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84th Session of the National Education Council
of Serbia
STRENGTHENING INTEGRITY AND FIGHTING
CORRUPTION IN EDUCATION: SERBIA

Mihaylo Milovanovitch,
OECD Directorate for Education
Education: importance and vulnerability

• The stakes associated with good education
  are high and growing higher
• Education is typically the second or third
  biggest domain of public expenditure
• Education is a highly complex system, with
  multitude of actors and vested interests.
Education: importance and vulnerability
             Share of people in a given world region viewing education in their country
                               as corrupt or extremely corrupt, 2011


       Eastern Europe                                                             59%


                  Africa                                                       56%


      Western Balkans                                                   50%


             Caucasus                                                   49%


              GLOBAL                                         35%


        Southeast Asia                                       34%


         Latin America                           22%


                 OECD                      18%

                           0%        10%   20%         30%     40%    50%       60%       70%

Source: Transparency International 2011
What can be done?



 EDUCATION                                          CORRUPTION
                     Preventative:
Preventative:          Focus on          Reactive/punitive:
Focus on origin       opportunity         Focus on cases
    Assess        Teach &    Prohibit & enforce      Criminalise &
   integrity      mobilise                              punish


                                                  Analysis and
                                                  policy reaction?
The causes of corruption in education
CORRUPTION




                                                     Corruption                            Corruption
              Level 3:
                                                      incidence                             incidence
              Corruption
              incidence
OPPORTUNITY




              Level 2:
              Preventive            Regulatory           Accountability        Budget             Civil society
              framework             framework             mechanisms          monitoring          and media




                                Demand for             Demand for         Staff and            Opportunity,
DEMAND




                                  quality                access           resources              criminal
                                                                                                intentions
              Level 1:
                                       Key area 1:        Key area 2:     Key area 3:
              System shortcomings
                                         teachers         assessment          xyz
The focus of integrity assessment is on
the causes of corruption in education




   Incentives +        Opportunity               Corruption
    readiness

    Education system   Detection and
    shortcomings       prevention shortcomings
OECD integrity assessment: the process


            • Students                                              •   Access
            • Parents                                               •   Quality
            • Staff                                                 •   Staff and resources
                                                                    •   Prevention
Focus




                                          (1)             (2)
                                      Expectations   Deliverables
                                                                                   Identification of
                                                                                  mismatch between
                                                                                      (1) and (2)
Outcomes




                                           (4)           (3)
                                        National     Recommen-
                                       follow-up       dations

            • Focus groups                                          • Policy areas
            • Further investigation                                 • Target institutions
            • Reforms                                               • Timeline
Sources of information

                  Surveys (PISA;
                   national and
                   international
                    corruption
                perception surveys)      Data and
 Stakeholder                           information
 interviews;                          grid; national
media reports                            data and
                                        indicators


                     INTES
                  assessment
The vicious circle of failure
                                          Analysing
                                         the impact
                       Corruption
                        incidence




                    Failing prevention
                      and detection
                       mechanisms



Understanding
the reasons
                       Education
                        system
Application of the INTES approach:
Identifying drivers of corruption demand in Serbia




                 Tracing systemic shortcomings in:

                 • Access to education
                 • Quality of education outcomes
                 • Management of staff and resources
                 • Prevention and detection of malpractice on
                 sector level
Findings:
integrity and access to education in Serbia




                Access to education:
                • Strong, mostly financial incentives to
                misuse the process of admission to
                universities, by both institutions and
                prospective students

                • Low awareness about academic integrity
Findings:
   integrity and access to education in Serbia
                                                                                                 Share of adults with higher education, 2009
60.0



50.0



40.0
                                                                                                                                                             Access to education:
                                                                                                                                                                                                                                                          OECD average: 29.5%
30.0
                                                                                                                                                             • Strong, mostly financial incentives to
20.0                                                                                                                                                         misuse the process of admission to
                                                                                                                                                                                            14.3%

                                                                                                                                                             universities, by both institutions and
10.0
                                                                                                                                                             prospective students
 0.0
                                                                                                                                                             • Low awareness about academic integrity
                                                                                                                                                                                                      France
                                                                                                                                                                       Sweden




                                                                                                                                                                                                                          Chile
                                                               Korea


                                                                                 Australia




                                                                                                                                                                                              Spain




                                                                                                                                                                                                                                                                                                                                                    Serbia
       Canada




                                                                                                                                                             Belgium




                                                                                                                                                                                                               Bulgaria


                                                                                                                                                                                                                                  Greece




                                                                                                                                                                                                                                                                                                      Czech Republic


                                                                                                                                                                                                                                                                                                                                         Portugal
                                                                                                                        Estonia




                                                                                                                                                                                Netherlands




                                                                                                                                                                                                                                                                                                                                                                                        Albania
                                                                                                                                  Luxembourg




                                                                                                                                                                                                                                                      Poland
                Israel




                                                                       Finland



                                                                                                              Ireland




                                                                                                                                                                                                                                                                                                                                                             Italy
                                                                                                                                                                                                                                                                                                                                                                     Romania
                                                                                                                                                                                                                                                               Hungary


                                                                                                                                                                                                                                                                                   Croatia



                                                                                                                                                                                                                                                                                                                       Slovak Republic
                         Japan
                                 United States




                                                                                                                                                                                                                                           Slovenia




                                                                                                                                                                                                                                                                                             Mexico
                                                                                                                                                                                                                                                                         Austria




                                                                                                                                                                                                                                                                                                                                                                               Turkey
                                                 New Zealand




                                                                                             United Kingdom




                                                                                                                                               Switzerland
Findings:
   integrity and access to education in Serbia
                                                                       Tuition fees of adultsto GDP per capita, Serbia and OECD
                                                                             Share relative with higher education, 2009
60.0

