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12TIME FOR COLLABORATION: THE ROLE OF PUBLIC-PRIVATE PARTNERSHIP IN INCLUSIVE
EDUCATION
Yussupova D.
PhD student, Specialty of Public Administration, Narxoz University, Kazakhstan DOI: 10.5281/zenodo.7275894
Abstract
The article is devoted to the analysis of the role of public-private partnership in the sphere of education, in particular, in the inclusive education. The authors emphasized various approaches to the definition of the concept of public-private partnership (PPP), its advantages in realization of projects related to educational sectors. A key condition for the development of PPPs in education is the reduction of the budgetary capacity of the state, with increasing demand for the availability and quality of educational services. State program for the development of education and science for 2020-2025 of the Republic of Kazakhstan was taken into consideration to show the importance of PPPs in educational policy. The article reviewed the forms and mechanisms of public-private partnerships used in inclusive education, and considered possible challenges and risks in quality assurance and financial management. Moreover, cost-effectiveness criteria for financing inclusive education, long evaluation of "slow capital" of educational policies and its results and demand for more data collection can cause difficulties for the effective realization of PPP projects in education. The need for further research work is highlighted as part of a more detailed study of the institutional environment for the implementation of public-private partnerships in an inclusive system.
Keywords: public-private partnership, inclusive education, sustainable development goals, mainstream schools, State Program, quality assurance, financial management.
Introduction
Public-private partnership has established itself as a successful tool for interaction between business and the state. The concept of public-private partnership (hereinafter referred to as PPP) is interpreted at the international level as a tool for building up infrastructure, overcoming budgetary constraints, and as a new style of public administration. In general, PPP is a mutually beneficial cooperation between state bodies and entrepreneurs in industries that are, traditionally, the responsibility of the state on the terms of a balanced distribution of risks, benefits and costs, rights and obligations defined in the relevant agreements.
Researchers mainly emphasize the significant purpose of PPP being as a financial instrument for increasing the efficiency in using public sector resources, thus the benefits of PPP are associated only with economic indicators. However, this definition impoverishes the PPP concept and leads to underestimation of its potential. PPPs also play an overwhelming role in taking the consideration to deal with social sector. The social orientation of PPP in many scientific papers is considered among the essential characteristics of PPPs. In other hand, private sector is taking up the social function of the state in creating infrastructure facilities, more often in the social sphere. PPPs are catching up to meet the social needs of the population through the provision of public services and improving their quality. Nevertheless, the modern scientific view of the problem leads to the fact that the effectiveness of PPP can be assessed much more widely (Jeffares, et al, 2013) and social value of PPPs are relevant in such assessment.
With the development of a market economy, and taking into account the need for its transition to innovative rails, PPP is becoming increasingly popular in the educational field. A key condition for the development of PPPs in education is the reduction of the budgetary capacity of the state, while at the same time huge and
increasing demand for the availability and quality of educational services (Verger & Moschetti, 2017; Patri-nos, et al., 2009). Under these conditions, the state seeks to create opportunities for the participation of private investors in educational projects based on the principles of PPP.
PPP is becoming a more significant public approach especially in the implementation of inclusive education. Moving towards the sustainable development goals and building an equal society, countries today are trying to implement the norms of the Salamanca Declaration on Principles, Policy and Practice in Special Needs Education and the global movement under the auspices of UNESCO "Education for All". PPP is considered as an innovative policy action for creating a barrier-free and accessible educational system for more vulnerable categories of people. Many governments, international organizations and other key education stakeholders believe that by partnering with the private sector, countries can expand their education systems in a more efficient, flexible and efficient manner (Robertson, et al., 2012).
However, there are very few countries, which are implementing the principles of PPPs in education, and especially in inclusive education. The governments still face many challenges and uncertainties in collaborating with private sectors to deliver educational services. Despite of that, many non-governmental organizations and private institutions take the role of meeting the needs of most vulnerable groups of society. Parents' community, charity organizations and private businesses nowadays show the interest in the field of inclusive education. They build the network with the government, take part in governmental initiatives and with the state sponsorship enter the educational system, by building private schools, special and inclusive educational centers to promote inclusive society.
Taking into consideration the nature of PPPs and its features, this article analyzes the role of it in educational sector, making emphasis on emerging collaboration between government and privet enterprises in the sphere of inclusive education. By giving an outlook on literature review on the definition of the PPP, its goals and tasks, the authors highlight the significance and potential of the PPP in education sector. Further, the article observes the PPP development in Kazakhstan and its role, challenges and risks in inclusive education.
