the challenges of free primary education in -...

Ethiopia has a relatively long and smooth experience with the abolition of school fees compared to other developing countries. Fees were previously used for expenses other than salaries, such as school construction, maintenance, infrastructure and utilities. When fees were abolished at the

primary level, enrolments increased substantially and extra government funding compensated schools.The abolition of school fees was integrated into the Poverty Reduction Strategy Paper, and gradually rolled out across the country. The experience shows the importance of sustainability in planning and implementing policies, as well as the importance of involving local communities and co-ordinating with development partners.

The authorJeilu Oumer is Deputy Dean at the College of Education and Professor at the Department of Educational Planning and Management, Addis Ababa University, Ethiopia.

ISBN: 978-92-803-1326-0

International Institutefor Educational Planning


The challenges of free primary education in Ethiopia

Th

e challen

ges o

f free prim

ary edu

cation

in E

thio

pia

Jeilu O

um

er

Jeilu Oumer

Educational costs and financing


Jeilu OumerCollege of Education, University of Addis Ababa


The views and opinions expressed in this book are those of the authors and do not necessarily represent the views of UNESCO, IIEP or UNICEF. The designations employed and the presentation of material throughout this review do not imply the expression of any opinion whatsoever on the part of UNESCO, IIEP or UNICEF concerning the legal status of any country, territory, city or area or its authorities, or concerning its frontiers or boundaries.

The publication costs of this study have been covered through a grant-in-aid offered by UNESCO and by voluntary contributions made by several Member States of UNESCO, a list of which will be found at the end of the volume.

Published by:

International Institute for Educational Planning (IIEP)7-9 rue Eugène Delacroix, 75116 Paris, [email protected]

Cover design: IIEPTypesetting: Linéale ProductionPrinted in IIEP’s printshopISBN: 978-92-803-1326-0

mailto:[email protected]

http://www.iiep.unesco.org

5

ACKNOWLEDGEMENTS

The following people and institutions have benefi ted this study: the statistician Ato Zewdu G/Kidan from the National Organization, Ministry of Education of Ethiopia; Ato Tizazu Gebre, head of the Department of Planning within the Ministry of Education, for his keen interest in the study; the Regional Education Bureaus of Oromia, SNNPRR and Addis Ababa City Administration; the North Shewa Education Department of the Amahara Region; all sub-city education departments and Woreda education offi ces as well as the schools involved in the study and other organizations that provided data for the study; and individuals who gave information and helped collect data. IIEP’s Igor Kitaev, Programme Specialist co-ordinated this study. Sandra Baxter and Shona Bhattacharyya provided editorial support.


7

TABLE OF CONTENTS

Acknowledgements 5List of abbreviations 9List of tables 10List of graphs and boxes 11Executive Summary 13Introduction 151. Literature review on fee-free primary education in Ethiopia 212. General patterns of fi nancing education in Ethiopia 253. Objectives of the study 314. Methodology 33 Study design and data collection tools 33 Sample 34 Target population 34 Data analysis and data quality 355. Local context, elements for analysis and limitations

of the survey 37 Education fi nance and expenditure strategy 37 Community contribution 49 Administrative and institutional elements 576. The effects of fee-free schooling 63 Gross enrolment rate 64 Girls’ enrolment rate 65 Drop-out rate 68 School fi nances 69 Alternative income-generation schemes 697. Changes in poor children’s access to education and in levels

of government support 71 Quality impact 71


8

Table of contents

8. Conclusions and recommendations 77 Conclusions 77 Recommendations 79References 83Annex 1 87Annex 2 91Annex 3 93


9

LIST OF ABBREVIATIONS

CCT Conditional cash transfer DFID Department for International Development, UK EFA Education for AllESDP Education Sector Development Programme, Ethiopia ETP Education and Training PolicyFTI Fast Track InitiativeGBS Government Budget Support GDP Gross Domestic ProductGER Gross Enrolment RateGPI Gender Parity IndexIMF International Monetary FundJRM Joint Monitoring ReviewKETB Kebele Education and Training BoardMDG Millennium Development GoalNER Net Enrolment RateNGO Non-governmental organizationPBS Protection of Basic ServicesPRSP Poverty Reduction Strategic PaperPSR Pupil-section ratioPTA Parent-teacher associationPTR Pupil-teacher ratioSFAI School Fee Abolition InitiativeSNNPRR Southern Nations, Nationalities and People’s RegionSWAp Sector-Wide ApproachTVET Technical and vocational education and trainingUNESCO United Nations Educational, Scientifi c and Cultural

Organization UNICEF United Nations Children’s Fund UPE Universal primary education


10

LIST OF TABLES

Table 4.1 Study Regions, Woredas/sub-cities and schools 34Table 4.2 Respondents’ characteristics 35Table 5.1 Share of education sector compared to total national

budget and GDP for the last nine years (1997/1998-2005/2006) 39

Table 5.2 Share and cost of primary education projected from ESDP I to ESDP III (birr in millions) 41

Table 5.3 Overview of education fi nancing and primary education enrolments in selected regions from 2001/2002to 2005/2006 43

Table 5.4 The rate of enrolment and fi nancing of the education system 46

Table 5.5 Recurrent budget allocation to some Woredas 48Table 5.6 Community and government contribution to support

schools 52Table 5.7 Forms of community contribution and its uses 56Table 5.8 Supportive environment to implement fee-free

schooling 58Table 5.9 Income generation activities in rating scale 61Table 6.1 Agreement scale on assumed effect of fee-free

schooling 63Table 7.1 Future school priorities 74


11

LIST OF GRAPHS AND BOXES

Graph 5.1 Trends in recurrent and capital costs of primary education 42

Graph 5.2 Trends in primary education cost and enrolment between 1997/1998 and 2005/2006 45

Graph 5.3 Trends in primary school enrolment since 1997/98 and increases in spending on education as a percentage of GDP 47

Graph 5.4 Respondents’ ranking of the importance of non-salary school fi nancial sources 54

Graph 6.1 Trends in gross enrolment rates (GER) for primary education from 1997/1998 – 2005/2006 65

Graph 6.2 Trends in the Gender Parity Index (GPI)from 1997/1998 to 2005/2006 66

Graph 6.3 Drop-out rate in primary education from 1997/1998 to 2004/2005 69

Graph 7.1 Trends in pupil-teacher ratio and pupil-section ratio for primary schools 72

Box 1 Donor contribution to basic services 29


13

EXECUTIVE SUMMARY

Ethiopia has had a relatively smooth experience with the school fees abolition initiative compared to other countries, yet has been little documented in research literature. A key success for the country was the integration of school fee abolition into the Poverty Reduction Strategy Paper (PRSP) in 2002. This planning included collaboration between the Education and Finance Ministries on simulating the fi nancial impact of the additional costs to replace the income from fees, and to cope with increased enrolments using domestic revenue and external funds. Fees were previously used for non-salary expenditure (such as construction, maintenance and school development).

The abolition of school fees for primary schooling was viewed as a positive development overall by various stakeholders, including parents, headmasters and teachers, as it was matched by a compensating increase in public funding for schools. In Ethiopia, the effects of the abolition of school fees were visible because the country had traditionally had low enrolment and wide disparities across and within the regions. As the country is so large and diverse, it is impossible to make generalisations – for example, enrolment rates range from 20 to 90 per cent depending on the region. There was no consistent analysis of ‘net’ effects of the school fees abolition initiative before this survey implemented by the IIEP together with the Ethiopian experts.

Given the high opportunity costs in rural areas, the absence of school fees may not be suffi cient to improve school enrolment in the long run. Apart from tuition fees, various charges are still retained, under the control of the school management committee. The levels of these charges and exemptions vary. Sometimes schools suffered cash-fl ow problems following the abolition of school fees due to the delays in disbursement from upper administrative levels.

The survey obtained original data from selected schools in four diverse regions (Addis, Oromia, Southern and Amhara). A detailed questionnaire was developed for interviews with school principals, parent-teacher association (PTA) members and school management committees. It focuses on issues such as shares of community


14

Executive summary

contributions and other charges, abilities of families to pay, ‘hidden’ and opportunity costs for families, non-cash contributions (such as in kind or labour), effects on enrolment and drop-out rates, the situation of target groups (such as girls, orphans or children from poor households), disparities between rural and urban schools and sustainability.

The government’s funding of primary schools has been increasing in total terms but as a proportion of what is needed, has been decreasing partly due to infl ation rises. All staff should be paid by the government, but the central Ministry of Education has no control over spending made by Woredas. Even fund-raising at the school level (such as through renting space) is not subject to procedures. Support by donor agencies is a large source of primary school funding in Ethiopia.

Cost-sharing (i.e. contributions by communities and parents) still exists in on a large scale, in particular relating to school construction and development. ‘Voluntary contributions’ in cash are allowed. However, due to widespread poverty, the bulk of support comes from contributions in kind and labour. Typical examples are construction materials, maintenance, repairs, furniture, catering and cleaning.

The challenging task is to assess opportunity costs of schooling for families living in poverty (which contribute to persistent low enrolment rates). Child labour is widespread – double shifts are popular so that children can work and study on the same day. Uniforms and stationary are paid by families. There is no provision of schools meals. Teacher qualifi cations are low. Government provision of textbooks does not meet the demands. These barriers to schooling are obvious in rural and suburban areas where most people work in the informal sector or as subsistence farmers. On the other hand, community spirit is a traditional feature of Ethiopia, and orphans and handicapped children are supported by PTA and school management committees. Another striking feature is the collegiality of decision-making about school development – schools get free professional advice and support from seniors and parents.

In spite of many positive effects of the fee-free policy for primary education in Ethiopia, the study observed a number of opportunities that could be strengthened, such as more co-ordination and capacity development, especially at the level of Woredas, taking into account the decentralised context of the country.


15

INTRODUCTION

Education for All (EFA) and the Millennium Development Goals (MDGs) have given developing countries an incentive to attain universal primary education (UPE) through accelerated and scaled strategies. Abolishing school fees is one such strategy, which is seen as a measure to improve enrolment and participation rates. Tuition fees and other private costs of schooling are viewed as a barrier to accessing and completing primary education. They are a burden in countries where poverty forces families and households to choose how many children to send to school, and for how long. School fees tax the poor regressively. They affect enrolment, excluding underprivileged and vulnerable children.

Countries that have taken the bold step to eliminate school fees and other indirect education costs saw an initial surge in enrolments the following year (Lesotho, Mozambique, Ghana, Kenya, Ethiopia, Tanzania, Cameroon, Malawi and Uganda). However, a lack of proper planning and capacity building made abolishing school fees problematic (Kenya and Malawi). South Africa prefers to maintain school fees by exempting the poor fully or partially. Botswana took a bold decision to re-introduce fees at secondary level (in order to spend more funds on primary education), which was a carefully calculated risk.

Although many African countries have decided to abolish school fees, experience has shown that many challenges remain and that there are also consequences and hidden costs. ‘Fee creep’ (the persistence of some kind of fees and other private costs of schooling) remains a worldwide phenomenon, even when countries have offi cially and legally abolished fees. UNICEF and the World Bank launched the School Fee Abolition Initiative (SFAI) in 2005. SFAI aims to support government policies to make primary education free. Firstly it aims to build a knowledge base and network on school fee abolition to facilitate the exchange of lessons learned and to support sound strategies and interventions. Secondly, it aims to use this knowledge and experience to facilitate and provide guidance and support to countries planning and implementing a policy on abolishing school fees. Thirdly, it aims


16

Introduction

to facilitate, promote and advance a global policy dialogue on fi nancial barriers to accessing education and building partnerships to ensure a successful environment.

It is becoming very clear that school fee abolition is not a ‘magic wand’, that the process is very complex, and that there are no ‘quick fi x’ solutions. Abolishing school fees is not just about ‘tuition fees’ (which do not necessarily constitute the main bulk of fees). It must take into consideration a wide range of costs. This means any direct and indirect costs or charges (such as tuition fees, costs of text books, supplies and uniforms, PTA contributions, costs related to sports and other school activities, transportation costs and contributions to teachers’ salaries) as well as opportunity costs (such as money that children could be earning if not in school) and other burdens on poor families. Countries need rigorous context-specifi c cost-benefi t and social analysis on abolition policy options that are feasible and yield results. This means different strategies for different circumstances and for different target groups (a matrix approach).

Secondly, abolishing school fees cannot be seen as an isolated policy measure. The process should be embedded – as a scaling-up and acceleration methodology – in national education and Education for All (EFA) plans, in Sector-Wide Approaches (SWAps), in existing monitoring and evaluation mechanisms, and in fi nancing instruments and macroeconomic frameworks, together with the Ministries of Finance and Planning. School fee abolition, when implemented within a sound policy framework, can be a catalyst for identifying ineffi ciencies and for engaging in reforms.

Thirdly, most countries engaged in school fee abolition are encountering major planning and implementation challenges. The fi rst step is to plan abolishing school fees in a way that ensures access to quality education and even to welcome the surge in enrolment as an opportunity to plan for better quality education. Given limited education and national budgets, it is essential to ensure that school fee abolition is adequately fi nanced in the short and medium term and that it is fi nancially sustainable in the long term.

Yet another challenge is to ensure that specifi c short-term measures are taken during school fee abolition processes that promote long-term


17

Introduction

and sustainable reforms in terms of quality. Most of these reforms involve trade-offs of some sort that will need careful monitoring (more classrooms, teachers and textbooks are needed, meaning a bigger budget and more staff).

Many countries are scrutinizing how resources are mobilized and used by developing strategies to monitor this fl ow. School grants and school bank accounts are reviving reveal school councils and enhancing community participation in decisions about resource allocation and quality improvement, thereby strengthening the capacity of schools in planning and budgeting, procurement and management; and they are promoting local-level solutions, administrative effi ciency and accountability.

It is important to question how sustainable a free education system can be. A fee-paying system indicates that there are inadequate funds for education (and for social services in general).

Before abolishing school fees, fi nancial considerations must be taken into account, including how to replace the fee revenue. In most countries, replacing direct charges of tuition and other school costs have minimal budgetary implications (though they still represent a burden on the poor). In some countries, this can have considerable repercussions, especially when fees are used to pay teachers’ wages. The main challenge is that of fi nancing quality: fi rst, to pay for the resources required by signifi cant enrolment increases in the short term, but also to address the pre-existing un-met costs of ‘catching up’ with targets of quality norms and standards. Options need to be considered with regard to the percentage of investments between salary and non-salary inputs. While the Fast Track Initiative (FTI) Indicative Framework suggests that 33 per cent of recurrent spending should go towards non-salary inputs, teachers’ salaries continue to take up the largest share of recurrent expenditure on education (as much as 95 per cent) overriding out other quality inputs and maintenance.

In many countries, out-of-school children come from the poorest fi fth of the population; poor, excluded and vulnerable groups may still not go to school even after fees have been abolished. They may need more specifi c support to mitigate spending limitations on poor families’ budgets, including the opportunity costs of schooling, when parents


18

Introduction

may prefer their children to work at home or earn money working outside of the home, rather than studying. These would have to take into consideration incentives and waiver programmes such as cash transfers, food rations, grants and subsidies, as well as alternative learning methods for over-age children. These schemes require well-developed public administration frameworks with the capacity for data collection, analysis and monitoring. Middle-income countries are becoming more and more familiar with this, while low-income countries in regions such as Africa have had little experience in this regard.

While considering the abolition of school fees, it is also important to formulate policies for community and private education. This is particularly crucial in countries that invest a great deal in the education system.

