SECTOR ASSESSMENT (SUMMARY): EDUCATION. 1. Sector Performance, Problems, and Opportunities

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1 Interim Country Partnership Strategy: Mongolia, SECTOR ASSESSMENT (SUMMARY): EDUCATION Sector Road Map 1. Sector Performance, Problems, and Opportunities 1. Since the mid-1990s, the Asian Development Bank (ADB) has supported the government in strengthening all levels of education. In 2012, gross enrollment ratios (GERs) reached 85.8% for preprimary, 116.9% for primary, 103.5% for secondary, and 61.1% for tertiary education well above those of the period before transition to market economy. Considering the achievements up to the secondary level, priority for future work has been placed on higher education and technical and vocational education and training (TVET) in recent years. Considering massively overcrowded schools and increasing preschool shortages, ADB s education sector strategy will reemphasize preprimary and basic education. 2. Strengthening technical and vocational education and training. The Government Platform, highlights employment as one of five goals for the creation of a sustainable and competitive economy. 1 Promoting employment opportunities, however, is complicated by serious skills mismatches in the labor market. One of the major reasons for this is lack of vocational, and soft skills among graduates from TVET programs and courses. The quality and responsiveness of TVET to labor market demands has been constrained, as many TVET schools have largely inherited pre-transition period set-ups inadequate teaching and training techniques, outdated equipment, and poor state of training facilities. Over the past years, the percentage of TVET graduates who found a job within 6 months of graduation has remained low at on average about 54%, with significant variations among graduates from different types of TVET programs and courses. 3. Expanding access to quality preprimary and basic education. Compared with achievements at the primary and secondary level, access to preprimary education has become an increasing challenge. Despite progress, the GER for preprimary education has not reached the optimal level (100%), suggesting that the present capacity of preschools is insufficient. The government projects growth of the population at preprimary age, anticipating an increase in demand for preprimary education in the next several years. The problem of access to preprimary education is particularly acute in the ger 2 areas of Ulaanbaatar and rural areas, requiring creative solutions to resolve the shortages. Moreover, in line with ongoing education quality reforms at basic and upper secondary levels, child-centered teaching learning methodology needs to be strengthened at preprimary level as well. 4. Notwithstanding the almost universal coverage of primary and secondary education, access to quality basic education remains a concern. Many schools in Ulaanbaatar have been operating in three shifts because of lack of capacity to accommodate students, which has resulted in some students attending schools late in the evening or even at night. Completion of the transition from the 11- to 12-year education system has added another cohort of students to be accommodated, adding further pressure to already overcrowded schools. In addition, the construction of a number of school buildings dates to the 1970s or before. Those school buildings are largely out of date, at risk, and energy-inefficient, using traditional coal-based energy sources. 1 Government of Mongolia The Government Platform ( ). Ulaanbaatar. 2 Ger refer to traditional Mongolian tented dwellings.

