ASIAN DEVELOPMENT BANK Operations Evaluation Department

PROGRAM PERFORMANCE EVALUATION REPORT

IN

MONGOLIA

In this electronic file, the report is followed by Managements response.

Performance Evaluation Report

Project Number: 27371 Loan Numbers: 1507-MON(SF)/1508-MON (SF) June 2007

Mongolia: Education Sector Development Program

Operations Evaluation Department

CURRENCY EQUIVALENTS (as of 19 June 2007) Currency Unit MNT1.00 $1.00 = = togrog (MNT) $0.00086 MNT1,163.25000

ABBREVIATIONS ADB ADTA ESDP IT MDG MECS OEM PCR PIU PPTA TA TEVT Asian Development Bank advisory technical assistance Education Sector Development Program information technology Millennium Development Goal Ministry of Education, Culture, and Science operations evaluation mission project completion report project implementation unit project preparatory technical assistance technical assistance technical education and vocational training GLOSSARY aimag bag ger soum province subdistrict traditional Mongolian tent dwellings district NOTE In this report, $ refers to US dollars.

KEYWORDS educational restructuring, educational sector strategy, mongolian educational development effectiveness, mongolian educational projects evaluations, mongolian educational sector developments, mongolian educational vocational training, rural-urban migration, transitional economy

Director Team leader Team member

R. Keith Leonard, Operations Evaluation Division 1, Operations Evaluation Department (OED) Jocelyn Tubadeza, Senior Evaluation Officer, Office of the Director General, OED Caren Joy Mongcopa, Senior Operations Evaluation Assistant, Operations Evaluation Division 1, OED Operations Evaluation Department, PE-701

CONTENTS Page BASIC DATA EXECUTIVE SUMMARY MAP I. INTRODUCTION A. Evaluation Purpose and Process B. Expected Results and Program Objectives DESIGN AND IMPLEMENTATION A. Formulation B. Rationale C. Cost, Financing, and Executing Arrangements D. Procurement, Construction, and Scheduling E. Design Changes F. Outputs G. Consultants H. Loan Covenants I. Policy Framework PERFORMANCE ASSESSMENT A. Overall Assessment B. Relevance C. Effectiveness D. Efficiency E. Sustainability OTHER ASSESSMENTS A. Impacts B. Asian Development Bank Performance C. Borrower Performance D. Technical Assistance on Institutional Strengthening of the Education Sector (TA 2716-MON) ISSUES, LESSONS, AND FOLLOW-UP ACTIONS A. Issues B. Lessons C. Follow-Up Actions iii v viii 1 1 2 2 2 4 5 6 6 6 13 14 14 14 14 15 16 19 20 20 20 21 22 22 22 22 26 27

II.

III.

IV.

V.

In accordance with the guidelines formally adopted by the Operations Evaluation Department (OED) on avoiding conflict of interest in its independent evaluations, the Director General of OED did not review this report and delegated approval of this evaluation to the Director of Operations Evaluation Division 1. Penelope Schoeffel (social sectors specialist) and Danzan Narantuya (sociologist) were the consultants. To the knowledge of the management of OED, there were no conflicts of interest of the persons preparing, reviewing, or approving this report.

APPENDIXES 1. Overview of Schools Visited by Operations Evaluation Mission 2. Comparison of Appraisal and Actual Program Costs 3. Implementation and Compliance with Program Measures 4. Results of a Survey of the Opinions of Teachers about the ESDP Staff Rationalization Program 5. Results of Focus Groups with High School Students in Selected Schools 6. Achievements of Investment Project Component 7. Staff Development under the Education Sector Development Program 8. Results of Focus Groups with Parents of High School Students in Selected Schools 9. Assessment of Overall Program Performance 10. Basic Education Indicators, 19962005 11. Rural and Urban Issues in Education Sector Planning 12. Universities, Institutions of Higher Education, and Colleges, by Location

28 42 43 53 60 64 68 71 73 76 78 86

Attachment:

Management Response

BASIC DATA Education Sector Development Program (Loans 1507-MON[SF] and 1508-MON[SF]) in Mongolia Program Preparation/Institution Building TA No. 2228 2719 TA Name Education Development Project Institutional Strengthening in the Education Sector Type PPTA ADTA PersonMonths 13 82 Amount ($) 400,000 970,000 Approval Date 09 Dec 1994 19 Dec 1996

Key Program Data ($ million) ADB Loan Amount/Utilization ADB Loan Amount/Cancellation Key Project Data ($ million) Total Project Cost Foreign Currency Cost Local Currency Cost ADB Loan Amount/Utilization ADB Loan Amount/Cancellation Key Dates Fact-Finding Appraisal Loan Negotiations Board Approval Loan Signing Loan Effectiveness First Disbursement Program Loan Project Loan Program Completion Loan Closing Program Loan Project Loan Months (Effectiveness to Completion) Borrower Executing Agencies Mongolia

As per ADB Loan Documents 6.5

Actual 6.2 1 0.0

11.30 7.10 4.20 9.00

9.85 6.82 3.03 8.181 0.06 Actual 26 March16 April 1996 726 June 1996 2122 November 1996 19 December 1996 7 March 1997 7 March 1997 10 April 1997 15 April 1997 30 September 2002 2 December 1999 8 November 2002 68

Expected

5 June 1997

31 March 2002 30 September 2000 30 September 2002 59

Ministry of Education, Culture, and Science Bank of Mongolia (only for Loan 1507-MON[SF])

Actual disbursements in dollar terms were lower than the approved amount due to the decline of the SDR against the US dollar during the program period.

iv Mission Data Type of Mission Fact-Finding Appraisal Project Administration Inception Review Midterm Review Disbursement Project Completion Operations Evaluation

No. of Missions 1 1 1 6 1 1 1 1

No. of Person-Days 66 80 8 112 20 2 20 46

ADB = Asian Development Bank, ADTA = advisory technical assistance, PPTA = project preparatory technical assistance.

EXECUTIVE SUMMARY The Education Sector Development Program (ESDP) comprised an integrated package of policy reforms, investments, and associated technical assistance (TA) to transform the education sector and meet the needs of a market-oriented economic system. Until 1989, Mongolias achievements in the field of education compared favorably with middle income countries; however, in 1991, with the withdrawal of Soviet assistance, Mongolia experienced an economic and financial crisis, which undermined the progress made in the education sector. Enrolments declined, dropout rates rose, and schools were deteriorating. The ESDP consisted of a policy-based loan of SDR4.46 million ($6.5 million), an investment loan of SDR6.181 million ($9 million), and associated TA of $0.95 million. It was approved on 19 December 1996, signed on 7 March 1997, and became effective on the same date. The ESDP was the first time the Asian Development Bank (ADB) used the sector development program modality. The ESDP was designed to upgrade the quality, performance, and sustainability of the education sector and improve educational management capacity. The policy program included measures to (i) rationalize education structures and staffing, (ii) promote cost-recovery schemes, (iii) support privatization and private sector provision of education, and (iv) reassess the Government's role in technical education and vocational training (TEVT). The investment project aimed to (i) strengthen educational management capabilities at the central, local, and institutional levels; (ii) improve quality and coordination in higher education; and (iii) increase the effectiveness and efficiency of secondary education. The associated TA was intended to strengthen the institutional capacity of the education sector to achieve the objectives of the ESDP. The program performance evaluation report (PPER) rates the ESDP highly successful because it established strong policy foundations for sector-wide education development in Mongolia, which were further addressed in two subsequent ADB education development projects in 2002 and 2006. In particular, the success of the ESDP is demonstrated by Mongolias selection for the Education for All Fast Track Initiative partnership, which comprises the first global compact on education that is assisting low-income countries to achieve free, universal basic education by 2015. Mongolia is now eligible to receive a grant from the Fast Track Initiative donors to cover a funding gap in the education budget from 2007 to 2009. This will enable implementation of the second education sector master plan recently approved by Parliament. The ESDP is rated highly relevant because it addressed the pressing need supported by government policy and ADBs country strategyto transform education from a centrally planned model to a more flexible and efficient system that would meet the needs of a market economy. The PPER rates the ESDP highly effective as a result of the impressive 60% enrollment increase (countrywide) in schools rehabilitated with ESDP assistance. Overall, the ESDP contributed to restoring enrollments to near pre-transition levels. It reorganized schools and equipped them with computers and science teaching aids under improved management. The ESDP promoted policies that enabled private schools to be established, leading to greater educational diversity and choice. An effective national higher education accreditation authority was established and the ESDP provided a number of higher education assistance packages that supplied urgently needed curriculum development, textbooks, teacher training, and

vi postgraduate management training. Much remains to be achieved in the higher education subsector, however; as a result of Government-provided incentives, the supply of places is greater than the demand, which is probably leading to a lowering of academic standards. The ESDP is rated highly efficient. Under the ESDP and related investments, a costefficient complex model has been established that amalgamates a number of adjacent neighborhood schools providing 10-year education programs under common management. The reform has resulted in (i) economies of scale; (ii) efficient utilization of scarce school buildings, which were reassigned to meet age-related needs of primary and secondary school children; and (iii) organization of teachers into collaborative, subject-based departments. Widely dispersed schools selected for project assistance remained under separate management, but were linked by networks of subject teachers. Although it initially met with considerable resistance, the complex model is now considered by Mongolias educationalists to be a blueprint for efficient future development of urban education. ESDP investments in primary and secondary curriculum development and teacher training were particularly cost-effective through use of the training of trainers methodology. The ESDP originally planned to train 1,086 teachers and staff but succeeded in training 10,847, through the use of courses that were significantly shorter than those originally planned; overall the results appear efficient according to interviews with school managers. Private sector textbook publishing was encouraged and schools enabled management to pay staff on performance-based criteria. School management now seeks private sector sponsorship and request voluntary donations from parents to support budgetary shortfalls. The ESDP rehabilitated a total of 88 schools, located in Ulaanbaatar and 17 provincial centers, compared to the initial target of 20 schools. The investment in school renovation was spread fairly thinly, with priority given to major problems such as leaking roofs and dysfunctional heating systems. This made good sense in terms of the major deterioration of school facilities at the start of the ESDP, and the effect this had on enrolments. The PPER rates the ESDP likely to be sustainable. The ADB Second Education Development Project continued the initiatives of the ESDP, and the Third Education Development Project builds on ESDP foundations towards the improvement of educational quality. The policies of the ESDP will be sustained under the second education sector master plan recently approved by Parliament. Laboratory equipment and teaching aids, library resources, classroom furniture, and computers provided under the ESDP have been carefully looked after, with teachers keeping detailed records on the use of equipment. Rehabilitated schools were clean and well kept. ADB supervision and Government performance is rated highly satisfactory in the PPER. The project implementation unit and its director performed particularly well considering it was the first time the executing agency had implemented an ADB-financed program or project. Problems do remain, however. State budgetary allocations for school maintenance are inadequate. Many school buildings need to be replaced rather than renovated. Most school buildings are poorly designed for Mongolias long, harsh winter conditions. Many renovated periurban schools are already severely overcrowded due to rural to urban migration. Most schools teach two shifts, and in Ulaanbaatar three shifts are typical. Typically, primary, secondary, and senior secondary students use the same classrooms in different shifts. Attention is drawn to the impact of rapidly growing rural to urban migration in Mongolia, which is being driven by the structural transformation of the pastoral industry from small to larger-

vii

scale production. The PPER suggests that the highest donor priority should be providing (i) additional and improved education infrastructure in urban areas to reduce overcrowding, improve sanitation, and improve learning and boarding environments; and (ii) innovative, distance education-based strategies for provision of home-based primary education services to nomadic communities. To assist the Government in implementing the second education master plan and the Education For All Fast Track Initiative, the PPER recommends that the following three policy development issues should receive support from ADB: (i) develop an updated urban education infrastructure investment and financing plan, (ii) develop a future-oriented rural primary education development strategy, and (iii) plan a financing strategy for the establishment of a new national higher education center of excellence to raise academic standards in Mongolia.

R. Keith Leonard Director Operations Evaluation Department Operations Evaluation Division 1

96o00'E

111o00'E

RUSSIAN

F E D E RATI O N

MONGOLIA

EDUCATION SECTOR DEVELOPMENT PROGRAM

Hanh

50o00'N

Ulaangom UVS
Tsengel Nogoonnuur Dayan Naranbulag Dzavhan Tudevtey Tes Tsagaan-Uul

Hatgal

50o00'N Altanbulag

HOVSGOL Moron

Sukhbaatar BULGAN SELENGE Darhan DARHAN-UUL

Ereentsav

BAYANOLGIY

Olgiy

Selenge Hutag-Ondor Erdenet Zhargalant Bulgan

Bayan-Uul

DORNOD HENTIY
Atar

Hovd
Manhan Dariv

ZAVHAN
Tsahir

ORHON Sumber Choybalsan ULAANBAATAR

Baganuur Nalaih Maant Batnorov

Havirga

ARHANGAY Uliastay
Hishig Ondor Battsengel

HOVD
Yarantay Uyench

Tsetserleg
Tayshir Harhorin

TOV Zuunmod

Tamsagbulag

Ondorhaan GOVISUMBER Choyr

Monhhaan

Matad

Altay
Togrog

Bayanhongor Arvayheer
Buutsagaan Nariynteel

Baruun-Urt
Erdenetsagaan Bichigt

GOVI-ALTAY
Chandman Burgastay

Mandalgovi DUNDGOVI Saynshand

SUHBAATAR
Bayandelger

OVORHANGAY BAYANHONGOR
Tsogt-Ovoo

DORNOGOVI
Zamyn-Uud

Sevrey 42o00'N

Dalanzadgad Project Site OMNOGOVI

Bayan-Ovoo Gashuun Suhayt

National Capital Provincial Capital City/Town

42o00'N

N
0 50 100 150 200 250 Kilometers

Main Road

PEOPLE'S REPUBLIC OF CHINA

Provincial Road Railway River Provincial Boundary International Boundary Boundaries are not necessarily authoritative.

07-0130 RM

96o00'E

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I. A. Evaluation Purpose and Process

INTRODUCTION

1. The Education Sector Development Program (ESDP) 1 in Mongolia was selected for evaluation to determine lessons from a sector-wide, reform-based program in a country experiencing the early stages of transition to a market economy. At the time of ESDP formulation Mongolia was virtually insolvent. 2. Following the Guidelines for Preparing Performance Evaluation Reports for Public Sector Operations, 2 this evaluation is based on program documents, a range of country studies, and the findings of an operations evaluation mission (OEM). The OEM examined the implementation of ESDP components for education management rationalization, curriculum development, teacher training, school equipment, and renovation of school buildings through visits to 20 program and non-program educational institutions (Appendix 1) covering kindergarten, secondary, as well as secondary-vocational education, located in Ulaanbaatar (the capital) and in four provinces (Darhan-Uul, Selenge, Orhon, and Ovorhangay), including urban, district, and subdistrict centers. The OEM also visited the National Pedagogical University and the National University of Mongolia in Ulaanbaatar. The selection of provinces allowed the OEM to examine the ESDPs impact on education services in a variety of development contexts, ranging from remote rural centers to modern provincial towns and a large city. The OEM consulted a wide range of stakeholders in these locations, including senior officials of the Ministry of Education, Culture, and Science (MECS) 3 at national and provincial levels, and a range of donors. It also conducted focus groups with (i) secondary students in selected schools on the utilization of project teaching aids, computers and laboratory equipment; and (ii) parents on the impact of project outcomes on school quality. 3. While many reforms, such as restructuring of 171 schools, eventually won bipartisan acceptance by the Government of Mongolia (the Government), one major element of the ESDP rationalization and reformsthe retrenchment of teaching staffremains controversial. The program provided compensation packages for 5,000 staff (comprising 66% teachers and school managers, and 34% school support staff); it also encouraged a reduction of 3,140 in the teaching staff through attrition. As this was not addressed analytically in the Program Completion Report (PCR), the OEM examined the impact through a small tracer study. 4. The PCR rated the ESDP highly successful. It was rated (i) highly relevant because the design of the ESDP was considered to be closely linked to the Asian Development Banks (ADBs) country operational strategy; (ii) highly effective because it successfully achieved its immediate objectives of improving the management capacity, sustainability, quality, and performance of the education sector; and (iii) efficient in its achievement of outputs related to investment, the purpose of the policy reforms, and capacity building of the Government. The PCR rated the ESDP most likely sustainable as the Government had continued to give high
1

ADB. 1996. Report and Recommendation of the President to the Board of Directors on Proposed Loans and a Technical Assistance Grant to Mongolia for the Education Sector Development Program. Manila. (Loans 1507MON[SF] and 1508-MON[SF], for a total of $15.5 million, approved on 19 December 1996). A sector development program is considered when a sector requires both investment and policy reform components, and where the former is unlikely to be accomplished in full and on time without the support of a policy-based component (OEM D5/BP, 29 October 2003). ADB. 2006. Guidelines for Preparing Performance Evaluation Reports for Public Sector Operations. Manila. Available: http://www.adb.org/Documents/Guidelines/Evaluation/PPER-PSO/default.asp At appraisal, the executing agency was the Ministry of Science, Technology, Education, and Culture. Following a reorganization, it was renamed the Ministry of Education, Culture, and Science in August 2002.

2 priority to investment in education and human resource development, and public expenditure for education had remained stable. The impact of the ESDP was rated substantial. The ESDP reduced disparities in access to schooling between boys and girls (the gender imbalance had favored girls) 4 and between cities and rural areas. It had a positive impact in supporting male students, who tend to drop out more readily than female students because poor families in rural areas often regard them as breadwinners. The dropout rate of male students decreased at primary and secondary schools rehabilitated under the ESDP, as the financial burden on poor families was reduced. 5. The technical assistance (TA) completion report rated the associated TA highly successful, and found that the TA project fully accomplished its objectives and provided essential support to MECS in a wide range of policy areas being supported by the ESDP. All envisaged activities were completed on schedule. B. Expected Results and Program Objectives

6. The ESDP constituted the Governments key reform intervention to transform the education sector to match the changing requirements of an economy in transition from a centrally-planned to a market-oriented system. It comprised an integrated package of policy reforms, investments, and TA intended to make the education sector more cost efficient, effective, and responsive to the emerging economy. In particular, it aimed to improve educational management capacity and to upgrade the quality, performance, and sustainability of the education sector. The policy reforms included measures to (i) rationalize education structures and staffing, (ii) promote cost recovery schemes, (iii) support privatization and private provision of education, and (iv) develop a comprehensive policy framework for technical education and vocational training (TEVT). The investments were intended to (i) strengthen educational management capabilities at the central, local, and institutional levels; (ii) improve quality and coordination in higher education; and (iii) increase the effectiveness and efficiency of secondary education. The associated TA aimed to strengthen the education sectors institutional capacity to (i) undertake and consolidate reforms, (ii) introduce and extend quality improvement measures, and (iii) improve and sustain cost-effectiveness and efficiency. 7. Expected outcomes were a strengthened education management capability and improved quality and efficiency of education, as measured by improvements in education indicators such as (i) dropout rates, (ii) gross enrolment rates, (iii) average qualifications of teachers, (iv) student-teacher ratios, and (v) the average salary levels for teaching staff. II. A. Formulation DESIGN AND IMPLEMENTATION

8. In 1992, the Government requested TA to undertake a comprehensive sector review and to assist in the preparation of a master plan to guide the future direction of the sector. 5 The sector review was completed in 1993. The key issues identified were (i) the impact of decentralization of finance and management, which called for new policies, planning, management, and financial skills; (ii) the impact of economic transition on sector financing,
4

Following the decollectivization of the pastoral industry and the reestablishment of family herding, there was a major increase in demand for the labor of school-age boys. ADB. 1992. Technical Assistance to Mongolia for Human Resource Development and Education Reform. Manila. (TA 1801-MON, for $535,000, approved on 11 December).

3 highlighting the need to arrest the decline in quality and deterioration in educational environments, and to introduce new methods of generating resources for education; and (iii) the need for greater relevance in educational content to match the needs of a market-oriented society. Major constraints identified were (i) excess school capacity and staffing levels, resulting in unsustainable overhead costs; and (ii) the need to redefine the role and functions of TEVT in a changed environment. 9. The master plan completed in December 1993 provided a foundation for education sector development. It identified six principal areas for action that became the basis for several legislative and policy frameworks: (i) enhance basic and general education, (ii) reform higher education for national development purposes, (iii) rationalize systems for vocational training, (iv) provide learning opportunities for out-of-school children and youth, (v) improve educational management, and (vi) increase the efficiency of MECS. With the master plan as a foundation, the Mongolian Parliament approved a package of laws in 1995 to govern the education sector. 10. In December 1994, ADB approved project preparatory (PP) TA 6 to prepare an education development project to assist the Government in seeking external financing for long-term restructuring and strengthening of the education and human resources sector. The PPTA project, which was implemented in two phases to allow for consultation with various stakeholders, was successfully completed in March 1996. It produced a detailed investment proposal that addressed the key sectoral issues and priority requirements within the framework of the goals and objectives of the master plan. The PPTA reports findings and recommendations became the basis for formulating the ESDP. Overall, the OEM rated the PPTA project successful. 11. The ESDP was initially conceptualized as a project, but during processing, concerns were expressed about the objective to retrench approximately 8,000 surplus teaching and non-teaching staff (cooks, guards, cleaners, coatroom attendants, maintenance staff, etc.) Concerns centered on the measures social and economic impacts, rather than its necessity. The issue of whether the Government had the capacity to provide a compensatory safety net for those affected by the plan was raised at the Management Review Meeting (16 May 1996). Subsequently, the President was requested to approve processing of an education sector development program loan, combining the investment activities and the downsizing policy actions, with an increased loan amount of $16.0 million (from $8.6 million). 12. The President responded (5 June 1996) that as the new proposal would double the loan amount drawn from scarce Asian Development Fund resources, there was a need to demonstrate clearly that (i) the investment and policy components were inseparable, and (ii) there was agreement between the Government and the International Monetary Fund (IMF) regarding overall civil services rationalization. Accordingly, appraisal was postponed, and a pre-appraisal focused on technical aspects of the proposed investment project. A staff consultant examined options for a comprehensive staff rationalization program, and ADB participated in the IMF Enhanced Structural Adjustment Facility Review Mission. Consultation and appraisal missions (920 September 1996) obtained government approval of a sector development program modality (see definition of this modality in footnote 1) and an increase in the loan amount of between $2.5 million and $8.4 million, to offset the rationalization program costs. 13. At the Staff Review Committee Meeting on 29 October 1996, some staff expressed concerns about social and poverty impacts of the retrenchment component. Questions about the
6

ADB. 1994. Technical Assistance to Mongolia for the Preparation of an Education Development Project. Manila. (TA 2228-MON, for $400,000, approved on 9 December).

4 effectiveness of the retrenchment plan were also raised at the Loan and Technical Assistance Coordination Committee Meeting (19 November 1996), where it was noted that the staff rationalization plan might result in the loss of skilled teachers who were needed in a market economy. At Board discussion (19 December 1996), the Executive Directors approved the ESDP, noting that it was highly appropriate given the rapid deterioration of Mongolias education sector, but several directors expressed concerns about the social and poverty impacts of the retrenchment plans. Overall, concerns about social and economic impacts were allayed by the mitigation package provided in the ESDP for financial compensation and retraining of retrenched staff. 14. The ESDP was approved on 19 December 1996 and comprised an integrated package of a policy-based loan of SDR4.46 million ($6.5 million), an investment loan of SDR6.181 million ($9 million), and associated TA of $0.95 million. 7 Loan 1507-MON (SF) for policy reforms and Loan 1508-MON (SF) for the investment project were signed on 7 March 1997 and became effective on the same date. B. Rationale

15. Until 1989, Mongolias achievements in the field of education were impressive. Its gross enrollment ratios (98% in primary schools, 85% in secondary schools, and 17% in higher education) compared favorably with those in middle income countries. These achievements were secured through assistance from the former Soviet Union and the Council of Mutual Economic Assistance. However, in 1991, with the withdrawal of Soviet assistance and the collapse of the Council, Mongolia experienced an economic and financial crisis, which undermined the progress made in the education sector. There was marked erosion in both the quantity and quality of schooling; between 1989 and 1995 gross enrollments declined from 98% to 84% in primary schools, and 85% to 65% in secondary schools. Dropout rates rose significantly at all levels and in all regions of the country. Schools were deteriorating from lack of maintenance funds. The resultant deterioration in the quality of the education sector came at a time when the transition to a market economy called for different skills. 16. Mongolias education system was heavily dependent on subsidies and was both labor and service intensive. The system encompassed (i) preschool and kindergarten; (ii) 4 years of primary education, beginning at age eight; (iii) 4 years of lower secondary education, with compulsory education ending after Grade 8; (iv) 2 years of upper secondary education; (v) postsecondary and higher education; and (vi) secondary and postsecondary TEVT. Under the centrally planned system, every urban neighborhood in the capital and in provincial (aimag) towns had several schools, each with its own management, as well as teaching staff, and clerks, cleaners, heating stokers, electricians, guards, cooks, etc. Education services were provided at every level of government, at district (soum) level, and in hundreds of subdistricts (bags). Children from remote rural areas were accommodated in boarding dormitories linked to schools in provincial and district towns. 17. When agriculture was decollectivized, and freedom of movement was restored to citizens, a large numbers of rural households resumed the pre-socialist practice of small-scale, subsistence, nomadic herding. This increased pressure on the facilities in state boarding schools; because of the demand for family labor, it also reduced the number of boys progressing beyond the junior secondary level. At this time, many schools were overstaffed in

ADB. 1995. Technical Assistance to Mongolia for Institutional Strengthening in the Education Sector. Manila.

