Socialisation of Education in Vietnam - Lessons from international experience - Dr. Yeow Poon - Managing Director Mayumi Fuchi - Consultant People and Organisation Ltd. 315B The Big Peg 120 Vyse Street Birmingham B18 6NF United Kingdom www.peopleandorganisation.com yeow@blau.co.uk +44 121 6938897 Abstract Today, Vietnam - a country with more than 80 million people - faces a variety of challenges in education sector. These challenges include ineffective education management; shortage of qualified teachers; poor schooling facilities, unsuitable educational materials and affordable access to high quality education. The Vietnamese government has responded to these education challenges by making greater use of socialisation, or what is more commonly called internationally, public-private partnerships (PPPs), as a means of improving the financing and delivery of education. This paper examines the nature of socialisation in Vietnam and international experience with PPPs. Several forms of PPPs are highlighted, as well as the advantages and disadvantages of PPPs, the evidence on the benefits of PPPs, and the essential factors for successful PPPs based on international experience. The paper concludes with some lessons for the further socialisation of education in Vietnam. Background Vietnam has a long history of free, universal education and central planning, where education is almost entirely provided by the government. However, as Vietnam, began the transition from a centrally planned to a market oriented economy in the 80s and 90s there was a degradation in education provision as the system struggled to adapt. Since then, as a result of various reforms, the deterioration has been halted and significant improvements were made in diversification of education types, modes of delivery and resources. As part of the restructuring of the education system since 1989, the government in Vietnam has implemented several reforms, including a reform that develop a “non-state” system of education and training to parallel the state system. The Fourth Plenum of the Central Committee of the Communist Party in 1992 reached several important decisions for the future development of education and training in Vietnam. These included plans for the consolidation of public education, the legalization of private institutions and socialisation of education. Socialisation of Education in Vietnam According to the laws of Vietnam on the direction and policy of socialisation of education, medical, and cultural activities, socialisation is defined “to build up the sense of community responsibility of the people of various strata toward the building and improvement of a healthy economic and social environment favourable for educational, medical and cultural activities. In each locality this is the sense of community responsibility of the local Party organization, People’s Council, People’s Committee, State agencies, mass organizations, and economic organizations, enterprises based in the locality and of each citizen” (Asian Legal Information Institute 1997). Socialisation (“xa hoi hoa”) of education therefore involves the mobilisation of the whole society, that is, all state concerned agencies and organisations as well as communities, social forces, mass organizations, to develop and implement education under State guidance. The result is a diversification of types of education, and types of schools, combining formal, non-formal and informal education and the development of semi-public, private, and people-funded school in addition to public ones. It is worth noting that Vietnam is also decentralising education planning and management to create favourable conditions for education development and encourage greater participation in delivering education by all sectors. The socialization of education has brought some positive results. There have been improvements in construction of school infrastructure, increase in investment in school building, and rise in financial contributions. According to the Educational Development Strategies for 2001-2010 a unified and diversified education system has been built at all levels from pre-school education to doctorate training; the general education school network has expanded throughout the country; the school infrastructure has improved, there are boarding or semi-boarding schools for ethnic minority people; and more vocational schools, colleges and universities. There are however major challenges. The diversification of education has led to large increases of student numbers but the capacities of education establishments are still inadequate. This has raised issues over the quality of education provided. Another problem is the concern that poorer people would be left out as a result of the commercialisation tendency (Nguyen Loc, 2006). Understanding Private-Public Partnerships (PPP) in International Context Across the globe, education had been the exclusive domain of the state up until the late 1980s. Since then, governments have begun to realise that state resources alone could not meet the basic need of delivering quality education to all children. Hence, there has been a shift in the policy of education provision towards the private sector becoming an essential partner in delivering education. The distinguishing features between public and private provision of education is that public provision is managed by the state and financed via tax revenues; whereas the revenues for private provision revenues are derived from fees and private contributions. . Traditionally, the private sector has participated in the education sector by the delivery of education services through privately owned schools and higher education institutions. Other ways the private sector has participated include building infrastructure such as school buildings, running publicly owned schools under contract or providing catering, cleaning, security, recruitment and other administrative services A PPP however goes beyond a transactional contract to include a spirit of partnership and aiming to achieve value and outcomes that go beyond what each partner can deliver alone. A public-private partnership could be defined as ‘a model of development cooperation in which actors from the private sector (private corporations, corporate foundations, groups or associations of business) and the public sector (Ministry of Education, local authorities and schools) pool together complementary expertise and resources to achieve development goals’. (Genevois, 2008). Besides private enterprises, PPP partners can also include a range of other non-state stakeholders. Public-public partnerships would involve only the state and civil society organisations, community groups and not for profit enterprises. Multi‐sector partnerships involving all three sectors - government, private sector and third sector – are sometimes called public‐private‐civil society partnerships (PPCPs). The main advantage of involving civil society groups is that they provide local knowledge on needs, affordability, social issues and cultural sensitivities, thereby ensuring that those most disadvantageous and hard to reach are served. Range of PPP models Broadly, PPPs can be divided into 3 categories, exhibiting different