                 40%
50.0                                                                                                             36%
                 35%
40.0
                 30%                                                                                                                                         Access to education:
                                                                                                                                                                        27%
                                                                                                                                                                                                                                                          OECD average: 29.5%
30.0
                 25%
                                                                                                                                                             • Strong, mostly financial incentives to
20.0             20%                                                                                                                                         misuse the process of admission to
                                                                                                                                                                                            14.3%

                 15%                                                                                                                                         universities, by both institutions and
10.0
                                                                                                                                                             prospective students
                 10%                                                                                                                                         Median OECD: 7.6%
 0.0
                                                                                                                                                             • Low awareness about academic integrity
                                                                                                                                                                                                      France
                                                                                                                                                                       Sweden




                                                                                                                                                                                                                          Chile
                                                               Korea


                                                                                 Australia




                                                                                                                                                                                              Spain




                                                                                                                                                                                                                                                                                                                                                    Serbia
       Canada




                                                                                                                                                             Belgium




                                                                                                                                                                                                               Bulgaria


                                                                                                                                                                                                                                  Greece




                                                                                                                                                                                                                                                                                                      Czech Republic


                                                                                                                                                                                                                                                                                                                                         Portugal
                                                                                                                        Estonia




                                                                                                                                                                                Netherlands




                                                                                                                                                                                                                                                                                                                                                                                        Albania
                                                                                                                                  Luxembourg




                                                                                                                                                                                                                                                      Poland
                Israel




                                                                       Finland



                                                                                                              Ireland




                                                                                                                                                                                                                                                                                                                                                             Italy
                                                                                                                                                                                                                                                                                                                                                                     Romania
                                                                                                                                                                                                                                                               Hungary


                                                                                                                                                                                                                                                                                   Croatia



                                                                                                                                                                                                                                                                                                                       Slovak Republic
                         Japan
                                 United States




                                                                                                                                                                                                                                           Slovenia




                                                                                                                                                                                                                                                                                             Mexico
                                                                                                                                                                                                                                                                         Austria




                                                                                                                                                                                                                                                                                                                                                                               Turkey
                                                 New Zealand




                                                                                             United Kingdom




                                                                                                                                               Switzerland




                     5%

                     0%
                                                                 Median top 10 areas of study                                                                                                                                              Median all areas
Findings:
       integrity and access to education in Serbia
                                                                       Complaints of adultsto GDP to MOES by beneficiaries
                                                                              Share relative with higher education, 2009
                                                                        Tuition fees and requests per capita, Serbia and OECD
   60.0

              40%
 University procedures/administration                                                                                                                                                                                                                                                                                                                19.3
   50.0                                                                                                               36%
                     35% procedures/work
                      MoES                                                                                                                                                                                                                                                         14.5

   40.0
                     30%
                               School management                                                                                                                  Access to education:
                                                                                                                                                                             27%
                                                                                                                                                                                                                                                                       13.3

                                        School conditions                                                                                                                                                                                       10.8 OECD average: 29.5%
   30.0
                     25%
                             School staff/teachers                                                                                                                • Strong, mostly financial incentives to
                                                                                                                                                                               9.6
   20.0              20%
Hiring /firing of teachers and principals
                                                                                                                                                                  misuse7.2 process of admission to
                                                                                                                                                                           the                   14.3%

                     15%                                                                                                                                          universities, by both institutions and
   10.0                       University professors                                                                                                                      7.2
                                                                                                                                                                  prospective students
                     10%
                       Selection of principals                                                                                                                    Median OECD: 7.6%
                                                                                                                                                                     4.8
     0.0
                                                                                                                                                                  • Low awareness about academic integrity
                                                                                                                                                                                                           France
                                                                                                                                                                            Sweden




                                                                                                                                                                                                                               Chile
                                                                   Korea


                                                                                     Australia




                                                                                                                                                                                                   Spain




                                                                                                                                                                                                                                                                                                                                                         Serbia
           Canada




                                                                                                                                                                  Belgium




                                                                                                                                                                                                                    Bulgaria


                                                                                                                                                                                                                                       Greece




                                                                                                                                                                                                                                                                                                           Czech Republic


                                                                                                                                                                                                                                                                                                                                              Portugal
                                                                                                                            Estonia




                                                                                                                                                                                     Netherlands




                                                                                                                                                                                                                                                                                                                                                                                             Albania
                                                                                                                                       Luxembourg




                                                                                                                                                                                                                                                           Poland
                    Israel




                                                                           Finland



                                                                                                                  Ireland




                                                                                                                                                                                                                                                                                                                                                                  Italy
                                                                                                                                                                                                                                                                                                                                                                          Romania
                                                                                                                                                                                                                                                                    Hungary


                                                                                                                                                                                                                                                                                        Croatia



                                                                                                                                                                                                                                                                                                                            Slovak Republic
                             Japan
                                     United States




                                                                                                                                                                                                                                                Slovenia




                                                                                                                                                                                                                                                                                                  Mexico
                                                                                                                                                                                                                                                                              Austria




                                                                                                                                                                                                                                                                                                                                                                                    Turkey
                                                     New Zealand




                                                                                                 United Kingdom




                                                                                                                                                    Switzerland




                        Tenders/procurements
                        5%                                                                                                            1.2

                                                                                                                  0                                                         5                                                   10                                                15                                                                 20                                                25
                         0%
                                                                     Median top 10 areas of study by type of complaint, in %all areas
                                                                                       Frequency                   Median of total
Main recommendation: access



• Leverage for speeding up external school leaving exams
to replace entry exams organized by faculties

• Make financial support more accessible and equitable

• Increase financial accountability of faculties vis-a-vis
stakeholders for public resources
Findings:
             integrity and quality of education in Serbia



                               Quality of education:
                               • Ineffective classroom learning fuels the
                               proliferation of private tutoring with
                               teachers from the same school

                               • In an undetermined number of cases
                               tutoring is a precondition for obtaining a
                               grade



