Education Strategic Plan - Cambodia

Source: Ministry of Education, Youth and Sport

Education Strategic Plan

FOREWORD

1. The Context
   1. Using Historical Perspectives
   2. Ensuring an Inclusive Sector Planning Process
   3. Consolidating Education Reforms : 1999 – 2001 Initiatives
   4. Strengthening Partnership Processes
2. Broad Policy Priorities : 2001 - 2005
   1. Linking ESP to Long Term Goals for Education
   2. Key Policy Priorities and Targets : Basic Education
   3. Key Policy Priorities and Targets : Post Basic Education
   4. Key Policy Priorities and Targets : Institutional Development and Capacity Building for Decentralisation
   5. Key Policy Priorities and Targets : Sector Financing
   6. ESP Responsiveness to Cross-Cutting Concerns
3. STRATEGIC PRIORITIES : 2001 - 2005
   1. Broad Strategic Directions
   2. Assuring Equitable Access to Education Services
   3. Improved Quality and Efficiency of Education Services
   4. Sustainable Institutional Development and Capacity Building for Decentralisation
4. ESP Monitoring and Review Processes
   1. Focusing on Policy Outcomes and Targets
   2. Annual Sector-Wide Management and Monitoring Processes
5. Financial Planning and Management
   1. Implementing Pro-Poor Education Financing Policies
   2. Projected Total Financing Needs and Available Resources
   3. Ensuring Increased Predictability of Resources
   4. Proposed Financial Management and Monitoring Systems
6. Indicative Program Priorities
   1. Recurrent Program Priorities
   2. Capital Program Priorities

FOREWORD

This Education Strategic Plan 2001 – 2005 represents a key milestone in the work of the Ministry of Education, Youth and Sport to effectively reform the education services in Cambodia. This Strategic Plan is the result of an intense and collaborative effort between Ministry senior officials and technical staff over the past two years. The process of policy and strategic analysis and making decisions about medium-term priorities has been a difficult and arduous one. Nevertheless, we are confident that this Strategic Plan will provide key signposts and the necessary impetus for quickly and effectively moving education development forward for the benefit of Cambodia's people.

This Strategic Plan is designed to set out a phased and rolling program of priority education policy and strategy reforms for the next five years. It is guided by the Ministry's long-term vision of providing expanded and easily accessed, quality education training opportunities for all Cambodians. This long-term vision also includes increased authority to districts, schools and communities for planning and running education affairs, accompanied by steps that enhance a real feeling of mutual responsibility for ensuring high quality education provision at all levels of the system. We are confident that the Strategic Plan will lay the foundation for achieving our longer-term aspirations for education in Cambodia.

This Strategic Plan is emphatically pro-poor. The Government's Interim Poverty Reduction Strategic Plan, the Socio-Economic Development Plan 2001/6 and our own Education for All Assessment in 2000/1 have provided substantial momentum and guidance in formulating these pro-poor policies. The broad policy thrust, that we are confident will continue beyond the Strategic Plan period, is that the current education poverty trap will be eliminated. The Strategic Plan focuses on a number of measures that begin to eliminate the cost barriers to education for poor families, while still assuring well-managed and relevant education.

A key feature of the planning, implementation and monitoring systems for this Education Strategic Plan is that it will require new forms of partnership in education at all levels. The preparation of the Strategic Plan has provided an effective platform, encompassing extensive dialogue with the Ministry of Economy and Finance, Ministry of Planning, Ministry of Interior, Council for Administrative Reform, provincial and district authorities and the international community. We are confident we can build on this foundation of constructive dialogue as the implementation progresses.

Finally, we would like to express our sincere thanks to all Government and Ministry of Education, Youth and Sport officials and technical staff for their enormous contribution to this Strategic Plan. Their dynamism and commitment to reform and change has been a continual source of assurance throughout the process. We would also like to extend our gratitude to various members of the international community and technical advisers for their continual encouragement and support.

1. The Context

1.1 Using Historical Perspectives

Providing education opportunities to all Cambodian children is central to the Royal Government of Cambodia (RGOC) poverty reduction and socio-economic development plans. The growing peace and stability offers a clear window of opportunity to begin to implement a right-based education policy and program, and move forward on fulfilling the Constitution position regarding education provision. The Ministry of Education, Youth and Sport (MoEYS) is committed to speeding up Education reforms with the help of its traditional and new donor and NGO partners. In addition, MoEYS recognizes the importance of well planned and genuine participation of provincial and district authorities, school staff, parents and community groups as well as the private sector in these reforms. The Ministry also sees an excellent opportunity in engaging the upcoming commune authorities in bridging the gap between center and grassroots for directions on education policy and program priorities.

This Education Strategic Plan 2001 – 2005 re-emphasises the commitment of the Government and the Ministry of Education, Youth and Sport to a pro-poor and policy-led education reform program for the next decade. This ESP summarises the phasing of the priority education policy and strategy reforms for the next 5 years. The proposed reforms are designed to be consistent with Government's broader policies for a national program for administrative reform (NPAR), fiscal and financial reform and gradual decentralisation and deconcentration plans for public service management. The indicative program strategies in the ESP are predicated on improved financial planning, management and accountability systems as they evolve within Government. The plan is also based on an assumption of increased participation of all stakeholders in defining priorities, implementing them and monitoring how effective the programs have been.

This Education Strategic Plan is the basis for planning the education sector's contribution to achieving Government's broader poverty reduction objectives and targets over the next 10 – 15 years. The ESP policies and strategies are incorporated into the approved Interim Poverty Reduction Strategy Paper (IPRSP), approved in late 2000. The implementation of the ESP will also be adjusted where necessary in line with the full PRSP which should be ready in late 2002. The medium-term expenditure framework is directly derived from the Government's public expenditure program (PEP) and public investment program (PIP), shared with the international community at the Paris Consultative Group Meeting in 2000. The program strategies draw on initial lessons learned from the first phase of the priority action program (PAP) for basic education, implemented by the Ministry in 2000.

The proposed phasing of education policy and strategy implementation and its financing in the ESP draws on shared lessons learned by Government, MoEYS and the international community from the previous Education Investment Plan 1995 – 2000. A recent sector performance review by the joint Government/donor social sector working group for education highlighted (a) disappointing sector performance in achieving equitable access, quality improvement and efficiency targets, despite significant aid volumes, (b) poor financial performance, including under resourcing of education by Government and inefficient salary/non-salary spending shares, (c) unstated policy priorities and processes, including inconsistency between spending patterns and stated policy priorities and targets, (d) under-developed regulatory mechanisms, especially for ensuring student/teacher attendance and for effective management of parental contributions and (e) weak sector monitoring/evaluation systems, including limited attention to overall impact, lessons learned from projects and financial reporting. The ESP design will address these limitations head-on.

While acknowledging these limitations, there have been significant achievements in the past 5 years.The primary schooling phase has been extended from 5 to 6 years with the introduction of the 6-3-3 system in 1996. Primary school enrolment has grown from 1.6 to 2.2 million with an additional 500 – 600 schools being constructed or extended.Secondary school enrolment has grown overall to 330,000 students, alongside significant growth in the public/private partnership in higher education and technical vocational education and training.For the latter, over 100,000 students participate in post school training, with 50% of provision through private initiatives.Quality improvement achievements include provision of free textbooks for Grades 1 – 9 from 1997, alongside various forms of training and upgrading for around 60,000 teachers.Consistent with Government's commitment, the share of discretionary recurrent spending on education has risen from 9% in 1994 to 15.7% in 2001.The ESP is designed to consolidate and build upon these significant achievements in the next 5 years.

1.2 Ensuring an Inclusive Sector Planning Process

This ESP 2001/5 represents no more than an intermediate milestone in an intensive policy development review and planning process, initiated and led by the Minister and Secretaries of State since early 1999. The Ministry realises that introducing education reforms has to be a flexible, evolving and rolling process. Many of the policy and program priorities outlined in the ESP are based on positive experiences of previous donor and NGO-supported education projects since the early 90s. Much of the capacity building proposed will build on training programs at central, provincial, district and school levels initiated in the mid 90s. The Priority Action Program (PAP) mechanism is not started from scratch but actually began in mid 2000. In other words, the underpinning principle within the ESP is incremental changes and program adjustments taking account of regular, open and honest assessment of the progress made and impact achieved.

The current process leading to this ESP document has involved extensive internal consultations within MoEYS through 4 policy task forces, ongoing consultations with the Ministry of Economy and Finance and Ministry of Planning in the past 18 months. The Ministry has also mobilized consultative processes with over 500 provincial and district education staff and community representatives on policy priorities throughout 1999/2000. This process included discussions with the National Parents Association Forum in late 2000 and regular consultation with the donor and NGO community. Preliminary policy, strategy and program priorities were shared with all stakeholders through the MoEYS document Equity, Efficiency and Quality of Education Financing (July/November 2000).