Methodology
The given research was based on qualitative descriptive method of study. The data was gathered through primary and secondary sources. The paper analyzed the data presented on public resources, including government portals. To observe the purposes, tasks and significance of PPPs, the authors used materials from international organizations, legal acts and regulations related to laws on PPP projects, on PPP, the public sector, the private sector. The State Program for the development of Education and Science 2020-2025 was taken into consideration to look at the importance of PPPs in education sector.
Main part
Public-private partnership: understanding, purpose, mechanisms and its role in education sector
The goal of PPP is to form and strengthen long-term cooperation between the state and the private sector by pooling resources to improve the availability and quality of public goods and services.
The main objectives of this kind of partnership
are:
• involvement of the private sector in the management of state assets;
• reducing the burden on the budget;
• attraction of investments;
• expansion of models of interaction between the state and business.
The main characteristics of PPPs are the use of private investment, the pooling of resources, and the transfer of risks from the public to the private sector. In scientific sources, many researchers, exploring the nature of PPP, define it through different categories, focusing on the financial, investment, managerial, innovative, legal characteristics of PPP. The financial and economic emphasis is especially evident in the approaches of international development banks, which focus on the return of invested funds by a private partner and the criteria that determine the amount of his remuneration. For example, the World Bank Handbook defines PPP as a long-term contract between public authorities and a private party to create public assets and provide services, in which the private party assumes significant risks and management responsibilities and is rewarded based on its performance (World Bank, 2014).
At the present stage, one of the most important factors influencing socio-economic development is the cooperation between government and business, in other words, public-private partnership (PPP). In order to identify the main conceptual features of this mechanism, it is necessary to understand the term "public-private partnership".
J. Delmon (2010) considers PPP as an agreement between the public and private parties regarding the production and provision of infrastructure services. He sees its main meaning in the possibility of using additional private investment and emphasizes the value of PPP as a means of increasing the efficiency of budget financing. M. Gerard (2001) interprets PPP as a way to improve public services and public sector assets. According to the Russian researcher, Varnavsky V.G. (2011), "public-private partnership is a legally formalized rule (for a fixed period)". On the one hand, it involves co-investment and risk sharing, a system of relations between the state and municipalities. On the other hand, it involves citizens and legal entities, the subject of which are state and/or municipal property, as well as services performed and provided by state and municipal bodies, organizations, institutions and enterprises".
The theme of public-private partnership has also been reflected in the domestic academic literature. According to T.M. Mataev (2014), PPP is "a form of relationship between the state or local governments and private partners, which are drawn up in the form of a contract". It provides the implementation and co-financing of socially significant projects on a long-term basis and the distribution of risks, responsibilities and rewards.
PPP has been proposed by the United Nations as a tool to achieve the Sustainable Development Goals (SDGs). In 2015, the Member States of the UN signed the 2030 Agenda for Sustainable Development, agreeing on 17 principles for sustainable development. SDGs are directed to solve the problems faced by all people. PPPs have the potential to meet the vast infrastructure needs of governments with the capacity and resources of the private sector to achieve the SDGs (ASIAN, 2017). An analysis of the SDGs shows their relationship with PPPs, since many of them are aimed at ensuring and expanding the access of various groups of the population to the most important and popular public services, including water supply, energy supply, education, as well as improving their quality and quantity, improving living standards.
The Economic and Social Commission for Asia and the Pacific shares the same view of PPPs as a means to achieve the SDGs. According to it, the achievement of the SDGs through PPP was due to the presence of a significant share of the sectors of health, education, water and energy supply by private sectors. PPPs foster and stimulate the quality, coverage and accessibility of services, provision of inclusive and quality education for all and lifelong inclusion, help in providing water supply, as well as access to reliable, sustainable and modern energy for all (ESCAP, 2017).
Taking into consideration the increasing role of PPPs in social sphere, educational sector is attracting an increasing attention for investment from private sector. At the present, the practice of PPP in the educational sector is reduced to partnerships for the construction, reconstruction, modernization, maintenance of capital facilities of educational institutions. Moreover, the practice of using forms of PPP in education is ex-
tremely rare. The search and implementation of innovative PPP mechanisms in the educational sphere in many countries remains one of the priority tasks.
As Robertson et al. (2012) emphasize: "PPPs are increasingly perceived as an innovative policy approach to provide education for all. They purpose to provide the most vulnerable population with new educational opportunities". Many governments, international organizations and other key education stakeholders consider that, by partnering with the private sector, countries can expand their education systems in a more efficient, flexible and effective way.