Data source: PISA 2009, OECD
Findings:
             integrity and quality of education in Serbia
                                                                          % of secondary students who resort to private tutoring
                          Bottom quarter of ESCS                                                         Second quarter of ESCS                                                   Third quarter of ESCS                                     Top quarter of ESCS

       60



       50
                                                                                                                                                Quality of education:
       40
                                                                                                                                                • Ineffective classroom learning fuels the
    % 30
                                                                                                                                                proliferation of private tutoring with
                                                                                                                                                teachers from the same school
       20



       10
                                                                                                                                                • In an undetermined number of cases
                                                                                                                                                tutoring is a precondition for obtaining a
        0                                                                                                                                       grade
                                                                                                                                                          Kyrgyzstan




                                                                                                                                                                                                                                                                             Japan

                                                                                                                                                                                                                                                                                     Iceland
                     Montenegro




                                                                                                                                                Estonia




                                                                                                                                                                                                                        Korea
                                                                                  Azerbaijan

                                                                                               Croatia
            Poland




                                           Lithuania




                                                                                                                                                                                                                                Australia

                                                                                                                                                                                                                                            Canada

                                                                                                                                                                                                                                                     Switzerland

                                                                                                                                                                                                                                                                   Germany
                                  Latvia




                                                                                                                           Bulgaria
                                                                         Serbia
                                                       Slovak Republic




                                                                                                                                      Romania




                                                                                                                                                                                       OECD average



                                                                                                                                                                                                      Hong Kong-China




                                                                                                                                                                                                                                                                                               Netherlands



                                                                                                                                                                                                                                                                                                                       Norway
                                                                                                                                                                                                                                                                                                             Finland
                                                                                                          Czech Republic




                                                                                                                                                                       Slovenia




Data source: PISA 2009, OECD
Main recommendation: quality



• Reform the curriculum

• Introduce codes of conduct for teachers
Findings:
integrity and education staff policies




               Staff policies:
               • Loopholes in the legislation make
               principals and teachers mutually dependent
               for their respective (re-)appointment
Findings:
     integrity and education staff policies
                                   Compaints and requests to MOES by education staff


Hiring /firing of teachers and principals                                                             35.7


                   School management                                        16.7


                MoES procedures/work
                                                Staff policies: 11.9


                  School staff/teachers         • Loopholes in the legislation make
                                                           11.9

                                                principals and teachers mutually dependent
      Professors at university-teaching
                                                for their respective (re-)appointment
                                                     7.1


                 Selection of principals             7.1


                                            0   5          10          15          20   25      30   35      40


                                                Frequency by type of complaint, in % of total
Findings:
                                                                   integrity and education staff policies
                                                                                  Teacher salaries and career progression - Serbia (2010) and OECD (2008)
                                                                        3
Ratio increase of salary at the top of the salarz scale, relative to




                                                                                                    Compaints and requests to MOES by education staff




                                                                                                                                              OECD average
                                                                                                                                                                                                    Korea
          starting salary, upper secondary school 2009




    Hiring /firing of teachers and principals                                                                                                                                              Above average salaries
                                                                                                                                                                                                                  35.7
                                                                              Below average salaries                                                                                       Above average career progression
                                                                       2.5
                                                                              Above average career progression

                                                                                   School management                                                         16.7
                                                                                                                                         Israel                          Japan
                                                                                                                       Luxembourg

                                                                                MoES procedures/work
                                                                                                                      Staff policies:France
                                                                                                                                           11.9
                                                                        2              OECD average                                      Austria

                                                                                  School staff/teachers                 Loopholes in the legislation make
                                                                                                                      • Poland         11.9          Ireland Chile    Portugal

                                                                                                            Hungary principals and teachers mutually dependent
                                                                                                                                  Finland                              Above average salaries
                                                                                                                                                          Switzerland
                                                                       Professors at university-teaching
                                                                       1.5
                                                                                                              Estonia
                                                                                                                      for their respective (re-)appointment
                                                                                                                              7.1
                                                                                                                   Czech Republic          Greece
                                                                                                                                              Netherlands
                                                                                                                                                                       Below average career progression
                                                                                                                                       Italy                             Spain
                                                                                                                      United States
                                                                                                             Slovak Republic                Australia                             Germany
                                                                        Below average salariesof principals
                                                                                  Selection                                     7.1Sweden
                                                                                                                          Iceland                                                                Turkey
                                                                        Below average career progression                                       Slovenia        Denmark
                                                                                                                                      Norway
                                                                                                                                                                                  Serbia
                                                                                                            0           5           10            15                20             25               30          35            40
                                                                        1
                                                                           0          0.2          0.4       0.6        0.8          1           1.2            1.4              1.6          1.8           2
                                                                                                                   Frequency by type of complaint, in % of total
                                                                             Ratio of teachers' salaries after 15 years of experience (minimum training) to GDP per capita,
                                                                                                                  upper secondary school
Main recommendation: staff policies



• Legislative strengthening of hiring procedures

• Start training of principals

• Provide opportunities and incentives for career
progression for teachers
Findings:
integrity and resource management




             Management of resources :
             • Heavy reliance of public schools on private
             investment, but without matching financial
             control
Findings:
      integrity and resource management
        Overview of funding sources, school accounts, and reporting of schools (2012)

Sources of funding:
Donations (I)
Parental association (II)
Revenues from services and rental of facilities (III)
Local budget transfers (IV).
                                         Management of resources :
School accounts:
Donations account (I)
Parental association account (II)
                                         • Heavy reliance of public schools on private
Regular school account (III, IV)         investment, but without matching financial
Other (remaining) account                control
Reporting:
Annual reporting of principal for I-IV to the school board, with a possibility for a double check by RED
(regional education departments).
Revenue tax declarations (III) to local tax authorities.
Findings:
                                                integrity and resource management
                                                      Distribution of public and private expenditure in primary and secondary education in
                                                 Overview of funding sources, school accounts, (2008)
                                                                           Serbia (2007) and OECD and reporting of schools (2012)

