Guinea - Education Sector Adjustment Credit

Document of The World Bank FGJ OaFFICIAL USE ONLY Report No P-5288-GUI RiEPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 15.4 MILLION TO THE REPUBLIC OF GUINEA FOR AN EDUCATION SECTOR ADJUSTMENT CREDIT MAY 11, 1990 This document has a restricted distribution and may be used by recipients only in the performance of teir official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUnvALENTS Currency Unit . Guinean Franc (FG) Annual Average Guinean Francs per US Dollar 1986 FG345; 1987 FG429; 1988 FG475; 1989 FG592 ABBREVIATIONS AND ACRONYMS APE Association des Parents d'Elbves Parents' Associations CFP Centre de Formation Professionnelle VocationaliTechnical School DAAF Direction des Affaires Administratives et Financiares Directorate of Financial and Administrative Affairs DSPE Direction des Statistiques et de la Planification de l'Education Directorate of Education Statistics and Planning ENI Ecole Normale d'Instituteurs Primary Teacher Training College ESAF Facilite d'ajustement structurel renforce Enhanced Structural Adjustment Facility IPN Institut P4dagogique National National Pedagogic Institute MEF Ministare de l'Economie et des Finances ;Ministry of Economy and Finances MEN Ministbre de l'Education Nationale Ministry of National Education MID Ministare de l'Int6rieur et de la Decentralisation Ministry of Interior and Decentralization MPCI Ministhre du Plan et de la Coop6ration Internationale Ministry of Planning and International Cooperation MRAFP Ministare de la Reforme Administrative et de la Fonction Publique/Ministry of Administrative Reform and Civil Service ONFPP Office Nationale de la Formation et de la Perfectionnement Professionelle/National Vocational Training Agency PAS Programme d'ajustement structurelle Structural Adjustment Program PASE Programme d'ajustement du secteur de l'education Education sector adjustment program SSA Afrique subsaharienne Sub-saharan Africa SEEPU Secretariat d'Etat & l'Enseignement Pre-Universitaire Secretariat of State for Pre-university Education FISCAL YEAR: January 1-December 31 SCHOOL YEAR: September-June  FOR OFFICIAL USE ONLY ii REPUBLIC OF GUINEA EDUCATION SECTOR ADJUSTMENT CREDIT TABLE OF CONTENTS Pagqe CREDIT SUMMARY#.* ..... ......... o......................................... iv PART I. THE ECONOMY . .................. ...... ....................... 1 A. Background ...........................................1.........l B. Recent Developments and the Adjustment Program ... . .............. 2 C. Human Resources and Adjustment ............................. 4 PART II. THE EDUCATION AND TRAINING SECTOR .............................. 5 A. The Current Educational System .. . 5 B. Past Policies .................................................. 6 C. IDA's Lending Strategy in the Sector . . . 7 D. Current Major Constraints .................................... . . 8 a. Inefficient Management of Resources ................... 8 b. Resource Constraints .. . 9 c. Structural Deficiencies .................................. . . 11 d. Human Resource Constraints . . ...... 12 PART III. THE GOVERNMENT'S SECTOR ADJUSTMENT PROGRAM ................... 13 A. Educational Development without Adjustment . .. ........... 13 B. The Government's Sector Adjustment Program . .. 13 C. Specific Measures under the Sector Adjustment Program . . 14 D. Costs and Impact of the Proposed Program .. 20 PART IV. THE PROPOSED CREDIT ........................................... 23 A. Rationale, Objectives and Description . .................... 23 B. The Sectoral Adjustment Program and its Review ................ 24 C. Linkage to Overall Macroeconomic Adjustment ................... 26 D. Costs, Financing and the Allocation of Credit Proceeds ........ 27 E. Implementation .............................................. 27 a. Preparation Status ... . . 27 b. Monitoring and Evaluation .... 28 c. Management . ................................................ 28 d. Procurewent ................................................ 29 e. Disbursement and Special Account ........ .................... 29 f. Accounting, Auditing. and Reporting . . . 29 F. Benefits, Risks and Risk Management ..... 30 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.  iii PART V. BANK OPERATIONS & COLLABORATION WITH IMF & OTHER DONORS ........ 31 A. Aid Flows and Bank Operations ............................. . 31 B. Relationship with IMF ........................... 31 PART Vl RECOMMENDATIONS ... . ........................ ......... * ...32 ANNEXES Annex 1. Basic Data................................................... Annex 2. Key Macroeconomic Indicators................................ Annex 3. Status of Bank Group Operations.............................. Annex 4. A Statistical Profile of the Education System................ (i) Overview ....................................... (ii) The Primary Sub-sector......................... (iii) Teacher Qualification and Training............. (iv) The Financing of the Sector.................... Annex 5. Government's Letter of Education Polic ...................... Annex 6. The Adjustment Program .......................... Part 1: Supplementary Credit Data Sheet...................... Part 2: Action Plan with Review Criteria for Tranche Release..................... . .. ........... Annex 7. The Cost and Financial Impact of the Sectoral Adjustment Program.......................................... Map  REPUBLIC OF GUINEA EDUCATION SECTOR ADJUSTMENT CREDIT CREDIT SUMMARY Borrower: Republic of Guinea Beneficiary: Ministry of Education and Secretariat of State for Pre- university Education Credit Amounts IDS Credit of SDR 15.4 million (US$20 million equivalent), to be disbursed in three equal tranches. Terms: Standard IDA terms, with 40 years maturity Program descriptions The credit would support implementation of a comprehensive package of educational policy reforms, aimed at preventing a major deterioration of the education system and creating a basis for the sector to contribute to medium-term socioeconomic development, to be achieved through: (a) improving eector strategy formulation and managerial capacity; (b) rationalizing public expenditure in the sector: Ic) launching a primary school construction and rehabilitation program; (d) increasing the relevance of education to employment prospects, and the economic needs of the country, and (e) addressing gender issues with programs of special emphasis. Specific reforms targeted by the operation include measures that address: a. national policy and strategic framework through: (i) adoption and further development of a comprehensive statement of national policy for the sector, and (ii) creation of a mechanism to monitor the implementation and evaluation of key policy changes in the sector; b. general sector management through: (i) creation of a senior sector coordination committee, and (ii) internal reorganization of MEN and SEEPU; c. more efficient and effective resource use and generation through: (i) regular monitoring of sector budget allocations and actual expenditures, (ii) adoption of spending norms for critical non-salary inputs at all levels of education, (iii) adoption of new construction cost norms and building techniques, (iv) creation of a matching fund mechanism to increase locally generated resources for educational investment, (v) promotion of private education at all levels, and (vi) allocation of an increased proportion of the overall recurrent budget for the operation of the sector;  v d. underdevelopment and poor relevance of the educational system through: (i) promotion of a revised primary school model, (ii) adoption of limits on the repetition of grades, (iii) completion of the rationalization of higher education, and (iv) definition of and preparation for the rationalization of vocational skill training and technical education; e. more efficient use and distribution of staff through: (i) introduction of a computerized personnel management system, (ii) application of new staffing norms, (iii) creation of a consultative body charged with coordinating teacher trainitg activities, and (iv) introduction of comprehensive in-service staff training programs. Benefits and risks: The reforms supported by this operation should make a key contribution to alleviating a major constraint to development in Guinea through improved performance of the education and training sector. The benefits are of three types: First, the operation would both support and reinforce the overall macroeconomic adjustment program and extend critical reforms (budgetary improvements, cost-containment, more efficient and effective resource use, civil service reform) into a key secto... The central organs of Government responsible for public finance management would be sensitized to the need for regular, adequate allocations to education, and the budget process and expenditure controls would be strengthened and fully implemented. Secondly, the operation would ensure the protection of the education system during a period of austerity and provide support for measures to alleviate the burden of macroeconomic adjustment on some of the most vulnerable