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2009/ED/EFA/MRT/PI/38 Background paper prepared for the Education for All Global Monitoring Report 2009 Overcoming Inequality: why governance matters Targeting Education Funding to the Poor: Universal Primary Education, Education Decentralization and Local Level Outcomes in Ghana Athena Maikish New York University Alec Gershberg The New School 2008 This paper was commissioned by the Education for All Global Monitoring Report as background information to assist in drafting the 2009 report. It has not been edited by the team. The views and opinions expressed in this paper are those of the author(s) and should not be attributed to the EFA Global Monitoring Report or to UNESCO. The papers can be cited with the following reference: “Paper commissioned for the EFA Global Monitoring Report 2009, Overcoming Inequality: why governance matters” For further information, please contact [email protected]

Targeting education funding to the poor: universal …unesdoc.unesco.org/images/0018/001804/180410e.pdf · The policy of decentralization in Ghana aims to establish a decentralized

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2009/ED/EFA/MRT/PI/38

Background paper prepared for the Education for All Global Monitoring Report 2009

Overcoming Inequality: why governance matters

Targeting Education Funding to the Poor: Universal Primary Education, Education

Decentralization and Local Level Outcomes in Ghana

Athena Maikish

New York University

Alec Gershberg The New School

2008

This paper was commissioned by the Education for All Global Monitoring Report as background information to assist in drafting the 2009 report. It has not been edited by the team. The views and opinions expressed in this paper are those of the author(s) and should not be attributed to the EFA Global Monitoring Report or to UNESCO. The papers can be cited with the following reference: “Paper commissioned for the EFA Global Monitoring Report 2009, Overcoming Inequality: why governance matters” For further information, please contact [email protected]

Targeting Education Funding to the Poor: Universal Primary Education, Education Decentralization and

Local Level Outcomes in Ghana

Athena Maikish New York University

[email protected]

Alec Gershberg The New School

[email protected]

1.  Introduction to Ghana’s Capitation Grant Scheme ................................................................. 2 

2.  Recent Education Policy and Strategy in Ghana .................................................................... 4 

3.  Review of School Fee Abolition and Universal Primary Education in African Countries .. 11 

4.  Data and Methods ................................................................................................................. 12 

5.  Recent Trends in Education Access to Basic Schooling ...................................................... 14 

5.1.  Trends in Gross and Net Enrollment Ratios by Sex Across the Country ...................... 14 

5.2.  Trends in Gross and Net Enrollment Ratios by District Deprivation Level .................. 16 

5.3.  Trends in Gross and Net Enrollment Ratios by District Deprivation Level and Sex ..... 19 

5.4.  Trends in Gross and Net Enrollment Ratios by Region ................................................. 22 

6.  Discussion on Recent Trends in Education Access and Moving Forward ........................... 26 

7.  Appendix I ............................................................................................................................ 33 

8.  Appendix II ........................................................................................................................... 35 

9.  Appendix III .......................................................................................................................... 37 

10.  Works Cited .......................................................................................................................... 39 

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1. Introduction to Ghana’s Capitation Grant Scheme Most countries in sub-Saharan Africa (SSA) have been slow to realize gains in universal

primary education enrollment rates. In the 1980s and early 90s, the SSA region saw a decline in

the primary school gross enrollment rate while all other regions saw an increase (UNESCO,

1998). In response, many governments in Africa initiated programs to encourage enrollment in

primary education among its population. Many of these programs aimed to increase

participation in primary education by abolishing school fees. Moreover, simultaneously, many

governments promoted a strategy of education decentralization shifting responsibility of

education decision making into the hands of local educational authorities.

Through what is termed the Capitation Grant Scheme, Ghana embarked on a national

initiative for the provision of universal primary education in 2004. This initiative sought to

bolster its constitution, in which free, compulsory and universal primary education is mandated,

and to support its educational policy (FCUBE), which was established as an outgrowth of this

constitutional mandate. Despite an existing policy of fee-free tuition in basic schools1 post-1996

as outlined by FCUBE, many districts continued to charge students levies to attend school as a

means of raising funds to cover school-related expenses. The Capitation Grant Scheme was

introduced in 2004-2005 to support financially and administratively the FCUBE policy of free,

universal primary education. It removed the financial barrier to enrolling in schools while, at the

same time, compensated schools for any loss of revenue incurred by eliminating student levies.

The Capitalization Grant Scheme sought to encourage effective implementation of

decentralization by empowering schools to plan and carry out school quality improvement

activities using accountability guidelines and forms.

1 “Basic” school in Ghana refers to primary and junior secondary school (grades 1 through 9). It does not include senior secondary school.

2

This paper focuses on understanding the impact of the Scheme in aiding Ghana’s effort to

realize equitable and universal access to basic education by providing a descriptive portrait of

primary school enrollment patterns from 2002 to the present. We find that, based on initial data,

the Scheme is associated with initial gains in enrollment and that different populations and

different regions realize different enrollment gains. Accordingly, we argue that more attention

must be paid to how the Grant is being implemented within a decentralized education

management structure such that each region and population effectively reaps increased education

outcomes.

To perform this analysis, we consult and analyze recent Ghanaian education policy and

strategy documents as well the Ministry’s Education Sector Reports and in-house program

impact studies, the Consortium for Educational Access, Transitions and Equity’s (CREATE)

Country Analytic Report on Ghana (Access to Basic Education in Ghana: The Evidence and the

Issues), as well as data collected by Ghana’s Education Management and Information System

(EMIS), an established structure to monitor and evaluate quality delivery of education in Ghana

and data from preliminary interviews with government and development officials during the

Summer of 2007. In the next section, we review recent Ghanaian education policy and strategy.

In Section 3, we summarize the theory behind on school fee abolition and universal primary

education initiatives as it applies to the case of Ghana. Section 4 outlines the research questions,

data and methodology, which centers on district level enrollment data collected by a wing of

Ghana’s education service. It is unique to have data at this level of detail for a country in SSA.