The Ministry wishes to emphasise that this initial ESP document is not a cast-in-stone blueprint setting out a fixed menu of project interventions for a five-year period. In contrast, the ESP will constitute the initial phase of a rolling programme of prioritised and sequenced strategies for implementing reform. The level of detail for particular strategies will vary depending on the extent to which particular strategies have been finalised within Government. Therefore, a forward and collaborative work programme focusing on strategic areas requiring further analysis and design will be a fundamental component of ESP.

The Ministry realizes that it cannot plan and implement the ESP policy and strategy priorities alone. The planning process is based on a clear understanding of the need for close collaboration and cooperation from various arms of Government. For example, there will be a need to ensure strong linkages with the process of developing the full PRSP and careful integration of program priorities and their financing within the second Socio-Economic Development Plan (SEDP) through joint planning with the Ministry of Planning (MOP). Capacity building and personnel reform programs will have to be carefully integrated with the plans for financial management and public administration reforms and decentralization and administrative de-concentration, through regular consultation and joint planning with the Ministry of Economy and Finance (MEF), Ministry of Interior (MOI) and Council of Administrative Reform (CAR). These relationships are shown in the diagram below.

The ESP planning process also recognizes the key role that other partners can play. For example, ensuring that gender and vulnerable group considerations (e.g. girls, ethnic minorities, handicapped, street children) are mainstreamed will involve regular consultations and cooperative planning with the Ministry of Women's and Veteran Affairs (MOWVA) and the Ministry of Social Affairs, Labour and Youth (MOSALVY). In addition, ESP planning and implementation will also draw on the extensive experience of local and international NGOs and community-based organisations and the private sector. These processes will make use of the recent NGO Partnership Study (February 2001) and the Study on Public Private Partnerships in Education (April 2001) personally commissioned by the Minister. In summary, the ESP is seen as a vehicle for comprehensive and inclusive education reform planning.

The presentation of the ESP represents a first phase in a joint review and appraisal process over March/July 2001. The ESP document has been finalized after receiving feedback from stakeholders, through an agreed process with donors, NGOs, Ministry of Planning, Ministry of Economy and Finance, Ministry of Interior and the Council for Administrative Reform.

The second phase will be presentation of a final ESP, and of a more detailed, phased and costed Education Sector Support Programme (ESSP), incorporating priorities for a mix of support modalities including budgetary support, capital project investment and capacity building TA. The ESSP will be presented as a companion volume to the ESP, rather than being integrated into a single document. The ESSP will be presented in early June 2001 followed by an in-country joint Government/Donor/NGO appraisal and review exercise, scheduled for late June 2001. Agreed processes for the organisation and management of this ESSP appraisal process have also been circulated separately in February 2001.

the purpose and proposed timeframe for the ESP pre-appraisal and ESSP appraisal/review needs to be understood in this context. These two processes should be seen as :

• key milestones in ongoing and transparent annual MoEYS/donor/ NGO consultative processes rather than one-off exercises
• critical mechanisms for negotiation between stakeholders on policy priorities, strategic options and alternative modalities for financing education reform
• opportunities to dovetail strategic negotiation and financing discussions with the Government/MoEYS budget planning cycle which begins around July/August each year
• vehicles for shifting the education partnership away from a passive 'pledging' approach to an active and productive strategic negotiation and annual sector performance review process.
• Consistent with the Government proposals at the Paris CG meeting 2000, the proposed approach is to shift from donorship to partnership.

1.3 Consolidating Education Reforms : 1999 – 2001 Initiatives

The ESP 2001/5 document should be viewed by stakeholders in the context of a number of ongoing education reform initiatives. The Government/MoEYS has already taken a number of key education and policy actions, including financing reforms. The ESP is designed to build upon these ongoing policy and strategic actions. In particular, the ESP design directly responds to the recognition that sound education development needs to be placed within rigorous and well planned macroeconomic conditions and management.

Over the period 1999 – 2000, the Ministry commissioned, with donor assistance, a comprehensive strategic analysis of the education sector. This document Education Sector Development : A Strategic Analysis (January 2001) is presented as a companion volume to the ESP. It is designed to provide a detailed situation analysis, set out potential strategic priorities for sub-sectors and institutional development and provide an initial progress report on education reform. While the Ministry has been intimately involved in its preparation, it needs to be emphasized that, in the final analysis, the strategic analysis represents the views of the consultants.

Following the strategic analysis the Ministry undertook a number of processes as a basis for finalizing the ESP. Firstly, Ministry senior officials and senior technical staff screened the proposed policy and strategy priorities and selected those considered as feasible over the initial five year ESP period. Secondly, small working groups were established to set realistic and achievable policy and strategy targets. Thirdly, these working groups also defined the initial program priorities and actions needed to achieve these targets. Where appropriate, other ministries were actively consulted on potential institutional and financial opportunities and constraints. In addition, the Ministry organized a number of consultations with Provincial and district Education staff to get their views on how feasible the proposed priorities were at the grassroots level. These processes took place over the period November 2000 to March 2001.

1.4 Strengthening Partnership Processes

The ESP planning and implementation process will represent a new departure in the way partners work together. Partnerships will be forged in a number of different ways and with various constituencies. As a first step, the Ministry will seek approval of the ESP by the Council of Ministers, possibly in the form of a MoEYS strategy paper.

The Ministry will strengthen its partnership arrangements with other key ministries through joint working parties and monitoring groups (e.g. for education financial planning and management, for impact monitoring, for personnel reforms). These intra-government discussions will also be used to define the role of Government and the Ministry of Education, Youth and Sports in policy, planning and service delivery of various education services. Key areas for clarification of the role of MoEYS will include Early Childhood Care and Development (ECCD), Non Formal Education (NFE), Technical and Vocational Education and Training (TVET) and Higher Education. In summary, these consultations will form the basis for a clearer definition of the form of public private partnership in these program areas and sub-sectors.

The Ministry is proposing to build upon the Principles and Practices for Partnership agreed by MoEYS, donors and NGOs in February 2001. The fundamental principles are that partners will engage in constructive and active strategic negotiation in a frank and transparent manner in order to implement a shared vision and agreed set of long term and medium term policy priorities and targets. In broad terms, the long term vision will be derived from internationally agreed Development Assistance Committee (DAC) targets and from the Education For All platform endorsed at Dakar in late 2000. The partnership guidelines are at Annex 1. The Ministry sees as a key first step that MoEYS, donors and NGOs should agree on a collaborative work plan and program for design and implementation of ESP policy and strategic frameworks (e.g. including the role of NGOs in grassroots capacity-building and piloting small-scale innovations).

The Ministry will also strengthen sector planning processes within its internal MoEYS management and organization structures. Key measures will include:

• Phasing out of the Task Forces and increased use of Directorates General and Departments to carry out further policy development.
• Specific department and sub-sector master plans/ strategic plans to be made consistent with ESP.
• Transformation of the Policy and Planning Group (PPG) into a high level MoEYS senior management decision-making body.
• Consideration of the creation of a high level Education Advisory Body, appointed by the Minister with broad-based representation including business and civil society, mandated to lobby the House of Assembly.

2. Broad Policy Priorities : 2001 - 2005

2.1 Linking ESP to Long Term Goals for Education

The ESP needs to be seen as a first set of rolling and phased policy, strategy and program priorities over a five year period. It should be recognized that this ESP is not a fixed 5 year sector investment plan and is better viewed as an evolving sector development program aimed at moving towards longer term education goals and targets. The rolling nature of the program will provide opportunities for any re-ordering and re-adjustments based on resources available and lessons learnt from early program implementation.

This Education Strategic Plan (ESP) 2001 – 2005 is only one small step and milestone in the long road for bringing better education services to all Cambodia's people. It is important for all stakeholders to understand that it is impossible to predict how the system will look in ten to fifteen years time. The Ministry's goal is to develop an inclusive, easily accessible and high quality service which is available to all, independent of wealth, gender, ethnicity and physical and mental well-being. The Ministry's vision also includes an understanding of the critical need for education and training systems to enable economic growth, improved employment prospects and income-generating opportunities. The vision also incorporates a fundamental understanding that good education can contribute to better family health and nutrition, improved family planning and engendering democratic traditions.