These are schools that are often established in suburban and rural areas because of the insuffi cient provision of public schooling. We cannot tackle abolishing school fees without scrutinizing how much of the national budget is spent or set aside for education. Countries could increase domestic investments in education to reach the FTI benchmark of 20 per cent of government expenditures (out of which 50 per cent should go to primary education). On the other hand, hiring additional teachers (and in some cases giving teachers a pay rise), while abandoning school fees, stretches education budgets. Often, this confl icts with the International Monetary Fund (IMF) wage ceilings and macroeconomic frameworks, infl ating public sector wage bills (teachers usually form its largest component). Policy options need to be explored to ensure that teachers are used more effectively.

Countries that have made huge investments in the education sector, with little opportunity to mobilize additional domestic sources in the short term, require increased and predictable external assistance to meet higher enrolments, which require sustainable budget support for transfers and capitation grants. Such support is necessary to compensate for immediate recurrent costs such as teachers’ salaries and school maintenance.

The case of free primary education in Ethiopia is relatively less studied in research literature. The country is large and characterized by regional, urban-rural, ethnic, language and income disparities,


19

Introduction

which make it diffi cult to collect and analyze data. Poverty and child labour are widespread; and formal fees were only among other existing contributions households made to schools in cash, in kind and labour. Policies for free primary education were planned and gradually implemented in the 1990s. Their impact has not been systematically analyzed.

This study was done to explore the challenges faced by various stakeholders, in particular those who are in charge of providing free primary schooling in Ethiopia, and those who should benefi t from it. After a series of policy measures in the mid-1990s, families were no longer required to pay formal fees for their children to go to government schools. This book will address the following questions: what are the strategies, methods, resources and tools used by the state to provide fee-free schooling? How did families and communities react to this policy of fee-free primary education? What are the noted qualitative and quantitative effects of fee-free education on government resources and household behaviour, and on enrolments in particular? And fi nally, what steps must the government take to ensure that fee-free education is viable and sustainable for a country like Ethiopia where staff and resources are limited?

The structure of this book is as follows: Chapters 1 and 2 are dedicated to the background discussion of fee abolition in various countries from policy perspectives. General indications on Ethiopia’s education policy history are also discussed to provide a view of the context in which this study takes place. Chapters 3 and 4 deal with the study’s detailed objectives. It seeks to defi ne the desired results of the research that was undertaken. It is followed by a discussion of the methodology employed to come to a conclusion. Chapter 5 is a detailed report of Ethiopia’s education statistics and qualitative data. It clarifi es recent changes in enrolment, attendance and funding as presented in Chapters 6 and 7 analyze the data and look specifi cally at the challenges of fee-free schooling in Ethiopia. Chapter 8 concludes the study and suggests which aspects of education policy can be improved to make free schooling more viable and sustainable.


21

1. LITERATURE REVIEW ON FEE-FREE PRIMARY EDUCATION IN ETHIOPIA

Education is a private and social good, an investment in which many stakeholders partake. The proportion of public and private funds allocated to education, as well as funding mechanisms, vary considerably from country to country. To support benefi ciaries, the local community and the private sector can work together to make funding sustainable and viable. Growing fi nancial constraints on educational investment combined with continued strong private demand for education have led several governments to consider introducing tuition fees and student loans (Psacharopoulos and Woodhall, 1985; Bray, 1999; Tomasevski, 2003; Bentaouett and Burnett, 2004; Schaffner, 2004; Bentaouett, 2006; Plank, 2007; UNESCO, 2007).

Fees, charges and contributions pose a barrier to poor school children. As shown by fee-abolition schemes in Africa and elsewhere (Boyle et al., 2002), fees commonly have a much greater impact on household decision-making than other demands, such as textbooks, school meals and opportunity costs. However, this does not necessarily mean that governments should make education free of charge at all levels and for all people (Bray, 2006a and b).

Although governments must increase their share of education spending by eliminating school fees, a number of them have chosen to direct some additional funding towards households. With conditional cash transfers (CCTs), households receive a sum of money if they enrol their children. This alternative funding method, which the Ethiopian Government does not engage in, is known in Brazil as Bolsa Familia and reaches out to 16 million children (UNESCO, 2007: 153). Although it has proven to be extremely popular, it is very costly and subject to manipulation.

Global practices show that households pay numerous fees for public primary education. It is diffi cult to obtain a complete picture of fees in primary education. It is particularly diffi cult to develop a quantitative estimate, because fees are not normally reported in offi cial school censuses or fi nancial returns from education systems. According


22


to Bentaouett and Burnett (2004) user fees for primary education and the type of fee varies considerably from region to region. Their fi ndings indicate that in Africa, community contributions and PTA dues are the most common type of fee (81 per cent of countries surveyed). Other fees are less common but nonetheless signifi cant: tuition (41 per cent), textbooks (37 per cent), uniforms (48 per cent) and other activity fees (41 per cent).

There are also other additional economic costs related to primary education. These include transport, tutoring and indirect costs (opportunity costs) like sending children to school (Bentaouett 2006). These imply that fees make up a signifi cant proportion of household spending, especially among poor families. This could determine the rates of enrolment and participation in many countries.

According to the 2008 Education for All Global Monitoring Report (UNESCO, 2007) in many countries, household expenditure on education is signifi cant, regardless of school fees. Households in Uganda, Zambia and Bangladesh can spend up to one third of their discretionary budget on education fees and related materials (UNESCO, 2007: 152; Boyle et al., 2002). Uniforms (where applicable), textbooks and other books, supplies and transportation to and from school, signifi cantly contribute to the quality of educational services and come to a great cost for the household income. Tutoring is an additional expense on households. It raises questions of equity, as poorer families usually cannot afford to pay for it. Bray (1999, 2006a) noted that the amount and quality of tutoring are often positively correlated with household income, further reinforcing the disadvantages of being poor. To counter these expenses, a number of countries (including Ethiopia) have attempted to provide free education, especially at primary and secondary levels. Between 2000 and 2007, governments in 14 countries eliminated tuition fees, thus suppressing a source of government revenue as student numbers surged (UNESCO, 2007).

The literature identifi es arguments both for and against school fees. Those in favour of abolishing school fees argue that the cost of educating children prevents them from going to school, especially if they belong to the poorest segments of society. Thus, abolishing school fees makes it easier and less costly for children to enrol, leading to


23

Literature review on fee-free primary education in Ethiopia

a dramatic increase in the number of school going children. Studies from Uganda, Cameroon, Kenya, Lesotho, Malawi and Zambia show that a year after fees were abolished, enrolment increased most rapidly (Al-Samarrai and Hassan, 2000; Tomasevski, 2003; Rose, 2002; School Fee Abolition Initiative, 2006)

Those who argue against abolishing school fees recognize that such fees reduce the direct cost of schooling. They suggest that fees can have a positive effect on the quality of schools. Regardless of free schooling, the indirect cost (opportunity cost) of school attendance remains substantial. On the other hand, more students enrolling once school fees have been abolished can put a strain on schools, teachers, and educational materials, resulting in a lower quality of education. According to Plank (2007), after school fees were abolished in Malawi the ratio of pupils to classrooms increased to 119:1, the ratio of pupils to teachers increased to 62:1, and the ratio of pupils to textbooks increased to 24:1. The same author also reported that the abolition of school fees in other countries, including Uganda, Cameroon, and Mozambique, also resulted in a rapid increase in the pupil-teacher ratio. These factors have a direct effect on the quality of education.

Increasing student numbers in a classroom poses overcrowding risks. Free schooling may encourage more children to enrol but it may also help families realize that their children are less likely to become literate, to complete primary school, to proceed to secondary school, and to enter paid employment. Under such circumstances the drop-out and repetition rates are likely to increase, with less people completing primary education and less people attaining a basic level of education. As funding is spread more thinly across a larger pool of students, this can affect the quality of education on offer. Teachers cannot devote as much time to their students or even cater to individual needs.

In a rare study on what motivates school children to dedicate themselves to education, those who decide on primary school investments in Ethiopia (Schaffner, 2004) highlighted the role of distance, income, opportunity costs, perceived values, gender and cultural circumstances. The study found that a broad programme of income transfers is not likely to eliminate remaining barriers to school enrolment. Yet more targeted income transfers may be useful.


24


In 2008, the World Bank published a summary of African experiences Abolishing school fees in Africa: lessons learned in Ethiopia, Ghana, Kenya and Mozambique. It is not based on surveys or detailed fi eld data but provides a general picture of the process of implementing fee-free policies in different contexts, including Ethiopia. It describes the Ethiopian case at the national level and justifi es the policy and its expected outcomes (World Bank, 2008).


25

2. GENERAL PATTERNS OF FINANCING EDUCATION IN ETHIOPIA

In Ethiopia, a political and economic transformation that took place in 1991 resulted in the establishment of nine regions (Afar, Amhara, Benishangul-Gumuz, Gambella, Harari, Oromiya, SNNPRR, Somali and Tigray) and two city administrations (Addis Ababa and Dire Dawa). The regions are divided into zones, which are then broken up into Woredas in rural areas, or sub-city administrations, and fi nally, Kebeles at the village level. The Woredas are key local government units in each region and are responsible for the provision of basic services. In line with the decentralized government arrangement, the managerial and administrative structure of the education system has fi ve layers (school, zone, region and federal) whose functional responsibilities are defi ned by law (Transitional Government of Ethiopia, 1993; Ministry of Education, 1999, 2002a and 2002b).

The Federal Ministry of Education is responsible for setting and maintaining national education standards and policies. It is also in charge of engaging in broad educational planning and programming for the development of the education system, determining curriculum for secondary and higher education, establishing higher educational institutions, and providing technical assistance for regions. Regional education bureaus formulate regional education policy and strategies. They also administer and manage primary and secondary education, junior colleges, technical and vocational schools and teacher training institutes. They prepare curriculum for primary schools, they administer educational radio broadcast centres and provide technical and material support. The zones and Woreda Education Offi ces are responsible for providing and developing education in their localities. The zone Education Offi ces play the roles of co-ordination and supervision and provides technical and professional assistance to lower levels of the education system. Woredas are responsible for establishing, planning and administering basic education services, including primary schools (Ministry of Education, 2002a and 2002b; Policy Human Resource Development, 1996).


26


The history of formal education in Ethiopia goes back to the fourth century and is associated with the foundation of church schools (Pankhurst, 1958), followed by Koranic schools in the seventh century. Modern education offi cially commenced in 1908 with the opening of Menelik II School in Addis Ababa, marking a signifi cant step in the history of education in Ethiopia (Pankhurst, 1962; Tekeste, 1990). By 1925, the imperial government recognized education’s role in modernizing the country and in attaining standards set by the international community, and thus made it a national priority. In an effort to promote the value of education within the nation, Emperor Haile Selassie developed a policy to promote secular education, including a tax act to fi nance education. After 1926, the government imposed a special education tax and reserved a budget for education, signaling the beginning of a national education system. The fi rst education tax of 6 per cent was introduced in 1926 ad valorem on all imports and exports, followed by the establishment of the Ministry of Education and Fine Arts in 1930 by the Emperor. In 1931 the government proclaimed a constitution that gave power to the Ministry of Education, which was responsible for the development of public education, with a 2 per cent revenue earmarked in addition to education tax (Pankhurst, 1958). As Jandy cited in Teketse (1990), by the 1940s, education was the second largest item in the national budget.

Following this period, a number of legal acts on education were passed. The government issued Proclamation No. 93 in 1947 to levy a special tax on all agricultural land, to help fi nance free elementary education, since the cost of secondary education and higher education was due to come from the normal government budget. The government’s intention was to enable each province to promote self-suffi cient educational development. Notice No. 103, issued in 1947 on import and export tariff regulations stipulated raising adequate revenue for education. The main sources of education fi nance were the imperial government’s budget, special tax levied on all agricultural land and foreign aid. Between 1958 and 1965, the education budgets fl uctuated between 10.5 per cent and 11.5 per cent of the total national budget. Further, Proclamation No. 279 of 1970, concerned education tax on urban and rural property owners. Personal income earners had to pay a special tax for education. During this period enrolment was minimal, as


27

General patterns of fi nancing education in Ethiopia

the purpose of modern education was to prepare enlightened servants of the royal family and nobility, and schooling was generally free. This did not discourage any community contribution, which was insignifi cant nonetheless.

In the 1970s, in the National Democratic Revolution programme, the Educational Guideline stated “there will be an educational programme that will provide free education, step by step, to the broad masses” (National Democractic Revolution of Ethiopia, 1976: 14). Proclamation No. 103 of 1976 established the school committee, whereby parents and community representatives, teachers and students were given authority to manage and control schools in accordance with the directives laid down by the ministry of education. In the early years, the regime was successful in extensively expanding enrolment levels, adding three million students to the education system between 1974 and 1990, and raising the literacy rate to 70 per cent. However, adequate levels of resources were neither available nor invested in education to make it effective. At the end of this period, expenditure on education as a percentage of the national budget had fallen from 17 to 9.5 per cent (Ministry of Education, 1999; 2002a; 2002b).

School fees were introduced in a spontaneous and evolutionary manner. They included registration, book rent, maintenance, certifi cate, sports, etc. which in total cost between 10 and 15 birr and accounted for approximately 1 per cent of recurrent expenditure in government schools. With the exception of book rent, which was at a fi xed rate and approved by the Ministry of Education, the price of these items varied from region to region.

In 1994, Ethiopia issued the Education and Training Policy (ETP), which among other things clearly set the directives of educational fi nance. Along with other documents, the ETP declared that students from Grades 1 to 10 should be exempt from paying fees to reduce the fi nancial burden on parents, while those in Grades 11 to 12 and higher would be required to share the cost of schooling (Transitional Government of Ethiopia, 1993; Ministry of Education, 1999) The policy directives also clearly indicated that community contributions and involvement in schooling were important means of fi nancing education. Apart from stating the right to education in its own legal


28


documents, Ethiopia has endorsed relevant international conventions and commitments such as the Universal Declaration of Human Rights, the EFA targets and the MDGs.

The abolition of school fees for primary schooling can be viewed as positive development given that it is matched by a compensating increase in public funding for schools. In Ethiopia, the effects of free schooling could be seen as a mechanism to increase enrolment and to narrow disparities across and within regions. However, the ever-increasing size of the school-age population, which is exacerbated by the absence of stable economic growth, continues to challenge the government’s ability to provide desperately-needed education for children. Some people argue that abolishing school fees without an effective strategy for replacing revenues and protecting instructional quality is likely to do more harm than good, especially for the poorest and most vulnerable children. If the policy goal is to increase the number of children who enrol in school, then adequate funds must replace school fees in order to protect and improve the quality of education that poor and vulnerable children receive.

At the regional level budgets are being published in newspapers. In Woredas, budget plans are being posted in public areas and an increasing number of them are sharing actual spending data. Woredas are increasing their efforts to involve community members such as women, farmers and youth groups in planning and decision-making on resources. Local transparency and accountability initiatives are gaining momentum. There have been widespread efforts to publish and post regional and Woreda budgets, the fi rst initiative of its kind in Ethiopia, which has served as a catalyst for transparency and accountability, at local administration levels. Steps are also underway to introduce laypersons’ budget templates which will make public budget and expenditure information much more accessible for the average citizen, including people who are not very educated.

The budget and expenditure information by region and by Woreda is available on the Ministry of Finance and Economic Development website (www.mofaed.org).

