Madagascar - Education Sector Reinforcement Project

Document of The World Bank FOR OFFICIAL USE ONLY C e Zo s Y Aofc* Report No. 8026-MAG STAFF APPRAISAL REPORT DEMOCRATIC REPUBLIC OF MADAGASCAR EDUCATION SECTOR REINFORCEMENT PROJECT JANUARY 11, 1990 Population and Human Resources Division South Cetitra:. and Indian Ocean Department Africa Region ibs docment has a resticted ditbuion ad may be used by redpients only It the perfonmance of thir oUcfil dutes Its cotents may not othewse be disclosed without Wodd ak autoraetonw  CURRENCY EQUIVALENT (August 1989) Currency Unit Malagasy franc US$ 1.00 FM 1607 FM 1000 - US$ 0.622 SDR 1 = FM 2035 FM 1000 G SDR 0.491 SDR 1 = US$ 1.27 MEASURES Metric System DEMOCRATIC REPUBLIC OF MADAGASCAR FISCAL YEAR 1 January - 31 December ACADEMIC YEAR October - June GLOSSARY OF ABBREVIATIONS AfDB African Development Bank BPE Education Project Office CCAP Committee to Coordinate Pedagogical Activities CCPE Education Projects Coordinating Committee CIRESEB Local education administration CPIE Inter-school education committees CRESED Education Sector Reinforcement Credit (Credit pour le Renforcement du Secteur de l'Education) DEPESEB Regional education administration DPOE Department of Planning and Education Programming EN1 Teacher training college for primary teachers EN2 Teacher training college for lower secondary teachers EN3 Teacher training college for upper secondary teachers IST Higher Technological Institute Level I Primary level ',evel II Lower secondary level Level III Upper secondary level Level IV Higher Education and University level MINESEB Ministry of Basic and Secondary Education MINESUP 'Aistry of Higher Education OPEC Organization of Petroleum Exporting Countries OPPS Book distribution service (Service des Ocuvres Peri- et Para- Scolaires) PEP, PIP Public Expenditure (Investment) Program PSAC Public Sector Adjustment Credit SN National Service UERP Pedagogical Unit (Unit; d'Etude et de Recherche Pedagogiques) UNDP United Nations Development Program  F AL_ (i) STAFF APPRAISAL REPORT DEMOCRATIC REPUBLIC OF MADAGASCAR EDUCATION SLCTOR REINFORCEMENT PROJECT TABLE OF CONTENTS Page No. I. INTRODUCTION . .. .... . *....... *,***.... 1 It. THE EDUCATION AND TRAININCD SECTOR .............. 2 A. Overview.. .. I............ . ...... 2 Organization and Administration . .... 2 Education Financing and Costs ................. 2 - ~~Enrollment ..................... 3 Education of Women 4. . . ... 4 Teacher Training .. . ....... .. 4 Private Education . ............. . . . . 5 B. Educational Reform .S .. .. .. . ... 5 C. Major Sectoral Issues .............. 6 Weak Administration and Management ................ 6 Education Planning and Statistics ..... 6 Internal Efficiency .... . ...... ...... . ..7 External Efficiency ... * .................... 7 Quality of Education ........... . ............ 8 Education Costs............. ........ . .... 8 Education Financing ................. 9 D. Sectoral Adiustment Stratesy and Policy Dialogue 10 Government Strategy ...... ........ . 10 P.olicy Dialogue ....... .... .......... 11 '7A Strategy .... .. * ..... .... .... . 11 Public Expenditure Program ..*..12 E. Bank Group E;Merience with Past Lending . .12 III..THE PROJECT ............................................ 13 A. Prolect Obiectives and Sector Policies .............. 13 Objectives ............... ....... ................ .o Sectoral AdjustmL.t Measures .. ............... 14 B. Proiect Description ................. ....... ......... 17 Component lt Development of Sector Administrative, Management, and Planning Capacities ........... ... 17 Component 2: Improvement of the Quality of Basic and General Secondary Education .................. 19 Component 3t Strengthening Higher Education .... ... 25 This document has a restricted distribution and may be used by recipients-only in dhe perfomace of their official duties. Its contents may not otherwie be discosed without World Bank authoriztion.  (ii) Pate No. C. Prolect Cost and Financing Plan ..................... 26 Recurrent Cost Implications ....................... 28 D. Protect Imnlementation ................. 29 IV. BENEFITS AND RISKS ...................... 33 V. AGREEMENTS REMCED AND RECOMMENDATION ................ 36 ANNEXES Annex 1 - Government Education Sector Strategy Letter Annex 2 - Education Sector Reform Measures Annex 3 - Structure of Education System Annex 4 - Summary Education Statistics Annex 5 - Enrollment, Dropout, Repetition by Grade Annex 6 - Investment Program of Ministry of Higher Education Annex 7 - Investment Program of Ministry of Basic and Secondary Education Annex 8 - Education Sector Public Expenditure Programs Annex 9 - Organigram of Ministry of Basic and Secondary Education Annex 10 - Organigram of Pedagogical Unit Annex 11 - Project Cost Tables Annex 12 - Disbursement Schedule Annex 13 - List of Documents in the Project FPle ,BRD May No. 21706 (July 1989)  (iii) DEMOCRATIC REPUBLIC OF MADAGASCAR EDUCATION SECTOR REINFORCEMENT PROJECT STAFF APPRAISAL REPORT Credit Summary Borrower: Democratic Republic of Madagascar Amounts $39.0 million equivalent (SDR 30.4 million) Termas Standard IDA, with 40 years repayment Description: The credit would commence a major reform of the education sector, through policy measures and quality improvements. It would support the start of the Government's long-term sector development program, to improve efficiency and quality of the education system. A three-year sector public expenditure program (PEP) will be agreed annually, reflecting increased spending on primary education and on c,uality improvement at all levels. Policy measures would include: (a) For primary and secondary education, (i) reorganization of MINESEB to create a Pedagogical Unit responsible for educational quality, and separate planning and statistics units; (ii) regulation of student flows through the system to concentrate resources on primary education; (iiij development of action plans to improve administrative efficiency and use of education personnel; (iv) measures to reduce primary school repetition ratss; (v) reduction in use of national service temporary teachers; (b) Preparation of action plans for university reform; (c) Establishing an inter-ministerial structure to coordinate vocationalitechnical education and training, with employers represented. The project would be implemented in two phases. Items included. in the second phase would start only after a joint mid-term review of progress on the strategy and the project, including the above action plans. The project would have three main components: (a) Strengthening administration and Planning in MINESEB, including studies to develop reform plans for education administration; computer and office equipment for admlnis- tratior. statistics and planning services; development of im; -ved personnel policies; training administrative personnel; (b) Quality improvement of basic and lower secondary education, including: teacher support services (training inspectors, advisers, and head teachers, means of travel, seminars), pre- service and in-service training for teachers (settii.g up 6 primary teacher training colleges; regrouping junior-secondary teacher training in one, rehabilitated college; setting up systems for re-cycling existing teachers); producing and distributing primary school books; upgrading of secondary school laboratories; (c) Strenathenina hither level education, including short-cycle higher technical training institutes; and  (iv) development of university action plans to modernize curricula, to improve administration, and the cost/financing balance. Benefits: Both economic and educational benefits are expected. The institutional measures will improve long-term resource allocation, allowing strengthening of quality and increased enrollment to respond to demographic pressures, within the education budget likely to be available. The project will increase student achievements at all levels, and reduce costs by allowing students to complete education cycles more quickly. Improved basic education should have positive indirect effects on health, nutrition, fertility, and-agricultural production, while improved vocational training and university quality will strengthen manpower resources. The projected sector PEP shows that on the basis of CRESED sector strategies and taking into account the recurrent expenditure impact of CRESED and other projects in the sector PIP, real public operational expenditure on education would grow by between 2 and 3 percent &nnually in the medium term, an increase which is consistent with the macro- economic framework discussed between the World Bank and the Government. Risks: The CRESED reform program are complex requiring many actions by a wide range of people, while the political implications of some of the measures make their implementation risky. To reduce these risks, the project has bee prepared by local technicians, but continuing dialogue to ensure Government's commitment to reform will be essential. Each sub-component will be Implemented by the relevant line agency, and coordinated by a small unit chaired by the Minister of Secondary and Basic Education, who coordinated project preparation.  (v) -- Proiect Cost Summary Estimated Costs -- FHG (billion) US$ (million) -- Local Foreirn Total Local Foreign Total 1. Administration and Planning 7.5 7.7 15.2 4.8 5.1 9.9 2. Quality and Efficiency Improvement 8.8 24.8 33.6 5.7 16.1 21.8 3. Higher Education 1.6 11.9 13.5 1.1 7.7 8.8 Total Base Costs (excl. 17.9 44.4 62.3 11.6 28.9 40.5 taxes) Total Contingencies 3.3 9.2 12.5 2.2 5.9 8.1 (excl. taxes) TOTAL PROJECT COSTS Excluding taxes 21.2 53.6 74.8 13.8 34.8 48.6 Taxes 9.9 -- 9.9 6.4 -- 6.4 Total including taxes 31.1 53.6 84.7 20.2 34.8 55.0 Financina Plan IDA 14.7 45.3 60.0 9.8 29.2 39.0 OPEC 1.8 549 7.7 1.2 3.8 5.0 UNDP ' 1.5 1.5 - 1.0 1.0 Germany 0.8 0.9 1.7 0.3 0.8 1.1 Government 3.9 _ 3.9 2.5 - 2.5 Total excluding taxes 21.2 53.6 74.8 13.8 34.8 48.6 Taxes 9.9 - 9.9 6.4 - 6.4 Total including taxes 31.1 53.6 84.7 20.2 34.8 55.0 Estimated IDA Disbursements: IDA Fiscal Year 1990 1991 1992 1993 1994 191,i5 Annual 3.0 6.0 9.0 8.0 9.0 4.0 Cumulative 3.0 9.0 18.0 26.0 35.0 39.0  STAFF APPRAISAL REPORT DvMOCRATIC REPUBLIC OF MADAGASCAR EDUCATION SECTOR REINFORCEMENT PROJECT I. INTRODUCTION 1.01 The development of education in Madagascar aud the Government's new sector strategy must be seen in the context of the evolution of the whole economy. MAdagascar has experienced a long-term decline in per capita income, widespread deterioration of its physical and social infra- structure, and extreme scarcity of fiscal resources. Following economic stabilization in the mid-1980s, the Government is now carrying out a series of adjustment programs, with INP and IDA support. The key objectives of Bank Group assistance are to support Government reforms, policies, and investments aimed at accelerating economic growth, restoring vital infrastructure, strengthening the capacity to manage development, liberalizing the economy, and mobilizing and making more effective use of domestic and external resources, while designing programs to assist the most disadvantaged groups. 1.02 Education Sector Strategy. Within the above macro-economic framework, the Government has adopted a strategy, which the Association supports, for development of the education sector as a whole, and to improve the quality and efficiency of education at all levels, with special emphasis on basic education. The strategy includes measures to contain costs, to use resources more efficiently, to redistribute the education budget within the sector to reflect the priority given to basic education, to improve the costlefficiency of higher education, and to Ikke technical/ vocational training more relevant to the needs of the economy. With IDA support, a program of actions has been prepared, based on the education strategy, which will be implemented over some 10 to 15 years, to improve the quality of education and to respond to the country's needs. 1.03 The project (Credit pour le Renforcement du Secteur de l'Education -- CRESED) will provide the means for the Government to begin to implement this strategy. It would finance actions to be started in the initial three years of the program, assisting the Government in putting in place the required administrative and physical structures, as well as in training specialists and trainers, and preparing new teaching programs. The project is designed to help the Government to further develep its sector strategy and the investment program based on that strategy; future operations in support of education under financing by IDA and other donors are expected to be prepared to support the subsequent stages of the program. 1.04 The estimated project cost is US$ 55.0 million equivalent including US$ 6.4 million in taxes, of which the foreign exchange component is 722. The Government will contribute about US$ 2.5 million equivalent, in addition to taxes. The remaining US$ 46.1 million is expected to be financed by IDA (US$ 39.0 million), the OPEC Fund for Intsrnational  2 - Development (US$ 5.0 million), UNDP (US$1.0 million), and the Federal Republic of Germany (U$ 1.1 million). France, the African Development Bank (AfDB), and the World Food Program are providing complementary assistance. UNESCO, the ILO, and UNIDO will also cooperate through projects they are executing on behalf of UNDP anid t'lae AfDB. II. THE EDUCATION AND TRAINING SECTOR A. OVERVIEW 2.01 The public education system in Madagascar consists of a five-year primary education cycle (Level I), followed by four years of lower secondary education (Level $I), and a three-year higher secondary cycle (Level III). Higher education (Level IV) is offered after Grade 12 in the form of two- to six-year courses at six decentralized universities (one in each of the six regions) and associated institutions, as well as by certain specialized schools. Entry to university is in principle currently available to all who pass the baccalaureate at the end of Level III, although some faculties have competitive entry, and others require higher than pass marks for entry. 2.02 In principle, vocational educaticn is offered at age 16 by MINESEB schools to students unable to stay in general education after Level I, although in practice they have fewer than 2,000 students. Vocational courses are also provided by institutions run by other agencies, public, NGO and 'trivate, preparing students for the labor market. Technical education starts at Level III, with three-year courses offered at 19 technical schools leading to a Technical Certificate (Brevet Tecbntqiie), and four-year courses offered at 8 lvcfes techniques leading to a baccalaureat technique, giving access to a university. Agriculturallv= oriented education is provided through a small number of dgricultural secondary schools, supervised by the Ministry of Livestock and Forestry. Other government agencies offer ad hoc training courses for their personnel. The education system is described in Annex 3. 2.03 Orsanization and Administration. There are two education ministries: the Ministry of Basic and Secondary Education (MINESEB) and the Ministry of Higher Education (MINESUP). Educational policy is formulated by the Cultural and Social Committee of the Supreme Council of tne Revolution (CSR). This Committee has in the past few years organized public discussion of education strategy, to help to sensitize public opinion to the need for reform, and to help to define reform policies. MINESEB has a decentralized structure, consisting of six Regional Directorates for Secondary and Basic Education (DEPESEB) and 110 district administrations (CIRESEB). (An organization chart of MIKESEB is in Annex 9.) Each university has its own administration (Rectorate). Research is mainly the responsibility of the Ministry of Scientific Research and Technology for Development. 2.04 Education Financing and Costs. Although the 4.8 percent of GDP (including both public and private expenditures) Madagascar spends on  -3- education is rather low in comparison with other countries in the Africa Region, Goverment current expenditure on education accounts for a relatively high proportion of public expenditures -- 202 of the total and 252 of the recurrent budget. About 722 of the public education budget goes to primary and secondary education, and 282 to the universities. Ninety- five percent of MINESEB's .xpenditures are on teachers' salaries. 2.05 Because of the high primary enrollment rates, low teacher salaries, and the tear absence of spending for non-teaching items, such as textbooks, education equipment, and maintenance, costs per student are low by Africa Region standards: US$34, $53, $165, and $588, respectively, for Levels I, II, III, and IV. (Annex 8 provides a breakdown of the recurrent Government budget for education.) 2.06 Enrollment. The education sector grew rapidly in the 19709 and early 1980s, with the numbers of public primary pupils (Level I) rising from 870,000 in 1975 to 1,410,000 in 1985. That growth, together with the sizable private school system, shifted gross primary enrollment from 902 to 1132 (gross enrollment in 1964 had been 422). Net enrollment of the 6-10 year age group (Level I) ic 1985 was, however, probably only about 70X. At Level II, the number of pupils increased from 53,000 to 254,000 in the general public schools, a rise in gross public and private enrollment of from 162 to 402. Public school enrollment at Level III went from 14,000 to 49,000, while the combined gross enrollment went from 6Z to 212. Higher education (Level IV) grew spectacularly, going from 9,000 in 1975 to 38,000 in 1985. Numbers of teachers in Level I public schools grew from 14,000 to 37,000 between 1975 and 1985. The number of primarv schools rose from 5,000 to 13,000. 2.07 In contrast to the growth up to the early 1980s, since then the system has stagnated, and the number of students appears to have dropped, although precise comparisons are not possible because of the weakness of the data for earlier years. As a result of new statistical techniques introduced with Project Preparation Facility (PPF) financing, figures from 1987 will be more rpliable. In 1987/88, pupils attending public schools numbered approximr- y as follows: Level I--1,263,000; Level 1I--187,000; Level III--48,00(. -;d Level IV--36,400. There does indeed appear to have been an absolute cae_line in enrollment, and since the annual increase in the school age group was probably over 3.52 (based on population growth of 3.22 per annum), the decrease in enrollment rates appearn substantial. At Levels II and III specifically, for which the statistics are more reliable, the average annual decreases in enrollments between 1984/8! and 1987188 were 92 and 72, respectively, while then were 312 in secondary technical education. The decline in enrollment at the primary lavel was accompanied by the closing of a substantial number of schools: between 1982/83 and 1987/88, about 1,600 Level I schools had to be closed, for reasons including lack of funds, the reluctance of teachers to go to rural areas, and security problems. 2.08 There is a relatively low overall pupil/teacher ratio at the primary level, of about 38 to 1, although there is wide geographic variations the official norm if 50 to 1, and the low average is probably due to poor distribution of teachers. Visits to schocls indicate much higher average class sizes in many areas. Multigrade and double-shift  - 4 - teaching is common (the latter usually involving different teachers). There are however many under-worked teachers in urban areas (especially since teachers who are spouses of civil servants are entitled to follow them if they are transferred, and to continue to be paid whether there is work for them or not), whereas it is difficult to get them to go to many rural areas. It appears from the admittedly incomplete statistics that a substantial proportion (possibly 10) of those paid as teachers are not in fact working in the educational system. MINESEB is working to develop a more efficient control of its personnel. 