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The Role and Impact of The Role and Impact of Public-Private Partnerships Public-Private Partnerships
in Educationin Education
Harry Anthony PatrinosFelipe Barrera-Osorio
Juliana Guaqueta
The World Bank2009
75 million Children Out of School
Private Enrollment 1991-2003Private Enrollment 1991-2003
Source: UNESCO
113% 109%
12%
1%
76%
21%
52%
15%
-13%
-1%
18%
-5%
Africa Arab States Latin America Pacif ic South & EastAsia
Central Asia
Private Public
Rationale for Government Rationale for Government InvolvementInvolvement
• Externalities
• Capital market imperfections
• Agency concerns
• Equity
• Information asymmetries
Variety of InstrumentsVariety of Instruments
• Ownership/Delivery
• Funding
• Regulation/Information
Provision
Finance Private Public
Private
Private schools Private universities Home schooling Tutoring
User fees Student loans
Public
Vouchers Contract Schools Charter schools Contracting out
Public schools Public universities
Public-Private Partnerships Public-Private Partnerships (PPPs) in Education(PPPs) in Education
• Formal contractual arrangement• Involve public and private sectors• Outcome focus • Sharing risks/rewards, public & private• Recognize complementary roles
PPP Continuum and Coverage
0102030405060708090
100
Bangladesh Philippines United States Netherlands
Emerging Moderate Engaged Integral
Co
vera
ge
69%
9%5%
100%
Benefits of PPPsBenefits of PPPs• Increase efficiency• Improve service delivery• Secure specialized skills• Overcome public service restrictions• Permit quicker response• Achieve scale economies• Allow gov’t to focus• Increase access for under-served• Promote transparency
ConcernsConcerns
• Contracting out services is controversial– Fears of privatization; segregation
• But these are empirical questions: need evidence• Evaluate with valid control group & baseline• Clearly specify objectives, compare relevant outcomes • Randomization is gold standard; but not always possible• Still, need to over come selection bias• Other methods of randomization: entry, encouragement• Or eligibility criteria, difference over time, instruments,
matching
Effects of Different Types of Effects of Different Types of PPPs on Delivery FactorsPPPs on Delivery Factors
Private management
Vouchers Subsidies Private Finance Initiatives
Flexibility + + +
Quality Criteria
+ + +
Risk-Sharing + +
Competition +
Expected Effects of PPPs on Expected Effects of PPPs on Education OutcomesEducation Outcomes
Increasing enrollment
Improving outcomes
Reducing inequality
Reducing costs
Vouchers + + + +
Subsidies + +
Private Management and Operations
+
Private finance Initiatives
+ +
92 PPP programs in 47 countries92 PPP programs in 47 countries
……23 evaluations, 9 countries23 evaluations, 9 countries
Colombia
Concession Schools:Concession Schools:Bogotá, ColombiaBogotá, Colombia
A Public SchoolA Public School Concession Concession SchoolSchool
Concession Schools, BogotaConcession Schools, Bogota• Providers contracted
to manage public schools
• 25 schools serving 26,000 disadvantaged students
• Autonomous
• 15 year contract
• Designed to overcome problems faced by public schools
7,007
19,374
21,430
23,117
26,308
0
5,000
10,000
15,000
20,000
25,000
30,000
2000 2001 2002 2003 2004
En
rollm
ents
Concession Schools ImpactsConcession Schools ImpactsReduction in dropout rates, 1999-2003Reduction in dropout rates, 1999-2003
(% points)(% points)
Direct
Indirect
-2
-1.6
-1.2
-0.8
-0.4
0
Math
Reading
0
1
2
3
4
5
Concession Schools ImpactsConcession Schools ImpactsReduction in dropout rates, 1999-2003Reduction in dropout rates, 1999-2003
(% points)(% points)
ConclusionsConclusions
• Need more evidence, but positive effects
• PPPs can be tailored to country
• Not a panacea, but can play role
• Not just private sector that brings gains – regulatory environment has impact
• Policy framework important, thinking broadly about role of government
Policy Implementation IssuesPolicy Implementation Issues
• Resistance from certain stakeholders
• Need consultation
• Improve quality of contract, implementation
• Produce solid & credible evidence
Enabling Regulatory Enabling Regulatory FrameworkFramework
• Providers in national education strategy
• Criteria for private school operation
• School funding systems that integrate
• Effective quality assurance system