A presentation of the results follows in Section 5, which includes results on the effectiveness of

the program in targeting disadvantaged populations. Lastly, in Section 6 we discuss conclusions

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and directions for further research, which suggest that providing per-pupil funding directly to

schools seems to be associated with gains in enrollment for disadvantaged populations.

2. Recent Education Policy and Strategy in Ghana This section provides an overview of recent education policy and strategy in Ghana as it relates

to increasing access to education and reforming the educational management structures in the

country. Table 1 on page 7 provides a summary of general country and education related

decentralization policy.

The 1992 Constitution of Ghana lays the groundwork for Ghana’s national administrative

strategy, which stipulates that “Ghana shall have a system of local government and

administration which shall, as far as practicable, be decentralized2” (Chapter 20, Article 240).

The Constitution calls for political devolution3 as well as administrative and technical

deconcentration4 of service delivery institutions. The Local Government Act of 1993 (Act 462)

as well as several other subsequent policy acts serve to support the prescriptions set forth in the

Constitution. The policy of decentralization in Ghana aims to establish a decentralized

administration through the transfer of power from the central government to the sub-national

institutions such as the District Assemblies in order “to enhance the capacity of the public sector

to plan, manage and monitor social, spatial and economic development” (NDAP, 2003, p. 2).

The policy specifically seeks to “Promote popular participation in the decision-making process;

Promote good governance at the local level; and, Enhance efficiency and effectiveness of the

entire government machinery” (NDAP, 2003, p. 2). To do so, the policy seeks to devolve central 2 Decentralization is the assignment of fiscal, political and administrative responsibilities to lower levels of government. See Appendix I for more detailed discussion of decentralization. 3 More extensive form of decentralization in which central governments transfer responsibility for decision making and administration of public functions to semi-autonomous organizations accountable but not controlled by the central government. 4 Weakest form of decentralization and encompasses the redistribution of decision-making authority and financial and management responsibilities for providing public services and infrastructure among different levels within the central government.

4

administrative authority and divest implementation responsibility to the district level (138

districts as of 2007). The District Assemblies receive 5% of revenue from the Central

Government Common Fund5, which they may spend in accordance with their priorities. A

portion of the 5% of this revenue is suppose to be distributed by the District Assemblies to

district schools for up school building, renovation and furniture related issues.

The constitution and policy acts that followed the constitution set the stage for the

national provision of basic education. The constitution of the Fourth Republic of Ghana Article

39(2) mandates “the provision of free, compulsory and universal basic education.” The Free

Compulsory Universal Basic Education (FCUBE) policy in Ghana, introduced in 1992 and

launched in 1996, serves to support this mandate and frames basic education policy in Ghana.

The Draft 2006 Education Bill defines the decentralization of education in Ghana as “a well-

planned refocusing of the Ministry and Education Service away from the executive management

of a country-wide network of schools, staff, supplies and finances; and now towards the setting

and enforcement of educational standards, the development of books and any other educational

materials, and the promotion of quality teaching training” (p. 4). In May 2003, the Ministry of

Education published the Education Strategic Plan (ESP) 2003-2015. Informed by such

documents as the Education for All Goals, the Millennium Development Goals, the Ghana

Poverty Reduction Strategy (GPRS) and the President’s Committee on the Review of Education,

the ESP was designed to provide “relevant education to all Ghanaians at all levels to enable them

to acquire skills that will assist them to develop their potential, to be productive, to facilitate

poverty reduction and to promote socio-economic growth and national development” (MoE,

2003). The strategic framework of the ESP is based around four focus areas and ten policy

5 The Constitution states, “Parliament shall annually make provision for the allocation of not less than five percent of the total [central government] revenues to the District Assemblies for development (Article 2).

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goals. The four areas of focus include: equitable access to education; educational management;

quality of education; and science, technology and technical and vocational education and

training. This paper focuses on understanding Ghana’s progress in realizing the first focus area –

equitable access to education – and discusses its connection to decentralized educational

management in the country.

The 1996 FCUBE policy sought to expand access to good quality basic education,

promote efficient teaching and learning, improve teacher moral and motivation through incentive

programs, ensure adequate and timely supply of teaching and learning to schools and improve

teacher community relations. Specifically, FCUBE aimed to achieve universal primary

education by 2005. The Ministry of Education reports that about 30% of Ghanaian children of

school going age were still not in school when FCUBE was launched in 1996 (SFAI 2007 Ghana

Country Paper). Despite an existing policy of fee-free tuition in basic schools post-1996 as

outlined by the FCUBE policy, many districts continued to charge students levies to attend

school as a means of raising funds, for example, for school repairs, and cultural and sporting

activities. The Government of Ghana asserted that these levies had the effect of deterring many

families, particularly the poorest, from sending their children to school (Ghana Education

Service, 2005). In addition, weaknesses such as poor supervision at the system and school level

undermined FCUBE’s impact (World Bank, 1999). Accordingly, the Ministry reported that

“continuing to expand access to basic education and increasing physical inputs into the system

are not effective unless the quality of activities at the school level improves significantly’ (MOE,

1999 as cited in Akyeampong et al., 2007). With universal basic education rates not on target in

the years following the implementation of FCUBE, the Ministry focused policy efforts on

6

education decentralization and introduced capitation grants6 in order to increase access to

education.

Table 1: Summary of General and Education Decentralization Policy

Government Act/Policy Purpose General Policy 1992 Constitution of Ghana Decentralizes system of local government and administration Local Government Act of 1993 (Act 462)

Transfers power from the central government to the sub-national institutions such as the District Assemblies. Devolves central administrative authority and divests implementation responsibility to the district level.

Education Policy 1951 Accelerated Development Plan for Education (ADPE)

Laid the foundation for decentralized educational management in Ghana giving local councils responsibility for the provision and maintenance of educational facilities, while leaving the central government responsible for teachers’ salaries.

The Education Act of 1961 Reaffirmed control and management of education at the local level to local councils; however, poor managerial capacity and a weak financial resource base of the local councils undermined the decentralization process.

1992 Constitution of Ghana Mandates provision of free, compulsory and universal basic education.

Free Compulsory Universal Basic Education (Intro. in 1992, launched in 1996)

Supports constitutional mandate and frames basic education policy in Ghana.

