Document of The World Bank Report No. 15570-GE STAFF APPRAISAL REPORT REPUBLIC OF GHANA BASIC EDUCATION SECTOR IMPROVEMENT PROGRAM May 24, 1996 Population and Human Resources Division West Central Africa Department Africa Region CURRENCY EQUIVALENTS (April 1996) Currency Unit = Cedis US$1.00 = 1550 cedis ACRONYMS AND ABBREVIATIONS ADB Africa Development Bank BE Basic Education BESIC Basic Education Sector Improvement Credit CIDA Canadian International Development Agency CSPIP Civil Service Performance Improvement Program CP Consultative Panel DACF District Assembly Common Fund DEO District Education Office DEOC District Education Oversight Committee GES Ghana Education Service ERP Economic Recovery Program EU European Union FCUBE A Program for Free, Compulsory and Universal Basic Education by the Year 2005 FIMTAP Financial Management Technical Assistance Project GER Gross Enrollment Ratio GNAT Ghana National Association of Teachers GOG Govemment of Ghana GTZ Deutsche Gesellschaft fur Technische Zusammenarbeit ICB Intemational Competitive Bidding IDA Intemational Development Association IOC Implementation Overview Committee IPPD Integrated Personnel Payroll Data JICA Japan Intemational Cooperation Agency ISS Junior Secondary School KfW Kreditanstalt fur Wiederaufbau LIB Limited Intemational Bidding MOE Ministry of Education MOF Ministry of Finance and Economic Planning MLGRD Ministry of Local Govemment and Rural Development MTR Mid-Term Review NCB National Competitive Bidding NGO Non-Govemmental Organization NIRP National Institutional Renewal Program NDPC National Development Planning Commission ODA Overseas Development Administration (U.K.) OHCS Office of Head of Civil Service PMU Project Management Unit PREP Primary Education Program (USAID) PSDP Primary School Development Project PTA Parent Teacher Association PUFMARP Public Financial Management Technical Assistance Project SDR Special Drawing Rights SMC School Management Committee SSS Senior Secondary School UNDP United Nations Development Program UNICEF United Nations Children's Fund USAID United States Agency for Intemational Development WDR World Development Report FISCAL YEAR EDUCATION STRUCTURE January I - December 31 Years 1-6 Primary SCHOOL YEAR 7-9 Junior Secondary September - June (Basic and Tertiary) 10-12 Senior Secondary and Technical January - December (Sr. Secondary) 13-16 University 4. PROGRAM IMPLEMENTATION ................................................... 29 A. PROGRAM PREPARATION ................................................... 29 B. PROGRAM MANAGEMENT AND COORDINATION ................................................ 30 C. PROGRAM MONITORING, REPORTING AND SUPERVISION .................................. 31 D. PROCUREMENT ................................................... 32 E. DISBURSEMENT ................................................... 36 F. ACCOUNTING, AUDITING, AND REPORTING ................................................... 37 G. PROGRAM BENEFITS AND RISKS ................................................... 37 Program Benefits ................................................... 37 Program Risks ................................................... 39 5. AGREEMENTS TO BE REACHED AND RECOMMENDATION ........................... 39 ANNEXES I Basic Data Sheet 2 Descriptors of Basic Education 2-1 Participation Indicators 2-2 Efficiency Indicators 2-3 Student Achievement Indicators 2-4 System Outcome Indicators 2-5 Teacher Quality Indicators, 1989-1994 2-6 Manpower Indicator 3 Fiscal and Economic Analysis 3-1 Expenditure Analysis 3-2 Equity Analysis 3-3 Cost-Benefit Analysis 3-4 Fiscal Impact and Financial Sustainability Analysis 4 Letter of Sectoral Policy 5 Operational Plan 5-1 Key Performance Indicators 5-2 Summary Implementation Plan 5-3 Key Areas of Technical Assistance 5-4 Supervision Plan 5-5 Procurement and Disbursement Schedules 6 Draft District Education Oversight Committee Agreement 7 Proposed Organizational Structure for FCUBE Implementation 8 Management Roles and Relationships 9 List of Key Source Documents in Project File MAP: IBRD No. 28045 REPUBLIC OF GHANA BASIC EDUCATION SECTOR IMPROVEMENT PROGRAM TABLE OF CONTENTS CREDIT AND PROGRAM SUMMARY ......................................................................... iii 1. INTRODUCTION.. 2. THE EDUCATION SECTOR AND SOCIO-ECONOMIC CONTEXT ........................ 1 A. ECONOMIC AND SOCIAL OVERVIEW .................................................................... 1 B. EDUCATION SYSTEM OVERVIEW ......................................................................... 2 C. KEY ISSUES IN BASIC EDUCATION .......................................................................5 Poor Teaching and Learning Outcomes ....................................................... 5 Lack of Management Efficiency .................................................................. 6 Unsatisfactory and Inequitable Access and Participation ............................ 9 Inadequate Financing Arrangements .................. ....................................... 1I1 D. PREVIOUS BANK OPERATIONS IN THE EDUCATION SECTOR .............................. 13 E. OTHER DONOR SUPPORT FOR THE EDUCATION SECTOR ..................................... 14 F. LESSONS FROM PREVIOUS IDA AND OTHER DONOR INVOLVEMENT IN GHANA EDUCATION ................................................................................... 14 G. RATIONALE FOR IDA INVOLVEMENT IN BASIC EDUCATION ................................. 15 3. THE BASIC EDUCATION SECTOR IMPROVEMENT PROGRAM ....................... 16 A. PROGRAM OBJECTIVES ................................................................................... 16 B. PROGRAM DESCRIPTION ................................................................................... 16 Component 1: Enhanced Quality of Teaching and Learning ........ ............ 17 Component 2: Management for Efficiency ............................................... 19 Component 3. Improving Access and Participation ................................. 22 C. PROGRAM COSTS AND FINANCING .................................................................... 24 Program Costs ................................................................................... 24 Program Financing ................................................................................... 26 Program sustainability ............................................................................... 27 This operation was prepared on the basis of a series of missions in 1995/1996, which worked closely with Govemment officials from the Ministry of Education and Ghana Education Service, and with donor agencies including ODA(UK), KfW (Germany), USAID, UNICEF and EU. Mission members comprised at different times Messrs/Mmes Gregory Hancock (Sr. Operations Officer), Kazuhiro Yoshida (Human Resources Economist), Josephine Woo (Project Officer), Irene Xenakis (Sr. Implementation Specialist), Tsri Apronti (Project Officer), Eluned Roberts-Schweitzer (Education Specialist), Sudharshan Canagarajah (Economist), Rebekah Kirubaidoss (Sr. Staff Assistant); and Kevin Brown, Gary Theisen, David Evans, Joanne Capper, Bing Deng, and Paul Turton (Consultants). Messrs/Mmes Rebekah Kirubaidoss, Geise Santos (Staff Assistant) and Ross Pfile (Projects Assistant) provided support for report production. Peer reviewers are Messrs/Mmes Marlaine Lockheed, Ward Heneveld, Nicholas Bumett and Dzingai Mutumbuka. Messrs. Ian Porter and Olivier Lafourcade are the managing Division Chief and Director, respectively, of the operation, REPUBLIC OF GHANA BASIC EDUCATION SECTOR IMPROVEMENT PROGRAM CREDIT AND PROGRAM SUMMARY Borrower: Republic of Ghana Implementing Agency: Ministry of Education/Ghana Education Service Beneficiaries: School age children, teachers, Ministry of Education, Ghana Education Service, and district authorities Poverty Category: Program of Targeted Interventions. Focusing on issues of education quality, equity and efficiency, the program will particularly benefit educationally less advantaged groups of the Ghanaian population, directly school-age urban and rural poor children, and indirectly their parents and communities. Credit Amount: SDR 34.7 million (US$50 million equivalent) Terms: Standard IDA terms, with 40 years' maturity Financing Plan: For phase 1 (1996-2000) of the Government's Basic Education Sector Improvement Program: US$ million Ghana (Govenrment/communities) ,5120.9 Ongoing donor support 54.0 Proposed donorf0nancing IDA 50.0 UODA (UK) 23.0 equiv. (£15.0 m) GrSAID (tentative) 53.0 Germany (tentative) /a 25.0 equiv. (DM 40.0 m) Other (to be confirmed) a 25.3 Rate of Return: Primarv Jr. Secondarv Private internal rate of return 27.7% 12.4% Social internal rate of return 18.5% 9.7% Project ID No. GH-PA-975 - The European Union, Japan and Norway have expressed their interest in supporting the program, but commitments are not yet firm. P Rates of return are based on mean earnings by each subgroup according to their educational background. The rate of return for primary education, for instance, compares costs and benefits between those with no education and those with primary education over the period of working life. It is also found that the rate of return to basic education is higher for girls than for boys in Ghana, justifying interventions targeting girls and poor children. ii FCUBE Program 1996-2000 Total Costs of Betterment Activities Local and Foreign Costs by Component (US$ million) Component Local Foreign Total % Foreign 1. Enhanced Quality of Teaching/Learning (a) In-Service Training of Education Personnel 7.7 2.1 9.8 21.0% (b) Pre-Service Teachers' Training 12.6 14.0 26.7 52.3% (c) Assessment/Evaluation of Student Performance 0.7 0.9 1.5 55.9% (d) Provision of Instructional Materials 38.7 47.7 86.5 55.2% (e) Curriculum Review and Development 0.5 0.4 0.9 46.1% Subtotal 60.3 65.0 125.4 51.9% 2. Management for Efficiency (a) Institutional/Organizational Analysis & Change 12.4 3.5 15.9 21.9% (b) Staffing and Personnel Management 4.3 1.7 6.1 28.3% (c) Performance Management 1.1 3.2 4.2 74.7% (d) Budgeting and Financial Management 0.4 0.6 0.9 60.3% (e) District Capacity Building 1.4 0.4 1.8 20.0% Subtotal 19.6 9.3 28.8 32.1% 3. Improving Access and Participation (a) Infrastructure Development and Maintenance 22.8 22.1 44.9 49.2% (b) Increasing Girls' Participation 1.8 0.5 2.3 20.0% (c) Schooling Improvement Fund (SIF) 8.9 2.6 11.4 22.5% (d) Information, Educ and Communication (IEC) 0.2 0.0 0.2 20.0% Subtotal 33.7 25.2 58.8 42.8% Total Base Costs 113.6 99.5 213.0 46.7% Price Contingencies 8.6 7.5 16.2 Physical Contingencies 6.6 5.8 12.4 Total Costs of Betterment Activities 128.8 112.8 241.6 46.7% Estimated Annual Disbursement (US$ million) j IDA FY 1997 1998 1999 2000 2001 Annual 2.5 11.7 13.3 14.8 7.8 Cumulative 2.5 14.2 27.5 42.2 50.0 REPUBLIC OF GHANA BASIC EDUCATION SECTOR IMPROVEMENT PROGRAM 1. INTRODUCTION 1.1 The Government of Ghana has requested IDA assistance of SDR 34.7 million (US$50.0 million equivalent) to help finance the first (five-year) phase of a basic education sector improvement program which will be implemented over the ten-year period 1996-2005, aimed at improving: teaching and learning outcomes; access to primary and junior secondary education (especially for girls and the poor); efficiency in resource management; and financial sustainability. 1.2 This request is based on experience gained over nine years from a series of Government, IDA and other externally funded activities in support of the national Education Reform Program. It is in response to a constitutionally mandated requirement that universal basic schooling be available to all young Ghanaians by the middle of the next decade. 2. THE EDUCATION SECTOR AND SOCIO-ECONOMIC CONTEXT A. ECONOMIC AND SOCIAL OVERVIEW 2.1 During the 1970s and the early 1980s, Ghana experienced a serious economic decline, bringing a country which once had enjoyed a relatively high living standard compared with other Sub-Saharan Africa (SSA) countries down to bedrock. The economy had contracted by 2-3 percent per annum during this period. Since launching the Economic Recovery Program (ERP) with support from the IMF, the World Bank and other donors, the Government has made thirteen years of efforts at economic stabilization and structural adjustment. The economy has been growing by an average of about 5 percent annually, or at around 2 percent per capita. The Extended Poverty Studyl found that during the middle stages of the ERP, poverty had fallen moderately. Sustained and even more rapid growth and more rigorous poverty-fighting activities are necessary to improve the quality of Ghanaian life within a reasonable time-span. 2.2 Government has adopted a strategy of trying to accelerate growth and to achieve social equity and poverty reduction, with agriculture and other parts of the private sector being the main engines.2 Over the past few years, the macroeconomic situation has been less favorable. Despite a successful turnaround in fiscal balance, annual inflation exceeded 60 percent in 1995. It is important that all segments of the population also benefit from growth through participating in economic activities. This requires all Ghanaians to be functionally literate and numerate. Ghana Poverty Past, Present and Future, The World Bank, 1995. 2 Ghana 2000 and Beyond: Setting the Stagefor Accelerated Growth and Poverty Reduction, The World Bank, 1993. 2 Human resources development is ranked highly among the Government's key development 3 objectives; and basic education has a crucial role to play. Key social, economic and education indicators for Ghana are shown in the Basic Data Sheet (Annex 1). B. EDUCATION SYSTEM OVERVIEW 2.3 Since independence in 1957, Ghana's educational services have been financed and provided mainly through the public sector, although private provision is an important part of primary schooling and technical training. Due to the heavy dependence on public financing, the macroeconomic turmoil of the 1970s and early 1980s plunged the country's education system into severe decline. Between 1976 and 1983, expenditures on education by the Government fell from 6.4 percent of GDP to 1.4 percent. A shortage of foreign exchange deprived schools of textbooks and other essential instructional materials. A mass exodus of trained and qualified teachers who were unsatisfied with poor conditions of service left nearly half of the primary teachers untrained. School buildings, furniture, and equipment deteriorated. In 1987, the Government initiated an overall education sector reform as an integral part of its national plan for economic recovery. This process restructured the school system; revised the curricula for primary, junior secondary school (JSS) and senior secondary school (SSS) levels; developed new teaching and learning materials; provided in-service teacher training; raised teacher qualification requirements; steadily replaced unqualified teachers; introduced several cost-saving/sharing policies; and began the process of administrative decentralization. In the early 1990's, the Government turned its attention also to the tertiary sub-sector, consisting of universities and polytechnics. These institutions were coming under increasing strain owing to the huge increase in social demand, in part brought on by the creation of mass schooling. Middle level technical training is provided by a mixture of public and private providers, but it is widely regarded as being non-responsive to changing labor market needs and the preferences of school leavers. 2.4 Structure. Ghana's current education structure is still in the consolidation stage. Prior to 1987, education in Ghana consisted of a six-year Primary; a four-year Middle; a seven-year Secondary (the first five years leading to the 'O' level certification and the last two leading to the 'A' level); and a three or four-year Tertiary. Legally it was possible to skip the middle school years by passing the Common Entrance Examination in class 6 of primary grade. In reality, however, the majority had to spend as long as 17 years for pre-university education. The structural change has been one of the key elements of the reform. The new system consists of primary (grades 1-6) and junior secondary (grades 7-9), together forming the Basic Education (BE) cycle, followed by the senior secondary cycle (grades 10-12); and several forms of post secondary education and training that include technical institutes, universities, polytechnics, and teacher training colleges. The final replacement of the old structure with the new structure is being completed during the 1995/96 academic year when the last cohort of students under the old system graduates. 2.5 Dimensions of Basic Schooling. Ghana's nine-year basic education cycle is nominally compulsory, and children are supposed to enter primary school at the age of six. Primary pupils are promoted to the next grade every year except for pupils (up to 5 percent) with extremely weak performance or poor attendance, who repeat with parental consent. In reality, quite a few pupils are over-age, and about one-fourth of the average Primary One (P1) cohort drops out by Ghana Vision 2020, Government of Ghana, 1995. 3 P6 (Annex 2-4-1). In the primary school, nine subjects are studied: English, Mathematics, Science, Agriculture, Social Studies, Life Skills, Ghanaian Language, Cultural Studies, and Physical Education. The lower primary classes (P1-3) are taught in the Ghanaian language prevailing in the local community; for P4 and beyond, English is the language of instruction. 2.6 After completing the sixth grade, all pupils are automatically eligible to enroll in JSS without being screened by examinations, subject to a place being available. JSS is expected to equip those who wish to enter the world of work with the necessary basic skills, or to develop the ability to continue study at SSS. Thus to meet these dual objectives, JSS curricula have been restructured, and new syllabi and teaching materials developed for thirteen subjects - technical and pre-vocational skills training have been added to the core primary subjects, with French as an elective course. 2.7 The access and participation situation in Ghana compares favorably with the Sub Saharan Africa (SSA) average, and with other countries with a similar level of per-capita income. Yet for a country which aims to join the newly industrializing economies, Ghana is facing a big challenge (Table 2-1 below). Global evidence demonstrates the importance of widening opportunity for quality schooling at both primary and secondary levels. In the national interest, efforts of the Government to strive for universal, quality basic education is not only a constitutional responsibility, it is a prerequisite for the economy to grow and for poverty to be reduced. Table 2-1. Basic Education Enrollments: A Comparative Look" | Primary GER Secondary GER Sub-Sahara Africa 67 18 Low-income' 66 26 Fast-growing' 99 52 Ghana 78 430 Source: WDR, 1995 and MOE, 1995. a Notes: Enrollment data is of 1992; for Ghana it is of 1993. b Excluding China and India. Average GER of 9 fastest growing countries (6% or more) d during the period 1980-93. A combined gross enrollment ratio for JSS and SSS. 2.8 In primary school, a teacher covers all subjects with her/his class group; and is supposed to be competent in at least two Ghanaian languages. Headteachers are nominally detached from teaching so that they can concentrate on school management and supervision. In many cases, the headteacher has class duties as well, leaving little time for proper school management. There are some 63,000 primary school teachers and 31,000 JSS teachers in schools. National Service provides additional temporary teachers, some 2,000 for primary and over 5,000 for JSS respectively who serve for two years. This makes a theoretical pupil/teacher ratio of 31:1 in primary and 20:1 junior secondary (Annex 2-2-2), although these national average figures do not capture the reality in many districts of overcrowded classrooms, a shortage of teachers, and in 4 JSS, a big difference in the student/teacher ratio by subject (Annex 3-2-8). As well, there are over 4,500 Ghana Education Service (GES) staff who are qualified as teachers but serve in administrative positions at headquarters, regional and district offices and at religiously-based educational units (Annex 2-6). To become a qualified teacher now, one has to be a graduate of either a teacher training college or SSS, and has to have been awarded a teacher certificate. Previously, many became teachers after completing the middle school, and without having any professional training. The situation has improved, and presently around three-quarters of primary teachers and two-thirds of JSS teachers are at least minimally trained and certified (Annex 2-5). The Ghana National Association of Teachers (GNAT) counts among its members all teachers at public schools and those teachers at private schools who are on a fixed term secondment from the public sector, as well as those with qualification for teaching but presently holding administrative posts. 2.9 Private Sector. Until now, Government policy on private sector provision of schooling may be described as lightly regulated laissez-faire. Private primary and to a lesser extent JSSs are currently spreading at a higher rate than public schools, mostly in urban areas. There are at least 900 private primary schools, accommodating about ten percent of primary enrollment nationally. In addition, there are 200 private JSSs enrolling some 30,000 students, about six percent of all JSS enrollments. These private schools charge instructional and other fees, and pay their own teachers while the Government provides textbooks and some other consumables. Fees presently range from 25,000 cedis to 65,000 cedis per term, with extra charges ranging between 5,000 and 10,000 cedis a year. GES certifies private schools and has tried to regulate fees, but has met with resistance on the latter from the private schools lobby. There are also several "international" schools offering high cost (and high quality) services to the national and expatriate elite without any support from the Government. 2.10 System Administration. The Government, through MOE, is responsible for basic education policy. MOE has four core functional divisions: Planning, Budgeting, Monitoring and Evaluation (PBME); Manpower Development, Training and Personnel Policy and Management; Statistics, Information Management, Public Relations and Research; and General Administration and Finance. In addition, there is a Project Management Unit (PMU), staffed mainly on a contract basis, to facilitate the administration of externally funded projects. MOE is supported operationally by the Ghana Education Service (GES), which was established in 1974, largely as a result of pressure from the Ghana National Association of Teachers (GNAT), to promote a sense of collegiality, accountability and peer discipline among teachers. GES, with offices at Accra, the ten regions and 110 districts, delivers and supervises education services. All public pre- tertiary teachers belong to GES. Each district, under the Local Government Act of 1988, is responsible for providing and maintaining basic school infrastructure. Teachers, and teaching and learning materials, are provided by MOE to all government schools. 2.11 Government Financial Commitment. The Government's current emphasis on the importance of education in the development process has been reflected in the budget for education. The education budget as a percentage of GDP has increased from the pre-ERP's low level of 1.4 percent in 1983 to 3.2 percent in 1989, and further to 3.8 percent in 1994 (Annex 3- 1). Hence, Ghana has shown relatively strong fiscal commitment to the education sector during its decade of structural adjustment. The proportion of the Government's annual discretionary budget allocated to education has averaged nearly 39 percent over the last five years, on an actual spending basis. Intrasectoral allocation since the educational reforms began in 1987 has 5 been in favor of basic education which has consistently received 60 percent or more of MOE's budget. 2.12 Financing the Basic Education Sector. Over the last four years, of the total amount of basic education recurrent expenditure, the Government has contributed about two-thirds, households about a quarter, and donors about 10 percent (Annex 3-1-3). For capital costs, districts are the major source of in-country domestic spending and on average they share the load equally with external aid partners, although contributions toward capital expenditures fluctuate significantly. Two major sources of funding for districts are the District Assembly Common Fund (DACF), a centrally distributed intergovernmental (i.e. national to district level) transfer of 5 percent of the national tax revenue; and funds generated by the districts themselves, with education levies accounting for most. The Government has thus been responsible mainly for recurrent expenditure, predominantly salary and administrative costs. Its spending on infrastructure and instructional materials has been very minimal; which has been compensated for by donors. 2.13 Despite substantial real increases over the years which have made teacher salaries relatively higher than those for civil servants of comparable rank, remuneration is still felt to be inadequate by many teachers. This contributes to alienation and to the inclination to pursue other income-generating activities. Making sufficient resources available for non-salary expenditures in schools to improve the quality of education outcome while maintaining teacher motivation through attractive incentive packages are challenging tasks. C. KEY ISSUES IN BASIC EDUCATION 2.14 Since establishing a joint forum with resident donors in 1994, MOE/GES has been engaged in collaborative sector studies. A top-level task group was formed by the Minister for Education to oversee the preparation of reports prepared by professional study teams involving local experts, and a series of participatory workshops has been held involving stakeholders. Parents, community leaders, district and regional officers, teachers, parliamentarians, and MOE/GES staff have all contributed to producing analytic reports that have identified the main issues which have been addressed in the MOE's Strategic Plan for Universal Basic Education (FCUBE). 2.15 The key issues in basic education flowing from the process outlined above can be categorized into four broad areas as follows: (a) poor teaching and learning outcomes; (b) inadequate access to education services; (c) weak management capacity at all levels of the system; and (d) unsatisfactory financing arrangements. Poor Teaching and Learning Outcomes 2.16 Over the past decade the present education system has been rebuilt on the ruins of its predecessor. However, despite increased resource inputs and enrollments, the reform movement has had very limited success so far in improving the quality of teaching and learning outcomes. Pupil achievement continues to be very disappointing. Criterion referenced tests conducted through a USAID project (PREP) on a sample of P6 pupils over the last few years continue to show appalling results. In 1994, only three percent of the pupils tested attained satisfactory scores for English, and merely 1.5 percent for mathematics (Annex 2-3). If the basic education 6 system continues to fail to produce acceptable outcomes, it will become politically difficult for the Government to maintain such a large share of budgetary resources for schooling, parental confidence will be totally eroded, and a downward spiral will negate the considerable progress over recent years as measured by a number of important indicators. 2.17 Causes identified for this problematic situation include: (a) lack of instructional materials and equipment despite the considerable external funding for them over recent years, and even where available, teachers often do not make effective use of them; (b) inadequate spending on non-salary recurrent items, especially at the school level; (c) high levels of pupil and teacher absenteeism; (d) insufficient teacher-pupil instructional contact hours; (e) inappropriate pre-service teacher training and inadequate in-service teacher training; (f) unmotivated teachers owing to ineffective supervision, unattractive incentives and low societal regard of the teaching profession; (g) an overly ambitious curriculum, burdensome to both teachers and pupils and; (h) didactic modes of teaching, namely, rote memorization and copying from the blackboard. Furthermore, many private and some public schools, especially some religiously based, do not actually provide the regular courses. A complicating issue is the language of instruction: poor rural children tend to have almost no access to spoken or written English in everyday life. In the lower primary school in which children's mother-tongue is supposed to be the language of instruction, insufficient supply of both educational materials and teachers who can communicate in local languages means that few pupils learn the skills of reading and writing even in their native language. The majority therefore have no linguistic framework to help them become literate in English as a second language. While recognizing that, as in most multi-linguistic countries, this is a political as much as a pedagogical issue, it is nonetheless having a devastating effect on the learning of core skills. Lack of Management Efficiency 2.18 Improving the effectiveness and efficiency of MOE/GES cannot be achieved through action in the education sector alone. A collective effort is required which will involve a wide range of stakeholders - other Government and public sector agencies, particularly the Ministries of Finance and Local Government, Office of the Head of Civil Service (OHCS), and the National Development Planning Commission (NDPC), communities and employees/unions representatives. Nonetheless, immediate strengthening of the management capacity of MOE/GES is required. Some of the immediate management issues to be addressed are summarized below 2.19 Effective management of basic education depends upon the institutional capabilities of five agencies - the twin bureaucracies of MOE and GES at the central, regional and district levels, the Ministry of Finance (MOF), the OHCS, and the schools themselves,. MOE formulates education policy, sets sectoral objectives, determines sub-sectoral resource allocation and monitors the provision of services. GES has its own enabling legislation, the Ghana Education Service Act of 1994, and provision for a Governing Council. It is the technical implementing arm of the education sector. While MOE is a civil service agency and GES a subvented one, to all intents and purposes they are administratively and budgetarily interrelated in their day to day operations. MOF holds the budgetary and resource allocation levers, although MOE/GES are expected to manage their allocations within prescriptive guidelines. OHCS controls the appointment of new personnel and senior managers. 