Doing It Themselves.(private schools in developing countries)(Cover story)

Byline: Jason Overdorf

In India, education is supposed to be free and universal through age 14. In fact, it often doesn't work out that way. Consider Dhiraj Sharma, the 10-year-old son of a bicycle rickshaw driver in Dehli, who was forced to stay home last year after the local state denied him admission because he didn't have the right papers--a common problem. So Dhiraj is now applying to a private school. For just $6 a month, the R.S. School offers a much better education than the state, says Dhiraj's father, Ramesh, complaining that his son "finished class three in government school, and he can't read anything!"

Such problems have sparked a boom in private schooling throughout the developing world. In 2000, James Tooley, an administrator for Orient Global, a Singapore company that invests in education for the poor, went walking in Hyderabad, India, and was startled to find private schools on virtually every corner. He launched a full-scale study in India, China and Africa, and everywhere, officials and aid agencies told him such schools for the poor didn't exist. But when his researchers explored the villages and slums, they found that not only did they exist, they were flourishing. "It's a tremendous success story," says Tooley. "Entrepreneurs are catering to poor, low-income families, and they're achieving better than the government at a fraction of the cost."

The story was perhaps most dramatic in China. Tooley and his chief researcher, Qiang Liu, traveled to the poorest, most remote villages of Gansu province. Officials there insisted there were no private schools. And so it seemed, until Qiang woke up one morning at dawn and canvassed the vegetable market. Sure enough, women who'd traveled there from the neighboring countryside told him about private schools farther up in the mountains. "In the end, our survey found 586 of them in these remote villages, where the government and [aid workers] said there were none."

Elsewhere the private schools were easier to spot and even more numerous. In Delhi, hand-painted signs advertise low-cost private schools at every twist of the narrow lanes. In Hyderabad, 60 percent of the schools serving poor neighborhoods are private. None of them get state aid, and two thirds are not recognized by the government at all--meaning they are essentially black market. In the hinterlands of Accra, Ghana, Tooley's team found the same phenomenon: 65 percent of kids there attended private, unaided schools. In Lagos, in three different slums, the figure jumped to 75 percent.

The numbers suggest that despite the low prices (as little as $1.50 a month), parents believe such schools do a better job than the government. And they're generally right. Harvard's Michael Kremer found that though private-school salaries were lower in India than in public schools, teachers at the former skipped fewer classes (absenteeism is a notorious problem in India's state-run schools). Similarly, a 1999 survey conducted by Delhi University's Centre for Development Economics found that while teachers in state schools spent their time sitting idle, the makeshift private schools enjoyed "feverish classroom activity."

Harder-working teachers, of course, get better results--even when they lack qualifications. Kremer's 2002 study of Colombia's PACES program, one of the largest school-voucher projects ever implemented, found that three years after switching to relatively low-cost private schools, students had accomplished more, repeated fewer grades and scored higher on tests, and were less likely to have dropped out to take jobs, than were their counterparts still stuck in the government system. Other studies have reported similar results in Thailand, Tanzania, the Dominican Republic, the Philippines and elsewhere.