Public-private partnership in the construction of a school infrastructure is one of the effective models of PPP education management in many countries. In some cases, the state grants a franchise to private institutions to build part or all of the main school facilities. Once completed, private institutions will operate and manage the facilities for the duration of the contract period, and government departments will pay corresponding fees to private institutions. After the expiration of the contract, private institutions will transfer operating rights to government departments free of charge.
If we analyze the experience of foreign countries, typical examples of this model include the Private Finance Initiative (PFI), launched in 1992 in the UK, and the New Campus Project (NSP), launched in 2002 in South Wales, Australia. The PPP model of school infrastructure construction in countries such as the UK and Australia has the following general characteristics:
1) private institutions are only responsible for investment in facility construction funds and non-core services to educational centers;
2) government departments strictly control basic services such as education and training;
3) long contract period between state and private institutions (Zlotnikova, et al., 2019).
Gita Steiner-Khamsi (2019), Professor at the Geneva Graduate Institute and Director of the Network for International Policies and Cooperation in Education and Training (NORRAG), emphasizes the new trend in the development of PPPs in education sector. She draws attention that today government funds privately run international schools with the aim to enrich the regular curriculum or to improve the quality of education in public schools. As part of this effort, public schools are internationalized. In some countries, like Indonesia, Peru, Japan, including Kazakhstan, governments use private schools with international system as innovation hubs to upgrade its public system of education.
In higher educational system, the dual programs are becoming attractive and effective for many universities. The universities started to offer dual programs for their students to accommodate their learning process more effectively with practice by collaborating with businesses and future job offers. Moreover, establishing close contacts between educational organizations and major business partners with the participation of government agencies will create an innovative system of personnel training according to programs that will meet the needs of business and the requirements of the labor market. Such cooperation will open up opportunities for active participation of business structures in
the educational process. Thus, PPP will begin to stimulate the demand for educational services, which will gradually transform into an investment model of the educational system for training personnel in promising areas of the economy.
Public-private partnership dynamics in Kazakhstan and in inclusive education
In Kazakhstan, public-private partnerships are gaining great importance. Based on foreign experience, it can be stated that PPP is one of the most effective methods for introducing innovative mechanisms for interaction between government and business, as well as attracting private capital to the country's economy. This mechanism works in the interests of both the state and the private sector.
According to the Kazakhstan Center for Public-Private Partnerships (n.a.), as of February 4, 2021, there were 1.3 thousand projects in Kazakhstan. Including 275 projects were at the stage of the competition, 864 projects were implemented, 38 contracts were terminated. Most of the PPP projects were in education, healthcare, as well as energy and housing and communal services.
Public-private partnerships are becoming significant in meeting the UN Sustainable Development Goals. The active collaboration of the state and private sectors will facilitate the achievements of these important goals. Kazakhstan has taken a number of measures to achieve these goals, in particular, in fostering the quality and accessible education. It embodies these goals in its state programs and sets strategic mechanisms to achieve them.
According to State Program for the Development of Education and Science for 2020-2025 Kazakhstan highlights the development of the public-private partnership as one of key opportunities. In providing equal conditions and access to quality education it is recommended to increase the set of preschool and school institutions through the mechanisms of PPPs and per-cap-ita funding. The government continues to order state educational request from the private sectors to open places for preschool education and upbringing. The state in its strategic plan sets the task for the improvement of school cafeterias at the expense of the PPPs. The organization of school meals will change to meet the needs of children and parents (Ministry of Education, 2019).
A network of suburban children's camps is planning to be developed also through the network with private sectors. Local executive bodies will organize thematic shifts of summer camps for children from socially vulnerable, low-income families, children from the "risk group", children with deviant behavior, thus promoting an inclusive society.
Taking into account demographic growth and urbanization with the shortage of student places, Kazakhstan insures the expansion of school networks through PPPs. Funding priorities are given to those constructions, that have physical deterioration of the building, the accident rate of the building, the need for major repairs, the presence of a shortage of student places, natural growth and migration of the population. The amount of funding is determined based on the norm per
student in the region. It is also planning to improve the transport conditions for the students living far away from educational institutions by attracting private sectors to provide these facilities. These developments by their realization are going to meet the needs of all children facing difficulties related to their physical and emotional behaviors and disadvantages according to their economic and linguistic barriers.
