Y SST EMSAPPROAC O HF RBETE TREDUCAT IONREU S T LS H T EROLEOFTHEPRIVAE T SECO T RIN PROVD IINGBASC I D E UCATO INS ERVC IESN I KASOA,GHANA APIO L TSTUDYOF T H EWO RDB L ANKGROU P SS YTEMS APPROACHFO RBETTEREDUCAI TONREU S T LSS A BER ENGAGINGTHE PRV IATESECTOR Hue sinAbdul -Hamid,Donad lBaum ,L aua r L ewi, s OniLuk s-t Sover, and AnnaMara iTammi THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Table of Contents Executive Summary ................................................................................................................................................................. 3 1. Situation .......................................................................................................................................................................... 3 2. Findings ........................................................................................................................................................................... 5 3. Recommendations .......................................................................................................................................................... 8 Situating the Ghanaian Education Context ........................................................................................................................... 12 In-depth Analysis of the Education Market in Kasoa, Ghana ............................................................................................... 21 The Regulatory Environment ................................................................................................................................................ 36 Budgetary Implications ......................................................................................................................................................... 42 Recommendations ................................................................................................................................................................ 47 1. Safeguarding access ...................................................................................................................................................... 47 2. Improving quality .......................................................................................................................................................... 49 3. Ensuring equity ............................................................................................................................................................. 51 4. Delivering cost efficiency .............................................................................................................................................. 52 5. Increasing data availability ........................................................................................................................................... 53 Establishing Priorities for Policy Recommendations............................................................................................................. 55 Appendix 1. Private Sector in Kasoa—Methodological Approach ........................................................................................ 56 Appendix 2. Regulatory Environment—Methodological Approach ..................................................................................... 58 Acknowledgements ……………………………………………….……………………………………………………………………………………………………… 61 References ……………………………………………………………………………………………………………………………………………………………………. 62 SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 2 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Executive Summary: Pilot Study areas: as a share of all enrollments in primary schools, the private sector accounted for 30 percent and 27 1. Situation percent in the Greater Accra and Ashanti regions, respectively, compared to less than 7 percent in the Despite significant government investments in the three regions in northern Ghana (Ghana MOE 2012). public education system, population growth and Figure 1. Map of Ghana migration have led to an undersupply of school places, especially in urban centers, leading to an increase in private education enrollments in Ghana. Ghana has nearly doubled enrollment at the primary and junior high school levels since the introduction of free and compulsory universal basic education. Ghana’s primary net enrollment rate of 86.8 percent in 2013 is still slightly below the average for lower-middle-income countries, which was 87.3 percent. Its net rate of secondary enrollment (including junior and senior high school), 51 percent, is also lower than the 58 percent average for lower-middle-income countries (EdStats). Ghana’s public spending on education is comparable to that of other middle-income countries and the government is currently focusing its attention on upper secondary education (senior high school), with plans to build more schools to increase access. Source: Ghana MOE (2012). Within the private, or non-state, education sector, enrollment rates in primary education have more than Rising enrollment rates have not been accompanied by tripled since 1991; they have more than doubled in lower gains in student learning; some parents are choosing and upper secondary education between 1999 and 2013. private schools due to their perceived higher quality. As of 2014, 23 percent of primary school students were educated in private schools, while 16 percent of Education assessments show low levels of learning in secondary school students attended a private junior or both primary and junior high school. According to the senior high school (EdStats). The strong growth in private Early Grade Reading Assessment (EGRA) carried out in education enrollments is closely related to rapid 2013, the vast majority of public school students could population growth: Ghana’s population increased from not read with comprehension in either a Ghanaian 19 million in 2000 to 25 million in 2012. Estimates are language or English by the end of grade 2 (Kochetkova that it will reach nearly 30 million by 2020 and 45 million and Brombacher 2014). This poor performance persists by 2050 (Darvas and Balwanz 2014). This growth will in junior high school. Since eighth-graders in Ghana’s especially impact urban areas, which are expected to public schools began to participate in TIMSS (Trends in grow by 10 percent between 2010 and 2025 (UN DESA International Math and Science Study) a decade ago, the 2013). The distribution of students enrolled in private results have consistently placed the country at the schools reflects the concentration of population in urban extreme low end of international rankings in both math SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 3 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 and science. While Ghana has improved over time on students from the wealthiest households nearly three TIMSS, its scores remain below the international average times more likely to access secondary education than and low benchmark. their peers from the lowest wealth quintiles: 62 percent versus 22 percent (Ibid.). While robust impact evaluations of private school performance have not been conducted in Ghana, one In spite of more limited access to education for poorer study found that parents cite quality (i.e., national students, private schools are also serving the poorest in examination scores, class sizes, teacher attendance) as a society. Based on the Ghana Living Standards Survey of reason for sending their children to private schools 2005, 11 percent of poor students and 5 percent of (Heyneman, Stern, and Smith 2011). In the Ghana extremely poor students were enrolled in private National Education Assessment of 2013, students in schools, both across Ghana and in rural areas private schools performed better in math and English, in (Akyeampong and Rolleston 2013). However, terms of raw scores, in both grades 3 and 6. More than affordability is a challenge. Household surveys carried 80 percent of students in private schools reached out in the central region of Ghana suggest that parents minimum competency in math in grades 3 and 6, while may spend up to 30 percent of their income to send nearly 50 percent in public schools failed to achieve children to private schools (Akaguri 2011). minimum competency in either grade. However, the higher performance of private schools may be due to the The education system in Ghana is currently facing fiscal students they select rather than the quality of education pressures due to low levels of accountability, inefficient that they deliver. More research is needed in this area. allocation of resources, and plans to expand upper secondary provision. Children from poorer households are less likely to attend school and poorer districts are less likely to The Ghanaian education systems struggles with deliver high-quality outcomes, leading some parents to inefficiencies that are not unique to Ghana, yet could choose private schools even though they face a potentially impact the country’s ability to reach its substantial financial burden to do so. education and economic goals. Data from several studies suggest that teachers in Ghana are absent an estimated Despite gains in enrollment for the poorest Ghanaians, 43 school days per year and are behind on the curriculum too many students still fail to access basic education by 40 days (Abadzi 2007; Darvas and Balwanz 2014). services. Estimates show that around 470,000 children of Although the Ghanaian government has made progress primary school age are currently out of school in Ghana. in improving equitable access to education through new Large gaps in access remain for the poorest students and programs and policies, government resources are for children living in rural areas, particularly in the three currently unevenly distributed across regions in terms of regions of northern Ghana. Whereas 11 percent of spending per pupil as well as the allocation of teachers. primary-school-aged children in Ghana overall do not Ghana currently has a budget deficit, with teacher have physical access to a primary school; this figure rises salaries forming a large part of recurrent costs in to 30 percent in the northern regions (Darvas and education. The country also plans to expand education at Balwanz 2014). Three times more children from the the senior secondary level to meet the needs of the poorest income quintile were out of primary school than economy. The construction of 200 schools will put their peers from the wealthiest income quintile: 40 further pressure on government budgets. percent and 12 percent, respectively (EdStats). In junior and senior high school the situation is similar, with SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 4 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 2. Findings government schools have dramatically lower staff costs than do public schools in Kasoa. On average, a teacher in High levels of migration and a severe undersupply of a government school in Kasoa receives a monthly salary public education services in Kasoa have led to a that is five times that of a teacher in a non-government substantial increase in the supply of private schools. school: GH₵ (Ghanaian cedi) 892 vs. GH₵ 151. 1 In government schools, the annual staff cost per-student In Kasoa, a fast-growing market town just outside of amounts to GH₵ 467, while at private schools, it is Accra, the private sector is responding to rapid GH₵ 124. Due to lower operating costs, the private population growth and an undersupply of public sector perhaps has an advantage in responding quickly to education services. Between 2000 and 2010, Kasoa’s the demands of the market. Between 2000 and 2012, the population doubled in size, from 34,719 to 69,384 private school sector in Kasoa added, on average, 14 new (Ghana Statistical Service 2013). By 2010, only seven primary and secondary schools per year. government schools operated in the locality, making the population-to-public school ratio 9,912:1. However, the The majority of private schools in Kasoa may not be World Bank’s recent Global Positioning System (GPS) affordable for the poorest students, especially at higher survey of the education market in this area provides levels of education. evidence that the 2013 population—and thus the population-to-public-school ratio—may in fact be much Data from Kasoa provides evidence that consumption of larger than even this estimate indicates. The World Bank private education services incurs substantial financial census in Kasoa identified 211 public and private schools costs for households, especially the poorest. Recent with a total student population of 50,539. Such a large research on private schools for the poor has established student body hints at a population likely (much) larger a defined threshold for what constitutes a “low-cost” than 69,384. private school. Tooley and Longfield (2013) suggest that, since households in Sub-Saharan Africa tend to spend Private schools in Kasoa have fewer students and between 5 and 10 percent of their annual income on smaller class sizes than do public schools, suggesting education expenses (Lewin 2007), private schools that spare capacity; private schools are also operating at a charge less than 10 percent of household income for a substantially lower cost than public schools. family at the poverty line should be classified as low- cost. 2 Using this approach, all schools in Kasoa charging On average, private schools tend to be smaller and have less than GH₵ 98 per student per year would be fewer students than public schools in Kasoa, suggesting considered “low-cost.” By this definition, there are 19 that they may be operating with spare capacity. The low-cost private schools in Kasoa (9 percent of all private average public school has four times the number of schools). students overall and twice the number of students in each class as does the average private school. Moreover, Under the assumption that a medium-cost school the pupil-teacher ratio is 12:1 in private schools, but over charges between 10 and 20 percent of household income double that in government schools. The majority of (Tooley and Longfield 2013), the range for medium-cost private schools in Kasoa are financially viable, with one- schools is between GH₵ 98 and GH₵ 196 in per-student fifth of providers earning a profit. Overall, non- fees per year. There are 37 private schools (18 percent of 1The paper uses a conversion rate of US$ 1.00 = GH₵ 2.02, effective as of July 2 Schools must charge less than 10 percent of household income to enroll all 1, 2013, when data colection took place. children in a household (the average family in Ghana living below the poverty line has three children). SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 5 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 all private schools) in Kasoa that charge fees within this The government of Ghana regulates the private "medium-cost" range. Roughly 73 percent of all private education sector, but provides limited financial schools in Kasoa are consequently “high-cost,” that is, support. they charge more than GH₵ 196 in per-student fees per year. Education Act 778 outlines the regulation of independent private schools in the country and includes Private tuition costs also rise considerably between basic a provision that the government will support the private and upper secondary education, from an average of GH₵ sector by providing textbooks, examination fees, and in- 212–299 in primary and junior high school to nearly GH₵ service teacher training. However, no stipulations 500 in senior high school. This means that schooling determine which schools should or should not receive options for the poorest students become increasingly support. In addition, there are no legal standards limited at higher levels of education. requiring schools that receive financial or material support to operate differently than unfunded schools. There are also equity concerns about public schools: the poorest parents are still paying substantial out-of- Private schools are given a high degree of autonomy, pocket expenses for their children to attend public but held to very few quality-based accountability schools. standards. Due to Ghana’s legal framework and school funding Private independent schools have a high degree of mechanisms, parents do not pay tuition fees at public autonomy because policies that outline the regulatory schools at either the primary or junior high school level environment for these schools are lacking. 3 Therefore, in Kasoa. Despite the fact that basic education in Ghana Ghana’s private independent schools have autonomy in is supposed to be free for all students, there are non- appointing, dismissing, and deploying teachers, as well tuition costs in Kasoa’s public schools that are as in determining salary levels, teaching methods, and burdensome for the poorest households. An average class sizes. The only policy that limits their autonomy is public school in Kasoa charges GH₵ 50 per year for extra the requirement that at least one-third of teachers in all classes (i.e., supplementary and voluntary tutoring private schools be professionally certified, with an lessons), as well as a registration fee of GH₵ 45 per year. official teacher training diploma. However, this high The average annual non-tuition costs at both public degree of autonomy is not balanced by high levels of primary and junior high schools in Kasoa add up to 100 accountability. Also, confusion about the inspection Ghanaian cedis. Overall, private education costs to regime persists. All schools are supposed to be inspected parents are 2.5 times public education costs. While the by the National Inspectorate Board (Ghana 2008), but cost of private schooling for the poorest families is schools report being inspected by a number of different approximated at 15 percent of total household income, agencies. Also, there are currently no sanctions for hidden costs at public schools exist and add up to around underperforming private schools. 6 percent. Such costs may bar the poorest families from accessing education services. Parents lack information on the quality of schooling. No policies specifically outline the right of parents to receive information on the quality of schooling; this 3 Independent private schools are owned and operated by nongovernment providers and are financed privately, typically through fees. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 6 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 hinders their ability to make informed choices. Although The government’s ability to effectively regulate the the country administers standardized exams and system is hindered by lack of current data. inspects schools, parents are not guaranteed access to the results. A census every 10 years may not accurately reflect current population and migration trends, leaving the A lack of information on certification standards restricts government unable to effectively plan for the education market entry, potentially inhibiting the private supply system. The government may not, for example, be aware of education. of the expanding number of private schools in some areas. Current data may also not capture all private The operating requirements for independent private institutions in operation, particularly if they are new and schools in Ghana are more restrictive in practice than in not yet certified. The experience of Kasoa provides policy. The Education Act of 2008 outlines few minimum evidence of this situation. In addition, lack of official data certification standards for the operation of a private may overestimate or underestimate the out-of-school school. The document, “Certification Guidelines Private population. Current estimates show 470,000 children of Schools,” is currently being renewed, but surveyed primary-school age who are out of school. This number schools reported the need to meet additional may be far higher if population growth and/or migration requirements beyond those outlined in the Education rates are above national estimates, or far lower if Act in order to be certified. Previous certification unregistered private schools are educating more children guidelines were not made publicly available; rather, they than anticipated. were available only upon request. Given current budget deficits, the government cannot Discrepancies exist between policy and policy afford to be the sole provider of education and should implementation. Private school associations question target resources to the poorest households and government support for the implementation of new districts, while leveraging the private sector to achieve policies. cost efficiencies. There are a number of discrepancies between policy and Various costing scenarios show that the government actual implementation on the ground. For instance, 24 faces difficult financial decisions in addressing the percent of schools in Kasoa are currently unregistered. following priorities in education: (i) meeting the demand Only 78 percent of registered schools and 50 percent of for schooling of a growing population, (ii) improving the non-registered schools take part in mandatory quality of the system, (iii) ensuring the poorest student standardized exams. And only 55 percent of schools have equitable access to quality education, and submitted a required school improvement plan following (iv) fulfilling its commitment to expand the number of an inspection. One of the most successfully implemented senior high schools. The government does not have the policies may also hinder equity: schools select students necessary budget to meet all these objectives in the based on ability, which may favor more affluent short term due to the current budget deficit. For students. The government meets frequently with the example, transferring all students currently attending private sector, but private school associations question private schools in the five fastest-growing cities to public the quality of policy dialogue, particularly government schools would cost approximately GH₵ 122 million support for the implementation of new policies. annually, with infrastructure costs estimated at GH₵ 660 million. Parents also pay significant out-of-pocket expenses. Conditional cash transfers or school subsidies SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 7 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 that would protect poorer families from such 0.1 standard deviations and reduce fees by almost 20 burdensome financial obligations would cost the system percent. The largest learning gains were for initially low- around GH₵ 200 million per year. Reaching the 470,000 performing (below median baseline test scores) private out-of-school primary-age children through public schools (Andrabi, Das, and Khwaja 2009). Private school service provision would cost an estimated GH₵ 230 associations could play a key role in developing million per year. Alternatively, by paying private schools partnerships between government and private schools. to provide these services through a voucher program, Greater transparency of school certification standards the government could cut the public cost by more than and processes could attract new providers into the 40 percent, to GH₵ 125 million per year.4 market. Expanding senior secondary education by building 200 Recommendation 2: Improving quality additional schools would cost an estimated GH₵ 2.6 billion in infrastructure costs. The construction of senior a. Strengthen the implementation of quality assurance high schools itself represents a significant financial mechanisms in all schools. burden. The government may therefore wish to consider private finance initiatives to build, manage, or maintain On average, students perform better in schools with the infrastructure of senior high schools. higher levels of accountability to the state (Abdulkadiroğlu et al. 2011; Carnoy and Loeb 2002; 3. Recommendations Woessmann et al. 2007; Hanushek and Raymond 2005). Current inspection arrangements need to be Recommendation 1: Safeguarding access strengthened. Sanctions could be introduced and administered by the National Inspectorate Board to The government need not be the sole provider of ensure high-quality delivery in all schools. Standards for education services, but in response to rapidly growing private schools should be based on student learning and urban areas, should play a stewardship role and teacher performance outcomes, rather than inputs such strengthen the current regulatory environment. as infrastructure, teacher certification, class size, etc. The government does not necessarily need to be the sole b. Establish partnerships between high-performing and provider of schools, but must ensure effective regulation low-performing schools to improve quality across the of non-state schools. The private sector is playing a system. critical role in expanding access to education and is also reducing the fiscal burden on the government. The The government of Ghana could create a network for government needs to strengthen and enforce the school-to-school learning in order to deliver higher- existing regulatory environment for private independent quality education for all students. Ghana could leverage schools by ensuring parents can make informed choices high-performing schools (public and private) to mentor on school selection. This could include expanding school lower-performing schools (public and private). Peer-to- report cards to non-state schools, using measures similar peer learning often benefits both the mentor and the to those introduced in public schools to ensure mentored. Many countries are leveraging school-to- comparability. For example, evidence from Pakistan school learning in order to raise standards in all schools. shows that school report cards can improve learning by Relationships are sometimes facilitated by the 4 These estimates are based on the comparative operating costs of public and private schools in Kasoa, Ghana. