Colombia - Second Education Project

L0o40 b7-co ja ~~~RESTRICTED Report No. PE-10c This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION APPRAISAL OF A SECOND EDUCATION PROJECT COLOMBIA March 25, 1970 Education Projects Department  CURRENCY EQUIVALENTS US$ 1. 00 17.25 pesos Pesos 1 = US$0. 058 Pesos 1 million = US$57, 900 MEASURES 1km = 0.62 mi 1km2 = 0.38 sq miles 1 hectare = 2.47 acres I m = 10. 76 sq ft  APPRAISAL OF AN EDUCATION PROJECT IN COLOMBIA TABLE OF CONTENTS Page Number BASIC DTA. GLOSSARY SUMMARY AND CONCLUSIONS ................................... i-ii I. INTRODUCTION .......................................... 1 First Education Project ..... ........................ 1 The Request ................................ 1 Socio-Economic Background ..... ...................... 2 The Education and Training System ............... 3 Strategy for Educational Development ............ 6 II. MANPOWER REQUIREMENTS AND EDUCATIONAL PLANNING ........ 7 Returns to Investment in Education .................. -7 Manpower Requirements ............................... 7 Education Expenditure Projection ................... . 10 III. THE PROJECT ..............................so........ , 12 General ............ . ................................. 12 Objectives and Content ................. ............ . 12 Administrative Staff .......................* .. .... 14 Teachers . ..* ....................................... 15 Cost of the Project ................................. 16 IV. IMPLEMENTATION AND DISBURSEMENT ....................... 19 V. RECOMMENDATIONS ....................................... 20 APPENDIX A. Education and Training APPENDIX B. Manpower Requirements Analysis APPENDIX C. Characteristics of Project Schools Location This report is based on the findings of an appraisal mission which visited Colombia during May-June 1969. The mission consisted of Messrs. K. M. Thint (architect), 0. Markgren (general education), A. Apodaca (FAO, agriculture education), S. Futagami (educational television, consultant), R. G. Ritchie (technical education, con- sultant) and D. K. Zschock (economist, consultant).   ANNEXES AND CHARTS 1. Enrollment by Grade and Controlling Authority, 1968, Primary and Secondary Education 2. Enrollment by Type and Controlling Authority, 1968, Secondary Education 3. Manpower Targets in Modern Employment in Colombia for 1980 4. Ministry of Education Budget, 1964-68, and Mission Projection of Expenditures to 1975 5. Output of Students from Project Schools 6. Secondary School Enrollment in Departments where Project Schools are Located, in 1968 and Projected for 1975 7. Teachers Required for Project Schools 8. Non-Teaching Personnel Required for Project Schools 9. Teacher Requirements and Training Programs for INEM Schools 10. Cost for Technical Assistance and Project Administration 11. Summary of Estimated Project Costs CHARTS 1. Education Sector Organization Chart 2. Structure of Education, 1968 3. Population Pyramid 4. Primary School Enrollment, 1955-75 5. Secondary School Enrollment, 1955-75 6. University and Other Post-Secondary Education Enrollment, 1955-75 7. School Enrollment by Grade for General Secondary, Technical and Teacher Training, in 1968 and Projected for 1975 8. Flow Chart for Secondary Education 9. Implementation - Expenditure - Disbursement MAP Location of Project Schools   COLOMBIA BASIC DATA (1968) A. GENERAL Area: 1,139,000 kj2 Total Population (1968) 20.3 million growth rate 3.3% p.a. urban population 41% in towns with over 20,000 urban population growth rate (1951-64) 7.2% p.a. rural population growth rate (1951-64) 1.8% p.a. Gross Domestic Product (1968) US$ 5.78 billion growth rate (1968) 5.8% growth rate (1964-68) 5.0% (average) per capita (1968) US$ 285 by sector (1967) Agriculture 30.5% Mining 3.5% Manufacturing 17.2% Construction 3.1% Commerce 15.8% Transportation and Communications 6.4% Public Utilities 1.1% Government 5.0% Other 17.4% Labor Force (1968 estimates) 5.8 million modern component (employed) 2.1 million traditional component (employed) 2.9 million unemployed 0.8 million B. EDUCATION Population aged 7-11 2,939,000 Population aged 12-17 2,800,000 Percent of age group 7-11 in primary school (1968) 70% Percent of age group 12-17 in secondary school (1968) 21% Literacy rate (1964) 73% Percent of GDP spent on education (1968) 4% Percent of National Budget allocated to 12.1% Ministry of Education (1968)   GLOSSARY ICCE - Instituto Colombiano de Construcciones Escolares (responsible for implementing the project, and also for construction of all government school buildings). ICETEX - Instituto Colombiano de Credito Educativo y Estudios Tecnicos en el Exterior (a semi-autonomous government agency respon- sible for operating a scholarship and credit system to assist students to com- plete studies at Colombian or foreign institutions). INEM - Institutos Nacionales de Educacion Media (Comprehensive Secondary Schools). Secondary schools which admit on a non- selective basis all pupils of a given age group of a given catchment area, and offer a curriculum that integrates practical and academic subjects. SENA - Servicio Nacional de Aprendizaje (an auto- nomous government agency operating training centers throughout the country giving specialized courses in agriculture, indus- trial skills and commercial subjects). Bachiller - Award on completion of six years of secondary school, including schools with vocational training. Ingeniero Agronomo - Agricultural engineer degree awarded after completion of five years university program. Licenciado en ensenanza - Agricultural degree awarded after completion agricola of four years university program.   