Togo - Educational Improvement Project

Document of The World Bank FOR OMCIAL USE ONLY Repoit NO. P-3978-TO REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT OF SDR 12.8 MILLION (US$12.4 MILLION EQUIVALENT) TO THE REPUBLIC OF TOGO FOR AN EDUCATIONAL IMPROVEMENT PROJECT March 4, 1985 This document has a resticted distribution and my be used by recipients only in the performance of Iheir official duties. Its contents may not oterwise be disclosed without World Bank authorization.  CURRENCY EOUIVALENTS Currency Unit - CFA Franc (CFAF) US$1.0 - CFAF 460 (West Africa Regional Rate for February 1985) MEASURES 1 m - 3.28 ft 1 m2 , 10.76 sq ft 1 km2 = 0.38 sq mi ABBREVIATIONS AND ACRONYMS AfDB - African Development Bank AfDF - African Development Fund CIMAO - Societe des Ciments de l'Afrique de l'Ouest DCEBS - School Construction and Maintenance Division ("Direction de la Construction et de l'Entretien des Batiments Scolaires") DEPE - Project Implementation Division ("Direction de 1'Execution des Projets Education") DGPE - Directorate General of Educational Planning ("Direction GEnerale de la Planification de 1'Education") DIFOP - Directorate of Teacher Training and Curriculum Development ("Direction de la Formation Permanente de l'Action et de la Recherche Scientifique") DPE - Educational Planning Division ("Direction de la Planification de l'Education") ENI - Primary Teachers College ("EcL-e Normale d'Instituteurs") FAC - French Aid and Cooperation Agencv ("Fonds d'Aide et de Coop6ration") LIflUSCO - Goverment's textbook agencv ("Librairie des Mutuelles Scolaires") MFSD - Ministrv of First and Second Degrees ("Ministare de l'Enseignement des Premier et Deuxieme Degres") MTFD - Ministry of Third and Fourth Degrees ("Ministere de l'Enseignement des Troisieme et Quatrieme Degres") OPAT - Agricultural Marketing Board RNET - Regie Nationale des Eaux du Togo USAID - United States Agency for International Development FISCAL YEAR January 1 - December 31 SCHOOL YEAR October 1 - June 30  FOR OFFICIAL USE ONLY CREDIT AND PROJECT SUMMARY Borrower: Republic of Togo Beneficiary: Ministry of National Education Credit Amount: SDR 12.8 million (US$12.4 million equivalent) Terms: Standard IDA terms Project Description: The major objectives of the project are to: 1) Improve the quality of education in primary and lower secondary schools through these measures: (a) for primary school improvement, upgrading the skills of 5,850 primary teachers by providing an integrated program consisting of correspondence courses, seminars at inspectorates, three-month upgrading courses at Primary Teachers Colleges (ENIs), on-the-job support to teachers by inspectors and advisers (60 in total) who would be provided refresher training; and providing low-cost textbooks to students. (b) for lower secondary school improvement, through (i) an integrated program upgrading the skills of about 1,250 math and science teachers at annual seminars; on-the-job support to teachers by the 21 inspectors who would be provided refresher training; and preparation and distribution of teacher guides; (ii) improved science facilities by rehabilitation of 12 existing, and construction of 12 new, laboratories and workshops for teacher training and prototypes of simple math and science equipment; conversion of 262 classrooms in 234 lower secondary schools into science rooms; and basic instructional materials and science equipment. 2) Improve the management of education through assistance to: (a) the Educational Planning Division for improved planning and allocation of financial, physical and teaching resources in the education sector; (b) the School Construction and Maintenance Division to develop a capability for school rehabilitation and for preventive maintenance by rural communities and teachers; and (c) the Project Implementation Division to strengthen project preparation and implementation. This document is a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed- without World Bank authorization.  - ii - Summary Project Cost Estimate (US$ '000) Categories (costs net of taxes and duties): Local Foreign Total ----(US$ '000)-- Civil Works 653.2 411.6 1,064.8 Furniture 140.2 82.3 222.5 Equipment 75.4 2,150.0 2,225.4 Consultant Services 92.0 1,150.5 1,242.5 Training Costs 2,193.2 473.5 2,666.7 Salaries of Project Staff 293.7 293.7 Contractual Fees for Substitute Teachers 2,799.8 -- 2,799.8 Other Operating Costs 539.0 808.6 1,347.6 Tot.- 1 Base Cost 6,786.5 5,076.5 11,863.0 Physical Contingencies 86.9 264.4 351.3 Price Contingencies 1,082.7 711.8 1,794.5 Total Project Cost 7,956.1 6,052.7 14,008.8 Rounded 7,950.0 6aQ50.0 14 000.0 Financing Plan: Local Foreign Total -_---(US$ '000)- Organization IDA 6,350 6,050 12,400 Government 1,600 -- 1.600 Total 7-950 -050 14,002 Estimated Disbursement: IDA Fiscal Year 1986 1987 1988 1989 1990 1991 -----(US$ Million) )--- Term Annual 0.7 0.8 1.6 2.9 3.8 2.6 Cumulative 0.7 1.5 3.1 6.0 9.8 12.4 Economic Rate of Return: Not applicable.  - iii - Benefits and Risks: The main benefit of the proposed project would be to improve educational quality and strengthen the efficiency of sectoral management. In the short-term, the professional skills of all primary teachers and of lower secondary math and science teachers would be upgraded, and facilities would be improved to provide a better learning environment. In the long-term, through institutional development and policy dialogue, the project would provide the sector wit& the capacity to carry out integrated sectoral planning, optimize the use of physical and teaching resources, establish a system of school maintenance by local communities, and plan and implement investment programs. The project faces three major risks. The first concerns the Government's financial constraints. To address this problem, the project has been designed to minimize recurrent costs and to ensure the gradual entry of substitute teachers into the Government's budgetary allocations by phasing the Government's contribution to incremental recurrent costs in annual increments of 20Z. The second risk concerns the ability of the Government to implement the project in a timely manner. To minimize this risk, the project includes elements to strengthen the organizational units responsible for educational planning, administration and project implementation-a process of institution building begun under the First Education Project. The third risk is that the quality improvement objectives of the project may be endangered if students are unable to purchase textbooks because of shortage or excessive prices. To minimize this risk, the project includes a component aiming at increasing the availability of textbooks at reduced cost. Staff Appraisal Report: No. 5293-TO Map: IBRD 18680  INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESTDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT FOR AN EDUCATIONAL IMPROVEMENT PROJECT 1. I submit the following report and recommendation on a proposed Development Credit to the Republic of Togo for SDR 12.5 million (US$12.4 million equivalent), to help finance an Educational Improvement Project. The Credit would be made on standard IDA terms. PART I - THE ECONOMY 2. An economic report entitled "Togo: Country Economic Memorandum" (3416-TO) was distributed to the Executive Directors in January 1982. Its assessment of the country's economic prospects, updated by recent Bank missions, is reflected in the following paragraphs. Annex I provides basic country data. Introduction 3. Togo is a small country (56,000 km2) -ith a population of about 2.8 million and a per capita GNP of US$340 (1982). Phosphate mining accounted for more than 40 percent of exports in recent years, and contributed to about 17 percent of Government revenues. Likevise, the three main agricultural export crops (coffee, cocoa and cotton) represented 25 percent of exports and about 10 percent of Government revenues. Political stability has prevailed since 1967. when General Eyadema became President after a military coup. The Government has gradually become civilian. Togo's external policy favors regional and international cooperation. Recent Economic Developments 4. Until 1974, the Government of Togo pursued cautious economic and financial policies and succeeded in achieving rapid economic growth, with an average annual growth rate of 7% in real terms, while maintaining internal and external financial equilibria. This economic growth was based on a significant change in the structure of the economy, with the share of mining and trade increasing rapidly while agriculture declined. The expansion of retail trade activities stemmed from the role of Togo as regional trading center for Nigeria, Ghana, Burkina Faso and Niger. The growth of the mining sector was the result of increased phosphate rock production which reached 2.6 million tons in 1974. In agriculture, Togo largely achieved food self-sufficiency, except in years of severe drought. Concerning export crops, cotton production has grown significantlv, even during drought years; but production of other export crops (cocoa and coffee) stagnated in the early seventies due to insufficient incentives for farmers and poorly conceived-investment projects in the sector. Despite chis rapid economic growth, consumption and investment were kept under control. The economy became more and more export-oriented, mainly due to the significant  development of phosphate rock exports. The balance of payments was in equilibrium while the public finance deficit remained modest and was financed on a sustainable basis. 