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 8 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 government, while in other cases schools themselves management, or maintenance of infrastructure, take the initiative to learn from their peers. arrangements that have been leveraged by many countries. However, the design and procurement Recommendation 3: Ensuring equity process, as well as the capacity of the government to provide effective oversight, are key to ensuring that Improve equity and efficiency by targeting resources to program goals are met. under-resourced households and locations. Recommendation 5: Increasing data availability Parents from lower socioeconomic backgrounds are paying a substantial proportion of their incomes for their a. Encourage more rigorous evaluations to determine this funding to student outcomes can be a positive the impact and cost of private sector delivery and pilot mechanism for driving up the quality of service delivery. new public-private partnership (PPP) models to Parents from lower socioeconomic backgrounds are determine effectiveness before scaling. paying a substantial proportion of their incomes for their children to attend school (both public and private). The new educational programs in Ghana recommended Additionally, in many deprived areas, there is a lack of above, such as conditional cash transfers, vouchers, and high quality instruction; in some places, few schools exist government-funded private schools, should be piloted at all. Redistributive mechanisms can protect poorer and evaluated using techniques that can accurately students and increase equity in educational identify their impact. The relative quality of education opportunities. Targeting resources to the most under- provided by public and private schools can be most resourced households and geographic locations can offer accurately assessed using these methods. Pilots form a substantial boosts in equity, quality, and efficiency in the sound basis for decisions on whether or not to scale up a education system. Such targeting can include project (Duflo 2004). Moreover, such evaluations can scholarships, vouchers, or direct cash infusions for provide accurate information on the costs of individual poorer students. Making these funds available for use in education interventions. both public and private schools would provide incentives for new providers to enter the market, thus increasing b. Improve national data availability on the number and the available supply of education services. Depending on location of schools and survey parents on their reasons the circumstances, government funding for private for choosing schools. schools can be an efficient education investment; linking this funding to student outcomes can be a positive The results from Kasoa highlight high rates of migration mechanism for driving up the quality of service delivery. and indicate that the private sector’s role is often underestimated because many schools are unregistered. Recommendation 4: Delivering cost efficiency The government plans to engage in a countrywide GPS mapping of schools. Careful consideration should be Private finance initiatives could be used to mobilize given to including private schools in the survey, private sector resources and meet infrastructure needs particularly those that are currently unregistered. The at the senior high school level. government’s ability to increase its information on where private schools currently operate and match this The private sector could also be leveraged to help information with migration and population trends will support the building of additional senior high schools. require much greater dialogue between the government Private finance initiatives (PFI) involve the construction, and the private sector, as well as a more holistic view of SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 9 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 the education system. The government should also allow the government to ensure better education to consider surveying parents to find out more about the meet the needs of its citizens. factors that determine their choice of schools. This will Table 1. Summary of SABER Goals and Private Education Provision in Ghana Situation Findings Recommendations • High levels of migration and a severe undersupply of public education services in Kasoa has led to a substantial increase in the number of private schools. • Private schools in Kasoa have fewer students and smaller class sizes than do public schools, suggesting Despite significant spare capacity; private schools also operate at a government investments substantially lower operating cost than do public Recommendation 1: in the public education schools. The government need not be Access system, population growth • Parents have difficulty accessing high-quality the sole provider of education and migration rates have schooling due to a lack of information on the quality services but, in response to led to an undersupply of of schooling. New providers are hindered from rapidly growing urban areas, 1. school places, especially in entering the market and expanding access due to lack should play a stewardship role urban centers, leading to of information about certification standards. and strengthen the current an increase in private • The government currently provides limited support to regulatory environment. school enrollments. private schools by supplying textbooks and covering examination fees. Expanding this support by providing additional per-student funding in the fastest-growing areas of the country would significantly add to the government’s fiscal burden and is not sustainable. Rising enrollment rates have not been Recommendation 2a: accompanied by gains in Strengthen the student learning. Students • Private schools are given a high degree of autonomy, implementation of quality in private schools but this is not balanced by a high degree of assurance mechanisms in all outperform public school accountability. schools and introduce students on national Quality • Discrepancies exist between government policies on sanctions for schools that do assessments; although quality assurance (e.g., certification, participation in not adhere to them. their student populations national exams, submitting school improvement could differ substantially. 2. plans) and the implementation of those policies, Recommendation 2b: There remains significant hampering the ability of the government to leverage Establish partnerships space for improved private schools to improve accountability and quality between high-and low- learning in both sectors. across the system. performing schools to improve quality across the Parents perceive private system. schools to be of higher quality. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 10 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Children from poorer • The majority of private schools in Kasoa may not be affordable for the poorest students, especially at Recommendation 3: households are less likely higher levels of education. Improve equity in the current to attend school and • There are also equity concerns about public schools: system by targeting resources poorer districts are less Equity the poorest parents still pay a substantial proportion to the poorest through likely to deliver high- of their incomes in out-of-pocket expenses for their vouchers and/or conditional quality outcomes, leading children to attend public schools. cash transfers for poorer some parents to choose 3. • One of the most successfully implemented policies households, or establishment private schools even may also hinder equity. The ability of schools to select of government-funded private though they face a students based on ability may hinder equity, as it may schools in low-performing and substantial financial favor more affluent students. undersupplied areas. burden to do so. The education system in Recommendation 4: • Private schools perform at a significantly lower Cost efficiency Ghana is currently facing Private finance initiatives operating cost than do government institutions: per could be used to mobilize additional fiscal pressures student, the annual cost of teaching and non-teaching due to low levels of private sector resources and staff is three times higher in government than in non- reduce current fiscal burdens accountability, inefficient government schools. allocation of resources, on the government, • The private sector has been able to rapidly expand to particularly with respect to and plans to expand upper 4. meet rapidly growing demand for education. expanding infrastructure at secondary education. the senior high school level. Recommendation 5a: There is insufficient Encourage more rigorous information to draw evaluations to determine the conclusions about the impact and cost of private Data collection quality of services in sector delivery and pilot new private schools and how • The government’s ability to regulate the system and PPP models to determine they might compare with develop effective policies and programs is hindered by effectiveness before scaling. public schools. Likewise, not enough information is a lack of current data. Recommendation 5b: available on the number Improve national data 5. and location of schools, availability on the number and nor on the drivers of location of schools and survey school choice for parents on their reasons for households in Ghana. choosing schools. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 11 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Situating the Ghanaian Education Context increased from 2.5 million in 2000 to 4.5 million in 2012. Enrollment in junior high school similarly increased from This section provides an overview of Ghana’s progress in 0.8 million to 1.43 million during the period 2000–2011 terms of educational access, the quality of education (Ibid.). Between 1990 and 2010, average years of received, the equity of the system with regard to both schooling for those over the age of 15 increased by nearly access and quality, and the efficiency of the system in 1½ years: from 5.9 to 7.3 mean years of schooling expanding access and service delivery. The section pays (EdStats). particular attention to the fiscal sustainability of the system over the next decade, taking into account the Despite these gains, Ghana’s secondary net enrollment goals of improving current outcomes and expanding the rate of 51 percent is below the lower-middle-income system at the secondary level. It discusses the role of the country average; the primary net enrollment rate of non-state sector in its broadest sense in Ghana—non- 86.8 percent is on par with the average for that same governmental organizations (NGOs), faith-based group of countries. operations, private businesses, and community cooperatives—as well as the role of the private sector in The country raised its primary net enrollment rate from extending enrollment and delivering quality education. 61 percent in 1999 to 86.8 percent in 2013 (figure 2); net The existing evidence on the impact of the private sector enrollment in lower and upper secondary education, in Ghana, albeit small, is also examined. taken as a whole, increased from 35 percent in 1999 to 51 percent in 2013 (figure 3). Both figures were above Despite significant government investments in the the Sub-Saharan African average, but secondary public education system, population growth and enrollment was below the average for lower-middle- migration have led to an undersupply of school places, income countries (figure 3). Ghana’s net primary especially in urban centers, leading to an increase in enrollment is nearly on par with that of other lower- private sector enrollments. middle-income countries, of which the average is 87.3 percent (EdStats). Ghana has nearly doubled enrollment in primary and Box 1. Key Terms Used in this Report junior high schools since it introduced free and compulsory universal basic education. Basic education refers to preprimary, primary school, and junior high school in Ghana. Since the late 1990s, Ghana has made significant Secondary education refers to both junior and senior high progress in improving access to education. Only 15 years school. ago, more than one-third—or 1.6 million—of all primary and lower secondary school-age children in Ghana were Private and non-state are used interchangeably to describe out of school. Within a decade, this number had dropped schools that are owned, operated, and/or funded privately by 30 percent, to 1.1 million children. Since the (i.e., not public schools). Non-state providers can include introduction of the Free and Compulsory Universal Basic community, NGOs, faith-based, and for-profit providers. Education (FCUBE) reform in 1995—supported by school capitation grants, which since 2005 have covered the cost of student user fees—enrollment in basic education has nearly doubled, from roughly 3.5 million students in 1999 to nearly 7 million students in 2010 (Darvas and Balwanz 2014). Enrollment in primary education SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 12 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Figure 2. Primary Net Enrollment Rates for Ghana, Sub- private provision is closely connected to the boom in Saharan Africa (SSA), and Lower-Middle Income Countries, access that has taken place in low-income nations over 1999–2013 the past two decades: primary net enrollment as a 100 percentage of total primary enrollment increased from 95 55 to 80 percent between 1990 and 2010 (Ibid.). The Lower-middle Ghana 90 private education sector in Sub-Saharan Africa reflects income 85 countries this global trend: private enrollment rates at the primary 80 SSA level increased from 11 percent in 1999 to 17 percent in 75 70 2011 (figure 4). At the secondary level, private 65 enrollments increased from 14 percent in 1999 to 18 60 percent in 2011 (EdStats). Ghana’s growth in private 55 primary and secondary enrollment (that is, the 50 proportion of students being educated in non- 1999 2001 2003 2005 2007 2009 2011 2013 government schools) slightly surpasses the overall global Source: EdStats. and Sub-Saharan African trends, with impressive growth over the past three decades. Figure 3. Secondary Net Enrollment Rates for Ghana, Sub- Saharan Africa (SSA), and Lower-Middle Income Countries, Figure 4. Percentage of Primary Enrollment in Private 1999–2013 Institutions—Ghana, Sub-Saharan Africa, World 100 25 90 Lower-middle Ghana 80 income 20 70 countries Ghana International 15 60 average 50 SSA 10 40 SSA average 30 5 20 10 0 1999 2001 2003 2005 2007 2009 2011 2013 2015 Source: EdStats. Source: EdStats. Note: Data for Ghana is unavailable for 2011; to show the 2013 trend, 2015 data was included. The private sector has responded to growth in Ghana’s increased private sector enrollment follows population and migration, particularly in urban areas. the global and Sub-Saharan Africa trends. As outlined above, private enrollments in Ghana more In recent years, the private education sector has grown than tripled at the primary level between 1991 and 2013. significantly around the world, largely in response to In 2011, there were 5,292 private primary schools in the demand from students, parents, and communities. From country according to official statistics (Ghana MOE 1990 to 2010, private enrollment as a percentage of total 2011). In junior and senior high school, the share of primary enrollments in low-income countries doubled, private enrollment more than doubled over the past 15 from 11 to 22 percent (Baum et al. 2013). This growth in SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 13 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 years, from 7 percent in 1999 to 16 percent in 2013 compared to less than 7 percent in the three regions of (EdStats). northern Ghana (Ghana MOE 2011). However, current data may not capture all of the private institutions The private sector is also an important contributor of operating, particularly if they are new and yet to be education services at the pre-primary level in Ghana. certified. A study looking at private schools in Ga, one of Although pre-primary schooling falls outside the scope of Ghana’s roughly 140 districts at the time, found that 65 this study, box 2 provides information from a case study percent of students were enrolled in private schools in of this education market in Ashaiman, Accra. that district (Tooley and Dixon 2005). In areas of Ghana with rapidly growing populations, parents may choose a Box 2. Preschools in Ashaiman, Accra private school out of necessity if available places at Share of private sector preschool services public institutions have not kept pace with demand. Education services at the pre-primary level in Ghana are largely provided by the private sector, except for The demands on infrastructure and social services will kindergarten. Household surveys carried out by continue to grow. Population projections suggest that Innovations for Poverty Action (2013) in Ashaiman, a town with its current 2.2 percent annual growth, Ghana’s in Accra, found that an estimated 91 percent of preschool population will increase from 25 million people in 2012 students attend a private preschool. to nearly 30 million by 2020 and 45 million in 2050 (EdStats; Darvas and Balwanz 2014). This growth will Perceptions of quality The study found strong evidence that parents perceived particularly impact urban areas, which are expected to private preschools to be of better quality than public grow by 10 percent between 2010 and 2025 (UN DESA preschools, and expensive private schools to be better 2013). In some cities, annual population growth is even than low-cost private schools. higher than 10 percent. For example, the average annual growth rate between 2000 and 2010 in the city of Affordability Amanfrom was a staggering 83 percent (table 2). In Over 60 percent of parents chose preschools based on absolute terms, the population of the city has increased proximity or cost, although factors such as teacher quality nearly ten-fold. Meanwhile, in Mandela, annual growth were important. On average, parents knew of 3.6 averaged 63 percent, making it the second fastest- preschools that their child could walk to. growing city in Ghana (table 2). Registration of schools Some 23 of the 24 private schools in the sample said that they were registered with either Ghana Educational Services or the Ashaiman Municipal Council. There seems to be a relatively high level of government oversight of preschools, though public schools were both more likely to have been visited in the last year and, if visited, were visited more often. The distribution of students enrolled in private schools varies across Ghana, with much higher enrollment rates in urban areas: private enrollment as a share of total primary enrollment stood at 30 percent and 27 percent in the Greater Accra and Ashanti regions, respectively, SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 14 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Table 2. Ghana’s Fastest-Growing Cities between 2000 and Figure 5. Reading Comprehension: Percentage of Pupils 2010a Scoring Zero, by Language and Region, Grade 2 Average On average, 90% of students score zero 100 2000 2010 annual City population population growth 80 60 Amanfrom 12,803 119,467 83% 40 Mandela 8,458 61,880 63% 20 Budumburam 18,713 50,560 17% 0 Gbawe 28,989 69,356 14% Hohoe 35,277 73,641 11% Ghanaian language English Kasoa 34,719 69,384 10% Source: Kochetkova and Brombacher (2014). Source: Ghana Statistical Service (2013). Note: a. See Section 2.A. for details on estimated population calculations. This poor performance persists in Junior High School. Since eighth-graders in Ghana’s public schools began to Given that rising enrollment rates have not been participate in TIMSS (Trends in International Math and accompanied by gains in student learning, parents may Science Study) a decade ago, the results have be choosing private schools because they perceive that consistently placed the country at the extreme low end private schools provide a better quality of schooling. in both math and science in a global comparison (figure However, this perception has not been validated by 6). empirical evidence. National education assessments suggest low levels of Figure 6. Math Performance of Lower-Middle-Income learning from early grades through junior high school. Countries on TIMSS 2011 (standard deviations below international mean) According to the Early Grade Reading Assessment (EGRA) Yemen Ghana Honduras Indonesia Georgia Armenia Ukraine carried out in 2013, the vast majority of public school 0 students could not read with comprehension in either a -0.5 Ghanaian language or English by the end of grade 2 (figure 5). Furthermore, in the case of both languages, at -1 least half of the students in grade 2 could not read a -1.5 single word correctly (Kochetkova and Brombacher -2 2014). -2.5 Source: Mullis et al. (2012). Ghana’s scores on TIMSS improved from 2003 to 2007, and again in 2011; however, the country still remains below the low benchmark (figure 7). In fact, in 2011 Ghana’s average achievement could not be reliably measured because the percentage of students whose achievement was too low to be estimated exceeded 25 SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 15 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 percent in math and 15 percent in science (Mullis et al. Fieldwork carried out by Heyneman and others (2011) 2012; Martin et al. 2012). also indicated that in national examinations, private schools were on par with nearby public schools. Private Figure 7. Ghana's Performance in Mathematics on TIMSS, schools actually tended to have less-qualified teachers, Public Schools Only but they also had smaller class sizes, which translated into increased teacher attention for each student. In International 500 Tooley and Dixon’s (2007) study of private schools in Average 450 Ghana’s Ga district, higher raw test scores were found Low for students in private schools. However, these results 400 failed to account for any differences in student Benchmark 350 characteristics between sectors. As such, the results do Ghana not present reliable estimates of the true achievement 300 331 differences between public and private schools. 