Education Strategic Plan (ESP) 2003-2015

Provides strategic framework for education stipulating that the Ministry of Education will provide: facilities to ensure that all citizens are functionally literate and self-reliant; basic education for all; opportunities for open education for all; education and training for skill development with emphasis on science, technology and creativity; and, higher education for the development of middle and top-level manpower requirements. In providing these services, the Ministry states its commitment to be guided by the following values: quality education; efficient management of resources; accountability and transparency; and, equity.

Draft 2006 Education Bill Defines the decentralization of education in Ghana as “a well-planned refocusing of the Ministry and Education Service away from the executive management of a country-wide network of schools, staff, supplies and finances; and now towards the setting and enforcement of educational standards, the development of books and any other educational materials, and the promotion of quality teaching training.”

Capitation Grant Scheme (Implemented as pilot program in 2004-2005 and country-wide in 2005-2006)

Supports the FCUBE policy of free, universal primary education as well as Ghana’s decentralization policy by allocating a per-pupil amount of funding to all basic public schools and mandating the completion of accountability guidelines and forms.

6 Capitation grants are per pupil allotments of funding disbursed directly to schools.

7

The planned strategy of education management responsibility in Ghana is targeted

towards the district level. The form of decentralization that has been implemented is

deconcentration since local district councils are generally administrative implementing bodies for

policies and have no autonomous sources of revenue. Ten regional and 138 district education

offices represent the Ministry in the local areas and are responsible for implementing policy that

is set by the central Ministry of Education. Each district has a director who reports to regional

offices and is responsible for school management, supervision, budgeting and data collection and

analysis for each district office. In the decentralization of the school system, the allocation of

resources has been passed to the local districts and circuits7, and more specifically to the

principals that manage these schools. As a result, the decentralization of the education system

hinges on the success of district offices and local school leaders in Ghana.

The Capitation Grant Scheme serves to support the FCUBE policy of free, universal

primary education as well as Ghana’s decentralization policy. The Capitation Grant Scheme,

which was developed and is administered by Ghana’s Ministry of Education and Sports and its

implementation wing, the Ghana Education Service, was launched as a pilot program in 2004-

2005 and launched country-wide in 2005-2006. To do so, the Capitation Grant Scheme allocates

GH¢38 per student per year to all basic public schools (kindergarten through junior secondary

school) at the cost of GH¢2,850,000 for the initial pilot year of 2004-2005 (MoE, 2006)9. In the

initial 2004-2005 pilot year, an estimated amount of GH¢11,100,000 was requested from the

7 Circuits are smaller subsets of schools in the districts. Circuits vary in size and number relative to the particular district. 8 Monetary figures reported at the time in the old Ghanaian Cedi have been updated to reflect their current value in the new Ghanaian Cedi. ¢10000 are equivalent to GH¢1. GH¢1 is about equal to $1. 9 Note that while the simple construction of the per capita grant neither explicitly targets the poor nor compensates small schools for fixed costs, per student (and other population based) grants are likely to be redistributive in the context of most public finance systems where the poorest regions contribute the least to the public fisc. In addition, since the grant was specifically designed to offset fees, and has presumably had some impact on enrollment in this regard, the grant itself is likely progressive and redistributive in nature. In future, more explicitly compensatory components could be build in.

8

government to fund the initial implementation of the scheme financed in part through the release

of GH¢9,500,000 from Heavily Indebted Poor Countries (HIPC) Fund (GH¢4,750,000) and

Social Impact Mitigation Levy (GH¢4,750,000) (MoE, 2007). The unit cost per student for

primary and junior secondary school10 in 2006 in Ghana was GH¢94.41 and GH¢ 158.4111,

respectively. While the total Capitation Grant budget is seemingly large, it does not fully cover

the actual costs of educating a student. Akyeampong et al. (2007), found that “An analysis of

recent trends in funding shows that the government of Ghana funding of Education (total

resource envelop) has declined, whilst donor funding has remained generally below 10 percent”

concluding that “Without a significant injection of funds to basic education sustainable gains in

access where expansion and quality improvement take place concurrently to ensure ‘meaningful

access’ are unlikely to be achieved” (p. 15). We agree with this analysis but argue that because

education expansion and quality improvement efforts are being implemented on a local level due

to the decentralization policy gains in access will come from understanding how successful (and

failing) districts implement expansion efforts to realize gains (and losses).

The Capitation Grant program aims to increase student enrollment in basic schools by

removing the financial barrier to enrolling in schools while also compensating schools for any

loss of revenue schools face by eliminating such student levies. The administrative measures

designated by the Capitation Grant Scheme seek to encourage an effective implementation of

fiscal and administrative decentralization by empowering schools to effectively use financial

resources to plan and carry out school quality improvement activities through accountability

10 The unit cost includes recurrent cost which salaries, service and administration cost. Salaries are administered through the central government and, thus, schools do not individually see this expense. Accordingly, it is challenging to compare the unit cost per student to the Capitation Grant allotment as the Grant allotment does not cover salary expenses. 11 2004 figures: GH¢69.81 (primary) and GH¢104.42 (JSS); 2005 figures: GH¢64.42 (primary) and GH¢97.31 (JSS).

9

guidelines and forms. The funds provided by the Capitation Grant to schools are supposed to be

channeled towards the provision of teaching and learning materials, school management

(includes travel and transportation, stationery and sanitation), community and school

relationship, support to needy pupils, school based in-service training, minor repairs and the

payment of sports and culture levies (GES, 2005). A map of the program theory of the

Capitation Grant Scheme is presented in Figure 13 at the end of this document. The Capitation

Grant Scheme requires two main inputs from the central Ministry of Ministry to carry out its

goals: per pupil funding allowances and accountability guidelines and forms. Funds are provided

to the 138 districts offices based on school population numbers. School leaders are required to

report student enrollment figures and submit a “School Performance Improvement Plan (SPIP),”

which outlines how the funds will be allocated, to its district education office. Each district

office is expected to compile the enrollment figures, report the figures to the central Ministry of

Education, and then the central Ministry disburses funding to districts based on the student

enrollment figures. Upon approval, the district offices are then responsible for depositing the

funds in the school’s bank account and the school leaders are responsible for spending and

tracking the funds appropriately. At the end of each term schools are required to submit an

“Expenditure Returns Report” showing how funding was utilized. The process is repeatedly for

the fall, winter, and spring school terms.

