Haiti - Education Project

FILE COPY Document of The World Bank FOR OFFICIAL USE ONLY CIRCULATING COPY TO BE RETURNED TO REPORTS DESK Report No.P-1721-HA REPORT AND RECOMMENDATION OF TH:E PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT TO THE REPUBLIC OF HAITI FOR A FIRST EDUCATION PROJECT February 10, 1976 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Currency Equivalents Currency Unit = Gourde (G) US$1 = G5.oo Gl = US$0.20 Cl iLillion = US$200,000 Fiscal Year October 1 - September 30  FOR OFFICIAL USE ONLY INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT TO THE REPUBLIC OF HAITI FOR A FIRST EDUCATION PROJECT 10 I submit the following report and recommendation on a proposed develop- ment credit to the Republic of Haiti for the equivalent of US$5.5 million on standard IDA terms to help finance a first education project. PART I - THE ECONOMY 2. The most recent economic report on Haiti, Report No. 410-HA entitled "Current Economic Position and Prospects of Haiti" was issued on April 18, 1974. Updated social and economic data are presented in Annex I. A Bank Economic Mission to Haiti is scheduled for March/April, 1976. 3. Haiti is one of the poorest nations in the world, and the only countrv in the Western Hemisphere included in the U.N. list of 25 least developed nations. GNP per capita in 1974 stood at about US$140. An infant mortality rate of about 200 per thousand live births, an average life expectancy of 45 years, low nutri- tion and sanitation standards (malnutrition and gastro-enteric diseases account for over half the deaths in the country) and an adult literacy rate of about 20 percent characterize the depressed living standards of the oopulation. The country's natural resources are limited. Of the country's total area, only about 15 percent is well suited to agriculture although twice as much is actually under cultivation. The remaining 70 percent is too arid and steep for cultivation, The average density of population is nearly 500 per square kilometer of arable land, one of the highest in the world. In addition, much of the country suffers from frequent hurricanes, floods and droughts0 Known mineral resources are modest, consisting of bauxite, copper and lignite. There is, never- theless, scope for expansion of agricultural output through improvement of presently low levels of productivity. The country's proximity to the U.S. market, the availability of abundant labor as well as Haiti's striking scenery and its distinctive culture offer a potential for industrial and tourism development. 5. Economic growth and social progress have been hampered by periods of political instability which did not permit the development of an adequate techni- cal and physical infrastructure. Inadequate maintenance reduced the efficiency o- the limited irrigation network. The lack of an adequate transport infra- s-.ructure and its poor maintenance hampered the development of commercial agri- :ulture_ Power generation capacity is also well below the Latin American average. G. In marked contrast to the previous decade when the economy stagnated, Haiti enjoyed some growth in 1968-73. Expansion of small-scale manufacturing and assembly operations, tourism and construction led to real average annual in- ^reases of GDP of about 4 percent while population grew at an estimated annual rate of 1.7 percent. These activities contributed noticeably to improving economic conditions in Port-au-Prince. Employment in assembly operations, for example, increased from 10,000 in 1971 to 25,000 in 1973. Agriculture, however, This docunient has a restricted distribution and may be used by recipientis only in the performance of their olficial duties. Its contents may not otherwise be disclosed without World Bank authorization.  - 2 - which employs 80 percent of Haiti's population and accounts for about half of GDP and about 60 percent of merchandise exports has as yet shown little dynamism. Progress in agriculture will require the adoption of improved production tech- niques and provision of greater incentives to farmers, as well as the improve- ment of transport facilities. 7. In 1974, GDP growth fell to 1.9 percent. Agricultural output stagnated in that year and to remedy this the Government adopted two important measures to stimulate agricultural production; a program to modernize coffee production and a substantial increase in the price paid to farmers for sugar cane. Moreover aaverse economic conditions in the United States brought about declines in investment and a slowdown in the growth of tourism and export-oriented manufacturing. 8. The Government is carrying out an important program which has given highest priority to providing the country with those infrastructure facilities that are essential to the development of the directly productive sectors. Projects are under way or are planned to rehabilitate the road network, improve port facilities and increase electricity supply. The Five Year Development Plan (1977-81) that the authorities are currently preparing is expected to stress regional and rural development as well as strengthen and extend health, sanita- tion and education services. Development expenditures would increase from about US$15 million per year in 1970-72 (3 percent of GDP) to about US$5O million per year in 1977-81 (about 5 percent of GDP). 9. The successful execution of such a program will require a substantial increase in the flow of external assistance. In the period 1970-72 gross dis- bursements on external official loans financed 25 percent of development expen- diture. Technical assistance grants and private donations financed the equi- valent of 35 percent. The remaining 40 percent was financed out of public savings. On the basis of disbursements of already committed loans and of likely future annual commitment levels of US$30-US$35 million, it is expected that official lend- ing agencies will finance about 55 percent of development expenditures in the period 1977-81. Capital investment grants from bilateral agencies are expected to finance about 10 percent of development expenditures. Technical assistance grants and private donations are expected to continue financing an important, albeit declining, share of development expenditures (about 15 percent). Public savings would finance the remaining 20 percent which,although a smaller share of total development expenditures than in 1970-72,would represent some in- crease in real terms. 