2.09 Education of Women. At the primary level nation-wide, 441 of the children in public schools are girls, the same as the average for the Africa Region. In the area of Antananarivo, the capital, the figure rises to 482. At the secondary level nation-wide, 40? of students are girls, compared with a 33Z average for the Africa Region; it is even higher, 50?, around Antananarivo. However, the proportion of girls enrolled at all levels is much lower in some areas, particularly rural ones (e.g., 34Z in Fianarantsoa primary schools), and especially at the secondary level (e.g., 20S in Mahajanga). At the universities and in private education, the rate of male and female enrollment is virtually the same. 2.10 Teacher Training. Legislation passed in 1978 provides for a system of teacher training institutions (Ecoles Normales, or EN) for primary and secondary education Levels I, II and III (referred to as ENI, EN2, and EN3), although no EN1 had been set up until 1989. The massive recruitment of nrimarv school teachers in the 1970s was primarily among possessors of Level II leaving certificates who had volunteered to teach during their national service, and who were subsequently confirmed as permanent teachers. The volunteers (SN) received only a few weeks' preliminary training at 27 institutions set up for this purpose (including the five centers financed under the 1976 IDA Education Credit (para. 2.40J). SU are now little used -`or Level I. In recent years recruits, who number only about 100 per year, are mainly people who have obtained suitable academic credentials privately. In keeping with its newly adopted education development strategy, the Government plans to set up six ENli--one for each region--which will have when completed a total annual output of 600 Level I teachers. 2.11 About 35Z of the 6750 Level II teachers are currently temporary SN, who have passed the baccalaureate and who, after four weeks' training, teach for one year before entering university. They are ill-paid, inexperienced and poorly motivated as teachers. In addition about 200 graduates of six regional EN2 were recruited annually. These EN2 operated in extremely inadequate facilities, offering three-year courses to students with lower secondary qualifications. The Government now plans to improve quality of Level II teachers by consolidate their training in two-year courses at a single national EN2 that will have an annual output of 300 teachers, recruiting at baccalaureate level. It intends progresively to reduce dependence on SN teachers. Level III teachers are trained in five- year courses at the three EN3, of which the largest is in Antananarivo. There is an over-supply of Level III teachers in certain disciplines, and Government is reducing the entry to the EN3.  -5- 2.12 Private Education. The Government assigns an Important role to privat, education, in particular at secondary levels, recognizing that it cannot meet the full demand for education from public funds. At Levels I, II and III respectively, private schools cater for 15, 30, and 442 of total enrollment. Based on incomplete statistics, enrollment in the private F system appears to have grown at 32 annually since 1977, and has continued to grow while public enrollment has been falling. The most dramatic increase has been at Level III, of 162 annually. There are two sorts of private schools. The first, mostly in the larger towns, generally offer high quality programs, and are mainly religious schools, typically expensive, attracting children from wealthitr families. The second group consists of schools set up for commercial purposes, also at all levels; their quality and costs vary greatly. The Government provides a small subsidy to private education, about 3Z of the total costs, although the extensive use by private schools of part-time public teachers is in effect an additional hidden subsidy. Schools must be licensed by the Government, buvt this does not seeia to be a bar tc entry. 2.13 In addition to the above, a number of upper secondary students and about 102 of university level students study overseas at their own expense. However, the recent fall in the value of the Malagasy franc will almost certainly lead to a decline in the number of students overseas and a commensurate increase in demand for education in Madagascar. 2.14 Test-book PublishinR. In recent years there have been few books available in public schools, apart from some provided by donors (especially France), which are generally not in Malagasy. The small local publishing industry has not produced text-books, apart from a few texts prepared by NGOs, and there are few experienced writers or editors. MINESEB has from time to time asked teachers to prepare texts for publication, but the quality of the results has been poor, and resources have been inadequate for production or distribution. Private schools use whatever material they can get, produced by themselves or imported. Government wishes to develop a local capacity to prepare books, and to decide when it would be more appopriate to import material. It is creating a unit for this purpose, as described in Chapter III. During project execution it will g'.ve further thought to how it can best stimulate the development of a local publishing capacity, with due regard to the advantages of giving a substantial role to the private sector. A project with German support is training Ministry staff in text-book writing and publishing, concentrating on books in Malalgasy for the first years of primary school: it is on this excellent operation that CRESED will build. B. EDUCATIONAL REFORM 2.15 Prior to 1975, Madagascar had made little attempt to adapt education and training to the needs of the country. French was the main language of instruction, and the implicit goal at each level of instruction was almost exclusively to prepare students for the next higher level and ultimately for public employment. Between 1976 and 1978 the Government adopted education reforms, culminating in the 1978 Education Reform Act, that constitute the basic reference for all educational measures: even today, any change in the education s3Jtem must be justified in the context of that legislation.  2.16 The 1976-78 reform was based on three fundamental principles: ti) democratization, according to which every child was to have the right to basic education and a chance of continuing education thereafter; (ii) decentralization, whereby there would be an equitable distribution of educational institutions across the nation, as well as a devolution to local authorities of an important role in management and responsibility; and (iii) Malagasisation, or the introduction of language, curricula, and methods of instruction consistent with national objectives. 2.17 The reform was successful in bringing about the large expansion described earlier. However, the speed and unplanned nature of that expansion caused numerous problems. Realizing that a dramatic decrease in the overall quality and credibility of education was taking place, the Government started in 1985 to make policy changes, giving increased emphasis to quality rather than to further expansion of the system, and giving more attention to French as a joint language of instruction. It has recently prepared a strategy for the long-term development of education, and a program of actions to implement it, which have been appproved by the country's technical and political authorities. The strategy is described below and in Chapter III, together with the program, whose initial phase constitutes the project. C. MAJOR SECTORAL ISSUES 2.18 The key issues that need to be tackled in the education sector ares weak and uncoordinated administration and management; weak education planning and unreliable statistics; the low quality of education and the internal and external inefficiency to which it leads; and problems linked to the cost and financing of education. 2.19 Weak Administration and Management. As a result of the 1978 reforms, centralized and decentralized administrative systems co-exist without well-defined functions and responsibilities. Coordination between the central and regional administrative structures is lacking; there is inadequate consultation between MINESUP and MINESEB and, within each ministry, among the various departments and among the centralized and decentralized structures. At the sub-regional level, there are 110 administrative divisions, responsible for the administration and monitoring of some 11,600 primary schools and 650 secondary schools. Of the approximately 5,500 administrative personnel, few have been trained. The resultant poor monitoring, control, and evaluation of educational organization and development at the school level have been major handicaps to ensuring educational quality and good management. Headteachers and their staff often receive conflicting instructions and requests for information. There is an urgent need to address the unclear distribution of responsibilities, lack of training of administrators, and dramatic shortage of equipment and administrative documentation. 2.20 Education Planning and Statistics. The unreliability of the datd on basic education is a significant problem. The Government recognizes that, without reliable statistics, it cannot proparly manage sector development or monitor the progress of sector adjustment measures. As noted, with PPF financing and the support of UNDP and UNESCO, the  -7 Programming Service in the NINESEB Department of Education Planning and Programming (Direction de la Planification et de l'Orientation de l'Enseignement, or DPOE) has initiated a more reliable system of data collection, using trained specialists and modern equipment. This process needs to be continued and expanded. Local administrative staff, as well as field personnel (inspectors and head teachers) need training in the preparation and use of statistics, and the central services need further support in conducting surveys, improving analysis, and publishing data. Further assistance would also ensure that appropriate data are collected to permit analysis aimed at raising the efficiency of the byatem. 