The “Guidelines for the Distribution and Utilization of Capitation Grants” (GES, 2005)

also help to define the role of the key local players in the delivery of education service. The

District Director of Education and Assistant Director of Supervision are charged with providing

overall oversight and support towards the implementation of the SPIP, approving the SPIPs for

each school in the district, ensuring compliance with all requirements and ensuring that bank

10

accounts are opened and the flow of funds to each school occurs on timely basis. The District

Accountant maintains proper books of accounts and other records of all transactions, accounts

for all funds received and transferred to the schools, and provides financial and other information

required by management to control the effective implementation of the capitation grants. The

Circuit Supervisor provides the day-to-day supervision on the implementation of the SPIPs.

Last, the Head teachers (school leaders) ensure the effective utilization of the capitation grants,

implement the activities as provided in the SPIPs and ensure the proper accountability of all

funds received and utilized in the schools. School Management Committees are also expected to

help the school leaders in completing these tasks.

3. Review of School Fee Abolition and Universal Primary Education in African Countries When piecing together the theory and past research on user fees in the education

marketplace several themes emerge that are relevant to the Ghanaian example. First, it is unclear

what effect the elimination of school fees in Ghana will have on enrollment. It may increase

enrollment by offsetting the cost of attending school but it may also have no affect on enrollment

because the opportunity cost of the forgone income may be too high when measured against the

gain (or lack thereof) students feel they would obtain by attending school. That is, increasing

completion rates and gender parity cannot be achieved only by reducing the costs of schooling.

Countries such as Ghana must address cultural barriers and offset the opportunity costs involved

in schooling children. Even when user payments are eliminated, parents face other costs of

education their children making it far from free.

Second, abolishing user payments may increase the demand for schooling in Ghana but

the education system may be unable cope with the large influx of students. As shown in Malawi

which eliminated user fees nationally, school enrollment increased by over 60% but the quality

11

of education declined as measured by an increase in the number of untrained teachers, class sizes

and limited facilities, as well as an increase in the number of years of schooling required to

achieve basic literacy (Kadzamira and Rose, 2003). Higher gross enrollment rates may not

necessarily lead to true improvements in educational attainment. Addressing issues of quality

seems paramount to the efforts as well. In addition, potential gains in enrollment could be lost if

the grant program is unsuccessfully distributed and implemented.

Third, user fees and the abolition of user fees may impact different segments of the

population in Ghana differently. In addition, the decentralization of education may differentially

impact different populations differently. The decentralization of secondary schools in Argentina

had, on average, a positive and significant impact on student performance; however, the effect

was negative for schools located in poor areas of provinces with weak technical capabilities

(Galiani et al, 2005).

4. Data and Methods The quantitative data we use was collected by Ghana’s Education Management and

Information System (EMIS), an established structure to monitor and evaluate quality delivery of

education in Ghana. The variable enrollment, represents the enrollment of a student in a school,

is collected at the school level, and is aggregated at the district level and then again at the

regional and country levels. The data are secondary source data collected by school leaders in

individual schools and reported to district education officials. District officials aggregate the

data and report it to the centralized Ghana Education Management Information System unit,

which organizes the data. Limits to the measure’s reliability and accuracy stem from

inconsistencies in data collection efforts across districts and sub-par data collection strategies

within schools and districts, respectively; however, these issues are mitigated in this analysis by

12

the assumption that trends in data reporting inconsistencies both between districts and within

districts remain similar from year to year.

We analyze trends from 2002-200712 in primary school13 and junior secondary school14

gross enrollment ratio (GER) 15 and net enrollment ratio (NER)16 across the country by sex, by

region17 and by district deprivation level18. We are only able to analyze trends in enrollment

around the time of the initiation of the Capitation Grant Scheme by exploring enrollment in the

years directly before and directly after the implementation of the Capitation Grant Scheme. We

are not yet able to infer a causal relationship between the Capitation Grant Scheme and

accompanying increases in enrollment in primary schools19. Nevertheless, we feel that our

results are instructive and reliable as they highlight clear patterns over the years as well as

changes that occurred at the onset of the Capitation Grant.20

We also reference data collected from initial interviews with government and

development officials during the Summer of 2007. Data was collected from informal interviews 12 Data at the district level for 2004-2005 is unavailable because of the redistricting effort (multiple requests for the data are pending). Regional data is available, however. Accordingly, the data points for all indicators that require district level aggregation are assumed to follow a linear path from 2004-2005 to 2006-2007. 13 Primary school in Ghana represents grades 1 through 6. Primary school going age includes children aged 6 to 11. 14 Junior secondary school in Ghana represents grades 7 through 9. Junior secondary school going age includes children aged 12 to 14. 15 GER is the total enrollment in a specific level of education, regardless of age, expressed as a percentage of the eligible official school-age population corresponding to the same level of education in a given school-year. 16 NER is the enrollment of the official age group for a given level of education expressed as a percentage of the corresponding population. 17 Ghana is divided into 10 regions including: Ashanti, Brong Ahafo, Central, Eastern, Greater Accra, Northern, Upper East, Upper West, Volta and Western. 18 Districts are classified by the Ministry of Education as “deprived” based on such factors as the percentage of qualified primary teachers, pupil-teacher ratio at the primary level, gross enrollment rate and the percentage of girls enrolled would not be adequately addressed in the districts. Until 2004-2005 there were 40 deprived districts and 70 non-deprived districts. When the country was redistricted in 2005-2006, 53 districts were labeled as deprived while 98 remained non-deprived. 19 We are unable to run such an analysis because Ghana underwent a national redistricting effort during the same time period as the country-wide launch of the Capitation Grant Scheme in 2005-2006. Prior to 2005-2006, the country was divided into 120 districts. In 2005-2006 the Government of Ghana redistricted the country by dividing some districts into two resulting in 138 units from 2005-2006 onward. While we have enrollment data at the new district level, we have yet to secure the 2005-2006 population data needed to calculate GER and NER. Once such data is acquired we hope to undertake a more robust statistical analysis at the district level analysis. 20 We are currently in the process of conducting a more robust Repeated Measures ANOVA statistical analysis with the data.

