Public Financing of Education in Mongolia Equity and Efficiency Implications M. Caridad Araujo and...
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![Page 1: Public Financing of Education in Mongolia Equity and Efficiency Implications M. Caridad Araujo and Katie Nesmith The World Bank.](https://reader035.fdocuments.net/reader035/viewer/2022081519/56649f265503460f94c3e166/html5/thumbnails/1.jpg)
Public Financing of Education in
Mongolia
Equity and Efficiency
Implications
M. Caridad Araujo and Katie Nesmith
The World Bank
![Page 2: Public Financing of Education in Mongolia Equity and Efficiency Implications M. Caridad Araujo and Katie Nesmith The World Bank.](https://reader035.fdocuments.net/reader035/viewer/2022081519/56649f265503460f94c3e166/html5/thumbnails/2.jpg)
MotivationEducation financing in Mongolia in contextComponents of the reportSummary of findingsRecommendations
Outline of presentation
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Motivation
Document how resources are allocated across and within schoolsUnderstand the institutional framework for school financing and how the sector has been affected by recent reformsAnalyze teacher salaries and current incentive schemes for teachers
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Motivation (2)
Identify the factors that may help reduce the observed disparities in educational outcomesFor the first time, collect information by surveying teachers, students, principals, accountants, parents, and aimags to empirically documents schools' needs, characteristics, and resources.
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Education Financing in Mongolia in Context
2003 Public Sector Finance and Management Law re-centralized public finance and aimed to improve efficiency and transparency. Funding formula has been used since 1998 for variable cost component of school budget.
Many school authorities and policy practitioners are not satisfied with current funding formula.
To compensate schools with small enrollments, micro-coefficients were introduced into funding formula in 2004.
.
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Components of the report
Overview of education sector in MongoliaDesign and implementation of school funding The stages and actors of the school budget processVariation in teachers’ salaries and their components across rural and urban schools
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Data collected
Quantitative and qualitative data came from the 2005 Public Expenditure Tracking Survey (PETS)
Central level data-MoF and MECSProvincial level data-MECS ECD officers and MOF treasury officersSchool level data-118 schools
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Principal Findings : School financing
1) Small, rural schools have significantly higher per-student spending than their larger and more urban counterparts.
0
20
40
60
80
100
120
140
160
180
Rural Urban Small Large
VariableFixedTotal
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Principal Findings : School financing (2)
2) Provincial reallocations (micro-coefficients) correct some of the imbalances in resource allocation, but create inequities across regions.
Simulations in report suggest national micro-coefficients could be more equitable solution
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Principal Findings : School financing (3)
3) The funding formula for school financing is not used by schools in Ulaanbaatar (UB).
UB schools submit budgets based on past expenses, without information on enrollment numbers.
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Principal findings: Budget Process
1) Education financing was re-centralized in 2002 with Public Sector Finance and Management Law (PSFM), but reform has not happened in UB.
2) An analysis of school budgets in Western region documents discrepancy between what is reported at school and aimag level.
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Principal Findings: Teacher salaries
1) Urban teachers appear to earn more than rural teachers, but they also have higher costs of living and work more hours.
Potential implications for attracting teachers to rural areas.
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Principal Findings: Teacher salaries (2)
2) Decisions regarding teacher bonuses and deductions are made at the school-level and often do not reflect outcome-based contracts.
Reporting of deductions at school and aimag level would help improve transparency
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Principal Findings: Teacher salaries (3)
3) A large number of teachers are engaged in income generating after-school activities and receive non-monetary benefits from the school.
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Differences among teachers by type of school
Rural Urban
Years of education More
Years of experience More
Hours of work More
Absences/school closings
More
Receive non-monetary benefits
More
Salary + Supplements
More
Receive performance bonus
More
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Recommendations
1) Efficiency in School SpendingEncourage more efficient use of human resources
Multiple-subject teachersMulti-grade classroom
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Recommendations (cont.)
Funding formula should be modified to provide incentives for schools to make savings on fixed costs
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Recommendations (cont.)
Schools should have autonomy to generate their own income to offset any gaps from government funding.
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Recommendations (cont.)
Performance bonuses for teachers should target behaviors that teachers can control and that the school administration can monitorConsider reducing the number of salary supplements and increasing the base salary for teachers.
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Recommendations (cont.)
2) Enhancing equityMicro-coefficients should be applied at the national level, rather than the provincial level. School funding formula and financing reforms should be uniformly enforced in all provinces and Ulaanbaatar.
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Recommendations (cont.)
Financial management training should be provided for provincial and school level budget officersTeacher promotion procedures should be adapted to provide equal opportunity for rural teachers.
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Recommendations (cont.)
3) Promoting TransparencyDeductions from teachers salaries and salary supplements should be made at the school, provincial and central level.Encourage schools to develop strategy for sharing school budget information with parents and the community.
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Public Financing of Education in
Mongolia
Equity and Efficiency
Implications
M. Caridad Araujo and Katie Nesmith
The World Bank