2 2 5. Building institutional capacity for planning, management, and coordination in technical and vocational education and training and education. Frequent changes in the legal and institutional environment for TVET since the late 2000s have considerably constrained the institutional capacity of the Ministry of Labor (MOL) for planning, management, and coordination in TVET. Despite some improvements, institutional and regulatory arrangements need to support the involvement of industries and employers in TVET to make the TVET system more responsive to the labor market. With the transition from the 11 to 12-year education system completed in school year 2013/2014, the Ministry of Education and Science (MEDS) has initiated education quality reforms, but the capacity of MEDS for planning, management, and coordination of the reforms is limited. 2. Government s Sector Strategy 6. Since 2012, the government s education policy has been guided by the Government Platform, and various strategic plans for education subsectors. At preprimary level, priority is given to the improvement of access, taking into account a major change in the demographic structure. At basic and upper secondary level, the focus is on increased school capacity, educational quality, and a better alignment of upper secondary education with higher education. At tertiary level, the focus is on the efficiency and effectiveness of higher education financing, governance and higher education institutions, the quality and relevance of programs for labor market demand, and internationally competitive research capacity. For the TVET subsector, ongoing reforms to increasingly involve employers and industries remain a high priority. 7. Since 2012, MEDS has been the central administrative body that formulates national policy and sets the standards for preprimary, basic, upper secondary, and tertiary education. MEDS also provides guidance and oversight for the following institutions: (i) the Institute of Education, responsible for curriculum and textbook development and issues related to school management; (ii) the National Evaluation Center, responsible for assessments of students, teachers, and schools; and (iii) the Teacher Development Center, responsible for in-service teacher training. For the TVET subsector, since 2012, responsibility has been transferred to the newly established MOL, which formulates national policy and sets the standards for formal TVET schools and short-term employment training providers. The capacity of MEDS and MOL in strategic planning and management, and rollout of educational and TVET reforms, needs to be strengthened. Across all education subsectors, capacity for procurement fiduciary risk management needs to be strengthened. 3. ADB Sector Experience and Assistance Program 8. ADB has played a lead role in the education sector since Mongolia joined ADB in The Government of Japan has been another major development partner, focusing on financing the upgrading of primary and secondary schools, strengthening teacher training, and providing support for information and communication technology in education and higher technical education. The World Bank has fiduciary responsibility for the Fast-Track Initiative, and the Rural Education and Development project supports the quality of basic education. 3 The United Nations Children s Fund is active in preschool, nonformal, and primary education. The 3 Launched in 2002, Education for All-Fast-Track Initiative is a global partnership to help low-income countries meet the education MDGs and the Education for All goal that all children complete a full cycle of primary education by Funding is channeled through existing bilateral and multilateral organizations and through the Fast Track Initiatives Catalytic Fund, which supports countries with insufficient resources to implement their education sector plans.

3 3 Education Donors Consultative Mechanism established in 2005 and co-chaired by MEDS, ADB, and the Embassy of Japan in Ulaanbaatar provides a mechanism to guide the partnership between the government and development partners. Previous, current, and future development partners in the TVET subsector include the Millennium Challenge Corporation, German development cooperation through Deutsche Gesellschaft für Internationale Zusammenarbeit, the Swiss Agency for Development and Cooperation, the European Commission, and the Government of Australia. 9. ADB has been a major provider of assistance in the education sector since ADB strategies in were to support infrastructure for basic education. Subsequently, ADB support shifted to improving the quality of education. For , ADB s strategy focused on strengthening higher education and TVET, and providing technical assistance (TA) through policy advice and capacity building. As of December 2013, ADB had approved five loans amounting to $62.5 million, five grants for $31.9 million, and 13 TA projects totaling $6.5 million. Major achievements of ADB s assistance for the education sector include (i) the reestablishment of basic education infrastructure, (ii) strengthening of the foundation for quality improvements, (iii) facilitation of the gradual shift from a 10- to a 12-year education system in line with international standards, (iv) expansion of preschool coverage, and (v) higher education reforms. 10. The objective of the government in the education sector is to enhance labor force skills, while creating greater opportunities for the poor and disadvantaged to access all levels of education. In support of the government, ADB s key sector outcomes are improved educational attainment and improved quality, access, efficiency, and relevance in all levels of education. The sector output to which ADB will contribute is improved access to quality education at all levels. ADB support will focus on (i) strengthening TVET; (ii) improving access to quality preprimary education; and (iii) enhancing institutional capacity for planning, management, and coordination in TVET and the overall sector. ADB will contribute to improving primary, secondary, and higher education through an ongoing portfolio of grants, loans, and TA. 11. Strengthening technical and vocational education and training. ADB will contribute to (i) developing occupational standards, competency-based curricula, and assessment and certification centers for key occupations in three priority areas (agriculture, construction, roads and transport) in collaboration with industry associations and employers; (ii) upgrading selected TVET institutions in the priority sectors to implement competency-based training and assessment, and industry partnership programs; (iii) training of teachers, trainers, and managers of selected TVET institutions in TVET pedagogy, technical skills, and industry-driven TVET management; (iv) providing career guidance for 8th and 9th grade students and implementing technology-specialized senior secondary schools; and (v) strengthening institutional capacity for planning, management, and monitoring and evaluation in TVET. 12. Improving access to quality preprimary and basic education. ADB will support increased access to preprimary and basic education by expanding the successful model of preprimary primary school complexes to ger areas of Ulaanbaatar and provinces, and developing models of energy-efficient school buildings and clean energy sources. To improve the quality of preprimary education, ADB will contribute to implementing improved curricula and providing teaching learning materials and teacher training in child-centered teaching learning methodology. Support will also be provided to strengthen the institutional capacity of MEDS in planning, management, coordination, and monitoring and evaluation of preprimary and basic education.