Accountability increases a community’s awareness and activism. Local civil society organizations are running community programmes


http://www.mofaed.org

29

General patterns of fi nancing education in Ethiopia

in Lideta (a sub-city administration of Addis Ababa) and in Debre Berhan. The projects help citizens understand how much money is being provided and what it is being spent on, enabling them to engage in the provision of education services.

Box 1 Donor contribution to basic services

In recent years donors have intensifi ed their support for Ethiopian primary education. The Protection of Basic Services (PBS) programme was designed by donors in 2006 to ensure that poor people continue to have access to basic services such as education, health and agricultural services, despite the withdrawal of national budget support in 2005.

The PBS programme is seen as an effective way of supporting the Ethiopian government’s plans for poverty reduction and economic development.The UK Department for International Development (DFID), the World Bank, the Netherlands and Ireland were the only donors to commit funds to this programme. Four other donors – the African Development Bank, the European Commission, Canada and Germany – have joined. This brings up the total donor commitment from US$420.2 million to US$780 million in 2007.

PBS money is used to supplement government funding for these services. It requires regular reporting on how the money is spent. In addition, PBS aims to make local government more accountable to citizens in terms of how it delivers these services. More fi nancial information is now available to the public. The new formula to allocate block grants from federal government to regions has been approved and published by the House of Federation after extensive regional consultation. This new formula is expected to reduce inequalities in per capita allocations across the country.

PBS focuses on four main principles that have been satisfi ed by the government to activate a disbursement of donor funds. Firstly, PBS donor funds must not be considered as a substitute to increases in the government’s own revenue sources for regional block grants; secondly, block grants must be allocated transparently, be rules-based, and demonstrate neither political nor ethnic bias; thirdly, the government must follow high fi nancial management standards; and fi nally, budgets and services must be accountable to citizens.

In Ethiopia’s decentralized government structure, regional authorities provide basic services, such as primary and secondary education. PBS therefore provides funds to increase the size of block grants from the federal to the regional level. These funds can only be used at the regional and Woreda levels for basic services, namely to pay teachers, health and agricultural workers across Ethiopia.

Source: www.mofaed.org


http://www.mofaed.org

30


There will be at least six large-scale pilot projects in several regions. Civil society organizations will engage citizens through accountability education, participatory planning, citizen’s report cards, community planning score cards, and public fi nance literacy packages. Almost 50 civil society organizations submitted proposals, all of which included local letters of support from Woreda councils.

In line with donor support, regional expenditure on education has nearly doubled from US$292 million in 2004 to US$558 million in 2007. Total primary enrolment reached an all-time high in 2006 of 14 million. The net enrolment rate in Grades 1 to 4 has increased to 80 per cent and to 39 per cent in Grades 5 to 8. The gender gap in Grades 5 to 8 narrowed. This, however, does not refl ect regional differences. While gains in access to basic education are strong, there are concerns about the quality of education that children receive.

For example, 1.2 million more children enrolled for primary school in 2006/2007 compared to the previous year. Hence, it is not easy to separate the effects of increased primary education funding from the effects of abolishing school fees. This fast progress also raises questions and concerns about its sustainability and on how heavily it depends on donors. Strong donor support helped to ensure that teachers got paid but communities still continue to support school construction, repairs and maintenance.


31

3. OBJECTIVES OF THE STUDY

One of the reforms outlined in the government’s 1994 Education and Training Sector Policy was the elimination of school fees for Grades 1 to 10 to reduce the fi nancial burden on parents. The Ministry of Education’s (2002a; 2002b) guidelines indicate that families and communities are expected to fi nance education voluntarily. Accordingly, the free schooling initiative has been implemented for more than a decade. On the other hand, given the high opportunity costs in rural areas, the absence of school fees may not be suffi cient to improve school enrolment in the long run. Apart from tuition fees, various user charges and exemptions are kept under the school management committee’s control. Sometimes schools suffered cash-fl ow problems following the abolition of school fees after delays in disbursement from upper administrative levels.

This case study was designed with the following objectives:

• to identify the actors and services that are impacted by free access to education,

• to assess the extent to which the practice of community participation signifi cantly eases pressure on the government’s educational cost and fi nancing,

• to assess the effectiveness of free schooling in achieving desired educational goals,

• to explore the extent of increased government spending on education and measures that compensate for any lack of support.

To meet these objectives, the study was guided by the following basic questions:

• What are the contributions of families and communities to government primary schools (Grades 1 to 8)?

• What are the effects (major successes and failures) of providing free education?

• What challenges are governments faced with in providing free education?

• What lessons have we learnt from this initiative?


33

4. METHODOLOGY

Study design and data collection tools

In its 1994 Education and Training Policy, and as part of the education sector’s development strategy, Ethiopia abolished primary school and general secondary school fees. It also set targets for achieving universal primary education by year 2015. This study tries to assess the effects of free schooling.

A case study was carried out. Given the size and diversity of Ethiopia’s regions, the schools consulted were not wholly representative of the overall situation, due to vast inter-regional and urban-rural disparities. However, the data gathered and observations made were largely indicative of the reality at the grassroots level across such a large country. Data on how to fund education was gathered, including primary education, community contributions and fi ndings on the effects of free schooling. Efforts have been made to triangulate data obtained from different sources.

There were three main data collection methods. The fi rst was a document review, where policy documents, education statistics, annual abstracts and reports were assessed; the second method relied on administering closed and open ended survey questionnaires at school and within the community to obtain in-depth information regarding the effects of free schooling and the community’s involvement; the third method was a checklist to collect quantitative data such as fi nancial information, enrolments and drop-out rates at school Woreda and regional levels.

A survey questionnaire was designed and piloted in one of the schools in Gulalle sub-city of Addis Ababa City Administration to solicit in-depth information on families, community contribution and on the impact of free schooling. A questionnaire was used for the whole survey.


34


Sample

The coverage and nature of data and information collected are summarized in Table 4.1 below. A total of 64 primary schools (Grades 1 to 8) were involved. The regions and schools were chosen on grounds of how accessible they were (taking into account the size of the country) and representation (taking into account the features and specifi cities of different regions).

Table 4.1 Study Regions, Woredas/sub-cities and schools

Region Woreda/sub-city SchoolsAddis Ababa 2 sub-city education offi ces

(out of 10)9 primary schools (out of 467)

Oromia 9 Woreda education offi ces (out of 254)

30 primary schools (out of 7,350)

SNNPR 2 Woreda education offi ces (out of 125 Woredas and 22 city administrations)


Amhara 3 Woreda education offi ces (out of 118 Woredas)


N.B. Figures in parenthesis refl ect data in the year 2005/2006.Source: Selected by the research team in co-ordination with local education authorities.

Target population

The research targeted three main groups: school principals, PTAs and the Kebele Education and Training Board (KETB) to provide fi rst hand insight into the effects of the free schooling initiative and community participation/contribution in fi nancing schools. Those who responded to the study were key participants in educational processes and implementation. They were chosen because of their position and vested responsibilities at the grassroots level. Table 4.2 portrays the characteristics of respondents included in the study.

Table 4.2 shows that most respondents were drawn from Oromia and Amhara, accounting for 34.6 and 26.9 per cent. Approximately 37.2 per cent were school principals, 30.1 per cent were PTA representatives and 28.2 per cent were representatives of the KETB. A total of 4.5


35

Methodology

per cent respondents did not report their position. In fact, in few schools some of the PTA and KETB were not available for a number of reasons.

Table 4.2 Respondents’ characteristics

No Characteristics Frequency Percentage1 Number of respondents by region

42 26.9AmharaOromia 54 34.6SNNPR 30 19.2Addis Ababa 30 19.2

Total 156 100

2 Number of respondents by position58 37.2Principal

PTA 47 30.1KETB 44 28.2Missing 7 4.5

Total 156 100

3 Number of respondents by location77 49.3Urban

Rural 75 48.1Missing 4 2.6

Total 156 100

Source: Research team estimates.

Table 4.2 also shows that 49.3 per cent and 48.1 per cent of respondents were drawn from urban and rural areas. Since the purpose of the study was to assess the effects of free schooling, it was important to include both rural and urban areas in the study.

Data analysis and data quality

The data collected were examined and organized in terms of how complete, comprehensible, consistent and reliable they were. Both qualitative and quantitative approaches were used. The rationale was that qualitative approaches study selective issues and that data collection was not affected by pre-determined and standardized response choices.


36


A quantitative approach compiles and analyzes statistics and numerical data. The fi gures are therefore easily aggregated for analysis and presentation. Tables and graphs were also used to guide how fi ndings were interpreted. These multiple approaches and methods provide a way to offset the different biases of each method and to test whether the fi ndings are suffi ciently robust and not mere artifacts of any particular method. All in all, the methods relied on data collection techniques.

The quality of data collected for this study has been tested for accuracy and use, using statistical instruments and peer reviews. In this regard, parameters comparable to an existing regional and national average were used. Key information and data collection patterns for schools and system levels were compared with that of national and regional averages. The results revealed some similarities.


37

5. LOCAL CONTEXT, ELEMENTS FOR ANALYSIS AND LIMITATIONS OF THE SURVEY

This section elaborates on an assessment of an enabling environment. It focuses on analyzing free schooling perspectives in Ethiopia; on fi nancing and spending strategies for educational development at the primary school level; on community participation; administrative and institutional elements; and a review of the overall effects of free schooling. Since Ethiopia is such a vast and diverse country, the impact of free schooling was not as well researched as in other African countries. This has to be taken into account when interpreting sample results (a total of 64 schools), understanding the nature of questions (suffi ciently clear and suffi ciently answerable), making sure that the respondents actually know the answers and are prepared to report fully and accurately.

To tackle limitations, questionnaires were prepared in Amharic, one of Ethiopia’s offi cial languages, schools and regions were carefully selected and interviews were carried out. The four selected regions enrolled 83 per cent of primary pupils in the country. Thus it was crucial to select representative schools, by carrying out detailed interviews with several stakeholders per school (headmaster, members of the school board and members of PTA) to ensure correct and good quality data collection.

Free schooling has not always fulfi lled expectations. It is important to assess the circumstances of implementing free schooling. The local context will be assessed in terms of education fi nance, expenditure strategy and community contributions as well as administrative and institutional factors.

Education fi nance and expenditure strategy

The education fi nance and expenditure strategy as well as the level and composition of expenditure were assessed for the years 1997/1998 to 2005/2006. A sector investment programme fi nances education. The rationale behind the sector-wide approach is to gradually translate the sector policy framework into an expenditure programme. This


38


centralized approach brings together donor, capital and local spending within the sector. It assumes that without the programme, progress towards universal primary education would be slow and costly.

Education programmes are sector wide and cover all levels and areas of education, all tiers of governments and all forms of expenditure. The duration of the programme is designed to last 20 years (1997-2016) with four consecutive phases. Its basic aims are to increase access, to improve quality, to increase effectiveness, to achieve equity and to expand fi nance at all levels of education. The Education Sector Development Programme I (ESDP 1) was the fi rst fi ve-year programme (1997/1998-2001/2002), which was developed to attain different sector-wide goals. The second Education Sector Development Programme (ESDP II) lasted three years (2002/2003-2004/2005). The duration of the programme was limited to three years in order to fi t into the government’s term of offi ce. The Education Sector Development Programme III (ESDP III) is the third programme and will last fi ve years (2005/2006-2009/2010). It is currently being implemented.

The strategy indicates that spending responsibility has been decentralized to the regional states. Since 2003/2004, the two-step allocation process has been used to make federal block grant allocations across regions. The formula used for the block grant allocation process takes into consideration the size of the population (65 per cent), poverty and development levels (25 per cent), and an index of revenue and sector-wide performance (10 per cent) of each region. After 2002, to make block grant allocations from regions to Woredas, regions adopted this formula, sometimes with some minor modifi cations. Thereby, block grants were allocated to each Woreda based on population, development levels, and revenue collection efforts (Jeilu, 2005; World Bank, 2007).

Although a vertical single-sector approach for each of the social sectors was considered, Ethiopia’s system of devolved governance rejected it since it makes budget allocation choices across sectors at sub-national tiers of government and not within a vertical sector programme. The Protection of Basic Services (PBS) project was conceived as a response to donors’ decision to withdraw direct Government Budget Support (GBS) resources. The PBS is designed as a multi-sector approach. What sets it apart from the previous


39

Local context, elements for analysis and limitations of the survey

modality of direct budget support is the way it ensures that resources for basic service delivery in health, education and water are not cut, but continue to grow (the basic services have been defi ned broadly to include services delivered at the sub-national level, that contribute to poverty reduction or have a social impact). The PBS seeks to protect basic services provided at the sub-national levels, since this is where most primary and secondary services are fi nanced and provided in the decentralized government system.

Schools can generate resources from income-generating activities, through government, families, the community and non-governmental organizations (NGOs). Schools may also benefi t from resources (cash, in kind or in labour) used for activities and inputs. The framework was also set out to identify resources and inputs from families and the community.

Table 5.1 Share of education sector compared to total national budget and GDP for the last nine years (1997/1998-2005/2006)

Fiscalyear

Education budget Budget (% of GDP)Total

(in million birr)Percentage,

out of nationalNationalbudget

Educationsector

1997/1998 1,493.5 12.4 26.8 3.3

1998/1999 2,062.6 12.2 34.7 4.3

1999/2000 2,303.8 11.3 39.4 4.5

2000/2001 2,485.1 13.7 29.5 4.1

2001/2002 2,711.9 12.6 21.6 3.4

2002/2003 3,293.1 16.6 29.1 4.8

2003/2004 4,146.0 17.6 27.2 5.6

2004/2005 4,638.9 16.7 29.3 5.8

2005/2006 5,990.6 17.8 33.4 7.3

Sources: Ministry of Education, 2007; World Bank, 2007.

Table 5.1 outlines the education sector’s share from the total national budget and Gross Domestic Product (GDP) for the fi scal years 1997/1998 to 2005/2006. The total budget allocated for the education


40


sector has been increased in absolute terms with 15.4 per cent annual growth, oscillating between 12 per cent and 18 per cent of the total national budget for the period 1997/1998 to 2005/2006. Table 5.1 shows that government spending on education rose both as a share of GDP and as a share of total government spending. Public education expenditures almost tripled between 2002/2003 and 2005/2006 in real terms, rising from 4.8 per cent to 7.3 per cent of GDP over this period. The percentage share of the government’s total spending on education shows an upward trend except for 2000/2001 and 2001/2002, where it declined slightly to 4.1 and 3.4 per cent of GDP respectively.

Global success stories on educational reform have shown that up to 5 per cent of GDP and 15 to 20 per cent of the national budgets were earmarked for this purpose. These fi gures seem encouraging. Additional, sustainable resources are still necessary.

The government of Ethiopia is committed to improving educational quality and expanding access to achieving universal primary education by 2015. Under this banner, a total of 12,234.7 million birr was set aside to implement ESDP I. Of this, the government was committed to approximately 73 per cent of the total expenditure over a fi ve-year period. Bilateral donors, the local community, parents, the private sector and NGOs covered remaining costs. However, available funds for ESDP I (1997/1998-2001/2002) amounted to 10,975.5 million birr, 89.7 per cent of the total expected budget. For ESDP II, the total fi nancial requirement was 15.1 billion birr. However, of the total government budget, the amount earmarked for education between 2002/2003 and 2004/2005 was 12.5 billion birr or about 83 per cent of the total expected budget. The fi nancing gap in both ESDP I and ESDP II could be due to bad timing in terms of external funding fi lling the gaps or, due to a lack of reliable fi nancing information from local communities, parents, NGOs and the education sector. The national government may also have faulted on its promises, which could have also hampered the budgetary process.