5 relation to the available resources and number of students, and some were in such a severe state of disrepair that they could not be used. 18. The ESDP was designed as an integrated package of policy reforms, investments, and associated TA to transform the education sector to meet the needs of a market-oriented economic system. Key elements were (i) rationalization and decentralization of school administration at all levels, to broaden options available to school administrations, teachers, students and parents; (ii) curriculum reform, including elimination of ideological content in social science, and a shift in emphasis from teacher-centered to student-centered curricula; and (iii) associated revision of pre-service and in-service teacher training. It included measures to encourage cost sharing with parents and students, so that education funding could be supplemented by other sources; provision of education by the private sector was allowed at all levels. C. Cost, Financing, and Executing Arrangements

19. ADB supported the Governments policy reforms program by providing a program loan of SDR4.46 million ($6.5 million equivalent). The funds financed the costs of the staff rationalization program and other associated costs incurred by the Government in implementing the policy reforms under the ESDP. These funds were allocated through Ministry of Finance. The program loan was released in two equal tranches. The first tranche of SDR2.232 million ($3.096 million equivalent) was disbursed in April 1997 and was fully liquidated in July 1998. The second tranche amounting to SDR2.232 ($3.061 million equivalent) was released in October 1998 following compliance of MECS with all conditions regarding policy actions to be taken under the ESDP. Actual disbursements in dollar terms totaled $6.2 million, which was less than the appraised amount of $6.5 million due to the decline of the SDR against the dollar during the program period (Appendix 2). 20. At appraisal, the total cost of the investment project was estimated at $11.3 million equivalent, of which $7.1 million (63%) was the foreign exchange cost and $4.2 million equivalent (37%) was the local currency cost. ADB was to provide a loan of $9.0 million equivalent (SDR6.18 million) to finance the entire foreign exchange cost of $7.1 million, and $1.9 million equivalent of the local currency cost. The balance of local currency cost (amounting to $2.3 million) was to be provided by the Government. The actual cost of the investment project was $9.8 million (including service charges and taxes and duties), including $6.8 million in foreign exchange cost and $3.0 million in local currency costs. ADB financed $8.2 million (including service charges) and the Government financed the balance of $1.6 million equivalent. During implementation minor reallocation in loan proceeds was undertakenfrom furniture, instructional materials, consulting services and unallocated categories to civil works, equipment training, and project implementation unit (PIU) recurrent costs. The details of the project costs are provided in Appendix 2. 21. The MECS was the executing agency for the two loans and the associated TA, and the Bank of Mongolia was responsible for initiating loan withdrawals and managing the imprest account under the program loan. The PIU, which was established in MECS and headed by a project director and assisted by four full-time staff, was responsible for overall project implementation and supervision. Policy guidance was to be provided by a project steering committee comprising representatives from various ministries and government agencies, including the Ministry of Justice, the Ministry of Health, and the Customs Office. However it became clear during implementation that convening a committee with the wide membership originally envisaged would be difficult, and the Project Steering Committee was restructured in 1998 to include only representatives of agencies directly involved with the ESDP (e.g., MECS, the Ministry of Finance,

6 and the National Statistical Office). The restructuring facilitated working relationships and enabled the committee to provide rapid and substantial advice and guidance to the PIU. D. Procurement, Construction, and Scheduling

22. According to the PCR (para. 57), goods and related services were procured from loan funds in accordance with ADBs Guidelines for Procurement (2006, as amended from time to time). Procurement of civil works, equipment, and materials was undertaken as appraised. The 47 civil works contracts, as well as textbooks and instructional materials, were procured using local competitive bidding. Direct purchase was used to procure some books and equipment for libraries. No major problems occurred with bidding procedures or contracts. 23. The performance of the contractors and suppliers for civil works and equipment provision was reported as generally satisfactory. All contracts were successfully completed or delivered on schedule and within budget. As observed by the OEM during its field visits (Appendix 1), with some exceptions, the quality of rehabilitated secondary school buildings, science laboratories, and the university libraries was generally good. 24. The program loan was to be implemented over 3 years with an expected closing date of 30 September 2000. The first tranche was released upon loan effectiveness, and the second tranche in October 1998. The investment project was to be implemented over 5 years with physical completion expected by 31 March 2002 and loan closing by 30 September 2002. Project implementation activities commenced and were completed as planned at appraisal. The program loan was closed on 2 December 1999, the project loan on 8 November 2002, and the associated TA project on 31 August 2001. E. Design Changes

25. Some significant changes to targets occurred during implementation. The ESDP intended to rehabilitate 20 schools, but a total of 88 schools in Ulaanbaatar and in 17 provincial centers were renovated or partially renovated. Priority was given to major problems such as leaking roofs and dysfunctional heating, which made schools inoperable. In the case of training, ESDP planned to train 3,854 teachers and staff, but actually trained 21,282. F. Outputs 1. Policy Reforms

26. A total of 43 policy measures in eight policy areas were included in the policy matrix. Fourteen of the policy measures were accomplished prior to loan effectiveness, 11 were complied with prior to the release of second tranche, and the remaining 18 were implemented during the program period. The compliance status of these program measures is outlined in Appendix 3. The associated TA assisted the Government in achieving the program conditionalities, as well as strengthening the institutional capacity of MECS. 27. The policy measures supported by the ESDP were designed to restore fiscal viability in the education sector by rationalizing structures and facilities, reducing staff, and promoting cost recovery and private sector provision of education services. The key outputs achieved by the ESDP are as follows:

7 28. Reorganizing and Strengthening Education Management Capabilities. In 1996, the Government successfully carried out the following phased steps in reorganizing the sector: (i) redefining the roles and responsibilities of MECS and local governments; (ii) formulating and implementing a comprehensive reorganization plan; (iii) assessing the existing capacities of MECS and local governments in administration, finance, and management; and (iv) preparing a capacity building program based on the training needs assessment funded by the ESDP. Consequently, MECS was established as the central state administrative body that (i) formulates national educational policy and sets the standards for each level of formal education; and (ii) administers general provisions on education matters, teacher training, curriculum development, and state examination procedures. 29. Rationalizing Education Sector Facilities. A systematic restructuring of education institutions was undertaken under the ESDP to address the significant underutilization of school capacity, and the excess number of schools and/or inappropriate grade mix. A nationwide school mapping study was completed in April 1997 and a plan was prepared for comprehensive school rationalization. Of 171 schools identified for restructuring, 136 (80%) were restructured by August 1998 (second tranche condition of the program loan) and 35 (20%) were restructured by June 2002. The rationalization reduced students commuting time to schools, contributed to improved gross enrolment rates at all levels and reduced dropout rates, and increased the percentage of cohorts reaching the upper grades. Another major output was the development of complex schools, a rationalization initiative bringing several adjacent neighborhood schools under common management (see para. 69). 30. Rationalizing Education Sector Staffing. A legacy of the former Soviet Union, the ratios of teachers to students and non-teaching staff to teaching staff were extremely high and financially unsustainable. With the assistance of ADB-funded TA, 8 the Government prepared a staff rationalization plan for implementation under the ESDP. The plan anticipated 8,100 surplus staff would be eliminated during the program period: 4,200 would be declared redundant and be provided with a compensation package, counseling, retraining, and outplacement services, and 3,900 would be eliminated through attrition. The actual number of staff reduced under the ESDP was 8,140, of which 5,000 staff became redundant, and 3,140 were reduced through attrition. The socioeconomic impact of the staff rationalization is discussed in paras. 8182 and in Appendix 4. 31. Introducing Cost-Sharing in Secondary Education Textbook Publishing and Decentralization of Textbook Distribution. As set out in Ministerial Decree 161 of May 2000 (Guidelines for Textbooks for Primary and Secondary Education), the Government introduced a textbook system under which parents pay MNT150 per year to borrow textbooks for a specific subject, which are then returned at the end of the academic year. The policy also created a role for the private sector in publishing textbooks and distributing primary and secondary school textbooks. Private printing companies were selected for textbook publishing through local competitive bidding. Significant improvements were achieved in textbook design, durability, and printing technologies. Local education authorities began using private courier companies to deliver textbooks to schools, which considerably reduced shipping costs. During visits by the OEM to 21 rural and urban schools, teachers expressed satisfaction with this component. Private sector textbook publishing is now well established, and apparently competitive, and schools have a choice of textbooks and teaching manuals.

ADB. 1996. Technical Assistance to Mongolia for the Restructuring and Staff Rationalization Project. Manila.

8 32. Under the ESDP (and the Second Education Development Project) 9 schools bought sets of text books and rented them to students. Many of these older class sets were observed in usable condition in the (still meager) school libraries, which attests to the improved quality of textbooks. In 2006, the Government introduced full cost-recovery policies under which student must buy their own sets of textbooks. Each school receives textbook subsidies for students from poor families, but most school directors and managers interviewed noted that the prescribed textbooks are expensive, with a full set for a secondary student costing $30$40, so many students still lack a full set of textbooks. It is likely a market for secondhand books will eventually develop. In some schools, partial cost recovery is achieved by selling textbooks to well-off parents in parallel with renting textbook to disadvantaged families. 33. Focus groups were held with students in a sample of 16 rural and urban schools, including three rural and three Ulaanbaatar schools in disadvantaged areas (Appendix 5). The main concern expressed was the availability of textbooks and the performance of school libraries. Formerly, under the ESDPs textbook component, all textbooks were rented to students by school libraries, at a cost of MNT50 per year. High school students are presently required to have 16 textbooks, including 710 newly published books per academic year. From 2006, students have been required to buy the new textbooks, although some schools still rent the old ones. 34. The study found that classes with 3040 students, in both rural and urban schools, are required to have an average of 56 textbooks per subject. In one complex school, a grade 11 class of 48 students could rent only one geometry textbook from the school library. Textbooks for geography, English, and literature are in very short supply. Most students buy about three to five textbooks, and share the rest. The average cost of a textbook is MNT3,0003,500, and not all families can afford them. Library services were considered very poor by the students. Some textbooks are not available in rural areas. In two schools, students called their school libraries book stockrooms, because librarians do not allow students to use the libraries. 35. Developing a Policy Framework on Technical Education and Vocational Training (TEVT). A draft policy framework and action plan for TEVT was developed by MECS in March 1998 and subsequently approved by Cabinet Resolution 14. A new TEVT law was enacted in May 2002, which limits the Governments role in TEVT and encourages private industries and businesses to participate in TEVT through measures that include training programs and promotion of internship programs. Implementation of this policy in a manner that will improve the quality of secondary and tertiary TEVT is beyond the scope of the ESDP, but is a priority in the Third Education Development Project. 10 36. Promoting Private Sector Provision of Education and Privatization of Higher Education. This policy component included setting out a legal and regulatory framework to remove obstacles to the establishment of private schools and the privatization of selected state universities. Guidelines for private provision of higher education were prepared and a resolution on privatization and reform was enacted in July 2002, identifying six universities and other academic institutions for privatization. The OEM visited two private schools in small towns and both demonstrated that parents who can afford the choice place highest priority on the quality of
9

ADB. 2002. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to Mongolia for the Second Education Development Project. Manila (Loan 1908-MON(SF), for $14 million, approved on 6 August 2002). 10 ADB. 2006. Report and Recommendation of the President to the Board of Directors on a Proposed Loan and Technical Assistance Grant to Mongolia for the Third Education Development Project. Manila (Loan 2238MON[SF], for $13 million, approved on 21 June 2006).

9 attention to their children (e.g., low teacher-pupil ratios, more contact hours per student, and extracurricular activities). The two schools were not superior to the state schools in terms of their buildings and facilities; in fact, one was decidedly inferior to the nearby government school in this respect. However, this school offered low teacher-pupil ratios for grades 111, as well as extra teaching hours on core subjects. In contrast, the nearby complex school taught all grades in two shifts. The second private school visited only offered grades 14, but had a low teacherpupil ratio and offered extra curricular activities in the afternoons. In contrast, the nearby (nonprogram) state primary school taught children in three shifts. 37. Promoting the Development and Use of Selected Quality Assurance Mechanisms for Higher Education. The structure, mandate, and legal and regulatory framework for an independent accreditation body for higher education was prepared and approved by Parliament (Resolution 240). The National Accreditation Agency was established in 1998, and later became the National Council for Higher Education Accreditation in 1999. Its two key functions are (i) to examine the quality of education programs and physical infrastructure at higher education institutions, and (ii) to assist institutions (through provision of consulting services) if the institutions fail to meet the required standards. By 2006, the council had accredited most state higher education institutions and 28 private universities. Only those institutions that have passed the accreditation process are eligible to receive government financial support. The training of the accreditation agency staff was carried out under the investment component (para. 40), after which they successfully developed their accreditation skills through work experience. The National Council for Higher Education Accreditation receives consulting fees to ensure its financial independence from MECS; however, at evaluation, it was still not fully independent from MECS. 38. Promoting Performance Management in the Education Sector. With the assistance of consultants provided under the associated TA project, the education management information system was designed based on field tests and tryouts. Twenty-one indicators for data collection were developed and tested at the aimag level. All the necessary hardware and software were procured under the investment component (para. 45). Training of staff on the information system was also carried out under the investment component (para. 40). At program completion, education management information system equipment had been accepted by 90% of schools targeted for it. 2. Investment Project

39. The associated TA assisted the Government in undertaking the reforms stipulated under the policy component, while the investment project assisted in developing the efficiency, quality, and relevance of the sector, and increasing its responsiveness to market economy needs. Key outputs of the project were capacity development, rehabilitation of schools, and provision of instructional materials and equipment. The details of the investment project achievements against the targets set out at appraisal are provided in Appendix 6 and summarized below. 40. Staff Development. A substantial amount of training was provided under the investment project to support the fundamental restructuring and reorientation needed in the education sector. Areas of study included (i) higher education management, academic networks, libraries, publishing, and consultancy training; (ii) curriculum and course development; (iii) textbook development; and (iv) teacher training methods. Table 1 shows achievements against targets. Training programs (detailed in Appendix 7) were organized nationwide in the following areas: (i) education management, (ii) higher education accreditation, (iii) academic network and library services, (iv) faculty retraining, (v) publishing management, and (vi) in-service and pre-service

10 teacher training. The courses were significantly shorter than those originally planned, but overall the results appear efficient, according to interviews with school managers. Students surveyed were generally satisfied with science and information technology teaching, but some expressed the opinion that teacher performance was poor (para. 47). Table 1: Summary of Staff Development Funded by the Investment Project
Number of Staff Trained Target Item A. Strengthening Education Management Capabilities 1. Support to MECS and Local Government 2. Higher Education Management Subtotal InCountry International Total Actual InCountry International

Total

1,370 300 1,670

1,370 300 1,670

5,269 857 6,126

33

5,302 857 6,159

33

B. Improvement of Quality and Coordination in Higher Education 1. Higher Education Accreditation 50 2. Academic Network and Library 98 Services 3. Curriculum/Course Development 360 4. Academic Staff and Faculty 420 Development Subtotal 928 C. Increasing the Effectiveness and Efficiency of Primary and Secondary Education 1. Development and Supply of New 96 Textbooks 2. Support to Secondary Teacher Training a. In-Service Training of Teachers 1,046 b. Pre-Service Teacher Training 40 c. Teacher Training Methods Subtotal 1,182

6 14 10 30 60

56 112 370 450 988

337 714 1,193 1,505 3,749

15 25 18 111 169

352 739 1,211 1,616 3,918

98

350

350

12 14

1,046 40 12 1,196

10,497 350 11,197 21,072 8 8 210

10,497 350 8 11,205 21,282

Total 3,780 74 3,854 Source: Report and recommendation of the President and project documents.

41. Rehabilitation of School Buildings. The investment project rehabilitated schools, of which most had deteriorated to the point that they were barely functional. At appraisal it was planned to rehabilitate 20 schools, however, the ESDP fully or partly rehabilitated 88 schools, located in Ulaanbaatar and 17 provincial centers; the investment project funded rehabilitation of 47 schools, with work on the balance (41 schools) funded with local currency counterpart funds generated from the program loan. The investment in school renovation was therefore spread fairly thinly, and the renovations prioritized major problems (e.g., leaking roofs, and dysfunctional heating and plumbing). Greater emphasis was placed on quality under the follow-on project [footnote 9]). 42. The priority under the ESDP of making schools habitable in the short term made good sense in terms of the major deterioration of school facilities at the start of the ESDP and the effect this had on enrolments. School directors and managers had evidently made maximum use of available facilities, despite space constraints, with many offering non-formal education programs for school dropouts and in some cases adult education programs as well.

11 43. Learning environments notably improved in those schools where rehabilitation was undertaken, particularly where heating, sanitation, and appropriate classroom layouts were included. However, toilet and washing facilities are still very inadequate in most schools, including rural schools assisted by the ESDP. In many cases, overcoming the technical challenge of pipes that freeze in winter discourages investment in plumbing, so many schools lack running water and indoor toilets. Parents interviewed expressed concern about hygiene, and some mentioned outbreaks of hepatitis in Ulaanbaatar schools. However, water supply and toilet facilities have been greatly improved in some of the large urban complex schools seen by the OEM that were renovated under the ADB Second Education Development Project. 44. Although the schools seen by the OEM were generally clean and well kept, the state and provincial budget allocation for school maintenance is inadequate, particularly for the majority of school buildings that are in poor condition. Accordingly, the schools must ask parents for annual contributions ranging from $1 to $4 per child, which are beyond the means of the poorest families. 45. Equipment and Instructional Materials for Secondary and Higher Education Institutions. Equipment provided to schools included (i) science equipment (provided to 148 schools and two universities), (ii) 860 computers (provided to 113 provincial and city primary and secondary schools), and (iii) solar batteries (provided to 20 remote schools). In general, all the equipment provided by the ESDP was fully utilized by teachers and students. All the schools visited by the OEM that were assisted by the ESDP (and the Second Education Development Project) had physics, chemistry, and biology teaching equipment, and teachers expressed gratitude and satisfaction with the equipment, which was very well cared for. Library improvements and teaching equipment were also observed at the National Pedagogical University. 46. Science laboratories at the National University of Mongolia and National Pedagogical University were rehabilitated and re-equipped. Equipment was also provided to in-service teacher training centers established at the Teacher Training College, National Pedagogical University, and in the Education Research Institute, as well as to education and culture centers in 22 cities and provinces. Model textbooks were provided for grades 810. The capacity of textbook editors, publishers, and administrators was expanded through training programs in textbook writing, publishing, and management. Workshops on new textbook content and teaching methods were organized for more than 300 teachers. A total of 853,000 textbooks based on new curricula and standards, and including 29 titles and teachers guides, were printed and distributed to schools nationwide. 47. Focus groups with students aimed to find out to what extent the equipment supplied by the ESDP for science teaching is being used by students, and whether they have adequate access to text books (Appendix 5). Students in Ulaanbaatar schools gave a lower assessment than students from schools in smaller town. Of focus groups in 10 schools, 3 rated science and information technology teaching overall as very good, 2 rated them as good, while 4 rated them as satisfactory. With regard to science teaching resources, students in Ulaanbaatar rarely usedor observed the use ofscience experimental teaching equipment and materials, while the highest use was reported in one of the schools in rural Bulgan. In another school in Bulgan, the chemistry class rated the teaching as excellent, despite the fact that no experiments had been demonstrated. It was found that this school had no supplies for organic chemistry and no safe chemical storage facilities (a common problem). Overall, more experiments were

12 conducted in rural than in urban schools, despite the lack of access to running water in most rural schools. 11 48. The OEM also interviewed parents of high school students in Darhan and Erdenet cities, and Selenge district (Appendix 8). Overall, parents said that while the school curriculum has broadened, it has become more difficult, so that they are not able to help primary and secondary school children do their homework. Many questioned whether the curriculum and quality of teaching has improved, however. The highest approval ratings were recorded in rural Bulgan district. Other issues of parental concern were shortage of textbooks, the quality of new textbooks, performance of school libraries, and the poor etiquette of students. 49. All the secondary schools visited by the OEM had computers for student use, and a few had many computers and internet access as well. Training in computer applications is mainly limited to the use of the Microsoft Office package. Some schools taught programming to senior classes as well. The ESDP laid the foundations for computer education in schools, and the Second Education Development Project provided additional sets of computers, but the full potential of computers in education has yet to be realized in pre-service and in-service teacher training, and as an educational tool at all levels of the education system. 50. According to the 2002 report of the joint MECS, Education Inspection Board and Education Research Institute monitoring and evaluation teams, 78% of survey respondents found students were not satisfied with the capacity of the computers in use. Similarly, the OEM focus group study found that students think school computers do not meet their needs and wish they had powerful computers in good working condition and had access to the Internet. Common complaints were that not all computers work, many crash repeatedly, and mouse devices often do not work properly. Because computers are so slow, students cannot learn much in the allocated 40 minutes per class. In one complex school, students who are not achieving as well as others are not allowed to use computers at all. 51. Despite these weaknesses (which will be addressed under the Third Education Development Project), laboratory equipment and teaching aids, library resources, classroom furniture, and computers provided under the ESDP have been carefully looked after, with teachers keeping detailed records of the use of equipment. The ESDP computers are now somewhat obsolete and there are no parts available to repair those that have become dysfunctional. However, most of the old computers are still in regular use and in some cases the inoperable ones have been disassembled to demonstrate the parts of a computer for teacher information technology education, while others are displayed in primary schools to familiarize students with the names of the computer partskeyboard, monitor, and so on. The Second Education Development Project has provided new computers to project schools; these are in use, together with the older models. In those schools with Internet connections, both teachers and senior high
11

While the visit by the OEM did not reveal these issues, the focus group discussion on student use of science equipment (Appendix 5) revealed that teachers referred to drawbacks with the materials and equipment received through the ESDP. The equipment and materials were supplied by an Indian company, selected by tender in 1999. In the opinion of the teachers, despite their high cost, the quality and durability of some equipment supplied by the company is much poorer than the equivalent Russian and German-made equipment. For instance, after three or four experiments, springs in dynamometers ceased to function properly (their diameter is 7 centimeters, 16 centimeters less than the Russian dynamometers, and is consequently not visible to classroom students). Similarly, the processes demonstrated in the new apparatus for water distillation could not be observed in the classroom because the apparatus was made of white plastic materials. Furthermore, it was hard to measure the width of the color spectrum using new spectroscopes. A physics desk without a panel for experiments was provided to Amgalan complex school. Equipment and utensils lacking some parts are not uncommon. Moreover, some schools have an excess of certain materials and tools while others lack them.

13 school students have access. The OEM noted the as yet unrealized potential of the Internet for cost-effective in-service teacher training and curriculum development, and this is highlighted and addressed in the Third Education Development Project. G. Consultants

52. At appraisal, the ESDP included provision for 42 person-months of international and 120 person-months of national consulting services for project management, curriculum development and course design in higher education, faculty and staff training, higher education accreditation, masters of business administration programs, management consultancy, educational administration, pre-service teacher training, and in-service teacher training. Actual utilization was a total of 139 person-months of consulting services comprising 38 person-months of international consultants and 101 person-months of national consultants (Table 2). As noted in the PCR, the consultants were recruited and contracted according to ADBs Guidelines on the Use of Consultants (2006, as amended from time to time). Table 2: Estimated and Actual Consulting Services Provided by the Project
Person-Months Appraisal Expertise International Local 1. Project Management 18 0 2. Academic Network 24 3. Higher Education: Curriculum Development, 6 18 Course Design, and Faculty Training 4. Higher Education Accreditation 5. Higher Education: Development and Implementation of Masters in Business Administration 6. Management Consultancy Training 7. Education Administration Studies (Development of a Masters in Education Administration Program) 8. Pre-Service Teacher Training Methodology 9. In-Service Training Total 3 3 24 24 Actual International International 17.0 0.0 0.3 21.2 5.8 18.1 2.5 3.0 22.1 11.1

3 3

6 12

2.4 2.3

6.1 11.1

3 3 42

6 6 120

2.7 2.6 38.6

6.0 6.0 101.7

Source: Report and recommendation of the President and project documents.

