Private (non-state) sector engagement in the provision of
educational services at the primary and secondary levels
in South Asia has recently undergone remarkable growth.
This type of education comes in various forms, such
as schools financed and managed by the private sector,
schools financed by the government and managed by
the private sector, private school vouchers, and tutoring
outside the classroom. According to recent household
survey data, almost one-third of school-goers aged 6 to
18 years in South Asia go to private schools, with a high
concentration in Bangladesh, India, Nepal, and Pakistan.
Data for India, Nepal, and Pakistan show that on average,
private schools perform at least as well as government
schools on student test scores, after controlling for
socioeconomic factors, and they do so at significantly
lower costs to society. However, student achievement varies greatly across schools of each type, with many weak
private schools as well as strong government schools.
Substantial, albeit indirect, evidence points to teacher
behavior and accountability as an important driver of the
effectiveness of private schools. In the long run, however,
many factors may play important roles in sustaining the
private sector’s advantage. Another risk is that overall
poor quality in a large government sector may set a low
benchmark for the private sector. The findings cast doubt
on the effectiveness of government regulations for private
schools, given weak institutional capacity. Public-private
partnerships with effective accountability mechanisms
could leverage both equity and efficiency. Finally, it
appears important to understand and customize teaching
to the child’s individual level.