Contents -- Foreword -- Acknowledgments -- Abbreviations and Acronyms -- Executive Summary -- Designing the Overall Policy Framework -- Getting Resources to Schools, Communities, and Households -- Taking Advantage of Decentralization to Get Results -- Conclusion -- 1. Demography, Economy, and Government Finance -- Demographic and Social Conditions -- Economic Conditions -- Pattern of Government Finance -- Conclusion -- 2. Enrollments and Patterns of Student Flow -- Structure of the Education System -- Overview of Enrollment Trends -- Enrollments in Government and Nongovernment Establishments -- Evening Classes, Distance Education, and Nonformal Basic Education -- Trends and Levels in the Gross Enrollment Ratio -- Student Flow in Primary and Secondary Education -- Issues for Policy Development -- Conclusion -- 3. Education Expenditures -- Overall Pattern of Recurrent Public Spending on Education -- A Closer Look at Recurrent Public Spending on Education in 2001-02 -- Public Spending Per Student by Level and Type of Education -- Household Spending on Education -- Issues for Policy Development -- Conclusion -- 4. Disparities in Enrollments, Student Flow, and Benefit Incidence -- Overview of Participation Rates -- Disparities in Student Flow Patterns in Primary Education -- Distribution of Public Spending on Education -- Issues for Policy Development -- Conclusion -- 5. Service Delivery in Primary and Secondary Education -- Overview of the Network of Schools -- Selected Characteristics of Schools -- Staffing Patterns -- Teacher Allocation across Government Schools -- Economies of Scale in Service Delivery -- Student Achievement -- Issues for Policy Development -- Conclusion -- 6. Aspects of the Market and Nonmarket Benefits of Schooling -- Employment Patterns and Workers' Educational Attainment -- The Market Returns to Education.

The Impact of Education on Poverty and Nonmarket Outcomes -- Issues for Policy Development -- Conclusion -- APPENDIXES -- Technical Note 1: Preparation of the Data on Current Public Expenditure on Education in Ethiopia -- Technical Note 2: Estimating Student Flow Profiles -- Technical Note 3: Selected Studies on Rates of Return to Education in Ethiopia -- Appendix Tables -- References -- LIST OF TABLES -- 1 Low Rates of Entry to Grade 1 and Survival to Grade 4, Especially in Rural Areas, despite Unambiguous Overall Improvement since 1993-94 -- 2 High Teacher Cost Leads to Adverse Tradeoff against Other School Inputs in Ethiopia -- 3 Scope Exists for Increasing the Efficiency of Time Use by Teachers beyond Grade 4 -- 4 Possible Indicators for Monitoring Progress in Primary Education in Ethiopia -- 5 Urban-Rural Disparities in Primary School Participation are Especially Wide in Ethiopia -- 6 Primary Schools are Still Too Inaccessible for Many Children in Rural Ethiopia -- 7 Incompleteness of Instructional Program Characterizes Many Rural Primary Schools -- 8 The Direct Cost of Primary Schooling Can Be Significant for the Poorest Families -- 1.1 Selected Population Characteristics, Ethiopia, 1984 to 1999-2000 -- 1.2 Selected Health Indicators, Ethiopia, 1984 to 1999-2000 -- 1.3 Percentage of Children below 15 Years of Age Who Have Lost One or Both Parents, Ethiopia and Other African Countries, circa 1999 -- 1.4 Sources of Recent Economic Growth, Ethiopia, 1992-93 to 1999-2000 -- 1.5 Trends in Overall Government Revenues, Ethiopia, 1980-81 to 2001-02 -- 1.6 Trends in Total Government Expenditure, Ethiopia, 1980-81 to 2001-02 -- 1.7 Trends in Public Spending on Education, Ethiopia, 1980-81 to 2001-02 -- 2.1 Enrollments by Level in Government and Nongovernment Institutions, Ethiopia, 1967-68 to 2001-02.

2.2 Number of Students by Type and Level of Education, Ethiopia, 2001-02 -- 2.3 Primary Gross Enrollment Ratios (GER), Ethiopia, 1993-94 to 2001-02 -- 2.4 Three Indicators of Entry to Grade 1, Ethiopia, 1993-94 to 2000-01 -- 2.5 Cohort Survival Rates Using Different Estimation Methods, Ethiopia, 2000-01 -- 2.6 Composite Cohort Survival Rates and Intercycle Transition Rates, Ethiopia, 1993-94 and circa 2000-01 -- 2.7 Repetition Rates and Share of Readmitted Students among Repeaters, Ethiopia, 1993-93 and 2002-03 -- 2.8 Efficiency of Student Flow in Primary Education, Ethiopia, 1993-94 and 2001-02 -- 2.9 Enrollments in Grades 8-12 in Government and Nongovernment Schools, Ethiopia, 1999-2000 to 2002-03 -- 2.10 Possible Indicators for Monitoring Progress in Primary Education in Ethiopia -- 3.1 Regional Distribution of School-Age Population and Recurrent Public Spending on Education, Ethiopia, 1993-94 to 2001-02 -- 3.2 Recurrent Public Education Spending Trends and Composition by Subsector, Ethiopia, 1993-94 to 2001-02 -- 3.3 Regional Recurrent Spending on Education, and Amount and Share of Spending on Administration, Ethiopia, 2001-02 -- 3.4 Regional Recurrent Spending on Primary, Secondary, and Technical -- 3.5 Distribution of Teachers in Government Schools by Level of Teaching Assigned, Certification, and Average Age, Ethiopia, circa 2002 -- 3.6 Average Annual Teacher Remuneration and Aggregate Spending on Teachers and Administrative Staff in Government Schools, Ethiopia, 2001-02 -- 3.7 Number of Academic and Administrative Staff, Their Average Remuneration and Aggregate Wage Bill in Teacher Training and Higher Education, Ethiopia, 2001-02 -- 3.8 Recurrent Public Spending on Education by Function and Level, Ethiopia, 2001-02 -- 3.9 Recurrent Spending on Primary and Secondary Education across Regions, Ethiopia, 2001-02.

