IN

MND.(1)IEDUCATION' AS DEFINED IN THE TABLE INCLUDIES ALL EDUCrATION AND TRAINING, FORMAL ANDt NON-FORMAL;'(28?PRIMARY EDUCATION REFERS TO EDUCATION AT THE FIRST LEVEL ANDi 'SECONDARY' EDUCATION REFERS TO ALL EDiUCATION AT THE SECONDARY

LEVEL REGARDLESS OP TYPE (E.G. GENERAL., TECHNICAL, AGRICULTURAL) 1(3)'LITERACY RATES'(COL.6) ARE OFTEN OBTAINED, F'ROM COUINTRY CENSUSES. IN MANY COIUNTRIES THEY ARE ONLY APPROXIMATIONS ANDI IT Is

DiOUBTFUJL THIAT ANY UNIFORM DEFINITION OF 'LITERATE' HAS BEEN FOLLOWED CONSISTENTLYF(4) 'PUBJELIC EXPENDITURE IN EDUICATION' (COLS 4 ANDt 5) REFERZS TO ALL CAPITAL AND RECUJRRENT EXPENDITIURES DEVOTED TOl EDUCATION BY

PUBLIC AND QUASI-PUBLIC AGENCIES;(5)'ENROLLMENY RATIDS'(COLS 7, 12 ANDI 14) REFER TO] SCHOOL. SEAR ANDI MEAN THE PERCENTAGE IF ELIGIBLE CHILIiREN ENROLLED FULL-TIME

IN THE APPFROPRIATE SCHOOL, PUIBLIC AND PRIVATE BY LE-VEL. THEY ARE OFTEN SUBJECT TO A WIDE MARGIN OF ERROR IN THE DEVELOPINGCOUNTRIES OWING TO VARIATION IN THE ACCURACY OF BASIC DATA( I.E. AGE-SPECIFIC POPULATION AND ENROLLMENTS) * ENROLLMENT FIGURESFREQUENTLY ARE HIG3HER THAN THE NUMBER OP STUDENTS ACTUAL-LY IN SCHOOL. OVERAGED STUDEENTS WHOSE INCLUSION IS INDICATED BYFOOTNOTIES ALSO CAN INFLATE THE RATIOS.

- 63 -ANNEX 2

PHILIPPINES

SECTOR PROGRAM FOR ELEMENTARY EDUCATION

Selected Materials in the Program File

A. Reports and Studies Related to the Program

A.1 MEC, Report on the Survey of Outomnces of Elementary Education(SOUTELE), May 1976.

A.2 IBRD, Philippines - Education Sector Memorandum, Report No. 1704-PH

August 6, 1977.

A.3 The SGV Group, Study of an Institutional Structure for the TextbookAgency, January 1978.

A.4 EDPITAF, Program for Decentralized Educational Development -Elementary Education (Revised Request to the IBRD) August 30, 1980.

A.5 MEC (Textbook Agency), Draft Proposal for a Textbook Project(Phase 1), August 1980.

A.6 MEC (Textbook Agency), Preparation Status Report for a TextbookProject (Phase II), January 1981.

A.7 MEC, Elementary Education Sector Program, Requirements for Negotia-tions (status report in four volumes), April 13, 1981.

B. Working Papers

B.1 Curriculum and Teacher Deployment.

B.2 The Private Sector Publishing Industry.

B.3 Monitoring, Evaluation and Research.

B.4 Program Costs and Financing.

B.5 Draft Charter for the Instructional Materials Corporation.

B.6 Instructional Material Corporation, Planned Publishing Program(1981-90).

B.7 Organization Charts - Textbook Agency and Instructional MaterialsCorporation.