The Ministry's vision of an inclusive education system also includes broad-based participation at all levels of Government and civil society in taking responsibility for planning and implementation of education services. The goal is to gradually put in place systems of mutual accountability between Government and communities for ensuring well performing and friendly schools and institutions. An associated goal would be to incrementally delegate greater decision making and spending authority to districts, possibly communes, and schools. In this way all national stakeholders would also have to assume responsibility for frank and open evaluation of how the system is performing and in taking steps to put things right.

The Ministry is confident that the ESP medium term objectives which focus on significantly increased and equitable access to 9 years basic education and improved quality and relevance of schooling and further education studies and training are a massive step towards achieving these goals. In addition, the Ministry believes that the proposed measures for the reordering of Government, parental and donor spending will go a long way in alleviating cost barriers to education and putting education financing on a sustainable long term path. Finally, the stated priorities for both capital spending on schools in under-served areas and in initial institutional development will provide a strong foundation for attaining these longer term system changes.

2.2 Key Policy Priorities and Targets : Basic Education

The Ministry’s overall policy goal is to achieve Education For All (EFA) at latest by 2015, including improvement in not only enrolment rates but also participation, attendance and other quality-oriented indicators. The exact date will depend on resources available and on the success of the rolling program. In the ESP plan period, the MoEYS considers as important to focus down on a narrower range of policy objectives and targets which will need to be amended as monitoring tools become available and ESP implementation progresses.

Consistent with the Government's IPRSP 2000, the Ministry's top policy priority is to ensure equitable access and quality/efficiency improvement for 9 years of both formal and non formal basic education by 2010. The main targets up to 2005 are:[1]

• increased enrolment of students in Grades 1 – 6 and in Grades 7 – 9. Targets : 2.4 million and 0.85 million respectively; net enrolment rates 95% for primary and 50% for lower secondary educationgender, 
• socio-economic and urban/rural parity in primary education enrolment, alongside improved gender, socio-economic and geographical balance in Grades 7 – 9.Targets : parity in Grades 1 – 6. In Grades 7-9: 45% girls, 80% from rural areas, 10% students from the poorest quintile.improved survival rates across Grades 1 – 6 and Grades 7 – 9 for new and current age cohorts. Target : 90%significant improvement in the quality of performance and standards of primary and lower secondary students.Target : to be determined through new minimum standards of achievement from 2002
• raising progression rates in Grades 1 – 6 and transition rates from Grade 6 – 7.Target: 90%increased re-entry programs into mainstream schooling at grades 4, 5 and 6. Target: 110,000 per annum from 2002
• expanded public/ NGO partnership in adult literacy programs in disadvantaged areas. Target: 200,000 per annum from 2003
• preparation of an inter-ministerial policy and strategy for Early Childhood Care and Development (ECCD), including a clearly defined role for MoEYS in the planning, management and financing of selected components (e.g. pre-school) and its relationship with NGOs and community groups in service delivery. Target: ECCD policy and strategy paper finalized by early 2002.

2.3 Key Policy Priorities and Targets : Post Basic Education

The Government's overarching long term policy goal for upper secondary, TVET and higher education provision is based on putting in place a complementary public private partnership arrangement. The role of MoEYS will be to formulate policies which enable both public and private institutions to respond to education/ market needs, taking account of their respective comparative advantages. It will be the responsibility of both public and private institutional partners to assure achievement of the stated policy targets and the responsibility of MoEYS to monitor progress.

The Ministry's medium term priority is to enable more equitable access to upper secondary Grades 10 – 12 and higher education and TVET provision by 2005. An associated priority is to improve the quality and relevance of post basic education programs, including assuring a cadre of well qualified and effective managerial and teaching staff. The main targets up to 2005 are :

• increased enrolment in Grades 10 – 12, alongside improved gender, socio-economic and urban/rural balance. Target : 0.3 million students, net enrolment of 20%, 10% from the poorest quintile and 60% share from rural areas and 40% for girlsincreased enrolment in public and private higher education, alongside a growing private share. Target : 100% increase in total public and private enrolment, with 85% private sector share
• increased enrolment in public and private, formal and quality non formal TVET training programs, alongside a growing non Government share (private, NGO etc.). Target: 100% increase in total public and other enrolment, with 85% non Government share
• increased enrolment in public higher education and TVET institutions from students from poor families and non urban areas. Target : 10% share from poor families and 30% share from non urban areas
• improved relevance and standards of Grade 10 – 12 and post secondary student performance. Target : to be determined by Grade 9 and Grade 12 examinations and post training tests of standards by 2003 and employer satisfaction surveys

2.4 Key Policy Priorities and Targets : Institutional Development and Capacity Building for Decentralisation

The Ministry's long term policy goal is to put in place planning and management systems that allow for greater responsibility for decision making at districts, community and school levels. The development of these systems will need to be responsive to broader public administration reforms including the implications of any new role for the communes and of revised responsibilities for the Office of the Provincial Governors and Provincial Departments of Education coming out of the current MOI review. Detailed capacity building planning will also take account of the scheduled review of the existing MoEYS/ cluster organization.

A cross-cutting medium term priority is to selectively strengthen Ministry’s and other stakeholders’ institutional systems, processes and capacities to increasingly decentralize and delegate greater authority to provinces, districts, communes, clusters, schools and communities for education services planning, management, delivery, reporting and monitoring.

The main targets are :

• improved coordination systems for predictable financial planning and management between MoEYS, MoEF and MoP. Target : agreed medium-term expenditure framework (MTEF), Memorandum of Understanding and operational working groups by end 2001
• effective central MoEYS departmental policy, planning, reporting and monitoring operations, including designated budget management centers (BMCs).Target : 80% effective by end 2003
• fully operational provincial education operations for program planning, reporting and monitoring. Target : 80% effective by 2003
• fully operational district education offices for program management and implementation, including the designated 183 budget management centers.Target : 80% effective by 2003
• fully operational school management systems for program operation planning and implementation, including for selected recurrent and capital programs. Target: 75% of head teachers effective by 2004
• effective institutional management arrangements for higher education, TVET and teacher training, including transparency of financial reporting, accounting and audit. Target : 90% fully operational by 2003
• improved legislation and regulatory mechanisms for implementing selected priority programs, covering school and higher education, TVET and teacher training operations. Target : enabling legislation by mid 2002, selective regulations from late 2001 onwards
• improved joint Government, MoEYS, donor, NGO, civil society mechanisms for sector performance review and monitoring. Target : effective annual review exercises from mid 2001 onwards

2.5 Key Policy Priorities and Targets : Sector Financing

The long term policy goal for Education financing is to guarantee that no potential student will be excluded from access to education or training opportunities for reasons of inability to pay. An associated goal will be to put in place fair and equitable financing mechanisms, taking account of affordability by Government, parents and other potential contributors. Another associated goal is that sufficient information will be made available to all contributors to education costs in order that they can make effective judgements on the value of both current and future investment in the sector.

The medium term policy priority is to increase overall spending volumes on education and reduce the cost burden on the poorest families (especially for basic education). An associated policy objective is to provide targeted selective and merit-driven scholarships for the poorest in post basic education, while encouraging greater private sector involvement in upper secondary, higher education and TVET.

An associated medium term operational policy is to re-direct an increasing share of public funding towards basic education, alongside a reduced share for parents at this level. Nevertheless, the Ministry's financing plans project that the total volume of parental contributions to education spending will be maintained and gradually increased, as enrolment in lower and upper secondary education and further studies expands. This can be seen through an analysis of Table F.

The main financing policy targets by 2005 are :

• increased Government spending on education, including an increased share and volume for basic education. Target : Riels 541 billion annual recurrent budget by 2005, of which 70% share for basic education
• reduced average per student parental contributions for basic education costs, alongside increased public spending. Target : reduction parental share of unit cost from 50% to 18% over ESP period (from 40,000 Riels per student in 1997 to 26,000 Riels in 2005)
• increased recurrent public spending on quality improvement measures through higher share of non-wage operational spending allocations and disbursement. Target : 48% by 2005
• sustained increase in publicly funded school and institutional operating budgets, against agreed guidelines for school development and maintenance priorities. Target: Annual percentage increase in volume of funding for school and institution budgets greater than total recurrent budget percentage increase
• sustained capital spending on education development, especially for additional primary and secondary school facilities and capacity building. Target : Riels 570 billion (around Riels 110 billion per annum) over 2001/5
• transitional recurrent budget support from the international community to cover any projected shortfalls in Government and private spending. Target : projected Riels 134 billion over 2001/5
• increased transparency in the financing of recurrent and capital costs from external assistance, through the use of Government's own financial planning and management systems. Target : 100% of external assistance through Government budget planning systems by 2005

The implementation of the ESP is based on the fundamental principle of a stable and predictable medium-term expenditure framework (MTEF) for the sector. The sector planning process assumes that this MTEF will be reviewed and revised as part of the proposed annual sector performance review process, between Government, MoEYS, donors and NGOs, ahead of the annual Government budget planning process. The Ministry's initial MTEF for the period 2001/5 is shown in Tables A – H.

