Philippines - Second Education Project

DOCUMENT OF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Not For Public Use Report No. PE-50 A APPRAISAL OF A SECOND EDUCATION PROJECT IN THE PHILIPPINES November 30, 1972 Education Projects Division Asia Tis report was prepared for official use only by the Bank Group. It may not be pubUshed, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibilty for the accuracy or completeness of the report.  CURRENCY EQUIVALENT Present : Pesos 6.73 = US$ 1.00 At appraisal: Pesos 6.40 = US$ 1.00 MEASURES 1 m = 1.09 yd 1 m2 = 10.76 sq ft 1 km2 = 0.38 sq mi 1 hectare = 2.47 acres FISCAL YEAR July 1 - June 30  THE PHILIPPINES APPRAISAL OF A SECOND EDUCATION PROJECT TABLE OF CONTENTS Page No. ABBREVIATIONS BASIC DATA SUMMARY AND CONCLUSIONS ....................... i- I. INTRODUCTION ..................1 The Request 1. . LI. THE EDUCATION SYSTEM . . III. NEED FOR THE PROJECT. 4 Educational Planning, Management and Curricula Reform. 4 Teacher Training - Science and Social Studies 4 The Training of Farmers. 5 The Need for Professional Agricultural and Forestry Manpower. 6 Agricultural Extension - The Need for New Programs. 7 The Need for Manpower in Industry. 8 IV. THE PROJECT . . 9 General. 9 Office of Planning and Research and Curriculum Coordinating Unit .10 Education Development Center .11 Regional Science Teaching Centers .11 Agricultural High Schools .12 Pilot (Barrio) Village Development Schools 12 Agricultural Universities .13 Social (Extension) Laboratories .13 This report is based on the findings of an appraisal mission which visited The Philippines during November/December 1971. The mission consisted of Messrs. D. Brewin (agricultural educator), S. Holm (economist), K. Seiler (technical educator), J. Theodores (architect) of the Bank, and L. Peterson (general educator, consultant).  TABLE OF CONTENTS (Cont'd) Page No. Agricultural Radio Stations. 14 Technical Institutes . . .14 Regional Manpower Training Centers . . .15 Technical Assistance ...15 Cost of the Project ...16 Cost Estimates ...17 Foreign Exchange Component ...18 V. IMPLEMENTATION AND DISBURSEMENT ......... 18 Execution of the Project . .18 Professional Services . .19 Site Acquisition . .19 Procurement .... ...... .. 19 Disbursement.... 19 VI. AGREEMENTS REACHED AND RECOMMENDATION . . 20 ANNEXES 1. Education in the Philippines Table 1. Population Projections 1970-85 Table 2. Enrollment and Teachers by Level of Education, All Schools, 1970-1980 Table 3. College Enrollment by Course - Public and Private, 1970 2. Comparative Education Indicators 3. Financing and Cost of Education 4. Educational Studies and Surveys 1927-1971 5. The Presidential Commission to Survey Philippine Education, 1970 6. Technical Assistance 7. Agencies Involved in Research and/or Development of Educational Materials 8. Functions of the Office of Planning Service and the Curriculum Coordinating Unit 9. The Education Development Council and the Science and Social Studies Education Centers 10. Pilot Barrio (Village) Development Schools 11. Agricultural Radio Stations - Technical Data 12. Data on Technical Institutes 13. Data on Regional Manpower Training Centers 14. Areas of Construction and Estimated Costs 15. Comparative Indicators of Project Institutions 16. Contingencies Allowances 17. Project Implementation Schedule 18. Time Schedule for Technical Assistance 19. Estimated Schedule of Disbursements  TABLE OF CONTENTS (Cont'd) CHARTS 1. Structure of the Formal System of Education 2. Educational Pyramid 1970 - Enrollment in Public and Private Schools MAP OF THE PHILIPPINES   ABBREVIATIONS BVE Bureau of Vocational Education, Department of Education CCU Curriculum Coordinating Unit, Office of Planning and Research, Department of Education CLSU Central Luzon State University CMU Central Mindanao University N1MYC National Manpower and Youth Council OPR Office of Planning and Research, Department of Education RCO Radio Control Office RMTC Regional Manpower Training Center RSTC Regional Science Teaching Center SAT School of Arts and Trades SSEC Social Studies Education Center of the Bureau of Public Schools UP University of the Philippines UPCA University of the Philippines, College of Agriculture, Los Balnos UPSEC University of the Philippines Science Education Center   APPRAISAL OF A SECOND EDUCATION PROJECT THE PHILIPPINES BASIC DATA (1972) Population Estimated total 39.3 million Annual rate of growth 3.1 percent Average density 132 per km Literacy of Adult Population 72% Pre-Grade 1 enrollment as a percentage of population aged 5-6 2% Elementary school enrollment as a percentage of population aged 7-12 119%* Secondary school enrollment as a percentage of population aged 13-17 71% Higher education enrollment as a percentage of population aged 18-22 25% Education Resources US$ million % National government 207 55 Local government 40 10 Student fees 134 35 381 100 Total national government expenditure for education as percentage of total government expenditure 26% Total education expenditure as a percentage of GNP 4.6% * The enrollment ratio at all levels includes overaged students.   PHILIPPINES APPRAISAL OF A SECOND EDUCATION PROJECT SUMMARY AND CONCLUSIONS i. A Bank loan of US$6.0 million was made to the Philippines in 1964 for improvements at the University of the Philippines College of Agriculture at Los Banos. The project will be satisfactorily completed in December, 1972, two years after the original closing date. This report appraises a second education project, for which an IDA Credit of US$12.7 million is proposed. ii. The Philippines has a literacy rate amongst the highest in South Asia; elementary education caters for virtually all children in the age group and the secondary system for well over half of the age group; higher education institutions have enrollment ratios second only to those in Canada and the United States but Philippine education is shorter in duration and enrollment ratios at this level are not strictly comparable. These quanti- tative achievements have not, however, been matched by qualitative accom- plishments. The system has become very large and faces increasing pressures resulting from population growth. It has not been sufficiently planned or controlled to be fully effective; over half of the secondary and almost all higher education is provided by private institutions with minimal Government control. iii. The education system faces a number of problems, educational, institutional and financial. It has been surveyed by numerous expert groups during the last 50 years which have made recommendations for reform. Many of the reforms have not been implemented, however, because of disagreements as to their feasibility, the inability of the authorities to take the necessary action or financial constraints. It is unlikely that major improve- ments can be effected without fundamental changes in the administration and structure of the system. Some such changes now appear to be in motion. iv. At this juncture it is not possible to devise a comprehensive IDA project which would assist the eovernment in revising the entire system. It is, however, possible to bring about improvement uy supporting a number of high priority areas. The proposed IDA project would help the government to meet manpower requirements through the introduction of a more modern approach to skill training in industry, setting up a new level of technical training for personnel between the level of skilled craftsman and professional engineer, reinforcing professional agricultural training in two regions of the country in such fields as agricultural business management, agricultural engineering, irrigation and forestry, and the strengthening of science teaching. In addition, as a contribution towards educational reform, the proposed project would provide for a strengthening of educational planning and management and for the coordination of various agencies engaged in curricula development and suipport new approaches to deal with the problem of secondary education for rural youth. v. Specifically, the project would help finance the construction of new facilities for, extensions to and/or equipment for the following institu- tions:  - ii - (a) a curriculum coordinating unit, an education development center and four regional science teaching centers; (b) thirteen agricultural high schools, two agricultural colleges with social (extension) laboratories, six pilot village devel- opment schools and two radio stations attached to agricultural colleges; and (c) three technical institutes and ten regional manpower training centers. In addition, the project would provide 62 man-years of specialist services for strengthening educational planning and management, curricula reform, staff for the agricultural universities and technical institutes and for project implementation, plus 56 man-years of overseas fellowships. These would sup- plement technical assistance for a number of project items for which the government has requested UNDP assistance. vi. The total cost of the project is estimated at US$17.7 million. The proposed Credit would be for US$12.7 million equivalent or 72% of the total project cost. This would cover the foreign exchange component of US$12.4 million and US$0.3 million of local costs, representing the ex-factory costs of equipment, furniture and educational materials for which contracts are likely to be awarded to local firms after international bidding. vii. A project unit would be established within the Department of Edu- cation and Culture to supervise project implementation, to coordinate activities between the government departments, universities and other agencies involved, and to provide liaison with IDA. Procurement would be in conformity with Bank/IDA guidelines regarding international competitive bidding. viii. The project is suitable as a basis for an IDA credit of US$12.7 million to the Government of the Philippines.  I. INTRODUCTION The Request 1.01 In January/February 1971 a UNESCO mission visited the Philippines to identify education projects suitable for Bank/IDA financing. The UNESCO report was discussed with the Government by an IDA mission in May 1971. In July 1971, the government requested financial assistance for a project it had prepared with the help of UNESCO. The purpose of the project was to improve secondary education and improve and expand training for agriculture and industry. In November 1971, a mission comprising Messrs. D. Brewin (mission leader, agricultural educator), S. Holm (economist), K. Seiler (technical educator) and J. Theodores (architect) of the Bank, and L. Peterson (general educator, consultant) visited the Philippines to appraise the proj- ect. During appraisal, and in agreement with the government, the proposed project was modified by: (i) deleting general secondary and certain items in agricultural, vocational and technical teacher training; (ii) relating curricula in agricultural colleges more closely to estimated manpower needs; and (iii) including additional items in the planning and management of edu- cation and curricula reform, textbook development and agricultural extension and education. 1.02 This would be the second education project in the Philippines assisted by the World Bank Group. The first, (Loan 393-PH of October 28, 1964), which has resulted in substantial improvements at the University of the Philippines College of Agriculture, will be satisfactorily completed in December, 1972. The main problems, which caused extension of its closing date from June 30, 1970 to December 31, 1972, arose from lack of local fund provision, particularly after the floating of the peso in February 1970. II. THE EDUCATION SYSTEM 2.01 The Philippine education system is described in Annex 1. Spanish rule established schools and seminaries and, as early as 1863, decreed that elementary education should be free and compulsory though this aim was not achieved until much later. The Americans, during the first half of the 20th century, changed the medium of instruction to English, established, a strong centralized elementary school system and introduced teacher training and vocational programs. Most secondary and higher education was left to private interests. Today, the literacy rate is amongst the highest in South Asia (72% of the adult population). The elementary education system comprises virtually all children in the age group and enrollment ratios are 71% at secondary level and 25% in higher education, a figure second only to that in Canada and the U. S. A. (Annex 2). As the Philippine education system is shorter in duration, however, college enrollment ratios are not strictly comparable with those of other countries. Although the quantitative accom- plishments are impressive, the qualitative aspects of Philippine education are less satisfactory.  - 2 - 2.02 The main weakness of Philippine education has been insufficient government control of the system. More than half of the secondary schools and most of higher education institutions are privately controlled, often run by commercial enterprises and of variable quality. Entrance requirements for higher education are lacking, thus contributing to the proliferation of schools and colleges. Teachers, particularly at the elementary level, have strong political influence. Student activism has, in some cases, in- hibited the authorities from taking decision if these were likely to be unpopular. Important steps, such as the imposition of heavier taxation, firmer control of the private sector, resistance to pressure groups, limita- tion of the power of teachers and students and prevention of the establish- ment of redundant institutions have proved extremely difficult. 2.03 The National Board of Education, which includes representatives of the legislature, private schools, the church and the University of the Philippines, is by law the highest policy-making body for education but it has never become fully operative. In the vacuum so created, the Congress became active in the formulation of policy. Legislation was often passed against the wishes of the erecuti-e branch of the government, represented by the Secretarv of the Department of Education and Cultur-. One res"lt has been the conversion of a number of gener-l high -ch^ols into vocational colleges and universities and the establishment of numerous others, regardless of need, with the prime purpose of obtaining cen-ral government financial support and often with no provision for additional staff, funds -r super- vision. 2.04 Total domestic expenditure o- education, estimated at US$381 mil- lion in 1972, represents 4.6% of GNP, a substantial part of the nation's resources. The central government provides only 55% of all education expenditure but this already represents 26% of its budget. It supports 90% of primary education butt only 11% of secondary and 21% of higher education. Allocations within the central education budget are very lopsided: 85% is spent on primary education, 3% on secondary education, 0.05% on secondary vocational education and 12% on higher education. 2.05 About 10% of the education bill in financed by local governments. The balanc- of 35% has to come from studenta' fe"n. Despite the considerable amount of private financing, the average recurrent expenditure per pupil in secondary schools (US$26) is little higher -han in elementary education (US$24), while the average recurrent -os's per student in secondary voca- tional (US$43) and in higher educa ion (US$116) are much less than in other countries. A contributory factor to the relatively higher costs of elementary education is that elementary teachers recei-e larger salaries than secondary teachers. (Details of education financing are given in Annex 3.) 2.06 If present trends and policies continue, the central government's education budget would nearly double between 1972 and 1980 (in constant prices). Despite this increase the government would still spend a major part on primary education, leaving little room for urgent qualitative improve- ments at secondary and post-secondary levels.  2.07 The education system has been the subject of much study during the last 50 years (Annex 4), culminating in 1970 in a Presidential Commission to Survey Philippine Education which identified major weaknesses (Annex 5) and proposed certain reforms. It recommended inter alia a shift of financial responsibility for elementary education to local governments, in order to release funds at the national level for secondary and higher education (but it may be difficult to secure sufficient revenue at the local level). In any case, measures to halt the rapid increase in the cost of elementary education, without impairing the already low quality, are highly desirable. Enrollment might be reduced by the introduction of automatic promotion. The pupil:teacher ratio might be increased. Such steps would enable the govern- ment to effect savings in the cost of elementary education and so augment the resources available for secondary and higher education. 2.08 This reallocation would only enable the government to effect improvements if control of enrollments at secondary and post-secondary levels was established. The government might limit further expansion in public schools and give selective support to private schools only where they were willing to conform to the government's policy directives. Funds might then be available to bring about better curricula, increased pre-vocational training, improved secondary teachers' salaries, an extension of the secondary level school year from 180 to 220 days and readjustment of post-secondary education in accordance with manpower needs. 