10. The Government's program will require an additional fiscal effort to meet sharply rising operating expenditures generated by new development projects in agriculture, education, road maintenance and other sectors. As part of this effort, the Government adopted two tax measures which, although they may have the immediate effect of lowering some collections, should stimulate commodity exports and in the medium term generate higher revenues. In August 1973, the specific tax on coffee, which contributed to reducing producer incentives when inter- national prices were low, by absorbing a large share of export proceeds, was replaced by a progressive ad valorem levy. In early 1975, the export tax on sugar was lowered from its previous rate which was as high as 80 percent at the margin. In addition, the Government plans to improve income tax administration. Customs administration and the collection of import duties are also being tightened, with technical assistance from the OAS and the IMFO  11. An agreement reached in 197', between the Government and the concession- aire for the exploitation and export of local bauxite resources increased tax reve- nues. Based on 1974 exports, taxes on bauxite are expected to yield at least US$7 million per annum in the next few years. In 1975 the Government allocated US$4.4 million of the taxes to development expenditures and the remainder to the operating budget. 12. These and other prospective fiscal measures will enable the Government to step up development expenditures. Because of the extreme poverty of the country, its fragile balance-of-payments and the severe limits to raising additional fiscal resources - taxes already make up 12 percent of GDP, no mean achievement for a country as poor as Haiti - the successful execution of the development plan will require external financing for a substantial share of the cost of development projects. Moreover, the growth of public savings will, in future, also be con- strained by the need to increase 7ibstantially current expenditures in the social sectors, e.g. education and health. Thus, for the Government to have access to the resources needed to carry out a modest development program,especially one em- phasizing projects with a relatively low foreign exchange component - namely in education, agriculture and rural development - some foreign financing of the local cost elements of such projects will be required. 13. Haiti's balance of payments deteriorated in 1974 and 1975. The deteriora- tion in 1974 was largely explained by higher import prices and by declines in the volume of coffee and sugar exports. In 1975, available information indicates that imports rose sharply, partly as a result of public sector outlays for which suitable external financing was not obtained. AEs of September 30, 1975 net international reserves of the National Bank as well as those of tne consolidated banking system were negative in the order of US$L.3 million and US$24 million, respectively. In August 1975 tne IMF approved new stand-by and oil facility arrangements for Haiti. 14. At the Haitian Government's request a high level Joint Consultative Committee was established in January 1976, which will include representatives of the Haitian Government as well as of multilateral and bilateral agencies actively providing assistance to Haiti. The Committee will be in charge of coordinating foreign assistance, both financial and technical. As one of its major functions, the Committee, which will convene every six months, will quantify the required counterpart funds for investment projects financed by external official agencies for a period of 18 months following each meeting. It will also assess the amount of counterpart funds likely to be available. The Committee will thus be in the position of making recommendations to the Haitian Government on measures to be taken in order .o ei.sire that public savings are adequate to provide the local financing required for externally assisted projects. 15. .Haitits resource gap is expected to continue to widen in the medium term, reflecting the import requirements associated with the Government7s invest- ment program. As there has been relatively little net foreign borrowing in the last decade, the debt service ratio is relatively low (5.8 percent in 1974). Nevertheless, the balance of payments is likely to constitute a constraint to economic development in view of the limited growth prospects of Haiti's major exports (coffee and bauxite) and because export diversification through the de- velooment cf other agricultural products, manufacturing and tourism, is still at an early stage. In view of the country's poverty and vulnerable balance of pay- ments, Hai ti will require external assistance on highly concessionary terms for a long t'me if it. is zc achieve a significant improvement in the standard of  - 4 - PART II - BANK GROUP OPERATIONS IN HAITI 16. The Bank Group has had four operations in Haiti - all in the trans- port sector. A US$2.6 million Bank loan (141-HA) was made in 1956 for highway rehabilitation and a US$350,000 IDA credit (32-HA) was made in 1962 for highway maintenance. Two recent IDA credits - US$10 million (478-HA, Third Highway Project) in 197T and US$20 million (556-HA, Fourth Highway Project) in 1975 - were made to Haiti for reconstruction of the Northern Road, the main arterial highway linking Port-au-Prince to Cap Haitien, Haitits second major town. Execution of the Third Highway Project is making good progress, with disburse- ments at near appraisal estimates. Contracts for 90 percent of the works under the Fourth Highway Project have been let. Annex II contains a summary statement of Bank loans and IDA credits as of December 31, 1975, and notes on the execution of ongoing projects. 