Sources of funding:                                                     Private per student expenditure    Public per student expenditure
  Share of public and private expenditure (%)




     100
Donations (I)
       90
Parental association (II)
       80
Revenues from services and rental of facilities (III)
       70
Local budget transfers (IV).
                                                60                                   Management of resources :
School50accounts:
Donations account (I)
       40
Parental association account (II)
       30
                                                                                     • Heavy reliance of public schools on private
Regular school account (III, IV)
       20 23.1                                                                       investment, but without matching financial
               22.2
Other (remaining) account
       10
                                                          22.1
                                                                                     control
                                                                 21.6                                     9.0
                                                0
Reporting:
Annual reporting of principal for I-IV to the school board, with a possibility for a double check by RED
(regional education departments).
Revenue tax declarations (III) to local tax authorities.
Main recommendation: resources


• Strengthen financial accountability of schools on local
level, while determining what is permissible school
revenue which can be kept.

• Process all lease requests currently with the
Republican Directorate for Property

• Revoke the suspension of the Law on Local Public
Finance to rectify inequalities in central funding for
municipalities
Findings:
Prevention and detection capacity




              Prevention and detection
              • Adequate institutional framework, but…

              • …weak capacity for malpractice detection
              and low level of awareness on sector level
Main recommendations:
  prevention and detection


• Strengthen prevention and detection capacities on
sector level, by

    Improving data reliability and promoting its use
    Making universities more accountable for the
   public funding they obtain
    Invest more in training and staffing of school
   inspectorates
    Increase transparency of budget formulation by
   introduce a per capita funding formula as soon as
   possible
Hvala na pažnji!

mihaylo.milovanovitch@oecd.org

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84th Session of the National Education Council of Serbia STRENGTHENING INTEGRITY AND FIGHTING CORRUPTION IN EDUCATION: SERBIA Mihaylo Milovanovitch, OECD Directorate for Education