13

with following government officials: the Director-General of the Ghana Education Service, the

Financial Controller of the Ghana Education Service, the Lead Coordinator of EMIS, the

Director of Planning, Budgeting, Monitoring and Evaluation Division at the Ministry of

Education as well as several Accra Metro district level education officers. Informal interviews

were also conducted with the following key development community officials: a Senior

Education Economist and an Education Officer of the World Bank in Accra and the Chief of

Education at UNICEF Ghana.

5. Recent Trends in Education Access to Basic Schooling In this section, we provide an overview of the trends and patterns of enrollments in basic

education in Ghana. We seek to understand the differential impact, if any, that the Capitation

Grant had on the enrollment of boys versus girls, between the ten regions of Ghana, and between

deprived versus non-deprived districts. We seek to understand if the Capitation Grant Scheme is

associated with influencing the educational opportunities of underrepresented children in Ghana.

5.1. Trends in Gross and Net Enrollment Ratios by Sex Across the Country As seen in Figure 1, the primary school gross and net enrollment ratio has been steadily

rising across the country. There was a noticeable increase in the net enrollment rate for both

boys and girls starting in 2004-2005, the year that the Capitation Grant Scheme was introduced,

with growth increasing more sharply for girls in 2004-2005. This suggests that the Capitation

Grant had an initial effect to encourage participation in education among girls but that such an

effect may have worn off soon after. The margin of difference in GER between boys and girls

decreased from 6.1% in 2003-2004 to 4.1% in 2006-2007 suggesting a fair impact of the Grant

on narrowing the gap between girls and boys. The wider gap between boys and girls for GER in

comparison to NER prompts more follow-up investigation to understand why such may be the

14

case. A similar pattern of growth is seen in the junior secondary school gross and net enrollment

ratios although actual participation in JSS is at a markedly lower percentage.

A child’s age is a significant player in participation in basic education in Ghana

(Akyeampong et al., 2007). In Ghana, the official age for starting grade 1 (primary 1) is six

years old. In all grades, overage children represent the largest proportion of children

(Akyeampong et al., 2007). Akyeampong et al. (2007) assert that this age issue is an important

factor in explaining why consistently high enrolments in the early grades are not maintained

throughout all the grade levels as they assert that overage enrolments risk irregular attendance

and drop out.

Figure 1: Primary School GER and NER by Sex

15

Figure 2: JSS GER and NER by Sex

5.2. Trends in Gross and Net Enrollment Ratios by District Deprivation Level Districts are classified by the Ministry of Education as “deprived” based on such factors

as the percentage of qualified primary teachers, pupil-teacher ratio at the primary level, gross

enrollment rate and the percentage of girls enrolled21. Since deprived districts are indexed as

such due in part to their low education enrollments it is not surprising that deprived districts

exhibit lower gross and net enrollment ratios than non-deprived districts to begin with.

Accordingly, we focus our analysis on the gap between deprived and non-deprived across the

years.

21 Until 2004-2005 there were 40 deprived districts and 70 non-deprived districts. When the country was redistricted in 2005-2006, 53 districts were labeled as deprived while 98 remained non-deprived.

16

As mentioned, the Capitation Grant Scheme was initiated in the deprived districts in

2004-2005 and launched country-wide to the remainder of districts in 2005-2006. The basic

school GER in the deprived districts exhibited a steeper growth rate after 2004-2005 bringing the

gross enrollment rates in deprived and non-deprived districts basic schools from roughly an 8%

margin to within less than 3% by 2006-2007. This is not the case, however, for net enrollment

rates. Once the Capitation Grant Scheme was initiated in the non-deprived districts in 2005-

2006, growth in the non-deprived districts outstripped growth in the deprived districts furthering

widening the gap between the two. At the junior secondary school level, the difference between

deprived and non-deprived is greater but the gap between the two also narrows after the initiation

of the Grant. Growth in enrollment seemed to spike initially in the gross enrollment ratio in

deprived districts with the initiation of the Grant narrowing the gap in gross enrollment rates

from 35% to 20% in 2006-2006. On the whole, the Grant seems to be associated with increased

educational opportunities for deprived, or under-enrolled children, in Ghana albeit only when

measured by gross enrollment. This suggests that the Grant may successfully be encouraging

parents to send their children to school but that many children outside of the official primary

school age range are enrolling in primary school, which could be placing large strains on the

system.

17

Figure 3: Primary GER and NER by District Deprivation Level

Figure 4: JSS GER and NER by District Deprivation Level

18

5.3. Trends in Gross and Net Enrollment Ratios by District Deprivation Level and Sex When breaking down the GER and NER by district deprivation level and sex, patterns

emerge from the data. Growth after the initiation of the Capitation Grant seemed to have the

most effect on the GER of deprived males as well as a larger effect on deprived females than

non-deprived females at the basic school level. A gap in GER for deprived versus non-deprived

males decreased from 11% in 2003-2004 to roughly 2% in 2006-2007. A similar narrowing was

seen between deprived and non-deprived females moving from 13% to 3%. At the JSS level,

growth spiked similarly for boys and girls in deprived districts in 2004-2005 and then leveled off

at a similar growth rate in the years following. The gap narrowed slightly in the gross enrollment

rates between deprived and non-deprived for both male and female.

Based on UNICEF data, Akyeampong et al. (2007) also report that the mean urban net

junior secondary enrolment rate in 2006 among girls was higher than that of boys by about 4

percentage points. By disaggregating these findings into welfare quintiles they find that among

children from the lowest welfare quintile the junior secondary enrolment rate among girls is

lower than that of boys; however, among children in the fourth and fifth welfare quintiles the

reverse is the case. Accordingly, they conclude that children from households in the lower

welfare quintile are likely to enter primary school at an older age and are also more likely to drop

out of school compared to children from households in higher wealth quintiles (Akyeampong et

al., 2007). Children from the wealthiest households were twice as likely to be in school as

children from the poorest households and three times more likely at the JSS level in 2003.

