Commentary

World Bank Touts Public-Private Partnerships in Education

I’d like to belatedly recommend a useful report released by the World Bank in April decribing how public-private partnerships are being used around the world to develop school facilities and education programs and boost education access, equity, and student learning. From the press release:

According to the new report�The Role and Impact of Public-Private Partnerships in Education�these public-private partnerships (PPPs) are being used progressively more to boost education access, equity, and student learning.

“Governments in both developed and developing countries are seeking to leverage the capacity and expertise of the private sector in education and forge these public/private partnerships that make education spending go further, especially during these times of economic crisis,” says Beth King, the World Bank’s Director for Education. “In some OECD countries, more than 20 percent of public expenditures are now being transferred to private education institutions, while a number of developing countries also subsidize private schools via teacher salaries and textbooks or per-pupil grants.” […]

The new report specifically examines those public-private partnerships in which developing country governments drive national education policy and provide the subsequent financing, while turning to private sector organizations to deliver education services under contract. Such contracts typically specify the quantity and quality of education services to be delivered, establish an agreed price and term, and feature both performance rewards and non-performance sanctions.

The Role and Impact of Public-Private Partnerships in Education finds that:

  • Publicly funded private schools are providing high-quality, low-cost education. In certain studies, the educational achievements of students in these schools have been higher than those of students in publicly-operated schools.
  • Enrollments in private education institutions has grown enormously over the past 15 years. Between 1991 and 2004, enrollment in private primary schools grew by 58 percent, compared to only 10 percent in public primary schools. Globally, approximately 113 million students are currently enrolled in non-government schools, 51 million of which are studying at the secondary level.
  • More than 90 education public-private partnership programs exist in 50 countries around the world. These programs serve both high- and low-income families OECD countries spend an average of 12 percent of their education budgets on privately managed education institutions.
  • In the Netherlands, all education is publicly financed—including the private schools in which more than two-thirds of all Dutch students are enrolled.
  • Colombia uses a number of different types of public-private education partnerships. Its targeted voucher program, for example, provides places in private secondary schools for more than 100,000 students from poor families. In Bogotá, 25 concession schools are being managed by private operations on 15 year contracts. These public schools have been granted autonomy and a per-pupil payment by the government.
  • In Bangladesh, the Non-Formal Primary Education Program of the Bangladesh Rural Advancement Committee (BRAC) reaches over 1 million poor children. Launched in 1985 with 22 one-room schools; by 2007 it was serving more than 1.5 million children in more than 20,000 preprimary and 32,000 primary schools. Together, these schools account for 11 percent of all primary school children in the country.

There is growing evidence to suggest that contracting the private sector to deliver education has benefits, including greater efficiency, increased choice, and wider access. The latter finding particularly holds for households that have been poorly served by traditional delivery mechanisms. According to report co-author Harry Patrinos, “In general, private management of public schools can be efficient and can yield improved academic performance. Despite being controversial, vouchers have also been found to improve academic outcomes, especially for the poor.”

The full World Bank study is available here. Given the widespread state and local fiscal woes and the growing recognition that public education in the U.S. is failing to keep pace with our peers in the increasingly competitive global economy, there are a number of lessons within the WB report that U.S. school systems could stand to learn from.

For more on the current state of public-private partnerships, charter schools and education reform in the U.S., see the Education and Child Welfare update in Reason Foundation’s Annual Privatization Report 2009.

Reason Foundation’s Education Research and Commentary

Leonard Gilroy is Senior Managing Director of the Pension Integrity Project at Reason Foundation, a nonprofit think tank advancing free minds and free markets. The Pension Integrity Project assists policymakers and other stakeholders in designing, analyzing and implementing public sector pension reforms.

The project aims to promote solvent, sustainable retirement systems that provide retirement security for government workers while reducing taxpayer and pension system exposure to financial risk and reducing long-term costs for employers/taxpayers and employees. The project team provides education, reform policy options, and actuarial analysis for policymakers and stakeholders to help them design reform proposals that are practical and viable.

In 2016 and 2017, Reason's Pension Integrity Project helped design, negotiate and draft pension reforms for the state of Arizona's Public Safety Personnel Retirement System and Corrections Officer Retirement Plan, which both passed with overwhelming bipartisan support in the state legislature and were signed into law by Gov. Doug Ducey.

Gilroy is also the Director of Government Reform at Reason Foundation, researching privatization, public-private partnerships, infrastructure and urban policy issues.

Gilroy has a diversified background in policy research and implementation, with particular emphases on competition, government efficiency, transparency, accountability, and government performance. Gilroy has worked closely with legislators and elected officials in Texas, Arizona, Louisiana, New Jersey, Utah, Virginia, California and several other states and local governments in efforts to design and implement market-based policy approaches, improve government performance, enhance accountability in government programs, and reduce government spending.

In 2010 and 2011, Gilroy served as a gubernatorial appointee to the Arizona Commission on Privatization and Efficiency, and in 2010 he served as an advisor to the New Jersey Privatization Task Force, created by Gov. Chris Christie.

Gilroy is the editor of the widely-read Annual Privatization Report, which examines trends and chronicles the experiences of local, state, and federal governments in bringing competition to public services. Gilroy also edits Reason's Innovators in Action interview series, which profiles public sector innovators in their own words, including former U.S. Transportation Secretary Mary Peters, former Florida Gov. Jeb Bush, former Indiana Gov. Mitch Daniels, former New York City Mayor Rudy Guiliani and more.

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Prior to joining Reason, Gilroy was a senior planner at a Louisiana-based urban planning consulting firm. He also worked as a research assistant at the Virginia Center for Coal and Energy Research at Virginia Tech. Gilroy earned a B.A. and M.A. in Urban and Regional Planning from Virginia Tech.