17. The Government organizes twice yearly meetings to coordinate assistance given to the transport sector by the various aid agencies. USAID is assisting purchase of road maintenance equipment and is supplying technical assistance for a maintenance training program. The Government is increasing its maintenance budget and field crews are being trained to operate new equipment. IDB has made loans for construction of the Southern Road and for expansion of the port of Port-au-Prince. France is financing construction of the road linking the south coast city of Jacmel to the Southern Road. uNDP is financing the technical assistance component of the Third Highway Project (with the Bank as executing agency) including training of local contractors in administration, engineering and management as well as a study of Haiti's transport sector which is expected to recommend future investment priorities. 180 Aid agencies are also supporting other sectors of the Government's development program. IDB has made loans for agricultural and industrial credit, agricultural education and improvement in Port-au-Prince's water supply. It is also providing assistance to the Government for the preparation of integrated rural development projects and of a rural primary education project. USAID has given assistance for Haitits malaria eradication program, for community develop- ment, for modernization of the production and marketing of coffee and improve- ment of feeder roads. France is providing technical assistance for a new National Pedagogical Institute (IPN), teaclhers Lox secondary and vocational schools as weal as assistance to improve facilities at provincial airports. Canada is supporting a technical education project in Port-au-Prince, a rural development project in the southern peninsula and has undertaken a survey of Haiti's water resources for both irrigation and power potential. The Federal Republic of Germany is pro- viding financial and technical assistance for regional development in the Gonaives Plain. UNDP is financing a number of programs including a survey of Haiti's mineral resources, technical assistance through UN agencies in education and rural development, and food relief. Of special significance to Haiti's develop- ment in education, health and agriculture services, are the many and varied programs of the voluntary agencies.  Table 1: LOAN CO W0m liTO HAITI, 1966-75 IDA IDB AID Agriculture - 0.7 6.o Industrial Credit - 1.1 - Transport 30.0 64.7 3.7 Education - 103 - Water and Sewerage - 70h - TOTAL 30.0 75.2 9.7 -9- Prospective IDA lending operations in Haiti take into account our Dreser.t knowledge of Haiti's development needs and the ongoing and prospective roles of other official lending agencies. As regards transportation, a high priority sector in which IDA is already playing a major role, selection of future transporta- -Jon projects for financing by IDA would take into account the recommendations of the transport study mentioned in para. 17. LU. A UNESCO/IDB mission carried out in June 1974 an education sector survey a identified several high priority projects. The report indicated a most urgent neec for revision of primary school curricula, expansion of educational opportu- nities in rural areas and support for adult literacy programs. IDB, France, and IDA are cooperating closely with the Government in projects aimed at meeting the most urgent needs in a sector that will require sustained assistance over a number of years to make education a more effective tool of national development. The project presented in this report is designed to begin to meet some of the highest priority needs in the education sector. _1. The Government financed construction, in the late 1960's, of the Peligre hydroelectric plant to supply power to Port-au-Prince. Since the plant, assuring a steady supply of electricity, became operational in 1971, Haiti has attracted a number of labor-intensive assembly plants0 The growth in demand for power has been such that serious power shortages are expected by 1977 unless additional ~esel electric plants are installed by then. The Government-owned power company, ::lectricite d'Haiti (EdH), has engaged oonsultants who are preparing a project which would increase the generating capacity and distribution system for Port-au- Prince, The project was appraised by IDA in November 1975 and is scheduled for presentation to the Executive Directors in the last quarter of FY1976. In order to investigate long range solutions to the supply of Haiti's national power needs  by maximizing Haiti's own sources of energy, UNDP is financing a National Power Pre-investment Study for which the Bank is executing agency. Consultants began field work in January 1976. Their assignment includes a study of the potential use of Haiti's deposits of lignite as fuel for thermal electric plants. The consultants, in their overall national study, will also evaluate the recommendations for potential hydropower plants made by the ongoing survey of Haiti's water resources sponsored by the Canadian International Development Agency (CDA). 22. An IDB/FAO/IBRD agriculture survey mission identified in mid-1973 several key regions for agricultural development. As a result of that study, the Government asked IDA to consider a first rural development project in the Northern Plain, a densely populated region with considerable agricultural poten- tial. An FAO Cooperative Program mission visited the region in January/February 1975 identifying potential project items, namely agricultural credit, production of improved seeds, extension services, education and health services, access roads, drainage and rehabilitation of irrigation works, Appraisal of the project is scheduled for the second quarter of 1976. 23. WHO/PAHO, with UNDP financing, is undertaking the preparation of a water supply project in provincial towns for which the Government has requested IDA financing. The project, besides improving and extending existing water systems, would strengthen the technical and administrative capabilities of the Services Hydrauliques, which in the future is expected to be a key agency in expanding water services in rural areas. 