Costa Rica - Financing of public investment programs 1965-1968 (Vol. 2 of 2) : Annex 3 : the educational system of Costa Rica and its finances

RETURN -TO REPDORTS DESK RESTRICTED :WITHIN ONE WEEK WH156 Vol. 2 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 The report may not be published nor may it be quoted as representing their views.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 T'HE FINANCING OF COSTA RICA'S PUBLIC INVESTMENT PROGRAM 1965- 1968 VOLUME II ANNEX III: THE EDUCATIONAL SYSTEM OF COSTA RICA AND ITS FINANCES February 15, 1966 Western Hemisphere Department  CURRENCY AND OTHER EQUIVALENTS U.S. $1 = 46.62 (colones) 1 colon = U.S. $0. 151 1 quintal 100 lbs.  TABLE OF CONTENTS Page No. Summary and Conclusions i Introduction PART I - The Educational. System 1 1. Primary Education: Present Characteristics and Resulting Problems 2 2. Secondary Education 8 A. General and Academic Education 9 a) Present Characteristics 9 b) Resulting Problems and Suggested Solutions 11 B. Technical Education 13 a) Main problems 15 b) Necessary solutions 16 3. Vocational Training - The National Institute of Apprenticeship 16 4. Higher Education 17 A. Non-University Higher Education 18 B. University 19 a) Structure and Enrollment 19 b) Some problems 20 PART II - Education Finamcing 23 A. Past Effort 23 1. Analysis and Description of Past Effort 24 2. Returns for Past Efforts: Cost per Graduate 27 B. Future Expenditures 31 1. Recurring Expenditures 31 2. Analysis of the Four Year Investment Plan for Education 37 ANNEX 1 - "Manpower Considerations and Additional Investments in Education and Training" ANNEX 2 - "Statistical Tables"  SJMvIARY AND CONCLUSIONS i. Since the midd:Le of the nineteenth century, Costa Rica has tradi- tionally maintained an educational system from which the mass of the popu- lation would have a chance of benefiting, at least at the level of primary school. This has helped to make Costa Rica one of the more democratic societies in Latin America and has given it a better human endowment than the majority of Latin knerican countries. Nevertheless, there is very substantial room for improvement in the education system, especially if account is taken of the sums, relative to Costa Rica's income, spent on education. To maintain both its tradition of high-level primary-school enrollment and its relatively low pupil/teacher ratio, Costa Rica has been devoting some 30% of its budgetary resources and 5% of its GNP to education. Seventy-five percent of these sums have been concentrated on primary edu- cation, almost all of it for salaries. ii. Ninety percent of primary school age children are enrolled. Yet, the lack of buildings and the insufficient use made of the large teacherst force cause 40% of schools to offer an incomplete six-grade cycle and have led to the general use of the double shift system. One fifth of enrolled pupils are deprived of the opportunity to complete their primary education while a majority of the enrolled children are not offered the required hours of school work and activities. iiio The rapid growth of secondary education has not been accompanied by a corresponding increase of qualified professors. Construction of new buildings and supply of equipment have also lagged behind. Given the steady growth of primary school graduates, enrollment facilities of second- ary education are already insufficient. As a consequence, the double shift system is also being introduced at the secondary level to the detriment of the number of school hours made available to students. iv. The curriculum at both the primary and secondary levels is geared to the requirements of a classical and traditional system, the main objective of which is the attainment of a University education. The content of prima- ry and of secondary education is not suitable for all pupils and students whose education will be limited to these levels. v. The deficiencies in the physical facilities and the lack of adap- tation of the curriculum to the contemporary rural society of Costa Rica generally explain the low output of the entire educational system. Thus the high enrollment ratio hides the fact that the number of repeaters is very high and that out of 1,000 children entering primary school 170 gradu- ate six years later and 16 graduate from secondary school eleven years later. This makes for an unusually high cost per graduate. Thus, the large expenditures on education, mostly for primary school teacher sala- ries do not give the returns which could reasonably be expected of the system. vi. The Government has wisely shown its awareness of the shortcomings of the present educational system. This is reflected both in the Four-Year  - ii - Investment Plan 1965-68, which provides for more than the double of past yearly investments for school construction, and also in recent curriculum and structural reforms in secondary and vocational education. If the pro- posed investments, however, are to bear the expected fruits without lead- ing to a disproportionate growth of the education budget, the reforms already enacted, as commendable as they may be, need to be accompanied by further and substantial changes. vii. These changes should be based on a new conception of the education- al system adapted to the demands of its society and to the requirements of its economy. The present subject matter of primary education should be adapted to the environment of Costa Rica; this together with revision of the present end-of-year examination system and of the curriculum should lead to a marked increase in the output of primary schools. This improve- ment in output will make more teachers available for new pupils at no additional costs and will considerably reduce cost per graduate. Larger classes per teacher and better use of the teaching force in primary schools will in turn reduce costs per pupil. As personnel and resources become available these should be directed towards secondary education which should then improve its own output and, more important still, the quality of the education it provides. Vocational education should become the training ground for the future technical sub-professional personnel of the country, and should also give its students the access which they do not now have to higher education. Should this become possible, students will be given a motivation which is now lacking, and which is probably the main reason for the present low output and very high graduate cost in vocational schools. viii. These measures, which will enable the educational system to become more productive, will not necessarily lead to global additional expendi- tures. They imply, however, fundamental decisions calling for less concen- tration of efforts on primary education and greater emphasis on secondary schools, which will then be better prepared to meet the consequences of past enrollment growth Eat the primary level and offer quality education. ix. In addition to the PlanTs provisions, an investment program over the next four or five yeiars which would be designed to eliminate the pre- sent deficiencies in physical plant should in addition include the follow- ing (Annex I): 1. Construction and equipment of 250 additional classrooms and of 280 specialized rooms (science laboratories; work- shops and libraries) for secondary schools; 2. Establishment of a Higher Pedagogical Institute for research ancd for training (secondary school teachers; school directors and supervisors; educational adminis- trators and planners).  - iii - 3. A rolytechniic Institute (Industry and Business Mlanage- met.t) and an Agricultural Technical Institute for post secondary training of sub-professional technicians in those branches. x. Items 2 and 3 above could be examined in the light of the re- quirements of the five countries in the Central American region. xi. The implementation of the reforms suggested here would not reduce the projected level of public expenditures over the period 1966-68. The reforms would definitely permit a reduced rate of growth of expenditures for primary education, but the higher enrollment in secondary education would absorb the difference. Beyond 1968, the implementation of the reforms would probably permit both a reduction of the rate of growth of public expenditures for education and an improvement in the quality and output of the system. To maintain and substantially improve the education- al system, however, the Government will in the foreseeable future need to continue allocating a high proportion of its budget to education.  