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Policy on Education
Executive SummaryIn 1999, the Asian Development Bank (ADB) identified poverty reduction as its primary objective. Much more complex than simply income deprivation, poverty entails lack of empowerment, lack of knowledge, lack of opportunity, and lack of income and capital. The relationship between education and poverty reduction is clear. Education empowers; it enables a person to participate more actively in local and national government. Education inculcates the skills and knowledge needed to improve the quality of life, to become more productive, and to improve income-earning potential. Education, particularly education of girls and women, facilitates improvement of many human development indicators, such as reduced fertility, and better health and nutrition for children. The Universal Declaration of Human Rights, approved by the General Assembly of the United Nations in 1948, recognizes education as a basic human right. Education helps lay the foundation for the three pillars of poverty reduction: pro-poor sustainable economic growth, social development, and good governance. ADB is committed to helping developing member countries achieve the Millennium Development Goals by 2015, including achievement of universal primary education, and gender equality in primary, secondary, and tertiary education. Both ADB and the region it serves are changing. Regional economies are rapidly embracing higher technology and provision of services. Urbanization and increased life expectancies are changing the distribution and composition of populations. Globalization demands increased productivity and the maintenance of international quality standards. The information technology revolution requires changes in the way knowledge is acquired and transmitted. Education can no longer be targeted mainly at children and youth; continuing education and lifelong learning are needed by everyone to acquire new knowledge and skills. To reflect these changes, ADB recognizes that its role must evolve from that of project financier, to incorporate greater provision of policy advice, technical expertise, and capacity building. Its role in the education sector must evolve simultaneously. Education, too, has undergone rapid change. Many countries of the region have achieved universal primary education, and are expanding the period of compulsory education in response to economic and social demand. Despite increased access to education, the poor—disproportionately women, ethnic minority groups, the disabled, and persons living in remote regions—are often deprived of a basic education. And when basic education is available, the poorest are unable to avail of it because the direct and opportunity costs are too high. All too often, the quality of education provided at all levels remains unacceptably low. Completion of a particular level of education by no means guarantees mastery of knowledge and the skills necessary to improve the quality of life. Many countries are decentralizing education management to local and institutional levels, with the aim of improving efficiency, sharing costs, and providing better service; but local capacity to deliver education effectively and efficiently is often limited. As governments seek to reduce their financial burden, the role of the private sector is increasing, especially in the provision of higher levels of education. The question of how to sustainably finance the delivery of quality and equitable education remains an important one for virtually all countries in the region. The rapid growth of information and communication technology (ICT), and its ever-increasing importance to social and economic development, has profound implications for education—both how ICT can be used to strengthen education, and how education can be more effectively used to promote the growth and application of ICT. The continuing challenge for education is to ensure that all people have the knowledge and skills necessary for continuing human and economic development, and for breaking the poverty cycle. ADB has invested $5.3 billion in education sector development since 1970; two thirds of this since 1991. The pattern of ADB support has changed significantly during the last 3 decades. Initially, ADB concentrated on funding facilities and equipment for technical and vocational education, an approach consistent with human resource planning and the emphasis on economic growth at the time. ADB’s first education sector policy paper (1988) recognized the importance of investing in primary and secondary education in the context of broader human and social development. Since 1990, ADB has been a major regional supporter of Education for All (EFA). The education sector portfolio is focusing more on basic education, with increasing attention to software such as teacher training, curriculum, and education planning. From 1970 to 1990, 48% of ADB’s education investment was in technical and vocational education and 11% in basic education, but from 1991 to 2001 investment in technical and vocational education was only 14% while basic education accounted for 41% of ADB’s education portfolio. ADB’s technical assistance grants for education have increasingly supported broader policy, research, and capacity building activities rather than concentrating on project preparation—another indication of ADB’s evolving role. However, while ADB provides a larger amount for education sector development, its investment in education as a proportion of its total portfolio remained fairly constant at about 6% during the last decade. The proportion of education projects of the ADB total is 10%. While ADB’s education investment has been largely successful in that its immediate output objectives have been achieved, until recently ADB tended to concentrate on project lending with relatively little attention to the broader framework of education sector reform. ADB’s vision for education is that “All children and adults will have equitable access to and complete education of sufficient quality to empower them to break out of the poverty cycle, to improve their quality of life, and to participate effectively in national development.” This vision can best be achieved through a policy-oriented approach that (i) links investments to an overall framework for sector reform and development, and (ii) helps governments identify and implement policies and strategies that focus on the needs of the poor. Thus, ADB will need to give more attention to education sector analysis, to closer collaboration with nongovernment organizations (NGOs) and communities, and to enhanced coordination with investments in other sectors such as health. To accomplish this, ADB will need to strengthen its own capacity in the education sector. The priorities for the education sector are reducing poverty; enhancing the status of women; and providing the knowledge, attitudes, and skills essential for pro-poor, sustainable economic growth. In support of these, ADB’s education policy must give particular attention to increasing equity and access; improving quality; strengthening management; mobilizing resources; strengthening partnerships; and applying new and innovative technologies, especially ICT. These need to be addressed in each education subsector if the overall priority of maximizing the education sector’s contribution to poverty reduction is to be achieved. In literacy and nonformal education, ADB will expand support for innovative and responsive programs, particularly in collaboration with NGOs. Recognizing the importance of ensuring good health, proper nutrition, and mental stimulation to young children as the foundation for lifelong learning capacity, ADB will expand support for early childhood development with special emphasis on lowcost, community-based provision. ADB priorities for basic education are ensuring equitable access and resource allocation, improving quality, and strengthening community involvement. ADB will support the improvement of the quality of secondary education, with particular attention to cost sharing, private sector provision, and special programs to increase access by the poor and women. For higher education, ADB will focus on enhancing the role of the private sector, developing government capacity to determine and monitor standards, improving institutional governance, and assisting programs to increase equity of access by the poor and women. In skills development, including technical and vocational education, ADB will focus on strengthening government capacity to establish and monitor standards, encouraging private sector provision, and supporting NGO-led provision of skills training in income-generating activities for poor women. ADB support for education, at all levels, will concentrate on policies and activities that directly contribute to overall programs for poverty reduction. However, the balance of investment across education subsectors will need to be determined according to the particular country’s situation. Variations between countries, and rapidly changing circumstances within the region, require that country programs of assistance be planned to respond to particular needs and conditions. The priority for ADB investment in the education sector is to maximize education’s impact on poverty reduction, and to maximize leverage by planning investment within the context of an overall sector policy framework. This policy paper is the first step. It must be followed by preparation of education sector strategies and road maps for each country, to translate policy principles and priorities into specific strategies and investment plans. The policy paper should be followed by specific actions, including systematic monitoring of policy indicators and project outcomes, to ensure that ADB investment in education is achieving its aim of contributing to poverty reduction. This in turn implies that the education policies and strategies of ADB and its developing member countries will be periodically reviewed, revised, and strengthened to maximize impact and respond to evolving circumstances.
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