ANNEX 3

- 64 - Page 1

PHILIPPINES

SECTOR PROGRAM FOR ELEMENTARY EDUCATION

Terms of Reference for Program Technical Staff /1

A. The Subproject Development, Appraisal and Implementation Division would:

(a) appraise and, as necessary, arrange and provide assistance for thepreparation and implementation of subprojects in accordance withguidelines, criteria and procedures established for thedevelopmLent program;

(b) cause effective implementation and supervision of all subprojects(for both hardware and software components) in cooperation withthe Technical Services and Monitoring Division;

(c) maintain a systematic information system on the status of implemen-tation, financing and progress toward achievement of goals andtargets under each subproject for use in program monitoring;

(d) provide assistance to the regions or national agencies as necessaryto ensure that they maintain appropriate records and submit, intiimely fashion, the information required for subproject monitoringand;

(e) analyze overall progress and problems with implementation of thesector program and recommend changes in subproject approach,criteria or implementation procedures as needed and initiatepreparation of annual investment priorities and targets.

B. The Technical Services and Monitoring Division, which is composed of fiveunits for Civil Works, Procurement, Distribution, Technical Assistanceand Monitoring would:

Civil Works

(a) assist in providing technical and architectural advice to theRegional Management Groups in close liaison with the BEE, OPS andMPW regarding the school building (including use of the systematicschool location and planning criteria);

/1 More detailed terms of reference are available in the MEC report,Elementary Education Sector Program, Requirements for Negotiations(Program File, Annex 2).

- 65 - ANNEX 3Page 2

(b) evaluate, in cooperation with the BEE and MPW, proposals for the

use of innovative designs or low-cost materials for constructionin accordance with MEC standards; and

(c) provide support to the Development, Appraisal and Implementation

Division to ensure adherence to MEC standards for school con-

struction (e.g., designs, unit costs) and for furniture and

equipment specifications.

Procurement Unia

(a) supervise the procurement and quality control of goods or services

required under the program;

(b) undertake or assist with all activities related to public bidding,

including scheduling, prequalification review, preparation and

circulation of bidding documents in accordance with appropriate

bidding requirements;

(c) undertake or assist with the technical evaluation of all public

bids, bid bonds, materials samples and additional suppliers

guarantees, and present evaluations to the Committee on Bids and

Awards;

(d) prepare, or assist in the preparation of, contract documents and

attachments, including World Bank and Presidential approvals,

confirmations of bid awards, signed contracts, performance and

guarantee bonds, issuance of letters of credit and notices toproceed; and

(e) monitor the implementation of contracts for conformity with

contract provisions, recommend change orders as necessary, and

certify receipt, in good order and condition, of all contracted

goods and services.

Distribution Unit

(a) plan (or assist in planning) and supervise all phases of operations

pertinent to the safe, efficient and economical delivery of all

goods procured under the program;

(b) prepare an annual distribution plan;

(c) establish a distribution control system to monitor the status of

shipments of all goods;

(d) prepare, or assist in preparing, the packaging specifications for

all goods to be procured under the program; and

- 66 - ANNEX 3

Page 3

(e) assist in prequalifying brokerage, trucking and forwarding firms.

Technical Assistance Unit

(a) arrange for the provision of expert services and the selection offellowship candidates in accordance with program needs andprocedures;

(b) prepare and administer contracts for expert services and themanagement of fellowship programs; and

(c) assist program clients in locating appropriate experts andfellowship candidates.

Subproject Monitoring Unit

(a) develop and implement a systematic scheme for monitoring progresswith the sector development program as a whole, its management andindividual subprojects, in cooperation with the Subproject Develop-ment, Appraisal and Implementation Division and, as appropriate,the Regions Management Groups;

(b) prepare and submit quarterly progress reports on implementationof the sector program; and

(c) provide assistance to program clients as necessary to implementthe program monitoring scheme.