INTRODUCTION Tralitional]jr Costa Rica has maintained high educational standards and its achievements stand out from amongst the other four Central Ameri- can republics. Since thea middle of the 19th Century, the Government has followed a policy of offering education on the widest scale and has always found the necessary teachers to carry it out. To maintain this policy, Costa Rica has had to carry out a two- fold effort: catch up with the past deficit of unenrolled children, and keep up with demographic growth. The latter is one of the highest in the world - 4.4% yearly average between 1955 and 1961 for the entire population and 6.1% for the 6 to 13 year olds who represent half of the total popu- lation. Today, Costa Rica has almost reached 90% enrollment of all pupils of statutory primary school age and its rate of literacy is one of the highest in Latin America. Within five years it will have enrolled the entire primary school age population and aims, by then, to offer second- ary education to a third of the youth of the corresponding age. This constant drive towards generalized education, almost en- tirely borne by public schools, has meant that a large share of Central Government resources needs to be set aside for education. Thus, education has represented, for some years, approximately 30% of total government spending. Costa Rica is one of the ten nations in the world spending most on education out of public funds. The increase in government expenditures for the education sector has been one of the main factors in the rapid rise of government expenditures and the ensuing fiscal problem of Costa Rica in recent years. This report will assess the results obtained out of this very considerable financial effort, and examine the future outlook for the educational system and the expenditures devoted to it. What system these funds help support and whether the returns are in proportion with this considerable effort are questions which this report will attempt to answer. Part I THE EDUCATIONAL SYSTEM The overall responsibility for pre-primary, primary, secondary and teacher training (Normal Schoolsl),education falls within the responsi- bility of the Ministry of Education./ Administration and supervision is in the hands of former teachers who make up 20 percent of the entire teach- ing force. In 1963 the Educational Planning Office was established with 1/ See Diagram (Annex 2 - Statistical Tables)  - 2 - the twofold purpose of integrating the growth objectives of the various branches of education within a single plan, as well as acting as the edu- cational sector unit of the Government's central economic planning organ- ization. The Four Year 'Investment Plan 1965-68 is the first made by the Planning Office. The University receives a governmental subsidy but is an autono- mous body indirectly linked to the Ministry of Education through the presence on its board of the Minister of Education. Conversely, the Rector of the University sits on the Educational Council which, under the chairmanship of the Ministry of Education, lays down basic policy and general directives. The Ministry of Labor created the National Institute of Apprentice- ship which is however governed by an independent Board on which sit both the Minister of Education and the Minister of Labor. 1. Primarv 2,ducation: Present Characteristics and Resulting Problems Nlhile pre-p rimary school is optional for 5 to 6 year olds, primary school is compulsoryJ for a duration of 6 years to all children aged 7 years and beyond. Primary education is largely a government responsibility: private schools only represent 4% of total primary school enrollment. i) Curriculum and High Selectivity of System The curriculum of primary education is classical and the subjects as well as the work habits taught are geared to entrance in second- ary general (academic) education. Mathematics, Spanish, Sciences, History and Geography are taught from the first through the sixth grades, with yearly examinations. The pupils in Costa Rica do not find in the classroom a reflection of the predominantly rural society they know. If they graduate, they are only equipped to apply for admission to secondary schools. If they neither graduate nor go on to secondary education, they do not take back to their environment practical knowledge which could help them participate more efficiently in either traditional agri- cultural activities or in the application of modern methods meant to accelerate economic development. The curriculum of primary schools should give more room to practical subjects and while not becoming so "ruralized" that its pupils would be cut off from access to secondary education, it should offer a terminal education for those three-quarters of its pupils who are not likely to proceed to the next level. Such a new approach would call for research before a new curriculum could be devised. 1/ Fundamental Law of Education of 1957.  In 1963 over bO% of primary school pupils had to repeat end-of year exams;this figure was close to 60% for first graders of whom a fourth had to take examinations in History and Geography. The high failure rate, particularly in subjects with little signifi- cance to very young children, is in part a reflection of the attitudes of teachers. The high selectivity is of course con- sistent with the aim of the System, which is largely to provide a screen for candidates for secondary schools rather than as a means of offering terminal education to most children attending primary school. ii) High Enrollment Growth and Ratio Primary school enrollment has grown considerably during the 1950-60 decade, when it achieved a yearly average growth rate of some 30%. Since 1960, when it started anproaching a high ratio of enrollment to the age group, it slowed down to a yearly average increase of 7%. This is higher than the growth rate of the age group (Table 1) and the enrollment ratio is thus still increasing. In 1964, 265,000 pupils were in primary schools (Table 2). The high enrollment ratio attained represents a major achievement. This ratio ought normally be determined only on the basis of the legal duration of six years. Thus, when full count is made of the corresponding six year age group (7 through 12 year olds) in public and private primary and secondary schools, Costa Rica has reached 90% enrollment (Table 3). iii) Satisfactory Supply of Teachers, Unsatisfactory Distribution and Low Workload The number of teachers has always been high as reflected by pupil- teacher ratio of less than 30 until 1956 and slightly over 33 today (Table 4). Over three-quarters of all teachers are now graduates of most secondary teacher-training establishments. More than two- thirds of them are women. The supply of teachers has thus been proportionate to enrollment growth and the number of qualified professionals among them has been increasing still more rapidly. This has resulted, over the years, in an education of good quality, albeit traditional, making Costa Rica one of the more educationally advanced countries in Latin America. The retirement program offers pensions to teachers having taught 30 years or even 25 years.!/ Given the average age of graduation 1/ For those having taught 10 years out of the 25 years in "unhealthy" areas.  from a teacher-training school (approximately 20), it is not un- common to find the most active and experienced staff leaving the profession at the age of 50. This factor, as well as the fact that most teachers are women and often take leave or abandon the profes3ion, explains the high turnover. To make up for this turnover the demand and supply of teachers continues to be con- siderable - over 500 yearly. The placement of the existing large number of teachers throughout the country's schools is designed to meet the needs of new classes as these are set up to meet enrollment growth. Thus, in 1962, 7000 teachers were assigned to over 10,600 classes. Since the number of classrooms is considerably inferior to the number of teachers, most primary school teachers tend to have a light workload. As a rule, a teacher operating in a two-shift primary school only works half days and the total number of hours spent on an average by all primary school teachers during the weel ranges between 22 and 26. Holidays and regular vacations take up a considerable amount of school time leaving approximately 180 days for actual teaching yearly. lVhile this would not be inadequate if the daily workload were not low, it does represent a number of work hours per year which allows for some increase. iv) Incomplete Education A phenomenon of widespread impact is the lack of sufficient class- rooms. Thus, in 1962, there were some 5,900 classrooms for 10,600 classes. In 1964 only 43% of all primary schools offered a full six-grade cycle. These full cycle schools, however, were attended by 80% of enrolled children. Most incomplete schools are in the rural areas where the population is scattered. The lack of sufficient school construction and the limited teacher workload has led to a serious situation. Traditionally, the so- lution to enrollment growth has been to match each new class with a new teacher. But, firstly, as buildings are insufficient in number and as many teachers are reluctant to leave urban centers to attend rural schools, these schools remain with incomplete grades. Secon(ly, these limited facilities have led to gradual introduction of the two-shift system. Thus the same classrooms are used twice a day, each time with a different class and a differ- ent teacher. This leads to giving each child 22 to 24 school hours instead of 30 to 34 weekly. In the first situation teachers are insufficiently spread out and in the second they are over-concentrated. In both cases they are under-utilized.  