Public-private partnerships are to foster an inclusive education, therefore by building an inclusive society. Taking the burden of the state, which is in budget and resource deficit, private sectors are of much importance to facilitate the necessary services in social and economic spheres. For instance, as Vice-Minister of Education and Science Bibigul Asylova says, in Kazakhstan until 2025 1000 schools are planned to be constructed, 101 of which will be built through the mechanisms of PPPs. This number of schools will cover 170 thousand student places (In Business, 2021).
Nowadays, some private schools as "Binom" and "Quantum" launched by PPPs are offering inclusive education for the children with special educational needs. These schools are considered as innovative implementing the methods and practices of best international schools. Another example are inclusive educational institutions built by the Kamkorlyk Roadmap strategy. "In 2020, 16 inclusion support rooms were opened in secondary schools in Atyrau, Almaty, East Kazakhstan, West Kazakhstan, Zhambyl, Kostanay, Turkestan regions and the city of Nur-Sultan. In addition, within the framework of the local budget and public-private partnership in 2020, more than 332 inclusion support rooms were opened in educational organizations, covering 2,889 children with SEN," - says Gulmira Karimova, Chairman of the Committee for Preschool and Secondary Education of the Ministry of Education and Science of the Republic of Kazakhstan (Inform.kz, 2021). The inclusive practices in education are being promoted by parents' community, charity organizations like Dara and Bolashaq and other social institutions (Ozim Platform, Wunder Academy), which are funded by private sponsorships or donations. They take the initiative in knowledge sharing, increasing awareness of special needs children, preparing, and supporting the teaching staff in schools with inclusive education. Further, they gradually establish closer cooperation with government in meeting the common goal to reach an inclusive society.
However, there are few challenges that PPPs face in education sector. Being a young mechanism, PPPs are going through transformation phase. During the independence years, only a few schools and a number of kindergartens were built according to the standard PPP format. As Bibigul Asylova points out, the standard PPP model in the construction of schools is not entirely attractive for business, there are many bureaucratic procedures, a complex mechanism for coordinating documentation, and the lack of budgetary limits for local executive bodies. To deal with these problems, the akimat of Nur-sultan applied to the Ministry of Education and Science with new approaches to the implementation of PPP projects, taking into account co-financing from the republican budget.
Another challenge in the realization of PPPs in educational sector, and particularly in inclusive education, is the quality management. There are still no effective and unified mechanisms for controlling the effectiveness of private educational institutions for quality education and infrastructure. Some of the educational institutions may lack competence in innovative techniques, accessible and usable learning resources and environments. They may face challenges in designing the curriculum which represents diversity, enables students gain knowledge and develop proficiency in multiple and flexible ways (Villegas, 2015). These institutions built though PPPs also may struggle with filling the competence in risk-management and in financial management (techniques of project management, economy of spending, etc.).
Steiner-Khamsi (2019) by developing the mentioned problems points out three main challenges to PPPs in education. First, it is "the criteria of cost-effectiveness, frequently used as one of the criteria in innovative financing (e.g., social impact bonds or other types of results-based financing modalities) may have an adverse effect on inclusive education. If given the choice, private providers would prefer not to enroll students with special needs or marginalized groups, because their education requires additional support measures that are expensive". Second, it is the need for "slow capital" in education. As the impact of schooling and education there may not be evaluated easily in short period of time. It necessitates longer duration to see the results and benefits of its services. Third, "outcomes-based reform and results-based financing in education means, in practice, more tests for students and more data collection from schools" (Steiner-Khamsi, 2019). However, as more and more data is collected on students and schools, parents, teachers or even schools opt to not have their children and staff tested so frequently. That makes the process of evidence gathering and data collection on the effectiveness of ongoing process more difficult.
Findings and Discussion
From the previous parts, it becomes evident how public-private partnerships are taking a significant role in providing educational services. Taking up the burden from the state, it supports governments to overcome its budgetary deficits and makes the services more available and qualitative. As in inclusive education sector, PPPs are becoming active in meeting up the special needs of children who are in vulnerable positions. For example, the provision of meals, transportation services to children or students from remote areas, dormitories, or construction of new schools/kindergartens in rural areas are more and more going to be supplied by private sectors. This type of partnerships encourages states to meet the sustainable development goals in delivering quality, free and available education for all.
