TEXTBOOK RENTAL SCHEMES
Edited by Dr. Frances Pinter
Contents
Introduction – Frances Pinter
The Concept
Designing a Rental Scheme – Chris Conolly-Smith
Textbook Financing Systems in Transition Countries – Chris Conolly-Smith
The Case Studies
Armenia – Karine Harutyunyan
The Gambia – Theo George
Moldova – Philip Meerloo and Octavian Armasu
Lesotho – Motsi J. Mokhokhoba
Barbados – Dorien Pile
Georgia – Giorgi Gabashvili
Introduction
Frances Pinter
The financing of textbooks is a continual issue raised within rich and poor countries alike.
The question of who pays and how much is primarily a political question. Models that may
work for one country might be abhorrent to another even though their financial
circumstances may be similar. Cultural values about the role of the book in families, schools
and societies all play a part in a country’s decision on how to finance textbooks.
Nevertheless, despite these differences, in the end someone has to pay for the books. The
government may choose to finance textbooks through the central budget or it may borrow
funds from agencies such as the World Bank (and then devise a plan for repayment of the
loan). Responsibility for the provision of textbooks may be delegated to local authorities
who may receive funds from the central government, or through local taxes. In some
countries parents may be obliged to purchase textbooks which may or may not be subsidised
through provision of grants to producers or discounts or vouchers provided directly (and
selectively) to needy parents.
Whichever way the pie is cut, the books have to be paid for and the financing has to be
found. Recently a number of organizations, influenced primarily by World Bank thinking
have looked to find ways of making the cake last longer. A simple idea has evolved that is
devilishly difficult to implement but which when it works, as readers will see below, can
substantially reduce the financial burden of textbooks both on the state and on the parents.
This is, of course, particularly important in poorer countries, but the model can be of
interest to others too, as spin-off effects such as greater parental involvement in
commitment to the supply of learning materials to children has a beneficial influence on
society as a whole.
Textbook rental schemes are simple in concept. An initial pool of money is made available
to produce enough books to cover the needs of a defined number of pupils in any given
number of subjects. These books are held by the schools and rented out to the parents of
the children concerned. The books are returned at the end of the year and rented out again
the next year. This process continues for an average of four years by which time the rental
charges levied should be more than the original cost of the book and enough to purchase a
replacement book (which may have different contents entirely due to changes in the
syllabus). In this way a ‘revolving fund’ is established. In theory no more funds need to be
introduced from the outside and the project becomes ‘self-sustaining’.
The idea has many attractions, but conversely, much of what is considered appealing by
some is undesirable by others. There is no doubt from the papers in this volume that
devolution of responsibility is crucial for the scheme’s success. This in turn means that
power must be relinquished from the top while at the same time the financial commitment
to start the scheme needs to be a centrally determined and honored.
Towards the end of 1999 a conference was held in Budapest that brought together
representatives from five countries that have textbook rental schemes up and running
(Armenia, Barbados, The Gambia, Lesotho and Moldova), one that had just begun a pre-
pilot study (Georgia) and one that was considering embarking on an experimental scheme
(Macedonia). Together with consultants that had advised the World Bank and the countries
concerned, participants shared experiences in great detail. It would be fair to say that all were
stunned by how useful this exchange turned out to be despite the differences between the
countries.
The Center for Publishing Development of the Open Society Institute initiated this meeting
and is grateful to the World Bank (and particularly James Socknat, Mary Canning and Harry
Patrinos) for their support and participation. This collection of edited papers has been
prepared as a result of the conference and this introduction has been specially written after
the event for this publication. Also an additional paper by Chris Conolly-Smith specifically
for transition countries has been added. Many of the papers include appendices that
provided a whole range of tools that will be of interest to anyone contemplating a textbook
rental scheme, ranging from samples of forms and reports to illustrations of macroeconomic
modelling.
The presenters of the country papers were all asked to follow a format which was prepared
by Philip Cohen, an independent textbook consultant to the World Bank and the Open
Society Institute who was charged with the task of organizing the conference and ensuring
the quality (which was achieved masterfully). Five issue headings (Management, Finance,
Equity, Book and History of the Scheme) provided the framework followed by the country
reports. In addition, the Role of the Book Trade emerged as an issue arising at regular
intervals during discussions. The format of this introduction is to follow these six headings
and summarise the main points, not country by country (for this the reader will have to
consult the papers) but as major issue areas of concern that need addressing by any country
that is even thinking of embarking on a rental scheme.
MANAGEMENT – The Structure
Since all the five models described here were originally financed by the World Bank there are
certain similarities that are dictated by the conditions of the loans. Nonetheless there are
significant variations as well.
The general management structure can be defined as follows. The Ministry of Education
along with the sponsoring agency (in the cases illustrated here it is the World Bank)
determines the office within the Ministry that takes on responsibility for the project. The
Project Implementation Unit (which is often covering a broader brief, usually the whole of
an education reform loan project) along with Ministry officials design the management
structure.
The general consensus was that the greater the involvement of the schools the better.
‘Ownership’ of the project at the local level was essential and schools with high levels of
parental involvement were even more likely to be successful in managing the scheme. At the
same time continual government commitment, even and especially, after the initial stages
were completed was deemed essential.
Broadening the range of participants was also considered important. For example, the
booksellers of a country might take on a more active role and could, in theory, introduce
more efficiency if competitive tendering were introduced for a wider range of functions
beyond simple fulfilment.
The papers, along with the samples of forms for record keeping, demonstrate the need for a
very detailed and transparent paper trail. Readers will be able to see how well documents are
tailored to the familiar administrative practices of each country. It is important not to be too
radical when asking school officials to donate extra work time, as is often called upon by the
new rental schemes. Indeed a major theme of discussion was whether or not teachers and
local school officials should be paid extra for managing the scheme. Answers to this issue
varied from country to country.
Who pays for hidden administrative costs was also highlighted. After careful analysis it
became clear that everyone in the chain of activity was covering extra costs which were not
provided for in the original project budget. Therefore the real cost of the schemes are
considerably higher than apparent on paper. Ministries, local district officials, school
administrators and teachers all contributed their time which had not been factored into any
assessment of actual costs. Some participants felt this was right and proper as assisting in the
provision of textbooks should be a part of everyone’s job description. Others felt it was high
time to include these costs and pay for them accordingly.
FINANCE
As mentioned above most of the projects so far were originally financed by World Bank
loans, usually as a component part of an Education Loan. Where top-up expenditure was
required this came from the national budget. However, a number of the projects are too
young still to assess the need for top-up funding. The most important factor determining
whether or not the fund will be large enough to cover replacement copies at the end of the
rental cycle is the management of the funds. The ability to create a formula that survives the
test of time and the ability to stick to the predetermined formula is crucial. To this end one
has to ask, are the funds being responsibly held? If in local currencies are there ways of
insuring against devaluation, inflation and other unforeseen events that whittle away at the
value of the funds? What is important for one country need not be so significant for
another. Moldova suffered badly as a result of the Russian rouble crisis in August 1998.
Paper imports, paid for in hard currency, increased dramatically in cost making it inevitable
that the fund would fall far short of its target. The Gambia, on the other hand, despite its
dependency on book imports from Britain has had a stable currency for years and does not
expect any changes in the future.
Other factors effecting the size of the revolving fund are unanticipated administrative costs
that might, if not covered by other sources be paid for from the fund. And finally is any
money being siphoned off illegally? Is the partner bank an honorable one and are the
subaccounts (clearly an essential feature of any scheme) being carefully accounted for?
A textbook rental scheme has to concern itself with all aspects of money management, from
the details of how school administrators collect sums from the parents and transfer cash
safely into a bank to major questions of investment. If allowed by the government to hold
foreign currency should it do so? What kind of an account should the central funds be held
in so as to maximize interest received while minimizing any risk of losing the money?
The level of rental fees varied from country to country with Barbados charging 50% of the
purchase price to as little as 25% being charged elsewhere. These differences reflected
differing approaches on how the countries chose to subsidize the poor. In the case of
Barbados the rental fees covered costs for families that were unable to pay anything at all
while in other countries such subsidies came from outside sources. Each country developed
their own set of rules governing the conditions under which pupils rented the books and
how they were to be accounted for.
All of the countries represented complained of indifference of the central government
authorities concerning the provision of textbooks. However, as many studies have shown
this is not restricted to these countries alone. It is, nonetheless, imperative that for the
scheme to succeed the government throws its weight behind the project.
While not covered extensively in the papers, the discussions did touch on the issue of how
such a scheme relates to the local book industry. In countries that have had large scale
textbook projects (with or without a rental scheme component) the impact on the growth of
the publishing industry has been considerable. Such projects serve to increase competition,
improve quality, expand choice and reduce prices. But none of this happens automatically or
without transition pains. One issue looked at in some depth was how differential pricing of
books (in and out of the scheme) can impact negatively on local distribution. Participants
also felt the scheme triggered increased investment in publishing in general which was to the
benefit of everyone.
Finally the question was raised whether it was conceivable that a state might wish to finance
a textbook rental scheme through its own revenues and not through a loan from an outside
agency. While it was generally thought this would be unlikely, no real obstacle could be
identified. It was a question of whether the non-financial benefits (greater participation,
higher regard for books, releasing funds for other good causes) would be considered worth
the effort and allocation of funds required to implement such a scheme.
EQUITY
Discussions on equity issues were broad ranging, from comments that rental schemes were
actually in contradiction to the UNESCO declaration on access to free education, to
pragmatic positions which simply acknowledged the shortage of funding and the need to
spread the burden of costs.
Several models of providing a safety net for poorer families are described in the papers. The
divisions between urban and rural are also covered, One scheme, not yet used anywhere, but
now being considered is the provision of vouchers for those in greatest need.
Other issues under equity actually straddled over a number of the main subject headings.
Questions arising here included, who owned the books, whether choice of titles was an
inherent goal of the program or whether was it wishful thinking to envisage a world where
all economies would not only be able to provide one book per subject per child but also
finance the availability of choice of titles at inevitably higher unit costs.
Provision of books for minorities is of ever increasing importance as freedom to learn in
one’s own language and cultural context is of increasing importance in many countries. The
extent to which textbook rental schemes can incorporate this diversity is also covered in the
papers.
THE BOOK
The physical properties of the book itself were hotly debated. The trade-offs between
hardback binding which would ensure a longer life and paperback binding which requires
lower initial investments were discussed. While four years was generally accepted as the
average lifespan of a book, shorter and longer lives were not unknown. Different
compensation arrangements for lost or damaged books have been developed.
There was general agreement that use of a book over two years of syllabi was on the whole
unworkable and while the ideal was one book per pupil there were some subjects where
sharing was a viable option. Workbooks, of course, would have to be excluded from the
scheme as they tend to not to be reusable.
An area that merited further exploration was the sharing of titles across national boundaries.
Countries with small enclaves of people speaking minority languages might benefit from
introducing some titles (and even importing finished copies) from countries printing larger
quantities of the books in question. While clearly attractive from a financial point of view it
was recognized that the introduction of foreign books would not necessarily be appropriate
in all instances on pedagogic grounds.
The rate of introduction of titles into the scheme was also handled differently amongst the
five countries. In some instances large groups of titles covering all books in a number of
grades were introduced all at once, while other countries opted for a more gradual
introduction of the scheme, phasing in titles over a number of years. All agreed that careful
piloting was imperative. Public relations, explaining to parents and the public at large why
the scheme was beneficial led to greater acceptance and ultimately greater care being taken of
the books themselves.
HISTORIES OF THE SCHEMES
Each country is a fascinating case study with the oldest scheme having been established in
1975 and the newest in 1999. Each country had different political and financial reasons for
establishing the scheme, with different protagonists advocating the benefits and pushing to
achieve agreement to go ahead. All countries were assisted by outside consultants who
prepared needs assessments and comprehensive surveys of the country’s textbook
production and provision capacities before designing the project.
Common problems with all the schemes centered around fine tuning the structure to
something that was implementable within the political environment. Then the maintenance
of government commitment in the long term despite changes in governments took over as a
feature that required continual attention by the key protagonists.
THE ROLE OF THE BOOK TRADE
The backbone that is essential to the functioning of most rental schemes is a book trade that
can cope with the demands made upon it. This varies from The Gambia, for example, where
participation is limited to distribution only as books are sourced from UK firms who
manufacture in Hong Kong to Armenia where most of the books are written and produced
locally within an industry that is in transition from state to private ownership.
Nonetheless, one common theme that emerged was the importance of achieving a healthy
relationship with publishers and the rest of the book trade. Commercial considerations
simply could not be ignored by the administrators of rental schemes. Copyright laws needed
to be adhered to and fair and open tendering procedures were deemed essential towards
ensuring cooperation amongst all participants. Publishers needed to be brought into the
process with timely information provided on changes in syllabi.
While initial reactions towards the scheme from publishers may be cautious as they calculate
a drop in reprints each year, most have come to appreciate the regularity of orders created by
the scheme and the independence from dependency on a single source of finance (the
Ministry) as the scheme becomes self-sufficient.
Different environments produced differing answers to questions such as how the availability
of books on the market (in addition to the scheme) impacts on rentals, how fluctuations in
student numbers from year to year can be accommodated and how to react to changing
policies coming from frequently changing governments. All had favorable experiences when
the scheme was designed in such a way as to demonopolize the provision of textbooks.
CONCLUSION
The jury is still out and deliberating as to whether or not textbook rental schemes are the
answer to reducing the cost of textbook provision while ensuring equity of access to books
for pupils, fair competition in the trade, improved standards of texts and the introduction
and maintenance of best practices and transparency in the management of rental schemes.
This volume is an interim contribution to the debate by assembling real experiences from
which the reader can judge for him or herself whether or not this is a suitable route down
which to travel.
The Concept
Designing a Rental Scheme
Chris Conolly-Smith
Financial Consultant
C.Conolly-Smith@kingston.ac.uk
Rental schemes were first discussed by donor agencies about twenty years ago. The first
project proposed at that time was rejected. Since then many have been designed and a
smaller number have actually been implemented. Nearly all of them are for compulsory
education grades, mainly primary and a few secondary schools. They are usually for
compulsory textbooks approved by the Ministry of Education and rented to the pupils for
their sole use or perhaps shared use over one year, or two years on rare occasions. At the
end of that period, if they have looked after the textbook properly, they give the book back
and that is the end of the cycle. In some schemes there is a penalty which has to be paid if
the book is lost or damaged. In some cases the rental fee will be payable over one term or
perhaps in three instalments. Schemes operate at different levels. Some are centralised at the
national level, others focus at the regional level, others on school levels. The trend, perhaps
as confidence in the way things operate is that there is de-centralisation of the scheme, more
local ownership at school level.
In financial terms there are two main different types of rental scheme. Firstly, where the
money is collected from the children and is placed into a bank account and where it remains
for more than one year. That money can then be reused to purchase more textbooks after
three or four years once enough money has been collected to pay for those replacement
books. This is called an accumulating funds. The majority of schemes in the post-communist
block are accumulating.
The other type is a dispersing fund. This is where the money is collected in year one and is
reused in the following year. Sustainability therefore in dispersing schemes becomes very
difficult because you cannot possibly collect in one year enough money from rental fees to
pay for replacements in the following year.
Rental schemes provide new textbooks in most cases to parents at a lower cost than they
could otherwise afford. Those same textbooks are used over several years so it is a good use
of local resources. Paper is one of the big problems in the financial equation because it costs
the same world-wide regardless of the state economy. Paper tends to be least expensive in
those countries with the most buying power, namely the US, Germany, Japan because they
have the priority on both delivery and price. In some countries where they have the lowest
wage rate, the paper cost may be higher than in those countries where they can afford a
higher level of textbook pricing.
Rental schemes are popular with donor agencies because of sustainability. Textbooks can be
provided at a reasonable cost to all school children which the teachers like because there is
nothing worse than holding a class where only three children have textbooks and the others,
however eager to learn, are embarrassed or cannot join in or both. So from an educational
point of view rental schemes are enhancing education and bringing everyone up to a higher
standard.
It is also popular because it is similar to the schemes that existed pre 1989 when children
received, free of charge, a book for one year and it was then given back to the school at the
end of the year. Therefore it could be argued that the only difference is that parents are now
paying a rental fee which is far cheaper than the cost of new textbooks.
It is sustainable because at the end of a loan period you have more money to purchase new
textbooks and therefore you have momentum.
What alternatives are there? Most education textbook projects do involve a rental scheme of
some sort. But the alternatives are obviously free textbooks where the government feels that
they would like to commit children to education as a means of increasing the economic
wealth of a country. This is very expensive but in smaller populations that may be affordable.
However, book availability on the market can be unstable. In some countries a parent will
buy the book when it is in stock in the local street market at one price, the next week
another children will go with their parent and there will be no textbooks at all. Another child
will go back with the second parent and they will pay a vastly inflated price. So you have the
problems of different prices, and different availability all resulting in fewer educational
benefits. In such scenarios distributors have a very strong control over the textbook supply
process.
In some countries there might be a strong second-hand market, where books flow from one
family to the next depending on the number of children in the family, this does not
guarantee supply but definitely produces books at a low cost. In some richer countries the
schools will purchase back textbooks from the pupils in order to re-supply them the
following year.
So what prerequisites are necessary in order for the rental scheme to operate? The first one
is that there has to be a stable, ideally newly established or long-term established, curriculum.
If you have a scheme where the aim is simply to produce textbooks in ten seconds and
where the Ministry or the next minister may wish to change the curriculum the next minute,
any rental scheme will have a bad start because parents will rent the books and then in the
second year new books will be required. The sustainability under such circumstances will not
exist. You have to have a stable curriculum. Donor aid will take longer to produce benefits
to the country and many donors and countries want immediate fixes in terms to solve a
shortage now. The question then arises, are we trying to produce fast solutions or ideal
solutions? The project design depends on the view taken by the government and the
Ministries.
Certainly the number of textbooks per grade whether, a textbook is used for two grades and
retained for two years, is also relevant. The design of the curriculum and the number of
textbooks required has to be carried out professionally and realistically in order for textbook
rental scheme to work. Schemes need to be wary of being over-ambitious. Each country has
to decide on what it can realistically afford rather than going for ideal solutions which it has
seen on a study tour.
The teaching approach is also vital. How is the textbook used in the class? Is it used in a
didactic way? Is the same chapter taught each week by all the teachers in a country or does
the teacher have the freedom to teach a subject which is then assessed on the basis of an
examination rather than having to use a set book? All this effects choice on a number of
issues such as the number of pages, the format and the cost. The specifications not just of
the content, the colour etcetera, have to be realistic. The role of the workbook which is
normally sold to the pupils for a one – off usage has to be considered early on. Discussions
are often held as to whether workbooks should be free also. However this would mean
horrific costs and is very difficult to sustain because they only have a one time usage.
In some countries a book has entered the rental scheme while at the same time the editorial
approach has been such that the child wrote the answer into the book which then makes it
easier for the child in the second year but the book is not carrying out its true function.
A very detailed design is essential to make any rental scheme truly workable with tight
controls. There should be visible controls at school level and at ministry level and every
other level.
In most case rental schemes have been stimulated by donor aid which pays for the first set
of textbooks. It is essential that money be held outside government because the money does
not belong to a Ministry. It belongs ultimately to the schools and the parents. The most
successful schemes are those where schools and Parent – Teacher Associations are taking
ownership of smaller amounts and where funds are managed locally. Under IMF influence
budgets for textbooks have often been decentralised to the school level.
Thus rental schemes are helping the end-user and suppliers are rewarded based on how
much benefit they provide to the end users. In many countries the teachers’ salaries and
textbook budgets will not belong to the Ministries of Education, but rather to the local
region.
Every scheme is and should be individual. It is essential that people listen to the Ministry of
Education and the regions in making those design comments.
Rental schemes are different to most Ministry of Education roles. They are commercial so in
a way it is like running an organisation in a state enterprise. It is totally different to devising
curriculum and assessment criteria. Once operating a system where efficiency and value for
money count and where the people therefore handling it have to be chosen on different
criteria, though obviously with educational experts involved. The people who need to
administer the scheme have to be chosen with those skills in mind.
Most school authorities do not appear to trust government. This raises the question again,
what is the role of central ministries in the design of such schemes. It is a partnership but
when it comes to administration the schools quite often say that they would like to be more
closely involved and take more ownership of it. The possibility of such involvement is often
determined by the budgetary process.
If rental scheme is to be sustainable, it has to generate enough money in order to pay for
new textbooks in the future. Some of the issues that effect the financial basis is whether a
single book, per subject per grade is being offered, or whether there is a choice. Choice tends
to push up quality, but it also raises costs. In theory it should not do so under strict
economic principles but it does because it takes time for competition to show the benefits
on price.
The affordable level issue tends to be confused with what the poor can afford rather than
looking at whether special provision is made for the socially (economically) deprived. In
some countries the level of socially deprived people is very high and governments fall into
the trap of trying to produce an average rental fee rather than setting a fee and then looking
at special provisions for those families. This can result in the average rental fee set being low
and popular but unlikely to be sustainable.
Textbook specifications is also a key issue. In the former Soviet Union, for example, authors
and printers were paid on the basis of number of words and the more you wrote the more
you earned. This would increase the number of pages and hence cost.
A key element in the design is how books are stored. The motivation of the pupil to look
after the textbook is whether a fee is charged to children if they lose the book or damaged it.
Most estimates of levels of wastage are far too low.
With regard to any special provision on rental fees for the socially deprived there is a
growing emergence, often with separate donor aid, of help for specific regions where special
circumstances prevail (e.g. an earthquake or war). These schemes are encouraging the
emergence of a realistic rental fee with special provision for socially deprived and/or very
difficult economic areas which need special help. The question there is that donors need to
work closer and closer together. The above not withstanding most ministries seem to want
an average rental fee rather than looking at special provisions for special areas.
Obviously a ministry will want to be popular with whatever rental fee they set and some
countries still wish to offer free textbooks as a concept even though they are being reused
over four years. The proportion of children that actually pay for textbooks and are actually
able to afford them is the key variable effecting sustainability.
Any rental fee has to be based not on today’s costs but on the future replacement cost.
Imagine the following scenario where you are reprinting in four year’s time, inflation may
have been too optimistically forecasted, the currency may have changed, the paper price in
particular may have therefore dramatically changed, and printers take the view that short
runs are much more expensive. The level of competition may not be as high as one would
like and therefore the cost of replacement is higher than it should be. Fraud sadly often takes
place and therefore not all the money collected is there for reprinting. Also affecting the fee
level is the level of ambition of the Ministry of Education in setting a larger number of
textbooks than is perhaps realistic in terms of affordability. There might be no incentive at
all on the part of ministries to purchase centrally because there is no benefit to them
whatsoever. So what the central purchasing agent is buying are books including all the start
up costs associated with the first edition. There are no risks in my opinion attached to the
publisher. A textbook is very profitable to all those producing it, especially on the reprints.
Publishers understand manufacturing but less so distribution. Nonetheless the responsibility
for physical distribution should rest with the publisher. The contract will stipulate that, with
the help of the donor, the publisher will find the author. The book will be approved by the
Ministry, the publisher will edit, design, print and deliver it to the schools or to a region.
In most publishing there are a variety of ways of distributing books with a variety of
economic gains. Greater decentralisation in the future seems to be the most promising route
ahead.
Donor support typically supplies the first printings and for an additional amount of stock. It
is debatable as to whether reprints should be made each year. If you have buffer stock at the
start you protect against the danger that you may run out of stock if the population changes.
The country will pay back the donor loan at a totally separate lead time i.e. ten years onwards
into the future. It is important to avoid confusion between the cycle of the rental scheme
where you replace after four years and with the repayment through the Ministry of Finance
of the donor aid.
Control is absolutely vital to the design of the rental scheme. There have to be approval
stages written into any scheme, many of them would be there for any type of publishing
process but the key element is payment by results which is sometimes new to the suppliers
who are accustomed to having payments before results and then asking for more later.
Certainly rental schemes have helped develop the notion of entreprenialship in publishing
for the good of the whole industry, not just for textbooks. But it does mean that there have
to be very lengthy delivery procedures and checks in order that the books arrive at the right
place and the right time. It is an attitude of mind where the school is the ultimate customer
and not the Ministry and that you have success in a rental scheme if you deliver the right
books in the right format to the right school.
With regard to rental fees, there is likely to be a centralised fund where all the money goes
into one account and it will be administered by the Ministry of Education. The draw back of
this is that it. That provides little incentive for the school or the regions to take ownership of
the scheme. Some countries have regional accounts which are simpler in administration,
though where pupils move from one school or another more paperwork is required.
Another problem that may arise is that the richest schools are often those where the
population is declining. If a school has 100 children and the next year it has 80 it is much
easier to become sustainable because last year they collected money for 100 children. If you
are in an area where people are moving into and have less money other distortions occur.
Then there are school level accounts perhaps managed centrally where the school can
benefit from its good works, can spend money saved by looking after the books, by getting
the children to protect the books, by spending the difference on books for the library
perhaps.
The ownership of the collections is a key issue. It should belong to the Ministry of
Education, especially if that budget no longer exists within the Ministry. Money should be
held in separate bank accounts visible and audited outside of the Ministry of Education. The
problem is one of human nature that if in a country with little money there is a gold mine
sitting in the middle it becomes highly attractive and the larger the account and the more
sustainable the account, the more exciting that fund becomes for the government. An
argument can be made that the money should be put to better use than simply earning bank
interest. But this leads to risky activities that threaten the fund itself. So sustainability, the
ability to create long term benefits out of the scheme after donor aid and supervision is gone
is to charge realistic fee levels. Ministers tend to think short term and four years is a long
time. Wastage levels need to be examined in great detail. Ongoing donor supervision from
outside help, long term planning, which is crucial.
In summary the key issue is creating local ownership and not just ministry level interest. If
parents and teacher and the community are committed to the project then they will pull it
along rather than pushing from the top. certainly that has to be done within the family
culture of that country. Only then can one address the issues of how to keep reprints
competitive and how to avoid fraud and how to work with the Ministry of Education in
terms of the curriculum, content and use of textbooks.
Textbook Financing Systems in Transition Countries
Christopher Conolly-Smith
Financial consultant
C.Conolly-Smith@kingston.ac.uk
Key Factors in devising the appropriate system include:




the existence of local pulp, paper making and printing facilities so that no imports
are necessary
the country’s natural wealth and resources
the government’s commitment to education which has no immediate economic
benefits
the existence of a major aid project to finance the transition e.g. World Bank, Asian
Development Bank etc.
The Soviet model
Textbooks were written by approved writers who were members of the Society of Authors.
Payments were made according to fixed scales usually based on length. Authors therefore
wrote over-length textbooks, which often talked over the heads of the pupils, because many
authors were top academics rather than good teachers of the same grade. Design was not
appropriate to the needs of the pupil. Too much information was provided to the pupil.
The model also dictated what had to be taught in each lesson rather than judging on the
basis of examination success. Failure to declare a clear policy by many governments on this
vital aspect has delayed the progress of pupil-friendly textbooks.
Printing started 10 months ahead of the school year to meet the demands of the printing
industry. This meant that editors could introduce content only a year old into textbooks.
A typical model was of 11 school grades starting at 6 or 7 years of age. In secondary grades
students had a choice of subjects including technical subjects. Different schools specialised
in different languages.
Textbooks were loaned to pupils free of charge for their exclusive use during that grade.
Textbooks were collected at the end of the year, and re-issued to other pupils in the
following school year. Every 3 - 4 years, the Ministry of Education would print 150% of the
pupil numbers in each grade to allow for damage and loss over the planned 3 - 4 years of
usage. A central school in each area would store the excess textbooks for future years. A side
effect of this policy was that textbooks became more “out-of-date” in terms of content over
the 4 years’ life.
Textbooks were often given to pupils in grade 1 (and sometimes grade 2) in order to
motivate them when first entering school. Such textbooks often carried more colour for the
same reason. There was no choice of textbooks but textbooks were produced for different
specialisms e.g. languages, and for secondary schools where students were streamed into
academic or technical routes. These technical subjects were vocation based and the print
runs were often below 1,000 copies printed for a 5-year life.
Post Soviet models
In mast transition countries the Ministry of Education has appeared to encourage
competition while keeping a tight control over approved authors. Many private publishers
have been funded by “new” money. This has meant that government or aid money has not
provided to schools and their pupils the “new” textbooks that they were seeking.
In many countries the state textbook publisher has fallen from favour as being part of the
past, in others, perhaps the minority, the state publisher has remained close to the Ministry
of Education and remained in favour e.g. Kazakhstan, Georgia. It is a question of politics
and finance. Many aid projects have demanded competition in order to improve costs and
content.
Many new textbooks are different only in format or design therefore often using the same
authors. Many textbooks have employed designs and materials more appropriate to books
for the general market. Many progressive schools have felt let down, while other schools
have feared that the selection by their school of a more progressive textbook might place
their pupils at a disadvantage in final examinations.
Where governments have encouraged private publishers, those same publishers have
experienced financial difficulties because printers demanded up-front payments 9 months
ahead of delivery. Printers gave varying levels of co-operation to individual publishers. In
some cases the Ministry of Education bought a textbook printer under its control (previously
under the Ministry of Culture or the Ministry of Industry).
The guaranteed market for approved textbooks attracts both publishers and "entrepreneurs”
eager to capitalise on the high returns. In practice despite these attractions few if any
publishers have been prepared to amortised first-edition costs over potential reprints. This
has resulted in higher unit costs where a ministry has encouraged competition. Indeed most
publishers insist on higher prices for reprints (printing and paper costs represent a high
percentage of total costs and printers have often been unwilling to change their pricing
methods from the Soviet model) which gave price benefits for volume, and under which 4colour printing cost 4x the cost of single colour printing.
Interim Solutions
In many countries, schools have survived by using a variety of old textbooks over different
editions supplemented often by cheap Russian imports. This situation has been aggravated
by the need for textbooks in different languages for minorities. The "home" country often
supports Diaspora. The impact of this is that teaching standards fall as teachers work under
difficult conditions where pupils have different textbooks or different editions or only partial
supply. The budgetary burdens have in these cases fallen on parents. The cost per child for
textbooks will depend on the number of children in the family assuming that textbooks
remain in use unchanged. Poorer parents cannot afford to pay for textbooks.
Typical Foreign Aid Projects
Typical objectives of such projects include




To avoid foreign intervention into the textbook and examination process (on the
part of local governments)
To minimise the amount of the foreign loan as well as the foreign intervention (on
the part of local governments)
To act as a catalyst for change into textbook content, examinations (on the part of
donor organisations)
To develop local publishing (a joint objective)
In particular


To stimulate the development of textbooks appropriate to future needs and
approved according to future rather than past criteria
To pay textbook suppliers by results rather than through advance payments.
Publishers are seen to be the "supplier" who will be paid only on the basis of


textbooks delivered and accepted by each school. In practice printers, paper
suppliers and distributors try to work against this objective.
To stimulate an education system whereby students are judged on the basis of
success in final exit examinations rather than on the basis of week-by-week teaching
To stimulate the development of school libraries
Methods of financing
1. Ministry of Education (MoE) responsibilities – transfer of budget responsibility to regions
Under the Soviet model, MoE was responsible for the budgets for both schools, special
needs schools and textbooks, and for all grades including university grades. Since 1989 the
following changes have been predominant



