Coordination Unit Contact person: Ms. Esther Sequeira, Project Coordinator Phone (238) Fax (238)

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Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Project Name Region Sector Project Borrower(s) Implementing Agency Environment Category Report No. PID9400 Cape Verde-Education and Training... Consolidation and Modernization Africa Regional Office Other Education CVPE55468 Government of Cape Verde Date PID Prepared November 12, 1998 Project Appraisal January 23, 1999 Projected Board Date March 30, 1999 Background 1. Country and Sector Background Vice Prime Minister's Office- Project Coordination Unit Contact person: Ms. Esther Sequeira, Project Coordinator Phone (238) 61-43-99 Fax (238) 61-44-49 C Acceding late to independence (1972), Cape Verde is characterized by an embryonic education and training system. Its first priorities (the design of a basic education program, the training of teachers, the development of workforce development programs) have been implemented successfully. Pre-school coverage through the private sector providers extends to 40 per cent (mainly non-poor and urban) of the population. The poor and the rural, notably the 40 per cent of households headed by single women, are excluded. Programs range from basic day care to organized, pedagogical programs. Preliminary evidence, however, points to higher success in formal school for those attending. In the longer run, this will deepen social and economic differences. Primary education was extended in 1994 from four to six years. Participation in the primary grades has grown rapidly to over 100 percent gross enrollment rate, temporarily outstripping the demand for teachers in primary grades. Internal efficiency has also improved significantly. With the expansion of primary education, new problems have emerged: increased budgetary expenses, especially for salaries; a high percentage of unqualified teachers, difficulties in school/ community relations (many parents have never attended school and feel ill at ease in dealing with teachers and principals). On the other hand, some long-standing difficulties continue to present a challenge to education managers. These include: the small size of many isolated, island schools; the difficulty of ensuring pedagogical support and upgrading of skills over distance; cultural problems and language (Creole is the mother tongue for most children); and the need to reinforce Portuguese, sciences, math and education for citizenship participation.

Secondary Education: School children between grades 7 and 11 number 25,000 with about 1100 in the 12th grade (preparatory year for university) at the Mindelo and Praia lycees. These lycees are attended by students who wish to pursue higher education abroad (in particular Portugal and Brazil ) or attend local higher education institutes. The last three years are not provided by all schools. Some provide teaching up to grade 10; others to grade 11. Only two lycees offer 12th grade. Students completing this grade can apply to certain universities in Brazil. The size of the lycees varies from 3000 plus enrollments in the two lycees mentioned above to about 500, with the majority enrolling too few students to offer a full range of specialized courses. The promotion rate from 6th to 7th grade (first year of lower secondary) is already about 80%-. Consequently, the gradual improvement of promotion rates in primary school and the decision to expand mandatory schooling to the 9th grade (the end of the first cycle of secondary school in most countries) will place extraordinary pressures on secondary education. In view of the embryonic state of secondary education's development and the imminent enrollment pressures it faces. Post-secondary education consists of university study abroad (characterized by poor quality, lack of coherence with national priorities, and an inefficient dispersion of students across some 28 countries). Locally, several isolated sector-specific institutes (a business school; a maritime academy; agriculture/forestry and secondary teacher training) have, with the exception of teacher training, saturated their job markets and are unable to respond to the changing needs of business, government or individuals. Labor force development: A representative governing council (enterprises, unions, government) has been established, and successful demand-driven training and apprenticeship programs are now in their third year of operation. The training programs financed by the current project and paid for in part by businesses, appear cost-effective and are in demand. Other programs addressing unemployment leave considerable doubt as to their costeffectiveness and benefits. Current programs have already laid the foundations for training and apprenticeship systems and for employment services. Although initial results seem satisfactory, much remains to be done with regard to the definition of policies and the improvement of program quality, especially in the following areas: (i) strengthening consultative and collaborative arrangements with enterprises, the unions, and government, (ii) transferring the financial burden of high demand programs to beneficiary firms and agencies; (iii) take careful stock of active labor market programs addressing unemployment, assessing their cost-effectiveness and economic benefits so as (iv) to re-allocating budget resources and staff to the more efficient programs. Cape Verde is well-placed to develop its education/training system on the basis of these initial "building blocks". Given the current, embryonic state of the system, Cape Verde is not handicapped by investments sunk in long-established programs which now lack relevance but whose inflexibility (in terms of plant, personnel) stands in the way of budget re-allocation. It can design new programs which are cost-effective, reflecting best practice. The growing desire of civic society to participate in educational governance promises strong support for these important changes, providing mechanisms for consultation are established. -2-

