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Does local financing make primary schools more efficient : the Philippine case

Author

Listed:
  • Jimenez, Emmanuel
  • Paqueo, Vicente
  • de Vera, Ma. Lourdes

Abstract

In the highly centralized system of the Philippines, local funding provides the only source of flexibility to meet specific and urgent needs. The government in Manila, which pays all teacher salaries, finds it easier politically in times of fiscal belt-tightening to cut recurrent costs. Although local funds are a relatively small percentage of the education budget, they make an important contribution to covering maintenence and operating costs. The total cost of education per student also appears to lower in schools with greater local financing. Administrators and teachers have greater incentive to be cost-effective when forced to consider the effect of their behavior on the people who live and work in the local community. The policy implications of these findings for the Philippines, as well as other developing countries, are important. They strongly suggest that decentralization will increase efficiency. Without an increase in local funding, the quality of primary education will suffer.

Suggested Citation

  • Jimenez, Emmanuel & Paqueo, Vicente & de Vera, Ma. Lourdes, 1988. "Does local financing make primary schools more efficient : the Philippine case," Policy Research Working Paper Series 69, The World Bank.
    • Handle: RePEc:wbk:wbrwps:69
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    Citations

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    Cited by:

    1. Jimenez, Emmanuel & DEC, 1994. "Human and physical infrastructure : public investment and pricing policies in developing countries," Policy Research Working Paper Series 1281, The World Bank.
    2. Mayling Oey Gardiner, 2000. "Schooling in A Decentralised Indonesia: New Approaches to Access and Decision Making," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 36(3), pages 127-134.
    3. Jack, William, 1992. "Power sharing and pollution control : coordinating policies among levels of government," Policy Research Working Paper Series 887, The World Bank.
    4. Manasan, Rosario G., 2004. "Local Public Finance in the Philippines: In Search of Autonomy with Accountability," Discussion Papers DP 2004-42, Philippine Institute for Development Studies.

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