2.09 Some recent developments indicate the possibility of improvement. In the reorganization of the Executive Branch of government, followin^ the imposition of martial law, the Department of Education becomes the Department of Education and Culture, responsible for developing and implementing education programs based on the general education objectives and policies set by the National Board of Education. The divisions or units in the former Department of Education which dealt, almost independently of each other, with public, private and vocational schools, are abolished and the new Department will have bureaux for elementary, secondary and higher education. In addition, units for Planning, Finance and Management, Administration and Information and Publication will be set up in the Department, the Planning Service will undertake planning, research and project development. The National Board of Education will be responsible for formulating the general education objectives and policies and long-range education plans. A Board of Higher Education will be created to assist and advise the National Board of Education in formulating objectives, policies and programs on post-secondary education. 2.10 This reorganization should permit the Department of Education to implement a policy aimed at making the educational system more responsive to the needs of the country. Higher priority will be given to technical education and vocational training. Higher education will be strengthened through a coherent system of public universities and incentive schemes for important programs in private education. New colleges can be established only on the recommendation of the National Board of Education. Accreditation of higher education institutions is in its infancy (28 institutions are members at present) and the new structure may enable the system to expand more rapidly.  - 4 - III. NEED FOR THE PROJECT 3.01 The proposed project would assist education and training in the Philippines on a limited scale by supporting a number of high priority areas where assistance could bring about significant improvement. These would be: (a) educational management, planning and curricula reform; (b) science teacher training; (c) training of technicians for industry and agriculture; and (d) training of skilled craftsmen and farmers. Educational Planning, Management and Curricula Reform 3.02 The National Board of Education needs to be strengthened to make it the principal agency for the formulation of educational policy. The Department of Education requires restructuring through establishing responsi- bilities by educational level rather than by type of institution. Proposals incorporating these changes, drawn up by the government's Reorganization Commission, now appear to be in process of implementation. The Department of Education and Culture is to strengthen its educational research, planning and management by setting up a Planning Service Office in the Department, with broad responsibilities and powers. Technical assistance is required for its establishment (Annex 6). 3.03 Curricula Coordination. There is at present no organization co- ordinating the work of various agencies involved in curricula research and material development. A unit is needed to identify such research and to maintain liaison among the various groups involved (Annexes 7 and 8). Teacher Training - Science and Social Studies 3.04 Only 25 of approximately 400 teacher-training institutions in the Philippines offer majors in science and very few of them in physics and chemistry. In the public schools some 180,000 elementary and over 2,000 secondary teachers need additional training in science; in private schools these numbers are tentatively estimated at 10,000 elementary and 2,750 sec- ondary teachers. To this end, the University of the Philippines established in 1964 a Science Education Center (UPSEC) to develop curriculum materials and initiate science teaching programs. The center occupies a few rooms in an old building of the College of Education. 3.05 There is also need for a more integrated approach to the teaching of social studies with emphasis on Philippine community life, history, pop- ulation and economic development. In 1970, the Bureau of Public Schools set up a Social Studies Education Center (SSEC) in a small part of its main office, to revise curricula, disseminate new teaching materials, and provide training for teachers.  3.06 Both UPSEC's and the SSEC's efforts have been limited because of inadequate space and facilities. There is need for an integration of the pro- grams in one well-equipped and staffed center so as to establish a pattern for cooperation between various disciplines including those in language and practical arts, cultural arts and health and physical education for which new centers are now being planned (Annex 9). 3.07 Science Teaching in the Regions. New curricula and teaching mate- rials will be ineffective unless teachers are trained to apply them in the regions where they are to teach. As part of the UPSEC program, five Regional Science Teaching Centers (RSTCs) have been established at private teacher training institutions. New RSTCs are needed, to specialize particularly in elementary school science and mathematics teaching while existing centers concentrate on secondary science teaching courses. 3.08 Provision of Textbooks. Curricula reform and better teacher training cannot be successful unless pupils have access to textbooks. It has been estimated that there is a current shortage of over 60 million textbooks for public schools and a similar demand in the private sector. A pre-investment study which might lead to further Bank Group lending for local production of textbooks is required to be carried out to identify the need and the best way in which it can be met. The Training of Farmers 3.09 The majority of the 3.7 million out-of-school youth live in rural areas. Most of them have not been prepared for self-employment which remains the major source of income in the countryside. Progress will be dependent on the training of farmers having higher skills and new attitudes. The training needs to be integrated with actual work situations and to emphasize simple management principles. This can be provided through the supervised farming approach in which the agricultural teacher guides the pupil in the operation of farming enterprises run on businesslike lines. 3.10 The secondary school system is doing little to meet these needs. Ninety-five percent of the schools have been unable to introduce a curriculum offering vocational courses and remain largely academic. The existing agri- cultural high schools and the privately operated rural barrio (village) high schools originally embodied the objective of providing practical farming courses for rural youth but recently greater emphasis has been placed on college preparation and some 29 agricultural high schools have introduced post-secondary courses, most leading to somewhat spurious degree qualifications. As a first step towards reform, a moratorium should be placed on the establish- ment of such degree programs and several of them should be closed. 3.11 The Bureau of Vocational Education recently introduced a new experimental agricultural high school curriculum in which the practical element has been increased to a half of the time available compared with one-third in the earlier curriculum and the time devoted to instruction in agricultural economics and farm management has been increased three-fold. The program is being operated with some success in two pilot schools and  - 6 - will later be introduced in others, in each case in association with super- vised farming programs. Funds are needed to equip a number of these schools so that they can apply the new curriculum. 3.12 A slightly different approach with the same aims is being tried by the University of the Philippines College of Agriculture (UPCA) in a "Pilot Barrio (Village) Development School" at Masaya, designed for pupils who have no intention of proceeding to college on completion of school (Annex 10). Pupils spend 50% of their time working on their own or their parents' land on projects supervised by school staff; they learn farm management by practicing it, borrow money from the rural bank and arrange for its investment and, by the time they leave school, they have been able to establish and manage viable farming activities. They do not become alienated from the community. There is a need to develop additional pilot schools of this kind in other areas of the Philippines. The Need for Professional Agricultural and Forestry Manpower 3.13 There is a surplus of agricultural degree holders in the Philip- pines. The common denominator in the qualifications demanded by employers of such graduates, however, is managerial ability and technical competence which very few agricultural colleges in the Philippines are able to provide. Most have limited facilities and offer general agricultural courses with outdated curricula. Agricultural engineering courses are provided in only six of the 54 degree-granting institutions and, in 1970, only 21 students graduated from them. Irrigation, which represents a rapidly expanding and vitally important area of development, and which is being supported by the Bank (Loan 637-PH for US$34 million), is not covered as a major subject in any of the existing institutions except UPCA. Agricultural business manage- ment courses are offered in only two institutions. In spite of the impor- tance of the forest industry in the economy, forestry training is offered at degree level in only four institutions, of which only one, Central Mindanao University, is in Mindanao, the center of the industry. The Bank has financed the development of UPCA, which now provides the highest level of agricultural training and research in the country but UPCA cannot deal adequately with regional needs and its instruction lacks practical orientation, particularly in the fields mentioned above. There is a need to upgrade or establish new colleges specializing in these fields in each region. 3.14 As the first step to meet the urgent need for better training of professional agricultural manpower, the government should reorient and strengthen such training in well-located and established agricultural col- leges in two regions of the country (Central Mindanao and Central Luzon), while the appropriate location of a college in the third region (Visayas) should be further studied. To be effective, however, the steps should form part of and be undertaken simultaneously with the preparation of a comprehensive development plan. To that effect, the government has agreed, that it will:-  - 7 - (i) complete, within two years after the signing of the Credit Agreement, a study on national and regional manpower require- ments in the agricultural sector and on the capacity of existing agricultural training institutions, including the appropriate location for a regional agricultural college for the Visayas; the study will make recommendations on the most efficient means of meeting the manpower needs identified; and (ii) pending the results of the study under (i), and as a first step towards rationalization, ensure that, within three years after the signing of the Credit Agreement, eleven of the thirteen agricultural high schools included in the project, will offer courses only at the secondary level, and thus direct their efforts to programs closely related to agricultural development. 3.15 The government has also agreed that it will use the results of the study under para 3.17 (i) as a basis for adjusting the long-term development of agricultural education to manpower needs. The National Board of Education has recently adopted a resolution declaring that the establishment of additional degree granting institutions will be considered only if it accords with manpower and development requirements. Measures have also been taken to control the establishment of new agricultural degree courses in existing institutions. 3.16 As a further step towards rationalization, the Association of Colleges of Agriculture in the Philippines, in association with the Philippine Association of Accredited Schools, Colleges and Universities, is establishing a system of accreditation and entry qualifications for student admission to existing degree granting agricultural institutions. The government is encourag- ing these developments. Agricultural Extension - The Need for New Programs 3.17 Agricultural extension work, carried out by a variety of govern- ment and other agencies, often loosely organized and inadequately supervised, is further handicapped by the lack of technical competence of staff as a re- sult of the low standard and limited curricula offerings of most degree- granting institutions. Technician training is lacking. In only one college (UPCA) are communication skills taught as a major subject. Field extension workers, even if adequately trained, frequently lack direct linkage with re- search laboratories and the expertise which they can provide. A new approach to the training of extension workers and their subsequent work in the field is needed. UPCA has initiated two programs which show promise and merit sup- port in other parts of the country. It has established a "social" laboratory in a group of adjacent villages as a teaching laboratory for students of ex- tension which involves university faculty in rural problem solving and as a by-product, provides intensive and well-organized extension leading to po- sitive rural development. The College has also set up a small radio station, producing a variety of vernacular language programs directed specifically at farmers, fishermen, foresters and other production workers. There are about 300 radio stations in the country but almost all are commercially operated  -8- and often unwilling to provide adequate time for educational programs directed at the rural population. The UPCA station requires strengthening so that it can provide greater coverage. There is need for another similar station in the southern (Mindanao) region. The Need for Manpower in Industry 3.18 Industry (comprising mining and quarrying, manufacturing, utili- ties, construction, transport and communications) employs some 2.1 million people, or 19% of the labor force of 11 million. It is estimated that there are 30,000 engineers, 160,000 highly skilled craftsmen and foremen, 380,000 skilled mechanics and craftsmen, 800,000 semi-skilled workers and operatives and 750,000 unskilled workers in the Philippines. 3.19 The annual demand for fully qualified engineers is estimated at 1,500. The annual supply is difficult to estimate because over 140 engineer- ing colleges are offering engineering and associate degrees after courses lasting from two to five years' and producing graduates who may vary from semi-skilled to professional level. Their annual output of some 4,000 professional engineers exceeds the demand and many fill job categories below that of professional engineer for which they are ill-suited. 3.20 The actual number of technicians in industry is unknown. There are limited facilities for their training. There is undoubtedly a demand, however, for the training of middle-level manpower which could be as high as 7,500 annually. The actual demand for technicians will initially be much lower since an ILO/NMYC study shows that industry, which is unfamiliar with the technician category, could continue its practice of hiring degree holders rather than technicians for these positions. Technician training should, therefore, be initiated on a limited scale not exceeding an output of 1,000 technicians per year. 3.21 The annual demand is estimated at 24,000 for skilled craftsmen and 13,000 for semi-skilled workers and operatives. The annual output of the Schools of Arts and Trades (SATs) totals some 10,000 semi-skilled workers and operatives and 2,000 skilled craftsmen. Private institutions are training an estimated 35,000 semi-skilled workers and operatives, many of whom are already employed in industry, but these institutions do not contribute significantly to the training of skilled craftsmen. As a result there is a deficit of skilled craftsmen and an oversupply of semi-skilled workers and operatives. In addition, the training offered by the SATs and private institutions is of poor quality and the skills taught are often unrelated to industry's needs. These factors led the Philippine government, with ILO assistance, to develop regional manpower training centers. These show much promise and introduce training through skill modules in concert with industry's requirements. Funds are needed to establish such centers at suitable locations throughout the Philippines.  - 9 - IV. THE PROJECT General 4.01 The purpose of the proposed project would be to lay the groundwork leading to possible future educational reform and also to meet the manpower needs outlined in Chapter III. Specifically, the project would: (i) provide the Department of Education and Culture, through the new Office of Planning Service and the Education Development Center, with the physical and human resources to improve educational planning and management and to reform the education system; (ii) expand the training of science teachers in accordance with national needs; (iii) expand the training of young farmers in rural areas and help them to start commercial farming enterprises; (iv) improve and reorient the training of professional agri- cultural personnel at two colleges in accordance with urgent manpower needs, with particular emphasis on the improvement of the agricultural extension services; (v) initiate the training of industrial technicians to fill the middle level positions; and (vi) expand and improve the training of skilled craftsmen in accordance with industrial manpower needs.  - 10 - 4.02 The project would help to finance: (i) the construction of new facilities for, extensions to and/or equipment for the institutions listed in the following table and for two social (extension) labora- tories and radio stations attached to agricultural colleges: Accommodation (additional) No. of Enrollment Student Staff Institutions Additional Total Boarding Housing Curriculum Coordinating Unit 1 - Education Development Center 1 - 100* - Regional Science Teaching Centers 4 - 7,000 - Agricultural High Schools 13 - 5,500 - Agricultural Colleges 2 650 3,000 - 8 Pilot Barrio (Village) Development Schools 6 600 600 - 12 Technical Institutes 3 2,800 2,800 - - Regional Manpower Training Centers 10 2,400 2,400 - Total 40 6,450 21 400 20 *18-month post-graduate courses only. Large numbers of other students would use the facilities at night, weekends and during vacations. (ii) 62 man-years of specialist services for strengthening educational planning and management, curricula reform, staff for the agricultural colleges and technical institutes and for project implementation, and 56 man-years of overseas fellowships. Office of Planning and Research and Curriculum Coordinating Unit 4.03 The government has now set up a Planning Service Office (OPS) in the Department of Education to reorganize and strengthen educational planning and management and has agreed to establish a program of educational research within six months of the signing of the Credit Agreement. As part of the Office, a Curriculum Coordinating Unit (CCU) would be formed to coordinate  - 11 - curricula research being carried out by various interested agencies (para 3.06). The proposed project would provide equipment, books and materials foor the CCU, and technical assistance to supplement that being provided by UNDP for the OPS and to prepare a program to remedy textbook shortages (para 3.11) as outlined in Annex 6. 4.04 The government has also agreed to draw up a plan for the organiza- tion, operation, staffing and financing of the OPS and the CCU in accordance with these objectives, details of which are given in Annex 8, and to submit it to the Association within six months of the signing of the Credit Agreement. Education Development Center 4.05 As an important step towards integration of the Science Education Center of the University of the Philippines (UPSEC) and the Social Studies Education Center (SSEC) of the Bureau of Public Schools of the Department of Education, in accordance with needs outlined in paras. 3.07-3.11, an Education Development Council would be established to coordinate the operations of the two Centers. The project would provide integrated physical facilities, including offices, laboratories, a lecture room and audio-visual unit, a printing and graphics unit and library for up to a total of 100 full-time students, which would enable the staff to operate joint projects. At a later stage, other agencies responsible for curricula studies and material preparation in other disciplines (languages, health and physical education, practical arts, cultural arts) would also be brought under the Council. The activities of the Council and its Centers are described in Annex 9. 4.06 The government has already requested technical assistance from the UNDP for UPSEC. The project would include technical assistance for curricula development and evaluation in the field of social studies. Details of the two programs are outlined in Annex 6. The government has indicated that its Department of Education and Culture and the University of the Philippines have signed a Memorandum of Understanding concerning the establishment of the Council. Regional Science Teaching Centers (RSTCs) 4.07 The project would augment the work of the existing RSTCs (para. 3.10) by providing two additional centers at the Northern and Central Luzon Teachers' Colleges and equipment and books at the Zamboanga and West Visayas State Colleges. The centers would be integral parts of these colleges and would in total provide teacher training for some 1,000 post-graduate and 6,000 undergraduate students; they would assist a total of some 2,250 students studying for Bachelor of Science degrees and provide in-service training for 640 teachers during summer vacations and a similar number through evening and weekend in-service courses. The centers would experiment with instructional materials developed by UPSEC and other institutions and conduct research in the teaching of science in elementary and secondary schools. Staff for the centers would include existing staff at the colleges and would be augmented as required.  - 12 - Agricultural High Schools 4.08 To expand and broaden the new experimental high school project described in para. 3.14 to all regions of the country, the project would assist the introduction of a practically oriented curriculum into thirteen additional high schools with a total of 5,500 students. Assistance would be in the form of laboratory and workshop equipment, construction materials and initial supplies (fertilizers, seeds, insecticides). The first year of the program would be devoted to the teaching of the principles and practice of agriculture; the remaining three years to supervised farming projects in rice cultivation and pig and poultry husbandry. Part of the profits from these projects would be invested in a school fund to ensure the financing of subsequent student projects. The remaining part would be placed in the students' bank accounts to provide them with capital to start on their own when they leave the school. The government has agreed that, within one year of the signing of the Credit Agreement, it will draw up a plan, mutually satisfactory to the government and the Association, for supervised farming projects at each school included in the project and would subsequently implement the plan. 4.09 To be successful, the project schools should concentrate their efforts and resources on their high school programs. The government has agreed that this will happen within three years of the signing of the Credit Agreement except at Central Mindanao University and Central Luzon State University, where degree level programs would continue (para 3.17). Pilot (Barrio) Village Development Schools 4.10 To assist the government in developing the Pilot Barrio (Village) Development School concept described in para. 3.15, the project would provide three such schools at each of the two agricultural colleges to be included in the project (ClMU and CLSU). The schools, which would be of very simple design, would be located in villages in the vicinity of the colleges and would provide four-year courses to 100 students each, of which 50% would be classroom instruction with a strong agricultural bias and 50% practical work on supervised farming projects at the pupils' home farms. Pupils would receive working capital by way of loans from rural banks. More details of the program are given in Annex 10. 4.11 Each school would require a staff of three teachers. Technical assistance would be provided by the staff of UPCA who have been managing an original pilot school at Masaya. During the negotiations, the government agreed that, within one year of the signing of the Credit Agreement, it will prepare and subsequently implement a plan, to be mutually acceptable to it and the Association, for supervised farming programs at each school and make arrangements, also mutually satisfactory, for the provision of (a) credit facilities to the students and (b) technical assistance from UPCA.  - 13 - Agricultural Universities 4.12 To meet the needs outlined in paras. 3.16 and 3.17, the project would provide laboratories, workshops and equipment at two agricultural universities, which are well located and could become, with this assistance, strong regional centers for agricultural training and research. The project would also provide technical assistance (Annex 6) to supplement the universi- ties' staff development program. 4.13 The Central Mindanao University (C4U) offers five-year degree pro- grams; the project would enable the development of agricultural business man- agement as a major field in agriculture with supporting programs in general agriculture, agricultural engineering and agricultural education; in forestry, the major fields to be developed would be forest utilization engineering and forest resources management. Present enrollment at the University is 1,300, of whom 1,050 are in agriculture and forestry; after completion of the proj- ect this latter number would rise to 1,500. The University's Development Plan envisages a 1976 total enrollment of 2,000 and a diversity of curricula offerings exceeding the financial and staff resources likely to be available. The University has already agreed to limit student enrollment to areas of study for which manpower needs exist and for which adequate recurrent funds can be provided and to phase out engineering courses other than those directly related to agricultural development to which all the resources of its engineering college should be devoted. The University will also integrate the training of students in agricultural business management with the operation of its commercial farms and include within the five-year agricultural and forestry programs an additional semester of practical work. 4.14 At the Central Luzon State Universitr (CLSU) the project would assist inter alia the introduction of courses in agricultural business manage- ment and agricultural engineering with a major in hydrology. Total enroll- ment at the University is 1,700 of whom 1,300 are in agriculture; the latter figure would rise to 1,500 after completion of the project. Total enrollments would be limited through a policy of selective admission. 4.15 The government has indicated that CMU and CLSU have acquired legal title to the land they occupy. Social (Extension) Laboratories 4.16 The project would assist the two universities in giving new emphasis to on-the-job training of extension workers and in associating them more close- ly with rural development, by providing social (extension) laboratories similar to that established by UPCA (para. 3.20), to be located at the center of a group of adjacent villages. They would each consist of a meeting hall, work- shop and housing for up to 12 staff and/or students; transport for resident extension staff and students and a mobile film unit would be provided at each center. Their main function would be to provide field training for students majoring in agricultural extension and in-service training for extension workers employed by government and other agencies. The universities would provide one field extension worker per village to identify needs, plan pro- grams, organize group action and, where necessary, provide services. To  - 14 - ensure liaison with existing extension agencies, the government has agreed that it will make arrangements mutually satisfactory to it and the Association, within one year of the signing of the Credit Agreement, for CMU, CLSU, the Agricultural Productivity Commission and other relevant agencies to coordinate provision of extension services in the areas covered by the project. The government will also prepare studies on national and regional manpower needs in the agricultural sector and on ways and means to meet such needs, formulate plans for supervised farming projects at the agricultural high schools and pilot village development schools included in the project and make arrange- ments with existing universities to improve agricultural education, training and extension. Agricultural Radio Stations 4.17 The project would further strengthen agricultural extension work by providing 5 kw transmitters, equipment, studio facilities and mobile units to an existing radio station at UPCA and for a new radio station at cMU (para. 3.20). Further details are given in Annex 11. The stations would cooperate with government and private agencies in their extension programs, conduct "'schools of the air," assist in the training of students studying agricultural communications, broadcast the results of the universities' agricultural research programs and evaluate the effectiveness of their own programs and the work of the universities' extension services. 4.18 The government has agreed to make arrangements with UPCA, mutually satisfactory to the government and the Association, within one year of the signing of the Credit Agreement, for a training program for personnel of the CMU radio station and to subsequently implement the program. The Radio Control Office has arranged for a franchise to be granted to CMU and has authorized extended transmission power for the station at UPCA. Technical Institutes 4.19 To meet the need for technicians outlined in paragraph 3.23 the project would include three technical institutes. New institutes would be established in Manila and Bacolod and the third would be developed from the Iligan Institute of Technology by provision of additional equipment. The sites are well selected. The institutes would offer terminal three-year post-secondary courses for 2,800 students in two shifts to provide about 800 technicians annually. The enrollments, course offerings and curricula are given in Annex 12. 4.20 The government proposes to set up a national polytechnic scheme with which the institutes would be affiliated and has agreed, that pending this development, all three institutes would be administered by a Technical Education Governing Council with appropriate representation from industry and will apply the same curricula and observe the same examination standards. 4.21 To meet the immediate staff needs of the institutes, the government has agreed to provide three one-year teacher training courses to be scheduled so that 60 teachers would be ready for the first year of operation of the Institutes and 60 in each of the following two years. About half of the  - 15 - 180 teachers would be required for technical subjects and would be professional engineers prior to training; the others would be qualified teachers or professionals in their respective fields. To meet the long-term needs for technical teachers some 5% of the places in the Manila institute should be reserved, as long as needed, for a one-year course for trainees who have completed technician training and at least two years of industrial experience. The UNDP has already undertaken to provide an initial allocation of technical assistance for this project and an extension of this program might be considered. Pending assurances that such UNDP assistance will be forthcoming, the proposed project has provisionally included 13 man-years of specialist services and 8 man-years of fellowships (Annex 6). Regional Manpower Training Centers (RMTCs) 4.22 To meet part of industry's need for skilled craftsmen the project would help disseminate new methods of vocational training initiated by the National Manpower and Youth Council (NMYC) and supported by UNDP and ILO (para. 3.24) by providing ten new Regional Manpower Training Centers (RMTCs). These would offer short "modular" full-time and evening courses of varying duration, ranging from introductory to advanced level for youth or adults when required at intervals during their working lives. The combined output of the Centers would be approximately 7,200 craftsmen per year. More in- formation about location, enrollments, course offerings and curricula is given in Annex 13. 4.23 An agreement between the Council of Employers' Organizations and the NMYC providing for close cooperation between industry and the RMTCs to ensure the proper type of training was signed in 1971. The government has agreed that all ten centers will be administered by the NMYC on completion in order to facilitate the introduction of uniform government recognized trade testing schemes. Pending completion and during the construction phase, the government will ensure coordination of activities between its Project Unit in the Department of Education and Culture and the NMYC. 4.24 Staff for the centers would be trained at the National Manpower Skills Training Center in Taguig which is receiving UNDP/ILO assistance. Assurances were given during the negotiations that, within three years of the signing of the Credit Agreement, some 150 instructors and ten supervisors for the centers will be trained. Finally, an assurance was given that, not later than one year after the commencement of the operation of the centers and annually thereafter, the government would make available for IDA review, annual evaluation reports on the centers. Technical Assistance 4.25 To provide for a strengthening of educational planning and manage- ment, curricula reform and a pre-investment study on textbook production, to augment the staff at the agricultural colleges and technical institutes and to assist in equipment procurement for the Project Unit, the project would make provision for 62 man-years of specialist services and 56 man-years of overseas fellowships (Annex 6). The implementation program was agreed upon during negotiations. The government intends to obtain from UNDP additional technical assistance in the form of 31 man-years of specialist  - 16 - services needed to strengthen educational planning, curriculum development and manpower training as well as six man-years of overseas fellowships for curricula development and teaching in the ten Regional Manpower Training Centers. It is possible that UNDP might also provide part of the 62 man- years of technical assistance included in the project. If this assistance materializes, the amount of the Credit could be reduced accordingly or made available for use in other categories. Cost of the Project 4.26 The total cost of the project is estimated at Pesos 113 million or US$17.68 million equivalent. A breakdown of the project costs, given in Annex 14, is summarized below: Pesos (millions) US$ (millions) % of Project Items Local Foreign Total Local Foreign Total Total 1. Curriculum Co- ordinating Unit - 0.22 0.22 - 0.04 0.04 - 2. Education Devel- opment Center 1.50 1.99 3.49 0.24 0.30 0.54 3% 3. Regional Science Teaching Centers 1.14 2.00 3.14 0.18 0.31 0.49 3% 4. Agricultural Universities 6.64 10.88 17.52 1.04 1.70 2.74 15% 5. Social (Extension) Laboratories 0.27 0.46 0.73 0.04 0.07 0.11 1% 6. Pilot Village Devel- opment Schools 1.09 1.07 2.16 0.17 0.17 0.34 2% 7. Agricultural Radio Stations 0.14 0.83 0.97 0.02 0.13 0.15 1% 8. Agricultural High Schools 0.43 8.12 8.55 0.07 1. 