2. Objectives The consolidation of reforms in primary education (grades 1-6) and in work force development (demand-driven training and apprenticeship programs). The design and testing of cost-effective program options for the medium term development of the education/training system. The project will prepare the blueprints for a multi-year development program (FY2001 APL). 3. Rationale for Bank's Involvement IDA has been asked by Government to play an active role among the donors providing leadership on education and training. Sound working relations with the three key ministries has established in the context of the ongoing project of education and training which is being implemented on schedule. Given its assistance to Cape Verde in the areas of public investment and expenditure management, IDA is consequently well-placed to help Cape Verde develop an education/training system consonant with its growth perspectives and budgetary capacity. That challenge will require careful examination of the costeffectiveness of alternative options at all levels of the system. IDA's role in disseminating educational research and best practice in the areas of policy, curriculum and methods, will help inform this decision process. During preparation, the responsible ministers participated in an inhouse seminar which enabled them to tap bank expertise on Cape Verde's main sectoral issues. 4. Description The Project consists of the following parts: Part A: CONSOLIDATION OF REFORMS IN PRIMARY EDUCATION AND LABOR FORCE TRAINING 1. Integrated Basic Education (Ministry of Education, Science, Youth and Sport-MECJD): Provision of infrastructure and pedagogic support to consolidate the nationwide introduction of universal and compulsory primary education (grades 1-6) through: (a) Completion of the classroom construction plan begun under the previous project (Cr. 2675), including the construction and furnishing of approximately 60 classrooms in cluster schools. (b) Providing updated textbooks and manuals to all students with costsharing and subsidies, by including provision of technical assistance for management of the textbook fund (FEE) and the publication of updated primary textbooks and teacher manuals. 2. Training and Apprenticeship (Ministry of Employment and Training- MEFIS): The consolidation of current reforms introduced by the Borrower to increase the skill level and productivity of entrants to the education work - 3 -

force through: (a) Provision of bridge financing of the Training Support Fund (FPEF) and apprenticeship programs for an additional two years (1999, 2000) to permit the further development of cost-sharing by beneficiary entities and the design of subsidies through the (i) financing of the FPEF to provide support to enterprise-based, on-the-job training and demand- driven training programs in public, private and non governmental organizations' training centers of at least xxxx trainees; (ii) improving apprenticeship training of at least xxxx apprentices, and (iii) financing the management and supervision for the training and programs referred to in (a) (i) and (ii) above and provision of specialist consultants' services for the IEFP (including those of senior personnel) (b) Provision of technical assistance to evaluate the ongoing active and passive labor market programs including the employment services to determine their cost-effectiveness. (c) Upgrade of the functioning and policy conception capacity of the National Advisory Council on Employment and Training (CNEF), and the Executive Committee (CA) of the FPEF, including technical assistance, workshops and seminars. Part B: DEVELOPMENT OF THE EDUCATION AND TRAINING SYSTEMS 1. Development of Institutional Capacity: Strengthening the Borrower's existing capacity to develop (i) economic analysis, (ii) educational and training planning and (iii) policy formulation capacities, through the provision of: (a) Specialists to reinforce the planing units of the Vice Prime Minister's Office, Ministry of Education and Ministry of Employment; (b) Surveys, field work and workshops; (c) The operation of the coordinating bodies in the Vice Prime Minister's Office (including a Project Coordinator and staff for carrying out accounting and auditing services); the Ministry of Education, Science, Youth and Sport (including the education coordinator and operating costs), and, in the Ministry of Labor and Training (including the training component coordinators and operating costs). (d) The establishment of an international steering committee and mechanisms for consultation with stakeholders including technical assistance and travel costs. 2. Program Design, piloting and implementation planning Design, piloting and prepare implementation plans of cost-effective program options for the further development of the education system as follows: (a) Pre-school including an (i) inventory of the existing pre-school network; (ii) assessment of the direct and indirect costs to parents; (iii) the piloting of new approaches to teaching including the transition from Creole to Portuguese; (iv) the assessment of current and/or exploration of new programs targeting 0-3 year age group; and, (v) information campaigns and - 4 -