COLOMBIA APPRAISAL OF AN EDUCATION PROJECT SUMMARY AND CONCLUSIONS i. Tnis report appraises the second phase of a major secondzry education reform program which includes the construction and equipment of 19 large comprehensive secondary schools. The first phase, compri- sing ten such schools, is being implemented with the help of a Bank loan of US$7.6 million. The loan was approved in July 1968 (Loan No. 552-CO). The first phase is being executed efficiently by a competent project unit, and should be completed before the closing date, Decem- ber 31, 1971. ii. The proposed project constitutes the second phase of the above- mentioned program and consists of: - constructing and equipping the remaining nine comprehensive secondary schools; - related technical assistance for a total of six man-years; and - administrative and operational costs of the project unit which is to supervise the implementation of the project. iii. This project would reinforce the introduction of the compre- hensive school concept into secondary education in Colombia and would be instrumental in furthering the government's policy to prepare stu- dents both for the labor market and for further studies. The project schools would have a curriculum that would integrate practical and ac- ademic subjects into a properly balanced general education which would increase the range of possibilities for future training and employment. Furthermore, the proposed project would accelerate the much needed shift in enrollment in secondary education from the academic branch to- wards industrial and agricultural branches to meet Colombia's manpower targets. iv. The nine project schools would provide 15,500 student places which would be used on a shift system to accommodate an enrollment of 31,000. The large enrollment at each school would allow efficient use of facilities and staff. v. Ongoing and planned training programs for administrative, counselling and teaching staff would meet the needs of the project.  - ii - vi. The administrative unit within the Instituto Colombiano de Construcciones Escolares (ICCE) which is handling the first project would be responsible for the over-all supervision of this project also. Consultant architects would be employed to design the schools and to supervise construction. Contracts for civil works and procure- ment of furniture and equipment would be awarded on the basis of in- ternational competitive bidding. Except for the equipment component, the project, however, is unlikely to attract foreign bidders. vii. The proposed loan of US$6.5 million equivalent, corresponding to 50% of the estimated total project cost, would finance the total foreign exchange costs of about US$5.9 million (91% of the loan) and about us$o.6 million of local costs (9% of the loan). viii. The remainder of the capital funds required fo, the project and recurrent costs of operating the facilities would be provided by the gov- ernment and are within its financial capabilities. ix. The project is suitable for a Bank loan of uS$6.5 million equiva- lent, 50% of the estimated tota1 project cost, for a period of 30 years including a grace period of 10 years. The funds would be disbursed over a three -year period; construction should be completed in about 2-1/4 years.  I. INTRODUCTION First Education Project 1.01 In the period 1963-66, Unesco and USAID had identified the need to modernize and change secondary education into a comprehensive system, and subsequently assisted the government in the elaboration of a major secondary education reform program and a related project consisting of the construction and equipment of 19 large comprehensive secondary schools. in July 1968, the Bank approved a loan of US$7.6 million (representing 50% of the estimated total project cost) to help finance the first phase of this program which comprised ten of these schools (Loan No. 552-C0). The remaining nine schools were deferred for a second phase in order to have sufficient numbers of teachers trained in time to teach the new curriculum, and to reduce the project to a more manageable size. 1.02 The execution of the first project is proceeding efficiently. Construction of the ten schools has started, and the project should be completed before the closing date, December 31, 1971. Initial shortcomings in project implementation have been overcome; training programs for staff for the project schools are underway and development of the new