24. The Bank Group's share in Haiti's publicly-guaranteed external debt out- standing and disbureed amounted to about two percent at the end of 1974. The Bank Group's share of external public debt service during 1974 was about 0.1 percent. Its share of outstanding publicly-guaranteed external debt would rise to about 30 percent by the end of the 1970's; its share of external public debt service would be of the order of 10 percent. 25. There have been no IFC operations in Haiti to date though several explo- ratory missions have recently visited the country. PART III - THE EDUCATION SECTOR 26. The education sector of Haiti suffers from serious deficiencies, namely in- equities in educational opportunities, an inefficient administrative system, imprac- tical curricula', poorly qualified teachers, inadequate budgetary appropriations and lack of long range planning. Only 20 percent of Haiti's population is functionally literate (10 percent in rural areas, 60 percent in urban areas). Opportunities for schooling have been available mainly to the urban population. Of the 6-12 age group,89 percent in the urban areas are in school but only 26 percent of rural children attend school, with a national average of about 39 percent. Administration 27. At least six departments are responsible for a variety of general and specialized schools though most schools are under the Department of Agriculture and the Department of National Education. Merging of these responsibilities under one administration would be desirable but it would not be realistic to  - 7 - carry out this reform before other more basic educational problems have been dealt with. The Government proposes first to tackle the more pressing matters related to improving the quality of instruction and extending the educational opportunities. Primary Education and Teacher Training 28. The urban primary schools under the Department of National Education offer a 6-year curriculum leading to a primary school certificate. Children in the rural primary schools under the Department of Agriculture follow a 7-year program: one pre-primary year, plus six years. The two departments have different primary curricula, yet the rural school children must pass the Department of National Education's sixth grade examinations to get the primary school certificate required to enter secondary schools. The systems of both departments have a high failure rate, especially alarming in rural areas. Only fifty percent of the urban school entrants finish primary school; less than five percent of rural school entrants get a primary school certificate. Fifty percent of all rural primary enrollments are in the pre-primary year of which only about one-third continue to the second year. Many of the rural primary pupils are overaged; the average age of beginners is 10 years. Because they are needed for long periods of work in the fields, children often require several years to complete one grade. 29. The content of individual courses is often irrelevant to Haitian realities or inappropriate to the learning level of the pupils. Furthermore, even a good overall curriculum could not be fully applied because classrooms (often rented houses in the towns, simple shelters in the villages) are crowded (the national teacher/student ratio is 1:45; 1:61 in rural schools, 1:34 in urban schools) and ill-equipped and most children cannot afford to buy their own school materials. 30. Because of low salaries and irregular pay, there is a high turnover among teachers. Only 35 percent of urban primary school teachers and 25 percent of rural primary teachers are qualified. Qualified primary teachers have the equivalent of secondary school training (junior secondary plus about three years of specialized training). Unqualified teachers vary in preparation from near qualification downward, with many having only a primary school certificate. The difference between the average salary of teachers with specialized training ($60/month) and those with no teacher training ($50/month) is not enough to encourage unqualified teachers to take the three-year teacher training course. Secondary and Technical/Vocational Education 31. For those pupils who pass the primary school examinations there are secondary schools in the towns operated by the Department of National Education. The curricula are oriented to preparation for university with heavy emphasis on language, literature and mathematics. The sciences are taught by lecture. The few secondary schools with laboratories have only enough equipment to permit demonstration experiments. Classrooms of public secondary schools are over- crowded, with up to eighty students in a classroom built for forty. A few private secondary schools in Port-au-Prince have developed a tradition for quality educa- tion but they are expensive and within the means of only an affluent minority. 32. The Department of National Education is responsible for general secon- dary education and operates teacher training colleges and technical and vocational training schools on several levels, again with limited facilities for practical  - 8 - work. Other departments run their own specialized schools for the training of nurses, hotel personnel and social workers. The Department of Agriculture operates several primary teacher training colleges and schools to train extension agents. University 33. The University of Haiti is a loose federation of faculties funded and administered by several government departments. The Department of National Educa- tion supports the faculties of ethnology, law, economics, science, international studies and pedagogy. The Department of Public Health operates the faculty of medicine; the Department of Agriculture operates the faculty of agronomy and veterinary medicine and the Department of Public Works supports the faculty of engineering. Non-formal Education 34. In 1962 the Government created the National Office for Literacy and Community Action (ONAAC) to initiate non-formal training programs in rural areas. The Office has succeeded in raising the level of literacy in communities where it followed up with reading materials. However, the