Transcript Slide 1

Public
Financing of
Education in
Mongolia
Equity and
Efficiency
Implications
M. Caridad Araujo and
Katie Nesmith
The World Bank
Outline of presentation
Motivation
Education financing in Mongolia in
context
Components of the report
Summary of findings
Recommendations
Motivation
Document how resources are allocated
across and within schools
Understand the institutional framework
for school financing and how the sector
has been affected by recent reforms
Analyze teacher salaries and current
incentive schemes for teachers
Motivation (2)
Identify the factors that may help
reduce the observed disparities in
educational outcomes
For the first time, collect information
by surveying teachers, students,
principals, accountants, parents, and
aimags to empirically documents schools'
needs, characteristics, and resources.
Education Financing in Mongolia
in Context
2003 Public Sector Finance and Management
Law re-centralized public finance and aimed to
improve efficiency and transparency.
Funding formula has been used since 1998 for
variable cost component of school budget.
Many school authorities and policy practitioners are
not satisfied with current funding formula.
To compensate schools with small enrollments,
micro-coefficients were introduced into
funding formula in 2004.
.
Components of the report
Overview of education sector in Mongolia
Design and implementation of school
funding
The stages and actors of the school budget
process
Variation in teachers’ salaries and their
components across rural and urban schools
Data collected
Quantitative and qualitative data
came from the 2005 Public
Expenditure Tracking Survey (PETS)
Central level data-MoF and MECS
Provincial level data-MECS ECD officers
and MOF treasury officers
School level data-118 schools
Principal Findings : School financing
1) Small, rural schools
have significantly
higher per-student
spending than their
larger and more urban
counterparts.
180
160
140
120
Variable
Fixed
Total
100
80
60
40
20
0
Rural
Urban
Small
Large
Principal Findings : School financing (2)
2) Provincial reallocations (microcoefficients) correct some of the
imbalances in resource allocation, but
create inequities across regions.
Simulations in report suggest national
micro-coefficients could be more
equitable solution
Principal Findings : School financing (3)
3) The funding formula for school financing is
not used by schools in Ulaanbaatar (UB).
UB schools submit budgets based on past
expenses, without information on enrollment
numbers.
Principal findings: Budget Process
1) Education financing was re-centralized in
2002 with Public Sector Finance and
Management Law (PSFM), but reform has
not happened in UB.
2) An analysis of school budgets in Western
region documents discrepancy between
what is reported at school and aimag
level.
Principal Findings: Teacher salaries
1) Urban teachers appear to earn more than
rural teachers, but they also have higher
costs of living and work more hours.
Potential implications for attracting
teachers to rural areas.
Principal Findings: Teacher salaries (2)
2) Decisions regarding teacher bonuses and
deductions are made at the school-level
and often do not reflect outcome-based
contracts.
Reporting of deductions at school and
aimag level would help improve
transparency
Principal Findings: Teacher salaries (3)
3) A large number of teachers are engaged
in income generating after-school
activities and receive non-monetary
benefits from the school.
Differences among teachers by
type of school
Rural
Urban
Years of education
More
Years of experience
More
Hours of work
More
Absences/school
closings
More
Receive nonMore
monetary benefits
Salary +
Supplements
Receive performance
bonus
More
More
Recommendations
1) Efficiency in School Spending
Encourage more efficient use of
human resources
Multiple-subject teachers
Multi-grade classroom
Recommendations (cont.)
Funding formula should be modified
to provide incentives for schools to
make savings on fixed costs
Recommendations (cont.)
Schools should have autonomy to
generate their own income to offset
any gaps from government funding.
Recommendations (cont.)
Performance bonuses for teachers
should target behaviors that
teachers can control and that the
school administration can monitor
Consider reducing the number of
salary supplements and increasing the
base salary for teachers.
Recommendations (cont.)
2) Enhancing equity
Micro-coefficients should be applied
at the national level, rather than the
provincial level.
School funding formula and financing
reforms should be uniformly enforced
in all provinces and Ulaanbaatar.
Recommendations (cont.)
Financial management training should
be provided for provincial and school
level budget officers
Teacher promotion procedures should
be adapted to provide equal
opportunity for rural teachers.
Recommendations (cont.)
3) Promoting Transparency
Deductions from teachers salaries and
salary supplements should be made at the
school, provincial and central level.
Encourage schools to develop strategy for
sharing school budget information with
parents and the community.
Public
Financing of
Education in
Mongolia
Equity and
Efficiency
Implications
M. Caridad Araujo and
Katie Nesmith
The World Bank