characteristics in their aims and design, as well as roles that are played by the respective public and private partners. philanthropic PPPs utilising corporate philanthropy contractual PPPs based on agreement between public agencies and private partners to provide services in exchange for remuneration from the public authority or by charging the users institutional PPPs are institutional entities, which are newly established or created through transfer of public assets, jointly held by the public and the private sectors Philanthropic PPPs, from the purely altruistic to those with a profit motive, are generally aimed at enabling disadvantaged children to gain access to education or to support a school. In adopting schools to support, the private sector partners would normally provide cash and in-kind resources to complement government funding of public schools. Areas of support would include improving educational quality, access, infrastructure and community participation within the government schools. A common feature of school adoption programmes is a focus on supporting the poorest government schools. Example: Adopt-a-School Programme, the Philippines was established in July 1997 through the enactment of Republic Act No 8525. The programme encouraged the private sector to partner with the Department of Education to address problems such as shortages of classrooms, desks and textbooks; to provide mechanisms that allow the private sector to render assistance in upgrading and modernising the Philippine education system; to provide an environment that is more conducive to learning, improve completion rates and lift achievement levels; and to widen access to quality education and reduce student drop-out rates. (reference? is this a quotation?) There is a wide range of contractual PPPs, ranging from inputs, process and outputs types of contracts. Input type contracts involve the private sectors providing management services ranging from school management, for example human resource management and finance, and support services such as school meals and building maintenance to professional services covering teacher training, curriculum design and quality assurance. A typical example is the outsourcing of school management where public sector authorities commission private and other non-state providers to operate public schools or manage certain aspects of the school operations. A main feature is that although these schools are privately managed, they remain publicly owned and funded. Another feature is that quality is assured through the management contract that details the performance targets, timeline, accountability protocols and arbitration procedures. Fe y Alegría” (FyA, or Faith and Happiness), is a unique public-private programme established in Venezuela in 1995 by Jesuit educators to set up and administer schools in impoverished areas. Government may provide some funding to FyA schools to meet setup or operating costs. FyA now has schools in 14 countries with more than 1 million student and 22,000 staff. A study found that progression and retention rates in FyA schools were 44 percent and 11 percent higher than in other public schools. Swope and Latorre (2000) www.feyalegria.org Another popular type of input contract is facility availability, which are used to mobilize private investment thereby reducing the need for government to finance capital investments up-front. One example of such PPP contracts are Private Finance Initiatives where the private sector would finance, design, construct and operates a public school facility over a period of time, from 25 to 30 years. The government leases the facility and at the end of the contract period, acquire the ownership of the school facility. PFIs have been used extensively in the United Kingdom for the construction and maintenance of education facilities. Process type PPP contracts usually entail the provision of operational services in the education of students, financial and human resources management, professional services and building maintenance. Education authorities could contract private organizations to run an entire public school. These types of PPPs are usually a response to difficult situations where greater autonomy from public sector constraints is needed to improve a school performance or to mobilise local resources. In these cases, the schools are allowed to govern themselves with participation from local communities and businesses who may contribute to the construction of facilities, upkeep and running of the school. Lastly, output type contracts usually involve contracting private schools to enrol specific students, usually from poor or minority communities, for example through voucher schemes that provides an entitlement for the parent to use to pay for the education of their children. These types of contracts could also include government purchasing programmes where a government contracts with private schools to deliver education at public expense in the form of a subsidy per student enrolled. Targeted Individual Entitlement, New Zealand The Targeted Individual Entitlement (TIE) programme was introduced in 1996 as a threeyear pilot scheme. The TIE programme was designed to assist children from low income families to attend a private school, to give choice to families whose education options were limited and to lift educational achievement among low-income families. Under the scheme, the government funded a small number (160) of children per year to be educated in private schools. Private schools received 110 percent of the average cost of education at a state school for each TIE student accepted. Families also received an allowance to cover non-tuition costs. Reference? Is this a quotation? The Pros and Cons of PPP For the proponents of PPP, it is believed that different sectors in society – public, private and civil society ‐ have potentially complementary competencies and resources that can produce a positive whole that is greater than the sum of the individual parts to enhance various sectors in society. Increasing the private sector’s role in education can therefore have potential advantages over the traditional public delivery of education. For example: Increasing competition in the education market as the private sector can compete with the public sector for students, thereby encouraging the public sector to compete by increasing the quality of its education provision Improving quality and value for money through open bidding for PPP contracts. Quality can be assured through specifications of measurable service and performance standards in the contracts. Greater flexibility in balancing supply and demand as generally, the private sector has greater flexibility in hiring teachers and managing schools than the public sector does. The sharing of risks between the government and the private sector leads to greater confidence in investing more resources. Government can benefit from a range of private sector expertise and experience in areas such as strategic planning, performance management, innovative practice, labour market expertise and the efficient delivery of goods and educational services. For the detractors of PPPs there are however disadvantages that outweigh the