5. In 1975, Government revenues doubled as a result of a fourfold increase in phosphate prices. The Government embarked on an ambitious public investment program and undertook expansionary fiscal and monetary policies. A number of state enterprises were created, and new investments were implemented in the social sector, infrastructure, luxury hotel construction, public buildings and industry, many of which proved unprofitable. Most investments were financed by foreign borrowings, in part on commercial terms. Economic growth was initially sustained by the investment program. However, by the end of the 1970s and the beginning of the 1980s, the economy started to slow down and then declined, resulting in serious imbalances in public finance and the balance of payments. The gross domestic product (GDP) declined by 3.9% in 1981 and by 2.3% in 1982. As early as 1978, the Government began to accumulate payment arrears to external creditors as well as to its local suppliers. By 1979, the overall fiscal deficit had reached 14.3% of GDP and the balance of payments current account deficit 23.1% of GDP. Under two IMF-supported financial stabilization programs, Togo negotiated external debt reschedulings in 1979 and 1981; the Government began to reduce its investments and to limit the growth of its expenditures. Consequently, the fiscal deficit and the current account deficit were reduced significantly in 1982 to 6.92 of GDP and 11.2% of GDP respectively. Nevertheless, external debt service continued to increase as well as domestic and external arrears. 6. Faced with a worsening economic and financial situation, the Government recognized the need for a more comprehensive recovery policy. In 1983 and 1984, it adopted additional more stringent financial stabilization programs in conjunction with an IMF stand-by arrangement and a first structural adjustment program supported by a US$40 million IDA credit in May 1983. Structural Adjustment 7. The main elements of the structural adjustment program included: (a) rehabilitation of viable state enterprises and closure and/or liquidation of non-viable entities; (b) greater emphasis on rural development, through the appropriate price and marketing policies for both traditional exports and foodcrops; (c) promotion of the mining industry through diversification and increased value-added; (d) encouragement of private investment in small and medium-scale enterprises; (e) development of energy resources; and (f) improvements in macroeconomic management, notably investment programming. 8. Togo has made good progress in implementing the first structural adjustment program. The second tranche of the IDA SAC credit was released on July 9, 1984; about US$39 million has been disbursed to date, and the balance is expected to be disbursed soon. Togo also made good progres:, in achieving the objectives of the financial stabilization programs supported by the International Monetary Fund's stand-by arrangements in 1983. 9. Our general assessment of the macroeconomic policies in Togo is that significant improvement has taken place since the end of 1982. However, deficiencies remain in national economic management and the reforms in  policies and public sector institutions initiated under SAC I need to be completed. With regard to the exchange rate, Togo's currency, the CFA franc, has depreciated substantially since 1981, in line with the French franc to which it is pegged. The nominal exchange rate against the US dollar was depreciated by 17.8 percent per year between 1980 and 1983 and the real exchange rate by 13.3 percent. Therefore, the exchange rate is probably not seriously overvalued. Nevertheless, distortions still exist between the prices of tradable and non-tradable goods and between the urban and rural sectors. In particular, the system of industrial incentives does not encourage exports and further substantial rises in agricultural producer prices will be required to unlock productive potentital in the rural sector. The Central Bank has maintained positive real interest rates since 1980, and Togo has succeeded in retaining large foreign deposits in its banking system. unlike other countries in the region. Price controls are limited to fixing profit margins for a small number of basic products. Utility tariffs are periodically adjusted in relation to costs and there are no subsidies on fuel, electricity and water. Lastly, the Government is improving public investment programming, the public enterprise sector management and its fiscal policy. As a result of these macroeconomic policies, resource allocation is being improved and the external current account deficit and budget deficit have been significantly reduced. Current Economic Situation and Prospects 10. Despite significant non-project external assistance, Togo's economic and financial situation and prospects remain precarious. In 1983. the combined adverse effects of the drought, the reduction in regional trade, and the worldwide recession, caused the