53. Based on the review of documents and interviews with various stakeholders, both international and national consultants performed satisfactorily. Senior officials of the MECS at both national and provincial levels, and senior staff of higher institutions as well as the Vice Minister of MECS expressed their satisfaction to the OEM. The PIU and MECS were unfamiliar with ADBs operational procedures and guidelines, and the services of the project management consultant who assisted in successfully implementing the ESDP were noted in particular. Many counterpart staff in the PIU and at MECS benefited form the transfer of knowledge and management skills from the international consultant. The international consultants for training activities, supported by the national consultants, produced many reports and working documents that were translated into the Mongolian language and distributed to relevant agencies. Recommendations made by consultants were successfully implemented in many areas such as higher education accreditation, library management, educational administration, and commercial management consultancy services.

14 H. Loan Covenants

54. Compliance with the major program and project loan covenants was generally satisfactory. Audited project accounts and quarterly progress reports were submitted to ADB on time. The benefit monitoring and evaluation system as covenanted was established, although delayed. A benefit monitoring and evaluation report was submitted to ADB in January 2003 (see findings in paras. 50 and 81). I. Policy Framework

55. ESDP policy frameworks were formulated when the education sector was in crisis and there was considerable political will for reform. The ESDP provided sound policy directions with regard to primary and secondary education; key elementssuch as the reorganization of schools into larger and more efficient institutionshave survived and gained wide support despite frequent changes of government. 56. Most of the ESDP policy objectives were sound. But while the policy for retrenchment of non-teaching staff was effective and necessary, the teacher retrenchment policy (which has been controversial since its formulation), was not as effective as intended, because other ESDP reforms and investments encouraged a rapid increase in enrollment; large numbers of retrenched teachers were rehired, but at the same time, incentives were provided that encouraged some of the most capable teachers and managers to leave the service. 57. Some policy directions under the ESDP have become subject to conflicts of interest within the sector. For example, efforts to implement reform policies, especially in higher education, have been challenged by inconsistent application. Although the need to reform higher education was widely acknowledged during formulation, and continues to be acknowledged to the present day, policy measures for cooperation, coordination, and privatization did not produce the hoped-for increase in resource rationalization and qualitybased competition, because the application of state policies has not adequately supported these objectives. Senior education officials committed to the ESDP policy foundations have had to operate in a challenging environment, in which policy is frequently ignored by successive governments at both national and provincial level. III. A. Overall Assessment PERFORMANCE ASSESSMENT

58. The ESDP is rated highly successful overall (Table 3), confirming the PCR rating. Access to education, gross enrollment rates, and retention rates have greatly improved, as have achievement levels in primary and secondary education and teacher training. The Second Education Development Project and the Third Education Development Project have built on the foundation established by the ESDP and have addressed the lessons that emerged from it. The MECS second education master plan aims to apply principles and objectives originally articulated in the first education master plan, with improved donor coordination and application of a sectorwide approach with ADB leadership. Senior officials of the MECS at both national and provincial levels and the Vice Minister of MECS expressed satisfaction to the OEM with the outcomes of the ESDP.

15 Table 3: Assessment of ESDP Overall Performance Criterion Relevance Effectiveness Efficiency Sustainability Overall Rating Weight (%) 20 30 30 20 Assessment Highly Relevant Highly Effective Highly Efficient Likely Sustainable Highly Successful Rating Value 3 3 3 2 Weighted Rating 0.6 0.9 0.9 0.4 2.8

ESDP = Education Sector Development Program. Source: Evaluation team.

59. The ESDP achieved its objective to reorient the education sector from a state-planned to a market economy system. It accomplished its targets of establishing (i) education development policies appropriate to a market-oriented system, (ii) models for school rationalization, (iii) a new curriculum and associated revision and improved publication arrangements for textbooks, and (iv) in-service and pre-service teacher training. It successfully strengthened institutional capacity in the education sector, including a new structure and management system within MECS, which enabled MECS to fulfill its role as a strategic planning, policy-making, and regulating body. The ESDP also succeeded in upgrading the quality and relevance of educational content at the general secondary levels. Although there were some issues concerning the quality of teaching, use of equipment provided, the distribution, availability and cost of text books, and the effectiveness of library services in many schools, ongoing support by ADB in the sector aims to assist MECS to overcome these problems. Such difficulties are to be expected, given the magnitude of problems to be overcome, the extent of the reforms, and the challenging conditions of transition. As pre-service and in-service teacher training improves, it is likely that these problems will gradually be resolved, particularly with the growing interest and participation of parents in school management. 60. The success of the ESDP is most clearly demonstrated by Mongolias selection for the Education for All Fast Track Initiative Partnership, which constitutes the first global compact on education, and which seeks to assist low-income countries to achieve free, universal basic education by 2015. This compact includes coordinated financial and technical support provided in a transparent and predictable manner, coupled with a promise from developing countries to put primary education at the forefront of their domestic agenda. As a member of the partnership, Mongolia is now eligible to receive a grant from Fast Track Initiative donors to cover a funding gap in the education budget from 2007 to 2009. This will enable the implementation of the second education sector master plan, developed in-country and recently approved by Mongolias parliament. 61. The program performance evaluation report rates both the program loan and project loan highly successful (Appendix 9), as detailed below. B. Relevance

62. The ESDP was highly relevant in its policy formulation and outputs. The change of modality from project to sector development program was appropriate because it enabled ADB to propose and support a broad set of generally sound and practical policy reforms. The ESDP addressed the pressing needsupported by government policy and ADBs country strategyto restore education to pre-transition levels, while transforming the education system from a centrally planned model to a more flexible and efficient system for a market economy. The reorganization of MECS at national and provincial levels, the devolution of management

16 decision-making to schools, and the establishment of new and effective models of school management supported the rapid achievement of most ESDP objectives. 63. The staff rationalization policy was highly relevant at the time of formulation and it was successfully implemented. However, while the policy of reducing non-teaching staff was highly relevant, the policy with regard to the retrenchment of teaching staff proved to be less relevant at evaluation. Some senior staff of MECS were of the view that the retrenchment of teachers was unnecessary; it offered an incentive to the most capable and experienced staff to leave, thereby depriving state schools of many good teachers. In addition, according to a group of teachers who did not participate in the redundancy program, retrenchments were mainly unnecessary because the demand for teacher rose as school conditions were restored or improved. Nonetheless, the demographic changes that led to a rapid increase in urban enrollments and increased the demand for teachers could not have been predicted during ESDP formulation, when prevailing conditions were very different. 64. Investment components were highly relevant in their overall aim of restoring 88 schools to operable condition, establishing model schools, revising and developing the curriculum at all levels of the education system, with associated outputs for in-service training, equipment, and textbook production, publication, and distribution. In higher education, in-service training and scholarships were well targeted, with emphasis on postgraduate management training. C. Effectiveness

65. The ESDP is rated highly effective. It accomplished all its policy objectives, following the preparation of the first master plan addressing sector-wide management strengthening, rationalization of facilities, rationalization of staffing, improvement of text book publication costsharing, TEVT policy development, private sector participation, an accreditation system and an education information management system. It thus laid the foundations for a more efficient education system. It contributed significantly to increasing gross enrollment ratios to close to pretransition levels. Policies that were particularly effective include establishment of the National Council for Higher Education Accreditation and the legalization of private education. 66. The ESDP successfully achieved its first expected outcome of improving educational management capability appropriate to a market economy system. As a result of the ESDP, significant changes in educational administration and management took place. MECS was reorganized into a policy-making body, while educational management functions were decentralized from MECS to provincial governments. The positive results of the reorganization were evident during OEM visits to project schools; the OEM noted the quality of provincial education sector management in Selenge and Ovorhangay, and particularly in Orhon and Darhan-Uul, where the provincial directors are active leaders of innovative in-service training and distance education programs to improve the quality of education and school management. Teacher and education officials noted the major improvement in standards of education inspection. The OEM was impressed by the commitment and enthusiasm of directors, managers, and teachers at all 20 schools visited, and by the pride these schools took in their many achievements. 67. As a result of decentralization, school management may now reward staff as it deems appropriate, and pay teachers and managers on performance-based criteria. 12 Also, the transfer
12

Performance assessment appears to be heavily oriented toward achievement in subject-based student and teacher competitions at town, provincial, and national levels. Each school proudly displays a case of cups, medals, and

17 of authority for certain parts of curricula enabled school management to make the curricula more flexible and pragmatic. Managers are free to seek private sector sponsorship and also to request voluntary donations from parents to support budget shortfalls. While some parents cannot or will not contribute, school management now has strong incentives to encourage parents to participate in school management, to foster community participation in schools, and to be more accountable to parents. 13 68. The training programs on education management contributed significantly to developing the capacity of education staff to (i) monitor and evaluate educational achievements; (ii) establish and manage a library network, which initially linked 12 higher education institutions and subsequently expanded to cover more than 70 universities, colleges, and other academic institutions and some senior secondary schools; and (iii) establish and manage new masters degree courses in various administrative specializations along with new curricula, courses, and faculty training. Since their inception, enrollment in newly established masters degree courses has been increasing. Training programs on accreditation were similarly successful, as the National Council for Higher Education Accreditation has been effective in assessing the quality and level of curricula, facilities, teaching staff, and management capacity of higher education institutions. Teacher training was considered highly effective. Students surveyed were generally satisfied with science and information technology teaching, though some expressed the opinion that teacher performance was inadequate. 69. The ESDP was successful in achieving its second outcome of improving the efficiency and effectiveness of the education system by rationalizing educational structure and facilities, reducing surplus staff, equipping schools, and promoting private sector provision of education services. The ESDP successfully demonstrated the complex school model, a rationalization initiative that consolidated the management of several adjacent neighborhood schools. This effectively maximized the use of buildings and facilities, and organized teachers into collaborative, subjectbased departments. Complex schools were provided with essential renovation, and equipped with information technology and science teaching aids. In areas where schools were more widely dispersed, they remained under independent management but were linked in networks of subject teachers associated with regional central schools. While the reform was initially unpopular 14 (and is still rejected by some provincial governments) the complex model has won widespread acceptance in MECS. The model is now considered by educationalists as a blueprint for the development of future primary and secondary education services in urban areas. 70. The staff rationalization program has contributed to improving the quality and efficiency of education. The average qualifications of teachers increased and teacher-pupil and teachernonteacher ratios increased as well. In addition, the program has contributed to increased teacher salaries.

certificates, attesting to the achievements of staff and students. Some education officials believe the number of competitions is excessive and preparation for these takes up too much time. Concern was expressed that overall education quality may be overlooked in the quest for individual awards. 13 It is widely perceived that in Mongolia teachers are susceptible to corruption, and accept bribes to give pupils good grades. One provincial education director told the OEM that while it was culturally acceptable for parents to reward teachers when their children did well, it was not acceptable for them to pay for unearned higher marks. However, he admitted that this practice may occur. 14 The initial unpopularity of the model was because the rationalization of buildings and classrooms broke up cohorts of students and teachers with strong community identities.

18 71. The policy adopted under the ESDP of allowing the development of private primary and secondary schools has encouraged educational diversity and choice in Mongolia. Following implementation of these guidelines, the number of private schools increased from two in 1996 to 124 in 20042005, covering 17% of total general education schools. From 2000 to 2005, private schools grew at a rate of 13% per annum. Private higher education institutions increased from 41 in 1995 to 127 in 2005. The share of enrollment from private higher education institutions grew from 22% in 1995 to 32% in 2005. Similarly, privatization of textbook publishing resulted in improvement of the content, methodology, quality, and appearance of textbooks. 72. Overall, the ESDP created an enabling environment that led to significant improvements in education indicators, as shown in Table 4. Enrollment at all levels, which plummeted during the economic crisis, rebounded and increased considerably from 1996 to 2005. The most rapid growth in enrolment was experienced in higher education, which had more than doubled over the last 10 years. There was a significant enrollment increase in grades 58, indicating a consistent increase in survival rate in grade 5. Teacher-student ratios at all levels of general education increased, while dropout rates declined from 3.5% in 1996 to 2% in 2005. In addition, the student population per school and the number of students per class in general education rose. Annual trends in basic education indicators from 1996 to 2005 are provided in Appendix 10. Table 4: Improvements in Basic Education Indicators
Item 19961997 20002001 20042005 A. Kindergarten 1. Number of Nursery Schools 667 653 696 2. Number of Children 67,972 79,294 82,674 3. Number of Teachers/Nurses 2,998 3,056 3,424 4. Teacher-Child Ratio 22.7 25.9 24.1 B. General Education 1. Total Number of General Education Schools (GES) 658 683 710 i. Of Which Private Schools 2 77 124 ii. Percent of Total 0 11 17 2. Number of Students 418,293 494,544 546,844 3. Average Number of Students/School 636 724 770 4. Average Number of Students/Class 29.5 31.7 32.5 5. Number of GES Teachers 20,090 19,223 21,458 6. Teachers with a Higher Education Degree (%) 88 92 92 7. Teacher-Student Ratio 20.8 25.7 25.5 8. Dropouts (%) 3.5 2.8 2.0 9. Primary Education Gross Enrollment Ratio (%) 95.3 96.6 102.4 10. Basic Education (Grades 18) Gross Enrollment Ratio (%) 82.4 88.6 97.6 C. Vocational Education 1. Number of Vocational and Specialized Secondary Schools 33 36 35 2. Number of Students 11,308 12,177 21,911 3. Number of Teachers 767 865 1,160 4. Teacher-Student Ratio 14.7 14.1 18.9 D. Higher Education 1. Number of Public Higher Education Institutions 29 38 49 2. Number of Students 31,191 56,906 84,041 3. Number of Teachers 2,683 3,455 4,187 4. Teacher-Student Ratio 11.6 16.5 20.1 5. Number of Private Higher Education Institution 51 134 129 6. Number of Students 11,861 28,064 39,783 7. Number of Teachers 522 1,455 2,122 8. Teacher-Student Ratio 22.7 19.3 18.7 Sources: Mongolian Statistical Yearbook, 1999, 2002, 2005; MECS through the Education Finance Team.

19 D. Efficiency

73. The ESDP is rated highly efficient. The ESDP was completed on schedule despite the fact that (i) it was the first sector development program and (ii) in relation to the resources provided the scope was extensive and very challenging to implement. The intervention was timely as it arrested further deterioration in the education sector. Increasing school habitability by focusing on major problemssuch as leaking roofs and dysfunctional heatingallowed available funds to cover 88 schools instead of 20, and was cost effective. The resources used for procurement of equipment (e.g., 150 sets of science equipment, 20 solar batteries provided to soums and bags, and 860 computers, of which 663 were distributed in 98 aimag schools and 197 in Ulaanbaatar) were well spent. After 8 years, most of this equipment was fully utilized and in good condition. 74. The most cost-effective ESDP intervention is the establishment of model complex schools, which bring three levels of general education together in one school complex and under consolidated management. So-called network (inter-soum) schools increased efficiency by overcoming fragmentation of education services and maximizing resources. This allowed effective rationalization of buildings and organization of age-based classrooms, as well as organization of teachers into collaborative, subject-based departments. About 20% of students and 21% of teachers and school service staff of Ulaanbaatar City are now in complex schools. These schools have generally responsive and efficient management and better facilities and equipment than most other schools. The model is now considered by educationalists in Mongolia as a blueprint for the development of primary and secondary education services in urban areas. 75. To illustrate this point, Table 5 compares the situation before and after establishment of the first complex school (in 1997). Seven neighborhood schools (six of which offered 10-year programs), were reorganized into eight primary, secondary, and senior secondary schools under consolidated management. In 2006, the school had 10,600 students in 303 grade-classes (in grades 111). It employs 430 teachers and 113 service staff with a ratio of teaching to nonteaching staff of 80:20. Table 5: Comparison of Job Changes and Salaries Before and After Establishment of the Ireedui Complex School
Before Amalgamation Number of Total Salaries Number of Persons Persons Positions (MNT000s) Director 6 744 8 School Manager 18 1,800 14 Accountant 7 560 4 Carpenter 6 450 2 Electrician 6 450 2 Mechanic 21 1,680 10 Coat Room Worker 14 980 0 Total 78 6,664 40 Source: Director, Ireedui Complex School, Ulaanbaatar, November 2006. Under New Structure Differences In Salaries Salary Amount (MNT000s) (MNT000s) 992 248 1,400 (400) 320 (240) 150 (300) 150 (300) 800 (880) 0 (980) 3,812 (2,852)

76. The training component was highly efficient. Originally, the ESDP planned to train 1,086 teachers; 10,487 teachers were actually trained by using a training of trainers approach, which was adopted because of distance and transportation problems. Experienced subject teachers from the provinces were selected for training in new curricula and methodology in the center and then returned to train others in their provinces.

20 E. Sustainability

77. The policies and investments under the ESDP are rated likely to be sustainable. The reforms were intended to serve as a starting point for transforming the education system, and the investments were intended to establish models for future development, as well as to restore functionality to the schools that were renovated and reequipped. At evaluation, further improvements had been made to the reforms introduced 10 years ago, signifying the Governments commitment to an effective and efficient education system. These include, among others (i) transforming primary and secondary schools into an 11-year system, with the objective of having a 12-year system by 2008; (ii) enrolling 7-year olds; and (iii) enforcing new standards for primary and secondary education, to bring the education system closer to world standards. However, the Governments implementation of policies relevant to improvement of TEVT and higher education continue to be inconsistent. 78. Implicit in the design of the ESDP was its support for a long-term process of both restoring and reforming the education sector, which would require ongoing assistance from ADB and other donors before full self-reliance could be achieved. The Second Education Development Project continued the initiatives of the ESDP, and a third ADB education sector project was recently approved (footnote 10), which will emphasize TEVT and teaching methodology. The initiatives of the ESDP have been extended or sustained under the Governments second education master plan. 79. The Government has continued to give priority to investment in education and human resource development. The education sectors share of total general government expenditure has remained consistently high, averaging 22% over 20002005 (Appendix 10). Training for teachers is continuously being provided. On average, about MNT16 million of the state budget is spent on in-service training for teachers. The major threat to sustainability of the investments is that state budgetary allocations for school maintenance are inadequate, and schools must ask parents for annual contributions, which many can not afford. IV. A. Impacts 1. Impacts on Millennium Development Goals OTHER ASSESSMENTS

80. Overall, the OEM concluded that the ESDP had a highly successful sector-wide impact by establishing good foundations for education development. It has made a significant contribution to Mongolias progress towards achieving the Millennium Development Goal (MDG) target for universal primary education, as shown by the indicators in Table 6. Since 2000, the completion rate for both genders has been increasing and reached 96% in 2004. However, the problem of undocumented children who are not being provided with education remains a significant challenge for Mongolias achievement of the MDG target on universal education (paras. 99102). The ESDP also contributed to elimination of gender disparity in education. The female-male ratio in secondary enrollment decreased from 1.2 in 2000 to 1.14 in 2004. The female-male ratio in tertiary education enrollment has declined from 1.72 in 2000 to 1.64 in 2004.

21 Table 6: Progress in Meeting MDG Targets on Universal Primary Education and Elimination of Gender Disparity in Education
Indicator 1. Net Enrolment Ratio in Primary Education 2. Proportion of Children Starting Grade 1 Who Reach Grade 5 3. Literacy Rates of Male And Female Youth, Ages 1525 (%) 4. Gross Primary Enrolment Female-Male Enrolment Ratio 5. Gross Secondary Enrolment Female-Male Enrolment Ratio 6. Female-Male Ratio In Higher Education 1990 89 91 99 1.01 1.12 1.56 2000 91 84 98 1.01 1.20 1.72 2015 100 100 100 1.00 1.00 1.00

MDG = Millennium Development Goal. Source: Millennium Development Goals: National Report on the Status of Implementation in Mongolia, 2004.

2.

Socioeconomic Impact

81. Mitigation of the social impact of the staff rationalization plan was important to the EDSP. According to the 2002 report of the joint monitoring and evaluation teams of MECS, Education Inspection Board, and the Education Research Institute, the redundancy payments were beneficial for 99% of the released staff. The OEM conducted its own tracer study (Appendix 4) of 70 retrenched teachers in Bulgan, Selenge, Orhon provinces and Darhan, Erdenet, and Ulaanbaatar cities. The respondents confirmed that the scale of payments was based on length of service, and ranged from 6 months to a maximum of 36 months net salary. All but five teachers volunteered for redundancy, 15 and those with long service were the most likely to accept the option. About 47% of respondents said they hoped to earn higher incomes in businesses, but few were successful in this. The remainder accepted because they needed money for some pressing purpose. Two teachers left in order to teach in remote rural schools. About 39% said their lives improved, 26% said that their lives became worse, and 22% said it made little difference. 82. Half of the retrenched teachers interviewed returned to teaching at their previous or other schools (after 2 or 3 years), but some said they faced difficulties in regaining their teaching positions and lost pension benefits for the years out of service. Only 5 out of 70 said that they were provided counseling services and training (provided for in the ESDP design), which covered social insurance, cultivation of vegetables, and opportunities in undeveloped sectors in Mongolia. 83. The OEM also interviewed 30 rural and urban teachers who declined retrenchment. They said some schools in the center of Ulaanbaatar have now raised teachers salaries by up to 30%. Teachers in other schools said that they salary increases had not been implemented in their schools. B. Asian Development Bank Performance

84. ADBs performance is rated highly satisfactory. The documentation shows that supervision of the ESDP was conducted to the highest standards. Low staff turnover helped maintain the quality of supervision throughout the program period. Also, the staff who administered the ESDP had extensive experience and knowledge of the country. ADB conducted eight review missions to help the PIU resolve implementation issues. It closely monitored the implementation of the program loan, the project loan, and the associated TA project; reviewed reports carefully; and provided timely advice and guidance.
15

The five teachers were asked to take redundancy by education managers.

22 C. Borrower Performance

85. The PIU and its director, who stayed throughout the program implementation, performed particularly well. The PIU managed the very large number of project outputs for school renovation, distribution of equipment, curriculum development, teacher and management training, redundancy and many other outputs in an efficient and timely manner. It kept excellent records. In particular, the PIU director was an enthusiastic and effective advocate for the ESDP (and the Second Education Development Project). Despite frequent changes of government and inconsistent application of policy, the PIU director energetically promoted organizational and management reform in the sector, and in particular used the model complex schools to demonstrate the effectiveness and efficiency of ESDP reforms, and to persuade skeptics and critics in national and provincial government of the benefits of reform. The PIU also conducted a very impressive public relations program to promote the ESDP. Overall, the performance of the Borrower and MECS were also highly satisfactory. D. Technical Assistance on Institutional Strengthening of the Education Sector (TA 2716-MON)

86. Based on the quality of the TA project reports, and the comments of those government officials and educators who worked with the consultants, TA was of a high standard. The TA project was highly relevant and highly effective in developing the capacity of MECS and in supporting policy reforms to restructure education sector under the ESDP. MECS staff had made full use of TA project outputs in policy formulation. The TA project was also successful in establishing an education management information system and benefit monitoring and evaluation system. The TA project was highly efficient in the delivery of outputs, which were timely and in line with the ESDP implementation schedule. The TA project outcomes were rated as likely sustainable; the longer-term recommendations on further improvement of education management were considered by successive ADB-funded education projects. Overall, the TA project is assessed as highly successful, thus confirming the TA project completion report rating. V. A. Issues 1. Rural and Urban Education Strategies ISSUES, LESSONS, AND FOLLOW-UP ACTIONS

87. Rural-urban migration is causing rapid urban population growth, which could not have been anticipated in the ESDP. The OEM considers that this trend has less to do with the pull factors of urban services, and more to do with the push factors related to transformation of the pastoral economy (Appendix 11). There are very high levels of poverty and social dislocation associated with the trend. Consensus between donors and the Government and coordination among donors is needed to develop and support distinct and future-oriented urban and rural education strategies. 88. In provincial towns and cities and Ulaanbaatar, where the population and economy are growing and are likely to continue to grow in the long term, ADB might consider giving high priority to funding new, large, durable, and energy efficient schools and boarding dormitory buildings, on the understanding that there will be further consolidation of school management following the complex school model.

