Issues in Education and Global is at Ion in Southeast Asia

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    Issues in Education and

    Globalisation inSoutheast Asia:

    Contending mindsetsin MDGs and GATS

    Raquel D. CastilloNational Coordinator

    E-Net Philippines25 October 2005

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    Education has been considered asone of the most importantcontributors to the achievement of MDGs to halve extreme poverty by2015

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    Education for All (EFA)

    Universal Primary Education (UPE)Vs

    Universal free compulsory basiceducation

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    The performance of South

    East Asia on educationaloutcomes has been varied

    Education Devt Index (EDI) for a countryis the arithmetical mean of the valuesof the indicators selected to measurethe four EFA goals:

    gender parityuniversal primary educationquality of education, andadult literacy

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    Indonesia, Philippines, Thailand andVietnam are in the intermediateposition with an EDI score of 0.8-0.94

    Cambodia and Lao (PDR) with a scoreof less than 0.8 are unlikely to achievethe EFA goals by 2015

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    Total Debt Service and Education & Health Expenditure as % of GDP (2001/2002)

    0

    2

    4

    6

    8

    10

    12

    14

    16

    18

    Cambodia Indonesia Lao PDR Malaysia Philippines Thailand

    Total Debt Service

    Education & Health

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    Post the ratification of the EFA andMDG goals in the year 2000,ironically bilateral aid toeducation($16 B promised by2006) has in fact experienced adownward trend from an averageof 4.5 percent in the 1990s to only4.2 percent in the first three yearsof the new millennium (GMR 2005)

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    Contending principles1. Education is a basic human right . The

    State is duty-bound to provide it as apublic good .

    2. M arket is more efficient than

    government in providing goods andpushes for formation of internationalmarket in public service delivery .

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    Political tension betweenMDGs and GATs

    MDG s place expansion andimprovement of basic public servicessuch as education at the heart of international development policyGA TS expands corporate access

    through privately-owned, privately-financed, privately-delivered services

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    It has been argued that GA TS isbeneficial as services liberalizationhelps developing countries byincreasing efficiency and providingrequired inputs .

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    Trends in so-called publicservice reform according

    to WB (NPM)

    Separation of policy making fromservice delivery responsibilityIncreased public-private partnerships

    D ecentralisationContract-based accountabilityUsers as consumers

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    1. Direct impact of GATS on

    policy: Standard prescription of privatisation of education

    Cost recovery through user fees,

    (Aka community financing)Greater private sector participationin educationDecentralization of education (PhilsRA 9155)Abolishment of subsidies fortertiary education

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    Private enrollment as a

    percentage of total (GMR 2005)Preschool Primary Secondary

    Cambodia27.4 0.9 0.4

    Indonesia 98.8 16.0 42.7

    M alaysia 41.1 3.8 6.6

    Philippines 46.0 7.1 21.5

    Thailand 20.2 13.6 6.4

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    Impetus for GASTPE LAW

    Exodus from private to public highschool

    Perennial financing constraints

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    Growth of Education

    Services Contracting(ESC)Y E AR NO . OF

    REC

    IP

    IENTS

    NO . OF

    P AR

    TIC

    IP

    . SCHOOLS

    1986/87 4 ,322 158

    2003/04 280 ,216 1 ,517

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    Some hard questions

    W ill performance indicators be better?W hat values ?W ill they go to under-served areas ?W hat impact on teachers welfare ?

    W ill it really cost less, given need tomonitor standards ?

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    2 . Indirect Impact of WTO on

    school push-offs (dropouts)

    In A tok, Benguet, Philippines, vegetable-growing communities have become

    poorer because of plunging farmprices . A s a consequence, child

    workers and OSC and OSY

    numbersare significantly high .

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    1000 Grade 1 entrants 312 drop

    439 will finish in 6 yrs

    249 will finishin 9.6 yrs

    Only 7 will have 75% scores in

    Science, Math, English

    Learner outcomes

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    H ow many are theynationwide? 11. 2 M

    Out-of-School-Youth

    0

    2

    4

    6

    8

    10

    12

    1989 1994 1999 2004

    i n M i l l i o n

    Number o f am o ng 7 -24 years ol d, 1989 -2004

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    More hard questions:W ould governments come under pressure to change the conditionsunder which public services areprovided with GA TS?

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    A rticle I of GA TS:The definition of services covered in theagreement gives an exception to servicessupplied in the exercise of governmentala uthority .

    BUT

    G overnment services provided on a commercialbasis are subject to GA TS provisions, as aregovernment services supplied in competitionwith any other suppliers .

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    Once the public service is privatized, itceases to be an exempted governmentservice . Even in a case whereprivatization is partial, or where thegovernment still maintains its servicebut allows private entities to alsoparticipate in supplying that service, interms of A rticle I.3 (c) of GA TS, such aservice may no longer qualify as aservice supplied in the exercise of governmental authority and thus couldbe brought under GA TS . (M artin Khor)

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    The way to go1. D eveloping countries can choose toliberalize selectively and autonomously,without making binding commitments atthe W TO; thus, if the liberalization turnsout to have negative effects, they can

    reverse course without having to payany compensation . National policy-making sovereignty can be upheld .

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    2. D esigning good governance shouldembed defined roles for private andNG O delivery while strengthening andnot undermining public institutions .

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    3. Education is a basic right,not a commodity!

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    Thank you!