2.21 Whereas there has been improvement in the statistics services, MINESEB's planning capacity remains weak. At the central level, the DPOE has had no unit responsible for education planning and very few staff with training in the economics or planning of education. Nor is the information derived from statistical analyses, projections, or studies of sector problems widely available. School mapping is not undertaken at either the regional or central levels. 2.22 Within this context, efficient sector management is extremely difficult. A recently approved credit from the AfDB provided funds for the development of an education planning capacity, and the UNDP anl UNESCO are expected to expand their ongoing project to support planning. To make these externally financed efforts effective, the DPOE must be reorganized, staffed with adequately trained specialists and supplied with modern, functional equipment. 2.23 Internal Efficiency. The rapid increases in enrollment during the last decade, and the implementaticn of new curricula based on extensive use of Malagasy as the language of instruction, for which teachers were not trained, have drastically affected not only the quality but also the internal efficiency of education. Repetition and drop-olut rates at Level I are very high--35Z and 132, respectively. The repetition rate for the first grade--482--is particularly high. It has been estimated that the average child requires about 11 years to complete the 5-year basic education cycle. Similar problems of repetition are found at Levels II and III, where the respective rates are 152 and 23Z. Only 20? of baccalaureate candidates succeed. In the universities the situation is even worse: 70-80? of university students repeat the first year. Because of drop-outs and repetitions, the number of student-years taught for every university graduate is abnormally highs at the lower extreme, 21.3 university student- years to produce a graduate in legal studies, and at the upper limit, 125.3 student-years for mathematics studies, for a normal cycle of four years. 2.24 External Efficiency. Partly due to the poor quality and inappropriate conteat of general and technical education, substantial numbers of school-leavers are unemployed, despite prevailing shortages of technicians, skilled workers, and middle management. Secondary technical education is particularly inefficient. Teachers are not trained to supervise practical vocational training, schools lack materials, and equipment is often inappropriate. Programs are theoretical, inconsistent with employment opportunities, and too inflexible to take account of changing employment needs; employers are not associated with the determination of program content.  2.25 A project now under preparation, for French and IDA co-financing, would help the Government to implement the technical and vocational education part of the long-term education development strategy, bringing about a fundamental reorganization of vocational and technical education and training, to relate it to employment needs. The educational pol;- unit recently created in MINESEB will in coming years work to make general education curricula more relevant to the social and economic environment. 2.26 Quality of Education. Currently, student achievements are inadequate. Not only is the percentage of success in tests low, but many children leaving school at the end of Level II are barely functionally literate. The main reasons for the declining quality and low internal efficiency are the high number of unqualified, poorly-paid and ill- motivated teachers, the large proportion of teachers in Level II who are inexperienced and untrained SN (para. 2.11), the absence of educational materials and equipment, the use of two languages for instruction (Malagasy at Levels I and II and French at Levels III and IV), in neither of which are teachers proficient, and difficult working conditions, such as overcrowded classrooms in many areas and dilapidated buildings nearly everywhere. In addition, the curricula are changed as often as every four years, without preparing educational materials or providing related teacher training. Many schools are operating on double shift or multigrade systems, which reduces student instruction time. The preparation of teachers' guides and student textbooks has been hampered by the absence of coordination among the several MINESEB departments theoretically responsible for preparing, producing and distributing textbookss they have seemed to compete among themselves rather than pooling their efforts. As a result, and also because of the lack of resources for publishing and distributing books, very few are printed, while existing ones are poorly prepared and presented. Finally, the training programs for teachers are not designed in keeping with school curricula. Government has now created a single entity in MINESEB to be responsible for the quality of education, including curriculum development, teacher training programs, and the preparation and distribution of educational materials. 2.27 The lack of emphasis on French at Levels II and III from 1975 to 1985 has added to the quality problems at the university level. French is the official language of instruction, although because so many students lack fluency many lecturers in fact use Malagasy. While this accommodation facilitates teaching, students must still take their examinations in French. Despite the renewed emphasis on French at Levels I through III since 1985, it will be some years before substantial improvement is seen. The quality of university education also suffers from overcrowded facilities, outmoded curricula, untrained teachers, and a lack of books and teaching materials. 2.28 Education Costs. Although the unit costs of general education are low at all levels by regional standards, both absolutely and relative to GDP per capita, the high enrollment rates lead to high total expenditures. The extremely high repetition and drop-out rates (para. 2.23) give a high cost per graduate. Level II has particularly low unit costs, due in part to the low average teacher qualifications and resulting salaries, and to the use of National Service teachers; on the other hand, due to low  -9- studentiteacher ratios, secondary technical education is relatively expensive. In general education, despite the low level of individual salaries (about 651 of the Regional everage), the rapid expansion with a limited budget has meant that 952 of MINESEB expenditures are for salaries; together with the high proportion of administrative staff and the poor use of those paid from tee teaching budget, this leaves little for educational materials. The growth of gigher education to take 282 of the education budget has reduced the resources available for lower levels, where returns are far higher. 2.29 In view of the importance of the expenditures for personnel, management of the teaching staff is crucial to controlling costs. There is considerable potential for improved utilization of personnel paid out of the teach!ng budget. The analysis of public employment being carried out under the Public Sector Adjustment Credit (PSAC, Cr. 1941) will reinforce NINESEB's efforts to make better use of education personnel; improvement of sector statistics and computerization of personnel managewent (to be planned and ialemented under CRESED) will allow more efficient use of the resources of the education personnel budget. 2.30 The universities have special financial problems. The high university enrollment makes costs per student low; however the quality problems and low promotion rates lead to high costs per graduate. Within the higher education allocation, 531 of total spending goes for grants and social expenditures. Social spending is high because of the large number of students entering the universities (all those who pass the baccalaureate have the right to a university education, with a grant depending on income), the low internal efficiency, which has led to excessive rates of repetition (scholarships are, however, withdrawn from those who receive very low g;ades at the year-end examinations), the heavy subsidies for housing and meals at the universities, from which many who are not students also benefit, and poor university management. The universities are heavily in debt to suppliers, especially for power and water: indeed the shortage of funds delayed the start of the 1988189 academic year. Reducing non- teaching expenditures will be extremely difficult, however; an effort to do so in 1986 led to riots and was ultimately unsuccessful. A newly-appointed university management is reasonably adopting a gradualist approach, strengthening its ability to control the system and to improve educational quality while developing and starting to implement reform measures. 2.31 While technical education is a relatively small part of the education sector (3.32 of secondary school students), it accounts for 15? of secondary education costs. Its unit costs are five times higher than those of general education, mainly because of low student/teacher ratios. The Government is revising its technical education strategy, to make it more relevant to the needs oi the economy and to make more intensive use of technical education resources. A project is being prepared for possible IDA and French cofinancing to support the new technical education and vocational training strategy. 2.32 Education Financing. Funds for personnel at all levels come almost entirely from the central budget, although some teachers are employed by agencies other than MINESEB (for example, the Ministry of Sports for physical education teachers, Defense for national service  - 10 - secondary teachers, and the regional authorities for certain primary teachers). Local authorities, together with parents' associations, contribute to primary and some lower secondary investment expenditures, while upper secondary investment is financed by the central government. However, there has been little investment spend4ng in recent years. Operational costs (other than -alaries) are aL.