Education sector study : Philippines (Vol. 2 of 2) : Technical chapters and annexes

Report No. 7473-PH The Philippines Education Sector Study (In Two Parts) Part Two: Technical Chapters and Annexes December 1988 Population and Human Resources Operations Unit Country Department 11 Asia Regional Office FOR OFFICIAL USE ONLY U~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Document of the World Bank This report has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Currency Equivalents $ 1 = P .21.00 e 1 $ 0.05 Fiscal Year January 1 - December 31 School Year June - March Acronyms BEE - Bureau of Elementary Education BNFE - Bureau of Nonformal Education BSE - Bureau of Secondary Education DBM - Department of Budget and Management DECS - Department of Education, Culture and Sports EDPITAF - Educational Development Projects Implementing Task Force FAAP - Federation of Accrediting Agencies of the Philippines FAPE - Fund for Assistance to Private Education FMS - Financial and Management Service HSMS - Household and School Matching Surveys IEA - International Association for fSe Evaluation of Educational Achievement IHLs - Institutions of Higher Learning NCEE - National College Entrance Examirnation NCR - National Capital Region NEDA - National Economic and Development Authority NFE - Nonformal Education NGO - Nongovernmental Organization NMYC - National Manpower and Youth Council OPS - Office of Planning Service OSY - Out-of-School Youth PRODED - Program for Decentralized Educational Development SEDP - Secondary Education Development Program SOUTELE - Survey of Outcomes of Elementary Education SUCs - State Universities and Colleges UP - University of the Philippines VTE - Vocational and Technical Education  FOR OFFICL USE ONLY PHILIPPINES EDUCATION SECTOR STUDY PART TWO: TECHNICAL CHAPTERS AND ANNEXES Table of Contents Page No. MANAGING THE EDUCATION SYSTEM . . . . . . . . . . . . . . . . . 1 A. Structure of Sector Management . . . . . . . . . . . . . . . 1 B. Processes for Sector Management . . . . . . . . . . . . . . 4 C. Issues and Reco.7endations .... . . . . . . . . . . . . . 13 List of Text Tables 1.1 Interactions of Planning and Budgeting Cycles . . . . . . . 9 1.2 Planning Process . . . . . . . . . . . . . . . . . . . . . 10 1.3 Budgeting/Financing Process ... . . . . . . . . . . . . . 11 1.4 Comparison of Methods and Coefficient Used in Enrollment Projections .... . . . . . . . . 17 1.5 Comparison of Population and Enrollment Projections for 1992/1993 . . . . . . . . . . . . . . . . . . . . . . . 18 List of Figures 1.1 DECS Organization . . . . . . . . . . . . . . . . . . . . . 3 1.2 Regional Office Organization . . . . . . . . . . . . . . . 5 1.3 Division Office Organization . . . . . . . . . . . . . . . 6 1.4 Policy-Making Process in Education . . . . . . . . . . . . 7 II. ADJUSTING COST AlD FINANCING STRUCTURE . . . . . . . . . . . . . 23 A. Overview .... . . . . . . ....... . . . . . . . . . 23 B. Cost and Financing: A Statistical Profile . . . . . . . . . 23 C. Efficiency in the Allocation of Educational Resources. . . 36 D. Equity Outcomes in Education .... . . ..... . . . . . 49 E. Policy Issues in Education .... . . ...... . . . . . 54 F. Overall Conclusions .... . . . ...... . . . . . . . 59 List of Text Tables 2.1 Central Government Budget Allocations, 1980-88 . . . . . . 24 2.2 Central Government Spending, 1980-88 . . . . . . . . . . . 25 2.3 Expenditure Per Student by Source of Funds and Unit Costs in Elementary Education, 1986 . . . . . . . . . 27 2.4 Annual Teacher Compensation in Public Elementary Schools, 1983-88 . . . . . . . . . . . . . . . 28 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.  Page No. 2.5 Expenditure Per Student in Secondary Schools by Source of Funds, 1986 . . . . . . . . . . . . . . . . . . 31 2.6 Annual Teacher Compensation in Public Secondary Schools, 1983-88 .... . . . . . . . . . . . ....... . . . 32 2.7 Ex.penditure on Higher Education by Source of Funds, 1986 . 35 2.8 Private and Social Rates of Return to Education, 1985 . . 38 2.9 Achievement Scores in Secondary Schools, Circa 1986 . . . 