3.10 Teacher Wages and Educational Supplies as a Percentage of Recurrent Spending in Primary and Secondary Education across Regions. Ethiopia. 2001-02 -- 3.11 Public Recurrent Spending Per Student by Level and Type of Education -- 3.12 Public Spending Per Student in Government Primary and Secondary Schools across Regions, Ethiopia, 2001-02 -- 3.13 Estimates of Teaching Loads by Level of Education, Ethiopia, 2001-02 -- 3.14 Sources of Differences in Spending Per Student in Government Primary and Secondary Education, Ethiopia, 2001-02 -- 3.15 Sources of Regional Differences in Spending Per Student in Grades 1-4 and Grades 5-8 Across Regions, Ethiopia, 2001-02 -- 3.16 Sources of Differences in Government Spending Per Student across Cycles in Primary Education in Each Region, Ethiopia, 2001-02 -- 3.17 Household Spending on Education by Level, Ethiopia, circa 2000 -- 3.18 Aggregate Household Spending on Education, Ethiopia, 1999-00 -- 3.19 National Spending on Education, Ethiopia, 1999-2000 -- 3.20 Household Spending Per Child in Primary School by Household Consumption -- 3.21 Public Recurrent Spending Per Primary Pupil, Teacher Wages, Pupil-Teacher Ratios, and Spending on Inputs Other Than Teachers, Ethiopia and Selected World Regions, circa 2000 -- 3.22 Teacher's Weekly Teaching Hours by Level of Education, Ethiopia (2001-02) and Other Countries (1999) -- 3.23 Teacher's Weekly Teaching Hours by Level of Education, Ethiopia (2001-2) and Other Countries (1999) -- 4.1 Gross Enrollment Ratios by Region, Ethiopia, 1993-94 and 2001-02 -- 4.2 Gross Enrollment Ratios by Locality, Gender, and Wealth, Ethiopia, 1999-2000 -- 4.3 Female Share of Primary and Secondary Enrollments across Regions -- 4.4 Percentage of Children Ages 7-14 Currently Enrolled in Primary School by Orphanhood Status, Ethiopia, 1999-2000.

4.5 Student Flow Indicators in Primary Education by Gender -- 4.6 Social Selectivity in Primary Education according to Three Cross-Sectional Indicators of Access, Ethiopia and Sub-Saharan African Countries, circa 2000 -- 4.7 Benefit Incidence of Public Spending on Education, Ethiopia, circa 2000 -- 4.8 Share of Public Spending on Education Benefiting the Poorest and Richest Population Quintiles, Ethiopia (1999-2000) and Other Countries (1990s) -- 4.9 Distribution of Children Ages 7-14 and Their School Participation Rates by Distance to Nearest Primary School, Ethiopia, 2000 -- 4.10 Percentage of Children Ages 7 to 14 Years Currently Registered for School, by Mother's Native Language, Ethiopia, 2000 -- 5.1 Distribution of Primary and Secondary Students and Schools -- 5.2 Distribution of Government and Nongovernment Schools -- 5.3 Percentage Distribution of Government and Nongovernment Primary Schools by Date of Establishment, Ethiopia, 2001-02 -- 5.4 Distribution of Government Primary Schools by Highest Grade -- 5.5 Prevalence of Double Shifting and Section and School Sizes of Government -- 5.6 Selected Indicators of Conditions in Government and Nongovernment -- 5.7 Administrative Staff Allocation and Staffing Ratios across Primary -- 5.8 Distribution of Teachers by Gender and Qualification in Government and Nongovernment Primary and Secondary Schools, Ethiopia, 2001-02 -- 5.9 Pupil-Teacher Ratios by Level of Instruction in Government and Nongovernment Schools across Regions, Ethiopia, 2001-02 -- 5.10 Percentage Distribution of Government and Nongovernment Schools by Range of Pupil-Teacher ratios, Ethiopia, 2001-02 -- 5.11 Regression Estimates of the Relation between Numbers of Teachers and Students across Government Schools by Level of Instruction, Ethiopia, 2001-02.

5.12 Regression Estimates of the Relation between Total Costs and Enrollments across Government Schools, Ethiopia, 2001-02.