Voucher programs consist of three simultaneous reforms: (1) allowing parents to choose schools, (2) creating intense incentives for schools to increase enrollment, and (3) granting schools management autonomy to respond to demand. As a result, voucher advocates and critics tend to talk past each other. A principal-agent framework clarifies the argument for education vouchers. Central findings from the literature, including issues related to variance in the performance measure, risk aversion, the productivity of more effort, multiple tasks, and the value of monitoring are found relevant for an analysis of vouchers. An assessment of findings on voucher programs in industrial countries, as well as a review of voucher or quasi-voucher experiences in Bangladesh, Chile, Colombia, Côte d'Ivoire, and the Czech Republic support the usefulness of the analytic framework. Gauri and Vawda conclude that vouchers for basic education in developing countries can enhance outcomes when they are limited to modest numbers of poor students in urban settings, particularly in conjunction with existing private schools with surplus capacity. The success of more ambitious voucher programs depends on an institutional infrastructure challenging to industrial and developing countries alike. This paper--a joint product of Public Services, Development Research Group, and the Education Team, Human Development Network--is a background paper for the 2004 World Development Report.

Voucher programs consist of three simultaneous reforms: (1) allowing parents to choose schools, (2) creating intense incentives for schools to increase enrollment, and (3) granting schools management autonomy to respond to demand. As a result, voucher advocates and critics tend to talk past each other. A principal-agent framework clarifies the argument for education vouchers. Central findings from the literature, including issues related to variance in the performance measure, risk aversion, the productivity of more effort, multiple tasks, and the value of monitoring are found relevant for an analysis of vouchers. An assessment of findings on voucher programs in industrial countries, as well as a review of voucher or quasi-voucher experiences in Bangladesh, Chile, Colombia, Cote d'Ivoire, and the Czech Republic support the usefulness of the analytic framework. Gauri and Vawda conclude that vouchers for basic education in developing countries can enhance outcomes when they are limited to modest numbers of poor students in urban settings, particularly in conjunction with existing private schools with surplus capacity. The success of more ambitious voucher programs depends on an institutional infrastructure challenging to industrial and developing countries alike.This paper - a joint product of Public Services, Development Research Group, and the Education Team, Human Development Network - is a background paper for the 2004 World Development Report.

While public-private partnerships in education in the United States have received a lot of attention, research on such partnerships elsewhere has been limited--even though such partnerships have been steadily gaining prominence, particularly in developing countries. Aiming to fill this gap, this book presents fresh, technically sound empirical evidence on the effectiveness and cost of various public-private education partnerships from around the world, including voucher programs and faith-based schools. The evidence on the impact in terms of school performance, targeting, and cost of public-priv.

Advocates argue that voucher programs can correct the incentive problems of education systems in developing economies. An accountability perspective, based on a principal-agent framework, was developed to clarify the arguments for and against education vouchers. An assessment of findings on voucher programs in industrial countries and a review of voucher or quasi-voucher experiences in Bangladesh, Chile, Colombia, Cocirc;te d`Ivoire, and the Czech Republic support the usefulness of the analytic framework. The assessment concludes that the policy relevance of voucher programs for developing economies remains uncertain. Major voucher initiatives have been attempted only in countries with a well-developed institutional infrastructure. Some studies find favorable benefits for at least some population groups, but others find limited effects and evidence of increasing social stratification in schools. Whether vouchers lead to better outcomes or greater stratification appears related to specific contexts, institutional variables, and program designs.

While public-private partnerships in education in the United States have received a lot of attention, research on such partnerships elsewhere has been limited even though such partnerships have been steadily gaining prominence, particularly in developing countries. Aiming to fill this gap, this book presents fresh, technically sound empirical evidence on the effectiveness and cost of various public-private education partnerships from around the world, including voucher programs and faith-based schools. The evidence on the impact in terms of school performance, targeting, and cost of public-private partnerships is mixed. Some evidence suggests that voucher schools outperform public schools, but the difference between both types of schools is not as large as one might think, and is often smaller than simple statistics suggest. Evidence on faith-based schools tends to show slightly better performance than public schools, but this is not the case in all countries. While in some countries faith-based schools reach the poor better than public schools, in other countries the reverse is observed. As for the private costs of education, evidence shows that costs depend on the systems in place in each country, but that when school choice is limited, parents can still influence the performance of their children through private expenditure for tutoring. More rigorous studies on such partnerships, particularly in developing countries, are necessary."