-ost entirely a loccl responsibility, but few local authorities have resources to enable them to contribute significantly to education. Parents are required to buy materials (exercise books, pens, etc.) for their children and to pay an annual charge of about $1 to $3 per annum per child directly to the schools. While there are systems of school cooperatives and parents' associations, given the extremely low levels of disposable incomes they mostly and not surpr i-ingly generate little revenue, especially at the primary level (a survey during project preparation showed an average for sch"ol cooperatives of about 25 US cents per child per year), and they finance no more than 32 of the costs of education. Parents also contribute in kind to primary school construction. The books financed by the French Cooperation are being sold to school cooperatives in the hope that parents will contribute more when they receive a tangible benefit, but there is little recent experience of parent reactions to availability of reasonable numbeis of books. Cost recovery will be analyzed during project execution, and an improved scheme developed. D. SECTORAL ADJUSTMENT STRATEGY AND POLICY DIALOGUE 2.33 Government Strategy. During the past few years, the Government has made a major effort to revise strategy for the education and training sector. Since 1983, national commissions and study groups have sought the advice of the public and of Malagasy and foreign experts in analyzing the problems facing the sector and in developing that strategy. In 1986 the UNESCO/World Bank Cooperative Program prepared a sector study in support of this effort. Subsequently, in October 1986, the Government set up, with World Bank financing, a Working Group of Malagasy technicians to study the education and training sector. The final, summary report of this Working Group (Rapport de Svnthese) was in 1988 submitted to and approved by the Conseil des Ministres and the Conseil Supreme de la Revolution. The Government's program for rehabilitation and reform of the system is based on the framework set forth in that report, as is the proposed project. 2.34 The heart of the education development strategy now adopted consists of commitments to improve quality at all levels of the system (as opposed to the 1970s' priority of expanding enrollment), to control expenditures on education in order to generate the resources needed to improve quality, and to make technical education and training as relevant as possible to the needs of the economy. The strategy was discussed with IDA during project preparation and negotiations, and is described in a letter sent to IDA (Annex 1). A sector public expenditure program has been prepared which reflects these priorities and will be updated annually in discussion with IDA. Details are in Annex 8. 2.35 Government intends to adopt the following detailed strategies: (a) To improve teaching quality through an increase in resources devoted to initial and in-service teacher training, to teacher  support services and teaching materials, and to operating expenses; (b) A progressive real increase in spending on primary education, in order to reach the medium term objective of universal education for the age group 6 to 12, in private and public education (while allowing for population growth and the need to improve quality), together with an increase in non-personnel spending; (c) A control of the flow of students through the system, and a reduction in the numbers repeating grades, in order to liberate resources to permit the other objectives of the strategy; (d) The full use of teaching and non-teaching personnel, and recruitment of new teachers in accordance with needs; (e) Strengthening of the planning and administration of the system to provide for better use of resources, including clarification of decentralised responsibilities, better programming and control of expenditures, and simplification of procedures; (f) Reallocation of resources within higher education in favor of quality of education, improving its relevance to the needs of the economy, improving university administration, and the balance between costs and the financ:lng available. Pilot operations to train higher level technicians will be carried out; (g) Vocational and technical education will be reorganized to match the needs of the labor market; (h) Efforts will be undertaken to improve maintenance of school buildings, including an increase in budgetary allocations, and a maintenance policy developed. 2.36 Policy dialoRue. The reform of education strategy is being undertaken in dialogue with the World Bank, and with support from a PPF advance. Bank involvement has given Malagasy decision-makers and technicians the resources to reflect in depth on the problems facing the sector, with the support of consultants to help to define specific action programs. The continued support which the project will provide will enable these programs to be put into effect, a support which could be provided by no other donor. It will also maintain the dialogue leading to definition of more intensive reform programs, especially for higher and technical education. The position IDA has taken as pre-eminent donor, with France, in the Malagasy education sector gives us a role of aid coordinator and helps to provide a framework within which other donors can maximize their support. Some donors who cannot participate extensively at present hope to participate in the second phase of the !rogram. 2.37 IDA strategX is to continue the dialogue while financing the first phase of the rehabilitation and reform program, and so to reinforce the process described above, leading to the intensification of reform. In this first phase we seek to improve the quality of education, to strengthen the administration and planning capabilities of MINESEB, and to start refonm oE  - 12 - higher education. To reach these objectives, the project will include structural measures, described in paras 3.05-3.08, as well as investment and other expenditures. The support that IDA and other donors are expected to provide in subsequent operations for future phases of the Government's sector development program would enable it to embark on further sector reforms, to be defined during project execution, as well as to put into effect activities (such as the initial and in-service training, book production and development of vocational and technical education programs) that will be prepared and started under this first project. 2.38 Public Expenditure Program. An analysis was carried out of sector public expenditures in the medium and longer term, taking account of (a) growth in expenditure implied by past recruitment decisions, (b) the Government strategies and policy measures described above and in Chapter 3, and (c) the recurrent cost impacts of CRESED (assuming recruitment by the public sector of the teachers to be trained under the project) and of other projects in the PIP. This analysis shows that if Government follows the CRESED stategies, sector public expenditure would grow at between 2 and 3 percent annually in real terms, a reasonable rate of growth if the economy, as forecast, experiences medium term positive real per capita growth. 2.39 Expenditure on education materials and other non-personnel costs has been very low at all levels. Of MINESEB expenditure alone, some 95 percent is for personnel; if parental expenditures are incuded, some 83 percent of all expenditures goes for personnel. The PEP assumptions, including recurrent costs due to CRESP, will leave room for increased spending on education materials, so that non-personnel expenditure would go from 17 to 22 percent by 1995. BANK GROUP EXPERIENCE WITH PAST LENDING 2.40 The Bank Group has supported two education projects in Madagascar. The first, in 1967 (Loan 510-MAG), financed a technical education and secondary teacher xvraining center in Antananarivo. The second, in 1976 (Credit 663-MAG), supported quality improvement and decentralization through the financing of five provincial centers for in-service teacher training and education administration, as well as a unit to produce educational materials. Both projects attained their physical objectives, but educationally neither can be considered completely satisfactory. The institutions are not fully utilized, partly because of a lack of operating resources and partly because of changes in the Government's teacher training strategy. The education materials unit appears to be performing reasonably well. CRESED is designed to make maximum use of the facilities financed by these credits. Project completion reports were issued in 1976 and 1987: the latter drew attention to the need for a clear definition of project unit responsibilities, for coordination between physical and educational components, and for good control of building implementation. 2.41 In addition to the two education projects, two Technical Assistance projects (Crs. 1155-HAG and 1661-MAG), approved in 1981 and 1986, supported establishment of an Accounting and Management Training Center (INSCAE). The first project was completed with excellent results, and the second is being executed relatively well.  - 13 - III. THE PROJECT A. PROJECT OBJECTIVES AND SECTOR POLICIES Obiectives 3.01 The overall objective of CRESED is to help the Government to start to implement its education development program, designed to improve the quality and the internal and external efficiencies of the education system. The program is designed to implement the strategy described in paras. 2.33-2.39 above and in Annex 1. It will be developed further with IDA assistance, during project implementation. An integral part of the sector development program will be the introduction of a system of Public Expenditure (PEP) and Public Investment (PIP) programming for the sector. 3.02 It is expected that the education development program will be implemented over 10 to 15 years, and will be articulated essentially around four major topicst (a) strengthening the administrative, planning and monitoring capabilities of the sector; (b) improving the quality of education at all levels, especially Levels 1 and 2, and adopting cost- efficiency measures based on a tight control of expenses to free resources for use on quality improvement; (c) regulating student flows through the system to encourage the qualitative and quantitative development of basic education while improving quality at other levels; (d) introducing new higher education programs, inc.