7 2.20 Significant efforts have been made over the years to enhance the responsibility and authority of the GES District Education Offices (DEOs). In line with this, it is envisaged that the role of the Regional Education Offices would be one of coordinating and monitoring. Recently DEOs were given extended authority over some staffing matters, especially promotions, although the majority of personnel decisions, particularly those concerning appointments and severe discipline, continue to be taken centrally within the GES. In practice, the regions continue to play a significant managerial role in the preparation of budgets, although this is expected to change with the advent of financial decentralization. 2.21 Restructuring. In 1995, the GES initiated a review of its management structures at headquarters, regional and district levels in order to bring authority and responsibility for services closer to communities. As part of this process a workshop was conducted in March 1996 for MOE/GES managers, District Assembly members and headteachers in order to determine management responsibilities at different levels, to define the relationships between key bodies and to formulate priorities for institutional strengthening. The results of this exercise are set out in Annex 8. This has been motivated both by the pressing requirement to reduce non- school based payroll costs in order to make more resources available for schools; and by the political imperative to decentralize functions. The dilemma is that increased decentralization, whether administratively or politically motivated, often leads to demands for additional administrative staff and hence larger payrolls. The restructuring of GES, which is necessarily coupled with that of MOE, is being conducted in line with the National Institutional Renewal and the Civil Service Performance Improvement Programs (NIRP/CSPIP), the Government umbrella arrangement for public sector and financial management reform. The systemic issues arising from workshops, together with the outputs of beneficiary surveys, are currently being analyzed. These will form the basis for actions to address system-wide constraints to public sector performance and good governance. The restructuring of MOE/GES and the development of improved management systems and skills will need to be facilitated by, and harmonized with, this broader process. 2.22 Decentralization. The restructuring referred to above involves significant delegation of operational decision making to the district level. Hence it will give due regard to the local government reform movement which has been pursued since 1988 in order to promote popular participation in development by devolving powers and responsibilities for service provision to elected District Assemblies. As a result of the Local Government Acts of 1988 and 1993, District Assemblies have a legal mandate to take over specified Government services including the primary and junior secondary schools. District Education Oversight Committees (DEOCs) are in the process of being established (Annex 6). In order to effect this transfer of authority, responsibility and accountability for services to the District Assemblies, additional enabling legislation such as the passage of the Local Government Service Bill will be required. Further, "Common Funds" have been established to enable District Assemblies to meet capital expenditures for all sectors. In time, recurrent budgets may also be devolved to the Assemblies. Accordingly, the restructuring and decentralization which will take place within the MOE/GES will need to pave the way, ultimately, for full devolution of basic education services to the District Assemblies. 2.23 Devising improved and decentralized management structures and achieving clear roles and decision making authority are necessary but not sufficient conditions for institutional effectiveness. A number of other critical management issues need to be addressed to enable the MOE/GES to achieve its basic education goals. These are summarized below. 8 2.24 Organization Culture. Whilst proposals are being developed to streamline management and to delegate authority to the districts, a management culture which is rooted in centralized decision making and administration by formal directives remains largely intact. Resistance to change can be anticipated from some. Pre-emptive action is required to counteract impedance of further operational delegation and local initiative. 2.25 School Supervision. Inadequacies in the supervision of schools, both by district level officers and headteachers, and the limitations of disciplinary processes are seriously undermining effective teaching. Of particular concern are the quality and impact of school inspections and the degree of professional independence of the inspectors and circuit supervisors. The absence of an appropriate performance management framework which sets out clear and relevant accountabilities for monitoring purposes simply compounds the problem. 2.26 Educational Management Information. School census and survey data critical for planning and resource allocation are consistently reported too late to be of practical use. As a result, user units tend to collect their own information independently. This results in duplication of effort, data inconsistencies and validity problems, as well as overburdened district officials who are charged with data collection. The fact that units tend to operate in isolation further inhibits informnation sharing and exacerbates the problem. 2.27 Management Skills. There is a dearth of capable managers at all levels of the system because they have traditionally been selected on the basis of their teaching qualifications and experience. Subsequently very few receive any significant management training. Inadequacies in the supervision of schools, both by district education officers and headteachers, and the limitations of disciplinary processes are seriously undermining effective teaching and learning. Such weaknesses are reinforced by the absence of an appropriate performance management framework which sets out clear and relevant accountabilities for monitoring purposes. 2.28 Community Involvement. An important question is how communities can become more involved in the management of schools through the new School Management Committees (SMCs) and DEOCs recently legislated in the GES Act of 1995. Although parents are officially expected to play a more active role in school management, many continue to see their role as providing supplementary financial support only. This is partly due to some confusion between the roles of the PTAs and the SMCs and partly because teachers do not always welcome parental "intrusion". 2.29 Resource Allocation. There is a general shortage of instructional materials especially in primary schools and of trained teachers particularly in rural areas. There are also weaknesses in the resource distribution system and the teacher posting system, resulting in considerable inequities between schools, regions and districts (see para. 2.35). These problems are partly due to absolute resource limitations but can be attributed largely to failure in the resource allocation process which allows prior claim to personnel emoluments and to advantaged areas. 2.30 Rewards. Currently there are few incentives available to teaching and non-teaching staff, beyond the standard remuneration and conditions of service, to encourage and reinforce good performance. Specific performance-related rewards to motivate staff and salary range decompression to attract and retain people in positions of high responsibility, have to be devised and implemented. 9 Unsatisfactory and Inequitable Access and Participation 2.31 Basic education enrollments have been increasing. Enrollment in public primary education increased by more than 25 percent during the 1988-93 period from 1.6 million to 2.0 million. Enrollment in private schools increased relatively more rapidly from about 134,000 to 225,000. But because of population growth, enrollment ratios have been stagnating despite overall enrollment increases (see Table 2-2 below). The gross enrollment ratio presently stands at 78 percent for primary with 85 percent of children at age 6 entering the first grade (P1); and at 61 percent for JSS. Enrollment ratios in the north, where girls comprise only 35 percent of primary enrollments and as little as 25 percent in junior secondary, are up to 30 percent lower than the national average (Annex 3-2-8). Girls' enrollment ratios continue to decrease steadily through the grades (Annex 3-2-2). The direct and indirect costs of education together with parents' lack of confidence in the education system are discouraging poor families from sending their children, particularly girls, to school. Table 2-2 Population and Primary School Enrollments 1980-93 (in thousands) Average for the period Average Growth Rate 1980-84 1984-88 1988-93 1991-93 1980-84 1984-88 1988-93 1991-93 Population 11,516 13,138 15,270 15,963 3.7% 3.4% 3.1% 3.1% School age (6-11) 1,926 2,175 2,511 2,641 3.1% 3.1% 3.5% 3.8% primary (public) 1,468 1,586 1,778 1,855 2.5% 1.2% 3.6% 2.8% primary (private) 112 126 174 209 3.1% 3.1% 10.9% 4.9% GER (pub.& priv.) 82.0% 78.8% 77.7% 78.2% -0.5% -1.8% 0.2% -0.9% Source: MOE 2.32 During 1988-92, the number of public primary schools increased from 9,368 to 11,270. The mid-term review of the IDA-funded Primary School Development Project (PSDP) found that some districts, particularly in the north, put in a significant part of their budget for schooling. But due to limited financial capacity and inefficiency in resource management by the districts which are legally responsible for basic education infrastructure, the need to construct, maintain and rehabilitate school facilities is far from being met satisfactorily. Despite MOE's guideline that all children should not have to walk more than 5 km to school, in rural areas, many children walk in excess of 8 km. Progress through PSDP and other donor support notwithstanding, classes under trees are not unusual; and many schools do not have protection from rain or wind. The absence of systematic school mapping does not enable MOE to monitor the actual condition of infrastructure or to determine relative needs for rehabilitation and construction of new schools. 2.33 Weak Community Involvement. The majority of parents have not yet regained confidence in the public school system because of its perceived poor value for money. At present local communities have a limited role in the running of primary and JSSs: extra- curricular activities organized by Parent Teacher Associations (PTAs) are the most usual form of involvement. For this reason, communities feel little ownership of the schools their children attend; and frequently are mistrustful of attempts by the authorities to solicit community involvement lest it be an excuse for extracting additional financial contributions. MOE is aware 10 that new approaches to community participation need to be actively pursued. Draft constitutions have been prepared for the legislatively mandated SMCs at the primary and JSS levels. These committees have a potential role to play in relation to the new DEOCs and to District Assemblies. However, the SMCs as presently constituted will have limited influence as governing bodies until significant management responsibility is transferred to the schools themselves. 2.34 The key to successful community participation is to ensure that, having regard to distinct features, local people have a real influence over decisions which affect the quality of education their children receive. Ultimately, communities are likely to reject mechanisms which are seen as simply advisory or established to "rubber stamp" decisions taken by school or system officials. 2.35 Geographical Disparities. There are multiple disparities among regions. In 1992, the total gross enrollment ratio (including both public and private schools) for primary education was high in Volta, Ashanti and Greater Accra (ranged from 90 to 86 percent), much higher than the national average of 77 percent, while low in Upper East, Northern and Upper West ranging from 53 to 46 percent. The three regions with the lowest enrollment are also the three poorest regions. The private sector is especially active in Greater Accra, currently accommodating 36 percent of total primary enrollment, and in Ashanti (14 percent), the two regions with the country's biggest cities (Annex 3-2-7). Regional spending patterns, however, do not show evidence of action to mitigate this inequity. Upper East and Upper West, two of the most disadvantaged regions, spent only US$22-23 per primary school pupil in 1994 against the national average of US$52 (Annex 3-2-9). 2.36 The Poor. The fact that provision of basic education infrastructure is the responsibility of district governments and local communities works unfavorably against poor areas because of their lesser fiscal capacity, despite supplementary financial support by the central government. Also, there are various direct and indirect costs of schooling. The Bank's poverty study on Ghana shows that children without access to basic education predominantly belong to families of the poorer segment of the population (Annex 3-2-4). In efforts to mobilize resources locally for school maintenance, many districts, PTAs, and schools impose levies or fees. These additional costs further deny access by the poor. Many school-age children are contributing to family income in one way or another. For poor parents, the high direct costs of schooling, the critical importance of income earned by their children, and uncertainties about future higher earning deriving from participation in basic education, all contribute to their opting not to send all the children to school. The very poor households spend only half as much on primary education as the richest households do (Annex 3-2-5). In rural areas, where most of the poor reside in Ghana, households spend less on, and benefit less from, education than households in urban areas (Annex 3-2-6). 2.37 Girls. Access of girls to basic education, although gradually improving, is a major issue among gender concerns in education. On the encouraging side, particularly at the JSS level, the gross enrollment rate increased from 43 to 51 percent in the last five years, and the retention rate is also improving. Less improvement is seen at the primary level (Annex 3-2-1). However, at all grades of schooling, girls enrollment is lower than that of boys. Out of every 100 girls enrolled, 72 reach P6 and 51 reach JSS3, against the boys' 80 and 63, respectively. Such disparities increase in the north. Studies in Ghana show that in addition to the factors militating against the children of poor families attending school, factors known to impede the participation I1 of girls include: high opportunity costs of education for girls who are needed for household and child care and parents' perception of boy's superior returns to education; socio-cultural barriers to girls education, and traditional early marriages; lack of parent/community awareness of the benefits of girl's education; inability of parents to pay for the education of all their children, leading to prioritizing of boys; inappropriate domiciliary and hygiene arrangements associated with schools; and insufficient role modeling by women teachers. These access, retention and performance problems are sourced as much on the "demand" side (i.e. household behavior and cultural attitudes) as on the "supply" side (i.e. education policies and school facilities). Table 2- 3 summarizes these disparities at the district level. Table2-3. Basic Education Characteristics by Neediest Regions % of % of Pupil/Teacher District Total District Total Districts Ratio I.GUSHIEGUKARAGA 23.77 JUABESOBIA 25.38 GUSHIEGUKARAGA 56.11 ans,R@ex:t* 1eu-11[5]f12 * * * * 11 3.TOLONKUMBUNGU 28.13 AFRAMPLAINS 32.26 ACCRA 46.03 4.ZABUZUGU 33.02 SENE 38.89 SABOBA 42.57 5.EASTDAGOMBA 33.96 SAVELUGUNAN. 39.50 KASENANANKANA 41.87 6.NANUMBA 34.52 TWIFUHEMAN 42.30 BAWKUEAST 40.35 7.EASTMAMPRUSI 35.48 EASTGONJA 43.63 NADAWLI 40.05 8.BAWKUWEST 36.14 MPOHORWASSA 45.27 JIRAPALAMB 39.28 9.SABOBA 37.06 WASSAAMENFI 46.34 GA 39.10 10.BAWKUWEST 37.25 ASUNAFO 46.61 BUTLSA 38.70 1 IBONGO 37.25 ATEBUBU 46.69 BOLGA 38.07 * || 12.WESTDAGOMBA 39.21 SEFWIWIAWSO 48.53 KUMASI 37.82 13.EASTGONJA 39.90 ZABUZUGUTATALE 49.21 ANLO 37.50 14.13OLE 40.18 ADANSIEAST 49.25 BOLE 37.25 [15JIRAPA-LAMB 40.68 AMANSIEWEST 49.78 TEMA 36.86 Source MOE. Inadequate Financing Arrangements 2.38 The education sector has been receiving 36-40 percent of the Government's discretionary recurrent budget (net of debt servicing and other extra-budgetary items); and around 3 percent of the development (capital investment) budget. The expenditure side has been constantly beset by uncertainties concerning salary obligations. During the past several years for which expenditure data is available, MOE's actual expenditures have overrun the budget. Nearly the entire overrun can be attributed to salary related expenses while in some instances the meager amounts allocated to non-salary items have been underspent. The absence of a workable policy to contain overall personnel emoluments, and of a reliable and timely expenditure monitoring system are partly responsible for this poor financial management. In particular, data at the district level, by the time it is consolidated at the regional level and forwarded to GES headquarters, is out-of-date and is often inconsistent. The Government's central Integrated Personnel Payroll Data (IPPD) system is expected to address this problem, although inaccurate data processing sometimes plays tricks with names from the payroll. Internal resource allocation within the basic education subsector is also heavily influenced by the sheer size of the wage bill. Of total MOE/GES expenditures, personnel emoluments account for 85 percent. When looking at school-level basic education expenditures, around 98 percent of the national budget allocation 12 is absorbed by salary and related personnel costs with only a negligible remainder available for school operation and maintenance. GES staff already account for over 40 percent of total public sector personnel,4 but the policy goal of achieving universal primary education by 2005 indicates the need for further increasing the number of teaching staff. Given that the education sector receives more than one-third of the country's discretionary budget, it is essential to closely monitor the size of the sector's salary envelope. Textbooks and other teaching/learning materials are provided, but because the budgetary provision is so small, a substantial part of the costs of textbook provision is presently financed by donors. 2.39 Inappropriate disbursement practices further impinge use of limited financial resources. Due to uncertainty about the extent of outlays on the emoluments, MOE/GES does not seem to effect procurement of goods until the third or even the fourth quarter of the fiscal year. This often results in underspending of the already thin non-wage budget. Reallocation from salary to non-salary budget lines has not been allowed. With the recent agreement between MOE and MOF to undertake such internal reallocation, it is timely to establish a more user-friendly budgetary system. A more transparent system of budgeting has to be developed: the present system is extremely complicated and it is difficult to tell how much is actually spent on basic education or any other level of education. 2.40 Funds for rehabilitation have been provided through support from donors, NGOs, Districts and local communities. The Government has spent almost nothing on capital stock for basic education in the past decade, except for transfers to the District Assembly Common Fund (DACF). Special resource transfers to the needier regions were made, but the level of support has not been adequate. Until recently learning materials have been procured largely from abroad. This caused a serious supply shortage when foreign reserves and donor support were not available for this purpose. Moreover, even when textbooks have been procured, they have taken too long to reach schools. Development of local capacity to produce and distribute learning materials in a timely manner remains a challenge. 2.41 Until the concept of cost recovery was introduced under the Education Sector Adjustment Credits (EdSACs), the Government had no scheme for sharing the financial burden of public education. Textbook user fees of 0150 per pupil per year (later raised to 0250) were introduced in the P3 through JS3 range to offset production costs (less the cost of paper which was provided by CIDA). Also, students were charged for stationery items. Special revolving funds for stationary and textbooks were established but were not administered effectively. Primary education was regarded traditionally as being free of charges of any sort, and successive governments continued to declare that it should be free and universal. In 1991, when MOE imposed textbook fees for primary education, absolute enrollments dropped by 3.5 percent for the first time in a decade. The memory of the "good old days" still affects many parents' notions about the cost of education, and about who should bear them. Unlike decades ago when schooling was for a privileged minority, it is a pragmatic necessity in an era of mass education for governments to seek to establish cost-sharing arrangements to ease the burden on the public purse: the issue, of course, is one of equity. 2.42 For cost recovery schemes to be effective, collection rates and appropriate policies have to be addressed. It is MOE's intention to ensure basic education opportunities for all by reducing Ghana's public sector has some 345,000 staff; of this number, over 155,000 are GES personnel. 13 the actual private costs of the lower levels of public education and by increasing the proportion of cost-recovery at the higher levels. This is consistent with the differential rates in the social and private returns to schooling at different levels. Thus, in response to the decreased intake into the P1, the Minister for Education announced in January 1995 that textbook fees would be abolished for primary education. This policy decision was accompanied by a raising of the textbook fees at JSS to ¢1000. MOE policy explicitly forbids a basic education pupil being excluded for non-payment of fees of any sort on his/her behalf. Nonetheless, the de facto compulsory nature of ancillary levies is reported to be still widespread, with its accompanying exclusions. 2.43 Parents/guardians are asked to pay for exercise books, stationery, school uniforms, lunch, transportation, and some other fees and levies which can amount to ¢5,000 per pupil (US$3.25) in rural areas and to ¢ 12,000 (US$8.00) in urban areas. Table 2-4 shows some of the fees paid for each pupil on average in 1992. For large poor families, this means fewer educational opportunities, especially for girls and younger children. It is important that the Government clarifies and wins support for guidelines as to which direct costs the household should pay. This needs to be done in the context of overall sectoral financial planning. Table 2-4 Annual Private Costs of Publicly-Provided Basic Education (Cedis per pupil) Actual MOE guidelines 1992 Tuition fee free 1,331 Textbook user fees BE 3-9: 250 (Oct. 1990) ) 500 (1991) ) free for BEI-6 (1995) ) 710 Exercise books and for primary and JSS ) stationery ) PTA levy 264 Uniform 1,819 Food/lodge 2,126 Transportation 148 Others 966 Total 7,364 Source: GLSS 3: The Incidence of Social Spending in Ghana. 1992. D. PREVIous BANK OPERATIONS IN THE EDUCATION SECTOR 2.44 The two main objectives of the education reforn that began in 1987 have been to improve pedagogic coverage and to rebuild a financially sustainable education system. After an initial emergency Health and Education Project (Cr. 1653-GH, US$5 million for education sector), the implementation of the reform program was supported initially by the Bank through the First and Second Education Sector Adjustment Credits (EdSACs). EdSAC I (Cr. 1744-GH, US$34.5 million), which supported the first three years of the reform (1987-89) and closed on December 31, 1991, focused on the reform process particularly at the basic level (primary and JSS). EdSAC 11 (Cr. 2140-GH, US$50 million) supported the second phase of the reform 14 program (1990-92) to help consolidate the reform in basic education and extend it to the senior secondary level. The EdSACs have been followed by projects that respectively support: primary (Cr. 2508-GH, US$65.1 million), senior secondary (Cr. 2278-GH, US$15 million), and tertiary (Cr. 2428-GH, US$45 million) levels as well as adult literacy (Cr. 2349-GH, US$17.4 million) and vocational training in the informal sector (Cr. 2695-GH, US$9.6 million). In all, some US$240 million has been committed by IDA over the past twelve years. The ongoing Primary School Development Project (PSDP) is the antecedent to the proposed Basic Education Sector Improvement Credit (BESIC), and will partially finance the start-up of the FCUBE Program during 1996 until BESIC becomes effective. E. OTHER DONOR SUPPORT FOR THE EDUCATION SECTOR 2.45 Over recent times, the largest donors apart from IDA have been: USAID, which allocated US$35 million to primary education over a six year period (1991-96) and is currently in the process of formulating a follow-on program of assistance within the framework of FCUBE; ADB with US$20 million for tertiary education; CIDA with US$14 million mainly for technical education; British ODA with US$8 million for literacy and basic teacher education; Norway with US$8 million for literacy and school pavilions for basic education; and the OPEC Fund with US$4.4 million for school pavilions and school sanitation. The EU is providing earmarked adjustment funding to support non-salary recurrent expenditure in education. Other donors include World Food Program (WFP) for school feeding; UNICEF for primary and pre- school education; Switzerland for secondary school equipment; the Saudi Fund for secondary school development; GTZ of Germany for vocational school development and UNDP and ILO for institutional strengthening. KfW of Germany has recently completed its appraisal of a project to rehabilitate teacher training colleges serving basic schooling; and is about to prepare an implementation strategy in collaboration with GTZ, having regard to FCUBE. Various non- governmental organizations (NGOs) have provided assistance. F. LESSONS FROM PREVIOUS IDA AND OTHER DONOR INVOLVEMENT IN GHANA EDUCATION 2.46 Some US$240 million of IDA credits have been approved for the whole education sector in the past decade. Four projects are ongoing. The education reform movement at the school level, fueled with IDA and other donor support, has seen a significant increase in enrollments and a decrease in drop-outs, although participation rates are a problem due to high population growth rates. But the outcomes of schooling are still far from satisfactory. 2.47 One of the most important conclusions of the two Implementation Completeion Reports (ICRs) for the EdSACs as well as the recent mid-term review of PSDP is that continuing to expand access to basic education and to increase physical inputs into the system are necessary but not sufficient to ensure that the quality of teaching and learning at the school level improves significantly. More attention has to be paid to the "software" (process) aspects of program design and implementation. Institutional capacity matters a great deal in this context, without which new "hardware" (inputs) and existing resources cannot be effectively utilized. 2.48 The recent ICR for the Community Secondary School Construction Project provides equally important lessons: a community participation scheme may not work unless particular needs and preferences, such as seasonal differences in the flow of income, are carefully 15 considered. Furthermore, the benefits of decentralization will not be realized without building strong capacity at the community and district levels as well as at the central levels. 2.49 It is now necessary to harmonize development efforts to improve outcomes at the school level while continuing to pursue the goal of universal equitable access. To this end, the traditional project-by-project approach is being consolidated into support for the comprehensive FCUBE Program, covering both development and recurrent activities. The lessons from previous IDA (and other donor) funded operations emphasize the importance of widespread consultation and debate at the formative stage, close involvement by the "line" divisions of MOE/GES and by districts in implementation arrangements, and adherence to agreed priorities while allowing financing flexibility to accommodate periodic program modifications justified by experience gained over time. For more efficient management of external support to basic education, a MOE-donor forum was set up in August 1994 as an MOE initiative, and is now an effective vehicle for regular communication and coordination among partners. 