Going Dutch — private education, public finance

A recent paper highlights the success of the Netherlands’ public/private education partnerships in education. We look at what economist Harry Anthony Patrinos says could be a good working model for educational freedom.

In the Netherlands, where almost 70% of schools are run by private boards, and public and private schools are government-funded on an equal footing, school choice is regarded by most people as a way of life.

According to Dr Patrinos, in his November 2002 paper Private education provision and public finance: the Netherlands as a possible model, most parents had several schools to choose from, there were no catchment areas and it was estimated that 86% of parents chose schools of their own preference. Although institutions were answerable to government for performance and policies, they were being given greater freedom in the way they allocated resources and managed their affairs, and they received extra funds to combat educational disadvantage. “Interestingly, as the centre has moved away from any direct provision of education services, its role in policy-making, evaluation and information dissemination has increased. Therefore the fear of the retreat of the state from matters of importance in education policy with the introduction of market forces is not founded.

“The Netherlands shows that a large private sector with equal public funding does not necessarily mean decentralisation and a weak central role. Choice can coexist with a strong centre.”

In his report, Dr Patrinos said that the Government was required to provide almost all initial capital costs as well as ongoing expenses for new schools. The municipality provided the buildings, and central government paid the salaries.

Schools were free to determine how to teach with some centralised requirements over quality, including subjects to be studied, national examination content, teacher training and qualifications and reporting requirements.

“As a rule, schools enjoy considerable freedom in the choice of textbooks and materials and in the way they manage their affairs.”

Dr Patrinos said in the report that international academic achievement tests showed Netherlands students performed “exceptionally well” and the country was “one of the world’s best achievers”.

“Achievement levels are high while relative costs are low — education spending as a proportion of GDP is 4.6% compared to an OECD average of 5.8%.”

At the secondary level, the Dutch government paid US $5,304 per student, which was much less than the OECD average.

Parents could be asked for voluntary contributions at the secondary school level, but schools could not refuse to admit a child if parents were unable or unwilling to pay.

“Most people accept school choice and public finding of private schooling as a way of life. The Dutch are comfortable with their system and see the guarantee of school choice as a positive influence in society,” Dr Patrinos wrote.

“In other words, consumer power in education is a valued right.

“The Dutch strategy is not to fight segregation but to offer high quality education for all students.”

• Harry Anthony Patrinos is senior education economist at the World Bank. He has published widely in the area of economics of education and specialises in demand-side financing. He has worked on education projects and research in Africa, Latin America, Asia, Europe and North America.

Private education provision and public finance can be downloaded from this web page.