For ESDP III (2005/2006-2009/2010) a total of about 51.5 billion birr (scenario III) was earmarked to implement the plan with a fi nancial gap of 17 per cent (Ministry of Education, 2007).


41


Table 5.2 Share and cost of primary education projected from ESDP I to ESDP III (birr in millions)

ESDP and fi scal year Cost of primary education

Share of primary education (%)Out of total education

budgetRecurrent Capital

ESDP I 1997/1998 0.955 56.0 78.2 21.81998/1999 1.337 53.3 63.4 36.61999/2000 1.380 60.9 64.9 35.12000/2001 1.427 62.6 63.8 36.22001/2002 1.554 65.6 69.7 30.3

ESDP II 2002/2003 1.914 39.1 60.1 39.92003/2004 2.008 42.0 62.8 37.22004/2005 2.081 44.2 66.1 33.9

ESDP III 2005/2006 3.654 40.9 54.1 45.92006/2007 4.468 45..9 55.6 45.42007/2008 5.420 47.1 52.1 47.92008/2009 6.428 52..8 52.6 47.42009/2010 5.971 51.4 66.5 33.5

Source: Author’s compilation from Ministry of Education data (2007) and ESDP Joint Review Mission Report (2006).

Table 5.2 shows that during ESDP I the share of primary education was increased from 56 per cent in 1997/1998 to 65.6 per cent in 1998/1999 when it declined to 53.3 per cent. The average share of primary education fi nancing in ESDP I was 60 per cent, while it dropped to 42 per cent and 48 per cent in ESDP II and in ESDP III respectively. Over the ESDP III period the share of primary education fi nancing is planned to increase from a low of 40 per cent to around 50 per cent of the total education envelope, as indicated by the data pertaining to the cost and fi nancing education, as there is a positive trend of increasing fi nance for secondary, technical and vocational and higher education. The share of education spending going to primary education has been declining in ESDP II and III. One possible reason for this is that expenditure share of tertiary education and technical and vocational education and training (TVET) has signifi cantly increased. The share of tertiary education has increased from less than 10 per cent to approximately 25 per cent. As a result of the expansion of tertiary education throughout the country, there has been an increase in recurrent expenditure for higher education and an overall rise in spending, which


42


has more than tripled during this period. Similarly, the policy focus on TVET translated into a substantial increase in public spending for this sub-sector relative to overall education spending. According to a World Bank (2005) estimate, TVET expenditures increased more than 12 fold. Primary level spending constituted the largest share in education expenditure. This is because improving access to primary education is the education sector’s top priority, as indicated in ESDPs and as stated in the government’s 2002 poverty reduction strategy. However, it grew slower than overall expenditure, going up only by 16.5 per cent from 1997/98 to 2005/06.

Some people argue that the expansion of university and TVET is necessary to develop a country. However, in terms of spending priorities, this trend might affect commitments to expand access and to improve the quality of primary education. It is essential to strike a balance between investments in primary, secondary and higher education.

Graph 5.1 Trends in recurrent and capital costs of primary education

Recurrent and capital composition

100

20304050607080

ESDP I ESDP II ESDP III

Perc

enta

ges

Recurrent

Capital

Source: Compiled from Ministry of Education data (2007).

Graph 5.1 depicts the recurrent and capital investment shares in the fi nancing frameworks for primary education over ESDP I, ESDP II and ESDP III. The recurrent budget has been decreasing while the capital budget has been increasing. On average the composition of recurrent and capital budget ratios for primary education during ESDP I, ESDP II and ESDP III is 68:32, 63:37 and 56:44 respectively. This suggests there


43


is no clear link between recurrent and capital expenditure allocation in the budget structure.

Table 5.3 Overview of education fi nancing and primary education enrolments in selected regions from 2001/2002 to 2005/2006

Year2001/2002 2002/2003 2003/2004 2004/2005 2005/2006

Addis Ababa

Education budget (birr in thousands)

184.38 203.20 189.50 152.65 334.93

Education budget share 18.9% 18.6% 12.5% 8.1% 14.7%Primary education enrolments

467,164 477,536 489,215 502,965 487,157

Primary education Gross Enrolment Rate (GER)

128.4 135.4 142.6 150.2 148.5

Amhara Education budget (birr in thousands)

385.59 445.90 408.80 585.22 689.66

Education budget share 36.7% 41.6% 34.1% 37.9% 40.6%

Primary education enrolments

1,964,101 2,034,497 2,215,849 2,798,860 3,283,204

Primary education GER

58.1 58.5 61.8 75.9 86.4

Oromia Education budget (birr in thousands)

650.24 676.70 798.40 864.01 1,155.50


2,969,966 3,283,307 3,673,631 4,561,378 4,832,554


62.4 66.9 72.7 87.5 89.8

SNNPR Education budget (birr in thousands)

323.19 357.00 502.00 538.39 709.78


1,784,410 1,959,788 2,095,791 2,304,980 2,587,446


67.5 71.8 74.2 85.6

Source: Author’s data extracted from Ministry of Education data (2007) and ESDP Joint Review Mission Report (2006).


44


Table 5.3 portrays government education sector spending and the trend of primary education enrolments in four regions: Addis Ababa, Amhara, Oromia and SNNPR. The education sector in these regions received an average share of 14.6 per cent, 38.2 per cent, 37.7 per cent and 40.7 per cent out of a total regional expenditure over the years between 2001/2002 and 2005/2006. Public expenditure on education in Addis Ababa is smaller compared to the other three regions. This might be due to the fact that private education plays a signifi cant role in Addis Ababa. For example, according to recent Ministry of Education estimates (2007), the share of private primary education enrolment in Addis Ababa was 54.7 per cent of the total primary education for the city administration, whereas the share of private primary education enrolments in Amhara, Oromia, SNNPR regions and at the national level was 3.3 per cent, 2.5 per cent, 3.9 per cent and 5.1 per cent respectively in 2005/2006. This implies that private sector contributions in Addis Ababa were dominant.

Table 5.3 shows that primary education enrolment increased in all regions except for Addis Ababa. The average annual growth over 2001/2002-2005/2006 for Addis Ababa, Amhara, Oromia and SNNPR was 0.8 per cent, 10.7 per cent, 9.6 per cent and 7.5 per cent respectively. For Addis Ababa, enrolment dropped slightly (by -1.6 per cent) from 2004/2005 to 2005/2006. This may be due to the fact that the Gross Enrolment Rate (GER) for Addis Ababa is greater than 100 per cent. Only children of school age are expected to go to school, and the GER has started declining (the GER in 2005/2006 was less than the GER in 2004/2005). Data gathered from sample schools between 2002/2003 and 2006/2007 also show a similar declining trend for Addis Ababa of up to 2.2 per cent annually, whereas Amhara, Oromia and SNNPR have higher enrolments that went up by 5 per cent a year. The following discussion presents the trend of roughly how much primary education costs, as shown in Table 5.2 and enrolment trends, as indicated in Table 5.3 with the help of Graph 5.2.

As refl ected in Graph 5.2, the estimated cost of primary education increased from 1997/1998 to 2005/2006 at an annual growth rate of 16.5 per cent, and the enrolment of primary education increased at an annual growth rate of 9.3 per cent for the same period. Furthermore, the graph shows that the rate at which primary education costs rose


45


between 1997/1998 and 2004/2005 was not so high. Enrolments increased rapidly. Given the relationship between spending on education and primary school enrolment, it is tempting to conclude that most of the growth in primary enrolment was driven by an increase in public spending on education. However, one could also argue that some of the growth in spending was on other sub-sectors (e.g. tertiary as reviewed from ESDP II and III), where spending has risen a lot more rapidly than on primary education. According to the ESDP Joint Review Mission’s report (2006), which refl ected the views of regional education offi cials in several regions, the education budgets did not increase in line with a rise in enrolment. A close look at the relationship between spending and primary enrolment (Table 5.4) indicates that the increase in government spending is insuffi cient (when only recurrent costs and actual expenditure are assessed, the annual growth rate is 12 per cent). It does not cover the rapid rise in enrolment, which increased much quicker than government spending. More public spending alone cannot explain the rise in enrolment.

Graph 5.2 Trends in primary education cost and enrolment between 1997/1998 and 2005/2006

Cost of primary education trend

10,000,000

8,000,000

6,000,000

4,000,000

2,000,000

0

12,000,000

14,000,000

1997

/1998

1998

/1999

1999

/2000

2000

/2001

2001

/2002

2001

/2003

2003

/2004

2004

/2005

2005

/2006

Year

Prim

ary

educ

atio

n en

rolm

ent

Cost of primary education

Enrolment

Source: Research team estimates compiled from Ministry of Education data (2007) and ESDP Joint Review Mission Report (2006).


46


Table 5.4 The rate of enrolment and fi nancing of the education system

Year Primary education Primary education recurrent cost

(birr in thousands)Enrolment

(Enrolment in public schools)

GER NER Number of schools

Total Salariesin %

1997/1998 5,090,670 41.8 36.0 10,752 746,097 -1998/1999 5,702,233 45.8 39.5 11,051 848,155 -1999/2000 6,462,503 51.0 44.0 11,490 896,172 -2000/2001 7,401,473 57.4 48.8 11,780 909,594 -2001/2002 8,144,337

(7,715,071)

61.6 52.2 12,087 1,083,511 -

2002/2003 8,743,265

(8,281,431)

64.4 54.0 12,471 1,150,146 86.1

2003/2004 9,542,638

(9,049,008)

68.4 57.4 13,181 1,260,489 86.1

2004/2005 11,448,641

(10,946,702)

79.8 68.5 16,513 1,376,340 86.1

2005/2006 13,474,674

(11,870,513)

91.3 77.5 19,412 1,975,750 81.9


Graph 5.3 portrays the trend of GER for primary education and spending as a percentage of GDP between 1997/1998 and 2005/2006. The graph indicates that the rising trend in GER is quite rapid, while spending on education as a percentage of GDP and total public spending is increasing, though at a much slower rate.

Some people argue that primary education is taking a good share of the country’s available resources. But the rate of growth in enrolment is exceeding the amount of money that is allocated, which shows that fi nancing the education system poses a critical challenge. Calculating the unit recurrent budget (recurrent budget per pupil) can clarify this situation. Recurrent cost spending per student in birr for the years


47


2001/2002, 2002/2003, 2003/2004, 2004/2005 and 2005/2006 is 140.4, 138.9, 139.3, 125.7 and 166.4 respectively. The unit recurrent budget at the primary level from 2001/2002 to 2004/2005 indicates a decreasing trend, while from 2004/2005 to 2005/2006 it rose to 166.4 birr. This decreasing trend shows that expenditure on recurrent costs is lower, while more enrolments lead to, among other things, a higher pupil-teacher ratio which has implications for teaching, learning and quality of education. Further analysis of the reviewed document indicates that the non-salary recurrent budget per pupil for primary school during this period was low.

Graph 5.3 Trends in primary school enrolment since 1997/1998 and increases in spending on education as a percentage of GDP

100

20304050

607080

90

100

GER

and

spen

ding

in e

duca

tion

Education spending as % of GDPEducation spending as % of total public spending

GER

1997

/1998

1998

/1999

1999

/2000

2000

/2001

2001

/2002

2001

/2003

2003

/2004

2004

/2005

2005

/2006

YearSource: Research team estimates based on Ministry of Education data (2007) and ESDP Joint Review Mission Report (2006).

Despite the government’s determination to spend on education, which accounts for about 5 per cent of GDP, teachers’ salaries take up most of the recurrent budget (approximately 85 per cent), and schools are left without adequate recurrent costs for instructional operations. Table 5.4 suggests that teachers’ salaries use up the education budget and little is left for anything else. The non-salary unit recurrent budget


48


for primary education indicates that the expenditure on education materials (such as chalk, pencils, papers and textbooks) is very low.

Table 5.5 illustrates this critical factor, which clearly shows that education budgets are spent largely on teachers’ salaries and, at the Woreda level especially, leaving very little for school operations and related activities. In terms of consolidated budgets for all Woredas, the wage bill increased between 2.2 per cent in Awassa and 20 per cent in Adama from 2004/2005 to 2005/2006. During the same period, the recurrent budget allocated to Woredas in Oromia increased by 17.9 per cent and 4.7 per cent for both Adama and Hetosa. For Arada, a sub-city of Addis Ababa, the recurrent budget allocation increased by 9.2 per cent, and for Woredas in SNNPR it increased by 11.7 per cent. In both Kededa and Awassa it increased by 2.1 per cent from 2004/2005 to 2005/2006.

Table 5.5 Recurrent budget allocation to some Woredas

Region Woreda/sub-city Recurrent budget in birr Number of studentsNon-salary Salary

Oromia 2004/2005 461,151 5,278,216 36,204Adama 2005/2006 272,162 7,981,534 38,563Hetosa 2004/2005 697,227 7,124,411 37,325

2005/2006 750,028 7,845,60 40,486

Addis Ababa 2004/2005 615,700 7,247,300 46,996Arada 2005/2006 446,900 9,004,900 41,392

SNNPR 2004/2005 196,100 5,251,100 6,551Kededa 2005/2006 266,000 6,631,300 7,114

2004/2005 264,680 5,941,345 20,692Awasa 2005/2006 269,087 6,206,377 22,884


However, from 2004/2005 to 2005/2006 within the recurrent non-salary budgets for education at Woreda level increased by only 0.8 per cent to 3 per cent. For some Woredas it was even reduced by 26 per cent (Adama) and 15 per cent (Arada). The data obtained (Table 5.5) reveal that, on average, the non-salary recurrent cost spending per student for Adama and Hetosa (in Oromia) was 9.9 birr


49


and 18.6 birr respectively. These fi gures do not refl ect the changing situation within these regions. For instance the ESDP Joint Review Mission (2006) report indicates that government budgets for school operating costs were small and declining over time, and per student spending varies considerably from one Woreda to another. Furthermore, the report points out that in some Woredas in Oromia, per student spending varies from 0.55 birr to 11.25 birr. Similarly, the report notes that in SNNPR, spending per student varies from 0.59 birr to 7.5 birr in some Woredas. To further illustrate this point, the average non-salary recurrent cost per student for Arada (Addis Ababa) and Awassa (SNNPR) was 11.9 birr and 12.27 birr respectively. The recurrent non-salary budgetary allocation to schools in these Woredas – except in Kededa where there was a better allocation (33.6 birr per pupil) since it has fewer students – was less than what the Ministry of Education guidelines proposed (Ministry of Education, 2002a and 2002b). This stands at roughly 15 birr per student per annum. Whether in cash or in kind, none of the spending is equivalent to the standards proposed in the ministry’s guidelines (Ministry of Education, 2002a and 2002b). These regions are not only receiving inadequate funding, they are also misallocating their resources and placing an overbearing emphasis on salaries, thus neglecting the quality of education offered to their pupils. This implies that budgets are not suffi cient to maintain proper teaching or learning or the physical infrastructures of schools and to provide learning materials and other important input factors for quality.

Table 5.5 shows that the recurrent budget allocated and the number of students in 2005/2006 for all Woredas went up, except for the Arada sub-city where the total number of students has declined. The decreasing trend in the number of students in Addis Ababa is a recent phenomena and this might result from the fact that Addis Ababa has already achieved more than 100 per cent GER and only children of offi cial school age go to school. Addis Ababa also has more private schools. As urban households tend to be better off than their rural counterparts, they are more likely to be able to afford private education.

