China - Education Development in Poor Provinces

 ICRR 10704 Report Number : ICRR10704 ICR Review Operations Evaluation Department 1. Project Data : Date Posted : 08/03/2000 PROJ ID : P003544 OEDID: OEDID : C2339 Appraisal Actual Project Name : Education US$M ) Project Costs (US$M) 204.9 450.6 Development in Poor Provinces Country : China Loan /Credit (US$M) Loan/ US$M ) 130 133.1 Sector, Major Sect .: Primary Education , US$M ) Cofinancing (US$M) Education L/C Number : C2339 FY ) Board Approval (FY) 92 Partners involved : None Closing Date 06/30/1998 12/31/1999 Prepared by : Reviewed by : Group Manager : Group : Linda Ankrah Dove Patrick G. Grasso Ridley Nelson OEDST 2. Project Objectives and Components a. Objectives To assist the Government in initiating institutional and policy reforms needed to improve the management of education and its quality and efficiency within a decentralized and more equitable framework . (a) improve the efficiency and quality of primary and lower secondary schools with the aim of achieving an effective 9-year compulsory education system . (b) support the development and restructuring of higher level education and the efficient use of resources by colleges and universities. (c) improve provincial and county -level education planning, financing and management systems . The project covered six poor provinces and small and inefficient provincial universities and colleges . b. Components (a) School construction and rehabilitation, equipment, books and teacher training in the poorest counties based on county policy action plans . (b) Pilot projects in higher education institutions, advancing mergers and reducing subject specialization . (c) Investments in information management systems (MIS), research and planning capacity, and examination systems. . c. Comments on Project Cost, Financing and Dates The ICR financing table shows actual costs as $ 455.2 m. Actual costs rose by well over 200% of appraisal estimate, due to inflation, wage hikes and overruns of targets for school construction . The basic education component absorbed 23 % more of total costs than estimated at appraisal . Devaluation increased local funds from counties and prefectures by 35% over appraisal estimates. 3. Achievement of Relevant Objectives : This innovative sector-wide project aimed at system reform achieved all of its major objectives with some shortcomings in quality improvement and management efficiency as might be expected in a first project dealing with decentralized and dispersed project institutions . (a) Access, quality and internal efficiency in primary and secondary education improved substantially as shown by indicators for pre-and post-project indicators for enrollments, repetition rates, per -student ratios for textbooks, equipment and teachers and reductions in proportion of schools in unsuitable physical condition . Enrollment of girls and minorities increased substantially from lower levels . School equipment targets were exceeded by 100%, construction targets by 50% and 10 times more teachers were trained and qualified than originally planned due to the additional funds available . The ICR might have improved its analysis by addressing the question how far the improvement in basic indicators was due to the project or to other factors . b) According to the Borrower's report, 19 higher education institutions improved their efficiency through mergers and their quality through curriculum changes, staff training and new courses, though no indicators are available . Shanxi province implemented a higher education reform plan and prepared a report which awaits full dissemination . c) The MOE completed its MIS. The provinces, however, were limited to refining their ongoing systems . Studies on student assessment, minority teachers and dropout and repetition were completed, though progress on examinations is not commented on . Staff say that the project aired this complex issue which is being addressed in follow-on projects. 4. Significant Outcomes /Impacts : Strengthening of the base of the education system in poor provinces and expansion of educational participation. These were the most significant achievements and are supported by a range of relevant indicators. Substantial strengthening of local ownership and participation in the management of education . The project formed the basis for three subsequent basic education operations . The ICR states that this was because the project design and management methods proved very effective (but see qualifications in 5 and 6 below). Staff interviewed report that provincial planning at preparation paid attention to curriculum reform tailored to minorities. Trainees in bilingual education reported that the training made them more aware of the difficulties minority students had in learning the Han language . The ICR mission's aide-memoire (Annex B) noted that teachers' main objective was to teach minority students the Han language, using their native tongues for translation and explanation, because learning Han is essential to development . However, the mission recommended that more training in cultural subjects such as music, arts and physical education, be given to teachers who teach "minor subject areas." Since most of the teacher training schools at county level lacked the staff and funds, the mission recommended targeting teachers in most need . 