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Why
the private sector
is so important |
Various governments have tried to fulfill
the constitutional requirement to ensure that people have
access to primary and secondary education in Pakistan
No less than 23 different policies, plans, programs and
schemes have been initiated by different governments since
1947, and in all of them the set targets were not achieved.
This failure demands a thorough review of existing processes
and procedures.
The education sector in
Sindh, as well as in Pakistan, has been plagued by problems
like low budget allocations, disproportionately large
allocation on recurrent expenditures like salaries, a
dismal utilization level (see table 1) of the money set
aside for development, and a low level of productivity
among the education department's administrative staff
as well as teaching cadre.
Figures in million
Year |
Budget utilized |
Total enrolment |
% Increase in
expenditure |
% Increase in enrolment |
1996-97 |
8,873 |
3.158 |
- |
- |
1997-98 |
10,317 |
3.187 |
16 |
0.91 |
1998-99 |
10,400 |
3.089 |
0.80 |
-3.0 |
1999-00 |
11,602 |
3.057 |
11.5 |
-1.0 |
Total loans/grants provided
during same period Rs. 662.225 million
Source: Education sector reforms: Action Plan (2001-2004)
SEMIS Census Report
Given this situation, the
private sector has a significant role to play. But it is
argued - and to some extent this is correct - that the private
sector is concentrated only in Sindh's urban areas and that
it charges fees that are often unreasonably high. However,
abandoning market forces should not be a policy option,
instead the solution lies in strengthening and helping the
private sector, and in the government busying itself in
a more regulatory role correcting market distortions.
Often policymakers have believed
that simply increasing the education budget is enough
to increase enrolment and standards in Pakistan or that
they have overestimated its role in such matters. For
example, investment in primary education in Pakistan almost
quadrupled from Rs 9.563 billion to Rs 38.674 billion
in the 90s but the enrolment rate did no go up. At the
beginning of the 90s, it was 69 per cent and by the year
2001 has risen to 74 per cent.
Table 1 shows Sindh's education
budget, how much of it was utilized and its effect on
enrolment. Despite an increase in the budget by 28.3 per
cent, enrolment fell - by three per cent. Furthermore,
the dropout rate, which was 47 per cent in 1998 increased
to 51 per cent in 2001 (Social Policy and Development
Centre, Annual Report, 2003).
Table
2 |
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Figures
in million |
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Total
education budget |
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Actual
expenditure |
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Utilization
(%) |
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|
Year |
Total |
Dev. |
Recurrent |
Total |
Dev |
Recurrent |
Total |
Dev. |
Recurrent |
1998-99 |
16,286.73 |
14.16 |
85.84 |
10,173.739 |
0.76 |
99.24 |
62.47 |
3.35 |
72.22 |
1999-00 |
14,250.78 |
8.65 |
91.35 |
11,601.862 |
1.54 |
98.46 |
81.41 |
14.46 |
87.75 |
2000-01 |
15,078.24 |
8.44 |
91.56 |
12,332.492 |
1.24 |
98.76 |
81.79 |
12.00 |
88.22 |
2001-02 |
14,337.69 |
8.02 |
91.98 |
14,427.00 |
2.06 |
97.94 |
100.62 |
25.83 |
107.15 |
Avg |
|
9.8 |
90.18 |
|
1.40 |
98.60 |
81.57 |
13.91 |
88.83 |
Source:
Ministry of Education (Government of Pakistan),
UNESCO |
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Another problem is in the
distribution of Sindh's education budget. On average,
only 9.5 per cent of the budget is allocated for development
activity with over nine-tenths going to recurring or non-development
expenditure. And, even this meagre proportion is often
not utilized. In fact as the table suggests, a mere 15
per cent of the development budget has historically been
utilized.
This low absorption capacity clearly shows that even if
the government increases the education budget in absolute
terms, much of that money will not be utilized. This happens
because the system of disbursement and use has structural
faults which first need to be removed. Unless this is
done, the goal of education for all (EFA) will remain
a distant dream.
Since 1951, no less than seven education plans have been
drawn up and on each occasion the target set for primary
enrolment has not been even close to achieved. In fact,
the target enrolment rate set in the Sixth five-year plan
(75 per cent) for the period 1983-88 has yet to be achieved.
