The Role and Impact of Public-Private Partnerships in Education
The Role and Impact of Public-Private Partnerships in Education
The Role and Impact of Public-Private Partnerships in Education
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32 THE ROLE AND IMPACT OF PUBLIC-PRIVATE PARTNERSHIPS IN EDUCATION<br />
the number <strong>of</strong> students attend<strong>in</strong>g school<br />
does not <strong>in</strong> itself mean that the students are<br />
learn<strong>in</strong>g anyth<strong>in</strong>g. Observ<strong>in</strong>g the <strong>in</strong>puts<br />
associated with these contracts is extremely<br />
difficult. Moreover, how much students<br />
learn depends heavily on their family background,<br />
a factor that the school cannot<br />
control. In short, the parameters <strong>of</strong> these<br />
contracts are difficult to establish <strong>and</strong> usually<br />
require long-term commitments.<br />
Construction contracts are complex as<br />
well. <strong>The</strong> private provider has to commit to<br />
<strong>in</strong>vest<strong>in</strong>g over several years, <strong>and</strong> contracts<br />
have to stipulate who owns the <strong>in</strong>frastructure.<br />
<strong>The</strong>se contracts are <strong>of</strong>ten build-operate-transfer<br />
contracts, which implies an<br />
eventual transfer <strong>of</strong> <strong>in</strong>frastructure from the<br />
private to the public sector. Construction<br />
contracts also require a long-term commitment<br />
from both partners.<br />
Each type <strong>of</strong> contract works differently<br />
depend<strong>in</strong>g on the technical capacity <strong>and</strong><br />
the rule <strong>of</strong> law that prevail <strong>in</strong> a country.<br />
Less complex contracts can work more<br />
efficiently <strong>in</strong> low-capacity countries, while<br />
more complex contracts require a higher<br />
degree <strong>of</strong> legal <strong>and</strong> technical development.<br />
Contract<strong>in</strong>g as a means <strong>of</strong> <strong>in</strong>creas<strong>in</strong>g<br />
the private sector’s role <strong>in</strong> education can<br />
have several benefits over the traditional<br />
public delivery <strong>of</strong> education. <strong>The</strong>se benefits<br />
<strong>in</strong>clude greater efficiency, <strong>in</strong>creased choice,<br />
<strong>and</strong> wider access to government services,<br />
particularly for people who are poorly<br />
served by traditional methods. Increased<br />
private <strong>in</strong>volvement <strong>in</strong> education, through<br />
contract<strong>in</strong>g or vouchers, has the additional<br />
advantages <strong>of</strong> br<strong>in</strong>g<strong>in</strong>g specialized skills<br />
to bear <strong>in</strong> the operation <strong>and</strong> management<br />
<strong>of</strong> public schools <strong>and</strong> <strong>of</strong> circumvent<strong>in</strong>g<br />
the <strong>in</strong>flexible salary scales <strong>and</strong> work<br />
rules that tend to prevail <strong>in</strong> public sector<br />
employment.<br />
<strong>The</strong> f<strong>in</strong>al objective <strong>of</strong> PPPs is to <strong>in</strong>crease<br />
the enrollment rates <strong>and</strong> improve the education<br />
outcomes (such as st<strong>and</strong>ardized test<br />
scores <strong>and</strong> dropout rates), particularly <strong>of</strong><br />
students from low-<strong>in</strong>come families. From<br />
the government’s po<strong>in</strong>t <strong>of</strong> view, reduc<strong>in</strong>g<br />
costs alone can be an important objective.<br />
Table 3.1 presents <strong>in</strong>formation on the<br />
strengths <strong>of</strong> the four types <strong>of</strong> contracts analyzed<br />
<strong>in</strong> this chapter—vouchers, subsidies,<br />
private management, <strong>and</strong> private f<strong>in</strong>ance<br />
<strong>in</strong>itiatives—with regard to the four ma<strong>in</strong><br />
objectives <strong>of</strong> PPPs: <strong>in</strong>creas<strong>in</strong>g enrollment,<br />
improv<strong>in</strong>g education outcomes, reduc<strong>in</strong>g<br />
<strong>in</strong>equality, <strong>and</strong> reduc<strong>in</strong>g costs.<br />
In terms <strong>of</strong> enrollment, vouchers <strong>and</strong><br />
subsidies can <strong>in</strong> theory deliver very significant<br />
positive outcomes as long as there<br />
is an adequate private supply <strong>of</strong> school<br />
places. However, these contracts may also<br />
reallocate students between public <strong>and</strong><br />
private schools, <strong>and</strong> therefore, the net<br />
ga<strong>in</strong> <strong>in</strong> enrollment can be small. <strong>Private</strong><br />
Table 3.1<br />
Contract<br />
Vouchers<br />
Subsidies<br />
<strong>Private</strong><br />
management<br />
<strong>and</strong> operations<br />
<strong>Private</strong> f<strong>in</strong>ance<br />
<strong>in</strong>itiatives<br />
Expected effects <strong>of</strong> different public-private partnerships on four ma<strong>in</strong> education objectives<br />
Effect on<br />
<strong>in</strong>creas<strong>in</strong>g<br />
enrollment<br />
Strong: number<br />
<strong>of</strong> students who<br />
receive the voucher<br />
Strong: use <strong>of</strong><br />
already built private<br />
<strong>in</strong>frastructure<br />
Moderate: limited<br />
by the supply <strong>of</strong><br />
private school<br />
operators<br />
Effect on improv<strong>in</strong>g<br />
education outcomes<br />
Effect on reduc<strong>in</strong>g<br />
education <strong>in</strong>equality<br />
Effect on reduc<strong>in</strong>g<br />
costs<br />
Strong: school choice Strong when targeted Strong when<br />
private sector is<br />
more efficient<br />
Moderate: limited<br />
by available places<br />
<strong>and</strong> quality <strong>of</strong> service<br />
delivered <strong>in</strong> the<br />
private sector<br />
Moderate: limited by<br />
available places <strong>in</strong><br />
the private sector<br />
Strong when targeted<br />
Strong when targeted<br />
Moderate<br />
Moderate<br />
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Mon, 30 Mar 2009 12:16:23<br />
by f<strong>in</strong>ancial<br />
Strong when targeted Strong<br />
constra<strong>in</strong>ts<br />
Sources: Authors’ compilation based on World Bank 2003a, 2006; Hard<strong>in</strong>g 2002; Latham 2005; LaRocque <strong>and</strong> Patr<strong>in</strong>os 2006.<br />
(c) <strong>The</strong> International Bank for Reconstruction <strong>and</strong> Development / <strong>The</strong> World Bank