a) Incomplete Schools: The solution to this problem lies in having the same teacher look after two or more grades simultaneously. As it is, most schools offering a full six-grade cycle have a total of three to five teachers which means that many teachers accept to handle several grades at the same time. Yet this practice, which would gradually do aw+ay with incomplete schools, is not widespread enough. Thus, one-quarter of schools with three teachers and one-tenth of those with four teachers are still not offering a complete education. Only one-fifth of the two- teacher schools offered a full cycle, although one-half of them went up to the fifth grade. If teachers in all these schools accepted to look after more grades simultaneously a complete education could be given to pupils attending them. Furthermore, there are only 13 one-teacher schools in the whole country offering a full six-grade cycle, while 71 one- teacher schools stop at the fifth grade and 200 at the fourth grade. Those 271 teachers should also offer a complete cycle. The single-teacher school is not an end in itself, but is a necessary means in a predominantly rural country with a dis- seminated population and small number of children in each school. In addition to making these schools into full-cycle schools, another solution is under consideration by the Ministry of Education. 'It consists of establishing "nucleus" schools ("nucleo natural") adapted to a commercial area of 1 to 1-1/2 mile radius wherein schools offering the first grades only would be institutionally linked to the full cycle central or "nucleus" school which would offer the other grades. The Director of this central school would also be the Head of all the incomplete "feeder" schools. Finally, retirement regulations should limit the minimum retirement age, with the necessary exceptions, to 60. Thus, the State could, by increasing on average by one-quarter the duration of the career, reduce by that much the output of teacher training schools. The present provision, which allows teachers retirement after 30 years' service with virtually full pay, would have to be changed. b) Two-Shift System: Admittedly, while the number of classrooms is insufficient, the pupil-teacher ratio shows that more children than is the case now could be looked after by the same teacher in the same class- room. Thus, if the ratio were to increase from 33 to 40, 25%  more children could be absorbed in the existing facilities. Given the qualifications of the teachers this should not be at the detriment of the present quality of the System. At the same time, if the teachers' workload were increased from the present average of 24 hours to 30 hours, 255 more time could be allotted to children who today do not spend more than 22 hours total in school. This would be possible only to a limited extent under the present two-shift system. The first suggestion is to be taken, together with (a) above, as a method of using the teacher's time more intensively than is the case at the present. The second one is meant as a qualitative improvement of the present emergency system. Such reforms may meet with objections from the teaching profession. Most teachers are women and, as wives and mothers, cannot accept to be shifted anywhere to fit the convenience of an objectively conceived plan. Likewise, an increase workload without corresponding additional pay may detract from a profession sought as much for its advantages as for its responsibilities. v) Low Output of the System (Tables 5 and 6) The "apparent" output ratio (number of graduates related to number of entrants six years earlier) of public primary schools is low: 33.3% in 1964. The difference between urban and rural school ratios (51.5% and 23% respectively) is large and can be explained in part by the absence of complete schools. A more accurate reflection of the situation can be found in the "true" output figure (following a group, or cohort, from year to year throughout the system and discounting both past repeaters from preceding cohorts and present repeaters as they remain behind) which is 17.4% (12.4% for rural schools). In other words, for the country at large, less than 18 children out of 100 who entered school six years earlier graduate in the prescribed time. This figure reflects the serious impact of two phenomena on the system - repeaters and drop-outs. a) Repeaters: This is the most considerable factor. The combination of high enrollment rate (90%) with a low output means that children are remaining in the system for a duration longer than the statutory six years.  - 7 - Although the proportion of repeaters has been decreasing over the years, in 1964 it represented 17% of both urban and rural schools enrollment. But many of them were double and triple repeaters. The "true" output figure reveals that half of 33 pupils (out of 100 starting the first grade) reaching the sixth grade after six years of studies is made up of repeaters. Since 83% of the pupils do not finish primary education in the prescribed six years, it follows that either the curriculum concentrates a material that should better be given over seven or eight years, or that the methods used to teach it are in- adequate and the motivations among pupils remain undeveloped. In either case, the System and the perpetuating of it are responsible for this situation, not the pupils. Possible remedies lie in curriculum changes (concentration on reading and writing for the first two grades) and in the replace- ment of end--of-year selective examinations (except for the first two years when reading, writing and arithmetic knowledge should be thoroughly checked) by "progress-tests" throughout the school career. Supervisors should investigate classes where the out- put is inferior to 90% and cases of double repeaters. Such changes would lead to greater promotion, but would not be to the detriment of quality if the subject matters are to be adapted to the actual age of the children and their difficulty scaled to correspond to their growing maturity. The teachers now looking after repeaters could usefully be shifted to larger terminal classes. b) Drop-outs This other phenomenon also accounts for the low output. It represents a yearly loss of some 10% of all pupils from the second throuigh the fifth grades. Approximately 40% of pupils leave schooL before completion of the fourth grade, making them potential i:Lliterates and 50% drop out of the system without a complete education. As this usually affects pupils who have been past repeaters and who are often olderg than the prescribed maximum age of 12, it is not reflected in the high enrollment ratio. This drop-out figure includes the number of children who cannot continue school for lack of educational facilities (20% of enrolled children attend incomplete schools) and those who abandon their studies through their own or their parents / More than 20% of rural pupils and 12% of those in the city have from 2 to 10 years more than the normally expected age in their grade.  - 8 - voliti,n. Very often the decision to drop out is caused by the p. )ilts unsuccessful academic performance (subsequent to doubl or triple repetitions). No surveys have been made to deter iine the causes for drop-outs in Costa Rica.1 Although causEs such as wasted earning power, malnutrition-/, cost of supp'.ies, etc. play an important role, the basic reason for it ] Les in the high rate of repeaters. A r duction in the proportion of drop-outs thus depends basically upon the extent to which the curriculum is changed and smoother progression from grade to grade is ensured while, at the same time, incomplete schools are made to offer a full cycle of education through a better distribution of teachers. vi) Training of Supervisors and Other Senior Staff The task of adapting new teaching and grade-promotion techniques will require constant supervision and control. This is the res- ponsibility of the school director, his administrators and most important, of the regional supervisors ("inspectores"). Yet, this senior staff, made up of former teachers, still considers primary education as a means and not an end for the great majority of students. The re-training of this personnel is, therefore, a priority project if the reforms required to modernize primary education are to be effective. An institution should be established which should concern itself with preparing the school directors and administrators as well as of supervisors for their strategic role. (See Annex). 