23 89. In rural district and subdistricts, ADB may wish to consider cooperation with other donors for investment in programs to provide and maintain distance education technology, teachermanager incentives, and support for mobile services for home-based education at kindergarten and grades 14. This would provide the flexibility needed in a rapidly changing pastoral economy (Appendix 11), and would avoid the psychologically undesirable necessity of sending the children of nomadic herders younger than 9 years of age to boarding schools. Some innovative models were reported to have been piloted in Ulaangom province, involving Kazakh minority herders. 16 2. Education Infrastructure

90. Many if not most school buildings are poorly designed for Mongolias long, harsh winter conditions. It was evident that the Government will need to commit to a major investment in school buildings. There is a shortage of suitable school buildings, particularly in urban and peri-urban areas. Most urban schools, including those in many small towns, must teach in two or three shifts. This situation will continue to have a deleterious effect on the quality of education until an adequate number of school buildings are provided in areas with growing populations. The challenge relating to the inadequate number of school buildings is increasing, as many schools are now expected to admit children 6-years old into grade 1, and all must provide education up to grade 11. Year 12 is to be introduced in 2008, bringing Mongolias education system to international standards. 91. Many school buildings are not worth renovating and need to be replaced. The ESDP addressed an emergency situation by providing for school renovation, but it lacked the scope and resources for major rebuilding of schools. Most existing school buildings are structurally inefficient (as noted in the 2002 Second Education Development Project report and recommendation of the President [footnote 9]), with flat roofs that result in leakage and moisture retention, add to maintenance and heating costs, and reduce the durability of buildings. Improved construction and heating standards must be established, as well as use of alternative energy sources, to ensure that new buildings are designed with maximum structural efficiency and durability. Provision of education infrastructure will give ADB and other education sector donors considerable leverage for establishing school building standards, and promoting transparent contracting arrangements and systems of quality control. The Third Education Development Project will continue to encourage improved donor coordination and harmonization in this regard. 3. Higher Education

92. The implementation of guidelines for private provision of higher education led to a significant increase in private higher education institutions. However, by 2006, a higher education policy had still not been formulated and implemented, and privatization of higher education appears to have made little difference to resolving problems of quality. According to the 2005 Report of Higher Education Study Team for the Second Education Master Plan, 17 there are a total of 184 providers of higher education courses, including 15 foreign providers (Appendix 12). The number of students enrolled in bachelors degree programs at universities, higher educational institutions, and colleges has increased by 70% in the last 5 years. About 62% of all
16

Mongolia's population is ethnically quite homogenous; about 94% of the populace speaks one of several dialects of the Mongol language, but all dialects of Mongol spoken in Mongolia are readily understood by native speakers of the language. Minorities comprise about 6% of the population, mainly Kazakhs in the Ulaangom region, as well as very small numbers of ethnic Chinese and Russians. Davaa, et. al. 2005. Report of Higher Education Study Team for the Second Education Master Plan. Ulaanbaatar.

17

24 students were women (20042005), but the proportion of male students has increased since 2000. 93. The large and rapidly growing number of higher education providers (for a population of around 2.7 million people) suggests that provider incentives need to be reevaluated. Students tuition fees are the major source of income for universities, institutes and colleges, accounting for at least 80% of their income. All higher educational institutions, regardless of their type of ownership, appear to be struggling financially. State institutions are in effect ownerless and although ostensibly autonomous, are subject to government policy that prevents them from raising tuition fees above a certain level. The state provides no support other than grants and loans for students enrolling in accredited institutions. There are also a large number of research institutes, many struggling to survive, and lacking appropriate and productive formal links to institutions of higher education. The demand for post-secondary credentials in poorly funded educational institutions appears to contribute to perceived corruption in the education sector; it is widely believed that parents and students pay for good grades both at senior secondary and tertiary levels. This was a major issue for parents interviewed, who oppose the policy of concealing of grades with the use of codes, which they believe encourages corruption. 94. Institutional cooperation in higher education has been attempted by the ESDP, through training programs in 10 institutions, but structural and policy problems in the higher education subsector continue to impede fruitful cooperation. In 2006 massive duplication of academic programs prevailed, with the supply of tertiary places greatly exceeding the demand, resulting in a concomitant lowering of admission standards, and probably the quality of the certificates, diplomas, and degrees awarded. 95. There is an urgent need to rationalize higher education with the objective of improving quality and academic standards. ADB, perhaps in association with the World Bank, may be able to assist the Government to establish a new national university as a center of excellence (perhaps specializing in disciplines of relevance to national development, or perhaps specializing in postgradate studies), in partnership with a highly-rated foreign university. An academic center of excellence would likely encourage improvement in overall national higher education standards, by providing a benchmark of quality against which other higher education providers can measure themselves. ADB may be able to assist the Government to call for international tenders and advice on appropriate modes of financing such an institution. 4. Technical and Vocational Education and Training

96. Policy development on TEVT was achieved under ESDP. However, the OEM concluded that the national TEVT strategy should consider not only perceptions of labor market demand 18 but also raising the status of TEVT, which the OEM observed appears to be given greatest emphasis in schools serving the poorest neighborhoods. 97. Information communication technology education did not appear to be perceived by educators as a major tool and subject for TEVT. The conceptualization of TEVT (often still referred to as labor studies in Mongolia) is still very old fashioned. Most secondary TEVT programs suffer from lack of modern equipment and materials for sewing, carpentry, metal work, art and design, and other subjects with vocational applications. The programs also maintain old-fashioned gender specialization (soft materials for girls, hard materials for boys).
18

The labor market is fairly narrow in Mongolia and complicated by high wage expectations and the 9 months of the year where the temperature falls below zero (which reduces the demand for labor).

25 Hundreds of vocational subjects are taught more or less randomly in secondary schools depending on the knowledge of the teachers, rather than because they may lead to employment. 19 98. It is possible that Mongolia would benefit from establishing targeted pilot apprenticeship programs in construction- and tourism-related trades, in a manner designed to provide incentives to both secondary school graduates and employers. Following the Third Education Development Project, when Mongolia is applying appropriate in-country policy for TEVT, ADB could support construction of modern training centers, under consolidated management with links to the private sector. Senior officials in MECS expressed some reservations about taking advice from consultants on specific foreign models. Accordingly, under the Third Education Development Project, ADB and its partner the Deutsche Gesellschaft fr Technische Zusammenarbeit 20 (GTZ) may wish to consider providing opportunities for Mongolian experts in vocational technical education, as well as for education policy decision makers, to visit Australia, the Peoples Republic of China, Germany, the Republic of Korea, and New Zealand to compare skilled trades training and other TEVT models that may to assist in developing an appropriate model for Mongolia. 21 5. Non-Formal Education

99. Although the ESDP helped to substantially increase school enrolment, a significant minority of children are still not being served by the state education system. Mongolia is experiencing two major socially disruptive transitions, from a centrally planned to a market economic system, and from a rural to an urban way of life. Both transitions are causing widespread dislocation of norms and values with many undesirable social consequences including poverty, alcoholism, family breakdown, and the abuse and neglect of children. 22 100. Official statistics show that 68,000 children aged 815 years were out of school in 2000. As of 2004, about 13% of children aged 811 years (28,800) dropped out of school and 24% of children aged 815 years (10,876) had never attended school. About 27% of young people who joined the Mongolia Army have only a primary education, and 6% were illiterate. There was no significant gender disparity among the illiterate, but the percentage of 15- to 19-year old illiterate people increased by 2.2% between 1989 and 2000. The main disparity was rural-urban; in 2004, 83% of 8- to 15-year old children (38,212) with no schooling are from rural areas, including both boys and girls. In urban areas children out of school include street children and other severely disadvantaged children. 23 101. In Mongolia, non-formal education is the term used for a package of programs that (i) aim to reintegrate school dropouts into the formal education system, and (ii) provide basic education (literacy, numeracy) and in some cases livelihood skills to adolescents, and adults in some programs, who did not attend or did not complete primary school. Because of the high
19

Chamintsetseg, et. al. 2005. Technical and Vocational Training Study Team Report. Ulaanbaatar: Ministry of Education, Culture, and Science. 20 German Agency for Technical Cooperation. Available: http://www.gtz.de/en/ 21 While it may be argued that these countries are too technologically advanced or diversified to offer models that are immediately applicable to Mongolia, these countries have either made rapid recent advances in relevant areas of TEVT or undergone economic transitions that required restructuring of TEVT. The OEM considers that Mongolia should adopt a selective, future-oriented approach to TEVT and is unlikely to learn from developing country models. 22 ADB, World Bank, and the National Statistics Office, Mongolia. 2006. Participatory Poverty Assessment in Mongolia. Ulaanbaatar. 23 Erdenechimeg, et. al. 2005. Working Group on Non-Formal Education Report (prepared for the Mongolia Second Education Master Plan). Ulaanbaatar.

26 literacy levels achieved under the centrally planned system prior to 1991, non-formal education is not a state priority (although it is addressed in detail in the second education master plan), and is mainly financed by nongovernment organizations such as World Vision, Save the Children, and other international organizations. Non-formal education programs are often housed in state schools, although they are not funded by the state. Other types of non-formal education (e.g., income-generating skills) are exclusively provided by nongovernment organizations. A working group report (footnote 23) states that in 19952004, international development agencies and international nongovernment organizations spent a total of $9,640,000 on non-formal education. 102. The demand for non-formal education is related to state policies, which require every child to be registered. Those without appropriate documentation cannot be admitted to school. This is particularly a problem for the children of non-sedentary parents. Some non-sedentary families or nomads are settlers in peri-urban areas, who may be grazing animals elsewhere in the countryside, and move to the countryside in summer. Nongovernment organizations report that the bureaucratic processes for registering undocumented children can take as long as 2 years. The Government may wish to address this issue as a priority to ensure achievement of its MDG targets. B. Lessons

103. Success Factors. Considering the wide scope of the ESDP in relation to the resources provided and the challenges of implementation, the extent of program achievements is impressive. The key success factors were (i) the ADB project specialists had extensive country knowledge and experience; (ii) the PIU had good staff, and a director who was knowledgeable, energetic, and efficient, and remained for the duration of program implementation; (iii) satisfactory performance of consultants; and (iv) the ESDP was designed and implemented at a time in which the Government was highly open to making changes and endorsing reforms. 104. Approaches to Reform. The ESDP demonstrated that sustainable reforms are best achieved by establishing and promoting successful models that demonstrate what can be achieved. The renovated complex schools under streamlined management 24 combined with salary increases and incentives for teachers, provision of better and more modern teaching equipment and text books, and in-service trainingraised teacher and student morale and parent interest and involvement. These visible improvements sold the complex school model to those who had been previously skeptical of or opposed to it, and there now appears to be broader support to establish larger consolidated urban schools that offer a full range of educational services under one management for long-term educational development. 105. New approaches to teaching methods, disciplining students, and assessing quality and results are clearly needed in the Mongolian education system, as is the inclusion of ethics and civics in the curriculum. However, these are aspects of education that involve cultural values and subjective perceptions concerning instructional methods and the discipline of children, and may be resistant to more modern educational approaches; consequently, they may be more difficult to promote through donor assistance. Constructive change is likely to emerge from within, with new ideas and approaches taking root as Mongolian educators gain exposure to different approaches through wider international scholarly forums.

24

Most of the schools visited by the OEM, and most of the best complex schools seen, were under the direction of well-educated and experienced women.

27 C. 106. Follow-up Actions Recommended follow-up actions are:

Responsibility ADB/EASS Suggested Timing 20072008

Actions 1. ADB should assist the Government to develop an urban education infrastructure investment plan in connection with the implementation of the second education master plan and the Education For All Fast Track Initiative. 2. ADB should assist the Government to develop a futureoriented rural primary education development strategy in connection with the implementation of the second education master plan and the Education For All Fast Track Initiative. The strategy will accommodate recent changes in the education system and meet the needs of a declining nomadic population and a changing pastoral economy. The strategy should include an investment plan to support distance education, mobile primary education services, education manager incentives, and home-based education resources. ADB should assist the Government to plan the establishment of a new national but autonomous university, in partnership with a foreign university that is internationally recognized as a center of excellence.

ADB/EASS

20072008

3.

ADB/EASS

20072008

ADB = Asian Development Bank, EASS = Social Sectors Division of the East Asia Regional Department. Source: Evaluation team.

28

Appendix 1

OVERVIEW OF SCHOOLS VISITED BY OPERATIONS EVALUATION MISSION 1. The following summarizes the observations of the Operations Evaluation Mission (OEM) to 22 project and non-project educational institutions covering kindergarten, secondary, secondary-vocational, and tertiary levels in Ulaanbaatar and in four provinces (Darhan-Uul, Selenge, Orhon, and Ovorhangay), including urban, district, and subdistrict centers. The selection of provinces and schools sought to examine the impact of the Education Sector Development Program (ESDP)1 on education services in a variety of development contexts, ranging from remote rural centers to modern provincial towns and a large city. The purpose of the visit was to examine the implementation of ESDP components for education management, rationalization, curriculum development, teacher training, school equipment, and renovation of school buildings. It notes key issues arising from discussions with provincial directors of education and school directors and managers. A. Overview of Schools 1. Ulaanbaatar

2. The capital city of Ulaanbaatar has grown rapidly since 1992 following decollectivization of agriculture and industry, and political and economic reform. The growth has largely resulted from rural to urban migration. The city is now encircled by large and growing suburban formal and informal settlements comprising houses and ger (traditional Mongolian tent dwellings) located within fenced compounds. ESDP assistance was mainly directed to peri-urban schools. Informal settlements lack adequate social services and electric power in some areas, and most lack adequate water and sanitation infrastructure. The majority of the people in these settlements are poor or disadvantaged, and unemployment is high. Many peri-urban settlement families are still dependent on agriculture, particularly in the summer months when small herds are taken out to pasture, or men and boys go to work as herdsmen for the owners of large herds. Intensification of grazing around the city is causing environmental degradation. a. Buyant-Ukhaa Complex School

3. Buyant-Ukhaa Complex School was the first school visited by the OEM and provided a quality yardstick for subsequent school visits. It is adjacent to the airport on the outskirts of Ulaanbaatar and serves a large suburban settlement area, which has developed rapidly over the past 10 years, with an estimated population of 17,00018,000. The school was first established as a small rural school in 1939 with two teachers. In 2006, it employed 130 staff, including 69 teachers, and had 2,000 students enrolled in 46 classes in grades 111. In 1998 the school merged three nearby primary and secondary schools under common management. It has
1

ADB. 1996. Report and Recommendation of the President to the Board of Directors on Proposed Loans and a Technical Assistance Grant to Mongolia for the Education Sector Development Program. Manila. (Loans 1507MON[SF] and 1508-MON[SF], for a total of $15.5 million, approved on 19 December 1996).

Appendix 1

29

two main buildings: a renovated secondary school and a new primary school (funded by the Japan International Cooperation Agency [JICA]). The school management has constructed a development model of the school buildings, including models of the additional buildings and facilities, which they hope will be funded in the future. 4. To accommodate 2,000 students, the school operates in morning and afternoon shifts. Despite this measure, there was only one teacher for every 4550 pupils. The director emphasized that the two shifts and high teacher-pupil ratio were undesirable but necessary to meet demand. Ideally the ratio should be 1:30, taught in one daily program, which would allow for extracurricular activities and specialized classes. Despite the double shifts, the school did offer extra classes to enable students wishing to specialize in mathematics, English, and technology. The school also offered a vocational certificate program (in carpentry, metalwork, and sewing) in the old school building; however, the resources owned by the school for teaching these subjects were antiquated. Since accepting 6-year old children into grade 1 of primary school in 2005, the school has provided lunch to these children, following government policy. 5. The renovated school building was in excellent condition with a clean, bright atmosphere and interesting classrooms; on the basis of visible evidence, it appeared to be very well managed by a young and highly qualified female director and her enthusiastic staff (she has a masters degree in educational administration, a program assisted under ESDP). The director noted that insufficient funds were allocated by the state for maintenance and the school raised funds by requesting donations of at least MNT1,000 per child from parents through the parents and teachers association. The school also received sponsorship assistance from MIAT, the national airline, because of the schools proximity to the airport. She noted that fundraising was somewhat difficult, however, because 5060% of families in the school catchment area were poor migrants, and unemployment or underemployment rates were high. This also affected the capacity of parents to buy textbooks for their children under the new user-pays policy introduced in 2006. A state allowance for disadvantaged children of MNT3,000 to buy textbooks was not sufficient, and not available to all the children who needed the assistance; only a quarter of children enrolled in the school owned a full set of textbooks. 6. The OEM found that, as is characteristic of all schools in Mongolia, there was vigorous competition between schools for subject prizes and cups. Medals and certificates were displayed in the school entrance lobby, and Buyant-Ukhaa Complex School was proud that it was judged second of 13 schools in the district in an inter-school competition. b. Golomt Complex School

7. Golomt Complex School is located in a satellite town of Ulaanbaatar that grew up around a coal mine, which is now closed. It was established as a complex school in 1998 by merging three secondary schools and now comprises a senior and junior high school, three primary schools (one outside the town), and a boarding house for 80 children from rural pastoral families. In 2006 it had 5,000 students in 135 classes, taught in morning and afternoon shifts.

30

Appendix 1

8. The staff comprised 180 teachers, 14 administrative staff, and 94 other staff (social workers, maintenance workers, cooks, cleaners, etc.). Of the teaching staff, 68% had degrees in education or related qualifications. 9. The school offers specialized courses for advanced students, core subjects, and a range of extra curricular activities, including a school Internet center. According to the director, the school benefited from ESDP staff training in administration and teacher upgrading. As in other schools, the director spent a lot of time telling the OEM about the prizes and distinctions won by students and staff in city, provincial, and national competitions. 10. The school comprised a number of old, two-story buildings that had been partially renovated (painting, roof repairs, plumbing, heating repair), mainly under ESDP. The school appeared clean and reasonably well maintained, and classrooms were bright and cheerful, with mostly appropriate and sometimes quite innovative teaching displays. Science teaching aids and computers provided under the ESDP were in working order. 11. Parental contributions, however, are needed to fund new furnishings, teaching aids, maintenance, and repairs, as the state budgetary allocation is inadequate for these needs, and the school serves an extremely poor community with high unemployment due to factory closures. The director was proud of the schools low dropout rate, and a nonformal education program was run for 35 children who cannot be formally enrolled due to lack of official documentation. About 80% of primary children had the required textbooks, but less than half of the children enrolled in junior and senior secondary school had them. Children shared books, but those without books could not do homework. In the directors opinion, the old system of renting textbooks established under the ESDP was better.

Appendix 1

31

c.

Ulaanbaatar School Number 12

12. School Number 12 is a complex school in a densely populated area of apartment buildings. It is also the hub for a network of smaller schools and provides and ongoing in-service training of trainers program for associated schools. It enrolled 2,000 students in grades 111 in 2006, teaching in two shifts. It also runs a non-formal education program for unregistered children and an adult education certificate program for teenagers and adults. The schools director said that only about 10% of children come from poor or disadvantaged families. 13. Overall, the OEMs impression of the school was that its management team was very enterprising. They emphasized teacher-parent relations and building a support base for the school among its alumnae to raise funds for the school. The director, like many others, keeps an album of photographs to show how funds raised for school improvements have been spent. The schools major problem is overcrowding. d. Complex School Number 86 (Ireedui)

14. Ireedui (Future) Complex School was the first complex school, established in 1997. It comprises seven neighborhood schools (of which six offered 10-year programs), which were reorganized into eight primary, secondary, and senior secondary schools under common management. In 2006, the school had 10,600 students in 303 grade-classes from 1st to 11th grades. It employed 430 teachers and 113 service staff with an 80:20 ratio of teaching to nonteaching staff. Table A1 compares the before and after efficiency of the reform. Table A1: Comparison of Job Changes and Salaries at the Ireedui Complex School
Before Amalgamation Number of Total Salaries (MNT000s) Persons 6 744 18 1,800 7 560 6 450 6 450 21 1,680 14 980 79 6,664 Number of Persons 8 14 4 2 2 10 0 40 Under New Structure Salaries Differences in (MNT000s) Salary Amount 992 +248 1,400 (400) 320 (240) 150 (300) 150 (300) 800 (880) 0 (980) (2,852) 3,812

Positions Director School Manager Accountant Carpenter Electrician Mechanic Coat Room Worker Total

( ) = negative. Source: Director, Ireedui Complex School, Ulaanbaatar, November 2006.

32

Appendix 1

15. The teacher-pupil ratio ranged from 1:35 to 1:48, with the lowest ratio in senior high school. It teaches academic and vocational subjects, including how to drive a car. Its major problem was overcrowding, and it operated in two shifts. 2. Darhan-Uul Province

16. Darhan is the center in Darhan-Uul with a population of around 100,000. It grew around state-owned industries established in the Soviet era, some of which have survived economic transition, such as dairy and food processing, meat works, and metal processing. There is a small garment industry, and small private enterprises were said to be increasing in number. The province of Darhan-Uul has 27 government schools and 16 kindergartens, as well as 11 private schools and 2 vocational training centers. In addition, there are a number of competing tertiary institutions, several of which are branches of main campuses in Ulaanbaatar. a. Od Complex School

17. This complex school has three buildings in one of the two prevailing Sovietera architectural designslong flat-roofed Lshaped buildings with wooden floors in the upper story and aggregate-tiled floors below. It has enrolled 2,540 students and employs 105 teachers and 38 other staff. In contrast to the more streamlined management observed in schools visited in Ulaanbaatar, the school has eight staff employed as directors and managers. The provincial policy in Darhan is to rotate senior school directors between different schools. 18. As in other schools, special classes were offered in selected subjects for advanced students; this situation appeared connected to the quest for prizes and awards in inter-school competitions. Issues concerning maintenance and textbooks were as reported in the schools previously described. The school director noted that when the redundancy package was offered, the school stood to lose large numbers of staff, so incentives were offered to teachers the school wanted to keep; in the end, 10 left, with three later rehired. 19. The school was in reasonably good condition, having had some basic essential renovations under the ESDP. The need for further maintenance was very evident. Classrooms were not as well kept and decorated as some of the others visited, and the library appeared to be particularly inadequate.

Appendix 1

33

b.

Oyunii Ireedui Complex School 20. This complex school has two buildings and appeared to be considered as the towns top government school. The main building is built in the second of the two standard Soviet-era designs, with three stories around a central quadrangle courtyard (these buildings formerly included teachers apartments). It is located in the more prosperous residential area of the town and the director reported that only about 10% of students came from disadvantaged families. It was established as a complex school in 2001, combining five schools into one school under common management. About 3,300 students in grades 111 were enrolled, and there were 140 teachers and 54 other staff employed. 21. The many competitive accomplishments of the teachers and student were described in the OEM briefing, and the display of awards presented for its inspection. Among its prizes is that of best national school. The schools academic specialization is in math and natural science. The tendency of schools to specialize appears to depend on what their staffs major teaching strengths are, rather than student or parental preferences. 22. The standard of renovation appeared good, although there was visible evidence of needed maintenance work. Classrooms were clean and well organized. c. Jiguur Complex School

23. This school is built in the two-storey L-shaped Soviet-era design. It is located in the midst of a densely populated area of apartment buildings. The Director noted that 70% of students were from poor families. Its specialization is vocational education and the curriculum includes sewing, cooking, woodwork, arts, wrestling, and music. Of the 1,670 students enrolled, 450 were taking vocational subjects. Ten "unregistered" children were taking non-formal classes at the school.2 The vocational classrooms inspected appeared very poorly equipped.
2

The demand for non-formal education is related to state policies, which require every child to be registered. Those without appropriate documentation cannot be admitted to school. This is a problem for the children of nonsedentary parents who settle in peri-urban areas. Nongovernment organizations report that the bureaucratic processes for registering undocumented children can take as long as 2 years. Official statistics show that 68,000 children aged 815 were out of school in 2000. About 12.6% of children aged 811 (28,800) dropped out of school and 23.7% (10,876) of children aged 815 had never attended school as of 2004. Non-formal education is the term used for a package of programs that (i) aim to reintegrate school dropouts into the formal education system, and (ii) provide basic education (e.g., literacy and numeracy and in some cases livelihood skills) to adolescents (and in some programs adults) who did not attend or did not complete primary school. Because of the high literacy levels achieved under the centrally planned system prior to 1991, non-formal education is not a state priority (although addressed in detail in the second education master plan), and is mainly financed by nongovernment organizations such as World Vision, Save the Children, and other international organizations. However, although not funded by the state, non-formal education programs are often housed in state schools. Other types of non-formal education

34

Appendix 1

24. The school employed 73 teachers and 23 other staff. Of the three schools in Darhan, it appeared to be the most in need of further renovations. Despite its vocational orientation, the school was able to display evidence of the accomplishments of its most talented students and staff in natural sciences through prizes won in regional competitions.

d.