curriculum is expected to be completed on schedule. The second phase, consisting of the remaining nine schools, is now timely, and would provide continuity and efficient utilization of project unit staff and of experts provided by USAID. The Request 1.03 In March, 1969, the government submitted a request for Bank fi- nancing for the second phase of the above-mentioned program comprising: (i) constructing and equipping the remaining nine comprehensive schools; (ii) establishment of a computerized data processing system for the administration of the 19 compre- hensive schools (including the ten schools in the first project); and (iii) use of a closed circuit instructional television system for the same 19 comprehensive schools. An appraisal mission consisting of Messrs. K. M. Thint (architect), 0. Markgren (general educator), A. Apodaca (FAO agriculture education), S. Futagami (educational television, consultant), R. G. Ritchie (tech- nical education, consultant), and D. K. Zschock (economist, consultant) visited Colombia in May/June 1966. During appraisal the government re- quested revision of items (ii) and (iii) above as follows:  - 2 - (a) As the Ministry of Education plans to introduce a com- puterized data processing system for the internal ad- ministration of the Ministry and later for administra- tion of schools, item (ii) was withdrawn from this project. After necessary studies, financial assistance may be requested from the Bank at a later date. (b) The government now plans to introduce instructional tele- vision into the entire secondary school system by incor- porating and augmenting the existing open circuit trans- mission system being used for primary education. The wider use of instructional television requires further studies which could not be completed in sufficient time to permit consideration of the program within this pro- ject. Item (iii) was therefore withdrawn but may be prepared for later submission to the Bank. 1.o4 In consequence, the project as appraised and now recommended for Bank financing comprises: (a) construction and equipping nine comprehen- sive schools; (b) related technical assistance; and (c) administrative and operational costs of the project unit to supervise implementation of the project. The total estimated cost is US$13.0 million and the foreign ex- change component, US$5.9 million. Socio-Economic Background 1.05 The present Colombian government which has no;. entered its fourth and final year, has carried forward the developmental objectives of the two preceding governments. In addition it has introduced new programs (e.g., in community action, health care, and rural primary education) which are designed to control the widening gap in standards of living between the mod- ern and traditional segments of Colombian society. 1.06 Colombia's population, estimated at 20.3 million in 1968, is growing at nbcut 3.3% annually; it has doubled in less thar. 30 years and could double again in less than 20 years, if the family planning programs currently under way by a number of Colombian institutions should prove in- effective. Any reduction in fertility level would not, however, affect the secondary school-age population before 1980, nor the size of the labor force before the mid-eighties. 1.OT Between 1951 and 1964, the urban population in cities with po- pulation over 20,000 increased at an average rate of 7.2% annually, four times the rate of population growth (1.8%) in smaller towns and rural areas. If this rate of urbanization continues, by 1980, 50% of Colom- bia's population will be living in cities with over 20,000 inhabitants. The planned 19 comprehensive secondary schools will be located in 18 de- partmental capitals which together accounted for 89% of the urban popu- lation in 1964.  - 3 - 1.08 The labor force, which numbered 5.1 million in the 1964 census, was estimated at 5.8 million in 1968 with the modern sector accounting for only 2.1 million. Agriculture represents about 44%, while modern ma- nufacturing industries employ only 5.4% of the labor force; almost twice as many workers are engaged in traditional artisan manufacturing whose zroductivity has remained stagnant at a low level. Employment expansion in modern economic activities is less than labor rorce growth, and urban >aemployennt ratez are between 9 to 15; and rising. Qualifications of even the modern l&bor force segment are quite low; in 1963 only about one- third of all high-level manpower had post-secondary education and only one out of four workers in the modern economny had any education or vocational training beyond primary school. iducation and TrainipE (See also Appendix A) Administration 1.09 Colomoia has a system of national, departmental, municipal and private education. The Ministry of Education formulates educational po- licy and coordinates all educational activities within the country. Re- organized with assistance from Unesco, the Ministry is implementing ad- ministrative reforms to increase its effectiveness and efficiency, such as the creation of semi-autonomous agencies to facilitate funding ar- rangements and assure continuity of development projects. An example of such an agency is the Instituto Colombiano de Construcciones Escolares (ICCE) which is responsible for planning and execution of school buildings (Caart 1). 