Community contribution

As of 1994 public education in Ethiopia is free for Grades 1 to 10. To facilitate community participation, the Ministry of Education


50


(2002a and 2002b) has developed guidelines to organize education management, community participation and fi nancing education. The guidelines indicate the decentralized management functions to be carried out by all levels of the system, the role of the community and fi nancial allocation to schools. Based on these basic guidelines, regions have developed their own methods by focusing on specifi c areas such as fi nancing education, community participation and school administration. According to this guideline, schools are given a budget based on a block grant of non-salary recurrent budget, which relies on the number of students per classroom. In addition to this, all education sector development programmes designed so far have recognized and clearly indicated the importance of community participation in education fi nance and school affairs. In ESDP I, the Ministry of Education expressed the need for community participation in educational activities/projects including identifying and supervising work, managing and maintaining the fi nal product (Ministry of Education, 1999). However, the cost of participation and contribution and how to cover the fi nancial gap remains unclear. There is no organizational report on this aspect of education fi nance.

ESDP II mentions the need for increased community ownership. The community’s involvement becomes more important to mobilize resources after school fees have been abolished, as anything between 5 to 15 per cent of government spending can go on construction and other school costs. Based on these assumptions, the total amount that the community contributes was estimated at 247.3 million birr which is 1.6 per cent of the total expenditure (Ministry of Education, 1999).

Similarly ESDP III has recognized the community’s participation as articulated in the guidelines (Ministry of Education, 2002a and 2002b). ESDP III suggested that the community participates in constructing and managing schools, in raising money to cover part of non-salary expenditure and by getting involved in the day-to-day running of the school, all on a voluntary basis.

Documents and regional education bureau reports have noted that communities are playing an important role in all aspects of education from fundraising to management. Community involvement is likely to require different levels of participation and outcomes. A community’s contribution falls into the following categories:


51


• time or interest (an individual’s dedication to a school might range from participating largely to contributing skills and leading community participation efforts);

• labour (an individual may choose to donate physical time to renovate or construct classrooms, tutor and mentor children, serve on the PTA and actively participate in planning and managing schools);

• in kind (this is generally associated with community members providing resources for the construction of school facilities such as gardening tools, raw materials for construction, construction tools, equipment and machinery);

• most schools demand cash or money (monetary donations are generally most demanded at the early stages of school improvement efforts and are considered by many to be a less active form of contribution because relatively little time is involved).

In this way the school becomes a community centre, as all actors have a stake in the success of their children’s education.

By comparing various forms of participation, it is diffi cult to prioritize one over the other. Each form of participation represents a varying degree of quality and impact. Therefore, an increasing amount of community participation, in terms of quality and quantity, could lead to higher returns in schools. In general, communities contribute signifi cantly to fi nancing schools; this varies widely across regions, and raises questions concerning the possible negative effects of relying on community contributions for issues of equity. Community contributions across study regions are briefl y summarized below:

Amhara Region Communities have contributed 17 million birr in cash, 28.7 million

birr in the form of labour and 11.8 million birr in local materials (a total of 57.5 million birr), which is equivalent to 9.1 per cent of the total Woreda level spending for education in 2005/2006. This implies that communities are making remarkable efforts to educate their children.

OromiaBased on the ESDP Joint Review Mission report (2006),

community contributions are estimated at 10 per cent of the Woreda


52


education budget in 2005/2006, which is equivalent to six times the non-salary recurrent budget consolidated across all Woredas of the region.

SNNPRJRM (2006) estimated the community’s contribution to be

60.3 million birr in 2005/06 at the regional level, which is equivalent to 10 per cent of the total education budget of Woredas. The signifi cance of community contributions at the school level can be seen from data presented in Table 5.6, which compares community contributions with the support that schools received from the government education budget in 2004/2005 and 2005/2006.

Table 5.6 Community and government contribution to support schools

Region Number of schools for which data was

available

Community and government

contribution

Amount contributedin year

2004/2005 2005/2006Amhara 3 Community (cash, in kind and

labour)19,900.0 800.0

Government 8,065.0 51,689.0Oromia 18 Community (cash, in kind and

labour)365,842.7 344,567.7

Government 1,234,752.2 837,619.6SNNPR 10 Community (cash, in kind and

labour)225,073.8 116,454.9

Government 757,433.0 556,787.0Addis Ababa 9 Community (cash, in kind and

labour)153,785.0 322,210.4

Government 7,350,714.0 8,443,958.0

Source: Research team estimates from Ministry of Education data (2007) and ESDP Joint Review Mission Report (2006).

The data may not show the exact monetary value of contributions in labour and local materials. In some schools a community’s contribution is not recorded automatically. Sometimes it is diffi cult to separate the community and government contributions for the expansion or maintenance of school infrastructure from more regular contributions to school operating costs. However, the kind of comparison made and the available data is indicative of the real situation.


53


The data reveals a number of important factors with regard to school fi nancing. Firstly, data confi rms that school expectations of governmental non-salary inputs vary. Some schools are better at raising non-governmental resources, including community contributions. In some schools, both the government and community share the cost of constructing classes.

To analyze the extent of non-salary school fi nances, respondents were asked to list the source of such funds and to give an estimate of non-salary fi nancial support (Graph 5.4). Respondents were also asked to rank six predetermined sources of non-salary school funding.

Schools are mostly dependent on government funding for non-salary funding. Graph 5.4 shows that government allocation for non-salary school fi nance was ranked as major sources fi rst by 40.4 per cent, second by 20.5 per cent and third by 17.9 per cent of the of the total respondents. The community’s contribution was ranked second (28.2 per cent), fi rst (26.9 per cent) and third (20.5 per cent) by all respondents. Most respondents agreed that the community bears a signifi cant chunk of non-salary fi nancial sources. Table 5.6 also indicates that the government and the community contribute signifi cantly to non-salary fi nancial inputs.

Income generated by school activities as non-salary fi nance was ranked third, second and fi rst by 23.1 per cent, 21.2 per cent and 11.5 per cent of respondents respectively. NGO support was ranked as second, fourth and third as a source of non-salary funding by 21.8 per cent, 21.2 per cent and 18.6 per cent of respondents. Individual donations as a source of non-salary fi nance were ranked fi fth, sixth and fourth by 34 per cent, 28.2 per cent and 20.5 per cent of the respondents. Other sources of school non-salary fi nance were ranked sixth by 54.5 per cent of respondents.


54


Graph 5.4 Respondents’ ranking of the importance of non-salary school fi nancial sources

40.4

20.5

17.9

6.4

7.7

3.8

26.9

28.2

20.5

8.3

9

5.1

9

21.8

18.6

21.2

14.1

12.2

1.3

2.6

8.3

20.5

34

28.2

11.5

21.2

23.1

24.4

14.1

3.2

0.6

1.3

4.5

0 20 40 60 80 100 120

2nd

1st

3rd

4th

5th

6th

Ran

k

Percentage

Government allocation

Community contribution

NGO support

Individual donation

Income generated by school activities

Others

5.1

11.5

54.5

Source: Research team survey.

Although one can infer that the proportion of non-salary fi nance received varies from school to school, it is clear that they are not solely dependent on public resources. They can usually fi nd alternative ways of compensating or complementing government budget allocations.

As seen above, community contributions were ranked second as non-salary fi nancial income. Further effort was made to analyze the extent to which communities contributed to school funding. Out of all respondents, 31 per cent reported that non-salary fi nancial contributions made by the local community accounted for less than 15 per cent of total non-salary fi nancing. About 19.2 per cent of respondents replied that the community’s contribution was 15 to 29 per cent of non-salary fi nancing. This implies that more than 50 per cent of respondents believed community contributions accounted for more than 30 per cent of non-salary school costs. On the one hand about two quarters of respondents said that the community contributed 30 per cent or more of


55


the non-salary fi nancial expenditure. On the other hand, Table 5.4 and Table 5.5 show that non-salary fi nance was not suffi cient for schools. The failure of a compensation mechanism that was meant to offset scrapping school fees also explains this.

Respondents were asked to report the form of contribution schools received – their answers are refl ected in Table 5.7. The data revealed that community contribution continues to be very signifi cant when it comes to infrastructure expansion (construction), maintenance of the school and classroom and some contribution for operating costs. Respondents demonstrated that the community supported schools through labour (55 per cent) and cash (83 per cent). However, only one third of respondents thought that schools received support in kind; in other words, 66 per cent of respondents replied that schools do not receive a community’s support in kind. This might be because communities lack the needed materials and equipment. Schools may not encourage the community to provide support in kind. In addition, families with little to no education may feel uncomfortable supporting an alien institution, because it makes them feel inadequate or indifferent.

Communities have a sense of ownership over their schools, and their contributions cannot be estimated in fi nancial terms in relation to respondents’ views, even compared with Woreda budgets (Table 5.6). It is becoming common, particularly in remote areas, for communities to contribute towards the construction of primary schools; in some instances, they hire teachers locally and pay their salaries. Table 5.7 illustrates respondents’ reactions to the community’s cash, labour and in kind inputs towards schools.

Over 50 per cent of respondents identifi ed constructing and maintaining schools as two out of fi ve key activities, which required the community’s labour input. In the absence of technical assistance, schools or classes constructed locally by communities were reported to be of a low standard.

Although more than 60 per cent of respondents replied that community labour support does not serve for cleaning, farming and consultancy, about a quarter of respondents believed the contrary, and 36 per cent of respondents believe that community labour does serve on school farms. Various sources of information have shown that the


56


community contributed labour to construct and to maintain schools, for transportation, furniture and educational materials, farming schools, cleaning school compounds and rendering consultancy services.

Table 5.7 Forms of community contribution and its uses

Form of contribution

Respondents’response

in percentageon school support

Purposes community contribution served

Responses(%)

No Yes No YesSupport in labour

43.6 55.1 Construction 37.8 60.9Maintenance 44.9 54.5Cleaning 75.0 23.7Farming 63.5 35.9Consultancy 74.4 23.7

Support in kind 66.7 32.1 Construction materials 54.5 45.5Furniture 78.8 21.2Books 80.1 19.9Stationery 82.1 17.9Equipment and educational materials 84.0 16.0

Support in cash 16.0 82.7 Maintenance 27.6 71.8Expansion 20.6 39.9Purchase of furniture 9.6 59.0Purchase of books 6.6 67.9Purchase of stationery 51.3 48.1Purchase of equipment and educational materials

47.9 51.4

Salaries for contract workers 9.6 36.6Other operational costs 42.6 56.8


In kind contributions by the local community were not seen positively. Among a list of fi ve assumed activities or items for which in-kind support was used, only 45.5 per cent of respondents thought construction material could represent support in kind. This might be because schools are not currently undergoing construction. It might also be that the community is not capable of supporting schools. Few respondents (about 15 to 21 per cent) said that in kind support could take the form of furniture, books, stationary, equipment and educational


57


materials. However, they also noted that community support in kind is signifi cant, especially where low cost construction and materials were concerned.

Table 5.7 indicates that 51 to 72 per cent of respondents thought cash contributed by the community was mainly used for maintenance, purchasing furniture, equipment and educational materials and for other operational costs. More than a quarter of respondents believed that cash was used for contract workers’ salaries and that their contribution was misdirected. About 40 per cent and 48 per cent of respondents also believed that community cash was used for expansion and stationery purposes.

In general, implementation strategies under free education systems encourage communities, community-based organizations and NGOs to provide access to quality primary education with low cost construction and to make substantial use of local materials and labour. This in turn creates better opportunities for communities to contribute more in terms of labour and materials. Since this approach enables the government to establish schools closer to a child’s home, children will not drop out because of distance. Communities’ direct involvement in the school construction will also lead to their participation in school management. It is believed that such types of community participation are crucial for reducing drop-out rates that could be caused by both in-school and out-of-school factors, and are also important to making schools child friendly and better performers.

Administrative and institutional elements

Free schooling naturally entails rising expenditures in terms of classroom upgrading and construction, textbook procurement and distribution, salaries for some employees, system administration and other necessary accompanying measures. Financing options for adequate revenue substitution must be planned in the short- and medium-term and resources must be readily available to facilitate implementing coping mechanisms. Some administrative and institutional elements are necessary to mitigate the negative effects of free schooling. These include capacity building at the community level and procedures/strategies to mobilize the community to support schools and develop existing rules to make use of income generated


58


by schools. It is also important to assess whether the school’s nearest administrative structure has the capacity to mobilize resources, and to disburse available resources and to assist schools.

Table 5.8 portrays respondents’ views on how to create a supportive free schooling environment.

Table 5.8 Supportive environment to implement fee-free schooling

Supportive environment in place Respondents’ response (%)No Somewhat Yes

The community has the capacity to support schools. 39.1 45.5 14.7There are procedures/strategies to mobilize the community. 16.0 39.1 43.6There are existing rules that allow schools to utilize their income.

19.9 18.6 58.3

The Woreda/sub-city has the capacity to assist the schools. 32.1 39.7 26.3The Woreda/sub-city disburses materials and other resources to schools effi ciently.

24.4 42.3 30.8


The concept of capacity refers to resources such as money, materials and adequate manpower/staff availability, procedures and rules, skills, the community’s ability and that of the Woreda/sub-city to support schools in order to achieve desired goals.

Roughly 46 per cent of respondents believed that the community might be capable of supporting schools while 39 per cent did not. Only 15 per cent of respondents were confi dent that the community has the capacity to support them. What is paradoxical is that the community is making lots of efforts to support these schools although numerous respondents think the contrary. A study on rural households indicated that 22 per cent of children stopped going to school because of high opportunity costs and 68.4 per cent had to carry out household errands. This implies that quite a signifi cant number of households are unable to allocate resources for education (World Bank, 2006; Policy Human Resource Development, 1996). As in one Woreda cited by Joint Review Mission (2006), the number of dropouts increases when communities are asked to contribute more. This goes to show that the burdens of contribution on the local community must be taken into


59


consideration. Furthermore, it is important to assess how sustainable a community’s contribution is, as well as its ability to participate in poverty reduction.

There are some intervention programmes that assist communities, particularly poor and marginalized communities, who are unable to send their children to schools. To cite a few, in collaboration with development partners, efforts are underway to expand school-feeding programmes in areas where food is scarce and to support vulnerable and pastoral children. There are NGOs supporting schools with educational materials, school health programmes, clothing and educational materials for students from poor families, income schemes and seed money for poor parents for income generation.

More than 43 per cent of respondents agreed that mechanisms to mobilize the community existed, 39 per cent were uncertain, whereas 16 per cent said such mechanisms did not exist. Although a reasonable number of respondents believe procedures and strategies to mobilize the community exist, some respondents lacked information on this subject. Communities are participating in educational development activities. What remains unclear is how much we should expect from the local community, their limits and capacity. It is crucial to bear in mind how fair it is for poor communities to contribute to the education system; how far the community can keep up with contributions; and how to motivate and mobilize the community.

Out of all respondents, 58 per cent said there were rules for school-level income generation. The respondents probably thought that government fi nancial regulations allow schools to use the income they generated, as the revenue is included in the budgetary system at the local level. In particular, SNNPR has a guideline that entitles schools to generate and to keep revenue. Around 20 per cent of respondents did not know these regulations existed, while 19 per cent thought they probably existed. Other regions have similar procedures, where schools are supposed to return revenues they generate to the treasury.