-%ding vocationally-oriented short cycles, flexible enough to be adopted rapidly to the country's needs; and (e) reorganizing the vocational training and technical education systems under a coordinating structure which will establish a close link between training and employment requirements. 3.03 This first credit would assist in implementing the start of the program, by financing actions which start during the period 1990-93. The project's short-term objectives would be three-fold. First, assisting the Government in the detailed preparation (including investment in infrastructure and training) of its long-term education development program focussing on the objectives already discussed and approved. Second, helping the Government in implementing sectoral adjustment measures which are crucial for the success of the program. Third, financing immediate actions aiming at preparing a solid and permanent bas'.s for the future expansion of the program. The financing of this first part of the program implies that the proposed project should be followed by other financing for subsequent phases, by bilateral and/or multilateral donors, possibly including a second IDA credit. The framework of the program has already been presented to the major donors, who strongly support its content, and some of whom have committed financing. The program also complements, and is partly dependent on, measures being taken under the Public Sector Adjustment Project, in progress with IDA support. The sector adjustment measures and investment actior.s to be implemented in the course of the proposed project are detailed below. 3.04 The project will be implemented in two phases. Actions reserved for the second phase have a total cost of about $15 million. They will be  -14- I undertaken after a joint review, expected to take place in the latter half of 1991, of progress during the first stage, as well as of the content of the action plans described below, and of the time-tables established by tne authorities for their implementation. Sectoral Adiustment Measures 3.05 The policy measures to be carried out in conjunction with CRESED (Annex 2) fall into three categories: strengthening administrative and planning capabilities and improving the quality of education; controlling recurrent costs while maintaining or lowering the share of education in the recurrent budget; and improving the efficiency of the sector. 3.06 Category 1. In order to strengthen sector administrative, management and planning capabilities, and to improve the quality of education, the following measures will be pursued: (a) Measure No 1. DPOE has been reorganized into three departments and thus concentrates its activities on planning, statistics. and programming. The first department, to be developed under the project and with AfDB assistance, will be responsible for education planning, and the preparation of education development plans and investment programs. The second, whose nucleus has been built up with support from the PPF and from a UNESCO/UNDP project, will collect, analyze and publish education statistics. The third will be for evaluation and programming. (b) Measure No. 2. Under the direct authority of the Minister of MINESEB, a new department, known initially as the Pedagogical Unit (Unite d'Etude et de Recherche Pedagogiques, or UERP) but to be developed later into an education institute, has been created, with responsibility for all aspects of educational quality, such as curriculum development, content of teacher training programs, preparation and distribution of teachers' guides and textbooks, and supervision and evaluation of education reforms. All necessary measures will be taken for UERP to become fully operational, with a status equivalent to a "direction" of MINESEB, transferring to it pedagogical functions relating to training and teaching programs and the conception and preparation of teaching materials, before credit effectiveness. (c) Measure No. 3. In order to prepare in detail the university reform program which the G,vernment is implementing, the university authorities will develop action plans, to include modernizing curricula, strengthening university management, and improving the cost/financing balance so as to permit increased expenditure on the quality of l-igher education. These plans will be discussed at the mid-term review. (d) Measure No. 4. A national structure will be cr-*ted to coordinate vocational training and technical education activities. It will be responsible for establishing training policies in keeping with the country's needs, elaborated in close  - 15 - cooperation with public and private sector employers. The Government intends to create the training coordination structure by the end of 1990. A vocational and technical education and training project is being prepared to support it. 3.07 Category 2. To control recurrent costs and to free resources to finance quantitative increases in basic education and qualitative improvement at all levels, without increasing the share of the sector in the Government's recurrent budget, the following measures are planned: (a) Measure No. 5. An annual, three-year rolling PEP will be prepared, following the Government strategy for management of the student flows through the system. It will provide inter alia fort (a) redistribution of the education budget to increase expenditure on basic education both in real terms and as a proportion of the overall education budget; (b) priority to expenditures for quality improvement over expansion of the system; and (c) budgetary provision for infrastructure maintenance. New expenditure on vocational training and technical education will be committed only in accordance with employment requirements, on recommendation of the Coordinating Structure (Measure No. 4). By October 31 of each year, a three- year sector PEP will be ready for review and approval by IDA. (b) Measure No. 6. .e cost-efficiency of the system will be improved by measW -s including: (i) improved payroll management and control, notably as a result of the census of the civil service undertaken by end-1989 under the Public Sector Adjustment Credit and complementary action taken by MINESEB financed from the PPF, which should reduce payroll irregularities; (ii) the redeployment of teachers from non-teaching to teaching positions; and (iii) from surplus to deficit school districts, in particular to those with closed schools. These objectives would be obtained through a combination of administrative enforcement measures and of incentives, which will be defined during the first phase of CRESED. Action plans in these areas will be prepared prior to the mid-term review. (c) Measure No. 7. With the exception of the new streams to be opened at the Higher Technological Institutes (Instituts Superieurs de Technologie--IST), no new faculties will be created at any of the universities before June 30, 1993. Subsequent university expansion will be considered in relation to training needs, curriculum development and levels of university spending. 3.08 Category 3. To improve the efficiency of the education and training systems the following measures are planneds (a) Measure Vo. 8. Student flows through the system will be regulated to increase emphasis on basic education, and to limit pressures on secondary and higher education. The Government has set medium-term targets for annual increases in the numbers of students entering public schools in Grade 1 (Level I) of 42, in  - 16 - grade 6 (Level It) of 2Ss in grade 10 (Level III) of 1Z, and 0.51 entering Level IV (university). (b) Measure No. 9. There will be progressive reduction of the rates of repetition in basic education. To strengthen the effects of the introduction of quality improvement measures, administrative directives will be issued to set targets for primary school repetition rates in each section of not more than 252 in 1991, 20Z in 1992, 15 2 in 1993, and 10? in 1994. While the change may pose some -isks to the quality of education, they will be minimized Dy the actions financed by CRESED and its economic benefits will be high. This measure will need to be moiitored carefully. (c) Heasure No. 10. As trained or otherwise experienced teachers become available in Level II schools, the use of SN teachers will be phased out. 3.09 The above sectoral adjustment measures are expected to arrest the decline in primary enrollment. The main effects are expected to be to increase net enrollment and the number of years spent in primary school, while the gross primary enrollment rate will probably continue to fall. Total public sector primary enrollment is forecast to increase by about 30,000 by school year 1992193. The education budget would be restructured to increase expenditure on tasic education, but because of the contrary effects on public spending of the recruitment in recent years of secondary teachers, the restructuring is expected only to maintain MINESEB spending on primary education as a proportion of total public expenditure devoted to primary and secondary education at about 722. To ensure that the quality of basic and lower secondary education is improved at the same time as the sectoral adjustment measures are implemented, the newly reorganized DPOE intends to conduct studies to monitor the impact of measures to improve the efficiency of education. 