document ow The World Bank FOR OFFICIAL USE ONI-Y Report No. 4891-KO STAFF APPRAISAL REPORT KOREA PROCRAM FOR SCIENCE AND TECHNOLOGY EDUCATION may 1, 1984 . Projects Department East Asia and Pacific Regional Office This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRRENCY EQUIVALENT W 800 - $1.00 W 100 - $0.125 (As of April 30, 1984) GOVERNMENT OF KOREA FISCAL YEAR January 1 - December 31 ACADEMIC YEAR September - July PRINCIPAL ABBREVIATIONS AND ACRONYMS USED EFB - Education FacilitLes Bureau EPB - Economic Planning Board FYYP - Fifth Five-Year Plan GEB - General Education Bureau GHS - General High School HEB - Higher Education Bureau KAIST - Korea Advanced Institute of Science and Technology KCUE - Korea Council for University Education KEDI Korea Education Development Institute KOSEF - Korea Science and Engineering Foundation MOE - Ministry of Education MOST - Ministry of Science and Technology NIERT - National Institute for Educational Research and Training OPM - Office of Planning and Management OSROK - Office of bupply, Republic of Korea R&D - Research and Development RSC - Regional Science Center SEDC Science Education Development Comittee SOE - Statement of Expenditure TIEB - Teacher and International Education Bureau FOR OFFICIAL USE ONLY KOREA PROGRAM FOR SCIENCE AND TECHNOLOGY EDUCATION Table of Contents Page No. LOAN AND PROGRAM STJlMARY ...... *.......... **************..*********** i BASIC DATA ............ .....*....* .... .* iii 1. SC(.ENCE ANe TECHNOLOGY EDUCATLON SECTOR...................... 1 Introductior ....*.*.**.**..***.*...*.............. 1 Science and Technology Education at the Graduate and College Levels ................................... ... 2 quality Control ......................................... 2 P-search ........................ ........ 3 Supply and Qualifications of Faculty .................... 3 Facilities and Equipment .......*. . . . . .... . *. . . . . .... . . . . 3 Science Education at the Secondary Level................... 4 Practical Science Activities ............................ 4 Curriculum Development and Policy Studies ............... 4 College Admissions .... *....... .... *.. 5 Training of Science Teachers . ......... 5 Science Education Facilities and Equipment ...... ..... 5 Manpower Monitoring * ....... _ *- ........... . 5 Education Investment and Financing Gap ............ 5 Government Strategy and Bank Role .............. 0-0 ...... 6 2. PROGRAM FOR SCIENCE AND TECHNOLOGY EDUCCATIO.o....oo...... .... 8 Program Objectives 8 Graduate Training and Research, and CaLlege Levels 10 Quality Control ........ ..0*..0.6-90*** 10 Concentration of Graduate Education ........10 Research Promotion and Funding ... .11 This report is based on the findings of an appraisal mission in September/ October 1983 comprising R. Drysdale (mission leader), J. Gergely (young professional), R. Montague (architect), S. Sung (technical education spe- cialist), P. Black (science education consultant) and K. Rao (science and technology policy consultant). I This document has a restricted distribution and may be used by recipients only in the performance of| their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Page No. Collaboration Between Graduate Schools and Research Institutes ....... *0 * * ** * * * ....... ............... 11 Graduate B.-cation and Research in Science Education 11 Faculty Recruitment and Development ..................... 1l Facilities and Equipment ............. ... * ** ... . .. 15 Secondary Level Science Education s 15 Science Curriculum ................ *e ............. . 15 Science Education Development Committee...e0............. 15 Program Evaluation u .** O0e * ** ****OOeeeeOe 16 College Admissions Procedures .........O.@..... Ot e a 16 Recruitment and Staff Development ..................... 16 Facilities and Equipmeint ..........a........e.e.,o 17 Sector Planning ........................ ,.. 17 3 *HANAGE1ENT AND IMPLE4ENTATiOU .............. .. . . . . .. ..... . .e.oe ** *o 18 The Sector Approach i............. ... ...... .*. 18 Organiza.tion and Staffing ...............*......... ... * ^18 Miniscry of Education (MOE) Organization 18 Ministry of Science and Technology (MOST) Organization es 19 Staffing *. . .. . ........ .. . ...... e* 0e . 0. *.. . *.. *. .0 19 Implementation Procedures .......................... 20 Implementation under HOE ..... *. *............. ... 20 Implementation .under MOST ............................... 20 Program Monitoring ......... .. . ..... . * ***4**** CO CCCO 21 Implementation Schedule 21 4. COST AND FINANCING.........eeee.. *. ...g... 21 Investment Program 22 Recurrent Cost Implications 23 Financing and Bank Contribution ............... . 24 Financing of Private Institutions ......................... 26 Procurement ***** e0CC********OCeCCCCCCCCCCC,egCC 26 Disbursements .. ... **. 27 Accounts and Audit *....a.. . . . .. . ..28 5. BENEFITS AND RISKS ...................... . . . 28 6. AGREEMENTS REACHED AND RECOMMENDATIC. . 29 Page No. List of Tables in Text 2.1 Requirements for New Faculty (1983-90) ....... ............ 13 2.2 Sources for Additional F'aculty (1983-90) ................. 14 2.3 Proportion of Faculty with Doctorate Degree ............ 14 4.1 Investment Program by Program Component 22 4.2 Estimated Additional Recurrent Expenditure ... 24 4.3 Overall Financing Plan by Program Component .............. 25 4.4 Estimated Disbursement Schedule by Semester .............. 27 Annexes 1. Action Program on Sector Policies and Institutional Development 31 2. Chart 1: Organization of the Korea Advanced Institute of Science and Technology .34.......3 3. Korea Science and Engineering Foundati.on .*.......35 Chart 1: Organization of the Korea Science and Engineering Foundation 37 4. Table 1: Planned Expansion of Graduate Programs , 38 5. Science and Technology Manpower 39 Table 1: Projection of Total Undergraduate Enrollment and Annual Output of Colleges of Natural Science and Engineering .. .... .......... . 41 Table 2: Projection of Total Graduate Enrollment and Annual Output of Scientists and Engineers 42 6. Chart 1: Responsibilities for Management and Implementation ....a..43 7. Chart 1: Organization of the MOE ..........44 8. Chart 1: Organization of the MOST .................0... 45 9. Chart 1: Procedures for Generating and Processing Subprojects 46 10. Criteria and Guidelines i1a. General Criteria for Approval of National Programs and Subpcojects ....... 47 lob. Eligibility Criteria and Guidelines for Nation;1 Programs 50 lOc. Eligibility Criteria and Guidelines for Allocation of Loan Funds under Subprojects .......... .53 11. Chart 1: Procedures for Selection of Research Projects 56 12. Key Performance Indicators .......57 13. Chart 1: Schedule of Implementation .59 Page No. 14. Program Costs and Financing Table 1: Investment Program by Category of Expenditure and by Public and Private Funds 60 Table 2: Investment Program by Year and Program CoMponent to. o to S * . t t o . . . o o ttt * *.. 61 Table 3: Overall Financing Plan by National Program and Subproject 6. 2 .............. . ... .. t tOt O2 Table 4: Tentative Bank Financing by Program Component and Item of Expenditure ,,o.t...Otttt..o.to 63 15. Table 1. Procurement Profile ...... 64 16. Selected Documents and Data Available in the Program File.. 65 KOREA PROGRAM FOR SCIENCE AND TECHNOLOGY EDUCATION Loan and Program Summary Borrower: The RepubLic of Korea Amount: $100 million equivalent (including capitalized front-end fee) Terms. 15 years including thr'oe years of grace, with interest at the standard variable rate. Program Description: The basic objective of the science and technology education sector program is to improve the quality of science and tech- nology education in Korea, in contribution to the country's skill, knowledge and technological requirements in the 1980s and beyond. The sector program includes policy and institu- tional changes and selective investments designed to: (a) control the quality oe graduate- and college-level educa- tion; (b) concentrate graduate education in a few key institu- tions; (c) strengthen an institution for research funding and promotion; (d) improve collaboration between academic institu- tions and research institutes; (e) establish an institution for advanced training and research and development in science education; (f) adjust the college admissions procedures to reward student achievement in school, including performance in laboratory-based assignments; (g) introduce new secondary science courses with a greater emphasis on practical work; (h) strengthen monitoring and evaluation procedures; (i) recruit and upgrade teaching staff; and (j) improve facil- ities and equipment. The overall program, of which a part would be financed under the proposed loan, would comprise about five national programs, for accreditation assistance, research grants, staff development, equipment for secondary schools and regional science centers, and studies, and about 60 subprojects for equipment requirements of specific graduate schools and colleges. By 1990 the sector would supply about 7,000 students per year at the graduate level in science or engineering, 18,000 per year at the college level in science or science education, and 400,000 students per year from general high schools with an improved science curriculum. The proposed loan entails some risk with regard to complexity of policy and institutional changes and the management burden. A system of program monitoring, including annual Joint and mid-term reviews by the Bank and the Borrower, would substantially mitigate this risk. - ii - Program Coati (for the period July 1984 - June 1988) Local Foreign, Total Graduate Tra imng and Research 90.2 102.4 192.6 College Science Education 77.8 80.7 158.5 Secondary ScLence Education 100 . 