groups, specifically children of school-age. Thirdly, the operation would support educational reforms which promote qualitative improvements in education, while laying the foundation for a more efficient and effective educational system. Following implementation of these reforms, the education system will be better able to provide the trained technical and skilled manpower needed by the private sector, and to keep pace w- h the expanding demand for education due to population growth. Risks and risk management: The risks are threefold. First, a lack of Government comnitment to policy changes might lead to the measures outlined in Part III of this report not being implemented. To address this, the preparation of the operation relied heavily on consensus building at both the national and the sector levels. This resulted in the adoption by Government of a satisfactory institutional framework for overseeing these policy elements; key monitoring and management functions are reinforced with the creation of the program monitoring committee ('Comitd de Suivi du PASE") and the sector coordination committee. In  vi addition, tranche release is linked to the joint annual review of performance on the operation's key measures. Secondly. the sector reform might exceed the administrative and managerial capacity of the MEN. This is addressed as above, by consensus building and strengthening of the institutional framework; key directorates are reinforced and specialist support is available from the Technical Secretariat. In addition, the operation contains a selective choice of measures, to be implemented in a phased manner, and does not encompass immediate implementation of all aspects of the reform. Finally, poor macroeconomic performance would jeopardize the ability of the Government to sustain the education reform. To ensure that linkage of this operation to the macroeconomic situation is monitored, the 'ComitO de Suivi du PASE' provides quarterly reports to the Government's Economi. and Financial Coordinating Committee (CCEF), and the annual joint review of performance of the operation includes review of the recurrent and investment budgets. In addition, tranche release for this operation is linked to satisfactory progress on the structural adjustment program (PAS). Economic Rate of Return: Not Applicable Appraisal Report: None Map: IBRD 22314  1 INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT TO THE REPUBLIC OF GUINEA FOR AN EDUCATION SECTOR ADJUSTMENT CREDIT 1. I submit the following report and recommendation on a proposed Development Credit for SDR 15.4 million (US$ 20 million equivalent) on standard IDA terms with a maturity of forty years, to the Republic of Guinea. The proposed operation would be financed by IDA (US$20 million, 100l quick disbursing funds), the French Fonds d'Aide et de Cooperation (FAC) (US$9 million), and the United States Agency for International Development (USAID) (US$15 million, 60? quick disbursing funds). Execution of the program of activities related to the adjustment would be supported by contributions from the Government of Guinea (US$9 million) and local communities (US$4 million). PART I. THE ECONOMY A. Background 2. While Guinea's agricultural, mineral and energy resources make it one of the better endowed countries in Africa, its per capita income of less than US$ 380 (1988) places it among the least developed countries in the world. Social indicators of life expectancy (43 years), infant mortality (160 per thetsand), and illiteracy (72Z), reflect the poor living standards of most of its 6.1 million people after more than 25 years of steady economic decline. Basic data and macroeconomic indicators are summarized in Annexes 1 and 2. 3. From being a major exporter of agricultural products at independence in 1958, Guinea's economy changed drastically in the 1970s, into that of a virtual monoexporter of bauxite and a net food importer. Economic activities shifted from the rural to the urban sector, and economic management was increasingly carried out by an oversized and inefficient public sector. This resulted in a serious misallocation of resources, disincentives for exports, an inability to mobilize domestic savings, and ultimately, a heavy national debt. Political instability was the backdrop to such developments, and it prompted the departure of an estimated 1.5 million people from the country, among them many of the best qualified technicians and professionals. Even today, the effects of this loss of skilled manpower are felt in the economy. 4. By the early 1980s, the economy had become essentially dualistic, with the parallel market satisfying a growing share of consumer demand for imported goods and foodstuffs: revenues from the bauxitelalumina enclave could no longer provide for the financing of subsidies to an inefficient parastatal sector, for the timely service of external debt, nor even for the operation of the most basic government services. By 1984, budget deficits and external payment arrears had attained critical levels.  2 5. While data on the labor force and employment are limited and approximate, it is estimated that in the effective labor force of 2.9 million, 8't are mobil- ized in agriculture and the rural informal sector, 8? are in the urban modern sector (industry and civil service), and 52 are in the urban informal sector. The labor force is far from fully employed, but employment in the modern private sector, the non-agricultural informal sector and the traditional agricultural sector has been increasing. Modern private commercial employment increased bet- ween 1987 and 1988 by about 3,000 to a total of 31,000. Of this number, 2,000 are non-nationals, almost all located in the capital, while of the 29,000 Guineans, 501 are locate4 in the capital. B. Recent Developments and the Adiustment Process 6. The new leaders installed after the 1984 military coup launched a series of ambitious economic and financial reforms. The underlying principle was to adapt the economy to the reality of the Guinean resource base. The Government's program, prepared in close consultation with IDA and the IMF, was aimed at free- ing the economy from pervasive state control, improving efficiency in public administration and enterprices, and setting up a policy framework conducive to a market-oriented economic system. In the first phase (1986-88), specific measu- res were designed to: (i) correct currency over-valuation; (ii) establish a new banking system; (iii) decontrol prices and liberalize trade; (iv) re-organize government departments; lv) cut employment levels in the public sector and reduce public involvement in industrial and commercial activity; and (vi) reori-mnt public investment in support of productive activities. Transitional measures were also adopted to cushion the adverse effects of the program's first phase on vulnerable urban groups. 7. The supply-side response to the reform's first phase has been encouraging: agricultural production for internal consumption and for exports, and small- icale and informal business activities increased rignificantly. Nevertheless, the underlying weaknesses of the economy and the scale of adjustment needed to achieve self-sustaining growth are such that the country will inevitably face a difficult transition over the medium term. Serious institutional weaknesses linger. Public finance management, the quality of the investment portfolio, and project design, execution and monitoring have yet to improve sufficiently. 8. The second phase of the reform program, started in late 1988, supported by IDA and other donors, includes measures specifically designed tot (i) consol- idate the liberal, market-oriented economic option; (ii) strengthen national economic management; (iii) rehabilitate the growth potential of key sectors and remove infrastructural bottlenecks; and (iv) implement a comprehensive human resources policy. The latter illustrates the Government's determination to achieve both growth and equity and improve the incomes and access to basic services of low-income households. This brings new elements into the reform process: revision of the education and training system to reflect better the country's socio-economic reality, and to meet the needs of a changing economy; definition, within the PIP framework, of a core investment program in the social sectors to protect the poorer segments of the population against future cuts in government expenditures; and financing of investments or recurrent expenditures for basic services by matching community funds with central government funds.  3 9. Medium Term Prospects for Growth. For 1990-92, the Government's macro- economic objectives are: (i) an average annual rate of economic growth of about 52; (ii) a reduction in the rate of inflation to 10? by end 1992; (iii) a reduced fiscal deficit to an average of 3.6? of GDP; (iv) the maintenance of the real exchange rate at a level consistent with competitiveness over the medium term; and (v) a reduced current account deficit (including official transfers) to sn average of 5.1S of GDP, thereby restoring the level of available foreign exchange reserves to the equivalent of 4.3 months worth of imports (see Annex 2). 