27 1.34 7% 9. Technical Institutes 4.58 12.06 16.64 0.72 1.88 2.60 15% 10. Regional Manpower Training Centers 7.62 15.94 23.56 1.19 2.49 3.68 21% 11. Technical Assistance Experts and Fellowships 3.01 13.44 16.45 0.47 2.10 2.57 14% Sub-Total (1-11) 26.42 67.01 93.43 4.14 10.46 14.60 82%o 12. Contingencies a. Physical 1.92 1.22 3.14 0.30 0.19 0.49 3% b. Price 5.44 11.13 16.57 0.84 1.75 2.59 15% Sub-Total (12 a-b) 7.36 12.35 19.71 1.14 1.94 3.08 18% Total Project Cost including Contingencies 33.78 79.36 113.14 5.28 12.40 17.68 100%  - 17 - 4.27 The estimated cost of the project by type of expenditure is as follows: % of Pesos (millions) US$ (millions) % of Foreign Local Foreign Total Local Foreign Total Total Exchange 1. Construction a. Site Develop- ment 2.18 1.46 3.64 0.34 0.23 0.57 3% 40% b. Academic and Communal 13.75 9.17 22.92 2.15 1.43 3.58 20% 40% c. Staff Housing 0.53 0.36 0.89 0.08 0.06 0.14 1% 40% d. Farm Build- ings 0.83 0.55 1.38 0.13 0.08 0.21 1% 40% Sub-Total (a-d) 17.29 11.54 28.83 2.70 1.80 4.50 25% 40% 2. Furniture 2.14 1.43 3.57 0.35 0.22 0.57 3% 40% 3. Equipment 2.11 40.13 42.24 0.33 6.27 6.60 38% 95% 4. Professional Services 1.87 0.47 2.34 0.29 0.07 0.36 2% 20% Sub-Total (2-4) 6.12 42.03 48.15 0.97 6.56 7.53 43% 5. Technical Assistance Experts 2.75 11.14 13.89 0.43 1.74 2.17 12% 80% 6. Fellowships 0.26 2.30 2.56 0.04 0.36 0.40 2% 90% Sub-Total (5-6) 3.01 13.44 16.45 0.47 2.10 2.57 14% 7. Contingencies a. Physical 1.92 1.22 3.14 0.30 0.19 0.49 3% b. Price 5.44 11.13 16.57 0.84 1.75 2.59 15% Sub-Total (7a-b) 7.36 12.35 19.71 1.14 1.94 3.08 18% 8. Total Project Cost including Contin- gencies 33.78 79.36 113.14 5.28 12.40 17.68 100% Cost Estimates 4.28 The construction cost estimates have been derived from recent school building costs in the Philippines adjusted to accommodate improvements in design and construction, particularly to withstand seasonal typhoons. The -  - 18 - construction costs per square meter of gross floor area range from US$70 for secondary and post-secondary level institutions to US$100 for the agricultural universities. The unit costs per student place and the average utilization factors of facilities of the few new project institutions that are comparable to previous projects compare favorably with similar Bank/IDA financed projects in other countries (Annex 15). A local cost adjustment of between 5% and 20% has been included for schools outside the Manila area. Site development costs vary between 10 and 20% of the building costs. Furniture and equipment cost estimates are based on 1971 prices and on approximate quantities related to local program requirements. Detailed lists would be compiled during project implementation. 4.29 Contingency allowances are shown in detail in Annex 16. For un- foreseen factors, 10% is added to the cost estimate of site development, con- struction and professional services. Price increases are estimated at 6% per annum for all local expenditures except for furniture (3%). Foreign price increases are estimated for civil works at 6%, furniture at 3%, equip- ment at 3.5% and technical assistance and fellowships at 5%. Overall, con- tingencies are equivalent to about 21% of the total estimated cost of the project. Foreign Exchange Component 4.30 The foreign exchange cost estimate, determined on the basis of prevailing prices and dollar equivalents at the time of appraisal, amounts to US$12.4 million equivalent or 70% of the total estimated cost calculated as follows: 40% for site development and building; 40% for furniture; 95% for equipment; 80% for experts; 90% for fellowships and 20% for professional services. V. IMPLEMENTATION AND DISBURSEMENT Execution of the Project 5.01 To avoid delays in project execution, similar to those in the first project (para 1.02), the government has agreed to establish a Special Fund and to replenish the Fund at monthly intervals in an amount equal to the estimated total expenditure for the project less the amounts to be paid directly by the Association during the next three months' period. 5.02 Responsibility for school planning and design and for procurement of furniture and equipment is fragmented among several government agencies. To minimize any possible problems in project implementation, the government has established a Project Unit in the Department of Education, to be respon- sible to the Secretary of Education for (a) supervision of project implemen- tation; (b) coordination with other government services and related agencies; and (c) liaison with the Association. The Unit will consist of an executive director, an architect, an educator, a procurement officer and a financial officer, who will have adequate supporting staff, office space, furniture  - 19 - and equipment and transpor-tation. The executive director, educator and architect have been appointed. The principal officers of the Unit have already been selected by the government and agreed by the Association. The salary of the procurement specialist will be a part of the proposed project. Professional Services 5.03 The design and supervision of construction would be carried out by private local architects and the Department of Public Works; master planning, design and supervision of construction schedules for the Education Develop- ment Center, the agricultural universities and technical institutes would be assigned to the private architects, assisted in the case of CLSU by the institutional planner being provided under technical assistance (Annex 6). The architects and planner would be approved by the Association. Site Acquisition 5.04 Sites for construction of new institutions and extensions included in the project are acceptable except for two regional manpower training centers, the sites for which are in the process of selection and acquisition. The government has agreed to take such action as is necessary, to complete such acquisition. Procurement 5.05 Contracts for the supply of furniture and equipment and for construc- tion work would be awarded under IDA Guidelines for international competitive bidding, except that, contracts for furniture and equipment under $40,000 equivalent, up to a total of $250,000, may be awarded after local competitive bidding. Items would be grouped to the extent practicable to encourage com- petition. The construction and furniture industries in the Philippines are capable of meeting the needs of the project and it is unlikely that many foreign bidders would be attracted except for equipment, most of which would be imported. A preference of 15% will be given in the evaluation of bids for equipment, materials and supplies substantially of Philippines origin and offered by Filipino manufacturers. The Bank has accepted this preference before (Loan 637-PH). 5.06 The services of an equipment and furniture procurement specialist are required to set up a bid system, assist in preparing and evaluating furniture, supplies, materials and equipment lists, specifications and bids and training counterparts. The government has agreed that this specialist would be appointed not later than six months after the signing of the Credit Agreement. Disbursement 5.07 The proposed Credit would amount to US$12.7 million equivalent, or 72% of the total project cost. It would finance the foreign exchange component of US$12.4 million equivalent up to US$0.3 million equivalent of local currency financing to cover the ex-factory cost of locally procured equipment, furniture and educational materials. The Credit would be disbursed  - 20 - to meet: (a) the c.i.f. cost of imported or ex-factory cost of equipment, furniture and educational materials produced by local firms of Philippine nationality; (b) total costs of technical assistance (specialists and fellow- ships) as regards international travel, remuneration and allowances; and (c) 38% of the cost of construction and professional services. Undisbursed amounts would be available for cancellation. 5.08 Construction and equipping of schools would be completed in about 3-1/2 years from the date of the Credit Agreement (Annex 17) but the techni- cal assistance component would extend over a period of six years (Annex 18); the estimated schedule of disbursements is shown in Annex 19. VI. AGREEMENTS REACHED AND RECOMMENDATION 6.01 During the negotiations agreement was reached on the following matters: (a) the further development and rationalization of higher agricultural education in general (paras 3.17-3.19) and of OfU and CLSU in particular (paras 4.13, 4.15 and 4.16); (b) the organization, operation, staffing and financing of the OPS and CCU, the Education Development Council, the agricul- tural high schools, pilot barrio (village) development schools, the technical institutes and the regional manpower training centers (paras 4.03, 4.04, 4.08, 4.09, 4.11, 4.20, 4.21, 4.23 and 4.24); (c) a training program for personnel of the CMU radio station (para 4.18); (d) the implementation of a technical assistance program (para 4.25); (e) the establishment of a special local currency fund with adequate funds for the project (para 5.01); and (f) the acquisition of sites for project institutions (para 5.04). 6.02 The proposed project is suitable as a basis for an IDA credit of US$12.7 million equivalent to the Republic of the Philippines, repayable over a 50-year period, including a 10-year grace period.  ANNEX 1 Page 1 EDUCATION IN THE PHILIPPINES Introduction Serious educational problems in the Philippines are inherent in its population pattern. The Philippines has a total population of 40 mil- lion (1972), which is estimated to increase to 59 million by 1985. Almost half the population is less than 15 years old (Table 1). There are over twice as many persons in the 0-4 age group as in the 20-24 year age group. These figures presage a very large increase in enrollment in schools in the years immediately ahead. Historical Background The antecedents of and influence on the Philippines educational system are both Spanish and American and stretch back 400 years. The Spanish influence may also be seen in the large number of private institutions with religious affiliations particularly at the secondary and higher levels. The influence of the United States is apparent in the operation of a substantial Government-supported elementary school program, strong teacher training programs and the large number of teachers who take their advanced degrees in the United States. Educational Studies and Surveys The Philippine system of education has been one of the most inten- sively studied systems in the world. The first comprehen3ive survey dates back to 1925 and has been followed by some 12 other major studies (Annex 4). Administrative Structure and Organization In the Philippines, education is a government responsibility, even though over half of secondary education and over 90% of higher education is conducted in private institutions. Education is administered by the Department of Education and Culture headed by the Secretary who is a member of the President's Cabinet. Four service units carry out departmental responsibili- ties: (1) Planning Service; (2) Financial and Management Service; (3) Administration Service; and (4) Information and Publication Service. The schools are administered through three bureaux: (1) Bureau of Elementary Education: (2) Bureau of Secondary Education; and (3) Bureau of Higher Education.  ANNEX 1 Page 2 In practice, the Secretary of Education and Culture delegates responsibility for the operation of the schools to the bureaux. He retains responsibility for final action on the educational budget, appointment of certain school personnel and basic policy decisions. The National Board of Education is legally the principal policy- making body for education; it is composed of the following! (1) The Secretary of Education and Culture; (2) The Chairman of the Committee on Education in the House of Representatives; (3) The Chairman of the Committee on Education in the Senate; (4) The President of the University of the Philippines; (5) Chairman of National Science Development Board; (6) Undersecretary of Education and Culture; (7) Three prominent citizens; and (8) The Directors of Elementary, Secondary and Higher Education Bureaux as nonvoting members. Coordination is intended to be achieved by the Secretary of Education serving as Chairman of the Board. To perform its policy-making ftmction, the Board constitutes study committees on various aspects of education; it also conducts hearings to obtain comments and suggestions on educational policy. The Board refers committee reports and recommendations on new policies to the Department of Education and Culture for implementation. The Board and/or Department also attempt to secure enactment of legislation to implement new policies. Congress, through its Education Com- mittees in the House of Representatives and Senate, also enacted educational statutes on its own initiative. Such laws became policy, to be implemented whether or not the Board or the Department concurred. The Department of Education and Culture oversees the operation of private educational institutions. The control is minimal, however, and is limited largely to the establishment of academic standards. An analysis of the administrative structure of education indicates a number of weaknesses. The Department has developed without adequate plan- ning and lacks appropriate planning machinery; there is an over-centralization of authority in the Secretary of Education, who is burdened with a large variety of functions; the Department's field administrators have few oppor- tunities to exercise individual initiative and creativity. The National Board of Education has too many statutory functions which do not allow it to give adequate time to study long range plans and policies; it has never become fully operative as the principal policy-making body as it does not have the power to implement the policies it recommends. The Chairman and members of the Education Committees of the Congress were influential in determining policy; the power of implemention of policy  ANNEX 1 Page 3 lay in the House and Senate. There was therefore substantial political in- fluence in educational policy and planning. Individual legislators often set up educational institutions in the areas they represented even though these might have an adverse effect on the total education system and often contrib- ute to production of trained manpower in excess of requirements. Fiscal constraints (Annex 3) seriously handicap all aspects of educa- tion; whether from lack of sufficient funds or from unwise expenditure for items of low priority the result is the same - inadequate services, supplies, books and equipment. Structure of the System (Chart 1) The school system of the Philippines in 1970 enrolled an estimated 9.7 million pupils (Table 2); 78% were enrolled in public schools. Nearly all pre-school children were in private schools; at other levels the division between public and private schools is given in Annex 3, Table 1. Elementary education comprises 6 years; secondary and higher educa- tion are usually each of 4 years duration. The length of schooling is less than that in most other countries. Schools not administered by the Department of Education and Culture include the National Defense College, the Philippine Military Academy, the Academy of Financial and Social Welfare and miscellaneous training schools. The people of the Philippines have a high regard for education and, measured in terms of financial inputs, are making a prodigious effort to support it. The achievement of the Philippine education system is impressive too, in terms of the percentage of the relevant age groups being educated. Virtually all children of elementary school age are in school, about 71% of the secondary age group, which is very high for a developing nation, and 25% of the college age group; the latter figure places the Philippines second only to Canada and the United States in this respect. Quality, however, leaves much to be