90.5 191.4 Total Base Cost 268.9 273.6 542.5 Contintencies: Physical 26.d 27.4 54.2 Price 50.3 48.1 98.4 TotaL Program Cost /a 346.0 349.1 695.1 Front-end Fee on Bank Loan 0.0 0.2 0.2 Total Finamcing Required 346.0 349.3 695.3 /a Total program cost inclutes indirect taxes and duties estimated to be about $21 million or 3% of total program cost. imported equipment and materials wotld be exempt from duty. Financin Proposed Plani Government Private IBRD Loan Total 7 IBRD ----------------$ millio…--------------- financing Graduate Training aad Research 120.1 32.2 40.3 192.6 21 ColLege Science Education 99.6 30.0 28.9 158.5 18 Secondary Science Education 114.4 68.3 8.7 191.4 5 Total Base Cost 334.1 130.5 77.9 542.5 14 Contingencies 93.9 36.8 21.9 152.6 14 Total Pro.gram Cost 428.0 167.3 99.8 695.1 14 Front-end Fee on Bank Loan 0.0 0.0 0.2 0.2 100 Total 7inancing .Required 428.0 167.3 100.0 695.3 14 Estimated Disbursement from Bank Loan: BanRk F' 1985 1986 1987 1988 1989 Annual 5 12 28 40 15 Cumulative 5 17 45 85 100 Rate of Return: N.A. - iii - KOREA PROGRAM FOR SCIENCE ANI) TECHNOLOGY EDUCATION Basic Data (1983) Secondary Education Middle School Enrollment (Grades 7-9 equivalent) 2,672,000 % female 48 Z in private schools 34 Gross enrollment ratio 96 Female enrollment ratio 90 High School Enrollment (Grades 10-12 equivalent) 2,013,000 % female 47 % in private schools 59 Gross enrollment ratio 78 Female enrollment ratio 72 Higher Education Enrollment (Grades 13-19 equivalent) 1,073,000 % female 27 Gross enrollment ratio 25 Female enrollment ratio 17 Percentage of enrollment in: Evening classes 12 Seoul 33 Private institutions 75 Student:teacher ratios Engineering education 38:1 Science education 28:1 Applicant:admissions ratio 2.6:1 Scholarship coverage in higher education 5.1% of enrollment Fee exemption coverage in higher education 4.4% of enrollment Of which science Total and engineering Distribution of enrollments in higher education (x) Postgraduate courses (Grades 17-19) 7.9 23 Universities and colleges (Grades 13-16) 72.0 33 Junior colleges (Grades 13-14) 20.1 8 - iv - College level Graduate level (aster's a doctorate) Enrollment X Enrollment % Science and Science Education by-field of study (1982) /a Mathematics and computer science 14,400 24 1,OOU 24 Biological sciences 7,100 11 700 17 Chemical sciences 10,800 18 850 20 Earth sciences 2,200 4 200 5 Physics 8,000 13 600 14 Others 181500 30 850 20 Total 61, 000 100 4,200 100 Engineering by field of study (1982)-/a Civi. engineering 29,300 24 700 8 Electrical engineering 35,200 28 1,400 17 Mechanical engineering 31,800 26 1,000 12 Chemical engineering 10,200 8 1,000 12 Orhers 17,500 14 4,300 51 Total 124,000 100 8,400 100 Financial Data (for 1982) Public expenditure on education and training as v of GNP 6.0 M'OE's share of central government expenditure (X) 20.6 Private expenditure on education and training as x of GNP 3.9 Total expenditure (public and private for 1982) for higher education (college, university, graduate school) $1,300 million Estimated total private expenditure for higher education $975 million Percentage of expenditure for development in colleges of natural science and engineering 15% Unit Recurrent Costs (public and private for 1982) Average for higher education (college, university, graduate sc1, l) $1,400 Average for science education $1,500 (estimate) Average for engineering education $1,600 (estimate) /a Includes only full-time students at colleges and KL.AST. Source: Y0E, MOST and Bank staff estimates. KOREA 1. SCIENCE AND TECHNOLOGY EDUCATION SECTOR Introduction 1.01 If Korea is able to sustain rapid economic growth, by the mid-1990s it will emerge as an industrialized export-dependent economy with a rapidly declining reliance on agriculture. Production systems will become more skill- and knowledge-intensive and employ more advanced technologies. To achieve this deepening of the nation's industrial structure, science and technology will play an important role in exploiting the nation's growth potential. This larger role for science and technology within the Korean economy requires major investments In scientific and eechnological infrastructure and in man- power development. Government projects that: the ratio of research and development (R&D) spending to GNP will grow from about 0.7% in 1979 to 2.1% by 1991; the proportion of that investment undertaken by private industry will increase from 34X in 1979 to 60% in 1991; personnel in R&D will grow from 16,000 in 1979 to about 110,000 in 1991; and the number of scientists, engin- eers, technicians and craftsmen in high technology fields overall should experience a corresponding increase from 640,000 (or 4.7% the labor force) in 1979 to 1,400,000 (or 7.6% of the labor force) itl 1991.'_ 1.02 In recognition of the priority of manpower deve'.opment, the program for higher technical education in Korea (Loan 1800-KO approved February 19, 1980 in the amount of $100 million) addressed the need for improvement in engineer- ing and management education and technician training. The focus of attention under the proposed loan is graduate training and research in science and engineering fields and science education at the college and secondary levels. For the sake of convenience, science education and related graduate training and research in science and engineering are called science and technology education. Science and technology education is defined as the &ector in this report. Science and technology education, encompassing about 98 colleges and over 800 general high schools (GHSs), is largely under the supervision of the Ministry of Education (MOE). The Ministry of Science and Technology (MOST) is responsible for a major graduate school and research institute, the Korea Advanced Institute of Science and Technology (KAIST), other research institutes, and a research foundation, the Korea Science and Engineering Foundation (KOSEF). A large private education sector, accounting for about 75% and 45% of enrollment at the college and secondary levels respectively, complements public education. It operates under close super- vision by Government, including government regulation of fees, and efZectively expands educational opportunity in both urban and rural areas without social bias. Both public and private colleges and schools charge fees with the direct cost to students of private education varying from 40% to 70% above 1/ The Fifth Five-Year Science and Technology Development Plan, 1982-86, MOST, 1981. - 2 - that of public education. Over the last decade education has expanded rapidly at all levels in Korea. Full enrollment of the primary school age group was achieved by 1975; over 80% of the corresponding secondary age group is currently in school. The share in higher education has increased sharply to about 25% in full-time studies in 1983. 1.03 In order to meet the expected demand for higher technical and scien- tific manpower, expansion of training capacity in selected fields is required, particularly at the graduate level. Given the current state of educational development in Korea, an approach that emphasizes quantity alone would be an inadequate response. New positions opening up within industry, in government research institutes, and in higher education demand advanced knowledge and skills. The quality of education that is required is much higher than the current, average standard in Korea, particularly with respect co an experiment-oriented approach. Rather than a major expansion of training capacity, the overriding goal is qualitative improvement to be acco7plished through policy and institutional change and selective investments.- Science and Technology Education at the Graduate and College Levels 1.04 Science and technology education at the graduate and college levels is strong in the relatively bigh standards al.ready achieved in a few univer- sities and research institutes. It is weak in: (a) the failure to apply standards of quality control and to concentrate resources, particularly for graduate education, ln a few, select institutions; (b) the curtent low level of research activity; (c) the overall shortage of qualified faculty; and {d) the inadequate and poorly equipped facilities of many institutions. 1.05 Quality Control. There is wide variation in quality within the system of 98 colleges 3ind universities (21 public, 77 private) with science or engineering programs._' With the exception of undergraduate programs in engineering and in colleges of education, this diverse network of institutions is not subject to rigorous, periodic evaluation and there are no clear guide- lines as to what constitutes acceptable standards. This lack of quality control among institutions leads to fragmentation of courses and failure to identify critical areas for remedial action, and adversely affects the quality and relevance of training. Since necessary conditions for graduate education can be satisfied in only a few institutions, Korea confronts a difficult challenge of strengthening selectively the system of graduate education. A long-term blueprint is required for the development of graduate education in 2/ Korea: Sector Survey of Science Education, IBRD Report No. 3775-10, January 12, 1982. 3/ Within these institutions are 313 science departments that offer the bachelor's degrees, within which 120 departments offer the master's degree and 85 offer the doctorate. There are 25 departments of science education at the bachelor's level. To these are added 346 departments of engineering, within which 179 offer the master's degree and 120 offer the doctorate. - 3 - the sciences and engineering that is at once more concentrated and specialized and that meets objective standards of quality. In science education, Govern- ment has not addressed the need for advanced training in Korea for faculty of the scien.ce education departments of the colleges of education. 1.06 Research. Faculty iesearch is an essencial component of excellence in graduate- and college-level programs. However, research grants from all sources have averaged only $4,000 each. Limited research funds ot MOE have been allocated on an Lnstitutional basis and for research projects of short duration. An institution for promotion of academic research in scien_e and technology exists in KOSEF established in 1977 under the MOST. It tunds research and scholarly publications and provides assistance for advanced training in high priority fields. Effective use of additional research funds depends upon improvement in KOSEF's management capacity. 1.07 With the exception of the KAIST, with both graduate training and research programs, the network of approximatel', 120 government-sponsored research institutes is isolated from the syst .m of higher education. These institutions could provide services of teaching and research supervision for graduate students. With respect to science education research, the leading colleges of education and education research institutes, like the Korea Education Development Institute (KEDI) and the National Institute for Eauca'!Thaal Research and Training (NIERT), have not recruited sufficient numbers of appropriately trained faculty or personnel. 1.08 Supply and Qualifications of Faculty. The shortage of qualified faculty adversely affects the quality of instruction. For colleges of natural science and of education the student:faculty ratio has steadily increased from 19:1 in 1970 to 28:1 in 1983. In colleges of engineering, with assistance under Loan 1800-KO, the student:faculty ratio has fallen from as high as 45:1 in 1980 to 38:1 in 1983 but remains short of the target of 21:1 set for 1986. The typical teaching load has also risen. In 1970 46% of faculty members in science and engineering taught more than 10 hours per week; by 1983 over 60% taught in excess of 10 hours. In 1983 more than 68% of faculty were on part-time appointments. Only 50% of faculty in colleges of natural sciences possess the doctorate; of these, approximately one-half have obtained their advanced degree in traditional Korean graduate programs and stand in need of postdoctoral research training. In the science education programs of the colleges of education, less than 35% hold a doctorate; only 3% hold a doctorate in science education. Among engineer:ag faculty members only about 35% hold a doctorate. 