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As a result of growing concerns about the delivery of basic services in a challenging economic and social context in Papua New Guinea, a study was undertaken in 2002 to document some significant problems with the delivery of education and health services in the country. The focus of the study was on the elementary/primary education sector. The survey revealed large gaps in the financial data available at schools reflecting poor account maintenance and record keeping at school level and found evidence of leakage.
Papua New Guinea
GDP per capita (constant 2000 US$) Improved sanitation facilities (% of population with access) Improved water source (% of population with access) Literacy rate, adult total (% of people ages 15 and above) Mortality rate, infant (per 1,000 live births) Population, total, in millions
Indicator 695.34 45 40 60 52 6.73
Year of Observation 2009 2008 2008 2008 2009 2009
Data source: WDI 2010

Papua New Guinea Education - 2002   Health - 2002   Download all
Motivation
Work on this project was launched as part of the Bank's analytical work on poverty. Although this study focuses on education sector its findings have wider relevance to other sectors.
Objectives
To analyze and collect new data on the elementary/primary education sector, and evaluate some important shortcomings in the delivery of education services, and other factors that either impede or promote effective service delivery. Analysis of these issues focuses on the framework of relationships among clients, providers and policymakers.
Main findings
There are challenges of access, retention and quality, as well as problems related to school facilities, environment, finances, teacher and student performance and administration of education. While some facilities are clearly worse in poor and remote areas, it is not unilaterally so for all facilities. Subsidies, fees and grants are three main sources of revenue for schools: subsidies are prone to uneven distribution and leakage, as well as delays in receipt. There is a lack of clear policy on school/project fees and considerable tolerance for non-payment of fees. The survey revealed large gaps in the financial data available at schools reflecting poor account maintenance and record keeping at school level, with schools in more remote or poor areas appear to do no worse than other schools with some variation across provinces.
Leakage
Leakage ranges from 16 to 29% (depending on the measurement assumption used). The overall subsidy leakage for 2001 is estimated between 16 and 29%, depending on the alternative assumptions on how much of the provincial education subsidies are allocated to the primary sector. Based on official entitlement rates subsidy leakage is 9%, but leakages are high if one were to go by the expectations of head teachers -43%. The leakage rate is substantially lower in 2002 compared to 2001: subsidies fell short of actual budget disbursements by about 7%. This too is likely to be an overestimate since there were some schools that had not yet received their subsidy payments at the time of the survey. The official entitlement rates suggest a higher leakage of 30%.
Ghost workers
There is anecdotal evidence of schools receiving goods and then reselling them; in some schools transportation costs exceed the value of goods and they are not picked up; frequent source of leakage of Goods and Services expenditures is through per diem and meals expense categories.
Absenteeism
Absence rate of 15% could be an underestimate. The study report claims that if the notion of teacher absence were to be broadened to include ghost teachers, then the absence rate would increase from 15.1 % to 27.6%.
Other findings
Subsidy Delay (the total delay in the use of subsidies is derived comprising of weeks of delay in the actual receipt of subsidies in each quarter and the number of weeks before the school was able to actually spend the subsidy received): 2001-huge delays in receipt of subsidy with substantial variation in average delays across provinces; in 2002, when all subsidies were in cash and channeled directly to schools, there was a drastic reduction in delays.
There is anecdotal evidence of schools receiving goods and then reselling them; in some schools transportation costs exceed the value of goods and they are not picked up; frequent source of leakage of Goods and Services expenditures is through per diem and meals expense categories.
Sample
214 primary schools
Sample design
214 schools in 19 districts across 8 (out of 20) provinces, with 2 provinces selected in each of the 4 main regions; 3 districts randomly selected within provinces with probability proportional to the number of schools in the district; 10 schools selected randomly within each district. In the National Capital District, which does not have districts but is organized by wards/census enumeration areas, 30 schools were randomly selected. Many schools in the original sample of 220 schools could not be covered for various reasons; replacement schools were randomly selected from the same district. The final sample is well distributed throughout the country and across the remoteness and poverty spectrum.
Resources monitored
Subsidies to schools
Contact
Deon Filmer: dfilmer@worldbank.org
Main report
(2004) "Papua New Guinea: Public Expenditure and Service Delivery PESD,” draft report, June