Let's take a look at the private sector now. At present
there are about 30,000 private educational institutions
in Pakistan with an enrolment of approximately three million
students. In Sindh, according to 1999-2000 Census of Private
Educational Institutions in Pakistan, there were 2,572
privately-owned primary schools with a total enrolment
of 0.935 million students.
Figures (see table 3) suggest that every third child of
primary school-going age is enrolled in a private school.
This can be explained by the fact that while there are
far fewer primary schools the average size of their student
body is much larger than that of a government school.
The majority of private schools are concentrated in Hyderabad
and Karachi districts and they have almost 85 per cent
of the total primary school enrolment for Sindh.
Table
3 |
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Figures
in million |
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Public
schools |
Private
schools |
Ratio
of public to private |
Total
enrolment |
2,348,684 |
935,292 |
2.5 |
Total
schools |
39,176 |
2572 |
18 |
Enrolment
per school |
60 |
362 |
- |
Source:
SEMIS-Census 2001, Census of Private Educational
Institutions 1999-2000 |
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Interestingly and contrary to the belief of many, private
schools in Sindh have a higher student-teacher ratio than
their counterparts in the public sector. The student-teacher
ratio is 58 students for every teacher for private schools
and 24 students for every teacher for government schools.
This statistic becomes even more interesting if one looks
at the average enrolment in a government school, which is
estimated to be around 60 students.
This means that, on average, every government school in
Sindh has not even three teachers to take care of teaching
of teaching for classes I to IV. This could be one reason
for the high dropout rate in government schools.
This comparison will not be complete without comparing the
quality of education being imparted by them. Another table
(number 4) shows the performance of students in Class IV
in terms of marks obtained versus type of school. Subjects
included in the survey were mathematics, Urdu and general
knowledge.
Table
4
Percentage distribution of Class IV children in
terms of marks attained & type of school |
|
Type
of school |
Less
than 40 % |
More
than 60 % |
More
than 80 % |
Public |
11.7 |
31.0 |
25.1 |
NGO |
11.6 |
24.2 |
31.4 |
Private |
1.7 |
37.7 |
46.4 |
Source:
EFA-the Year 2000-Assessment Ministry of Education,
Government of Pakistan |
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As is evident, 46 per cent of students from private schools
obtained more than 80 per cent marks, while the corresponding
figure for students in government schools is 25.1 per cent.
Similarly, over 11 per cent of students in government schools
received fewer than 40 per cent marks while in the case
of private schools this proportion was only 1.7 per cent.
With less than satisfactory enrolment rates and high dropout
rates, the goals of universal primary education and EFA
require resources and capacity levels that are simply not
available with the government.
There are several reasons why the public sector will be
less efficient than the private sector. The problem lies
both at the individual and organizational levels. Since
government organizations are not driven by the profit motive
they have little incentive to maximize productivity, which
would show up in an increase in enrolment rates and an enhancement
of the quality of education. Another problem lies with the
strict rules that govern government recruitment which do
not allow for performance-based incentives. Hence, those
who could do a lot in this sector by working for the government
opt to work in the private sector.
One policy solution lies in the government, instead of working
to actually establish and run schools, creating an enabling
environment for the private sector to grow and provide education.
The Sindh government has been subsidizing education by providing
necessary infrastructure plus extensive incentives programs
to students and parents. Parents and students receive incentives
in the shape of free textbooks, access to the school management
committee fund and scholarships. But there is no choice,
as in parents are empowered to choose - accept or reject
- the schools of their choice.
At present, the government subsidy for a child of primary
school-going age comes to Rs 4,000 per annum. Even after
paying this heavy subsidy the results are far from encouraging.
It would make them more socially active and involved in
their child's education.
Sindh's total education budget for 2002-03 was Rs 18.876
billion. Of this, Rs.9.438 billion were allocated for primary
education. This amount alone can finance the annual education
of 7.865 million students which would be enough to cater
to the province's need given that the number of children
in the age group of 4-9 years is 6.226 million.
People tend to think that simply by increasing the education
budget both quality and quantity (measured in this case
by the enrolment rate) will increase. The above facts and
figures go to show that it isn't all as plain as that and
that the capacity of the government to effectively and efficiently
utilize the funds set aside for education needs to be improved.
Increasing the participation of the private sector is one
important step towards that.
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