3.10 Progress in implementing the sectoral adjustment measures is necessary to generate the savings required to provide a recurrent budget that permits expansion of the basic education system and improvement of the quality of education. Annual reviews of program and policy implementation will be conducted by Government technicians and donor representatives in the context of the sector PEP discussione. A mid-term review report on progress on the project and the Government's sector strategy will be subn.tted to IDA, together with the action plans on university reform, administrative strengthening, and text-book distribution and cost-recovery, by December 31, 1991. Items falling into the second phase of the present project will be financed and processed only if the mid-term review is satisfactory and agreement is reach;d on the action plans. A sector review will take place six months before the end of the project, with Government and donor representatives, focussing on financing needs and plans.  - 17 - B. PROJECT DESCRIPTION Component Is DeveloDment of Sector Administrative. an-aaement. and Planning CaPacities 3.11 Strentthening of Sector Management. CRESED will include a study to help define and carry out measures and actions required to make better use of sector personnel, . i to improve sector management. The study is to be carried out with the active participation of MINESEB managers and staff and would result in action programs: (i) to improve the deployment of sector personnel (see Measure No. 6); (ii) to clarify and systematize administrative responsibilities of the MINESEB administrative divisions, as well as delegation of authority between levels of decentralization, and to develop the corresponding operational manuals; (iii) to develop a basic program to triin administrative personnel; (iv) to streamline Administrative procedures, particularly those concerning personnel mnagement; and (v) gradually to modernize and develop sector information systems, notably those affecting sector management. In addition to the study and its implementation, CRESED will (4) provide MINESEB headquarters and its regional and subregional offices with an initial packLve of transportation, office and communication equipment, and (ii) help MINESEB's Legislative Service reproduce and distribute widely existing legal and administrative materials. 3.12 The study would require abcut 24 person-months of consultants for the development of action programs, and a further 36 person-months for Implementation. The project would also fund the participation of MiNESEB staff (travel and subsistence), and the logistic requirements of the study, such as two vehicles, office equipment, and accommodation. In addition, CRESED vili fund (i) implementation of the training program for sector administrators which would be established under the study; (ii) office and coumunications equipment for improvements to be implemented folljwing the study; (iii) equipment for MINESEB headquarters and regional offices involvini cars (12), motorcycles (20), bicycles (100), and office equipuert; and (iv) the cost of reproduction of basic organizational and trainiraa materials. 3.13 Strengthening of education vlanning cagabilitiess To enable NuESEB and MINESUP to plan education development on the basis of reliable statistics and in relatior to Madagascar's human resource development needs, CRESED will assist the Government in its efforts ,o increase the efficiency of its two education planning departments. The component will complement activities financed by the AfDB. It will encompasz dlfferent actions: (a) edacation planners and statisticians will be trained locally ard abroad, and technical assistance will be provided, mostly ou a short- term basis; (b) modern equipment for treatment of educational statistics will be installeds; (c) the six regional administrations (DEPESEB and universities) will be strengthened to allow them to prepare regional statistice, school maps and development plans; and (d) education cost and financing will be scrutinized and closely monitored, and a three-year rolling PEP will be prepared and updated each year. This program is expected to start immediately, concentrating in the short term on strengthening DPOE, in view of its key role in sector management. A ccordinating committee grouping the two DPOs will be set up to ensure that ill future education development plans are closely Integrated.  - 18 - 3.14 Reorganization of the DPOE. The DPOE will be responsible for preparing the Government's long-term education development program for primary and secondary education. It will also oversee implementation of sectoral adjustment measures, including conduct of the studies in support of sectoral adjustment programs, and will develop subsequent sectoral adjustment and growth plans and cost-effectiveness measures. It is being reorganized into separate planning and statistics services (para. 3.06, measure no.1). CRESED will assist It in: ti) preparing studies on the internal and external efficiency of education and on the implementation of measures to increase cost-efficiency; (ii) establishing iost-control and public expenditure programming systems; (iii) planning enrollment targets at each level of education, estimating budgetary needs, and identifying measures to generate necessary financing; (iv) the collection and analysis of rector-wide demographic and budgetary statistics and their publication annually; Cv) supervising the school mapping system and, on this basis, programming of the development of primary and secondary education; and (vi) preparing and implementing annual seminars for regional administrative staff, inspectors and headmasters, on the collection of statistics, school mapping, and projection of the real demand for schooling. 3.15 CRESED will contribute to the strengthening of planning and statistics activities, financing minor rehabilitation of facilities, furniture, computer and office equipment, preparation and implementation of computerized systems for statistics, administration and planning, overseas training (37 person/months), local training of about 15,000 head teachers and 30 regional planners, and other staff, and the incremental costs of operating the newly acquired equipment, organizing local training seminars, and conducting regional surveys to support the studies to be undertaken. 3.16 Studies. Among priority studies to be carried out with CRESED finance aret (a) Preventive Maintenance. The education ministries have difficulty maintaining school and administrative buildings partly because of lack of funds, partly due to the absence of a maintenance strategy, and partly due to weak sector management. The project will include a sub-component to support development of a maintenance strategy. The PEP will be expected to provide budgetary support to building maintenance. The project will include 6 man-months of consultant time. (b) Book Distribution and Cost Recovery. During project execution Government will study how to improve the present system of school-book distribution, storage, and cost recovery (see para 3.36). The study report will be prepared before the mid-term review of the project. The project will also include $1.3 million (of which $800,000 will be in the second phase) to finance studies to support development of the mducation sector, as may be identified during project implementation, including to analyze problems facing the sector and for preparation of components of projects in support of future phases of the sector reinforcement program.  - 19 - 3.17 Establishment of a Proiect Coordination Capacity. The Government's sector development program, particularly the sectoral adjustment measures, include activities that affect both MINESEB and MINESUP. The project would develop a capacity to coordinate, support, and monitor implementation of the long-term education development program and to manage the proposed and other future education projects under the program. To that e i, Committees for Coordination of Education Projects (CCPE) and for Cooruination of Pedagogical bctivities (CCAP), together with an Education Project Office (BPE) have been established under the two education ministers. The Project Coordinator-General, the chairperson of CCPE, is the recently appointed Minister of MINESEB, who as Secretary- General of MINESUP successfully assumed similar responsibilities for project preparation. CCPE consists only of him and the two Secretaries- General; CCAP, chaired by the Secretary-General of MINESEB, has as members the senior personnel of the two ministries. Government will keep BPE functioning during project eiecution, with a director having qualifications acceptable to IDA. 3.18 BPE staff will include a project director, and bpecialists in architecture, procurement and accounting, with supporting staff. The two secretaries-general will act as project coordinators for their respective ministries. CCPE will provide general coordination of the project, and set the program of project activities; CCAP will provide detailed coordination, and supervise and monitor implementation of the education development program. BPE will provide the secretariat fot the two committees, and help the ministry staff responsible for the different sub-components in day-to- day implemantation, prepare bid documents, propose contract awards, assist in recruitment of specialists, management of fellowship programs, and financing of project expenses. 3.19 Decrees establishing BPE, CCPE and CCAP have been issued, and the Coordinator General and Project Director have been appointed. Before effectiveness of the Credit, all measures necessary for BPE to be fully operational will have been taken. 3.20 For BPE the Credit will finances the rehabilitation of existing facilities; furniture and equipment, including vehicles and computer and office equipment; 14 man-months of specialist services, to include 3 man- months for external audits by a local auditor, 12 man-months of training, fees for contractual staff, and indemnities for supplemental work done by local specialists; and operating costs. Component 2s Improvement of the Quality of Basic and General Secondary Education 3.21 Setting-up a Denartment for Educational Activities. To enhance MINESEB's capacity to devise, initiate, implement and supervise activities to improve the quality of education at primary and secondary levels, CRESED will support the establishment of a new department for education activities, to be known initially as the Pedagogical Unit (UERP). It will probably eventually develop into an education institute (para. 3.06, Measure No. 2). UERP will be the means by which the project wills (i) prepare new curricula and develop teaching methods and materials based on  - 20 - classroom research and experimentations (ii) prepare pre-service and in- service training programs for inspectors, education advisors, headmanters, and teachers; (iii) organize preparation of textbooks and teachers' guides, and supervise their publication and distribution; and (iv) develop tests in different subjects, starting with Malagasy, French, and mathematics, to assess student progress over time. (Annex 10 shows the UERP structure.) 