Tur Rural Secondary School

25. The school, built in 1972, is located in the outer area of Darhan. The director said about 70% of the families in the area are poor. It had 976 enrolled students and 41 teachers (as well as 13 other staff). It should cater for 1,600 children, but facilities do not allow for this. The school has 15 classrooms and students are taught in two shifts. It was overcrowded, but the teacher-student ratio (average of 1:33) was better than in many schools. About 200 children from the area attend school in the center of the town; however, JICA is to provide a new primary school building, which will then allow the school to serve all the children in the area. It has not been made part of a complex school because it is too far from any other schools to be amalgamated. e. Darhan Kindergarten and Orphanage/Sanitarium and caters for 35 resident and 140 nona physician, a director, 7 kindergarten orphans, disabled children, and children years old. The youngest child was a 10-

26. This institution is one of a number in the city resident children on a 24-hour basis. It employed teachers, and 15 other staff. It provides services to from disadvantaged families, aged from about 1 to 7

such as income generating skills are exclusively provided by nongovernment organizations. The working group report states that in 19952004, international development agencies and international nongovernment organizations spent a total of $9,640,000 on non-formal education.

Appendix 1

35

month old abandoned baby.3 The institution has a clean, pleasant interior and appeared well managed and equipped.

3.

Selenge Province

27. Selenge has a population of about 100,000. It has a large number of recent migrants and is ringed by new ger settlements. Like Darhan-Uul, it is on the main railway line connecting Mongolia with Russia to the north (about 25 kilometers away) and the Peoples Republic of China to the south. Its major industries are gold mining and agriculture. The province has 33 government schools, two private schools, two industry-run kindergartens, and three vocational training centers, enrolling a total of about 23,000 students. The provincial government has chosen not to adopt the complex school model for amalgamating schools; however, it has established school networks linking subject teachers. It retrenched 200 teachers under the ESDP. Each of the 21 districts has primary and secondary schools. These schools were said to be badly in need of renovation, equipment, and teacher training. There are six town government schools, each under separate management, of which the following were visited. a. Secondary School Number 4 (Suhbaatar)

28. Secondary School No. 4 had 847 students in grades 111, taught in two shifts, and 52 staff, of whom 37 were teachers. Four teachers at this school were national teacher trainers under ESDP. Despite its disadvantaged settlement locality, the school director said that his is the top school academically and attracts the best students. He listed the schools many prizes and achievements. The school was partially renovated in 2000 under the ESDP (with a grant of MNT27 million). According to the director, the work done was of very poor quality; however, he
3

The mother had died and the father was homeless.

36

Appendix 1

said that he had heard that some renovations in other schools were of a high standard. The secondary school building was observed by the OEM to be in very poor condition, with no indoor plumbing aside from heating, and so no running water; staff and students used pit latrines in the grounds. The school had no funds for maintenance since the renovation. The director estimated that the needed renovations would cost around $139,000. He noted the advantage of the complex school model, and said he hoped that the model would be adopted for town schools.

b.

High School Number 1 (Suhbaatar)

29. High School No. 1 is located in the town center in an area of apartment buildings. The school serves a minority of poor families compared with School No. 4. It has been extensively renovated, with an allocation of MNT103 million in 2006 under the Asian Development Bank (ADB) Second Education Development Project. It had 1,500 students, of whom 166 were boarders, and taught secondary classes in the mornings and primary classes in the afternoons. This practice, which is common in Mongolian schools where the complex model has not been adopted, means that the desks are often too big, or too small, for the children, and classroom displays cannot be age-specific. There were 65 teachers and 30 other staff. The director said she admired the complex model, which she had seen in Darhan, and hoped it would be adopted in Selenge. The greatest advantage of the model was allowing schools to provide age-specific services. School No. 1 serves as the focal point for a network of schools, encouraging cooperation between subject teachers. Problems noted were a shortage of maintenance funds and the cost of textbooks (about one fifth of students did not have the books they needed).

Appendix 1

37

c.

Khtl High School, Saikhan District

30. This district (soum) school is a regional center school in a school network, and is one of two government schools located in the district town of Saikhan, Selenge province. It was renovated primarily under the Second Education Development Project, with a budget of MNT183 million, but also received some essential renovations and equipment under the ESDP. It served 1,739 students in grades 111, and its facilities were very overcrowded. The school attracted children from other districts, who mainly board privately in the town. If it had more boarding facilities, the school would attract even more children. It had 70 teachers and 22 other staff. The director said poverty was low in the town because two factories provide employment, and most children could therefore afford to buy their books. (Others interviewed disagreed, and said poverty was high because the factories only operated seasonally). The director mentioned that rural soum schools had many problems, including that teachers were arrogant, because they know it is hard to replace them.

d.

Private School, Saikhan District

31. Established in 1999, the school commenced as a primary school, but now teaches 160 students in grades 111. The school is housed in a renovated warehouse with conditions considerably less attractive and spacious than those of the government school nearby. The director left government service to establish the school with the backing of a group of parents, and owns the school and its building. She offered one daily shift, with 10 extra hours of instruction per week (compared to government schools), and a low teacher-pupil ratio of approximately 1:15. Parents paid school fees of MNT15,00020,000 per month for primary students and from MNT114,000132,000 per month for secondary students. Her teachers are also paid MNT10,000 per month more than the government pay rate. She expects the school to grow and to be able to construct a new building within the next few years. 4. Orhon Province

32. This province has a population of about 84,000 and its center is Erdenet City. The major local industry is mining. Like Darhan, Erdenet City is growing rapidly as a result of rural-urban migration. Schools in suburban areas operate in three shifts to cope with the influx of migrants. The province has 32 state schools and kindergartens, mainly in towns, as well as four institutions of higher education (branches of national universities). Four of the 16 schools providing grade 111 education have become complex schools. Other schools have not been amalgamated due to the distance between the existing school buildings. Under the ESDP,

38

Appendix 1

about 30 teachers were made redundant, several of whom rejoined the teaching service after retraining. a. Naran Complex School

33. This school was established as a complex school in 2001 under the ESDP through the merger of three high schools and seven primary schools. It is located in a fast-growing disadvantaged suburban area and occupies two partially renovated buildings, as well as two new buildings (primary class rooms) provided by JICA. It is already facing capacity problems for its 3,600 students; for example, one of the partly renovated secondary school buildings was designed for 810 students, but is already accommodating 1,500 students. Its three daily shifts make use of aisles and corridors to accommodate the students, and there was no space for any extracurricular activities. The renovation of old buildings was only partial and further renovations are needed. The earlier renovations were said to be of poor quality. The school lacks running water or toilets. b. Erdenet Complex School

34. This complex school merged four schools and its buildings were extensively renovated and equipped in 1999 under the ESDP. The OEM noted the high standard of the renovation and good appearance of the school and its classrooms. Situated in a neighborhood of apartment buildings housing mining workers, it included a junior and senior secondary school and two primary schools under common management. Its total enrollment was 3,362 and it employed 339 teachers and nonteaching staff, including 155 teachers. The director noted the following points: (i) the performance of teachers had improved since retraining under the ESDP, and the school had become very competitive in core subjects in the province and nationally; (ii) teams of subject teachers were contributing to ongoing staff development; (iii) retention rates had greatly improved for year 9 and above; (iv) staff rationalization reduced the cost of operating the school; and (v) the use of a team management approach was efficient and conducive to good management and staff relations. Issues that needed to be addressed by the provincial government and the Ministry of Education, Culture and Science (MECS) included the provision of funds for ongoing maintenance of school buildings and designing better performance evaluation measures for teachers.

Appendix 1

39

5.

Ovorhangay Province

35. This province, located in central Mongolia, is one of the countrys largest in terms of area, and has a population of around 120,000. The provincial economy is based on the pastoral industry (meat and cashmere), mining, and seasonal tourism in some areas. 36. The provincial director of education said he thought that the complex school concept was still not well understood by the provincial government; however, the schools were networked to strengthen subject teaching. Educational administration issues included a lack of funds for petrol to make school visits. a. Esnzuil District (Soum) School

37. This rural school is located in a small town of 3,000 people, which operates mainly as a service center for the surrounding two districts, populated by nomadic herding families. In 2006 it had 28 mainly well-qualified teachers and 680 students, an increase from 580 in 2001. Due to classroom space constraints, it taught in two shifts. Some 183 students between 7 and 16 years of age lived in the school boarding house. It was reorganized as a complex school (from two separate schools) under the ESDP and provided with basic renovations and equipment. It also provided continuing and adult education for 70 unregistered children. A major problem for the school was the lack of good telecommunication access; however, teachers said that the school was relatively privileged, as it is close to a main road. b. Merged Secondary School

38. The school is one of four government schools (one is a boarding school) in the small provincial city of Arvayheer. It employed 35 mostly well-qualified teachers and 10 non-teaching staff. Enrollment grew from 4,400 in 1997 to 7,400 in 2006. The school building (built in 1966) was very shabby and had been provided with only basic renovations. Problems included overcrowding, leaking roofs, and obsolete computers.

40

Appendix 1

c.

Soyombo Complex School

39. This school received MNT70 million for renovation under the ESDP. About 2,000 students were enrolled in 1997, and 3,640 students in 2006; growth was due to rural-urban migration in the town. Teacher-pupil ratios ranged from 1:36 to 1:47. The school has four buildings, but the director noted that one, a primary school building, had to be closed due to leaking and mould, which made the building uninhabitable. The remaining primary school building consequently had to accommodate three student shifts. Further school amalgamation will be dependent on obtaining new school buildings. The school runs a non-formal program for undocumented children as well as a special class for disabled children who cannot be mainstreamed. This school was the first in the province to adopt a departmental system based on major subject specializations (i.e., natural sciences and math, languages, social sciences).

d.

Avayheer Private Primary School

40. The school was the first private school in the province and opened in 2006 with 120 students (70 in grade 1, and 50 in grade 2). In 2006 it employed five teachers in addition to the director-owner (who is an experienced teacher), and who was assisted in starting the school by her husband, who is in business. The school taught one daily shift and offered extra-curricular activities and electives (chess, math, art) to students in the afternoons. It is housed in a small renovated building, formerly an art gallery, with modest but generally better facilities than those in the state primary school. The building lacked water or indoor toilets but a water connection was expected in 2007. Parents paid MNT35,000 per year and the school received a state subsidy on a per capita basis. Each child was given a filled bread roll and a drink for lunch, with the state paying a subsidy for the school lunches offered to grade 1 students, in line with national policy. Parents are attracted by the low teacher-pupil ratio and extra teaching time offered to its students.

Appendix 1

41

e.

Taragt Bag School 41. This remote rural school is located in the subdistrict center, where all permanent residents of the center are employed by the State as teachers, nurses, or clerical and ancillary workers. The 10-room school comprises 4 classrooms, 5 dormitories, and 1 staff room. It taught 73 students aged 714 years in two shifts. Twenty-two enrolled children lived in the subdistrict center, while the remainder were boarders. Sixty attended full-time, while 13 studied part-time and lived with their nomadic herding families, taking lessons with them to do at home and spending part of the year in fulltime study when their parents are in the vicinity of the school. The boarders are accommodated in groups based on kinship rather than age, to allow the younger children to be cared for by older, related children. In addition, it had 23 undocumented students enrolled in non-formal education.

42. The school employed five teachers, including the director, a young graduate with family living in the subdistrict. It also employed a bookkeeper, three heating workers, one cook, and two cleaners. The school had a television set and a DVD powered by a solar panel. There was no telephone communication and the two-way radio owned by the school was not connected. The school had no water or indoor toilets. Washing water was carried inside for the use of the boarders. The school building was very shabby and dilapidated; however, the eldest teacher (aged 55) said the school was immeasurably improved from the days when it comprised one small stone building. The school had no records of how many families it serves. B. 43. Key Issues and Findings The main issues identified in the schools visited are as follows: (i) (ii) Schools in better off neighborhoods were visibly superior in terms of building and classroom facilities than schools in poorer and rapidly growing neighborhoods. While the national interest in school competitions is conducive to competition, they seemed to be over-emphasized in nearly all schools visited. The OEM considers that the work and effort by teachers that goes into competing may be at the expense of students in need of more teacher attention. While the improvement of technical education and vocational training, school teaching methods, ongoing curriculum development, and teacher evaluation are important concerns highlighted in ADBs Second Education Development Project, the major problems facing most Mongolian schools are the poor state of repair of most school buildings, poor sanitation, overcrowding, low number of teaching contact hours, and high pupil-teacher ratios. The school visits, overall, suggested to the OEM that ADB might wish to consider focusing its development assistance to education on the provision of school infrastructure, rationalization of higher education, and donor coordination with an emphasis on a sector-wide approach.

(iii)

(iv)

42

COMPARISON OF APPRAISAL AND ACTUAL PROGRAM COSTS ($'000s)

Appraisal Estimates ADB Item I. Program A. Redundancy Program B. Academic Network, Furniture, Equipment, and Rehabilitation of 41 Schools C. Bank Charges Total Program Cost II. Project A. Staff Development 1. In-Country 2. International Subtotal (A) B. Consulting Services 1. International 2. Domestic Subtotal (B) C. Facilities Development 1. Repair/Rehabilitation 2. Furniture Subtotal (C) D. Equipment and Materials 1. Equipment 2. Instructional Materials Subtotal (D) E. Studies F. Incremental Recurrent Cost G. Taxes and Duties Total Cost H. Service Charges 2,643 2,151 4,794 0 0 0 6,849 251 0 239 239 0 192 0 1,899 0 1,899 2,643 2,390 5,033 0 192 0 8,748 251 8,999 0 0 0 81 997 1,016 2,304 0 2,304 0 239 239 81 1,189 1,016 4,203 0 4,203 2,643 2,390 5,033 81 1,189 1,016 11,052 251 11,303 2,619 1,251 3,870 0 0 0 6,618 203 6,821 0 542 542 0 126 0 1,357 0 1,357 2,619 1,793 4,412 0 126 0 7,975 203 8,178 0 0 0 0 126 1,206 1,677 0 1,677 0 542 542 0 252 1,206 3,034 0 3,034 2,619 1,793 4,412 0 252 1,206 9,652 203 9,855 310 4 314 138 0 138 448 4 452 172 38 210 310 38 348 620 42 662 615 113 728 271 0 271 886 113 999 345 0 345 616 0 616 1,231 113 1,344 765 0 765 0 319 319 765 319 1,084 0 0 0 0 319 319 765 319 1,084 946 0 946 0 18 18 946 18 964 0 0 0 0 18 18 946 18 964 0 976 976 1,011 0 1,011 1,011 976 1,987 0 0 0 1,011 0 1,011 1,011 976 1,987 0 1,074 1,074 400 0 400 400 1,074 1,474 0 0 0 400 0 400 400 1,074 1,474 Foreign 6,500 0 0 6,500 Local 0 0 0 0 Total 6,500 0 0 6,500 Government Local 0 0 0 0 Total 0 0 0 0 Total Cost 6,500 0 0 6,500 Foreign 4,000 2,136 20 6,156 ADB Local 0 0 0 0 Total 4,000 2,136 20 6,156 0 0 Actual Government Local 0 0 Total Local 0 0 Total Cost 4,000 2,136 20 6,156

Appendix 2

Total Project Cost 7,100 ADB = Asian Development Bank. Source: ADB and Government project completion reports.

IMPLEMENTATION AND COMPLIANCE WITH PROGRAM MEASURES

Policy Areas and Medium-Term Objectives 1. Support the Ministry of Education, Culture, and Science and local governments with reorganizing and strengthening education management capabilities. Redefine the roles and responsibilities of the Ministry of Education, Culture, and Science; local governments; and professional units at the central and local levels. Formulate and implement a comprehensive reorganization plan for these entities to meet their new mandate and functions. Examine the administration, finance, and management capabilities of these entities and assess their need for strengthening. November 1996 Accomplished. Confirmed. Date of Proposed Compliance Status at PCR (2003) Status at PPER

1.1

1.2

November 1996

Accomplished.

Confirmed.

1.3

November 1996

Accomplished.

Confirmed.

1.4 1.5

Draw up a comprehensive capability-building program to November 1996 meet these needs. Implement the capability-building program.

Accomplished. Capacity building program carried out satisfactorily.

Implementation to be Accomplished. completed by the end of the investment component (expected March 2002).

2. 2.1

Rationalize education sector facilities. Enforce a moratorium on the construction of new public secondary schools during the program period. Moratorium enforced since April 1996. Continued enforcement. School mapping study commissioned in November 1996 (under advance action). Accomplished. Confirmed.
Appendix 3

2.2

Conduct a secondary school mapping study to identify the scope for reducing the number of secondary schools and increasing efficiency in the use of school facilities (study to be completed not later than 30 April 1997).

Accomplished.

Confirmed.

43

44

Policy Areas and Medium-Term Objectives 2.2(a) Establish criteria and set out detailed guidelines and procedures for mergers and closures of schools. 2.2(b) 2.2(c) 2.3 Collect data on existing schools for applying the criteria and guidelines. Identify schools to be merged or closed.

Date of Proposed Compliance 30 April 1997 30 April 1997 30 April 1997

Status at PCR (2003) Accomplished. Accomplished. Accomplished. Accomplished.

Status at PPER Confirmed.

Appendix 3

Confirmed. Confirmed. Confirmed.

30 April 1998 Approval by the Ministry of Education, Culture, and Science and local governments of mergers and closures of the specified schools. Complete implementation of mergers and closures of the schools identified. Implement mergers and closures for 65 percent of the schools identified by 31 August 1998.

2.4

Accomplished ahead of Confirmed. schedule. Of the 217 schools identified for restructuring, 115 schools (67%) were merged or closed as of 31 July 1998. The mergers or closures of schools will lead to improved efficiency, costeffectiveness, quality, and sustainability of education. Completed in July 2000.

Complete mergers and closures for the remaining 35 percent of schools, identified by 31 August 1999, by the end of the program period (March 2000). 3. 3.1 Rationalize education sector staffing. Review the existing staffing pattern and strength in the education sector and assess the scope for reductions. November 1996

Accomplished.

Confirmed.

Policy Areas and Medium-Term Objectives 3.2 Establish criteria for determining the categories and numbers of staff to be covered under the rationalization program. 3.3 Issue a Government policy program to be approved by Parliament to rationalize the public service sector, including the education sector. Develop plans for providing orientation, counseling retaining, and outplacement services to affected staff.

Date of Proposed Compliance November 1996

Status at PCR (2003) Accomplished.

Status at PPER Confirmed.

November 1996

Accomplished.

Confirmed.

3.4(a)

November 1996

Accomplished.

Based on interviews, orientation, counseling and outplacement services were provided to selected staff.

3.4(b) 3.5 3.6 3.7

Confirm the adequacy of facilities for providing such services and commence service delivery. Formulate a strategy and options acceptable to ADB for compensation packages for staff separation. Prepare a phased action plan for staff rationalization. Develop a long-term personnel policy acceptable to ADB for education sector staff (including performance incentives and career paths).

From April 1997 onward November 1996 November 1996 31 August 1998

Accomplished. Accomplished. Accomplished. Confirmed. Confirmed.

Accomplished. A long-term Confirmed. personnel policy for education personnel with a five-step promotion system accompanied by performance-based financial incentives scheme has been adopted and is in place. The policy is acceptable to ADB. Confirmed.

Appendix 3

3.8

Allocate funds in the Government budget to implement the staff rationalization program.

Mandate a budget Accomplished. provision of MNT975 million for 1997 to implement 25% of the staff rationalization program.

45

46

Policy Areas and Medium-Term Objectives

Date of Proposed Compliance Mandate a budget provision of MNT1,950 million for 1998 to implement a further 50% of the staff rationalization program by 31 August 1998. Mandate a budget provision of MNT975 million for 1999 to complete implementation of the remaining 25 percent of the staff rationalization program by the end of the program period (March 2000).

Status at PCR (2003) Accomplished. The Ministry of Finance provided funds in the 1998 budget.

Status at PPER
Appendix 3

Accomplished. The Ministry of Finance provided funds in the 1999 budget.

3.9 3.9.1.

Implement the staff rationalization program. Eliminate 4,200 staff positions by declaring them redundant. Eliminate 50% of redundant staff (about 2,100 staff) by 31 August 1998. Accomplished ahead of schedule. A total of 3,174 staff were declared redundant in 1997 and an additional 1,050 were declared redundant as of 31 July 1998. Thus 4,224 surplus staff positions were eliminated as of 31 July 1998. Completed in May 1999. A total of 5,000 staff were retrenched.

Complete implementation by the end of the program period (March 2000).

Policy Areas and Medium-Term Objectives 3.9.2 Eliminate 3,900 staff positions pursuant to attrition, with about 1,000 staff positions eliminated by June 1998.

Date of Proposed Compliance Complete implementation by the end of the program period (March 2000).

Status at PCR (2003) Completed in May 1999.

Status at PPER 3,900 staff positions were eliminated through attrition.

4. 4.1

Introduce cost sharing in secondary education textbook publishing and decentralize textbook distribution. Assess the existing textbook publishing and distribution system and recommend measures and options for introducing cost sharing and decentralization. Using field tests evaluate the recommended measures and options, which were acceptable to ADB, to assess their technical feasibility. September 1996 Accomplished. Confirmed.

4.2

31 August 1998

Accomplished. The Confirmed. Governments new textbook policy, adopted in June 1998 on the basis of field tests, recommends a role for the private sector in textbook publishing and distribution and the introduction of costsharing measures. Publishing and distribution contracts for programfunded textbooks and teachers guides for secondary schools were successfully contracted to private firms through open bidding. The new textbooks are sold to students, and some of the costs are recoverable. The measures and options adopted are acceptable to ADB.

Appendix 3

47

48

Policy Areas and Medium-Term Objectives 4.3 Adopt and implement a national policy on cost sharing and decentralization in textbook publishing and distribution in consultation with ADB. 5. 5.1 5.2 Develop a policy framework on TEVT. Analyze the issues facing TEVT to determine the Governments possible future role. Identify measures acceptable to ADB to strengthen the effectiveness and efficiency of the Governments possible role in TEVT.

Date of Proposed Compliance By August 1999

Status at PCR (2003) Accomplished.

Status at PPER Confirmed.

Appendix 3

September 1996 31 August 1998

Accomplished.

Confirmed.

Confirmed. Accomplished. On 25 March 1998 the Cabinet approved Resolution No. 41, which contained the national policy and action plan for strengthening the TEVT sector. The policy defines a more dynamic and proactive role for the Government in the proposed structure to establish a demand-driven and flexible system of TEVT. The Governments proposed roles are acceptable to ADB. Confirmed. Accomplished. On 25 March 1998 the Cabinet approved Resolution No. 41, which contains the national policy and action plan for strengthening the TEVT sector. The document adopts a comprehensive policy framework to establish a demanddriven system of TEVT that encompasses measures to promote

5.3

Develop a comprehensive policy framework, acceptable to ADB, including the promotion of private sector participation in TEVT.

31 August 1998

Policy Areas and Medium-Term Objectives

Date of Proposed Compliance

Status at PCR (2003) private sector participation, and an action plan for implementation for 1998 to 2003, including policy reforms and new investments. The comprehensive policy framework is acceptable to ADB.

Status at PPER

5.4

Adopt and implement a national TEVT policy in consultation with ADB.

Implementation to be completed by the end of the program period (March 2000).

Confirmed. Accomplished. The new TEVT Law, which defines the role of the Government in the TEVT subsector, was enacted in May 2002.

6. 6.1

Promote private sector provision of education and the privatization of higher education. Identify the issues and constraints remaining in the way of private sector participation in education. 31 August 1998 Accomplished. Guidelines Confirmed. on private sector involvement in education were adopted on the basis of identified issues and constraints and in full consultation with private providers. These include revised and more transparent procedures for establishing private education institutions, for tax exemptions to private educational institutions, and for equal opportunity in access to government grants for private education institutions.

Appendix 3

49

50

Policy Areas and Medium-Term Objectives 6.2 Modify the existing legal and regulatory framework as required to enable private sector participation in education. 6.3 Establish criteria acceptable to ADB and identify candidate higher education institutions for privatization based on such criteria.