2.50 USAID, ODA and UNICEF programs in three areas of the country (Cape Coast, Winneba and Afram Plains) have gathered experience in small-scale, integrated approaches to primary school development, with strong emphasis on community engagement and teacher motivation in the pursuit of improvements in the quality of teaching and learning. G. RATIONALE FOR IDA INVOLVEMENT IN BASIC EDUCATION 2.51 MOE has affirmed that quality improvement of basic education must receive higher priority from now on. The FCUBE program aims to achieve this through curriculum reform, continual (re-)training and monitoring of personnel, increasing community participation, system- wide management improvement, and steady expansion of access with priority to the neediest groups. The FCUBE is the sole program for basic education, involving all current and future activities supported by national resources and external donors. The FCUBE will help address equity, gender and poverty issues in terms of access to basic social services as well as building capacity in the education sector and encouraging a participatory development approach. These are all in line with the Bank's own assessment of the situation and are underscored in the Bank's Country Economic Memorandum and Country Assistance Strategy. Without the continued involvement of the Bank and other donors in Ghana's education sector, the Government will have extreme difficulty in furthering the reform process. The Bank's sector knowledge and comparative familiarity with the integrated sector investment approach will be particularly helpful to the Government in mobilizing continued donor support. The activities outlined below are systemic in impact, affect all on-going basic education activities and structures, and promote initiatives to meet demand for access and quality. IDA assistance, in addition to the support of other donors, for MOE's Sector Strategy and Operational Rolling Plan, will underpin a holistic solution to a complex development problem. 16 3. THE BASIC EDUCATION SECTOR IMPROVEMENT PROGRAM A. PROGRAM OBJECTIVES 3.1 The long-term national goal to which the FCUBE program will contribute is an empowered citizenry, regardless of the geographic region in which they live, their gender, religion or ethnicity. By requiring that all Ghanaians receive 9 years of quality basic education, the Government wishes to ensure that young people are prepared for further skills training either in the work force or in formal study. The central goal of the basic education system in Ghana is to ensure that all students are equipped with the capability to become full stakeholders in, and beneficiaries of, development. The policy priorities, commitments and targets of the FCUBE program for the period 1996-2005 are outlined in the Government's Letter of Basic Education Sector Development Policy (Annex 4). IDA will support the Government's program, focusing on issues of school-level quality improvement, more equity in resource allocation, greater efficiency in resource use, expanded access, and increased participation. The Basic Education Sector Improvement Credit (BESIC) will help consolidate the considerable progress made since 1987 by helping to (a) improve the teaching process and learning outcomes; (b) strengthen management of the basic education system through better planning, monitoring and evaluation by MOE/GES at central, regional and district levels, and by promoting active involvement of communities in the management of schools; (c) improve access to basic education, especially of girls, the poor and other disadvantaged segments of the population; and (d) ensure financial sustainability of the Government program for basic education over the longer term. B. PROGRAM DESCRIPTION 3.2 The FCUBE program is documented by MOE in two volumes: (a) a Program containing a statement of sector policy along with a description of the strategic framework and its components; and (b) an Indicative Operational Rolling Plan. The second volume will be regularly updated in the light of experience and as additional sources of finance come on stream. A draft of this volume was discussed during negotiations, and as a condition of Credit effectiveness, the Government will finalize and adopt the Operational Plan, with specific arrangements for activities to be carried out in 1996-98. The FCUBE program comprises three components: (a) enhancing pedagogic effectiveness through support to teacher education, improved supervision, regular assessment of student performance, adequate provision of instructional materials and periodic curriculum renewal; (b) developing and strengthening the capacity for efficient management at the central, district and school levels; and (c) improving access to basic education, especially for girls and the less advantaged groups, and encouraging community interest and participation in the schooling process. It will be necessary to systematically design activities which explore the interactions between these components, in the light of the best understandings of the factors that characterize effective education within schools, focusing on, among others, school-level autonomy, school climate, the teaching/learning process, and pupil evaluation/feedback by teachers. 3.3 The program will support wide-ranging strengthening of capacity at districts and schools in the delivery of basic education. Among others, the development of leadership skills of headteachers, the quality of supervision, and the engagement of the community through School Management Committees (SMCs) will provide much more focused attention on issues relating to the quality of schooling. The Government, with donor support, plans to work towards the 17 integration of these components in pursuit of school improvement in selected districts, attempting to develop models of best practice, and building on previous work described in para. 2.46-2.50. This approach would involve working with individual schools, clusters of schools, individual headteachers, groups of headteachers, etc., in developing plans and strategies to utilize the enhanced skill resource provided by the individual program components. It will be necessary to provide detailed analytical data to monitor the improvements in the quality of pupil performance in individual schools. It is expected that, as improvements of quality become visible, community engagement will increase. The results gained from these models, as well as from the proposed Schooling Improvement Fund (para. 3.23), will be applied to the national program. Component 1: Enhanced Quality of Teaching and Learning 3.4 The FCUBE program recognizes and addresses the need to further upgrade the professional skills of basic education teachers, both before they take their posts as well as after they have served in their positions. This component will promote more effective teaching by improving specific instructional skills through revamped in-service and pre-service training programs and by motivating teachers through the introduction of new incentive and sanction schemes. It will support the assessment of student performance to inform teachers, students and parents of progress and to provide the MOE with more objective criteria to evaluate the effectiveness of basic education. Improvement in the quality of learning and student performance will also be addressed through the provision of instructional materials, as well as curriculum review and revision. 3.5 In-Service Training of Education Personnel. With the assistance of participating donors, MOE plans to develop a program for in-service teacher training (INSET) that will rely partly on distance education methods and technology and partly on face-to-face workshops during school vacations. The INSET program will emphasize the acquisition and implementation of practical skills and the use of instructional materials to strengthen the effectiveness of teaching. School-based training for teachers will be increased and support provided to them through the development and improvement of Teacher Resource Centers. Teachers' Training Colleges (TTCs) will receive support to train tutors who will work with teachers in classrooms. This initiative will also ensure that graduates of TTCs have more practical experience and awareness of the complexities of classroom instruction before they are charged with managing a classroom on their own. Training for headteachers will seek to strengthen their management and supervisory skills to ensure that they are supportive of reform at the school level and are effective in helping to improve the skills of the teachers. Headteachers will be required to attain accreditation standards after training programs in order to hold positions. Circuit supervisors and district education officers will be trained to carry out effective supervision of schools and to provide necessary support to the headteachers and teachers. Orientation and mobilization workshops for key district officials and community leaders will be conducted to encourage their active involvement in school activities. Training for educational personnel at the district, regional and headquarters levels, some of which will be undertaken as part of the activities in Component 2 (para. 3.10-3.17), will seek to improve the efficiency and quality with which education data are processed, programs are supervised, monitoring is improved, rules and procedures are enforced, and curricula and learning materials are developed and disseminated. 18 3.6 Pre-Service Teachers' Training. The existing basic education teacher pre-service training program has been criticized for its overly academic focus, and for its lack of articulation with the school curricula and the instructional needs of students. The FCUBE program will support the redesign of the pre-service training programs, emphasizing hands-on training activities in schools and increasing the amount of time in practical teaching prior to certification. Access courses will be given to teacher trainees from deprived districts who may not have the requisite minimum entry qualifications. Links between the schools and teacher education institutions or qualified teacher educators of these institutions will be strengthened. As much as possible, trainees belonging to a district will be selected for training and contracted to stay in that district for a minimum specified period on completion of their course. Local communities and district education offices will be asked to sponsor trainers, so that teacher development will be demand-driven instead of being supply-driven as is currently the case. A study will be carried out on the 38 TTCs, to define the specific roles to be played by each institution in the redesigned pre-service training program, and to identify those which require rehabilitation (in conjunction with support to be provided by KfW) and others which may be closed or merged. Linkages with the University College of Education at Winneba (UCEW) and Cape Coast University will be explored to maximize support for the training programs. Over the longer term, FCUBE will also support studies on alternative delivery mechanisms and evaluation of the impact of the training programs. 3.7 Assessment and Evaluation of Student Performance. Criterion-referenced testing of the performnance of Ghanaian students currently enrolled in basic education has given tangible evidence to the ineffectiveness of the system (para. 2.16). To help ensure that curricula and teaching tools are used properly, a comprehensive set of evaluation mechanisms will be developed and put in place. The monitoring scheme will measure both student mastery of material as well as limitations in the teachers' abilities to implement the new curricula. Results will be employed in the on-going process of curricula improvement, and in the training of teachers. Emphasis will also be placed on enhancing the supervisory capacity of district education officers to monitor the instructional process more effectively and to interpret the results of both continuous assessment outcomes and standardized tests. Greater emphasis will be placed on the development of strategies to facilitate remedial instruction in the classrooms for those students in need of supplementary help. 3.8 Provision of Instructional Materials. The lack of instructional materials has been identified as a crucial factor which affects the effectiveness of teachers' delivery in classrooms and hence the poor performance of pupils (para. 2.17). The FCUBE program will support the provision of textbooks, teachers' handbooks, syllabi, and library books to schools. Initially, existing textbooks will be reprinted and distributed to schools, after making provision for adequate school storage facilities. Subsequently, new textbooks will be produced following the revision of the curriculum (see para. 3.9 below). MOE policy currently undertakes to provide textbooks (assuming a book life of three years) for all core subjects (6 subjects for BE 1-6 and 10 subjects for BE 7-9) at a 1:1 book/pupil ratio. Textbooks will be provided free to all pupils in BE 1-6, while pupils in BE 7-9 will continue to be charged a user fee. This policy will incur a very significant charge against the total incremental resources of the FCUBE program. The MOE is unlikely to be able to sustain such a flow without substantial assistance from other sources. MOE will undertake a study on the options for the sustainable provision of learning materials, taking into consideration the level of available financing, the potential for private sector contribution, the printing (whether local or foreign) and distribution capacity, the storage facilities in schools, and the systems for encouraging and monitoring the actual use of materials 19 in schools. This study is expected to be completed prior to the first government/donor review (January/February 1997) of the three-year rolling plan for the FCUBE program, to provide the basis for appropriate modifications to the implementation plan. The provision of library books will also be included in this study. 3.9 Curriculum Review and Development. The first major task of this sub-component is to review the existing materials available in the classroom for BE 1-9 pupils and teachers, in terms of their value as learning tools in delivering the syllabus for each subject. New textbooks will then be prepared and tested in a sample of schools in various regions in the country. In the meantime syllabi will be drafted for the new subjects, including environmental studies for BE 1- 3, integrated science for BE 4-6, pre-technical skills for BE 7-9, and religious and moral education for BE 1-9. Course material for Ghanaian languages will also need to be developed. Subject panels involving outside specialists will be set up to review the syllabus for each subject and revise/write the textbooks. The FCUBE program will support these activities and help strengthen the Curriculum Research and Development Division (CRDD) in the GES to carry out its functions. Component 2: Management for Efficiency 3.10 The over-arching objectives for this component are to improve the efficiency of the GES and to enhance its effectiveness in implementing the FCUBE program. In particular, the aim is to strengthen the management of human and financial resources at the district level in order to address the needs and aspirations of communities, parents and children. The design of the component recognizes the public sector reform imperatives of the NIRP as well as the implications of the Local Government Act of 1993 in the process of transferring to the districts increasing responsibility and authority over basic education. 3.11 This component will support the decentralization of responsibility and operational decision making within the existing institutional framework of MOE/GES. It will help strengthen managerial capacity to enable the District Education Offices (DEOs) of GES to use their increasing autonomy responsibly by having qualified managers, relevant skills and improved information, personnel and financial management systems. The plan is to focus upon early results in terms of management strengthening (especially at the district and school levels), and to avoid undue disruption. In the longer term, this approach will facilitate the gradual devolution of responsibility and authority to the District Assemblies as capacity is strengthened and the appropriate legal instruments are enacted. To help achieve these outcomes, the Management for Efficiency Component of the FCUBE program is composed of five sub- components, as outlined below. 3.12 Building Capacity for Institutional/Organizational Analysis and Change. This sub- component will aim at helping to develop the internal capacity to lead and manage change on a continuous basis, to ensure that managers, supervisors and headteachers are effective in carrying out their new responsibilities in a decentralized system, and to enable communities to participate in the management of schools. The following activities will be undertaken to help achieve these objectives. First, an organization structure for the MOE/GES will be devised, specifying clearly the relationships with external bodies, opportunities for contracting activities to the private sector, new management accountabilities at all levels as well as the scope of delegated decision making. The MOE/GES will develop legal or other normative mechanisms as appropriate to facilitate cooperation between GES and District Assemblies in order that FCUBE objectives are 20 achieved. Second, a human resource plan will be developed, specifying recruitment, transfer, promotion and redundancy actions to meet the staffing requirements of the revised organization structure. The plan will draw extensively on the results of a personnel audit of the numbers and skills of existing staff which will update and extend the personnel database of the IPPD system. Third. to help strengthen the agents and sponsors of change, orientation and training will be conducted for both the technical staff of the nearly established FCUBE Secretariat and a carefully identified core group of senior managers who will be appointed to positions of responsibility and influence in the new organization structure. At the same time, commitment to the revised organization design throughout the MOE/GES will be built up through a "cascading" approach to staff consultations and briefings. Fourth, managers, supervisors and headteachers throughout the system will be trained to exercise their new managerial roles and responsibilities under decentralization, focusing on interpersonal, supervisory, planning and client consultation skills. The training strategy will emphasize in-country programs specifically designed for the GES and coaching skills for both managers and supervisors to enable them to help solve job problems faced by their staff. The overall program design will be based upon a prior training needs analysis. Circuit supervisors will be specifically targeted so that they are able to train the large number of headteachers at the circuit level. Fifth, viable SMCs will be established by initiating a dialogue with community leaders, clarifying their roles in relation to existing PTAs, and subsequently providing them with support through both the DEOs and the District Education Oversight Committees (DEOCs) which are in the process of being established. Finally, regular implementation reviews of improved management structures and systems, focusing on the DEOs, will be conducted by regional teams and supported by community representatives from the District Assemblies and DEOCs. The FCUBE Secretariat will be responsible for conducting reviews at the Headquarters and Regional levels. 3.13 Staffing and Personnel Management. This sub-component will help to achieve a more efficient and equitable distribution of staff and teachers, strengthen personnel procedures for a decentralized system and design more appropriate salary structures and incentive schemes. It will include the following activities. First, clear and transparent procedures will be formulated for the appointment and deployment of managers, supervisors and headteachers on the basis of proven competence and identified potential in accordance with the manpower plan. Personnel managers and officers will be trained in counseling skills in order to support and advise affected staff during this difficult period. The IPPD personnel information system will be reviewed and strengthened to ensure all staff movements are carried out efficiently and accurately. Second, the job grade structure within the MOE/GES will be reviewed and revised to reflect new job contents and skills within the revised organization structure for MOE/GES and to provide for more appropriate salary differentials. This exercise recognizes Government's emerging public sector incomes policy which aims to "de-link" the salaries of different bargaining groups. In addition, an employee motivation strategy will be developed which emphasizes non-financial as well as financial incentives and provides discretion for district education offices to design locally-based schemes. Third, personnel policies and procedures for recruitment, promotions, transfers and discipline will be revised to make them relevant to decentralized personnel management in the DEOs. Special emphasis will be placed upon the development of a revised code of professional conduct to support strengthened disciplinary procedures to give line managers clear responsibility for initiating disciplinary action. 3.14 Performance Management. This sub-component will help design and implement an education management information system (EMIS), and will introduce a performance appraisal system which involves objective setting, regular performance review and corrective action. The 21 EMIS will be designed to support policy analysis and planning, the management review process, and the monitoring of FCUBE program targets and standards. The design of the EMIS will build upon the existing statistical system and the skills available in the MOE/GES, and will be closely coordinated with other systems being used or to be developed in the context of the NIRP/CSPIP. In addition, a school mapping exercise will be conducted to promote micro-planning. At the same time, an improved performance appraisal system will be developed which links individual performance to work unit objectives. This system will form the basis for establishing contractual or other relationships with District Assemblies to ensure FCUBE goals are achieved in the decentralization process. Mechanisms appropriate to a decentralized education system will be established for monitoring, emphasizing performance indicators and management reports, with clearly defined standards for different levels of management and procedures for the periodic review of work programs and implementation plans. Financing for consultancy services for the design and development of an EMIS will be financed under the ongoing PSDP. During negotiations agreement was reached on a time-bound action plan for the operationalization of the EMIS. 3.15 Budgeting and Financial Management. The objectives of this sub-component are to ensure that MOE/GES budgets at all levels are prepared consistently in accordance with the FCUBE program structure and established budget guidelines, to enable the MOE/GES to account for its revenue from whatever source and expenditure on any item/activity in accordance with established accounting standards, and to produce periodic financial management reports which can be related to program outputs and outcomes from the EMIS. The current MOE/GES budgeting and accounting system will be reviewed and an improved system will be designed to provide relevant and timely management information. An agreed resource allocation formula will be developed to facilitate the delegation of budgets to the district level by the end of 1997. These activities will be closely coordinated with other ongoing central initiatives to strengthen the public accounting systems, including the Government's PUFMARP and the Bank's supporting FIMTAP operation. 3.16 District Capacity Building. This sub-component will focus on strengthening the capacity of DEOs and District Assemblies in planning and managing basic education, taking into consideration the overall progress towards decentralization in the country. It will help develop mechanisms for the GES, in association with other arms of the Government, to provide technical assistance to District Assemblies. The performance of those Assemblies specifically targeted for technical assistance will be closely monitored, in particular in terms of the functioning of their Social Services Sub-committees and their use of Common Fund resources for educational purposes. MOE will progressively delegate financial management discretion to districts having viable education plans and administrative systems. 3.17 To help develop and strengthen capacity for the implementation of this component, international ar,d local consultants will work closely with MOE/GES staff in specific activities. A technical advisor with expertise in organization change will be engaged to help develop local capacity and facilitate overall implementation of the component. In addition, consulting services will be contracted to assist in the review and design of the personnel management system, the EMIS, the performance appraisal system, as well as the budgeting and financial management system. Consultancy firms which can access local expertise will be engaged to conduct the technical work and to develop skills within GES to operate the improved systems and procedures. Appropriate training programs will be designed and conducted for relevant staff. Computer systems and equipment will be procured and installed as necessary. 22 Component 3. Improving Access and Participation 3.18 The overall objectives of this component are to promote wider coverage of the basic education system through quantitative and qualitative improvements to school facilities and through direct involvement of communities and parents in activities that will help improve the environment for teaching and learning in their schools. Efforts will be targeted in particular to promoting access for girls, the poor and for disadvantaged children in rural areas. The component will build on the experience gained in previous projects and pilot activities in Ghana and elsewhere. 3.19 Infrastructure Development. Achieving the twin objectives of increased access and improved quality will necessitate both a quantitative expansion of and qualitative improvement in basic education facilities and support infrastructure. MOE will take stock of progress made over recent years and rationalize the use of existing resources to maximize their effectiveness. Some urban schools may need to adjust to double-shifts. At the same time, it will continue to rehabilitate dilapidated classrooms and support construction of new school facilities including classroom buildings and teachers' housing, based on relative need and demonstrated demand. Initially decisions on school location and the type of facilities to be rehabilitated or built will be based on data currently available from the school census, which will be verified through field visits. Subsequently as data on schools and catchment population become available through the EMIS and school mapping exercise (para. 3.14), MOE will prepare a phased implementation plan for infrastructure rehabilitation and construction, based on selection criteria as shown in the Implementation Manual and to be reviewed annually by MOE, district/community stakeholders and participating donors. Indicators on poverty and girls' participation will be given prime consideration in determining the selection criteria. 3.20 School Facilities Planning and Maintenance. With the aid of architectural engineering firms, MOE will review and revise as necessary the existing norms and standard designs for school facilities to enhance the opportunity for learning and to allow flexibility (e.g. multi-grade schools, addition of classrooms). The profile of school facilities (classrooms, libraries, workshops, girls' boarding facilities) will be based, to the extent possible, on a common structural module, possibly an adaptation of the three classroom pavilion currently used in building new primary schools, to allow for flexibility in facilities utilization and efficiency (cost and time) in construction. General guidelines will be developed to ensure proper location of ancillary facilities on the school site, as well as to provide for future expansion. School sites will be inspected and surveyed in advance to assess suitability (access, terrain, soil conditions, water availability, and other critical factors) and cost for site improvements. Facilities maintenance will be budgeted at 1.5 percent of capital costs annually; and resources (in cash or kind) will have to be made available. In collaboration with communities and districts, MOE will prepare draft facilities maintenance policy and operational guidelines (types of maintenance, financial responsibilities, modalities of execution). 3.21 Increasing Girls' Participation. The FCUBE program seeks to enhance girls' education through targeted interventions. Several initiatives will be undertaken at the outset. First, a pilot study using participatory learning assessment (PLA) techniques will be conducted in selected districts to identify the constraints to girls' participation in schools and develop effective programs to remove such constraints. Secondly, gender experts will review the current curriculum and existing textbooks to ensure gender sensitivity in content and illustrations, and will continue to be involved in all phases of curriculum development. Field tests of new 23 materials will be analyzed by gender as well as other criteria. Thirdly, a study on scholarship programs will be undertaken to assess the impact of award/scholarship schemes that have been implemented in Ghana and in similar situations, and to recommend an action plan for providing various forms of financial assistance to encourage girls (and possibly other low participation groups) to attend school. Fourthly, plans will be developed to promote science and mathematics education for girls, taking into consideration the Science, Technology and Mathematics Education (STME) Program and adapting it to the basic level. Pending the outcome of these efforts, a long term strategy for enhancing girls' participation in education will be formulated, together with implementation plans for various forms of interventions. At the same time pre- service and in-service training will seek to raise awareness in teachers of gender issues, and efforts will be made to recruit more female teachers into the profession. Districts will be asked to identify qualified female candidates for service in their localities, and special training programs will be organized for such candidates in remote areas to help them attain the necessary minimum skill levels. 