42 2.10 Class Size, Teaching Load and Pupil-Teacher Ratio in Secondary Schools, 1985 . . . . . . . . . . . . . . . . 44 2.11 Size Distribution of Public Secondary Schools, 1986 . . . 45 2.12 Distribution of State Universities and Colleges by Number of Campuses, 1987 . . . . . . . . . . . . . . . . . 47 2.13 Cohort Survival Rates in Elementary Education by Socioeconomic Groups, 1982 . . . . . . . . . . . . . . . . 53 2.14 Simulati"n of the Cost Savings of Consolidating Small National Secondary Schools, 1986 . . . . . . . . . . 56 2.15 The Cost Implications of Nationalization of Local Secondary Schools . . . . . . . . . . . . . . . . . . . . 57 List of Figures 2.1 Aggregate Flow of Funds in Elementary Education, 1986 . . . 26 2.2 Aggregate Flow of Funds in Secondary Education, 1986 . . 29 2.3 Aggregate Flow of Funds in Secondary School System After Policy Change, 1988 ... . . . . . . . . . . . . . . 33 2.4 Aggregate Flow of Funds in Higher Education, 1986 . . . . . 34 2.5 Relative Academic Achievement of Secondary School Students on Initial Test and the NCEE, 1987 . . . . . . . . . . . . 43 2.6 Relationship between Jnit Costs and Enrollments in National Secondary Schools, 1986 . . . . . . . . . . . . . 46 2.7 Relationship between Unit Costs and Enrollments in State Universities and Colleges, 1987 . . . . . . . 48 2.8 Distribution of Cumulative Public Spending on Education, Philippine and Developing Countries . . . . . . . . . . . . 51 2.9 Cohort Survival in Elementary, Secondary and Tertiary Education, 1986 .... . . . . . . . . . . . . . . . . . . 52 2.10 Cohort Survival Rates in Elementary Education by Father's Education, 1986 ... . ...... . . . . . . . 54 III. IMPROVING BASIC EDUCATION QUALITY . . . . . . . . . . . . . . . 61 A. Overview . . . . . . . . . . . . . . . . . . . . . . . . . . 61 B. The Outcomes of Basic Education . . . . . . . . . . . . . . 61 C. Inputs into Basic Education . . . . . . . . . . . . . . . . 64 D. School Processes . . . . . . . . . . . . . . . . . . . . . . 72 E. External Environment . . . . . . . . . . . . . . . . . . . . 74 F. Additional Recommendations ... . . . . . . . . . . . . . . 83  Page No. IV. RATIONALIZING HIGHER EDUCATION .... . . . . . . . . . . . . . 85 A. Introduction .... . . . . . . . . . . . . . . . . . . . . 85 B. Characteristics of Public and Private Sectors . . . . . . . 86 C. Public Policy Toward Private Education . . . . . . . . . . . 95 D. Efficiency Within the Public Sector . . . . . . . . . . . . 101 E. The Efficient and Equitable Use of Public Funds . . . . . . 104 F. Conclusion .... . . . . . . . . . . . . . . . . 111 V. HARMONIZING NONFORMAL EDUCATION AND TRAINING . . . . . . . . . . 113 A. Introduction .... . . . . . . . . . . . . . . . . . . . . 113 B. Nonformal Skills Training and Unemployed Out-of-School Youth . . . . . . . . . . . . . . . . . . . . 115 C. School Equivalency Programs and Nonformal Education . . . . 120 D. Nonformal Education, Poverty and Rural Life . . . . . . . . 124 E. Harmonizing Management and Resources . . . . . . . . . . . . 127 List of Text Tables 5.1 Numbr of Classes, Enrollment and Graduates by Region . 117 5.2 NumDer of Functional Literacy Classes, Enrollment and Graduates by Region .... . . . . . . . . . . . . . . . 121 ANNEX 1. COMPREHENSIVE LIST OF RECOMMENDATIONS . . . . . . . . . . . 133 ANNEX 2. NOTES .... 145 1. On the Problem of Elementary Grade Completion . . . . . 147 2. Higher Education: A Mathematical Model of the Price-Wage-Quality Relationship . . . . . . . . . . . . 159 ANNEX 3. TABLES.. .. 163 Chapter I: Managing the Education System . . . . . . . . . 165 A1.l Main Areas of Decentralization A1.2 DECS Manpower Component A1.3 Data Collection and Processing A1.4 Projections for Elementary and Secondary Enrollments, Teacher Demand, Physical Requirements and Capital Outlay  Page No. Chapter II: Adjusting Cost and Financing Struccure . . . . 