1.09 Facilities and Equipment. Expenditures on facilities and equipment have increased, but have not kept pace with increases in enrollment. MOE estimates that at the college level, laboratory facilities are only 70% of the official standard. Available equipment in science programs is only 40% of the official stardard. If the gap in equipment requirements for graduate educa- tion in both sciences and engineering is included, the figure is closer to 25% -.4- of current need. -a Within graduate-oriented unlversLties, the need is also to assure the availability of research equipment carefully selected to match faculty competencies and requirements. WithLn the colleges of education, additiL.al investment in teaching equipment is a prerequisite for the reorientation of instruction toward development of skills in problem solving. In all cases the shortage of facilities and adequate equipment and materials reinforces the reliance by instructors on the lecture approach and reduces the possibilities for experimental work hy students. ScLence Education at the Secondary Level 1.10 Secondary science education in Korea is comparatively strong in high student achievement on tasts of scientific knowledge. It is weik in: (a) the failure to provide students opportunity to supplement this knowledge with experience in experimental procedures; (b) the absence of a system for science curriculum development based on continuous assessment and policy studies; (c) college admissions procedures that do not take sufficient account of students' achievement in school including experimental work; (d) the lack of adequate programs for staff development; and (e) the shortage of laboratory facilities and equipment in GHSs and regional science centers (RSCs). 1.11 Practical Science Activities. There ls a question of balance in Korean secondary science education. Korean students perform very well on tests of scientific knowledge. In contrast they possess little opportunity to complement this knowledge with practical science skills. Results of a recent international study of achievement in science subjects suggest that, as measured against a group of developed and developing countries, Korean stu- dents performed above average and at or just below the high est standard attained in the restricted domain of scientific knowledge.- ALt the same time, an analysis of skill development in laboratory settings places Korean children near the bottom of the list of comparator countries in terms of access to and proportion of time spent in laboratory exercises. 1.12 Curriculum Development and policy Studies. Materials for high school science are produced by private publishers using authors approved by MOE and materials based on MOE guidelines. This policy is successful in that standard texts are available at reasonable cost to students throughout the country. A shortcoming is that these texts are not subjected to evaluation and revision; they are not generally supported by reference guides and manuals; and there is insufficient ongoing research, development and evalua- tion on which new curricula and materials can be based. An institutional base foi coordinatien of the disparate functions of science curriculum design, 4/ The standard equipment lists were revised and updated by MOE in 1983. The new standard corresponds to about $2,UOO per undergraduate student, and $4,000 per graduate student. 5/ Korea: Sector Survey of Science Education, IBRD Report No. 3775-KO, January 12, 1982. materials preparation, teacher retraining, and program evaluation and feedback is also lacking. 1.13 College Admissions. The centrally-managed college admissions exam- ination has been a powerful influence within secondary science education, since teachers and students give priority attention to preparation for that examination. Korea has only recently begun to adopt a more flexible syste!m of college admissions. In 1982 a studen,'s high school record accounted in some regions and institutions for 30% of the score on which admission is based. As recently as 1979, no weigiht st all was give'a to the 4igh school record. 1.14 Training _ Sw..;e Teachers. The present system of staff devel- opment for science teachers is characteri;:ed by an emphasis on content and theory rather than methodology and practical skills relevant to schon. situa- tions. Although the approximately 3,600 secondary science teacher.. possess university degrees, they are not well-a.zquainted with laboratory procedures and demonstration techniques. Nor are they trained in techniques of student performance assessment, including. evaluation of students' experimental work. 1.15 Science Education Facilities and Equipment. The level of laboratory facilities is about 75% of requirenents in GiSs and RSCs. Measured against the standard of proposed new coursee with more laboratory based units, avail- ability of equipment is abouL 55% with an average of eight children per equip- ment set at one time. Under these circum%tances, a sizeable proportion, possibly as high as 80% of students, would heve no significant time in per- fo.uiing science experiments or in learning to set up and use laboratory appa- ratus. Manpower XIonitoring 1.16 Since 1980, Government has introdiced changes that are g7nding to make the supply of high-level manpower more responsive to dema .,- Manpower planning has improved through a manpower analysis system under the coordina- tion of the Inter-agency Committee for Manpower Development and Promotion chaired by the Economic Planning Board (EPB). Entrance quotas have been made more 'lexible and are now set at the college level, with allocation to depart- ments determined within each college. There is need, however, for further improvement. The information base on relative supply and demand of science and technology manpower is not fully exploited and made available to decision makers. Academic institutions and students generally possess less information about career choices than could readily be made available. Education Investment and Financing Gap 1.17 As part of the Fifth Five-Year Plan (FFYP) 1982-86, Government prepared a set of overall targets and a financing plan for qualitative improvement in all levels of education. The budget of MOE during the FFYP is estimated to average about 21% of the central government budget, or 4% more 6/ See SAR para. 4.05, Loan 1800-KO. than the average of the Fourth Five-Year Plan. The actual level for 1982 was 20.6%; for 1983 it was 20.9%; the estimate for 1984 is 21.8%. This share corresponds with an increase in spending by HOE from an average of 3.2% f GNP in 1980 and 1981 to a projected average of 3.8't of GNP during the FFYP.7 In order to pay for the increased cost of education, a special education tax was introduced in 1982. The overaLl targets for educational development to 1986 are very ambitious by comparison with historic levels and depend heavily on the special education tax. l.18 Even if public spending on education meets planned goals, a financing gap of about 15% exists for private institutions that account for about 40% of total spending on education and training in Korea. Private colleges already demonstrate lower unit costs than public institutions, yet they fulfill an important public service in satisfying the demand for education beyond that met by public institutions. Fees for private institutions account for as much as 90% of their recurrent expenditure. Although the fees that private Institutions are allowed to charge are considered adequate, Government should review them annually and revise them if necessary. Government should also consider introduction of student loans, greater use of tax exemptions on private donations and increased public sub- sidy, by means of, for example, grants for staff development and loans for laboratory equipment. Government Strategy and Bank Role 1.19 In the late 1960s and 1970s, Korea emphasized investmeat in indus- trial education with the prospect of relatively quick return as skilled labor was drawn into an expanding industrial system. In a planned transition to more skill-intensive, high technology production, Korean educational planners have adopted a longer term strategy designed to: (a) produce an appropriate number of qualified manpower in the sciences, engineering and management via a development program for higher education; and (b) strengthen the foundations of science and technolovy within society through improvement of science educa- tion at the secondary level. 1.20 Bank group lending gs closely paralleled the increasing sophisti- cation of the Korean economy._ The Bank's initial involvement in the sector under four loans/credits emphasized vocational and technical education at the secondary and post-secondary levels. The completion of the fourth education project in June 1983 marked the end o. this phase. The Bank's current lending 71 The average share of slending by ministries of education as a proportion of GNP for the East As a Region is about 3.2%. 81 Government has also receivea financial assistance for educational development from the United States Agency for International Development, United States Export-Im2ort Bank, Asian Development Bank and Japanese Overseas Economic Cooperation Fund, though the amount is insufficient particularly for the development of the science and technology education sector. -7- strategy in education, as increasingly in other sectors in Korge9, calls for sector loans addressing broad policy and institutional issues,- ' The fifth loan (Loan 1800-KO), under the program for higher technical educationi, was approved in 1980 with the primary objective of raising the quality of higher technical education to the standards needed for industrial development in the 1980s. This objective is being substantially realized. Government has strengthened manpower planning; it has made more flexible the procedures for student entry to academic programs within colleges of engineering; accreditation agencies have been established for three academic areas; and it has prepared a study of the financial status of private colleges of engineering and subsequently provided more than $100 million in additional public funds to these institutions. Given the rapid increase in student enrollments in 1980 and 1981, however, the student:faculty ratio in colleges of engineering has declined more slowly than originally projected. Since 1982, Government has reduced new enrollments and continued to recruit additional faculty with the result that the student:faculty ratio has declined from 50:1 in 1979 to 38:1 in 1983. However, the target date of December 1986 for reducing this ra-ti to 20:1, as agreed under Loan 1800-KO, is no longer realistic. During negotiations of the proposed loan Government and the Bank agreed on a multi-faceted approach to program monitoring, with annual reviews and the setting of interim targets, including indicative annual enrollment levels (paras. 