54014 . March 2010 Number 22 QUALITY OF EDUCATION: THE GATEWAY TO EMPLOYABILITY Shamshad Akhtar1 high investments and improved access, the economic returns to education in Egypt remain Introduction: The Luxor Education Roundtable subdued and, unless addressed, carry the risk of (March 19-20, 2010) on the Quality of Education: The impeding the country's competitiveness as it Gateway to Employability was jointly organized delivers a work force which has lower productivity between Minister of Investment Mahmoud levels than its inherent potential. Mohieldin of Egypt and the World Bank. The Round Table is a direct response to a request from Youth Unemployment: Young educated entrants to the Government of Egypt (GoE) to identify and the labor market suffer from exceedingly high share best practices in the development of sound unemployment rates, estimated at around 24% of education systems around the world. The objective the 15-24 age group. This constitutes a significant is to enrich the current debate among Egyptian drag on the economy and on the aspirations of decision makers on how to improve the quality of youth for a better life. Enterprise surveys in Egypt education so that it contributes more effectively to indicate that the school to work transition is the country's future economic development. complex and firms report that worker skills and education are among the top five constraints in the Egypt - A Background on the Education Sector: business climate. Despite a growing supply of Egypt is known for its rich educational and employees with secondary and tertiary diplomas, intellectual traditions within the Middle East and employers still face a shortage of staff with the North Africa region and beyond. The country has skills and education they require, and overall not only achieved universal primary education but returns to education expenditure are low. its enrollment rates in secondary education, at 76%, Moreover, labor force participation rates among compares favorably with its peers in the region and women with university education actually decreased beyond. The share of population attending from 73% to 61% between 1998 and 2006. university education is also rising. This growth has been driven by a public sector which runs and Employment and the Quality of Education: Cross- manages the bulk of the system. However, despite country experience suggests that the principal reason for the paradox of expanded enrollments 1. and unmet demand for skills is the poor quality of This Fast Brief is based on the speech given by Shamshad Akhtar at the High-level Education Vice President , Middle East education. A few years ago, Harvard Economist and North Africa Region, The World Bank Roundtable held in Lant Pritchett asked "Where has all the education Luxor, Egypt for decision-makers and other key stakeholders from that country. gone?" in a paper that looked for ­and failed to find-- any significant relationship between an educated workforce as well the agencies which schooling and economic growth around the world. help shape that demand is the reason for the The key explanatory variable for this conundrum is inclusion of a wide range of Ministries in the Luxor low quality of education. As international evidence round-table was so valuable. on test scores mounted, a number of studies have been produced which do find a link between school Elements of a Successful Reform Process: There enrolment and economic growth, if we adjust for are no magic recipes to respond to these challenges. the issue of quality of education. Successful education reforms are usually wide- ranging, extended and multi-faceted efforts. Egypt and the Quality of Education: Egypt's story Worldwide experience indicates that, to succeed, with regard to the quality of education is mixed. education reform efforts need a focus on Internationally comparable test results at the governance issues that help align incentives with secondary level are as high here as in Latin results, a strong engagement with stakeholders, the America - a region with two to three times the GDP commitment of resources over the long-term, and per capita of Egypt. Nonetheless, they are still well robust monitoring and evaluation. with results. below scores in OECD countries, and they have not been improving quickly enough to improve labor The World Bank has experience from many market outcomes and economic growth. countries in supporting efforts to increase returns to investment in education. The Round Table At the tertiary level, rapid and highly subsidized included some of these partners who came to share expansion in a context of limited fiscal resources their experiences. Among the issues discussed were has resulted in a deterioration of quality. Poorly global experiences with programs ranging from paid and under-equipped staff face overcrowded pre-school to post-tertiary education including: (i) classes, with little incentive to improve outcomes. the expansion of preschool opportunities and The Vocational Training System remains incentives to parents; (ii) curriculum reform and fragmented between different ministries and quality assurance alongside decentralization of agencies, many programs are supply driven, and financing and responsibilities across education the quality of training programs remains low. levels, (iii) improved coordination between institutions of education and training within the How to Reform? Any discussion of reform has to government and (iv) targeted subsidies for youth take into account not only these realities but some and female employment school-to-work training further realities. Not least, since Egypt already programs. spends a large share of its GDP on basic education, further improvements at the primary and The forum proved the opportunity for open secondary level will need to rely on improved discussion among policy makers and experts from efficiency, not larger budgets. around the world on the way forward for Egypt as it seeks to reclaim its role as a leader in education in Furthermore, issues regarding returns to the Region with world class education institutions. investment in education in Egypt extend beyond The World Bank stands ready to work with Egypt ministries and government agencies directly on this important endeavor and to support the engaged in education and training. For example, efforts the government decides to undertake. international evidence suggests that more strict employment protection regulation is associated Concluding Notes: To conclude, it has to be with higher levels of informality. This suggests that recognized that Egypt is among the world's oldest education reform needs to go hand-in-hand with cultures with a well-established tradition of labor market reforms. The need to incorporate both learning and universities. This, coupled with its the concerns of those who provide the demand for standing in the Arab World, makes the country March 2010 · Number 3 · 2 uniquely positioned to design its own responses to Contact MNA K&L: the issues at hand while drawing from Emmanual Mbi, Director, MNA Operational Core international experience. Given the rich, diverse Services Unit: David Steel, Manager, MNA Development and world class experience that was brought to the Effectiveness Unit: Luxor round table, the Bank is optimistic that Regional Quick Notes Team: policy makers and education professionals in the Omer Karasapan, Roby Fields, and Aliya Jalloh country will take full advantage of this event and Tel #: (202) 473 8177 challenge themselves to further fine-tune their The MNA Quick Notes are intended to summarize reform agenda and develop actionable ideas lessons learned from MNA and other Bank Knowledge regarding the governance and financial and Learning activities. The Notes do not necessarily arrangements that Egypt needs to put in place to reflect the views of the World Bank, its board or its member countries. further improve the quality of its educational system. March 2010 · Number 3 · 3