How effective are public-private partnerships (PPPs) at improving education in the developing world? This book, published by the World Bank, argues that PPPs can increase equity in education systems and improve education quality. In addition, such arrangements can make service delivery effective and expand possibilities for financing the education sector. Although few rigorous studies have been undertaken, early indications from the recent private education boom indicate that heightened efficiency, more choice and wider access result. Overall, better test scores seem to come from privately-operated institutions, even if they are publicly financed, and private management appears to be more efficient.
The World Bank has several years’ experience of investigating private sector participation in the provision of public goods. Recently completed and ongoing impact evaluations are now available, as well as a growing international literature and a framework set out by the World Development Report 2004. Many parts of the developing world continue to experience low rates of school enrollment, especially for low-income families, girls and indigenous peoples. Poor quality, inefficiency and lack of inclusiveness are also issues. In the PPPs explored here, government is responsible for policy and financing, while actual service delivery is contracted to private providers.
As many as seven different forms of contracting are currently in use internationally. For instance, some governments buy services such as teacher training and curriculum design, while others contract for actual management of schools. Vouchers are another controversial option deserving of consideration. Other findings are that:
- Countries are on a continuum in their use of PPPs, ranging from those which reject them entirely to those where education is publicly financed but privately operated.
- Heavier involvement by private interests in education increases overall expertise and capacity in the sector. There is an added benefit in PPPs’ ability to avoid operating restrictions such as fixed salary scales and rigid work rules.
- Policy changes and regulatory frameworks have a role to play in enabling private schools to thrive in developing countries.
- Although good design is crucial in PPP arrangements, actual implementation may be weak, exposing governments to the risks of fallout. Implementation can be improved by hosting a transparent and competitive bidding process for contracts, splitting purchaser and provider roles and emphasising communications and outcome evaluations.
The following recommendations should help in the conceptualisation of PPPs’ role in education, and in the improvement of PPPs’ performance:
- Performance standards should enable accurate and straightforward measurement of school quality and efficiency. Particular emphasis should be given not only to quantitative measures such as standardised tests, but also to qualitative ones, such as parent surveys and school inspections.
- Private schools must meet certain operating requirements and performance and curriculum standards. Only when such eligibility criteria are met should public funding be disbursed.
- Education ministries should reward innovation, including with monetary awards, and revoke subsidies when sanctions are appropriate.
- In some cases, governments should help private schools with capacity-building interventions before beginning voucher programmes.
- PPP programmes should fall under the authority of a specialised group of experts, who can manage funding to privately operated institutions and enforce standards.