Free schooling is a shock to the education system, and therefore must be planned carefully to account for logistical backlogs, delays and to ensure that funds are managed and implemented transparently. Decentralized structures must be strengthened to ensure that resources,


60


supplies and budgets fl ow properly and to build schools’ capacity in education, fi nancial planning, budgeting, procurement and management. Free schooling must be accompanied by accountability methods and monitoring procedures. In this regard the capacity and effi ciency of the Woredas/sub-cities in assisting schools and distributing educational materials and other resources requires a supportive environment to cope with the challenges of free schooling.

Only 26 per cent and 31 per cent of the respondents agreed that Woreda/sub-city were capable and effi cient. Roughly 40 per cent of respondents ‘somewhat’ acknowledged this. This implies that a signifi cant number of respondents were not sure about the capacity and effi ciency of the Woreda/sub-city level. Meanwhile, about 32 per cent and 24 per cent of respondents reported that Woreda/sub-city level were capable of supporting schools respectively. This implies that there is little information on coping mechanisms within the challenging fi eld of free schooling and on the lessons learned from this policy.

Graph 5.4 shows that school income-generating activities were ranked as a large source of funding for non-salary fi nancing. Various school revenue-generating schemes were assessed. Respondents were then asked to rate fi ve schemes and activities. The responses were gathered using the fi ve point Likert1 type scales of very low (1), low (2), medium (3), high (4), very high (5). The results are listed in Table 5.9. The mean values achieved from the data analysis were interpreted as ‘low’ for scales 1 to 2, ‘medium’ for between 2 and 3, and ‘high’ for above 3. All mean values that were less than 2 were taken as weaknesses (threats) and mean values above 2 were thought of as strengths (opportunities).

Table 5.9 demonstrates that cultural events and renting out classes and halls were rated as ‘low’ with weighted mean values of 1.47 and 1.57 respectively. This implies that both of these were not considered acceptable revenue-generating schemes. In rural areas it is diffi cult to rent school classrooms and halls; however, in some urban schools the scheme could serve as a source of revenue.

1. A Likert scale is a psychometric scale commonly used in survey research. Respondents specify their level of agreement to a statement. Likert, R. 1932. “A technique for the measurement of attitudes”. In: Archives of Psychology 140: 1–55.


61


Table 5.9 Income generation activities in rating scale

Activities Rating ScaleVery low

(1)Low(2)

Medium(3)

High(4)

Very high(5)

Weighted mean average

Cultural events 59 27 15 13 4 1.47Renting classes and halls 54 22 15 22 3 1.57School farms 42 23 22 30 28 2.65Renting farmland 31 25 28 26 18 2.30Product sale 36 35 23 21 19 2.26


School farms, renting farmland and product sales as activities or schemes for school income were rated medium with mean values of 2.65, 2.30 and 2.26. This implies that a reasonable number of schools employ such mechanisms to generate income. Generally speaking, the schemes were not the best income-generation activities. This might have been because some regional schools were not entitled to use the revenue they generated, which could have deterred them from taking part in fundraising activities. Conversely some regional schools might be reluctant to admit that they have successful income-generating methods, in case this triggers envy and they lose the fi nancial backing of Woredas.


63

6. THE EFFECTS OF FEE-FREE SCHOOLING

Some developing countries have been able to increase primary education enrolment by taking on a variety of measures. One of the most important policy measures that accounts for these increased enrolments has been making primary education free. Many studies have shown that poor households are most affected by free education. Schooling for Grades 1 to 10 has been free in Ethiopia for over a decade. Data was gathered to refl ect the various effects of abolishing primary school fees.

Table 6.1 Agreement scale on assumed effect of fee-free schooling

Assumed Impact Agreement scale (%) Mean Standard deviation

Correlation

Strongly disagree

Disagree Don’t know

Agree Strongly agree

Missing

Enrolment increased 1 8 2 39 49 1 4.26 0.99 0.43 Dropouts decreased 5 15 7 51 20 2 3.60 1.21 0.44 Lack of school fi nance decreased

12 38 8 26 15 1 2.92 1.35 - 0.13

Income-generation schemes increased

23 34 9 21 12 1 2.60 1.38 0.20

Government funding increased

13 32 8 29 14 3 2.89 1.41 0.21

Poor children’s access increased

6 15 6 35 37 1 3.77 1.31 0.34

Community and parents participation increased

6 10 4 54 26 1 3.83 1.13 0.47

Average mean 3.41


Respondents were asked to rate seven supposed effects of free schooling based on how educational reform was implemented and sustained. Responses were measured using a six-point indicator: strongly disagree, disagree, don’t know, agree, strongly agree and missing. Table 6.1 displays the pattern of responses for each of the seven areas after fee-free education came into place. These are: enrolment rates; drop-out rates; school fi nances; alternative income-generation schemes; government funding for schools; changes in poor people’s


64


access to school, coupled with levels of government support; the extent to which community and parental participation increased.

Gross enrolment rate

About 88 per cent of respondents thought that free schooling impacted a rise in enrolment. Their responses correlate with the increase in the gross enrolment rate (GER) as illustrated in Table 5.3 and Table 5.4. This trend is also clearly demonstrated in Graph 6.1.

Data was collected of enrolment fi gures from sample schools over the past fi ve years (2002/2003 to 2006/2007). The average annual growth was 1.1 per cent for schools in Addis Ababa, 4.7 per cent in Amhara, 4.5 per cent in SNNPR and 5.6 per cent in Oromia. The net enrolment rate (NER) changed from 36 per cent in 1997/1998 to 77.5 per cent in 2005/2006 (Table 5.4). However, the rate varies in most schools and in all regions. Both GER and NER have increased over the past few years.

National GER levels increased from 41.8 per cent in 1997/1998 to 91.3 per cent in 2005/2006. Similarly for Amhara, Oromia and SNNPR, the GER trend shows an increase of 51.8, 50.2 and 29.9 percentage points respectively between 1997/1998 and 2005/2006. For Addis Ababa the GER trend has shown an increase of 68.2 percentage points between 1997/1998 and 2004/2005. It then declined by 1.7 percentage points from 2004/2005 to 2005/2006. This declining trend for Addis Ababa is due to a decrease in over-age children. Overall, these four regions cover 83 per cent of enrolment in the country. Graph 6.1 shows that the GER gap between the national average and that of Oromia, Amhara and SNNPR was small, at 1.5, 4.9 and 5.7 percentage points respectively in 2005/06, whereas the GER for Addis Ababa was 57.2 percentage points higher than the national average. Similarly, there was a big GER gap between Addis Ababa and the other three regions. This implies the existence of regional disparity, since the national average is the aggregate of the overall enrolment rate in the country. Although the effects of free schooling are diffi cult to separate completely from other improvements that took place during this period (decentralization, curriculum reform, teacher training, school construction, provision of textbooks, use of local languages and


65

The effects of fee-free schooling

school-feeding programmes), the interviews supported the positive infl uence of free schooling on enrolment (see details of aggregation and regression analysis in Tables 5.8 and 6.1).

Graph 6.1 Trends in gross enrolment rates (GER) for primary education from 1997/1998 – 2005/2006

Incr

ease

by

perc

enta

ge p

oint

s

100

80

60

40

20

0

120

140

160

NationalAddis Ababa

AmharaOromiaSNNPR

Year 19

97/19

98

1998

/1999

1999

/2000

2000

/2001

2001

/2002

2001

/2003

2003

/2004

2004

/2005

2005

/2006

Source: Research team estimates based on Ministry of Education data (2007).

Girls’ enrolment rate

Some people claim that eliminating school fees has contributed to higher girls’ enrolment. Many studies have shown that fees can burden poor families and deter enrolment and learning. In poor and rural areas the work of girls is an important supplement to household income, thus sending girls to school poses a threat. The opportunity cost for households is high, and therefore the direct cost incurred by them is a signifi cant obstacle. Abolishing school fees makes it easier and less costly for these girls to enrol and leads to a dramatic increase in the number of children attending school. Graph 6.2 depicts the Gender Parity Index (GPI) for primary education at the national level, for Amhara, Oromia, SNNPRR and Addis Ababa. The GPI is 1 for equal


66


enrolment fi gures of boys and girls and less than 1 when less girls are enrolled.

Graph 6.2 Trends in the Gender Parity Index (GPI) from 1997/1998 to 2005/2006

Year

1997

/1998

1998

/1999

1999

/2000

2000

/2001

2001

/2002

2001

/2003

2003

/2004

2004

/2005

2005

/2006

0.2

02

0.4

0.6

0.8

1.2

1

1.4

GPI

National

Oromia

Addis Ababa

Amhara

SNNPR


Gender disparity in primary education stems fi rst and foremost from disparities in enrolment in the fi rst grade. Graph 6.2 shows that the GPI for Addis Ababa, Oromia and SNNPR, as well as the national fi gure, increased slightly from 1997/1998 to 2005/2006. This implies that the gap between boys’ and girls’ enrolment is getting narrower over time. For Addis Ababa the data shows that the GPI has gone to slightly above 1 from 2002/2003 to 2005/2006, meaning that more girls enrolled than boys. At the national level, the GPI has risen from 0.6 in 1997/1998 to 0.84 in 2005/2006, which indicates that girls’ participation was still lower than boys’ during this period.

Although for Amhara the GPI was greater than national statistics between 1997/1998 and 2005/2006, this did vary. GPI declined from 1 in 2000/2001 to 0.86 in 2001/2002, with some girls dropping out of school or fewer girls than boys enrolling in 2001/2002. The GPI


67


is lower for Oromia and SNNPR compared to national statistics. This indicates that more boys went to school than girls between 1997/1998 and 2005/2006. Graph 6.2 shows that there is a growing enrolment trend for girls, which has narrowed the gender gap at the regional and national levels. Ethiopian authorities, schools and parents recognize that one of the key factors for improved equitable access to education is free schooling. In general, despite on-going efforts and favourable conditions such as the elimination of school fees, gender gaps still persist in the education system.

One of the positive effects of abolishing school fees by approximately 10 to 15 birr per student per annum was clearly refl ected in an enrolment increase since 1995/1996. This is partly because free schooling has provided greater access to primary education and enhanced equity. The data showed that free schooling has increased primary school enrolment from less than 30 per cent in 1994 to more than 90 per cent in 2005/2006.

Other successful policy interventions aimed at increasing enrolment have also contributed to this. For instance, major efforts have been made to correct access to education, rebalancing it in favour of disadvantaged social groups, poor families and those from rural areas. Such actions led to an increased number of schools, improved investments in education, political support and commitments and awareness-raising. They also mobilized the community. These contributed to a dramatic increase in primary school enrolment.

In addition to this, there are also factors such as implementing decentralized educational management, curriculum reform and introducing local languages (mother tongue) in primary schools that contributed to this. A shift in demand for education among households and individuals most likely to invest in education may have also caused this. The rate of return to education in Ethiopia was about 6 per cent in the early 1990s (Krishnan 1996). Recent studies on the demand for education based on surveys conducted in early 2001 show that returns have increased by up to 12 per cent (World Bank, 2005). These may have encouraged many households to make long-term investments in educating their children. This shift in demand is unlikely to cause a rise in enrolment. Since education’s opportunity costs remain vast, particularly for rural poor households, they might challenge future


68


trends. Widespread child labour has helped Ethiopians understand notions of rates of return on primary education and related family choices on schooling or drop-out rates. It is common for a family to send one child to school in the morning, and another in the afternoon.

Although free schooling has positively contributed to increasing the enrolment of boys and girls, 20 per cent of school-aged children are still out of school, while the country is striving for universal primary education (UPE) by 2015. A World Bank (2006) study indicates that 47 per cent of parents replied by referring to high opportunity costs of sending their children to school and about 16 per cent said their children were not in school because they had to help with domestic chores to supplement their family’s income. The inadequacy of a mitigation strategy to narrow schools’ fi nancial gaps might challenge UPE achievement.

Drop-out rate

Table 6.1 looks at whether or not fee-free schooling has contributed to a decrease in drop-out rates. About 71 per cent of respondents agreed or strongly agreed with the indicated effect. A rise in access to schooling from 10,752 in 1997/1998 to 19,412 in 2005/2006 (Ministry of Education, 2007) increased the enrolment rate by 80 per cent. The annual growth rate was 7.3 per cent over the period with decreases in dropouts contributing to increased enrolments. In agreement with respondents’ opinion, data collected from sample schools showed that the drop-out rate went down for the years 2002/2003 to 2006/2007 – in Oromia (from 13.7 per cent to 9.6 per cent), Amhara (from 10.6 per cent to 4.4 per cent), SNNPR (from 13.7 per cent 6.6 per cent) and Addis Ababa (from 9.3 per cent to 6.4 per cent). Similarly, reviewed documents at the national and regional levels indicated a variation in drop-out trends, as seen in Graph 6.3.

As depicted in Graph 6.3, the drop-out rate at the primary school level went up from 12 per cent in 1997/1998 to 19 per cent in 1998/1999. There was a slight reduction from 1998/1999 to 2001/2002. This increased to 19.2 per cent in 2002/2003, and then showed a decreasing trend. Various factors contribute to high drop-out rates, including household poverty and socio-cultural issues. For poor households,


69


sending children to school incurs high opportunity costs, which makes it diffi cult for them to allocate resources for education. Eliminating school fees will favour poor households sending their children to school. One could argue that free schooling creates an opportunity for a community to participate in school affairs and thus reduces drop-out rates. Although the data indicates that drop-out rates are generally high, the trend seems to be decreasing, as a result of fee-free schooling.

Graph 6.3 Drop-out rate in primary education from 1997/1998 to 2004/2005

10

5

0

15

20

25

1997/1998 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005

Year

Rate


School fi nances

Respondents were also asked if they thought fee-free schooling contributed to a lack of school fi nances. About 50 per cent of respondents disagreed or strongly disagreed. They might have thought that communities reduced the fi nancial discrepancy by fi lling in the gap. Whereas 41 per cent of respondents agreed or strongly agreed that fee free schooling reduced available fi nances.

Alternative income-generation schemes

Respondents were also asked whether income-generation schemes increased for schools – 57 per cent disagreed or strongly disagreed,


70


while 33 per cent agreed or strongly agreed. Most people thought that income-generation schemes were not in place to compensate for fi nancial shortfalls resulting from fee-free schooling.

When asked whether government funding had increased, 45 per cent of respondents did not agree, while 43 per cent said it had increased to make up for abolished school fees. Those who agreed might have thought that building more schools and having more teachers indicated more government money to make up for fee-free schools. Those who disagreed thought that material and cash resources were not being invested in schools. This led in recent years to a reassessment of the policy that fee-free schooling be replaced by annual block grants, given to regions then Woredas, and then to schools. The block grant is meant to ensure that schools have minimum resources to carry out teaching processes and equitable resource distribution, and to enhance the community’s sense of ownership over schools.

The purpose of a block grant is to provide schools with regular money that corresponds with enrolment levels and to cover the school’s operational costs. Even if the education sector at the Woreda level is receiving the largest chunk of block grants, varying from 33 per cent to 60 per cent, the largest part of this is for teachers’ salaries and the non-salary budget per student is small. Block grants at the school level vary from region to region. For example, in Addis Ababa, schools are cost centres and have individual recurrent budgets for items like teachers’ salaries and operating costs. In Oromia primary schools, they do not know their budgets even if they are informed in advance. The Woreda education offi ce provides schools with in-kind inputs, such as furniture and equipment, instead of allocating fi nancial resources for individual schools. A lack of adequate resources for each school, or a school’s lack of capacity to manage resources might explain such decisions. This implies that schools did not receive any block grants and that the decision-making authority for managing fi nance was perceived to be extremely weak. In the Amhara region and SNNPR, efforts were made to provide schools with some cash from the Woreda education offi ces. This however, was not according to proposed standards.