2.18 and 3.14). Agreement was also reached on changing the target date for achieving the 20:1 ratio to June 30, 1990 to correspond with targets under the proposed loan. Physical implementation is proceeding satisfactorily and on schedule with 92% of loan funds committed to approved subprojects and national programs. Ongoing Bank dialogue with Goverament has focussed on further policy and institutional changes that together with selected investments would promote Government's strategy for the development' of science and technology education. 1.21 OED audit reports have been prepared for the first three education projects and concluded that projects were in general well-conceived and suc- cessfully implemented. Other points of interest are the need for: (a) advanced project preparation before approval; (b) greater focus on policy analysis and evaluation; and (c) improved local management procedures to expedite procurement. These lessons were incorporated in the design of Loan 1800-KO and have also been incorporated in the proposed program for science and technology education. 9/ The Technology Development Project, approved in March 1982, a second one planned for FY85, and the Small and Medium Machinery Industry Project, approved in December 1982, directly embrace and promote the technological development of Korean industry. 2* PROGRAM FOR SCIENCE AND TECHNOLOGY EDUCATION Program Obiectives 2.01 The principal objective of the program would be to bring the quality of science and technology education up to standards required for an industrial system that will be, at once, more skill- and knowledge-intensive and employ more advanced technoLogies, This objective of qualitative improvement trans- lates into a strategy to: expand selectively graduate education in science and engineering and strengthen the research content of advarcsd training; raise average stanadards of college programs in science and science education; and increase the study of science subjects and introduce a more experiment- oriented science curriculum at the secondary level. As described in the Action Program on Sector Polic:es and Institutional Development (Annex 1), to implement this strategy the Government would: (a) introduce new and revised policies guiding the development of education programs in science and techno- logy; (b) effect institutional changes to strengthen sector management; and (c) improve the financial position of sector institutions by reducing the investment gap. The Bank has received a Policy Letter for science and tech- nology education, submitted by the Minister of Education with the concurrence of MOST, outlining the Government's obje tives and proposed Action Program with respect to policy and institutional changes. The Action Program includes a schedule for implementing the measures proposed. The Action Program agenda from 1984 to 1990 is as follows: At the Graduate Training and Research, and College Levels: (a) control quality of graduate programs in science and engineering and college programs in science by establishing accreditation committees under the Korea Council for University Education (KCUE); 5b) concentrate resources for graduate education in science and engineering in a few graduate-oriented universities and research institutes and prepare a long-term development plan for graduate training in science and engineering; (c) expand the programs and strengthen the management of KOSEF, the key institution for promotion and funding of science and technology research; (d) improve collaboration in graduate education and research in science and engineering among graduate schools and research institutes; (e) establish within the network of colleges of education and education research institutes a specialized center, Korean National University of Teacher Education, for graduate training and research in science education; (f) increase the supply and improve the qualifications of faculty members in science,'science education and engineering; and -9- (g) improve laboratory facilities and provide equipment essential for teaching and research in graduate schools, research lnstitutes and colleges that qualify under the program. At the Secondary Level: (a) design and introduce new science curricula at the high school level with greater emphhsis on experimental work; (b) establish within HOE the ~cience Education Development Committee (SEDC) to oversee and coordinate the separate activities of curriculum design, materials preparation and evaluation, teacher retraining, and overall program evaluation and feedback; (c) introduce systematic monitoring and evaluation of secondary science education; (d) adjust college admissions procedures to enable colleges to select students by taking into account students' achievement on both the entrance examination and the school record, including practical work; (e) recruit additional science teachers and laboratory assistants and design and implement staff development programs for science teach- ers, education specialists and admiaistrators in GHSs, RSCs, and the central agencies of MOE; and (f) improve laboratory facilities and provide GCSs and RSCs essential items of equipment for science teaching based on the requirements of the new curricula. Sector Planning and Finance (a) continue to strengthen the system of manpower monitoring by syste- matic reporting on findings of technical manpower studies and diffu- sion of these findings within the system of universities and colleges and by improving college services of student career coun- selling; (b) monitor closely student enrollment and annual projections of future enrollment in terms of key indicators of qualitative improvement; and (c) strengthen the financial base of private educational institutions by channelling sector loan funds to private institutions for staff development and equipment, providing additf8yal public subsidies, and adjusting student fees when necessary.- 10/ Policies with respect to sector finance are discussed in Chapter 4. - 10 - These policy and institutional changes are discussed below. For brevity of presentation, graduate tra'ning and research, and college-level science edu- cation are discussed togetner since many policy and institutional issues.apply to both. A section on proposed changes in secondary science education folLows and the chapter concludes with a section on sector planniag. The program would include expenditures on cuxrriculum development, policy studies, research grants, development of new institutions, teacher recruitment and training, equipment and materials, and bLildings. Graduate Training and Research, and College Levels (Proposed outlay: graduate training and research, approximately $193 mlllion; and college level, approx- imately $159 million, both net of contingencies). 2.02 Quality Control. Under the proposed program, the Government would expand the system for assessing the mality of education and establishing appropriate standards (para. 1.05) .- Two further elements of this system would bL developed, namely accreditation committees for colleges12f natural science and for graduate departments in science and engineering.- Their scope of responsibility would cover private as well as public institutions under MOE. Under the Action Program, accreditation committees would be organ- ized by June 30, 1985 under KCUE, an indepeadent association of the 98 col- leges and universities in Korea, founded in 1982 with financial assistance of Government. Accreditation committees would on occasion include representa- tives of private industry. Terms of reference for the accreditation commit- tees have been reviewed by the Bank and are satisfactory. Program quality would be assessed at KAIST by means of external review by a visiting committee. Program costs associated with accreditation include financing of foreign specialists. 2.03 Concentration of Graduate Education. A major objective of the program is to concentrate resources for graduate education in a few graduate- oriented universities (para. 1.05). This would be achieved as follows: (a) under the guidelines for allocation of loan proceeds (para. 3.11), no more than 15 subprojects for science or engineering graduate programs would be financed with the result that 10, and quite possibly fewer, individual gradu- ate-oriented universities would receive program funds; (b) the allocation of KOSEF research grants under competitive procedures would result in increased resources for the relatively stronger graduate-oriented institutions that are able to formulate high quality research proposals (para. 2.04); and (c) Gov- ernment would undertake in 1984-85 a study of the future development of gradu- ate education in science and technology. Terms of reference for this study Lj/ Under Loan 1800-KO, three elements of this system were established: (a) the Korean Engineering Education Board; (b) the Korean Management Education Board; and (c) the Technician Education Research Institute. 12/ Independent accreditation for colleges of education is not required as the quality standards for these teacher training institutions are controlled directly by the Teacher and International Education Bureau (TIEB) of MOE. - 11 - * - have been reviewed by the Bank and are acceptable. Program costs would include facilities and equipment for graduate-oriented institutions, including KAIST (para. 1.07 and Annex 2), assistance for faculty recruitment and development (para. 2.07), short-term specialists to advise on graduate programs, and tr.e study on graduate education in science and technology. 2.04 Research Promotion and _unding. Under the program, the Government would expand the operations of KOSEF and strengthen its capacity to manage a larger research program directed at 15 priority fields identified by KOSET planners as critical for long-term economic and industrial development (para. 1.06 and Annex 3). KOSEF budget would grow from about $6.0 million in 1983 to about $24.0 million in 1988 in 1983 prices and finance about 1,600 research grants over that period. Loan assistance would represent a decreasing share of the totaL KOSSF program or from about 25% in 1984 to 10% in 1988. In order to strengthen the management of the foundation, the program would also provide fellowships for staff training and specialist services for external review of KOSEF research activities. 