CAF Education Agenda

CAF Education Agenda 2016-2020 More inclusion, more equity, more productivity Contributions to the Education Inter-American Agenda Ninth Inter-American Meeting of Ministers of Education February, 2017

Who we are and what we do CAF - Development Bank of Latin America is a multilateral organization created in 1970, owned by 19 countries - 17 of Latin America and the Caribbean, Spain and Portugal- as well as 14 private banks in the region. It promotes a sustainable development model through credit operations, nonreimbursable resources, and support in the technical and financial structuring of projects in the public and private sectors of Latin America.

Content I. Education in Latin America: 5 messages for CAF action I. CAF support strategy

I. Education in Latin America: 5 messages for CAF action

More education, higher economic and social development PISA results in Mathematics and GDP per cápita PISA results and long term economic growth, difefrente regions 100 points of diference in PISA = 2 percentual points of anual growthin long term 100 points of diference in PISA = 2 years of formal education Source: WDI (World Bank), PISA 2012 (OCDE), RED Report (CAF, 2016)

Message 1: Education has a strong influence on economic growth, social welfare and individual progress

Access to basic education has increased but important deficits and high inequality persists 120 100 Enrollment rate by age. Selected LA countries, 2013. 70% of 3 years old children does not have access to early chilhood atention 80 60 40 20 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Perú Argentina Colombia Brasil 15% 5 years old children is out of school 1 in 5 young people does not attend school at age 16 Fuente: Con base en SEDLAC- Socio-Economic Database for Latin America and the Caribbean, Encuestas de Hogares homogeneizadas

Access to basic education has increased but important deficits remain and high inequality persists Difference in enrollment rates, by income quintiles and region (urban - rural) 2013 45 40 35 30 25 Dif Q5-Q1 Dif Urbano-Rural 20 15 10 05 00 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Source: Based on SEDLAC- Socio-Economic Database for Latin America and the Caribbean, Homogenized household surveys

Message 2: Latin America must increase acces to early education and ensure graduation of upper secondary education, specially among low-income population

Low cognitive skills in Latin American students Science Results, PISA 2015. Several countries Percentage of students by level in Science. LA countries and OCDE Average. PISA 2015 Singapur Japón Estonia Finlandia Promedio OECD* Chile Uruguay Argentina** Trinidad y Tobago Costa Rica Colombia México Brasil Perú Rep. Dominicana 0 100 200 300 400 500 600 Rep. Dominicana Perú Brasil Colombia México Costa Rica Trinidad y Tobago Uruguay Argentina** Chile Promedio OECD *Promedio OECD excluyendo a Chile y México **La muestra de Argentina es pequeña para asegurar comparabilidad Fuente: Elaborado con base en los Resultados PISA 2015, en Foco. Programa para la Evaluación Internacional de Alumnos. OCDE 0% 20% 40% 60% 80% 100% Debajo de Nivel 2 Nivel 2 Nivel 3 Nivel 4 Niveles 5 y 6

Algeria Macao (China) Qatar Kazakhstan* Hong Kong (China) United Arab Emirates Iceland Montenegro Kosovo Russia FYROM Estonia Norway Latvia Canada Thailand Tunisia Turkey Jordan Cyprus2,3 Italy Lebanon Trinidad and Tobago Finland Japan Korea Denmark United Kingdom Viet Nam Mexico Georgia Israel United States Lithuania Moldova Australia Croatia Sweden Brazil Netherlands Greece Malaysia* Ireland Argentina* OECD average Dominican Republic Indonesia Poland Spain Slovenia New Zealand Colombia Romania Chinese Taipei Malta Portugal Costa Rica Switzerland Germany Austria Slovak Republic Uruguay Bulgaria Singapore Chile B-S-J-G (China) Czech Republic Belgium France Luxembourg Hungary Peru and results are highly conditioned by socioeconomic status 25,0 Percentage of variance in Science results explained by socioeconomic status. PISA 2015 20,0 15,0 10,0 5,0 0,0