10. The per annum average growth rates from 1990 through 1995 for each sector of the economy are projected as follows: (i) agriculture, livestock, fishing and forestry 3.62; (ii) mining, manufacturing, construction and utilities 5.1 (of which construction activity and manufacturing are 12.91 and 5.9? respectively); and (iii) trade, administration, transport and other tertiary activities 5.4?. 11. The above scenario, which incorporates the financial implications of the proposed operation, yields a decline in the overall budget deficit on a commit- ment basis, including grants, from 8? of GDP in 1988 and 5.1? in 1989 to less than 4.5? of GDP for the 1990-95 periodl, and an improvement in the current budget balance of the Government, from a deficit of 1.2? of GDP in 1988 to a surplus of nearly 3.5? over the 1990-1995 period, thereby contributing to the national savings effort. This outcome would critically depend on Government efforts to increase non-mining revenues and on strict expenditure controls (see Annex 2). However, even with the increases in national savings, it is expected that by the end of the psriod Guinea will still require balance of payments support in the form of debt relief and new concessional funding. The projected deterioration in the terms of trade and the drop in bauxite earnings after 1991, together with the growth in private sector and public investment-related imports and the increasing interest payments on the public debt, result in a projeceed current account deficit of US$298 million for the 1990-92 period (see Annex 2). 12. While most major indicators are projected to improve during this period, the needed reduction in the fiscal deficit will place the availability of public funds tor recurrent expenditure under increasing pressure. Overall recurrent expenditures (excluding interest payments) are likely to decline by about 62 in real terms over the 1989-95 period. At the same time, much needed civil service salary increases will require a redistribution of expenditures away from goods, services and transfer payments towards sala es. Hence, during the next three years, material inputs and expenditures neec.d to operate systems will suffer from increasing pressure, and cuts in Government non-salary operating expendi- tures will be unavoidable. 13. Balance of Payments and External Capital Requirements: Taking into account net capital inflows (including identified adjustment lending) and reserve accumulation targets, there remains a balance of payments financing gap of US$104 million over the period 1990-92. The proposed operation will generate US$27 million of additional sector imports and will provide US$44 million of financing, a net contribution to gap financing of US$17 million. The proposed Private Sector Promotion Operation will contribute a further US$50 million; the 1 All budgetry date *xclude traneactions with the USSR.  4 remainder, US$34 milliou, could b. financed by an ESAF from the IMF and other adjustment financing frun the Special Program for Africa. C. Human Resources and Adiustment 14. Guinea's population of 6.1 million (1989) is young (45Z under 15 years old), currently growing a' 2.8! p.a., and largely rural (77!). Social indicators reflect the poor health status of the population. The health sector is being supported by an IDA funded project (Cr.1837-GUI) which covers the period 1988- 1993. Population growth of close to 3! p.a. is expected by the end of the next two decades, with population approachitng 10 million by the turn of the century. This will put increasing strain on Government to provide essential social services, notably in education. The population has very limited access to primary schooling, particularly in the rural areas. Girls are under-represented in education. Because basic education, especially of girls and women. has a positive effect on the health status of the population through nutrition, hygiene and child care, the low education profile of the population contributes to the population's poor health status. Poor health and limited educational provision combine to limit severely labor productivity (details are given in Annex 1). 15. The relationship between education and macroeconomic adjustment is two- sided. On the one hand, rapid macroeconomic adjustment in Guinea is hampered by the lack of trained and experienced manpower. Employment is expected to grow commensurate with the growth in each sector of the economy (paragraph 10). How- ever, the education and training system produces school-leavers who are ill- prepared for employment. This has led to a workforce with a low skill-profile, and has perpetuated the lack of trained, experienced and productive manpower. 16. On the other hand, desirable measures included as part of macroeconomic adjustment have repercussions on the education and training system. For example, the public administration reform is aimed at the development of an efficient and motivated civil service by reducing the number of redundant and unskilled employees and granting significant salary increases to remaining staff. Staff numbers on the public payroll were reduced from about 90,000 civilian employees in 1986 to about 51,000 at end-1989 (a reduction of about 43!) while real salaries of civil servants who have successfully undergone evaluation tests were doubled between 1986 and 1989. The combined effect of these two measures is estimated to have increased the Government wage bill by 50! between 1986-1989. Given the projected evolution of the recurrent budget, and taking into consid- eration other macroeconomic measures -such as reduced deficits- the increase in the wage bill will have to come from reductions in expenditure on goods, services, transfer payments and other operating expenses. Given the inadequate funding of materials in education, the potential effects of these macroeconomic adjustment measures on the sector would be both disproportionate and damaging, unless the supply of resources to the sector is substantially increased. 17. In order to strengthen the sustainability of the ongoing economic adjustment effort, a steadily expanding private sector and a lean, efficient public administration, the education and vocational training sector must improve its performance while taking into account other macroeconomic constraints. For these very reasons, education and training need support.  5 PART 1I. THE EDUCATION AND TRAINING SECTOR A. The Current Educational System 18. Performance: With literacy rates of less than 30Z and a primary gross enrollment rate of 282 in 1988189, Guinea's education system ranks among the bottom ten countries of the world. Despite a renewed interest in education after the change in Government, enrollments at all levels of education fell between 1984 and 1989 as a result of a failure to supply sufficient school places (particularly in urban areas) and declining demand for education due to low educational quality and limited 4mployment prospects. The problem is particularly severe at the primary level, where only three out of ten children of age 7 gained access to the first year of schooling. Education is unevenly distributed by sex and geographical area. Girls are under-represented in the overall system (341 of all enrollments); only about 172 of girls of primary school age are in school as compared to 402 of boys, and the continuation of girls to higher levels of education is significantly lower than that of boys. Educational opportunity also favors urban areas, where 542 of the age group are enrolled in primary school, contrasted with a meager 182 in rural areas. 19. The quality of formal education in Guinea has reached a crisis point. Only 402 of those who enter primary school complete the cycle2. Student progression to the next grade is decided by the teacher based on the student's mean perfor- mance in tests of doubtful accuracy. Large numbers of students fail examinations and this failure is addressed simply by repetition of the previous grade. Differences in repetition and drop-out rates exist between girls and boys with girls tending to drop-out earlier and at key points (in primary's final year, girls tend to drop-out while boys repeat). High drop-out rates in formal educa- tion and a limited national literacy 9-ogram have contributed to an increasing illiteracy rate in recent years, estimated at 60S for males, and 832 for females. 20. The imperfect match between education and socio-economic characteristics is not limited to enrollment pattervs or the distributian of schooling throughout the country, but is also evident both in the slow response of the education system to labor market changes, and in th- content of, and pedagogical approach to, learning. Shortages of skilled techni..ians and professionals continue (para- graph 3), and poorly educated graduates have been slow in making-up deficiencies. Professional training is still linked to the training of staff for public administration and not to the needs of private employers or self-employment. 