3.22 Fostering Community Involvement. MOE recognizes the importance of community and parental involvement in schooling in improving the teaching and learning environment. Communities have an important role to play in enforcing standards, developing and maintaining school property, and providing support and encouragement to headteachers, teachers and students. The ultimate goal is to develop community ownership, pride and sense of responsibility for schools. MOE will promote community involvement in education by strengthening SMCs, devising mechanisms for consultation with DEOCs to ensure the equitable allocation of resources across basic education, and establishing a system for stakeholder consultation to provide feedback on progress towards program goals. Much of these efforts will be undertaken as part of improving management efficiency under Component 2. Special programs to foster community involvement will be initiated under this Component, including a Schooling Improvement Fund (SIF) and an Information, Education and Communication (IEC) campaign. 3.23 Schooling Improvement Fund (SIF). In order to bring quality improvements to schooling on a broad basis, MOE realizes that further efforts are needed to motivate communities to become more involved in the delivery of education and take initiatives to manage and contribute to school activities. The SIF is a flexible approach aimed at responding adequately and promptly to the specific needs of particular school communities and encouraging initiatives to improve the quality of teaching and learning. Instead of making uniform provision for all schools throughout the country, the SIF will support specific requests from local communities themselves. In this way communities will be involved in modest development projects from the beginning, and therefore are likely to feel ownership of these projects and be committed to sustaining them. A SIF pilot scheme will begin initially in three districts in 1996 under the ongoing PSDP, based on the SIF Operational Manual discussed and agreed with IDA. The Manual provides detailed guidelines for the selection criteria for school-based projects, the ceiling for funding such projects, the procedures for project preparation, appraisal, approval and implementation, as well as the draft terms of reference for NGO(s) to facilitate the implementation of the pilot scheme. District Assemblies will be empowered to appraise and approve funding requests from the schools. NGOs will be used to facilitate the process and to build local capacity for project design, preparation, appraisal, and implementation. Based on the experience of the pilot to be evaluated in mid-1997, the SIF will be gradually expanded to an increasing number of districts. Depending on the pace at which districts and communities are able to develop their capacity to manage the process and implement the school-based projects, 24 the size of the SIF is estimated to increase from $325,000 in 1996 to possibly US$1 million in 1997 under the PSDP, and may further increase under BESIC. There are similaries in approach between the SIF scheme and the school-based activities supported by ODA, USAID and UNICEF (para. 2.50 and 3.3), and it would be useful to explore the lessons that could be learned from each of these programs. 3.24 Information, Education and Communication (IEC). Much more effort needs to be made to raise awareness among communities of the need for them to be involved, and for their children to take part, in basic education. In particular, it is necessary to promote understanding of the social and economic benefits of educating girls and to persuade people of the intrinsic worth of basic education, independent of economic returns. MOE will work with communications specialists and NGOs to develop an IEC strategy and prepare a plan for implementation. The plan will identify the specific issues that need to be addressed, the attitudes and behaviors that need to be changed, the target groups most crucial to effecting such changes, the essential messages that need to be conveyed to particular groups, the most effective means of delivering these messages, the relative timing of each activity, and the costs. The plan will also include mechanisms for monitoring and evaluating the impact of the activities so that appropriate and timely adjustments can be made to the IEC strategy and its implementation. C. PROGRAM COSTS AND FINANCING Program Costs 3.25 The Government has declared that FCUBE is Ghana's only basic education program. All ongoing and planned activities in basic education, whether financed solely from the government's own resources or with the assistance of donors, will be coordinated under the FCUBE program. Adherence to a common Operational Rolling Plan by the various supporting agencies is thus ensured. 3.26 The total cost of the first phase of the FCUBE program (1996-2000) is currently estimated to be about US$1.35 billion. This includes all recurrent and development costs at central, regional, district, circuit, school and household levels, except the direct costs of privately provided schooling. A summary of the total program costs is shown in Table 3-1 below. The major activities under the three components of the FCUBE program (as described in para. 3.2- 3.24), which will be called "Betterment Activities", are estimated to cost about US$241.6 million, or 18 percent of the total cost of the program. Other costs of the basic education sector over the first phase of the FCUBE program, including the projected costs of administration, teachers' salaries, school operation and maintenance, as well as household spending and ongoing donor-supported projects, are estimated to be about US$1.1 billion, or 82 percent of the total cost. The overall costs of the FCUBE program will be reviewed annually as part of the joint MOE/donor review of the FCUBE implementation plan, and will be adjusted by the MOE as appropriate. 3.27 Of the current estimates of the total costs of the "Betterment Activities", Component I (Enhanced Quality of Teaching and Learning) will absorb about 59 percent, Component 2 (Management for Efficiency) about 13 percent, and Component 3 (Improving Access and Participation) about 28 percent. The composition of the costs of these three components are summarized in Table 3-2 below. 25 Table 3-1. FCUBE Program (First Phase) 1996-2000 Total Program Costs (US$ million including contingencies) Component 1996 1997 1998 1999 2000 Total Betterment Activities 1. Enhanced Quality of Teaching/Learning 14.0 36.9 36.2 22.4 31.9 141.4 2. Management for Efficiency 1.5 10.4 9.5 7.0 3.9 32.4 3. Improving Access and Participation 0.7 4.8 13.3 21.0 28.0 67.8 Subtotal 16.2 52.1 59.0 50.4 63.9 241.6 Other Basic Education Sector Costs I 1. Administration and Support 15.4 15.9 16.4 16.9 17.5 82.1 2. Teachers' Salaries 127.4 134.2 141.1 147.7 154.4 704.8 3. School Operation and Maintenance Cost 5.5 6.4 7.3 8.5 9.9 37.7 P. Private (Household) Spending 44.9 46.9 49.1 51.6 54.4 247.1 5. Ongoing Donor-Supported Activities 27.2 9.8 0.3 0.3 0.3 37.9 Subtotal 220.4 213.2 214.2 225.1 236.5 1109.6 Total Program Costs 236.6 265.3 273.2 275.5 300.5 1351.2 Source: MOE and Bank staff estimates. 3.28 The bulk of other basic education sector costs consists of teachers' salaries, estimated at about 82 percent of total other costs. Administration and support takes up about 7 percent and school operation and maintenance about 3 percent, while private (household) spending on education is about 22 percent, and ongoing donor-supported projects in basic education 3.5 percent. Administrative costs. including both salary and non-salary items, will be limited to a fixed proportion of teachers' salaries over the FCUBE program period, with increased spending at the school level. The share of the total wage bill in total program costs is estimated to average around 50 percent over the program period. absorbing almost 84 percent of the annual MOE budget. The average salary for basic education teachers is estimated to increase in real terms by two percent annually, allowing for relocation and severance payouts and for incentives to motivate teachers to improve their performance. Household contributions will continue to pay for day-to-day outlays on transportation, meals, uniform, stationery and the like, as well as augment district capacity in the provision and maintenance of school facilities. 3.29 Ongoing donor-supported projects in basic education include IDA's PSDP (Cr. 2508- GH), USAID's PREP, and other activities supported by ODA and UNICEF. These operations will continue under their original design or are being restructured to fit in with the overall FCUBE program as appropriate. 26 Table 3-2. FCUBE Program 1996-2000 Total Costs of Betterment Activities Local and Foreign Costs by Component (US$ million) Component Local Foreign Total % Foreign 1. Enhanced Quality of Teaching/Learning (a) In-Service Training of Education Personnel 7.7 2.1 9.8 21.0% (b) Pre-Service Teachers' Training 12.6 14.0 26.7 52.3% (c) Assessment/Evaluation of Student Performance 0.7 0.9 1.5 55.9% (d) Provision of Instructional Materials 38.7 47.7 86.5 55.2% (e) Curriculum Review and Development 0.5 0.4 0.9 46.1% Subtotal 60.3 65.0 125.4 51.9% 2. Management for Efficiency (a) Institutional/Organizational Analysis & Change 12.4 3.5 15.9 21.9% (b) Staffing and Personnel Management 4.3 1.7 6.1 28.3% (c) Performance Management 1.1 3.2 4.2 74.7% (d) Budgeting and Financial Management 0.4 0.6 0.9 60.3% (e) District Capacity Building 1.4 0.4 1.8 20.0% Subtotal 19.6 9.3 28.8 32.1% Improving Access and Participation (a) Infrastructure Development and Maintenance 22.8 22.1 44.9 49.2% (b) Increasing Girls' Participation 1.8 0.5 2.3 20.0% (c) Schooling Improvement Fund (SIF) 8.9 2.6 11.4 22.5% l (d) Information, Educ and Communication (IEC) 0.2 0.0 0.2 20.0% Subtotal 33.7 25.2 58.8 42.8% Total Base Costs 113.6 99.5 213.0 46.7% Price Contingencies 8.6 7.5 16.2 Physical Contingencies 6.6 5.8 12.4 Total Costs of Betterment Activities 128.8 112.8 241.6 46.7% Source: MOE and Bank staff estimates. Program Financing 3.30 During negotiations, agreement was reached with the Government on the proposed sector financing plan for the first phase of FCUBE (1996-2000), as shown in Table 3-3. The Government of Ghana (MOE and Districts) will be the largest financial contributor (about 64 percent of total program costs) to the provision of basic education, both in recurrent and development activities. Contribution from the Government and communities (together accounting for 83 percent of total program costs) will pay for the costs of teachers' salaries and administration and an increasing share of non-salary recurrent costs. It will also bear an increasing share of the sector's capital costs through budgetary transfers to the DACF. Government and community financing capacity over the period 1996-2000 is estimated to be 27 about US$1.1 billion. This implies a total financing need of about US$230 million for the period, to be met by contributions from a number of donor agencies which have indicated interest in the program. About US$54 million will be met by resources already available under ongoing donor-supported projects, including US$1.5 million recently committed by the UNICEF. Additional financing will be provided by IDA under the BESIC (US$50 million), ODA(UK) (US$23 million equivalent), USAID (US$53 million) and KfW/GTZ (US$25 million equivalent). It is expected that other donors (including the European Union, Japan, Norway and the African Development Bank) will come on stream to fill the gap of about US$25 million. 3.31 Donor support. Donor agencies which have been active participants in the preparation stage of this program have expressed interest in supporting its implementation. USAID is considering continuing its support for primary education through the provision of assistance targeted at pupil performance and school management improvement in a designated number of schools. KfW/GTZ (Germany) are preparing to assist in the rehabilitation of TTCs and possibly other aspects of institutional support. This will complement ODA (U.K.)'s long-standing interest in the professional training and continuing education of teachers, which it proposes to continue with increasing focus on school-based training. UNICEF's experience in community- based education activities will also continue, along with its programmed support for strengthening policy and planning, rural girls' access to education and early childhood development. Norway is interested in contributing to gender equity initiatives. The European Union (EU) has been providing some 50 percent of MOE's non-salary recurrent budget on a matching basis. This will continue through 1996, after which EU will consider an appropriate form of future support. The Governments of Japan and Norway, and the African Development Bank are among other external donor agencies likely to commit their support based on the common framework for FCUBE. 3.32 Activities Financed by the Proposed IDA Credit (BESIC). The proposed IDA Credit of US$50.0 million equivalent will support in-service training of educational personnel, provision of instructional materials to schools, training and workshops for MOE/GES, DEOs and SMCs to improve efficiency in management, rehabilitation and construction of school facilities to improve access and the teaching/learning environment, and initiatives to encourage girls' participation and community involvement in education and schooling activities. The level of IDA financing of specific items and activities will be reviewed annually as part of the government/donor review process (para. 4.13). Program sustainability 3.33 Recurrent Cost Implications. Implementing FCUBE will have an impact both on the ongoing and betterment activities. Preliminary estimates suggest that, except for an increasing demand for the supply of instructional materials, the costs of continuing the betterment activities of the FCUBE program in the second phase (2001-2005) will be significantly lowes, about 40 percent of the costs during the first phase. The average rate of growth of teachers' wage bill is projected to be slightly lowered -- from 4.9 percent in the first phase to 4.7 percent in the second phase. MOE will regularly monitor the recurrent cost implications during program implementation. The simulation model developed for the FCUBE will be used to analyze different scenarios to cope with any deviations from the base scenario. Adjustments will be made if necessary to the composition and structure of the program in the annual joint donor/MOE reviews, based on agreed performance indicators. 28 Table 3-3. FCUBE Program 1996-2000 Financing Plan (US$ million) 1996 1997 1998 1999 2000 Total FCUBE Program Costs 1. Betterment Activities 16.2 52.1 59.0 50.4 63.9 241.6 2 Other Basic Education Sector Costs 220.4 213.2 214.2 225.1 236.5 1109.6 Total FCUBE Program Costs 236.6 265.3 273.2 275.5 300.5 1351.2| Sources of Financing 1. Ghana (a) MOE 151.4 158.9 166.9 175.2 184.0 836.4 (b) District 5.5 6.4 7.3 8.5 9.9 37.7 (c) Community/Parents 44.9 46.9 49.1 51.6 54.4 246.9 Subtotal 201.8 212.2 223.3 235.3 248.3 1120.9 2 Ongoing Donor Financing (a) IDA (PSDP) - 23.0 18.0 5.0 46.0 (b) USAID (PREP) 5.0 5.0 (c) ODA 1.5 1.5| (d) Unicef 0.3 0.3 0.3 0.3 0.3 1.5 Subtotal 29.8 18.3 5.3 0.3 0.3 54.0 3. Proposed Donor Financing (a) IDA (BESIC) 9.8 11.3 14.1 14.7 50.0 (b) ODA (UK) 5.0 8.0 8.0 2.0 23.0 (c) USAID 10.0 13.0 15.0 15.0 53.0 (d) Germany (KfW/GTZ) 5.0 10.0 10.0 25.0 (e) Others (to be determined) Subtotal 5.0 34.8 42.3 37.1 31.7 151.0 Total Financing 236.6 265.3 270.9 272.7 280.3 1325.91 Financing Gap - 0.0 0.0 -2.3 -2.8 -20.1 -25.3 Source: MOE and Bank staff estimates. -Reflecting the undisbursed balance as of January 1, 1996, of which about US$20 million will support some of the "Betterment Activities' of the FCUBE program consistent with the objectives of the PSDP project, and the rest will continue to support ongoing activities in basic education. L The European Union, Japan and Norway are expected to support the program and contribute to fill the gap. 3.34 The Government's commitment to FCUBE is solid. In its Letter of Basic Education Sector Development Policy, the Government states that it will sustain the current budgetary commitment to the basic education sector and increase non-salary recurrent outlays annually by an agreed percent in real terms for the duration of FCUBE. The Letter also affirms that MOE/GES has the authority to deploy personnel and financial resources within the education sector, and is fully accountable for the proper management of these resources. To gain national consensus and support, MOE/GES has been, and will continue, consulting with parliamentary members, other ministries (in particular MOF, MLGRD and OHCS), regional and district GES staff, district authorities, and school and community representatives. 29 3.35 The FCUBE program is based on the understanding that quality improvement is essential to obtain parental support and hence enrollment growth. In turn, community participation will contribute to the improvement of teaching/learning outcomes. 3.36 Financial Sustainability. The program is designed to attain its objectives within the agreed financial framework, which requires the government to maintain its present level of fiscal commitment to basic education. Quality basic education needs minimum essential inputs to be in place at the school level. As for the subsectoral salary envelope, MOE's budget allocation needs to allow for a modest pace of growth to accommodate system expansion and rewards for excellent performance while at the same time ensuring that the share of spending on non-salary items increases over time. The Government's policy decision to increase non-salary expenditure by 10 percent annually in real terms will make the budget structure more robust and efficient in contributing to the improved service. The share of teacher salary expenditure within the MOE recurrent budget will gradually decline over the program period, keeping the compound effect of annual increase in the number of teachers and their average salary below the projected pace of annual MOE budget increases (see Annex 3-4). 3.37 For capital spending - the responsibility principally of district authorities - an increased transfer of funds from the central government will be essential, especially for those districts with severely limited resource mobilizing capacity. The DACF, for which the Government is mandated to secure 5 percent of national tax revenues, is the only central transfer for most districts. If the financing gap for capital expenditure is to narrow appreciably, spending on basic education infrastructure will need to increase annually by 20 percent on average in real terms. This implies that by the year 2005, average DACF spending on basic education will need to reach 40 percent. 4. PROGRAM IMPLEMENTATION A. PROGRAM PREPARATION 4.1 MOE-Coordinated Preparation. A joint MOE-donor forum was set up in August 1994 to facilitate preparation of a sector-wide program to support the FCUBE objectives within a ten- year time frame. USAID, ODA, EU, UNICEF and the Bank have been active members of the forum. KfW/GTZ and JICA are also keenly interested in the sector. Sector analyses were carried out jointly by government and donor teams. The key issues were discussed in a series of workshops involving staff in relevant departments of the MOE, specialists from Ghanaian universities and research institutions, as well as representatives from donor agencies. The results of the analytical work and discussions have been incorporated into the FCUBE program documents prepared by the MOE. It has been agreed among MOE and donors that the FCUBE program will cover the entire basic education (primary and junior secondary) subsector and will include all ongoing and planned activities. The program will be implemented within a strategic framework and an operational rolling plan. All support for basic education must be offered within these parameters. BESIC will be IDA's contribution to FCUBE for the four year period 1997-2000. 30 4.2 Participatory Approach. Local stakeholders and beneficiaries will take the lead in the implementation of FCUBE, while donors will provide technical support and financial assistance. A sense of local ownership and commitment to the program will continue to be ensured through systematic client consultation and consensus building, and through specific program activities designed to encourage active community participation in education and school management. B. PROGRAM MANAGEMENT AND COORDINATION 4.3 Since the FCUBE is a sector-wide program for basic education, implementation will represent a major part of the regular work of the MOE/GES over the next 10 years, and will require the active involvement of all operational and support divisions within MOE/GES. Program management and implementation responsibility, therefore, will be vested in the mainstream management structures of the MOE/GES. The Minister and top management of MOE/GES will be ultimately responsible for the achievement of the goals of the FCUBE program, and will draw upon the expertise of a Senior Management Team comprised of heads of divisions. This management team will review progress against key indicators annually, review and approve the annual program at the beginning of each year and monitor progress quarterly. The Special Assistant to the Minister on FCUBE will facilitate the transition from a conventional "project" model to the "integrated sector program" approach described in paragraphs 4.4 - 4.6 below. 4.4 The governance for the program will be provided by an Implementation Overview Committee (IOC) which will be answerable to the Minister of Education and on which major stakeholders will be represented. The IOC will meet regularly to coordinate the various reform and decentralization initiatives, both within the education sector and in the broader public sector. The IOC, comprising members drawn from the MOE/GES Management, MOF, MLGRD, NIRP, CSPIP and GNAT, will be set up prior to Board presentation. A Consultative Panel, chaired by the Minister of Education and consisting of selected members of the IOC and participating donor representatives, will review past and proposed uses of resources under the FCUBE program. The Panel will meet on a six-monthly basis, with a July/August meeting constituting the major annual review. 4.5 Day-to-day administration of each component of the FCUBE program will require the contribution of functional specialists (e.g. in training, curriculum, personnel, logistics) drawn from different divisions and units of the GES. Special organization and management arrangements will be introduced to ensure that program activities are well coordinated. With this in view, the MOE has already appointed a Deputy Director-General of the GES as the FCUBE Coordinator. His overall role will be to coordinate the work of functional specialists around the needs of individual components and to participate in the quarterly program reviews conducted by the Senior Management Team. The Coordinator will have the authority to review annual component and sub-component work plans, to operate systems of control, to convene monthly progress review meetings and to negotiate changes in staffing, schedules and work plans as necessary. The staff involved in implementation would be identified by their managers to work on specific program activities. Nonetheless, they would retain allegiance to their mainstream division which would retain authority for their professional development, promotion, discipline and appraisal of technical competence. This arrangement will enable the Coordinator to use fully the technical capacity of existing GES divisions and units. The outline management 31 structure for the FCUBE program which reflects these organizing principles is set out in Annex 7. 4.6 Because of the complexity and size of the program, the Coordinator will be supported by a core group of staff in the FCUBE Secretariat. The initial composition and staffing of the FCUBE Secretariat was discussed during negotiations and staff appointments are expected to be made within the next few months. 4.7 Under these strengthened management arrangements, the Project Management Unit (PMU) will provide technical services in procurement, accounting and disbursement, especially as these relate to the "banking business" relations with IDA and other donors. In line with this revised role, a joint Government/donor review of the staffing in the PMU will be undertaken, to ensure that adequate technical support will be provided to the management of the FCUBE program at both the headquarters and district levels. 4.8 The FCUBE program will provide the overall basis for the coordination of donor activity and support for basic education. Since the FCUBE Secretariat has the full knowledge of FCUBE component and sub-component plans and their associated resource requirements, it will also be the focal point for mobilizing donor support. The Coordinator and his staff will, with support from the Special Assistant to the Minister on FCUBE, liaise with donors on new funding to meet identified resource gaps as well as provide regular reports on ongoing support. These reports would contain information on procurement status and financial disbursement generated by the reconstituted PMU. 4.9 District Directors of Education will remain answerable directly to the GES Director- General for the achievement of identified program indicators which relate to FCUBE. As decentralization proceeds, the DEOs will be strengthened to carry out their assigned responsibilities for supervising schools, providing support to in-service teacher education and assessing pupil-teacher performance. Since these responsibilities constitute core activities in the FCUBE program, they will also need to be programmed in accordance with its objectives and priorities. Accordingly, District Directors of Education will set objectives and prepare detailed annual plans and budgets, which will be reviewed by the Regional Education Offices acting on behalf of the headquarters of the GES. They will also need to coordinate this work with the District Assemblies, which are legally mandated to oversee all schools within their jurisdiction. Headteachers and SMCs will be consulted on their priorities during plan and budget preparation at the district level. C. PROGRAM MONITORING, REPORTING AND SUPERVISION 4.10 Since the FCUBE is a sector program for which the mainstream MOE/GES is responsible, the monitoring and reporting arrangements for donors and other key stakeholders will be a subset of those which the MOE/GES requires for its internal management purposes. Monitoring will examine achievement and progress in relation to the identified program success indicators, component and sub-component performance indicators, and activity plans which would be made publicly available. It would, therefore, take place at a number of different management levels from headquarters to the school level. For instance, SMCs would be involved in monitoring teacher/pupil attendance and school achievement. 32 4.11 Under the management component, strengthened procedures for reviewing divisional/unit work plans would be developed and improved management information systems introduced to support the monitoring requirements at all levels of management. In addition, the introduction of more efficient management structures will ensure that relevant information is transmitted directly from district to headquarters level. 4.12 A regular program planning and monitoring cycle would be established for FCUBE linked to the Government's budget preparation process as well as plans for the rest of the education sector. During the year, those organizational units and individuals assigned responsibility for implementing specific FCUBE sub-components and activities (e.g. in-service training, classroom construction, staff redeployment) would submit regular progress reports to the FCUBE Secretariat. As appropriate, these reports would also include information on district- based activities. The FCUBE Coordinator and his staff will take into account the implications of these reports in updating the implementation plans. These report updates would, therefore, provide the basis for senior management's review of implementation progress against key performance indicators in the Operational Plan. The decisions taken at this review would be used as a basis for preparation of materials for reviews by the Consultative Panel (para. 4.4). 