In Kazakhstan as well as in other parts of the world the significance is given for the PPPs' role. The State Program for the development of Education and Science for 2020-2025 emphasize the big opportunity for the development of PPPs in educational sector. It recommends the launch of new preschool/school institutions
by offering per-capita funding to private sectors. It issues educational request for private enterprises to open new educational places for students in places where it is necessary. The state gives funding priorities to the constructions that have physical deterioration of the building, the accident rate of the building, the need for major repairs, the presence of a shortage of student places, natural growth and migration of the population. Kazakhstan also encourages PPPs to take part in provision of summer camps to children with special educational needs. Local executive bodies will organize thematic shifts of summer camps for children from socially vulnerable, low-income families, children from the "risk group", children with deviant behavior, thus promoting an inclusive society.
There are also private schools launched by PPPs, which offer inclusive education for the children with special educational needs. These schools are considered as innovative implementing the methods and practices of best international schools. Parents' community, charity organizations and other social institutions funded by private sponsorships or donations, also promotes the inclusion. They take the initiative in knowledge sharing, increasing awareness of special needs children, preparing, and supporting the teaching staff in schools with inclusive education.
Nevertheless, the PPPs in educational sector are facing challenges that should be taken into consideration. There are still no effective and unified mechanisms for controlling the effectiveness of private educational institutions for quality assurance of education and infrastructure. The PPPs built institutions may struggle with meeting the competence in risk and financial management.
Despite of these risks, the role of PPPs is tended to increase and develop. Especially, in the current situation of the post-Covid period, most countries worldwide, including Kazakhstan, faced serious economic and social problems. The pandemic consequences led to the fall in economic activities, cut in foreign investments and decrease in state budget. These dynamics put the state in a deadlock by seeking the ways of overcoming the crisis. Therefore, the governments are in need of active collaboration with private sectors in delivering the most necessary services for their citizens.
Conclusion
The development of PPP projects is essential for all countries, including Kazakhstan. This article examined the increasing role of PPPs in the field of education in Kazakhstan, particularly in inclusive education sphere. In order to meet the UN Sustainable Development Goals, especially in delivering quality education, Kazakhstan promotes the role for PPPs and comes with the mechanisms of building collaboration with private sectors. PPPs are taking the role in construction, infrastructure building, school transportation and meal delivery, provision of access to education for the children from vulnerable physical, social and economic backgrounds. Despite of the current developments in PPPs, the collaboration between state and public sector faces some challenges, as the question of the competence in financial, risk and quality management.
Limitations of the study. To conduct an in-depth analysis of Kazakhstani projects in the field of inclusive education, PPPs need to be analyzed based on their types, scope and implementation throughout the country. However, PPP ownership rights of project parties and external parties have limited access to relevant data. The study therefore relied heavily on publicly available documentation and data.
References
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ACTUALIZATION OF PROCESS MANAGEMENT IN THE CONTEXT OF THE POST-WAR TRANSFORMATION OF THE UKRAINIAN ECONOMY
Bashuk I.,
Postgraduate at the Department of Business Economics and Entrepreneurship
Shvydanenko H.
Ph.D. in Economics, Professor at the Department of Business Economics and Entrepreneurship
Kyiv National Economic University named after Vadym Hetman
DOI: 10.5281/zenodo.7275900
Abstract
The article reveals the relevance of enterprise management based on the process approach, with due regard to the post-war reconstruction of the business environment. An analytical comparison of the economies of Ukraine and developing countries has been carried out. The required prerequisites for the expanded reproduction of the post-war economy, primarily owing to the national industrial complex, have been identified.
Keywords: transformation, restoration, revival, process approach, business process.
Nowadays, Ukraine in general and the business environment in particular, tend to have complex political, economic and social conditions resulting from the full-scale military invasion of the Russian Federation on the territory of Ukraine. Therefore, it is particularly critical for enterprises to form such internal prerequisites and management tools that would enable their full adaptability manifesting in a quick and adequate response to any external challenges. This purpose requires to form and use such methods and tools of adaptation to changes in market conditions, which would adequately meet the modern needs of the war and postwar state, the revival of the business environment due to the possibility of preventive decision-making in response to possible or existing changes in the external environment.
In our view, a modern process approach to enterprise management can serve as such a tool characterizing it as a set of interconnected business processes.
Moreover, in order to better understand the possibilities and effectiveness of the process approach to management, it is appropriate to analyze the modern prerequisites of the business environment for changes owing to its use.
From a macroeconomic perspective, the most justified and vital key indicator is the value added at purchasing power parity, which is generated by the country's economic complex. Comparisons of countries show that the national economy, considering this driver, produces goods with a significantly lower value added (Figure 1).