3.22 Project funds will finance rehabilitation of a building for UERP; furniture and equipment; 12 man-months of services of local and foreign specialists; 18 mAn-months of fellowships and costs for training abroad; study travel for six people to visit other comparable units; and the incremental costs of operating the equipment, organizing local training seminars, conducting regional surveys and tests, and preparation of educational materials and textbooks. 3.23 Strengtheninx the Role of Inspectors. Education Advisors, and Headmasters in Teacher Support and Educational Administration. To enhance the indispensable role of inspectors, education advisors, and headmasters in monitoring teachers, on-the-job training, and conducting training sessions and seminars at the local level, the project will, under the supervision of UERP, strengthen the regional and local structures for education supervision in various ways. (a) The number of inspectors and senior education advisors will be increased to 220 and 450, respectively, at Level I, and 35 senior advisors, recently be recruited will be trained at Level II. This increase will take place over three years. Good primary teacherp will be promoted as inspectors/advisors, and trained in a two- month seminar at the existing EN 3 in Antananarivo. The 35 Level II inspectors will be trained abroad. (b) The 1,350 local teaching advisors will be re-trained by the inspectors over two years in annual three-week regional seminars. They will, in turn, under the supervision of the inspectors and education advisors, train the 13,200 headteachers. (c) Means will be introduced whereby the inspectors and the senior and local education advisors can work with teachers on a regular basis. The inspectors will have access to the two vehicles to be provided to each of the six regional administrations, although vehicles will not be provided for each inspector or advisor. The project will also finance per diem allowances and travel expenses for local private transportation, while small numbers of bicycles, motorcycles and other transport equipment will be provided on a pilot basis to sub-regional administrations. 3.24 This component will receive technical support from French Cooperation in the form of three education advisors at each regional inspectorate. Project funds will finance rehabilitation of facilities for training; furniture and equipment for these facilities and equipment for the regional inspectorates; 2 man-months of technical assistance; 420 man- months of training abroad for the 35 Level II inspectors; the organization of local seminars; travel expenses and per diems for the supervision of teachers; and the operation of the equipment provided. 3.25 Enhancing Teachins Staff Effectiveness Through Pre-service and In- service Training. Insufficient training for Levels I and II teachers is a main cause of low education quality (paras. 2.10-2.11). It is urgent to begin training new Level I teachers, to improve initial training of Level II teachers, and to train the teachers already in service who are  - 21 - inadequately trained. Under the coordination of UERP, the project will support establishment of pre-service training for Level I teachers, strengthen pre-service training for Level II teachers, and develop in- service training, to be carried out over a long period, for teachers at both levels. These training schemes are described below. 3.26 Pre-service trai!iina. The annual medium-term need for new primary and lower secondary teachers (Levels I and II) is about 600 and 300 respectively. This estimate assumes some improvement in the efficiency of use of existing teachers and is based ont an annual attrition rate of about 12 per year; an annual increase of 3.5-4.02 in the numbers of children entering primary school (the age group is growing at about 3.5Z annually), balanced by reducing repetition; a slow annual increase in Level II enrollment of about 1Z; and progressive replacement of temporary SN teachers to increase quality at Level II. The forecast 32 annual increase in the national budget over the medium term, together with attrition and economies in the use of teaching and non-teaching personnel, are expected to provide sufficient funds for MINESEB to recruit the 900 needed. Government also plans for some of these teachers to be recruited by the private sector. Government plans to operate the training colleges financed by CRESED at full capacity, and to ensure that at least 600 qualified Level I and 300 qualified Level II teachers are recruited annually when the facilities are completed. (a) Level I. Pre-service training will be offered at six regional teacher training colleges (EN1), each to provide a two- year program for an annual output of 100 teachers at full capacity. Selected buildings, most of which have recently been used for training Level II teachers (see below), will be rehabilitated, three in each phase of the project. Teacher training programs that have already been prepared will be reviewed by specialists from UERP, who will organize the training of EN1 teacher trainers. Every effort will be made to minimize the costs of this component by using existing buildings and by retraining a substantial number of the teaching staff of the six EN2 to work in the EN1. The project will finance rehabilitation, furniture, and equipment, including two vehicles for each EN1; 138 man-months of local training; and operating expenses for the EN1. (b) Level II. Until 1989 a poor-quality three-year Level II teacher training program was offered at six colleges. The program is now being consolidated into one national training college, EN2, in Antananarivo. Recruitment for EN2 will be at the baccalaureate level (instead of the lower secondary qualification previously required); 300 student teachers per year will be trained in a two- year program, approximately the same number as in recent years. * existing EN2 in Antananarivo will be rehabilitated. The project (in the second phase) will finance rehabilitation, furniture, and equipment, including two vehicles; 3 man-months of specialist services for the preparation of the training program; 115 man-months of local training of EN2 teachers and 3 man-months for visits to comparable institutions abroad; and the i-acremental operating costs of the EN2 (in both phases of the project since it will start operating on a reduced scale in existing premises).  - 22 - 3.27 In-service Training of Level I Teachers. Since no training schools for Level I teachers have functioned since 1972, about 27,000 of the 32,000 public sector teachers have received insufficient training. A long-term program for in-service teacher training has accordingly been prepared. Over 10 to 12 years. the skills of all primary teachers will be upgraded by an integrated program of three levels of training: (a) on-the-job training under the guidance of head teachers, who will be prepared for this purpose under the project (para. 3.23). tb) a six-week upgrading course at 64 training centers, under the direction of inspectors and education advisors, to be prepared under the projact (half in each phase). Forty teachers will eventually be trained at each center for an nnual output of about 2,500. (c) permanent monitoring by education advisors and headteachers. 3.28 The In-service training program will be prepared by UERP, and its implementation will be supervised by the Director of Basic Education and the MINESEB regional directors (DPESEB). The project will prepare the elements necessary for this long-term program to start; initial operation of the program will be included, but its full-scale functioning will be incorporated in subsequent projects in support of the education development program. The project will therefore supportt the preparation of training programs through UERP; the training of the staff who will execute the in- service training; rehabilitation of facilities; provision of teachers' guides and other materials; and initial operation of the program. 3.29 CRESED would finance, split between the tWo phasess (i) the rehabilitation of 64 training facilities; (ii) furniture, mostly beds for student boarders; (iii) equipment for the training centers; (iv) 12 man- months of technical assistance; (v) 60 staff-months of local training; (vi) incremental operating costse and (vii) travel and subsistence for the inspectors, education advisors, and teachers undergoing training. 3.30 In-service Training of Level IT Teachers. Because the existing EN2 have been training 200 teachers annually, many of the permanent teaching staff at Level II are better trained than those at Level I. instead, the main problem is that about 2,500 of the 6,750 Level II teachers are young students doing their national service (SN), who teach for only eight months, following a few weeks' orientation, before going to university. It is therefore difficult to adopt a training strategy for them similar to that proposed for Level I teachers. There is already a training framework based on School Education Committees, bringing teachers together regularly, for short periods, to discuss education subjects and new techniques. Because of budget constraints, the committees do not function properly, and some do not meet. 3.31 The training program for Level II teachers will be organized around education committees for groups of schools, revitalized as Inter- school Education Comnittees (Comites Pddagogiques Inter-