C. The Financial Planning and Control Division would:

(a) develop and implement an appropriate accounting system andprocedures for the elementary sector program;

(b) design and install a cost accounting system for providinginformation on costs and financing of subprojects appropriate forreporting and monitoring purposes;

(c) develop a systematic budgeting system for the sector program andprocedures to provide detailed requirements for annual investmentsubprojects in accordance with the scheduling of annual budgetapprovals to ensure the timely availability of adequate funds;

(d) organize and subsequently direct the budgeting and accountingfor the program in accordance with the systems and proceduresdeveloped;

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ANNEX 3Page 4

(e) recommend payment for all expenses and claims in the course ofprogram implementation in a timely manner;

(f) supervise the preparation of withdrawal applications for expenseswhich are chargeable against loan proceeds; and

(g) conduct, on a regular basis, field and internal audits throughoutprogram implementation.

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ANNEX 4Page I

PHILIPPINES

SECTOR PROGRAM FOR ELEMENTARY EDUCATION

Guidelines for the Allocation of Development Funds and Criteriafor Subproject Approval

A. Guidelines for Allocating Developent Funds

1. In order to effect the revised financing policy, designed to redressdisparities in educational opportunity, a new formula would be used to guideannual development allocations among the regions (and the 1,834 schooldistricts). The formula, which allocates 80% of investment on the basis ofregional deficiencies in performance and 20% on a standard per capita basis,is shown below:

(P.)Di (t')

Ei = _ ) x 0.8 + Pi x 0.2

>Di (Pt)

Ei = the regional share of development expenditures;

Pi = the regional share of the population aged 7-12; (wherePt Pi = population in 7-12 age group in region i, and

Pt = total population in 7-12 age group); and

Di = the deficiency in regional performance

The indicator for deficiency in regional performance is weighted andcalculated as follows:

Di = I - (. 3 eni + .3suri + .4achi)

eni = the enrollment rate of children aged 7-12 in region i;suri = the cohort survival rate in region i; andachi = the average achievement score of grade 6 students in

region i.

The table below illustrates the methodology for calculating guidelines forproportional investments by region.

2. The formula for calculating guidelines for development expenditureswould be introduced during 1982. Guidelines would be revised annually inaccordance with changes in regional rankings. They would be applied mainlyin the allocation of funds for regional facilities subprojects, for thetraining of principals and teachers in the regions and for the provision ofregion-specific materials by the Instructional Materials Corporation.(Textbooks would be provided to all regions on the basis of the 2:1 ratiotargeted by the Government; training for staff above the level of principalwould be provided to 100% of the various client groups; and experimentalprograms and research studies would be approved through competitive

METHOLDOGY FOR CALCULATING GUIDELINES FOR REGIONAL INVESTMENT ALLOCATIONS

(1980 DATA)

A B C D E FVariable

Population Standard proportion Total

Share weighted share of inves share

of pop- defici- of invest- ment of invest-

ulation Deficiency ency ment (C x 0.8) ment

Region aged 7-12 indicator/a (A x C) (A x 0.2) (C ) (D + E)

XII. Central Mindanao 0.071 0.468 0.033 0.014 0.074 0.088

VIII. Eastern Visayas 0.063 0.438 0.028 0.013 0.063 0.076

V. Bicol 0.082 0.402 0.033 0.016 0.074 0.090

X. Nortlhern Mindanao 0.057 0.393 0.022 0.011 0.050 0.061

IX. Western Mindanao 0.051 0.390 0.020 0.010 0.045 0.055

VII. Central Visayas 0.076 0.389 0.030 0.015 0.067 0.082

VI. Western Visayas 0.096 0.386 0.037 0.019 0.083 0.102

XI. Southern Mindanao 0.066 0.378 0.025 0.013 0.056 0.069

II. Cagayan Valley 0.046 0.330 0.015 0.009 0.034 0.043

IV. Southern Tagalog 0.122 0.314 0.038 0.024 0.086 0.110

III. Central Luzon 0.103 0.291 0.030 0.020 0.068 0.088

I. Ilocos 0.073 0.266 0.019 0.015 0.043 0.058

XIII. National Capital 0.094 0.266 0.025 0.019 0.056 0.075

Region

TOTAL 1.000 0.362 0.355 0.200 0.800 1.000 /b

/a Deficiency indicator calculated on basis of data shown on enrollment, survival and achievement rates

on Table 2.2 in text in accordance with formula shown above, i.e., Di 1 - (.3eni + .3suri + .4achi). z

/b Figure rounded. X x

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ANNEX 4Page 3

applications.) Adjustments in allocations would be required, particularlyin the case of facilities subprojects, to ensure adherence to criteria forsubproject approval based on systematic school location and planningcriteria. The guidelines and the for-mula for allocating regionaldevelopment funds would be subject to review and revision after the firstyear of implementation and periodically thereafter.