2.05 Collaboration between Graduate Schools and Research Institutes. Greater efficiency in the use of available resources for training and research would result from enhanced cooperation between academic institutions and research institutes (para. 1.07). Under the Actioa Program Government would promote cooperation as follows: graduate and post-doctoral study and research at KAIST would be financed from existing scholarship funds for master's and doctoral graduates from Korean universities and for university faculty; the approximately ten major research institutes would each designate by June 30, 1985 a training coordinator for supervision of research training of graduate students assigned by the universities; members of research institutes would serve as adjunct professors in university-based graduate progrAms to enrich courses and improve research perfornmance; and KOS5F would encourage researchers based in universities and research institutes to. prepare joint research proposals. 2.06 Graduate Education and Research in Science Education. In order to strengthen graduate training and research in science education (para. 1.07), Government would establish a new college of education, Korean National Univer- sity of Teacher Education, as a center of excellence for training high-level manpower for teacher education and for research in science education. Subpro- W ject application and appraisal reports for Korean National UniveTSity of Teacher Education have been reviewed by the Bank and are of an acceptable standard of quality. Program costs would include facilities and equipment for Korean National University of Teacher Education and assistance for faculty recruitment and development (para. 2.07). 2.07 Faculty Recruitment and DeveLopment. A main requirement for improv- ing the quality of higher leveL science and technology education is to elimi- nate shortages and increase the supply of well-qualified staff (para. 1.08). Under the program, the supply of teaching staff would grow from about 6,000 to 14,000 faculty members. Bank staff estimates for staff requirements to 1990 are shown in Table 2.1. The expansion of teaching staff would be achieved by: (a) increasing output from local graduate programs in the sciences and engineering; (b) recruiting Korean graduate students on completion of their - 12 - training abroad; (c) providing speciaL incentives, including travel and housing benefits and an initial research fund, for repatriation of Korean scientists and engineers working abroad who would assume teaching assignments in graduate schools; and (d) inviting adjunct professors from research institutes or industry to offer special coureis, to direct graduate research, and to assist in curriculum pLanning. Repatriation of Korean scientists and engineers abroad is part of a quite succassful ongoing initiative of Government and would be contimued after the program with government financing. Table 2.2 indicates the estimated number of additional faculty members from each source. Annex 4 shows the planned expansion of domestic graduate programs and the estimated supply of new faculty from that source. At the projected level of faculty recruLtment, by 1990 the average teaching load for full-time facul,y would be about 10 hours per week and the proportion of faculty on full-time appointments would average 50%. The prospects for expanding domestic graduate programs depend on the recruitment of additional professors and students to enter graduate school and eventually teaching. To improve incentives, Government has chosen to increase average salaries for teachers in public institutions in the period 1984-86 at a rate approximately 2 percentage points above generaL civil service salary increases. The share of scholarship funds devoted to graduate education in pubLic and private institutions would increase from 7.5% of all funds for scholarships for higher education to 15% by 1986 (or from about 25% to 50% of graduate students). IAIST students are already provided fellowships to cover full cost of tuition and maintenance. The qualifications of existing faculty members would also be improved under the program (para. 1.08). By June 30, 1990, a larger propor- ticn of staff would hold advanced degrees, as shown in Table 2.3. Upgrading of current faculty would be accomplished by strengthening and expaading local graduate programs; providing overseas fellowships for training and research opportunities abroad; and organizing workshops and seminars to familiarize faculty with recent developments in their fields or new approaches to teaching. Program costs associated with faculty recruitment and development include repatriation assistance for about 120 professors and approximately 15,000 man-months of overseas training for about 1,260 current faculty members. Government has agreed that fellowships would be awarded in accor- dance with selection criteria and procedures acceptable to the Bank. J9 - 13 - Table 2.1: REQUIREHENTS FOR NEW FACULTY (1983-90) Additional staff Approxir.ate Student enrollment/b required (1983-90) sLudenC: Existing Actual Projected Incre- Replace- staff ratio Institution staff/a (1983) (1990) mental ment Total (1990) Colleges of Natural Science 2,300 64,400 94,200 2,400 309700 20:1 Colleges of Education (Science Departments) 140 3,800 4,200 70 20 90 20:1 Colleges of Engineering 3,600 136,000 180,700 5,400 50Q900 20:1 KAIST /c 100 1,200 2,300 120 20140 10:1 Total 6,140 t205400 281,400 7,990 88Q830 /a Numbers of staff members include both personnel on full-time appointments and esti- mated full-time equivalent of personnel on part-time appointments. Estimates of existing staff are not strictly separable by undergraduate and graduate level since faculty members in colleges and universities typically carry a teaching load at both levels. /b Estimates of student enrollment include both graduate. and undergraduate students. /c MAIST would seek to maintain a student:staff ratio close to 10:1 in reflection of its emphasis on student and staff research. Enrollment figure for 1990 includes both regular and continuing students on part-time studies. Source: Bank staff estimates based on data provided by MOE and MOST. - 14 - Table 2.2s SOURCES FOR ADDITIONAL FACULTY (1983-90) Colleges of Education Colleges of (Science Colleges of Natural Science Departments) Engineering KAIST Additional staff required 2,700 90 5,900140 Sources of additional staff: - Local graduate school 2,250 30 3.900 20 - Overseas graduate school 200 40 900 8o - Repatriation of scientists and engineers abroad 50 10 lOOLi 40 - Research instLtutes & industry lb 200 10 1,000 - Total 2.700 90 5,90014o Ia Approximately 80 of this number are assisted under Loan 1800-KO. lb Full-tizie equivalent. Source: Bank staff estimates based on data provided by MOE and MOST. Table 2.3: PROPORTION OF FACULTY WITH DOCTORATE DEGREE (% of total faculty) Field of study 1983 1990 Colleges of Natural Science 50 65 Colleges of Education (Science Departments, emphasis on science education) La 35 (3) 50 (25) Colleges of Engineering 35 50 KAIST 100 100 /a Figures in brackets represent share of graduate degrees in science edu- cation. - 15 - 2.08 Facilities and Equipment. The program aims at increasing laboratory facilities to 85% and equipmenl provisions to about 70% of the official stand- ard in science, science education, and graduate engineering (para. 1.09). Full attainment of the standard would require unrealistically hig 3lnvestments in the near term and would need to be deferred to a later period.-3J The proposed investment in facilities and equipment for colleges of natural science and colleges of education under the program would enable colleges to increase laboratory work in science and science education from about 10% to about 30% of class time. Secondary Level Science Education (Proposed outlay, approximately $191 mil- lion, net of contingencies) 2.09 Science Cur,,.culum. In order to improve the effectiveness of science education within GHSs (para. 1.11), the Government would offer high school science courses on two levels, ordinary and advanced, with requirements in each of biology, chemistry, earth science and physics for alL students. About 140 experimental units would be introduced in the courses with the result that approximately 20% of instructional time would be devoted to experimental work. This plan would be implemented progressively from 1984 and reach full scale within the approximately 800 GHSs by 1988. It would use as supporting infrastructure 13 RSCs in the nine provinces and four principal cities that would provide: supplemaatary and enrichment practical classes for students; student guide sheets and teachers' guides for experiments; equipment testing, supply and repair; and in-service training for science teachers. Eleven RSCs are in operation; two more will be opened, one each in 1984 and 1985. 2.10 Science Education Development Committee. Government would establish by mid-1984 the SEDC to oversee planning and implementation of the secondary science program, particularly curriculum and materials development, staff de- velopment and procedures for program monitoring and evaluation (para. 1.12). The SEDC would include a director and a staff of about 1C senior science edu- cators, at least 2 each in biology, chemistry, earth science and physics. The director would be assisted by an advisory panel, composed of scientists, science educators, administrators and distinguished representatives of the private sector, and would report directly to the Director General of the General Education Bureau (GEB) of MOE. Terms of reference for the SEDC work program have been reviewed by the Bank and found satisfactory. SEDC would coordinate the development of curriculum for the new science courses via contracts with the colleges of education and KEDI (para. 1.12). Based on annal performance evaluation and assessment of curricula and materials by teachers and staff of the RSCs, SEDC would recommend adjustment and improvement in texts and materials for final introduction in 1988. Program costs would include equipment and materials for preparation of new science curricula, overseas fellowships and specialist services. 