In the medium-term, a key MoEYS financing policy will be to promote increasing use of Government systems to plan, channel, manage and report on donor and NGO support for Education. An associated medium-term objective is to negotiate integration and/ or harmonization of current and committed project assistance into the priority ESP strategies and programs. MoEYS recognizes that, as discussed at the SIDA supported MoEYS/ donor/ NGO consultations in September 2000, this will be a gradual and incremental process. In this way, Government and MoEYS will be able to gradually capture and analyze indirect recurrent budget support to Education. Another associated objective is to promote the increased use of a mix of recurrent and capital budget support as a transitional arrangement for covering any projected or actual shortfalls in Government education spending. As part of the proposed ESP/ ESSP appraisal and review processes, the Ministry invites individual donors and NGOs to negotiate ways of using committed project funds for immediate and medium term ESP policy implementation.

2.6 ESP Responsiveness to Cross-Cutting Concerns

In preparing the ESP, the Ministry has been careful to take serious account of cross-cutting social and institutional concerns. The Ministry recognizes that many if not all of these concerns cannot be addressed or resolved by MoEYS alone. It is a central principle of ESP and ESSP planning and implementation that these cross-cutting issues will require a well planned inter-ministerial approach as well as regular consultations with donors, NGOs and community organizations with particular expertise.

The Ministry takes the principle of inclusiveness as a central tenet of its approach. In broad terms, the priority is to ensure that the poor and marginalized groups are included in all aspects of education and training provision. In addition, other vulnerable and under-served groups including ethnic minorities, girls, female heads of households, and the disabled fall within the framework of inclusive schooling.

The ESP is designed to take account of a number of critical governance concerns, especially the need for policies and strategies that guarantee transparency, accountability, predictability and participation in the planning and monitoring of education spending and its outcomes.

This is summarized in the table below.

3. STRATEGIC PRIORITIES : 2001 - 2005

3.1 Broad Strategic Directions

The broad strategy is to increasingly use the education budget as a means of implementing education system reforms rather than for system maintenance, particularly for ensuring pro-poor policies and strategies. 

The key strategic priority for ensuring more equitable access to basic education will be to reduce direct and indirect costs to parents (the major access barrier for poor families) through a significant increase in performance-based teacher remuneration. This strategy is designed to help eliminate the need for informal parental payments to teachers. An associated strategy will be to significantly increase school operating budgets to offset these demands on parents, increasingly managed at provincial and school levels. These strategies will help secure pupil and teacher attendance, improved progression rates and availability of basic education instructional supplies, as part of quality improvement measures. An associated strategy will be to take steps to improve the efficiency of staff deployment and use of education facilities in order to optimize resource use.

The Ministry is already implementing the first year of this strategy. The first phase of the PAP 2000 initiative for primary education (reflected in the new Chapter 13 budget format) was designed to address these issues through remedial teaching and school operating budgets. The PAP proposals for 2001, which include extension of primary and lower secondary school operational budgets nationwide and expansion of remedial teaching, are designed to accelerate equitable access policies and strategies. An initial assessment of PAP 2000 impact and PAP 2001 design for quality and efficiency gains in basic education are at Annex 2 and 3 respectively.

Another strategic priority will be to introduce new subsidy/incentive programs for the children of poor families to ensure access to primary and secondary school and post school training. The programs will be poverty indexed and merit driven, incorporating grassroots community involvement in student selection and management. The ESP envisages that these programs will be reflected in the annual recurrent budget for each sub-sector (under Chapter 31).

The key strategic priority for quality and efficiency improvement in basic education will be to secure an effective balance between wage and non-wage recurrent spending. The ESP anticipates that the majority of the quality/ efficiency programs will be planned and reflected in the PAP Plan (Chapter 13 of the budget). Program plans will integrate and build upon existing and committed project support wherever appropriate. The ESP is predicated on the principle of a "whole school" approach which ensures an appropriate mix of all key inputs and processes needed for effective teaching and learning. Programs will include provision of instructional materials, continuous professional development for teachers, student remedial and progression and non formal programs for adult literacy and school dropout re-entry into mainstream schooling. In addition, as part of ESP implementation, Government and MoEYS are considering developing new guidelines for the use of existing operational budgets (under Chapter 11) for better targeted program monitoring. The financing policy targets and assumptions are provided in Tables C – G.

A cross-cutting strategy for addressing both access and quality improvement will be increased but selective use of Information Technology (IT). Associated strategies will be increased access to IT-based distance learning opportunities (e.g. distance Masters), selective introduction of computer awareness programs into upper secondary schools and post-secondary institutions and more frequent use of IT-based approaches for the sharing of management and monitoring information.

Another strategic priority will be to take measures that enable a growing private/public partnership in post basic education, especially for higher education and TVET. The strategic priority will be to provide operating budgets for these institutions, grant greater operational autonomy and take steps to strengthen efficiency, governance and management. Associated measures to put in place transparent financial planning, management and accounting will be underpinned by new legislation and regulation. MoEYS is already implementing a PAP for higher education and selected TVET institutions in 2001, which is consistent with these priorities as summarized in Annex 3. Existing project assistance will be used to sustain the national training fund in 2001 in order to further stimulate private providers of TVET.

A further strategic priority will be to take measures that build up capacity for decentralized education service management. The fundamental strategy will be to build up the capacity of Government planning and management systems, rather than create parallel ones. Proposed measures include delegating greater responsibility to provinces and districts and schools/institutions for program planning (as under PAP basic and higher education 2001), selective equipping and training programs, better information management and strengthening central and provincial monitoring systems. These measures will be underpinned by a program of legislation and new regulations to improve quality assurance and system performance monitoring.

Besides allowing for greater responsiveness to local needs, the move towards decentralized management modalities is necessary considering the huge sector expansion, particularly notable at basic and upper secondary education levels. The Ministry is also aware that it has to align roles, responsibilities and organizational structures with those that are currently being discussed in the process of Government preparation for decentralization at the communal council level and for strengthened de-concentration at the provincial level. So far sub-national levels have most often been confined in an implementation role. The Ministry has started changing this through the first PAP in 2000 and in 2001 (e.g. PAP training programs, strengthening MoEYS provincial finance office), and will actively pursue decentralization of education management through a phased process that will be jointly agreed with MEF, MOI, CAR/ NPAR and MOP.

A final strategic priority will be to focus capital budget spending on enabling policy reforms. The main strategic priority will be rehabilitation of existing education facilities and targeted expansion for primary and secondary schools. Associated priorities are very selective capital investment in higher education, TVET and teacher training quality improvement. A third priority will be selected capacity building programs (i.e. creation of human capital). The proposed priorities for education facilities development are provided at Annex 4.

The overarching financing strategy is to achieve an effective mix of financing modalities that will secure implementation of the full range of policy targets. The ESP envisages that both Government and donor support will require a combination of budget support, capital investment and capacity building programs. As part of this strategy, a key short term objective will be to capture all forms of donor and NGO support for Education (e.g. project activities, technical assistance etc.) within the annual MoEYS budget process, including a clearer definition of what constitutes actual recurrent budget support. The total projected financing needs to achieve the proposed policy and strategy targets is summarised in Table H, including potential recurrent and capital budget shortfalls.

3.2 Assuring Equitable Access to Education Services

The ESP includes four main strategies for ensuring equitable access to education services, summarised as:

• Parental Cost Reduction and Regulation Strategies
• for basic education, alongside targeted cost sharing for post-basic education services
• Internal Efficiency Improvement Strategies
• Expanded Public/Private Partnerships in grade 10 – 12 schooling, higher education and TVET, through targeted financing schemes
• Targeted Education Facilities Development
• focusing on securing complete grade 1 – 6 schools and expanded grade 7 – 12 provision in currently under-served areas

For Parental Cost Reduction and Regulation, the main strategies and targets are as follows:

• Reduction in average parental contributions for basic education through abolition of start of year school charges and provision of school operating budgets by Government. Target: abolition of start-of-year school charges in grades 1 – 9 nationwide by Oc
• Establishing regulations for the transparent collection and accounting of parental contributions to education and training costs, alongside waivers and other measures that ensure that no student will be excluded due to inability to pay. Target: regulations and associated incentives/ sanctions in place for the start of school year 2002/03.
• Target: program designed by October 2001 for introduction in 2002.
• Provision of merit driven subsidies/scholarships to students from the poorest families for higher education and TVET institutions, with eligibility based on increasing use of Grade 9 and Grade 12 examinations. Target: program designed by October 2001 for introduction in 2002.
• Provision of subsidies/scholarships to all students for teacher training institutions, with eligibility based on increasing use of Grade 9 and Grade 12 examinations. Target: program expanded by October 2001.