309 250 276 The National Education Assessment (NEA) of 2013 also 200 suggests that higher-performing pupils are more likely to 2003 2007 2011 be attending a private school, although the assessment Source: Edstats. did not account for student characteristics. More than 80 Note: No private schools participated. percent of students in private schools who took the NEA 2013 achieved minimum competency in math in both Quality is the main reason cited by parents for grades 3 and 6. In comparison, nearly 50 percent of choosing private schools, but robust impact pupils in public schools failed to achieve minimum evaluations on private school performance have not competency in either grade (figure 8). The differences in been conducted in Ghana. performance were even greater in English than in math Despite insufficient evidence and a lack of clear due to the fact that students in private schools tended to information on student performance in private schools, be more likely to speak English at home. For instance, in parents in Ghana cite school quality as the primary grade 6 English, 74 percent of students in private schools motivation for sending their children to private schools were proficient, compared to 30 percent of their peers in (Heyneman, Stern, and Smith 2011). Proximity also public schools (Ghana MOE 2014a). influences the decision to send a child to a private school. According to qualitative fieldwork conducted in the country, 38 percent of parents surveyed cited school location as a reason for choosing a private secular school (Shojo and Wodon 2013). Research that investigates comparative quality differences between public and private education in Ghana is sparse. A study by Akaguri (2011), which compared achievement differences between public and low-fee private schools in rural Mfantseman District, found no systematic differences in student performance after controlling for student background characteristics. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 16 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Figure 8. Percentage of Pupils Achieving Minimum Large gaps remain in access for the poorest students Competency and Proficiency Levels in Math, by School Type and children living in rural areas, particularly in the three regions of northern Ghana. 100% 8% 15% 24% Despite a high rate of primary enrollment in the country, 80% approximately 470,000 children of primary-school age 48% 36% 48% were still out of school in 2012, with marked differences 60% according to household income and geographic location 58% (figure 9). Some 11 percent of primary-school aged 40% children in Ghana do not have physical access to a 32% primary school; this figure rises to 30 percent in the 49% 45% 20% northern regions (Darvas and Balwanz 2014). Children 20% 19% from poor households, children living in the three 0% northern regions, and children who were orphaned or Public Private Public Private living with a relative or guardian were most likely to be Grade 3 Grade 6 unenrolled (EdStats; UNICEF 2010). The three northern Proficiency regions in Ghana are particularly impacted, as they Minimum competency account for the majority of households in the poorest two wealth quintiles (Darvas and Balwanz 2014). Below minimum competency Source: Ghana MOE (2014). Figure 9. Proportion of Primary-School-Age Children Out of School, 2008 Children from poorer households are less likely to attend school and poorer districts are less likely to 0% 10% 20% 30% 40% 50% deliver high-quality outcomes, leading some parents to Rural choose private schools even though they face a Urban substantial financial burden to do so. Gains in enrollment over the past 15 years have been Quintile 1 (poorest) particularly significant among the poorest pupils. Quintile 2 What is noteworthy about the increase in enrollment in Quintile 3 basic education over the past 15 years is that enrollment Quintile 4 gains have been realized in all regions, by all genders, Quintile 5 (richest) among urban and rural children, and among rich and poor alike (Darvas and Balwanz 2014). For example, Source: EdStats. while overall primary enrollment increased by 11 percent between 2003 and 2008, the poorest households— Three times more children from the poorest income households in the lowest two wealth quintiles—made quintile were not in primary school in comparison to enrollment gains of 17 and 12.8 percent, respectively their peers from the wealthiest income quintile–40 (Darvas and Balwanz 2014). As for gender, differences in percent versus 12 percent (figure 9). Students from the national enrollment rates for primary and secondary wealthiest households are nearly three times more likely education were negligible (EdStats). to have access to junior and senior high school compared SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 17 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 to their peers in the lowest wealth quintile–62 percent Figure 10. Scores in English, National Education Assessment versus 22 percent (EdStats). 2007, by District Average and Wealth Quintile District average Ghana has nearly achieved gender parity in primary and secondary education enrollment. However, girls’ completion rates drop off significantly in junior and senior high school, with just 26 percent of girls completing both levels, as opposed to 43 percent of boys (EdStats). This is partially a result of poor families having to “sacrifice” girls’ education due to financial constraints or the need for girls to aid in household chores (World Bank 2010). Other factors include poor sanitation facilities, distance to school, and early marriage. Students from rural areas and/or lower socioeconomic backgrounds have the lowest levels of learning. Among children who graduate from primary school every Source: World Bank (2010); author estimates based on the Ghana Living Standards Survey (GLSS) 2005–06 and NEA 2007. year, an estimated 350,000 to 400,000 students (or 65 percent of sixth-grade students) do not reach proficiency Private schools are serve the poorest, yet affordability in English or mathematics. The majority of these pupils is a challenge. are from Ghana’s three northern regions, deprived districts, poor and rural households, and/or ethnic and Ghana’s Education Sector Performance Report for 2012 linguistic minorities (Darvas and Balwanz 2014). In math, notes that students in deprived districts are enrolled in the 2013 National Education Assessment found that private schools at half the rate of the country at large outside Greater Accra, fewer than 25 percent of students (Ghana MOE 2012). However, evidence from household attained proficiency in either grades 3 or 6 (Darvas and surveys suggests that private schools in the country may Balwanz 2014). not be providing services only to the wealthiest students. A decade ago, 11 percent of poor and 5 percent of On average, student performance declines as household extremely poor enrollments were in private schools, wealth decreases. For instance, on the NEA 2007, both across Ghana and in rural areas (table 3). performance in English declined as district average household income decreased. For the wealthiest districts, the average score was 46, decreasing to 37 for the poorest districts (figure 10). Each bar in figure 10 represents a district and shows variation in student scores within districts with the same average household wealth, which nevertheless highlights the overall downward trend as wealth decreases. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 18 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Table 3. School Type Attended by Children Aged 6–17, by the main reasons for this high absentee rate include lack Household Poverty Status, Rural and All Ghana, 2005 of supervision, sickness and/or medical care, collection of salaries at a bank located far away, long distances to School type school, lack of school facilities (especially sanitation), and the fact that rural teachers supplement their incomes by Poverty No status Public Private engaging in activities related to farming (World Bank school 2010). Recent efforts to improve accountability by 5% Extremely All Ghana 36% 59% implementing school report cards, school performance poor 5% improvement plans (SPIPs), and school performance Rural 38% 58% assessment meetings (SPAMs) show promise, but the 11% effectiveness of these interventions has not yet been All Ghana 20% 69% Poor evaluated (World Bank 2010). 10% Rural 21% 68% All Ghana 13% 60% 27% Public resource allocations for education are uneven Non-poor Rural 16% 67% 17% throughout the country; targeting to the poor could be All Ghana 23% 61% 17% improved. Total Rural 28% 62% 10% Source: Akyeampong and Rolleston (2013), computed from GLSS V (2005– Although the Ghanaian government has striven to 06). improve equitable access to education through new programs and policies, government resources are This is not to suggest, however, that private schooling is currently unevenly distributed across regions in terms of an affordable option for all students. On the contrary, spending per pupil as well as the allocation of teachers. findings from household surveys carried out in three Whereas in the regions of Ashanti, Volta, Eastern, and poor rural communities in the central region of Ghana Greater Accra, 70 to 90 percent of the teaching force is suggest that the poorest families in the country may comprised of trained teachers, only around 40 to 50 spend up to 30 percent of their household income on percent of teachers are trained in the Western, Upper private school costs (Akaguri 2011). This can be East, Northern, and Brong Ahafo Regions (figure 11). In compared to the 16 percent of household income that terms of per-child expenditure (PCE), the southern one- the poorest households spend on public schools (Ibid.). third of districts receive 72 percent of national PCE expenditure at the primary level, and 68 percent at the Ghana is currently facing additional fiscal pressures in junior secondary level (World Bank 2010). Government the education system due to low levels of efforts to increase support for children from accountability, inefficient allocation of resources, and disadvantaged households have been criticized for plans to expand upper secondary provision. The public unsuccessful targeting. For example, in the case of the sector in Ghana exhibits low accountability and Ghana School Feeding Program, only 21 percent of total measures to increase it have yet to be evaluated. program disbursements benefited the poor (Wodon 2011). One identified issue contributing to low efficiency and poor quality in the education sector is teacher absenteeism. Data from several studies suggests that teachers in Ghana are absent an estimated 43 school days per year and are behind on the curriculum by 40 days (Abadzi 2007; Darvas and Balwanz 2014). Some of SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 19 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Figure 11. Map of Ghana Recognizing these physical and financial pressures on the system, efforts to raise the quality of education services in Ghana will require additional investments. For example, the cost of achieving desired learning outcomes is more than double the cost of meeting primary completion goals. Based on data from 2011, the cost of producing a pupil who has completed primary school was estimated at GH₵ 1,427, compared to GH₵ 3,670 for producing a sixth-grader proficient in English (Darvas and Balwanz 2014). The government also has plans to build 200 upper secondary schools to expand access, placing further pressure on the government budget. The current government has plans to construct 200 new community senior high schools across the country. The initiative aims both to cater to a growing population, as well as to support a policy of at least one senior high Source: Ghana MOE (2012). school per district (Ghana GNA 2013). Ghana currently has a budget deficit and faces In March 2014, construction of the first 50 senior high simultaneous pressure to raise education quality. schools began. Each of the schools are set to have 24 classrooms, 3 laboratories, 2 libraries, 8 offices for heads Ghana currently has a budget deficit of 10.8 percent of of departments, and internet facilities (Ghana GNA GDP, equivalent to GH₵ 9.5 billion (US$ 3.1 billion) 2014c). In one municipality, the construction of one new (Ghana GNA 2014d). The budget target for 2013—to school was estimated to cost GH₵ 11 million (Ghana GNA reduce the deficit from 11.8 percent in 2012 to 9 2014a). However, costs may vary depending on the percent—was not met. Failure to reach the target was accessibility of a particular school location (Ghana GNA influenced by “shortfalls in revenue and grants, higher 2014c). spending on wages and salaries, as well as interest costs” (Ibid.). The budget deficit is expected to continue, The government also planned to abolish fees for senior despite ongoing efforts to lower it. high day students in the 2015–16 academic year. In February 2014, the president indicated that these fees Although Ghana has made impressive progress in would be abolished “at an estimated cost of GH₵ 71 increasing access to basic education, this has placed million in the 2015/2016 academic year” (Ghana GNA significant pressures on infrastructure and staffing. 2014b). Fees will remain in place for boarding students Growth in basic education services has been stretching at senior high schools. the public system to its limit of effective service delivery (World Bank 2010). Currently, the education sector employs around 40 percent of all civil servants. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 20 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 In-Depth Analysis of the Education Market town’s 10 percent annual growth still represents one of the most rapid in Ghana (Ghana Statistical Service 2013). in Kasoa, Ghana Between 2000 and 2010, Kasoa’s population doubled in size, from 34,719 to 69,384. This section analyzes the role of the private sector in one specific locality in Ghana, Kasoa, and provides a detailed Figure 12. Average Annual Population Growth of Kasoa, overview of the types of education providers and their Greater Accra, and Ghana, 1970–2010 delivery and financial models. Kasoa is a market town with a significant percentage of poor and daily market 0% 5% 10% 15% 50% 30% 20%50% 70% 25% workers. Residents of Kasoa come from different ethnic groups, with most belonging to low- and middle-income 14% households. School mapping and surveys of public and 1970-1984 private schools were carried out in the town in order to assess the local education market (appendix A). 78% High levels of migration and a severe undersupply of 1984-2000 public education services in Kasoa have led to a substantial increase in the supply of private schools. Kasoa’s population expanded rapidly between 1984 Kasoa 10% and 2000 and continues to grow at a rapid rate. Greater Accra 2000-2010 Ghana Kasoa serves as the business center for five major urban centers that make up the Awutu Senya District of Ghana Source: Author’s calculations based on Ghana census of 2000 (Ghana Statistical Service 2013). (Nyasulu 2012). Awutu Senya had an estimated population of 274,584 in 2009—more than double the estimated district population of 124,028 only a decade The government’s supply of school places has not kept earlier, in 2000 (Ghana MOFEP 2012). This fast growth is pace with demand in Kasoa; similar trends may be attributed to urbanization, increased levels of occurring in other rapidly growing cities. immigration, and overall population growth in the Central District (Nyasulu 2012). Kasoa’s population growth has created rapidly increasing demand for education services that, to the present day, Data suggests that, similar to overall district patterns, have not been met by government supply. The city’s first Kasoa is a town undergoing rapid expansion and government school was established in 1968, when its population growth. Only 40 years ago, Kasoa was a population was still under 1,000. 5 In 1970, there were village with a population of under 1,000 inhabitants. 863 people living in Kasoa with one government school Between 1970 and 1984, the village grew at an average to provide education services. By 2010, only six annual rate of 14 percent per year, reaching a population additional government schools had been established, of 2,500 in 1984. Between 1984 and 2000, however, this making for a population-to-public school ratio of 9,912:1 growth became exponential, averaging 78 percent per (figure 13). year (figure 12). In the previous decade, population growth has begun to slow somewhat, although the 5 Government schools refers to only those that were still in operation as of data collection for this report. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 21 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Figure 13. Population-to-Public-School Ratio in Kasoa, 1970– If Kasoa experiences out-of-school rates similar to the 2010 rest of Ghana, the 50,539 students observed who are 1970 1984 2000 2010 currently in school in the town indicate a total school-age population of 73,204. And if the age distribution of Kasoa is similar to the rest of Ghana, the data further suggest a 863 : 1 2,597 : 1 6,944 : 1 9,912 : 1 total population of 209,154. This population, together with the 7 currently operating public schools, indicates an estimated population-to-public-school ratio of Source: Authors’ calculations from based on Ghana MOE (2011). 29,879:1, or three times larger than the ratio based on the official Kasoa population figure. 6 These figures are calculated using the most recent census estimates of the population of Kasoa. However, The population-to-public-school ratio serves as a useful the GPS survey of Kasoa, conducted by the World Bank indicator of equilibrium in the education market. A large and the Centre for Remote Sensing and Geographic ratio represents an opportunity to increase the supply of Information Services (CERSGIS), provides evidence that education services. the 2013 population—and thus the population-to-public- school ratio—may in fact be much larger than the Regional data from Ghana provides further evidence of officially reported 2010 estimate. this assertion. The Greater Accra and Ashanti regions of Ghana have similar populations: 4.0 and 4.8 million, The World Bank-CERSGIS census identified 211 public respectively. However, the supply of government and private schools in the town with a total student education services in Greater Accra is less than half of population of 50,539 (Ibid.). Such a large student body that in Ashanti. In Greater Accra, the ratio of population hints at a population that is likely (much) larger than to government schools is 2,626:1. In Ashanti, it is 1,238:1. 69,384. Based on this data, this report provides an Greater Accra has the largest ratio of any of Ghana’s estimate of the population of the census area. regions. In parallel, a much larger share of Greater Accra’s basic education services is provided by private Variability in the true population, calculated using the schools (figure 14) than that of any other region: 54 current size of the student body, is expected due to: percent of its primary and secondary schools are private, (i) the prevalence of non-attendance of school and compared to 34 percent of those in Ashanti (figure 14). (ii) the age distribution of the population in Kasoa. Assuming that Kasoa has an age distribution (35 percent of the population between the ages of 5 and 19) and rate of school non-attendance (roughly 26, 18, and 50 percent at the pre-primary, primary, and secondary levels, respectively) that are similar to the rest of Ghana, a simple estimate of population size is possible. As noted above, this calculation yields a significantly larger estimated population size than that of the official census. 