4.13 During negotiations, it was agreed that there would be semi-annual review meetings convened by the Government with the Consultative Panel, in January/February and June/July each year. The January/February meeting will focus mainly on the overall program performance in the preceding year based on the progress report updates (para. 4.12). Constraints to effective program implementation will be identified and amendments to the Operational Rolling Plan will be made as necessary. The June/July meeting will focus on forward planning and financial commitments for the coming year, drawing upon discussions in the January/February meeting and implementation performance in the subsequent months. The June/July 1998 meeting will constitute a mid-term review of the program. Donors and other stakeholders will be provided progress report updates at least one month prior to each review meeting, and will receive, prior to the end of September each year, a draft forward implementation plan and budget. This plan and budget should reflect all costs and sources of financing for the entire education sector, in particular the basic education subsector, and should include specific measures to ensure that adequate resources will be allocated at the district level for the provision and maintenance of school facilities. D. PROCUREMENT 4.14 IDA-financed activities will fully follow IDA Procurement Guidelines (January 1995 edition). The procurement methods are described below and summarized in Table 4-1. A summary procurement schedule for key activities has been prepared (Annex 5-5) and a much more detailed schedule will be included in the Operational Rolling Plan. 33 4.15 Civil works: (BESIC supports US$13.6 million equivalent). Civil works financed under IDA include: rehabilitation of existing school facilities, new classrooms, and housing for teachers. Contracts will be packaged in lots of at least US$2 million equivalent to attract international competition under ICB. Lots that cannot be grouped into such bid packages and/or are unlikely to attract competition from foreign bidders will be procured through National Competitive Bidding (NCB), up to an aggregate of US$8.4 million equivalent. A number of contracts which will require labor intensive manpower and/or use of NGOs and local labor may be procured in accordance with procedures acceptable to IDA. These are mostly small construction (works such as toilet facilities and storage) and rehabilitation works valued at US$100,000 equivalent or less per contract, up to an aggregate amount not to exceed US$1.4 million. 4.16 Goods. (BESIC supports US$10.1 million equivalent). Goods financed under IDA would include mainly roofing materials for classrooms, instructional materials, vehicles and miscellaneous equipment (e.g., computer systems and other equipment for education offices and school workshops). Goods valued at US$250,000 or more per contract would be procured through ICB using the Bank's standard bidding documents. Goods which can be competitively procured nationally and which cannot be grouped into bid packages of at least US$250,000 equivalent each will be procured through NCB under procedures acceptable to Bank. In aggregate these will not exceed US$4.0 million equivalent. Small items and goods which cannot be grouped into bid packages of at least US$50,000 equivalent will be procured on the basis of price quotations (National Shopping) obtained from at least three reliable suppliers, provided that the aggregate amount of such procurement does not exceed a total of US$1.2 million equivalent. Limited International Bidding (LIB) may be used for the procurement of specialized educational goods such as didactic material, software and equipment, for which there is only a limited number of suppliers to justify open advertisement for the contract. Bids for contracts estimated to cost less than US$250,000 equivalent, up to an aggregate amount not exceeding US$500,000 equivelent, will be sought from a list of potential suppliers. Proprietary educational software, spare parts and other small items which are costing US$400,000 equivalent or less in the aggregate, may, with IDA's prior agreement, be procured by direct contracting in accordance with IDA procedures. Local practices for NCB have been recently reviewed by IDA and found acceptable. They will include: (a) explicit statement to bidders of the evaluation and award criteria; (b) local advertising with public bid opening; (c) award to lowest evaluated bidder; and (d) foreign bidders would not be precluded from participating in NCB. Government has confirmed the above NCB principles. 4.17 Services: (BESIC supports US$2.2 million equivalent). Consultants financed by IDA will be contracted in accordance with IDA's Guidelines for the Use of Consultants (August 1981). The consultancy services required under the project will be mostly for project implementation and supervision, surveys and research studies and for architectural and engineering services. Draft terms of reference for major consulting services have been prepared and details are included in the Operational Rolling Plan. 34 Table 4-1. Ghana FCUBE Program (1996-2000): Betterment Activities Procurement Arrangements (US$ million) Categories of Expenditure ICB LIB NCB Other NIFP' Total 1. Civil Works 3.1 9.0 1.5 56.6 70.3 (2.9) (8.4) (1.4) (12.7) L Goods& 3.4 0.6 4.4 1.7 97.9 108.1 (3.1) (0.5) (4.0) (1.6) (9.2) . Operating Costsa for (a) Staff redeployment 2.1 2.4 4.5 (2.0) (2.0) (b) Others 4.5 5.2 9.7 (2.2) (2.2) . Consultants' services/Studies 2.2 4.4 6.6 (2.2) (2.2) . Training a 12.3 19.5 31.8 (12.3) (12.3) . Support for School Improvement ' 10.7 10.7 (9.4) (9.4) TOTAL 6.6 0.6 13.5 34.9 186.1 241.6 Of which financed by BESIC (6.0) (0.5) (12.4) (31.1) (0.0) (50.0) Notes: Not financed under the proposed IDA Credit for BESIC. However, the ongoing Primary School Development Project (Cr. 2508-GH) will finance some of the Betterment Activities in the FCUBE Program which are consistent with its objectives, and will use ICB/LIB or other procurement methods as appropriate. Aggregates for direct contracting of goods are included under the "Other column." Includes costs associated with the redeployment of MOE/GES staff, and incremental expenditures incurred for the carrying out of the Project for travel allowances, office communication, minor office equipment and supplies, utilities, fuel, vehicle and equipment maintenance. ld Includes in-service training of education personnel (teachers, headteachers, circuit supervisors, district education officers, education planning and budgeting officers at MOE headquarters and districts, etc.) to improve pedagogical and management skills; training for members of SMCs, district assemblies, etc. to strengthen school-level management; training for all levels of education administration to adapt to changes in the process of decentralization; some overseas training for specific technical skills in data management and policy planning, etc. Mainly activities that may be included under the Schooling Improvement Fund (para. 3.23). 4.18 Procurement Arrangements. Procurement management and execution will be closely monitored by IDA. Construction works will be supervised by experienced project engineers or technical specialists financed by IDA. For school construction, rehabilitation and small works 35 payment will be made to contractors only when the work is completed according to specifications. Only for major works will mobilization advance be given and this will not exceed 20 percent of the contract value. Procurement will be carried out by experienced staff of the procurement section of the PMU which will liaise with the MOE/GES units for handling all matters related to the preparation, implementation and monitoring of work plans for the smooth execution of procurement of all works, goods, and services, including the preparation of bidding documents, launching of tenders, evaluation, and reporting the results to the government and to IDA for review. During negotiations, agreement was reached with the Government on adherence to the schedule for key procurement steps in Table 4-2, in order to expedite project implementation. Table 4-2. Timetable for Key Procurement Steps From Bid Opening to Completion From Government Approval or or Official Submission of Bid IDA's No Objection of Bid Evaluation Reports to IDA Evaluation to Contract Signing Goods under US$250,000 30 days 30 days Goods over US$250,000 60 days 30 days Works under US$250,000 45 days 30 days Works over US$250,000 60 days 30 days Consulting services 30 days 30 days 4.19 In addition, adequate records on procurement progress, including staff reports on site visits, the timing of works and goods procurement, and compliance with agreed methods of procurement will be maintained by the PMU and will be reviewed as part of the routine project monitoring by the MOE. 4.20 A project launch workshop will be organized by the Government and IDA shortly after Board presentation with the assistance of PMU staff. This workshop will be attended by staff from all project entities, deal with all aspects of project implementation, and especially concentrate on procurement, disbursement, monitoring, and reporting. A final version of the Opertional Plan of the FCUBE program will be circulated at the launch workshop. 4.21 Bank Review. Prior review by IDA would be required for procurement of packages of works and goods which exceed US$250,000, of consultant services to firms of US$100,000, and to individuals of US$50,000. All terms of reference for consultants, sole source consultancies, assignments of critical nature, and amendments to consultants contracts raising the contract value above the aforementioned amounts will be subject to IDA's prior review. Post review of procurement actions will be given special care by IDA and will include, as additional to Bank supervision missions, selected review by Third Party verificiation firms. The Bank's Standard Bidding Documents will be used for works and goods procured under ICB and for consultants. NCB documents for works and goods will be cleared with IDA as part of the Operational Plan. 36 E. DISBURSEMENT 4.22 The activities financed under the proposed credit are expected to be completed within four and a half years by December 31, 2000, with all disbursements made by June 30, 2001. The estimated disbursement schedule is given in Annex 5-5. 4.23 Table 4-3 gives the categories and amounts to be financed out of the proposed IDA credit, and the disbursement percentages in each category. Table 4-3. Allocation and Disbursement of the IDA Credit (US$ million) Percentages of Expenditure to be Categories of Expenditure Amount financed 1. Civil Works 11.0 100% of foreign; 90% of local 12l Goods expenditures 2. Goods (roofing sheets, instructional 8.2 100% of foreign; 90% of local materials, vehicles/equipment) expenditures 3. Operating Costs for (a) Staff redeployment 2.0 95% (b) Others 1.7 50% 4. Consultancies/Studies 1.9 100% 5. Training 10.8 100% 6. Unallocated 14.4 TOTAL 50.0 Note: / See Table 4-1, footnote /c. 4.24 Special Account. To facilitate project implementation and reduce the volume of withdrawal applications, a Special Account will be opened in US Dollars in a commercial bank on terms and conditions acceptable to IDA. The authorized allocation amounts to US$2.5 million and covers about four months of eligible expenditures. Upon effectiveness, an amount of $1,250,000, representing 50 percent of the authorized allocation, will be deposited in the Special Account. The remaining balance will be made available when the total amount withdrawn from the credit account and/or special commitments issued amount to SDR 5.0 million. The Special Account will be used for all payments below US$500,000. Replenishments would be submitted monthly. All replenishments are fully documented except for: (a) contracts of less than US$250,000 for civil works and goods, (b) contracts of less than US$100,000 for consulting services - firms, (c) US$50,000 for consulting services - individuals, and (d) operational costs which would be claimed on the basis of Statements of Expenditure (SOEs). All supporting documentation for SOEs will be retained for review by periodic Bank supervision missions and external auditors. Overall responsibility for credit disbursement and financial management of the 37 Special Account will rest with the PMU. All disbursements are subject to the conditions of the Development Credit Agreement and the procedures defined in the Disbursement Letter. F. AccoUNTING, AUDITING, AND REPORTING 4.25 MOE/GES Accounts. Systems will be installed to ensure compatibility between the accounting for Government receipts for and outlays in basic education, from all sources. Given that BESIC is an across-the-board underpinning to the FCUBE program, the Government will make available to IDA, on a regular basis, financial management details of the consolidated Program Accounts for the education sector as a whole, so that a "part-whole" appreciation of trends can be maintained. 4.26 In the interests of transparency and financial harmony, all accounts of the entire basic education sector (notwithstanding the source of funds) will be maintained by a commonly agreed method and at internationally accepted standards. By June 30 of each year, MOE/GES will present to IDA and other participating donors in FCUBE an independent auditor's report (management report and audited financial statements) for all program accounts - including those for Government funds, BESIC and other donor contributions from the preceding academic/calendar year. 4.27 Following previous routine audits, IDA has raised concerns about aspects of the financial management and cash flow of existing education projects. The recommendations made during the course of these financial audits have been helpful to MOE and will be incorporated into the management of the planned program. The MOE will also move progressively from a line item budget to a program budget during this initiative. This shift should result in more discretionary funds being available within the overall MOE/GES budget. Financial management workshops are planned for District Directors of Education and accounting personnel, with training to be provided on guidelines stemming from the audit recommendations. Shortlisting of independent auditors for FCUBEIBESIC, under terms and conditions acceptable to IDA will be a condition of Credit effectiveness. G. PROGRAM BENEFITS AND RISKS Program Benefits 4.28 Improved Basic Education Sector Outcomes. The quality of Ghana's basic education will improve in general. especially in terms of better teaching/learning outcomes. Government/ donor/community cooperation and collaboration will be enhanced, and some more common procedures will be developed, because of the "holistic" nature of the Integrated sector approach (SIP) approach. The MOE's capacity to plan, manage, and monitor a range of complementary inputs to enhance quality and access will be strengthened. The GES will adopt new systems of assessing school performance and rewarding/sanctioning staff. Capacity for more effective curriculum utilization will be enhanced. Pre- and in-service teacher education will be revolutionized. The operation of the whole system, including individual schools, will become more gender sensitive. Communities will come to play a more influential and responsible role in the management of the schools, leading to greater school effectiveness. The synergistic effect of the various components will increase net impact. 38 4.29 Gains from Improved Efficiency. FCUBE/BESIC will produce efficiency gains both at management and school levels. Review and reorganization of the MOE and GES institutional structure, while developing an effective EMIS, will substantially reduce the waste and duplication in resource use. This will enable MOE to reallocate more resources to much needed schooling improvement activities. At the school level, reduction in dropout and repetition rates by 10 percent annually, together with efforts to raise the PI intake rate from the present 82 percent to 94 percent by the year 2000, will allow 164,000 more pupils to study at public primary schools and produce 33,000 more public JSS graduates during 1996-2000 than would be the case without FCUBE. 4.30 Impact on the Poor and Girls Participation. A community with inadequate basic education services and with low school learning outcome generally has a low demand for education. FCUBE/BESIC has policy and program components to target funds to the poorest and educationally most disadvantageous communities, and to raise awareness of the need and benefits of education in such communities. The DACF is allocated by the Government having regard to poverty, equity and needs criteria. To complement this, FCUBE will target supplementary resources. For example, when new schools are built with MOE subsidies, priority will be given to relatively poor communities with lower enrollment, especially girls participation, where financial capacity is low but the effort being made is fair. Teacher housing will be available with subsidized rent in areas where incentives for teachers to serve are adverse. JSS pupils or their families who are judged by a transparent process to be needy may receive some public financial support during their period of basic schooling. These combined with a demand-stimulating IEC campaign will enable more girls and poor children to go to school who otherwise would not benefit from Ghana's basic education service. 4.31 Economic benefits of investment in basic education. The economic benefits of this basic education improvement program can be expressed by the rates of return to investment in education. Based on 1992 household survey data in Ghana, the private rate of return to investment in primary education compared with no education is estimated at 28 percent, suggesting that if $1,000 is invested in primary education, there will be an annual private benefit of about $280 over the lifetime of the average primary school graduate, above what the same person would have earned without attending school. Similarly, the social rate of return to primary compared with no education has been found to be about 19 percent. The private rate of return to secondary education over primary schooling is about 12 percent and the social rate of return is 10 percent. The gap between private and social returns is explained by the public subsidization of education. Subgroup analysis shows that at both primary and secondary levels, girls in Ghana have a higher rate of return than boys, justifying targeted intervention to promote more girls' participation. Further details on cost-benefit analyses shown in Annex 3-3 suggests that investment for expansion of good quality basic education will have a high private and public payoff. 4.32 With respect to the economic benefits of the quality of basic education, international evidence suggests that the economic benefits of education are greater when a critical minimum of education attainment across the population has been achieved. Cross-country macroeconomic studies analyzed by the Bank have shown that the average educational attainment of the population has a strong positive effect on economic growth, with one year of additional schooling of the labor force possibly leading to as much as a 9 percent increase in the domestic output for the first three years of schooling and to 4 percent a year for the next three years. 39 Program Risks 4.33 There are three main risks concerning the effectiveness of this operation. First, changing teachers' attitudes towards working seriously will take time and thus quality improvements in the classroom may not take place as rapidly as would be desirable. Second, the Government could be overstretched in the early stages of the program as it manages simultaneously the full range of necessary interventions in the basic school system. Third, despite the intervention targeting the poor, parents in economically deprived and educationally backward districts may still be unwilling to send their children to school because of high direct and indirect costs. The first risk will be mitigated through a continuous participatory and consultative process during which all parties will come to clearly understand their respective roles and responsibilities; and the consequences of certain behavior. Furthermore, communities (through SMCs) will assume some responsibility for recommending the rewarding or sanctioning of teachers. More effective school level supervision and generating sense of partnership among all key players for improving schooling also have crucial roles to play in this issue. The second risk will be minimized by ensuring that the early years of the program focus on a manageable package of the highest priority items; that the foreshadowed administrative restructuring and institutional strengthening proceeds on schedule; and that ongoing Government/community/donor consultation becomes firrmly embedded in the implementation process. For the third risk, Government/MOE will develop special arrangements such as compensatory resource transfers to clusters of disadvantaged schools. Further, as an experimental measure, non-conventional approaches to basic education, with more flexible access and delivery arrangements and reduced cost impact on families, will be introduced. Poverty Category 4.34 Focusing on issues of quality, efficiency and equity, the proposed operation will particularly benefit the less advantaged groups of the Ghanaian population: the urban and rural poor; and girls. It would thus be included in the Program of Targeted Interventions. Environmental Aspects 4.35 This operation will include limited small scale construction activities, none of which will have significant negative environmental or social impacts. In conformity with OD 4.01, this is a category C project requiring no further environmental analysis. 5. AGREEMENTS TO BE REACHED AND RECOMMENDATION 5.1 During negotiations, the Government reached agreement with IDA on: (a) a draft Letter of Basic Education Sector Development Policy, outlining the Government's policy priorities, commitments and targets for the period 1996- 2005 (para. 3.1); (b) a draft Operational Rolling Plan, including key performance indicators, with specific arrangements for activities to be carried out in 1996-98 (para. 3.2); 40 (c) a Sector Financing Plan reflecting all costs and sources of financing for the education sector, in particular the basic education subsector (para. 3.30); (d) the management structure for the program, including the establishment of the Implementation Overview Committee and the Consultative Panel involving participating donor representatives (para. 4.3-4.9); (e) semi-annual review meetings in January/February and June/July each year, convened by the Government with the Consultative Panel, with the June/July 1998 meeting constituting a Mid-Term Review (para. 4.13); (f) Government commitment to delegate, progressively from the beginning of 1998, financial management discretion to designated districts having viable education plans and administrative systems (para. 3.16); (g) draft terms of reference for key long-term and short-term consultants (para. 4.17). (h) a schedule for key procurement steps (para. 4.18); and (i) a time-bound action plan for the design and implementation of EMIS (para 3.14). 5.2 As a condition of Board presentation, the Government will have (a) adopted a Basic Education Sector Development Policy statement satisfactory to IDA (paras. 3.1 and 5.1 (a)); and (b) established an Implementation Overview Committee, comprising members drawn from the MOE/GES Management Team, MOF, MLGRD, NIRP, CSPIP and GNAT, which will meet regularly to advise on implementation issues (para. 4.4). The first condition has already been met as of the date of this report, and the final Letter of Basic Education Sector Development Policy is included in Annex 4. 5.3 As a condition of Credit effectiveness, the Government will have: (a) submitted to the Association the Operational Rolling Plan for 1996-98, to the satisfaction of IDA (para. 3.2); and (b) shortlisted independent auditors for BESIC, under terms and conditions acceptable to IDA (para. 4.27). 5.4 Subject to agreement to the above, the proposed program will constitute a suitable basis for an IDA credit of SDR 34.7 million (US$50.0 million equivalent) to the Republic of Ghana on standard IDA terms with a maturity of 40 years. ANNEX I Basic Data Sheet ANNEX 1: Basic Data Sheet Indicators Data Year Source A Social Indicators 1. Total population estimate (thousand) 16,446 1993 a 2 School-age population as % of total pop. 32 1990 c 3 Average annual growth rate of population 3.1 mre a l Average annual growth rate of school-age pop. 3.4 1990-95 c 5. % of population below poverty line (32,981 cedis) 43.0 mre a 6. Total fertility rate (births per women) 5.9 mre a 7. Infant mortality rate (per 1,000 live births) 79.4 mre a B. Economic indicators 1. GDP (in billion cedis, current price) 5186.3 1994 e 2. Average real growth rate of GDP 4.2 1991-94 e 3. GDP per capita (US$) 322.7 1994 e 4. Average growth rate of GDP per capita 1.1 1991-94 e C. Education Indicators 1. Gross Enrollment ratios (% of school-age pop.) Primary--total 78.0 1993 b Primary--Female 71.7 1993 b Junior Secondary--total 60.9 1993 b Junior Secondary--Female 51.4 1993 b GER for 6-23 age group 45 1991 c 2. Efficiency indicators Student/teacher ratio Primary 29 mre a Junior Secondary 19 mre a Dropout rates (% per year) Primary 3.3 1992 b Junior secondary 7.2 1992 b Repetition rates Primary 3.2 1992 b Junior secondary 1.2 1992 b Pupils reaching grade 6 (% of cohort) 77 1989 thru 93 b Illiteracy rates (% of age 15+ pop.) 40 mre a Female (% of female age 15+ pop.) 49 mre a 3. Education expenditure Average public education spending as % of GDP 4.6 1991-94 d Average public education expenditure as % of public expenditure (discretionary) 38.8 1991-94 d Share of MOE recurrent budget Primary education 39.2 1996 b Junior secondary education 19.5 1996 b Senior secondary education 22.1 1996 b Vocational/technical education 1.6 1996 b Teacher education 5.4 1996 b Tertiary education 12.2 1996 b Notee: 'mre' means most recent estimate of the single year between 1988 and 1993. Sources: a. Social indicatorsfor development 1995, World Bank b. MOE. 1995 c. A statistical profile of education in sub-Saharan Africa, 1990-1993, DAE d. Govemment of Ghana, World Bank staff estimates. e. Ghana Country Economic Memorandum, World Bank, May 1995, Table Al, A2 & A7; Quarterly Digest of Statistics, Ghana Statistical Service, March 1993, Tables 40 &42. ANNEX 2-1 Participation Indicators Table 2-1-1. Participation in Public and Private Schools, 1989-94 Total Public Admission GER Retention Year enrollment (%) rate (%) (%) rate (%) Primary (Age 6-1 1) 1989 1,805,258 94 83.3 76.4 67.1 1990 1,945,422 93 93.5 79.3 75.4 1991 2,011,602 90 89.4 79.1 78.6 1992 2,047,293 90 85.5 77.6 80.6 1993 2,135,421 90 85.5 78.0 84.3 Junior Secondary (Age 12-14) 1989 625,018 100 57.3 51.5 78.7 1990 569,343 100 60.4 54.5 83.5 1991 605,760 98 62.4 56.3 84.6 1992 644,976 98 63.4 58.2 84.4 1993 694,724 94 67.2 60.9 85.9 Source: MOE (1995). Note: Retention rates refer to proportion of cohort reaching final grade. The retention rates for 1989 and 1993 are based on the enrollments in public schools only. Enrollment figures covers both public and private schools. ANNEX 2-2 Efficiency Indicators Table 2-2-1. Repetition, promotion, and dropout rate by grade: 1990/91-1992/93 (Public only) Repetition rate Promotion rate Dropout rate (%) (%) (%) Primary 90/91 91/92 92/93 90/91 91/92 92/93 90/91 91/92 92/93 1 6.2 5.7 5.5 81.9 87.0 87.5 11.9 7.3 7.0 2 3.0 3.5 3.5 90.3 93.1 95.8 6.7 3.4 0.7 3 2.3 2.7 3.0 91.9 93.8 95.1 5.8 3.5 1.9 4 1.8 2.3 2.5 91.3 92.8 93.8 6.9 4.9 3.7 5 1.5 1.9 2.2 93.0 95.2 94.9 5.5 2.9 2.9 6 1.6 2.1 2.5 93.9 95.0 93.9 4.5 2.9 3.6 Primary Ave. 2.7 3.0 3.2 90.4 92.8 93.5 6.9 4.2 3.3 Jr. Secondary 1SI 1.3 1.1 1.2 89.8 92.6 92.2 8.9 6.3 6.6 JS2 1.7 1.7 1.7 87.6 90.5 90.6 10.7 7.8 7.7 JS3 0.9 0.9 0.9 JS Average 1.3 1.2 1.2 88.7 91.6 91.4 9.8 7.1 7.2 Source: MOE (1995) Table 2-2-2. Efficiency indicators: 1989-1993 (public only) Average Average Pupil/ Teacher/ Class/ % of classes Year school class size teacher class classroom without size ratio ratio ratio classrooms Primary 1989 173 28 27 1.02 1.24 19.2 1990 170 28 29 0.99 1.24 19.6 1991 162 28 27 1.01 1.24 19.4 1992 164 27 30 0.90 1.28 21.8 1993 168 27 31 0.89 1.28 - Junior Secondary 1989 122 27 15 1.80 - - 1990 111 32 15 2.11 1991 115 33 15 2.25 - - 1992 123 33 16 2.03 0.75 17.2 Source: MOE (1995). ANNEX 2-3 Student Achievement Indicators Table 2-3-1. Criterion-Referenced Test Results on English and Mathematics for the 6th-Grade Students, by Region, 1994 (public only) % of pupils reaching the Mean score S. D. criterion score of 60% of the Region (%) total score Ashanti English 27.8 7.6 0.6 Math 26.4 8.0 0.2 B/Ahafo English 29.1 8.7 1.6 Math 27.0 8.7 1.1 Central English 28.1 7.6 0.9 Math 25.8 8.2 0.4 Eastern English 29.5 9.2 1.6 Math 26.5 8.5 0.8 G/Accra English 40.5 15.5 13.4 Math 32.3 11.5 4.9 Northern English 33.0 11.4 4.4 Math 28.7 9.5 1.3 Upper English 33.9 11.9 4.8 Math 29.4 11.1 3.6 Upper West English 26.1 6.3 0.0 Math 22.8 8.5 0.0 Volta English 31.5 11.0 3.4 Math 28.5 9.7 1.6 Western English 30.7 9.6 1.9 Math 28.3 10.0 1.9 Total English 31.0 11.0 3.3 Math 27.7 9.5 1.5 Boys English 31.1 10.9 3.2 Math 28.3 9.7 1.6 Girls English 30.9 11.0 3.4 Math 26.9 9.3 1.3 Source: MOE (1995). Note: Criterion referrenced tests were administered for 6th grade primary students at 336 schools, with some 8800 pupils. Table 2-3-2. Student Achievement on the Basic Education Certificate Examination Administered for Students at the End of Junior Secondary Education, 1991-94 Year No. of candidates % of students passed 1991 149,038 81.4% 1992 165,359 83.8% 1993 181,824 84.2% 1994 198,782 84.8% Source: MOE (1995). ANNEX 2-4 System Outcome Indicators Table 2-4-1: System Outcome Indicators: 1991-1994 (public only) Transitional (pass) rate of Transitional Completion Completion primary school (pass) rate of Completion rate for 3-year rate graduates to junior secondary rate for 6- junior for 9-year junior school graduates year primary secondary basic secondary to senior education education education school secondary school Year (%) (%) (%) (%) (%) 1991 70.0 82.8 50.5 96.8 35.3 1992 70.1 82.8 51.0 93.9 33.8 1993 72.1 82.6 54.3 95.0 34.8 1994 75.4 82.4 56.8 94.5 Source: MOE (1995). Notes: Completion rate is the ratio between the number of students in the final grade of the cycle, grade 6 in primary and grade 3 in junior secondary in a given year T and the number of students entered grade I in year T-6 and T-3 for primary and junior secondary respectively. ANNEX 2-5 Teacher Quality Indicators Table 2-5-1. Teacher quality indicators, 1990-1994 (Both public and private schools) Total No. % of trained Student/trained Year of Teachers teachers teacher ratio 1990/91 Primary 64,443 66.1% 46 JSS 39,506 59.0% 24 1991/92 Primary 69,933 73.4% 39 JSS 42,249 58.1% 25 1992/93 Primary 64,762 76.7% 41 JSS 39,569 64.4% 25 1994/95 Primary 70597 69.4% 44 JSS 43,107 65.9% 24 Notes: 1) Total number of teachers includes National Service Personnel working as teachers and craft instructors. 