13/ It would require additional new investmcnts of approximately $120 million for present enrollment and $105 million for increased enrollment at college level between 1984 and 1989. - 16 - 2.11 Program Evaluation. To support regular review and updating of policies for secondary science education (para. 1.12), performance monitoring and evaluation would be introduced under the Action Program by June 30, 1985. The mcnitoring system would be coordinated by SEDC and the work carried out under coAtract by specialist; in the colleges of education, KEDI, NIERT or by prlvate consultants, An in-depth evaluation of secondary science achieve- ment would also be conducted by NIERT as the Korean component to the Second International Science AchLevement Study, organized under the auspices of the International Association for Evaluation of Educational Achievement. Another proposed study is the preparation of a plan for improving, by means of in- service tralning, the skills of secondary level science teachers in assessing stutent achievement, particularly in their experimental work (para. 1.14). Under the Action Program, the plan for developing teachers' assessment skills would be implemented from June 30, 1985 via in-service training programs of the colleges of educat,-on and RSCs. Terms of reference for the plan for program monitoring and the plan for improving teachers' assessment skills have been reviewed by the Bank and are satisfactory. 2.12 College Admissions Procedures. A study on the college admiss!ons procedures would examine measures to improve the college entrance examination system as a tool for both student selection and reinforcement of science curriculum goals (para. 1.13). It would lead to further adjustment in the admissions procedures that would reward student achievement in new secondary science courses by providing colleges a standard record of school-based achievement, including performance on experimental assignments. Terms of reference for this study have been reviewed by the Bank and are acceptable. The study would commence September 1984. The findings of the study would be implemented in the admissions cycle for the 1987 academic year. 2.13 Recruitment and Staff Development. Introduction and management of the new science courses in GHSs require recruitment of additional science teachers and laboratory assistants (para. 1.11). MOE has a plan for increas- ing recruitment from about 350 science teachers per year to approximately 700 teachers per year between 1984 and 1988 from among the 5,000 graduates annually of the colleges of education and colleges of natural science quali- fied for secondary school science teaching. HOE also plans to recruit an additional 1,300 laboratory assistants by June 30, 1990 from among the ample supply of graduates of the junior technical or teacher training colleges in order to raise the average of laboratory assistants from less than one to two per GHS. 2.14 In-service training for science teachers and administrators in the GHIs, and for education specialists in the RSCs and central agencies of H0E (p&ra. 1.14), would be provided through courses conducted by colleges of edu- cation and workshops managed by the 13 RSCs. About 240 staff would also par- ticipate in overseas training in curriculum development, evaluation tech- niques, and equipment maintenance and operation. Some 430 man-months of fellowships for specialized courses of three months duration and 480 man- months of training of six months duration would be arranged as a combination of course work and internships. Government has agreed that overseas fellowships would be awarded in accordance with selection criteria and procedures acceptable to the Bank. - 17 - 2.15 Facilities and Equipment. The deficit in laboratory facilities would be reduced to 15% by 1990 with finance provided from the special educa- tion tax or from private sources (paras. 1.15 and 1.18). For those schools that are not scheduled for expansion of laboratory facilities in this period, partial implementation of new courses would still be possible by means of more intensive use of existing facilities, including use outside regular school hours and temporary use of facilities of adjacent schools or the centralized laboratories ot the 13 RSCs. 2.16 The overall deficit in required science equipment would be narrowed to about 15% by provision of equipment to each of the 800 GHSs. Each of the RSCs would receive from the program four complete sets of equipment to cover the experimental units in the new high school science courses; equipment for enrichment and teacher training; audio-visual aids; and equipment for a central maintenance and repair workshop and two vehicles. Sector Planning 2.17 In order to make the science and technology education sector more responsive to economic factors, Government would report more systematically on manpower to colleges and universities, seek to improve student guidance ser- vices and monitor closely enrollment in relation to program objectives of qualitative improvement (para. 1.16). Under the Inter-agency Committee for Manpower Development and Promotion, both MOST and MOE would make available manpower information that could guide in the preparation of institutional development plans. The Higher Education Bureau (HEB) of MOE would encourage and assist colleges and universities to establish or strengthen student career guidance and placement services, including liaison with industry, and would organize workshops for officers in charge of such offices. 2.18 Annex 5 summarizes surveys and labor market indicators of relative supply and demand of science and technology manpower. In broad terms, the planned investment in training scientists and engineers throughout the 1980s should satisfy in quantitative terms the anticipated expansion of employment in related occupations. A sharp increase in projected employment of science and technology manpower is explained by expected growth in spending on R&D, further development of the network of public research institutes and planned improvements in the network of colleges and iuniversities. Government recognizes, however, the trade-off between quantitative expansion in numbers of scientists and engineers trained and key objectives of improving the average quality of higher education in science and technology. On the basis of experience gained under Loan 1800-KO, the Bank and Government have agreed to adopt a multifaceted approach in monitoring progress in implementing the sector program. Indicators for monitoring the program would include: (a) student: teacher ratio; (b) proportion of faculty with the doctorate; (c) proportion of full-time faculty; (d) average teaching load per week; and (e) indicative annual enrollment levels. Other factors affecting college enroll- ments such as aggregate size and employment prospects of high school graduating classes, development of the junior technical college system and fees structure would also be analyzed. These indicators would be analyzed during each annual review to be held between the Government and the Bank during which agreement would be reached on the targets to be monitored in the following year. - is - 3. MANAGEMENT AND tMPLEMENTATION 3.01 Management arrangements have been organized by the Government to facilitate execution of the sector program and include: (a) a sector approach to management; (b) appropriate arrangements for organization and staffing; (j) well-defined implementation procedures, including guidelines and criteria for allocating loan funds; and (d) a feasible implementation schedule. The Sector Approach 3.02 The program fox science and technology education would build upon and expand the program for higher technical education ass'.sted under Loan 1800-KO. As in the earlier program, the proposed prograw would be composed of national programs (approximately five) and subprojects (about 60). National programs represent actions that would potentially beneflt the entire sector or subsectors and include: the program of research grants under KOSEF; accreditation assistance; staff development programs via overseas and local training, and repatriation of Korean scientists and engineers abroad; equip- ment for approximately 800 GHSs and 13 RSCs; and studies, Bank loan funds earmarked for national programs would be provided by the Government to the beneficiary institutions under eligibility criteria and guidelines acceptable to the Bank. Subprojects in contrast would be tailored to meet the needs of individual institutions that apply under the program. Subprojects with about 10 graduate schools of science and engineering, 30 colleges of natural science and 20 colleges of education are expe,cted to be supported under the proposed loan. Each subproject would provide equipment and would be processed by the Government in accordance with guidelines and criteria agreed with the Bank. 3.03 Given Government's success in managing the program for higher technical education under Loan 1800-KO, deliberate effort has been made to rely on the borrower as regards: conformity with agreed procedures in prep- aration and approval of national programs and subprojects; and application of agreed eligibility criteria and guidelines in allocation of loan funds. In accordance with the agreed eligibility criteria and guidelines, MOE would appraise and approve national programs and subprojects for institutions under its jurisdiction. MOST would supervise the national program of research grants managed by KOSEF and the KAIST subproject. Implementation of the program would be carried out within the existing organizational set-up of MOE and MOST. This approach would be the most efficient way to execute the devel- opment program. It is also a desirable way of further institutionalizing program management capacity in government agencies. Organization and Staffing 3.04 The Government has devised an effective organization plan and an adequate staffing plan for implementing the program (Annex 6). 3.05 MOE Orga-iization (Annex 7). The MOE organization plan relies on existing line agencies, builds on their strengths and includes appropriate checks and balances. Responsibility for implementation of national programs and subprojects would be under the Vice Minister of Education and divided - 19 - between the Ed&cation Facilities Bureau (EFB) for physical aspects; and the Higher Education Bureau (HEB), Teacher and International Education Bureau (TIEB) and General Education Bureau (GFB) for educational aspects. The EFB would be responsible for general coordination of the programs under the Vice Minister, liaison with the Bank and reporting to Government and the Bank on progress of the MOE program. EFB in conjunction with the Office of Supply, Republic of Korea (OSROK) would also have overall responsibility for the procurement of educational equipment and delivery to MOE project institu- tions. The HEB would manage the educational aspects of graduate programs in science and engineering and college-level programs in science; the TIEB would manage corresponding programs for colleges of education; and the GEB would manage the development program for science education at the secondary level. The Director General of the EFB would be the Executivs Director of the MOE portion of the proposed sector loan and report to the <'ice Minister. Three persons, one each in HEB, TIEB and GEB, would be designated subcomponent managers. 