For Internal Efficiency Improvement, the main strategies and targets are as follows:

• Increased student progression rates across grades 1 – 6 and transition from Grade 6 to Grade 7, through a combination of remedial teaching in grades 1 – 6, strengthenedeasures for better students and teachers attendance and a more flexible annual school calendar. Target: 90% progression and transition rate by 2005
• Target: maximum 5% drop out by 2005 (average across grades), strategy for targeted incentive programs developed by end 2001
• Improved regulation of entry into Grade 1 and increased opportunities for re-entry for out of school students in grades 4 to 6, through introduction of Grade 1 reception classes nationwide and expansion of re-entry programs. Targets: 95% of pupils enter at correct age by 2005, new Grade 1 reception and grades 4 to 6 re-entry programs introduced in August 2001.

For Expanded Public/Private Partnerships, the main medium term strategic priorities and targets are as follows:

• Preparation of a cross-cutting policy and strategic plan for public private partnerships in various education sub-sectors and programs, including grades 10 to 12, TVET, higher education, ECCD and NFE. Target: strategy and action plan prepared by end 2001.
• Provision of targeted incentive programs for private providers, especially in TVET, through expansion of the National Training Fund and access to other development funds. Target: expanded NTF from 2001 onwards
• Promotion of expanded private provision at all levels through clearly defined legislative, regulatory and quality assurance arrangements. Target: new regulations from mid-2002
• Increased student transfer and progression between public and private institutions, through new accreditation and credit transfer arrangements between private and public providers. Target: new arrangements from mid-2003
• Introduction of broad-based representation on higher education governing bodies alongside further strengthening of the industrial advisory boards for TVET planning and programming. Target: revised arrangements introduced by late 2001

For Targeted Education Facilities Development, the main strategies and targets are as follows:

• Provision of new and additional classrooms, alongside selective multi-grade teaching in villages and communes without a complete grade 1 – 6 primary school. Target: 100% coverage by 2005
• Provision of additional classrooms and multi-purpose practical rooms in all communes/clusters without a grade 7 – 9 school facility. Target: 100% coverage by 2005
• Provision of additional classrooms for grades 1 – 6, grades 7 – 9, and grades 10 – 12 in currently or projected overcrowded schools. Target: 100% coverage by 2005
• Establishment of a demand driven secondary school and higher education/TVET development fund, which will be responsive to untapped demand for secondary education opportunities. Target: fund established by mid-2003

3.3 Improved Quality and Efficiency of Education Services

The ESP includes five main strategies for ensuring improved quality and efficiency of education services, summarised as:

• Education Service Efficiency and Productivity Improvement
• Decentralised School / Institution Operational Planning and Management
• Sustainable Instructional Materials Provision
• Decentralised Teacher Development Planning and Management
• Improved School / Institutional and Student Performance Monitoring

For Education Service Efficiency and Productivity Improvement, the main strategies and targets are :

• Continued consultation with the NPAR to ensure that education system staff requirements due to expansion are met and education staff remuneration policies and plans are consistent with broader Government reforms. Target : agreement with NPAR by mid 2001
• Improved efficiency in planning and deployment of teaching and non-teaching staff in primary and secondary schools, through: (i) revised, Government agreed PTR-based staff planning norms; (ii) related staffing guidelines for school; (iii) strengthening of norm enforcement mechanisms. Target : primary PTR 48, secondary PTR range 25 – 30, post secondary PTR 20 by 2003
• Extensive redeployment of non-teaching staff into classroom teaching positions, through limiting the prime pedagogique to classroom teachers and other incentives. Target : minimum 4000 non-teaching staff redeployed by 2005
• Extensive re-deployment of teaching and non teaching staff from schools with excess staff to those suffering deficits, against revised staffing guidelines. Target: plan prepared by late 2001
• Increased remuneration for all education managers, teacher trainers and teaching staff, through a combination of basic civil service pay rises and incremental increases to the prime pedagogique. Target : remuneration plan prepared by late 2001
• Performance-based targeted incentives for core groups of education managers and teaching staff, especially for personnel providing efficiency and productivity gains. Target: program introduced in FY 2002
• Strengthened appraisal and regulation of minimum standards of staff performance and workloads, alongside development of CAR approved incentive/ sanction mechanisms for enforcement. Target: operational guidelines prepared by start of school year 2002/03
• Formulation of a strategic framework for well defined career paths for education managers and teaching staff (i.e. Education Statuts Particuliers) as a basis for supply/ demand staff requirement planning, training and pay reform. Target: CAR approved framework issued by late 2001.

For Decentralised School / Institution Operational Planning and Management, the main strategies and targets are :

• Improved school performance and school / parents' committee management of poverty-indexed primary and secondary school operational budgets, through district-managed PAP budget allocations. Target : all primary and secondary schools granted allocations from early 2001
• Improved institutional performance and institution-managed operational budgets for higher education, TVET and teacher training institutions, linked to annual development plans via the PAP mechanism. Target : all institutions granted allocations from 2002
• Improved district level technical and financial operational planning and management, through district budget management centers assuming greater accountability for PAP and other programming. Target : 80% BMCs fully operational by 2003
• Improved school / institution performance monitoring at provincial and central levels, through standard setting and increased operational budgets for monitoring operations. Target : all provincial / HQ MoEYS departments effective by 2004

For Sustainable Instructional Materials Provision, the main strategies and targets are :

• Assuring sustainable financing of instructional materials by Government, through affordable and efficient primary and secondary school curriculum review relevant to social, civic and economic development. Target : curriculum policy revisions, including life skills strategies, completed by mid 2003
• Equitable access to core textbooks and selected complementary / supplementary materials for Grades 1 – 12, through adequate annual Government budget provision. Target : one textbook per student per subject for grades 1 to 9, one per two students for grades 10 to 12 from 2002
• Adequate provision of instructional materials for Higher Education, TVET and teacher training institutions, through agreed PAP mechanisms and targets. Target : plan prepared by late 2001
• Decentralisation of the planning and management of instructional materials provision, through annual allocations to schools, via the PAP mechanism. Target : program introduced in 200
• Improved efficiency in the publishing and distribution of core instructional materials, through establishment of the publishing and distribution house as a public enterprise under effective legislation, regulation and management. Target : PDH established as public enterprise from early 2002
• Assuring improved impact on quality of teaching / learning of instructional materials, through annual textbook orientation programs and strengthened monitoring systems. Target: systems upgraded from late 2002

For Decentralised Teacher Development Planning and Management, the main strategies and targets are:

• Coordinated teacher supply / demand planning systems, taking account of enrolment expansion and revised staff deployment guidelines, through new MoEYS technical committees, including personnel, finance, planning and teacher training departments. Target : planning committee established by mid 2001
• Increased delegation of authority to teacher training institutions and provincial / district authorities to plan new teacher training intakes against agreed MoEYS guidelines. Target: authority and guidelines in place by mid 2002
• Increased intake into provincial and regional teacher training colleges, including greater flexibility in institutions preparing primary, lower secondary and upper secondary teachers. Target : intake of 6000 trainees per annum from September 2001
• Increased operational autonomy to teacher training institutions, through provision of annual operational budgets against agreed intake levels and staffing norms. Target : individual TTC allocations from September 2002
• Improved quality and relevance of all levels and types of pre-service teacher (PRESET) training programs, through school and teacher training curriculum reform and development (e.g. for multi subject, multi grade, ethnic minority teaching, life skills) and accredited staff development. Target : revised PRESET programs introduced in 2002
• Assuring an adequate supply of teachers from remote and ethnic minority areas, through active recruitment from these areas, special incentives and flexibility in entry requirements and program duration. Target : action plan prepared by end 2001
• Improved responsiveness of teacher training institutions to in-service teacher (INSET) training requirements, through increased operational autonomy to run programs against agreed MoEYS guidelines. Target : each teacher training institution produces INSET action plan by end 2001
• Expansion of in-country teacher/ tutor training and development programs for higher education and TVET institutions. Target: plan by mid 2002.