21. An overly academic approach to primary education has alienated Guinea's youth from rural life and led to unfulfilled aspirations. The secondary-level system and technical and professional training centers (CFPs) are not linked to labor market needs and the content of education at these levels is academic and far removed from the reality of life and employment prospects. Despite recent closure and consolidation of some higher education establishments, post-secondary education has developed in isolation and has demonstrated little relationship to the high-level needs of a free-market economy. University courses are aimed 2 Avorego empletlon rat In thn sub-saharan African region In 1908 wore 61X (froncophon.) and 74X (anglophone).  6 at providing candidates for an already bloated civil service. Thus, education and training are not contributing satisfactorily to socio-economic development. In particular, present performance will not permit the fast paced introduction and dissemination of the many technological innovations required for improved labor productivity and economic competitiveness. 22. Structure and Administration: The structure of the Guinean education system is similar to that of other francophone countries and comprises three levels: six years of primary, seven years of secondary, and five years of tertiary education. Vocational/technical studies, lasting 3 to 4 years, are available at the secondary and tertiary levels. In 1988189, the system accommodated approxi- mately 382,000 students, with 772 in primary school, 20? in secondary (8? of secondary school-aged children), 1.42 in technical schools and 1.61 in univer- sities. The total teaching staff was about 13,000. A central Ministry of National Education (MEN), overseen by a Minister of Education, is split into an agency (SEEPU) responsible for all pre-university education under a Secretary of State, and a higher education agency under the Minister. SEEPU controls all schools through a provincial structure of five Academic Inspectorates whic', in turn, administer 36 prefectoral-level Directorates of Education and 210 sub-prefectoral Pedagogic Delegates. The two Universities, and the National Literacy Program- (SNA) and the National Pedagogical Institute (IPN) are agencies attached to MbEN and SEEPU respectively. An embryonic private sector provides very limited primary, secondary and vocational/technical training. Details of the current education system are given in Annex 4. 23. Sector Financing: Total public spending on education was estimated at 1.8Z of GDP in 1989. Tuition at all levels is free and Government finances almost all recurrent spending for education; in 1989 it allocated 12.9? of its total recurrent budget to the sector. France and USSR made some contributions to operating expenditures for teacher training, language programs and higher education but, in the main, neither donors nor domestic private sources provided recurrent budget support or direct financing of operating expenses. NGOs and private sector participation in recurrent expenditures was thus negligible. For investment, the role of domestic funding is less dominant with the majority of the investment budget financed by external sources (84? in 1989). Almost 62 of the investment program went for education investments; however, past investment has been slow with an implementation rate of 582 in 1988. While domestic public and private sources are nominally responsible for maintenance and construction of schools (local d.stricts and Parents' Associations (APEs) for primary, and prefectures for secondary), high investment costs and limited domestic funds leave the real burden for the external donor community. The same is true for vocational, technical training and higher education, where maintenance and construction is managed by the public sector and almost wholly funded by donors with some occasional assistance from the private sector. B. Past Policies 24. In 2984, Government launched a program of reform and rehabilitation to improve tIe operation of education and to relate it to employment opportunities. The reform included placing educational administration under a single ministry, reorganizing regional educational management, consolidating and rationalizing  7 higher education, extending secondary education by one year, and implementing a program of in-service training for teachers. In an effort to improve educa- tional quality. French was re-introduced as the language of instruction. However, a number of success prerequisites were overlooked (e.g. at least two generations of Guineans were less than fluent in French), resource allocation was slow and structural changes were limited. The program did not address the fundamental issues (see Section D) and was only partially implemented. 25. A look at the system from the service delivery end reveals a number of readily apparent deficiencies that can be considered as the immediate causes of the system's disappointing performance. Lack of facilities and funds to operate them account for the low overall coverage coefficients. Low and inequitable access to education reflects too strong a response to demand emanating from the more influential members of society. The poor quality of the system's graduates can be attributed to the use of outmoded curricula, poor teaching methods, a poorly qualified teaching force, a lack of training equipment and teaching aids, poor teacher motivation and supervision, a lack of infrastructure maintenance, and poor health of many of the students. In addition to the above, the divorce of the system from the needs of the economy and society at large can be attrib- uted to both demand side distortions and supply side deficiencies: limited adapt- ation to the changing labor taarket needs (and the requirements for productive self-employment), a lack of emphasis on the practical and the creative in curricula and teaching methods, insufficient practical content, an underdeveloped professional training system, and the continued alignment of the system to the training of civil servants. The underlying causes, i.e. the fundamental constr- aints that need to be removed progressively in order to improve system perform- ance, are analyzed in paragraph 27 et.seq. C. IDA's Lending Strategy in the Sector. 26. Bank policies lay special emphasis on human resources, women in development and poverty. Sector policies are aimed at reinforcing national education and training systems in Sub-Saharan Africa with the accent on basic education and qualitative improvement at all levels. The Bank's assistance strategy for Guinea stresses this as a condition for success of the macroeconomic adjustment scenario of growth with equity. More specifically, the strategy aims to: (a) set up a policy framework conducive to cost-effective and efficient operation of the system, thereby preparing for future expansion of basic education needed to keep ahead of demographic pressure; (b) relocate human resources policy from its past peripheral position to the main-stream of economic development, and (c) support implementation of Government's comprehensive social policy, with particular emphasis on basic education. This strategy will allow the education system to fulfill its primary role of preparing the workforce for productive activity. 27. Past assistance to Guinea's education sector predates the above strategy and the Government's adjustment program. While educational project performance has been positive, it has not had a major effect on the sector because the coher- ent sector policy framework was lacking, and the projects did not address changes in education policy. The two previous World Bank education credits (1979 and 1983) addressed manpower needs through training programs for industrial technic- ians and skilled workers, as well as vocational training, manpower and educat-  8 ional planning, and primary education improvements. Neither project included major elements of policy change and both were classic investment projects which did not question the state interventionism of the time nor address questions of resource allocation or use. The first project was successfully implemented on schedule with minor cost overruns. The second project (co-financed with the AfDB and the Saudi Fund) has achieved the majority of its physical implementation targets and was reoriented in 1987 to reflect improved policies of the Government and to ensure that issues of relevance and educational quality were addressed. As a result, learning materials have been prepared and are available for prod- uction and subsequent listribution. While appraisal targets have been reached in the two previous operations, experience gained during their implementation has shown the overwhelming need for a coherent education and training policy framework linked to the overall macroeconomic adjustment program, and for contin- uing support for the development of basic education, especially in rural areas. D. Current Maior Constraints 28. A major cause of poor sector performance has been the lack of a strategic framework for education and training at the national level. During the 25 years of the previous regime's mismanagement, the education was used to provide political patronage and, in some cases, "intellectualism' was cause for persecution and exile. The curriculum was also highly political and largely irrelevant to the country's needs. Since the charge in regime, the content of education at all levels remains old fashioned and outmoded and the teaching- learning process continues to be limited to lecturing, note-taking and recitation of often inappropriate contents. In the absence of any strategy, fragmented initiatives have been pursued (e.g. consolidation of agrotechnological institutes, expansion of vocational training centers), rather than formulating and implementing a comprehensive and coherent national policy linking education to the country's employment needs. 