desired. There is a serious lack of textbooks, library books and equipment for science, industrial arts, home economics and business education. School buildings are very poor and badly maintained. There is a high dropout rate throughout the system. Of each 100 pupils who commenced grade 1 in elementary schools in 1962-63, only 56 were in attendance in the 6th grade, six years later. Of these 56, only 42 started secondary school and only 30 were expected to continue until the fourth year. Of this remaining group, some 24 were expected to enter university and only 15 reach the final year. Only some 13 out of the original 100 would graduate. These figures assume no repetition although repetition is widespread. Pre-school Education Pre-school education includes nursery schools (3-4 year age group) and kindergartens (5-6 year age group). Although it is not required for entrants into the first grade of elementary education, many parents are anxious that their children should have this experience and the enrollment  ANNEX 1 Page 4 has increased from an estimated 33,000 in 1966 to 58,000 in 1972. Basic data for nursery schools and kindergartens in 1972 is estimated to be as follows: Pupil/ Percent of Teacher Age Group Percent Grades Enrollment Teachers Ratio in School Boys/Girls Nursery 28,000 1,000 28:1 2 53 47 Kindergarten 30,000 1,000 30:1 2 53 47 Total Pre- elementary 58,000 2,000 29:1 2 53 47 Elementary Education Elementary education comprises 6 years of instruction in most schools but a few schools in rural areas have only the first 4 grades. Al- though the Elementary Education Act of 1953 authorized 7th grade instruction in all elementary schools, financial constraints have prevented its imple- mentation. There is a limited enrollment in a 7th grade in a very few elementary schools. Ninety-five percent of elementary school enrollment in 1970 was in public schools supported by the central Government and was both free and compulsory, although compulsory attendance is not always enforced. Educational achievement in the elementary schools is not as high as it should be, due, in part, to lack of textbooks and in part to difficulties related to the time involved in studying languages. Instruction in the first 2 years is in the local vernacular with Filipino and English as formal subjects. English becomes the medium of instruction thereafter. In the public sector some 95% of elementary teachers are officially classified as fully qualified; almost 72% are 4-year college graduates and 24% have graduated from 2-year normal colleges, agricultural colleges or schools of arts and trades. The majority of the remainder are graduates from earlier 3-year college teacher training programs. Data for the private sector is not available but it is assumed that most of the teachers in these schools are qualified. The teacher/pupil ratio is estimated to be approximate- ly 30:1 and teacher turnover negligible. Basic data for elementary education in 1970 were estimated to be as follows: (more details are given in Annex 2, Table 2). Pupil/ Percent of Teacher Age Group Percent Grades Enrollment Teachers Ratio in School Boys Girls 1-6 7.0 million 0.24 million 29.1 119* 51 49 * Due to overaged pupils.  ANNEX 1 Page 5 General Secondary Education Secondary education is of 4 years duration. The enrollment of 1.9 million in 1970 (grades 7-10 including 0.15 million in vocational secondary schools) represented 71% of the age group. Projections of future enrollment vary according to estimates of population growth and future government policy (Annex 3). Of the total enrollment in secondary schools, some 67% were in private schools in 1968-69; of these, 62% were in non-sectarian schools, 35% in Catholic and 3% in Protestant schools. In the public sector, financial support for secondary schools comes from a variety of agencies: in the case of 158 schools from the central Government; for 96 schools, from provincial governments; for 104, from city governments; and for 25, from municipalities. Most of the public and all private secondary schools charge fees. In city and municipal schools, the fee is nominal (in a few cases no fees are charged), but in provincial and national high schools, fees of approximately $15 per year are charged. In private secondary schools, tuition fees vary from $15 to $150 per annum. The increasing demand for secondary school places and the inability of the agencies mentioned above to provide for them resulted in 1964 in the establishment of the first barrio (village) high schools as a result of the initiative of the population in rural areas. From an original enrollment of 350 pupils in one school, the number grew rapidly and now includes 1,500 schools with 160,000 pupils. The schools are managed by village councils and were originally intended to be financed exclusively from student fees. The students would earn the required income through work projects, particu- larly agriculture, for which time was allocated in the curriculum. In re- cent years, however, greater emphasis has been placed on preparation for higher education and the work-oriented element has been reduced. The quality of secondary education gives cause for concern; it is considered to be the weakest link in the educational ladder. There is a 25% dropout rate and although 80% of those completing secondary school enter higher education, they are poorly prepared and are particularly deficient in English, science and mathematics. In 1960 Congress adopted a 2-2 curriculum plan, under which 2 years of general education would be provided for all students, followed by 2 years of either an academic or vocational stream. As funds for provision of additional workshops and equipment could not be obtained, however, the 2-2 plan has never been implemented in more than about 5% of the schools. The other secondary schools continue with an academic curriculum, with one vocational course (usually including arts and crafts for all students, woodwork and sometimes metalwork for boys and home economics for girls) in each of the 4 years. Again, fiscal constraints and shortage or absence of equipment make the teaching of these courses rudimentary. Buildings are generally of very poor quality and inappropriate design and the almost universal lack of equipment and books results in largely verbal teaching with little or no demonstration or practical application. There is an excess of secondary teachers in most areas with the exception of the fields of science, industrial arts and music, where short- ages exist. About 94% of general public school teachers are qualified college graduates and the figures in vocational and private schools are  ANNEX 1 Page 6 believed to be of the same order of magnitude. Most vocational subject teachers, however, have very little industrial experience and those with such experience are often attracted away by opportunities in private enter- prise. Few science classes in schools involve student participation and even teacher demonstration methods are limited by shortages of equipment. The teaching of social studies is based on earlier patterns with separate instruction in history and geography often not related to Philippine condi- tions; little attention is paid to more relevant instruction in population and economic development. Teachers in secondary schools suffer from over- crowded classrooms but appear to be devoted to their work and endeavor to provide the best instruction possible. The rate of turnover amongst secondary teachers is less than 1%; women constitute 67% of the teaching force. Basic data for general secondary education in 1970 was estimated to be as follows. (More details are given in Annex 2, Table 2.) Pupil/ Percent of Teacher Age Group Percent Grades Enrollment Teachers Ratio in School Boys Girls 7-10 1.9 million 0.05 million 36:1 71 50 50 Higher Education Of the 650 institutions offering higher education in 1969, 560, or 86%, were privately operated. In the public sector there were 22 chartered state colleges and universities, 65 colleges operated by the Bureau of Vocational Education (BVE) and 6 under the Bureau of Public Schools, all supported by the central government. Higher education has never been viewed in the context of manpower needs. Some 34% of the students take education courses, 24% social sciences, and only 0.6% agriculture and 0.05% forestry (Table 3). Higher education is largely concentrated in the Manila area where 16 out of the 42 major universities (providing for more than 40% of the en- rollment) are located. The number of graduates produced in nearly every field is second only to that in the United States and Canada and represented 25% of the age group in 1970. It is estimated that 30% of the students drop out and some 25% are repeaters. In 1969 there were 400 institutions offering teacher training courses - 360 private institutions, 15 under the Bureau of Vocational Education, 14 city colleges and 5 state universities. The result is a substantial overproduction of qualified teachers; in 1969 there were 57,000 applications for 8,000 teaching posts. Higher education, while quantitatively more than adequate for Philippine needs suffers from serious qualitative deficiencies. Financing is uncertain, frequently limited to the proceeds from low tuition fees; com- mercialism is pronounced. The qualifications of most faculty members are no higher than those for which their students are studying (it is estimated that some 63% have Bachelors degrees, 24% Masters degrees and 3% Ph.D.s); faculty  A,NNEX 1 Page 7 tenure is almost non-existent. An open system of admission allows any secondary school leaver to enter college and his continuation is usually regulated only by his ability to pay the fees. The normal duration of courses is 4 years, which, in view of the low standard of entrants, is inadequate for training to first degree level; a number of universities are now extending Bachelors courses to 5 years duration and others are considering the possibility of a pre-college year. Government influence and regulation of private institutions is minimal; the regulatory body, the Bureau of Private Schools, was merely a licensing authority, since its limited staff could not visit, let alone enforce, regulations and standards in so many institutions. Accreditation is in its infancy (only 28 institutions belong to the Philippine Accrediting Association of Schools, Colleges and Universities) although the Fund for the Advancement of Private Education (FAPE) is taking steps to develop better accreditation systems. Technical Training Public vocational and technical education was administered by the Bureau of Vocational Education. The Bureau of Private Schools exercised limited control over private vocational/technical institutions. Special skill training programs are under the supervision of the National Manpower and Youth Council (NMYC), in cooperation with vocational institutions. There were, in 1969/70 under the BVE, 113 schools of arts & trades (SATs) and there were also some 650 private vocational schools, most offer- ing only short courses in a variety of trades. MIany of the public vocational schools were established by converting general secondary schools in order to obtain central government financial support through the BVE. Many of the changes were in name only and little attempt was made to recruit staff with appropriate qualifications and to pro- perly equip the institutions. Eighty-six percent of the students are en- rolled in 4-year secondary programs, and 30 of the 113 SAT's also offer 2-year post-secondary courses for craftsmen. The four-year program includes 43% practical work and provides training mainly in automotive mechanics, general mechanics, building construction, electricity, woodwork, textiles, food trades, cosmetology, etc. The 2-year post-secondary courses offer 50% practical work and concentrate mainly in the same fields. There is a wide difference in quality of training provided in SATs, related to adequacy of staff, accommodation and equipment, and the lack of uniformity makes the introduction of uniform trade testing almost impossible. Most of the pupils attending secondary courses are too young to obtain full benefit from the practical element of the training provided; there is a 41% dropout rate. Many of the schools are situated remote from industry with which there is little or no liaison. In the school year 1968-69 only 58% of school leavers were able to obtain appropriate employment; industry is critical of the train- ing provided. Some 34% of school leavers from vocational schools move into higher education of a non-vocational nature, which represents a drain on the limited financial resources available for education.  ANNEX 1 Page 8 It is difficult to obtain information on private vocational second- ary schools but it is apparent that only 3% of their enrollment is receiving true secondary level instruction and the majority of the remainder take ad hoc courses of short duration in a variety of vocational subjects. There is a very limited apprenticeship program operated by the Department of Labor and industrial sponsors. At least 2,000 hours of on-the- job training and 100 hours of related instruction are needed for the award of a Certificate of Proficiency in a trade. Only 1,800 apprentices have com- pleted this training in the last decade. In 1968 a national manpower training program was inaugurated to accelerate skill training to meet the manpower requirements of expanding in- dustries. A National Manpower and Youth Council (NMYC) was set up in 1969 and has drawn up programs for skill training, utilizing facilities in exist- ing vocational/technical schools. The scheme is designed for out-of-school youth and for the up-grading of industrial employees, who are trained in short unit courses of from 3 to 6 months' duration in such occupational areas as metalwork, mechanical and electrical trades, electronics, air conditioning, construction, agriculture and farm mechanics. The program has proved popular and some 100,000 participants have undertaken training since it began. The NMYC, with ILO assistance, is now introducing new programs based on uniform modules of skill and the instructor training program to start shortly at the National Manpower Skills Center in Manila will unify and strengthen the whole pattern and thereby make the introduction of trade-testing on a national basis possible. In the field of higher education, undergraduate courses in engineer- ing are offered at seven public institutions and post-graduate courses at the University of the Philippines. In the private sector there are 41 universities offering undergraduate courses while eight offer post-graduate training. Total enrollments in engineering five-year degree courses are ap- proximately 40,000, with an annual output of some 4,000, but the size of the output of trainees with post-graduate qualifications is very limited. Although, on average, the ratio engineers:technicians:skilled workers should be 1:5:25, the industrial manpower pyramid in the Philippines is dis- torted due to a substantial over-production of engineers and limited tech- nician training. Some regional vocational schools have been elevated to the level of state chartered institutions and authorized to offer higher voca- tional and technical education, but the courses they provide, which range from 1 to 3 years in duration, cannot be described as true technician courses. About 135 private engineering colleges offer two-year associate degree courses in engineering but these also cannot be considered as technician courses as the curriculum in most of them is identical with that of the first two years of engineering degree courses. Agricultural Education Agriculture is included at the elementary school level in the form of gardening, which is usually taught by trained agricultural teachers but  ANNEX 1 Page 9 suffers from the problems inherent in elementary education as a whole: limited financial provision, lack of equipment and teaching materials, and, in particular, an unattractive salary scale for agricultural teachers. At the secondary level, there are 85 agricultural high schools, formerly operated under the BVE; 25 of these also offer degree programs; 5 public institutions, primarily offering degree courses, also have high school programs. There are 16 private institutions offering high school agricultu- ral courses. 