EdInvest News
 

June 2004
 
Copyright © World Bank Group, 2004.  All Rights Reserved.
 
http://www.worldbank.org/edinvest
 


Facilitating Investment in the Global Education Market


In this Issue:  This month's newsletter will focus on a presentation at the IFC
International Forum on Investment in Private Higher Education by ex-Minister of Education for Brazil Paulo Renato Souza. Mr. Souza's speech addressed "Working with Governments – Establishing Positive Regulatory Frameworks".  Mr. Souza now runs a consulting firm, Souza Consultores Ltda.

 



Visit the Forum website at: http://ifcln1.ifc.org/ifcext/che.nsf/Content/EducationConference



Background:

In 1995, the Minister of f Education conducted a review of the higher education sector and  identified key problems which are very common in developing countries. They were grouped into five different areas:

Coverage: the current education system coverage was inadequate to cope with the sheer size of demand and the challenges of providing good quality education.
Accreditation: accreditation of new institutions was a heavily bureaucratic and paper-laden process that perpetuated a low-quality system where competition was nonexistent, and captive markets earned education entrepreneurs huge profits. Universities received accreditation once and this had unlimited validity.

Evaluation: there was no comprehensive system to evaluate undergraduate education
Modernization: the challenge was how to modernize undergraduate teaching to overcome the distortions and conservative attitude that plagued the system
Funding: While public universities were of superior quality and had a key role in research, there was inefficient use of public funds

Based on these findings, the Ministry designed a set of reforms consisting of several coordinated steps  in the areas of  accreditation and  structure.  

Creation of the evaluation system:
 An evaluation system known as Provão  was created and all undergraduate students were tested to determine how much their had learned.  The results of the students' mean performance were used to rank to programs as A,B,C, D or E and these results were made public.  The result of the test would not interfere with students receiving their diploma.

Analysis of teaching conditions
The Ministry also developed a traditional evaluation system in which a team of professionals visit the universities and assess  the qualifications of the teachers, the facilities,  the libraries, the labs, the academic structure of the courses, etc.  

Linking the accreditation system to that of evaluation
After 1995 university accreditation would be valid for a limited period of time only, afterwhich the institution must be re-assessed and based on the results would be re-accredited or not.  

Making the structure of course provision more flexible
The structure of  the  higher education was overhauled and short-term courses of tow years became available.  Approximately 10% of total enrollment is in short-term courses.

Curricular guidelines by course
Previously, all universities were required to follow the same curriculum.  Under the new guidelines, the Ministry allowed each university place emphasis on areas they deemed to be of particular importance.  

Making expansion more flexible
Until 1997, higher education institutions could only be non-profit. However, money was being made in various ways.  For example, a family may own a building rent it  to a non-profit institution. The tax system continues to benefit the non-profits over for-profit institutions, with the latter paying a much higher rate

Impact of New Regulations

The demand of higher education in Brazil continues to grow very rapidly.  In 1994, Brazil had 1.7 million students enrolled in higher education.  By 2002 enrollment had increased to 3.5 million students, with the bulk of expansion taking place in private institutions. The private system grew from 1 million students in 1994 to 2.4 million in 2002, encouraged by more flexible accreditation mechanisms. The number of private institutions now stands at approximately 1,600.   Despite of this significant expansion, Brazil still ranks low in enrollment in relation to other countries.  The gross enrollment ratio revealed that undergraduate post secondary education was 14% in 1996 and 20% in 2002.  

The percentage of graduates increased 72 percent in public sector and  99 percent in the private sector.  There has been significant expansion in graduate courses but concentrated mostly in public institutions. Overall, the number of courses offered in higher education has jumped from around 5,600 in 1994 to 14,000 in 2002. The demand for courses (candidates per vacancy), has grown for those rated  A,B,C while  demand for those rated D and F fell by 41 percent. In addition, the higher education system has improved quality indicators.  Institutions established after Provão was introduced are more likely to receive rating of A and B than those established prior to the testing.


 The qualifications of teachers also improved quite significantly.  In 1994 only 39 percent of teachers held a Masters or Ph.D; by 2002 the  proportion grew to over 65 percent. Most importantly, private institutions had 25 percent  of teachers with Masters or Ph.D. degrees in 1994 and this increased to 50 percent  in 2002,  despite an increase in the number of teachers of 127 percent.  The percentage of teachers who used teaching plans grew from  20 to 31 percent between 1997 and 2002.  Student access to computers grew from 23 to 36 percent and  student access to libraries increased from 16 to 27 percent.  