179 A2.1 Enrollments by Level of Education, 1965-86 A2.2 Growth (if Overall Enrollments, 1965-86 A2.3 Enrollmetnt Ratios, 1960-86 A2.4 Enrollece Population by Age, 1986 A2.5 Enrollment Ratios by Level of Education, Philippines and World Regions, 1980 A2.6 Share of Private-Sector Enrollments, 1965-85 A2.7 An International Comparison of the Share of Private Enrollments A2.8 An International Comparison of Recurrent Public Spending on Education, Early 1980s A2.9 Distribution of Recurrent Public Spending on Education, Philippines (1980-1988) and World Regions (1980) A2.10 Sources of Differences n the Unit Operating Costs of Public and Private Elementary Schools, 1982 A2.11 Estimated Operating Costs in Public Elementary Schools, 1983-88 A2.12 Salaries of Public School Teachers, Philippines and Other World Regions A2.13 Distribution of Enrollments in Secondary Education by Type of School, 1986 A2.14 Sources of Differences in the Unit Operating Costs of Public and Private Secondary Schools, 1982 A2.15 Estimated Unit Costs in National Secondary Schools, 1983-88 A2.16 Distribution of Enrollments in Higher Education, 1985 A2.17 Aggregate National Expenditure on Recurrent Educational Costs, 1986 A2.18 Aggregate Recurrent Spending on Education, Philippines (1983-88) and Selected World Regions (Early 1980s) A2.19 Government Expenditure Per Student on Public Education, Philippines (1988) and World Regions (Circa 1980s) A2.20 Cohort Survival Rates in Elementary Education, 1980-86 A2.21 OLS Regression Results Using Divisional Cohort Survival Rates as the Dependent Variable, 1985 A2.22 Predicted Cohort Survival Rates in Elementary Education, 1985 A2.23 Cohort Survival Rates in Secondary Education, 1986 A2.24 Science Achievement in the Philippines and Other Countries, Mid-1980s A2.25 OLS Regression Estimates of Total School Expenditure in National Secondary Schools, 1986 A2.26 Average Unit Costs and Size of Enrollments in Different Types of National Schools, 1986  Page No. A2.27 Estimated Unit Costs of Higher Education in State Universities ar,d Colleges, 1987 A2.28 Distribution of Cumulative Public Spending on Education by Terminal Level of Schooling, Philippines (1986) and Major World Regions (Around 1980) A2.29 Transition Rates, 1986 A2.30 Scholarship and Student Loans, 1988 A2.31 Growth of Population and Enrollments in Elementary Education, 1965-86 A2.32 Cohort Survival Rates, Average Family Income and Life Expectancy by Region Chapter III: Improving Basic Education . . . . . . . . . . 211 A3.1 Public and Private Pre-Elementary Schools by Region, SY 1985186 A3.2 Growth of Pre-Elementary Education, SY 1981/82 to 1985/86 A3.3 Pre-Elementary Pupils and Schools by Region and Sector, SY 1986/87 A3.4 Public and Private Elementary Schools by Region, SY 1985/86 A3.5 Enrollment Trends and Projections in Public and Private Elementary and Secondary Schools, SY 1939/40 to 2000/01 A3.6 Distribution of Seconiary Schools by Region, by Sector and by Type, SY 1985/86 A3.7 Education Indicators of Selected East Asian Countries, 1960-85 A3.8 Enrollment Trends in Secondary Schools, SY 1965/66 to 1986/87 A3.9 Achievement Test Performance of Grade Five and Six Pupils by Type of School, 1986 A3.10 Grade Level Equivalent of Errolled Students Aged 11-15, by Grade Level and Sector A3.11 Grade Level Equivalent of Enrolled Students Aged 11-15, by Grade Level and Type of Community A3.12 Comparison of Mean Scores of Grade Six Pupils on 1975 and 1986 SOUTELE Tests A3.13 Trends in Pupil Achievement at the Secondary Level by Subject, 1982-85 A3.14 Cut-Off Scores in the National College Entrance Examination, 1983-87 A3.15 Trends in Pupil Performance at the Secondary Level by Region, 1983-87 A3.16 Trends in Pupil Performance at Secondary Level by School Type, 1979-86 A3.17 Survival Rates in Public and Private Schools by Level of Education, SY 1963-64 to SY 1985-86  Page No. A3.18 Enrollment Indicators in Public Elementary Schools, SY 1985-86 A3.19 Enrollment Indicators in Government Elementary Schools by Region, SY 1984-85 A3.20 Dropout Trend in Public Elementary Schools by Grade, SY 1980-81 to SY 1984-85 A3.21 Age Group 7-12 Years in Public Elementary Schools by Grade, SY 1983-84 and SY 1985-86 A3.22 Over- and Under-Age Pupils by Selected Grades in Public Elementary Schools, SY 1983-84 and 1985-86 As.23 Proportion of Sample Barangay and Vocational Technical High Schools Complying with Selected Minimum Standard Criteria A3.24 Percent of Sample High Schools Meeting and Not Meeting Enrollment Ranges A3.25 New Elementary School Curriculum, 1982 A3.26 New Secondary School Curriculum (Pilot), 1986 A3.27 Effect of Teacher Testing and Small Group Instruction on Pupil Performance A3.28 Mean Scores of Philippine Science High School, NCR, Region III, Region IX and Other Regions in Seven NCEE Subtests, 1973-83 Chapter IV: Rationalizing Higher Education . . . . . . . . 