29. The second broad cause of poor performance is the lack of an adequate and performing policy implementation apparatus. The key constraints in this respect are analyzed below under the following headings: (a) inefficient management of resources; (b) resource constraints which have led to under-funding and skewed resource distribution; (c) structural deficiencies which have led to low and inequitable development of education, especially primary education; and (d) human resources constraints characterized by poorly trained and motivated staff. (a) Inefficient Management of Resources 30. The education system is part and parcel of the wider institutional problem; the Ministry of Education's heavy, over-centralized apparatus has demonstrated little capacity for assuming its key strategic managerial functions. First, there is no policy/strategy formulation, a weak planning and evaluation apparatus and little emphasis from the ministerial level on these tasks. There is no managerial system which allows for two-way feedback between performanceloutcomes and prior- ity objectives, or the integration of these objectives into a coherent program. Second, sector priorities are only partially translated into financial instru-  9 ments. There is no program budgeting. Budgetary preparation and expenditure control are weak, and financial responsibility is diffuse. 31. Third. the internal organization of the education system has been poor and has added to management problems. Responsibilities in the MEN and its agencies are ill-defined or placed at the wrong level, and there are inappropriate link- ages which tend to emphasize a 'top-down' approach and ignore the realities of the regions. In pedagogical research, curriculum development and teacher train- ing, there is a multiplicity of different units (most at the central level) which compete to control these areas and ignore the regional ENIs. Decentralized structures are in place but not effectively autonomous since their management, logistic capacity and resources are extremely limited. Weak internal coordina- tion, bureaucratic rigidities, excessive centralization of decisions, combined with the less than efficient structure have contributed to the sector's inability to provide sidequate and timely responses to problems. Fourth, statistics for monitoring the performance of the sector and regular evaluation of educational results are deficient and often available too late for use by decision makers. Fifth, in the absence of a coherent sector-wide strategy and an efficient service designated to deal with external aid inside the sector, donor efforts have been piecemeal and uncoordinated. Scope for managerial improvement exists through the adoption of: (i) a coherent sector strategy linked to key policy changes, (ii) a streamlined organization structure, (iii) a strengthened financial management capacity, and (iv) greater monitoring based on management information systems. Thus far, however, the sector has failed to adapt to increasing organizational pressures and adopt effective management techniques. (b) Resource Constraints 32. Under-funding and Skewed Resource Distribution: The sector is under-funded and resource distribution penalizes learning inputs and basic education. While both total public expenditure on education relative to GNP and the proportion of the Government recurrent budget allocated to education have increased, spend- ing on education has declined in real terms (see Annex 4) and financial austerity has hit the recurrent budget especially hard. The weight of the past inherited from the previous regime, the difficult financial situation and the abovemention- ed lack of policy account for sector under-funding. Analysis shows that spending on essential pedagogical inputs is considerably under minimum acceptable levels (in many cases non-existent) and the modest effort of the recent past has not been sustained. Spending on operating costs, materials, goods, and services (excluding salaries, subsidies and transfers) has increased from 122 in 1986 to an estimated 19? in 1989. However, actual expenditures on pedagogical materials are lower because the implementation of the non-salary budget has declined from 63t (1985) to 33Z (1987). 33. Allocation of recurrent expenditures between levels and types of education has marginally improved in recent years with an increasing proportion going to primary education, but the distribution of resources is still skewed in favor of potential pressure groups. Higher education, with less than 2? of all stud- ents, still absorbs close to 252 of educational resources, while resources for primary education, with 77? of all students, have gradually risen to about 34z. However, under-funding has negated the potential benefits from even this very  10 tentative movement. Despite this underfunding, the ratio of unit costs by level to that of primary unit costs are close to SSA averages with that of secondary education about three times that of primary education; that of technical and vocational ten timese that of teacher training twenty-three times; and that of higher education thirty-one times. Given the low level of primary unit costs, this indicates that underfunding occurs at all levels. 34. Investment spending is less endangered by limited national funds, being financed mainly by external sources. However, misallocation is also present in the investment program. For 1990-92, a figure of 55 billion FG (7.61 of the PIP) is programmed for the sector (as of early 1990, half of the required financing had been mobilized). The allocations by level of education reflect the priority of primary education, but closer examination of projects, indicates a skew in favor of the capital zone and other urban areas. The underfinancing of the PIP stems partly from a lack of convincing Government policy made explicit through clear priority definition and partly from weak donor coordination. 35. Domestic resource mobilization: Voluntary cost-sharing in education is taking place is some areas where Parents' Associations (APEs) are active. Encou- ragement of such initiatives is needed to spread the burden of investment and operation costs of education, passing greater responsibility to local government and communities. Scope exists to increase both APE contributions and the proport- ion of local tax receipts allocated to coummmity projects ("ristourne') with the introduction of a nationwide matching fund mechanism for school construction. However, the capacity of the active APEs to make additional contributions is limited and the introduction of fees for primary education would have a deterrent effect on the already abysmally low enrollments. Scholarships at post-primary and higher education institutions are not given directly to students but to the training institution. They are used for operation of the establishment and some student aidlwelfare functions (board, lodgings, medical care). While some scholarships have been used to provide political patronage, there is less scope for scholarship reform in Guinea when compared to other franccphone SSA countries where scholarships are direct student stipends. 36. Resource Use and Waste: The limited resources available for education are not only poorly distributed but there is substantial wastage. Large numbers of students repeat their previous grade (repetition rates average over 201 in the primary cycle) resulting not only in waste but also in a decrease in the number of places available for 'new' students entering school. To produce a primary school completer (who on average will have repeated grades at least twice) the system must dispense about sixteen years of instruction for the six-year program. Thus, while the unit costs of instruction per student at the primary level remain a low US$38lyear (with a meager US$0.20 for pedagogical inputs and the remainder for personnel costs), the poor internal efficiency shows up in wastage and high costs per graduate. The investment program shows similar deficiencies with high construction costs and variance between projects. The costs of construction are exacerbated by a lack of maintenance of existing assets, which leads to their eventual abandonment and replacement with new facilities.  