13 state colleges and universities offer degree level instruc- tion and 9 of these also offer secondary level programs, All agricultural schools fall under the umbrella of the Department of Education and Culture which exercises varying degrees of control, ranging from practically nil in the case of chartered state institutions to limited control over private schools and close centralized supervision of vocational schools. State colleges and universities exist as autonomous institutions and are governed by Boards of Regents. High school programs take 2 main forms; in many general secondary schools in rural areas there is an elective 2-year vocational course in agriculture; there are also agricultural high schools with much stronger agriculture-related courses. It is difficult to assess the effectiveness of the general high school programs because these schools lack the financing that vocational schools receive from the Government. Funds are often barely sufficient to pay for the services of the teachers at the minimum wage levels of unskilled workers and only rarely are agricultural teachers in such schools properly qualified. The aim of the agricultural high school program is to train present and prospective farmers for proficiency in farming. The program has expanded rapidly until the vocational schools and others operated by chartered colleges and universities have an enrollment of about 35,000 and an output of some 6,000 each year. The country has some 3,000,000 farmers, however, and this limited output hardly approaches the true need. The shifting of emphasis in secondary education away from the vocational towards college preparation has also affected agricultural high schools; there are now signs of a readjustment to the original purpose through introduction of a new curriculum giving a greater amount of time for practical work and the establishment of super- vised farming programs at school farms; two pilot projects are under way. The University of the Philippines College of Agriculture (TJPCA) has introduced a new concept of agricultural education at the high school level through a Pilot Barrio (Village) Development School, in which 50% of the time is spent by pupils carrying out supervised farming programs on their own or their parents' farms; the courses are terminal and do not prepare for college entrance.  ANNEX 1 Page 10 At the post-secondary level, eight schools offer one-year or shorter training programs known as "opportunity courses", dealing with poultry husbandry, pig raising, farm mechanics, etc., which are designed in theory to provide for middle level technicians but are inadequate for this purpose in almost all respects. The courses are not popular as they do not offer degrees on completion; they are usually used as a means of gaining entry to degree programs. Degree-granting agricultural colleges are far more numerous than is required. Their programs and curricula are strongly oriented to the content of the academic stream of university education rather than to contemporary problems of the economy and of the communities within their service area. The BSA (Bachelor of Science in Agriculture) normally takes four years (two-year associate degree programs are offered in only four institutions) but, in 1967, UPCA, the principal agricultural education institution in the Philippines, decided to offer a five-year program because of the low level of the intake of students from secondary schools and the continuing advances in agricultural science and technology. The action of the UPCA precipitated similar moves at the Central Mindanao University and one other college but more institutions are expected to follow suit. Of the 54 degree-granting institutions, all offer BSA degrees in one or more of eleven major fields: agronomy, animal husbandry, botany, chemistry, economics, entomology, engineering, extension, general subjects, plant pathology, and soils; the UPCA offers also poultry and communications. The most popular courses are the general curricula, agronomy and animal husbandry programs. Fifteen colleges offer teacher training programs (B.S.Ag.Ed.), and five offer agricultural home technology (B.S.Ag.H.E.). Little attention is paid in ex- isting curricula to courses relevant to the modern sector of Philippine agri- culture. Agricultural business management is offered in only two out of the 54 colleges and agricultural engineering is provided in badly-equipped facili- ties in only six institutions. Irrigation is not taught as yet as a major sub- ject in any institution. Forestry, one of the major industries in the Philippines, is offered in only four institutions and only one of these has adequate practical training facilities. Farmer education receives little attention in the Philippines. Ad hoc courses are provided by a number of bureaux of the Departments of Agri- culture and Natural Resources; sales promotion units of private agricultural suppliers, manufacturers and distributors provide training, mainly in the proper use of their products.  ANNEX I Table 1 PHILIPPINES POPULATION PROJECTIONS - 1970-1985 FIGURES IN THOUSANDS. AS OF JULY 11/) Age 1970 1975 1980 1985 All Ages 37,179 43,312 50,457 58,780 0 - 4 6,996 8,426 9,888 11,605 5 - 9 5,734 6,704 7,915 9,294 10 - 14 4,608 5,487 6,422 7,553 15 - 19 | ?,966 4,406 5,252 6,124 20 - 24 3,243 3,772 4,196 4,988 25 - 29 2,627 3,074 3,583 3,976 30 - 34 2,149 2,487 2 916 3,392 35 - 39 1,769 2,031 2,356 2,756 40 - 44 1,458 11,665 1,917 2,218 45 --49 1,221 1,361 1,559 1,792 50 - 54 1,024 1,125 1,260 1,441 55 - 59 828 i 925 1,021 1,143 60 - 64 612 I 725 815 901 65 - 69 418 509 608 685 70 -- 526 615 749 912 1 / ' These projected totals were computed on a 3.1% rate of growth using the May 6, 1970 preliminary figure. Age distributions as projected by the "Component Method" using the 1960 Census figures were adjusted to arrive at the projected totals. Source: Bureau of Census and Statistics  PHILIPPINES - II ENROLLMENT AND TEACHERS BY LEVEL OF EDUCATION - ALL SCHOOLS. 1970 - 1980* GRADE AND LEVEL 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 Pre-Elementary Nursery 23,000 25,000 28,000 30,000 33,000 37,000 40,000 44,000 48,000 53,000 58,000 Kindergarten 26,000 28.000 30.000 34,000 37,000 40,000 4.000 48.000 53.000 58.000 63.000 Total 49,000 53,000 58,000 64,000 70,000 77,000 84,000 92,000 101,000 111,000 121,000 Elementary 1 1,616,000 1,517,000 1,555,000 1,608,000 1,664,000 1,705,000 1,764,000 1,782,000 1,809,000 1,814,000 1,823,000 2 1,342,000 1,434,000 1,359,000 1,385,000 1,446,000 1,498,000 1,553,000 1,598,000 1,605,000 1,617,000 1,627,000 3 1,205,000 1,264,000 1,349,000 1,289,000 1,308,000 1,363,000 1,413,000 1,438,000 1,471,000 1,482,000 1,497,000 4 1,107,000 1,115,000 1,167,000 1,245,000 1,196,000 1,210,000 1,259,000 1,278,000 1,291,000 1,309,000 1,315,000 5 937,000 1,042,000 1,055,000 1,102,000 1,175,000 1,134,000 1,145,000 1,164,000 1,172,000 1,182,000 1,189,000 6 869.000 850,000 941.000 956,000 997,000 1,063,000 1,028,000 1.010,000 1,016,000 1,021.000 1,030,000 Total 7,076,000 7,222,000 7,426,000 7,585,000 7,786,000 7,973,000 8,162,000 8,270,000 8,364,000 8,425,000 8,481,000 Secondary 1 655,000 74;,000 730,000 803,000 819,300 853,000 909,000 882,000 889,000 922,000 956,000 2 512,000 588,000 649,000 644,000 703,000 721,000 751,000 799,000 780,000 784,000 812,000 3 401,000 492,000 539,000 595,000 595,000 647,000 665,000 693,000 735,000 723,000 726,000 4 325.000 388 000 425.000 466,000 515,000 517.000 561.000 577.00 602,000 639,000 630.000 Total 1,893,000 2,209,000 2,343,000 2,508,000 2,632,000 2,738,000 2,886,000 2,951,000 3,006,000 3,068,000 3,124,000 Higher 1 240,000 286,000 305,000 336,000 370,000 408,000 412,000 446,000 459,000 478,000 508,000 2 192,000 214,000 258,000 278,000 305,000 337,000 371,000 378,000 407,000 420,000 438,000 3 158,000 159,000 177,000 213,000 231,000 253,000 279,000 308,000 315,000 338,000 350,000 4 143.000 173,000 165,000 182,000 218.00 238,000 261,000 287,000 317,000 327,000 350,000 Total 733,000 832,000 905,000 1,009,000 1,124,000 1,236,000 1,323,000 1,419,000 1,498,000 1,563,000 1,646,000 TEACHERS NEEDED Pre-Elementary 2,000 2,000 2,000 2,000 3,000 3,G00 3,000 3,000 4,000 4,000 4,000 Elementary 236,000 241,000 248,000 253,000 260,000 266,000 272,000 276 ,ooe 279 ,000 281 ,000 283 ,000 Secondary 53,000 61,000 65,000 70,000 73,000 76,000 80,000 82,000 84,000 85,000 87,000 Higher 32,36,0000 39000 44.000 49,000 54,000 58,000 62,000 65.000 68,000 72.000 Total 323,000 340,000 354,000 369,000 385,000 399,000 413,000 423,000 432,000 438,000 446, 000 PUPIL-TEACHER RATIO is not possible to make accurate enrollment projections as (a) school children have not been counted on a national basis since 1967 and (b) the last population census for which complete results are available was in 1960. The above projections. > Pre-Elementary 27:1 are based on estimates prepared by the Presidential Commission to Survey Philippine Education, modified in the light of in- t Elementary 30:1 formation obtained in the field at the time of appraisal. An analysis of alternative estimates of enrollment Secondary 36:1 based on various different assumptions is given in Annex 3. Higher 23:1  Ai1X 1 Table 3 PHILIPPINES COLLG1GE ENROLLME&IT BY COURSE - PUBLIC AND PRIVATE 21970 Discipline Number Enrolled Percent of Total Humanities 113,593 15.5 Education 251,371 34.3 Fine Arts 8,062 1.1 Law 16,123 2.2 Social Sciences 175,154 23.9 Natural Sciences 2,931 0.4 Engineering* 68,156 9.3 Medical Sciences 27,116 3.7 Agriculture 4,397 o.6 Forestry bO4 0.05 Graduate Education 9,527 1.3 Unspecified 56,430 7.7 Total 733,261 100 * Includes those enrolled in courses of less than degree standard.   ALKa I (MSWIT. soo-os I I St T..I .1 11S S .11. 1
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45 - 91) (I - 54) (1.4 . 6,3) (6.3 . 29 - I-1) M - I ff . (t - 32) (13 30) I! - U) 17 4.4 to 8, 21 I., I. 6 14 25 I ':.' I I4, , '1'2 S M5 I.. I.D- M.) 9" D 'D-1, I q- ((3) Mo f-Id C--L S-S- .1, -1 L,)-(12) W) "U. .1 369 W.MF 10 P"-,. 19n S 1012   ANNEX 3 Page 1 FINANCING AND COST OF EDUCATION Introduction 1. The national government is required by the constitution to "estab- lish and maintain a complete and adequate system of public education, and shall provide at least free public primary instruction."* It has been be- yond the financial capability of Philippine society to fulfill both require- ments. The national government has been able to establish and maintain free** and complete primary education, but only at the cost of neglecting secondary and higher education, which is mainly left to the private sector (tables 1 and 2). Table 1: PERCENTAGE DISTRIBUTION OF ENROLLMENT BETWEEN PUBLIC AND PRIVATE SCHOOLS, 1968-69 Public Private Elementary Education 95 5 Secondary Education 33 67 Higher Education 7 93 Table 2: ENROLLMENT IN ELEMENTARY, SECONDARY AND HIGHER EDUCATION AS A PERCENTAGE OF THE RELEVANT AGE GROUPS Elementary Enroll- Secondary Enroll- Higher Enroll- ment as % of 7-12 ment as % of 13-16 ment as % of Years Old Years Old 17-20 Years Old 1960-61 ... 92 27 13 1961-62 ... 94 28 14 1962-63 ... 99 31 16 1963-64... 104 34 16 1964-65 ... 109 35 18 1970-71 ... 119 71 25 * Article XIV, Section 5 of the Philippine Constitution. ** No fees are charged in public elementary schools.  ANNEX 3 Page 2 Expenditure on Education 2. Total national expenditure on all types of formal education for 1972 is estimated at US$381 million, or 4.6 percent of expected GNP. The national Government contributes only 55% of this amount or US$207 million; this represents 26% of the national budget and is allocated as follows: Table 3: ALLOCATION OF THE NATIONAL GOVERNMENT'S EDUCATION BUDGET AND OF TOTAL NATIONAL EXPENDITURE 1972 National Government Budget Total National Expenditure US$ US$ Millions Percentage Millions Percentage Elementary Education 175 85 194 51 Secondary Education 7 3 65 17 Vocational Education 1 _ 9 2 Higher Education 24 12 113 30 Total 207 100 381 100 Thus the national government allocates nearly all its education resources to elementary education and very little is available for the other levels of education. Too high a proportion of non-Government expenditure is spent on higher education. Secondary education is severely under-financed. 3. US$134 million (35 percent of the total expenditure on education) is expected to come from student's fees. Fees are charged at all levels, whether private or public, except in public elementary schools. They vary from US$16 per annum in the rural barrio high schools, (some of which the school repays, depending on the student's own work) to US$320 in some of the private universities. The average student fee for each level is given in the following table:  ANNEX 3 Page 3 Table 4: AVERAGE ESTIMATED STUDENT'S FEES FOR EACH LEVEL OF EDUCATION 1972 US$ Pesos Elementary Education... 16 100 Secondary Education .... 18 110 Vocational Education ... 14 85 Higher Education ....... 96 600 4. Local governments (municipal, city and provincial authorities) are expected to contribute US$40 million (11 percent) to the total expenditure on education, which includes transfers from the national government. At pre- sent, the maintenance of public secondary education, except in the so-called nationalized high schools, is the responsibility of local governments. Due to lack of taxation powers, other than property taxes, these governments are to a great extent dependent on transfers from the national government. Since these transfers are inadequate, the local governments have difficulties in providing the necessary accommodation for the growing school population. Many provincial governments prefer to channel the increase in secondary en- rollment into rural barrio high schools, which are private and, therefore do not have to be funded by public means. The Presidential Commission to Survey Philippine Education has recommended that the local governments should take over the responsibility of financing elementary education. Such a shift in financing would allow the national government to greatly increase its financ- ing, and thereby control, of secondary and higher education and at the same time give control over elementary education to the local communities. This recommendation would involve the following measures for successful implement- ation: first, a new tax base should be given to the local governments, which will ensure adequate funds; second, a general fund should be established, which would transfer resources from the richer to poorer local governments; third, a nationwide uniform pay scale for elementary teachers should be maintained; fourth, the national government should enforce minimum standards for elementary education. These measures would not be easy to bring into effect since they would alter long established practices. Particular care should be taken to avoid the danger of financial responsibility being shifted to local governments without implementation of the above measures, which are necessary to prevent a decrease in quality and a heterogeneous elementary education system. Recurrent and Capital Expenditures on Education 5. Recurrent expenditures command by far the greatest share of the to- tal expenditures on education. For 1972 it is estimated that US$347 million, or 91 percent of these expenditures, will be spent on recurrent outlays. The share of the recurrent and capital budgets of the various levels are as follows:  ANNEX 3 Page 4 Table 5: THE DISTRIBUTION OF RECURRENT AND CAPITAL EXPENDITURES BETWEEN LEVELS OF EDUCATION FOR 1972 Expenditures (in US$ million) Total Recurrent Capital Amount % Elementary Education 178 16 194 51 Secondary Education 58 7 65 17 Vocational Education 7 2 9 2 Higher Education 104 9 113 30 Total 347 34 381 100 Percentage 91% 9% 100% Recurrent Unit Costs. Enrollments at the different levels of education are not exactly known but, using different assumptions, can be estimated as fol- lows: Table 6: ALTERNATIVE ESTIMATES OF ENROLLMENT AT EACH EDUCATIONAL LEVEL IN 1972 Alternative 1 2 3* (000) Elementary Education 7,630 7,430 7,310 Secondary Education 2,210 2,200 2,200 Vocational Education 180 150 150 Higher Education 890 900 900 Total 10,910 10,680 10,560 * The three alternatives refer to the Presidential Commission estimate (1) and estimates based on a birthrate of 4.7% (2) and 4.5% (3), re- spectively.  AINEX 3 Page 5 7. The average recurrent cost per pupil can now be determined for the three alternatives: Table 7: ESTIMATED AVERAGE RECURRENT COST PER PUPIL IN 1972 Alternatives 1 2 3* Us$ Elementary Education 23 24 24 Secondary Education 26 26 26 Vocational Education 36 43 43 Higher Education 117 116 116 * Same as in Table 6. The average recurrent cost per pupil is extremely low by any standards. In elementary education the teacher pupil ratio is 1:30 and no less than 93% of recurrent cost is spent on salaries and other personnel expenses; hardly any provision is made for books and other educational material. The same is al- most true for secondary education wihere 87% is allocated to personnel ex- penses. At this level the teacher ptupil ratio is 1:36 and salaries are about 10% lower than for elementary teachers. The difference in salary must be at- tributed to the fact that elementary teachers are all paid by the national government and are politically strong, while secondary teachers are mostly paid by private institutions and local governments and are not organized. The cost of vocational training is also extremely low ard reflects the poor quality and lack of materials and supplies. The average per pupil cost in higher education reflects the students' demand for education but at a cost which he can afford. The private sector has quantitatively been very suc- cessful in supplying cheap academic courses, but the quality is very low, and bears little relation to the requirements of the economy. Future Education Expenditure (Table 8) 8. Under the present system of financing, it is unlikely that the na- tional government will have the financial resources to undertake any signifi- cant improvements of secondary, technical - vocational and higher education without a reduction in the cost of primary education. Without such a reduc- tion, total expenditure on primary education (under present conditions) is likely to double from $194 million in 1972 to $381 million in 1980 and the government's primary education expenditure would increase to $343 million or 84% of its total education budget which itself could have risen to 28% of the total national budget. Only very insignificant amounts would be avail- able for secondary, technical and higher education (table 8, "high" projec- tions).  