3.06 MOST Organization (Annex 8). Under the overall coordination of the Office of Planning and Management (OPM), a line agency of MOST, KOSEF and KAIST would be responsible for implementation of their own share of the sector program. Both KOSEF and KAIST have strong records in implementing previous externally and locally financed program-,a OPM would be accountable to the Vice Minister of MOST and responsible for reporting to the Government and the Bank on progress under KOSEF and KAIST. Within KAIST, the Office of Inter- national Programs would implement the faculty development program and procure equipment in conjunction with OSROK. Within KOSEF, the Program Promotion Department would be responsible for managing research grants as adjudicated and approved by KOSEF. The Director of OPM would be designated executive director of the MOST share of the program and would be assisted by the Director of the Program Promotion Department of KOSEF and the Director of the KAIST Office of International Programs. 3.07 Staffing. Government has taken steps to ensure that the implementa- tion agencies would have sufficient competent staff to manage the proposed sector program. Under MOE, the staffing level of the key agencies, EFB, HEB and TIEB is adequate to carry out their scheduled actions under the prcposed program. The Science and Vocational Education Division of GEB, however, would increase the number of officers from the current level of nine to approxi- mately 15 by June 30, 1984. The OPM is adequately staffed, as is the KAIST Office of International Programs. The KOSEF Program Promotion Department would increase from the present seven employees to 10 by June 1985, and the total number of staff at KOSEF would increase from 25 to about 45 by 1988. This proposed increase is reasonable. Both MOE and KOSEF have also arranged for outside assistance to complement permanent staff capability, particularly with respect to technical areas of responsibility. MOE would use a task force of distinguished educators for technical review of national programs and sub- projects. A contract under 1800-KO was signed with the chairman of the task force for that purpose in November 1983. The KOSEF grants committee is composed of 15 leading scientists and engineers. It also employs five university faculty members as part-time consultants in program planning. - 20 - Implementation Procedures 3.08 Under Loan 1800-KO the Government used procedures acceptable to the Bank for equipment procurement and technical assistance management. These same procedures would be used for the proposed sector loan. Implementation procedures would also incorporate several improvements designed to accelerate implementation, including appointment of technical review committees and processing of subprojects well in advance of the effective date of the loan. 3.09 Implementation under KOS. Based on the preparation documents, HEB, TIEB and GEB have already formulated national programs under MOE. MOE has also advised institutions about requizements for subproject applications and invited applications. Subprojects would then be prepared by individual insti- tutions and submitted as subloan applications for processing by MOE (Annex 9). Based on a recent survey of graduate- and college-level institutions, there is sufficient interest among eligible public and private institutions to utilize fully the Bank loan funds (para. 4.09). 3.10 During negotiations, four representative subloan applications and appraisal reports (one of each kind, a graduate program in science, a graduate program in engineering, a college-level program in science, and a college- level program in science education) were reviewed by the Bank. The quality and standards of preparation and appraisal in these four cases were found to be acceptable to the Bank. The Bank would only exercise ex post review of additional subprojects on a sample basis during review missions. 3.11 Eligibility criteria and guidelines have been reviewed by the Bank and are satisfactory. These include: (a) general criteria for the approval of national programs and subprojects (Annex lOa); (b) specific criteria and guidelines for allocation of loan funds under national programs (Annex 10b); and (c) specific criteria for eligibility ot subloan applications and guidelines on the allocation of loan funds under subprojects (Annex lOc). Government has agreed to approve national programs and subprojects according to these agreed criteria and guidelines. 3.12 Implementation under HOST. Under MOST, procedures are in place for implementation of the KAIST subproject ($1O.O million including contingencies) and the KOSE1 national program ($12.0 million including contingencies). Due to its special role as the largest institution for graduate training in Korea, the KAIST subproject was appraised directly by the Bank and was found accept- able in all technical and e6acation aspects. The KAIST subloan exceeds the maximum amount under graduate subprojects ($5.0 million). This is justified by lts central role in producing high-level manpower in science and engineer- ing fields. Under the Director of the KAIST Office of International Programs, equipment specifications and bidding documents are being prepared and will be completed by March 1984. The facuLty development program has been designed and would be ready for implementation following loan effectiveness. 3.13 KOSEF has established procedures for implementation of the national program for research promotion and funding (Annex 11). Research grants would be approved in open competition twice a year by a formal KOSEF selection committee. Once approved, grants are made to the researcher's institution. - 21 - KOSEF would maintain an approval ratio of about one of every three proposals and support on the order of 10% of the doctoral-level researchers. 4pproxi- mately 75% of research grants would support the work of university or college- based researchers; the remainder, researchers in public research institutes. 3.14 Program Monitoring. Under MOE corresponding division directors would be responsible for monitoring the progress of national programs and sub- projects. Up-to-date information would be collected and semi-annual evalua- tion reports prepared. These reports would form the basis for comprehensive annual reviews with the Bank, during which targets for the following year would be set, and an in-depth mid-term review. The Bank and Government have agreed: (a) on key performance indicators and first year and mid-term targets, including indicative annual enrollment levels; and (b) that the annual comprehensive review would take place by October 31 annually, and the mid-term review by October 31, 1987 (Annex 12). The timing for the mid-term review is linked to full implementation of the Action Program, expected in 1990. The role of the Bank would be to hold discussions on policies affecting the subsector, check overall progress on institutional reforms, make random checks on national programs and subprojects to ensure that they conform with agreed criteria, and compare actual achievements with targets while focusing on the causes and effects of any significant deviations. 3.15 Implementation Schedule. The Government's total investment program in science and technology education would be implemented over the six years from January 1984 to December 1989. The Bank's financial involvement in the program would be a time slice covering approximately 14% of costs during the period from July 1984 to June 1988 (Annex 13). The schedule of implementation for the entire program is realistic. All MOE subproject applications are expected to be prepared, appraised and tentatively approved by the Minister before loan signing and procurement of subproject equipment through OSROK would proceed soon after loan signing. KOSEF national program and KAIST subproject are likewise at an advanced stage of preparation.. All subprojects and national programs funded by the Bank would be completed by June 30, 1988. 4. COST AND FINANCING 4.01 Costs are defined as the investment program for the science and technology education sector for J4iy 1984 to June 1988, of which the proposed loan would finance a time slice.-- The level of the investment program is 14/ The Government has formulated a six-year (1984-89) investment plan for science and technology education. This plan with an investment estimated at $1.0 billion equivalent (1983 prices) covers two plan periods, includ- ing part (1984-86) of the Fifth Plan and part (1987-89) of the Sixth Plan. Bank support is being proposed for the period July 1984 to June 1988. This phase has been costed separately and is referred to as the Government's investment program. - 22 - appropriate to effect the proposed policy and institutional changes and quali- tative improvement in the sector. The investment program is economical amd would be financially feasible. Investment Program 4.02 'The investment program 1984-88 for public and private science and technology education is costed at $542 million net of contingencies and $695 million with contingencies (Annex 14). The allocation of investment betweea components shows that graduate education and research would receive $193 mil- lion; college level $159 million; and secondary level $191 million, net of contingencies (Table 4.1). The public share of the investment program is estimated at $391 million net of contingencies. The Investment program for private institutions is estimated at $152 million net of contingencies. Table 4.1: DMhV OMQW PRiXAM BY PBXgM 032a= (J Ay 1984 - June 1988) Z of Pro=a Local Fo .eip Total local Foreiga Total base czpxtent - (Wn aiLlion) - - ($ million) - cost Graduate level 40.4 48.4 88.8 51.1 61.4 11245 20.8 KAMT 18.4 13.5 31.9 23.3 17.0 40.3 7.4 KOSE 12.4 19.0 31.4 15.8 24.0 39.8 7.3 Subtotal 71.2 80.9 152.1 90.2 102.4 192.6 35.5 Col2lge level xx 61.5 63.7 125.2 77.8 80.7 158.5 29.2 HE 79.7 71.6 151.3 100.9 90.5 191.4 35.3 Total Base Cost /a 212.4 216.2 428.6 268.9 273.6 542.5 100.0 Phsical 21.2 21.6 42.8 26.8 27.4 Y4.2 10.0 Price 39.7 38.0 77.7 50.3 48.1 98.4 18.1 Total PrOgRm Cost 273.3 275.8 549.1 346.0 349.1 695.1 /a Iriirect tams and dutsie are estlmted to be about $21 million or 3Z of total progran cost. nprted equipent and materials wRd be exnpt fram duty. - 23 - 4.03 Base costs refer to April 1984 prices. Civil works are estimated on the basis of EPB's standards for building unit costs and are reasonable; equipment costs are based on the estimated cost of reseaTch equipment at the graduate level and on standard equipment lists for the college and secondary level updated in 1983 and are reasonable. The technical assistance component would include 116 man-months of specialist services; 16,260 man-months of overseas fellowships; and repatriation for 120 scholars. Thb5?an-moath Cost of overseas fellowships is expected to average about $1,500 - and the cost of each repatriation about $25,000 including an allocation for travel and related expenses, an allowance for housing and a research start-up fund. About five policy studies and 1,600 KOSEF research grants would be included in the sector program. The costs of each policy study and of each KOSEF research grant are expected to average $140,000 and $25,000, respectively. 