71

7. CHANGES IN POOR CHILDREN’S ACCESS TO EDUCATION AND IN LEVELS OF GOVERNMENT SUPPORT

For the fi nal two impacts demonstrated in Table 6.1, the majority of respondents agreed or strongly agreed that access for poor children had increased (72 per cent), and that community and parents participation increased respectively (80 per cent) due to free schooling. There is data to support the idea that abolishing school fees increased enrolment levels among poor households, rural communities and vulnerable children.

As indicated in Table 6.1, a signifi cant number of respondents found that government funding and school income-generation schemes had not increased suffi ciently to compensate for abolishing fees. With the exception of school fi nancing, as shown in Table 6.1, the impacts positively correlate with the abolition of school fees. The counter argument is that unless the elimination of fees is carefully introduced and supported with a substantial increase in revenue, it may have negative consequences for its target benefi ciaries.

Quality impact

Another concern was the effect of fee-free schooling on the quality and effi ciency of education. Soon after school fees are abolished enrolments increase, stretching the available supply of schools, teachers and educational materials. Despite the tremendous positive access and equity schooling might bring, free schooling has challenged the quality and effi ciency of education. Abolishing fees may contribute to a lack of resources, thus deterring the expansion of primary education infrastructure (schools with adequate classrooms and facilities). Data were collected from sample schools on a number of students, teachers and classrooms to assess the situation by considering two quality indicators – pupil-section ratio2 (PSR) and pupil-teacher ratio (PTR).

2. There can be several sections of pupils within one classroom that the teacher has to attend to separately.


72


Except for Addis Ababa, sample schools for the rest of PSR increased from 2002/2003 to 2006/2007. The average PSR for schools in Oromia increased from 45:1 in 2002/2003 to 71:1 in 2006/2007, for Amhara it increased from 48:1 in 2002/2003 to 68:1 in 2006/2007, and for SNNPR it increased from 71:1 in 2002/2003 to 80:1 in 2006/2007. For Addis Ababa, PSR decreased from 60:1 in 2002/2003 to 56:1 in 2006/2007. The average class size in these primary schools is 50. It is quite clear that children retain and learn less when schools are overcrowded, noisy and unsafe.

Where PTR is concerned, the number and quantity of teachers are critical to assess the quality of primary education. The average PTR for sample schools in 2002/2003 and in 2006/2007, respectively for Oromia was 55:1 and 66:1; for Amhara it was 52:1 and 55:1; for SNNPR it was 56:1 and 58:1; for Addis Ababa it was 55:1 and 48:1. In all schools considered, PTR was above the expected standard of 50:1.

The same indicators (PTR and PSR) were used to review the effects and the data compiled for primary education at the national level. Graph 7.1 illustrates this.

As Graph 7.1 shows, between 1997/1998 and 2005/2006, when education was free, the PTR changed from 47:1 to 66:1 (2004/2005) and then slightly lowered to 62:1 (2005/2006). The PTR measures the total supply of teachers a country provides in relation to the size of the pupil population. The ratio of students to teaching staff is an important indicator of the resources countries devote to education. The rationale is that the lower the PTR, the higher the chance of contact between teachers and pupils, which would thus guide and assist pupils individually. High PTR suggests that countries have too few teachers, that teachers are most likely overstretched and that the quality of teaching and learning is suffering. A low PTR may indicate that teachers are not utilized that much, which demonstrates the system’s ineffi ciency.


73

Changes in poor children’s access to education and levels of government support

Graph 7.1 Trends in pupil-teacher ratio and pupil-section ratio for primary schools

Perc

enta

ges

Year 19

97/19

98

1998

/1999

1999

/2000

2000

/2001

2001

/2002

2001

/2003

2003

/2004

2004

/2005

2005

/2006

0

10

20

30

40

50

60

70

80

PSRPTR

Source: Author’s compilation of data from Ministry of Education (2007) and ESDP Joint Review Mission Report (2006).

The PSR, which increased from 60:1 in 1997/1998 to 74:1 in 2003/2004 and then lowered slightly to 69:1 in 2005/2006, indicates that the number of schools and classrooms were not in a position to accommodate the increasing rate of enrolment. Class sizes affect students’ ability to retain knowledge, as larger class sizes hinder effective communication between teachers and students. As enrolment grew faster, the number of teachers and classrooms did not match. It seems diffi cult to achieve an adequate balance between service coverage and quality. As primary school enrolment increased rapidly, the PTR and PSR have been increasing steadily and exceeding standards set for the level, negatively affecting the quality of education.

The consequences of fee-free schooling could be positive or negative. One key objective of free schooling was to increase access to an equitable primary education. However, an upsurge in enrolment and its consequences may have created a strain on the quality and effi ciency of the education system. The critical question is how schools are attempting to address the effects of free schooling. One possible


74


mechanism is to assess priorities that are set by schools, which are presumably (directly or indirectly) responding to the effect of free schooling. Respondents were asked to report on their school priorities as summarized in Table 7.1.

Table 7.1 Future school priorities

School priorities Percentage of respondents ranking priorities by position

1st 2nd 3rd 4th 5thBuilding more classrooms/improving and expanding school facilities

45.4 16.6 12.8 5.8 10.9

Training teachers 9.0 11.1 10.6 11.5 11.5Recruiting teachers 7.7 5.1 10.3 11.3 11.1Textbooks and other educational materials 24.4 33.7 19.6 15.4 5.7Transportation 3.2 3.2 7.7 1.9 12.3Teachers residence 9.4 8.5 10 9.5 11.5Discipline/safety 16.7 11.7 15.8 27.3 18.5Income generation to support school fi nance 18.6 13.5 29.2 17.8 12.9Promotion to secondary school 7.7 6.4 1.9 2.6 14.5


From the list of nine items provided to respondents as refl ected in Table 7.1, 45.4 per cent of them said that building more classrooms or improving and expanding school facilities were the main priority for their schools. Respondents sensed that schools do not have adequate space and facilities to accommodate growing enrolment as classrooms get crowded and the PSR rises. Large numbers of pupils in a classroom inhibit teacher-pupil interaction and consequently hamper quality.

Just over 30 per cent of those who responded ranked textbooks and other educational materials as a school’s second priority. They felt that a shortage in textbooks did not match up with rising enrolments, fearing this might also lead to a poor quality of education. Pupils’ access to textbooks is important to how and what they learn. Adequate textbook supplies and educational materials are a signifi cant measure of good quality education.

Focusing on income generation to support school fi nances was ranked third by 29.2 per cent of respondents. Schools require more fi nancial resources to meet growing enrolment needs and to support


75

Changes in poor children’s access to education and levels of government support

the teaching and learning processes. Disciplinary and safety concerns were ranked fourth by 27.3 per cent of respondents. They sensed that increasing enrolment or overcrowded classes caused disciplinary problems in schools. The items ranked as the top four by respondents were the consequence of free schooling

Many respondents recognized that fees could be a burden on poor households, often deterring children from learning and enrolling. Most of them said that increasing enrolment was a positive consequence of free schooling. Others said that abolishing school fees allowed poor families to send their children to school. Most respondents said that fee-free schooling has worsened the quality and effi ciency of schooling.


77

8. CONCLUSIONS AND RECOMMENDATIONS

Many studies from around the world have documented the burden of school fees, particularly for poor families. It has deterred enrolment and learning. Free primary education grants those who cannot afford to pay school fees and those who can, access to primary education. Investing in good quality primary education is a cornerstone for poverty reduction strategies.

Conclusions

Thus the intention of the 1994 Education and Training Policy of Ethiopia was to mitigate the negative effects of fees on access to public primary schools. This study led to the following fi ndings and conclusions:

1) Free schooling was announced as a political slogan. It was implemented without much prior planning for results and implications, or test/provisional support for schools. Reform was introduced as part of wider reforms to promote other changes such decentralized decision-making, curriculum reform, improving access and equity, and teacher training. However, the momentum was created and was further enhanced by the traditionally strong community spirit of Ethiopians.

2) Free primary schooling has allowed poor households more access to equitable education. It has increased enrolment by attracting more children to schools. Reforms dramatically increased enrolment. Primary education enrolment measured in GER was less than 30 before 1995/1996. It then doubled from 1997/1998 to 2005/2006. Poor and rural communities have largely benefi ted from this. Girls’ enrolment has also enormously increased over the period and the gap between girls’ and boys’ enrolment has narrowed slightly. On top of this, the drop-out rate has shown a slowing trend. Under the free system, poor households will not have to pay for school fees.

3) Implementation strategies under free schooling have created better opportunities for communities to contribute more and to


78


participate in school affairs, which is a step towards creating a sense of ownership and improving school performance.

4) Physical facilities continue to expand with the help of government funding, donors and community contributions. The government has increased educational spending by 5 per cent of GDP or by 15 to 20 per cent of the national budget. This is to reduce the fi nancial gap created by abolishing fees, and to compensate the effects of fi nancial shortage. The community has also participated and contributed labour, cash and in-kind support for schools on a voluntary basis. The total budget allocated for the education sector has been increased in absolute terms with a 15.4 per cent annual growth. The average share of primary education fi nancing in ESDP I was 60 per cent, while it dropped to 42 per cent and 41 per cent in ESDP II and in the fi rst year of ESDP III. In real terms, the unit cost (recurrent budget) at the primary level indicated a decreasing trend, although it rose from 2004/2005 to 2005/2006 to 166.4 birr in current prices. As enrolments increased, more of the share went to teachers’ salaries while the non-salary budget per student remained small.

5) A supportive environment is needed to mitigate the negative effects of free schooling, such as capacity development at community and Woreda/sub-city level, procedures/strategies to mobilize communities to support schools and the implementation of rules to make use of income generated by schools.

6) Mechanisms to transfer school revenues to replace fees were put in place through annual block grants from regions to Woredas and then to individual schools. At the Woreda level the education sector is receiving the largest amount of the block grant, which varies from 33 per cent to 60 per cent. However, implementing the block grant at the school level varies from region to region. Some regions like Amhara and SNNPR got some money from Woreda education offi ces, which was not as much as required. In Addis Ababa schools are cost centres, whereas in Oromia schools did not receive any block grants and the decision-making authority that manages fi nance is said to be extremely very weak. On top of these, the base level of allocating block grants to schools targets the number of students, particularly average numbers, which


79

Conclusions and recommendations

implies an ideal earmarked sum of 10 birr (fi rst cycle primary), 15 birr (second cycle primary), 20 birr (fi rst cycle secondary) and 50 birr (second cycle secondary).

7) Although high enrolment rates have improved access to primary education, the budget allocation is far behind. This demonstrates that fi nancing the education system is a critical challenge. The rapid infl ux of pupils created strains and has led to the deterioration of the quality and effi ciency of education.

Recommendations

Based on these conclusions, we must consider the following standards to maintain the quality and standards of schools:

1) Block grants should consider students that need extra help, including those from low-income families, disabled children and pupils with academic diffi culties. It is important to identify resources to ensure teaching standards and to gauge the additional amount required for each student, depending on their needs.

2) Many schools will have to improve their performance by reallocating resources. According to this study, certain schools have not been receiving block grants. This has prevented them from improving their performance. This is why Woredas/sub-cities need to provide schools with a lump sum or a block grant, which they could reallocate towards more effective performance strategies.

3) Rewarding schools that achieve desired results helps to reinforce goals and standards. In this regard, school-based performance incentives would hold schools that rely on block grants and fi nancing accountable for their results. Performance awards are usually offered to groups (such as school boards) or individuals (such as headteachers). One way to implement them would be by offering extra money to schools that have improved students’ performance over the academic year. Achievements would have to be measured and standardized. Such initiatives should also help schools boost or improve performance and quality. The specifi cities of such an initiative might be complex and require careful attention to technical issues. Therefore, creating school fi nancial structures in line with a standard education reform is an important step for educational policy-makers and decision-


80


makers. Moreover, the federal government should intervene to rescue governments that cannot afford to provide schools with adequate funding and standard levels of education.

Five policy issues must be addressed:

1) It is diffi cult to achieve an adequate balance between service coverage and quality in relation to the supply of schools, teachers and educational material. A high pupil-teacher ratio (PTR) and pupil-section ratio (PSR) hampered the quality and effi ciency of the education system. The focus now needs to shift towards improving the quality of primary education. Some key measures would be to minimize the PSR by constructing classrooms and to minimize the PTR by recruiting and training teachers. Financing teaching and learning materials and increasing non-salary recurrent expenditure per student would also help to maintain quality.

2) School fees cannot be abolished without bearing in mind an alternative source of income. It is crucial to help Woredas/sub-cities develop their capacity to mobilize additional funds for education.

3) How can school fi nancing be made sustainable? A deteriorating economic situation and reducing the budget could reverse the benefi ts of abolishing school fees. The community can help narrow the fi nancial gap and it is therefore important to assess how to do this in a fee-free context. It is important to assess how much the community can afford to contribute and to motivate them to mobilize their assistance.

4) It is important to establish how the community can participate in school matters. This can include providing resources, helping children with homework, taking part in school meetings and assemblies, consulting on school issues and taking part in teacher training. Although these categories oversimplify the true nature of the relationship between the community members and schools, they serve as a useful tool to categorize different participation levels. In the fi rst stages of participation, community members are largely disconnected from the school decision-making. However, in the latter stages, community members assume leadership roles and infl uence the choices made by school administrators. The more the community participates, the more proactive it becomes. The most


81

Conclusions and recommendations

commonly promoted form of participation in poor or marginalized schools focuses on fi nancial contributions. These donations are essential for a safe and healthy school environment, especially when government support is limited. Simply contributing money, however, is a highly passive form of participation that does not necessarily carry decision-making power. Instead of addressing the root problems of a weak school system, it merely sustains them. Additionally, the fi nancial contribution of poor communities has very little impact on school quality in the long term, unless other forms of higher-level participation are also adopted.

5) Net enrolment ratios (NER) also need to be considered as approximately 20 per cent of school-aged children have never enrolled. This includes children from poor, disadvantaged and vulnerable backgrounds. Many school children also drop out because their families cannot afford the costs, and due to the hostile learning environment and poor disciplinary methods. Some countries provide targeted subsidies to families to offset personal and other costs; others provide bursaries and stipends to enable poor families to overcome indirect opportunity costs (in terms of losing their contribution to the household economy) of attending school. As such strategies are not comprehensive, the donor community, NGOs and the local community must secure additional resources.


83

REFERENCES

Al-Samarrai, S.; Hassan Z. 2000. Abolishing school fees in Malawi: the impact on education access and equity. Washington DC: World Bank.

Bentaouett, R. 2006. “School fees”. Background paper prepared for the Education for All Global Monitoring Report. Literacy for Life 2006. Oxford: Oxford University Press. Retrieved 10 February 2009 from:

http://portal.unesco.org/education/en/ev.php-URL_ID=43180&URL_DO=DO_TOPIC&URL_SECTION=201.html

Bentaouett, R.; Burnett, N. 2004. User fees in primary education. Human Development Network Education Sector. Washington DC: World Bank.

Boyle, S.; Brock, A.; Mace, J.; Sibbons, M. 2002. Reaching the poor: the ‘costs’ of spending children to school. A six country comparative study. Education Research Report, 47. London: UK Department for International Development.

Bray, M. 1999. Community partnerships in education: dimensions, variations and implications. EFA thematic study. Paris: UNESCO.