Date of Proposed Compliance April 1998

Status at PCR (2003) Accomplished.

Status at PPER Confirmed.

Appendix 3

31 August 1998

Confirmed. Accomplished. Criteria acceptable to ADB for the privatization of higher education institutions were developed. As a first pilot candidate, the Institute of Economics and Finance was privatized in September 1997. Accomplished. The privatization of higher education institutions is ongoing, with six institutions privatized. Confirmed.

6.4

Field test and implement the privatization of selected higher education institutions on a pilot basis.

Complete implementation by the end of the program period (March 2000).

7. 7.1

Promote the development and use of selected quality assurance mechanisms for higher education. Approve the structure, mandate, functions, and staffing of an independent accreditation body for higher education. 31 August 1997 Accomplished. Confirmed.

7.2

Establish a legal and regulatory framework for the December 1997 accreditation body and submit any required legislation to Parliament. Establish an independent accreditation body for higher education; appoint its staff; and develop a capacitybuilding program, including staff training programs. 31 August 1998

Accomplished.

Confirmed.

7.3

Accomplished. Resolution Confirmed. No. 240, establishing rules and procedures for the accreditation of higher education, was approved in December 1997. The National Committee on

Policy Areas and Medium-Term Objectives

Date of Proposed Compliance

Status at PCR (2003) Higher Education, composed of 15 members, was established to implement the accreditation of higher education institutions. A capacity-building plan, including a staff development program, was prepared. In-country training workshops on accreditation were held and international study visits were completed.

Status at PPER

8. 8.1

Promote performance management in the education sector. Identify overall sector performance indicators, as well as specific BME indicators, and assign responsibilities for data collection to the concerned institutions in the education sector. Design an EMIS acceptable to ADB based on the agreed sector performance indicators and incorporating BME requirements. Test implementation of the EMIS on a pilot basis. 31 August 1997 Accomplished by December 1997. Confirmed.

8.2

December 1997

Accomplished by March 1998.

Confirmed.

8.3

31 August 1998

Confirmed. Accomplished. With the help of the associated technical assistance, the EMIS was designed on the basis of field tests and tryouts. Twenty-one indicators for data collection were developed and redefined. Hardware and software were procured. Test

Appendix 3

51

52

Policy Areas and Medium-Term Objectives

Date of Proposed Compliance

Status at PCR (2003) implementation at the province level is complete. Accomplished.

Status at PPER
Appendix 3

8.4

Provide access to the EMIS for all education sector institutions and conduct training programs to help staff use it for performance management.

Complete implementation by the end of the program period (March 2000). Complete implementation by the end of the investment Project (March 2002).

Confirmed.

8.5

Submit performance management and BME reports.

Accomplished. BME report submitted in January 2003.

Confirmed.

ADB = Asian Development Bank, BME = benefit monitoring and evaluation, EMIS = education management information system, TEVT = technical education and vocational training. Sources: Report and recommendation of the President, project completion report, and Operations Evaluation Mission.

Appendix 4

53

RESULTS OF A SURVEY OF THE OPINIONS OF TEACHERS ABOUT THE ESDP STAFF RATIONALIZATION PROGRAM A. The Retrenchment Program

1. The implementation of a major education rationalization program aimed to improve the efficiency and cost-effectiveness of the education system in the country in the 1990s during the most severe period of transition. In the mid-1990s school attendance was poor, many schools were dysfunctional, and teachers were not paid for months (at that time the maximum monthly salary was MNT24,500). In 1997, 3,174 teachers and staff were released from schools through redundancy and attrition; a further 1,826 teachers were released in 1998. A redundancy incentive package was implemented to stimulate voluntary resignation of teachers, although young teachers were encouraged to stay in their schools. 2. The retrenched teachers received cash incentives totaling MNT3.3 billion (MNT2 billion in 1997 and MNT1.3 billion in 1998). The retrenchment scheme was based on the teachers length of service. The equivalent of a 6-month net salary was paid for 6 months to 2.5 years of service; a payment equal to 6.2 to 12 months net salary was paid after 2.55 years; and 12 to 24 months net salary was paid after 5.814.9 years. After 15 years of service, an additional payment equal to 6.2 to 12 months net salary was paid. The rule of education restructuring and staff rationalization, the regulation of migration and the allocation of incentives, approved by Decree No. 165 of the Mongolian Government (1997), states that people separated from their jobs will pay social insurance fees, and that working groups will explain its significance. Participants of the staff rationalization program were not allowed to work for the Government for 3 years, except for remote rural schools with a shortage of teachers. Salary resources freed up by the staff reduction were intended to be used to raise the salaries of remaining teachers, based on their performance. B. Survey Method

3. The project implementation unit (PIU) at the Ministry of Education, Culture and Science (MECS) provided the Operations Evaluation Mission (OEM) documents and statistics on the number of separated teachers and staff by location (Table A4.1). However, the full list of the teachers was not available. Table A4.1: Number of Separated Teachers By Aimags and Cities Aimag/City Arhangay Bayan-Olgiy Bayanhongor Bulgan Govi-Altay Dornogobi Dornod Dundgovi Zavhan Ovorhangay Omnogobi Suhbaatar Selenge 1997 70 177 82 102 44 33 40 46 144 120 69 31 60 1998 37 14 22 30 23 16 51 27 93 29 9 18 39

54

Appendix 4

Aimag/City Tov Uvs Hovd Hovsgol Hentiy Darhan Orhon Govisumber Ulaanbaatar Professional Schools Total

1997 68 129 129 126 44 79 107 0 462 54 2,216

1998 33 30 83 78 26 69 15 4 248 100 1,094

Source: Ministry of Education, Culture, and Science. 1999. Surgaltiin baiguullagiin oorchloltiin material, pp: 1920.

4. The survey on education staff rationalization was undertaken to assess the program results on the basis of teachers opinions and attitudes. The survey was conducted in Bulgan, Selenge, Orhon aimags, and Darhan, Erdenet, and Ulaanbaatar cities, with the heads of local departments of education and culture and school directors asked to provide lists of separated teachers and their current addresses prior to the OEMs departure from Ulaanbaatar. In most cases full lists of teachers and their former school addresses were provided. Using the snowball method,1 the OEM interviewed available respondents. 5. In addition, questionnaires were sent to a teacher in Dundgovi aimag, who conducted the survey in her aimag after receiving instructions by telephone. She then returned the completed questionnaires. Interviews in Tov aimag were conducted by a research assistant. Many other interviews with teachers living in localities that could not be easily accessed in person were also done by telephone. A total of 100 teachers (including 70 retrenched and 30 retained teachers) were 6. interviewed. The questionnaire for retrenched teachers included the following questions: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) C. Information about the teachers age, sex, education, and position/grade held at retrenchment; location of school; reason for accepting the retrenchment; training offered at retrenchment, its nature, and duration; remuneration of new job; life after retrenchment; main use of the monetary incentive; and opinions about the staff rationalization program.

The Survey Results

7. All retrenched teachers except five (one in Darhan, one in Bulgan, one in Dornod, one in Zavhan, and one in Tov) said they took voluntary redundancy. Their working experiences and ages varied (Table A4.2 found at the end of this appendix), but those with longer working years
1

Snowball sampling is a special nonprobability method used in cases where it may be extremely difficult or cost prohibitive to locate respondents. Snowball sampling relies on referrals from initial subjects to generate additional subjects.

Appendix 4

55

were more likely to accept the option. Notably, the best formally qualified teachers were retrenched in Bulgan, although the sample is unlikely to represent all separated teachers. Thirtythree of the 70 respondents (47%) said that they left their positions in order to improve their family life by moving into trading and other businesses. Twelve (17%) needed money for payment of their childrens higher education tuition .The third main reason (11%) for opting to leave their positions was health problems, either of teachers themselves or their family members. Other reasons for accepting retrenchment included migration, caring for grandchildren, and accommodation needs (for example, the ger of one teacher and the house of another were burned down). Other reasons included providing for a newly married son, and paying debts. Two teachers left their schools in order to teach in remote rural schools. 8. Those who wanted to get dwellings for themselves and their children were able to buy them. Tuition fees and debts were paid. However, many teachers who established businesses were unsuccessful. Thirty-nine percent of separated teachers noted that their life improved after the implementation of rationalization, but 26% of them said that their life worsened, while 22% answered that there was little difference in their lives before and after the retrenchment. 9. Half of the retrenched teachers returned to teaching at their previous or other schools (one became a kindergarten teacher) after 2 to 3 years, as the number of teacher vacancies increased. Many faced difficulties in regaining their teaching positions, however. 10. Looking back, 34 out of 70 teachers approved of the retrenchment program, while 34 did not; two saw both negative and positive aspects. 11. Those who agreed with the retrenchment noted that it was voluntary, and said that the incentives enabled teachers to improve their family lives at a time when the teachers salaries were low and loans were very hard to get. They also approved of the provision of other opportunities, such as investing in business or paying for medical treatment. 12. Those who felt that the program was ill-conceived said that rehiring was problematic, and no counseling and outplacement services were given to separated teachers who lacked any knowledge of business and other means of employment. Most of these teachers complained that they were distanced from their teaching skills; for those returning to teaching, the 3 years during which they did not teach were not included in their working years, thus affecting their pensions. Despite the established policy, the majority of them did not pay social insurance fees during these 3 years. 13. Only 5 out of the 70 said that they were provided counseling services and training (provided for by the Education Sector Development Program [ESDP]2 design), and those five were informed about social insurance, cultivation of vegetables, and opportunities in undeveloped sectors in Mongolia. The teachers family that lives in the district found that training on vegetable cultivation contributed to their income. One retrenched Russian language teacher was offered an English language training course, which could have led to employment in her school, but she did not accept it. 14. According to the 2002 report of the joint monitoring and evaluation joint teams MECS, the Education Inspection Board, and the Education Research Institute, the redundancy
2

ADB. 1996. Report and Recommendation of the President to the Board of Directors on Proposed Loans and a Technical Assistance Grant to Mongolia for the Education Sector Development Program. Manila. (Loans 1507MON[SF] and 1508-MON[SF], for a total of $15.5 million, approved on 19 December 1996).

56

Appendix 4

payments were beneficial for 99% of the released staff. While they clearly benefited financially from the payment, this limited but broad snapshot survey indicates that 4 years after the 2002 report (and 89 years after retrenchment) only half of the teachers thought the staff rationalization was a good policy, and a good option for them to have chosen. 15. Of the 30 rural and urban teachers who declined retrenchment and who participated in the survey, all said teachers in the mid-1990s were poorly paid and respected. Due to the deteriorating economic situation at the time, many parents paid little attention to their childrens education. The voluntary retrenchment program led to the loss of both dedicated and uncommitted teachers. Some schools in the center of Ulaanbaatar have now raised teacher salaries by up to 30%. Teachers from other schools said salaries had not been raised, even for teachers with good performance. 16. According to the teachers who declined retrenchment, the payments accompanying the rationalization program solved the social problems faced by many teachers. Moreover, it enabled indifferent teachers to be separated with payment. The effectiveness of the program was limited, however, because the demand for teachers rose as school conditions were restored or improved. Demand for teachers, particularly in primary schools, is increasing due to the demand for places, arising from the necessity of teaching in shifts (due to lack of school buildings) and the move from a 10-year to an 11-year school program; this will continue with the upcoming shift to a 12-year program. Table A4.2: List of Separated Teachers-Respondents
Name A. Darhan 1. B. Altantsetseg 2. B. Dejeekhuu 3. Ch. Tsend 4. D. Orsookhuu 5. B. Marusya 6. N. Erdenechimeg 7. J. Tsetsgee 8. D. Khorolgarav Age 54 60 59 62 59 58 54 46 Working Years at Sex Retrenchment F F F M F F F F 23 30 33 33 27 27 26 16 Place Where Worked in 1997/1998 School No. 3 School No. 5 School No. 3 School No. 3 School No. 3 School No. 3 School No. 9 School No. 9 Subject Russian Social Science Primary School Teacher Industrial Work and Art Physical Culture Russian Primary School Teacher Primary School Teacher Current Occupation Teacher, School No. 1 Pensioner Pensioner Pensioner Work in a Shop Pensioner Pensioner Teacher, School No. 9

B. Ulaanbaatar 1. Shurentsetseg 2. Dagiisuren 3. Altantegs

45 44 44

F F F

16 12 13

Khan uul District Mongolian Teacher, Khan uul School No. 7 Language and District School Literature No. 7 Khan uul Dstrict Primary Teacher, Khan uul School No 7 School District School Teacher No. 7 Khan uul District Foreign School No. 34 School No. 7 Language

Appendix 4

57

Name 4. Tsetsegsaihan 5. Gerelchuluun 6. Otgonkhuuhen 7. Byambasuren 8. D. Magsar 9. Ts. Baasankhuu 10. D. Alimaa 11. Ts. Javzandulam 12. D. Dulmaa 13. B. Ouyn 14. D. Urnaa 15. B. Enkhtuya 16. Ts. Altantuya 17. C. Sarangerel 18. G.Erdenchimeg

Age 44 39 54 54 64 46 45 49 46 49 40 46 37 55 53

Working Years at Sex Retrenchment F 15 F F F M M F F F F F F F F F 4 21 20 31 4 15 20 17 24 8 16 7 17 19

Place Where Worked in 1997/1998 Khan uul District School No. 7 Khan uul District School No. 7

Subject Math Primary School Teacher Math

Current Occupation Teacher, Khan uul District School No. 7 Worker at a Private Factory

Nalaikh District, Unemployed School No. 100 Nalaikh District, Mongolian Teacher, Nalaikh School No. 100 Language and District, School Literature No. 100 Suhbaatar District Physical Sell Material in School No. 25 Culture Narantuul Market Suhbaatar District Primary Doorman in School No. 25 School Monosfarm Teacher Baganuur District, Physics Teacher, High School No. 94 Amgalan Complex School School No. 49 Industrial Teacher, Work and Art School No. 49 School No. 49 Primary Teacher, School School No. 49 Teacher Baganuur District, Music Teacher, High School No. 94 Amgalan Complex School School No. 17 Foreign School No. 17 Language School No. 6 Russian Informant, Zuunii Medee Newspaper School No. 9 Mongolian Worker in Korea Language and Literature School No. 6 Physical Small-Scale Culture Trader School No. 6 Mongolian Small-Scale Language and Trader Literature Professional Math Teacher, Orhon School Complex School Jargalant Soum Mongolian Pensioner School Language and Literature Jargalant Soum Industrial Teacher, Jargalant School Work Soum School School No. 5 Chemistry Naran Complex School Professional Principle Work in the Sansar Shop in School Ulaanbaatar School No. 7 Physical Trader in a Market Culture

C. Erdenet 1. . Maygmarjav 2. Davaasuren 3. N.Jarantai 4. O. Urtnaa 5. D. Oyunchimeg 6. Gansum

59 58 43 46 47 48

M F F F F M

26 27 9 24

13

58

Appendix 4

Name D. Bulgan 1. Odsuren 2. G. Batsetseg 3. Gantuya 4. D. Dashdulam 5. Demeberldorj 6. Oyunschimeg 7. J. Purvee 8. L. Batchuluun 9. Ts. Baasan 10. N. Tsetsegmaa E. Dundgovi 1. Ouyngerel 2. D. Batkhishig 3. P. Altantsetseg 4. D. Bat-Olzii 5. D. Tsanlig 6. Yu. Bayrmagnai 7. Ts. Adyadulam 8. A. Gankhuyag F. Hotol 1. D. Tserenkhuu 2. L. Chinchuluun

Age 50 47 44 57 66 49 61 58 59 47 48 52 44 48 49 53 52 37 45 48

Working Years at Sex Retrenchment F F F F M F F F F F F F F F F M F M F M 24 18 7 25 37 16 34 27 25 16 20 24 16 9 20 22 23 12 10 4

Place Where Worked in 1997/1998 School No. 1

Subject

Current Occupation Private Business Teacher, Erdmiin Ergee Complex School Teacher, Kindergarten No. 6 Pensioner Pensioner Teacher, Erdmiin Ergee Complex School Private Business (Shop Assistant ) Pensioner Teacher, Professional School Private Business (Shop Assistant )

Primary School Teacher School No. 1 Primary School Teacher Secondary School Primary No. 3 School Teacher Secondary School Mongolian No. 3 Language and Literature School No. 1 Mongolian Language and Literature School No. 2 Industrial Work School No. 1 School No. 1 School No. 2 School No. 1 School No. 2 School No. 1 Kindergarten No. 1 School No. 2 School No. 3 School No. 2 Professional School School No. 4 School No. 13 Hotol High School Primary School Teacher Industrial Work Math Chemistry

Mongolian Teacher, School No. 1 Language and Literature Teacher, Professional School Primary Private Business School Teacher Small-Scale Private Business Math Teacher, Professional School Industrial Unemployed Work and Art Pensioner Math History Math Small-Scale Private Business School No. 13 Manager, Hotol High School

Appendix 4

59

Name 3. M.Chimgee 4. M. Purevdorj 5. B. Ragchaa G. Tov 1. N. Altantsetseg 2. D. Khishigdelger 3. D. Gantemer 4. Ts. Horoltsetseg 5. Otgonbaymba 6. Ts. Bat-orshikh 7. Yanjmaa

Age 48 62 63 56 58 52 47 44 46 54

Working Years at Sex Retrenchment F 15 M M F M F F M M F 31 35 23 20 28 19 6 3 29

Place Where Worked in 1997/1998 School No. 13 School No. 13 School No. 13 Bayanchandman Soum High School

Subject Industrial Work Math Physical Culture Math

Current Occupation Herder in GobiAltai Aimag Pensioner Pensioner Pensioner Teacher, Professional School Private Business Teacher, Bayanchandman Soum High School Private Business Private Business Unemployed

Bayanchandman Mongolian Soum High School Language and Literature Bayanchandman Mongolian Soum High School Language and Literature Bayanchandman Primary Soum High School School Teacher Bayanchandman Industrial Soum High School Work and Art Bayanchandman Music Soum High School School in Primary Zaluuchuud School Teacher Altai School in Hovd Aimag Ovorhangay, School No. 2 Dornod School No. 7 Secondary School in Tes, Zavhan Secondary School in Tes, Zavhan Secondary School in Darvi, Lhovd Hovsgol Aimag, School No. 4 Hovsgol Aimag, School No. 1

H. Other 1. Dolgorjav 2. Ts. Naymsuren 3. Bayrmaa 4. Olziibayr 5. Rolomsuren 6. Gelegmaa 7. Narantuya 8. Bayrjargal Total: 70

44 50 44 49 55 54 45 42

F F F M F F F M

15 11 15 10 30 22 7 5

Primary Unemployed School Teacher Industrial Private Business Work Primary Child Rights School Center Teacher History and Taxi Driver Geography Mongolian Unemployed Language and Literature Primary Pensioner School Teacher Music Aimag Theater Industrial Work Dressmaker

Source: Operations Evaluation Mission.

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Appendix 5

RESULTS OF FOCUS GROUPS WITH HIGH SCHOOL STUDENTS IN SELECTED SCHOOLS

A.

Purpose of the Study

1. The purpose of the focus group discussions with high school students about education in their schools was to describe changes in school education particularly natural and computer science educationafter implementation of the Education Sector Development Program (ESDP).1 Since students are chief beneficiaries of the Program, their opinions are an important aspect of its evaluation. 2. The provinces (aimags) and schools were selected to add breadth to interviews conducted by the Asian Development Bank (ADB) Operations Evaluation Mission (OEM) in October 2006 at the schools in Darhan, Erdenet cities, and Selenge aimag listed below. The OEM held discussions with the school authorities and teachers and interviews with heads of the departments of education and culture. Higher-grade students from those schools were selected for the focus group interviews, to solicit their opinions along with those of their teachers and directors. As requested by the OEM, students from an additional three rural and three Ulaanbaatar 3. schools were also interviewed. Two of these Ulaanbaatar schools are peri-urban. Amgalan complex school is situated in settlement (ger) districtswhich tend to be the most disadvantaged in urban areasin the eastern part of Ulaanbaatar. It is one of the most distant schools from the city center. School No. 17 is also situated in a settlement area in the northern part of the city, where many disadvantaged and socially challenged rural migrants live. Ganzam school is situated in the central part of the city near the railway station. Before the student interviews, the OEM briefly talked to the authorities of these six 4. schools, met natural science teachers, and visited classrooms and laboratories facilities supplied by the ESDP. The difference between these and previous visits with the formal ADB evaluation team to the laboratories was that the teachers tended to talk not only about benefits of supplied materials and equipments but also their disadvantages. All students freely talked about pros and cons of their teachers and school facilities. B. The Sample

During the first week of December 2006, 11 focus group interviews were conducted with 5. high school students in four rural schools and five schools in Darhan, Erdenet, and Ulaanbaatar cities. Students were asked to talk about natural science classes and experiments, information technology (IT), laboratory facilities and classes, as well as their opinions about the quality of education, availability of textbooks, and other issues related to their school and studies. The groups of high school students were from the following locations (Table A5.1).

ADB. 1996. Report and Recommendation of the President to the Board of Directors on Proposed Loans and a Technical Assistance Grant to Mongolia for the Education Sector Development Program. Manila (Loans 1507MON[SF] and 1508-MON[SF], for a total of $15.5 million, approved on 19 December 1996).

Appendix 5

61

Table A5.1: Sample Area Location Orhon Aimag Erdenet City Bulgan Aimag Selenge Aimag Darhan Ulaanbaatar School Samples Students of Grade 10A in Jargalant Soum high school A group consisting of 11 students from School No. 5 School No. 7 in Erdenet complex school (i) Students of Grade 8B in school No. 1; (ii) Students of Grade 11B in school no. 1; (iii) 11th grade students in the Erdmiin Ergee school. Students of Grade 11G in Hotol high school (No. 13) Students of Grade 108 in the Oyunii Ireedui complex school (i) Students of Grade 9B in the Ganzam school; (ii) Students of Grade 10B in the Ganzam school; (iii) Students of Amgalan complex school no. 17

Source: Operations Evaluation Mission.

C.

Interview Results

6. In general, all students except those in Amgalan school no. 17 and the Ganzam schools expressed satisfaction about studying at their schools. Table A5.2 summarizes the focus group discussion with students using a scale of 15 (low-high). Bulgan and Hotol school students assess their school performances favorably. Students in Ulaanbaatar schools gave a poorer assessment than students in smaller town schools. Table A5.2: Assessment of Teaching and Laboratory Experiments by Students (December 2006)
IT Student/ Education in Computer School General Teaching Experiment Teaching Experiment Teaching Experiment Teaching Ratio Jargalant Soum 3 4 4 4 3 3 4 4:1 Good School, Orhon Erdenet 4 3 4 3 4 3 34 2:1 Good Complex School, Erdenet School No. 1, 4 5 4 3 5 4 3 2:1 Very Bulgan Good Erdmiin Ergee 4 4 5 2 5 3 2 2:1 Very School, Bulgan Good Hotol School, 5 5 5 5 4 5 4 2:1 Very Selenge Good Oyunii Ireedui 5 3 4 2 5 5 3 2:1 Satisfied Complex School, Darhan Gan zam, 3 3 3 2 2 2 3 2:1 Satisfied Ulaanbaatar Amgalan 4 3 3 2 4 3 4 4:1 Satisfied Complex School, Ulaanbaatar School No. 17, 4 3 4 3 2 2 2 7:1 Satisfied Ulaanbaatar IT = information technology. Evaluation rankings: 1 = low, 5 = high. Source: Operations Evaluation Mission. Biology Chemistry Physics

62

Appendix 5

1.