  • 1. 84th Session of the National Education Council of Serbia STRENGTHENING INTEGRITY AND FIGHTING CORRUPTION IN EDUCATION: SERBIA Mihaylo Milovanovitch, OECD Directorate for Education
  • 2. Education: importance and vulnerability • The stakes associated with good education are high and growing higher • Education is typically the second or third biggest domain of public expenditure • Education is a highly complex system, with multitude of actors and vested interests.
  • 3. Education: importance and vulnerability Share of people in a given world region viewing education in their country as corrupt or extremely corrupt, 2011 Eastern Europe 59% Africa 56% Western Balkans 50% Caucasus 49% GLOBAL 35% Southeast Asia 34% Latin America 22% OECD 18% 0% 10% 20% 30% 40% 50% 60% 70% Source: Transparency International 2011
  • 4. What can be done? EDUCATION CORRUPTION Preventative: Preventative: Focus on Reactive/punitive: Focus on origin opportunity Focus on cases Assess Teach & Prohibit & enforce Criminalise & integrity mobilise punish Analysis and policy reaction?
  • 5. The causes of corruption in education CORRUPTION Corruption Corruption Level 3: incidence incidence Corruption incidence OPPORTUNITY Level 2: Preventive Regulatory Accountability Budget Civil society framework framework mechanisms monitoring and media Demand for Demand for Staff and Opportunity, DEMAND quality access resources criminal intentions Level 1: Key area 1: Key area 2: Key area 3: System shortcomings teachers assessment xyz
  • 6. The focus of integrity assessment is on the causes of corruption in education Incentives + Opportunity Corruption readiness Education system Detection and shortcomings prevention shortcomings
  • 7. OECD integrity assessment: the process • Students • Access • Parents • Quality • Staff • Staff and resources • Prevention Focus (1) (2) Expectations Deliverables Identification of mismatch between (1) and (2) Outcomes (4) (3) National Recommen- follow-up dations • Focus groups • Policy areas • Further investigation • Target institutions • Reforms • Timeline
  • 8. Sources of information Surveys (PISA; national and international corruption perception surveys) Data and Stakeholder information interviews; grid; national media reports data and indicators INTES assessment
  • 9. The vicious circle of failure Analysing the impact Corruption incidence Failing prevention and detection mechanisms Understanding the reasons Education system
  • 10. Application of the INTES approach: Identifying drivers of corruption demand in Serbia Tracing systemic shortcomings in: • Access to education • Quality of education outcomes • Management of staff and resources • Prevention and detection of malpractice on sector level
  • 11. Findings: integrity and access to education in Serbia Access to education: • Strong, mostly financial incentives to misuse the process of admission to universities, by both institutions and prospective students • Low awareness about academic integrity
  • 12. Findings: integrity and access to education in Serbia Share of adults with higher education, 2009 60.0 50.0 40.0 Access to education: OECD average: 29.5% 30.0 • Strong, mostly financial incentives to 20.0 misuse the process of admission to 14.3% universities, by both institutions and 10.0 prospective students 0.0 • Low awareness about academic integrity France Sweden Chile Korea Australia Spain Serbia Canada Belgium Bulgaria Greece Czech Republic Portugal Estonia Netherlands Albania Luxembourg Poland Israel Finland Ireland Italy Romania Hungary Croatia Slovak Republic Japan United States Slovenia Mexico Austria Turkey New Zealand United Kingdom Switzerland
  • 13. Findings: integrity and access to education in Serbia Tuition fees of adultsto GDP per capita, Serbia and OECD Share relative with higher education, 2009 60.0 40% 50.0 36% 35% 40.0 30% Access to education: 27% OECD average: 29.5% 30.0 25% • Strong, mostly financial incentives to 20.0 20% misuse the process of admission to 14.3% 15% universities, by both institutions and 10.0 prospective students 10% Median OECD: 7.6% 0.0 • Low awareness about academic integrity France Sweden Chile Korea Australia Spain Serbia Canada Belgium Bulgaria Greece Czech Republic Portugal Estonia Netherlands Albania Luxembourg Poland Israel Finland Ireland Italy Romania Hungary Croatia Slovak Republic Japan United States Slovenia Mexico Austria Turkey New Zealand United Kingdom Switzerland 5% 0% Median top 10 areas of study Median all areas
  • 14. Findings: integrity and access to education in Serbia Complaints of adultsto GDP to MOES by beneficiaries Share relative with higher education, 2009 Tuition fees and requests per capita, Serbia and OECD 60.0 40% University procedures/administration 19.3 50.0 36% 35% procedures/work MoES 14.5 40.0 30% School management Access to education: 27% 13.3 School conditions 10.8 OECD average: 29.5% 30.0 25% School staff/teachers • Strong, mostly financial incentives to 9.6 20.0 20% Hiring /firing of teachers and principals misuse7.2 process of admission to the 14.3% 15% universities, by both institutions and 10.0 University professors 7.2 prospective students 10% Selection of principals Median OECD: 7.6% 4.8 0.0 • Low awareness about academic integrity France Sweden Chile Korea Australia Spain Serbia Canada Belgium Bulgaria Greece Czech Republic Portugal Estonia Netherlands Albania Luxembourg Poland Israel Finland Ireland Italy Romania Hungary Croatia Slovak Republic Japan United States Slovenia Mexico Austria Turkey New Zealand United Kingdom Switzerland Tenders/procurements 5% 1.2 0 5 10 15 20 25 0% Median top 10 areas of study by type of complaint, in %all areas Frequency Median of total
  • 15. Main recommendation: access • Leverage for speeding up external school leaving exams to replace entry exams organized by faculties • Make financial support more accessible and equitable • Increase financial accountability of faculties vis-a-vis stakeholders for public resources
  • 16. Findings: integrity and quality of education in Serbia Quality of education: • Ineffective classroom learning fuels the proliferation of private tutoring with teachers from the same school • In an undetermined number of cases tutoring is a precondition for obtaining a grade Data source: PISA 2009, OECD