Bray, M. 2006a. The shadow education system: private tutoring and its implications for planners. Paris: IIEP-UNESCO.

Bray, M. 2006b. “Private supplementary tutoring: comparative perspectives on patterns and implications”. In: Compare: A Journal of Comparative Education, (36)4, 515-30.

ESDP Joint Review Mission. 2006. Ethiopia: education sector development programme III. Joint review mission 2006. Retrieved 28 January 2009 from:

www.dagethiopia.org

Krishnan, P. 1996. Private and social rates of returns to schooling. PHRD study 9. Centre for the Study of African Economies, University of Oxford. Oxford: Oxford University Press.


http://portal.unesco.org/education/en/ev.php-URL_

http://www.dagethiopia.org

References

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Ministry of Education. 1999. Education sector development program action plan I. Addis Ababa: Central Printing Press. Retrieved 28 January 2009 from:

www.moe.gov.et/download/EducationSeactorProjects.aspx Ministry of Education. 2002a. Education sector development program

action plan II. Addis Ababa: United Printers Plc.Ministry of Education. 2002b. Organization of educational management,

community participation and education fi nance. Addis Ababa: EMPDA.

Ministry of Education. 2007. Education statistics annual abstract 1998 E.C./2005-2006 G.C. Addis Ababa: Ministry of Education. Retrieved 28 January 2009 from:

www.moe.gov.et/download/Educational_Statistics.aspx (All previous annual abstracts also available from this page).

National Democratic Revolution of Ethiopia. 1976. Programme of the National Democratic Revolution of Ethiopia. Ethiopia: National Democratic Revolution.

Pankhurst, R. 1962. “The foundation of education, printing, newspapers, book production, libraries and literacy in Ethiopia”. Ethiopian Observer, (6)3.

Pankhurst, S. (Ed.) 1958. “History of Ethiopian Schools”, Ethiopian Observer, (2)4.

Plank, D. 2007. School fees and education for all: is abolition the answer? EQUIP2 Project Working Paper. Academy for Educational Development. Washington DC: USAID.

Policy Human Resource Development.1996. Education sector review, synthesis and summary. Ethiopian social sector studies. Addis Ababa: Commercial Printing Enterprise.

Psacharopoulos, G.; Woodhall, M. 1985. Education for development: an analysis of development choices. Baltimore: Johns Hopkins University Press.

Rose, P. 2002. Out-of-school children in Ethiopia. Input to the joint review mission of the education sector development programme II. Report for DFID Ethiopia. Addis Ababa: UK Department for International Development.


http://www.moe.gov.et/download/EducationSeactorProjects.aspx

http://www.moe.gov.et/download/Educational_Statistics.aspx

References

85

Schaffner, J. 2004. The determinants of schooling investments among primary school-aged children in Ethiopia. Washington DC: World Bank.

School Fee Abolition Initiative. 2006. Free schooling initiative workshop: building on what we know and defi ning sustained support. Background paper. Nairobi: UNICEF.

Tekeste, N.1990. The crises of Ethiopian education. Some implication for nation building. Uppsala: Reprocentralen HSC.

Transitional Government of Ethiopia. 1993. Education and training policy (ETP). Addis Ababa: Educational Materials Production and Distribution Agency.

Tomasevski, K. 2003. School fees as a hindrance to universalizing primary education. Background paper prepared for the Education for All Global Monitoring Report 2003/4. Gender and education for all: the leap to equality. Ref: 2004/ED/EFA/MRT/PI/73. Oxford: Oxford University Press.

UNESCO. 2007. EFA Global Monitoring Report 2008. Education for all by 2015: will we make it? Oxford: Oxford University Press.

World Bank. 2008. Abolishing school fees in Africa: lessons learned in Ethiopia, Ghana, Kenya and Mozambique. Washington DC: World Bank.

World Bank. 2005. Education in Ethiopia: strengthening the foundation for sustainable progress. Report 28037-ET. Washington DC: World Bank.

World Bank. 2004. Ethiopia public expenditure review. The emerging challenge. Volume II: medium-term trends and recent developments in public spending. Washington DC: World Bank.

World Bank. 2006. Ethiopia: review of public fi nance. Washington DC: World Bank.

World Bank. 2007. Ethiopia enhancing human development outcomes through decentralized service delivery. Report No. 32675-ET. Human development department, Africa region. Washington DC: World Bank.


87

ANNEX 1

Questionnaire for School Principals, Parent-Teacher Association (PTA) and Kebele Education and Training Board (KETB)

Dear Colleague,

Eliminating school fees for Grades1 to 10 to reduce the fi nancial burden on parents is one of the reforms outlined in the Government’s 1994 Education and Training Sector Policy. This was fi rst implemented over a decade ago. A study entitled “The effect of abolishing school fees and families and community contribution to government primary schools (Grades 1-8) in some selected regions of Ethiopia” was designed. The effects can be analyzed after an assessment of various documents. Therefore, you are kindly requested to fi ll in the questionnaire honestly and responsibly.

Thank you!

1. Your position (tick one): Principal PTA member KETB 2. Name of the school ........................................................................ School ID (Code) .............................. Region ........................................

3. Location (tick one): Urban Rural

4. Please indicate (tick one) among the options given, whether you agree or disagree with the following assumed effects of abolition of school fees. (Options: 1 = strongly disagree, 2 = disagree, 3 = don’t know, 4 = agree, 5 = strongly agree)

No Assumed effect Options1 2 3 4 5

4.1 Enrolments increased 4.2 Dropouts decreased 4.3 School cannot run activities due to lack of fi nance4.4 Schools income-generation schemes increased4.5 Government funding for school increased4.6 Poor families children access increased 4.7 Community and parents participation increased


Annexes

88

5. Please rank the indicated non-salary school fi nancial sources (1 through 6) starting from 1 for the most and then to the least.No. School fi nancial source Rank5.1 Government allocation5.2 Community contribution5.3 Non-governmental organizations support5.4 Individuals donations5.5 Income generated by school activities5.6 Other

6. If the major source of non-salary school fi nance is community contribution, please estimate the contribution in per cent (tick one).More than 50% 30% to 50%

15% to 29% Less than 15%

7. Please indicate (tick) the type or form of support families and community provide to school.

Labour Cash In-kind 8. If the community supports the school in labour form, please indicate (tick) for which activities.No. Labour for activities involving:8.1 Construction 8.2 Repairing/maintenance8.3 Cleaning8.4 Farming8.5 Consultancy/teaching

8.6 Please list any others.a) .................................................................................................... b) ....................................................................................................

9. If the community supports the school in-kind, please indicate this with a tick. No. Supports in kind by supplying:9.1 Construction materials 9.2 School furniture9.3 Textbooks and other reference books9.4 Stationery9.5 Equipments and other educational materials


Annexes

89

9.6 Please list, if any others.

a) .................................................................................................... b) ....................................................................................................

10. If the school receives support from community in cash form, please indicate (tick) how this is used.No. Purpose of cash10.1 Maintaining the school 10.2 Expanding the school10.3 Purchasing school furniture10.4 Purchasing textbooks and other reference books10.5 Purchasing stationary10.6 Purchase equipment and other educational materials10.7 Salaries for contract workers10.8 Other operational costs

10.9 Please list any others. a) .................................................................................................... b) ....................................................................................................11. Please rate the extent to which the following income generation schemes/activities are signifi cant to fi nancing your school. (Rate as 1= very low, 2= low, 3= medium, 4= high, 5= very high)

No. Income generation activities Rating scale1 2 3 4 5

11.1 Cultural events11.2 Renting classes or halls11.3 School farms11.4 Renting farmland/space11.5 Product sale

11.6 Please list any others. a) .................................................................................................... b) ....................................................................................................


Annexes

90

12. Please comment on the existence of a supportive environment/conditions for non-salary school fi nance.No. Supportive conditions yes somewhat no12.1 The community has the capacity (fi nance, material) to

support schools12.2 There are procedures/strategies to mobilize the community12.3 There are rules that allow school to utilize their income 12.4 Woreda/sub-city has the capacity to assist schools12.5 Woreda/sub-city is effi cient in distributing materials and

other resources to schools

13. What are your school’s priorities for the future? Please rank these from 1 (the highest) to 8 (the lowest). No. Priorities13.1 Building more classrooms/improving/expanding/adding school facilities 13.2 Training teachers 13.3 Recruiting teachers/staff13.4 Textbooks and other educational materials13.5 Transportation13.6 Teachers residence13.7 Discipline/safety13.8 More income generation to support school fi nance13.9 Promotion to secondary school

13.10 Please list any others. a) .................................................................................................... b) ....................................................................................................14. In your opinion what are the major problems the school faced as a result of abolishing school fees? a) .................................................................................................... b) .................................................................................................... c) .................................................................................................... d) ....................................................................................................15. What do you suggest regarding the abolition of school fees? a) .................................................................................................... b) .................................................................................................... c) .................................................................................................... d) ....................................................................................................Thank you!


91

ANNEX 2

School level information checklist

Name of the school ................................ , Double shift ............. Singleshift (no shift system) ..............**This information is relevant because of widespread child labour. In the same family one child can attend in the morning, another in the afternoon. For this reason this information is usually accurate and verifi ed by the School Board.

1. Enrolments 2002/2003 2003/2004 2004/2005 2005/2006 2006/2007

M F T M F T M F T M F T M F T

Key: M = Male, F = Female, T = Total

2. Dropouts Dropouts

2002/2003 2003/2004 2004/2005 2005/2006 2006/2007M F T M F T M F T M F T M F T

3. Number of teachers in

2002/2003 M ............. F ................ T ..............

2006/2007 M ............. F ................ T ..............

4. Number of classrooms in

2002/2003 ........................................................

2006/2007 ........................................................


Annexes

92

5. School budget and community contributions

Budget source Amount allocated in academic year2002/2003 2003/2004 2004/2005 2005/2006 2006/2007

School budget

School internal revenueGovernmentOther sources

Community

contribution

CashIn-kindLabour


93

ANNEX 3

Budget information checklists

Budget information checklist (national level education sector)Education sector fi nancing framework for the sub-sectors primary and secondary education for the last fi ve

years (birr in thousands)

Fiscal year

Budget allocated for education sector (capital, recurrent)

Budget allocated (capital and recurrent) Performance in percentage

(budget utilization)

Number of studentsPrimary Secondary

Recurrent Capital Recurrent Capital Primary education

Secondary education

Primary education

Secondary educationnon-salary salary non-salary salary

2002/20032003/20042004/20052005/20062006/2007


Annexes

94

Budget information checklist (national level education sector)Share of education sector from total national budget and Gross Domestic Product (GDP) for the last fi ve

years (birr in thousands)

Fiscalyear

National budget (capital, recurrent)Internal sources, loans, aid and others

Budget allocated for education sector (capital and recurrent) including loans, aid and other sources

Budget as a percentage of GDP

Recurrent Capital Total Recurrent Capital Total % from national

National Education

2002/20032003/20042004/20052005/2006

2006/2007

Budget information checklist (regional level education sector) Region ....................................................

Education sector fi nancing framework for the sub-sectors primary and secondary education for the last fi ve years (birr in thousands)

Fiscal year Budget allocated for education sector (capital, recurrent)





Secondary education

Primary education


2002/20032003/20042004/20052005/20062006/2007


Annexes

95

Budget information checklist (regional level education sector)Region .......................................................

Share of education sector from total regional budget for the last seven years (birr in thousands)

Fiscal year Regional budget (capital, recurrent) Internal sources, loans, aid and others

Budget allocated for education sector (capital and recurrent) including loans, aid and other sources

Education budget as a percentage of

regionalRecurrent Capital Total Recurrent Capital Total2002/20032003/20042004/20052005/20062006/2007

Budget information checklist (Woreda/sub-city level education sector)Region ....................................................... Woreda/sub-city ....................................................

Education sector fi nancing framework for the sub-sectors primary and secondary education over the last seven years (birr in thousands)

Fiscal year Budget allocated for education sector (capital, recurrent)





Secondary education

Primary education


2002/20032003/20042004/20052005/20062006/2007


Annexes

96

Budget information checklist (Woreda/sub-city level education sector)Region ........................................................ Woreda/sub-city .....................................................

Share of education sector from total regional budget for the last seven years (in thousands)

Fiscal year Regional budget (capital, recurrent) Internal sources, loans, aid and others

Budget allocated for education sector (capital and recurrent) including loans, aids and other sources

Education budget as a percentage of Woreda/sub-cityRecurrent Capital Total Recurrent Capital Total

2002/20032003/20042004/20052005/20062006/2007


IIEP publications and documents

More than 1,200 titles on all aspects of educational planning have been published by the International Institute for Educational Planning. A comprehensive catalogue is available in the following subject categories:

Educational planning and global issuesGeneral studies – global/developmental issues

Administration and management of educationDecentralization – participation – distance education – school mapping – teachers

Economics of educationCosts and fi nancing – employment – international co-operation

Quality of educationEvaluation – innovation – supervision

Different levels of formal educationPrimary to higher education

Alternative strategies for educationLifelong education – non-formal education – disadvantaged groups – gender education

Copies of the Catalogue may be obtained on request from:IIEP, Publications and Communications Unit

[email protected] Titles of new publications and abstracts may be consulted

at the following website: www.iiep.unesco.org


mailto:[email protected]


The International Institute for Educational Planning

The International Institute for Educational Planning (IIEP) is an international centre for advanced training and research in the fi eld of educational planning. It was established by UNESCO in 1963 and is fi nanced by UNESCO and by voluntary contributions from Member States. In recent years the following Member States have provided voluntary contributions to the Institute: Australia, Denmark, India, Ireland, Netherlands, Norway, Spain, Sweden and Switzerland.

The Institute’s aim is to contribute to the development of education throughout the world, by expanding both knowledge and the supply of competent professionals in the fi eld of educational planning. In this endeavour the Institute co-operates with training and research organizations in Member States. The IIEP Governing Board, which approves the Institute’s programme and budget, consists of a maximum of eight elected members and four members designated by the United Nations Organization and certain of its specialized agencies and institutes.

Chairperson: Raymond E. Wanner (USA)

Senior Adviser on UNESCO issues, United Nations Foundation, Washington DC, USA.

Designated Members: Manuel M. Dayrit

Director, Human Resources for Health, Cluster of Evidence and Information for Policy, World Health Organization (WHO), Geneva, Switzerland.

Carlos LopesAssistant Secretary-General and Executive Director, United Nations Institute for Training and Research (UNITAR), United Nations, New York, USA.

Jamil SalmiEducation Sector Manager, the World Bank Institute, Washington, DC, USA.

Diéry Seck Director, African Institute for Economic Development and Planning, Dakar, Senegal.

Elected Members:Aziza Bennani (Morocco)

Ambassador and Permanent Delegate of Morocco to UNESCO. Nina Yefi movna Borevskaya (Russia)

Chief Researcher and Project Head, Institute of Far Eastern Studies, Moscow.Birger Fredriksen (Norway)

Consultant on Education Development for the World Bank.Ricardo Henriques (Brazil)

Special Adviser of the President, National Economic and Social Development Bank. Takyiwaa Manuh (Ghana)

Director, Institute of African Studies, University of Ghana.Philippe Méhaut (France)

LEST-CNRS, Aix-en-Provence, France. Xinsheng Zhang (China)

Vice-Minister of Education, China.

Inquiries about the Institute should be addressed to:The Offi ce of the Director, International Institute for Educational Planning,

7-9 rue Eugène Delacroix, 75116 Paris, France