2. Secondary Education Secondary education, the content of which was recently reorganized, offers two main streams of five-year duration. One stream is made up of aca- demic ("general") secondary schools ("liceos" and "colegios"), while the other is made up of vocational schools which offer commercial, agricultural and industrial education. All secondary schools have two cycles: one of three years ("ciclo basico") which is general, its content being the same for both academic and vocational schools, and a second cycle of two-year duration, which for academic secondary schools can be further oriented either in humanities or in sciences while for vocational schools it becomes special- ized. The secondary school reform now in its second year will gradually affect, by 1969, the entire secondary school system. The main object of this reform is to shift to a broader and more diversified type of education which will include a greater share of laboratory work, worshop exercises and physical education. The courses themselves have been considerably stream-lined and in some cases (mathematics) fundamentally reorganized. 1/ It seems that the school-lunch program launched by the Government and UNICEF, for 30,000 children in 125 schools, has brought about a marked improvement in school retention.  - 9 - Finally, a council has been established in all secondary schools for the purpose of reviewing individual cases of students considered "failed" at the end of the course. Professors responsible for not passing the students are usually expected to air difficulties with the director of the school and other members of the council. Since 1949, when only 2.3% of the corresponding school age group was enrolled in secondary schools, a massive effort has been made to develop this level of education. From 1950 to 1955 the school population grew from 6,300 to 15,000 and almost doubled by 1960. In 1964 secondary school en- rollment (including vocational) was slightly over 45,000. This represents a yearly growth of 15% to 20% between 1950 and 1960 and of 8% since then. At present, 18/o of the school age youth is in secondary schools. A. General and Academic Education Up to 1955, half of secondary school students were in private schools but since 1960 this proportion has fallen to one-third. Public schools are free and the increasing number of students attending them speaks for the gradual democratization of education in Costa Rica. a. Present Characteristics i) Classical education and high selectivity Just as primary education is basically conceived as a screening device for admission to secondary schools, so are the latter designed to meet the requirements of the "Bachillerato" which opens the door to the University. As this diploma is conferred on those having passed an examination based on knowledge of the classics and on traditional scientific theories, the curriculum leaves little room for individual experience gained from library research or laboratory work. There are few secondary schools equipped with science rooms and adequate libraries, yet the reform of the system calls for greater diversification between classical and scientific studies. Given the relatively limited number of qualified teachers, the curriculum of secondary education cannot be significantly brought up to date without improved facilities. Since the goal is the "Bachillerato", selection is severe from the first year onwards. In 1963, out of 20,000 students of all grades who took the end-of-year selective examinations, over one-fourth failed. The corresponding percentage for private schools was 12%. ii) Qualifications and workload of teachers In 1958, 35% of secondary school teachers were University graduates; in 1962, 45.4%. While this trend is an improvement, it is obvious that the number of University graduates entering the teaching pro- fession was insufficient to meet the demand. Consequently, more  - 10 - primary school teachers, graduates from Normal Schools (Table 7), have become members of the secondary school teaching profession. Thus, in 1958 there were only 27.6% Normal School graduates while in 1962 the figure reached 31.1%. There was of course a reduction in the proportion of unqualified secondary school teachers having only a secondary school diploma or primary school diploma. But in 1962, there were still 11.5, of secondary school teachers having only a primary school education. MIore striking still is the rela- tive lack of qualification of professors for specialized courses. Thus, most mathematics and science teachers are Normal School 1/ graduates having no particular training in the field they teach- ' University g5duates entering these branches represented a fraction of the total_ *. Nhile it is the mission of the Faculty of Education of the University to train teachers both for primary and secondary schools, only nine were graduated with a B. S. in Education and became teachers from 1962 to 1965 (Tables 8 and 9). The expected growth of secondary education enrollment should call for the training of at least 1,550 secondary teachers between 1963 and 1970. These estimates are probably conservative and the demand is therefore likely to be even higher. The University will probably not be able to meet such a demand and consequently, an increasing number of secondary school teachers will continue to be recruited from Normal Schools. Furthermore, a revision of the curriculum as advocated by the reform needs to be implemented by well trained teachers in sufficient numbers, having at their disposal up-to-date equipment, laboratories, libraries, etc. In addition to the University, such training might be provided by a Higher Teacher Training School ("Escuela Normal Superior") or by an ad hoc training institution as was done for primary school teacher training (National Institute for Professional Training of Teachers: INFPM). The normal teaching workload of secondary school teachers is 30 hours. However, professors in subjects such as science, mathematics, foreign languages, who are few in number, spend on the average between 40 and 50 hours a week in the classroom. In addition, it 1/ The information in this paragraph is quoted from a memorandum dated July 4, 1965, from the Director of the Educational Planning Office to the Higher Council of Education of Costa Rica. 2/ From 1962 to 1965 only 16 University graduates entered secondary schools with adequate preparation to teach physics and mathematics; the equivalent number for chemistry was 9. In that period, 15% of the graduates of the School of Education specialized in mathematics or science subjects, 30% in history and geography and 40% in Spanish and literature.  - 11 - is not uncommon for public school teachers to work, once their schedule is finished, in private schools. This limits further their available time for counselling their students. Some other professors are part-time professionals who only spend a few hours a week teaching. Thus any average workload figure computed on the basis of all teaching staff would be misleading. iii) Shortage of Space The improvement of primary school output (from 21.2% in 1955 to 33.3% in 1964) is making its effects increasingly felt on secondary school enrollment. In addition, the reform of secondary education which, inter alia, calls on the professor to justify before his colleagues his decision to fail a student, has begun to reduce the number of students failed. This will measurably increase the re- tention rate and further expand enrollment figures. Yet, existing facilities are unprepared to meet this increased pressure. Most schools have already reached maximum enrollment; no schools have less than 200 students and most have a student body of 200 to 800 students. Nine schools have an enrollment of over 1,000. Conversely, private schools are small; most hold less than 500 students and only one had an enrollment of over 1,000. b. Resulting Problems and Suggested Solutions i) Low output (Table 10) In 1965, the "apparent" output (fifth-year enrollments related to first-year entrants five years earlier) was 32.h. Instead of improving, the situation has been deteriorating. In 1963 the corresponding figure was 33.2. N'easured in terms of graduates that ratio drops to 22.7. The corresponding "true" drop-out ratio (excluding repeaters) is 11.5. The output is even lower than in primary education: the incidence of repeaters and drop-outs is higher. a) Repeaters: In public schools, the global incidence of repeaters (16.7c of total enrollment) includes first repeaters as well as double and triple repeaters. The cause lies mainly in the system's selectivity. While the latter is more justified at this level than in primary education, it must not serve as a sanction for teachers who are not sufficient- ly qualified and who therefore tend to adhere in a routine manner to the syllabus.  - 12 - Better training of teachers and improved facilities would do much to change the academic and too theoretical content of the cur- riculum and would, consequently, motivate students and teachers alike. Such improvement should affect the passive attitude which now characterizes, in the main, both groups and should lead to reduction of repeaters. In any case, implementation of the Reform seems already to be leading to a very drastic curtailment of repeaters; this is not necessarily an improvement, since professors pass a larger number of their students than previously because they are now obliged to take up the case of failures before the school's review board. b) Drop-outs: The rate of drop-outs is considerably higher (from 10 to 24% depending on the year) than at the preceding level. As students grow older the pressure put on them to start a wage earning ac- tivity is the greater and tolerance to repeating is correspondingly reduced. Furthermore, attendance in secondary schools is a source of expenditures for parents (supplies and equipment, food, etc.) and many must withdraw their children in the course of their studies as they cannot meet such obligations. To the extent curriculum changes and teacher qualifications will help reduce the number of repeaters a lowering of the drop-out rate should ensue. Obviously, financial measures such as scholar- ships, school transport, school lunches, facilities for students living-in etc. would help alleviate still further the tensions causing drop-outs for reasons foreign to the content of the educa- tion. The fact that, output in private schools is 50% superior than in public institutions may be explained both because the system is somewhat of better quality (smaller schools, smaller classes and relatively higher teacher qualifications) and thus produces fewer repeaters and because parents can afford to maintain children in school. ii) Incomplete Education The recent enrollment growth coupled with the absence of sufficient school construction and the scarcity of qualified teachers is gradu- ally leading to the establishment of the two-shift system. Since it deprives the student of the necessary number of hours in school it must not be encouraged in Costa Rica. Although this system is far from being applied in secondary schools as extensively as in most other Latin American countries, the first  - 13 - symptoms are already appearing. Several secondary schools have already one shift in the morning (from 7 to 11.30) for all sections of the first and second years and one in the afternoon (from 1.30 to 6) for all sections of the third, fourth and fifth year. This totals 25 hours of presence in school per week for each student at a time when the Reform has decreed that this figure should be 40 for all day schools. The rapid growth of enrollment and of the retention of the system may lead to a generalization of the two-shift system which inevitably reduces the number of school hours of the students while presumably increasing the workload of the professors as their supply is not as elastic as primary school teachers. The solution here lies in a more extensive school construction progran than has been the case heretofore. Judicious choice as to the lo- cation of the new schools ought to be made on the basis of both existing primary "feeder" schools and actual or potential economic development centers. B. Technical Education Technical education in Costa Rica is run by "vocational" secondary schools both public and private. Only one school actually carries the name "Technical" and that is a private evening school. The first public industrial vocational school was started in 1953 and the first agricultural technical school in 1961. There were in 1963 a total of 35 institutions, a third of which were public, catering to a total of over 7,000 students under the supervision of almost 400 teachers. Seventy percent of the students are in the private sector, but almost all of them attend commercial schools. Vocational, industrial and agricultural education in Costa Rica being a fairly recent venture, a total of only 290 students had graduated between 1956 and 1962 from both public and private schools (while for the same period 53500 graduated from commercial schools and 480 from home economics courses). i) Public Schools (See Table 11) In 1964 there wery,four industrial vocational schools being attended by 1,480 students-/. The number of graduates is growing: 50 in 1963, 2 Three of these schools - representing a student body of 1,230 - are within a 15-mile radius of the Capital City.  - 14 - 119 in 1964 (Ta'ble 12), but their number is stiLl without relation to demandL/. The five agricultural vocational schools in existence in 1964 had a total enrollment of 831 students. Both kinds of schools were developed and considerably strengthened in the last years because of the pressing demand for skilled workers in industry and for extension workers in agriculture. Industrial schools offer courses in wood-work, general mechanics, automotive mechanics, precision mechanics and topography. In ad- dition, one of the schools signed a special contract to train textile mechanics. It also offers special courses for electricians, and radio maintenance and repairmen. It may be said, in general terms, that these schools have been well equipped mostly with the aid of the US bilateral Program-2/. Some of the professors have had actual industrial experience and appear to be devoted to their mission. ii) Private Schools - Private Vocational Schools Both in terms of enrollment and institutions, private schools repre- sent over two-thirds of the entire technical and vocational system. In 1963 over 5,000 students attended 25 institutions. Of that number 4,500 attended 21 commercial schools. These commercial schools are run by private individuals who do not seem to be bound to abide by Government-imposed educational standards and norms. Their students/ teacher ratio is high (41.h). Except for schools giving full five- year courses in accounting and book-keeping prior to delivering a diploma of "commercial accountant", most others limit the duration of their training to two years. In addition to commercial schools, the private sector also ran in 1963 two industrial schools, one agricultural school and one home- economics school. One of the industrial schools called the "National Technical School" is in itself a most noteworthy achievement. It was established in 1949 on the initiative of a single individual who set up a three-year course of evening classes, five times a week for 36 weeks. This course is open mainly to men from 17 to 26 years of age who are already at work. It also offers courses for foremen in industry. L/ It has been estimated. that Costa Ricats yearly industrial manpower require- ments for sub-professional personnel were of the order of 2,500 skilled workers and 500 foremen. 2/ See Part II, footnote p. 32.  - 15 - The pre-rnquisite for entry is a primary school education or its equivaler . Both the content of the program and its pedagogical approach are worthy of emulation by the public sector. The Nation- al Techn cal School has a particularly interesting program in electric ty for which it has well-equipped a laboratory and workshop. In 1965, it was running special courses for electrical specialists for the 3overnment Power Enterprise (I.C.E.) as well as special classes for foremen in industry. The Government has recognized the value of this institution by offering it a permanent building. a) Main Problems i) A Closed System; Whereas academic secondary schools lead to the "bachillerato"r which is a requisite for entrance to University, vocational schools offer no such equivalent diploma and the general education system grants no credit for vocational schooling. Thus, any student having finishec the second cycle of vocational school and wishing to enter the Univer. sity must start, afresh in an academic secondary school in order to qualify with the proper diploma, for entrance to University. Students completing vocational studies find thus no path open to higher edu- cation. Those who seek employment upon termination of studies find that too often their training was not geared to meet the demands of industry. Positions offered them are hardly better remunerated than those offered laborers with almost no formal education. Thus, graduates in general mechanics receive the minimum salary which may vary between the equivalent of 25 and 35 US cents an hour. Agricultural schools do not seem either to be sufficiently related with the requirements either of the agricultural extension services or of the agricultural credit institutions. The existing liaison between industry's and agriculture's require- ments and each school might be strengthened by the establishment of Standing Committees made up of representatives of the school and of future employers. ii) Low Output As the system is of fairly recent origin, full figures on cohorts are still unavailable and as it is growing one cannot readily assess the output of the system. Nevertheless, cohort figures for the "general mechanics" and "automotive mechanics" sections exist from 1960 to 1962 and indicate an output of 18.9'. Both the repeater rate and drop-outs appear very much higher than for general academic schools. The explanation lies in the absence of either educational or professionaL motivations which characterize such a system.  