ANNEX 3 Page 6 9. Since the government itself is attaching high priority to the im- provement of education at these levels and plans to expand its aid to students and to private education institutions, which are increasingly in- clined to look for Government support, the Government should reduce primary education expenditure as a proportion of its education budget. 10. Pending a transfer of the responsibility for primary education to the local authorities the national government should consider the following steps to reduce further increases in the primary education bill: (i) introduction of automatic promotion, which would reduce the rate of increase in enrollments and would bring the enrollment ratio from the present level of about 119% of the age group to below 100%; (ii) increase in the pupil/teacher ratio from 30:1 in 1972 to 33:1 in 1976 and 36:1 in 1980; (iii) stabilization of primary teachers' salaries (which are already higher than those for secondary school teachers) at present real values. 11. Theoretically the combined effect of these measures would be a re- duction in the national government's 1980 primary education bill by nearly $170 million (table 8, "low" projections). Even if, in practice, these mea- sures can only be partially carried out, the effect would be significant enough to free a substantial amount of government resources for the much needed reform and improvement of secondary, technical and higher education. 12. Such steps, however, are unlikely to result in the real improve- ments unless the Government strengthens its control over the education sys- tem, enforces qualitative standards, limits enrollments at secondary and higher levels and consolidates colleges and universities into more viable and economical units. It should use the powers which will result from the increased reliance by private institutions on Government financing, to bring about such a rationalization and consolidation of the school system. The government is presently working on a financing plan that would include these elements. 13. Mlore details about future levels of education expenditure (for 1976 and 1980) are given in Table 8.  ANNEX 3 Page 7 Table 8: EDUCATION COST PROJECTIONS 1972 - 1980 (in US$ millions) (Constant 1972 prices) 1972 1976 1980 1. GNP 8,328 10,645 13,593 2. National Government Budget (low) 801 1,070 1,429 3. National Government Budget (high) 801 1,110 1,538 School Enrollments ('000) 4. Primary education (low) 7,426 7,690 7,526 5. Primary education (high) 7,426 8,395 9,274 6. Secondary education (low) 2,197 2,712 2,822 7. Secondary education (high) 2,197 2,826 3,151 8. Vocational secondary education (low) 146 174 180 9. Vocational secondary education (high) 146 182 201 10. Higher education (low) 905 1,306 1,470 11. Higher education (high) 905 1,323 1,711 Total Education Expenditure (all sources; US$ million) A. Primary Education 12. Recurrent expenditure (low) 178 185 166 13. Recurrent expenditure (high) 178 252 316 14. Capital expenditure (low) 16 24 30 15. Capital expenditure (high) 16 40 65 16. Total expenditure (low) 194 209 196 17. Total expenditure (high) 194 292 381 B. Secondary Education 18. Recurrent expenditure (low) 58 80 94 19. Recurrent expenditure (high) 58 83 104 20. Capital expenditure (low) 7 5 14 21. Capital expenditure (high) 7 15 8 22. Total expenditure (low) 65 85 108 23. Total expenditure (high) 65 99 112 C. Vocational Secondary Education 24. Recurrent expenditure (low) 7 8 9 25. Recurrent expenditure (high) 7 8 10 26. Capital expenditure (low) 2 0 3 27. Capital expenditure (high) 2 3 2 28. Total expenditure (low) 9 8 12 29. Total expenditure (high) 9 11 12  ANNEX 3 Page 8 1972 1976 1980 D. Higher Education 30. Recurrent expenditure (low) 105 151 171 31. Recurrent expenditure (high) 105 153 198 32. Capital expenditure (low) 9 23 14 33. Capital expenditure (high) 9 38 39 34. Total expenditure (low 114 174 185 35. Total expenditure (high) 114 191 237 E. Total Education Expenditure (all levels) 36. Recurrent expenditure (low) 348 424 440 37. Recurrent expenditure (high) 348 496 628 38. Capital expenditure (low) 34 52 61 39. Capital expenditure (high) 34 96 114 40. Total expenditure (low) 382 476 501 41. Total expenditure (high) 382 593 742 Total Education Expenditure as a % of GNP (low) 4.6% 4.4% 4.1% - do - (high) 4.6% 5.2% 5.4% National Government Education Budget (under present financing system /1) Primary education (low) 175 188 175 Primary education (high) 175 263 343 Secondary education (low) 7 9 12 Secondary education (high) 7 11 13 Vocational secondary education (low) 1 1 1 Vocational secondary education (high) 1 1 1 Higher education (low) 24 36 39 Higher education (high) 24 40 50 Total Government expenditure (low) 207 234 227 Total Government expenditure (high) 207 315 407 National Government Education Expenditure as a % of total National Government Budget (low /2) 26% 21% 15% (high3) 26% 29% 28% /1 Assuming that Government would continue to finance only 90% of primary education expenditure, 11% of general secondary and vocational second- ary education expenditure and 21% of the cost of higher education. /2 "Low" expenditure projections as a percentage of "high" budget projec- tions (line 3). /3 "High" expenditure projections as a percentage of "low" budget projec- tions (line 4).  ANNEX 3 Page 9 Assumptions 1. Growth rate per annum: 6.3% 2. Growth rate per annum: 7.5% 3. Growth rate per annum: 8.5% 4. Population growth rate of 3.05% in 1971 declining to 2.32% in 1980; automatic promotion and decline in participation rate from 119% in 1972 to 109% in 1976 and 99% in 1980; 5. Population growth rate of 3.30% in 1971 declining to 2.71% in 1980; constant transition ratios (percentages of repeaters and drop-outs remaining equal) and constant participation ratio of 119%. 6 and 8. Constant transition ratios (or: if automatic promotion is intro- duced at primary level, controlled expansion of secondary education).* 7 and 9. Automatic promotion at primary level without control over the expansion of secondary education.* 10. Entrance Requirements for Higher Education 11. Automatic promotion at primary level, constant transition ratios and no entrance requirements at higher level. 12 - 14 - 16 Low enrollment projections (line 4), increase in pupil/teacher ratios from 30:1 in 1972 to 33:1 in 1976 and to 36:1 in 1980; teachers' salaries to be kept at present level (in constant prices); increase in non-personnel expenditure to 15% of total recurrent cost, compared with the present figure of 7%. 13 - 15 - 17 High enrollment projections (line 4), no increase in pupil/ teacher ratios, continued increase in salaries (at rate of GNP per capita growth: 3.3% p.a.); increase in non-personnel expenditure to 15% of total recurrent cost, compared with present figure of 7%. 18-20-22-24-26-28 Low enrollment projections (lines 6 and 8); 2.7% real annual increase in teachers' salaries, some improvement in non-personnel ex- penditure (books and materials). 19-21-23-25-27-29 High enrollment projections (lines 7 and 8); 2.9% real annual increase in teachers' salaries, improvement in non-personnel ex- penditure (books and materials). * The actual rate of population growth is not known. These projections, as distinct from those in Annexes 1 and 2, are based on more recent population statistics and different assumptions about progression rates.   ANNEX 4 THE PHILIPPINES EDUCATIONAL STUDIES AND SURVEYS 1927-1971 1. The Economic Survey Report of 1927: focused on vocational education and its relevance to the economic and social status of the people. 2. The Prosser Study of 1930: a follow-up of the 1927 survey; proposed measures to improve vocational education. 3. The Quezon Educational Survey of 1936: aimed at reorienting the edu- cational system to Commonwealth status and to eventual independence. 4. The Educational Survey of 1939: became the basis of the Education Act of 1940 which abolished the seventh grade in the elementary school which had been part of the education system up to that time. 5. The Joint Congressional Committee Study of 1948: produced in connec- tion with Philippine independence in 1946 and the demands of national rehabilitation after World War II. 6. The UNESCO Mission Survey of 1949: in accordance with an agreement be- tween the Philippine Government and UNESCO, the survey involved ele- mentary, secondary, adult and teacher education. 7. The Survey of Private Education in 1951: conducted by the Senate Special Committee on Educational Standards of Private Schools to de- termine whether the schools' certificates of recognition were issued in accordance with pertinent regulations and to look into instruc- tional standards. 8. The Magsaysay Committee Survey of 1957: to determine how Philippine education "may be reinforced and improved." 9. The 1960 Survey of Public Schools: a comprehensive survey of the pub- lic school system with a view to possible revision. 10. The Presidential Commission to Survey PhiliPpine Education; 1970: this was a major document produced by a large staff of Philippine educators and foreign consultants which indicated clearly the major defects of the system (which are detailed in Annex 5)and made numerous recommenda- tions for reform. 11. The UNESCO Project Identification Mission, 1971: prepared the way for Bank Group financing. 12. The Department of Education's 4-year Development Plan for Education, 1971: included several of the recommendations of the Presidential Commission.   ANNEX 5 THE PRESIDENTIAL COMMISSION TO SURVEY PHILIPPINE EDUCATION 1970 The Commission identified the following weaknesses inter alia in the Philippine education system: (i) the wide diversity of sources of authority for educational policy; a high degree of centralization in decision making; a segmentation of educational responsibility by sectors (public, private, vocational) rather than by function (ele- mentary, secondary, higher); a lack of Government control and excessive freedom for private school proprietors; (ii) a need to expand educational expenditures by some 10% an- nually to cope with the enrollment increase as a result of population growth and the need to improve existing facili- ties; this increase is greater than that projected for GNP; the high proportion of Government resources devoted to elementary education with neglect of other levels; the financial starvation of most educational institutions; the serious shortages of equipment, materials and books; (iii) the emphasis in secondary education on college preparation although the agreed curriculum, a 2-2 plan, was originally conceived to cater for manpower needs; the short duration of the secondary course (4 years after a 6 year primary course) which is inadequate for college preparation and pre-vocational courses; (iv) the tremendous social demand for university education leading to a graduate output far exceeding and unrelated to manpower needs; the open system of admission to universities; the limitation of the function of the Bureau of Private Schools to licensing due to inadequate staff; the limited membership (only 28 institutions) of the Philippine Accrediting Asso- ciation of Schools, Colleges and Universities; the establish- ment of new institutions of higher education at high schools without changing faculty size or quality or increasing fi- nancial provision, and without provision of machinery for im- posing quality standards in curricula or faculty; the concen- tration of the best higher educational institutions in the Manila area; the concentration of private institutions on low cost programs such as teacher education (34% of graduates in 1969/70), commerce and liberal arts; and (v) the proliferation of vocational, technical and agricultural institutions at high school and post-secondary levels, in- adequately equipped and unable to provide relevant educa- tion.   ANNEX 6 Page 1 TECHNICAL ASSISTANCE 1. The Philippines has experienced and well qualified personnel in a variety of different fields but the emphasis placed by the educational system on academic training is reflected in deficiencies in certain types of specialist manpower. The government receives technical assistance from a number of donor agencies; for several of the items in the project for which technical assistance is needed, at least an initial sum has been included in the UNDP Country Program Paper. However, in four areas additional technical assistance amounting to 62 man-years of specialist services and 56.5 man-years of fellowships would be provided under the project. 2. The total cost of assistance to be provided under the project amounts to US$2.17 million for specialist services and US$0.40 million for fellowship training overseas plus contingencies; the implementation period would be about six years (Annex 20). 3. Technical assistance to be provided under the project would consist of the following specialists and fellows (numbers in parenthesis show man- years): A. Specialist Services (62) 'i) Educational Planning, Management, Curricula Reform and Textbook Production (7): specialists in data processing (1); vocational education (1); school and facility design (1.5); textbook production (1.5); and curricula development and evaluation in the field of social studies (2); (ii) Agricultural Colleges (40): For CLSU: one specialist in agricultural education (Chief of Party) (4); specialists in institutional planning and management (2); agricultural business management (4); agricultural engineering and irrigation (2); food processing (2); farm machinery (2); vocational agriculture (2); seed technology (2); extension and use of audio-visual aids (2); and animal nutrition (2); For CMU: specialists in farm mechanization (3); agricultural research planning (2); agricultural extension planning (2); forestry college adminis- tration (2); forestry resource management (2); forest conservation and reforestation (2); and electronics (3);  ANNEX 6 Page 2 (iii) Technical Institutes (13): One technical teacher training specialist, (Chief of Party) (4); specialists in mechanical and electrical engineering (3); civil engineering (3); mathematics and science (3); (iv) Project Implementation (2): A procurement specialist (2). B. Fellowships for Overseas Studies (56.5) (i) Educational Management and Research (8): Fellowships for PhD studies in educational research (3) and the economics of education (3); one fellowship in school planning and design (2); (ii) Agricultural Colleges (40.5): For CLSU (26): Fellowships for PhD studies in agricultural business and farm management (3); agricultural engineering and irrigation (3); plant pathology (3); and crop production (3); and fellowships in food processing (2); plant pathology (2); entomology (2); agricultural business and farm management (2); crop production (2); agricultural engineering (2); and soils (2); For CMU (14.5): Two fellowships for PhD studies in agricultural business management (6); and one fellowship in each of the following: wood science (2); wood technology (2); agricultural engineering (3); college administration (0.5); feed mill operations (0.5); and food processing (0.5); (iii) Technical Institutes (8): Two fellowships each for six months, in the following subjects: teacher training (1); mechanical engineering (1); electrical engineering (1); electronics (1); automotive technology (1); industrial chemistry (1); airconditioning (1); and civil construction technology (1). Technical Assistance to be provided under the Project: 4. The Office of Planning Service (OPS) in the Department of Education and Culture would be provided with technical assistance from UNDP (see para. 10 below). In addition, the project would provide specialists in the fields of data processing, vocational education and school design and also for the carrying out of a pre-investment study to draw up a textbook development program which might lead to further Bank Group investment at a later date. The specialists would work with specialists to be provided under the UNDP program and would contribute to a strengthening of educational planning, management and research. The project would also include overseas fellowships to prepare staff members of the OPS to take over certain of the functions of the experts. The textbook production specialist would assist Philippine staff in analyzing textbooks and instructional materials now being used in  ANNEX 6 Page 3 the Philippines, identifying areas in which new books and materials are required, conferring with subject matter specialists in the Department of Education and Culture, the universities and schools, to determine needs and to hold seminars for potential authors of textbooks. He would prepare, with the assistance of Philippine colleagues, a textbook development plan and make recommendations on appropriate means of production, distribution and financing. 5. The Education Department Center included in the project would be provided with technical assistance from UNDP for its science and mathematics curricula studies (para. 11 below) and, under the project, for its social studies curricula development and evaluation. The functions of the Center are described in Annex 10. 