GDP to fall by 8% in real terms. In 1984, there are encouraging signs that economic performance will be better in certain sectors. For example, owing to favorable weather, food crop and cotton output has risen. In addition, phosphate rock production and export have increased. However, economic growth is still hampered by the closure of the Nigerian borders and the suspension of production by the multinational cement clinker plant, CIMAO. Overall, the real GDP increase in 1984 has been less than 2% and growth prospects over the medium-term will remain modest while external debt service will continue to be high. In the depressed economic conditions of 1983 and 1984, the share of consumption in GDP declined as well as the investment ratio. As a result, the resource gap/GDP ratio has decreased in 1983 and 1984 and the current account deficit decreased from 11.2% of GDP in 1982 to 10.4% in 1983 and 9.6% in 1984. Regarding the capital account and the overall balance of payments, large inflows of short-term capital from neighboring countries together with accelerated SAC I disbursements and the Paris Club debt reschedulings more than offset the current account deficit, leading to a CFAF 24 billion overall surplus of the balance of payments in 1983. The overall balance of payments in 1984 is foreseen to have been in equilibrium. 11. Over the medium-term, balance of payments projections indicate a deterioration in the current account deficit. The projections depend on the world market prices of phosphate and agricultural products, and on the implementation of the possible phosphoric acid plant. Along with the deterioration of the current account, the projections of the capital account  -4- show a decrease of capital inflows due mainly to the foreseen reduction of short-term capital from neighboring countries. Moreover, government revenues will continue to be insufficient to cover debt service, current expenditures and a minimum level of public investment. Therefore, the need for external financing of the balance of payments remains strong over the next few years, in the form of both non-project aid and debt rescheduling. With the 1984 reschedulings, debt service accounted for 33% of exports receipts and 35% of Government revenues. By the end of 1990, debt service is projected to be 36Z of export receipts. Although further progress is expected in reducing the public sector deficit in 1985, the need for project and non-project financing remains high. 12. Based on this assessment, the Bank is preparing a second structural adjustment program. The program aims at consolidating and expanding in significant ways the progress achieved under SAC I with regard to Government finance, the public sector investment program, agriculture, public enterprise rehabilitation, and small- and medium-scale enterprise promotion. It also calls for a reorganization of the public administration in key economic departments. Under the auspices of the UNDP, the Government plans to hold a Donors' Round Table in June 1985 to mobilize both project and non-project assistance to Togo's development. PART II - BANK GROUP OPERATIONS IN TOGO 13. Bank Group lending to Togo totals fifteen credits amounting to US$209.73 million of which 99.6 million is undisbursed, and two loans totalling $53.0 million. IDA lending has financed roads; agriculture (cocoa, coffee, cotton and food crops); education; technical assistance to the Ministries of Plan and Rural Development and State Enterprises; a regional DFC operation; and credits for the feasibility studies for a phosphate fertilizer project and for the Nangbeto regional hydroelectric pover project and a further credit for the development of Nangbeto. The two Bank loans (US$3.5 million to Togo and US$49.5 million to CIMAO jointly and severally guaranteed by Ghana, Ivory Coast, and Togo) have provided financing for the CIMAO regional clinker plant. Annex II contains a summary statement of Bank Group operations in Togo as of September 30, 1984. 14. In the past, project lending has dealt with development needs and policy issues in specific sectors. However, following the deterioration of the overall economic situation of the past few years, sector specific actions are no longer sufficient. A more comprehensive approacn supported by policy-based lending such as that envisaged under the ongoing structural adjustment program is required. Moreover, in a small country like Togo, where it is not possible to be involved in all sectors, structural adjustment lending provides an opportunity to support development in a broad range of sectors. In those sectors where the Association is already involved, not only has project lending been consistent with the goals of the structural adjustment program, but in addition, components of several recent projects have been designed to prepare for and support the adjustment program.  