Message 3: Latin America must increase quality of education, with focus in equity

Skills for work: Disconnection with labor demands Percentage of people who consider that the knowledge and skills acquired at school is useless or unhelpful for their current job 45 40 35 30 25 20 15 10 5 0 40 29 27 25 24 23 23 23 21 19 45 40 35 30 25 20 15 10 5 40 25 9 0 Hasta secundaria incompleta Secundaria completa Superior completa Source: ECAF 2015

Nini s: 1 out of 6 young people in LAC neither work nor study Individuals between 15 y 24 neither attend to schoolo or working (milions) 16.4 17.1 18 18.2 18.2 20.8 Ninis mujeres Ninis hombres 34% 66% 1990 1995 2000 2005 2010 2015 Source: De Hoyos, Rogers y Popova, 2015

Mesagge 4: Latin American young people need to gain the skills and competencies they need to succeed at work

NZE NOR SWE FIN BEL IRL ISR AST NTH FRA CAN AUS EST SWI SPA GER KOR CHZ ITA JAP PROM OECD BOL BRA MEX ARG PRY COL URY ECU CHI ESV PAN GUA PER PROM AL Public spending in education as a share of GDP increased in most Latin American countries, but we are still below the OECD average 8 7 6 5 4 3 2 1 0 8.0 7.0 7.0 5.9 6.0 4.9 5.0 4.5 4.0 3.0 Gasto público en educación, % del PIB 6.1 2000-2002 2010-2012 5.2 4.4 4.6 4.3 4.6 4.6 4.2 4.4 3.9 3.9 3.8 3.3 3.1 2.8 2.5 2.0 1.0 0.0 ARG BOL BRA CHI COL MEX PAN PRY PER URY 5.5 4.4 Fuente: UNESCO

Nota promedio PISA 2012 (matemática) But we may still improve results with current spending Países con gasto acumulativo por estudiante (entre sus 6 y sus 15 años) inferior a USD 50 000 Ajuste lineal para estos países 1 Países con gasto acumulativo por estudiante (entre sus 6 y sus 15 años) superior a USD 50 000 Ajuste lineal para estos países 2 650 Shanghai-China 600 Singapore Korea 550 Japan Switzerland Poland Estonia CanadaFinland Netherlands Viet Nam Czech Republic Germany Belgium Australia Austria 500 New Zealand Slovenia Ireland Denmark Lithuania Latvia France Portugal Iceland Norway Croatia Slovak Republic Sweden Israel United States Turkey Hungary Spain 450 Italy Thailand Bulgaria United Kingdom Malaysia Chile Mexico Montenegro 400 Uruguay Tunisia Brazil Jordan Colombia 350 Peru R² = 0,01 Luxembourg Fuente: UNESCO 300 R² = 0,37 0 20 000 40 000 60 000 80 000 100 000 120 000 140 000 160 000 180 000 200 000 Gasto promedio acumulado por estudiante entre sus 6 y sus 15 años (USD, PPP)

Message 5: Latin America needs to invest more and better

II. CAF Education Agenda

CAF Action 1. Increase access, with focus on low income population Educational Infrastructure Equipment, learning environments and technology Systems for planning and managment of physical resources Strategies for promoting demand of low income population

CAF Action 2. Increase quality of education Investments in early childhood education and care and preschool education Teacher quality, specially professional development (ECE, ICT, innovative practices) Interventions for aquiring reading skills at an early stage

CAF Action 3. Increase relevance of education Curricular reforms to better match skills with those demanded in the labor market Expansion and strengthening upper secondary and post secondary education offers, including TVET, that allow transition to labor market or higher education Promoting qualification frameworks and strategic partnerships Promoting innovation capacity and entrepreneurship

1: Increase access to early childhood education and assure graduation from secondary education 2: Increase quality of education, with focus on equity 3: Increase correspondence between instruction and skills for work Quality Access Relevance Technical and financial support Review and dissemination of best practices

www.caf.com