Lessons Learnt

The main lesson is that a real partnership had to be built between the state and the general public regarding the regulation of the higher education system. The test itself received a positive response from the public and from students, who began to choose courses with good ratings over those with poor ratings. Many Brazilian companies now take into account the results of the test when hiring graduates.  

Gaining Support

Discussions of the proposed testing went on for one year.  Support was sought from  congress, which must approve the law as well as the general public. Despite frequent public protests by student unions and public institutions, the law was approved in November 1995 and signed  in March.  Because students could submit a blank test and still received their diploma, a strong communication strategy was required to convince students to complete the test. This strategy comprised of face-to-face discussions, mailing campaigns, magazine articles, television, etc. A few days prior to the exam a leading newspaper in Brazil published an editorial in favor of the exam.  They found that 90% of their readership was aware of the test and 80% declared they were in favor.  The first test was administered in 1996 with almost 90% of the students that answered the questions, with roughly  10% submitting a blank test. By 2002, only 1.8% submitted blanks exams.  This success was due to a real partnership between the state and public, fostered by information, assessment and communication.  



Current Situation:

When the new government was elected in 2002, the  new president of INEP (the Statistics and Evaluation Office which oversees Provão) appointed a commission to review Provão. It submitted a report proposing the creation of an incredibly complex system of institutional evaluations and self-evaluations to replace Provão. A subsequent proposal was produced that would keep Provão but testing would be reduced to a sample of students rather than the entire student body and  testing would be administered every third year, instead of annually. It is also more susceptible to fraud and manipulation. At the moment, the guidelines remain vague and the new minister while supportive of ranking institutions, has not made his position clear.  



Articles of Interest


Al-Ahliyya Amman University in Jordan is considering opening an extension in Israel.  Israel's higher education council is evaluating the proposal. Amman University is the first private university established in Jordan in 1990. For the entire story see:
http://www.albawaba.com/news/index.php3?sid=277918&lang=e&dir=news

New Zealand Education Minister Trevor Mallard announced that by 2007 every three and four-year old will be entitled to 20 hours of free preschool each week.  However, it will be funded only at community, teacher-led centers, not centers staffed by parents or those run privately for profit. If parents move their children to free places, the 1,000 private centers nationwide will  struggle to compete.  See the story by Stuart Dye in the New Zealand Herald:

http://www.nzherald.co.nz/storydisplay.cfm?reportID=1162608&storyID=3569526

Publications

In the Spring 2004  edition of International Higher Education, economist Claudio de Moura Castro writes of  Success and Perils in Evaluating Brazilian Undergraduate Programs.  He reviews the courageous reforms undertaken by the Minister of Education in 1995, which called for course evaluation and student testing. See the entire article:

http://www.bc.edu/bc_org/avp/soe/cihe/newsletter/News35/text010.htm

In an article recently published in Tertiary Education and Management, Philip G. Altbach examines the impact of globalization on higher education.  He reviews the claim that globalization will level the playing field as well the assertion that globalization will lead to inequality and the McDonaldization of the university.  See the article Globalization and the University: Myths and Realities in an Unequal World:
http://www.bc.edu/bc_org/avp/soe/cihe/publications/pub_pdf/Globalization.pdf

The Cato Institute has published Educational Freedom In Urban America: Brown v. Board after half a century edited by David Salisbury and Casey Lartigue Jr.  In the book, scholars, educators, and reformers examine the legacy of Brown v. Board and its relation to the modern-day school choice movement. Together these experts expose the modern barriers that deprive inner-city children of a good education and call for increased school choice as the most effective way to achieve the goals of Brown v. Board.

This book can be ordered through the Cato Institute:

The Cato Institute has also just released the book Voucher Wars by Clint Bolick which documents the twelve-year fight from the first urban school choice program in 1990, to the 2002 Supreme Court decision establishing the constitutionality of voucher programs. This book can be ordered online:
http://www.catostore.org/index.asp?fa=ProductDetails&method=cats&scid=16&pid=1441132


Michael Latham (send comments to edinvest@ifc.org )