limited funding available :rom the national budget has stunted the effectiveness of the Office. The Office's assignment to also undertake community action programs has had only minor success because it lacked the means for sustained action. Expenditures for Education 35. In recent years about 19 percent of the Central Government's operating budget has been allocated to education. Of this amount, 71 percent is administered by the Department of National Education, 23 percent by the Department of Agriculture and the remainder by other departments with specialized schools. About 90 percent of all disbursements from the operating education budget are for teachers' salaries, leaving little for teaching materials, even less for school maintenance. Haiti receives assistance from numerous missionary societies and other voluntary agencies whose schools are the only educational opportunities avail- able in many communities. The monetary value of the expenditures of these voluntary agencies together with the payments of parents to private and public schools is estimated to be over one and one-half times the total operating education budget of the Central Government, Public expenditures for education are estimated at about US$6.3 million in 1974 or about 0.9 percent of GDP, one of the lowest of any developing country. External Aid 36. Foreign aid agencies have, especially since 1971, spearheaded special projects intended to revitalize specific subsectors of the education system. CIDA has supported with equipment and technical assistance, the transformation of a technical school in Port-au-Prince into a comprehensive secondary school, incorporating a technical/vocational section. France is supporting secondary and vocational schools by supplying teachers and is giving assistance to reform of primary curricula and teacher upgrading programs at the National Pedagogical Institute (IPN). UNDP is financing UNESCO experts in radio programming and education planning, and through ILO is helping finance construction of a  - 9 - National Vocational Training Institute (INFP) as well as providing technical assistance for developing curricula and teaching methods for vocational schools, organizing upgrading courses and developing a system of on-the-job training within industry. IDB, which in the late 1960's supported a project to train agricultural agents, is now preparing a rural primary education project which would complement the proposed IDA project by expanding teacher training facilities under the Department of Agriculture and by construction of community learning centers in rural areas not served by the project under consideration. Planning 37 The Department of National Education has recently established a planning office but it has a meager statistical base to begin operations. The Government's national planning office, CONADEP, has created an office to plan the development of human resources. Technical assistance for this purpose is being provided by UNDP and would be supplemented by the technical assistance component of the pro- posed project. The authorities have indicated their intention to increase enroll- ments and budgetary appropriations for education, but have not yet formulated specific long-range plans and targets. These will be defined with the help of studied to be undertaken under the proposed project (see para. 48) and in periodic meetings between the Government and IDA to review progress in achieving overall national objectives in educational reform and increased educational opportunities. On the basis of the above-mentioned studies and in consultation with IDA the Government would prepare a comprehensive education development plan by June 30,1977 (Section L002(a) and (b) and supplemental letter to the draft Credit Agreement). IDA Strategy 38. The UNESCO/IDB education sector study carried out in June 1974 identified a wide range of projects which needed the urgent support of the Government and external aid agencies, with special emphasis on the need for support for rural primary and adult literacy programs. In the country's present socio-economic situation and within the constraints of the limited capacity of Haiti's educational management, a first IDA project would concentrate mainly on the improvement of basic education in two selected rural areas, the Northern Plain and the Artibonite Valley containing about one-third of the country's rural population. The project would complement the rural development projects which are in preparation by IDA, IDB and the Federal Republic of Germany for these two areas. The longer range aim of the project would be to assist the Government in the adoption of practical curriculum reform throughout the primary education system, to upgrade the level of primary teacher qualifications and to provide resources for adult education programs. PART IV - THE PROJECT 39. The project was identified by an IDA mission which was in Haiti in March 19750 A preparation/appraisal mission was in the country from May 25 to June 19, 1975. A post-appraisal mission in August 1975 discussed the main pro- ject-related issues, and outlined implementation procedures with the interested departments. Negotiations for the proposed credit were held in Washington from January 5 to 9, 1976. The Haitian delegation was headed by Mr. Georges Salomon, Ambassador to the United States and the OA.S. A report entitled "Appraisal of  - 10 - a First Education Project - The Republic of Haiti" (No. 939-HA) dated February 9, 1976 is being distributed separately. The main features of the credit and project are sunmmarized in Annex III. Project Objectives and Description 40. The above assessment of Haiti's educational problems points out the need for long term commitments on the part of the Government to implement reforms and on the part of aid agencies to offer sustained support. The Government recognizes the need for reforms and is willing to begin to over- haul its educational system, and to increase budgetary allocations to educa- tion. To support this commitment the first IDA project is designed to: (i) increase educational opportunities mainly in two rural areas for primary school children and through non-formal classes for adolescents and adults; (ii) upgrade the qualifications of the present primary school teachers and expand the training facilities for new teachers for both formal and non-formal education; (iii) modernize and make more practical the primary school and teacher training curricula; and (iv) help authorities improve educational planning, administration and supervision at the national, regional and local levels. 