b) Necessary Solution. Two steps appear necessary: first, the "opening up" of vocational schools in the directi)n of higher education by granting a "Bachillerato Tec- nico" to students satisfactorily completing their studies. Such a degree should have the same jualitative value as a traditional "Bachillerato" given students graduating from general academic schools. The proposed technical secondary degree should enable students to apply for admission either to a technological institute or possibly to the University itself provided that the necessary courses in humanities be made up by a student wishing to change career. The second step, which follows, is to alter the structure and content of vocational education to fit a training program of a higher calibre than that which is given at present. Courses administered in vocational schools must be more than manual training apd will have to be more closely integrated with the quantitative requirements1! of industry and agriculture for technolo- gical sub-professional personnel. The secondary education Reform has already laid down the rule that all first cycle education need be given in general academic schools. Second cycle vocational schools must now be adapted to both a terminal education and to technological preparation towards further education. These solutions call for policy decisions followed by swift struc- tural changes, rather than for new investments. On the contrary, present equipment for technical education often obtained from external aid would finally be put to optimum. use. 3. Vocational Training: The National Institute of Apprenticeship (I. N. A.) i) Structure and Program Given the past economic growth of Costa Rica and the development both of its industrial and agricultural production, it became in- creasingly obvious that the absence of qualified or skilled personnel which could hardly be remedied by the vocational education system, would inevitably represent an obstacle in the reaching of the various development targets. Furthermore, the number of unemployed persons in the economically active population made necessary the channelling of their further training through a single agency capable of qualify- ing these persons in such sectors where labor demand was most acutely felt. 1/ The manpower survey planned by the Government and which CSUCA has already studied in global terms will be instrumental in determining the actual needs which vocational education may help to fill.  - 17 - The Governt.ient created therefore in May 1965 a National Apprentice- ship Institute (INA) which would cover both pre-apprenticeship (for young people of less than 14 years of age who either have not had any formal schooling or have only had an incomplete education) and apprenticeship for those beyond that age group and ready to enter the labor force. A third stage ("maestrial") for workers to be trained for foreman level work is also to be included in the program. The Institute is expected to start training schemes at these three levels by the setting up throughout the country of centers which would either be run directly by the Institute or indirectly within certain industries. The Institute is also expected to participate in research on the scientific organization of labor as well as investigate the conditions for improving the general knowledge of workers essential for higher productivity. At this writing the Institute has just begun its activities and has already launched a training program in the sector of construction. While the financing of the Institute will come from a l% levy of the total amount of salaries paid out by private enterprises and autono- mous government agencies, the Executive Power will contribute 01 million annually for the initial five-year period. It intends to apply for aid from the U. N. Special Fund; the request it will submit will amount to $1 million for the next five years. ii) Suggested Additional Measures INA is aware of the danger of conceiving its role exclusively on the basis of short term labor requirements and geared to highly special- ized vocational training. While it is not to compete with formal education INA should, with the help of the Ministry of Education, provide ancillary technical education and some measure of general education(Spanish, Accounting etc.) to its trainees in order to prepare them for further re-training in their professional career should shifts in the economy and manpower requirements demand it in the future. Finally, INA should not be isolated from the general educational and training programn of the nation. The best elements among its trainees who will emerge should be afforded an opportunity to enter higher technical education. This is particularly desirable for future cadres of the Institute. Thus, the doors of institutions of higher techni- cal education should be opened to candidates from INA provided they have received advanced training and have the necessary qualifications (which might be obtained from additional formal education through ad-hoc preparat:ion courses). 4. Higher Education It is customary to include in this category not only the University in Costa Rica, but also the three teacher-training schools as well as the  - 18 - nursest school; one may also include in this category the Institute of Pro- fessional Training f3r Teachers. In 1963, the first five institutions had an enrollment of 5,800 students and a supervision of 520 professors and administrative personnel while the Institute had 2,400 students with 24 professors and supervisors. A. Non-University Higher Education a) Teacher Training Schools cuelas Normales") While the Faculty of Education of the University has a section devoted exclusively to the training of teachers who receive a higher level degree than the one which may be obtained in the Teacher Training Schools, the latter are in fact responsible for training the great majority of the teaching force of Costa Rica, both for primary and secondary educations. The total enrollment for these schools almost doubled in the last six years reaching over 1,200 students in 1965. The two-year course has practically no repeaters and the retention is generally high. The majority of students are, as expected, women. In 1962 there were 7h0 women out of the total 930 students. The curriculum of the Normal Schools does not appear to be directed at developing the dynamic qualities needed for future teachers. The teaching does not put sufficient emphasis on preparing the teachers for the environment - mostly rural - in whicth they are likely to work, and for providing pupils with primary school training which is for many an end in itself. Quantitatively speaking, (Table 7) the number of teachers graduating from Normal Schools is fairly high. From 330 in 1959 the number of graduates has gone up to 550 in 196h. It seems as if the number of teachers required for primary schools is being not only amply met but may well in the near future exceed the demand. Indeed, if primary school enrollment is to grow in the coming year at an average pace of 18,000 to 20,000 pupils and if the pupil/teacher ratio is to be 40 it appears that an average of 500 teachers a year corresponds to forthcoming need. But there are already at present over 400 unemployed primary school teachers in the capital city who do not wish to take up teaching posts in remote areas (in spite of incentive pay which for certain areas represents a 75% increase of the basic salary). The urgent problem being the training of secondary school teachers, further investigation may lead to suggestions concerning measures that might be taken to turn one or two of the present