239 A4.1 Elementary Schools and Enrollments, 1903-85 A4.2 Secondary Schools and Enrollments, 1903-85 A4.3 Higher Education Institutions and Enrollments, 1903-85 A4.4 Unemployment, Underemployment and Education A4.5 Higher Educational Inst'tutions and Enrollments by School Type, 1984-85 A4.6 Enrollment Distribution by Field in Bachelor's Degree Programs A4.7 Vertical Integration A4.8 Undergraduate Size Distribution of Institutions of Higher Learning, 1984-85 A4.9 Tuition, Size and Private College Type in Manila, 1987 A4.10 Faculty and Staff A4.11 Expenditures, Tuition and Assets per Tertiary Student, 1984-85 A4.12 SES Indicators, Manila Institutions of Higher Learning, 1987 A4.13 Private Costs of Higher Education Per Student Per Semester, 1987 A4.14 Current Expenditures on Higher Education by Source, 1987 A4.15 Sources of Income in the Private Sector  PaRe No. Chapter V: Harmonizing Nonformal Education . . . . . . . . 255 A5.1 Government Agencies Involved in Nonformal Education A5.2 Directory of Training Institutions in the Philippines A5.3 Sample Profile of Nonformal Education Programs ANNEX 4. REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . 261  I. MANAGING THE EDUCATION SYSTEM 1.1 There is a new environment in the making in the Philippines, with a renewed emphasis on the work ethic and nation building, and on the primacy of education for national development. Quality education is an important prereq- uisite for the effective functioning of a democratic state, for enhancing the productivity of its citizenry, and for preparing the country for the scien- tific and technological changes of a modern society. To prepare for these changes and the future society that they will shape, long-term planning of the education sector is needed with purposeful preparation and deliberate commit- ments and allocations of the nation's resources. 1.2 The Philippines has already undergone a series of organizational changes to improve the capability of the Department of Education to lead and manage human resource development. From 1901 to 1975, the management struc- ture for the sector was highly centralized, with all major policies and deci- sions coming from the central office in Manila. A secretary at the top of the structure was assisted by Bureau directors who were both line and staff offi- cials. Outside the central office, there were over 120 school divisions headed by superintendents who reported directly to the directors. In 1969, a major study was carried out by a Presidential Commission to Survey Philippine Education. One of the key recommendations of that study was to decentralize the Department of Education in order to make decision-making more responsive to local requirements. The principal features of this reorganization were the establishment of regional offices in 1975 and the transfer of line functions from Bureau directors to the regional offices. The main areas of decentralization are shown in Annex Table Al.l. The system is, howe," er, still experiencing difficulties in institutionalizing these changes, and many of the organizational problems constraining the sector stem from the ongoing efforts to successfully decentralize education management. To explain those problems and how they might be addressed most effectively, this chapter reviews the current structure for managing the education sector, the processes for sect?7 management, and the main issues and recommendations related to these areas.