Universities distance themselves from MoE either formally or informally Textbooks
are printed locally in university printshops. Universities push their own authors.
There is thus a tendency for quality of content to fall.
Regions become responsible for local schools under a policy of de-centralisation.
The Inspectorates become advisory rather than executive in function. The regions
rather than the MoE, which retains an advisory role, make all cost decisions. In the
early period after 1989 textbook budgets were usually transferred to the regions also.
This resulted in different levels of budget provision being spent on textbooks.
Regions would prefer to spend the textbook budget moneys on salaries or projects
outside education.
The customers for textbook publishers thus became the regions. MoE retained
responsibility for curricula, standards and examinations, and approval of textbooks
only.
2. Regional responsibility but parents responsible for purchasing textbooks
As 1 above MoE has no budget responsibility for textbooks. Poor regions and government
decide that they cannot afford a textbook budget. Two options emerge:
2.1 Parents have to purchase textbooks. Under this option parents have to buy from
bookshops or street markets. Prices will vary. Not all pupils will have textbooks and pupils
will have different editions.
2.2 Regions and schools arrange a loan system for pupils.
Most aid projects involve a form of textbook rental scheme. Therefore this forms the central
focus of the report.
Textbook Rental Schemes
In the Soviet period pupils received a textbook under a free rental scheme. They had a duty
to take good care of the textbooks so that future children could share equal advantages from
using the textbooks. Schools had to complete forms at the end of each school year showing
their textbook inventory by condition. At the start of the school year each school has to
submit a list of pupil numbers by grade. From these two documents MoE would calculate
print runs for the following school year. Printing would start 10 months ahead of the school
year. In order to secure full textbook supplies schools would inflate their documentation.
Schools like the system because all children received a textbook, which made teaching easier,
and motivated the pupils. In addition they would store the extra textbooks in a central
school for future years. As a result, they felt confident that there would be adequate
textbook supplies in the following year.
The advantages of the rental scheme post 1989 are as follows:







Schools feel in control.
Rental fees if levied (they usually are) are much lower than new textbook purchases.
Competitive supply of textbooks initially increases textbook prices until true
competition sets in. Few parents could afford the full purchase price.
Most countries have to import paper and often printing. Rental schemes reduce
imports therefore. The IMF also encourages the introduction of import duties and
VAT. Thus much of the textbook budget is spent either abroad or on taxes.
The cost per pupils for textbooks falls. 1.5 textbooks are used by 4 children over 4
years. Thus the cost per textbook per year is 0.4 of the original textbook price. In
another way the system is 2.5x cheaper than textbook purchase (assuming no re-use
of purchased textbooks).
Printers are not involved every year in manufacturing textbooks. The volume of
textbook printing is reduced. Thus they are forced to compete on price earlier as
they have spare capacity.
All pupils can be treated equally regardless of wealth. Special budgets usually exist for
poor pupils (often for up to 60% of all pupils). Educational standards benefit. The
role of the teacher is more rewarding.
Disadvantages of rental schemes include the following:





Teachers and pupils are accustomed to free textbooks.
Textbooks are updated only every 4 years.
Often a high percentage of pupils are deemed to be needy and thus deserving of free
textbooks.
For parents with several children, it is cheaper to purchase rather than rent
textbooks. (Most rental schemes post 1989 allow parents to purchase textbooks with
a different cover). Sadly publishers are rarely willing to print extra copies if not presold.
Competitive markets for publishers and printers do not really exist. Prices tend to
remain high.

Many schemes do not involve the book trade and thus do not assist the development
of bookshops. However, it is logical to direct-market to schools. PTA's often set up
shops within schools for supplementary textbooks and writing supplies.
Rental Fees
MoE will set a rental fee nationally either


per grade or
per textbook
The fee will apply to all schools throughout the county and schools cannot vary the fee.
Richer parents can however provide extra moneys for poor children. Special budgets usually
exist at regional level for needy children e.g. for meals, textbooks.
Usually the librarian will be the “accountant” within each school, although responsibility
often falls on the class teacher. Larger schools will have a school accountant.
Variations on rental schemes

Central control
Under this method the MoE or more usually, a legally-separate body, will be responsible for
textbook ordering, distribution, and rental fee collections.

Regional control
Regions will take an assessment of local textbook needs and place orders for textbooks. In
subsequent years, efficient regions where pupils are motivated to take good care of
textbooks e.g. by special covers, will achieve savings as they can order fewer textbooks. The
same applies to regions where the population is falling.
Conflicts may exist between textbook provision, help for needy children and other local
projects. It is thus difficult to ensure equal treatment in all regions.

School / PTA control
This is perhaps the ideal but most difficult scheme. Schools and parents have a vested
interest in securing economic textbook supply for their children.
Problems with rental schemes
To an emerging economy a year is a long time, and 4 years a lifetime. To lock up moneys for
up to 4 years is “unproductive” in that it only earns interest rather than being put to use
(opportunity cost).
In transition countries, there have been a number of scams whereby citizens have been
encouraged to “invest” in a venture for a longer period for a high return. In some cases the
money has disappeared e.g. the Albania scam which caused national unrest. There is simply
not the same regulation to enforce rules and laws.
Revolving Funds
Revolving Funds are not a method of financing textbooks. They are only a mechanism,
which may work under several of the systems discussed earlier.
The key aims of such a fund are to:








ensure that moneys are spent for a specific purpose only e.g. textbooks and outside
MoE control
keep special textbook moneys separate from other moneys
keep textbook moneys separate and outside budget moneys
allows a fund to operate to pre-agreed rules and conditions under an appointed
independent board
give confidence
to suppliers e.g. publishers that they will be paid if they fulfill their contracts.
Payments are made on results not on the basis of advance payments prior to delivery
to “customers” e.g. schools, pupils that their money is safe and can be used only for
the agreed purpose
to other citizens by publishing public accounts
Revolving and similar funds give confidence to donor agencies that moneys will be used for
the purpose intended under independent control.
A typical aid-funded rental scheme
(100% donor funding)
Stage
Operation
Comment
1
MoE via MoF and donor
agree loan and assistance
contract
These usually take a number of years to
evelop and negotiate despite the
urgency for textbooks
2
Approval of new curriculum,
syllabi
The most important and most timeconsuming
element.
Many
governments want funding simply for
reprints
3
Commissioning
of
manuscripts usually through
Most publishers will use existing
authors in order to get their textbooks
publishers on a monopoly or
competitive basis
accepted
4
Contracts
publiser(s)
Publishers will usually be contracted to
be responsible for commissioning,
printing and paper
5
Textbook distribution
Publishers may be responsible or
special distributor(s) appointed by
MoE
6
Payment to publishers and
distributors
Publishers and / or distributors will
usually be paid against proof of
delivery, rather than through the stage
payments
7
Receipt by schools or pupils
Either
awarded
to



schools take delivery
parents buy via bookshops
PTA’s take delivery
8
Textbooks are rented to
pupils
Librarian or class teacher issues
textbooks, collect rental fees. Schools
or municipality may have a local budget
for needy children
9
Rental fees are banked
Either into a single national account,
school sub-account, or PTA account
10
Textbooks are collected at
the end of school year
Textbooks are stored in the school
library awaiting the next year’s pupils.
Fines may be levied for lost or
damaged textbooks
11
Start of the school year –
year 2
Textbooks are reissued to new pupils;
problems may exist concerning changes
in the class number, different subject
choices in certain later grades.
Year three follows the same cycle
12
End of school year – year 4
Textbooks are collected up. Textbooks
in good condition can be used for
subsequent years
13
Revolving fund has amassed
enough funds for reprints
A revolving fund with a single national
account, or sub-account for each
school, or at PTA’s has accumulated
sufficient funds for reprints required
for
the
following
school year and beyond
14
New
textbooks
are
introduced each year until all
school grades have newly
written textbooks
Textbooks
may
be
introduced
simultaneously for e.g. grades 2 and
4 etc. for primary grades
15
The government repays the
donor
The donor pays for the first printings
of he new textbooks. The loan is repaid
to the donor over a much longer
period than the textbook cycle above.
The moneys collected from rental fees
are not used to repay the donor
Textbooks may be rented for less than four years but


The rental fee will have to be higher or
The donor loan will be higher
Calculation of Rental Fees
The aim is to accumulate sufficient funds to pay for subsequent reprints so textbooks are
self-financing from the MoE’s point of view. The fee must be affordable to nearly all pupils.
Textbook rental assumptions
Textbook rental fee in say US cents
42
Wastage per year
10%
Inflation year 4
20
Textbook unit cost in US cents
100
Number of textbooks printed
140
Analysis
Year
Item
Value
0
Payment for books by donor loan
-140
1
Rental Fee
42
2
Rental Fee
42
3
Rental Fee
42
4
Rental Fee
42
4
Amount in Fund
168
4
Payment for textbooks from Fund
168
Thus 168 in local currency is collected to pay 168 in local currency in year 4 such the system
is self-financing.
In practice the system is more complex due to inflation, needy children, and the desire by
governments to borrow as little as possible and to charge low rental fees. In theory a Fund
needs only to hold enough money for the following year’s textbooks but not in practice.
Schemes can be for periods of less than 4 years rental.
Other areas for investigation
The notes so far focus on compulsory primary education. Secondary education tends to
receive less attention as it is often not compulsory and benefits fewer pupils.
Mark-ups
Every supplier is marking up a margin on his or her own costs. Inflation thus tends to
benefit certain parties e.g. authors. Under the Soviet model suppliers would usually add 20%
to their costs. Printers mark-up paper costs and further mark-up their total costs. Most
Western printers would mark-up by say 10% with very little on paper. Paper prices are
controlled and often higher than in Western Europe due to lack of competition, import
duties, freight costs.
The high mark-ups result from the past but there is no reason for such high mark-ups except
for the lack of true competition. When calculated in terms of return on capital, textbooks are
very rewarding financially for publishers. Except for the pre-press stages, the cashflow cycle
is short.
Author contracts
In many countries a fixed royalty is paid based on the selling price, regardless of the print
run. Textbooks print runs are very high and there is often no real selling price. A net receipt
basis or fee would be more appropriate from the financial point of view (authors might
disagree!). Where MoE purchases the textbooks, it will often pay the same price as in
bookshops.
Supplementary textbooks and libraries
Both teachers and pupils appreciate these. To publishers they represent an opportunity to
enter the market after they have failed to sell approved compulsory textbooks into MoE. In
many countries MoE will still approve these and will issue a list of such books to all schools.
Such books can be bought via bookshops and parents will obviously favour such books for
their children.
This area of publishing does not require aid funding except as part of a library project.
Printing and paper prices
Paper and printing represent a high proportion of aid project budgets. However it is rare for
donors to intervene in the negotiation and supply of paper and printing except in obtaining
free papers from other donor countries. Most donors will insist on competitive tender
however. Local publishers, printers and paper merchants are poorly informed of world
prices. Printers and paper merchants seek to ensure that such information is not easily
available to their customers.
Bookshops and distribution
In many ways financial economics and bookshop development are at loggerheads here.
Financially it is logical to deliver textbooks direct to schools and thus avoid an intermediary's
mark-up. UK publishers do this more and more to the detriment of bookshops. Most
textbooks sell within a very short period of time. A long distribution chain so popular in
publishing (publisher - wholesaler - bookshop - customer) is very inefficient although
multiple channels are desirable. Competition takes a long time to emerge, so long
distribution chains add to textbook prices in developing economies.
Teachers' Manuals
Many aid projects include budgets for teachers' manuals but only as a lower priority. The
application of teachers' aids as provided by most USA textbook publishers (slides, aids,
computer disks, answers, lecture notes, supplementary questions, audio or video cassettes)
would be low cost and yield significant benefits to teachers in making classes more
interesting.
Other ways of reducing prices
From the parental or MoE point of view, the textbook is an expensive but durable essential
teaching aid. Possible formats for supplementary support materials might include the
following:




Exercise book format for low-cost supplementary textbooks / revision notes etc.
Most exercise books have rulings which are printed by litho. Exercise books are mass
manufactured in specialist factories.
Partworks. Magazine formats issued over a period of time e.g. each term. Parents
would find it easier.
Newspaper formats for low cost production. Local newspaper houses could print
and distribute to local schools.
Multi-media (This may be part of the electronic publishing program). The creation of
teaching material across several media would have useful longer-term benefits.
Perhaps MoE's could insist that publishers allow the sale of other rights for making
teaching aids.
The Case Studies
Armenia
Karine Harutyunan
Director
Center for Education Projects
Ministry of Education and Science
Armenia is a small, landlocked, Eastern European country situated in the southern part of
the Caucasus and with a population of 3.7 million spread over a territory of approximately
30,000 square kilometres. It is a presidential democracy, a part of CIS, and regained
independence from the Soviet Union in 1991. The country is divided into 10 administrative
regions, called “Marsis” and its gross domestic product is approximately USD 1.66 billion. It
is a relatively homogenous country as 96% of the population is Armenian alongside small
Kurdish and Russian minority groups. The official language is Armenian but Russian is also
spoken along with other less widespread languages. Armenia is an ancient nation with a long
cultural and educational tradition based on 1,600 years of literary heritage. Education has
long been regarded as the key factor in maintaining national identity, especially during the
past 6 centuries when Armenia was not an independent state. The Armenian alphabet is
unique to the Armenian language and its script was invented in 405, the year in which the
first school was opened in the country. The first scholarly textbook was written in the 7th
century on Mathematics. Currently 15,000 examples of ancient manuscripts are stored in the
Matenadaran Museum in the capital Yerevan.
The history of the Armenian educational system can be divided into three main phases. In
the 4th century Armenia adopted Christianity as the state religion and became the first
officially Christian country in the world. All schools were officially supported by the Church,
although they were not religious schools, until 1920 when the Soviet Socialist Republic of
Armenia was established and the whole system of Christian schools was overhauled and
reformed according to socialist principles. The current system is essentially that inherited
from the Soviet era and there are a large number of educational institutions of varying types.
Although these were previously centralised under Moscow, Armenian has remained the
principle language of instruction in schools.
At the time of the break-up of the Soviet Union, Armenia was considered to have one of the
best educational systems in the Soviet bloc and its main achievements included: 10 years of
basic compulsory education; complete enrolment of the school age population in schools;
free education at all levels from pre-school to higher grades; universal access; negligible
dropout and repetition rates and a high completion rate; gender equity; co-educational and
unstreamed classes; and a well qualified teaching force. The adult population is bilingual and
literate with 25% achieving university graduation.
In spite of its successes the system had shortcomings. It was highly centralised and had an
excessively strong focus on ideology, to the exclusion of Armenian history and culture. The
curriculum was rigid, overly academic and there was no interactive teaching in schools or any
individualisation in approach to the children at all. Parental participation was, and remains,
limited. All education was state initiated with a total absence of shared decision making or, of
course, democracy within the school system.
The project design for the rental scheme began in 1995 with visits to Armenia from the
World Bank and International Book Development Ltd. The implementation plan and overall
development of the project took place in 1996. It was piloted in 1997 and began full-scale
operation in 1998. It will close in 2001. Project funding comes from World Bank credit. The
total cost of the education project is USD 15 million, out of which approximately USD 8-9
million will be spent on textbook production. After this initial investment the country will be
able to finance textbooks through the revolving fund created by the project.
It is crucial here to note the importance of planning. The initial phase involved intensive
consultation on the project design. Head teachers, school teachers and parents from
approximately 1000 of the 1,400 state schools operating in Armenia were involved in
discussions concerning the project, as were ministries, publishers and printers in the country,
and it was out of all this that the projects' design emerged.
When the discussions were over it was clear that the ideas of a rental scheme and revolving
fund were well understood, accepted and would be supported by the population. This was in
part due to the fact that this was not an entirely new idea in Armenia and partially because it
provided a solution to many problems. In the Soviet era there had been a tradition of
donating books to schools, of storing them in school libraries as stock, and of loaning them
to children to be returned by the end of the school year. This was very popular in the 60’s
and 70’s, but in the 80’s the lending program began to decline as more and more textbooks
(paid for out of the state budget) were given free to the children with no requirement to
return them to libraries.
When Armenia became independent in 1991, it was clear that the government would not be
able to finance textbook publishing in Armenia as its budget was so low it barely covered the
teachers' salaries (USD 7-8 per month). Furthermore, a large number of old, soviet
textbooks were rejected by schools, especially in humanities subjects, because of their
ideological content, as well as a perceived need for new more nationally-oriented textbooks.
History and geography textbooks were rejected by both parents and teachers. Textbooks in
mathematics and core sciences such as biology and physics were less in need of replacement,
but there were in fact few textbooks in the schools because the government was not funding
their purchase, they had last been printed at the end of the 80’s and they were completely
worn out. The only publisher of textbooks in Armenia was publishing for the market, their
print runs were very low and their prices were so high that only a small minority were able to
afford the books. The project was designed to overcome these problems.
Currently, textbooks that are printed using World Bank credit are supplied to all children and
the cost of textbooks has been reduced for parents. Furthermore the monopoly in
publishing, printing and distribution has been ended and competition introduced. This will
in turn provide further opportunities and encourage the development of local publishing and
printing capacity, as well as raising standards to an international level. The ultimate objective
was to make the project self-sustainable because it was clear that the government would not
be able to fund further textbook production, or be interested in borrowing money whenever
textbooks were needed, so some sort of facilitative mechanism was required. The best
solution appeared to be a revolving fund where textbooks would be rented out. This was not
an original concept but it did require adaptation to work in the Armenian context.
The principle mechanism was clear, textbooks would be procured centrally through national
or international competitive tendering. They would then be delivered to schools and kept in
the libraries as school property to be loaned to the children to use for one year and return by
the end of each school year. The children would be asked to pay rental fees. This was the
central structure of this rental scheme, but there was a need to develop the details.
After consultation, several decisions were made centrally by the Minister of Education, with
the general agreement of the main stakeholders. It was decided that the rental scheme would
be applied at all 10 grades of basic education (8 of which are compulsory). 115 titles would
be printed to cover the core compulsory curriculum. It was decided that while all 115 titles
would be included in the rental scheme, they would be introduced gradually over 4 years
with approximately 30-35 new titles printed each year using the loaned money. By the end of
the project all the textbooks would be in the revolving fund and rental scheme. It was also
decided that after the textbooks had entered the school no changes should occur in the
curriculum for 4 years so that the books would remain usable for the whole period.
The key policy decisions were: to include all state schools in the rental scheme; to offer no
choice, at least in the initial phase of the project, and only one textbook per subject for each
grade. Gradually, over the life of the project, a system of textbook choice should be
developed in Armenia. In the second phase when the advance ordering system will be
introduced, the schools will be able to choose the textbooks themselves according to their
preferences. Only compulsory subjects will be provided with textbooks to rent and no
optional subjects will be included in the rental scheme.
Implementation of the plan encountered a number of difficulties. The first was that initially
schools were not legal entities and could not hold private school accounts. There were
several possible ways around this problem. All schools hold an account in the treasury as
budgetary institutions and the government thought it would be possible to open another
account for the school in the treasury system. However, it was not thought advisable for
parents and schools to place their money in the treasury as Armenian schools had previously
had a very negative experience of this. In 1996, when the government had allowed them to
open non-budgetary accounts in the treasury system, some schools had done so with funds
they had raised independently. These accounts were then frozen and the money sent to the
central budget to be used for essential costs such as paying salaries to civil servants. There
was a risk that the same thing might happen again because nobody can guarantee that, were
the country to face such urgent financial difficulties once more, a government might
consider the rental scheme's funds as expendable. Consequently, the idea of keeping the
money in the treasury, or even in a non-budgetary treasury account was rejected.
It was also suggested that the ministry or another state agency open an account and all the
money be gathered in this central account and managed by one of the ministries or another
state agency. However this would reduce incentives for schools because the whole idea was
that the schools should manage their own accounts and make their own decisions about
their own money.
Eventually, another solution was found: a separate, non-governmental entity would manage
the money. The decision to establish a non-governmental organisation (NGO) which would
be in charge of the whole financial operation was taken and in 1997 and the Textbook
Revolving Fund (TRF) was created in Armenia and registered with the Ministry of Justice as
a separate, independent NGO. According to the law of Armenia the government has no
right to interfere in the affairs of an NGO. According to its charter the members of the TRF
are the school principals on behalf of their schools and the parent’s communities. The
supreme body of this NGO is the General Meeting of School Principals where all designated
core decisions are made. It is managed by a Board of fifteen members who are selected at
that meeting and should comprise of one member from each 'Marz' (region). The
representative can really facilitate the work of the rental scheme on a Marz level and is
selected by the school principals of that region. There are 10 regional representatives and 5
government representatives. It was suggested that they should be candidates approved at the
general meeting. The aim of having government employees on the board was to engage
people who could facilitate the work of the NGO in the government and help to solve the
main issues that come up with regard to the ministries. Thus, two people from the Ministry
of Finance and three people from the Ministry of Education who are responsible for the
textbook project were included on the board. The board of the NGO decided to keep the
money in a commercial bank and although there were a number of local banks who could
provide higher interest rates, the final decision was to use the Midland Armenia Bank, a
branch of the Midland Corporation. It was chosen because it was considered a safe bank, the
safest bank in Armenia at the time, rather than on the basis of the interest rates. The Bank
has helped in developing the details of the project.
Each school has opened two bank accounts and two people from the school (the school
principal and the school accountant) are responsible for all transactions with their school
account. The Project Management Unit (PMU) staff members travelled throughout the
country in 1997, visiting each school and helping the school principals to fill in the form and
attach all the documentation required by the bank to open the school account. With each
state school holding two accounts the NGO now has 2,800 accounts in the bank. One
account contains 'hard' currency in US dollars and the other holds local currency (the
Armenian Dram ( AMD)). All these accounts are actually sub-accounts of the main account
which is called an “interest generating account” but which is not really a bank account in the
common sense because no transactions can be made from it, it is simply a mechanism from
which the balance of all 2,800 accounts can be seen. It also generates a higher rate of interest
on all the accounts. Interest is paid by the bank to the account on the total balance and the
interest is redistributed to the individual schools in proportion to the money they have
collected.
It was considered both legal and prudent, given the difficulties of the country, for the
schools to hold two separate accounts. Under Armenian law the only official currency is the
Armenian Dram and schools are not permitted to make transactions in dollars. They collect
money in Drams which they then transfer from the nearest local branch of the bank to the
Dram account in Midland. By the end of the same day the money is converted to US dollars
and is kept in the dollar account as a hedge against inflation and to protect it from
devaluation.
The system is locally administered, which means that the revolving fund really belongs to the
school. Nobody can make any transactions with the account apart from the school principal
and the school accountant. In line with the underlying principle of the concept of
sustainability, nobody at the school level receives any additional salary in order to preserve
the revolving fund. The idea was to convince the school that this is part of their regular job.
The incentive for the school is that they collect the money for themselves and they keep it in
their individual school account and only they can withdraw any money from their account at
the completion of the first phase of the project. Currently all these old accounts are deposit
accounts which just earn interest. By the time the textbooks need replacing these accounts
will be converted into current accounts so that money can be withdran and books ordered to
replace the old ones.
As well as the main “interest earning account” there is also a “donation account” for the
fund although unfortunately, up to now there have not been any donations. Still, it is now a
priority to seek out donors who can give money to the fund to subsidise those who cannot
pay the rental fees and also to administer the fund, because currently the fund does not have
any money to cover administration costs and it is administered completely by the PMU and
by the “Marz” employees from the regional education departments. With a work load that
increases each year along with an increased number of titles, this issue urgently needs to be
addressed.
The most common problem faced by the schools was that because they had never been a
legal entity the school accountants were consequently not used to making bank transactions
or using banks. They filled in forms incorrectly and failed to provide the bank account
number, consequently the money did not reach the account. Sometimes there was confusion
among local banks. Often the bank employees at these banks were surprised to see that the
same revolving fund could have several accounts. They told the school principals that they
had filled in the account number incorrectly and as a result one lucky school in the region
received all the money from that region into their bank account. Together with the Midland
Bank we developed special account reconciliation forms for the school accounts. These are
filled in when the schools receive their bank statements twice a year. Other report forms
were also introduced, although there were efforts to minimise the paperwork as much as
possible because if there are too many forms to fill out and too much paperwork, the school
administration won't support the scheme especially as they are not being paid any additional
money for their work.
Some forms, however, are very important, for example the contract between the students'
parents and the school. The idea was to make the parents responsible for returning the
books they were renting from the school at the end of the year and to help the child look
after the textbook. From the school library the textbooks are given to the class teacher.
There is also a report on the school in general which is submitted to the regional education
department and yet another form that summarises the textbooks that the region has received
and which is submitted to the Ministry as well as the revolving fund managers. There is also
a advance-order form and the school textbook requirement forms.
Setting the rental fee is interrelated with the issues of curriculum and textbook life. When
discussions were held on this the Ministry decided that the optimum period for a book's life
in the schools would be four years to be in line with the curriculum, a more frequent revision
of which would not make sense. In addition to this it was thought that the textbooks would
not be likely to survive for more than four years. Thus the rental fee was calculated on the
basis of a four year life for the textbook. It is now produced using a formula which also
includes the inflation rate, annual loss and damage at approximately 5% of value per year,
thus enabling replacement at the end of four years, as well as the cost of one free textbook
and a teachers' guide per teacher. All in all, it comes to somewhat more than 25% of the
textbook's real cost but it ensures the possibility of replacing the books when the time
comes.
Another issue raised was as to whether there should be a different rental fee for each
textbook, and if it should differ from year to year. At first glance it seemed unfair that the
parents and students should pay the same amount for a book that has already been used for
3 years and is no longer new. Consequently some of the parents and teachers wanted to have
a differentiated approach, i.e. to have higher rental fees in the first year and to decrease it by
year 4, but there were arguments against this as it was also considered unfair to the parents
who would pay more for the textbook in the first year. There is also the psychological aspect
in that the parent who has already paid less one year might question whether they really need
to pay more for a new book. All these things were taken into account and it was decided to
have the same rental fee price for the same textbooks accross all four years. Different rental
fees for each year would also have been difficult to manage. There are 460 titles (115x4)
which would men that if there were 115 rental fees that differed annually there would be 460
different rental fees in all which would be unmanageable for teachers, school principals as
well as the people at the central or regional level. Thus it was decided that the simpler the
rental scheme the better as it is easier to explain to the parents and is more likely to be
successful.
The rental fee in the first year was different for each title but it was then decided that even
this would be the same and now there is now one rental fee per grade, the mathematical
average of all the textbooks for each grade is calculated, meaning that there are only ten
rental fees. One does not need to explain to the parents why one textbook fee is 200 AMD
and another is more. They just know that if they take one textbook they need to pay once
and if they take 10 textbooks they pay ten times the rental fee. It is very easy to manage and
control.
Although the rental fee is low in Armenia, it is still unaffordable for some people. Currently
30% of the school population in Armenia is considered to be poor, but the government is
not able to pay for all of them. As a result, it was decided that only the very poorest students
would receive free textbooks and the government agreed to pay for 10% of the children
enrolled in schools.
The distribution of the government allocation among the schools and the children was also a
very involved process. It was particularly difficult in Armenia because there is no official way
of registering the real income of a family, and until now there has been no official data on
the poverty level of communities. The Ministry of Finance and the Ministry of Education
have jointly issued a special decree which contains the guidelines for allocating the
government subsidies for free textbooks to socially unprotected children. 20% of money
contributed for these children will go to those in special institutions and orphanages because
they form an exceptionally poor part of the population and all such children receive free
textbooks. The remaining 80% of the government contribution is allocated to general
schools and approximately 8% of children in each school receive free textbooks.
Penalties are applied if a child does not return a book to the school by the end of the school
year and there are two options to remedy the situation. Parents can either purchase the
textbooks and give them to the school library, or they can pay the replacement cost which is
actually the commercial price of these textbooks. So this penalty is actually higher than the
original cost of the textbook to the project.
The management of the scheme is a part of the regular job of the school principal, the
school accountant, the school librarians and also the school head teacher. The librarian
receives the books and gives them to the head teacher and everyone in the school is actually
involved in running the rental scheme. At a regional level there is one representative selected
by the general meeting of the principals who voluntarily does this unpaid work. At the
central level it is managed by ministerial and NGO staff. In order to help in the management
and running of the project a special booklet has been produced. It is widely distributed and
has really helped everyone to understand the details of the scheme. It has special sections for
parents, teachers, principals and Marz Officials. An intense information campaign has always
been carried out where not only has the booklet been circulated and given to all the schools,
but there have also been regular announcements on T.V and in local newspapers. A short
film was transmitted on national T.V as well as local T.V stations in the regions to explain
the aims and details of this fund.
The establishment of our rental scheme and revolving fund was designed to achieve a
reasonable mixture of central and local management by the schools. The schools manage
their own revolving funds. Central supervision and overseeing of what happens helps to
overcome any difficulties, to assess, to evaluate and to make corrections when required as
well as to help solve problems. With this kind of structure for the rental scheme, and with
the planned introduction of a computerised advance ordering system in the near future, by
the completion of the project each school will know exactly how much money they have in
their revolving funds, what textbooks they need, how many books and the amount of money
required. The revolving fund will collate all the advance orders from all individual schools
and there will be central procurement of textbooks once more.
The Gambia
Theo George
Macmillan Education Ltd.
Background
The Republic of the Gambia has a total area of approximately 10,400 square kilometers and
is situated on the West Coast of Africa facing the Atlantic Ocean. It is surrounded on three
sides by Senegal and bordered on the West by the Atlantic Ocean. The country consists
essentially of a narrow strip of land about 10 kilometers wide on either bank of the river,
stretching from the mouth inland and eastwards for about 400 kilometers.
Population
The population is 1,025,867 (1993 Census) with a growth rate of 4.1%. The Gambia has a
population density of 96 persons per square kilometer. The majority are farmers and 60% of
the population live in rural areas. The current unemployed rate of 26% is particularly high in
a country which is ranked among the poorest and least developed in the world (UNDP,
Human Resources Development Report 1997). The total income of the average rural family
is about USD 25 per month (Household Education and Health Survey 1993 – 1994).
The government has put in place a comprehensive program for poverty alleviation. In spite
of this there has been a decline in the economic situation of the country. Donor withdrawal
after 1994, the devaluation of the CFA franc in 1994, the reduction of the re-export trade
and a decline in agricultural production have all contributed to the deteriorating economic
conditions which is adversely affecting the living standards of the people. The government
has had to cut back on expenditures particularly in the social services and currently an
economic recovery program is being worked on with the IMF and World Bank.
Education
A 6-3-3 system of school education was introduced in the Gambia in 1990 in response to a
decision contained in the Education Policy Proposal 1988 – 2003. The first nine years of
which are conceived as a broad and basic education which ideally in the long term should be
accessible to all Gambian children. For the present and immediate future resource
constraints do not allow it to be operational.
The Revised Education Policy (1988 – 2003) targets as its number one priority – “Illiterate”
girls and women in rural and urban areas with an emphasis on a renewed focus on the
provision of nine years of basic education. This priority takes into consideration formal and
non formal linkages for the promotion of low cost quality education which is gender
sensitive and balanced and seeks to:
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
Reduce gender disparities in enrollment
Improve the enrollment, retention and performance of girls
The education policy aims at improving:
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access
quality
relevance
Administration
The textbook revolving fund was originally intended to be administered at three levels.
National, regional and school levels. At the national level, the key administrators are
supposed to be the Permanent Secretary of the Department of State for Education, the
Chief Education Officer, the Deputy Chief Education Officer – services and the Textbook
Administrative Officer who deals with daily administrative responsibility.
The Textbook Administrative Officer
This officer is responsible for all administrative duties relating to the operation of the
scheme, which includes the following:
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record keeping
textbook distribution
rental fee collection
book supply and record keeping
pupil information programs
report writing
The Textbook Administrative Officer is required to liaise with these officers on a regular
basis – Deputy Chief Education Officer (services), Principal Education Officers, Principal
Book Production Officer and the Principal Accountant at the Department of State for
Education.
Regional
The Principal Education Officers play a very important role in the management of the
textbook revolving fund scheme.
At the regional level they:
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act as distribution centres for primary and middle school textbooks.
sponsor workshops for the textbook fund administrators.
collect and store unused textbooks and re-distribute them as needed.
monitor and inspect the textbook stock in each region. Provide the director of
services and the textbook administrative officer with quarterly reports.
collect rental fees from schools.
sensitize the general public on the benefits of the textbook revolving fund scheme.
The School Level
In most cases if not all, the task of managing the program is delegated to either a deputy
head or a senior teacher as the textbook fund administrator and is held accountable by the
head for the scheme’s day to day running at the school level.
The duties include the following:
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identifying new books
distributing books to students
collecting rental fees from students
requesting additional books when needed
maintaining textbook ledgers
developing a school book policy
instructing students on proper textbook care
collecting books at the end of the year and returning the textbook inventory and reordering form
providing reports for the regional education office
The senior management team is responsible for the proper administration and management
of the fund (see flow chart in appendix to this chapter).
Distribution
Staff members of the Book Production and Material Resources Unit (BPMRU) played a key
role in the distribution of the textbooks to the schools. This was due to the fact that the then
Deputy Chief Education Officer whose brief it was to administer the scheme, had his office
in the premises of the BPMRU.
The first set of books which comprised pupils textbooks and teachers guides for grade 1 & 2
& 7 were distributed to the schools in every region on the basis of a list prepared from
1993/1993 enrollment statistics. Movement of the books from BPMRU to the regions was
effected with trucks hired from the Gambia Co-operative Union whose vehicles were also
used for the distribution of food supplies for the School Feeding Program. The distribution
exercise commenced on the 6th of January 1993 and was completed twelve days later. A total
of 86,000 books were distributed to the regions. The first attempt at making textbooks
available to schools on a rental basis was carried out successfully, with very few difficulties or
problems.
Finance
With the co-operation of the World Bank which funded the initial textbook project; new
textbooks in the core subject areas of English, Mathematics, Science, Social Studies, Islamic
and Arabic Studies and Agricultural Science for all students in grades 1-9 have now been
introduced.
These books have been newly written or adapted from existing textbooks by subject panels
at the Curriculum Research and Development Division and are designed to match the new
education syllabi. Currently the pupils’ books are being printed in Hong Kong by Macmillan
Education Publishers while the teachers’ guides are being printed at Book Production and
Material Resources Unit in Kanifing. Eventually it is hoped that all books will be printed at
BPMRU.
The Department of State for Education does not have sufficient funds to provide books free
of cost to all students. Hence, to ensure a sustainable supply of funds, students are required
to pay an annual rental fee for the use of the books. This money is held in an account and is
used to order replacement copies as books wear out (every three years) and as student
enrollment increases.
The rental fees have been the same since 1992 and they are as follows:


for students in grades 1-4 = D20 or US$2 = PA
for students in grades 5-6 = D30 or US$3 = PA
The textbook plan was phased in over a three-year period. At the end of the third year a total
of 400,000 pupils and teachers’ books at a total cost of $900,000 were available for use in
primary and junior secondary schools (Book Development Council 1989). The Gambia
Education Sector Credit Textbook Component.
1992/1993 books for grades 1, 2 & 7 were introduced
1993/1994 books for grades 3, 4 & 8 were introduced
1995/1996 books for grades 5, 6 & 9 were introduced
During the three-year implementation period from 1992 – 1995 the Textbook Revolving
Fund Scheme was hailed by international observers as one of the best in Africa. This initial
success was due largely to the support given by parents and teachers to make the scheme
work. In 1992/1993 a total of about D939,506 was collected and in 1993/1994 the total sum
collected was D1,991,086 or $199,108. This momentum was maintained in 1994/1995 when
the total sum of D2,895,251 or $289,525. However like many development projects that
started off well, success or failure will depend largely on whether the scheme can be
effectively sustained after the implementation period.
The Book
How the books are used during school hours depends to a large extent on how classes are
scheduled, and also the available storage facilities. In some schools where storage facilities do
not exist in each classroom, the books are kept in the headmaster’s office. Each day a
teacher or class prefect retrieves the books for the entire class. During each class the teacher
asks all the students who have rented books to hold their books up for a quick visual
inspection to make certain that all books are accounted for and covered. At the end of each
day the books are collected, counted, and returned to the headmasters’ office.
In schools with storage facilities in each class, the class teacher supervises the distribution
and collection of books each day. The class prefect may be required to count the books after
each class or day to make certain all books are accounted for. If a book is missing, the
textbook ledger is consulted to find out which student is missing a book.
In junior secondary schools, students are often allowed to take their books home on a
regular basis. However each morning students are asked to hold up their books for a quick
visual inspection by the form master. If books are missing, not covered, or otherwise
damaged, the student would be required to give full explanation. Serious problems are
reported to the textbook fund administrator. At the end of term the form master inspects
each student’s book and records the condition in the textbook ledger.
Because books are a scarce commodity in many Gambian homes, it should not be assumed
that our students will know how to take proper care of their books. Hence the Textbook
Fund Administrator or class teachers must give a lesson on textbook care during the first
term. The class teacher should be certain to mention the following points to the students.

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Students must understand that they may use their books for the year, but the books
do not belong to them and they must return them at the end of the school year.
Students should be encouraged to take good care of their books so that the person
who has their book next year will have a good copy.
Textbooks are delicate and must be handled gently. When turning pages students
should be careful not to tear the pages. When putting their books inside a carrying
bag they must be careful not to bend the corner of the pages.
Students must not write in their books at all.
Building Community Support for Proper Care of the Books
The textbook Fund Administrator and the headteacher should also make every effort to
arrange a meeting with parents and village leaders to discuss the need for proper textbook
care and use. The only way the books will be properly treated in compounds is if parents are
willing to provide a proper place to store books in the house, help keep younger children
from damaging the books. Unless these textbooks have the support of families and the
community, we may find them to be only temporary assets of the schools.
Book Inspections
A critical component of any new project is careful monitoring. Inspections should serve a
dual purpose, (1) to find out how teachers and students like the textbooks and recommend
changes to either the content or management policies and (2) to ensure that schools are
complying with the textbook regulations. Monitoring for the textbooks needs to be done at
three levels.
The Inspectorate Unit of the Department of State for Education has not been performing its
role and responsibility of inspecting the books, monitoring and evaluating the schemes
operations as envisaged. The reports of the Unit on the scheme in general, and the textbooks
in particular have not been systematic, regular or thorough enough in scope.
HISTORY OF THE SCHEME
The establishment of a Textbook Revolving Fund in The Gambia was based on a study
made by John Mace - a consultant from Great Britain between the 12th June and 31st July
1991. Whilst in the Gambia, he visited primary, junior and senior secondary schools. He
interviewed several principals, headteachers, parents, and staff of the Inspectorate Division,
several government and non-government officials. At the end of the study he recommended
to the government of the Gambia, the establishment of a Textbook Revolving Fund under
the full direction of the director of services. The director of services in turn will seek the
assistance of the regional education officers who will be directly responsible for distributing
the course books to individual schools as well as collecting all rental fees.
The Textbook Revolving Fund Scheme which was established in 1992, has four main
objectives:
1. To increase the number of core subject textbooks used in primary and middle
schools.
2. To make textbooks more affordable for students and parents.
3. To improve the quality of the textbooks being used.
4. To ensure a sustainable supply of funds for replacing and updating books.
On Wednesday 27th May, 1998 the Secretary of State for Education announced at the
National Assembly that the book rental scheme for the lower part of the basic education
cycle grades 1-6 (the primary level) is to be abolished. This is in line with the UNESCO
Declaration for free and universal primary education and with the policy of the Department
of State for Education to reduce costs of schooling and to increase access to education.
However the implications for the school system and the sustainability of the strategy are yet
to be determined especially in light of the fact that in the recent past, books have been
ordered only through the revolving fund and through external aid.
At the upper half of the basic cycle that is grades 7-9, the book rental scheme will continue.
There is need however to re-visit the scheme and come up with fundamental changes in its
implementation.
Impact
Generally, students, especially those in primary school, felt that the textbooks are useful –
98% of primary school students and 86% of junior secondary school students stated that
they found the textbooks to be useful to them. The main reason primary school students
gave for the usefulness of the books were:
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the books were easily understood
they were suitable for their lessons
they dealt with local things that they were familiar with
Among junior secondary school students 42% felt that the books were easy to understand.
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43% felt the books covered the syllabus adequately
15% felt that teachers explained the topics well
Regarding their level of satisfaction with the time that they have access to the textbooks.