periodic technical assistance on child growth and development specialists. (b) Primary education including a (i) review of the teaching corps, (ii) a beneficiary assessment addressed to parents; (iii) field testing of multi-grade teaching in small, isolated island schools; (iv) field testing of distance learning methods as a tool for upgrading teachers' skills; (v) explore the feasibility of teaching English and French; and, (vi) explore school health & nutrition programs improvement. (c) Secondary education including: (i) field testing of the organization and operation of selected grade 1-9 cluster schools; (ii) pedagogical survey (curriculum; teachers; didactic materials) in secondary schools; (iii) simulations of student flows an assessment of the financial implications and logistics; (iv) the updating of the school map, (v) a skill/ knowledge inventory of grade 11 and 12 completers and a comparison of students in grade 12 with their European counterparts. (d) Post-secondary education including (i) feasibility studies and financial implications of different choices for Higher Education in Cabo Verde; (ii) a survey of studies abroad and a feasibility study to negotiate multi-year agreements with a few selected overseas universities to improve the effectiveness of the government/donor financed scholarship program; (iii) a feasibility study of the consolidation of the existing tertiary institutions already existent in the country. 5. Financing Total ( US$m) Government 0.6 IBRD N/A IDA 6.0 Total Project Cost 6.6 6. Implementation Implementation period: Four years, mid-1999 through mid-2003. Executing agencies: Vice Prime Minister's Office, Ministry of Education, Science, Youth & Sports (MECJD) and Ministry of Employment, Training and Social Integration (MEFSI). Project components will be directly executed by the following agencies: Consolidation of Integrated Basic Education: Existing Departments within the Ministry of Education, Science, Youth & Sports (MECJD)-- Administration Department for school infrastructure; the Pedagogic Institute for pre-service teacher training, the Education Department for policy implementation and coordination of regional delegates and school directors. Overall coordination will continue under the responsibility of the education component coordinator as it has been shown to be effective. Consolidation of Training and Employment: The training and employment component will be the responsibility of the Institute for Employment and Training (IET) in the MEFIS. The Training Support Fund (TSF) will be overseen by the Executive Committee (EC) and administered by the Training Component Coordinator with technical support - 5 -