- A. Structure of Sector Management 1.3 The Department of Education, Culture and Sports (DECS) is responsi- ble for formulating, implementing and coordinating policies, plans and pro- grams encompassing all levels of formal and nonformal education, both in the public and private sectors. The Department's overall objective, as set out in the Government's 1987 statement of education policy, is to pr9tFect and promote the right of all citizens to quality educaEion at all levels.-' To attain this goal, the Department has a constitutional mandate to: 1/ Management at the institutional level and specific aspects of managing basic tertiary and nonformal education are dealt with in other chapters. 2/ Section 3, Executive Order No. 117 (known as the Reorganization Act of MECS), January 30, 1987.  -2- (a) establish, maintain and support a complete, adequate and integrated system of education relevant to the needs of the people and the society; (b) establish and maintain a system of free public education at the elementary and high school levels. Without limiting the natural right of parents to rear their children, elementary education is compulsory for all school-age children; (c) establish and maintain a system of scholarship grants, studenit loan programs, subsidies and other incentives which shall be available to deserving students in both public and private schools, especially to the underprivileged; (d) encourage nonformal, informal and indigenous learning systems, as well as self-learning, independent and out-of-school study programs, particularly those that respond to community needs; and (e) provide adult citizens, the disabled and out-of-school youth with training in civic, vocational and other skills. 1.4 At present, DECS executes these responsibilities through the four main strata of its organization (Figure 1.1): (a) the Department proper; (b) the Department Services; (c) the Bureaus; and (d) the Regional Offices. (a) The Department proper consists of the Office of the Secretary wno is assisted by five undersecretaries, one in charge of each of the fol- lowing functional areas; (i) elementary and secondary education; (ii) nonformal and vocational/technical education, (iii) higher edu- cation, culture and foreign-assisted projects; (iv) administration and management; and (v) legal and legislative affairs. (b) The Department Services include the following five Offices, each headed by an assistant secretary or a service chief: (i) the Office of Planning Service (OPS) for planning, programming and project development; (ii) the Office of Financial and Management Service to provide staff advice and assistance on budgetary, financial and management improvement; (iii) the Office of Administrative Service to deal with such matters as legal assistance, records, supplies, equipment, disbursement, security and custodial work; (iv) the Office of Human Resources Development Service to administer person- nel programs, including staff training; and (v) the Office of Tech- nical Service to provide special technical staff activities and furnish information and publication services. (c) Six Bureaus, each headed by a director, are in charge of elementary education, secondary education, technical and vocational education, higher education, nonformal education, and physical education and school sports. The Bureaus are engaged in staff functions such as the formulation and evaluation of guidelines and standard designs for curricula, instructional materials, physical plant and equip- ment, and general management.  I I~~~~~~~~~~~~~~~~~~~~~ L--j ~ ~ H ~~~~I S~~~~~I + ~~~~ ~~~~~~~~~ [ij1Fh a + k < Xo~~~~~~~~~~~~~~~~~--------- lI 1' l 1!- - - i - - - - - I I  - 4 - (d) Fourteen Regional Offices, each headed by a director and each staffed with about 150 to 180 personnel, have the following main functions: (i) the formulation of regional plan proposals based on the Department's national plan, taking into account specific regional needs; and (ii) the regional implementation of the poli- cies, plans, and programs of the Department. As front-line mana- gers, the Regional Directors report directly to the Secretary. Each Regional Director is responsible for the school divisions headed by superintendents within his administrative region. In turn, the superintendents are tesponsible for the secondary schools within their divisions, as well as the elentent"ry school districts headed by supervisors. District supervisors are responsible for the ele- mentary schools within their districts. About 90% of DECS's 4,000- person work force are in the regional offices. The organization at the regional and division levels is shown in Figures 1.2 and 1.3, respectively. 