B. Criteria for Subproject Approval

3. General Criteria. The Technical Staff would appraise subprojectrequests for school facilities, staff development, experimental and researchcomponents (under the evaluation subproject) and requests for furtherdevelopment or adjustments to the revised curriculum and the scheme formonitoring teacher supply on the basis of: relevance, technical feasiblity,efficiency and managerial feasibility. These criteria would also form thebasis for subproject preparation and approval. It is recognized that theweight assigned to each criterion would vary among subprojects.

(a) Relevance. Subprojects would be evaluated to ensure that theycontribute to achievement of objectives and targets set under thethe development program. Each subproject would be expected toaddress one or more of the following objectives: (i) reducingdisparities in opportunity, (ii) improving internal efficiencyand cost-effectiveness; (iii) improving quality; and(iv) strengthening management and planning.

(b) Technical Feasibility. Each subproject would be assessed to ensurethat its design and targets for resolving particular sectorperformance or management problems are appropriate and well-defined. To the extent possible, targets would need to bequantified.

(c) Efficiency. The efficiency criterion would be used to assesswhether a subproject could be implemented at reasonable cost.This would include consideration of unit costs which should bereasonable and in line with national standards.

(d) Management Feasibility. The ability of the proponent agency toimplement a subproject would also be reviewed. This wouldinclude assessment of staff arrangements and qualifications andcapabilities for carrying out implementation efficiently.Constraints to effective implementation of an acceptable sub-project would need to be remedied prior to approval.

It is expected that the Technical Staff would convey the results of subprojectappraisals to the requesting agencies. Through subproject monitoring,periodic reports on progress towards subproject goals and targets would beprovided. Further, it is expected that the Minister would terminate anysubproject which is not achieving its targets over a reasonable period oftime.

- 71 - ANNEX 4Page 4

4. Special Criteria. Specific criteria would be applied in preparingand approving subproject requests for facilities and staff development and forexperimental and research components under the evaluation subproject.

5. Provision of Classrooms. Regional subproject requests for addi-tional classrooms or new schools, and for the rehabilitation, replacementor completion of existing facilities, would be based on systematic schoollocation and facilities planning information for each district as follows:school maps (showing topographical barriers) would be maintained to show thedistribution of schools in relation to communities, transportation and otherfacilities; population and enrollment data, including data on growth andmigration and student participation and survival would be maintained to showtrends; and the number of student places per grade would be monitored togetherwith teacher availability. This information would be evaluated annually todetermine requirements for classrooms or new schools. An inventory of thestatus of existing classrooms would also be maintained to determine require-ments for rehabilitation, replacement or completion of existing facilities.This inventory would be updated once in four years. All classrooms (orschools) to be provided or improved through regional facilities subprojectswould conform with present Government standards for classrooms. Thesestandards allow 1.2 sq m of space per student and a design capacitv for40 students per classroom at an average unit cost of US$5,500 equivalent (1981prices). Requests for multipurpose workshops, with a standard area ofapproximately 100 sq m and a unit cost of US$9,000 equivalent (1981 prices)would also be considered.