2) Trained teachers are defined as those teachers who received pre-service training from a Teacher Training College. ANNEX 2-6 Manpower Indicator Table 2-6. Ghana Education Service Manpower Statistics, May 1994 Teaching and Non-teaching Staff by Level Level Teaching Staff Non-Teaching Total Staff Kindergarten 18,028 766 18,794 Primary 62,608 816 63,424 J.S.S. 30,580 1,015 31,595 Technical 779 786 1,565 S.S.S. 10,851 12,831 23,682 Training Colleges 946 1,436 2,382 Polytechnics 447 327 774 Diploma Colleges 57 91 148 Education Unit Offices 502 715 1,217 District Offices 3,867 2,219 6,086 Regional Offices 453 644 1,097 Headquarters 222 358 580 Study Leave 3,512 40 3,552 Total 132,852 22,044 154,896 Source: MOE. ANNEX 3-1 Expenditure Analysis Table 3-1-1: Public Expenditure on Education in Ghana, 1991-94 (in constant 1994 price, million cedis) Resources and Expenditures Indicators 1991 1992 1993 1994 GDP 4,581,395 4,760,726 4,998,765 4,950,379 Total public expenditure 625,649 808,248 1,001,437 1,156,762 Total public recurrent expenditure 469,242 590,598 765,924 833,152 Public recur. expend (discretionary, including only 346,463 441,829 499,467 523,800 item 1-5 & subvention) Total capital expenditure 139,824 174,761 181,405 173,864 of which Development 108,158 155,774 153,606 165,605 GDP deflator: 1994=100 56.2 63.2 79.0 100l Total public expenditure on education 205,470 209,551 240,668 242,114 Total recurrent expenditure on education 136,112 178,752 196,976 188,573 Basic education recurrent expenditure 82,264 112,272 124,261 112,008 (excluding administrative cost.) Total capital expenditure on education 7,295 7,753 8,101 9,800 Total public expenditure on education 4.5% 4.4% 4.8% 4.9% as % of GDP Total public expenditure on education 32.8% 25.9% 24.0% 20.9% as % of total public expenditure Recurrent expenditure on education 3.0% 3.8% 3.9% 3.8% as % of GDP Recurrent expenditure on education 39.3% 40.5% 39.4% 36.0% as % of total recurrent (discretionary) expenditure Capital expenditure on education as % of GDP .2% .2% .2% .2% Capital expenditure on education 5.2% 4.4% 4.5% 5.6% as % of total capital expenditure Basic education recurrent expenditure 65.6% 68.3% 68.3% 64.6% as % of recurrent expenditure on education" Source: GOG, MOE Note: I/ Including administrative expenditure, allocated in proportion to the subsector's share in the total expenditure. ANNEX 3-1 Expenditure Analysis Table 3-1-2. Distribution of MOE Recurrent Budget and Expenditure, 1993-94 (million cedis) Budget Expenditure Exp/Budg ratio Total share of Salary % Total share of Salary % (items 1-5) line total of line (items 1-5) line total of line out of total' out of total Total Total 1993 Primary 54,877.0 41.1% 95.0% 57,726.6 37.1% 93.9% 105.2% JSS 22,120.8 16.6% 93.7% 40,439.7 26.0% 95.7% 182.8% SSS 15,184.8 11.4% 91.0% 17,593.8 11.3% 90.9% 115.9% Voc/Tech 1,500.7 1.1% 80.0% 1,981.5 1.3% 85.4% 132.0% Teacher Training 4,800.3 3.6% 94.5% 4,068.4 2.6% 94.4% 84.8% Tertiary 2,226.2 1.7% 90.0% 2,104.0 1.4% 85.8% 94.5% Other Education 764.1 0.6% 53.7% 402.2 0.3% 15.8% 52.6% Administration 11,743.4 8.8% 73.7% 11,275.1 7.2% 73.5% 96.0% Subvention 20,273.4 15.2% - 20,019.6 12.9% - 98.7% Total 133,490.7 100.0% 77.5% 155,610.8 100.0% 80.1% 116.6% 1994 Primary 75,300.0 40.3% 96.0% 66,993.9 35.5% 95.9% 89.0% ISS 30,343.7 16.2% 94.7% 45,013.9 23.9% 96.7% 148.3% SSS 23,559.5 12.6% 81.4% 24,476.6 13.0% 83.8% 103.9% Voc/Tech 2,138.0 1.1% 77.8% 2,350.0 1.2% 80.8% 109.9% Teacher Training 6,683.8 3.6% 94.0% 6,245.8 3.3% 94.4% 93.4% Tertiary 2,872.8 1.5% 88.9% 1,471.8 0.8% 78.4% 51.2% Other Education 1,047.7 0.6% 49.9% 416.5 0.2% 15.1% 39.8% Administration 15,847.6 8.5% 75.0% 12,956.9 6.9% 75.8% 81.8% Subvention 29,196.5 15.6% - 28,647.2 15.2% - 98.1% Total 186,989.3 100.0% 76.5% 188,572.6 100.0% 78.0%1 100.8% Source: MOE Note: Total salary's share in the Total MOE budget/expenditure does not include the salary component for the subvented institutions. ANNEX 3-1 Education Expenditure Table 3-1-3. Expenditures on Public Basic Education by Source. 1991-94 (In 1994 constant price, US$) source 1991 1992 1993 1994 Total Primary Expenditure $76,936,830 $94,191,038 $100.783,623 $107,651,762 Total Jr. Secondary Expenditure $50,337,797 $66,762,315 $75.449.633 $82.650.756 Primary Recurrent expenditure Total $73,764,954 $91,097,786 $98,401,986 $94,211,169 MOE $52,019,734 $68,778,481 $75,301.347 $70,025,295 District $44,322 $125,159 $160.708 $37,304 Household $21,700,898 $22,194,145 $22,939,930 $24,148,570 Donor $994,468 $207,037 $4,068,471 $11,468,786 JSS Recurrent expenditure Total $48,208,851 $64,700.147 $73,861,875 $73,690,361 MOE $30,976,668 $46,923,800 $52,751,485 $47,050,726 District $29,548 $83,439 $107,139 $24,869 Household $16.539,656 $17,554,883 $18,290,937 $18,968,908 Donor $662,979 $138,024 $2,712,314 $7,645,857 Share of contribution Primary MOE 70.52% 75.50% 76.52% 74.33% District 0.06% 0.14% 0.16% 0.04% Household 29.42% 24.36% 23.31% 25.63% Donor 1.35% 0.23% 4.13% 12.17% Jr. Secondary MOE 64.26% 72.53% 71.42% 63.85% District 0.06% 0.13% 0.15% 0.03% Household 34.31% 27.13% 24.76% 25.74% Donor 1.38% 0.21% 3.67% 10.38% Primary Capital Expenditure Total $3,171,877 $3,093,253 $2,381,637 $13,440,593 MOE $0 $0 $0 $0 District $2,820,790 $3,076,758 $1,633,865 $3,041,024 Donor $351,087 $16,494 $747,773 $10,399,569 Jr. Secondary Capital Total $2,128,946 $2,062,169 $1,587,758 $8,960,395 MOE $14,362 $0 $0 $0 District $1,880,527 $2,051,172 $1,089,243 $2,027,349 Donor $234,058 $10,996 $498,515 $6,933,046 Share of contribution Primary MOE 0.0% 0.0% 0.0% 0.0% District 88.9% 99.5% 68.6% 22.6% Donor 11.1% 0.5% 31.4% 77.4% Jr. Secondary MOE 0.7% 0.0% 0.0% 0.0% District 88.3% 99.5% 68.6% 22.6% Donor 11.0% 0.5% 31.4% 77.4% % distribution of total expenditure Primary MOE 67.6% 73.0% 74.7% 65.0% District 3.7% 3.4% 1.8% 2.9% Household 28.21% 23.56% 22.76% 22.43% Donor 0.5% 0.0% 0.7% 9.7% Jr. Secondary MOE 61.6% 70.3% 69.9% 56.9% District 3.8% 3.2% 1.6% 2.5% Household 32.9% 26.3% 24.2% 23.0% Donor 1.8% 0.2% 4.3% 17.6% Recurrent spending/student Primary $41.18 $49.37 $53.31 $50.50 iSS $80.93 $102.76 $112.02 $104.34 Total spending/student Primary $42.57 $50.96 $52.76 $56.05 JSS $84.91 $106.10 $115.08 $125.26 Source: MOE; Demery et al (1995). Notes: The household unit cost is taken from the GLSS3 for 1992, and assumed unchanged over the period. Some part of the household expenditure is used also for capital costs, but details are not available. The district expenditure is derived from data available for 27 districts, assuming they represent proportionately for 110 districts. District basic education expenditures consists of contributions by (i) the central government, including District Assembly Common Fund, but excluding MOE budget; (ii) district own-generated resources, and (iii) NGOs and others, and are allocated to primary and JSS by 60%:40%. ANNEX 3-1 Expenditure Analysis Table 3-1-4. Public Expenditure on Teacher, 1991-94 (constant 1994 price) 1991 1992 1993 1994 Total teacher wage bills Primary $50,662,150 $63,830,943 $70,250,037 $65,661,068 Growth index 100 126 139 130 JSS $30,431,232 $44,791,844 $50,607,445 $44,834,172 Growth index 100 147 166 147 Share of teacher salaries in recurrent expenditure for: Primary 94.0% 91.5% 92.0% 93.8% JSS 94.8% 94.1% 94.6% 95.3% Average teacher annual salary Primary $763.24 $1,034.13 $1,127.36 $1,014.57 JSS $911.25 $1,361.62 $1,401.48 $1,258.61 Number of teachers (public school) Primary 66,378 61,724 62,314 64,718 iSS 33,395 32,896 36,110 35,622 Notes and Sources: MOE. JSS teachers does not include National Service staff. Annex 3-2 Equity Aanalysis Tablel 3-2-1. Equity Indicators: Gender gaps in admission rate, GER, retention, and repetition rates, 1989-1993 Admission Rate (%) Gross Enrollment Rate Retention Rate (%) (%) Year Boys Girls Boys Girls Boys Girls Primary Education 1989 - 78.7 - 64.3 71.1 62.3 1990 99.4 87.6 86.7 71.9 79.0 71.1 1991 93.9 84.7 85.8 72.4 82.5 74.1 1992 89.8 81.2 83.7 71.4 83.9 76.7 1993 90.1 80.8 84.2 71.7 88.4 79.6 Junior Secondary Education 1989 - 48.6 - 42.7 80.9 75.6 1990 70.2 50.6 64.6 44.5 87.0 78.8 1991 71.6 53.2 66.2 46.4 88.8 78.9 1992 71.7 55.0 67.4 48.9 86.6 81.3 1993 75.9 58.4 70.4 51.4 88.7 82.2 Source: MOE (1995). Table 3-2-2. Enrollment in Basic Education by Grade, Gender, and Sector, 1994/95 Public l Private Girls Girls as% of as % of Grade Boys Girls Total total i Boys Girls Total total 1 199995 179705 379700 47.3% 23030 22205 45235 49.1% 2 179855 158211 338066 46.8% 23142 21698 44840 48.4% 3 174092 151360 325452 46.5% 1 22315 20957 43272 48.4% 4 169090 143843 312933 46.0% 20073 18719 38792 48.3% 5 158800 131547 290347 45.3% 17069 16197 33266 48.7% 6 153516 120789 274305 44.0% 14909 13629 28438 47.9% Primary 1,035,348 895,455 1,920,803 46.6% 120,438 113,405 233,843 48.5% 7 137913 107607 245520 43.8% 6770 6421 13191 48.7% 8 126319 94557 220876 42.8% 5324 4999 10323 48.4% 9 113085 80370 193455 41.5% 3755 3438 7193 47.8% JSS 377,317 282,534 659,851 42.8% 15,849 14,858 30,707 48.4% Total 1,412,665 1,177,989 2,590,654 45.5% 136,287 128,263 264,550 48.5% Source: PBME, MOE (1996). ANNEX 3-2 Equity Analysis Table 3-2-3: Equity indicators by gender, 1992 Equity Indicators Male Female All % of the population with no education 9.17% 9.95% 9.53% % of the population completing primary education 37.43% 42.07% 39.60% % of the population completing middle/JSS 41.71% 39.82% 40.83% % of the population completing secondary educ. 8.34% 6.48% 7.47% % of the population completing tertiary education 3.35% 1.67% 2.56% Average # of years of schooling 6.4 5.82 6.13 Average amount of scholarship received (cedis) 25,622 27,100 32,720 Average individual income (cedis) 273,411 253,130 263,827 Public subsidies per capita on education* Primary education (Cedis) 4,981 3,883 4,416 Secondary education (Cedis) 5,702 3,564 4,601 Tertiary education (Cedis) 2,119 1,166 1,628 All education (Cedis) 12,803 8,614 10,644 Source: GLSS3. Extracted from Demery, et al. (1995). Table 3-2-4. Equity indicators by poverty group, 1992 Equity Indicators Very Poor Poor Non-poor All % of the population with no education 16.11% 12.66% 8.88% 11.70% % of the population completing primary education 49.07% 48.31% 37.75% 43.18% % of the population completing middle/JSS 31.25% 32.53% 42.47% 37.33% % of the population completing secondary educ. 2.99% 4.32% 8.11% 5.90% % of the population completing tertiary education 0.57% 1.43% 2.79% 1.89% Average # of years of schooling 4.91 5.48 7.06 6.13 Average household education expenditure (cedis) 7,976 11,067 20,484 14,240 Average amount of scholarship received (cedis) 15,279 20,500 41,441 32,453 Average individual income (cedis) 198,736 254,910 292,961 264,254 Source: GLSS3. Extracted from Demery, et al. (1995). "Poor group" is defined as those individuals at or below 2/3 of mean expenditure per capita; "'very poor group" is defined as those individuals at or below 1/3 of mean expenditure per captia. ANNEX 3-2 Equity Analysis Table 3-2-5 Equity indicators by household expenditure quintile, 1992 Quintile 1 2 3 4 5 All Equity Indicators Poorest <<<<< >>>>> Richest Gross Enrollment Ratios (GER) Primary education 75% 91% 90% 91% 101% 88% Secondary education 27% 40% 38% 45% 45% 39% Public subsidies per capita on education Primary education (Cedis) 4,815 5,219 4,797 4,147 3,100 4,416 Secondary education (Cedis) 3,431 5,026 4,849 5,412 4,285 4,601 Tertiary education (Cedis) 485 775 1,551 1,648 3,683 1,628 All education (Cedis) 8,731 11,021 11,196 11,207 11,067 10,644 Household spending per student on education Public primary schools (Cedis) 5,148 6,028 7,627 8,881 10,617 7,364 Public Secondary schools (Cedis) 13,545 17,345 22,223 28,437 38,954 24,441 Source: GLSS3. Extracted from Demery, et al. (1995). Table 3-2-6. Equity Indicators by locality, 1992 Equity Indicators Urban Rural All % of the population with no education 7.70% 14.23% 11.70% % of the population completing primary education 37.13% 47.01% 43.18% % of the population completing middle/JSS 41.28% 34.83% 37.33% % of the population completing secondary educ. 10.75% 2.83% 5.90% % of the population completing tertiary education 3.15% 1.10% 1.89% Average # of years of schooling 7.39 5.34 6.13 Incidence of poverty in the population 46.44% 54.50% 51.89% Average individual income (cedis) 351,021 215,813 264,254 Average amount of scholarship received (cedis) 41,093 20,177 32,454 Average household education expenditure (cedis) 24,135 8,806 14,240 Household education expenditure per student * Public primary schools (Cedis) 12,318 5,248 7,364 Public secondary schools (Cedis) 34,072 17,422 24,441 Public Tertiary education (Cedis) 105,176 66,500 95,518 Source: GLSS 3. * : Extracted from Demery, et al. (1995). ANNEX 3-2 Equity Analysis Table 3-2-7. Enrollment in Primary education by Region, by Sector, 1992 Total % of private enrollment GER Region enrollment (%) Ashanti 390,238 14.1% 88.2 B. Ahafo 208,986 4.9% 76.7 Central 196,065 2.7% 85.7 Eastern 287,670 5.3% 81.6 G. Accra 280,672 35.6% 86.5 Northern 136,328 2.4% 51.3 Upper East 75,875 0.2% 46.1 Upper West 48,909 0.1% 53.7 Volta 219,301 1.7% 90.6 Western 203,249 4.0% 79.9 GHANA 2,047,293 9.7% 77.6 Source: PMBE, MOE Table 3-2-8. Equity indicators by region, 1991-92 (Public only) Total No. Pupil/ % of % of Total % of girl of teachers teacher female trained Region enrollment enrollment ratio teachers teachers Primary Ashanti 337,039 46.9% 11,853 28 41.4% 75.5% B. Ahafo 186,579 46.2% 7,762 24 25.5% 64.4% Central 187,631 46.3% 6,474 29 34.2% 74.4% Eastern 274,162 46.4% 11,425 24 34.5% 76.8% G. Accra 174,960 49.2% 4,776 37 72.3% 90.1% Northern 130,338 35.1% 5,400 24 26.4% 65.7% UpperEast 67,461 39.0% 2,153 31 35.9% 78.6% Upper West 42,841 42.7% 1,551 28 35.8% 84.0% Volta 205,971 46.1% 7,743 27 33.5% 84.8% Western 200,241 45.8% 7,241 28 28.8% 55.7% National 1,807,223 44.4% 66,378 28 36.8% 75.0% Jr. Secondary Ashanti 116,680 43.1% 6,267 19 24.7% 75.7% B. Ahafo 65,877 41.9% 3,969 17 10.8% 66.0% Central 63,573 40.1% 3,644 17 21.8% 71.4% Eastern 88,990 41.0% 5,551 16 23.1% 75.2% G. Accra 80,859 47.4% 3,428 24 52.0% 82.0% Northern 27,110 25.4% 1,600 17 14.1% 61.3% Upper East 13,162 35.0% 1,008 13 14.3% 51.5% Upper West 11,133 38.1% 849 13 14.3% 58.1% Volta 67,591 39.7% 3,396 20 18.1% 81.7% Western 57,892 39.6% 3,631 16 21.9% 62.5% National 592,867 39.8% 33,343 17 21.5% 68.5% Source: MOE (1995). ANNEX 3-2 Equity Analysis Table 3-2-9. Recurrent unit cost and operating unit cost for basic education by Region, 1992-94 ._______ Primary |JSS l Region 1992 1993 1994 1992 1993 1994 Ashanti Unit recurrent cost $37.70 $40.70 $38.96 $49.21 $56.35 $49.54 Unit operating cost $0.07 $0.15 $0.16 $0.48 $0.65 $0.67 B. Ahafo Unit recurrent cost $15.21 $43.43 $39.44 $163.04 $121.44 $53.45 Unit operating cost $0.18 $0.21 $0.19 $0.61 $61.33 $0.67 Central Unit recurrent cost $30.49 $17.68 $177.24 $158.87 $114.57 $119.55 Unit operating cost $0.16 $0.12 $0.13 $0.41 $0.52 $0.56 Eastern Unit recurrent cost $38.28 $41.81 $37.53 $89.75 $90.78 $79.39 Unit operating cost $0.13 $0.17 $0.18 $0.90 $0.81 $2.23 G. Accra Unit recurrent cost $29.62 $33.27 $47.19 $45.79 $47.72 $44.31 Unit operating cost $0.10 $0.11 $0.08 $0.27 $0.31 $0.31 Northern Unit recurrent cost $152.10 $30.69 $51.90 $66.67 $58.87 $100.57 Unit operating cost $0.17 $0.16 $26.13 $0.73 $0.78 $51.07 U. East Unit recurrent cost $15.59 $24.96 $22.05 $39.96 $51.46 $50.83 Unit operating cost $0.07 $0.14 $0.18 $0.65 $0.88 $1.20 U. West Unit recurrent cost $30.26 $98.08 $22.90 $68.60 $32.89 $44.81 Unit operating cost $0.58 $0.46 $0.16 $0.85 $0.95 $0.62 Volta Unit recurrent cost $56.42 $51.73 $61.68 $85.56 $83.47 $65.30 Unit operating cost $0.17 $0.12 $31.03 $0.83 $0.80 $13.55 Western Unit recurrent cost $62.28 $42.26 $4.47 $170.34 $127.28 $73.05 Unit operating cost $0.26 $0.14 $0.16 $2.29 $0.66 $0.75 GHANA Unit recurrent cost $45.76 $39.64 $52.19 $95.42 $82.79 $67.35 Unit operating cost $0.16 $0.16 $5.65 $0.76 $7.33 $4.96 Source: MOE. Note: (I) Recurrent expenditure includes salary and non-salary operating costs. The operating cost refer to non-salary expenditure (items 2-5) (2) Figures in italics are questionable, due to possible errors in the raw data. Annex 3-3 Cost-Benefit Analysis Cost-Benefit Analysis: Returns to Education Introduction 1. Of the several important investment decision criteria such as the Net Present Value (NPV), the Benefit-Cost Ratio (BCR) and the Internal Rate of Return (IRR), each with its own relative advantages and weaknesses, IRR has been extensively used for establishing education investment priorities at the margin. It has been shown that in education projects in which the net flow of benefit stream does not change very often, multiple rates of return rarely occur, and IRR criterion gives the same answer as NPV. The present analysis is built around the calculation of IRR from both private and social perspectives. Benefits of Education: Age-Education-Earnings Profiles 2. Measurement difficulties allow, among the innumerable education benefits, only the direct monetary benefits associated with education to be brought into the cost-benefit analysis. In the case of Ghana, the data set obtained from the 1992 Ghana Living Standards Survey (GLSS3) can be used for the construction of age-education earnings profiles. It is assumed that children in Ghana do not enter the labor force before age 9 and their working life ends by age 65. The data set on earnings are further classified into four groups by the educational background: illiteracy or no education, primary education (those who have completed 6 years of primary schooling), secondary (additional 6 years of schooling beyond primary level), and higher education (additional 4 years of schooling beyond secondary level). While this four-group classification is useful particularly for international comparison, earning profiles can also be obtained for five educational groups dividing the secondary into two: junior secondary and senior secondary levels according to the current educational structure: 6 years for primary, 3 years for junior secondary, 3 years for senior secondary, and 4 years for tertiary education 3. Based on the above age and education classifications , the average age-earnings profiles were derived by level of education. The results show that: (1) earnings are positively correlated with the level of education; (2) a profile tends to rise with age to a peak and then fall until retirement age; (3) profiles for more highly educated individuals are steeper than for the less educated; and (4) the higher the level of education, the later the age at which earnings reach their peak (Figure 3-3-1). Although the profiles of higher educational levels lie above the lower educational levels, there is some degree of conversion of the profiles at other levels. This is due in part to the relatively small number of observations in the sample, which places unproportional weight on exceptional sample cases. In addition to the sample population as a whole, the age- education earnings profiles were also obtained for subgroups: male and female, poverty group and non-poverty group, and urban and rural areas. The summary of the profiles for all age groups is presented in Table 3-3-1. For the purpose of this analysis, the new education structure is used considering its comparability and relevance, instead of using the pre-1987 structure. Annex 3-3 Cost-Benefit Analysis Figure 3-3-1. Age-Education Earnings Profilef of Ghana, 1992 10,000,000 _ _ - _-_ _ ----- T~~~~~~~-L7 - -- - - - -t - \- 1,000.000 -4-- No education 100,000 - Primary - - --------------- - - --------- A Secondary -e- Higher _ _ es N Cn Cn t CD CD uC I I? I? I I , I 0) N 4- _- CO'_ _ D- O. _ .- N N ' C t L O Table 3-3-1. Mean earnings by subgroup, Ghana, 1992 Mean Earmings by Level (cedis) Subgroup No educ. Primary Secondary Higher Male 136,297 190,867 314,570 938,969 Female 118,655 227,406 488,867 1,466,923 Poor 109,109 177,793 369,601 461,319 Non-poor 143,586 233,763 386,402 1,247,228 Urban 150,607 314,426 432,866 581,671 Rural 115,807 169,962 213,123 796,911 All 126,594 209,103 382,426 1,075,757 Source: GLSS3 (1992) Costs of Education 4. Costs of education consist of two important components: private and public costs. Private cost is defined as that part of the investment in education which is incurred either by the pupil or by his/her parents/guardian or by both. The private costs consist of two major elements: (a) direct household costs on education including tuition fees and non-tuition costs such as expenditure on books, stationary, transportation, uniformns, and meals; and (b) opportunity cost, also known as "foregone earnings" that would have been earned had the pupil not attended school. Foregone earnings have been derived on the basis of the age-earnings profiles constructed from the GLSS3 data. In contrast, the public costs include the spending on education by the public sector at large. The average earnings by level of education for the whole sample and subgroups, presented in Table 3-3-1 above, can be taken as income foregone, and both public and private unit costs of education are shown in Table 3-3-2. Annex 3-3 Cost-Benefit Analysis Table 3-3-2. Unit Costs and Length of Cycle by Level, Ghana, 1992 Education Level Unit cost (Cedis) Primary Secondary Higher Public unit cost* 24,824 65,275 392,707 Private unit cost 7,364 24,441 95,518 - tuition 1,331 5,309 25,191 - PTA fees 264 677 1,086 - clothing 1,819 3,481 6,054 - books/supplies 710 3,447 18,446 - transport 148 1,586 12,340 - food/lodge 2,126 5,544 18,852 - others 966 4,397 17,757 Length of cycle (yr) 6 6 4 Source: Demery, et al. (1995). The incidence of social spending in Ghana. PSP Discussion Paper # 82. The World Bank *Note: derived from the central government recurrent expenditure, 1992. Estimation of the Rate of Return to Education 5. Based on mean earnings by each subgroup and unit costs presented above, the results of estimating rates of return to different levels of education are presented in Table 3-3-3 using the short-cut method2. Primary education in Ghana on average produces a private rate of return of 28 percent and a social rate of return of 19 percent. At the secondary level which for the sake of this analysis combines the junior secondary and senior secondary levels, the return to education is 12 percent and 10 percent for private and social rates respectively. Table 3-3-3. Returns to education, Short-cut method, Ghana, 1992 Private Social Primary Secondary Primary Secondary over no ed. over primary over no ed. over primary Ghana Overall 27.7% 12.4% 18.5% 9.7% Source & Note: GLSS3 (1992). Private unit costs or household costs per student have been included as a part of the education costs in the calculation of both private and social rates of return to education. Assuming 2 years of foregone earnings for primary school students. 6. The subgroup analysis (Table 3-3-4 below) shows that females benefit more from all levels of education than males in terms of both private and social rates of return, highlighting the importance of investments that will increase enrollment of girls. In addition, the poor benefit 2 The alternative 'full-method' using age-earning profiles, instead of mean earning profiles, tends to provide more accurate results, but requires more reliable data set. The existing data set with lots of missing data does not allow sensible subgroup analysis, hence only the result of the short-cut method is presented. The full-method according to the present data set gives lower rates of return. Further study will be necessary to reconcile the difference in the results from the different methods. Annex 3-3 Cost-Benefit Analysis considerably more from primary education than from any other level of education, suggesting that interventions for increasing the poor's access to primary education will have high payoffs. Compared with people in rural areas, people living in urban area show higher returns to all levels of education except higher education, mainly due to job opportunities in urban areas. Table 3-3-4. Returns to education by subgroup, Short-cut method, Ghana, 1992 Subgroup Private Social By Gender Primary Secondary Primary Secondary Male 17.2% 9.6% 11.7% 7.3% Female 38.6% 17.3% 25.3% 13.7% By Poverty Status Poor 26.2% 15.8% 16.7% 12.0% Non-poor 27.2% 9.9% 18.8% 7.9% By Locality Urban Area 47.4% - 33.1% - Rural Area 19.6% - 12.8% - 7. Mincerian method. The findings in the short-cut method is largely consistent with the results using the semi-log earning function specification, developed by Mincer. The coefficient on years of schooling can be interpreted as the average private rate of return to one additional year of education, regardless of the education level to which this year of schooling refers. Again, there are higher returns to one additional year of schooling for females than males. The Mincerian method, however, gives different results on the rural-urban investment preference: people in rural areas have somewhat higher returns than those in urban areas, suggesting that targeting on rural areas would have a relatively higher pay off than on urban areas. Table 3-3-5. The coefficient on years of schooling: Mincerian mean rate of return, by gender, poverty status, and locality, 1992 Group Mean years Coefficient of schooling (percent) By Gender Male 6.4 9.3 Female 5.8 10.6 By Poverty Status Poor 5.2 9.4 Non-poor 7.1 9.3 By Locality Urban 7.4 8.0 Rural 5.3 8.9 Overall 6.1 10.5 Source: GLSS 3 (1992) ANNEX 3-4 Fiscal Impact Analysis ANNEX 3-4. Fiscal Impact Analysis The FCUBE program with support of the proposed credit aims at (a) improving the teaching and learning process and outcome; (b) enhancing efficiency of basic education management; (c) achieving better access and participation; and (d) helping establish a financially sustainable education sector. For FCUBE to be financially sustainable, demand-driven policy options need to be guided by factors derived from reasonable expectations as to how much resources can be mobilized. Among various performance objectives, a few financially important ones are selected from each program component for this analysis. Accordingly, both demand (access and quality) and supply factors (resource availability) have been considered. Approach The analysis has been done in the following process: i. Enrollment projections ii. Teacher analysis iii. Cost analysis iv. Resources analysis v. Analysis of different scenarios (low, medium, high) These analyses are based on three scenarios, each presuming different macroeconomic environments and resources available to the education sector. Some elements of sensitivity analysis are also included in the scenario analysis, such as the impact of the class flow efficiency under the FCUBE reform on enrollment and costs. Low Scenario. Ghana fails to maintain macroeconomic stability and the economy grows only at 3 percent annually. However, the strong financial commitment of the Government to education is not likely to fade, and MOE's share of the total recurrent budget is sustained. Education costs for the poor are prohibitive, and GOG can not extend financial support to them. Medium Scenario. The present level of economic growth (5 percent annually) is sustained. Macroeconomic conditions are stable, and public spending including MOE's recurrent budget stays at a constant share of GDP. The private sector's growth in providing education service continues at the present pace until it slows at the market plateau. High Scenario. The macroeconomic environment is favorable and the Ghanaian economy grows at a higher rate (7 percent per year). Gains from growth are clearly visible in the increased private provision of basic education, and increased household spending on education contributes to improvements in children's learning achievement. 1. Enrollment projection. Ghana has a policy of automatic promotion throughout the basic education cycle. The student flow model used is based on admission into the primary school, promotion, repetition and dropout. It allows for measuring the impact of improvements in the flow efficiency. ANNEX 3-4 Fiscal Impact Analysis Results of enrollment projections are affected by policy decisions on giving priority to quality- improvement or enrollment expansion. Ghana's choice of quality improvement as a priority is sound, especially if we take into account the interaction between improvements in the quality of education and increases in enrollment. However, the quality emphasis requires increasing contribution by the private sector to education service delivery, which in turn requires economic environments favorable to private sector growth. The following table gives the enrollment projections under the medium case scenario based on the combination of the policies that are described in the following page. Enrollment: Medium Case Scenario 1994 2000 2005 (base*) Primary school age pop. (6-11) 2,836,772 3,487,117 4,141,601 enrollment: public 1,920,803 2,524,360 3,574,412 private 233,843 357,155 579,919 gross enrollment ratio 76.0% 82.6% 100.3% admission rate into PI 82.5% 94.0% 108.8% Jr. Secondary school age pop. (12-14) 1,177,493 1,447,440 1,719,104 enrollment: public 659,851 865,847 1,188,108 private 30,707 110,974 170,489 gross enrollment ratio 58.7% 67.5% 79.0% 2. Teacher analysis. The annual net increase in the teaching force is derived from the number of new teachers recruited, teacher attrition rate, and a redeployment of administrative staff with teacher's qualifications back to schools. The number of new recruits is decided by several factors: a pupil-teacher ratio as a monitoring reference, TTCs' supply capacity, actual TTC graduates who take teaching posts, and the impact on the wage bill. The analysis indicates that annual recruitment of some 4,000 new primary teachers would be appropriate over the FCUBE period, while for junior secondary, the number needs to be raised gradually from the present level of 1,100 to 1,900. MOE should make efforts not to enlarge the size of the teacher salary envelope beyond the rate of the overall real MOE budget increase. Given the present level of "waste" in graduates, supply capacity of the existing TTCs is not taken as fully and efficiently utilized, hence no additional TTCs need to be constructed in the medium term. ANNEX 3-4 Fiscal Impact Analysis Summary of Scenario Analysis Scenario Low Medium High Average GDP growth rate 3 % p.a. 5 % p.a. 7 % p.a. MOE budget growth rate 3 % p.a. 5 % p.a. 7 % p.a. Policy Guidelines / Key Assumptions Growth rate of school-age 1994:3.5% constant 3.5% 1994: 3.5% (6-1 1) population 2005: 4.0% 2005: 3.2% ................................................................................................................ .............................................. .. ....................................... P1 public intake growth 1996: 4 % 1996: 4 % 1996: 4 % 2000: 3% 2000: 7% 2000: 8% 2005: 3% 2005: 5% 2005: 8% .............................I................................................................................... .............................................. .......................................... PI private intake growth 1996: 10 % 1996: 10 % 1996: 10% 2005: 5% 2005: 8% 2005: 15% ................................................................................................................ ........................ ...................... ......................................... Flow rate improvement constant repeaters/dropouts same as decrease by 10.0% Medium yearly Ave. teacher salary real constant 2.0% p.a. 3.0% p.a. growth Recurrent non-wage budget constant 10.0% p.a. 10.0% p.a. real growth ............................ ; ~ ;............................................... ........................ .....................................I......... .......................................... DACF on education 10.0 % p.a. 20.0% p.a. same as Medium real growth Demand for additional school primary: 12057 primary: 17933 primary: 18351 facility(public, 96-00) jr. Sec.: 5455 jr. Sec.: 6866 jr. Sec.: 6866 IMPACTS Primary GER in 2005 75.2 % 100.3 % 111.1 % JSS GER in 2005 65.5 % 79.0 % 79.6 % ........................... ............................................................................. .............................................. .......................................... Basic Education Costs 1996-00: 1,252 1996-00: 1,351 1996-00: 1,445 $ mil 2001-05: 1,404 2001-05: 1,522 2001-05: 1,871 Basic Education Financing 1996-00: 1,062 1996-00: 1,121 1996-00: 1,175 (excluding donors) $ mil 2001-05: 1,245 2001-05: 1,404 2001-05: 1,668 BE Financing Gap 1996-00: 190 1996-00: 230 1996-00: 270 (without donors) $ mil. 2001-05: 159 2001-05: 118 2001-05: 203 ... ...................................................................................................... .............................................. .......................................... Number of BE teachers same as 2000: 113,524 same as Medium 2005: 129,078 Medium ................................................................................................................ .............................................. ......................................... Pupil/Teacher ratio 2000: 29.1 2000: 31.5 2000: 31.7 Primary (public) 2005: 29.7 2005: 39.0 2005: 41.2 P/T ratio 2000: 24.9 2000: 26.1 2000: 26.1 JSS (public) 2005: 26.3 2005: 31.8 2005: 31.9 Class/classrm ratio 2000: 1.4 2000: 1.4 2000: 1.4 Primary (public) 2005: 1.4 2005: 1.3 2005: 1.3 Class/classroom ratio 2000: 1.3 2000: 1.3 2000: 1.3 JSS (public) 2005: 1.3 2005: 1.3 2005: 1.3 ANNEX 3-4 Fiscal Impact Analysis 3. Cost Analysis. The model incorporates all expenditures incurred at all levels (i.e., the central and local governments, at the school and household levels). It looks at the salary of teachers; costs of textbooks and other educational materials; administrative costs including overhead, operation and maintenance costs; costs of building new schools and their maintenance, and various costs to the household. The total 10-year costs of the FCUBE program implementation will be US$2.9 billion, of which the first 5-year phase will be US$1.3 billion. Instead of a conventional approach using a unit cost per pupil, the model uses a detailed breakdown which allows for measuring the impact of changing the policy pertaining to each of the cost items. Average teacher salary, including the incentive package, will not increase by more than 2 percent annually, in real terms, and in reality, should be in harmony with the movement of other public services salaries. To provide the necessary educational materials to all the students, about 18 percent of recurrent expenditure needs to be spent over the period 1996-2005, implying that for the sector to be sustainable, MOE's budget structure needs to be adjusted accordingly in a gradual manner. If successful, central administration can become leaner, and in 10 years administrative costs can be reduced from the present level of 10.4 percent to 8.7 percent of the recurrent costs. This can be achieved through various efforts to make sectoral management more efficient. During the second phase of the FCUBE program (2001-2005), betterment costs of US$205 million is estimated, of which supply of textbooks and other educational materials alone will account for some 90 percent of the costs. Medium Scenario Cost and Financing for FCUBE (US$ million) First Phase Second Phase FCUBE total 96-00 01-05 96-05 Betterment $241.6 $205.0 $446.6 Other basic education sector cost $1,109.6 $1,316.8 $2,426.4 TOTAL COST $1,351.2 $1,521.8 $2,873.0 Total Ghana $1,120.9 $1,404.3 $2,525.2 Ongoing donor support $54.0 $0 $54.0 TOTAL FINANCE $1,174.9 $1,404.3 $2,579.2 Donor additional (committed) $151.0 $0.0 $151.0 Financing gap $25.3 $117.5 $142.8 Recurrent Cost Structure, Medium Scenario 1994 ave. 1996-00 ave. 2000-05 Recurrent Costs 100.0% 100.0% 100.0% (without household) teacher salary 82.1% 74.3% 74.0% educational materials 7.5% 17.0% 17.7% admin costs: salary 7.4% 6.0% 5.6% admin. non-salary 3.0% 2.7% 2.7% ANNEX 3-4 Fiscal Impact Analysis 4. Financing Analysis. All domestically available financial resources are included in this submodel: the central budget, intergovernmental transfers, local government's own generated fund, and contributions from households. MOE's budget is assumed to grow at the same pace as the country's economic growth. Internal allocation of the budget is considered to remain unchanged because basic education's receipt of 65% of the recurrent budget is already favorable, and increasing pressure is expected on the secondary and higher levels of education as a result of improved basic education. Gradual reallocation within the basic education subsector will become necessary as the relative demand for junior secondary education increases. The total resources domestically available to fund the FCUBE program over the period 1996-2005 will be US$2.6 billion, and US$ 1.1 billion for the first phase. Funds to be mobilized externally are not taken into account in here, and will be used to help fill the financing gap. Allowing further increases in the average teacher' salary, even marginally from 2 to 3 percent annually, is justified only under the higher economic growth scenario in which more GOG budget for the education sector will be available relative to the low and medium scenarios. Under the Medium Scenario, the combination of policy options requires additional US$176 million over the period 1996- 2000, annually US$40 million on average, to be mobilized externally. Of this additional resource requirement, US$151 million has been already committed so far by the program cofinanciers including UNICEF, USAID, ODA, and Germany, and EU and the governments of Japan and Norway have indicated their interest in contributing to the program. The proposed IDA credit is expected to contribute US$ 50 million. In all scenarios, even though adequate capital costs for additional intake are estimated, still about 30 percent of classes will have no classroom of their own. This requires continuing the double-shifting, particularly in densely populated areas. Overall, Ghana's FCUBE objectives of quality improvement and universalizing basic education are attainable, for the primary level within the coming 10-year period, and up to the junior secondary level by the year 2010. Toward the end of the 10-year program, different sets of policies will be warranted to ensure financial sustainability. These include, among others, a review of policies on the intra-sectoral allocation of resources, annual demand for new teacher recruitment, and adequate arrangement to continue the provision of educational materials which will become increasingly more costly. ANNEX4 Page I of 11 .,., : ..j~I ,. A,,,wt +,- ................t*. MINISTRY OF FINANCE t.... .A ~,.ld ~.s.*P.O. BOX M 40 ACCRA ; lPUMULIC OF CTIANA PLAN FOR FREE, COMPULSORY AND UNIVERSAL BASIC EDUCATION (CUBE) PROGRAMME, 1996 -2005 LEITER OF BASIC EDUCATION DEVELOPMENT POLICY MR JAMES WOLFENSOHN PRESIDENT THE WORLD BANK WASHliNGTON, D.C. 20433 Dear Mr Wolfensohn. GHA.NA: FREE, COMPULSORY AND UNIVERSAL BASIC EDUCATIC)N PROGRAMME: 1996-2005; LETTER OF BASIC EDUCATION DEVELOPMENT POLICY I am writing to you in connection with the proposed International Developmenr Association (IDA) Basic Exucation Sector Isnprovement Credit which is designed Lo assist all young Ghanaians to receive: at least nine years of quality schooling to ensure that, irrespective of gcnder, economic circumstance or geographic location, they lcam slills and develop attitudes that wvill enablc them to play a functional role in society as inforned and productive citizens. I would lilke to inform thc Association of the progress made in the basic education suib.sector since the start of our cducation refonn programme in 1987, and give an outline of further policy initiatives that the Government plans to implement in this sub-sector over the next ten years. A. Background and Goals Basic education is the fundamental building block of any nation. Given that the loiig- term vision for Ghana is to become a middle-income countuy by the year 2020, a Ivncli- pin of thc governrnent's developmnent plan is a nation-wide. susLained effort to expand. I ANNEX4 Page 2 of 11 suren,grhcn. and make more relevant its basic education systcm. In recognrition of this, the Government seeks to provide quality basic educalion (8F) for all school age ch)Idrcn as soon as is practicable. The central goal of the BE system in Ghana is to ensure that all young people are equipped v,ith the fundamental knowledge. attitudes and skills that will enable them to be active participants in and beneficiaries of national development. The policy initiatives outlined below are the Government's response to a cons-iturionally- mandated charge. Article 39(2) c the 1992 Constitution of the Fourth Republic of Ghana states: The Govemment shall, within two years after Parliament first meets after coming into force of this constitution. draw up a programme for implementation wivthin the Following ten years, (or the provision of free, compulsory and universal basic education. B. Structure The resrructuring of the educ2tion sysiem has been a k-ey element of the reform that srarred in 1 987. The current system consists of Primary (grades l-6); Junior Secondary (grades 7- 9). togerher forming a nine-year BE cycle; followed by Senior Secondary (10-12); Technical; and several optional forms of Tertiary Education that include universities, polytechnics and teacher training colleges. C- Financing The Government's emphasis on the importance of education in the development process is unequivocal. The proportion of the national recurrent budget (net oi debt servicing and orher extra-budgetary items) allocated to education has increased from 31 percent in 1987 ro almost 39 percent as an average over the past five years. Intra-sectoral allocation has been increasingly in favour of BE which is currently receiving about 65 percent of MOE's recurrent budget (up from 60 percent in 1989). Govemment resource commitments to education as set out in the policy document "Ghana; Vision 2020" are projected to increase proportionately with national economic growth rates and to stay at 40 percent of the national budget through to 2000. D. IKey Issues in Basic Education Key issues in basic education in Ghana mray be care,orised into four areas: Poor Teaching and learning ouLcomes 2 ANNEX 4 Page 3 of 11 A new' education srructure has becn pul in placc. ihc propo7n0on of trainerd 5zai has grow., ihe volume of materials and equipmenr inco the cecror has incrc_sed, and rncre scnool zacilities have resulted in increased enrolments- Yer the reform has had limited success in dclivering quality teaching and leaminir7 outcomes. Pupil achievement concinues to be very disappointing. Reasons for weak Il-arnin- rccults include: lack of learning materials, aind even where available, teachers often do nor rnake effective use of ci ern; inadequate funding oi non-;alary recurrent expenses: high levels of pupil and teacher absenirneism, inefficient use of teacher. pupil instructional contact hours; outmoded pre-s-ervice teacher training and inadequate in-service teacher development; unmorivated teachers owing to unataractive incentives, ineffective sanctions and low social status of .eachers; an overly ambitious curriculum, burden-some to boch teachers and pupils; and lack of suitable phYs5cal facilities in many locations. Access and Gcnder Sias Across the country, conspicuous dispariry exists in access to basic education services between boys and girls, rhe rich and thc poor, and arnong geographic regions. 8E is supposed to be tuition-free and open to all Currentiv. insufficient access. poor quality and financial consrraints make the policy more of a promise than a reality. Nominal gross enrolments at the primary and junior 5econdary levels stand at 78 and 38 per cent respeciively of the relevant age cohorts. There are also equity concerns. Enrolments in the northern regions are up to 30 per cenr lower than the national average. In some areas, girls comprise only 35 per cent of primary and as little as 28 per cenr of junior secondary enrolments. Aithough primary enrolmenrs have grown by about 25 percent since the reform programme began, expansion has come without the requisite improvement in the quality of teachin- and leaming. Furthermore, the expansion has not been rapid enough ro keep up with the pace of the school-age population growth resulting in a stagnating or even declining rarios oi BE gross enrolment. Insufficienr infrastructure, family poverty, unavailability of teachers and geographic isolation all coincide to form a complex web of drsadvantage. Inappropriate Management Structures and Weak Management Capacity Effective managernent within the educarion sector depends upon rhe management capabilities of the central Ministry, the GES. the districrs and the schools thnem5elves. With Govemment firmly cornmitted to the process of decentralisacion of administration oi public secior institutions, including education. capabilities have to be improved to meet The requirements of a system under which discricis and communities themselves will have enhanced responsibility and authority to improve the quality of and participation in education at the school level. However, incomplete and unclear transfer of authority, lac:-: of clarity in job descriptions, ineffective ;uff posting procedures, inadequate planning, nmonitoring and evaluation, and inadequarely trained scaff at all levels of rnana,ement have 2l conrribured to harnperina the effcc-ive crriplen,entra7on of decenrr.rlrsacinn pcbCiv. ANNEX 4 Page 4 of 11 Critical rnanagement issues are to be addressed: ihe managerient siruciure of 0F-S that remains "rop heavy with rnany leveis o1 management and with sorne duplication vf functions amonc headquarrers, regions and districts; tnadequacies in [hp supervision cd schools and the limitation of disciplinary processes that seriously undermine effective reachins,; data essential for planning and resource utilisation ihat are reported in .a m.anne, of little practical utiliry; coo tew capable managers it all levels of the GES; personncl emoluments that absorb a very high proporsion of the recurrent budger leaving very limrivd resources at the district and school level ro improve qualicy; few incentives available to teaching anc? adminisTrative staff to encourage and reinforce good performance; and lack of community participation in school governance. Inadequatc Resource Mobilisation and Inefficient Util;sation The education sector has been receiving about 39 percent of Government's discretionary recurrent budget; and around 3 percent of the development (capital investrment programme) budget. The expenditure side has been constantly affected by uncertainties in salary raises and number of staff on the payroll. MOE's actual expenditures have been overrunning the budget, but nearly the entire overrun can be attributed to salary related expenses. The absence of a reliable and timely expenditure monitoring system is partly responsible for this. Furthermore, internal resource allocation within the basic education sub-sector is heavily influenced by the sheer size of the wage bill. Of the total MOE/GES expenditures, personnel emoluments account for 85 percent. When looking at school-level basic education expenditure, around 98 percent of the national recurrent allocation is absorbed by the salary related costs and only the tiny remainder is available for teaching/learning materials, school operation and maintenance. 11 ELEMENTS OF THE BASIC EDUCATION INITIATIVE A. Strategic Framework The Govemment's recently announced Free Compulsory Univer5alf Basic Education (FCUBE ) Programme addresses Three major goals. Qjalivy Imorony-menr of F cervics will enable the rnajority of BE 1-9 pupils to meet ,Acceptable standards of performancc; reduce repetition and dropout rates; increase the BE completion rare as well as the pass rate for admission into second cycle senior secondarv and technical) insrirutions. ,M.nagm ilaccj o; thrn uucarlQn Svsrirm will be improved along several d:rnwenS.oni S',;em nariaceneri, will bc strengThened and streamlined overall, wiir I ANNEX 4 Page 5 of 11 rmcreasng cielegation of decisori-rriakiti- Atihorily and respoiib iloy To she di.rri, r .nd school levcfs. Acces_toqjnd paririrpatjin in ha;iC edLucation services will be cxparnded progressivelv for all school-a-e children, but especially for girls and for pupils from disadvantaged areas. Alternativc service delivery arrangements to the traditional model will be piloted. Orie or the most important lessons leamed since the current education reform programme is that continuing to expand access to basic education and to increase physical inputs Into the system are not effective unless the qualiry of activities at the school level improves si-nificantly. B. Key Components The Government affirms that quality improvement will receive the highest prioriry in the FCUBE initiative. All activities under the Programme will cover a 10-year period from I 996-2005. and will be implemented in two 5-year phases. This initiative is the sole programrne for basic education improvement in Ghana, and will embrace all current and future acrivities supported from national and external funding sources. The Programme is composed of three components which will be implemenred in a comprehensive and carefully integrated fashion. 1. Imgroving rhe Qualiry of Teaching and Learning The pedagogical improvement component will promote effective teaching by enhancing specific teaching skills through pre-service and mainly school-based in-service training programmes, and bv improving teacher morale and motivating staff through a teacher incentive programme. Improvement in rhe quality of leaming and student performance will be promoted through curriculum review and adaptation; the reprinting of existing and production of new learning materials, syllabuses and teachers handbooks; and the regular mccsccmant of pup;l porformrxanco to inforrr tachrr., parontr 3fnd pupdlt rhemeal_koc oi t&cir progress and to provide objective measures to evaluate basic education. Key elements include a) Strengthening capabilities in curriculum and learning materials developrnent, procurement, distribution and resupply; b) Ensuring that the curriculum is pedagogically sound, re!evant and implernentable in all basic schools; cJ Designing and irnplementing a cost-effective textbook production and distributiorn sysrem that will ensure universal coveragc of texts in all subjects and tra.ides for every student: ANNEX 4 Page 6 of 11 d) Introducing low-cost reacher training and pupil instruction arrangtements u5:ing distance education cechnology. e) Restructuring both pre- and in-service teacher craining and insisting on highc;r standards of teacher cerriiication, including more emphasis on classroom-based experiences; 2. Imoroving mannagemont Fffiienry The overall objective of this component is to improve both the eFficiency and effecEivcnes, oi the Ministry of Educarion (MOE) and the Ghana EducaLion Service (GES) through managerial reform. In order to ensure that new and existing resource invesemcnts are wisely allocated and effectively utilised, activities will be focused on bringing greater discretion, discipline and accountability to schools, thereby increasing reaching effectiveness. The component will also increase the timeliness, accuracy and relevancy of data to be used for monitoring pcrformance at the district and school levels. I here will be targeted interventions to improve instruction and student 2chievement and to achieve a more rational and equitable allocation of resources For inirastrucrure, materials, and personnel. This component will be implemented in three stagces whichi, alrthough conceptually distincr, in practice will overlap. Key elements include: a) Redesigning management srruatures which suit the roles and responsibilities or the MOE and the CES at headquarters, regional and district leve!s and which provide for appropriate delegation on operational maters; b) Improving mechanisms for monitoring performance at the district and school levels and performance standards and targets for all agencies linked to the strategic goals of FCUBE; c) Installing an Education Management Information System (Eh415) to collect, analyse, process and report educational data for planning, decision making and mt;nitoring purposes; d) Strengthening personnel management practices which motivate individuals, groups and departments throughout the sysrern towards achieving berrer perrormances; 6 ANNEX 4 Page 7 of 11 e) Upg-ading rinancial management systems developed which improve budgeting and financial control and generate information to support the delegation of budgetary respos ibil;Iy; and r) Staff,ing or-anisation structures at all levels with appropriately trained and qualfied managers and having adequate discretionary budgets in place to ensure that rhe financ.al resources available can make significant impact on the quality of education. 3. Imkrov'rz Accezs and ParcicoPtian The quanrtiative expansion and enhanced participation component will promote wider coverage of basic education services by applying selection criteria for building new schools; replac,ng schools with poor infrastructure; expanding overcrowded schools; rehabilitating school physical infrastructure; providing houses for additional teachers; and by developing alternative delivery mechanisms. Measures to increase demand for basic education will receive special attention. Girls, poor and rural children will be targeted. FCUBE will use a variety of approaches to increase access to schooling by girls and under- represented groups including Infrastructural development and rehabilitation. Options include: the provision of scholarships; incentives for female teachers and teachers in remote areas; a pilot scheme to enable rural communities to hire local teachers; an emphasis on gender equity and sensitivity in materials and in training programmes; and the use of Participatory Learning Appraisal methodologies in selected regions to encourage community involvement in and understanding of the need for schooling. On the supply side, MOE will first examine and rationalise the use of existing resources. The challenge of meeting the increased demand for facilities and services will be tackled from two perspectives: using existing school facilities to maximum effectiveness; and targeting new infrastructure to those places where careful investigation has shown there to be most benefit in providing increased access. Key elements include: a) Strengthening School Management Committees; b) Improving mechanisms for consultation with District Assembly committees on education to ensure the appropriate allocation of funds to basic education, and its deployment in an equitable manner; c) Enhancing the system for stakeholder consultation to provide feedback on progress towards programme goals; d) Operating a school improvement fund which will be directly accessible to schools; and 7 ANNEX4 Page 8 of II e) a social marketing campaign to promote education, including an emphasis on the benefits of girls education. III FINANCING POLICIES The Government will continue to provide at least the same percentage af the discretionary recurrent budget to education sector each year during 1996-2000 as it has provided over the past five years. Within the education sector, allocation to basic education sub-sector will be maintained at the present level, although the distribution between primary and junior secondary levels will changeover time. The Government's FCUBE financing plan is the key reference document for national resource mobilization and its effective use for BE. The plan entails various quantitative "floor level targets' which were summarised in the table below. Actual resources mobilized and spent, as well as the policy targets will be monitored regularly, and possible adjustments willbe discussed at regular review meetings of the financing partners. Implementation of FCUBE, in particular through improving personnel, education performance and financial management, will generate efficiency gains that will result in savings in the budget. An understanding has been reached between the Ministries of Finance and Education that MOE will implement the financial management strategies outlined in its policy document to ensure sound financial practices. This will allow MOE to re-allocate the approved budget within the recurrent and capital/development activities respectively. For the quality of basic education to be assured, the number of teaching staff will need to be increased as enrollments grow. The Government will make every effort to ensure that total number of staff and overall salary expenditure for the Ghana Education Service (GES) staff will be consistent with the FCUBE financing plan and national public sector salary guidelines. The ratio between the number of teachers in schools and GES administrative staff in the system as a whole (including GES staff in administrative posts) is presently 4.8:1. This figure will be monitored so that the overhead cost of adminstration will be reduced by shifting the balance in favor of teachers in the classroom. Provision and maintenance of school facilities are the responsibility of local government. Apart from earmarked external aid support and the nationaly provided District Assembly Common Fund (DACF), resources are mobilized at the district and school levels but are far from adequate. The Government will encourage district authorities to increase the proportion of spending from DACF for basic education steadily not only to the present guideline figure of 10% but even beyond. Levies collected at the district and school levels must accord with the MOE guidelines. The Government will undertake to delegate progressively financial management discretion to designated districts having viable education plans and administrative systems, and will consider compensatory measures 8 ANNEX 4 Page 9 of 11 where districts still face financial problems even after making an adequate fiscal effort. The Government maintains its policy that tuition for basic education is free for children and parents/guardians. However, for the attainment of FCUBE objectives, and for securing a heightened commitment and sense of community ownership of schools, it is necessary that beneficlaries of basic education services continue to contribute to direct and indirect costs other than tuition. As part of the FCUBE objectives, target enrolments in private schools will increase from the present 10.7% for the primary level to 14% by 2000 and 16% by 2005, and from 3.0% for the junior secondary level to 6.6% by 2000 and 16% by 2005. For the time being, Government will continue the present policy of providing the textbooks and some teachers to private schools. Meanwhile, there will be a study on appropriate measures to subsidise the private sector, considering the implementation for financial sustalnability of the education system as a whole. Basic Education Sector Performance Monitoring indicators Phase 1: 1996-2000 miditerm Dec. 2000 _(ul. 1998) Financial Commirmient and Sus-tainiability Share of MOE/COG budget 38.8% (min.) 38.8% (rnin.) Share of gasic Educ. (BE)/MOE budget 65% 65% Annual real increase in BE non-salary spending 10% 10% Annual growth rate of average GES staff salary 2% (max.) 2% (max.) A.vcraSe per pupil MOE spending by district t.b.m. r.b.m. Average district spending from DACF on basic educ. 10.5% 15 0% Enhanced Quality of Teaching and Learning Student Achievernent (CRT) t.b.m. r.b.m. Teacher absenteeism (year-on-year improvement) t.b.rn. r.b.m. Pupil/texrbook ratio, core subjecrs. Primary & JS 2:1 .:1 PupiVteacher ratio, P&IS P- 29.7 P:3 1.5 JS:24.8 JS:26.1 Management for Efficiency Number of teachers in public schools2, P&JS P. 75177 P: 802 18 JS:32358 15 33206 Number of administrative staff as % of above r,b.1ri. r.b.m. Niumber of SMC established (1% of t of schools; 40% 70% N umber of DEOC establtshcd l% of ^ oi dis;rics) 60 1 O0-". .Number oidistricrs with financial authoriry t.b rrm. r.b.n ANNEX 4 Page 10 of 11 Improving Access and Pas-icipa:ion C;oss Enrollment Ratio (public plus private) P. 7/.8% P: 82.6% JS 66.6 1% IS 67 5% Pidlic enrollment P.2213000 P 252.'40C JS.50 1 200 IS.a6580C R-rvate enrollment P: 298000 P: 337200 )5:99200 Js: 1 11000 Girls' share in the total enrollment r.b.rn. t.b.m Primary I intake rate (public plus private) 87.4°a% 9g4.0% 8b1 repetition (public) 4.0C. 3.2 BE1 dropour (public) 3.6% 2.9% BE6 repetition (public) LB% 1.5% BE6-7 progression (pubiic) 95.9% 96 7% Basic education complecion rates (BE 1-6 and 7-9) t.b.m. t.b.m. t b.rn. to be monitored. 