benefits. Some of the concerns raised regarding the dangers of PPP are: PPPs will eventually lead to the privatization of education, thus eroding the value of education as a universal public good. The commercialisation of education will lead to a 2 tier system of higher quality privately operated schools and poorer less well resourced public schools, resulting in greater socio-economic segregation. Private-sector partners are not education experts and the drive to obtain a financial return on investment or to maximise profits will hinder the achievement of educational goals. Weak government capacity in procurement, monitoring and supervision will result in poorly designed and executed PPP contracts, which will expose the government to significant financial and policy risks. Flexible hiring and management practice will lead to human resource abuses such as reduced pay for teachers, higher workloads and job insecurity. Does PPP Actually Work in Education? A recent report by the World Bank on the role and impact of public-private partnerships indicate that the application of PPP in various countries has led to positive outcomes (World Bank 2009). However, the report also pointed out that the research is limited and more rigorous evidence is needed. Generally, the empirical data available suggests that the private sector can deliver high-quality education at a lower cost compared to the public sector. The World Bank report pointed to studies on privately managed schools in the US (Charter Schools), which showed an initial drop in pupils achievement but tend to do equal or better over a period of time (about 3 years). Voucher schemes that support pupils from low income families have also been extensively studied. The outcomes are less certain with some countries such as Columbia showing positive results and others like in Chile showing mixed results. A study examining the association between student achievement and PPPs across 35 countries showed that student performance in maths, reading and science were lower in publicly run schools compared with schools that are only publicly funded (Woessmann 2005). The implication of Woessmann’s findings is that schools that are publicly funded and privately operated deliver better educational outcomes than schools are either fully publicly or privately funded and managed, as well as schools that are privately funded but publicly managed (CfBT Education Trust 2008). Private Finance Initiatives (PFIs) have been used extensively in the United Kingdom. A study by the Treasury examined the UK‘s experience in 61 PFI projects, while the National Audit Office study monitored 37 PFI projects. Both of these studies show that PFI projects were more likely to be delivered on time and within budget than non-PFI projects. Other studies also found that PFI schools have a better chance of improving educational outcomes (for example KPMG 2008). However, there are doubts. Although it is accepted that the private sector would be more efficient in resource utilisation in order to generate profits there is no clear evidence that PFI schemes will save cost (for governments) in the long term, as PFI schemes generally cover a period of between 20 to 30 years. Also, the casual link between PFI schemes and education outcomes are not yet proven. Ultimately, PPPs in education aims to achieve better education outcomes by providing improved facilities and more effective management, as well as enhancing teaching and learning quality and enabling the participation of wider communities. The experience to date suggests some lessons for the design and implementation of PPPs and the conditions under which PPPs will work. For instance: A strong policy and regulatory framework, defining the role and responsibilities of the partners, with a focus on enabling the poor and ensuring the participation of all stakeholders, especially parents and community groups Capacity of central government agencies in policy formulation and review and capacity at local government level to implement, monitor and manage PPP contracts. PPP policy interventions should be demand driven and flexible enough to response to different needs and situations. The alignment of private sector commercial and corporate social responsibility (CSR) interests with education policies and strategies. Good quality assurance standards, a clear monitoring and evaluation framework and accountability protocols are critical. Procurement procedures, as well as contract monitoring processes, must be transparent Conclusion: Lessons for socialisation of education in Vietnam Although education is the prerogative of the government the lack of finance and expertise are often major constraints. Hence, the increasing interests in partnerships with the private and voluntary or community sectors to complement state resources in delivering education. Empirical research has shown that the participation of non-state partners has generally led to more positive outcomes, particularly in the use of private expertise to manage schools. However, the longer term benefits of PPP models that mobilise financial resources for infrastructure building is less certain. For developing countries and countries in transition such as Vietnam there are also specific issues that increases the risk of PPP failures. As the education system in Vietnam diversifies in response to globalisation the socialisation of education is likely to increase. However, for PPP to be successfully applied in Vietnam a number of lessons should be considered by policy makers: Adopting PPP as a major policy tool for delivering education outcomes would change the role of government agencies from direct management of education to enabling the participation and mobilisation of non-state actors. The weak capacity of education departments in provinces to implement PPP initiatives needs to be addressed. Implementing PPP will require the development of new skills to design, negotiate finances, implement, manage and monitor contracts, The prevention of patronage and corruption would be critical to successful and quality educational outcomes. More vigorous transparent and accountable processes in the procurement, award and supervision of PPP contracts will be needed. It will be necessary to develop the capacity of the private sector and other non-state sector to deliver PPP arrangements. School principals and teachers will need to adapt to more flexible employment, human resource and performance management practise. School principals (and the School Boards) will need to adopt commercial principles and private sector management practice. Governments can and should take a lead role in identifying the PPP models that best meet its education policy goals. A key factor to success is balancing the public need of equitable access to education for all and the commercial interests and competitive nature of the private sector. From the perspective of the private sector overly strict requirements and opaque bureaucratic procedures would be a barrier to participation. Reference Asia Development Bank. Vietnam. Available online at http://www.adb.org/Documents/Books/ADO/2009/VIE.pdf Asian Legal Information Institute. (1997). 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