  • 17. Findings: integrity and quality of education in Serbia % of secondary students who resort to private tutoring Bottom quarter of ESCS Second quarter of ESCS Third quarter of ESCS Top quarter of ESCS 60 50 Quality of education: 40 • Ineffective classroom learning fuels the % 30 proliferation of private tutoring with teachers from the same school 20 10 • In an undetermined number of cases tutoring is a precondition for obtaining a 0 grade Kyrgyzstan Japan Iceland Montenegro Estonia Korea Azerbaijan Croatia Poland Lithuania Australia Canada Switzerland Germany Latvia Bulgaria Serbia Slovak Republic Romania OECD average Hong Kong-China Netherlands Norway Finland Czech Republic Slovenia Data source: PISA 2009, OECD
  • 18. Main recommendation: quality • Reform the curriculum • Introduce codes of conduct for teachers
  • 19. Findings: integrity and education staff policies Staff policies: • Loopholes in the legislation make principals and teachers mutually dependent for their respective (re-)appointment
  • 20. Findings: integrity and education staff policies Compaints and requests to MOES by education staff Hiring /firing of teachers and principals 35.7 School management 16.7 MoES procedures/work Staff policies: 11.9 School staff/teachers • Loopholes in the legislation make 11.9 principals and teachers mutually dependent Professors at university-teaching for their respective (re-)appointment 7.1 Selection of principals 7.1 0 5 10 15 20 25 30 35 40 Frequency by type of complaint, in % of total
  • 21. Findings: integrity and education staff policies Teacher salaries and career progression - Serbia (2010) and OECD (2008) 3 Ratio increase of salary at the top of the salarz scale, relative to Compaints and requests to MOES by education staff OECD average Korea starting salary, upper secondary school 2009 Hiring /firing of teachers and principals Above average salaries 35.7 Below average salaries Above average career progression 2.5 Above average career progression School management 16.7 Israel Japan Luxembourg MoES procedures/work Staff policies:France 11.9 2 OECD average Austria School staff/teachers Loopholes in the legislation make • Poland 11.9 Ireland Chile Portugal Hungary principals and teachers mutually dependent Finland Above average salaries Switzerland Professors at university-teaching 1.5 Estonia for their respective (re-)appointment 7.1 Czech Republic Greece Netherlands Below average career progression Italy Spain United States Slovak Republic Australia Germany Below average salariesof principals Selection 7.1Sweden Iceland Turkey Below average career progression Slovenia Denmark Norway Serbia 0 5 10 15 20 25 30 35 40 1 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 Frequency by type of complaint, in % of total Ratio of teachers' salaries after 15 years of experience (minimum training) to GDP per capita, upper secondary school
  • 22. Main recommendation: staff policies • Legislative strengthening of hiring procedures • Start training of principals • Provide opportunities and incentives for career progression for teachers
  • 23. Findings: integrity and resource management Management of resources : • Heavy reliance of public schools on private investment, but without matching financial control
  • 24. Findings: integrity and resource management Overview of funding sources, school accounts, and reporting of schools (2012) Sources of funding: Donations (I) Parental association (II) Revenues from services and rental of facilities (III) Local budget transfers (IV). Management of resources : School accounts: Donations account (I) Parental association account (II) • Heavy reliance of public schools on private Regular school account (III, IV) investment, but without matching financial Other (remaining) account control Reporting: Annual reporting of principal for I-IV to the school board, with a possibility for a double check by RED (regional education departments). Revenue tax declarations (III) to local tax authorities.
  • 25. Findings: integrity and resource management Distribution of public and private expenditure in primary and secondary education in Overview of funding sources, school accounts, (2008) Serbia (2007) and OECD and reporting of schools (2012) Sources of funding: Private per student expenditure Public per student expenditure Share of public and private expenditure (%) 100 Donations (I) 90 Parental association (II) 80 Revenues from services and rental of facilities (III) 70 Local budget transfers (IV). 60 Management of resources : School50accounts: Donations account (I) 40 Parental association account (II) 30 • Heavy reliance of public schools on private Regular school account (III, IV) 20 23.1 investment, but without matching financial 22.2 Other (remaining) account 10 22.1 control 21.6 9.0 0 Reporting: Annual reporting of principal for I-IV to the school board, with a possibility for a double check by RED (regional education departments). Revenue tax declarations (III) to local tax authorities.
  • 26. Main recommendation: resources • Strengthen financial accountability of schools on local level, while determining what is permissible school revenue which can be kept. • Process all lease requests currently with the Republican Directorate for Property • Revoke the suspension of the Law on Local Public Finance to rectify inequalities in central funding for municipalities
  • 27. Findings: Prevention and detection capacity Prevention and detection • Adequate institutional framework, but… • …weak capacity for malpractice detection and low level of awareness on sector level
  • 28. Main recommendations: prevention and detection • Strengthen prevention and detection capacities on sector level, by  Improving data reliability and promoting its use  Making universities more accountable for the public funding they obtain  Invest more in training and staffing of school inspectorates  Increase transparency of budget formulation by introduce a per capita funding formula as soon as possible