Natural Science Classes

7. Ganzam school students evaluated the natural science classes, particularly their physics and chemistry classes, as poor. They use equipment and materials only once a year. In contrast to the Ulaanbaatar school students, the students of school No. 1 in Bulgan did more experiments in natural science classes than other school groups. The chemistry class in Erdmiin Ergee school in Bulgan aimag was assessed as excellent by the students, even though not a single experiment occurred during lessons. The interview with a chemistry teacher subsequently revealed that the school has no supplies for organic chemistry, which is taught for 10th and 11th grade students. In addition, she had limited chemical experiment equipment, because the storage for toxic materials was out of order. The lack of this kind of special storage equipment also restricts experiments with toxic and gaseous substances in other schools. Unexpectedly, rural school chemistry teachers did more experiments than urban ones, where schools have access to running water. 8. Interviews with teachers regarding experiments in schools showed some interesting differences from those conducted by the OEM in October 2006. In a less formal situation, with no ADB personnel present, teachers referred to the drawbacks of the materials and equipment they received through the ESDP. The equipment and materials were supplied by the Indian company Angelic International, selected by tender in 1999. 9. In the opinion of the teachers, despite their high cost, the quality and durability of some equipment supplied by the company is much poorer than the equivalent Russian and Germanmade equipment. For instance, after three or four experiments, springs in dynamometers ceased to function properly (their diameter is 7 centimeters, 16 centimeters less than the Russian dynamometers, and is consequently not visible to classroom students). Similarly, the processes demonstrated in the new apparatus for water distillation could not be observed in the classroom because the apparatus was made of white plastic materials. Furthermore, it was hard to measure the width of the color spectrum using new spectroscopes. A physics desk without a panel for experiments was provided to Amgalan complex school. Equipment and utensils lacking some parts are not uncommon. Moreover, some schools have an excess of certain materials and tools while others lack them. 2. Information Technology

10. According to the 2002 report of the joint monitoring and evaluation team from the Ministry of Education, Culture, and Science (MECS), the Education Inspection Board, and the Education Research Institute, 78.3% of survey respondents answered that they are satisfied with the capacity of computers in use. In contrast, many students interviewed through focus groups said that school computers fail to meet their needs. Computers often fail to work properly, as do mouse devices. Because the computers are slow, students cannot accomplish very much in the allocated 40 minutes. In Erdmiin Ergee complex school, students who are not achieving as well as others are not allowed to use computers. 11. Although complaints are understandable when information technology develops very rapidly, and no upgrading takes place in schools, access to computers was not the main problem (even for district [soum] school students), although the students all expressed the wish they had powerful computers in good working condition and had access to the Internet.

Appendix 5

63

3.

Textbooks and Libraries

12. The main concerns of all students were the availability of textbooks and the performance of school libraries. High school students are required to have 16 textbooks, including 710 new publications per academic year. Two years ago, school libraries rented all subject textbooks to students at a cost of MNT150 per year. 13. In 2006, the Government introduced full cost recovery policies, under which student must buy their own sets of textbooks, with schools continuing to rent older books. However, classes with 30 to 40 students in both rural and urban schools have an average of five to six textbooks per subject. 14. In one case, an entire 11th grade class with 48 students in Amgalan complex school could rent only one geometry textbook from the school library. Textbooks for geography, English, and literature are in particularly short supply. In addition, the majority of students do not buy all required new textbooks. They usually buy three to five textbooks (those that they regard as the most important) and share the remainder. The main reasons for not buying textbooks are (i) student perceptions that they are not important, homework is not checked, or the books are impossible to resell; and (ii) because of objections to their high cost. The average cost of textbooks is MNT3,0003,500, and not all families are able or want to buy them; some needed textbooks are not available in rural areas. In addition, a new Mongolian language textbook is considered to be of poorer quality than the old one. 15. School libraries work poorly. The students of Amgalan complex school and school no. 17 refer to their school libraries as book stockrooms because librarians do not allow students to use the libraries. As a result they go to libraries in their districts or to the childrens library in the center. When needed, students borrow textbooks from other students who live in their neighborhood.

64

ACHIEVEMENTS OF INVESTMENT PROJECT COMPONENT

Item Targets A. Strengthening Education Management Capabilities 1. Support to MECS and local government by developing an effective EMIS a. Staff development 1,370 staff trained on EMIS b. Provision of facilities for networking Networking equipment and software provided 2. Strengthen institutional management in higher education a. Staff development 300 senior and midlevel managers trained on education management 3. Rationalize secondary schools A mapping study that contains a systematic plan for rationalizing school structures B. Improving Quality and Coordination in Higher Education 1. Support academic network and education support services a. Academic network and library and information services Establishment of library network Achievements 5,302 staff trained Achieved

Appendix 6

857 trained Achieved

10 institutions linked to library network

Staff development

60 staff trained on academic networks and 62 librarians on library management Computers, software and learning materials provided

Provision of library materials and equipment

Academic network Erdemnet established. Initially linking 12 higher educations, it was subsequently expanded to cover more than 70 universities, colleges, and other academic institutions and 17 senior secondary schools. Under local and international programs, 194 academic network managers and 545 librarians trained under local and international training programs. 174 computers and 50 printers provided to 17 institutions. 22 libraries supplied with books printed in the Mongolian language, CD-ROM with research publications, and handbooks on library automation. Overseas training, which includes study visits to Philippines, Singapore, and the United States, provided to 15 staff of NCHEA; in-

b. Establish an accreditation system (i) Staff development

Training on education accreditation of about 60 MECS staff and overseas training for staff of accreditation body to be

Item formed provided

Targets

Achievements country training for 337 people to strengthen the operation and management of NCHEA provided. The NCHEAs office provided with furniture, computers, books (49 titles), handbooks, and periodicals. International training provided for 18 staff. A total of 1,193 persons trained in-country on curriculum and course development (500 on curriculum planning consultation, 613 on curriculum development, and 80 on course material development).

(ii) Equipment and administrative support c. Develop curricula and course

Logistic and administrative support provided International training on curriculum and course development for 10 staff provided Local training of 360 teaching staff in the universities and management development institutes (240 persons to be trained on curriculum planning consultation, 60 on curriculum development, and 60 on course material development) Masters degree in business administration and in educational administration established in selected higher education institutions

New masters degree courses were established at selected higher education institutions, including a masters of business administration course at the National University of Mongolia, a masters of education course at the State Pedagogical University, a masters of finance and economics course at the National Institute of Finance and Economics, and a masters of education course at the Academy of Management. Higher Education textbook Committee was established at the consortium of Mongolian universities and colleges.
Appendix 6

d. Develop academic staff and faculty

Training and staff development courses and workshops provided to staff (incountry training fir 420 and for overseas training for 30)

74 new higher education textbooks printed. A total of 1,582 academic staff from universities and research institutions (1,471 staff participated in in-country training and 111 in the overseas program).

65

66

Item

Targets

Achievements Management consultancy training was provided to 34 staff. A management human resource training and consultant needs survey and consultancy market study was completed in 1999. A total of 29 new textbooks published, of which 26 were secondary textbooks and teachers guides in priority subjects in grades 8, 9, and 10 and 3 were textbooks in grades 4,5,6 (in Kazakh). About 853,000 copies were printed and distributed nationwide Training programs in textbook writing, publishing, and management provided to 350 participants. Over 300 teachers participated in various workshops, organized inline with new textbook contents and teaching methods. Starting in 2006 a policy requiring parents to buy the required textbooks was introduced. A total of 10,487 teachers were provided with in-service training and 350 teachers with preservice training. Science laboratories at the NPU and NUM reequipped; these facilities were then used as a base for pre-service teacher training. Inservice teacher training centers were established at the Teacher Training College, NPU, the Education Research Institute, and education and culture centers in 22 cities and provinces and were also provided with equipment. 47 schools renovated. In addition, 41 schools were renovated utilizing the savings from the program loan.

Appendix 6

Research study on the management training and professional human requirements of local enterprises and industries completed C. Increasing the Effectiveness and Efficiency of Secondary Education 1. Develop and supply textbooks 25 secondary textbooks and teachers guides in priority subjects in grades 8, 9, and 10 developed and printed.

About 46 persons participated in in-country author-editorial workshops, 50 in incountry publishing management training, and 2 in international training on development and supply of textbooks. Cost-sharing schemes introduced at the aimag level In-service training of 1,046 teachers and pre-service training of 40 teachers provided. Science laboratories at the NPU rehabilitated and those at the NUM renovated and re-equipped.

2.

Train secondary school teachers

3.

Rehabilitate secondary schools

20 schools renovated

Item

Targets Science equipment provided to about 150 selected secondary schools.

Achievements 150 secondary schools provided with basic equipment. 20 solar batteries provided to soums and bags 860 computers were provided, with 663 distributed in 98 aimag schools and 197 in Ulaanbaatar and districts. Additional equipment funded from program loan savings included: 6,278 desks for students 470 desks for teachers 470 white and green boards 15 office computers 55 computers for training 20 printers 23 photocopy machines

EMIS = education management information system; MECS = Ministry of Education, Culture, and Science; NCHEA = National Council for Higher Education Accreditation; NPU = National Pedagogical University; NUM = National University of Mongolia. Sources: Project completion report, project documents.

Appendix 6

67

68

Appendix 7

STAFF DEVELOPMENT UNDER THE EDUCATION SECTOR DEVELOPMENT PROGRAM Within the framework of the Education Sector Development Program (ESDP),1 in 1997 1. 2002 237 local and international training programs were provided for the Ministry of Education, Culture and Science (MECS), local government officials, education managers and principals, provincial (aimag) and city education managers, methodologists, education inspectors, teachers from pre-schools and primary and secondary schools, technical and vocational education managers, and higher education institutions. A total of 21,282 people (3,134 person-months) participated in training programs 2. organized in education management, higher education management, higher education accreditation, library staff training, faculty retraining, publishing management, in-service teacher training, and pre-service teacher training. A. Strengthening Education Management Capabilities

In order to build the capacity of MECS, local governments, and education managers, 3. several training programs on education management information systems were organized in combination with the provision of computer networking equipment and information about software. These included training on education management information systems, strengthening the education system, and improving local education management. Training was provided to education managers and principals, technical and vocational education managers, pre-school education managers, local education managers and principals, aimag and city education and culture center methodologists, local education managers and principals (on Local Education Management, with 220 participants), school principals (on school management, with 783 participants), and directors of studies (on education management, etc., with 5,310 participants). International training programs were organized in Canada, Japan, the Republic of Korea, 4. Singapore, and the United States (two groups) to build the capacity of education managers. 1. Higher Education Management

5. Training programs for managers and directors of the state and private higher education institutions were carried out in the following areas, with the goal of increasing the quality of higher education management, and supporting academic networks, curriculum development and course design: (i) strengthening higher education management, (ii) financial management in higher education systems, (iii) management of masters of business administration in Mongolia, (iv) medical education management, and (v) agricultural education management. 6. To strengthen higher education management capabilities, a number of international training programs were organized in Korea, Singapore, and the United States. There were 878 participants in local and international training programs.

ADB. 1996. Report and Recommendation of the President to the Board of Directors on Proposed Loans and a Technical Assistance Grant to Mongolia for the Education Sector Development Program. Manila. (Loans 1507MON[SF] and 1508-MON[SF], for a total of $15.5 million, approved on 19 December 1996).

Appendix 7

69

2.

Higher Education Accreditation System Development

7. In order to support the establishment of an independent accreditation system for higher education and provision of quality assurance, the following in-country and international training programs were provided for 352 staff of the higher education accreditation system: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) B. workshop for the members of the National Higher Education Accreditation Commission and experts, higher education accreditation self-evaluation, higher education program accreditation, program accreditation in economics training institutions, higher education accreditation in economics training institutions, higher education accreditation theory and practice, higher education accreditation system in American universities, higher education program accreditation in Hong Kong universities, and Philippines higher accreditation council.

Library Management

8. Support was provided for secondary school libraries and 545 library managers participated in in-country and international training programs including (i) a training workshop for secondary school librarians, (ii) a training workshop for chief librarians of universities and colleges, (iii) training on library automation, (iv) a training workshop for private higher education institution librarians, (v) a regional workshop for local school librarians, and (vi) library management in Thailand (two groups). C. Teacher Training

9. In-Service Teacher Training. This was one of the main components of the ESDP. A total of 10,534 primary and secondary school teachers participated in the following national and regional in-service training programs: (i) (ii) (iii) (iv) nationwide training workshop for directors of studies of secondary schools and senior methodologists on Training Technology Reform (679 participants); nationwide training workshop for secondary school training methodologists on Inter-relations in Teaching Different Subjects and Teachers Cooperation (1,456 participants); nationwide training workshop for secondary school curriculum directors and methodologists on Training Methodology (1,276 participants); nationwide training workshop for primary and secondary school teachers and methodologists on Reform on Training Methodology and Approaches of Chemistry, Geography, Physics, Mathematics, Mongolian Language and Literature, Music, Design and Fine Arts Teaching, and Primary School Teachers (4,121 participants); training courses for teachers of informatics (388 participants); nationwide training course for English language teachers (351 participants); training courses on Primary and Secondary Education Standards and Design (393 participants); and training on social sciences, ecology, and other subjects (1,870 participants).

(v) (vi) (vii) (viii)

70

Appendix 7

10. Faculty Retraining. For improving the quality of public and private higher education institutions and developing new and more relevant curricula, the following in-country and international training programs were provided in public administration, banking, finance and business management, economics and marketing, accounting, and medical and agricultural education: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) core curriculum for a masters degree program in business; training workshop in economics; workshop for university teachers of marketing; training workshop for university teachers of accounting; curriculum content development in business and economics education; curriculum content development in biology education; curriculum content in management education; improvement of management education contents and curriculum; and international training (in Canada, France, Germany, Singapore, and the United States) in finance and economics, mining, geology, energy, light industry technology and design, culture and arts, and linguistics.

11. Publishing Management and Author/Editorial Workshops. The main objective of publishing management and author/editorial training workshops was to strengthen publishing management capacity, textbook development, and manuscript preparation activities. Training workshops were carried out on (i) planning and writing books for teachers; (ii) textbook policy, publishing, and design; and (iii) textbook manuscript preparation for primary and secondary schools and higher education institutions (260 participants). 12. Pre-Service Teacher Training. In-country and international training workshops were organized for pre-service teacher-trainers in the following areas: (i) (ii) (iii) (iv) (v) Education Studies and Teacher Training System for teachers at pedagogical universities and colleges, development of pre-service teacher training, training for local (Arhangay, Dornod aimags) college teachers, Quality of Education and Teachers Development, and international training at the Pedagogical University in Germany (382 participants).

13. The training courses were conducted by (i) the professors and teachers of the National University of Mongolia, Pedagogical University, and other universities and colleges; (ii) experienced secondary school teachers; (iii) scientists from the Education Research Institute; and (iv) international consultants. 14. As a result of the workshops, a number of national and local teacher-trainers were trained. International training programs were also provided in the areas of education management, higher education accreditation, library management, geology, mining, and light industry education for 210 education personnel at universities in Australia, Canada, England, France, Germany, Japan, Korea, Philippines, Singapore, Thailand, and the United States. All training participants gave positive evaluations of these training courses. During the 15. training workshops, monitoring and evaluation was carried out by MECS, State Education and Culture Inspection Board, and the National Inspection Board.

Appendix 8

71

RESULTS OF FOCUS GROUPS WITH PARENTS OF HIGH SCHOOL STUDENTS IN SELECTED SCHOOLS

A.

Purpose of Study

1. Parents opinions regarding their childrens education and their perceptions of school performance are important for evaluation of the Education Sector Development Program (ESDP),1 as well as for the development of other education related projects and programs. Discussions with parents were held regarding their satisfaction with the general quality of service provided to their children by schools, their concerns and hopes, and changes that occurred during the last several years. B. Method

2. Interviews were held with parents in Darhan and Erdenet cities, and Selenge province (aimag). Conducting focus group interviews with parents was challenging; generally only two or three parents attended meetings, despite being informed 12 days prior to the meetings. Only Erdenet complex school managed to gather parents for interviews. Therefore, the Operations Evaluation Mission (OEM) went to markets, shops, and offices in Darhan, Hotol, Jargalant, and Bulgan and conducted semi-structured interviews with parents who have high school children. In the above-listed Ulaanbaatar schools, focus-group interviews with parents were held following meetings organized by the schools to address other school-related issues. C. Interview Results

3. Parents indicated that while the content of the school program is broader and more difficult than it was 10 years agoleaving them unable to help primary and secondary school children with their homeworkthey doubted whether the quality of school education has improved. In Bulgan soum, parents said they are satisfied with the performance of educators in both high schools. Teachers in Bulgan schools are dedicated and school graduates over the last two years obtained good results. Parents opposed concealment of grades using codes, however (previously, grades awarded to each student were transparent). In the opinion of parents, the use of codes encourages corruption in high schools, which has become a highly controversial issue within the entire education system. 4. Parents in Hotol and Darhan were also satisfied with the education in the schools. According to Hotol parents, the conditions and school environment have improved, but the behavior and etiquette of students has worsened, suggesting disciplinary problems. 5. The most complaints came from Erdenet city and Jargalant district (soum) parents. In contrast to students, parents in Jargalant think that the quality of education in the Soum School is poor, due to the shortage of knowledgeable and professional teachers. 6. The shortage of textbooks was mentioned as a problem. Because of the high rate of unemployment in this soum, many parents are unable to purchase textbooks. Well-to-do parents want to buy all required textbooks, but there are insufficient supplies of high-demand
1

ADB. 1996. Report and Recommendation of the President to the Board of Directors on Proposed Loans and a Technical Assistance Grant to Mongolia for the Education Sector Development Program. Manila (Loans 1507MON[SF] and 1508-MON[SF], for a total of $15.5 million, approved on 19 December 1996).

72

Appendix 8

books. When additional supplies are ordered, the textbooks take about 6 months to arrive. Parents in Erdenet expressed their concern about the quality of new textbooks, and also the performance of computer laboratories and school libraries. In Ulaanbaatar, both parents and teachers felt that the quality of content of new textbooks for arithmetic, reading, and music was worse than that of the older textbooks. 7. Parents of peri-urban school students in Ulaanbaatar felt that the skills and knowledge of teachers in the schools are poorer than those of teachers appointed to central schools. In addition, some parents expressed concerns about the behavior of some teachers, and in particular about the discriminatory attitude shown by teachers towards students who were rural immigrants. However, by their own admission, only one third of parents interviewed paid attention to school matters and education. No parents had visited the school libraries and laboratories. Parents main concerns were the state of school hygiene and behavior of the students: they indicated that more sinks were needed in the schools, particularly with implementation of the school lunch program. Both students and parents of school No. 17 complained that the condition and hygiene of the school were unacceptable. In fact, Hotol and all Ulaanbaatar schools had cases of hepatitis at the time of the interview.

Appendix 9

73

ASSESSMENT OF OVERALL PROGRAM PERFORMANCE A. Program Loan 1. Support the Ministry of Education, Culture, and Science and Local Governments Weight (%) Criterion Assessment Rating Value Weighted Rating Relevance 20 Highly Relevant 3 0.6 Effectiveness 30 Highly Effective 3 0.9 Efficiency 30 Highly Efficient 3 0.9 Sustainability 20 Likely Sustainable 2 0.4 Overall Rating Highly Successful 2.8 2. Rationalize Education Sector Facilities Weight (%) Criterion Assessment Relevance 20 Highly Relevant Effectiveness 30 Highly Effective Efficiency 30 Highly Efficient Sustainability 20 Most Likely Overall Rating Highly Successful

Rating Value 3 3 3 3

Weighted Rating 0.6 0.9 0.9 0.6 3.0

3. Rationalize Education Sector Staffing Weight (%) Criterion Assessment Rating Value Relevance 20 Relevant 2 Effectiveness 30 Effective 2 Efficiency 30 Highly Efficient 3 Sustainability 20 Less Likely Sustainable 1 Overall Rating Successful

Weighted Rating 0.4 0.6 0.9 0.2 2.1

4. Introduce Cost-Sharing in Secondary Education Textbook Publishing and Decentralize Textbook Distribution Weight (%) Criterion Assessment Rating Value Weighted Rating Relevance 20 Highly Relevant 3 0.6 Effectiveness 30 Highly Effective 3 0.9 Efficiency 30 Highly Efficient 3 0.9 Sustainability 20 Likely Sustainable 2 0.4 Overall Rating Highly Successful 2.8 5. Develop a Policy Framework on Technical Education and Vocational Training (TEVT) Weight (%) Criterion Assessment Rating Value Weighted Rating Relevance 20 Highly Relevant 3 0.6 Effectiveness 30 Highly Effective 3 0.9 Efficiency 30 Efficient 2 0.6 Sustainability 20 Likely Sustainable 2 0.4 Overall Rating Successful 2.5

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Appendix 9

6. Promote Private Sector Provision of Education and Privatization of Higher Education Weight (%) Assessment Rating Value Weighted Rating Criterion Relevance 20 Highly Relevant 3 0.6 Effectiveness 30 Highly Effective 3 0.9 Efficiency 30 Efficient 2 0.6 Sustainability 20 Likely Sustainable 2 0.4 Overall Rating Successful 2.5 7. Promote the Development and Use of Selected Quality Assurance Mechanisms for Higher Education Weight (%) Assessment Rating Value Weighted Rating Criterion Relevance 20 Highly Relevant 3 0.6 Effectiveness 30 Highly Effective 3 0.9 Efficiency 30 Highly Efficient 3 0.9 Sustainability 20 Likely Sustainable 2 0.4 Overall Rating Highly Successful 2.8 8. Promote Performance Management in the Education Sector Weight (%) Criterion Assessment Rating Value Relevance 20 Highly Relevant 3 Effectiveness 30 Highly Effective 3 Efficiency 30 Highly Efficient 3 Sustainability 20 Likely Sustainable 2 Overall Rating Highly Successful Overall Program Loan Rating Weight (%) Criterion Relevance 20 Effectiveness 30 Efficiency 30 Sustainability 20 Overall Rating

Weighted Rating 0.6 0.9 0.9 0.4 2.8

Assessment Highly Relevant Highly Effective Highly Efficient Likely Sustainable Highly Successful

Rating Value 3 3 3 2

Weighted Rating 0.6 0.9 0.9 0.4 2.8

B. Investment Project 1. Strengthening Education Management Capabilities Weight (%) Criterion Assessment Relevance 20 Highly Relevant Effectiveness 30 Highly Effective Efficiency 30 Highly Efficient Sustainability 20 Likely Sustainable Overall Rating Highly Successful

Rating Value 3 3 3 2

Weighted Rating 0.6 0.9 0.9 0.4 2.8

Appendix 9

75

2. Improving Quality and Coordination in Higher Education Weight (%) Assessment Rating Value Criterion Relevance 20 Highly Relevant 3 Effectiveness 30 Highly Effective 3 Efficiency 30 Efficient 2 Sustainability 20 Likely Sustainable 2 Overall Rating Successful

Weighted Rating 0.6 0.9 0.6 0.4 2.5

3. Increasing the Effectiveness and Efficiency of Primary and Secondary Education Weight (%) Criterion Assessment Rating Value Weighted Rating Relevance 20 Highly Relevant 3 0.6 Effectiveness 30 Highly Effective 3 0.9 Efficiency 30 Highly Efficient 3 0.9 Sustainability 20 Likely Sustainable 2 0.4 Overall Rating Highly Successful 2.8 Overall Investment Project Rating Weight (%) Criterion Assessment Relevance 20 Highly Relevant Effectiveness 30 Highly Effective Efficiency 30 Highly Efficient Sustainability 20 Likely Sustainable Overall Rating Highly Successful

Rating Value 3 3 3 2

Weighted Rating 0.6 0.9 0.9 0.4 2.8

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BASIC EDUCATION INDICATORS, 19962005 Item 19901991 19951996 19961997 19971998 19981999 19992000 20002001 20012002 20022003 20032004 20042005 A. Education Expenditure 23,377.2 31,814.6 44,486.9 58,622.2 64,811.4 77,729.4 95,415.5 99,316.9 111,288.6 136,263.3 1. Education Budget Expenditure (MNT million) 140,900.0 160,000.0 212,000.0 225,500.0 254,800.0 351,083.7 439,290.0 477,049.0 535,795.0 580,930.8 2. State Budget Income (MNT million) 3. Educational Industry in the State Budget 16.6 19.9 21.0 26.0 25.4 22.1 21.7 20.8 20.8 23.5 Income (%) B. Institutional and Enrollment Indicators 1. Kindergartens a. Number of Nursery Schools b. Number of Children Annual Rate of Change (%) c. Number of Teachers/Nurses d. Children-Teacher Ratio 2. General Education Schools (GES) a. Total Number of GES b. Of Which are Private Schools % of Total GES c. Number of Students Annual Rate of Change (%) d. Average Number of Students/School e. Average Number of Students/Class f. Percentage of Dropouts g. Number of Teachers h. % of Teachers with a Higher Education Degree i. Student-Teacher Ratio j. Breakdown of GES Students i. Grades 14 ii. Grades 58 iii. Grades 910 k. Gross Enrollment Rate (GER) in Primary Schools (%) l. GER in Basic Education (Grades 1-8, %) 3. Higher Education Institutions (HEIs) a. Total (Public and Private) i. Number of HEIs ii. Number of Students Annual Rate of Change (%) iii. Number of Teachers iv. Student-Teacher Ratio b. Public HEIs (Universities, Institutes, and Colleges) i. Number of Public HEIs ii. Number of Students Annual Rate of Change (%) 632