For Improved School / Institutional and Student Performance Monitoring, the main strategies and targets are :

• Definition of minimum standards of student achievement for each grade 1 – 12. Target : completed by early 2002
• Assure a shared understanding of minimum standards amongst teachers, parents and other stakeholders, through a nationwide information, education, communication program. Target : completed by end 2002
• Introduction of minimum tests of standards and revised examinations for Grades 4, 6, 9 and 12. Target : by September 2003
• More efficient higher education, TVET and teacher training admissions policy, through increased use of Grade 12 examination results for initial screening of potential entrants. Target : introduced from mid 2002
• Greater efficiency in planning and management of school and student performance monitoring, through clear definition of the roles of the central inspectors, pedagogical research department and examinations office. Target : responsibilities agreed by end 2001
• Greater efficiency in the day to day planning and management of school performance monitoring, through redefinition of the roles of head teachers and provincial / district inspectors and allocation of annual budgets for monitoring. Target : action plan agreed by end 2001
• Increased transparency and accountability for school and student performance, through annual dissemination of results of standards test and examinations. Target : annual publication from mid 2003
• Revised institutional and financing arrangements for managing school / student performance monitoring, through central MoEYS department organizational reform. Target : reforms agreed by end 2004
• Establishment of national standards and upgraded assessment/ accreditation mechanisms using competence-based training (CBT) approaches for TVET programs. Target: introduction by early 2003
• Introduction of rigorous higher education quality assurance and regulatory mechanisms. Target: plan prepared by late 2001

3.4 Sustainable Institutional Development and Capacity Building for Decentralisation

The Ministry's long term goal is to enable schools, institutions and communities to have a greater voice and responsibility in the running and management of education services. The details of long term education service organization and management mechanisms will be defined as broader political and public administration structures become clearer (e.g. the role of commune councils). This first ESP will be used as a transitional period.

In order to ensure that strategies are developed within the emerging Government framework for decentralization and de-concentration, MoEYS will establish a joint working group involving MOI, MEF, CAR/ NPAR and MOP. The working group will, amongst other tasks, assist in rationalizing roles and responsibilities in Education development at all levels. On this basis it will develop an action plan for strengthening systems, processes and capacities at all levels, that will operationalize the strategies outlined below.

In particular, the capacity building components of the ESP accords the highest priority to strengthening school/ community relations, focusing on developing mechanisms for greater mutual accountability and governance at the grassroots level. This will need to include rationalization of the respective roles of school committees, parents associations, cluster committees, commune councils and village development committees. Improving these relationships will take place in the context re-defined roles for provincial and district authorities.

In this context, the ESP includes three main medium term strategies for institutional development and improved capacity building for decentralisation, summarised as :

• Strengthening Central and Provincial Planning and Monitoring Systems
• Enhanced District and School / Institutional Management Systems
• Improved Governance and Regulatory Systems

For Strengthening Central and Provincial Planning and Monitoring Systems, the main strategies and targets are :

• Improved predictability for medium-term financial planning and decentralized financial management, through securing a Government commitment to an MTEF, including designated PAP and other program budget provisions and projections. Target : agreed MTEF and MoU for PAP for period 2001 – 2005 by mid 2001
• Improved central coordination of education system capacity building strategies and programs, through strengthening of the National Committee for Development of General Education and establishment of a similar committee for post secondary education. Target: NCDGE action plan by mid 2001, NCDHE/TVET established mid 2002
• Strengthening central and provincial strategic and financial planning and monitoring, through capacity building programs, delegation of responsibility for PAP/program budget allocations to provinces and agreed guidelines for program output / outcome monitoring. Target : central and provincial work plans agreed by end 2001
• Strengthening education system performance and impact monitoring, through introduction of joint Government, MoEYS, donors and other stakeholders annual performance review, agreement on key performance indicators and annual work plans for performance data collection and analysis. Target : key performance indicators agreed by March 2001, MoEYS annual work plan from March 2001 and first review in June 2001

For Enhanced District and School / Institutional Management Systems, the main strategies and targets are :

• Strengthening district and school program management systems, through capacity building for PAP district BMCs and school head teachers and parents' committees and revised PAP management guidelines. Target : action plan and guidelines agreed by mid 2001
• Strengthening higher education, TVET and teacher training institutions management systems, through management capacity building linked to new PAP guidelines. Target : plan and guidelines for some institutions from March 2001, all institutions from mid 2002
• Strengthening provincial and district level personnel management systems, through issue of new staffing guidelines and norms, increased delegated authority to districts for staff deployment against these norms and capacity building for provincial / district personnel planners. Target : new staff guidelines by mid 2001, action plan by end 2001

For Improved Governance and Regulatory Systems, the main strategies and targets are :

• Improved accountability through introduction of legislation and regulations for granting increased operational autonomy to schools and post secondary institutions. Target : enabling legislation by end 2001, selective regulations from late 2001 onwards
• Improved transparency in use of parental and private contributions to schools and other institutions, through new guidelines on accounting and management of these contributions. Target : guidelines implemented from early 2002
• Improved governance of schools and post secondary institutions, through the issue of guidelines that set out powers and responsibilities of education authorities, parents and community associations. Target : guidelines issued by mid 2002
• Improved transparency of education service performance, through a selective information, education and communication program that disseminates nationwide key information on system and school performance. Target : IEC action plan from mid 2001

4. ESP Monitoring and Review Processes

4.1 Focusing on Policy Outcomes and Targets

The ESP monitoring and review process will focus on the extent to which policy objectives and targets have been achieved on an annual basis. This represents a strategic shift from traditional approaches to monitoring, which have concentrated on monitoring progress on individual activities and accounting for discreet project and program inputs.

Accordingly, the ESP monitoring process will focus on a small number of key policy performance indicators in order to ensure timely and reliable data collection and analysis. The broad areas of performance monitoring can be summarised in the box below

The education sector monitoring system will include performance monitoring, inspection and internal auditing:

• Performance monitoring will compare achievements with expected results (at policy, strategic and program level in all ESP priority areas) and will relate performance to efficiency and effectiveness of education spending.
• Inspection will measure how successfully institutions implement education policy, strategies and programs, and contribute to reaching national and local performance targets.
• Internal audit will check how well these first two systems function, and will verify compliance with established legislation and regulations and with administrative and financial rules and procedures.

The organization of the ESP monitoring system will be based on the following levels of responsibility :

• Sector Performance Monitoring : by the Inspectorate of Education, the Planning Department and the National Committees for Development of General Education and Higher Education/TVET
• Program Impact Monitoring : by Planning Department and individual central MoEYS departments for individual PAPs and other programs
• Program Progress Monitoring : by provincial education officers, especially Planning office and inspection staff, and Provincial Finance Office in MoEYS
• Operational Monitoring : by district officers, designated cluster leaders and school heads and committees
• System Performance Audit : by the Inspectorate of Administration and Finance, Government National Audit Authority and commissioning of selective independent audits

The Ministry will prepare an action plan that clearly defines the roles and responsibilities at the various levels by mid 2001. This plan will be used as the basis for priority capacity building at various levels over the next 24 months.

4.2 Annual Sector-Wide Management and Monitoring Processes

The Ministry will establish processes for annual sector-wide management and monitoring. For progress monitoring, the annual review exercise will provide a vehicle for integrating lessons learnt from on-going projects and programs into management and monitoring reforms. In addition, the annual exercise will provide opportunities for incorporating the experiences of pilot programs and innovations into the rolling process of policy and strategy development. An indicative arrangement is shown in the diagram below.

In particular, the Ministry will use these annual monitoring processes for ensuring a clear link between medium and long term perspectives in terms of forward programming. This will involve examining the extent to which long term targets and programming may have to be adjusted taking account of short term and medium term achievements towards these targets. Unlike a fixed 5 year investment plan, the proposed rolling program approach will provide an ideal mechanism for any necessary adjustment to targets, strategies and programs. In addition, the rolling approach can also be more responsive to any unforeseen deficits or surplus in available resources.

For 2002 onwards, it is proposed that the monitoring of implementation of the ESP be conducted as follows :

• An interim progress monitoring exercise by Government, MoEYS and other stakeholders, including preparations for the annual review exercise in January 2002 and each year thereafter.
• Agreement on a work plan for collection and analysis of key performance data by February 2002 and each year thereafter
• Implementation of the annual performance review exercise in June 2002 and each year thereafter.

In order to manage the annual performance monitoring and review exercise, the Ministry will set up a special Education Performance Monitoring Steering Committee, chaired by the Secretary of State. This steering committee will be responsible for ensuring timely collection of performance data, organization of the joint review exercise and publication of an annual Education System Performance Report in July of each year. This will culminate in a joint annual review meeting of education partners.

As part of this organization reform for monitoring and review, the Ministry will broaden the scope of the National Education for All Committee to give it responsibility for sub-sector performance review beyond basic education. A capacity building priority will be to seek support for strengthening the operations of the new EFA Secretariat within the Ministry, including setting up coordination mechanisms with the new NCDGE, the proposed NCDHE/TVET and other MoEYS departments.

