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Public-Private Partnerships in Education Contracting Forms

Public-Private Partnerships in Education Contracting Forms. Harry Anthony Patrinos The World Bank 2010. 75 Million Children Out of School. Low Academic Achievement. Private. Social. 35. 26.6. 30. 25. 18.9. 19.0. 17.0. 20. 13.1. Returns to Education by Level.

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Public-Private Partnerships in Education Contracting Forms

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  1. Public-Private Partnerships in EducationContracting Forms Harry Anthony Patrinos The World Bank 2010

  2. 75 Million Children Out of School Low Academic Achievement Private Social 35 26.6 30 25 18.9 19.0 17.0 20 13.1 Returns to Education by Level • Private Enrollment 1991-2003 10.8 15 10 5 0 Primary Secondary Higher Latest estimates (97 countries)

  3. Premise Government’s Role Variety of Instruments Ownership/Delivery Funding Regulation/Information • Externalities • Capital market imperfections • Agency concerns • Equity • Information asymmetries

  4. PPPs can be defined as a contract that a government makes with a private service provider to acquire a specified service of a defined quantity and quality at an agreed price for a specified period

  5. Framework

  6. PPP Continuum Low PPP High PPP Integral Moderate Lacks Nascent Emerging Engaged Vouchers, Loans, Scholarships. Funding follows student. Public provides, finances, regulates education services Private schools Subsidies to private schools Contracts with private schools to provide a portion of education. Private Management of public schools 100% Public 100% Private

  7. 100% 69% 9% 5%

  8. Benefits of PPPs • Efficiency • Service delivery • Specialized skills • Overcome public service restrictions • Quicker response

  9. Concerns • Contracting out services is controversial • Privatization • Socioeconomic segregation • Poorer students left behind • But these are empirical questions • Base decisions on facts, not opinions • How to evaluate

  10. Issues • Resistance from certain stakeholders • Teachers and other employees • Civil service • Can block, severely delay, stifle reforms… • Consultation • Quality of contract design, implementation • Create credible evidence

  11. Evidence on Private School Choice

  12. Education Service Contracting:The Philippines

  13. Concession Schools:Bogotá, Colombia

  14. Private Education Provision and Public Finance: The Netherlands

  15. Thank you Harry Anthony Patrinos hpatrinos@worldbank.org

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