11 (c) Structural deficiencies 37. Multi-grade teaching. One cause of inequitable distribution of education has been the organizational model adopted for elementary schooling. Schools are conceived and operated according to an urban model based on siX grades (homogen- eous pedagogical groups). In some rural villages where there are few children or where school facilities are limited, the school operates with a single grade. Thus, a group of children are enrolled and progress to the sixth grade, while those excluded wait for siX years (and as a consequence often do not enter). This leads to overcrowding in the initial years, and under-utilization of the teacher in the cycle's latter years because of student drop-out. The application of the urban school model in rural areas (with its fixed ratio of one pedagogical-group per teacher and disregard of the group's actual size) is inefficient and limits enrollment increases possible by an increase in the student/teacher ratio. To increase educational coverage requires a multi-grade school model where two or more grades are taught simultaneously in the same classroom. This multi-grade school model implies changes in teacher training and educational administration. At present, the number and location of schools, the training of teachers, and the organization of the classroom rarely reflect the demographic and sociological context of village life nor the needs and capabilities of rural groups. As a cause and a consequence, this phenomenon perpetuates rural underdevelopment. 38. In the past, stagnation in enrollments wau& assumed to be due to a decline in demand for schooling, but recent evidence shows this to be partially due to the limited number of places available for n,ew students. In the capital, where the growth rate is 7Z p.a., 20,000 children seeking school places could not be registered for the 1986-87 school year. This indicates the existence of a supply problem in urban and peri-urban areas. Consequently, there is scope for the use of double-shift teaching (the use of school facilities by two or more shifts of pupils during the same day) in urban areas where demand is high. 39. Because of low investment in the sector, the educational pyramid in Guinea is less distorted than in many other francophone SSA countries. Primary education has not grown rapidly, but neither have other post-primary levels, especially general secondary education. Demand is affected by perceptions of labor market possibilities and by low family income, especially in the poorest rural areas where the financial capabilities of local government authorities are weak. This indicates the existence of a demand problem in outlying areas of the country. In these instances, girls are often left out of the schooling process. Poor rural families often prefer to have children help with agrarian work during the planting and harvesting seasons, but the rigidity of the school calendar does little to accommodate this situation, with the result that absenteeism during these periods reduces the effective time for learning in school. The absence of a strategy to prepare youth for the labor market led to supply-side modifications which were timid and slow (post-secondary agrotechnological institutes were rationalized and CFP outputs have expanded). Such changes were necessary, but they have not been sufficient. More attention needs to be paid to the demand- side. Only with the establishment of a meritocratic labor market will demand- side pressures force improved quality in education. 40. Finally, the inequitable distribution of education is itself a result of Government's overly strong response to demand for services (especially post-  12 primary education) emanating from the more influential members of society and those who constitute potential pressure groups (university students and urban civil servants). This has perpetuated the skewed distribution pattern noted earlier (paragraph 34). A more equitable distribution of education can be achiev- ed through the adoption of a school model with multi-grade classes suited to rural areas, through school location techniques and through a primary classroom construction program based on low-cost community construction and rehabilitation. (d) Human resource constraints 41. While the number of education and training sector staff is sufficient, the constraint is one of staff quality and distribution. Problems of quality are largely due to: (a) poor incentives and low salaries; (b) the use by the previous regime of employment in education for political patronage; (c) the country's isolation from progress in educational techniques; and (d) the absence of staff training. While the majority of the sector's administrators have had no training as managers but were trained as teachers, the proportion of teachers who hold pedagogical diplomas at required levels remains unsatisfactory (less than 502 of primary teachers had a primary teacher's diploma in 1987; 62Z of teachers in secondary schools have been trained only as primary teachers, and merely 16Z of university professors hold doctorates). Moreover, the award of the requisite diploma does little to guarantee the real quality of the personnel as advances in science and technology render the qualifications of most teachers outmoded. 42. Staff distribution varies both by level and by geographical area (see Annex 4). At the primary level, the 1986187 average number of pupils per teacher was 39 (P/T ratio). But in the capital, where overcrowding is common, there were 67 students for each teacher (1986/87), while in other towns the figure was 41. In rural areas the PIT ratio reflects small class sizes and inefficient teacher utilization (paragraph 37) and was 31. At the secondary level, the rural/urban imbalance is less prevalent as secondary schools are situated in major urban areas. Nevertheless, the national average secondary P/T ratio in 1986/87 was low with 19 students per teacher. These relatively generous staffing ratios and the skewed distribution continue in other levels and types of education. 43. Financial constraints have severely curtailed in-service training of all educational personnel and this lack of training, together with their lack of knowledge of outside standards, has led to poorly trained and unmotivated staff who are resistant to change. Staff effectiveness is severely hampered by the lack of resources, especially at the inspectorate and classroom levels. Transport for inspectors to visit schools for regular inspection is almost non-existent and support for teachers from the pedagogical advisory services and the school inspectorate is rare. Pedagogical equipment and even basic textbooks are absent from classrooms, reducing even further the effectiveness of teachers. Personnel management systems are rudimentary and rely on patronage and out-of-date procedures, ignoring computer-based systems. As a result, there is no monitoring of staff utilizaticn and their distribution by school level or geographical zone. One consequence has been an excessive proportion of non-teaching personnel in the sector especially at secondary and higher education levels and a less-than- optimal deployment of staff to schools.  13 PART III. THE GOVERNMENT'S EDUCATION SECTOR ADJUSTMENT PROGRAM (PASE) A. Educational Development without Adiustment. 44. The prospects for the sector without any adjustment are extremely bleak. While population growth (in the capital, growth is estimated at 72 p.a.) will put increasing pressure on Government to expand the education system just in order to maintain the same proportion of the school-age population in schools, public recurrent resources are projected to decline in real terms by 6? over the period 1989-1995. At the same time, in the framework of the public administr- ation reform, a much needed salary increase for civil servants who have satisfied testing criteria is being implemented. A consequence will be reductions in goods, services, subsidies and transfers. Given the importance of salaries in the sector's recurrent expenditures (802), if the under-funding continues (with the sector receiving the same proportion of public recurrent resources), and no efficiency gains are made, there will be a negative effect on expenditures. This will lead to a drastic decline in spending on goods and services and insuffici- ent funds for salaries. Material expenditure per pupil at both primary and secondary levels is already dangerously low (US$0.20 and US$0.60 respectively) and scope for further reduction is almost non-existent, consequently the effect is most limely to be felt in enrollments. 45. The effect on enrollments (due to a fixed proportion of declining public recurrent resources, resulting in insufficient funds for salaries and subsequent staffing shortages) would most likely show through limited primary admissions and declining secondary enrollments. Enrollments at other levels might also decline or remain frozen. Without adjustment, by the year 2000 the primary gross enrclment rate could fall to as low as 172. This scenario is clearly untenable. B. The Government's sector adjustment program 46. Recognizing the gravity of the situation, the Guinean Government undertook a comprehensive diagnosis of the education and training system. The process was participatory, and was carried out, in the main, by working groups of national specialists both inside and outside the education and training system, assisted where necessary by short-term international consultants. Through the use of a workshop forum where working group interim results were presented and discussed, an overall national policy for the sector was defined, together witn a compre- hensive sector adjustment program. During the iterative process, long-term goals were compared with projected resource availability in order to ensure program sustainability. 