6. The following criteria would apply in preparing, appraising andapproving regional requests for facilities:

(a) Additional classrooms or schools would be requested as necessaryto reduce the present shortage. Initially, one classroom would berequested for each 40-50 children enrolled and, once the backlogis reduced, for each 40 children enrolled. Priority would begiven to the expansion of existing schools where the size andlocation of the school site permit economical expansion and wherepopulation density is sufficient to maintain a distance of about 3km (on average) from students' homes to schools. Where thesecriteria cannot be met, adjustments would be made as follows:

(i) multiple shifting would be introduced in schools servicedwith electricity;

(ii) multigrade teaching (i.e., three classes for grades 1-6) wouldbe adopted as necessary in areas with low population densitiesand otherwise excessive travel distances for students; and

(iii) new schools would be established in communities with athreshold population of about 1,400 (i.e., 6 classes x 40students each divided by the national share of children

- 72 -

ANNEX 4Page 5

aged 7-12 in the population, or 240 . .17 = 1,400), whereexisting schools are housed in inappropriate rented facilitiesand a Government site is made available, and, on a case to casebasis, in small, isolated communities which are distant (about6 km or more) froin existing schools (using multigradeteaching).

(b) requests for replacement of existing classrooms or schools (includ-ing rentals) would be based on reports prepared by MPW districtengineers and including a description of the extent of dilapidation;a certification that the facility is unsafe for occupancy accordingto the provisions of the National Building Code; and an analysisshowing that the cost of rehabilitation (or rental) would exceed orapproximate the cost of an equivalent standard facility.

(c) requests for rehabilitation or completion of existing facilitieswould be based on district engineers reports describing the natureand extent of proposed works and estimated costs.

7. In accordance with financing guidelines, priority would be givento subproject requests for facilities in districts with low performancerankings. Priorities for approval would be in the following order:

(a) replacement of seriously damaged or unsafe classrooms;

(b) provision of additional classrooms to meet enrollment growth;

(c) rehabilitation of dilapidated facilities;

(d) replacement of dilapidated facilities;

(e) replacement of rented facilities.

In general, requests for multipurpose workshops would be considered onlywhere basic classroom requirements have been met. In addition, workshopswould be provided only for schools offering the full, six-year cycle ofelementary education and where satisfactory evidence of reasonableutilization and the availability of suitable teachers can be demonstrated.

8 . Provision of Equipment and Furniture. Requests for schoolequipment and furniture would be appraised and approved on the basis of needas deternined by detailed inventories conducted on a district by districtbasis and updated once in four years. Approval would be extended inaccordance with financing guidelines to school districts lacking furnitureand equipment with low performance ratings. For furniture and equipment foradministrative offices above the school level, approval would be basedmainly on a review of existing inventories in relation to standards set bythe Ministry of Education and Culture.

- 73 - ANNEX 4Page 6

9. Staff Development. Draft terms of reference for expert services,prototype courses outlines for workshops and fields for fellowship award forstaff of the Ministry of Education and Culture and the Instructional MaterialsCorporation have been reviewed by the Bank. Due to the large number of work-shops and client groups for the Ministry of Education and Culture, however,prototype courses and fellowship fields would be adapted to meet theparticular requirements of trainees. For managers and planners from thecenter and the regions, the specific content of workshops and fellowshiptraining would be prepared, justified and approved on the basis of the revisedroles and functions of the client(s). Emphasis would be given to upgradingtechnical and manq9rial skills required for meeting the objectives of thedevelopment progratii. More specific criteria would be applied in the adapta-tion and approval of training for teachers, principals and supervisors ineach region. This training would support the introduction of the newcurriculum, instructional materials and related teaching techniques with theaim of improving student participation and performance. Priority in justifi-cation and approval of training content would thus be given to resolvingparticular shortcomings in student participation and performance (i.e., belowaverage scores in any of the basic subjects, particular language difficultiesand related repetition or dropout problems).