Appendix 10

660 64,086 2,004 32 664 0 0.0 403,847 608 4.3 19,411

667 67,972 6.1 2,998 23 658 2 0.0 418,293 3.6 636 29.5 3.5 20,090 88 20.8 234,193 126,088 58,012

660 70,000 3.0 2,985 23 645 17 3.0 435,061 4.0 675 30.3 3.9 18,511 88 23.5 244,815 134,504 55,778 102.2 82.3

658 73,955 5.7 3,015 25 630 20 3.0 447,121 2.8 710 30.8 2.5 18,118 91 24.7 251,476 161,520 34,125 102.9 87.6

650 78,630 6.3 2,986 26 668 50 7.0 470,038 5.1 704 31.3 2.9 18,502 91 25.4 253,441 179,307 37,290 103.8 90.6

653 79,294 0.8 3,056 26 683 77 11.0 494,544 5.2 724 31.7 2.8 19,223 92 25.7 249,950 195,511 49,083 96.6 88.6

665 83,578 5.4 3,177 26 700 84 12.0 510,291 3.2 729 31.6 2.2 20,053 91 25.4 241,258 212,391 56,642 101.9 92.6

655 87,711 4.9 3,257 27 688 95 14.0 527,931 3.5 767 33.2 2.3 20,752 96 25.4 237,777 224,535 65,619 103.2 96.4

687 90,215 2.9 3,267 28 686 103 15.0 537,398 1.8 783 32.8 2.1 20,792 96 25.8 232,400 232,000 73,000 103.5 98.0

696 82,674 (8.4) 3,424 24 710 124 17.0 546,844 1.8 770 32.5 2.0 21,458 92 25.5 247,700 230,900 78,700 102.4 97.6

440,986 698

20,629

21.4

20.8

105.8 98.7

93.4 84.3

95.3 82.4

70 38,097 3,076 12

80 43,052 13.0 3,205 13

86 49,634 15.3 3,416 15

104 65,272 31.5 4,186 16

118 74,025 13.4 5,008 15

172 84,970 14.8 4,910 17

171 90,246 6.2 5,251 17

178 98,031 8.6 5,650 17

176 108,268 10.4 5,962 18

178 123,824 14.4 6,309 20

29 29,167

29 31,191 6.9

29 35,229 12.9

33 46,185 31.1

36 51,050 10.5

38 56,906 11.5

41 60,382 6.1

42 66,834 10.7

47 74,134 10.9

49 84,041 13.4

Item iii. Number of Teachers iv. Student-Teacher Ratio c. Private HEIs i. Number of Private HEIs ii. Number of Students Annual Rate of Change (%) iii. Number of Teachers iv. Student-Teacher Ratio 4. Vocational Schools a. Number of Vocational and Specialized Secondary Schools b. Number of Students Annual Rate of Change (%) c. Number of Teachers d. Student-Teacher Ratio

19901991 19951996 19961997 19971998 19981999 19992000 20002001 20012002 20022003 20032004 20042005 2,693 2,683 2,799 3,261 3,531 3,455 3,655 3,882 3,999 4,187 11 12 13 14 14 16 17 17 19 20 41 8,930 383 23 51 11,861 32.8 522 23 57 14,405 21.4 617 23 71 19,087 32.5 925 21 82 22,975 20.4 1,477 16 134 28,064 22.2 1,455 19 130 29,864 6.4 1,596 19 136 31,197 4.5 1,768 18 129 34,134 9.4 1,963 17 129 39,783 16.5 2,122 19

34 7,987 495 16

33 11,308 41.6 767 15

38 12,320 8.9 742 17

38 11,650 (5.4) 656 18

39 11,245 (3.5) 805 14

36 12,177 8.3 865 14

32 15,051 23.6 843 18

31 19,493 29.5 955 20

32 21,574 10.7 1,098 20

35 21,911 1.6 1,160 19

( ) = negative. Sources: (i) National Statistical Office. 1999, 2002, and 2005. Mongolian Statistical Yearbook . Ulaanbaatar. (ii) Ministry of Education, Culture and Science through the Education Finance Team.

Appendix 10

77

78

Appendix 11

RURAL AND URBAN ISSUES IN EDUCATION SECTOR PLANNING 1. The following discussion contextualizes issues in relation to the future of rural and urban education sector planning in Mongolia. A. Historical Trends

2. The pastoral industry constitutes Mongolias economic base. In the pre-Soviet era, Mongolia was divided into defined territories under semi-feudal and Buddhist ecclesiastical control. Aristocratic clans owned large herds and were served by poorer herding families, but most of those who so served also owned small herds. Monasteries, aristocrats, and state officials extracted rents but did not control production. The organizational basis of the subsistence pastoral economy was herding camps (khot ail) of varying sizes, comprising groups of households, who were often but not necessarily related by marriage or blood, and who acknowledged a common leader. Each member household within this loose territorial corporation owned their own livestock, with herds typically comprising sheep, goats, cattle (including yaks in some areas), camels, and horses. The basis of inter-household cooperation within herding camps was to achieve an economy of scale in labor-intensive activities. 3. Collectivization was enforced during the Soviet era (19291991), with early attempts ending in disaster and a huge loss of livestock. From 1932 onwards, the approach was more gradual, with the establishment of voluntary, territory-based collectives. Over time these became more dependent on the state for technical, economic, and social services, with risk transferred from families to the state. Over the same period, industrial manufacturing and mining towns were established in most provinces (aimag) in various parts of the country, all linked to a Soviet-wide system of production. 4. District (soum) centers functioned as centers for the provision of education and other services for the collectives at brigade or subdistrict (bag) level. As was the case in some of the smaller United States-administered island states of the north Pacific, Mongolias economy, and the provision of education and health services to the whole population, was heavily subsidized because of its strategic importance to the Soviet Union. 5. Following 1991, the collective model was abandoned. Individuals were permitted to buy animals via a coupon system and large numbers of families returned to small-scale subsistence herding, some by choice and preference, and others because they had no other means of supporting themselves. Although many rural people had lost skills as a result of collectivization, herding camps re-emerged as a basis of organization, although the traditional solidarity and leadership of these units was weaker than in the past.1 6. Without Soviet subsidies, poverty has become widespread, both in the countryside and in those towns that now lack an economic basis for their existence. Many small-scale herders found it hard to survive, and there have been episodes of drought and severe storms leading to large losses of livestock. The more entrepreneurial herders or those with capital, access to better land resources, and larger herds have formed private corporations, often specializing in particular products (such as dairy products, meat, cashmere wool, and leather) and employing wage labor. Others have formed companies specializing in growing summer crops of grain, vegetables, and stock feed. It is evident that small-scale subsistence pastoralism is declining
1

Mearns, Robin. 1995. Community, Collective Action and Common Grazing: the Case of Post-Socialist Mongolia. Brighton, UK: University of Sussex Institute of Development Studies.

Appendix 11

79

and a large-scale commercial grazing industry is beginning to develop, requiring new land policies, clarification of land rights, and land management policies and practices.2 7. When the Education Sector Development Program (ESDP)3 was designed in 19931996, more than half of the population was living outside urban centers. Between 1990 and 2000, the population of Ulaanbaatar increased by 27%. The 2000 census showed that the rural proportion had declined to 43% and that rural to urban migration was increasing, particularly in Ulaanbaatar. Now at least one third of the population in Ulaanbaatar and the smaller cities of Darhan and Erdenet are migrants from rural areas. B. Perspectives on Future Priorities for Education

8. The Operations Evaluation Mission (OEM) discerned two points of view among Mongolians and donors with respect to the needs of the education sector in relation to demographic trends. The first emphasizes the need to invest in more and better quality rural services to encourage Mongolians to remain within the traditional nomadic pastoral economy. This strategy, it is assumed, would reduce unemployment, encourage self-reliance, and preserve traditional Mongolian cultures. It is based on the underlying assumption that rural to urban migration is more related to pull factors, such as gaining access to better urban education (and health) services. In this view, policy should not encourage investment in more high-quality urban school buildings, and resources should be spread more equally between rural and urban areas. 9. The second point of view holds that Mongolia cannot afford to spread its investment in education too widely or thinly, while still maintaining good-quality educational outcomes. Instead, investment should be in the larger, better-quality schools in urban centers, selected because of their long-term economic growth prospects. This perspective is based on the assumption that rural to urban migration is more related to push factors (e.g., rural poverty, lack of opportunity, and economic insecurity). It also assumes that small-scale subsistence pastoralism increased in the 1990s in response to short-term economic transition shocks, and is likely to continue to decline as the agricultural economy becomes more commercialized and specialized, and as the national economy moves to more solid policy foundations. 10. Based on its observations, the OEM is inclined to the second viewpoint, but recognizes that there are difficult issues to be addressed. The social trend is from a rural to an urban way of life, as well as the (now well advanced) transition from a centrally planned to a market economy.

2 3

Hanstad, Tim and Jennifer Duncan. 2001. Land Reform in Mongolia: Observations and Recommendations. Seattle, Washington: Rural Development Institute. ADB. 1996. Report and Recommendation of the President to the Board of Directors on Proposed Loans and a Technical Assistance Grant to Mongolia for the Education Sector Development Program. Manila. (Loans 1507MON[SF] and 1508-MON[SF], for a total of $15.5 million, approved on 19 December 1996).

80

Appendix 11

11. Table A11.1 (at the end of this appendix) shows the financing of schools by region and aimag. The proportion of students per school is highest (with lower costs per pupil) in Ulaanbaatar and the northern region, which includes the major towns of Darhan and Erdenet. The central (excluding Ulaanbaatar), southern, and western regions, which have higher costs per pupil, encompass predominantly rural provinces. These figures suggest that the allocation of resources favors rural regions, although these figures do not indicate the quality of school buildings and services in the different regions. 12. According to the 2000 census, enrollment in urban areas is higher (96%) than in rural areas (85%), but urban growth has continued to increase over the past 6 years. Most urban schools are severely overcrowded due to rural-urban migration; their boarding dormitories operate at overcapacity and must turn away rural children because of a lack of space. Most schools teach two shifts, and in Ulaanbaatar, three shifts are typical. In many instances primary, secondary, and senior secondary students must use the same classrooms in different shifts. The rooms tend to be set up for the secondary rather than primary students, and often do not provide a suitable learning environment for younger childrenfor example, desks are too big for junior primary students and sometimes too small for senior secondary students. 13. The definitions of rural and urban are also unclear in national statistics (Table A11.2). Most nomadic herders move seasonally within a defined area and can therefore be associated with bag, soum and aimag, and counted as a member of their resident populations.4 The rural population appears to include the populations of small district towns as well as those living in the countryside, and refers to both sedentary and non-sedentary population groups. Further, in most small district towns, the sedentary population is there to provide services for both the townspeople and the larger non-sedentary population of the countryside. 14. Now that urban children may commence grade 1 at 6 or 7 years of age,5 the question will arise as to how rural children will be served in an equal, socially-effective and cost-effective manner. In the past, rural kindergarten education was linked to collectives at subdistrict (bag or brigade) level, and some children wereand still are, although in declining numberstaken as weekly boarders at age 4 in kindergartens. Throughout the country, children entered grade 1 at age 8; presumably because this was the youngest age at which children could be separated from their families for long periods, and it is still the age at which most rural children start primary school. Education services at bag level are declining. 15. At schools with attached boarding facilities visited by the OEM, managers said that overcrowding was a major problem. The managers of provincial and district schools serving rural populations said that they now allocate dormitories to children on the basis of kinship and common locality rather than by sex and age, to reduce the impact of boarding on young children. But even this strategy is unlikely to meet the psychological needs of children under the 9 years of age. C. Case Study of a Subdistrict School

16. The situation of bag-level education is illustrated by a functioning bag school visited by the OEM in November 2006. The school had one dilapidated building divided into four classrooms and four dormitories, serving 75 children enrolled in grades 15, as well as a separate kitchen,
4 5

The resident population is defined as the number of population living in the current place of residence within 6 months. National Statistic Office of Mongolia. 2006. Mongolian Statistical Year Book 2005. Ulaanbaatar. Children in grades 1 and 2 must be provided with lunch by their school.

Appendix 11

81

and a dormitory for the teachers. The school had a small generator and a solar panel allowing electric lights, as well as a television set, DVD player, and a computer (gifts to the school) to be used for a few hours each evening.6 It had no piped water or indoor toilets. 17. About 45 children were boarders, housed in four rooms each designed to accommodate four children, but instead accommodating 810 children each. The non-boarding children lived with their families in or near the bag center, or were educated by non-formal or distance education means. The latter groups of children attended school when their families were within traveling distance, and otherwise studied at home, following lessons and exercises set by the teachers. 18. The school is the mainstay of the bag economy, employing five teachers (including the school principal), one bookkeeper, three heating workers, two dormitory supervisors, one cook and two cleanersa total of 14 people with a teacher-pupil ratio of 1:15, and an overall staff-student ratio of close to 1:5. The annual cost per student was T84,000 (approximately $75) according to the principal, which means that the schools recurrent annual operating cost was around $5,550, which appears too low for the situation observed, and is assumed therefore to be exclusive of wages and salaries. The Ministry of Education, Culture, and Science (MECS) has a complicated system of funding primary and secondary education servicesfinancial allocation to each province is based on staff, wages, and enrolments.7 19. The teachers considered themselves, the students, and the school comparatively fortunate. Most similar bag schools have closed. Their school had survived because of the strong support of the local community, and because it was only about 50 kilometers from the aimag town center. The oldest teacher said that conditions at the school in the past 8 years had been better than anything she had experienced in 20 years of teaching. The school indirectly supported about 10 households in the bag center. If there was no local community in the subcenter, no teachers would serve there.

6 7

The school also had a two-way radio, but there was no radio to communicate with in another location. Batchimeg, et. al. 2004. Analysis Made with Respect to the Management, Financing and Budget Performance in the Area of Education. Study Report 20002004. Ulaanbaatar (translated from Mongolian).

82 D.

Appendix 11

A Future-Oriented Strategy

20. The strategies underlying the ESDP and the Second Education Development Project8 (addressing urgent short-term physical needs through school renovations) and the Third Education Development Project9 (improving the quality of instruction) are important. The question is how ADB and other donors might best assist the Government to effectively serve the large numbers of people experiencing these socially painful changes.10 Donor and government consensus, and donor coordination and harmonization of assistance programs are needed to develop and support distinct future-oriented urban and rural education strategies 21. The strategy for urban educational development should focus on the replacement of old school buildings with large durable, modern, energy-efficient new school buildings, on the understanding that there will be further consolidation of school management (following the ESDP complex school model). The development focus should be on Ulaanbaatar and selected aimag canters where the population and economy is growing and is likely to continue to grow long term. 22. In rural aimag, soum, and bag, future investment should be on the provision of highquality kindergarten and primary education, distance education and improved communication technology, teacher-manager incentives, and supportive mobile services, with less emphasis on school buildings and more emphasis on home-based education. This would provide the flexibility needed in a rapidly changing pastoral economy, and would avoid the psychologically undesirable necessity of sending the children of nomadic herders aged less than 9 years to boarding schools. Schools and boarding dormitories for secondary students should be selectively renovated depending on the cost efficiency of the educational services in relation to current and projected population trends.

ADB. 2002. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to Mongolia for the Second Education Development Project. Manila (Loan 1908-MON(SF), for $14 million, approved on 6 August 2002). 9 ADB. 2006. Report and Recommendation of the President to the Board of Directors on a Proposed Loan and Technical Assistance Grant to Mongolia for the Third Education Development Project. Manila (Loan 2238MON(SF), for $13 million, approved on 21 June 2006). 10 An additional challenge is helping Mongolians adjust to the inevitable transition from a system of social relations produced by the conditions of small-scale herding to an urban way of life based on large-scale production and publicly trusted but impersonal institutions. In classical sociological theory, the symptoms of such transition are termed anomie, a distressing break-down in normative values and social relations, typical of societies undergoing mass transition to from small- to large-scale organization. These symptoms are very evident in Mongolia today.

Table A11.1: Resident Population, Number of Households, Schools, Students, and Cost By Education Administration Region, 2004
Average Number of School Students 649 685 579 643 865 1,121 790 Current Costs Per Pupil (MNT) 130.6 124.3 140.8 129.8 120.2 101.2 119.0 Number of Cost of Boarding Boarders School per School (MNT) Children 16,815 77.7 3,459 102.0 3,370 112.1 9,222 5,720 1,105 39,691 97.0 96.3 35.6 88.7

Education Administration Region Western Region Eastern Region Southern Region Central Region Northern Region Ulaanbaatar Total

Resident Population 495,400 201,500 161,500 357,800 388,400 928,500 2,533,100

% Urban 28.0 39.2 35.8 18.9 58.3 100.0 59.1

Number of Students 116,193 45,189 34,726 74,613 93,398 182,725 546,844

Number of Schools 179 66 60 116 108 163 692

Total Current Costs (MNT) 15,170,074 5,615,088 4,890,259 9,686,181 11,225,663 18,487,777 65,075,042

Source: Summarized from data provided by the Ministry of Education, Culture and Science. 2005.

Appendix 11

83

84

Table A11.2: Resident Population, Number of Households, Schools, Students, and Cost by Province, 2004
Average Number Number Number of of Resident % Students School of Population Urban Schools or Pupils Children 101,200 30.2 37 23,019 622 83,800 60,900 80,700 81,000 87,800 495,400 73,700 71,200 56,600 201,500 12,300 52,500 49,900 46,800 161,500 94,900 60,800 113,200 88,900 357,800 100,800 121,400 27.6 29.5 19.9 27.6 32.6 28.0 50.5 42.3 20.7 39.2 58.5 52.3 19.9 28.4 35.8 18.6 26.3 18.3 15.1 18.9 49.3 28.7 28 28 33 30 23 179 25 26 15 66 5 19 19 17 60 34 24 28 30 116 34 32 19,293 14,342 18,015 20,258 21,266 116,193 16,983 15,814 12,392 45,189 2,898 11,140 10,109 10,579 34,726 20,435 12,499 23,384 18,295 74,613 22,777 26,535 689 512 546 675 925 649 679 608 826 685 580 586 532 622 579 601 521 835 610 643 670 829 Number of Boarding School Children 4,044 2,141 3,153 3,057 2,703 1,717 16,815 885 1,375 1,199 3,459 43 709 1,059 1,559 3,370 2,627 1,878 2,943 1,774 9,222 1,019 3,979 Current Total Costs Per Current Costs Pupil 2,957,737 128.5 2,300,221 2,296,816 2,506,684 2,561,716 2,546,899 15,170,074 1,969,202 1,889,155 1,756,730 5,615,088 434,385 1,523,050 1,292,111 1,640,713 4,890,259 2,498,121 1,835,567 2,724,664 2,627,830 9,686,181 3,171,337 3,186,065 119.2 160.1 139.1 126.5 119.8 130.6 116.0 119.5 141.8 124.3 149.9 136.7 127.8 155.1 140.8 122.2 146.9 116.5 143.6 129.8 139.2 120.1 Fixed Costs Fixed Per Costs School 554,799 14,995 437,599 696,650 393,488 461,491 569,332 3,113,359 316,830 436,027 513,406 1,266,263 142,253 463,255 255,399 369,131 1,230,036 512,761 433,682 485,437 807,740 2,239,620 1,005,276 490,991 15,629 24,880 11,924 15,383 24,754 Costs of Children Per Meals Boarding Cost School 292,396 72 213,128 266,393 151,242 237,380 145,572 100 85 50 88 85 78 124 84 107 102 131 123 98 116 112 110 103 87 88 97 98 97

Appendix 11

Province, Capital City Bayan-Ulgii Bayanhongor Gobi-Altai Zavhan Uvs Hovd Western Region Dornod Hentiy Suhbaatar Eastern Region Govisumber Dornogobi Dundgovi Umnugobi Southern Region Arhangay Bulgan Uvurkhangai Tuv Central Region Selenge Khuvsgul

Unit Variable Variable Costs Cost 2,110,542 92 1,649,494 1,333,773 1,961,954 1,862,845 1,831,995 10,750,603 1,542,941 1,338,236 1,114,793 3,995,970 286,491 972,334 932,511 1,091,275 3,282,611 1,696,590 1,208,022 1,983,593 1,663,781 6,551,986 2,066,529 2,310,444 86 93 109 92 86 93 91 85 90 88 99 87 92 103 95 83 97 85 91 88 91 87

17,393 1,306,111 12,673 16,770 34,227 19,186 28,451 24,382 13,442 21,714 20,501 15,081 18,070 17,337 26,925 19,307 29,567 15,344 109,431 114,892 128,531 352,855 5,642 87,462 104,202 180,307 377,612 288,771 193,863 255,634 156,308 894,575 99,532 384,630

Province, Capital City Darhan-Uul Orhon Northern Region Ulaanbaatar Total

Average Number Number of of Number Resident % of Students School Population Urban Schools or Pupils Children 87,800 80.1 25 22,161 886 78,400 388,400 928,500 2,533,100 91.3 58.3 100.0 59.1 17 108 163 692 21,925 93,398 182,725 546,844 1,290 865 1,121 790

Number of Boarding School Children 531 191 5,720

Current Costs Total Current Per Pupil Costs 2,435,454 109.9 2,432,808 11,225,663 111.0 120.2 101.2 119.0

Fixed Costs Fixed Per Costs School 445,313 17,813 415,371 2,356,950 3,077,643 13,283,872 24,434 21,824 18,881

Costs of Children Per Meals Boarding Cost School 48,101 91 18,583 550,847 39,367 97 96 36 89

Unit Variable Variable Costs Cost 1,942,040 88 1,998,853 8,317,866 15,370,767 48,269,803 91 89 84 88

1,105 18,487,777 39,691 65,075,042

19,196 3,521,367

Source: Batchimeg, et. al. 2004. Analysis Made with Respect to the Management, Financing and Budget Performance in the Area of Education. Study Report 20002004. Ulaanbaatar (translated from Mongolian).

Appendix 11

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86

UNIVERSITIES, INSTITUTIONS OF HIGHER EDUCATION, AND COLLEGES, BY LOCATION

Appendix 12 Academic Year 20002001 20012002 20022003 20032004 20042005 Locations Locations Locations Locations Locations Total Ulaanbaatar Aimag Total Ulaanbaatar Aimag Total Ulaanbaatar Aimag Total Ulaanbaatar Aimag Total Ulaanbaatar Aimag

Item Number of Universities, Higher Educational Institutions and Colleges State Of which, Private

172

135

37

178

135

43

185

143

42

183

141

42

184

142

42

38 134

25 110

13 24

41 130

23 105

18 25

42 136

23 114

19 22

48 128

28 107 6

20 21 1

49 129 6

28 109 5

21 20 1

Foreign School 0 0 0 7 7 0 7 6 1 7 Branches Source: Davaa, et. al. 2005. Report of Higher Education Study Team for the Second Education Master Plan. Ulaanbaatar.

MANAGEMENT RESPONSE TO THE PROGRAM PERFORMANCE EVALUATION REPORT FOR THE EDUCATION SECTOR DEVELOPMENT PROGRAM IN MONGOLIA (Loans 1507-MON[SF]/1508-MON[SF])

On 26 July 2007, the Director General, Operations Evaluation Department, received the following response from the Managing Director General on behalf of Management:

1. We appreciate OEDs evaluation of the Education Sector Development Program (ESDP) in Mongolia and its overall highly satisfactory rating of the project. 2. We agree that while the ESDP has been successful, some problems such as inadequate budget allocations for school maintenance and the need to improve education infrastructure still remain in the sector. We note that these are long-term issues and the Government of Mongolia is committed to addressing these problems. We also note that these issues are also being addressed under the ongoing ADBs assistance including Loan 1908-MON (SF): Second Education Development Project and Loan 2238-MON (SF): Third Education Development Project. We also note that distance education is being supported under the JFICT-9044-MON: Information and Communication Technology for Innovating Rural Education. As requested by the Government, ADB will also provide further assistance in addressing these problems through the Education Sector Reform Project (ESRP) which is planned for Board consideration in 2008. 3. We agree with the recommendations that ADB should support policy development in the areas of an updated urban education infrastructure and financing plan, a future-oriented rural primary education development strategy, and a financing strategy for a new higher education center of excellence. The first two areas are being undertaken in the ongoing education sector coordination work in Mongolia. The ESRP will conduct a higher education subsector review and recommend measures and mechanisms for improving higher education performance including a financing strategy. Given ADBs commitment to the education sector in Mongolia, the proposed policy development areas will continue to be explored in future country programming of ADBs assistance to the country.