7/ A sumin,g 5 % anr.ual increase in real terms in recurrenr budge!. 7/ Numbers of teacners are s5 taking into accoint tlhe targer enrollmenis and pupil teac.er raIjo IV. COLLABORATION AND COMMITMENT To be successful, (he effort will depend heavily upon collaboration among a number of agencies and groups. Fundamentally, BE is, and must be, a locally supporred activity. District officials, school heads, teachers, parents and students will share the largest burden for the successful implem.entation of this effort and they will enjoy the grealest benefits. fineo- 1 QA7 rhn rnivornmPnt Kha rir ivad ;%nrnrirnqPtly tJ1;$4nrl million in sdiiratlnn loans, grants and sector credits from international funding agencies. Annualised. funding agency contributions has constituted 9 percent of the overall educaTion budget and 1 5 percent of basic education expenditures. The Government has received assurances thar the following lendingfdonor agencies are prepared to support. both fiscally and technically, the implementation of FCUBE: WorIc Bank (IDA), African Development Bank, UNICEF. LISAID. ODA (UK). GTZ/ KfW, EU anc JICA. The contribution of both local and international NGOs, who5e positive roles in social rnobilisation are we!l acknowledged, will also enhance the achievement o; the FCUBE goals. A joinT MOE-donor forum was set up in 1994 To farililate preparation of a sub-sec.or investment programrne in support of achieving frete. cornpulsory and universal basic education within a ten-year timc frame. The strategic framework and the components or the key -oai areas incorporated in the FCUBF Programme document and che Operationa' Rolling Plan are the outcornes of inlensive analy4is r.-rried out by the joinr forum. Ir has 'u ANNEX 4 Page 11 of 11 been agreed among MOE and funding agencies that FCUBE will: cover the etntil-C pnmnary and junior secondary sub-sectors including all on-going and planned additional activitics; be implcinented within the agreed strategic frameworkc; and be used bv MOE to co-ordinatc all donor support which- must be dcployed withlin the parameters or tlw programme framework and tle rolling plan. In the final analysis, the succCss of this iniLiative will be a function of the willingness and ability of diverse groups to w,ork together to mobilise resources, refine policies. plan rationally and efficiently, implement effectively and evaluate with rigour and insight. All of thesc skills are necessary goals wc have set. The Government is confident that Avithl collaboration and commitment from our partners in this Programmiie, the benefits FCUBE will be rcalised progrcssively over the next decade. Yours, sincere N KWAME PEP MINISTER I I ANNEX 5-1 Page I of I REPUBLIC OF GHANA BASIC EDUCATION SECTOR IMPROVEMENT PROGRAM Program Performance Monitoring Indicators Phase 1: 1996-2000 Base Year Midterm Dec. 2000 (most recent) (Jul. 1998) Financial Commitment and Sustainability" Share of MOE/GOG budget 38.5% (1995) 38.8% (min.) 38.8% (min.) Share of Basic Educ. (BE)/MOE budget 64.5% (1995) 65% 65% Annual real increase in BE non-salary spending 10% 10% Annual growth rate of average GES staff salary 2% (max.) 2% (max.) Average per pupil MOE spending by district t.b.m. t.b.m. Average district spending from District Assembly 7.3% (1994) 10.5% 15.0% Common Fund on basic educ. Enhanced Quality of Teaching and Learning Student Achievement (Criterion Rererenced Test) t.b.m. t.b.m. Teacher absenteeism (year-on-year improvement) t.b.m. t.b.m. Pupil/textbook ratio, core subjects 2:1 2:1 Pupil/teacher ratio, Primary &Junior Secondary P: 30.7 (1994) P: 29.7 P:31.5 JS:21.6 (1994) JS:24.8 JS:26.1 Management for Efficiency Number of teachers in public schools/2, P&JS P: 62608 (1994) P: 75177 P: 80218 JS:30580 (1994) JS:32358 JS:33206 Number of administrative staff as % of above t.b.m. t.b.m. Number of School Management Committee 40% 70% established (% of # of schools) Number of District Education Oversight Committee 60% 100% established (% of 4 of districts) Number of districts with financial authority t.b.m. t.b.m. Improving Access and Participation Gross Enrollment Ratio (public plus private) P: 76.0% (1994) P: 77.8% P: 82.6% JS: 58.7% (1994) JS: 66.6% JS: 67.5% Public enrollment P: 1920803 (1994) P:2233000 P: 2524400 JS: 659853 (1994) JS:801200 JS:865800 Private enrollment P: 233843 (1994) P:298000 P:357200 JS:30707(1994) JS:99200 JS: 111000 Girls' share in the total enrollment P: 46.8% (1994) t.b.m. t.b.m. JS: 43.1% (1994) Primary I intake rate (public plus private) 82.5% (1994) 87.4% 94.0% Basic Education grade I (BE I) repetition (public) 5.5% (1994) 4.0% 3.2% BEI dropout (public) 4.9% (1994) 3.6% 2.9% BE6 repetition (public) 2.5% (1994) 1.8% 1.5% BE6-7 progression (public) 94.5% (1994) 95.9% 96.7% Basic education completion rates (BEI-6 and 7-9) BE1-6: 75.4% (1994) t.b.m. t.b.m. BE7-9:82.4% (1994) t.b.m. : to be monitored. 1/ Assuming 5% annual increase in real terms in recurrent budget. 2/ Numbers of teachers are set taking into account the target enrollments and pupil teacher ratios. GHANA fCUBE PROGRAM: FIRST PHASE (1996-2000) SUMMARY IMPLEMENTATION PLAN SAR Annex 5-2 Page 1 4/24/96 COMPONENT ACTIVITY Q1/96 Q2196 Q3196 04/96 Q1/97 02197 Q3/97 Q4/97 Q1/98 Q2198 Q3198 Q4198 1999 2000 1. ENHANCED QUALITY OF TEACHINGILEARNING ___ A In-Service A1 Headteachers' Training _ _ ~~~*** *** *** *** *** *** *** *** *** *****t ***** A In-Service Al Headteachers' Training ___- **fI Training of A2 Teachers' Training **** ***** * * * ** __ ** Education A3 Training of DDEs and CSs ** ******* ******* ******* ********************** ******* ****** ******* Personnel A4 DistricVCommunity Leaders ***** ****** ******* ****** ****** ****** ******* ****** ***** ****** ****** ****** **** A5 MOE/GES Planning/Mgmt (Includ ed in Component 2) . _ A6 Needs Assessment A7 Distance Learning Study A8 Impact Evaluation _ * ** B Pre-Service B1 TTC Study ***** _ Teachers' B2 Strengthen UCEW and UCC **** _ _ Training B3 Rehabilitation of Selected TTCs ******* ******* ******* B4 Redesign Pre-Service Programs B5 Training TTC Tutors ************** ******* ******* ******* ******* ******* ******* _______________ B6 Study of Altemative Delivery __ __ _ B7 Impact Evaluation __ ** C Assessment/ Cl Revise CRT to Reflect New Curr. _ ** __ . Evaluabon of C2 Develop/Prepare Test Material ** ** ** ** Student C3 Test Administrabon ** ** ** Performance C4 Analysis/Report Disseminabon -*** _ *** ** D Provision_of Dl Reprint Existing Textbooks _* * ******* ******* __ Instructional D2 Distribute Reprints to Schools ** ******* ******* ** Materials D3 Procure New Textbooks = __________ D4 Distribute New Textbooks to Sch D5 Procure/Distribute Sch Supplies D6 Procure/Dist Library Books ******* ******* **** ** D7 Storage Facilities in Schools ******* ******* ******* ******* -********** ** ** E Curriculum El Curriculum Review Review and E2 Gender Review (TA) Development E3 Syllabus Writing E4 Write/Trial Textbooks ****** ****** ______ * E5 Strengthen CRDD ***** *** I~__ GHANA fCUBE PROGRAM: FIRST PHASE (1996-2000) SUMMARY IMPLEMENTATION PLAN SAR Annex 5-2 Page 2 4/24/96 COMPONENT ACTIVITY 01/96 Q2/96 Q3/96 Q4196 Q1/97 Q2197 Q3/97 Q4197 01/98 Q2/98 Q3/98 04/98111999 2000 2. MANAGEMENT FOR EFFICIENCY A Institutional/ Al Organization Analysis/Design ************** _ _ Organizational A2 MOE/GES-DA Relations ******************** _ _ _ Analysis & A3 Personnel AudiVManpower Plan ************** Change A4 Reform Mgt. Unit Training A5 Selection/Training of Snr. Mgrs A6 Change Mgt Workshops ***. **** A7 School Mgt. Committees _****** ******* ******* ******* ******* ******* A8 Mgt/Supervisory Training ******* ******* ******* ******* ******* ******* A9 Implementation Review ** ** ** ** ** ** ** ** B Staffing & _ B1 Job Description Preparation= = ***** Personnel Mgt B2 Personnel Operations B3 AppoinVRedeploy Mgrs/Staff/HT ************** ******* B4 Redeploy Teachers ******* ******* ******* ******* B5 Job Grading & Pay Structures ********__ *** B6 Motivation/lIncentive Schemes B7 Personnel Policies/Procedures ************** B8 Mgt/Personnel Staff Training =***** C Performance Cl Information Management Review Management C2 Monitoring & Control System ************** C3 EMIS Design C4 Performance Appraisal System C5 Procure/Install Hardware/Software C6 Mgt/Systems Staff Training D Budgeting Dl Resource Allocaton Formula & Financial D2 Accounting Systems Review Management D3 PUFMARP Relabonship ************** D4 Accountng Systems Design D5 Manuals/Financial Directives D6 Procure/Install Hardware/Software D7 MgVAccounts Staff Training ******* ******* E District El DA Capacity Review ********************. Capacity E2 GES TA to District Assemblies =__ ___ ____ o1 Building E3 Performance Monitoring ******* ******* GHANA fCUBE PROGRAM: FIRST PHASE (1996-2000) SUMMARY IMPLEMENTATION PLAN SAR Annex 5-2 Page 3 4/24196 COMPONENT ACTIVITY Q1/96 Q2/96 Q3196 Q4196 Q1/97 Q2197 Q3/97 Q4/97 Q1/98 Q2/98 Q3198 Q4/98 1999 2000 3. IMPROVING ACCESS AND PARTICIPATION A Infrastructure Al Review Selection Criteria * *** ** ** DevelopmentV A2 Selecton/Field Verification ************ ******* ******* ** Maintenance A3 Issue Maintenance Policy A4 Design/Bidding/Contract ******* ******* *** *** *, A5 Construebon ******* ******* ******* ******* ******* ******* ******* ****** ******* A6 Monitoring & Evaluation ******* ******* ******* ******* ****** ******* ******* B Increasing Girls' B1 Pilot PLA Study of Districts ********* ******* = Participation B2 Review Selection Criteria B3 Develop Targeted Imp Plan . * **** _ B4 Implementation ***** *** * B5 Monitoring & Evaluation ******* ******* ******* ********* ******* ****** **** 86 Study of Scholarship Schemes _*** ______________ B7 Adaptabon of STME to Basic _*__ C Schooling Cl Pilot Phase *** ******* Improvement C2 Evaluabon of Pilot Fund (SIF) C3 Selection Criteria: 2nd Phase ** C4 Implementabon: 2nd Phase ***** ******* C5 Monitoring/Evaluation: 2nd Phase ********************* C6 Selection Criteria: 3rd Phase __ C7 Implementabon: 3rd Phase ***** ************* C8 Monitoring and Evaluation ****** ****** DIEC Dl Design IEC Strategy and Plan. ******************* = t D2 Develop Materials and Testing ******* ******* *** **** ** ** D3 Dissemination of Messages ******* ******* ******* ******* ******* ******* ****** D4 Build Institubonal Capacity ************** ******* ******* ******* ******* ******* ******* ******* ****** ****** D5 Impact Evaluaton **** ** **** ** | * * 0 I ANNEX 5-3 GHANA BASIC EDUCATION SECTOR IMPROVEMENT CREDIT Key Areas of Technical Assistance 1. Technical assistance will be necessary to help design and implement the Betterment Activities under the Government's FCUBE program. These include: * redesign of pre-service teachers' training programs; * assessment and review of in-service training programs; * development of tests to assess and evaluate student performance; * study on sustainable provision of instructional materials; * curriculum review and development; * analysis and design of MOE/GES structure; * manpower planning; * design personnel policies/procedures and motivation strategy; * design and implement EMIS; * design and implement personnel performnance appraisal system; * review and design budgeting and accounting system; * develop strategy and targeted plans to increase girls' participation; * develop, implement and evaluate Schooling Improvement Fund scheme; and * develop strategy and implementation plan for IEC. 2. Local expertise where available will be used to help carry out the activities listed above. In all cases where foreign expertise is considered necessary, it is envisaged that internationally recruited consultants will work with local consulting teams and MOE staff to ensure technology transfer. Training will be provided as part of the technical assistance to MOE/GES staff and district education personnel to ensure effective implementation and sustainable operation of the systems designed. 3. A large part of the technical assistance listed above are being financed under the ongoing Primary School Development Project (PSDP) and some will be financed by other donor agencies. The terms of reference for these consultancy assignments will be included in the FCUBE Operational Rolling Plan. Terms of reference for technical assistance to be financed under the Basic Education Sector Improvement Credit (BESIC), which is expected to be implemented at a later stage, will be prepared as the FCUBE program develops over the next two years. ANNEX 5-4 Page 1 of 2 REPUBLIC OF GHANA BASIC EDUCATION SECTOR IMPROVEMENT PROGRAM Supervision Plan Supervision of implementation will be conducted (i) under the direction of the Program Coordinator (MOE/GES) reporting to the IOC; and (ii) by the World Bank Task Management Team, in collaboration with GOG and other funding partners. I. Routine MOE/GES supervision will include initial review: (a) prior to forwarding to IDA for "no objection" of: i. Procurement documents ii. Disbursement requests iii. Special accounts expenditures/reimbursements and statements of expenses (SOEs) (b) monthly financial statements (c) arranging for annual audits of project accounts and SOEs II. Periodic MOE/GES supervision will involve: (a) updating the rolling implementation plan (b) preparing progress reports on project implementation (c) monitoring key performance indicators (d) liaising with the World Bank Field Office and IDA supervision missions III. Bank staff will spend an estimated 6 staff-weeks per annum on average at headquarters and the Resident Mission reviewing and commenting on procurement documents and disbursement requests; and a further 4 staff-weeks per annum over the course of project execution for desk work relating to progress reports and audited accounts (total of 40 s.w. for the life of the Credit). In addition, there will be field supervision (as set out below). Semi-annual reviews of program performance will be undertaken by GOG, IDA and participating donors in January/February and in June/July; the Consultative Panel (CP) Meeting for 1998 will be enhanced to become the MTR. TOR will be prepared jointly by CP members at least two months prior to the review date. The Jan/Feb review will focus mainly on the performance of the preceding year and the Jun/Jul review on finalizing operational plans and financial commitments for the coming year. The MTR will assess physical, institutional and financial progress of the first 2 years of project implementation as measured against agreed targets. Based on the MTR, the program will be adjusted to be consistent with the targets in the light of experience and changing circumstances. ANNEX 5-4 Page 2 of 2 IDA Supervision Input - Through To Mid Term Review Approximate Activity Staffing Staff Date Weeks 10/96 IDA Credit Task Management Team (x3)* 10 Effectiveness Education Specialist Workshop (blending Textbook Specialist into ongoing prog. of Organis. Dev./Managem. Specialist activities) Architect/Implementation Specialist 2/97 Supervision Mission Management Team (x2) 8 Comm. Dev./Participation Specialist Financial Analyst 7/97 Annual Review Task Management Team (x3) 10 (Meeting of Organis. Dev./Managem. Specialist Consultative Panel) Curriculum Specialist Architect/Implementation Spec. Financial Analyst 10/97 Supervision Mission Task Management Team (x3) 5 Financial Analyst 2/98 Supervision Mission Task Management Team (x3) 5 Comm. Dev./Participation Specialist 7/98 Mid-Term Review Task Management Team (x3) 12 (Meeting of Disbursement Officer Consultative Panel) Procurement Specialist Education Specialist Organis. Dev./Management Spec. Comm. Dev./Participation Specialist Architect/Implementation Spec. Notes: 1. All missions/reviews will be coordinated with similar activities by other externalfunding agencies 2. (*) Task Management Team includes Educational, Financial Analysis and Implementation expertise (Team composition will depend on the TOR for a particular mission) 3. Field Supervision through to: MTR = 50 s.w.; End of Credit = 80 s.w. ANNEX 5-5 Par!e 1 of 2 REPUBLIC OF GHANA BASIC EDUCATION SECTOR IMPROVEMENT CREDIT PROCUREMENT AND DISBURSEMENT SCHEDULES 1. Procurement Implementation Schedule Estimated Annual Contratual and Other Payments (USS million equiv.) N.v ; 225- - E o ......r. . t . . Credit Timing Signing x Effectiveness x Closing x Activities by Category 1. civil Works 0.03 1.61 3.29 4.85 2.92 12.70 ICBANCB Selection Criteria xx x x x x Prequal/Bid/Award xx) x x x x Construction xxxxxxx xxxxxox xxxxx xxxx 2. Goods 1.11 5.13 1.10 1.23 61.00 9.17 2.1 Roofing sheets 0.31 0.62 0.80 0.98 0.50 3.20 ICBnNCB Bid/Award x x x Delivery xx xx xx xx x 2.2 Instructional materials 0.77 4.36 0.07 0.01 0.00 5.22 ICBANCB/Other Bid/Award xxx xx xx Delivery xx xxxxxxx xx x 2.3 Vehicles/Equipment 0.03 0.14 0.23 0.23 0.12 0.75 ICBlOther Bid/Award xx xx xx Delivery xx xxx xx xx xx 3. Training 0.71 2.78 3.97 3.16 1.72 12.33 Other 3.1 Overseas training 0.00 0.30 0.20 0.10 0.10 0.70 Other Implementation xoxx xx xx x 3.2 Local training/workshops 0.71 2.48 3.77 3.06 1.62 11.63 Other Implementation xxooxxxx xxxxox xxxxxxx xxxxxxx xxxx 4. Consultancies 0.21 0.47 0.69 0.55 0.25 2.18 Other Bid/Award x xx xx xx xx Implementation xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxx 5. Operating Costs 0.48 0.77 1.40 1.20 0.36 4.23 Other 5.1 Personnel redeployment 0.26 0.65 1.04 0.65 2.60 Implementation xxxxxxx xxxxx xxxxxxx xxxxoxx xx 5.2 Field visits(mon/eval) 0.22 0.12 0.36 0.55 0.36 1.61 Implementation xxxxoxx xxxxxx xxxxxxx xxxxxxx xxxxx 6. Unallocated 0.00 0.91 2.78 3.78 1.91 9.40 Other Implementation xxxxox xxxxxx xxxxxxx xxxxxxx Total BESIC-financed 2.50 11.70 13.30 14.80 7.80 50.00 DISBBE.XLS Disbursement Profile Disbursements Profile Regional IDA Fiscal Sector Years and By Semester Cumulative Project Profile Semesters (US$ Million) (US$ Million) 1%) I%) 1997 1 1.25 1.25 2.5% 0.0% 2 1.25 2.5 5.0% 6.0% 50 1998 1 6.0 8.5 17.0% 10.0% 2 5.7 14.2 28.4% 14.0% 40 30 1999 1 6.3 20.5 41.0% 22.0% 30 _______ 2 7.0 27.5 55.0% 26.0% 2000 1 7.0 34.5 69.0% 38.0% " 20 - 2 7.8 42.3 84.6% 48.0% ' 0 2001 1 3.9 46.2 92.4% 58.0% 2 3.8 50.0 100.0% 66.0% 0 a) 0 2002 1 74.0% a a t 0 0 0 0 2 86.0% _ _ _N .. 2003 1 90.0% Fiscal Years 2 94.0% 2004 1 98.0% -l-Project Profile -M-Regional Profile 2 100.0% a:disb.xdx (rk5) U,J O l a te1 Page 1 ANNEX 6 Page 1 of 4 NMI9ISTRY OF EDUCATION BASIC EDUCATION SECTOR PJPROVEiMTENT PROGRAMN2E DISTRICT EDUCATION OVERSIGHT COMMITTEE ESTABLISIZIENT AGREEMENT This Agreement made this ................. day of ... One Thousand, Nine Hundred and Ninety Six (1996) between the Ministry of Education, Accra Ghana and the ...................... District Authority represented jointly by the District Chief Executive, the Presiding Member of the District Assembly and the District Director of Education. Whereas the Government of Ghana has entered into an agreement with the International Development Association (IDA) and other Donors to extend C'redits to support its Basic Education Sector Improvement Pro,gramme (BESIP) to en:able her fulfil her constitutional obligation of providing Free Compulsory Universal Basic Education for all Ghanaian children of school going-age by the year 2005. Whereas Section 9, sub-section 2 of The Ghana Education Service Act 1994 provides for the appointment in every district of a District Education Oversight Committee, by the Ghana Education Service Council. Whereas the functions of the said District Education Oversight Committee, as specified in Sub-section 3 of Section 9 of the GES Act 1994, shall be concerned with the oversight of: 1. Conditions of school buildings and other infrastructual requirements of the schools T.lt provisions of teachers aiiu in cegular and punctual attendance of teachers and pupils at the schools 3. Thc proper performance of duties by staff at the schools 4. The moral behaviour of staff of the schools towards pupils 5. Complaints relating to or from teachers and pupils ANN?RX 6 Page 2 of 4 6. The environmental cleanliness of schools and facilities therein; and 7. The supply of textbooks and other teaching and learning materials, Whereas the Central Government has decided to transfer into the District Assemblies Common Fund part of its annual budgetary allocation for development expenditure on Education, to be used at the district level exclusively for educational projects. Now the Ministry of Education and the .District Authority agree as follows: i) The District Authority shall ensure that a District Education Oversight Committee, as specified in Section 9, subsections 2 and 3 of the Ghana Education Service Act, 1994, is established and given the means to perform effectively the functions assigned to it by law, by March 1996. ii) The District Authority shall ensure that funds sent to the district for educational projects and programmes are used exclusively for the purpose for which the funds were released. iii) The District Authority shall ensure, in collaboration with the District Assembly, that existing laws on Compulsory Basic Education are enforced in the district. iv) In support of (iii) above, the District Authority shall organise annual in the months of August, September campaigns for enrolment in BSI and ensure that particular attention is given to increasing female participation in BasicTPducation. v) The District Authority shall ensure that scholarship schemes instituted by the District either for academic excellence or to assist pupils students from poor homes are so designed as to ensure gender parity among the beneficiaries. iiv) The Ministry of Education shall monitor closely the performance of the District Education Oversight Committee and shall provide the committee with a double cabin pickup as incentive to intensify its monitoring activities, when the Ministry is satisfied that the Committee has been performing its functions satisfactorily consistent improvement in the CTR results of P6 pupils in the District over 3 ANNEX 6 Page 3 of 4 consecutive years shall be the measure for performance. In witness whereof the parties hereto have hereunto set our hands and day and year first written herein *.... .... ............................. For and on behalf of the Ministry of Education. In the presence of SINAMEt.... :......................... FOR AND ON BEHALF OF THE DISTRICT AUTHORITY 1. NAME: ........................................ SIGNATURE:.................................... DISTRICT CH]EF EXECUTIVE 3 ANNEX 6 Page 4 of 4 2 NAME:. SIGNATURE:.................................... PRESIDING MEMBER 3. NAME: ....................................... SIGNATUREl. .. .. DISTRICT DIRECTOR OF EDUCAIION In the presence of Member of Parliament NAM :................... SIGNATNTRE 4 Proposed FCUBE Organization Structure I Minister Project mplemcntation Management Unit Overview (PMU) Special Assistant Committee Director General FCUBE GES Senior Ghana Education Management Service (GES) Team- FCIUJBIE |Regional Director FCUBri n t o .......................................... .. ................... of Education Coordinator.o dcto Deputy DG, GES l FCUBE Secretariat Administration _- Mapwer ..-- .. M_ npower ..--District Authority .. . ~~~~Assembly Chief Executive _ . | ~~~~~~~District Education| . | ~~~Oversight l | Academic i Trnng I| Cornmittee |Dstrc Dire ctor of| Training Education School Management Committee Note: Blank boxes represent other functional units at this level. ANNEX 8 Management Roles and Relationships PROPOSED MANAGEMENT ROLES, RELATIONSHIPS BETWEEN KEY BODIES AND PRIORITIES FOR INSTITUTIONAL STRENGTHENING A. ROLES MOE (a) formulating educational policies, determining sectoral resource allocation an approving operational objectives for implementation; (b) organizing educational management information system; (c) monitoring and evaluating the performance of the education system GES National (a) setting out financial regulations; (b) providing support for district budgeting and determining allocation of financial resource allocation to districts; (c) formulation of standards and norms as well as discipline of the educational service; (d) developing curricula and syllabi, purchasing and distributing textbooks; (e) managing technical/vocational education; (f) managing external training. GES Regional (a) providing advice and training for district offices (b) monitoring and evaluating district offices GES District (a) staff recruitment, development and discipline (b) data collection and analysis (c) preparation and execution of budgets (d) distribution and monitoring of educational materials to schools (e) academic and pedagogical advice to teachers (f) opening of new BS1-6 schools (g) supervision of schools and assessment of pupil/teacher performance (h) ensuring information is transmitted between community and district office B. RELATIONSEIPS MOE-GES With establishment of Council MOE to have performance agreement with GES specifying service to be provided. MOE will monitor and evaluate on this basis. GES National - District Managerial and supervisory GES Regional - District Coordination to ensure district plans are prepared and implemented Monitoring Supporting service (collegial relationship) ANNEX 8 Management Roles and Relationships DEO-District Assembly Coordination on infrastructure plans and recurrent/capital budget preparation DA supervises and DDE provides information as advisor to DA District Education Offices-Schools Managerial, supervisory, coordinating, monitoring, evaluating, advisory and schools District Education Oversight Committees-School Management Committees Supervisory and advisory DEOCs support operation of SMCs C. FUNCTIONS TO BE STRENGTHENED (Highest priorities in order) MOE 1 . Information analysis and processing 2. Policy formulation 3. Priority setting GES National & Regional 1. Development, selection, purchasing and distribution of materials, equipment and textbooks 2. Developing manpower plans/developing staffing standards or norms 3. Monitoring and coordinating GES District 1. Inspection, supervision and discipline 2. Staff recruitment, development, in-service teacher training 3. Financial management ANNEX 9 REPUBLIC OF GHANA BASIC EDUCATION SECTOR IMPROVEMENT PROGRAM List of Key Source Documents in Project Files Ministry of Education I. (Draft) Operational Plan: fCUBE Program, February 1996. 2. The Program for Free Compulsory and Universal Basic Education (fCUBE) by the Year 2005, February 1996. 3. Basic Education Sector Assessment School Review: Curriculum, Instruction and Teachers- Report on Teacher Training Colleges, June 1995. 4. Enrollment Projections for FCUBE, September 1995. 5. Quality Assurance and School-level Management: A Review of Education Management System in Ghana (draft). MOE/USAID (Nana Asare-Bediako, et al). June 1995. 6. A Tale of Two Ghanas: The View from the Classroom (draft). MOE/USAID, June, 1995. 7. Ghana Education Service Bill, April 28, 1995. 8. Program for the Provision of Free, Compulsory and Universal Basic Education by the Year 2005, December 1994. (A document presented to the Parliament) 9. Report on National Seminar on Girl's Education. June 1995 10. Report of Recommendations of the Curriculum Review Committee. CRDD, June 1994. 11. Towards Learning for All: Basic Education in Ghana to the Year 2000. April 1994. 12. PSDP: Report of the Ghana Education Service for the Mid-Term Review, October 1995. 13. Primary School Development Project: External Evaluation of Project Performance. November 18, 1995 Other GOG documents: 1. CSPIP Diagnostic Workshop at Ministry of Education, October 1995. 2. Ghana-Vision 2020: The First Step: 1996-2000. January 1995. 3. Rural Communities in Ghana. Ghana Statistical Service. October 1993. 4. Public Expenditure Review 1994. Ministry of Finance, May 1995. 5. Report of the Education Reforms Review Committee on Pre-tertiary Education, October 1995. World Bank documents: I. Ghana Poverty Past, Present and Future. June 29, 1995. 2. Performance Indicators in Bank-Financed Education Operations: Second Edition. HDD. November 1995. 3. Ghana Participatory Poverty Assessment: Synthesis Report (round 1 &2) Norton, A. et al. December 1994. 4. The Economics of School Quality Investments in Developing Countries: An Empirical Study of Ghana. P. Glewwe, 1994. 5. Investing in all the people: Educating women in developing countries. Washington, D.C.: EDI (L. Summers) 1994. 6. Economic Evaluation of Education Projects: Selected Methods (a Working Draft) HDD (Jee- Peng Tan). October 1995. 7. Africa Region Draft Guidelines for Economic Analysis of Projects. AFRSA, September 27, 1995. 8. A Review of the Quality of Economic Analysis in Staff Appraisal Reports for Projects Approved in 1993. OED, May 5, 1995 ANNEX 9 9. A Program to Estimate the Rate of Return to Investment in Education. HCDVP, February, 1996. Other Documents 1. Proposal for a Detailed Systems Study of the Performance of the Existing Educational Management Information System. Oct. 1995. 2. DAE with GES/Unicef. A Study of Teacher Motivation and Conditions of Services for Teachers in Ghana. March, 1995. 3. Budgeting and Expenditures in the Education Sector in Ghana. European Union (by Perran Penrose). December 1995 4. Extended Poverty Study (PPA3): Access and Utilization of Basic Social Services by the Poor in Ghana. Unicef (by David Korboe), January 1995. 5. Strengthening Information Management Capacity- Ministry of Education, Ghana. USAID (by Simon Ju). October 1994. 6. Returns to Investment in Education: A Global Update. World Development, vol.22 no.9 pp.1325-1343. Psacharopoulos, G. 1994. 7. The Education Finance Simulation Model. (2nd ed.) Zymelman, 1988. MAP SECTION IBRD 28045 BURKINA FASO ul. ,g2 ozii -rals g \%F~~~~~;;n . 9 lt~~~~~PPER f okp,od-.lGHN EAST ~~~GHANA WX UPPERS- L-enp . N ' \ '\ BASIC EDUCATION SECTOR ? \ oY.lo N..i. 6'oo -% ( IMPROVEMENT PROGRAM WIA BIKSg .~ - WA \-Bulenoo . F O etshig PRIPMARY ROADS SECONDARY ROADS . J NORTHERN / S ipl OUX p TERTIARY ROADS a Doboyo o ,,gTAMALE RAILWAYS Zabsug> 1 ® REGION HEADQUARTERS -/oChorch. Domon .... 'N/ bC mbulgu * NATIONAL CAPITAL Ru t l l l |~~~~~~~~~~~~~~~~~~~aI~ co C, 06-7-'U ,* -. I AHN u, Jtr- t | YUt#AS f B jaye < ~~~~~~EOUTOGOL~C t ::, ~~~~~~~~~~~~~~~~~~~~~~~~~~~~iyr ..wkwt su3 OrM i' 7 It' a- noI.V)T > 5ewl X b g 7 KO~~~~~~~~~~ ~~FORIDU7 R Encho . U kCENTRAL PIt ACCP Sr _ J,wi .,>\-i --_ N,GERs / -o _(kSEKOSEKNDIGU U N May 1996 IMAGING Report No: 15570 GH Type: SAR