Editor's Notes

  1. The second sequence illustrates corrupt behaviour caused by a criminal intention. The second sequence holds for corruption in any sector.
  2. Sources of information:PISA database Education at a Glance database UNESCO and World Bank databases Data and Information Grid – country questionnaire
  3. Higher education in Serbia is likely to remain very attractive, and all counterparts met by the OECD assessment team thought of itas a necessary investment for a better personal future. However, the capacity of universities and the state to support expansion islimited and a considerable share of costs is routinely devolved to students and households. In 2010 private sources accounted for34% of the budget of public institutions – more than in any European OECD country except Portugal, where 38% of the resourcesinvested were private (OECD, 2011).Between 2007 and 2009 the state financed around 66% of public university cost, which allowed 42% of the student populationto study for free after passing strict and rigid testing of academic performance. Individual need is sometimes also taken intoconsideration, in addition to performance.The cost of university study in Serbia relative to per capita income is very high, which gives students and their families a seriousincentive to apply for public support. Hence, families and prospective students are willing to invest considerable time and effort to gain access to public support in theform of scholarships, loans and/or dormitory places, and competition is severe – mostly at the point of entry in the system, but alsothroughout the duration of studies because well-performing, but fee-paying students could in theory change their status and begranted a scholarship. Public support is the only existing form of support and is granted according to the principle of “the winnertakes all” – loans and dormitory places are reserved only for students who have been granted a scholarship.Scholarships are tied to study places and are the main channel of state funding for universities. According to data from the MoESfor 2010, 90% of these resources are earmarked for salaries of university staff. Faculties have to rely on student fees to make endsmeet or to improve their study offer, which provides a strong incentive to have as many fee-paying students as possible, or, in otherwords, to be highly restrictive when granting access to public support.Both prospective students and faculties have strong, mostly financial incentives to misuse the admission and assessment mechanisms. Evidence that indications that in these points the system is frequently too weak to resist the pressure. The analysis of complaints submitted via the official channels of the Ministry of Education and Science shows that the most frequent complaints in 2010-11 were about university procedures and administration. This category includes unscheduled examinations, issues related to admission, ranking, changes in student status from fee-paying to budget-supported, course examinations, etc. In an undetermined number of cases, rules and regulations are being bypassed for the sake of access to study places, public financial support and progression during studies.
  4. Higher education in Serbia is likely to remain very attractive, and all counterparts met by the OECD assessment team thought of itas a necessary investment for a better personal future. However, the capacity of universities and the state to support expansion islimited and a considerable share of costs is routinely devolved to students and households. In 2010 private sources accounted for34% of the budget of public institutions – more than in any European OECD country except Portugal, where 38% of the resourcesinvested were private (OECD, 2011).Between 2007 and 2009 the state financed around 66% of public university cost, which allowed 42% of the student populationto study for free after passing strict and rigid testing of academic performance. Individual need is sometimes also taken intoconsideration, in addition to performance.The cost of university study in Serbia relative to per capita income is very high, which gives students and their families a seriousincentive to apply for public support. Hence, families and prospective students are willing to invest considerable time and effort to gain access to public support in theform of scholarships, loans and/or dormitory places, and competition is severe – mostly at the point of entry in the system, but alsothroughout the duration of studies because well-performing, but fee-paying students could in theory change their status and begranted a scholarship. Public support is the only existing form of support and is granted according to the principle of “the winnertakes all” – loans and dormitory places are reserved only for students who have been granted a scholarship.Scholarships are tied to study places and are the main channel of state funding for universities. According to data from the MoESfor 2010, 90% of these resources are earmarked for salaries of university staff. Faculties have to rely on student fees to make endsmeet or to improve their study offer, which provides a strong incentive to have as many fee-paying students as possible, or, in otherwords, to be highly restrictive when granting access to public support.Both prospective students and faculties have strong, mostly financial incentives to misuse the admission and assessment mechanisms. Evidence that indications that in these points the system is frequently too weak to resist the pressure. The analysis of complaints submitted via the official channels of the Ministry of Education and Science shows that the most frequent complaints in 2010-11 were about university procedures and administration. This category includes unscheduled examinations, issues related to admission, ranking, changes in student status from fee-paying to budget-supported, course examinations, etc. In an undetermined number of cases, rules and regulations are being bypassed for the sake of access to study places, public financial support and progression during studies.
  5. Higher education in Serbia is likely to remain very attractive, and all counterparts met by the OECD assessment team thought of itas a necessary investment for a better personal future. However, the capacity of universities and the state to support expansion islimited and a considerable share of costs is routinely devolved to students and households. In 2010 private sources accounted for34% of the budget of public institutions – more than in any European OECD country except Portugal, where 38% of the resourcesinvested were private (OECD, 2011).Between 2007 and 2009 the state financed around 66% of public university cost, which allowed 42% of the student populationto study for free after passing strict and rigid testing of academic performance. Individual need is sometimes also taken intoconsideration, in addition to performance.The cost of university study in Serbia relative to per capita income is very high, which gives students and their families a seriousincentive to apply for public support. Hence, families and prospective students are willing to invest considerable time and effort to gain access to public support in theform of scholarships, loans and/or dormitory places, and competition is severe – mostly at the point of entry in the system, but alsothroughout the duration of studies because well-performing, but fee-paying students could in theory change their status and begranted a scholarship. Public support is the only existing form of support and is granted according to the principle of “the winnertakes all” – loans and dormitory places are reserved only for students who have been granted a scholarship.Scholarships are tied to study places and are the main channel of state funding for universities. According to data from the MoESfor 2010, 90% of these resources are earmarked for salaries of university staff. Faculties have to rely on student fees to make endsmeet or to improve their study offer, which provides a strong incentive to have as many fee-paying students as possible, or, in otherwords, to be highly restrictive when granting access to public support.Both prospective students and faculties have strong, mostly financial incentives to misuse the admission and assessment mechanisms. Evidence that indications that in these points the system is frequently too weak to resist the pressure. The analysis of complaints submitted via the official channels of the Ministry of Education and Science shows that the most frequent complaints in 2010-11 were about university procedures and administration. This category includes unscheduled examinations, issues related to admission, ranking, changes in student status from fee-paying to budget-supported, course examinations, etc. In an undetermined number of cases, rules and regulations are being bypassed for the sake of access to study places, public financial support and progression during studies.
  6. Higher education in Serbia is likely to remain very attractive, and all counterparts met by the OECD assessment team thought of itas a necessary investment for a better personal future. However, the capacity of universities and the state to support expansion islimited and a considerable share of costs is routinely devolved to students and households. In 2010 private sources accounted for34% of the budget of public institutions – more than in any European OECD country except Portugal, where 38% of the resourcesinvested were private (OECD, 2011).Between 2007 and 2009 the state financed around 66% of public university cost, which allowed 42% of the student populationto study for free after passing strict and rigid testing of academic performance. Individual need is sometimes also taken intoconsideration, in addition to performance.The cost of university study in Serbia relative to per capita income is very high, which gives students and their families a seriousincentive to apply for public support. Hence, families and prospective students are willing to invest considerable time and effort to gain access to public support in theform of scholarships, loans and/or dormitory places, and competition is severe – mostly at the point of entry in the system, but alsothroughout the duration of studies because well-performing, but fee-paying students could in theory change their status and begranted a scholarship. Public support is the only existing form of support and is granted according to the principle of “the winnertakes all” – loans and dormitory places are reserved only for students who have been granted a scholarship.Scholarships are tied to study places and are the main channel of state funding for universities. According to data from the MoESfor 2010, 90% of these resources are earmarked for salaries of university staff. Faculties have to rely on student fees to make endsmeet or to improve their study offer, which provides a strong incentive to have as many fee-paying students as possible, or, in otherwords, to be highly restrictive when granting access to public support.Both prospective students and faculties have strong, mostly financial incentives to misuse the admission and assessment mechanisms. Evidence that indications that in these points the system is frequently too weak to resist the pressure. The analysis of complaints submitted via the official channels of the Ministry of Education and Science shows that the most frequent complaints in 2010-11 were about university procedures and administration. This category includes unscheduled examinations, issues related to admission, ranking, changes in student status from fee-paying to budget-supported, course examinations, etc. In an undetermined number of cases, rules and regulations are being bypassed for the sake of access to study places, public financial support and progression during studies.