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54% of primary school students felt that time was adequate.
69% of junior secondary school students expressed satisfaction with the amount of
time they had with the books.
The main complaints that primary school students had about their level of access to books
were:
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
they were not allowed to take them home (53%)
they could not use them to do homework (30%)
periods were short for effective use
For junior secondary school, their complaints were:
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
books sharing causes distraction
no books during private studies
periods were short
The teachers’ perspectives on the usefulness and adequacy of the books were quite different
from that expressed by the students. Regarding the time that students have access to the
books, 71% of primary school teachers and 40% of junior secondary school teachers felt
that this was not adequate.
Regarding the usefulness of the books however; almost all teachers felt that the books were
very useful (94% of primary school teachers and 100% of junior secondary school teachers).
The main reason given by primary school teachers was that the books dealt with local places
and issues that students were familiar with, whilst junior secondary school teachers felt that
the contents of the textbooks were quite suitable for the syllabuses.
A few primary school teachers however complained that the science syllabus was quite
complicating for the students and therefore above their standards.
The book rental scheme greatly reduced disparities in access to school and education
materials between boys and girls and the haves and have nots. Parents who could not
previously afford US$25 (D250) to buy a set of 4 books found it easier to pay US$2 (D20) or
US$3 (30) at the primary level. However while the poorer families would rent the core
books, only children from wealthier families would buy other texts recommended by the
school thus enriching their won experiences.
The book rental scheme has recorded several successes in that the availability of textbooks in
schools has greatly improved teaching and learning. The pupil book ratio now stands at 2:1
in the basic education cycle. The cost of schooling has been reduced through the lower costs
of the schoolbooks and this has helped to increase enrollments particularly that of girls.
Constraints
Some of the constraints experienced since the inception of the scheme could be listed as
follows:
1. Lack of funds for the administration of the textbook scheme
Some of the administrative costs were supported by the Project Implementation Unit (PIU)
and others were not and had to be obtained on an ad hoc basis. It is imperative therefore
that all expenses be cost and built into the budget of the Department of State if the scheme
is to succeed.
The recurring annual expenses that are directly related to the administration of the textbook
rental scheme are:
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Distribution of books
Printing cost of stationery items
Payment of Commissions
Salary for a Textbook Administrative Officer
Training / Workshops
Monitoring
Expenses incurred for the collection of rental fees.
2. Rental Fees Collection
Despite the confusion over how rental fees were collected, the record keeping over the years
has been fairly satisfactory. However the following constraints were observed.
a. The financial returns from the cashiers were not passed to the division of services on
time.
b. Difficulty to obtain records of payments made into the Book Revolving Fund
Account at the Office of Accountant General.
c. Few schools have been returning copies of student receipts for the Book Revolving
Fund to the Division of Services. Furthermore, to date no inspection of filing system
has been set up for those schools who do submit their student receipts.
3. Payment of commission to TFAS
The original project document called for the Textbook Fund Administrator (TFA) at each
school to be paid a commission to compensate for the additional work in managing the
Textbooks. In a recent evaluation on the Textbook Revolving Fund Scheme, it was
discovered that the Administration has not been paying commissions to TFAs as regularly
and promptly as expected (Gorre Associates – Oct. 1997).
Distribution
Some of the distribution problems encountered during the early days of the scheme were as
follows:
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Insufficient quantities of books for grade seven.
Incomplete enrollment from the Planning Unit.
Inadequate invoice books.
Long and in-direct routes taken by truck drivers.
Inadequate number of hands to facilitate the system of the packing and six years now
since the scheme came into operation; the system of distribution of textbooks has
not changed significally from the way it was done when it was introduced.
Privately owned trucks are still hired for transporting the books to the schools. These are not
always readily available and can delay the process.
It is unreasonable to expect headteachers to use their own money to transport government
books from schools to regional offices. If this requirement is to continue the Department of
State for Education must provide either reimbursement for transport to pick up un-rented
books.
Monitoring and evaluation
If the textbook policy is to succeed there must be vigilant monitoring at all levels. Even the
best policies are useless they are implemented, monitored, evaluated and changed as needed.
Monitoring will take place at three levels. It will however be necessary to draw up
monitoring indicators and all users should be familiar with how these indicators are to be
used.
At the school level
The textbook fund administrator should closely monitor, demand, supply and alert Principal
Education Officers through their heads about shortages, surpluses and usage or non-usage
of the scheme and reasons for these.
At the regional level
The Principal Education Officer would monitor supply and demand based on information
received from the schools. In addition the PEO would also monitor the status of fee
collections and investigate in the event that there are any shortfalls to determine the reasons
for the shortfalls and find solutions to the problems. The PEO will also monitor and inspect
the book stock at each region and report on its status.
At the national level
The Deputy Chief Education Officer – services will through reports received from the
textbook fund administrators and the Regional Education Officers monitor the status of the
textbook fund. Orders for supply will be based on information received from the schools
and from data received from the Planning Department.
Evaluation
The fund will be evaluated annually to determine impact, constraints, and workability. All
stake holders will be involved in this exercise, that is parents, district education committees,
regional education officers and the services division findings from the evaluation will be
disseminated.
Lessons Learnt
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The process of consultation with and sensitization of schools, communities, regional
offices that generated much enthusiasm and support for the scheme did not continue
after the initial stage. As new pupils came on board, new parents had to pay and
communities lost track of the original intentions of the scheme. It was then that
difficulties started to emerge with cost recovery. Users had forgotten where they
stood with the scheme, where they were at and where they were heading.
Information flow from schools to the managers and vice-versa was grossly
inadequate. There should have been at least a leaflet that showed the status of the
textbook revolving fund at the end of each school year. Information would indicate
schools, enrollments, textbooks provided, amounts collected, outstanding amounts
to be collected, books in stock.
The lack of incentives acted as a demotivation for textbook fund administrators who
saw the task as an added burden with no financial or other benefits.
Inability or unwillingness of parents to pay the fees can be the outcome of poverty as
well as the lack of knowledge about the usefulness of the scheme.
The late arrival of books in some instances made pupils, parents and teachers feel
that they were losing out and that children had to be refunded part of the cost.
On the whole the rental fee collection has been far from satisfactory. Some textbook fund
administrators have been travelling from the provinces to Banjul with large sums of money
to be deposited into the main revolving fund account. In so far as the sustainability of the
entire book scheme hinges solely on the rental fee collection; more attention needs to be
given to its administration on the part of the government. This should include allocating and
improving access to funds for necessary expenditures.
The problems over the years highlight the need for closer co-operation between the regional
offices, book production and material resources unit, and the division of services. Transport
should always be made available for personnel from the division of services and book
production and material resources unit to visit the regional offices to discuss and monitor
the operation of the scheme at regional levels.
Judging from the amount of confusion and reluctance displayed and demonstrated since the
inception of the textbook scheme, it is apparent that sending letters and administration
forms to the regional office without follow up instructions is not good enough for the
success of the newly initiated book scheme. If the state department is going to use the
regional office to re-distribute unused books, then the necessary workshops must be
budgeted, planned and held. It is unreasonable to expect headteachers to use their own
money to transport government books from schools to regional offices. If this requirement
is to continue the Department of State for Education must provide either reimbursement for
transport or arrange to pick up unrented books.
Moldova
Philip Meerloo
Consultant
Onest Business Consulting srl
Moldova is a small country, a little bit bigger than Armenia. It is located between Romania
and Ukraine and it has a population of approximately 4.5 million. The main part of the
population are ethnically Romanians, we also call them Moldavians. The state language is
Romanian and other people are usually Russian speaking. Russian, Ukrainian and others
create some additional difficulties because in a small country we have education in two
languages. This reduces the number of textbooks printed in one language.
First a little bit about the background situation in Moldova under which we have
implemented the rental scheme. There is a chronically under-developed banking sector. We
have a large number of banks in the capital but in the country side there are only two banks
which are developed to the necessary standard. It was quite a difficult problem to select a
bank for our rental scheme and it was agreed the money should be kept in Chisanau (the
capital) in one account.
The next restraint is high currency risks. The Moldovan lev was quite stable during the first
five to seven years of independence but after the Russian crisis in August 1998, the lev
depreciated almost as much as the ruble and this created huge difficulties for the rental
scheme. The money collected in September 1998 depreciated twice. Therefore the money
which was meant to reprint a certain number of books will not be enough. Funds available
from the rental scheme will cover only half of these textbooks.
Another issue is the restrictive currency regulation of the national bank. We are not allowed
to exchange our accumulated national funds into hard currency. This is understandable from
the point of view of the national bank as they are trying to protect the national currency and
to keep it stable but this also caused many problems for the rental scheme.
Another issue is low income. Research from the World Bank shows that 80% of the
population earns less than $2 per day.
Short print runs are another issue of concern. Due to the fact that it is a bilingual country
even this small amount is divided into two, about 60% Romanian schools and 40% other
schools. There are also other minorities who require additional textbooks in their language,
for instance Bulgarians want to have Bulgarian language textbooks; Ukrainians want theirs
and so forth. These print runs are very small which results in very high unit costs.
The Armenian rental scheme model was implemented in Moldova. The structure is similar we have a bank account that is separated into sub-accounts for each individual school. These
schools are collecting money and transferring it into the main bank account and it arrives
into the sub-account of each individual school. We managed to create an NGO as an affiliate
to the Ministry of Education. This required extra budgetary fund which creates a tremendous
problem. Due to the fact that this is an affiliated fund to the Ministry, this textbook fund
account was integrated to the treasury system of Moldova, and thus into the Ministry of
Finance.
We made some efforts to solve this problem and we managed to convince the Ministries of
Finance and the Treasury to keep this money separated from all other funds. We have a
physically separate bank account and the Ministry of Finance does not have access to it so
the Treasury is just supervising this account and I think this is a more or less satisfactory
solution.
With regard to the money collection system, it is similar to Armenia except that each
individual school does not have real access to its sub-accounts so payments cannot be made
from these accounts. There is one bank account for all schools but the fund manager keeps
records of each sub-account and at the end of the year if there is any accumulated interest, it
is allocated to each school account based on the amount collected in this sub-account and
the time this money has resided in this account.
This textbook fund was created by a governmental decree affiliated to the Ministry of
Education so the same government decree established how this rental scheme should
operate. It recommended that books are used for 4-5 years. Projections are made without
any idea of what the actual macroeconomic situation might be.
Nonetheless we first tried to analyse the existing situation and created a cash flow model
linking up reprints with revenues. A small number of textbooks were introduced into the
scheme initially and it is increasing gradually. In the last year, a large number of textbooks
were introduced into the rental scheme. About 60 titles were meant to be printed last year.
We have a huge amount of money exposed to currency risk which is the major disadvantage
of this set-up.
It was decided that money would be invested in Treasury bills to make sure that by taking it
out of the Treasury bank account nobody can put their hands on this money. Treasury bills
in Moldova often earn good interest. In the first half a year, however, the scheme they did
not earn interest because no fund manager could put a signature on the bank order to
transfer money to buy Treasury bills.
Even to invest in treasury bills was still quite risky after the Russian crisis. The Moldovan
government promises that nothing will happen to Treasury bills but we still had some
doubts. We therefore recommended that this money be reinvested in textbooks right away.
Of course this meant producing textbooks before they actually were needed; one or two
years early. This required revision of the production plan of textbooks. One benefit is that
this actually gives us a smooth production plan over the year.
Many textbooks are replaced in the last year of the cycle so those books that are printed one
or two years ahead are actually around for six years. This creates some additional problems
for curriculum revision and to making changes to the textbooks. So financially it is prudent
but educationally it reduces flexibility. There are also storage facility requirements. We
recommend that textbooks not be printed more than two years ahead of usage and that
these are re-introduced into the rental scheme.
While a difficult process to implement from a financial point of view there are some distinct
advantages. We do not have a big cash balance in the bank which means low currency risk,
low investment risk and textbooks never disappear. In case the financial system of Moldova
collapses again it would be easy to revive the rental scheme because we still have books in
the warehouse that can be rented rent out again. Of course, all the above applies to a country
with an unstable currency and exchange restrictions.
This World Bank project is printing about 130% of the demand; 100% going to the schools
and about 30% remaining in the warehouse as a reserve. This is required to replace damaged
textbooks at the end of the year. Parents have to pay the full cost of replacing the textbook if
it is lost or damaged. Parents are paying so as to enable the reprinting of reserve textbooks.
Textbooks are printed in Moldova by local publishers. As in Armenia, this rental scheme
gave a strong push to the Moldovan printing industry as well as the publishing industry.
Publishers, together with authors, are developing new textbooks and it seems to be working
well. A few textbooks are printed outside the country but these are mostly English, French
and other foreign language textbooks. However, Romanian and Russian textbooks are
printed in Moldova. The government policy is to create Romanian textbooks first and then
translated into Russian.
In secondary schools and advanced education there is more freedom for using alternative
textbooks; however, poor countries do not have a lot of choice primarily due to lack of
alternative materials. In wealthier schools parents pay the teachers’ salaries because the
government is unable to pay the monthly salary. Parents pay for books which are not
textbooks and not necessarily linked to the curricula of the Ministry of Education in
Moldova. All such books are invariably imported from Romania. Few if any are part of the
rental scheme.
On the question of partial introduction of a rental scheme, imagine that you are in a country
where there are two schools that can introduce it and people are used to buying books for
the children so half the parents would say no that they want to buy as they want the best
education for their children and the best textbooks and they can afford. So you have half the
class buying. Next time it will be 30% then 60% and the finance of the scheme will become
very shaky indeed. You would have to set a higher rental fee to allow for this fluctuation so
this is a little bit difficult in this respect.
Comparisons of the five case studies show differences in industry context. In Armenia a
publishing industry as such did not actually exist and the books are being developed now the
same is true in Moldova. You could go out and buy a book from a Romanian publisher but
it would not match the Moldovan curriculum. In our two African countries the comparison
is very different. In Lesotho the books are being bought from foreign publishers and they
are books which already exist. The Gambian books are books that have been specially
developed for the Gambia. In Barbados these are books which are available throughout the
West Indies and beyond. Are we talking about creating a rental scheme or are we talking
about creating first of all the publishing industry on which the rental scheme can live. The
bulk of the Eastern European and Central Asian countries which we are thinking about there
is no publishing infrastructure so that while we are talking about rental scheme we are talking
about building a publishing industry which eventually should provide a choice of books and
will enable schools to operate their own individual school rental schemes. But to jump from
a single monopoly state publishing house which is producing books that are absolutely rigid
and are used throughout the system to book choice from a book trade where the books can
be purchased by schools holding their own funds and bringing money in from parental
contributions and running their own rental schemes. We are talking about a quantum leap.
Frances Pinter: - Is there any precedent where these fiscal and legal issues have been
addressed, that is where a World Bank project comes along and it is very clear that there is a
particular law that makes it impossible to safeguard the financial health of the project, for
example this issue of not being allowed to hold the funds in hard currency, that would so
easily eliminate a large part of the risk at no real cost to the government. There are all sorts
of reasons why the government would not wish to make such an exception but is there any
precedent of having persuaded the government to break its own laws or change them to
make it possible?
Theo George - In the Gambia the bank was able to come to terms with the government and
for the textbook reporting fund to have access to hard currency any time we need. All we
would need to do is approach the central bank and they would make the currency available,
if the commercial bank had it. But it was more or less a condition for the effectiveness of the
loan.
Frances Pinter - Yes it was a condition, but did it require a change in the law? I am looking for
a precedent where it was possible to actually change the law or create an exception to the
law.
In most cases the revolving fund itself does not require a change of the legislation. But
certainly issues were raised at appraisal stage and recognized that there was a need for a
change in the law which triggered the creation of the NGO to manage the fund. In nearly
every country a change in the law effecting import duties or taxes is essential because the
difference in imported paper is often up to 40%. Therefore it is a big issue and one would
have to go right to the top of the Ministry of Finance with the World Bank people and with
their help in order to get the right decision. The success rate is probably about 25%.
Certainly other countries have waived taxation and import duties on paper. During the
execution of the World Bank project we have made some changes to the law, specifically on
value added tax matters.
Now the question of the ‘gold mine’. People want to take money out of the rental scheme.
In Moldova this is true even though the money is in the state treasury. As the money is in a
separate bank account we are sure that the government will not be able to get its hands on it.
The weakness of the system is that it is an affiliated fund to the Ministry of Education and
they have a lot of influence. For this reason we have recommended that the administration,
supervision and control system of the textbook rental scheme is independent. While money
is kept in the central account, the rental scheme itself is decentralized. All the major
decisions are made in schools. The school is the body that manages the rental scheme. We
also propose that commitment by the school should actively be promoted. It is the school’s
business to collect the necessary funds and ensure that the correct number of books is
ordered. And later on it will be the school’s business which textbooks to buy although at the
initial stage only those textbooks which were printed within the framework of the World
Bank project will be used and included in the rental scheme.
A decentralized textbook rental scheme has the following major advantages: more parents
are involved in the decision making process which is very likely to increase people’s
confidence in the rental scheme which is very important also. Also the textbook rental
scheme is more orientated to specific needs of each individual school because the school is
taking decisions for itself. And having more confidence in the rental scheme, parents are
more likely to actively to contribute to rental fees.
We have proposed that parents decide the amount of rental fees to collect. The fund
manager together with the supervisory board of the textbook fund develop and recommend
the minimum level of rental fees based on calculations and forecasts and projections. But the
school knows that they have to collect a certain amount of money. We look at the school as
a small community of people which have common interests, to give their people an
education.
The next issue is subsidies. When we started working on this rental scheme there was an
assessment of the poverty level in Moldova that said that about 20% of people in Moldova
are below the poverty line. The government decided to provide subsidies to 20% of pupils.
These were to be paid by regional governments. We recommended that a special committee
be created at the regional level who will distribute these subsidies because this poverty
analysis has shown that in rural areas people have lower incomes than those in towns or
cities.
In the initial stage we did not allow alternative textbooks. Later on alternatives should be
allowed by the Ministry of Education. Our major argument with our government was that to
select only one textbook by an evaluation committee inevitably introduces a certain amount
of subjectivity. It may happen that a very good book may not be accepted into the rental
scheme and in that case the publisher can take the risk to print just sell them on the market.
This has already happened in Moldova where one publisher considered his book to be much
better and they have all been sold. So in the end the government was left with a lot of
unwanted textbooks in stock. This formed the basis of our argument in favour of alternative
books in the scheme.
Poverty assessment in Moldova has shown that most of the population was really limited in
their ability to afford rental fees and therefore we had to stick to core textbooks which
means that some major subjects listed here, like mathematics, literature, language, physics,
chemistry and so forth, rather than music or arts.
Another issue that arouse was the sharing of textbooks amongst children. We found real
opposition from the government on political grounds. The aim of the rental scheme is to
provide each individual pupil with a set of textbooks. However, if this is unaffordable then
this can be a solution. Nonetheless, it must be remembered that this will generate less funds
for future printing.
An interesting issue is the life of the textbook, which we covered in our research. We noticed
that some textbooks are very intensively used and others less so. Pupils have lessons in
maths and language every day and they take the books home and back to school every day.
Other textbooks might be used once or twice a week so this led us to conclude that these
textbooks should have a different useful life span in the rental scheme. It was recommended
that we reduce the life expectancy of language and maths textbooks. While they might be
intended for use over four or five years they normally do not look very good after two or
three. In the latter years printers tend to reprint new textbooks which parents can then
always buy on the market. This is not good for the rental scheme. So we recommended to
reduce the expected life span of these heavily used textbooks.
Regarding technical specification, our aim was to reduce cost or to increase the useful life of
the book. All the textbook experts told us that we would never increase the life of the
textbook in the specification so we have recommended that in the higher grades we keep the
textbook simple by reducing colour textbooks or black and white and using lighter paper.
LESOTHO
Motsi J. Mokhokhoba
School Supply Unit Manager
Ministry of Education
Introduction
Textbook Financing Prior to the Current Textbook Rental Scheme
Before the inception of the current textbook rental scheme, parents bought books from only
two retail book stores, both situated in the lowlands city of Maseru. The interest in
profitability of the retail book stores and their uneven geographical distribution forced them
to charge high prices which were unaffordable to the majority of the parents.
As a result of this lack of equitable distribution of textbooks among children of different
socio-economic backgrounds, it became inevitable that the Lesotho Government sought
ways of addressing this problem. A 1977 Consultancy Report by Mr Hugh Hawes, a British
consultant recommended that the government formulate a policy on providing affordable
textbooks and other instructional materials. The issue of provision of textbooks led to the
key question of how to find a reliable source of funding of a sustainable scheme.
Establishment of the Textbook Rental Scheme
It is because of the above-mentioned state of affairs that the Lesotho’s Textbook Rental
Scheme initially known as Book Supply Unit, was officially launched in 1982. The scheme
was financially supported by the World Bank credit agreement with the Government of
Lesotho. The scheme fell under the authority of the Training for Self-Reliance Project
(T.R.S.P.)
In 1983 the Lesotho Government issued a policy directive that reserved the right of the
Ministry of Education to prescribe and approve the textbooks used in primary schools. The
Ministry also undertook to prescribe the textbook rental structure.
The Textbook Rental Scheme started as a pilot project in the Thaba-Tseka district and was
successful. The project was then expanded in 1984 to the other nine districts of the country.
Initially the scheme provided textbooks for three core subjects namely, Sesotho, English and
Mathematics in all the classes of the primary school level (Standards 1 to 7). The textbook
rental fee structure from 1983 until its revision seven years later is shown in Table 1.
Table 1. Book Rental Fee Structure from 1983 to 1989
Class (standard)
*Rent Paid
Standard 1
M2.00
Standard 2, 3, and 4
M3.00
Standard 5, 6, and 7
M5.00
(*The currency of Lesotho is Maloti (M) )
The Book Supply Unit was later assimilated into the Ministry of Education in 1987 and
became known as the School Supply Unit, a governmental organisation which is under the
control of the Ministry of Education-Lesotho. It is responsible for overseeing a revolving
fund, whose main purpose is to help every child irrespective of geographical location, race or
colour, religious affiliation and cultural or family background to obtain textbooks prescribed
for Lesotho’s primary schools.
Major Changes and Challenges that the scheme is faced with
Since its inception in 1982, a number of challenges that necessitated changes were
encountered by the School Supply Unit:




First, the number of subjects (with their relevant textbooks) that the scheme
financed were initially three, namely Sesotho, English and Mathematics. With the
passage of time additional subjects, namely: Science, Social Studies and Agriculture
were added in the primary school curriculum. The implications were that additional
funds were required to finance the new textbook titles. In order to accommodate
these changes that threatened the financial viability of the textbook rental scheme the
Ministry of Education intermittently revised textbook rental fee. These revisions
appear in Table 2.
Initially the School Managers as representatives of the proprietors of schools (the
majority schools in Lesotho are church schools) were responsible for collecting
rental fees from their various parish schools and later handing the money over to the
School Supply Unit. Due to the slow rate of textbook rental fee collection the
Ministry of Education had to change the person who was responsible for collecting
the textbook rental fees. These policy changes were announced in 1988 and effected
in 1989. Under the new arrangement the headteacher became the agent of the
Ministry of Education and was empowered to collect and deposit the textbook rental
fee in banks or pay it directly to the School Supply Unit.
Although the School Supply Unit is successful this scheme is critically threatened by
the schools which fail to pay their textbook rental fees leading to shortages in the
revolving fund (see Table 5, collection rates varying from 79.6% - 93.4%).
Inflation has over the years threatened the very existence of the revolving fund. This
has led us to increase textbook rental fees. Table 2 shows the level of the book rental
fees that were and are being charged to parents since the School Supply Unit’s
inception.
Table 2: Book Rental Fees increase from the year 1983 to the years 1989, 1993, 1996 and
1997
Grade
1
2
3
4
5
6
7
Total
Maloti
1983
1989
M2.00
M4.00
M3.00
M6.00
M3.00
M6.00
M3.00
M6.00
M5.00
M9.00
M5.00
M9.00
M5.00
M9.00
M26.00
M49.00
1993
M7.00
M10.00
M10.00
M10.00
M14.00
M14.00
M14.00
M79.00
1996
1997
M12.00
M15.00
M18.00
M23.00
M18.00
M23.00
M18.00
M23.00
M24.00
M30.00
M24.00
M30.00
M24.00
M30.00
M138.00
M174.00
1998
M15.00
M23.00
M23.00
M23.00
M30.00
M30.00
M30.00
M174.00
Year
In 1983, the combined fee rates for all grades was M26.00. In 1989, that was increased by
approximately 90% to M49.00 per annum. A further increase was authorised in 1993
bringing the unit annual fees up to M79.00 – an increase over the 1983 collection of 204%.
Table 3 shows the number of textbook titles financed by the revolving fund.