10. Experimental and Research Components. The general criteria forapproval would apply to requests for the support of special programs (i.e.,experimental delivery systems) and for policy-related research. However,relevance would be assessed on the basis of potential (rather than direct)contributions to the achievement of program objectives through experimentalprograms. Cost-effectiveness and efficiency would be carefully evaluated toensure that experimental programs, if successful, could be economicallyreplicated. For research, relevance would be assessed on the basis ofpotential contributions to the formulation of sector policies. Individualsand groups from Government and private agencies would be eligible forconducting research and studies. It is expected that approximately sevenexperimental programs or studies would be undertaken each year in accordancewith the following criteria: no more than three experiments or studies wouldbe undertaken directly by agencies at the national level in any one year; nomore than one experiment or study would be undertaken by, or in behalf of, aparticular region in any one year; and no more than two such activitieswould be undertaken in the same region between 1981 and 1985. It isexpected that regional research components would be undertaken mainly byuniversities or their staff in cooperation with the Regional Offices of theMEC.

PHILIPPINES

SECTOR PROGRAM FOR ELFMENTARY EDUJCATION

Implemnentation Schedule (1981-85)

1 ~~1981 11982 1983 I 1984 11985 Activities__ _ _ _ _ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

I J IFI I I I I I A S I IN ID IJ IM IA IM I JIA I N DIJ F M A M J I J JAI SI IN ID I J I F IM I AI JJI S I N I D I J I F IMI I J I J AI SI INID

Civil works I I I I I I I I I I I II IClassrooms-- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ->Regional Training Centers-- - - - - - - - - - -I I I I I I I I I I I I I I I I I 1-……I I I I I I I I I I I I I I I I I I I IW4arehtousies -----------------…… … … … ---- I I I II II I II I I I I I I I I I I I It

Equipmnent &furniture 111 I 111 I li i i ti Procurement I-±- ---- …-- - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - -D elivery - - - - - - -- - - - - - -- - - - - - -- - - - - -- - - - - - -- - - - - - -- - - - -

Staff development -Workshops I I I I I I I I I I ItIiIiIIIiI IiIiI I I I t I II I I Course development, orients- --- --- --- --- --- -- --- --- --- --- -- --- --- --- ----…

tion for program managars I I li i i I Iiand training of trainers …………--------- ------------

Implementation-- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Revised curriculum II 11 ii 11111111 1111it liDevelopment and testing…------------------------------------------------- Implementation I -…-- - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - -

Monitoring teacher supply lii i I il i i i111i iit t i iDevelopment and testing…1------------------------- I I li i iImplementation -------------------- -…-- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Research &evaluation liiIi II litIi II I itI Ii iiItII Sector performance monitoring t I I t I I I I I t I t I I I I I I I I II t I I I I I I IPreparation ---- --- -- --- -- ------ I I I I II I I I I I I I II I I I I I Implementationt I I I i i I I I I I I F-…-- - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - -

In-depth evaluation -…-- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Research studies -- -- -- -- - -- -- --t-- --t- -- - -- -- -- - -- -- -- - -- -- -- -- - -- -- -- - -- ---…

manuscript production --- +-- --- i--- - - -- - - - - - --- -- - - - - - - - - -- - - - - - - - - -- - - - - - - - --…- - - - - - - -Paper procurement I-+ -I+ -i- + -I -I-+ -------------------------------------------------- Printing -HI- l' -+- t- F i- ~- -i -1 -t------------------------------------------------

Distribution I-- --i -t- -1 -s -I-I -71 --i -t-I- 1, H- f- I- -_1 -tf-------------------------------------

Technical Assistanceit I I III I I t tII III li t I IItIIIIIIi I tIIIIItttExperts I I II I I I -- ' -t --F - -- - -- - -- - -- - -- - -- - -- - -- - -- - -- - -- - -- - -- - -- - --- I I I I t I I IFellowships (foreign & local) I -…-- - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - -

IB RD 15601

176° 1200 1240 MARCH 1981

This map has been prep-red by the PH ILIP INESa Bnk's stff -sily for HI L Ithe con-vnience of the readers ofthe report to h,oh it is attahed.The denO inat-ons used and the ELEMENTARY EDUCATION SECTOR PROGRAMbosndarieo shown on this mapdo sot imply. so the pert 'f the DISPARITIES AMONG THE REGIONS

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