4 4 13. Continued support to basic, upper secondary, and higher education. ADB will continue to support basic, upper secondary, and higher education through ongoing projects and, when available, facilitate the mobilization of other resources to support the government in strengthening teacher and faculty professional development, improving the quality of education and learning environments, and enhancing institutional capacity and governance.

5 5 Problem Tree for Education Effects Increased disparities in education attainments Worsened income inequalities Increased gap between supply and demand in the labor market Increased unemployment Inadequate research and innovation to spur economic growth Hindered economic growth Core Problem Lack of access to quality education at all levels in Mongolia Low student learning achievements Insufficient quality preschool and basic education provision Proliferation of low-cost, low-quality programs TVET programs not meeting skills needs of employers Causes Lack of teachers capacity Lack of quality teaching learning materials Inadequate pre-service and in-service teacher training Teaching learning processes not focusing on students Growth of population at school age, including preprimary Inadequate teaching learning standards Declining conditions in HEIs Lack of autonomy of HEIs Insufficient funding for higher education and TVET Outdated equipment and facilities of TVET institutions Lack of quality assurance Slow reform processes in higher education and TVET subsectors Lack of employer involvement in TVET HEI = higher education institution, TVET = technical and vocational education and training.

6 6 Sector Results Framework (Education, ) Country Sector Outcomes Country Sector Outputs ADB Sector Operations Sector Outcomes with ADB Contributions Indicators with Targets and Baselines Outputs with ADB Contribution Indicators with Incremental Targets Planned and Ongoing ADB Interventions Main Outputs Expected from ADB Interventions Improved educational attainment and improved quality, access, efficiency, and relevance in all levels of education Employment rates of graduates from TVET in priority sectors increased from 54% in 2013 to 57% by 2016 Percentage of higher education graduates employed in fields in which they received training after graduation increased from 40% in 2013 to 50% by 2016 a Gross enrolment ratios for preprimary (85.8%), primary (116.7%), and secondary (103.5%) education in 2012 increased to close to 100% (optimal level) by 2016 Access to quality education improved at all levels Competency standards and competency-based curricula and assessment criteria for 15 key occupations in priority sectors developed by 2016 Percentage of HEIs that have national institutional accreditation increased from 40% in 2013 to 45% by 2016 Textbook rental scheme or textbook revolving fund implemented nationwide by 2016 Planned key activity areas TVET subsector (45%) Preprimary, basic, and upper secondary education subsectors (55%) Pipeline projects with estimated amounts Skills for Employment ($25 million) Ulaanbaatar School Concession Programme ($50 million) Education Sector Development (TA 0.5 million) Ongoing projects with approved amounts Higher Education Reform Project ($20 million) Planned key activity areas 20 TVET institutions in priority sectors upgraded to implement competencybased training and assessment 20 preprimary and primary school complexes constructed Pipeline Projects TVET programs and courses for 15 key occupations in priority sectors upgraded in partnerships with industry 2,000 preprimary students enrolled annually in preprimary and primary school complexes Education Sector Reform Project ($10 million) Ongoing projects Three programs in priority disciplines receive international accreditation New teaching practice model pilot tested ADB = Asian Development Bank, HEI = higher education institution, TA = Technical assistance, TVET= technical and vocational education and training. a Outcome indicators are national level indicators. Outcome indicators are based on United Nations Educational, Scientific and Cultural Organization (UNESCO) estimates, not on government targets, as the latter are not available. Source: Asian Development Bank estimates.

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