47. The goal of the Government's adjustment program is to increase real expenditures on education within the constraints imposed by overall fiscal aust- erity while ensuring their rational use. In this context, it addresses the main constraints identified under Part II of this report. Many of these reflect per- vasive macroeconomic management constraints. Conversely, the education system's poor performance is one of the major factors holding back labor productivity and the effective transition to a free-market economy, and it also limits the effect- ive use of public resources and the returns on public investment. And it adverse- ly affects participation of the poor in the development process. For all these  14 reasons, the Government sees the proposed education sector reform as an intrinsic part of its macroeconomic adjustment program. 48. The Government's sector adjustment program was formalized in a Statement of Sector Policy, covering the period 1990-2000, which in late 1989 was approved by the Council of Hinisters and circulated to donors . Shortly afterwards a formal Letter of Sector Policy was addressed to the Bank (see Annex 5). The policy gives the highest priority to improving basic education services, especi- ally in rural areas. It emphasizes more efficient use of available financial and personnel resources and a revision of the level and distribution of budgetary resources to improve educational quality and coverage and make the system more responsive to economic needs. It also prescribes a restructuring of MEN to facilitate the achievement of these objectives. Finally, it opens the way for greater involvement of the private sector. 49. To operationalize these guidelines, Government has prepared a detailed strategy for carrying out the sector reform. It includes an action plan (Annex 6) that clearly defines objectives and establishes monitorable indicat-frs (see Section C below) and specific targets. It also defines criteria for integrating priority programs at the national, regional and sub-regional levels, and provides a definition of line functions at all levels. The priority programs aim to: (a) reduce illiteracy, by: raising the primary admissions ratio from 302 to 35Z by 1992, and to 502 by the year 2000, through expansion and internal efficiency gains; (b) improve the quality and relevance of education, by: (i) increasing the availability and improving the diffusion of pedagogical materials; (ii) pursuing and strengthening curricula reform; (iii) upgrading and increasing the number of schools, especially in rural areas; (iv) improving the quality of teachers by means of a comprehensive national program of in- service training and a reform of pre-service training; and (v) strengthen- ing the sector's linkage to the labor market and its responsiveness to the needs of the private sector; (c) promote social equity with compensatory measures to mitigate the transitional costs of adjustment on the poor throught (i) special programs aimed at disadvantaged groups such as girls; and (ii) strengthening literacy and post-literacy programs. (d) strengthen the sector's capacity for policy analysis, strategy formulation and public management and administration by setting up appropriate institutional and technical mechanisms. C. Specific measures under the Sector Adjustment Pro8ram 50. A set of eighteen policy measures, which were incorporated in the Government's Letter of Sector Policy (Annex 5), has been identified as key to the successful implementation of a first phase of the sector adjustment program. These measures, regrouped according to the main categories of constraints analyzed in Part It of this report, are discussed as follows:  15 (a) Measures to improve national policy and strategic framework: 51. Measure lt Adoption and exNloitation of a comprehensive statement of national policy for the sector. The Government has substantially completed a process addressing the lack of a comprehensive, integrated and operational focus on education at the national- level, and the consequences thereof (paragraph 28). First, it undertook a comprehensive diagnosis of sector performance. Second, it prepared and adopted a comprehensive national policy for the sector guiding both the operation of, and investment in, education and training during the immediate and mid-term future. Third, Government has published the policy statement and is using it to guide potential donor inputs and the Government's own program. Its essence is reflected in the Government's formal Letter of Sector Development Policy (already transmitted to IDA, see Anaex 5). Government has published and is using the national policy for the sector to guide sector budget allocations and donor support. 52. Measure 2: Creation of a committee to monitor the implementation of key policy changes in the sector ("Comit4 de Suivi du PASES). The Government has created, and adopted satisfactory procedures for, a panel of senior technicians to monitor implementation of the national education policy. This does not require new structures, but rather expanding and converting the inter-ministerial committee responsible for overseeing the preparation of the program into a high level inter-ministerial committee VComitd de Suivi du PASES). This committee is the instrument, at the highest technical level, for the monitoring and evaluation of the policy elements and strategic management of the program. It will meet at least four times per year, and will provide information reports on a quarterly basis to the PAS monitoring unit of the Government's economic and financial coordinating committee (CCEF) and to the Bank, and will also be the key forum for the joint annual performance review with IDA. Its responsibilities include: (a) follow-up of implementation of measures contained in the action plan (Annex 6 Part 2); (b) monitoring of the coherence between the sector adjustment operation and the Government's overall macroeconomic adjustment program; (c) adherence to the Statement of Sector Policy and the related allocation of resources; (d) preparation for, and participation in, a joint annual review of the critical indicators of policy performance, with IDA and other participating donors, and (e) commission of specific program evaluation exercises. The responsibilities do not include the implementation of the specific action programs which support such policy reforms. At negotiations, the Government transmitted legal texts, acceptable to the Association, governing the creation and the responsibilities of the *Comite de Suivi'. (b) Measures to improve general sector management: 53. Measure 3: Creation of a streamlined senior sector coordination committee VComitd de Pilotage'). To clarify the definition of roles and responsibilities, simplify the task of management and better distribute the workloads (paragraphs 31-32), the Government has reassessed the internal structure of the sector management and made both organizational and personnel changes. Thus, the ministry has been divided into two separate functional units: one responsible for university level studies (MEN), and a second responsible for all pre-university education and training (SEEPU). To coordinate all actions in the sector, and to  16 foster the integration of programs into the glo'dal policy framework, senior national directors in both MEN and SEEPU form the sector coordination committee (*Comitd de Pilotage"). The responsibilities of the committee include (a) management and coordination of sector programs; (b) supervision of the directorates and units responsible for Implementation; (c) proposal of modifications In programs to higher levels; and (d) supervision of the link between regular sector activities and the sector adjustment program. The coordinating committee is not limited to the sector adjustment program but will become the main forum for strategic decision-making and technical management of the sector. At negotiations, the Government transmitted legal texts, acceptable to the Association, governing the creation and the responsibilities of the sector coordination committee. 