1.5 With this organizational structure and its personnel contingent (Annex Table A1.2), DECS is expected to lead and manage the country's educa- tion system and achieve the sectoral goals established. The quantitative dimensions of the education system alone indicate the magnitude of DECS's task, which includes the management of 32,800 elementary schools, 5,43G secon- dary schools, and 1,160 colleges and universities. A teaching force of 284,000 elementary, 99,000 secondary and 57,000 tertiary level teachers serve an estimated total current enrollment of about 15 million. Furthermore, the system continues to expand to accommodate a greater proportion of the school age population which is increasing at about 2.5% annually. B. Processes for Sector Management 1.6 The processes for education management include: (a) the formulation of policy, setting forth broad goals and medium- and longer-term plans; (b) annual planning and budgeting ao a basis for annual work program prepara- tion; (c) program and project development and execution; and (d) monitoring and evaluation. Policy and Plan Formulation 1.7 DECS is the primary government body responsible for developing and implementing plans and programs in education in line with broad policies legislated by Congress (Figure 1b4). Coordination of plans and programs awnong departments is a function of the Inter-Agency Committee on Educatior and Manpower as the operational arm of the Yational Economic Development Authority (NEDA). The nature of policies varies from those that are broad and general, indicating the basic parameters of the system, to those that are narrow and specific, like operational guidelines or budget allocations. Education poli- cies and plans may be issued in different forms such as laws, executive orders or memoranda. 1.8 The Congress has two committees on education, one in the Senate and the other in the House. The committees have their own legislative agenda prepared by their technical staff and consultants. Their main instrument in  Figure 1.2 DEPARTMENT OF EDUCATION, CULTURE AND SPORTS Regional Office Organizational Chart Otfice of the Regional irector Elementary I Secondary Higher Non-Formal [ Education Division | Education Division Education Division Education Division Physical Education Technical & Vocational Administrative Budget and Finance Division [ Educaton Division DMsion Division Division Office TechnicaWocational Post-Secondary Schools Schools Elementary Secondary Schools Schools Regional Educational Planning Unit Learning Center cakkw42330a  Figure 1.3 DEPARTMENT OF EDUCATION, CULTURE AND SPORTS Division Office Organizntional Chart Division Superintendent Assistant Division Superintendent District | | Secondary School ] Supervisor Principal Elementary School Elementary School [ Secondary School Principal Head Teacher Assistant Principal | ---- r-F-- - Elementary School 1 Elementary School Secondary School School Teacher I Teacher | Department Head er cSOb42  Figure 1.4 THE PHILIPPINES Policy-Making Process In Education 3 LEGISLATIVE AGENDA PRESIDENTS CABINET 2 FOR EDUCATION APPROVAL * APROVAL MANPOWER PLAN C Senate Committee L Natonal Eonomic & O on Education COMMITTEE HEARINGS Development Authotity N _ (Mainly in Manila (11)G House Committee but sometimes In major NEDA Inter-Agency Committee N R on Education provincial I chaired by DECS Undersecretary E (II) E IAND PUBLIC D S * Technical Staffs CONSULTATIONS 0 Inter-Agency Stafts A S & Consultants * Public Agencies * Private Sector _ NGOs EDUCATI GENDA FOR | r Board of Higher Education 5-YR AND ANNUAL PLANS + I Technical Panels: Department of Education