6 The difference in these population estimates could be explained to some 50,539 students currently in school within these borders provides substantial degree by differing definitions of Kasoa’s city boundaries. However, official city evidence of a much higher-than-officially estimated population-to-public- borders notwithstanding, even if the census area used for the authors’ school ratio. A lower-bound estimate for the population of the census area calculation represents a larger geographical area than that used for the would result from the assumption of no out-of-school children. That is, if every national census, the number of schools located within the boundaries of this child was currently attending school, the total population estimate would be geographical area are reported with high expected reliability. Thus, identifying 144,397—still more than double the current official estimate of 69,384. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 22 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Figure 14. Relationship between Population-to-Public School Whereas in 1991 there were 4 private schools operating Ratio and Share of Private Schools, by Region in Kasoa, in 2013 there were 204 total private schools 0.60 3,000 providing education services to roughly 27,000 primary Share of private schools and secondary students. Additionally, of these 204 Population-to-public-school ratio primary and secondary schools, 184 also provided pre- 0.50 2,500 primary services to 14,719 students. There were a mere 7 public schools in Kasoa at the time of data collection. Population-to-public ratio 0.40 2,000 Number of schools Between 2000 and 2012, the private school sector added, on average, 13.5 new primary and secondary 0.30 1,500 schools per year (figure 15). Between 1991 and 2012, overall, the average annual growth rate of the private 0.20 1,000 education sector in Kasoa was 18 percent. 0.10 500 Figure 15. Growth of Non-State Education Providers (primary and secondary) in Kasoa, 1991–2011 20 200 0.00 0 Number of new private schools 18 180 Number of total private schools 16 160 14 140 12 120 Region 10 100 Source: Authors’ calculations based on 2000 Ghana national census (Ghana 8 80 MOFOE 2013); Ghana MOE (2011). 6 60 4 40 Having observed the relationship between population 2 20 growth and the activity of the private education sector in Kasoa and Greater Accra, it is possible that non-state 0 0 actors are also boosting the school supply in some of Ghana’s other rapidly growing cities (e.g., Amanfrom, Source: Authors’ calculations based on SABER-EPS school survey results in Mandela, Budumbraum, Gbawe, and Hohoe). Kasoa. The private sector has been able to rapidly expand to At the school level, private providers in Kasoa have meet growing demand for education in Kasoa. responded quickly to demand. Private schools surveyed for the study have, moreover, experienced substantial With a growing population creating increased demand growth in the few years that they have been in operation for education services, and in the absence of a supply- (figure 15). On average, schools had 8 students when side response from the government, one might expect they were established; after 6 years of operation, the non-governmental actors to step in. Data from the World median number of students had risen to 160, Bank school survey in Kasoa provides evidence of a representing an annual student growth rate of 23 robust supply-side response from the private sector. percent. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 23 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 These results may demonstrate that the private sector The majority of private schools in Kasoa enroll students has an advantage in being able to respond more quickly at the pre-primary and primary level. Enrollments at to the demands of the market than the government. these two levels make up 81 percent of all student Where government supply of education services lags enrollments in non-government schools. Nearly 15,000 behind population growth, the private sector can offer students are enrolled in non-government preschools, an efficient response. and nearly 20,000 pupils in non-state primary schools (figure 17). The private sector also offers opportunities in Private schools in Kasoa have fewer students and higher grades, with 15 percent of private enrollments in smaller class sizes than public schools, suggesting spare junior high schools and 3 percent in senior high schools capacity; private schools are also operating at a (figure 17). Private schools currently enroll just over substantially lower cost than public schools. 1,000 students at the latter level (figure 17). No public senior high schools currently exist in Kasoa. 7 In Kasoa, the education market is primarily driven by single-proprietor for-profit providers. Nearly 90 percent Figure 17. Total Student Enrollments in the Private Schools, of schools in the town are owned and operated by by Subsector private businesses (figure 16). In total, non-state providers, including faith-based organizations, charities, 50% 19,410 Total enrollments and NGOs, own and operate nearly 97 percent of these Sub-sector’s share of total private schools. Among public schools, 5 of the 7 are owned by 40% faith-based organizations, but funded and managed by 14,719 the government. 30% enrollment Figure 16. Basic Education Providers in Kasoa, 2013 250 20% 6,382 5 Charity/NGO 200 12 Faith-based 10% 1,147 150 0% 100 187 Private business Source: Authors’ calculations based on SABER-EPS school survey results in Kasoa. 50 As in other parts of Ghana, there is gender equity in 7 both public and private school enrollments in Kasoa. 0 Private Public All schools (public and private) in Kasoa serve male and Source: Authors’ calculations based on SABER-EPS school survey results in female students nearly equally. Girls make up a slightly Kasoa. higher percentage of the student body in both private and public schools, at 53 percent (figure 18). Gender 7 Although there are no public senior high schools in Kasoa, students from the students not originally from Kasoa could be attending the private schools that town can attend such a school elsewhere in the country, as students are placed exist in Kasoa. Currently, there are over 1,100 students studying in private in these schools throughout the country by computerized selection. Private senior high schools in the town. senior high schools are also included in the computerized system, so that SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 24 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 parity continues at higher levels of education: girls also students, with the largest 25 percent of schools make up 53 percent of the students attending senior high accommodating approximately 300 to 700 students. The schools in Kasoa. largest private school surveyed in Kasoa had 1,102 students. Meanwhile, half of the town’s public schools Figure 18. Gender Make-Up of Student Body in Public and have between 418 and 923 students (figure 19), with the Private Schools in Kasoa largest having 1,392. Figure 19. Distribution of Total Number of Students, by School Type 53% girls 1,500 47% boys 1,250 1,000 750 Source: Authors’ calculations based on SABER-EPS school survey results in Kasoa. 500 250 Private schools are newer, have fewer students and smaller class sizes than public schools. 0 Private schools Public schools On average, private schools tend to be newer, smaller, and less crowded than public schools in Kasoa. The Source: Authors’ calculations based on SABER-EPS school survey results in Kasoa. average public school is three times older, has four times the number of students overall, and has twice the Private education providers tend to have lower number of students in each class as the average private personnel costs than the public sector. school (table 4). Non-government schools in Kasoa employ, on average, Table 4. Key Characteristics of Government and Non-State 21 total staff, of which 17 are teachers. The median Schools in Kasoa annual cost for staff expenses (salaries) is GH₵ 18,520. Government Non-state On average, school staff consist of 12 teachers with less schools schools than 5 years of experience, 5 teachers with more than 5 School age (median) 18.5 years 6 years years of experience, 3 non-instructional staff members, Number of students 923 students 218 students and a principal (figure 20). Non-instructional staff receive (mean) the lowest salaries: GH₵ 90 a month. Teacher salaries Pupil-teacher ratio 25 : 1 12 : 1 increase with experience: on average, teachers with less than 5 years of experience receive a monthly salary of Source: Authors’ calculations based on SABER-EPS school survey results in Kasoa. GH₵ 100, which increases to GH₵ 150 for teachers with more than 5 years of experience (figure 20). A principal’s The smallest 25 percent of private schools have fewer monthly salary in Kasoa is 220 GH₵ on average. than 80 students, while half of private schools have fewer than 160 students (figure 19). However, some private schools have distinctly higher numbers of SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 25 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Figure 20. Number and Monthly Salary of Staff, Median schools, annual staff costs per student amount to Figures (GH₵) GH₵ 467, while at private schools they are GH₵ 124. Monthly salary 12 250 Unfortunately, research for this report did not collect data on the professional qualifications or certification 220 10 levels of teachers in private schools. 200 8 150 150 The private education sector is using both profits and Number 6 loans to finance expansion. 100 100 4 90 The majority of private schools in Kasoa are financially 50 viable, with one-fifth of providers making a profit. Of the 2 204 private schools in the town, nearly 80 percent are 0 0 earning enough either to sustain their operations (60 percent) or to make a profit (19 percent) (figure 21). Another one-fifth of private providers indicated that they were losing money. However, some of these providers could have been new to the market or they may have Source: Authors’ calculations based on SABER-EPS school survey results in been waiting for returns on investments made in the Kasoa. school. Overall, non-government schools have dramatically Virtually all private schools have assets in the form of lower staff costs than do public schools in Kasoa. On their own land and buildings (95 percent and 96 average, a teacher in a government school receives a percent, respectively). These assets are being used as monthly salary that is five times that of a teacher in a leverage to borrow money to expand their operations. non-government school, GH₵ 892 to GH₵ 151 (table 5). Additionally, over one-half of these schools, or 55 Private schools are thus able to employ more teachers, percent, plan to borrow money in the next year. The but still maintain much lower staff costs than majority of these providers indicate that they plan to government schools: as mentioned earlier, the pupil borrow funds from a bank or microfinance lender (79 teacher ratio is 12:1 in private schools, but over double percent) or an NGO (12 percent). that in government schools. Figure 21. Kasoa Private School Earnings Table 5. Average Teacher Salary in Public and Private Schools in Kasoa (GH₵) Government: 892 per month 21% losing money 60% breaking even Non-government: 151 per month 19% making profit Source: Authors’ calculations based on SABER-EPS school survey results in Kasoa. The annual per-student cost of all teaching and non- teaching staff is three times higher in government than Source: Authors’ calculations based on SABER-EPS school survey results in non-government schools in Kasoa. In government Kasoa. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 26 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Only 20 percent of private schools reported having been Box 3. IDP Rising Schools rejected for a loan. In 50 percent of these cases, the primary reason was insufficient collateral and lack of The IDP Foundation, Inc., in partnership with Sinapi Aba Trust (a Ghanaian microfinance institution), created the trust on the part of the bank that the loan would be IDP Rising Schools Program to help low-cost private repaid. In a few cases, the number of students was too schools access credit and thus also expand access to small or the loan terms and bank requirements were schooling by poorer communities. In order to be eligible unfavorable. for funding, schools must serve the poorest households. School fees in these types of schools are on average US$ The IDP Rising Schools Program offers an innovative 15 per term. School proprietors must also take part in a microfinance model for addressing the lack of credit for training program to receive a loan. The training covers school expansion (box 3). both financial and school management topics. IDP offers two types of loans: asset acquisition loans and working capital loans. Table B3.1 IDP Loan Types Asset acquisition Working capital loan loan Infrastructure School feeding construction or (bulk purchases), renovation teachers’ Common (classroom or salaries, purposes toilet), land stationary, or acquisition, or cash-flow school bus problems purchase Interest rate 30% 30% (per annum) Grace period 1–4 months 1 month Term Up to 2 years Up to 6 months Loan amount Up to GH₵ 15,000 Up to GH₵ 4,000 Repayment frequency Monthly Monthly As of 2017, 557 school proprietors have participated in the program, serving over 130,000 children. Nearly four hundred (400) loans have been disbursed and GHS has a repayment rate of 92 percent. Sources: IDP Rising Schools website: http://www.idpfoundation.org/idp-rising-schools (accessed June 2017); interviews with program personnel. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 27 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 The majority of private schools in Kasoa may not be limited as students progress onto higher levels of affordable to the poorest students, especially at higher education (table 6). levels of education. Table 6. Tuition Fee Bands in Private Schools in Kasoa, by Tuition costs at private schools rise considerably Educational Level between basic education and senior high school, Primary JHS SHS limiting affordable options for the poorest students at Number of 157 102 13 higher levels of education. schools Quartile 1 GH₵ GH₵ GH₵ The consumption of private education services in Kasoa (lowest cost 15–120 21–180 75–300 requires substantial financial costs for households that schools) increase from basic education to senior high school. On GH₵ GH₵ GH₵ average, the tuition cost of attending a private primary Quartile 2 120–180 180–257 300–390 school in Kasoa is GH₵ 212 (roughly US$ 106) per year. Fees grow by 41 percent (to GH₵ 299, or US$ 150) as a GH₵ GH₵ GH₵ Quartile 3 student moves to a private junior high school, and jumps 180–270 257–360 390–705 an additional 64 percent (to GH₵ 489 or US$ 245) at the Quartile 4 GH₵ GH₵ GH₵ senior high school level (figure 22). (highest cost 705– 270–1050 360–1,260 schools) 1,500 Source: Authors’ calculations based on SABER-EPS school survey results in Figure 22. Average Private Tuition Fees in Kasoa Schools, by Kasoa. Level (GH₵) 500 489 Annual student fees reflect a school accountability 450 mechanism. 400 Private schools in Kasoa that are both registered and 350 299 participate in standardized examinations charge fees 300 that are, on average, 55 percent higher than schools that 250 212 are not registered or have not yet been given a 200 certification “grade.” Some 56 percent of schools in the 150 survey were registered and had a certification grade (A– 100 D). A further 21 percent were in the process of being Grades 1-6 Grades 7-9 Grades 10-12 registered, but had not yet been assigned a certification Source: Authors’ calculations based on SABER-EPS school survey results in grade. Private schools that are certified and graded Kasoa. charge more at all educational levels than schools that are either not registered or not graded (table 7). The For the poorest students, this means that attendance in premium charged by registered schools is, on average, a private school becomes increasingly difficult as a approximately GH₵ 100–150 at each level (table 7). The student progresses successfully through his or her fee premium for certified schools can give an incentive schooling career. Keeping in mind the thresholds of low- for unregistered schools to strive for certification, cost (annual tuition and non-tuition fees under GH₵ 98 although some schools may choose not to become per year) and medium-cost (GH₵ 98–GH₵ 196) schools, it registered in order to avoid tax liabilities. can be clearly seen that options become increasingly SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 28 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Table 7. Mean Annual Tuition Fee in Private Schools in Table 8. Household Tuition and Non-Tuition Costs per Child, Kasoa Public and Private Schools in Kasoa (all levels) Not Registered Cost item Publica Private registered/graded (Fee/ # of (Fee/ # of schools) schools) Tuition 0.0 254.0 Primary GH₵ 158 / 82 GH₵ 263 / 75 Food at school 0.0 b 58.8 JHS GH₵ 196 / 42 GH₵ 355 / 60 Extra classes 49.9 9.1 SHS GH₵ 502 / 7 GH₵ 634 / 6 Student registration 45.0 16.2 Source: Authors’ calculations based on SABER-EPS school survey results in Transport to and from school 0.0 b 26.0 Kasoa. Note: JHS – junior high schools; SHS – senior high school. Examinations 6.0 5.8 Textbooks 0.0 2.8 Although schools that are registered charge, on average, School uniforms 4.3 13.1 higher tuition fees, not all lower-cost schools are Avg. total cost per child 108.0 c 266.0c unregistered. For instance, among private primary Source: Authors’ calculations based on SABER-EPS school survey results in Kasoa. schools that charge the least in tuition fees (quartile 1), Notes: a. Data for public schools include primary and junior high school costs 41 percent are registered. An additional 18 percent are (there are no public senior high schools in Kasoa). Data for private schools include primary, junior high, and senior high school costs. in the process of being registered, but have not yet been b. Public schools do not offer feeding or transport services. graded. The remaining 41 percent are not registered and c. Total costs include only services that are available in both public and private schools; thus, feeding and transportation fees are excluded from do not participate in quality assurance mechanisms. these calculations. There are equity concerns about public schools because By a large amount, the most significant cost of private the poorest parents are still paying a substantial school attendance is the tuition fee. After the tuition proportion of their incomes on out-of-pocket expenses cost, two optional services available in Kasoa’s private in public schools. schools constitute the next largest fees: school meals (GH₵ 59) and transport services (GH₵ 26). Remaining Even though Ghana does not charge tuition fees in compulsory fees in the private sector include school public schools, there are still considerable out-of- registration (GH₵ 16), school uniform (GH₵ 13), pocket expenses. examinations (GH₵ 6), and textbooks (GH₵ 3). Ghana’s government provides textbooks to all public schools; Due to Ghana’s legal framework and school funding thus, there are no household costs associated with mechanisms, parents do not pay tuition fees in public textbooks in these schools. However, in addition to fees schools at the primary or junior high school levels in for extra classes and registration—which, as mentioned Kasoa. Despite the fact that basic education in Ghana is above, are larger in the public than the private education supposed to be free for all students, Kasoa’s public sector—public school students pay an examination fee schools still charge non-tuition fees that could be (GH₵ 6) equivalent to that charged to private school burdensome for the poorest households. students, but a uniform charge three times smaller (GH₵ Notwithstanding their lack of tuition fees, the average 4). public school in Kasoa charges GH₵ 50 per year for extra classes and a registration fee of GH₵ 45 per year On average, the total tuition and non-tuition cost of (table 8). attending a private school in Kasoa is GH₵ 266 per year (roughly US$ 11 per month), compared to an overall public school cost of GH₵ 108 per year (roughly US$ 4.5 per month). In addition to these comparable services in SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 29 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 public and private schools, many private schools offer school would pay more than 60 percent of its annual school lunches and transportation services for an extra income in school fees (the financial burden would be fee. In some schools, the cost of in-school meals is much higher if any children were attending senior high included in the tuition fee (box 4). However, on average, school). Additionally, the cost of sending a child to a total fees in private schools are more than 2.5 times private school is not trivial even in the highest income higher than in public schools (no comparison exists for quintile, with 7 percent of household income required in senior high schools, as there are no available public that income quintile to pay private school fees. options in Kasoa). Table 9. Household Size and Annual Household Income, by While the cost of private schooling for the poorest Quintile students represents 15 percent of total household Mean Mean annual income, hidden costs in public schools amount to household household size incomea around 6 percent of total household income. Income Quintiles Poorest 6.4 1,779 Attendance at an average private school in Kasoa thus costs 15 percent of annual household income (per child) Second 5.1 2,493 for households in the poorest quintile (figure 23). And Third 4.4 2,683 these costs often do not include the price of the child’s Fourth 3.7 3,086 meals during the school day. Wealthiest 2.5 3,773 Ghana 4.0 2,974 Figure 23. Household Income as Share of School Costs, Source: GLSS V 2005–2006. Private and Public Schools Note: a. Data on household incomes have been adjusted for inflation to approximate 2013 prices. 