54. Measure 4: Internal reorganization of the MEN and SEEPU. To further address problems of poor definition of responsibilities, weak internal coordination, and dissipation of limited resources, and to concentrate staff and funds on a number of key critical functions (paragraph 32), several changes have been made in the internal structure and the responsibilities of various units. First, following the creation of the two separate functional units mentioned above, small non- viable units have been incorporated into existing directorates. Second, following Government-wide introduction of more effective budget and expenditure procedures, the two "Directions des affaires administratives et financieres' (DAAF) are receiving training and technical assistance to strengthen their capacity to prepare and implement budgets which reflecc the overall sector strategy. Third, project planning, donor coordination, and monitoring is being improved with the effective creation of a sector level *Cellule d'investissements' in the 'Direction des Statistiques et de la Planification de l'Education' (DSPE). Finally, project implementation is being enhanced with the reorganization of the "Service de Construction, Cooperation et Travaux' (SCTP) and the inclusion of a small unit to supervise the definition and application of new construction norms and standards. Prior to negotiations, the Government transmitted to IDA legal texts, acceptable to the Association, governing the reorganized internal structure of MENISEEPU. (c) Measures to improve financial resource use and resource generations 55. Measure 5: Regular monitoring of both budget allocations and actual expenditures in the education and training sector. To ensure that priorities are translated into actionable financial programs, and that both budgeting and expenditure procedures are linked to sector goals and with the overall macro- economic adjustment program (paragraph 31), the Government will institute two separate monitoring measures. First, the current system of recording sector expenditures which takes place in the Ministry of Economy and Finance ("compt- abilite administrative') will be refined and the DMAFs of MEN and SEEPU will make regular monthly comparisons of their use of public finances. Second, quarterly reports showing the comparison of actual expenditures with budgeted funds will be prepared for the Comite de Pilotage and the Comite de Suivi (and sent to IDA for information). Third, the Comite de Suivi will convene to review both budget allocations and actual expenses of recurrent and investment expenditures, with special attention on their distribution by levelitype of education and by purpose and nature (IDA will participate in this meeting). At  17 negotiations, the Government gave assurances that it wills (i) make monthly comparisons between the accounts held ty the sector DAMFs and the HEF and send copies of the quarterly budgettexpenditure comparisons, prepared for the Comite de Pilotage du PASE and the Comitd de Suivi du PASE, to IDA for its information; and (ii) undertake, together with IDA and other participating donors, annual reviews of the past budgetlexpenditure performance. 56. Measure 6: Adoption of spending norms for critical non-salary inputs at all levels of education. To address problems due to fiscal austerity and changes in the distribution of the Government's recurrent budget between salaries, goods, services, subsidies and transfers; to correct skewed expenditure patterns, limit- ations on spending on pedagogical inputs and to assist generally in budget ratio- nalization (paragraphs 33-34, and 37), the Government has decided to adopt: (a) new minimum spending norms for school pedagogical inputs and for regional and central administration operations; and (b) a program budgeting approach for the sector. Spending norms will be standardized and have been calculated to guarantee the provision of a minimum essential learning inputs. As a consequence, the application of these norms will increase non-salary operating expenditures per pupil (pedagogical materials) as follows: primary from US$0.20 to US$4.00, secondary US$0.60 to US$15.00, technical US$60 to US$86, teacher training US$120 to US$153, higher education US$380 to US$430. These increases will permit increa- sed textbooks, consumable supplies, materials, equipment and other pedagogical inputs. Non-salary operating costs/administrative staff at both the central and regional levels will be increased from US$240 and US$140, respectively to US$310. This will allow frequent school supervision and inspection. Together with such norms, the Government will define physical specifications and purchasing methods for textbooks and other pedagogical supplies wbich take into account economies of scale. At negotiations, Government and IDA discussed and agreed on spending norms for critical non-salary inputs for all levels of education. 57. Measure 7: Adoption of new construction costs norms and building techn- iques. To lower construction costs and variations construction unit costs (p&ra- graph 35), and to overcome the lack of maintenance, the Government, with help from IDA and the regional office of UNESCO at Dakar, have developed new norms and standards and a construction methodology to reduce reliance on imported materials and use low-cost community-based techniques. The Government will adopt: (a) space norms per pupil and per classroom, and (b) standardized costs of construc- tion, based on the results of this experience. In addition, Government will introduce a preventative maintenance program for primary schools (confirming the responsibility of local Government and APEs) and secondary and administrative buildings (where Central Government will play a more active role). 58. Measure 8: Creation of a matching fund to increase locally generated resources for educational investment. The existence of the APEs and the use of the local tax Oristourne to fund small investment projects at the local level, is a phenomenon that merits support (paragraph 36). The Government will therefore create and operate a mechanism to match funds allocated from regional taxes and parent contributions, with funds from the central investment budget. To address the disadvantaged position of rural communities and schools, the proportion of the central investment budget allocated to r;ALal schools will exceed that allocated for urban schools. Prior to negotiations, the Government transmitted to IDA an assessment of the new constructior costs and methodology, and at  18 negotiations the Government proposed procedures, acceptable to the Association, for the operation of the matching fund mechanism for primary school development. 59. Measure 9: Promotion of private education at all levels. Given the unmet demand for schooling, especially in urban areas, the Government proposes to remove barriers to the creation and operation of private schools. This will be done initially througat (a) facilitating access to land and building permits for private education, while excluding direct financial support for initial invest- ment in infrastructure; and (b) the preparation of a system of limited subsidies for non-salary learning materials aimed at ensuring qualitative standards. 60. Measure 10: Allocation of an increased proportion of Government finance for the operation of the education and training system. Recognizing that, even with efficiency gains resulting from the above measures, enrollment targets would not be reached, Government has decided to rationalize the sector budget and to address the sector's under-funding by increasing the sector's budget allocations. The increase required is beyond the resources immediately available to Government, hence the need for external assistance. At negotiations, the Government submitted to IDA the programming of the unallocated portion of the recurrent budget funds to the education sector. The Government also gave assurances that during the credit period, it would progressively increase the share of national resources allocated to the education sector in order to ensure adequate sector financing subsequent to the operation. *d) Measures to address underdevelopment and to increase relevance of the educational system: 61. Measure 11: Promotion of a revised primary school. The low development of primary schooling is m^inly a rural phenomenon due in part to small schools, dispersed population and schools which cover only the first few grades of education (paragraph 38). To address this, the Government is promoting a primary school model based on a wide range of adaptable operating systems (multi-grade rural schools and double-shift urban schools). Experimentation has already taken place and, on the basis of a school-mapping exercise, schools are being identi- fied and selected for the introduction of multi-grade teaching, linked to the availability of re-trained teachers. A major program of primary classroom construction and rehabilitation will be undertaken using the new construction norms and methods already mentioned. Classes located in rural areas will be operated as multi-grade units, thereby contributing to better resource utiliz- ation, increasing girls' enrollments, and redressing tha inequitable distribution of schooling3. The on-going revision and experimentation of primary school curri- cula will continue thereby making education better adapted to Guinean conditions. To better understand the barriers to the greater participation of girls and women in the education system, the Government will undertake a study on present parti- cipation levels. At negotiations the Government submitted an implementation plan, satisfactory to IDA, for primary classroom construction. 3Rec1nt studies *lsewhere in the region have shown that multigrade schooling tnc