Teacher Training Schools or the National Institute (see below) into secondary school teacher training insti- tutions. The latter should benefit from the fruits of research on curriculum changes. b) National Institute for Professional Training of Teachers As an emergency measure, this Institute was established to re-train unqualified primary school teachers. It has been in operation since 1955 and  - 19 - it is expected that the present or next yearts graduating class will be the last. Considerable thclght is being given to the transformation of this institution originally designed for primary school teacher training, into a re-training Institut: for secondary school teachers. c) Nurses' School In Costa Rica, the number of graduate nurses is inferior to the number of physicians (110 nurses for 634 doctors). This may be explained by the fact that alt'.ough the National Nursest School produces personnel of a very high level, its graduating classes are small (32 in 1963) and many nurses emigrate in search of better remunerations than those offered in their country. Although the quality of the education of the school cannot be questioned in any way, it does appear urgent, in view of the pressing need for nursing personnel, -to consider the advisability of establishing a school which would train highly required nursest aides in a shorter period, without meeting the extremely high standards of the present school. B) University a) Structure and Enrollment Costa Rica had one university which was established in 1843 but was shut down some forty years later because the Minister of Education felt that the country did not have the economic and social conditions which warranted the existence of such an establishment. The national objective was already then to place emphasis on the development and extension of primary education. Although some Faculties such as Pharmacy, Law, Agronomy existed in isolated fashion, the present University of Costa Rica was not established before 1941. It is governed by its own autonomous council andl although its main sources of financing come from the Ministry of Education, it receives support both from other public sources and from some private, national and foreign agencies. Its enrollment, which was originally of 740 students, reached 5,560 in 1964. This growth, which yearly averages 9%, is considerably higher than the corresponding age group for this level of education. From 1941 to 1956 the University allowed each one of its Faculties to run courses which soon became full degree courses in 13 different fields (Table 13). There is no admission requirement to the University other than the "Bachillerato" and as often secondary school graduates are in-prepared for a university career which imposes very strict standards for promotion, a 1957 Reform made it compulsory for all new students to spend a full year in the Department of General Studies of the Faculty of Sciences and Letters. Ihile this decision was meant to give a broader preparation to students before  - 20 - entervng a ?ycle of :rofessional studies, in fact this pre-requisite has served as a selection process, Thus over 50% of the whole student body is in the Faculty of Science and Letters, most students attending the General Studies coursesO By far, a better system, advocated by a group of UNESCO experts for Central American Universitiesi/, would be to impose admission requirements to University and thus enable General Studies courses to be taken during subsequent University years of studies. The University has also started a short (2 years) University career for topographers. This might be the first step towards technological train- ing for sub-professiona'Ls such as might be given in a polytechnic institute. As of 1957 the nature of the enrollment growth of each Faculty varied considerably. Thus, the Faculties of Social Sciences, Law and Pharmacy witnessed decreases in their enrollment. Conversely, the Faculty of Science and Letters has grown consistently. The Faculty of Agronomy, after a sharp enrollment drop from 1957 to 1962 is back to 1951 figures; many of its students, however, come from and return abroad (Venezuela and Panama). The duration of studies varies: Science and Letters, Fine Arts, Dentistry, Microbiology, Pharmacy, Economic and Social Sciences, are of five-year duration; Eng:ineering, Agronomy are of six years and Medicine of seven years. b) Some Problems: b.l) Decreasing Enrollment and Low Output The UNESCO study already referred to2/ showed that more than half of the student body, as in most other Central American countries, holds1full- time jobs. This may be explained both in terms of the economic origin_t of the students and of the duration of courses. The latter are of such length and the demand for qualified manpower is so urgent that the student, under pressure to begin contributing to the familyts income, will want to enter the labor market before having finished his studies. As a consequence, the number of leavers is very high and the number of graduates has been falling - in absolute numbers - Table 14). As an example, the Faculty of Education had 111 graduates in 1956 - 72 in 1960 - 1/ Dr. W. B. Harch, Dr. J. Labbens, Dr. J. H. Terlingen.- "Informe de la Mision Consultora de la UNESCO para las Universidades Centroamericanas", San Jose, Costa Rica; Dec. 1962. 2/ Op. Cit. p.20 3/ Students from well-to-do families are generally sent to foreign Universi- ties (U. S., Mexico, Chile, etc.).  - 21 - 57 in -1962 - 28 in -1554,, The Faculty of Engineering graduated 20 students in 1964, 12 in 1956, 7 in 1960, 17 in 1962. Out of each 100 students registered in 1960 only 55.7 were still registered in 1964. Output figures for the Faculty of Agronomy show that 40% of students enro led in the first grade in 1952 reached the fifth year in 1956 but 16% actually graduated. The number of repeaters is unduly high since 13 students registered in the second year in 1960 grew into 30 by 1963 in the fifth year. In the Faculty of Pharmacy, 65 students were registered in the first year in 1955 and 28 were in the fifth year in 1959. In the Faculty of Engi- neering, 84 students were registered in the first year in 1956, and 26 were registered in the sixth year in 1961 out of whom 21 graduated. b.2) Inadequate Teacher Training As already noted, the Faculties of Education, and Science and Letters, hardly produce the number of qualified secondary school teachers needed by the country. It may well be necessary, therefore, for Costa Rica to establish a secondary school teacher program through an "Escuela Normal Superior". Of course, such an Institut;ion could stem from the existing School of Education which would consequently have to be strengthened and extended. But it may be, also, that the two F'aculties concerned should concentrate only on the training of professors f'or such a sch4ool and developing pedagogical research. Various solutions are being studied-l but one is urgently needed if the Uni- versity is to play its role in strengthening the quality of the teaching staff of those schools which are expected to prepare students for subsequent admission to higher education. b.3) Absence of Technological Courses As was shown in the section dealing with secondary education, a "bachillerato tecnico" should open the door for vocational school graduates to higher learning in technical education. Such training, which should pre- pare sub-professional technicians for industry, science and agriculture, business managers and vocational education and training specialists should be a course of some two to three yearst duration - along the lines of exist- ing "carreras cortas" - maintaining a link-up with the existing Faculties of Agronomy, Engineering and Economic Sciences. There is no basic reason why such institutions should necessarily belong to the University. On the contrary, it might be sensible, in the first stage, to leave them outside the legal framework of the existing University System. What does seem 1/ One approach suggested by the UNESCO group is that the University offer residency facilities (inexistant today) to Education students willing to "sign up" for teaching for a set period - say five years - thus doing away with "part-time students" in this particular branch.  - 22 - necessary, howeve-, is that the University be concerned with their establish- ment. Indeed, it is up to the University to help define the role of such institutions in relation with the Faculties concerned. These new institu- tions should thus benefit from the Universityts teaching staff as we-.l as from its existing facilities. Finally, it would be necessary for the Uni- versity to define the level and the content of the diploma to be conferred after such post-secondary training, if it should authorize its holder to apply for admission to one of the existing Faculties for further studies. (for a more detailed description of such institutions, see Annex 1 to this Report.) Conclusions to Part I While the Costa Rican education system caters to a larger proportion of the school age population than in most Latin American countries, charac- teristics and problems correspond, in an attenuated form, to the general situation of education throughout Latin America. The high enrollment in primary education is a significant achieve- ment but this quantitative result now needs to be buttressed by improvement in quality. This calls for fundamental decisions concerning curriculum and grade-to-grade promotion as well as more intensive use and better distribu- tion of the teaching force. But this will not be enough if no classrooms are built to accomodate all children for a full dayts schoolwork. Secondary education needs a much greater number of qualified profe- ssors, adequate facilities for specialized classes, more buildings if the curriculum reform and general re-orientation of the system are to become effective. Technical education requires institutional changes if it is to profit from its existing high-quality facilities. The Apprenticeship Institute (I.N.A.) should be more closely linked to formal education by developing general education courses through the par- ticipation of teachers and also by linking I.N.A. to future polytechnic ins- titutions. Teacher-training for primary schools should be reduced and shifted, with the necessary substantive changes, to meet secondary schools needs. Nurses' training must be extended on a larger scale. The University needs to face the long-term problem of its low output and the short-term demands for technologists and secondary school teachers. While the former calls for institutional reorganization and better use of present facilities, the latter would require human and material investments. Some of the suggestions made call for policy decisions and can be rapidly followed by implementation. Others, such as proposed school cons- truction and equipment for primary and secondary education, institution building for higher eduication, etc., will mean additional expenditures which  - 23 - may we? l-e beyond expected resources, depending on the timing of these expen itvi'es. Multilateral or Bilateral Technical Assistance from abroad in Ed-icational Planning, or Senior Staff Training, or administrative studies, as well as in actual teaching and instructing is a resource that must not be neglected. Likewise, external aid in financing equipment purchase and build- ing construction can also be sought. But it is obvious that not all pro- posals can be implemented and that fundamental decisions will have to be made by Costa Rica. Part II EDUCATION FINANCING A. Past Effort The main components of public expenditures on education are: - Salaries to teachers, professors, supervisors and adminis- trative staff, and other recurring expenditures (Budget of Ministry of Education); - Subsidies to public school boards and cultural bodies (Subsidies Chapter of Budget); - Investment and recurring expenditures for the University (Budget of Ministry of Education - other resources); - School lunches for primary schools (Budget of Ministry of Health); - Primary and secondary school construction (Budget of Minis- try of Transport, formerly of Public Works); - Pensions for teachers and professors (Pensions Chapter of Budget); - Additional expenditures for public schools (school lunches for secondary schools, extra curricular activities, uniforms etc.) are supported by private parent-teacher associations. As far as private education is concerned, virtually all expendi- tures are met out of private funds. Table 15 sets out total public and private expenditures from 1960 through 1965.  - 24 - l Analysis and Description of Past Effort i) Expenditure Trends Related to Global National Resources (Table 16) From 1960 through 196h, 30% of Central Government expenditures were spent on education with slight fluctuations from year to year. Comparing trends for the whole period, total Central Government expenditures grew slightly faster than expenditures for education. Total national expenditures for public and private education averaged about 5.0% of the G.D.P. and 5.9 of National Income, although there has been a slight tendency for these values to increase since 1960. ii) Unit Costs Table 17 shows that pupil cost for primary education has increased some 10% over the last five years. Since there have been no in- dividual increases in salaries paid to teachers since 1959, this slight rise in unit cost reflects the greater number of qualified teachers entering the profession. The higher salaries paid new entrants in the profession because of their higher qualification accounts for 6% of the unit cost increase while the remaining 4% relates to the remaining recurring expenditures. These in- creases in unit costs coincide roughly with the rise in the cost- of-living. In constant (1960) prices both pupilsl and teacherst unit costs have fallen. Student costs for Secondary Schools have increased slightly more than in primary education. Given the scarcity of qualified teachers, this can be probably exDlained by the overtime salaries ("sobre- sueldos") paid. to teachers working beyond the 30-hour limit. Students costs in Vocational Schools show a constant decrease both in current and constant prices. The reason for it lies in the extremely low student/professor ratio of the system at its inception. As enrollment grew and the hired instructors were already in suffi- cient numbers to meet new students, no corresponding recruitment was necessary. Thus, the student/professor ratio has grown to more reasonable proportions and, consequently, the unit cost has decreased. In conclusion, the reason for past increase in educational expendi- tures lies mainly (except for vocational education) in enrollment growth which was matched by corresponding recruitment of new teachers This is particularly true of primary education where the tradition- ally low pupil/teacher ratio has been maintained.  - 25 -v iii) Distribution of Expenditures by Sectors: Public and Private trable 15) The predominant share of expenditures falls within the public sector; private expenditures for education over the years re- present approximately 12.5% to 13.0% of the total. By private expenditures is meant non-government expenditures for public as well as for private schools. This includes in t)e former category local School Boards ("Juntas de Educacion ),.Y Citizenst School Associations ("Patronatos Escolares") and other associations generally financed by parents and teachers ("Asocia- ciones de Padres" - "Asociaciones de Bienestar"). The former two bodies are generally concerned with primary school financing while the latter lends financial support to secondary schools. In 1964 these sources contributed 5.6 million colones for primary education in addition to the Ministry of Education budget of 86 million colones. To meet current expenditures of secondary schools, these associations contribute an additional amount equal to 20% of the subsidies received from the Ministry of Education.o/ Virtually all expenditures for private educational expenditures are borne by private schools themselves. As expected it is diffi- cult to find actual expenditures data for private education. Estimates were made (Table 16) on the assumption that actual cost per pupil and cost per student are the same in both public and private schools and that the construction program for new schools in the private sector is similar to the constructions in the public sector. It is likely therefore that underestimations (recurring expenditures for secondary academic) or overestimations (invest- ments for secondary academic and all expenditures for vocational schools) may have been made. In 1964, private expenditures were estimated at 14.1% of total primary expenditures, 33.3% of secondary (vocational included) and 12.5% of the total. These outlays are noteworthy but not as considerable as in many other Latin American countries where private secondary and higher education play a larger role. 1/ Each school has a "Junta de Educacion" which receives the main of its financial support from Government in the form of "subsidies to Primary Education". Other revenue, from private sources, supplements this income. 2/ Each secondary school has a "Junta Administrativa" which runs the establish- ment. These "Juntas" are exclusively financed by the Governmentts subsidies to secondary education. Other sources of income are therefore channelled through the distinctly different bodies mentioned.  - 26 - iv) Type of iditures: Recurring and Investment In 1964, a 1 otal of almost