15. The first and second Technical Assistance Projects have been helping the Government to formulate sound investment and macroeconomic policies. Through these projects, the Association initiated a close policy dialogue which has been essential for the preparation of the structural adjustment program. Consultant studies of several state enterprises have been financed in order to determine their potential viability, and in the case of those which are, to identify measures necessary to improve their performance. A capacity to conduct project appraisals and to monitor the performance of ongoing development projects has been established in the Planning Ministry. A planning unit has been established in the Rural Development Ministry to analyze agricultural prcject proposals. Under its auspices, a review of all rural development projects has been conducted in order to provide the basis for the formulation of a rural development strategy. In addition, a price analysis and monitoring unit located in the agricultural marketing board, OPAT, and a research coordinating unit have been created. 16. IDA has made five credits for agricultural projects designed to stimulate food crop production and to increase farm incomes through development of major cash crops such as cocoa, coffee and cotton. Under the latest such credit for the Second Rural Development Project in cotton areas, subsidies will be phased out and producer prices will be reviewed annually. Since this project covers most of the country, these measures provide a good basis for a more comprehensive review of price and subsidy policies. 17. A water supply project approved in FY83 would improve water supply in Lome and help carry out future project preparation and other studies. The water and sewerage agency (RIET), an important and economically viable state enterprise will be strengthened as a result of the project. The four credits in the road sector have supported efforts to build up an efficient maintenance service, upgrade the country's main roads, and to start comprehensive transport planning and coordination, including an ongoing study of how to streamline and improve the operations of the government-owned railway company. A separate project for feeder road development provides for improvement works and rural maintenance operations. The First Education Project has financed the construction of teacher training facilities and expansion of existing facilities, and fellowships. 18. Togo's performance with respect to project implementation and disbursement is generally satisfactory. The Government is now familiar with the Bank's procurement and disbursement procedures. Delays are sometimes encountered however, because of the cumbersome administrative regulations in Togolese public contract award. The Government has been sensitized to this problem and is working with the Bank to find appropriate means to simplify the procedures. There have been a few cases of project delays caused by shortages of counterpart funds.  - 6 - PART III - THE EDUCATION AND TRAININC SECTOR Overview 19. Togo, with net first and second degree enrollment ratios of 63Z and 43%, is one of the few West African countries where universal access to a 10-year basic education cycle could be achieved by the end of the century if the past decade's trend in the growth of annual enrollments continues. Rapid expansion has resulted partly from the exceptionally strong public demand for education (education is seen as a passport to civil service and other employment), and partly from the Government's control of educational costs at the primary and lower secondary levels. However, in contrast to the growth e:.perienced in the 1970s, the gross enrollment ratio in the 5-14 age group (first degree), declined from 72% in 1980-81 to 66% in 1982-83. The reasons for this decline are not clear. There is some reason to believe that the freeze on civil service hiring is partly responsible by creating doubt in the minds of parents that schooling guarantees a modern sector job for their children. Further, underfunding by the Government of the first and second degrees has caused the quality of schooling to deteriorate. Without remedial measures, which the Government is finding difficult to take in tF-e light of its economic and financial problems, enrollments and the cost-efriciency of the system will deteriorate further. 20. In structure and organization, Togo's education system is similar to that of other French-speaking West African countries. A primary cycle of six years (first degree) is followed by a four-year lower secondary cycle (second degree) and a three-year upper secondary cycle (third degree) from which students graduate with a baccalaureate. Togo's university (fourth degree) was established in 1974. Technical education is offered at five second degree institutions and two third degree lycees. The latter award a technical baccalaureate. Qualified teachers are trained in Togo for the first, second and third degrees, and abroad for the university. 