15% 15% Private schools Public schools What is clear is that sending a child to a private school 12% can require a substantial financial commitment on the 9% part of a household. As previously noted, evidence from 7% Kasoa indicates that—despite a national commitment to 6% 6% free basic education—public school also imposes 3% 3% financial burdens on households. Poorer families in Kasoa can expect to pay around 6 percent of their 0% household annual income (per child) on fees for school Poorest Second Poorest Third Third Fourth Fourth Richest Richest Quintile Quintile- - Quintile - Quintile Quintile- - Quintile Quintile-- Quintile Quintile -- registration and extra classes in public schools, whereas GH₵ 1,779/ GH₵ 2,493/ f GH₵ 2,683/ GH₵ 3,086/ year GH₵ 3,773/ year the wealthiest families can expect to pay roughly 3 year year year percent (per child). Even small costs like the 6-cedi and Source: Authors’ calculations based on SABER-EPS school survey results in 4-cedi fees for examinations and uniforms in public Kasoa and Ghana and GLSS V 2005–2006. schools can negatively impact demand for education and Of course, costs related to school attendance are multiplicative, as households often have more than one child in school. Exacerbating these costs is the fact that the poorest households have nearly four more members than the wealthiest households (table 8). Thus, a family at this low income level with four children in private SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 30 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 thus discourage the participation of the poorest are 19 low-cost private schools in Kasoa (9 percent of all students. 8 private schools). Moreover, it is important to keep in mind that, due to the If we assume that a medium-cost school charges severe undersupply of public school services in Kasoa, between 10 and 20 percent of household income (Tooley most children must pay to attend private school or and Longfield 2013) for a family at the US$ 2 poverty attend no school at all. line—that is, between GH₵ 295 and GH₵ 590 per year— then the range for medium-cost schools is between Only nine percent of private schools in Kasoa are low GH₵ 98 and GH₵ 196 in per-student fees per year. There cost. are 37 private schools (18 percent of all private schools) in Kasoa with fees within this “medium-cost” range. Recent research on private schools for the poor has attempted to define thresholds for what constitutes a Some 73 percent of all private schools in Kasoa are “low-cost” private school. Tooley and Longfield (2013) consequently “high-cost” schools, that is, they charge suggest that, since households in Sub-Saharan Africa more than GH₵ 196 in per-student fees per year. For a tend to spend between 5 and 10 percent of their annual family living below the poverty line to send all of their income on education expenses (Lewin 2007), private children to one of these high-cost private schools would schools that charge less than 10 percent of household require more than 20 percent of their annual income. income for a family at the poverty line should be classified as low cost. 9 According to these thresholds, public schools in Kasoa would be considered “medium cost,” as the average non- The international poverty line, as defined by the World tuition fee in public schools (GH₵ 108) for three children Bank, is US$ 2 per day, or US$ 730 per year (per person), represents 11 percent of annual income for a family which equates to GH₵ 1,475. For a household with two living at the poverty line. working parents, the poverty line would be GH₵ 2,950 per year. The mean household income for all of Ghana is Omega Schools are one example of a low-cost private GH₵ 2,974 (GLSS 2005–2006), meaning that about 50 school model that is both expanding rapidly and percent of the population is living below the poverty line. operating more efficiently than public schools in Kasoa. Following the above methodology, low-cost private Twenty private schools in Kasoa are part of a chain. The schools would be defined as those charging less than majority of these schools are part of small chains of only GH₵ 295 (US$ 146) per year for all of a family's children two to four schools, some of which have a religious to attend. We use three children per family as the affiliation. One provider reported that it was part of standard (see footnote 9). Thus, GH₵ 295 per year for Bakos Schools, which have a total of 70 schools, while three children is GH₵ 98 per child. As such, all schools in another reported being part of Pentecost Schools, a Kasoa charging less than GH₵ 98 per student per year chain that has 81 schools overall. Four schools in Kasoa would be considered “low cost.” By this definition, there are part of the Omega Schools chain, which has a total of 20 schools (box 4). 8A recent experimental evaluation in Kenya found that removing the cost of 9Schools must charge less than 10 percent of household income to enroll all school uniforms increased student attendance by 44 percent for the average children in the household. (The average family in Ghana living below the student, and 62 percent for students who did not previously own a uniform poverty line has three children). (Evans, Kremer, and Ngatia 2009). Provision of free uniforms also increased student learning by 0.25 standards deviations. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 31 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Summary of Findings from Kasoa • Public schools also impose costs on households; however, these are substantially less than the costs It is clear that the private sector in Kasoa is making a of private schools. substantial contribution to the delivery of primary and secondary education. While the findings of this report do • There is insufficient information to draw conclusions not generalize to the country level, they contribute about the quality of services in private schools and valuable information about the education market in one how they compare with public schools. particular rapidly growing urban area of Ghana. Additionally, the commonalities that exist between this research and case studies from other parts of the country (Akaguri and Akyeampong 2010; Akaguri 2011; Akyeampong and Rolleston 2013; Heyneman, Stern, and Smith 2011; Tooley and Dixon 2007) suggest that the results of this report may be indicative of larger trends occurring within the education sector in Ghana. A number of points can be made regarding (i) what we know and (ii) what we still don’t know, about the research in Kasoa. These points are summarized below: What we know: • Population growth and migration are causing rapidly increasing demand for education in Kasoa. • Government supply of primary and secondary education services lags behind rapid population growth in Kasoa. • As a result of this undersupply, Kasoa’s private education sector has expanded to meet the unmet demand. • Private schools are providing education services at a fraction of the operating costs of public schools. This difference is driven in large part by substantially reduced salaries for teachers in these schools. • The majority of private schools in Kasoa seem to offer limited accessibility to the poorest students due to their high financial cost. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 32 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Box 4. Omega Schools: A Private School Chain Model One growing chain of private schools in Ghana offers one model for delivering school services in the country. Omega Schools, a for-profit school chain, opened their first private educational institution in 2008. Table B4.1 Comparison of Omega Schools, Other Private Schools, and Public Schools in Kasoa All other Omega private Government schools schools schools Number of students 659 218 923 (mean) Pupil-teacher ratio 28:1 12:1 25:1 Monthly teacher salary GH₵ 162 GH₵ 151 GH₵ 892 Yearly staff cost per- GH₵ 63 GH₵ 134 GH₵ 466 student (median) Cost to students One of the stated goals of Omega Schools is to provide students with a quality private education for the same out-of-pocket cost of attending a local government school. One of the features of the Omega model is its all-inclusive payment system. Tuition at most of their schools is GH₵ 1.5 per day, adapted for the local context, where paying a small daily fee can be easier for families with daily cash flow. The total cost amounts to roughly GH₵ 270 per year, equivalent to the average private school fee in Kasoa. Comparison of cost to public school expenses In contrast, the total public school cost in Kasoa is GH₵ 108 per year. However, unlike other public or private schools in the area, for Omega, GH₵ 270 covers the student’s academic, material, and nutritional needs for the entire school year, including: (i) workbooks, (ii) two school uniforms, (iii) examination costs, and (iv) a daily meal for students. Moreover, the school does not charge students to attend extra classes. Accounting only for the added cost of providing a daily lunch to students, a case could indeed be made that Omega is educating students for the same out-of-pocket cost as public schools. Where lunch is provided in other private schools, the average fee to students is GH₵ 180 per year. At this rate, were public schools in Kasoa to provide meals to students, the total school cost would be roughly equivalent to that of Omega’s model. Cost efficiency Low fees at these schools are made possible through a formula of high efficiency driven by large student bodies, large class sizes, and low teacher salaries. The teaching model for Omega uses standardized lesson plans that allow schools to hire teachers with lower levels of prior training and certification. Public schools in Kasoa deliver education services at seven times the staff-to- student cost of Omega schools. While Omega’s approach hints at being an innovative model, at present, there is not sufficient evidence to draw conclusions about the quality of services delivered in these schools. Source: Results for Development, Center for Education Innovations. Innovations Profile for Omega Schools. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 33 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 What we still do not know: • While we know that teacher costs in the private sector are substantially lower than in the public • No evidence from Kasoa sheds light on the school sector, we don’t know the potential implications of choice decisions of parents and students. Demand- this cost differential for the quality of teachers and side surveys could provide highly beneficial insight the teaching staff of both public and private schools. into the priorities of parents when choosing schools. Are differences in teacher pay related to teacher Are household school choices driven by school motivation levels, teacher aspirations, satisfaction, quality, cost, proximity, or other factors? Would professional development, and/or subject-matter parents choose to send their children to public knowledge? Are there differences in teacher career schools if they were made available? advancement, progression, and turnover in the public and private sectors? Do lower wages in the • We have little to no reliable information on the private sector impact the ability of schools to attract quality of education being provided by private high-quality instructors? And what potential schools in Kasoa and in many other places in Ghana. implications might this have for education quality? In particular, reliable data from experimental and quasi-experimental evaluations of school outcomes • Are there differences in the student populations are needed to determine the relative impact of being served by public and private schools? How are public and private school provision. It would also be student population differences influenced by important to learn whether or not private school education fees? quality is conditioned on cost. • National-level data shows that undersupply of public • Insufficient data is available on the schooling options education is related to a high share of private at the senior secondary level for students in Kasoa. enrollments in the Greater Accra region. This fact, A large share of Ghanaian students at this level are coupled with the relationship between public assigned to boarding schools through a undersupply and private expansion of education computerized system. Although there are no public services in Kasoa, suggests that other rapidly senior high schools in Kasoa, students from Kasoa growing areas of Ghana could also be experiencing could thus be attending such a school elsewhere in supply-side responses from private providers. the country. Moreover, as private senior high schools Further inquiry into other geographic areas with are also included in the computerized system, scarce supplies of public education could offer students not originally from Kasoa could be insight into the dynamics of the education market in attending the private senior high schools in the town. Ghana. • There is no information on how well private schools As evidenced by the preceding discussion, what we have serve children with disabilities and special needs. learned about the private sector in Kasoa, and in Ghana This is a significant issue, as a large share of the more broadly, merely scratches the surface. This global out-of-school population are students with research is not intended to provide an exhaustive disabilities. It would be highly valuable to better investigation into the contributions of the private sector, understand the current contributions of the private but rather to offer a starting point on which to base sector in meeting the demands of these at-risk continued inquiry into a holistic Ghanaian education children’s groups. system consisting of both public and private schooling. Much remains to be understood about how best to SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 34 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 provide unilateral access to high-quality education services for all Ghanaian children and youth. The questions and issues posed above can offer guidance on the types of research that could further understanding and actions pertaining to education markets in the country. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 35 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 The Regulatory Environment The Government of Ghana regulates the private sector This section analyzes the current policies in place that but provides limited financial support. regulate the private sector in Ghana, the degree to which these policies are implemented and whether or not Ghana has a government-wide public-private additional barriers to market entry and operation of partnership (PPP) policy and its Education Sector Plan private schools exist beyond official policies. The findings outlines the role of the private sector. are based on reviews of official policy documents, a survey of a sample of schools in Kasoa, and interviews The National Policy on Public-Private Partnerships with senior leaders of the following three national and outlines the role of the private sector in supporting the two regional private school associations: Government of Ghana to meet its economic and social • Ghana National Association of Private Schools development objectives. Ghana’s Education Strategic (GNAPS) (box 5) Plan (ESP) 2010–2020 outlines the importance of the • Deprived Private Schools Association (DEPSAG) private sector in supporting the government provision, and more particularly, finance, of education services: • Foundation for Education Research and Development (FERD) “The ESP identifies several areas where increased • GNAPS (Ghana National Association of Private efficiency, cost sharing and decentralization provide cost Schools) Volta Region savings to the Government of Ghana… Increased need to • GNAPS Eastern Region secure finance via fundraising at decentralized levels, cost sharing at government funded public schools For more details on the methodology, please see (especially at the post-basic levels), and increased growth appendix 2. of private schools will likely be features of a system realizing significant enrollment expansion in all sub- Box 5. Ghana National Association of Private Schools (GNAPS) sectors over the next decade” (Ghana MOE 2010). The Ghana National Association of Private Schools (GNAPS) is the largest private school association in the country. The Education Act 778 regulates independent private GNAPS was founded in 1972 and currently represents over schools. The government’s only support to the private 5,000 private schools nationwide. The association is sector is the provision of textbooks, examination fees, organized into national, regional, and local levels. It is and in-service teacher training. recognized by the Ghana Education Service as the official representative organization for private schools in the It is clear that the private education policies in Ghana country, giving it latitude to negotiate policies and increase establish a legal basis for independent private schools, the voice of the private sector. that is, those that are owned, operated, and financed GNAPS sees itself as a partner to the Government of Ghana completely by non-government providers. In addition to in the delivery and management of education in the the Education Act 778 of 2008, which outlines the legal country. The association provides professional development opportunities for its members, including basis for independent private schools, the following workshops for the improvement of school management policy documents informed this report on the regulatory and teaching practices and the development of environment for schools, including private providers: professional learning communities. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 36 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 • Ghana Education Service Act 1995 Private schools are given a high degree of autonomy but • Education Strategic Plan (ESP) 2010–2020 this is not balanced by a high degree of accountability. • Quality Indicators for Evaluating School Performance at the Pre-Tertiary Education Level Private independent schools have a high degree of in Ghana autonomy due to a lack of policies that outline the • Guidelines for School Inspection and Code of regulatory environment for these schools. Conduct for School Inspectors Due to a lack of explicit policies in the current regulatory The government’s only support to private schools is the environment, private independent schools have a high provision of textbooks and subsidies for exam fees; there degree of autonomy in appointing, dismissing, and is currently no explicit mechanism to give schools per- deploying teachers, as well as determining salary levels, student funding. The Education Act specifies that the teaching methods, and class sizes. The national education minister is responsible for the regulation of curriculum is determined by the central government, but schools that are owned by a community and for “private schools are free to determine their own structures and participation in education,” although the specific methods (e.g., pedagogy, learning materials, classroom definition of “private participation” is not outlined. ESP hours) for achieving desired student learning standards. also specifies that support will be provided “to primary The only policy found to be restraining private school and JH [junior high] schools by providing non-salary autonomy is a regulation in the Education Act of 2008 inputs (e.g. textbooks) and in-service training” (Ghana that requires independent private schools to follow MOE 2010). The Ghanaian government also subsidizes centrally mandated teacher certification standards in the fees for the Basic Education Certificate Examination order to maintain active registration. According to this for students in private as well as public schools. This regulation, at least one-third of teachers in all private exam is used to determine which students are eligible to schools must be professionally certified, with official proceed from junior to senior high school. In 2012, the teacher training diplomas. Additionally, it is worth noting combined cost of these public and private subsidies was that although the regulation of teacher qualifications US$ 4.2 million (Ghana MOFEP 2013). Ghana’s Education does create some policy-based restrictions on the Act establishes the role of private education providers autonomy of private schools, it is less rigid than the and specifies that tax relief or subsidies may be provided regulation that requires all teachers in public schools to to “duly registered private education institutions.” be professionally certified. International education However, there is no policy that defines under what research shows that teacher credentials—including circumstance private schools are to receive these factors such as years of experience, certification, and subsidies. education—fail to predict student learning (Dobbie and Fryer 2011; Goldhaber and Anthony 2007; Goldhaber While policies establish the ability of the government to and Brewer 2000; Hedges, Laine, and Greenwald 1994; provide tax subsidies, textbooks, and in-service training Hanushek 1997). Overall, methodologically rigorous to private schools, there are no stipulations to determine studies that assess the impacts of local school autonomy which schools should or should not receive support. In on student learning outcomes generally find a positive addition, no legal standards require schools that receive relationship (Hanushek and Woessmann 2010; Bruns, financial or material support to act any differently than Filmer, and Patrinos 2011). unfunded schools. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 37 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Schools are required to take part in standardized The overall results of the policy benchmarking exercise exams, but confusion remains about the inspection are outlined in table 9. For a detailed overview of the regime. methodology used to evaluate the key policy areas and the benchmarking process as a whole, see appendix 2. The Basic Education Certificate Examination and the West African Senior School Certificate Examination Table 10. Ghana Policy Intent and Implementation determine student eligibility to advance to upper Independent private Policy secondary and tertiary education, respectively. Students schools – Policy goals Policy intent implementation in the final grades of junior and senior high school sit for 1. Encouraging these exams annually in both public and private innovation by institutions. National Education Assessments are also providers administered annually in grades 3 and 6. No current policy stipulates that the results of these exams should 2. Holding schools accountable be disaggregated by important demographic characteristics such as socioeconomic background, 3. Empowering all gender, and other types of student disadvantage. parents 4. Promoting diversity According to the Education Act 778 of 2008, public and of supply private schools are to be inspected on a “periodic basis” Source: World Bank 2015. by the National Inspectorate Board, an independent inspection agency within the ministry of education. In Due to a lack of information, parents often have practice, all private schools in Kasoa are subject to official difficulty accessing high-quality education services, school inspections on a term basis. All schools reported while new providers are hindered from entering the that the responsible agency for inspections is the Ghana market and positively responding to the access Education Service. However, some schools reported that challenge. institutions such as GNAPS, the West African Examination Council, and the ministry of health are also No policies specifically outline the right of parents to responsible for inspections. Schools did not report being receive information about the quality of schooling; this inspected by the National Inspectorate Board. According hinders their ability to make informed choices. to policy, inspections should also outline the strengths and weaknesses of a school and suggest specific Although the country administers standardized exams at priorities for improvement (Ghana National Inspectorate the junior and senior high school levels, there are no Board 2012). Education policy in Ghana does not specify policies in place to guarantee parents access to the terms for the sanctioning of underperforming schools. results of these exams. Likewise, no policy requires that One-third of the randomly-selected sample of private parents receive information on the results of school schools surveyed for this report stated that only in rare inspections. Schools reported that, although the circumstances are sanctions levied on private schools. In government ranks schools based on the inspection these rare cases, penalties can include increased school process, parents are not provided with information on supervision, removal of the right to administer school the results. According to current policy, policy requires exams, and school closure. students, but not parents, to be interviewed as part of the school inspection protocol. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 38 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 With respect to other accountability mechanisms, official fulfilled the government requirement that one-third of government policy grants tax relief to parents whose their teachers be qualified. The law also requires that all children attend independent private schools—a private schools be certified, but in practice, only 76 demand-side mechanism with the potential to percent of schools in Kasoa are. Some 78 percent of the incentivize school attendance. schools that were registered took part in standardized exams, compared to 50 percent of non-registered Lack of both transparency and access to certification schools. Only 55 percent of schools submitted a school standards may also be deterring new providers from improvement plan as part of the inspection process. entering the education market and increasing access. Moreover, while students are required to participate in interviews as part of the inspection process, only 47 Overall, government policy supports the market entry percent of schools appear to have interviewed students. and relatively unburdened operation of multiple In contrast to stated policy, in practice tax relief is not providers in the education market. In Ghana, all types of granted to parents of children at private schools. Finally, providers are allowed to operate private schools. while policy decrees that the education minister has the Government policy neither provides standardized school final authority to approve tuition fees, only 0.5 percent fee schedules, nor explicit restrictions on tuition; of schools follow this stipulation. however, it does stipulate that fees must be approved by the education minister. The operating requirements for Table 11. Private Schools: Policy and Practice independent private schools in Ghana are more Practice: restrictive in practice than in policy. Official policy, as Policy % of schools enunciated in Education Act 778, outlines a few minimal Schools able to operating requirements, such as legal incorporation, adapt curriculum to Curriculum 73% meet needs of minimum curricular standards, safe facility students requirements, and submission of an annual report to the 1/3 of teachers Teachers 18% minister. These operational guidelines are not made certified publicly available, but must be obtained by individual School All schools certified 76 % certification request or through private school associations. 78% of registered Standardized All schools at a 50% of exams secondary level Discrepancies exist between policy intent and policy unregistered School All schools submit implementation; private school associations question improvement plans as part of 55% government support for the implementation of new plans inspection process policies. Student are Student required to be 47% participation in interviewed as part Policies outline a number of stipulations that are inspections of inspection neither implemented nor adhered to in practice. Given to parents of Tax relief children at private 0% As shown in table 10, over one-quarter of private schools schools Government have not been able to use their autonomy to tailor the oversight of Minister has final 0.5% curriculum to meet the needs of their students. In approval of fees tuition fees practice, schools in the sample responded that the Source: Responses based on SABER-EPS school survey results in Kasoa. central government has legal authority over how the Discrepancies between policy intent and curriculum is delivered. Less than 20 percent of schools implementation might well also exist in the public SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 39 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 system, but such an examination is beyond the scope of pay roughly GH₵ 730 in annual taxes (about US$ 315). this study. The majority of schools pay three different taxes and/or fees, with a few schools reporting payment of four Other policies that are implemented may be harming different taxes: equity. • Income tax (12 schools; median of GH₵ 400) • Property rate (15 schools; median of GH₵ 350) Schools select students based on academic ability n • Business operating levy (10 schools; median of Kasoa, including public schools (5 of 7 public schools, or GH₵ 160) 71 percent). Four of these are faith-based public schools. • Corporate tax (4 schools; no amounts reported) Only 2 public schools (29 percent) select students on a first-come, first-served basis. These figures do not differ Policy dialogue is focused at the national level, with widely from the private sector, where 80 percent of lower levels of engagement at the regional level. schools (146 of 183) select students by academic ability and only 17.5 percent (32 of 183) admit students on a The government meets fairly regularly with the private first-come, first-served basis. Selection based on school associations. The largest national school academic ability usually favors students from more association, Ghana National Association of Private affluent backgrounds (Baum et al. 2013). Schools (GNAPS), reported having 10 official consultation meetings per year with the government. Consultations Other restrictions that hinder private sector are less frequent with smaller and regional associations: engagement are not explicitly outlined in policy. between two and four times per year. The Education Act outlines few minimum certification Dialogue does not focus on how to effectively standards for the operation of a private school. The implement policy changes. document, “Certification Guidelines Private Schools,” is currently being renewed, but surveyed schools reported Private sector representatives acknowledge that the additional certification requirements beyond those government openly recognizes the contribution of the outlined in the Education Act. In practice, the private sector to delivering its policy objectives. Yet many government requires private schools to meet a number representatives of the private education sector feel that of operating requirements, which are not outlined in they are not adequately included in discussions of policy, to maintain their official operating status. Schools potential policy changes. They also noted that there is reported requirements such as playgrounds and outdoor little support provided to private providers to implement space, dedicated classrooms (e.g., science labs), libraries, such changes. Overall, the private sector feels that school medical services (e.g., first-aid center or sick bay), relevant policy changes are not communicated clearly land and building ownership, and computers. enough by the government. And while the national associations feel that they have been able to influence Official policy for independent private schools does not government policy through a collective voice, this is not specify any fees; however, in practice schools must pay a the case for the regional associations. number of fees, including administrative, ongoing certification, inspection, and structural site fees. Private school associations want more opportunities for joint teacher training and greater transparency of With regard to fee requirements, the financial situation school registration guidelines. faced by most independent private schools differs substantially from policy. Schools mentioned that they SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 40 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Most private school representatives reported receiving good support from government inspectors for improving the quality of teaching and learning. However, they noted a general lack of opportunities for private schools to take advantage of teacher training programs or other professional development opportunities. Representatives also requested that transparency on school certification be improved. As previously noted, required procedures for registering and certifying a private school are not made easily available to current and potential providers. Most associations reported that these procedures are not clearly publicized. Currently, these procedures are only provided to the school associations and are not made publicly available (e.g., through brochures, gazettes, websites, etc.). SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 41 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Budgetary Implications Table 12. Recurrent Cost of Transferring All Private School Students to Public Schools in Kasoa Number of students to be transferred The government has difficult financial decisions to make from private to public schools 45,000 on educational priorities, particularly those Average size of a public school 923 students (i) addressing migration within the country, Number of new public schools (ii) improving the quality of the system, (iii) ensuring neededa 49 equitable access for the poorest students, and Personnel costs (iv) expanding senior high schools. Each of these four Annual teacher costs per school, per challenges and its budgetary implications is discussed yearb GH₵ 396,048 below. Each scenario is a simplification of the problem Annual principal cost per school, per yearc GH₵ 13,200 and provides a brief summary of the complications and Annual cost for other staff per school, budgetary implications for the government. per yeard GH₵ 4,800 Total annual personnel costs, per It would be costly to meet increasing demand for school GH₵ 414,048 education services solely through public supply. Other operating costs The Ghanaian population will continue to grow, as will Other operating costs, per schoole GH₵ 36,004 migration from rural to urban areas. This poses a Total recurrent cost problem for the government, as the supply of education Total recurrent cost per school, per will have to meet these requirements at an increasingly year GH₵ 450,052 rapid pace. Meeting this growing demand solely through Total recurrent cost per student, per the provision of public school services would incur year GH₵ 490 GH₵ 22 exorbitant financial costs. million Total recurrent cost for 45,000 US$ 7.3 As an example, suppose that the government wanted to students (49 schools) millionf accommodate the recent increase in demand for Source: Authors’ calculations based on SABER-EPS school survey results in Kasoa. education in Kasoa (i.e., students that have recently been Notes: a. The calculation is 45,000 students divided by the average public pulled into the private school sector) in the public school school size. b. The average teacher monthly salary is GH₵ 892 (based on public school system. With 45,000 students currently in Kasoa’s data from Kasoa). There are, on average, 37 teachers in a public school. private schools, and at an annual cost of GH₵ 490 per c. The average principal monthly salary is GH₵ 1,100 (based on public school data from Kasoa). student, the recurrent cost to accommodate all existing d. The average monthly salary of other (nonteaching) staff members is GH₵ 200 (based on public school data from Kasoa). There are, on average, 2 non- private school students in public schools would be teaching staff members in a public school. roughly GH₵ 22 million (table 11). e. This figure is calculated based on the fact that staff salaries make up roughly 92 percent of public school spending (World Bank 2014); thus, an additional 8 percent is typically used for other operating costs. f. Using the exchange rate of July 1, 2014: US$ 1 = GH₵ 3.00. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 42 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 In addition, to accommodate 45,000 students, the Table 13. Construction Cost of Building Public Schools for All government would either need to build new schools or Private School Students in Kasoa expand existing schools. The public cost to build enough Junior high Senior high schools to accommodate all students in pre-primary, Preschool Primary school school primary, and junior and senior high schools would be Average roughly GH₵ 57 million (see table 12 for a detailed class size in 37 54 75 N/Aa public school estimation of costs). Number of classrooms needed in a 25 17 12 N/A Of course, substantial resources would be required to schoolb provide public school services for all students in Ghana’s Cost of one GH₵ 1.4 GH₵ 960,0 GH₵ 60 GH₵ 8.3 other rapidly growing localities, a number of which have school with millionc 00d 0,000e millionf expanded at even quicker rates than Kasoa over the past 923 students Students to two decades. The total population of Ghana’s five be 14,719 19,410 6,382 1,147 fastest-growing cities—Amanfrom, Mandela, transferredg Budumburam, Gbawe, and Hohoe—grew at an average Number of schools 15.95 21.02 6.91 1.24 annual rate of 26 percent between 2000 and 2010 (from neededh 104,000 to 375,000). Assuming a sustained annual Total GH₵ 22.3 GH₵ 20.2 GH₵ 4.2 GH₵ 10.2 growth rate of 26 percent, these five cities’ total construction million million million million cost population would have been 749,949 in 2013. Based on Construction Ghana’s national age distribution, we would expect cost per GH₵ 1,515 GH₵ 1,041 GH₵ 658 GH₵ 8,952 roughly one-third of this population (or 249,983) to be of student Total cost of school age. To accommodate this number of students in GH₵ 57 million (US$ 19 million) all schools the public system, roughly 271 schools would be needed, Source: Authors’ calculations based on SABER-EPS school survey results in with estimated recurrent costs of GH₵ 122 million and Kasoa. Notes: construction costs of GH₵ 660 million (table 13). a. No public senior high schools exist in Kasoa. b. Average school size (923 students) divided by the average class size c. A six-classroom primary school costs GH₵ 340,000 (Ghana MOE 2014). The same cost has been used for preschools, as nearly all preschools are attached to a primary school in Kasoa. A school with 25 classrooms would cost GH₵ 340,000 x (25 ÷ 6). d. A six-classroom primary school costs GH₵ 340,000 (Ghana MOFED 2014b). e. A three-classroom junior high school costs GH₵ 150,000 (Ibid.). f. The estimated cost of one senior high school is GH₵ 12.9 million; however, the average public senior high school in Ghana has 1,441 students, so the school construction cost has been adjusted to reflect the standard average used in this table: 923 students (World Bank 2014). g. The number of students by level does not add up to the total number of students surveyed in Kasoa (45,000), due to the fact that some providers were unable to provide student numbers disaggregated by educational level. h. Students to be transferred divided by the average size of a public school (923 students). SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 43 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Table 14. Estimated Public School Recurrent and the rapid pace of growth and the number of unregistered Infrastructure Costs to Meet Rising Demand in Ghana’s schools. Fastest-Growing Cities Amanfrom, Mandela, Ensuring equity in the system will mean reaching out- Budumburam, of-school children and providing greater support to the Item Gbawe, Hohoe poorest students. Estimated 2013 population 749,949 Ghana has made significant progress in reducing the Estimated number of students in 2013a 249,983 number of children out of school; however, 470,000 children of primary-school age still remain outside the Estimated number of schools 271 education system. 10 Building new primary schools to needed in 2013b accommodate these children would incur a public cost of GH₵ 122 nearly GH₵ 500 million (table 14). Estimated recurrent costs per yearc million GH₵ 660 Table 15. Infrastructure Costs of Accommodating 470,000 Estimated building costs Out-of-School Children in Public Primary Schools milliond Number of out-of-school students of 470,000 Source: Cost figures based on citation for Ghana 2014b MOFED. primary-school age (2013) Notes: a. Roughly one-third of Ghana’s population is of school age (preprimary through senior high school). Construction cost per student GH₵1,041 b. Based on an average school size of 923 students. (from table 11) c. Figure calculated by multiplying the number of students by the annual recurrent cost per student (GH₵ 490, see table 11). Cost of building new public schools for all GH₵ 489 d. This figure is obtained using the per-student construction costs by school out-of-school students million level (preprimary through senior high school) from table 12, assuming an equal number of students at each grade level. Although it is likely that there Source: See table 12. would be a greater number of students per grade at lower education levels, assuming an equal number of students in each grade accounts for both lower current enrollment rates and lower current numbers of school facilities at Accommodating all of these students in the public school higher grade levels. system would require a recurrent cost of GH₵ 230 million (table 15). Alternatively, the private education sector These findings demonstrate the considerable costs could accommodate these students at a much more associated with the expansion of public services required affordable price. If, rather than supplying spaces in new to meet the education demands of Ghana’s growing or existing public schools, funds were provided through population. It may be unrealistic to assume that, given vouchers, scholarships, or conditional cash transfers for the current education environment, the Government of students to attend private schools, the government Ghana can adequately stretch the reach of its provision: would experience an annual cost savings of up to the country is already spending a substantial share of its GH₵ 105 million (table 15). GDP on education (8.2 percent). Evidence suggests that the private sector is responding rapidly to the government undersupply of education services in Kasoa. It is likely that similar trends are occurring in some of the country’s other rapidly growing urban areas. Unfortunately, the government does not have accurate information on the extent of the private supply due to 10 While the authors note that this figure could be significantly lower, given the be higher due to limited government information about the population in number of students attending unregistered private schools in the country, rapidly growing areas. they use the official statistic of 470,000. Correspondingly, the true value could SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 44 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Table 16. Recurrent Cost of Accommodating Out-of-School Table 17. Estimate of Government Provision of Out-of- Primary Children in Public and Private Primary Schools Pocket Expenses for Poorest Students to Attend Public Public Private Schools Total students in Ghana schools schools (primary, junior and senior 7,629,190 Number of out-of-school high schools) 470,000 primary students % of population below 24.2 % Total recurrent cost per national poverty line GH₵ 490 GH₵ 266a student Number of students living 1,846,264 Total recurrent cost of below poverty line GH₵ 230 GH₵ 125 places for all out-of-school Average per-student out- million million students of-pocket expenses for GH₵ 108 public schools in Kasoa Per-student cost savings in opting for private GH₵ 224 Annual cost of government provision provision of out-of-pocket expenses for poorest GH₵ 199 million Total cost savings in children to attend public opting for private GH₵ 105 million schools provision Source: See estimates in tables 11–14. Source: See estimates in table 12. Note: a. Average cost to attend a private primary school in Kasoa. The cost of covering private school tuition has not been calculated in this section because data collection did not Ghana currently has a student population of 7.6 million include information on how many students from the students. Official statistics in 2006 showed that 24 lower income quintiles were attending private schools. percent of the population lived below the national poverty line. 11 If the government were to cover the out- Expanding senior high schools has significant recurrent of-pocket expenses of the poorest students to attend and infrastructure costs. public schools, based on figures from Kasoa, it would cost around GH₵ 200 million annually (table 16). The government is engaged in the expansion of senior secondary education with the long-term goal of adding 200 new senior high schools. Building the infrastructure for these schools would cost the government an estimated GH₵ 2.6 billion (table 17). The cost of building one upper secondary school is estimated at US$ 4.3 million (GH₵ 12.9 million) (World Bank 2014). Additionally, the unit recurring cost of a senior high school was GH₵ 1,366 in 2013. The recurrent costs of 200 senior secondary schools would thus be GH₵ 273,200. If the private sector were to absorb some of the students targeted by the expansion of senior secondary schools, the government would defray a portion of the construction costs. In order to establish a new public- private partnership in which the government funds 11 World Bank, “World Bank Data: Ghana,” World Bank, Washington, DC. http://data.worldbank.org/country/ghana. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 45 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 private schools, new governance and financial arrangements would need to be considered, as explored in the next section. Table 18. Infrastructure and Recurring Costs of 200 Public Upper Secondary Schools A. Infrastructure costs Cost of building one new upper GH₵ 12.9 million secondary schoola US$ 4.3 million Cost of building 200 upper GH₵ 2.6 billion secondary schools US$ 860 million B. Recurring costs Unit recurrent cost of a senior high GH₵ 1,366 school, 2013 US$ 455 Total recurrent costs of 200 senior GH₵ 273,200 high schools US$ 91,067 Sources: World Bank (2014), Ghana MOE (2015). Note: a. The cost of building one new senior high school is estimated to be GH₵ 12.9 million (US$ 4.3 million) (World Bank 2014). SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 46 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Recommendations role to play in ensuring both quality and equity in the education system, regardless of the type of provision. This report presents five critical goals: The government can work with communities, private 1. Safeguarding access school associations, and non-governmental agencies to 2. Improving quality find solutions to these challenges, but strong 3. Ensuring equity partnerships are needed. 4. Delivering cost efficiency 5. Increasing data availability Increase information on school quality to parents, perhaps through school report cards, thus enabling The private sector could help the government address information flows and informed choices. some of these education sector objectives. This section outlines recommendations for doing so, among them, Increase information to parents through school report strengthening the regulatory environment, better cards for private schools, allowing them to make targeting government funding, and mobilizing private informed choices about their children’s schooling. These sector resources to reduce the current fiscal burden on measures could be similar to those introduced in public the government. These recommendations are supported schools so as to ensure comparability. It is also important by examples of other countries that have leveraged that the parameters and indicators for measuring different types of private sector engagement and lessons progress in education account for learning for all. To learned that Ghana could use to more effectively ensure that school choice decisions are based on leverage its own private sector in the future. More accurate information on the quality of educational rigorous impact evaluations in Ghana are also provision by a school, private providers should make recommended to assess the true impact of the private information available to all parents in a way that is easily education sector on learning for all. accessible and understood, even for parents and guardians who may not be literate. Such information 1. Safeguarding access sharing would support parents’ ability to use selection criteria (Fennell, Agbley, and Irfan 2010). Evidence from Recommendation 1: The government need not be the Pakistan shows that school report cards improve learning sole provider of education services but, in response to by 0.1 standard deviations and reduce fees by almost 20 fast growing urban areas, should play a stewardship percent. The largest learning gains (0.34 standard role and strengthen the current regulatory deviations) were made by initially low-performing environment. (below median baseline test scores) private schools (Andrabi, Das, and Khwaja 2009). Due to current fiscal challenges, the Ghanian government will not be able to be the main provider of The introduction of school report cards requires stronger education in many rapidly growing urban areas, but still partnerships between government and private schools. has a role as steward in the regulation of these schools. Private school associations can also play a key role by The findings from Kasoa showed that among 211 total schools, 204 were private and only 7 public. The government must strengthen the regulatory environment for independent private schools and increase access to information for both parents and education providers. The ministry of education has a key SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 47 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 encouraging their members to share vital information school action plans (Flórez Guío, Chesterfield, and Siri with the government. 12 2006). Country examples: Ensure certification requirements are transparent, easily accessible, and related to learning. Parana state in Brazil was an early adopter of school report cards. Between 1999 and 2002, these report cards Schools in Kasoa reported a number of different were introduced to inform school communities and certification criteria. Strict certification guidelines can stimulate their deeper involvement in the school discourage private providers from operating legally, or improvement process. School report cards were even operating at all in some cases (Härmä 2011). The disseminated to a wide range of stakeholders including government of Ghana is urged to simplify private school all schools, Parent Teacher Associations, municipal certification guidelines and make them more freely education authorities, and all 70,000 state education available. The requirements need to be sequenced and employees (including 46,000 teachers). Overall results prioritized, for example, making adequate and safe were reported in the state education secretariat’s premises and a suitable learning environment a first monthly newsletter, used in teacher and PTA workshops, step, followed by less critical requirements at later and disseminated via press releases and press stages. Meta-analysis of education studies in developing conferences (EQUIP2 2013). countries found that adequate numbers of textbooks, exercise books, blackboards, chairs, desks, and a high- In the Dominican Republic, El Salvador, Guatemala, quality roof, walls, floors, and electricity are more Honduras, and Nicaragua, a USAID-funded program, important. By contrast, no evidence was found on the Civic Engagement for Education Reform in Central importance of computers or other more costly America (CERCA), implemented a school report card that interventions (Glewwe et al. 2011). focused on indicators in four areas: 1. Context: basic profile information (number of The government should also work with the private school students in each grade, etc.) and access to associations to successfully implement any changes to services at the school (sanitation, electricity, the certification guidelines. Greater advice and guidance etc.) on how schools can meet certification standards may 2. Inputs: class size, access to resources help speed up the certification process. (notebooks, pens, etc.), and access to social services (school meals, health programs, etc.) Country examples: 3. Processes: student and teacher attendance, school plan implementation, parent In New York City, the Department of Education oversees participation and supports new charter schools to improve learning 4. Results: coverage and efficiency (i.e., repetition opportunities and meet community needs. Charters and retention rates) have the autonomy to determine their own policies, design their own educational programs, and manage all The results of the School Report Card are used by human and financial resource aspects of their schools. communities to develop and monitor implementation of When a new charter school is established, a five-year 12 In 2015, Ghana introduced a school mapping portal for senior high schools, which is an online school report card for every public and private senior high school. For more information, click here. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 48 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 performance contract, or “charter”, is set up to ensure 2. Improving quality high student achievement. There are no minimum strict criteria for registration; instead, performance standards Recommendation 2a: Strengthen the implementation are organized under four guiding questions: of quality assurance mechanisms in all schools. 1. Is this school an academic success? Survey results from Kasoa show that only 78 percent of a. High academic attainment and registered schools take part in national student improvement assessments, and only 55 percent of schools submit b. Mission and academic goals required school improvement plans after an inspection. c. Responsive education program There is also confusion about the school inspection d. Learning environment regime, specifically, about the body responsible for 2. Is this school a fiscally sound, viable inspecting private schools. On average, students perform organization? better in schools with higher levels of accountability to a. Governance structure and organizational the state (Abdulkadiroğlu et al. 2011; Carnoy and Loeb design 2002; Woessmann et al. 2007; Hanushek and Raymond b. School climate and community engagement 2005). Current inspection arrangements need to be c. Financial and operational health clarified and strengthened for the education system as a 3. Is this school in compliance with its charter and whole, including for both public and private schools. all applicable laws and regulations? Sanctions could be introduced and administered by the a. Approved charter and agreement National Inspectorate Board to ensure high-quality b. Applicable federal and state law education delivery in all private schools. c. Applicable regulations (such as safe and secure school facilities) Strengthen the National Inspectorate Board so that it 4. What are the school's plans for its next charter can focus on quality. term? a. School expansion and model replication Ghana established the National Inspectorate Board (NIB) b. Organizational sustainability in 2008 to be responsible for overseeing educational c. School or model improvements (New York attainment, performance standards, district inspections, City 2013) and supervision. The government should ensure that the NIB, as an independent body, is empowered to carry out In England, the government clearly outlines the its quality assurance duties. This includes avoiding any guidelines for setting up a new publicly funded, privately duplication of effort, so that other parts of the Ghana managed Free School. A Separate NGO, the New Schools Education Service are not playing a similar role. The use Network, has been established to provide advice and of school improvement plans should also be more guidance on how to successfully set up a new free rigorously enforced in order to continue to improve school. 13 educational quality. 13 U.K. Department for Education (DfE), “How to Set Up a Free School,” DfE, London, UK, https://www.gov.uk/set-up-free-school (accessed February 2014). SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 49 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Country examples: Country examples: In Thailand, the Office for National Education Standards In the Netherlands, if a school fails to improve after an and Quality Assessment (ONESQA) was established in improvement plan is implemented, school management 1999. ONESQA is an independent agency, ensuring its receives an official warning. Subsequently, if the school neutrality and integrity. External quality assessment still fails to improve, it is reported to the Minister, who evaluates to what extent the quality of education can then impose administrative sanctions (Onderwijs required by learners, society, and the state meets Inspectie 2010). desired standards and efficiency targets. 14 ONESQA is also monitored on its performance effectiveness, quality In Bogotá, Colombia, the government has been of service, and the efficiency of its financial and successful in increasing accountability for quality budgetary administration (ONESQA 2010). standards by allowing non-state organizations to manage public schools. The state mandates certain academic Western Cape, South Africa requires schools to submit requirements and holds schools accountable for poor individual school improvement plans. Particular performance, imposing sanctions or even ending attention is given to those schools that did not achieve contracts for failure to reach determined standards the required pass rate on state examinations. Since this (Patrinos 2002). requirement was implemented, the number of underperforming schools has declined every year, from Recommendation 2b: Establish partnerships between 85 in 2009 to 26 in 2012 (Western Cape 2013). Along with high- and low-performing schools in order to improve Ghana, Western Cape is cited in a study that reviewed quality across the system. how the most improved schools continue to improve (Mourshed, Chijioke, and Barber 2010). The government of Ghana could create a school-to- school learning network to deliver higher-quality Introduce sanctions for underperforming private education for all students. Such a network would allow it independent schools. to leverage high-performing schools as mentors for low- performing schools. Many other countries are leveraging There are currently no clear sanctions for school-to-school learning in order to raise standards in underperforming independent private schools in Ghana. all schools. Relationships are sometimes facilitated by The use of sanctions for poor school performance is a the government, while in other cases schools themselves policy intervention that has helped raise the quality of take the initiative to learn from their peers. education in many countries (Patrinos 2002; Barrera- Osorio and Raju 2010; Chiang 2009; Rockoff and Turner Country examples: 2008). When schools face closure, re-organization, and other sanctions as the result of underperformance, they In Shanghai, China (one of the highest performers on have strong incentives to make school improvements. PISA), high-performing schools support low-performing Any sanctions would need to take into account the local schools to help turn around the latter’s performance. context and how best to meet student needs. This is done through a management contract, usually for a two-year period. Improved pedagogy and leadership are supported through exchanges of teachers and school 14 “ONESQA,” n.d., Bangkok, Thailand, http://www.onesqa. or.th/en/profile/973/ (accessed September 2013). SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 50 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 leaders between the schools. Matching is done by the who were able to go to the school of their choice, raised government. The mentoring program is accompanied by student test scores, increased completion rates, and a rigorous monitoring and evaluation system. The high- decreased repetition rates (Angrist et al., 2002). Effective performing school receives payment for its support only targeting is critical to support both equity and quality. if the lower-performing school meets the criteria The government of Ghana needs to carefully consider outlined in the management contract. The contract can how vouchers and/or scholarships will be targeted, be terminated and payments withheld if it is not including the use of proxy measures, community successful (Jensen and Farmer 2013). rankings, or self-selection. Each method has its advantages and disadvantages and needs to be tailored In Mozambique, new non-state schools are mentored by to the Ghanaian context. The institutional arrangements public schools for their first two years of operation. to implement these measures are also equally important Students in these new schools take their examinations in for making sure that the support effectively reaches the the mentor schools until the mentored school meets poorest students. The government may also consider certain criteria. This program acts as a quality assurance using government-funded private schools in districts mechanism for new schools (Mozambique MOE 1990, with particularly poor performance, while linking state 1994). funding to student outcomes. 3. Ensuring equity Country examples: Recommendation 3: Improve equity and efficiency by Andhra Pradesh, India has a population of approximately targeting resources to under-resourced households and 85 million and a rural poverty incidence of approximately locations. 20 percent. A voucher program was implemented in five districts of the state, with students allocated to schools Ghana has an estimated 470,000 out-of-school children based on a lottery. The cost of delivering education of primary-school age, although this number could be through a voucher to private schools was one-third of the much lower in light of the number of unregistered cost of the delivery in public schools. This cost difference private schools in the country. Evidence from Kasoa and was due to lower teacher salaries, albeit offset by the household budget surveys shows that parents from fact that private schools hire more teachers and have lower socioeconomic backgrounds are paying a higher smaller class sizes and less multi-grade teaching. proportion of their income in order for their children to Unannounced visits also showed that private schools had attend either public or private schools, which incur a longer school day, a longer school year, a lower teacher expenses of 6 and 15 percent of their income, absence rate, enhanced teaching activity, and better respectively. Many deprived areas also suffer from a lack school hygiene. After two years, student outcomes—as of supply of and/or poorly performing schools. measured by the average score across all subjects— showed that voucher recipients scored 0.13 standard Redistributive mechanisms can protect poorer students deviations higher than those who did not receive a and increase equity in educational opportunity. voucher. Students who attended private voucher schools Experiences from around the world have demonstrated scored 0.23 standard deviations higher (Muralidharan that effective use of targeted interventions allow and Sundararaman 2013). underserved populations to access education services in both public and private schools. For example, in Evidence from Cambodia suggests that a two-step Colombia, vouchers targeted to low-income students, targeting approach works best when low-income students are targeted first, and then among those SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 51 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 targeted students, scholarships are given based on merit. student pass rate on a semi-annual multi-subject exam, Two evaluations of the impact of scholarships for lower the Quality Assurance Test (QAT). At least two-thirds of secondary school have shown substantial increases in tested students must score above 40 percent on the school enrollment and attendance as a direct QAT. If a school fails to achieve the minimum pass rate consequence of the program. Recipients were 20–30 on two consecutive QATs, it is permanently disqualified percentage points more likely to be enrolled and from funding. A rigorous evaluation of the program attending school as a result of the scholarships. Impacts found that the threat of program expulsion had a positive on learning outcomes were, however, limited (Filmer causal impact on student learning. Schools threatened and Schady 2008, 2009, and 2011). A new approach to with losing access to subsidies were nearly always scholarships at the primary level was subsequently tried successful in raising student scores to meet the minimum with two different targeting mechanisms: one based on pass rate on subsequent exams: where only 49 percent poverty level and the other on baseline test scores of schools in the study met the minimum pass rate in (“merit”). Both targeting mechanisms increased November 2007, nearly 100 percent of these same enrollment and attendance. However, only the merit- schools met it in March 2008. based targeting led to positive effects on test scores. The results suggest that in order to balance equity and The program also offers two cash bonus benefits. The efficiency, the two-step targeting approach (target low- first is a teacher bonus for a high level of school income students first, then award scholarship based on performance on the QAT. Once every academic year, a merit) might be preferable (Barrera-Osorio and Filmer maximum of five teachers in each program school where 2013). at least 90 percent of students in tested classes obtained a score of 40 percent or higher on the QAT receive an In Bogota, Columbia the government developed a new award of 10,000 rupees (US$ 118) each. The second cash type of private sector engagement known as Concession bonus is a competitive school bonus for top school test Schools. The Concession School Program is designed to performance. Once every academic year, the program broaden the coverage and quality of primary and school in each of the seven main program districts that secondary education in the country. It consists of a has the highest share of students with a score of 40 contract between a group of private schools and the percent or higher on the QAT is awarded 50,000 rupees public education system under which private actors (US$ 588) (Barrera-Osorio and Raju 2010). provide education to low-income students in 25 schools for a period of 15 years. Schools must meet performance 4. Delivering cost efficiency standards for both quantity and quality set by the secretary of education in order to quality for continued Recommendation 4: Private finance initiatives could be government funding. Rigorous impact evaluations have used to mobilize private sector resources and reduce demonstrated positive results (Barrera-Osorio 2006). current government fiscal burdens, particularly with respect to expanding infrastructure at the senior high In Pakistan, the Punjab Education Foundation’s Assisted school level. Schools (FAS) program provides monthly per-student cash subsidies and free textbooks to low-cost private The private sector could be leveraged to help support the schools. The program grew exponentially from 8,573 building of additional senior high schools. Private finance students and 54 schools in 2005 to over 1 million initiatives involve the construction, management, or students and 3,000 schools in 2012. Participation in the maintenance of infrastructure. However, the design and program requires that schools achieve a minimum procurement process and capacity of the government to SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 52 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 provide effective oversight are crucial to ensuring that attributes into each of their schools. The result was a program goals are met. significant