Through future analysis, we wish to discover if the Capitation Grant had an impact across

welfare quintiles similar to the one suggested by the narrowing of the gap between deprived and

non-deprived.

19

Figure 5: Primary GER by District Depravation Level and Sex

Figure 6: Primary NER by District Deprivation Level and Sex

20

Figure 7: JSS GER by District Deprivation Level and Sex

Figure 8: JSS NER by District Deprivation Level and Sex

21

Table 2: 2003 Net Enrollment Rates by Welfare Quintiles

Source: Akyeampong et al. (2007)

5.4. Trends in Gross and Net Enrollment Ratios by Region Figure 9 shows a map illustrating the different geographical positions of the regions in

Ghana. Table 3 presents an overview of core welfare indictors showing, by region, the

proportion of the population with access to safe drinking water, the adult literacy rate and the

unemployment rate. As can be seen, the Greater Accra region represents the most literate and

developed region (as evidenced by access to a safe water source) but also the region with the

most unemployment. This is not surprising as the capital of the country is located in this region

and sees a lot of migrant labor. The three northern regions (Northern, Upper West and Upper

East) represent the least literate and least developed regions in the country.

Figure 2: Regional map of Ghana

22

Table 3: Regional Core Welfare Indictors

Source: Core Welfare Indicators Questionnaire (CWIQ) Survey (1997), Ghana Statistical Service

The aggregate data mask large differences in basic school GER and NER among regions

as can be seen in Figures 10 and 11. All regions realized gains in enrollment. Gains were not

concentrated in the more developed, literate areas of the country. Furthermore, trends in

enrollment do not seem to be correlated with basic development indicators. The Ashanti, Brong

Ahafo, Central, Northern, Upper East and Volta regions exhibited steady increases in basic

school GER across the years although at different rates. All regions except the Greater Accra

and Upper West regions saw an increase in basic school NER from 2003 to 2007. The Greater

Accra region displayed a drop in GER and NER in 2005-2006 and then a spike in growth in

2006-2007. The Upper West region saw a marked increase in GER and NER from 2004-2005 to

2005-2006 and then a drop-off in 2006-2007. The Central Region saw the most growth in NER

moving from 66% to almost 97% in 2006-2007. The other regions saw similar patterns of

growth in their gross and net enrollment ratios with growth appearing to increase from 2003 to

2006 and then slow down slightly in 2006-2007 suggesting that the Capitation Grant Scheme

may have had an intital effect in spurring on enrollment but that gains in enrollment began to

23

level off shortly after its initiation. Patterns across regions in JSS GER and NER are similar.

These results can be found in Appendix III.

Figure 10: Basic School GER by Region

24

Figure 3: Basic School NER by Region

Figure 4: Enrollment by Grade 2002-2007

*

*Note: Capitation Grant was instituted as a pilot program to deprived districts in 2003-2004 and country-wide in 2005-2006.

25

As shown in Figure 12, the pattern of enrollment by grade (primary 1 through junior secondary

3) has remained consistent across the years from 2002 through 2007. Positive gains seem to

have been made in the early years of schooling yet this gains do not seem to continue through

JSS3 suggesting that the Capitation Grant has yet to improve access to education on a sustainable

basis. Having disaggregated population data would be helpful in analyzing GER by grade across

years to ascertain whether as children progress through schooling if their numbers stay constant.

Akyeampong et al. (2007) found a near constant decline in GER by grade irrespective of

year from 1998 to 2003. They concluded, therefore, that as children progressed through

schooling their numbers decrease almost at a constant rate pointing to inefficiencies in the

education system resulting from repetition and dropout.

Using cohort tracking analysis Akyeampong et al. (2007) were also able to understand

Ghana’s efficiency in moving children successfully through the school system and noted that the

Ashanti and Greater Accra regions (the two most populated urban regions in the country) showed

markedly different patterns then the rest of the country. In addition, grade 4 appears to be a

critical point in the early primary education cycle after which another significant wave of drop

out occurs (Akyeampong et al, 2007).

6. Discussion on Recent Trends in Education Access and Moving Forward From the analysis of enrollment trends presented, Ghana has experienced gains in gross

and net enrollment ratios in basic and junior secondary schools from 2002 to the present. While

it is not possible to infer a causal relationship between the Capitation Grant Scheme and

accompanying increasing in enrollment in primary schools at this time, the evidence that we do

have seems to suggest that the Scheme encouraged an influx of students initially. Anecdotal

evidence from informal interviews of officials at the Ministry of Education and Ghana Education

26

Service suggests similar results. Rates of enrollment after the initiation of the Grant continued to

grow subsequently but at lesser rate. The Grant seems to be associated with an increase in

enrollment of boys in schools as compared to girls and in spurring on enrollment in deprived

versus non-deprived districts. This could be due to the sheer fact that more children were out of

school in deprived schools to start with or could be due to the Scheme having an actual

incendiary effect in encouraging parents to send their children to school. While outside factors

that historically overlapped with the initiation of the Grant could pose a challenge to validity and

possibly led to the observed effect, these challenges are unlikely when looking at the data at such

an aggregated level.

A March 2006 “Impact Assessment of the Capitation Grant” carried out by officials at the

MoE on a sample of nine districts revealed that preliminary figures received from the districts

recorded an increase in the GER in the public basic schools. The Assessment also suggests that

students that had formerly dropped out of school returned as a result of the introduction of the

capitation grant, and that School Management Committees and Parent Teacher Associations

were supportive in urging parents to take advantage of the capitation grant to send their children

to school. On the other hand, the Assessment found that many classrooms were overcrowded

and that dilapidated conditions in some schools prevented an effective implementation of the

capitation grant policy and discouraged some parents from sending their children to school. The

assessment noted that schools faced issues in accessing the grant, which resulted in a delay of

planned activities. Bank charges also eroded the actual per student amount of grant that schools

received. Furthermore, the Assessment suggests that school leaders did not include teachers in

the SPIP process and that many school leaders were unqualified making it difficult for them to

understand the principles involved in the preparation and implementation of the SPIP.