5. Significant Shortcomings (including non -compliance with safeguard policies ): a) The quality of teacher training and the construction quality of school facilities both remains in need of improvement. Unit costs increased more than expected . This is attributed mainly to teacher salary increases . b) Cost-efficiencies in higher education proved negligible, though details are not provided . The more sophisticated equipment provided (labs. computers and so on), though used intensively, has high repair and maintenance costs which have not been regular items in budgets . However, the Borrower's operational plan (Annex C, inadvertently omitted from the ICR) gives assurances that the provinces will maintain the investments . The ICR relies on qualitative statements and omits quantitative data on the higher education component . In part, this is explained by the dispersion of provincial institutions unaccustomed to keeping records, according to feedback from supervision staff. c) Moreover, the MOE's MIS is not yet in use at provincial levels . This is a dilemma for the development of a central data base in a decentralized education system . The borrower's operational plan affirms that the MOE and the provinces will increase their investments in the MIS to establish and perfect it . d) The lack of coordination between various central and local government agencies' accounting and financial control systems proved an impediment to efficiency, though improvements occurred as experience grew . e) Supervision of TA for construction proved problematic because provincial implementing agencies did not have sufficient qualified staff to supervise adequately, and provincial governments were reluctant to spend project funds on enhancing project management activities . 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Satisfactory Satisfactory Institutional Dev .: Substantial Substantial Sustainability : Likely Likely Bank Performance : Satisfactory Satisfactory Bank performance was satisfactory overall though of mixed quality in some respects. Despite considerable merits in terms of relevance and grounding in sector work, quality at entry was weak in respect of project management and accounting arrangements and inconsistent staff advice . Supervision was regular but marred by high turnover of task managers and by inadequate resources for such a challenging high-profile project. The borrower emphasizes the negative impact of this discontinuity, as well as perceived lack of responsiveness from the country office staff on project procurement and  disbursement issues reported on . Counterparts appreciated the technical advice of education specialists and others, however. Borrower Perf .: Satisfactory Satisfactory Overall, the provinces performed satisfactorily, though the Ministry of Education appears to have performed less satisfactorily, and inter -agency coordination remained rather weak . Quality of ICR : Satisfactory 7. Lessons of Broad Applicability : The ICR insights emanate from experience stemming from the inadequate design of routine management and arrangements for this project that pioneered education system decentralization . China has sufficient, highly trained specialists in education necessary to form an advisory group on education activities. The use of an expert panel designated to supervise technical aspects in the provincial projects proved highly effective (Chinese Expert Panel). TA activities for project implementation must be carefully selected and timed . Procurement procedures for books, equipment and small civil works contracts for remote schools need special consideration. When multiple provinces and entities must cooperate in studies and in an expert panel . "more expedient" methods must be agreed on during preparation for the approval of terms of reference, selection of firms/institutions and payments for services . Annual reports should be required early to provide central government and IDA with the necessary information for making project decisions. Proper financial arrangements among the concerned counties, provinces, and the Ministry of Finance must be in place at the beginning of the project . These include development of proper forms and software, and provisions for equipment. 8. Audit Recommended? Yes No Why? To cluster with subsequent, decentralized education reform projects and to derive on -the-ground lessons on educational and local management issues . 9. Comments on Quality of ICR : This was an old-style ICR dated June 5, 2000 for which the mission and report-writing took place in 1998. The lag in delivery was not explained in the ICR . Staff feedback indicates that it stemmed from a retroactive delay in credit closing which was granted for several projects at the request of the Borrower . The ICR quality is marginally satisfactory and could have been improved if it had been re -checked to remedy gaps and updated. Apparent inconsistencies were not removed or reconciled by tighter editing, such as the claim that of effectiveness for the project management model alongside the enumeration of complex administrative and financial issues arising during implementation, . The lessons provided identify problems but do not provide constructive guidance based on cogent evaluative insights on what needed to be done for the future in large -scale, decentralized projects in education . At the time of Board delivery, it would have been helpful for broader dissemination to note the steps taken to resolve problems. OED was informed that Annex C which was omitted may be incorporated as an addendum .