6. The specialists for CLSU and CMU would be needed to fill gaps in the existing faculty structure of the universities or provide staff to take the place of Philippine staff members selected for fellowship training locally or overseas. The institutional planner at CLSU, who would be appointed as soon after the signing of the Credit Agreement as possible, would be responsible for assisting the faculty and consulting architects in drawing up a campus master plan and also long term development plans. The other specialists at the two universities would undertake advisory, teaching and research functions. The fellowship awards would be provided for members of staff to strengthen their academic background and prepare them for teaching and research posts on their return. 7. The four specialists for the technical institutes would each serve all three institutions under the project. They would (a) assist the staff to develop appropriate curricula for technician training geared to the needs of Philippine industry, and (b) give advice on the use of modern equipment and audio-visual aids in technician training. The Chief of Party would be responsible for the teacher training in general, covering both technical and academic subjects and give advice on questions of methodology and pedagogy. The fellowship awards would be provided for outstanding members of staff to strengthen their technical background in specific fields. 8. The procurement specialist would be a member of the project unit. He would be responsible for setting up a bid system and controls, would train counterparts and assist with the preparation and evaluation of lists of furniture, material, supplies and equipment, specifications and bids. 9. Details of the implementation program were discussed and agreed upon during negotiations. The proposed time schedule is shown in Annex 20. Technical Assistance to be Provided Through the UNDP Country Program: Office of Planning Service and Curriculum Coordinating Unit 10. The UNDP Country Program includes provision for 5 man-years of technical assistance as follows: educational planning (2.5); general education (1) and educational research (1.5). These specialists would assist in the operation of the Office of Planning Service in the Department  ANNEX 6 Page 4 of Education and would work in close liaison with Philippine staff members and the technical assistance specialists being provided under the project (para. 4). The educational planner would have specific responsibility for bringing about closer coordination of curriculum development utilizing the facilities to be provided under the project in the Curriculum Coordinating Unit. Education Development Center 11. The UNDP Country Program contains approximately 3 man-years of specialist services and 0.25 man-years of fellowships for the Science Education Center of the University of the Philippines which w'ld become an integral part of the Education Development Center included in the project. This technical assistance would be combined with that provided fir social studies under the project (para. 5). Regional Manpower Training Centers 12. The UNDP Country Program includes provision for approximately 23 man-years of specialist services as follows: A project manager (Chief of Party) (3.5); specialists in apprenticeship and vocational training standards (3); in-plant training (2.5); instructor training and teaching techniques (2.5); machine shop work (2.5); industrial electricity/electronics (2.5); automotive engineering (2.5); metal fabrication (2); agricultural and construction equipment (2). The Country Program also includes 6 man-years of fellowships in the following fields: machine shop work (1/3); metal fabrication (1/3); agricultural and construction equipment (1/3); administra- tion (1/3); training aids (1/3); standards and testing (1/3); plus four fellowships in government, employer and labor relations (4). The specialists would serve all 10 centers included in the project. They would continue the advice and assistance provided under phase 1 of the UNDP project. The project manager would supervise and coordinate the work of the specialists. The specialists would assist in the organization of the centers and the setting up of training programs and would take part in the training of staff. The fellowship awards would be provided for outstanding instructor trainees of the National Manpower Skills Center in Taguig in order to expand their experience in specific fields. These instructors would then take over when the technical assistance specialists terminated their services. Technical Institutes 13. The UNDP Country Program includes an initial allocation of six man-months of specialist services and the Government may request an extension of this program. Pending assurances that additional UNDP assistance will be forthcoming, the proposed project includes 13 man-years of expert services and 8 man-years of fellowships as outlined in paras. 3 and 7 above.  ANNEX 7 AGENCIES INVOLVED IN RESEARCH AND/OR DEVELOPMENT OF EDUCATIONAL MATERIALS 1. Science Education Center, University of the Philippines; 2. Social Science Center in the Bureau of Public Schools; 3. Regional Science Teaching Centers; 4. Laboratories or model secondary schools in colleges and universities; 5. Ford Foundation supported Language Study Center at Philippines Normal College; 6. National Historical Commission (Regional Seminars on History); 7. National Language Institute; 8. Research by professors in colleges and universities (such as the studies published in the Education Quarterly, College of Education, University of the Philippines); 9. Evaluations and studies of Department of Education personnel; 10. Research in agricultural education.   ANNEX 8 Page 1 FUNCTIONS OF THE OFFICE OF PLANNING SERVICE AND THE CURRICULUM COORDINATING UNIT A. The Office of Planning Service 1. Prepare for the Board of National Education long and short range plans and programs for education and determine priorities between them; 2. Design strategies for implementation of approved plans; 3. Coordinate the work of Government and other agencies engaged in physical planning of school buildings and facilities; 4. Formulate indicators of educational objectives for each level and for the whole system, and conduct periodic assessments of performance based on such indicators; 5. Propose a general framework for and priorities in educational research; coordinate with existing research agencies; serve as a clearing house for educational data; establish permanent data recording procedures and methods of dissemination of information to interested bodies; undertake research in areas not covered by existing agencies; provide technical assistance to institutions conducting educational research; 6. Prepare development projects in education and coordinate with other agencies engaged in such projects; 7. Undertake the management of education projects where appropriate; 8. Provide professional and technical services to the Board of National Education. B. The Curriculum Coordinating Unit 1. Identify existing activities in curricula research; 2. Effect coordination between all the agencies engaged in curricula research; 3. Organize inter-agency conferences; 4. Identify areas of deficiency; 5. Conduct curricula research in areas where no other agency is engaged;  ANNEX 8 Page 2 6. Carry out a pre-investment study to draw up a textbook development program to include reco-mendations on production, distribution and financing; analyze existing textbooks and instructional materials; determine, in consultation with subject matter specialists in the proposed Education Development Center, the Department of Education and Culture, the universities and schools, the need for new textbooks and their required content.  ANNEX 9 Page 1 THE EDWUCATION DEVELOPMENT COUNCIL AND THE SCIENCE AND SOCIAL STUDIES EDUCATION CENTERS It is proposed to establish an Education Development Council to coordinate the operation of the University of the Philippines Science Educa- tion Center (UPSEC) and the Social Studies Education Center (SSEC). The project would provide an Education Development Center including joint physical facilities for the use of the t',o existing centers. The center would: (i) prepare materials, including books and teaching manuals and develop prototype equipment for science and social studies teaching; (ii) organize testing of the effectiveness of the materials in schools; (iii) train instructors for Regional Science Teaching Centers and teacher training colleges at the rate of approximately 100 every 18 months; (iv) conduct a minimum of 20 in-service programs a year in science and similar programs in social studies for elementary and secondary teachers; these teachers would subsequently conduct conferences and seminars for other teachers in the areas from which they come, thus providing a multiplier ef- fect for up to 7,000 teachers per annum; (v) assist the School of Education of the University of the Philippines with its pre-service teacher courses and other courses in science and social studies; and (vi) maintain liaison through the Curriculum Coordinating Unit with other agencies engaged in curricula research. Courses would be of varying length and organized on an ad hoc basis so as to make maximum use of facilities; during normal working hours the facilities would be used for pre-service courses and in the evenings, weekends and summer vacations for in-service training of at least 500 teachers per year. A Memorandum of Understanding has been drawn up between the Bureau of Public Schools, and the University of the Philippines to cover the estab- lishment of the Education Development Council, the sharing of the new physi- cal facilities to be provided under the project and to provide for the con- tinuation of an earlier Memorandum covering training for supervisors, curriculum writers and teachers of social studies. The Education Development Council would consist of single repre- sentatives from UPSEC, the SSEC, the Language Study Center and other agencies engaged in curricula studies and material preparation which might operate under the auspices of the Council at a later date. The UPSEC and SSEC repre- sentatives would act as chairmen of the Council for one year on a rotating basis, with the UPSEC representative assuming the chairmanship in the first year.  ANNEX 9 Page 2 The objectives of the Council would be to coordinate the policies of the various agencies, arrange for joint use of physical facilities and sharing of staff, and to maintain liaison with other agencies engaged in curricula studies and material preparation. It is envisaged that as the physical facilities expand in the future, additional centers would be accommodated in the combined center.  ANNEX 1 0 PILOT BARRIO (VILLAGE) DEVELOPMENT SCHOOLS The first of these schools was established at Masaya and operates under the close supervision and guidance of the University of the Philippines College of Agriculture at Los Banos. It is intended to establish additional schools in villages adjacent to Munoz and Musuan, to be organized and supervised by CLSU and CMU, respectively. The enrollment in each school would be 100. The pupils would spend half their time working at home; those in school would be accommodated in 2 classrooms. The project would include 2 teachers' offices and a small workshop and store. Teachers would be provided with motorcycles to enable them to supervise projects at the pupils' own homes; a small pick-up truck would be provided for each school. A major feature of the project would be the provision of tools, equipment, and materials with which students would establish supervised farming programs at their homes. These supplies would be considered as "on loan" to the students and would be repaid in either cash or kind at the time of marketing of produce. Each student would be required to maintain careful records. Courses would be of 4 years' duration as in other high schools. The curricula would consist of 50% classroom instruction - each subject containing a strong agricultural bias and 50% practical work on the projects. Emphasis would be placed on arithmetic and its use in accounting and record- keeping; each student would maintain a savings account in association with the nearest rural bank. Work on projects would commence from the first year and additional projects would be added in each of the succeeding years. Projects would include vegetable and crop production and the husbandry of rabbits, poultry and pigs. Each school would require a staff of 3 teachers, 2 of whom would also be responsible for supervising the projects at the pupils' homes. Technical assistance would be provided by the staff of UPCA.   ANNEX 11 Page 1 PROPOSED RADIO STATIONS AT THE UNIVERSITY OF THE PHILIPPINES COLLEGE OF AGRICULTURE (UPCA) AND CENTRAL MINDANAO UNIVERSITY (CMU) TECHNICAL DATA Broadcasting in the Philippines Broadcasting is operated by both government and private enter- prise. There are some 300 radio stations. The Secretary of Public Works and Communications supervises broadcasting through a regulatory body, the Radio Control Office (RCO). Broadcasting rights are granted by franchise by the Congress. Once a franchise is approved, the RCO allocates a frequency, licenses the station and arranges for inspections. All non- government stations pay an annual fee. No fees are imposed on receivers. Areas to be Covered DZLB (the radio station operated by UPCA) has at present a 250 watt transmitter, which enables it to cover the province of Laguna and portions of the neighboring provinces of Rizal, Batangas and Cavite. Pos- session of the more powerful transmitter to be provided under the project would enable the station to effectively cover a substantial part of the Southern Tagalog region, including the provinces of Laguna, Batangas, Rizal and Cavite and also 3/4 of Bulacan, 1/2 of Quezon, Marinduque, Mindoro and Bataan, and 114 of Zambales. The station proposed for CMU would cover the provinces of Bukid- non, Upper and Southern Agusan, Misamis Oriental, Davao del Norte, Davao del Sur, Nothern Cotabato and Lanao, with an estimated number of transistor radios totalling 71,000. Broadcasting Time At present DZLB broadcasts for 49 hours per week, 31 hours devoted to information and education programs, including 17 hours produced in co- operation with other institutions and agencies concerned with rural develop- ment. Under the proposed project the hours of operation would be increased to 84 per week. The CMU station would broadcast for 16 hours per day. Languages DZLB: English and Filipino. CMU: English, Filipino and Cebuano.  ANNEX 1 1 Page 2 Radius of Proposed Transmission DZLB: 150 miles. CMU: 350 miles. Proposed Project Content DZLB: 5.0 kw transmitter, studio equipment and accessories; 1 mobile broadcasting unit. CMU: 5.0 kw transmitter, studio, tape-record library, control room, offices, studio equipment, antenna and grounding system, and mobile broadcasting unit.  j-LThTPPYIS - DATA 01'! TECHNXICAL INSTITUTES Location Manila Bacolod Ilivan 7otal C.pacity i.e., Student places 600 . 40o 4O0 i,hco Fnrollments (2 shifts) 1,200 8i00 800 2,800 ^nnual output 360 240 240 84( Type of coursps offered Electrical Electrical ^1ect.rical Electronics Electronics Electronics Mechnical Mechanical and Mechanical Autmotive Aut,omotive Automotive and Civil Construction Technology Civil Construct- and Chemical ion Technoloay Technolo__r Distribution of Time in Each Course (hours per week) - __ ~ Irste_ Year Secand YaaI Thi rd. _ Worksh. Wo rksh. 'en. Tech. and/or Gen. Tech. and/or rTen. Tech. and/or -subjS. SubJs. Lab. Total Subjs. Suoj*. Lab. Total Subjs. Subjs. Lab Total T 4, rricai 10 11 11 32 10 11 11 32 8 11 13 32 P1ect.ronins 10 13 9 32 10 11 11 32 8 10 14 32 '; echaniira 1 10 13 9 32 10 13 9 32 8 11 13 32 AuLtomotive 1l 10 12 32 10 10 12 32 8 8 16 32 ;-,1vil 'onstruction 10 C% 32 1 12 10 32 8 16 8 32 Thenist.nv 10 i1 1] 32 10 12 13 32 8 10 14 32   PHILIPPINES - DATA ON REGIONAL MANPOWER TRAINING CENTERS (RMTC's) _ Annual Output Annual Output LOCATION Capacity i.e. from Full-time from Evening COURSES OFFERED 1-tudent places Courses Courses Mariveles 240 520 1,040 Basic Mechanics, Machine Shop, Industrial Electricity, Boat Building, Electronics, Welding, Sheet Metalwork Taguig 90 150 300 Manufacturing Processes, Advanced Machine Shop, Industrial Plumbing and Special Welding Techniques Talisay 120 230 460 Basic Mechanics, Machine Shop, Agricultural Mechanics, Plant Maintenance, Diesel Engines, Welding Iligan 120 250 500 Basic Mechanics, Machine Shop, Industrial Electricity, Diesel Engines, Sheet Metalwork, Welding, Foundry San Fernando 120 230 460 Basic Mechanics, Machine Shop, Diesel Engines, Electrical Installation, Car- pentry, Sheet Metalwork, Welding Marikina 90 170 340 Machine Shop, Diesel Engines, Automotives, Welding Binan 120 230 460 Basic Mechanics, Machine Shop, Diesel Engines, Industrial Electricity, Welding, Sheet Metalwork Naga 90 170 340 Basic Mechanics, Machine Shop, Carpentry, Agricultural Mechanics, Welding Cebu 120 230 460 Basic Mechanics, Machine Shop, Diesel Engines, Industrial Electricity, Welding Davao 105 210 420 Basic Mechanics, Machine Shop, Industrial Electricity, Electrical Installation, Sheet Metalwork, Welding Cotal 1,215 2,390 4,780 Time Schedules Full-time courses: 8 - 12 a.m. and I - 5 p.m. x 5 days = 40 hours per week, of which 75% is practical work. Length of courses = 3 - 6 months. Evening courses : 6 - 9 p.m. x 5 days = 15 hours per week, of which 75% is practical work. Length of courses = 1-1/2 - 3 months.    - 8 8 8 8; 8 - if 8 i 81 if 8 - 8 1 1 18 if - 88 888888 88 a 188 '88 88 2$ - -. - .. ..jj if  8 8888 8 88 8 8888 8 8 I 18 8 888888 88 888 88 18 8 8 888888888888 88 888888 88 88 88 8  -a 88 ,..,,., 19 *1 88 .88 '' I 8 8888