27

Moreover, the Assessment suggested that the Ghana Education Service is weak in its ability to

monitor and ensure an effective use of the capitation grant as there are is no monitoring and

evaluation team at the central Ministry to ensure that the structures put in place at the district and

school level are working effectively.

Interviews with district education officials at the Accra Metro District Office replicated

the general assessment results revealing that the timeline and execution of the program activities

involved with the disbursement of the Capitation Grant are unpredictable. During 2006-2007,

for example, there was no clear timeline for the disbursement of funds and the third tranche of

funds (which should have coincided with the Spring semester) had yet to be released to districts

from the central Ministry as of the end of the following August of 2007. The district office was

not given any explanation for this delay. This finding was also confirmed by one of the top

officials at the Ministry; however, a reason for the delay was not given.

As mentioned in Section II, the funds provided by the Capitation Grant to schools should

be channeled towards the provision of teaching and learning materials, school management

(includes travel and transportation, stationery and sanitation), community and school

relationship, support to needy pupils, school based in-service training, minor repairs and the

payment of sports and culture levies. The District Assembly should be distributing funds to

schools for up school building, renovation and furniture related issues. Officials in the Accra

Metro District Office, however, reported that the Accra Metro District Assembly has failed to

provide this funding, which leaves schools in this area without the proper funds to pay for

infrastructure and building expenses. As a result, the Capitation Grant funds are being used for

school building, renovation and furniture related issues, which prevents them from going towards

critical teaching and learning areas.

28

In their 2007 analysis of access to education in Ghana, Akyeampong et al. (2007) assert

that while Ghana has made progress in providing basic education for all children, even after 15

years of reforms, gross enrollment rates have risen by only about 5 percentage points, and show

little sign of reaching 100 percent. They assert that the issue in Ghana is not about getting more

children officially enrolled, but rather is about reducing the leakage through drop out especially

in the early grades as the nature of enrollment patterns from grade to grade has remained

virtually unchanged even though enrollment in primary 1 has risen steadily. It is critical, they

argue, to improve school quality and tackle the efficiency problem in order to ensure high

enrolments continue through the grades. Moreover, neither the Capitation Grant nor education

policy does much to assure that all students who complete JSS can go onto senior secondary

school (SSS) as it provides no funding or free access clause to SSS. An analysis of participation

by household income and rural/urban locality indicates that children from poor households and

those in rural localities are less likely to continue their education to the secondary level

(Akyeampong et al., 2007).

In summary, there are two critical findings from our analysis:

• Providing per-pupil funding directly to schools seems to be associated with

increases in enrollment in Ghana. The Capitation Grant Scheme seems to be

associated with gains in enrollment in underrepresented groups in Ghana such

as those who live in deprived areas.

• Some regions (and accordingly some districts in these regions) are more

successful than others at realizing increased enrollment. Accordingly,

students living in one area of the country versus another are affected

differently by the resources made available by the Capitation Grant Scheme.

29

While the per-pupil allotment of funding may be too small to remove what appear to be

large financial barriers in many cases, differences in enrollment trends among different

population groups and regions prompt us to believe that the Grant is being utilized differently in

practice. The question of why some regions (and districts) as well as certain segments of the

population appear to realize gains in enrollment after the initiation of the Capitation Grant

Scheme remains unanswered. Our hunch is that certain districts implement certain

administrative structures and processes that are associated with better outcomes. As a top

official in the Ghana Education Service stated “We need to build capacity of district offices.

Participation in delivery and decision-making will make them [district offices and school

leaders] more responsible. Decentralization will affect them more and make them more

responsible and more concerned to do things.” The data suggests that differences in practice

exist across regions; however, we lack evidence on the nature of these differences.

The guiding assumption of education decentralization that putting responsibility in the

hands of local educational authorities will improve the quality of education by improving

decision making and allocating resources needs to explored. A central issue in the debate about

the merit of a decentralized school system is the extent to which local school and district leaders

are able to use their increased influence to promote more effective school management; however,

little research has investigated the implementation of decentralization at the local level (see De

Grauwe et al., 2005 for more). Field research that delves into local level education

decentralization implementation structures and strategies is critical if education decentralization

is to reap its potential benefits and impact the quantity and quality of education offered on a wide

scale. Accordingly, for a future study, we hope to investigate the impact of the Capitation Grant

Scheme on student enrollment and achievement across the country and delve into the process of

30

31

the implementation of education decentralization at the district and school level through case

studies on two regions of Ghana focusing four schools from three distinct districts. As Grindle

(2004) argues, “it matters how reforms are introduced, designed, approved, and implemented”

(p. 189). This future study will serve to study the latter – how decentralization reform is

implemented in Ghana such that some localities effectively implement decentralization structures

and processes while other localities fail in their implementation efforts.

32

Underlying Assumptions

Increasing the percentage of citizens who receive a basic education is necessary for economic development.

Eliminating user fees for basic education increases

student enrollment in basic education.

Initial Conditions

Some children do not enroll in basic school.

Required Inputs

Funding

Accountability guidelines and forms

Program Activities

Ministry publicizes program to public and trains school

and district officials on program components.

Parents enroll students in school.

Schools report enrollment figures.

Schools draft “School Performance Improvement

Plans” and submit to district offices.

Central government

disburses funding to districts based on school enrollment

figures.

Districts disburse money to schools.

Schools allocate and spend money to educate students.

Schools complete “Expenditure Returns Report” to account for

spending.

Figure 5: Capitation Grant Program Model

Program Assumptions

By providing basic schools with funding, schools will

not charge parents user fees.

Parents will enroll child in school if there is no user

charge for doing so.

Increased enrollment in schools will lead to increased educational attainment rates.

Outcomes

Increased student enrollment rates.

Constant or increased performance scores on

national exams.