provided by the IET, but financial management will be ensured by the PCU. Overall coordination will continue under the responsibility of the training component coordinator. Development and Modernization: Ministry of Education: The planning unit will play a major role, jointly with various MECJD Departments, in the process of identification of options for sector development, data collection and data analysis, simulations, testing and preparation of implementation plans. Specific MECJD Departments (Pre-school, Basic, Secondary and Higher Education; Infrastructure and Human Resources Management; Pedagogical and Teacher Training Institutes; The Cape Verde Institute for Social Action-ICASE), will participate actively in the identification process and follow-up of testing and production of implementation plans. Ministry of Employment and Training: the planning unit will play a major role in orientating training and employment policy framework activities and in assessing employment services. Project coordination: The project will be coordinated by the Office of the Vice Prime Minister through a Project Coordination Unit (PCU) assisted by sector coordinators. The same PCU that successfully coordinated the implementation of the ongoing IDA-supported Basic Education and Training Project will be responsible for the coordination of the proposed project, and current management and coordination arrangements will continue. Project oversight: Steering Committee. To integrate recent world experiences in reforms, Government will appoint a steering committee composed of international leaders in education management, planning and economics from public administration, international development agencies or universities. The committee would be entrusted with the task of advising the two ministries and their joint team and providing guidance for the national conference. 7. Sustainability The project will develop the implementation plans for the development and modernization of the system which will be supported by the planned APL (FY2001). Thus, it is vital that proposed changes in curricula, methods, and program participation be tested as to their medium to long term sustainability under the macro-economic scenarios currently envisaged by the Country Development Strategy. To that end, an economic analysis team will be attached to the Vice Prime Minister's Office under existing coordinating arrangements, charged with assessment of the cost/benefits and financial sustainability of the program proposals put forward by the two technical ministries. This team will participate in public investment and expenditure reviews. To ensure that international experience informs ongoing development work, a steering committee of internationally reputed experts will provide a sounding board relative to key decisions and advise on the organization and implementation of programs. To ensure that cost-effectiveness and financing constraints are respected in determining which programs should be piloted with a view to their being eventually brought to scale, the planning units of the two technical ministries will also be strengthened in terms of economic analysis. - 6 -

8. Lessons learned from past operations in the country/sector Implementation of the ongoing project has been excellent, with disbursements outstripping projections. The project has provided full access to 1-6 primary education and has made significant progress in improving its quality through provision of better trained teachers, textbooks and teacher guides. It has also laid the foundation for a flexible, demand-driven training system through the implementation of a training fund and an effective apprenticeship scheme, enabling a rapid response to private sector training needs, especially important, given increasing foreign investment. The most important lesson learned has been the need to educate and involve the public in educational development. Two examples will suffice: multigrade teaching (essential in many of the small island schools) was deemed by parents to be of lower quality (contrary to research findings) than traditional, age-specific classrooms; the national training council (representatives of employers, unions, government) which is responsible for training and labor market policies has not functioned appropriately because its members neither recognized their important institutional responsibilities nor enjoyed the full support of their respective constituencies. This situation seems attributable to a traditionally passive expectation that government provides and decides. In both cases, a participatory approach aiming at educating and involving the protagonists would have led to more reasonable expectations. Another major lesson is that the design and implementation of programs must take into account the smallness of the economy, the physical dispersion of this island country and the consequent difficulty of obtaining economies of scale. For example, the model of secondary education (implemented in two high schools on a pilot basis) which aims at providing technical skill training as an option, faces the constraint of a small labor market where the only constants are the difficulty of predicting skill requirements and a changing technological environment. Ironically, the high costs of investment and operation render the pilot schools incapable of responding to change. Nor is it feasible to offer a wide range of secondary subjects taught by specialized teachers. The variable size and the isolation of many high schools requires that even to provide a modest range of course offerings, teachers must be "polyvalent" (teaching at least two subjects) and in some cases that subjects be taught via distance learning (video-conferencing, interactive computer-based instruction and television). 9. Program of Targeted Intervention (PTI) Yes 10. Environment Aspects (including any public consultation) Issues: As a Category C project, not only does this operation not present any environmental risks, but will contribute to improving environmental awareness and care through general textbooks and teacher training. Schools will be built according to acceptable standards and environmental norms. Most classrooms will simply be added to existing schools. The strengthening of integrated science teaching in lower secondary school will provide all school children with a window on their environment and on ways to protect it. 11. Contact Point: Task Manager Adriana Jaramillo The World Bank -7-

1818 H Street, NW Room J9-088 Washington D.C. 20433 Telephone: (202) 473-4027 Fax: (202) 473-8216 Processed by the InfoShop week ending August 11, 2000. - 8 -