21. Until recently, the general education system was administered by the Ministry of First and Second Degrees (MFSD) and the Ministry of Third and Fourth Degrees (MTFD). The MTFD, in addition to third and fourth degree schooling, was responsible for all essential first and second degree support functions (e.g., teacher training, curriculum development, planning), leaving the MFSD responsible mainly for the delivery of education through its decentralized system of inspectorates. During project preparation, the Government and IDA discussed the administrative inefficiency caused by the MTFD having jurisdiction over planning, statistics, school mapping and construction (in the Directorate General of Educational Planning, "Direction Generale de la Planification de l'Education" - DGPE) and curriculum development and teacher training (in the Directorate of Teacher Training and Curriculum Development, "Direction de la Formation Permanente de l'Action et de la Recherche Scientifique" - DIFOP) for the first and second degrees. Aware of the need to improve the efficiency of educational management, on September 13, 1984, the Government combined the two ministries into a single Ministry of National Education. Agricultural education is the responsibility of the Ministrv of Agriculture. Responsibility for vocational and technical education, as a result of the recent ministerial reorganization, has been  moved from the former MTFD to a new Ministry of Technical Education and Vocational Training in order to establish a more effective relationship with employers and to emphasize employment-oriented training. Quality of Education 22. The quality of education at the primary and lover secondary levels is low, as evidenced by high repetition, dropout and failure rates. In the first degree, 15% of a cohort starting the school year in 1981-82 dropped out prior to reaching Grade 2 and only 44% of the same cohort reached Grade 6. During the 1982-83 school year, 42% of the students enrolied in Grade 6 were repeaters, and only 47% of the children passed the examination for entry to lower secondary school. Finally, only 12% of the students who completed the second degree entered the third degree. 23. Several factors are adversely affecting the quality of education at the primary and lower secondary levels, the most striking being the extremely low percentage of qualified teachers at both these levels. Only 10% of the first degree teaching staff and 24% of the second degree teachers have been professionnally trained. Within the latter, only 16% of the math and science teachers have professional qualifications. The overall quality of math and science teaching also suffers from the fact that the better students are attracted to the private sector because of higher salaries than in the teaching profession. Secondly, student working conditions are very poor. Teaching and learning equipment and materials are scarce. Textbooks, most of which are bought by parents, are expensive. At the primary level, 20 students frequently share one book. Thirdly, the curricula at both levels are too abstract and divorced from the students'environment. In math and science, which are the weakest subjects taught at the second degree, theory is overemphasized at the expense of practical application; moreover, teaching materials for these two subjects are nonexistent. Finally, the physical facilities are not conducive to efficient learning. Thirty-six percent of the primary classrooms are temporary shelters; the remainder, built mainly by rural communities, have deteriorated badly due to lack of maintenance. In 1982 the maintenance budget for all school buildings (except the university) was about US$48,000, which translates to about US$4 per classroom. 24. As the low quality of education is partly responsible for the current decrease in enrollments at the primary level (para 19) and for the low academic standards in math and science at the lower secondary level, action is needed to address the most deficient factors - namely, teacher qualifications, math and science teaching, and student working conditions, including scarcity of textbooks. Management of Education 25. The management of the sector suffers from inefficiencies in (a) budgeting and financing, (b) use of the existing capacity, and (c) administration.  -8- 26. Budgetary allocations and financing constraints. There are four major issues related to the costs and financing of education. First, education expenditures are skewed in favor of the third and fourth degrees. Per-student costs at the upper secondary and university levels are high US$445 (117% of GNP per capita) and US$3,195 (841% of GNP per capita) respectively in 1983 (compared to 182 and 1192 of GNP per capita for secondary and highc. education in South Asian countries). This is due to a generous fellowship policy (about 16% of total education expenditures was for fellowships during the 1982-83 school year) and relatively high salaries for upper secondary and university teachers. Second, donor assistance is unevenly distributed. While parental contributions are spread equally among all levels of education, the major part of external assistance finances the third and fourth degrees (primarily fellowships and expatriate teacher salaries). Third, costs at the primary level, now low, are likely to increase. Until now, the Government has been able to keep the per-student costs at the primary level the lowest in the region: US$28 (7% of GNP per capita as compared to 29% cf GNP per capita in other francophone African countries) during the 1982-83 school year. This is because the average salary of primary school teachers is only about twice the GNP per capita and teacher/student ratios are on the high end of the acceptable range (1:47). This low cost, however, is likely to increase because: (a) in 1982, the Government raised the minimum entry-level requirements into the teaching profession and therefore the salaries of teachers; and (b) since the 1980-81 academic year, enarollments at all levels began to decrease. Fourth, as a result of the Government's austerity program, the education budget has been declining .in real terms since 1983. These factors make it important that the Government review the financing of the education system and develop a more equitable and efficient allocation of resources within the sector. 27. Capacity utilization. Due to inadequate monitoring of the educatior system and inadequate planning and coordination among the different departments, existing physical and teaching resources are used inefficiently. Despite the regulation limiting each pupil to one repetition during the primary education cycle, approximately 15 years of schooling must be provided to produce one primary school graduate. In 1982-83, 26% of primary students and 62% of lower secondary students were over-age. More efficient use of teaching time is needed at both urban and rural schools. In rural areas, student/teacher ratios are low; expansion of multi-grade teaching would reduce costs substantially. In contrast, overcrowding in urban schools would better be addressed through use of the double-shift system (in 1982-83, the teacher/pupil ratio in Lomg was 1:55, as opposed to the national average of 1:47). Finally, for efficiency of learning/teaching, improvement of physical facilities is necessary so that loss of teaching hours under inclement weather conditions can be minimized. An improved sector planning capability would permit the Government to make better use of existing capacity. 28. Efficiency of administration. During implementation of the First Education Project, a major source of administrative inefficiency was the lack  -9- of communication and coordination between the two ministries of education. Following the recent merger of these two ministries (para 21), it is expected that the decision-making process will be faster, and coordination between the operating and support departments will improve. The second source of inefficiency concerns two of the sector service institutions, curricula development/teacher training (DIFOP) and planning (DGPE). The strengthening of the DIFOP is key to long-term inmprovement in the quality of the teaching/learning process (paras 22-24). The reorganization and the strengthening of the DGPE is key to t;i(. preparation of educational development strategies and financing plans appropriate to sectoral and manpower needs and curren_ budgetary constraints (paras 25-27). Government Strategy for Educational Development 29. The Government's strategy for the sector is set forth in the 1975 Education Reform. The Reform emphasizes, inter alia, the need to: (a) create an equitable education system that will provide adult training opportunities and universal lower secondary education; (b) improve the quality of education through teacher training and upgrading, and through adoption of improved curricula, particularly for mathematics and science; tc) improve the match between the outputs of the education system and the country's manpower requirements; and (d) improve educational planning. Despite current economic and financial constraints, the Government has taken three steps to implement these policies. First, it has made progress towards implementing a mandatory 10-year basic education cycle. This effort, however, has been slowed by the Government's precarious financial position. Second, the quality of education at the pr--ary and lower secondary levels is being improved through the development of new curricula, inclurci