Quality allocation and spending data.

Outputs

Student enrollment in schools.

Student performance scores on national exams.

School allocation and spending data.

Impact

Increased educational attainment rate in population.

Effective fiscal decentralization.

More educated citizenry.

Economic development.

7. Appendix I Decentralization Theory

Decentralization is the assignment of fiscal, political and administrative responsibilities

to lower levels of government. Decentralization is promoted by economists as mechanism to

facilitate the efficient production and provision of services through a market response to the

preferences of the individual. Political scientists focus on the benefits of transferring power to

local-level governments to encourage an effective, democratic and relevant delivery of local

goods and services. Public administrators seek to modify the hierarchical and functional

distribution of tasks, responsibilities, and power to sub-national units to improve the cost-

effectiveness of the delivery of goods and services. Decentralization can take many forms and

has several dimensions. Rondinelli (1989) explains that decentralization may be defined in terms

of the form (e.g. fiscal, political, administrative), the degree of power transferred (i.e.

deconcentration, delegation, devolution, deregulation/privatization) and the level (e.g. national to

sub-national, region to district).

The most common theoretical rationale for decentralization is routed in the principles of

fiscal federalism theory, which suggest that benefits lie in attaining allocative efficiency in the

face of different local preferences for local public goods (Musgrave, 1983; Oates, 1972).

Originally conceptualized in the context of industrialized nations, fiscal federalism suggests that

the central government should have responsibility for macroeconomic stabilization and income

redistribution functions while sub-national governments should play an important role in

allocation functions (Musgrave, 1959; Oates, 1972; Oates, 1999). Another strong theoretical

argument advanced in favor of fiscal federalism is that the preferences and needs of local citizens

are best known to the local governments that represent these citizens rather than the central

government. The reason given is that the proximity to local citizens increases available

33

information while the distance decreases both the information available to make good decisions

as well as their political accountability of decisions. Accordingly, in line with the

decentralization theorem, it is believed that maximizing overall social welfare requires varying

local outputs according to local preferences.

Education decentralization is defined as a complex process that changes the way in which

a school system approaches making policy, generating revenues, spending funds, training

teachers, designing curricula and managing local schools (World Bank, 2006). Education

decentralization is usually seen in the context of fiscal and administrative decentralization. The

decentralization of education has been promoted as one of the most important schemes to expand

education access, improve education quality and enhance efficiency in service provision and

financing around the globe (Cuellar-Marchelli, 2003). The belief that putting responsibility in

the hands of local educational authorities will improve the quality of education by improving

decision making and allocating resources more efficiently is the guiding idea informing the

decentralization of education (Carnoy 1995; Oates 1972; Wallis and Oates 1998; World Bank

1994 and 2004). In sub-Saharan Africa, in particular, over 25 countries have embarked on a

program of transferring authority and responsibility to the local level (Naidoo, 2002). Education

decentralization, in particular, offers an effective mechanism to investigate the transfer,

implementation and outcome of this local level responsibility.

34

8. Appendix II Education Demand and Supply Theory

There are several demand-side reasons that underlie low educational enrollment and

attainment rates and hinder the success of achieving universal basic education including high

opportunity costs, low returns to social and geographic immobility and uncompromising social

norms. First, low demand for education leads to low school enrollment. User payments will

prove ineffective in increasing enrollment when demand side influences such as high opportunity

costs, low returns to social and geographic immobility and uncompromising social norms are

present. This is particularly relevant to the poor who may be unable to pay for education when

fees are compulsory because of small incomes or inadequate credit markets. When user charges

are voluntary parents may not only be unable to pay them but may also be unwilling to face the

opportunity cost of schooling their children. Even when schools are free, parents may not want

to lose the forgone income from the child’s labor. Demand might also be low because parents

perceive future returns from education to be low for their children. Social norms may also

adversely affect the demand for education of children. For example, investment in girls’

education may be low when social norms dictate that girls marry young and marriage markets do

not put a premium on educated girls. At the same time, free access to publicly financed education

may not offer parents enough incentive to send their children to school if it does not offer a

future advantage in the labor market. Under the Progresa incentive-based welfare program in

Mexico, for example, poor families received income transfers from the central government,

conditional on the regular school attendance of their children. While average schooling duration

increased, the demand for schooling was fairly inelastic demonstrating such demand-side

constraints (Schultz, 2001).

35

Low school enrollment and educational attainment can also result from supply-side

influences when governments are unable or unwilling to provide funds for education.

Government revenue available for schooling may be constrained by a weak economy. Revenue

that is made available may be ineffectively distributed resulting in schools receiving inadequate

resources. For spending to be effective, the government must have efficient expenditure

management capacities, political will, and good governance. In Chad, schooling has been

financed by user payments collected through community organization efforts demonstrating the

value that poor parents can place on education. Thus, while net primary enrollment rates are low

they would be even lower if parent associations had not taken responsibility for paying teachers

and in some situations completely managing schools. Because financial and human constraints

in Chad make user payments the only means of funding for schools, eliminating them would

deprive a large segment of the school-age population the opportunity to go to school (Hillman

and Jenkner, 2004).

36

9. Appendix III JSS GER and NER by Region

Trends in enrollment in JSS are more similar among regions than in basic school22. The

Central region started with one of the highest JSS GER and NER in 2002 and saw steady growth

in its GER over the years and remarkable growth in its NER after 2004-2005 suggesting that this

region has been able to effectively translate the Grant into increased educational opportunities

for its children. On the other hand, the Eastern region started at roughly the same enrollment

rates yet its GER remained stagnant and its NER decreased and then saw a large jump in 2005-

2006. Further research is needed to understand why these two regions experienced such

different trends in enrollment following the iniation of the Grant. As shown in Table 3, the core

welfare indicators of the two regions are fairly comparable. The key finding to note among these

figures is the markedly different rates of growth among the regions. More follow-up research is

needed to understand why some regions are suceeding more rapidly at increasing education

opportunities while others are failing to do so.

22 These charts are included in Appendix III.

37

Figure 6: JSS GER by Region

Figure 15: JSS NER by Region

38

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