1.10 Because salaries of key officials are not competitive with high- level positions in leading universities or private business, administrative continuity in the Ministry of Education is a problem. The government in- tends to improve the conditions of service for public officials, which should reduce the turnover. In order to assure administrative continuity in implementing the proposed project, salaries of principal officers and operational expenditures of the project unit are included within the total project cost. Structure 1.11 Primary education lasts five years. Secondary education, for which an entrance examination is required, generally consists of a four- year junior cycle (Plan basico), followed by a two-year senior cycle (Bachillerato). Primary and Junior secondary school leavers are offered vocational education of several types. Higher education is available at universities and specialized post-secondary institutions (Chart 2). Education and Training Effort 1.12 Annexes 1 and 2 and Charts 3 to 7 give basic data concerning en- rollments, distribution, flow of students and teachers. The principal el- ements are as follows:  - 4- (a) Primary Education 1968 % of Total No. of Pupil- A&e Group No. of Qualified Teacher Type Enrollment 7-11 12-16 1/ Teachers 21 Teachers Ratio Public 2,213,400 62,340 36:1 Private 520,000 _-38.290 14:1 Total 2,733,400 70 23 100,630 42,550 27:1 70,000) 3/ (39:1) l/ (b) Secondary Education 1968 % of Total No. of Pupil- Age Group No. of Qualified Teacher ype Enrollment 12-17 Teachers 2/ Teachers Ratio General 405,780 14.5 38,600 11:1 Teacher training 54,200 1.9 5,407 10:1 Technical 49,560 1.8 5,426 9:1 Commercial 69,230 2.5 7,843 9:1 Agricultural 7,930 0.3 814 10:1 Total 586,700 21.0 58,090 11,000 10:1 Public 272,790 9.8 21,490 13:1 Private 313,910 11.2 36,600 9:1 Total 586,700 21.0 58,090 11,000 10:1 (44,4oo) 3/ (13:1) 3/ 1/ Over-aged students enrolled in primary schools. 2/ Including part-time teachers. 3/ Figures in brackets are estimated equivalent full-time teachers and ratios. Source: Education census, 1968.  -5- Primary Education 1.13 Enrollment in primary education has increased by one-third since 1960; 81% of the students were enrolled in public schools in 1968. The high drop-out rates between grades 1 and 5, about 95% in rural areas and 50% in urbar, areas, are caused chiefly by most rural schools still offering only two years of education, and only 66% of urban primary schools actually offering the required five years of education. Double shifts and automatic promotion are being introduced and a recent study 1/ shows that instruction- al television has been successfully applied. Secondary Education 1.14 Secondary-level education has traditionally been divided into academic, primary teacher training and vocational options in separate schools spread over the country in small uneconomical units. Enrollment in secondary education has doubled since 1960 and represented 21% of the age group in 1968, which is still low for a country in Colombia's stage of development. Public secondary education has been unable to keep pace with the increased demand for admission, with the result that private schools now comprise about two-thirds of the entire secondary school sys- tem, in spite of their relatively high fees. At present, a high percent- age (85%) of primary school leavers is admitted into secondary schools. As primary education is expanded, the percentage will decrease especially among the lower income groups unless more public secondary education is made available. Higher Education 1.15 For 1968, 63,800 students in higher education were enrolled in 65 universities and post-secondary institutes. The uncontrolled rapid expansion of higher education has resulted in low quality education in many institutions and high drop-out rates. The government is aware of this, and a semi-autonomous agency, Instituto Colombiano para el Fomento de la Educacion Superior (ICFES), has been created for planning, coordi- nation, supervision and financing of Higher Education. The enrollment forecast of 199,000 in 1975 would aggravate the existing situation and also result in an overproduction of university graduates in a number of fields. If secondary school expansion should continue to emphasize aca- demic programs, the unfulfilled ambitions of academic secondary school leavers would inevitably generate pressures leading to still further ex- pansion of universities. Consequently, a restructuring of the secondary school system which would offer job-oriented courses and not solely uni- versity preparatory courses is urgently required. The type of comprehen- sive school financed under the first IBRD education project in Colombia 1/ New Educational Media in Action - Vol. II, Unesco: IIEP, 1967, pp. 51-75.  -6- was a first step in this direction and should be expanded further. This necessitates additional new and modern facilities since existing secon- dary schools in Colombia are not suitable for remodeling into large com- prehensive schools. Strategy for Educational Development 1.16 The Government of Colombia attaches high priority to developing its educational system, although it is uncertain whether this priority will find expression in a growing proportion of the national budget allo- cated to the Ministry of Education. Current prlorities are: to attain universal primary education by 1975, including a full five years of schooling for all rural children; to restructure secondary-level educa- tion by expanding comprehensive education facilities and thereby offering students academic and pre-vocational or vocational streams; to consolidate schools into large economic units within reach of population; and to empha- size quality improvement and growth of graduate-level training and research in universities. A five-year plan for the period 1970-74 is in preparation and will presumably include fiscal projections that were not available for this report. 1.17 The government plans to work toward its objectives in education by encouraging larger fiscal efforts at departmental and local levels of government, and by increasing the efficiency of the educational system. The government intends to decentralize financial and program management for primary and secondary education, and introduce regional integration at the university level. It also wants to improve conditions of service of teachers, rationalize and expand primary and secondary teacher train- ing, provide free textbooks and teachers' guides in primary and secondary schools, improve and expand instructional television at primary level and introduce this medium at secondary level, and provide adult education for the country's five million illiterates. While these objectives are com- mendable, their realization will be difficult within the near future.  -7- II. MANPOWER REQUIREMENTS AND THE EDUCATION SYSTEM Returns to Investment in Education 2.01 There exist recent studies 1/ which have attempted to quantify the economic benefits from investment in education in Colombia. In gen- eral, these studies, together with the following assessment of manpower requirements, support assigning high economic priority to an expansion of secondary education. Manpower Requirements (See also Appendix B) 2.02 Employment in the modern component of the economy of the Colom- bian labor force, estimated at 1.8 million in 1963 2/, probably rose to 2.1 million in 1968 and may reach 2.9 million in 1980. The occupational composition and educational profile of manpower in the modern component of the economy demonstrate one of the country's major obstacles to more rapid economic development. In 1963, 13% were professional and manage- rial personnel, 23% were clerical and sales workers, and 64% were manual workers in agriculture and industry. Among high-level manpower (profes- sionals, managers, executives and technicians), 64% had attended only secondary schools, 19% had a partial higher education, and only 17% had university degrees. Of the total vocational manpower (white collar and blue collar workers), no more than 20% had even a secondary education. Although enrollment rates in secondary and higher education have been accelerating in recent years, the educational profile of manpower in the modern component of the economy probably had not been significantly improved by 1968. 2.03 Assuming about two-thirds retention of 1963 employment in the modern sector by 1980, manpower requirements for replacement and expan- sion during 1963-1980 include 308,000 professional and managerial per- sonnel, 266,000 clerical and sales workers and 970,000 manual workers (Annex 3). Assuming further that a pro-rated proportion of these re- quirements were supplied from among available manpower resources between lJ T.P. Schultz, Returns to Education in Bogota, Colombia (RAND Corp. memorandum RM-5645-RC/7AID, September 19681. C.R.S. Dougherty, The Optimal Allocation of Investment in Education (Development Advisory Service, Harvard University, Mimeo, March 1969). 2/ Establishment surveys by ICETEX and SENA in 1963 are the only sources of recent data on characteristics of manpower employed in the modern component of the Colombian economy. For 1963 estimate and projection to 1980 of modern employment, see Tables B-2 and B-3 of Appendix B.  - 8- 1963 and 1968, the manpower requirements for 1968-1980 by educational level are compared below with the projected output from the existing sec- ondary schools and the 19 comprehensive secondary schools. Discussions with Colombian employers, educators and government officials suggest that manpower targets shown below (and explained in Appendix B) are minimal and should ideally show higher levels of educational attainment by new entrants into modern employment.  - 9 - Manpower Requirements by Educational Level and Projected Output from the Secondary School System, 1968-80 Projected Output Existing 19 INEM Manpower by Educational Level lReguirement School System Schools Nios. %Fby Nos. /0 by Nos. by level level level (i) Hi&h-level manpower (a) Secondary school graduates for profes- sionals, managers and executives (after higher education) 313,700 (28%) 527,000 (56%) 16,600 (20%) (b) Secondary school graduates as primary school teachers 56,500 ( 5%) 80,000 ( 9%) - (c) Secondary school graduates for clerical and sales workers 112,600 (10%) 10,400 ( 1%) 19,600 (24%) (d) Secondary school graduates for techni- cians in agriculture and industry 150,600 (13%) 25,600 ( 3%) 34,300 (42%) (ii) Vocational manpower (e) Fourth year secondary school leavers for white collar work 112,600 (10%) 196,800 (21%) 4,000 ( 5%) (f) Fourth year secondary school leavers for blue collar work 37_ 6o (34%) 96,000 (10% 7,_000oo ( 9) Total secondary school graduates for High-level manpower (a+b+c+d) 633,400 (56%) 643,000 (69%) 70,500 (86%) Total fourth year sec- ondary school leavers for Vocational manpower (e+f) 489,100 44e/_ 29 08 (31% 11,000 (14%) Overall Total 1,122,500 (100%) 935,800 (100%) 81,500 (100%)  - 10 - 2.04 As shown in the preceding statement, there is a clear lack of balance between the needs and projected supply for most categories. The restructuring of secondary level education with a sharp shift in enroll- ment distribution away from the academic branch and toward the industrial and agricultural branches, in both the first and second cycle, and reten- tion of a much larger proportion of students choosing vocational options into the fifth and sixth grades will be required to meet the manpower composition targets. The INEM schools would contribute significantly to the redistribution of students away from academic and toward industrial and agricultural education. They should also help in keeping a much high- er proportion of students enrolled toward their graduation, both at the first and second cycle in industrial and agricultural options. Further- more, the curriculum and physical facilities of the INEM schools are flex- ible and can be adjusted to meet specific manpower requirements. 2.05 The existing secondary education system, together with the 19 INEM schools, may be able to meet the qualitative improvements set as target for new entrants into modern employment during 1968-80, although not attaining the desired redistribution. The combined output of the secondary school system would still leave a deficit of almost 185,000 of the projected total requirements of vocational manpower with a four- year secondary education. This deficit will have to be made up through training programs by SENA (Servicio Nacional de Aprendizaje) and through on-the-job training of primary school graduates entering employment di- rectly. Nevertheless, with the government 's plan to introduce compre- hensive education into existing general secondary schools, a considerable improvement in the educational profile of manpowex can oe expected during this period, and with ongoing rationalization of primary teacher train- ing, the likely over-production of primary teachers would be curbed. Education Expenditure Projection 2.06 Total public expenditures on education, which have risen by more than 8% per year in constant prices since 1960, comprise budgets of the Ministi.- .i Education, other ministries (Health, Interior, Agriculture, Defense), state and local governments, as well as SENA and other semi- autonomous agencies, and are estimated at close to three billion pesos for 1968, of which the Ministry of Education Budget constitutes roughly 45%. Private expenditures on education are estimated at close to one billion pesos, so that total expenditures on education in Colombia re- present about 4% of GDP; while expenditures on education have been ris- ing more rapidly than GDP, this percentage is still below 5% of their GDPs that Mexico, Venezuela and Chile, for example, expend on education. If Colombia can maintain an 8% growth rate of total educational expend- itures, their proportion of GDP should reach 5% by 1975. 2.07 The Ministry of Education was unable to provide projections of recurrent expenditures because the Five-Year Plan (1970-74) has not yet been completed. By- projecting recurrent expenditures at an annual in- crease of 8% in real terms to 1975, and assuming that investment expend- itures are maintained at a higher level (i.e., 15% of the Ministry's  - .1 - budget) than in recent years) the Ministry's total budget woUld have to expand from 12.1% of the National Budget in 1968 to 13.5'% by 1972 (Annex I). This projection includes the recurrent costs of the 19 IM schools which would increase from 20 million pesos in 1970 to 120 nillion pesos in 1975 (in constant pesos) corresponding to 1.5% of total recurrent ex- penditures by the Ministry in 1970 and 6.0% in 1975. Since the Ministry1s recurrent resources are expected to rise by 8.0% a year in real terms (see Annex Qj, it should have the capacity to meet the recurrent costs of the 19 INEM schools