41. The project comprises: (a) Site development, construction, furniture and equipment for: (i) 65 new rural community learning centers as well as housing for teachers in the Northern Plain and the Artibonite Valley; (ii) 10 new urban community learning centers in Cap Haitien, Gonaives and Port-au-Prince; (iii) Two new primary teacher training colleges with boarding facilities and housing for staff in Cap Haitien and Gonaives and extension of one primary teacher training college with boarding facilities in Port-au-Prince; (b) Equipment for special literacy and community development programs; (c) Seven man-years of technical assistance and one man-year of fellowships; and (d) Support for the Project Unit. 42. Community Learning Centers: The community learning centers would consist of four-classroom primary schools in rural areas and six-classroom pri- mary schools in urban areas. In addition to these classrooms, which would also be used for functional literacy classes, each center would have a simply equipped workshop and home-management area which would be used by the out-of-school  - 11 - population in community development activities organized by ONAAC and by the Departments of Health and Social Affairs. The project would also provide living accommodations for the teachers in rural areas, an inducement for teachers to accept village assignments. About one-third of the rural centers and seven of the 10 urban centers are expected to have a large enough pupil catchment area for double shift operations. Besides enrolling adolescents and adults in special programs, the 65 rural centers with 13,000 student places would enroll about 17,400 school-age children and the 10 urban centers with 3600 student places would enroll about 5h00 school-age children. The rural centers which would serve as satellite schools to central six-grade schools would offer a restructured 4-year basic curriculum. 43. A school mapping exercise already completed by the Department of Agriculture provides the basis for locating the rural centers. These would be in educationally neglected communities - where distances from schools are major factors in non-enrollment, drop-out, absenteeism and poor performance. Thirty sites have already been selected of which twenty have been acquired. The new school sites will also be suitable for practical demonstration work in agriculture. Six urban centers will be in Gonaives and Cap Haitien, four will be in Port-au-Prince; some will serve as practice schools for the project teacher colleges. The Government, through the Departments of National Education and of Agriculture,would introduce into the project primary schools reformed curricula with common core courses, limit per class enrollments to fifty pupils, provide new learning-teaching aids for the project centers and ensure that the project centers would function both as primary schools and community learning centers for adolescents and adults. The Government would also institute new in-service and pre- service teacher training programs so that by the fourth year of operation at least 50 percent of the teachers appointed to the centers would be fully qualified (Section 3.05 of the draft Credit Agreement). About 35 new qualified teachers would be assigned annually to the project schools over a five-year period beginning in 1978. These teachers would be recruited from an annual output of about 6h0 qualified teachers by 1960 (see para. 44). Unqualified teachers in the centers would have three years post primary education and would have followed an inten- sive pre-service pedagogical training course pending further training for full qualification. 44. Primary Teacher Training Colleges: The project will assist construction of teacher training facilities under the Department of National Education. An existing teacher training college in Port-au-Prince would be remodelled and facili- ties expanded to assimilate students from two other colleges nearby now functioning in rented houses, and two new colleges would be built at Gonaives and Cap Haitien. Hostel accommodations for 80 girls would be provided at each of the project colleges and staff housing would be built at Gonaives and Cap Haitien. In each of the three project colleges enrollments would be expanded to 2h0 students (in one to three year courses depending on prior training and experience), attaining an output of about 300 qualified teachers per annum by 1980 in the three project colleges and 400 in all colleges under the Department of National Education as compared to about 100 at the present time. Teacher training colleges under the Department of Agriculture, now graduating about 60 teachers annually, are expected to increase their output of trained teachers under a proposed IDB-supported project now in preparation, to about 2h0 graduates annually; for a combined national output by 1960 of 6h0 qualified teachers (about 70 percent of projected annual vacancies, compared to a present 30 percent national average of qualified primary teachers).  - 12 - In the unlikely event that IDB assistance is not forthcoming by June 30, 1977, the Government would undertake measures to expand rural teacher training programs (Section 4.02(c) of the draft Credit Agreement). Intensive in-service teacher up- grading programs will further increase the national ratio of qualified--teachers. The National Pedagogical Institute through "summer school" and regional seminar programs, will train teachers on-the-job, beginning in 1976. Should anticipated training programs, nevertheless, prove to be inadequate, an eventual Second IDA- financed education project in Haiti would include additional teacher training facilities under the Departmeat of Agriculture. 