In some instances textbook rental fees are misappropriated by some headteachers,
leading to the erosion of the funds from the scheme.
The curriculum of the country has been changing frequently due to new social
pressures. However, these changes come at a cost which often threatens the
sustainability of the fund. When the number of subjects in a curriculum is increased
the School Supply Unit’s revolving fund has to finance an increased number of
textbooks without any injection of money to absorb new costs. Even if the
curriculum subjects stay the same, there is a negative impact on the revolving fund
when the existing textbooks are revised or new books replace the old ones. It is
more expensive to obtain a newly printed and published book than obtaining
reprints of already published books.
Table 3: Cost of Provision of Required Pupil’s Textbooks in 1986, 1995 and 1997
Cost of one set of Books
Grade
1
2
3
4
5
6
7
1982
2.51
2.97
2.53
4.97
8.22
7.70
8.36
Total cost % M37.26
increase
over
1986
1995
18.09
20.41
31.31
50.15
62.52
65.75
66.88
M315.11
1997
31.75
36.46
55.02
70.41
93.17
98.28
99.59
M484.68
According to a report by International Book Development (IBD) (1995) in 1986 the unit
cost for the provision of a complete set of books for grades 1 to 7 was M37.26. By 1995, the
cost had risen to M315.11, an increase of 746%. In 1997 the cost rose to M484.68, an
increase of M1,200% over 1986 unit cost.
The causes of the dramatic percentage cost increases appear to be:


The increase in the numbers of titles required to be used in schools. Table 4 below
illustrates the number of textbook titles financed by the revolving fund.
The steady devaluation of the Maloti (=Rand) against major world currencies
(production costs being dominated by paper – a world price based commodity).
Table 4: Number of Textbook Titles Financed by Revolving Fund: 1986 & 1998
Grade
1986 No of
Pupil’s Books
1998 No of
Pupil’s Books
1
3
6
2
3
6
3
3
7
4
4
7
5
4
8
6
6
11
7
6
11
Total
29
59
% Increase
103%
In 1986, the revolving fund financed the supply of 29 textbook titles for pupils in grades 1 to
7. In 1998 the number of titles increased to 59 – an increase of 103%. This increase is a
direct reflection of the increase and revised curriculum requirement of the National
Curriculum Development Centre (NCDC). The requirement to fund considerably increased
quantities of textbooks obviously requires an increase in the current level of textbook fees
from parents.
To avert this danger of incessant curriculum expansion without parallel injection of funds,
the School Supply Unit and the Ministry of Education’s curriculum designing and
developing arm - National Curriculum Development Centre have regular planning and
assessment meetings under the chairmanship of the Chief Education Officer – Curriculum
Services.


Historically, the allocation of textbooks was uneven. After the introduction of the
use of requisition forms in 1993 book supplies are now delivered directly to schools
rather than parish centres to ensure prompt and equitable distribution.
The constant supply of textbooks to schools has reduced pupil textbook ratios from
4:1 to close to 1:1 in most subjects at most grades in most schools in the country.
Collection Rates
The IBD report (1995) explicitly indicated that a major part of the School Supply Unit’s
success in maintaining the fund has been the sustainability of a high level of fee collection. It
pointed out that one of the major reasons for the failure of revolving funds elsewhere in the
world was attributable to the inability to collect contributions consistently and adequately.
Table 5 below illustrates collection rates of School Supply Unit since 1983.
Table 5: Collection Rates
Year
1983
1984
1985
1986
1987
Collection as % of invoices
85.5%
84.7%
87.4%
92.5%
87.3%
1988
1989
1990
1991
1992
1993
86.2%
93.4%
80.4%
79.6%
89,4%
90.2%
In 1988 a campaign was launched to recover the debt. The campaign resulted in a very good
level of collection in 1989. In 1991 collection rates dropped to 79.6% and to correct the
situation field officers were appointed in 1992. The success of this action is demonstrated by
the immediate increase in the collection rate by 10%. The level of collection continued to be
sustained in 1993. Therefore, it is proper to indicate that collection rates need to be
maintained and intensified within reasonable operational budgetary limits. The Lesotho
Government, in responding to this concern increased the number of field officers from two
to ten in 1998.
The Operation of the Current Textbook Rental Scheme
The headteacher, as from 1989, was given the responsibility of being the agent of the School
Supply Unit. He or she is responsible for the collection and depositing of the textbook rental
fee into the School Supply Unit’s bank account or paying it directly at the School Supply
Unit. The headteacher and the School Supply Unit teacher coordinator keep a register of
pupils and then reconcile the number of pupils with the textbook rental fees paid at the
school. The headteacher and the teacher coordinator are not specifically rewarded for
accomplishing this responsibility, however, when the Ministry of Education designed the
salary of the headteacher, it took into consideration the various duties which also entail the
collection of school related fees.
The Ministry of Education’s Statistics and Planning Department track the number of pupils
in schools by requiring an annual statistical form to be filled and returned to the Statistics
and Planning Department before the end of March. This information is the basis on which
the School Supply Unit compiles its annual records. The district Ministry of Education’s
Inspectorate checks on the availability and the number of books at schools.
In order to deal with the increasing number of pupils, the School Supply Unit sends
Textbook Requisition Forms (order form) to headteachers to fill in order to replenish
existing stock or those books whose life-span has expired. The School Supply Unit has
designed a simplified Prediction Model which helps in ordering textbooks in the year
preceding the intended year of delivery of textbooks. Sometimes predictions may fall short
of the exact number of pupils who enroll at the beginning of the following year. Such a
shortfall happens in few cases only. Then the headteacher is required to order the few
textbooks that are needed to top-up the shortfall.
When numbers constantly decrease the stocks of books are left with schools but when
storage space (lockers) is limited the School Supply Unit may take the books back and this is
acknowledged in the inventory record of the school. In some cases one school may have
excess textbooks which it may want to transfer to a neighbouring school. This is allowed
only when the School Supply Unit has been notified in order to make the necessary
adjustments in the two schools’ inventory records.
Transfer from one school to another by pupils is rare. However, when it occurs the
headteacher of the school from where the pupil transfers notifies both the school to which
the child transfers and the School Supply Unit about the transfer, stating whether the child
has paid the textbook rental fee and if paid will attach the relevant receipt.
The Financial Aspects and Documentation of the Textbook Rental Scheme
When the Lesotho Government obtained a loan from the World Bank, the revolving fund
was immediately started and provided the capital for buying textbooks. The scheme has been
operating successfully for a period of sixteen years without any need for financial topping-up
from the government or any other form of private funding.
The funds paid by parents are deposited by the schools’ headteachers into the School Supply
Unit’s current accounts that have been opened in the branches of Lesotho’s banks in the ten
districts of Lesotho. The Ministry of Education of Lesotho has made standing agreements
with Lesotho’s banks to transfer the School Supply Unit’s funds from the current account to
the 24 Hours Call Account. The latter account generates interest that serves as a vital
cushion to the revolving fund’s sustainability.
The revolving fund operates by way of purchasing textbooks in large numbers from both
local and international textbook suppliers. When purchasing textbooks, international
suppliers charge prices in the currencies of the countries from which they originate. The
majority of the books from international suppliers come from Britain. Although there are
constant fluctuations, Lesotho’s Loti exchange rate with the British Pound is approximately
Ml.00 to 10.00 British Pounds. This puts a strain on the scheme’s finances because it makes
the textbooks very expensive.
These textbooks are procured a year prior to their delivery to schools. The textbooks are
then received and stored in warehouses. Normally a consignment of textbooks arrives at
warehouses in November of each year. The headteachers of schools are responsible for
placing their textbook requirements using requisition (order) forms, which they hand in to
the School Supply Unit in September each year. The textbooks are processed, sorted, packed
and placed in their appropriate delivery routes by storekeepers according to the requisition
(order) forms and inventory forms. The replenishment of textbooks depends on the lifespan of the book which is three years and also on whether a school has specific problems
that may have shortened the life-span of the books.
When the textbooks are ready for dispatch, the School Supply Unit delivers them to schools
using its own vehicles and occasionally privately hired vehicles. The drivers deliver the
textbooks to each and every school in each of Lesotho’s ten districts. The personnel
delivering the textbooks have to board and lodge at each district to complete their work
quickly and successfully. The responsibility of receiving textbooks lies with the headteachers
of schools who then keep the textbooks in the booklockers supplied by the School Supply
Unit. When books are damaged there is no repairing service. However, parents and teachers
rebind the books by using needle and thread and other materials.
In cases of damage or loss, whether willfully or through negligence, the parent of such a
child is required to replace the book by buying it at market price in retail stores. Concerning
the disasters that may befall books, the School Supply Unit investigates and obtains evidence
of such a disaster. When the evidence shows that the disaster was unavoidable, schools are
supplied with relevant replacement copies.
Field officers and storekeepers are jointly responsible for looking into and reconciling the
number of physical books present at the school with the School Supply Unit’s inventory and
also inspecting the conditions under which textbooks are kept.
Handling of Money and the Sustainability of the Textbook Rental Scheme
The whole sustainability of the scheme lies with the yearly contributions of parents in the
form of the textbook rental fee. Parents pay the textbook rental fees to headteachers who are
the School Supply Unit’s official textbook rental fee collectors. This is done at the beginning
of each school calendar year which starts in January of each year. The headteachers then
issue receipts of payments and either deposit the textbook rental fee in our bank current
accounts available in all districts or pay the said fee at the School Supply Unit offices located
in Maseru.
Upon receiving the money from the headteachers our accounts section keeps records to
provide debtor and creditor information. In the process they use the following documents:



The receipt, bank deposit slips and cash analysis book are used to show which
schools paid and how much they have paid.
The above information is transferred to the individual school ledger.
The information from ledger is then arranged in districts to make a comprehensive
document - the debtor’s record.

From the ledger and debtor’s record; invoices and later statements of account are
sent to debtor schools.
By tracking the debtors the accounts section provides a very valuable foundation for the
debt-collecting section. The School Supply Unit has one field officer per district who
monitors and activates the payments of overdue textbook rental fees which are under the
custody of headteachers. The two sections mentioned above, contribute to sustainability of
the fund.
Textbook Rental Scheme and How it Addresses Important Equity Issues
The textbooks remain the property of the Ministry of Education at all times and are under
the custody of its agent, the headteacher. The parents are required to rent the textbooks used
by their children.
The Ministry of Education’s curriculum designing and developing arm - the National
Curriculum Development Centre - is charged with the task of choosing the content of
education and the only textbooks to be used at each class in the primary schools.
Lesotho has few problems concerning minorities. Those schools which have been selected
to cater for minorities in a multi-cultural context are allowed to apply to the Ministry of
Education for procuring textbooks that suit their conditions.
So far, the School Supply Unit supplies all the books for the subjects prescribed for the
primary schools. The subjects are: Sesotho, English, Mathematics, Science, Social Studies
and Agriculture.
In cases where pupils cannot pay, the headteacher has been instructed to enforce the rules by
disallowing such a child to attend school. This is a very difficult decision since it seems to
discriminate against those coming from poor families. However any form of leniency in the
payment of the textbook rental fee would lead to a spiral of non-payment that would
eventually lead to the collapse of the scheme. People from needy families are referred to and
helped by headteachers to obtain funding from the Ministry of Education’s arm of National Manpower Development Secretariat and other charitable organizations.
In the case of those who do not pay but have the means, the school committees that are
administrative structures at school level can help by lodging a case with the local Chief and
Village Development Council. In most cases the money is retrieved.
The Contribution of the Lesotho Government in the Success of the Textbook Rental
Scheme
The Lesotho Government has been and will remain the pillar of strength to the Textbook
Rental Scheme. All the operational, administrative, warehousing and distribution costs are
borne by the Lesotho Government through the funds provided under the Ministry of
Education’s recurrent budget. This vital contribution remains a meaningful subsidy to the
fund as well as to the parents.
Textbook Rental Fee Collections and its Relationship with Book Replacement Costs
Table 6: Indicates textbook rental fee collections and its relationship with book replacement
costs 1996 - 1998
Year
Collection
Expenditure
1996
5 517 234.43
NIL
Balance
available after
the expenditure
22 108 023.55
1997
1998
5 723 096.63
6 337 823.40
7 988 504.00
4 374 479.49
19 842 916.18
21 805 960.09
According to Table 6, intensive efforts were made by way of visits to schools hence
substantial amounts were collected in 1998. Furthermore, expenditures were not incurred in
1996 and in 1997 a large amount of money was used for the purchase of textbooks.
Deliberate efforts have always been made to buy large quantities of textbooks in order to
take advantage of good discounts (in some cases the discounts are as high as 50%).
Perceptions of Teacher, Parents, and the General Public on the Textbook Rental
Scheme
The School Supply Unit’s field officers hold, on a frequent basis, workshops and meetings
with teachers, school committees and parents to address issues concerning the running of
the scheme. During these people express their views. In the majority of instances they value
and appreciate the contribution the scheme is making towards making textbooks available
and affordable. The views of the general public are periodically expressed in the local radio
stations talk-shows. Generally the participants in these shows are supportive of the scheme.
Lessons to be Learned by Countries Wishing to Establish a Textbook Rental Scheme
Before a scheme of this nature is embarked upon there should be a feasibility study so as to
ascertain whether and how the scheme will relate to its clientele and to establish whether the
people of the country have the right attitude and willingness to accept change in the system
of book provision. Prior relevant training and study tours to countries running successful
schemes should be given to those who will be entrusted in running their proposed schemes.
During the inception of the scheme, community members should be urged to contribute a
certain amount of money as capital and be declared co-owners of the scheme. The people
will regard the scheme as their own rather than an external initiative imposed upon them.
When a scheme is established there should be a period of at least three years to put to trial
this kind of project. The pilot project should take place in one region or district. The
introduction of the scheme should be carried out in three phases. The first phase being the
implementation in the first grade (Standard 1) and in the following year, the second phase to
be introduced in grade two and so on and so forth.
At the end of the three years of the pilot project there should be an evaluation by an
independent and experienced team of experts. If the scheme’s problems are minor,
remedying of problems should be made. It is after these actions that the scheme can be
taken to other classes, in phases as shown above and expanded to other regions or districts.
Governments should provide subsidies by absorbing administrative and operational costs.
There should be regulations that restrict the governments’ use of the revolving fund for
activities other than that which it was intended for.
Establishing a legal framework to deal with defaulters is another requirement.
Conclusion
The Lesotho Textbook Rental Scheme is playing a vital role in providing equity, quality and
access to education in the primary school level. We therefore envisage the scheme extended
to the secondary and high school level where at present the parents buy textbooks from
retail bookshops at very high prices. The fact that we act as the ‘wholesaler’ can help us in
cutting down the costs of textbooks in secondary and high schools of Lesotho.
BARBADOS
Dorien Pile
Principal
Combermere School
St Michael, Barbados
OVERVIEW
Barbados is a small, highly developed island in the Eastern Caribbean. Its excellent education
system has its antecedents in the period of early settlement in the Seventeenth Century e.g.
Combermere School can trace its origins to the l690’s. There is universal access to education
from primary to University levels. Compulsory education is enforced up to age sixteen and
education is free at all levels in the public, government supported system. There are 23
public secondary schools, with a population of approximately 22,000 pupils. It is in these
schools that the textbook rental scheme, which will form the basis of this presentation, is
established. While there are many basic national similarities, the details presented here relate
specifically to Combermere School. This academic, co-educational public secondary school
has a student population of approximately 1,000 and a complement of 52 teachers.
The Barbados Government established a centrally operated textbook rental scheme in 1975
for all public secondary schools. This places the local scheme among the oldest extant ones.
Before this, many secondary schools operated limited site-based rental schemes as part of a
welfare support system for needy students. Most textbooks, however, were ordered through
commercial booksellers and either sold by them or by the schools. From 1975 to 1992, the
Ministry of Education was responsible for running the textbook rental scheme in the island.
The book lists, ordering, distribution and control of the rental fees were supervised by a
special unit in the Ministry. This centralised system came to an end in 1992, when a Cabinet
Order returned the full organisation of the scheme to the schools. The rental fees are
determined by government policy and fixed by the Ministry of Education. This fee is
standard across the secondary school system.
It is generally agreed that learning materials are critical to effective and efficient learning in
the classroom. The greater the variety, the greater the relevance to and the greater the
students’ interaction with these materials, the more beneficial the impact on learning.
Textbooks are the most fundamental types of learning materials. While they may be overrelied upon, textbooks do provide all students with:


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Common sources of information
Common stimuli
Common reference points for class discussions
Textbooks allow for basic equity in education. This is especially true in developing countries
where inadequate financial resources and physical and infrastructural problems impact on
the availability of other learning materials. But even this basic condition for equity is
constrained by the spiralling cost of textbooks. Most textbook prices have risen over 100%
in the last two decades.
Textbook rental schemes therefore provide a valuable educational response to many of the
problems parents and teachers face when structural, financial or logistical factors prevent
many students from acquiring vital textbooks for use in the teaching-learning situation.
MANAGING THE SCHEME
Finance
The initial start-up funds, when the scheme was returned to the school, were a grant from
the Government. The funds are replenished by the fees paid by the students. The Textbook
Fund is meant to be self supporting and viable. The fees collected are banked and
administered by the Secretary/Treasurer of the school’s Board of Management, and the
Fund is subject to an annual audit by a professional firm of accountants. The auditors’ report
must be submitted to the Board of Management and the Ministry of Education.
The annual rental fee per student has risen from US$ 2.50 (BDS$ 5.00) in the mid nineteenseventies to US$37.50 (BDS$75.00) in 1999. This provides the scheme with an annual
budget of US$37,500.00 (BDS$75,000.00). The level of replacement and the new book
orders are adjusted to fit within this total budget. The greatest expense is expected at the
senior levels in the school where new book stocks are more frequently needed to support the
curricula required by external examination bodies. These demands could easily deplete the
funds of the scheme if great care is not exercised. However, with the proper care of books
and the smallest acceptable attrition rate the fees can support the expenditure. The annual
expenditure on new books will vary. Sometimes it can be as low as US$10,000.00
(BDS$20,000.00) while, at other times, it may exceed US$50,000.00 (BDS$100,000.00) in
some schools. Hence sustainability is a critical element of any scheme and all steps must be
put in place to ensure that proper fiscal management is practised and monitored.
The annual rental does not cover the cost of a set of new books at any level. The table below
sets out the average cost of a set of books for the various levels at Combermere in 1999.
This includes both new and recycled texts used in the scheme.
Form Level
Actual Costs 1999
First
US$ 56.00 (BDS$ 112.00)
Second
US$ 62.50 (BDS$ 125.00)
Third
US$100.00 (BDS$ 200.00)
Fourth & Fifth
US$112.50 (BDS$ 225.00)
Sixth
US$150.00 (BDS$ 300.00) or more
There are some cases where parents are unable to afford the annual fee for their children. In
those circumstances, a number of types of assistance is available:



The Government (through the Ministry of Education and the Welfare Department)
give waivers of fees for an academic year.
Parent-Teacher and Old Scholars’ Associations assist needy students.
Teachers/Principals may pay the requisite fee for deserving students.
Organisation
The local textbook rental scheme is run by the schools, within basic guidelines set out by the
Ministry of Education. The books are the property of the school and ownership is vested in
the Board of Management of the school. The rental scheme must be supervised by the
Principal, but the day-to-day running and organisation is done by a specially selected
member of the teaching staff and the library assistant or the clerk/typist. The book lists are
prepared for each year group by the officers in charge of the scheme. Suggestions for the
inclusion of texts are given by the Heads of Department and subject teachers. Fluctuations
in class size do not really affect the functioning of the school’s scheme unless the classes are
unexpectedly large and the current stock of a particular book is inadequate.
Among the records kept are:



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


Stock cards.
Book lists.
Invoices from booksellers.
Rental contracts with parents/guardians.
Duplicate receipts for fees paid by parents/guardians.
Copies of waivers received.
Payments records of staff and student personnel who work in the scheme.
Whenever a change in the syllabus is proposed, the school requires that at least one year is
given, so that adequate preparation can be made to ensure that the new texts are ordered and
received in good time. There is usually a long period of five to six months between the
placement of an order and the receipt of the books. At the form levels where students write
public exams, the late arrival of the recommended set texts for literature can pose problems
for students taking the relevant subjects. Then, supplementary orders have to be sent to
booksellers or direct to publishers. The schools are well served by publishers’
representatives, who assist the process of making sure that the book stocks in each subject
area are kept up-to-date.
The parents/guardians assume responsibility for the texts rented over the course of a school
year. A rental agreement is signed by the parent/guardian before the books are handed over
to the student. All schools insist that parents/guardians accompany the students on the days
of distribution of textbooks in order to sign this contract.
Recently, parents/guardians have been required to purchase:




Workbooks, since these have no reuse value
Dictionaries
Atlases
Hymn books
Some of these are “one-off” purchases which last a student throughout his/her school
career.
A carefully organised programme ensures that books are returned at the end of the school
year. The books are collected and placed in subject groups. The stock cards are updated and
the damaged or lost books taken account of. Fines are levied where necessary e.g. for
deliberate damage or for lost or non-returned books. A certificate is issued to the student to
verify the return of the books. No new books are issued unless this certificate is presented
and all outstanding liabilities settled.
Once this is completed , the process of sorting for the new school year is done and dates
organised early for the issuing of the new set of books. At this point the rental fee for the
new school year is collected by the accounting officers of the school. Neither the teacher in
charge nor his assistants participate in the collection of fees.
SUSTAINING THE SCHEME
Book Life
Normally we expect books to last between three and five years. Soft cover books have a
shorter life - sometimes only one year. On the other hand, hard cover books can last up to
eight years. Unfortunately over 70% of the titles ordered for use in school are soft cover
books. These are generally cheaper, but their useful lives exceedingly short. An example at
First Form level shows that out of 19 texts used, just about 20% are in hard cover.




The book life also depends on
The type of binding.
The treatment of the books by the students.
The intensity of use - books used every day e.g. Language and Mathematics books
suffered more intensive usage than those for Geography or Music.
Approximately 10% – 15% of the books issued to each form level will be lost or damaged
over the course of a school year. Parents/guardians are required to pay the current cost of
replacement of texts not returned. A number of clearly articulated school penalties is written
into the standard contract signed by parents and guardians each year.
Minimising Loss and Damage
Since minimisation of cost is so important to the life and sustainability of the scheme, the
following measures are encouraged by the school:





That students cover the books they receive. (Several commercial companies donate
book covers to all the schools during the First Term).
That books be bound or repaired..
That Library assistants or student assistants who work with the book scheme be
trained in book repair and preservation.
That routine inspections take place during the school year at the form level.
That books be carefully stored and inventoried by the school.
Such efforts are extremely important in the maintenance of the rental scheme because
replacement costs are so high. It is most significant that the cost of soft cover books is in no
way commensurate with their useful lives when compared with similar books in hard cover.
Since the rental scheme must be self-sustaining and operating costs are constantly rising, all
efforts must be made to ensure that the best value is received at minimum cost and the lives
of texts are maximised. Beyond that, the only recourse would be increased loan fees.
CONCLUSION
Textbook rental schemes are important in the provision of equity of opportunity in the
educational systems in developing countries. A new challenge to be met is the use of
Information Technology in teaching and learning in the classroom. This will necessitate a
broadening of the scope of schemes to take into account the cost of hardware and software
and Internet access. The impact of easily available material on the Internet will be reflected
in the conceptualisation and organisation of a textbook rental scheme. The creation of core
curricula, the emphasis on indigenous material in the textbooks used, the demand for
relevant content that relates to children’s experiences, have created a market for an
indigenous writing and publishing industry. This development and its adoption in the
schools has been facilitated by the presence of viable textbook rental schemes in the
educational system.
Georgia
Giorgi Gabashvili
Textbook Program Coordinator
Education Mega Project
Open Society Georgia Foundation
In 1999 the World Bank was engaged in the planning stages for an education loan to
Georgia. At the same time the Open Society Georgia Foundation (OSGF) was running a
number of initiatives both in education and publishing. After discussions the two bodies,
along with the Ministry of Education, decided it would be sensible to launch a small scale
experimental textbook rental scheme, referred to as a pre-pilot. This was to begin at the start
of the 1999-2000 academic year.
The objectives were to establish:



whether it was possible to obtain timely information about textbook requirements
from the Regional Departments of Education
whether publishers were able to provide efficient delivery of textbooks
whether parents would accept the concept of paying rental fees for books in a
country that had hitherto provided textbooks free of charge
Together with the Ministry of Education (MOE) OSGF identified three cities were identified
for the pre-pilot study. Within these cities three schools were selected, each representing
different grade levels. They were:
Tbilisi School N18 - 2nd grade
School N 45 -5th grade
School N103 - 8th grade
Telavi School N3 - 3rd grade
School N4 - 9th grade
Kurdgelauri Village School - 6th grade
Rustavai School N6 - 10th grade
School N17 - 8th grade
School N23 - 4th grade
The Pre-pilot Coordination Group which included representatives of the MOE and OSGF
met with school directors, teachers and parents to explain the purpose and methods of
operating the textbook rental scheme.
The specific responsibilities were allocated.
School Directors were to provide information on the quantity of textbooks required to
Regional Departments of Education (RDG), collect rental fees from parents, pay this money
into designated bank accounts and keep accurate records of transactions.
Parents were asked to pay the rental fees immediately upon receipt of the textbooks.
The Pre-pilot Coordination Group negotiated with publishers on price and delivery dates of
the textbooks which were to be sent to the Regional Departments of Education.
Information obtained from the Pre-pilot included:
Speed of information flow concerning numbers of textbooks required for each
school.
On the whole this went well. The requests for books were submitted in a timely manner to
regions from schools, but there were cases when orders included books which were not
approved by the Ministry. The mistakes in numbers of books matching up with numbers of
pupils were minimal and were easily corrected.
Upon supply of the books the schools collected the fees. The directors of all nine schools
confirmed that the fees had been collected, but funds had not been transferred yet to the
project account from seven schools three months after collection. This was part due to bank
operators failing to assist the directors in identifying banking account numbers,
correspondent accounts and other details.
This problem can be sorted out by providing specially developed simple guidelines, devising
a simplified format and running programs for the training of school directors and bank
officials.
Speed of delivery of textbooks to Regional Departments of Education
One third of the books approved by the Ministry of Education are self-published by the
authors using the services of various publishing houses and negotiations on buying these
textbooks had to be held not with the publishers but with the authors. The authors do not
keep records and in most cases do not have information regarding the number of books
available. In most cases the authors suggested approaching bookstores and buying books at
retail prices. Most of these bookstores would not agree to payment by bank transfers. There
are cases when the books are stored at the private flats of the authors, or garages and
purchase of the books is possible only by payment in cash.
There were 3 cases when the textbook had been approved by the Ministry of Education, but
the publishing house, or the author had not yet published the book. Such situations were
unresolvable as there were no other endorsed books available, and the prescribed title was
not on sale.
The quality of existing books is so low that they are unlikely to last for more than two years.
The quality of paper and binding in most cases is very low.
The publishing houses “Ganatleba” and “Lampari” supplied the books on time and were
willing to give discounts. They delivered the books themselves to the regions. One third of
the books were delivered to the regions by OSGF which would be an inappropriate method
of distribution for any large scale project.
A larger project will face significant problems, if:




the Ministry of Education does not keep record of the endorsed books and their
status;
a center (a wholesale market) is not established, (where in particular all books not
published by publishing houses are collected together. Such a center should operate
under standard terms of trade.).
publishers do not comply with quality standards (even according to Soviet standards,
before developing new ones).
a publishing house/author is not obliged to print a designated minimum number of
copies if the book does not have an alternative for certain class/subject. The creation
of artificial shortages distorts prices and availability.
Before implementing a larger project, the Ministry of Education, together with publishing
houses “Ganatleba”, “Lampari” and other new publishing houses and authors should create
a new record keeping system and create a database for textbooks.
Delivery of books to the schools from Regional Departments of Education.
Here no problems were experienced.
Rental payments and tracking
Most parents were willing and able to pay the rental charges.
The primary problem is that schools cannot open accounts in Georgia. Opening of the
required account for the pre-pilot project was complicated due to the fact that the Ministry
of Education was unable to open its special account for this purpose (permission for
opening of an account requires a special decree of the Ministry of Finance and arrangement
of many other legislative issues), or use of the existing account. It was also impossible to
open an account for this project and to provide schools with sub-accounts. Finally, following
the offer of the Ministry of Education the account of an NGO exiting at the Ministry, which
serves the World Bank Educational Project, was used.
As we used the existing account, there was no opportunity to go through the process of
selecting the bank. The bank did not have subsidiaries either in Telavi, or in Rustavi. The
school directors had to transfer funds from other local banks or post offices. As the
directors had no experience in dealing with accounts and banking operations, (in most cases)
they failed to manage it effectively.
It must be taken into account that this situation will cause too many problems in the
implementation of the big project if:

schools are not permitted to open their own accounts;




the selected bank does not have subsidiaries in all regions;
the project is not given preferential terms on banking transfers, or is exempt from
the payment of banking transaction fees (the Parliament and the National Bank has
the right to make such a decision);
a maximally simplified format for transfers is not developed;
school directors are not trained in account management and use of accounts.
A preparatory stage should precede the implementation of the big project, and must involve
the Parliamentary Committee for Education and National Bank. A functional bank for the
project should be selected through tender procedures, where banks would present their
service proposals.
Conclusion
The Pre-pilot project demonstrated that even a small-scale examination of the system is
enough to reveal the major block of problems, which, if not resolved, will put at risk the very
notion of a rental scheme. Legal and executive governmental bodies must be interested in
the implementation of the system if they are to execute the changes in the legal and
administrative environments needed. In our view the rental scheme should be managed by
an NGO.
Commencement of a larger project, without resolving the banking, managerial and other
obstacles would be quite risky. All problems should be resolved before the commencement
of the project.
A series of brainstorming meetings is necessary to plan possible solutions together with the
Ministry of Education, Ministry of Finance, National Bank, Parliamentary Committee for
Education and Donor experts.
Before the commencement of the project and during the whole implementation period, it is
necessary to have a sensible plan for public relations, which, in our opinion, if not carried
out well would result in difficulties in convincing the public of the merits of the “renting”
idea.
As a whole, the pre-pilot project gave us opportunity to vividly see the problems, which we
may face while implementing a similar system on the national level.