increase in student math achievement in treated elementary and secondary schools—by 0.15 to Country example: 0.18 standard deviations per year (Fryer 2014). In Brazil, the first public-private partnership (PPP) Randomized evaluations are a valuable tool that can be infrastructure project in education was awarded in 2012 used to obtain credible estimates of program impact. with the goal of expanding and strengthening preschool New educational programs in Ghana, such as the and primary education in Belo Horizonte, Brazil’s third- conditional cash transfers, vouchers, or government- largest city. A 20-year concession to construct 5 primary funded private schools recommended above, should be schools and 32 preschool facilities was awarded through piloted and evaluated using techniques that can a competitive tender process. The contractor will also accurately identify their impact. The relative quality of provide non-pedagogical services, such as maintenance education provided by public and private schools can and security. The partnership, which has mobilized $95 also be most accurately assessed using these methods. million in private sector investment, will expand access to early education to an additional 18,000 students (IFC In many circumstances, beneficiaries of pilot programs n.d.). can be randomly selected from a targeted population, as many sites and individuals are equally good locations for 5. Increasing data availability such projects. Pilots evaluated in this manner would form a sound basis for decisions to scale up a project Recommendation 5a: Encourage more rigorous (Duflo 2004). Positive results can subsequently build evaluations to determine the impact and cost of private political support for instituting a program at the national sector delivery; pilot new PPP models to determine level, while negative results can either inform effectiveness before scaling. adjustments to a program or signal that the intervention would be ineffective nationally. Moreover, such Little is known about the impact of the private education evaluations can provide accurate information on the sector on student outcomes or costs across the system. costs of particular education interventions. Rigorous impact evaluations focusing on learning outcomes need to be carried out in Ghana. In other Recommendation 5b: Improve national data availability countries researchers have set up randomized trials and on the number and location of schools; survey parents other types of evaluations to understand the non-state on their reasons for choosing schools. sector’s role in delivering learning outcomes. Research from these evaluations can help identify successful The results from Kasoa highlighted that high levels of delivery models; these lessons can then be transferred migration and the role of the private sector are often throughout the whole education system. For example, underestimated, given that many schools are an evaluation of a successful charter school in the United unregistered. The government plans to engage in a States found five distinctive attributes that were countrywide GPS mapping of schools. Careful positively related to student performance: increased consideration should be given to including private instructional time, more effective teachers and schools in the survey, particularly those that are administrators, frequent tutoring, data-driven currently unregistered. The government’s ability to instruction, and a culture of high expectations. One increase its information about where private schools school district in the United States—Houston Public currently operate and match this information with Schools District—adopted a policy to infuse these five SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 53 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 migration and population trends will require much greater dialogue between the government and the private sector, as well as a more holistic view of the education system. The government should also consider surveying parents to find out more about the factors that determine their choice of schools. The most recent survey data of this type is 2003. A new survey would allow the government to ensure education better meets the needs of its citizens. Country examples: In Lagos, Nigeria, a school census carried out in 2010 showed that 12,098 private schools and 1,606 government schools were operating in the state. The survey also showed that 961 schools were established in 2010 alone (Härma 2011). Based on the findings of the school census, the Developing Effective Private Education in Nigeria (DEEPEN) Program was launched in 2013. Its aim is to strengthen the partnership between the government and the private sector. The program focuses on regulation, not on financially supporting private schools, including clarity on operating rules, providing greater information, and raising the quality of private schools. In England, the Office for Standards in Education (OfSTED) has launched an online portal, Parent View, which asks parents for their opinion on 12 aspects of their child’s school, such as the quality of teaching and dealing with poor behavior. The information provided by parents is available on the website so that parents can compare schools. The data is also used to inform the sequencing and timing of school inspections. 15 15 OfSTED (Office for Education Standards in Education), 2013, “Parent View,” Webpage, OfSTED, Manchester, UK, http://parentview.ofsted.gov.uk/ (accessed September 2013). SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 54 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Establishing Priorities for Policy enrollment if all schools are too far from the home. Likewise, building schools near where students live will Recommendations not cause them to enroll if the financial costs of attending are too high. Policies and programs should be tailored to meet the most pressing challenges in the system, although In short, raising the availability of credible data should be improving national data collection is imperative for the pursued as an immediate priority, as it will enable the success of all policy decisions. government to better understand and address the complex needs of a multifaceted education system. The policy interventions recommended in this section target specific challenges facing the education system in Ghana—namely, safeguarding access, improving quality, ensuring equity, and delivering cost efficiency. As such, this report suggests that the Government of Ghana sequence its policy priorities in a manner that best aligns with the political and financial realities of its education system. Improving the availability and accuracy of national data on the entire education sector is imperative in order to effectively address any challenge in the long term, especially as migration and population growth are increasing the demand for education. It is thus recommended that the government of Ghana immediately take steps to improve the availability of both (i) supply-side and (ii) demand-side data to better understand the current barriers and solutions to educational access and quality. On the supply-side, national data should be obtained on the number and location of all government and non- government schools in the country. Additionally, the government should make efforts to gather accurate data on the infrastructure and operating costs of both public and private schools. On the demand side, data on the school choice motivations of households would greatly enhance more effective regulation of and support for private education providers. By obtaining information from families on what drives their choice of schools (e.g., cost, proximity, quality, curriculum, safety, etc.), the government will be better placed to develop more effective state and non- state education programs. For example, providing cash transfers or vouchers to students will not influence SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 55 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Appendix 1. Private Sector in Kasoa— municipality data on public and private schools—and cross-checking the information with data from the Methodological Approach ministry of education database—all previously known schools in these defined areas were identified, located Introduction and method digitally on the map with exact addresses, and used as starting reference points. This research sought to identify ways in which the policy and regulatory environment might be improved by Previously known schools were visited first. Additional increasing cooperation between the public and private schools in nearby streets and neighborhoods were then sectors. It also tried to identify ways to improve the located through snowballing methods. Snowball quality of information available to policy makers, sampling—otherwise known as chain-referral multilateral agencies, and donors on the private sector sampling—uses a small pool of initial informants (e.g., contribution to education. schools) and the community around them to nominate other participants who meet the eligibility criteria To this end, in-depth research was carried out between (private K–12 schools). Thus, study subjects and March and August 2013 to develop a better residents around the schools contribute their knowledge understanding of the policy and operating environment to identify additional subjects. In our sample, school in which the private education sector currently works in heads were asked to identify their three nearest Ghaha. The bulk of the data was collected through competitors, thereby identifying other neighboring surveys of school heads. Topics of key interest included institutions (box A1.1). As the sample was built up, the size, growth, and different operating models of the enough data was gathered to complete the census. This private education market. This effort generated data technique, often used to identify hidden populations, used to explore policy implementation and dialogue. worked well in Kasoa because many schools are not currently recorded in official records. Given the time and cost constraints of carrying out nationally representative research, the study identified a Box A1.1 “Snowballing” to Locate Private Schools single locality in the central region of Ghana—Kasoa—to • Identify schools from official central government investigate the existing public and private school market. records, municipality information, associations’ The research focused on the activity and behavior of member lists (likely to be subject to change, but non-state education providers. Kasoa was identified as a indicative). region likely to have a large private sector, given its rapid • Approach private school associations, residents, growth as a peri-urban community bordering the Greater people walking by, shops, and ask for contacts. Accra Region, and was thus selected as the study locality • Ask each school about schools nearby and schools for this in-depth research on Ghana. that are competing with them for students, then go on to school in reach. Snowball and respondent-driven sampling • Continue snowballing with contacts to add additional stakeholders, if necessary. Accurate identification and location of each public and • Ensure a diversity of contacts by widening the profile of persons involved in the snowballing private primary and secondary school in the city was exercise. required. The first step entailed digitally identifying and mapping the borders of Kasoa. The total area of the town (about 60 sq. km) was then divided into three subareas The study team trained local researchers from the to facilitate the mapping exercise. After obtaining University of Ghana to conduct the field work. The field SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 56 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 work included (i) locating and identifying the GPS coordinates for private and public schools (mapping that could prove very useful in planning future education projects in the country) and (ii) completing a provider survey in coordination with local private school associations. A team of field researchers (team advisor, supervisor, and four enumerators), together with a World Bank senior education specialist, conducted a full pilot survey that covered 45 schools in Kasoa during May 2013. During this pilot, three public schools were used as reference points and, through the use of snowballing, the team systematically located private schools in the area. GPS coordinates were recorded for all of these schools. For 34 schools, full information was obtained and for 4 additional schools, the survey instrument was partially completed, requiring additional visits to complete. For another 4 schools, data collection was rescheduled for another day at the request of the administrator. The cooperation of the community and the schools surveyed was very high: only one school headmaster refused to participate. Field researchers continued the field work in consultation with the World Bank team in Ghana and Washington, DC. Data collection on private schools was completed in August 2013. More information was gathered on public schools in the area during the month of September 2013. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 57 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Appendix 2. Regulatory Environment— Box A2.1 Key Private Sector Engagement Policy Goals Methodological Approach i. Encouraging innovation by providers: Local decision making and fiscal decentralization can have positive effects on school and student outcomes. Most high- SABER-EPS assesses the extent to which policies facilitate achieving countries allow their schools substantial the quality, access, and equity of private education autonomy over managing resources, personnel, and educational content. Local school autonomy can services. SABER-EPS is intended to support governments improve the power of the poor in determining how in establishing a regulatory environment that engages local schools operate. private providers in a unified national effort to improve ii. Holding schools accountable: If schools are given education service delivery and student outcomes in both autonomy over decision making, they must be held public and private schools. accountable for the outputs they produce. Increases in autonomy should be accompanied by standards and interventions to increase access and improve Key policy areas quality. The state must hold all providers in the system accountable to the same high standards. SABER-EPS collects data on four key policy areas that iii. Empowering all parents, students, and international evidence has found effective for communities: When parents and students have strengthening accountability mechanisms between access to information on relative school quality, they have (i) power to hold schools accountable and citizens, policymakers, and providers (box 6). These (ii) voice to lobby governments for better-quality policy goals were identified through a review of rigorous services. For empowerment to work equitably, research and an analysis of top-performing and rapidly options for parents and students should not depend improving education systems; 16 they are effective on wealth or student ability. mechanisms for guiding governments to raise incentives iv. Promoting diversity of supply: By facilitating the and accountability for the provision of high-quality market entry of a more diverse set of providers, governments can increase responsibility for results, education services in their countries. as providers subsequently become directly accountable to citizens as well as to the state. Across the world, governments can improve education outcomes by adopting numerous strategies to support the non-state provision of education. SABER-Engaging the Private Sector benchmarks the key policy goals across the four most common models of private service delivery: 1. Independent private schools: schools that are owned and operated by non-government providers and are financed privately, typically through fees. 2. Government-funded private schools: schools that are owned and operated by non-government providers, but receive government funding. 3. Privately managed schools: schools that are owned 16 For more information on the global evidence underlying these policy goals, see the SABER framework paper, “What Matters Most for Engaging the Private Sector in Education” (Baum et al. 2013). SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 58 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 and financed by the government, but operated by policy intent. Data for policy dialogue was obtained from non-government providers. surveys conducted with the five largest private school 4. Voucher schools: schools chosen by students to associations in Ghana: GNAPS, Depshe, GNAPS Region 1, which the government provides funding; these can GNAPS Region 2, GNAPS Region 3. be government or non-government providers or both, depending on the system. Benchmarking levels Data collection process for policy intent, Figure A2.1 SABER Rubric Benchmarking Levels implementation, and dialogue The data collection process includes a review of policies regulating non-state education providers and implementation of those policies. For each policy goal described above, the country receives a score between 1 and 4, representing four levels of private sector engagement: 1 (Latent), 2 (Emerging), 3 (Established), or 4 (Advanced). A score of Established is the desirable minimum outcome for each policy goal. It is advised that countries aspire to the Advanced level in those areas that Source: Baum et al. (2013). most contribute to the national vision or education priorities. The overall score for each policy goal is computed by At the level of policy intent, countries are scored aggregating the scores for each of its constituent expressly on their laws, policies, and other officially indicators. For example, a hypothetical country receives documented regulatory norms. In Ghana, data for policy the following indicator scores for one of its policy goals: intent benchmarking was collected from the following Indicator A = 2 points; Indicator B = 3 points; Indicator C official government policy documents: = 4 points; Indicator D = 4 points. The hypothetical • Education Act 778 of 2008 country’s overall score for this policy goal would be: • Ghana Education Service Act 1995 (2+3+4+4)/4 =3.25. The overall score is converted into a final development level for the policy goal, based on the • Education Strategic Plan 2010–2020 following scale: • Quality Indicators for Evaluating School • Latent: 1.00 – 1.50 Performance at the Pre-Tertiary Education Level in Ghana • Emerging: 1.51 – 2.50 • Guidelines for School Inspection and Code of • Established: 2.51 – 3.50 Conduct for School Inspectors • Advanced: 3.51 – 4.00 For policy implementation, countries are scored by In reality, education systems are likely to be at different means of surveys of school providers, who describe the levels of development in different areas. For example, a ways in which policies are actually practiced in their system may be Emerging in Holding Schools Accountable schools. Data for policy implementation benchmarking but Advanced in Promoting Diversity of Supply. While was collected in the survey of a random sample of intuition suggests that it is probably better to be further schools in Kasoa, using the same questionnaire tool as along in as many areas as possible, the evidence is SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 59 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 unclear as to whether it is necessary to be functioning at Advanced levels for all policy goals. Therefore, one might view the Established level as a desirable minimum outcome to achieve in all areas, with goals beyond that level limited to those areas that most contribute to the national vision or education priorities. In line with these considerations, the ratings generated by the rubrics are not meant to be additive across policy goals. That is, they are not meant to be added together to create an overall rating for engaging the private sector. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 60 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 Acknowledgements This pilot country in-depth report presents data collected using the SABER-EPS provider-level data collection instrument. The report was prepared in consultation with the Government of Ghana. This SABER-EPS country report was prepared by members of the SABER-EPS team at World Bank headquarters in Washington, D.C., by the report’s lead authors. Subsequent edits and select updates were incorporated by Minju Choi. Guidance and inputs were provided by Inuwa Abubakar, Fahma Nur, and Harry Patrinos. Additional team support was provided by Rachel D. Cooper and Kanupriya Misra. The report benefited from the guidance and support of the SABER Secretariat team including: Jessica Cross Seely, Jung-Hwan Choi, Peggy McInerny, Cassia C. Miranda, Tara Danica Siegel and Qianjing Wang. The SABER-EPS team gratefully recognizes the leadership, support, and guidance of the World Bank Ghana education team: Eunice Yaa Brimfah Ackwerh (Senior Education Specialist), Deborah Newitter Mikesell (Senior Education Specialist), Peter Darvas (Senior Education Economist). The SABER-EPS team acknowledges the support of all who have contributed to the report. Any inaccuracies are the sole responsibility of the authors. The team also gratefully acknowledges the generous financial and technical support of the United Kingdom Department for International Development for the Education Markets for the Poor research study in the region, which made this work possible. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 61 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 References Barrera-Osorio, F., and D. 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SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 66 THE ROLE OF THE PRIVATE SECTOR IN BASIC EDUCATION IN GHANA PILOT COUNTRY REPORT |2015 www.worldbank.org/education/saber The Systems Approach for Better Education Results (SABER) initiative collects data on the policies and institutions of education systems around the world and benchmarks them against practices associated with student learning. SABER aims to give all parties with a stake in educational results—from students, administrators, teachers, and parents to policymakers and business people—an accessible, detailed, objective snapshot of how well the policies of their country's education system are oriented toward ensuring that all children and youth learn. This report focuses specifically on policies in the area of engaging the private sector in education. This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 67