The Ministry will also be taking steps to strengthen coordination mechanisms with other stakeholders in a number of ways, including :

• Monthly consultations with donors and NGO representatives to provide progress monitoring reports on key issues and agree necessary actions (e.g. presentation of regular reports on PAP impact, Annex 2)
• Strengthening performance monitoring arrangements with high level Government and donor groups, through progress reports and meetings with the Social Sector Working Group and National Council for Social Development

Active engagement in high level progress monitoring committees, through the NPAR technical committees and new MoEF / sector ministry PAP monitoring groups

5. Financial Planning and Management

5.1 Implementing Pro-Poor Education Financing Policies

The ESP is underpinned by a detailed analysis of current and projected recurrent operational and capital costs, designed to optimize the use of public and non public education resources. The key financial planning targets are provided in Tables A and B.

The fundamental thrust of the ESP financing policy is to reduce average parental contributions for basic education. Baseline data for public and non-public / parental contributions to education spending are provided in Table D. The policy target is to increase public spending on basic education from around Riels 40,000 per student to Riels 116,000 per student by 2005, meaning a reduction in average parental contributions from 50% of total (1997 figures) to 18% by 2005 (in volumes, from 40,000 Riels in 1997 to 26,000 Riels in 2005). The financing plan also projects that at upper secondary level parental/ non public contribution remains constant in volume over the ESP period. Government spending increases by 80%, entailing a reduction in parental / non-public spending share from 62% to 46%. The detailed financial projections and targets for this pro-poor education financing policy are shown in Table F.

The financing plan is also designed to implement performance-based pay reform policies. The assumptions and targets for salaries reform are shown in Table B. The priority will be to increase classroom teacher salaries, which is projected to double by 2005, including substantial upfront increase over 2001/3. For non-teaching staff, the projected salary increase is around 75% by 2005, with a progressive 15% increase. Special incentives and increased differentiation in salary scales will be used, depending on performance of revised tasks and responsibilities (e.g. for head teachers and remote school postings).

A key feature is to secure efficiency gains in the use of staff and facilities, through a number of measures. Important measures include increased pupil/teacher ratios for secondary education up to PTR 25 by 2005 and increased use of double shifts in primary and secondary schools. The financing plan also incorporates increased public spending on quality improvement, including for textbooks. The plan projects a doubling of the schools operating budgets support per student through public funds, alongside allocations for continuous, nationwide training of all teachers and head teachers.

Another key feature of the ESP financing plan is to increase both the volume and share of non-wage recurrent spending, in order to secure sustainable quality improvement. It is projected that salary costs will roughly double from around Riels 126 billion in 2000 to around Riels 282 billion by 2005. In contrast, non-wage operational spending is projected to treble from around Riels 84 billion in 2001 to Riels 259 billion by 2005. The non-wage share is therefore projected to increase 34% to 48% over the ESP period 2001 – 2005.

The overall implications for these reforms are a significant increase in public spending on basic education, which is projected to rise from around Riels 180 billion in 2001 to Riels 377 billion in 2005. The spending share on basic education is designed to remain consistently between 70 – 75% of total public spending, consistent with ESP priorities. Public spending on upper secondary is projected to grow from Riels 14 billion to Riels 65 billion by 2005, in order to secure the participation of growing numbers of students from poorer families as the system expands. These sub-sectoral financing plans are shown in Table G and summarised below.

Financing Reform Scenario : Sub-sector Recurrent Budget Implications (Riels Billion)

5.2 Projected Total Financing Needs and Available Resources

The Ministry recognizes that effective implementation of the ESP policies and strategies will require predictability of available resources. MoEYS, MEF and other key stakeholders in national and sub-national planning and budgeting processes will ensure that systems are strengthened in order to enable the Ministry to undertake effective medium-term planning, budgeting and priority program implementation. This include the establishment of an Education MTEF which will be integrated within MEF medium term financing projections. The initial Education MTEF indicating overall resource requirements and projected Government spending on Education is shown in the table below.

Projected Resource Requirements : Education Strategic Plan 2001/5 (Riels 'Billion)

Note 1 : Projected available resources for 2004/5, based on MoEYS assumptions of increased GDP share for education rising from 1.5% (2001) to 2.4% (2005). 

The Ministry will make every effort to secure the recurrent budget requirements from Government revenues. Nevertheless, a recurrent budget shortfall of around Riels 133 billion is projected over the ESP period, heavily weighted towards 2001/3. The Ministry seeks policy-based recurrent budget support from the donor community to cover this shortfall.

Overall capital budget requirements, covering facilities development and capacity building programs are projected to cost around Riels 570 billion over the period (roughly Riels 110 billion per annum). Once again, the Ministry seeks assistance from the donor community to support this extensive capital investment program.

5.3 Ensuring Increased Predictability of Resources

Effective implementation of ESP policies and strategies and ESSP priority programs is based on an assumption of increased predictability in education resources planning, mobilization and disbursement.

At the macro level, the Ministry intends to take a number of measures to achieve this. Firstly, it will request the establishment of a joint Education Financial Management Group (EFMG) between MoEYS and MOEF, at Secretary of State level. This EFMG would be serviced by a senior technical level working group , including representatives from MOEF's newly established Policy Monitoring Unit, Budget Strategy and Enforcement Centre (BSEC), Budget Department and External Finance and Cooperation Department. It is anticipated that Terms of Reference and work plans for these working parties will be in place by July/ August 2001.

A central responsibility of these joint MOEF/ MOEYS financial working groups will be to facilitate an agreement on multi-annual financial targets and allocations for education priority programs linked directly to an annually adjusted medium term expenditure framework for education. The joint annual review meeting is intended to provide the vehicle for clear indications of donor support for the education MTEF, including projects, recurrent and capital budget support and technical assistance.

The Ministry recognizes that the integration of donor support for the education MTEF has major implications in terms of donors resources mobilization. The Ministry will encourage all donors to plan, budget and mobilise their support in line with Government’s planning and budgeting cycle. This will be achieved through a rolling process including:

• Multi-annual resource planning – integrating donors’ indicative commitments for at least 3 years within the Education Medium Term Expenditure Framework.
• At the joint annual performance review exercise in June, provision by donors and Government (MEF) of planned resource envelopes for Education sector as a starting point for subsequent budget year preparation, together with confirmation of medium term commitments.
• Confirmation of donor commitments for the forthcoming year before the national budget is submitted to the National Assembly for approval (November/ December).
• For budget support funds, releases to Government account at an agreed frequency.

5.4 Proposed Financial Management and Monitoring Systems

The financial planning, management, reporting and accounting systems for ESP implementation will be based, wherever possible, on the use of existing or planned Government systems. In broad terms, the Ministry proposes that the following recurrent financial planning and management mechanisms are used for the various priority programs, including :

• Education service pay reform programs and performance incentive schemes, through Chapters 10 and 13 of the Government's budget respectively
• Provincial and district operations, including monitoring through revised guidelines for provincial education budget Chapter 11
• Central MoEYS department and post secondary institution operational budgets be managed through specific and delegated budget allocations under Chapter 11
• Majority of priority action programs (apart from the subsidies / scholarships for the poor), through Chapter 13 of sub-sectoral, institution and provincial budget allocations
• Subsidy / scholarship programs for the poor, through Chapter 31 of sub-sectoral and provincial budget allocations

The Ministry proposes that for the programs under budget Chapter 13 and 31, the technical and financial program management and reporting be delegated to designated district-based, department-based or institution-based budget management centers. However at this stage, decisions on program management arrangements will be made on a case-by-case basis, taking account of capacity assessments and capacity building requirements.

The Ministry proposes similar use of Government financial management systems for capital investment programs, including capacity building. The Ministry is currently exploring the scope for using provincial and rural banking systems for the disbursement of funds to provincial / district education authorities and communities for facilities development. The Ministry will provide further guidance after consultation with MoEF and assessment of provincial / rural banking capacity.

Financial management of capacity building programs will be designed on a case-by-case basis, depending on the scale and complexity of the programs. Once again, the Ministry's guiding principle will be to use Government financial planning and management systems, including increased use of dedicated accounts in the Government Treasury, MoEYS Finance Department and in some instances, individual MoEYS departments.

6. Indicative Program Priorities

6.1 Recurrent Program Priorities

The Ministry has identified a number of priority programs for targeting and disbursement of the wage and non-wage budget over the period. These programs are only indicative and will be subject to further design and appraisal over the period 2001/5. The particular budget mechanism to be used (e.g. Chapters 10, 11, 13 and 50/51) will be determined during the annual Government budget discussions and negotiation with potential donors. These programs will be detailed as part of the Education Sector Support Program (ESSP) plan to be presented in May 2001. A preliminary program summary, which is subject to amendment is provided below.

