Regulatory Framework Issues in Education Norman LaRocque Consultant World Bank Groups Private Sector

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Regulatory Framework Issues in Education
Norman LaRocqueConsultantWorld Bank Groups
Private Sector Development in Education in West
Africa InitiativeCanadaFirst_at_xtra.co.nzInvest
ment Opportunities in Private Education in Africa
Conference Abidjan, Côte dIvoire30 November
1999
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What is the Regulatory Framework?

• The rules of the game
• Broad definition of regulatory framework
  includes
  
• - how providers get established
• - whether and how they are subsidised
• - tax and customs treatment
• - regulation of teacher labour market
• - operational flexibility
• - review and quality assurance of
  providers
  
• Regulatory framework not just legislation.
  Includes other rules too.
  

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Regulatory Framework Design I

• Regulatory Framework can have big impact on the
  achievement of educational objectives.
  
• Design should drive off assessment of the
  appropriate role of government in the sector.
  

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Regulatory Framework Design II
This should involve the analysis of 3 key
questions

• - is there market failure?
• - if so, what is the source of that market
  failure (i.e. capital market imperfections,
  information problems) ?
  
• - would government intervention produce a
  better result than the private market ?

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Regulatory Framework Design III

• The intervention should suit the problem.
• The government has three major policy
  instruments
  
• - purchase (e.g., subsidise schools)
• - ownership (e.g., own schools)
• - mandates/regulations (e.g., compulsory
  schooling age).

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Groupe Scolaire Fanaicha Senegal
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Regulatory Reform I

• Regulatory reform has potential to deliver
  significant gains - studies by Guasch and Hahn
  and Torres and Mathur.
  
• Not just deregulation. Regulate better. The
  objective is to achieve right regulatory mix.
  
• Regulatory reform equals continuous improvement
  in policy framework.

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Regulatory Reform II

• Regulation does not need to be done by
  government.
  
• There are two sides to every market - need to
  reform both sides.

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Regulatory Framework in Education in West Africa

• World Bank/IFC Private Sector Development Mission
  visited four countries in West Africa in
  January/February 1999.
  
• Purpose was to explore the investment outlook for
  the private education sector and collect
  institutional and regulatory information for
  EDINVEST.

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Comparative SummaryRegulatory Frameworks for
Private Education in West AfricaRegulatory
Infrastructure
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Comparative SummaryRegulatory Frameworks for
Private Education in West AfricaEntry/Exit and
Fee Setting
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Comparative SummaryRegulatory Frameworks for
Private Education in West AfricaResourcing
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Comparative SummaryRegulatory Frameworks for
Private Education in West AfricaOperational
Flexibility
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Collège dEnseignement Technique Féminin
Côte dIvoire
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Regulatory Frameworks in Education in West Africa

• Lots of good things
• explicit legislative recognition of private
  sectors role in education and training in
  Senegal and Côte dIvoire
  
• favourable resourcing policies in a number of
  countries (e.g., The Gambia, Senegal and Côte
  dIvoire (subsidies to recognised providers and
  public student sponsorship to attend private
  schools).
• the absence of limits on private school fees in
  most countries.
  

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Mauritania

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Demand Side Financing I

• West African countries are using demand-side
  financing to increase access for girls, rural
  dwellers and the poor.
  
• Communauté Urbaine de Dakar scholarships to
  students at private and public institutions
  (domestic and external). Annual funding of
  US700,000.

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Demand Side Financing II

• - Côte dIvoire sponsors public students to
  attend private institutions at secondary and
  tertiary levels. US10.3 million / 160,000
  students in 1997.
• - Department of Social Welfare in The Gambia
  operates scholarship schemes for needy children.
  150 scholarships per year. TESP will introduce
  new scholarship schemes targeted at low-income
  girls.

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Forsters Technical Training Centre The Gambia
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Areas for Improvement I

• Some elements that could be examined to increase
  investment and equity in spending
  
• - shift education spending from higher to lower
  levels of education
  
• - target spending on student characteristics
• - greater use of demand-side financing
  techniques
  
• - remove barriers to entry for private providers
  
  

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• Areas for Improvement II
• - examine finance mechanisms for providers
  and students (e.g., student loans)
  
• - improved performance monitoring
• - provide better information
• - capacity building the private education
  sector
  
• - greater promotion of private education
  sector.
  

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Private Education Sector in West Africa

• The private education sector in West Africa is
  significant and growing
  
• - market share ranges from 4 in Mauritania to
  21 in The Gambia. Senegal and Côte dIvoire
  at 15 and 19
  
• - the number of students in the private sector
  ranges from 15,000 in Mauritania to over
  400,000 in Côte dIvoire
  
• - the number of private providers ranged from 80
  in Mauritania to over 800 in Senegal.
  
• Private sector dominates some sectors.

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Private Education in West Africa Summary
Statistics
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Private Education in West Africa
(000)
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Private Education in West Africa II
(000)
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Growth in Private Education Sector in West Africa

• In most countries, there has been significant
  growth in the private sector, especially since
  mid-1990s
  
• 1993 and 1996, the number of students in
  private
  schools in The Gambia grew
  by nearly 50 percent
• 1991/92 and 1995/96, the share of the private
  tertiary education market grew from 3 to 23
  percent and
  
• between 1987/88 and 1997/98, the number of
  students at private schools in Senegal grew by
  over 75 percent.

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Growth in Student Enrolments at Private Education
Institutions()
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Private Education Sector Comes in Many Shapes and
Sizes

• For profit companies,
• NGO and community-run schools,
• parent-run co-operatives,
• secular and religious schools,
• single and multi-campus institutions,
• stand-alone entities,
• partnerships and franchises,
• formal and informal schools

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• Private education Sector Comes in Many Shapes and
  Sizes II
  
• Mostly urban based (e.g., Nouackchott)
• Brand names important
• Serve a range of markets - rich and poor
• Well-established sector representative groups in
  three of the countries.

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Forsters Technical Training CentreThe Gambia