40 A revised curriculum would be introduced in the project colleges to ensure training of the teachers in the dual role of teacher/community development agent. Sufficient time would be devoted to workshop/home management activities, handicrafts, agriculture and rural development. Adequate teaching practice and participation in community development programs would be integrated into the curriculum. The Government would ensure that relevant curricula would be developed by the IPN for the various pre-service and in-service courses by the time construct- ion of the new teachers colleges is completed and that these curricula would have basic courses common to the teacher training programs of both the Departments of National Education and of Agriculture. Teachers upon graduation would be qualified and allowed to serve in the schools of both departments (Section 3.06 of the draft Credit Agreement). Selected community learning centers would be used as applica- tion schools for teaching practice. Each college would be provided with a bus to facilitate transportation of trainees to outlying schools. L4c, A study of the conditions of teacher service and of appointment procedures of the teacher corps will be undertaken by the Government,with technical assistance to be provided partly by UNDP and partly by the proposed project, to determine appropriate measures needed to encourage teachers and teacher candidates to attain full qualification,to remain in the teaching profession and to take village assignments (Section 3.07 of the draft Credit Agreement). 47. Literacy and Community Development Programs: Equipment would be pro- vided to central and regional (Artibonite Valley and Northern Plain) offices of ONAAC to support supervision and counseling services to the instructors at the community centers and to improve teaching of courses for adolescents and adults. The equipment would include eight mobile units equipped with audio-visual and other teaching aids, 12 motorcycles for use of the supervisors, duplicating machines, radio sets, audiovisual aids and printing materials. Specialists in literacy and rural education, and in the preparation of related materials at the IPN would be involved in improving functional literacy programs, including implementation of supervisor and instructor training programs. 480 Technical Assistance: Specialists expected to be financed by UNDP - an education planner, an administrator and a statistician - would be assigned to work with CONADEP. In addition the project would provide seven man/years of technical assistance to help IPN in development of new curricula and teaching materials, to undertake special studies - including conditions of teacher employment and future investment needs - for the departments of National Education and Agriculture and CONADEP and to assist the Project Unit in execution of the project. One man/year equivalent of fellowships would be provided for overseas training of local staff. All specialists and the terms of their service would be acceptable to the Association, and fellowships would be awarded to candidates with qualifications and experience satisfactory to IDA (Section 3.04 of the draft Credit Agreement).  - 13 4?. Support for Project Unit: The salaries of key members of the Project Unit staff, the furniture, equipment and vehicles required by the Unit, as well as the fees of part-time local consultants have been included in the project cost. Project Cost and Financing 50. The total cost of the proposed project, net of duties and taxes, is estimated at US$6.5 million. Of this amount, the Government would provide US$1.0 million. The proposed credit of US$5.5 million (85 percent of total project cost) would finance the foreign exchange component of US$3.3 million (51 percent of total cost) and US$2.2 million of local currency costs. Local cost financing is recommended for the reasons indicated in para. 12 supra. 51. Construction cost estimates were derived mainly from current prices of ongoing civil works contracts which are generally lower than in neighboring Caribbean countries. These were adjusted to reflect economical norms and standards in the design and construction of the project institutions and the appropriate use of local materials to reduce maintenance expenditures. Contri- bution of school sites by villages, the use of local materials and local supply of unskilled labor, as is anticipated for many rural community centers, could reduce rural construction costs by 15 percent. Any savings which may result from such community participation would be used for other project related purposes, subject to IDA approval. -520 Recu.rent Costs: Incremental recuirent expenditures for operation of project institutions, about US$465,000/year when all institutions are in full operation, would amount to about 3.4 percent of total projected Government re- current education expenditures by 1980/81. Total Government outlays on education are expected to rise to US$13.6 million by 1980/81 at constant 1974 prices from US$6.3 million in 1973/74. The Government would ensure that sufficient funds would be available for the operation of the project institutions (Section h.03 of the draft Credit Agreement). Project Execution 53. Administration: A Project Unit responsible for the execution of the Project and for ensuring the necessary coordination between the Departments of National Education and Agriculture would be established within CONADEP. The key steff of the Project Unit to be employed on a full-time basis would consist of a Director, an Educator, a Procurement Specialist and an Accountant, all with qualifications acceptable to IDA. The Director of the Project, a well qualified Haitian, has already been appointed. The Departments of National Education and Agriculture would each designate a high level officer to coordinate with the Project Unit on the educational aspects of implementation of the project. A separate project account, which has already been established, would be audited annually by auditors acceptable to IDA (Section 4.01(b) of the draft Credit Agreement). The Government would make advance quarterly deposits to the project account sufficient for the anticipated needs of the project. Establishment of the Project Unit, appointment of the Project Educator and of the two coordina- ting officials and the initial advance quarterly deposit to the project account would be conditions of effectiveness. To help ensure the timely execution of the proposed project the Government would prepare and follow a comprehensive implementation schedule (Schedule 4 of the draft Credit Agreement).  - 14 - 54. Professional Services: Consultants acceptable to IDA would be appointed for the design, construction and supervision of civil works. Field supervision of rural school construction may require substantial inputs, taking into account the dispersion of sites and the need to coordinate community participation. Consultant firms established in Port-au-Prince are capable of rendering the professional services required. Architectural designs and con- struction specifications would meet the functional and physical standards acceptable to IDA. Simplicity of design and construction would be a basic objective. 55. The Government would establish special technical committees with repre- sentatives of the Departments of National Education and of Agriculture and of the Project Unit to analyze and review architectural designs and equipment and furniture lists, and to certify that they meet functional standards and costs as well as the educational objectives of project institutions (Section 3.03 of the draft Credit Agreement). 56. Procurement: Twenty sites for project schools, enough to ensure imple- mentation of the project's school construction component during the first year, have already been acquired, after selection according to criteria acceptable to IDA. Other sites would be selected and acquired as and when needed for con- struction (Section 3.10 of the draft Credit Agreement). 570 Since the project civil works would be let in small lots and would be geographically dispersed, foreign contractors are not expected to participate, though they would not be precluded from bidding. Civil works contracts would therefore be awarded in accordance with local procedures acceptable to IDA. Contracts for procurement of furniture and equipment and bulk purchase of materials, with the exception of small-lot purchases, would be awarded on the basis of international competitive bidding in accordance with Bank Group guide- lines. Domestic manufacturers of furniture, equipment and materials would be allowed a preferential margin of 15 percent of c.i.f. costs of competitive imports or the current applicable import duty, whichever is lower. Furniture, equipment and materials that cannot be grouped in packages of at least UI4$15,000 or more would be procured according to local procedures acceptable to IDA. Procurement under these small-lot procedures would not in the aggregate exceed US$75,000 (corresponding to less than 10 percent of the total cost of furniture, equipment and materials). 58. Disbursements: The proposed credit of US$5.5 million would be dis- bursed over a period of about four years. A schedule of estimated disburse- ments is given in Annex III. Retroactive financing not exceeding US$150,000 is recommended for expenditures made from September 1, 1975, against payment for professional services, technical assistance and project administration. Benefits and Risks 59. The proposed project would increase educational opportunities for children and adults mainly in two rural areas, upgrade the qualifications and expand training facilities for primary teachers, modernize the primary and teacher training curricula and help improve educational planning, administration and supervision.  - 15 - 60. There are some risks that the longer-range objectives of generalized curriculum reform and nation-wide upgrading of teacher qualifications may not be realized unless the Government adopts specific plans and makes adequate alloca- tions of scarce financial and human resources. To pursue these objectives the Government, with the assistance of qualified experts, will prepare an education development plan by June 30, 1977 on the basis of a statement of long-term objectives agreed with the Association. Together with the Association,the Government will annually review implementation programs and future resource needs. The risk of possible inadequate cooperation between the Departments of National Education and of Agriculture and the IPN has been minimized by the establishment of the Project Unit within CONADEP, by the appointment of its Director from the Department of National Education and its Educator from the Department of Agriculture, by appointment of a coordinator from each of the two departments and by the appoint- ment of a well qualified Haitian as director of the IPN, who is also the Director of Primary and Teacher Education at the Department of National Education. PART V - LEGAL INSTRUMENTS AND AUTHORITY 61. The draft Development Credit Agreement between the Republic of Haiti and the Association, the Recommendation of the Committee provided for in Article V, Section l(d), of the Articles of Agreement and the text of a draft resolution approving the proposed credit are being distributed to the Executive Directors separately. 62. Aside from features of special interest mentioned elsewhere in this Report, the draft Credit Agreement conforms to the normal pattern for credits for education projects. Establishment of the Project Unit, appointment of the Project Educator and two coordinating officials from the Departments of National Education and of Agriculture, and an initial advance quarterly deposit to the project account would be additional conditions of credit effectiveness (Section 5.01(a)(b) and (c) of the draft Credit Agreement). 63. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association. PART VI - RECOMMENDATION 64. I recommend that the Executive Directors approve the proposed credit. Robert S. McNamara President Attachments February 10, 1976   Page- 1 f 3 pages OUNTIOT DATA - iHAITI AREA POPULATION DENSITY 2