  7. Inefficiencies in learning during regular school hours create a need for remedial lessons and fuel the proliferation of private tutoring as a widespread, commonly accepted solution for difficult subjects, before exam sessions and in preparation of admission exams. Recent household survey data indicate that more than a quarter of Serbian households with children in primary or secondary schooling use the services of at least one private tutor.Learners in Serbia often seem to be trapped in a vicious circle of limited learning during regular schooling hours, which creates need for tutoring and stimulates reliance on out-of-school remedial work; this in turn limits the effectiveness of learning in class. Absence of professional codes of conduct and by weaknesses in the inspection system
  8. Inefficiencies in learning during regular school hours create a need for remedial lessons and fuel the proliferation of private tutoring as a widespread, commonly accepted solution for difficult subjects, before exam sessions and in preparation of admission exams. Recent household survey data indicate that more than a quarter of Serbian households with children in primary or secondary schooling use the services of at least one private tutor.Learners in Serbia often seem to be trapped in a vicious circle of limited learning during regular schooling hours, which creates need for tutoring and stimulates reliance on out-of-school remedial work; this in turn limits the effectiveness of learning in class. Absence of professional codes of conduct and by weaknesses in the inspection system
  9. Complaints about hiring staff and principals are among the most frequent types made to the Ministry of Education and Science.Loopholes in the legislation allow for bypassing staff redundancy lists through temporary employment, the current rules make staff and school principals depend on each other for their respective (re)appointments, and there are potential problems with the independence of school boards. Absence of transparent guidelines for hiring and firing staff contributes to a perception among stakeholders that appointments and promotion of teachers and school staff are routinely based on political affiliation or favours, and not (only) on competence.
  10. Complaints about hiring staff and principals are among the most frequent types made to the Ministry of Education and Science.Loopholes in the legislation allow for bypassing staff redundancy lists through temporary employment, the current rules make staff and school principals depend on each other for their respective (re)appointments, and there are potential problems with the independence of school boards. Absence of transparent guidelines for hiring and firing staff contributes to a perception among stakeholders that appointments and promotion of teachers and school staff are routinely based on political affiliation or favours, and not (only) on competence.
  11. Complaints about hiring staff and principals are among the most frequent types made to the Ministry of Education and Science.Loopholes in the legislation allow for bypassing staff redundancy lists through temporary employment, the current rules make staff and school principals depend on each other for their respective (re)appointments, and there are potential problems with the independence of school boards. Absence of transparent guidelines for hiring and firing staff contributes to a perception among stakeholders that appointments and promotion of teachers and school staff are routinely based on political affiliation or favours, and not (only) on competence.
  12. Public funding is insufficient and volatile, tradition bound inefficiencies in the network of schools are fairly resistant to change, there is competition between schools for diminishing numbers of youth which is costly, and the school infrastructure is oversized and old. Funding shortages affect mostly items related to school operation, such as expenses for maintenance, classroom equipment and professional development of teaching staff.In coping with the combined challenge of heightened needs and lowered means, the school system in Serbia has developed a high level of dependency on private investment, a fair share of which (18%) stems from revenues generated by the schools themselves through economic activities such as renting out-of-school facilities, mostly without legal permission. Some of the major education expenditure items of households such as textbooks, meals, excursions and transportation can be directly transferred by parents to the school accounts, so that up to 80% of the total private investment in education in Serbia is paid directly to the schools and into their accounts. You can do the maths yourself, but this is a lot of money!At the same time schools in Serbia have incentives to under-report or omit reporting of certain types of revenues, and there is evidence that they in fact do so. As budget users they are expected to return to the budget all income generated by the use of assets in their possession without being reported because under the current legislation they are not considered to be revenue. Municipalities do not have dedicated accounts for the schools under their fiscal responsibility, which leaves all revenue-related bank transfers at the discretion of schools.
  13. Public funding is insufficient and volatile, tradition bound inefficiencies in the network of schools are fairly resistant to change, there is competition between schools for diminishing numbers of youth which is costly, and the school infrastructure is oversized and old. Funding shortages affect mostly items related to school operation, such as expenses for maintenance, classroom equipment and professional development of teaching staff.In coping with the combined challenge of heightened needs and lowered means, the school system in Serbia has developed a high level of dependency on private investment, a fair share of which (18%) stems from revenues generated by the schools themselves through economic activities such as renting out-of-school facilities, mostly without legal permission. Some of the major education expenditure items of households such as textbooks, meals, excursions and transportation can be directly transferred by parents to the school accounts, so that up to 80% of the total private investment in education in Serbia is paid directly to the schools and into their accounts. You can do the maths yourself, but this is a lot of money!At the same time schools in Serbia have incentives to under-report or omit reporting of certain types of revenues, and there is evidence that they in fact do so. As budget users they are expected to return to the budget all income generated by the use of assets in their possession without being reported because under the current legislation they are not considered to be revenue. Municipalities do not have dedicated accounts for the schools under their fiscal responsibility, which leaves all revenue-related bank transfers at the discretion of schools.
  14. Public funding is insufficient and volatile, tradition bound inefficiencies in the network of schools are fairly resistant to change, there is competition between schools for diminishing numbers of youth which is costly, and the school infrastructure is oversized and old. Funding shortages affect mostly items related to school operation, such as expenses for maintenance, classroom equipment and professional development of teaching staff.In coping with the combined challenge of heightened needs and lowered means, the school system in Serbia has developed a high level of dependency on private investment, a fair share of which (18%) stems from revenues generated by the schools themselves through economic activities such as renting out-of-school facilities, mostly without legal permission. Some of the major education expenditure items of households such as textbooks, meals, excursions and transportation can be directly transferred by parents to the school accounts, so that up to 80% of the total private investment in education in Serbia is paid directly to the schools and into their accounts. You can do the maths yourself, but this is a lot of money!At the same time schools in Serbia have incentives to under-report or omit reporting of certain types of revenues, and there is evidence that they in fact do so. As budget users they are expected to return to the budget all income generated by the use of assets in their possession without being reported because under the current legislation they are not considered to be revenue. Municipalities do not have dedicated accounts for the schools under their fiscal responsibility, which leaves all revenue-related bank transfers at the discretion of schools.
  15. The country has a relatively adequate institutional framework for prevention and detection. The National Anti-Corruption Council and in particular the Anti-Corruption Agency with its largely preventative mandate are placed most conspicuously within the anticorruption system. Other institutions such as the Commissariat for the access to information of public importance and personal data protection, and the Ombudsman have been instrumental in increasing transparency in Serbia and play a crucial role in the ongoing anti-corruption effort. On the law enforcement and prosecution side, the capacity to detect and prosecute corruption crime has been on the increase. However, tn relation to the education sector, in the few known prominent corruption cases, respective proceedings have been delayed either at the stage of prosecution or court review.On sector level, there are serious gaps in the quality, availability and use of evidence and data, in particular for budgeting purposes, and lack of administrative transparency. The accountability of faculties vis-à-vis authorities and students is low, and the lack of codes of professional conduct for teachers is a concern, despite a solid but somewhat limited system for licensing of teachers. Procurement and textbooks remain areas where opportunities for corruption exist.
  16. The country has a relatively adequate institutional framework for prevention and detection. The National Anti-Corruption Council and in particular the Anti-Corruption Agency with its largely preventative mandate are placed most conspicuously within the anticorruption system. Other institutions such as the Commissariat for the access to information of public importance and personal data protection, and the Ombudsman have been instrumental in increasing transparency in Serbia and play a crucial role in the ongoing anti-corruption effort. On the law enforcement and prosecution side, the capacity to detect and prosecute corruption crime has been on the increase. However, tn relation to the education sector, in the few known prominent corruption cases, respective proceedings have been delayed either at the stage of prosecution or court review.On sector level, there are serious gaps in the quality, availability and use of evidence and data, in particular for budgeting purposes, and lack of administrative transparency. The accountability of faculties vis-à-vis authorities and students is low, and the lack of codes of professional conduct for teachers is a concern, despite a solid but somewhat limited system for licensing of teachers. Procurement and textbooks remain areas where opportunities for corruption exist.