Angola - First Education Project

Docunmwt of The World Bank FOR OFcIAL USE ONLY MICROFICHE COPY Report No. P- 5724-ANG Type: (PM) ReportNo. P-5724-ANG ROUAG, D. / X35524 / J7 061/ AF3PH MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 11.9 MILLION TO THE PEOPLE'S REPUBLIC OF ANGOLA FOR A FIRST EDUCATION PROJECT MAY 7, 1992 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Currency Equivalents Currency Unit = Kz US$ 1 = Kz 550 Kz 1,000 = US$ 1.8 Measures Metric Bitish/US Equivalent 1 meter (m) = 3.28 feet I square meter (sq. m) = 10.76 square feet I kilometer (km) - 0.62 mile 1 square klUometer (sq. kmn) = 0.39 sq. mile Glossar and Abbreviations DCE Division of Construction and Equipment GEPP Gabinete de Estudos, Planos e Projectos (Office of Studies, Planning and Projects) INIDE National Institute for Educational Research and Development MOE Ministry of Education PCC Project Coordination Committee Fiscal YearSchool Year January 1 - December 31 September-July  FOR OMCIAL USE ONLY ANGOLA E=S EQUCAI= PROJECr CRDr AND PROC SUMAY Borrower: Pwople's Republic of Angola Beneficiary: ~Ministry of Education JAmount. SDR 19.9 mUllion (USM7.1 mMlon) lbrms: ~~~~Standard with 40 years, maheit Onjending Tems Not applicabIe Financing Plan: US$ mQiBn Local Foreign Total - MA 1.8 25.3 27.1 - Governmenty- 4.1 - 4.1 TOTAL S.9 25.3 31.2 Economic Rate of Retur P Not aplpucable Staff A=raisal Kmpr Report No. 10338-ANG knkfi:1nr~: M13IsRD No. 23598 fin gOf which US$1 mi$on in taxes and d mties. IThis document has a restricted distribuon and may be used by recipieF ongn in the perfomance of their offlial duties. Its contents may not otherwise be disciosed withoip W%.4, Bank authoriztion.|  MEMORANDUM AND RECOMMNDATION OF TE PEIDENT OF TBE INERNATIONAL DEVELOPMET ASSOCITION TO TB EXECtJlVE DJRECTORS ON A PROPOSED CREDIT TO THE PEOPLE'S REIBIC OF ANGOLA FOR A FIRST EDUCATION PROJECT 1. I submit for your approval the following report and recommeon oa proposed developmt credi to the People's Republic of Angola for SDR 19.9 million, equivalent to US$27.1 milion on standard IDA teams with a matury of 40 years, to help fiance the rehabilitation, revaliation and progressive expansion of the education system. No co-financing is anticipated under this credit. 2. Angol, with a populaton of about 10 mllion, growing at an annual rate of 2.8 percent, is potentially one of the richest countries in Africa In terms of its endowment of natural resource (e.g,. petroleum, Iron, manganese and diamonds). At the same time, its economy is one of the most disrted In the continent. Since independence in 1975, the country has developed an economy higbly dependen on petroleum. The oil sector represents about half of GDP. GNP per capita, estimated at US$620 in 1990, is closely linked to oil prices. In 1990, oil export eamnings were about US$3 billion, equivalent to more than 90 percent of the counry's total export emings. On the other hand, the non-oil sectors' peformance has been poor; it is estimated that their per capita growth has been negative since the early 1980s. The performance of agriculture is a case in point: an important net exporter of agdcultura products before independence, Angola has in recent years been increasingly dependent on food imports and food aid to feed its urban population. The capacity utilization of istig ma ctg industries has been severely affected by the lack of inputs, spare parts and mainteance services, as well as by a distorted policy environment. 3. Angola's economic decline since independence Is largely explaited by three factors: (a) a 15- year civil war, which has made much of the countryside too inset for agdcultura production and transport required heavy mityexp (contruting to chronically large fiscal deficits, despite substantial retnues from oil), and destroyed part of the economic and social infrastructure; (b) unusually severe human resource constraints, due to the massive exodus of Portuguese settlers at independence; and (c) misguided economic policies that have created a highly distorted system, with a formal urban economy Oargely public) managed by administrative controls, and a large parallel economy. 4. The social conditions prevailing in Angola are poor even by African standards. This is the combined result of the civil war, inappropriate policies, rapid migration to the cities, and emigration of skilled manpower. The child mortaity rate is 292 per thousand, almost twice the sub-Saharan Africa average (157); life expectanq at birth is eimated at 44 years (compared to 51 years for sub- Sabara Africa); less than 30 percent of the population has access to health services and safe -watr; and despite the Governmeat's emphasis on education, the gross enrollment rate in the first level of basic educadon s estdmated at only 52 percent. While women's access to basic educational opportunities has expanded, the current level of literacy among women'is still low (33 percent). Regional disparites in soci conditions are substanti s a result, in particular, of war-induced destuction. Poverty in rural areas is acute. In addition to the stagnation in economic activity, the main factors contribung to ural poverty are the interrupdon of normal links to the cities, the drastic decline of Inter-gional trade, a lack of incentive goods, and poor access to social serices.  -2- 5. Of Angola's population of 10 million, 45 percent are under age 15. Amoni its labor force of between three and four mllion, it is esdmated that less than 10 percent have completed the first four years of basic education. The struce of the education system follows the Portuguese pattern consisting of basic education (4-2-2 years), mid-level education (3-4 years) and higher education of 4-5 years. Enrollment in basic education is about 1.2 million, with 87 percent in the first four-year cycle. Enrollment in the medium level, main source for primary schools teachers and for mid-and high-level labor training, is about 17,000, of which 6,000 are in tacher streams, less than 5,000 in general secondary and the rest in technical education, while about 6,300 are enrolled in hiA education. The teaching conditions at all levels are not-conducive to quality and achievement, most of teachers a-e.underqualifled and practically not supervised. Most of the schools are in a state of disrepair and lack furniture and teahing mateials. The inadequate and inappropriate physical conditions of the leaming/teaching process at all levels are compounded, at the basic education level, by the common daily triple-shiftsystem cwsed by the scarcity of classrooms, with its negative impact on teaching dme. The capacity for magemen of the edrcation system is weak at the central level for the development of policy, investment programs, and opeational procedures; and at tme pro-incial level for implementation and monitoring. In 1991, the share of education in the Government's recurent and inestmen budgets was about 12.5 and 5.0 percent, respectively. 6. 1MM. The main issues in general education are: (a) inadequacy of the current education structure, mainly its ability to achieve permanent literacy with four years of basic education; (b) low quality of existing teaching/earnig conditions; (c) weak sector management capacity; (d) feeble development of post-bsic education in light of fte need to strengthen human resources in a coutry severely constrained in this area; and (e) the low level of financing. The issues of the pre-and in- service traing of the labor force will e addressed tho planned sector work and a fol-low up project. = The rehabilitation and development oi the education sector in Angola constitute a major challenge, particiarly during a period of much needed stabilization of the economy. The first porty is to elimiate major Ieffiiencies, build up the capacity of the Ministry of Education to manage the system and prtpare a comprehensive rehabilitation program for the sector. In 1990, the Govenment decided to establish a new education structure, consistng essentally of the itroducdon of a primary education cycle of six years, followed by lower and upper secondary levels of three years each. In 1991 and in a major departure frm established policies, the Govenmuent made legal provision for the opening up of private educatioL During credit negotiations, the Govenment provied IDA with a draft policy statement on the education reform confirming Its commitm to the adjustment of the education system along the lines agreed with IDA during appal, including application of the new stucture in all the new schools, independendy of their financing source, and limitation of daily shifts to two in these schools. ZPoect Obietives 7. The project objectives are to help the Goverment start correcting the major inefficiencies in the education sector and prepare a stategy for its overall rehabilitation, revitalization and progessive expansion. The project would help Angola by (a) setting up a demonstration model for education through improvement of the quality of iputs and physical conditions of teaching while implementing the new education structure: (b) nhcing sector maagement capacity; (c) improving  -3- the quality of training in economics and strengthening the formation system of the university and (d) preparing a ste for the overa reiltation, revitaizaion and progressive expansion of the education system and undertalng preparatory work for fure investments. 8. The project would consist of the folowing components: (a) setting um of a demonstration model bol through improvement of the quality of inputs and adaptation of the education structe through (i) s ening of the National Institute for Educational Research and Development NDE) to enable it to cary its fucin of producing relevant curicula, teating matelals and examinations and evaluation systems; (i).provision of texdbooks to the demonstion and.secondary schools; (ii) establishment of a prototpe Primary Teacher College; and (iv) rehabiliation of seven and construction of six primary nd secondary schools; (b) steof he Ministr of Education's manaFement capacit through () training of sector administrators; (n) improvement of the cetral and provinci insdtiuons' capabiities for planning, budgeting, and for human and matal resources management; (c) impmv the teaching of economics andm of the miiversithrough () tainig of staff and provision of quality iputs to the faculty of eonomics, and (i) rationalizing and strengthening the university management information system; and (d) sttdies and inof fture hnves