Preliminary Summary of Priority Programs : 2001 – 2005 (Recurrent, Riels Billion)

For the year 2001 the table reflects the Ministry’s initial plans as follows:

• Programs 1, 2, 3, 4, 5, 8, 9 and 10 were approved by the PPG late 2000, and proposed for PAP funding to MEF as part of MoEYS budget 2001 submission.
• Programs 6 and 7 reflect Master Plans that are being developed for strengthening past achievements in the areas of teacher development and provision of instructional materials.

Resources that are actually available for implementation of these programs in 2001 include:

• Government PAP budgets for programs 2, 3 and 5 (program 5 through PAP Higher Education, complemented by on-going project support for TVET);
• On-going project support ensuring part or all of the funding required for programs 6 and 7
• NGO support ensuring some funding for programs 8 and 9.
• Programs 1 and 10 are un-funded. They feature high on MoEYS priorities for the year 2002.

The general education teaching service efficiency program outcome is to ensure equitable access to education services through reduced informal payments to teachers by poorer families. Another outcome will be the improved performance of the teaching service, linked to improved efficiency in staff deployment. The main activity includes performance based incentives to the teaching service linked to special incentives for core groups, including head teachers, working in remote and difficult circumstances and teachers providing specific efficiency gains (e.g. multi grade teachers). The MoEYS will be designing specific guidelines for targeting and allocation of these allowances. The program will be managed through 180 district BMCs, with monitoring by HQ Personnel Department based on agreed staffing regulations. The indicative cost of this program is around Riels 135 billion.

The basic education quality and efficiency improvement program outcome will be to reduce the direct costs on poorer families through increased Government support for operational costs at both primary and lower secondary levels. The first component will be to expand PAP provision of school operating budgets for primary schools nation wide. The second component will be to introduce direct support for school operating budgets into grades 7 to 9. For the two components funds will be managed and channeled to schools by over 180 district BMCs. The National Committee for Development of General Education (NCDGE) will manage the monitoring of the program. The indicative cost of the school operating budget program is around Riels 200 billion over 5 years.

The improved primary progression / retention program outcome will be to regulate age of entry and increase the student progression rate across Grades 1 – 6 and transition from Grade 6 – 7. The main activity will be vacation time remedial teaching programs across all 6 grades, building on the proposed program for year 2001. The program will be managed by 180 district BMCs. The HQ Department of Primary Education will manage the monitoring of the program on behalf of the NCDGE. The cost of the program is estimated at around Riels 50 billion over 5 years.

The upper secondary quality and efficiency improvement program primary objective/outcome will be to reduce the direct and indirect costs on poorer families through increased Government support for operational costs in upper secondary grades 10 to 12. A second outcome will be to improve internal staff deployment and pupil teacher ratios, through redeployment of administrative staff back to the classroom. Meeting new MoEYS guidelines will be a condition of receiving operational budget support. The main activity will be to introduce the PAP for grades 10 to 12 in schools nation wide to over 150 district BMCs, including school operating budgets. Allowances for the redeployment of secondary school staff at the district level will be provided under the program 1. The HQ Department of Secondary Education will manage the monitoring of the program. The estimated cost of this program is around Riels 20 – 21 billion over 5 years.

The higher education quality and efficiency improvement program outcome will be to improve quality and efficiency of higher education, measured by improved students learning. A second outcome will be to improve the financial regulation, management and accountability of higher institutions through new MoEYS guidelines for public/ private partnerships in financing the sub-sector. The main component and activity will be to implement the Prime Minister’s recent guideline to ensure adequate operational budget support for higher education. The Department of Higher Education will be the BMC for monitoring. The indicative cost of this program is around Riels 10 billion over the 5-year period.

The TVET quality and efficiency program will provide operational budgets to provincial TVET institutions and funding to the National Training Fund. A key objective will be to secure quality improvement and financial sustainability post donor support. The Department of TVET will be the BMC for monitoring. The indicative cost of this program is around Riels 10 billion over the 5-year period.

The teacher development program will expand operations at the RTTCs and PTTCs through provision of operating budgets for these institutions. The objectives will focus on the expansion of pre-service and in-service programs, including for full time and part time multi-grade and multi-subject teaching and continuation of teacher orientation program (TOP) especially for introduction of grade 10 to 12 text books. This will allow for more efficient deployment of teaching staff, linked to the incentives under program 1. The Department of Teacher Training will be the BMC for monitoring. The indicative cost of this program is around Riels 100 billion for the 5-year period.

The instruction materials program outcome will be to secure improved quality and education standards in primary, lower secondary and upper secondary schools. The main activity will be to provide core textbooks and additional selected complementary and supplementary materials/workbooks at all levels against agreed targets of provision. Resources indicated in the table cover the provision of one core textbook per student (1:1) for all subjects and grades (including Grades 10 to 12), and of selected complementary materials. The program will be linked to the gradual commercialization of the publishing and distribution house, MoEYS. Budget management center arrangements have yet to be finalized, although the publishing house will be designated to monitor the program. The indicative cost is around Riels 83 billion for the 5-year period.

The non-formal education expansion program outcome will be to provide cost efficient and targeted complementary schooling and literacy programs in under-served areas. Activities will include literacy classes, expansion of re-entry programs for school dropouts into Grades 4 and 7 and improved management. Budget management center arrangements have yet to be finalized. The Department of Non Formal Education will be responsible for program monitoring. The estimated cost of the program is around Riels 17 billion over the 5-year period.

The School Health and Youth AIDs awareness program outcome is to increase the awareness of in school and out of school youth to Aids awareness and prevention mechanisms. The target group is estimated population of 2 million between the ages of 11 and 20 years. The main activity will be to launch a nation wide Aids information and prevention campaign, delivered through primary and secondary schools and community centers. The teaching service will be mobilised as major disseminators of Aids messages. The Department of Youth and Sport will be the BMC for monitoring. The total cost is an estimated Riels 5 billion over the 5-year period.

Equitable access and retention program would guarantee students from poor families would have the opportunity of continuing their education to the highest levels that their abilities allow. This initiative would also begin to offset the low levels of participation of the poor at the later stages of education. For example, at present there are no students from the poorest 20% of families in higher education, meaning the human potential of poor Cambodian families remains untapped. The scholarships scheme will operate at four levels including primary, lower secondary, upper secondary and higher education. Management and monitoring arrangements have yet to be finalized. The estimated cost is around Riels 115 billion over the 5-year period.

6.2 Capital Program Priorities

The education facilities development program outcome will be to secure equitable access to high quality primary and secondary education in underserved and overcrowded areas and schools. The main activities will be to construct or rehabilitate school buildings and provide furniture. The priorities will be incomplete and overcrowded primary schools, lower secondary schools in districts/clusters with no current provision and selective additional provision for upper secondary schooling in underserved areas. In addition, housing will be provided in schools in difficult circumstances in order to help retain staff. At the upper secondary and post secondary level, additional specialist facilities will be provided in schools with Grades 10 – 12 and in higher education, TVET and teacher training institutions. Program and financial arrangements will be determined on a case-by-case basis for each program component. The program will be monitored by the Department of State Assets, MoEYS. The indicative costs will be Riels 474.5 billion (roughly Riels 95 billion per year) over the 5-year period. A more detailed summary is provided at Annex 4.

Preliminary Summary of Priority Programs : 2001 – 2005 (Capital)

(*) Note that this program focuses on managerial staff at all levels in the Education sector. Teaching staff development (including teacher trainers in TTC) will be funded through program 6 in the recurrent budget of the sector (section 6.1).

Strengthening monitoring and evaluation systems program outcome will be to strengthen MoEYS capability at HQ and provincial levels to monitor and evaluate the progress and impact of education reforms, especially the performance of the PAP initiative. The main activities will be to improve the processes, training and other capacities of HQ and provincial level staff in monitoring and evaluation techniques. The PAP will include provision of operational costs and staff performance incentives for monitoring/evaluation. The monitoring programs will be managed through a number of departmental BMCs for various programs. The estimated cost is around Riels 15 billion over the 5-year period.

Other program planning and management capacity building programs outcome will be to strengthen planning, management and monitoring systems for the various priority programs. Capacity building will include organizational development, equipment, other logistical support, advisory services and training programs for MoEYS departments, provincial and district authorities and schools. The program will be directed by the action matrix for capacity building for decentralisation at Table 3. A priority will be to build up the capacity of the Department of State Assets, private contractors and communities to implement, manage and monitor the comprehensive facilities development program. The budget management center for the capacity building programs will be the National Committees for the Development of General Education and Higher