4.04 The contingencies estimated at $153 million would bring the total investment program to $695 million. Physical conting,incies represent 102 and price contingencies about 18% of the base cost. Price contingencies are cal- culated on base costs plus phyrsical contingencies and estimated oa the basis of 3.5% in 1984, 8.0% in 1985 and 9.0% from 1986 to 1988 in both local and foreign costs. Foreign exchange costs are estimated at 20% for civil works; 90% for equipment; 90% for specialist services; 100% for overseas training; 100% for repatriation; 50% for studies; and 60% for research grants. The foreign exchange cost of the total investment program Ls $349 million or 50% of total cost. The estimated investment program includes duties and taxes amounting to about $21 million (about 3% of total program cost). The Govern- ment and private institutions would finance taxes and duties. Imported instructional equipment and foreign specialists' services are exempted from taxes. Recurrent Cost Implications 4.05 The additional recurrent expenditures generated by the investment program are within the financial capacity of Government and the private insti- tutions. The combination of higher standards and some enrollment expansion would lead to higher recurrent expenditures. For the public sector these additional expenditures would average about 1.0% of the annual budgets of MOE and MOST between 1984 and 1988 (Table 4.2). For private Institutions total additional recurrent expenditures would average about $40 million or about 10% of their 1983 annual expenditure. Under the Action Program, Government would review student fees annually and authorize adjustments if necessary. Growth in income from endowments, direct grants from private scurces and Government, as well as other public subsidies, would also be utilized to meet the recurrent costs of private institutions. The increase in fellowships and scholarships would assist students in meeting tuition and related costs and broaden access to higher education. 15/ Because of price changes since 1980, this figure is higher than the $1,300 per man-month of overseas fellowships used in Loan 1800-KO. Table 4.2: ESTIMATED ADDITIONAL RECURRENT EXPENDIZTURE (July 1984 - June 1988) ($ million constant 1983 prices) 1984/85 1985/86 1986/87 1987/88 Annual public incremental recurrent expenditure 20 10 15 15 Total public additional recurrent expenditure 20 30 45 60 Budget of MOE and MOST 3,500 3,750 4,000 4,300 Total public additional recurrent expenditure as share of MOE and MOST budget 0.6 0.8 1.1 1.4 Anaual private incremental recurrent expenditure 20 10 15 15 Total private additional recurrent expendittare 20 30 45 60 Total Additional Recurrent Expenditure 40 60 90 120 Financing and Bank Contribution 4.06 Table 4.3 outlines the proposed financing plan for the investment program. The Government would undertake 62% of the investment program and private Korean sources 24% (both including all the costs of civil works). The proposed Bank loan of $100 million equivalent (including front-end fee of $0.2 million) would cover 14% of the total investment program. The loan would represent 29% of the estimated foreign exchange component. 4.07 The Government's investment program is within the financial capacity of MOST and MOE. The peak yearly capital investment would be roughly $100 million in 1988. This would represent about 42 of the projected annual budget for MOE and HOST in 1988 or about 18% of the projected capital expen- diture. These are reasonable proportions in view of the urgency for improve- ments in science and technology education. Capital expenditures in private institutions would be financed mainly from revenues from fees and investments including endowments, contributions from the private sector and, in some cases, loans from commercial banks. In the 1984-88 period these sources ari expected to generate about $200 million in current prices, or 85% of the total investment in private institutions. The remainder would be met from the proposed Bank loan through subloans to these institutions. - 25 - Table 4.3: OVERALL FINANCING PLAN BY PROGr%UM COMPONENT (July 1984-June 1988) Source of financing Program Proposed % IBRD couponent Government l'rivate IBRD loan Total financing --------------- ($ million) --------------- Graduate level MO0E 57.2 32.2 23.1 112.5 21 KAIST 32.5 0.0 7.6 40.3 19 WOSEF 30.4 0.0 9.4 .39.8 24 Subtotal 120.1 32.2 40.3 192.6 21 College level 14OE 99.6 30.0 28.9 158.5 18 Secondary level ?A0Q 114.4 68.3 8.7 191.4 5 Total Base Cost /a 334.1 130.5 77.9 542.5 14 Contingencies 93.9 36.8 21.9 152.6 14 Total Program Cost 428.0 167.3 99.8 695.1 14 Front-end fee on Bank loan 0.0 0.0 0.2 /b 0.2 100 Total Financing Rtequired 428.0 167.3 100.0 695.3 14 /a lacluding taxes and duties amounting to about $21 million. /b $249,380. 4.08 The proposed Bank loan of $100 million would include approximately $51.6 million for graduate training and research; $37.0 million for college level; and $11.2 million for secondary level science education, each including contingencies; and $0.2 million in front-end fee (Annex 14, Tables 3 and 4). These amounts were determined by the Governtnent in accordance with overall priorities and relative need for foreign exchange by component. - 26 - Financing of Private IZstitutions 4.09 Assistance for private colleges and graduate schools under sub- projects would be financed through subloans by the Government to the private institutions. Private institutions would receive subloans on terms and conditions satisfactory to the Bank. It is expected that the terms of the subloans would be the same as those of the Bank loan. As an added incentive to private institutions, the Government has agreed to prepare each year during the program a financial plan for prlvate graduate schools, colleges and high schools to ensure the enhancement of their quality in accordance with the objectives of the program, and in consultation with the Bank, on the occasion of each annual and the mid-term review, proceed to implement this plan. Assistance for private institutions under national programs would be part of the financial plan and is expected to be on a grant basis. Procurement 4.10 Procurement arrangements under the proposed program are summarized in Annex 15. Civil works, none of which is financed by the Bank, would be procured through established local procedures. The proposed loan woula finance about $74 million equivaLent of equipment, books and materials. In continuation of the threshold applicable under Loan 1800-KO, equipment pack- ages of $500,000 equivalent or more would be awarded on the basis of inter- national competitive bidding in accordance with Bank guidelines. Equipment items which cannot be grouped to form bid packages of $500,000 equivalent or more would be awarded on the basis of local competitive bidding, under government procurement procedures acceptable to the Bank, subject to an aggregate total value not exceeding $11 million equivalent (about 15% of the total value of equipment financed under the loan). Miscellaneous equipment items in packages each not exceeding $50,000 equivalent, and in aggregate $700,000 equivalent (or 1% of the estimated amount of equipment financed under the loan), could be procured through direct purchase on the basis of at least three price quotations. Local manufacturers are expected to bid, especially on equipment for the secondary level, and would be extended a 15% preference margin, or the prevailing custom duties, whichever is lower, on bid evalua- tions. Instructional materials and books would be procured through direct purchase after negotiation for discounts. All consultants would be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the Bank's guidelines for the use of consultants. Contracts for studies would be approved and awarded by HOE; contracts under KOSEF research grants would be approved and awarded by KOSEP. These contracts would be reviewed on a sampLe basis by visiting Bank missions. 4.11 OSROK wias not required to refer to the Bank for prior review of the estimated 6,000 contracts for equipment or technical assistance under Loan 1800-KO, but rather retained bid evaluation reports, documents and contracts for selective ex post review by Bank staff during missions. This procedure, which worked to the Bank's satisfaction as confirmed by regular sample review of documentation, would be continued under the proposed program. Based on an analysis of the profile of contracts under Loan 1800-KO, Bank field review of about 3% of contracts (about 150 contracts above $100,000 each) would cover about 40% of the total value of all contracts estimated to number about 5,500e - 27 - Disbursements 4.12 The proposed sector loan of $100 million would be disbursed on the basis of: (a) 100% of the foreign expenditures of imported equipment includ- ing books and materials, or the ex-factory cost of locally manufactured equip- ment; (b) 65%. of the cost of other local expenditures for equipment; (c) 100% of the expenditures for specialist services, overseas fellowships, studies and repatriation of Korean scholars from abroad; and (d) 60% of the expenditures for research grants. In order to facilitate Bank processing of disburseament applications a minimum level for withdrawal applications of $10U,000 has been set. The estimated disbursement schedules by year and semester are given in Table 4.4. The proposed program would be implemented over a four-year period commencing from July 1, 1984. The completion date would be June 30, 1988 and the closing date June 30, 1989. This period is judged feasible because perfornance on Loan 1800-KO is satisfactory and, according to the schedule of implerientation, all subprojects would be processed and preparation for pro- curement of goods and Bervices would be at an advanced stage by the effective date of the loan. Table 4.4: ESTIMATED DISBURSEMENT SCHEDULE BY SEMESTER ($ million) Actual disbursement Bank FY Accumulated Percentage profile under & semester Disbursement disbursement disbursed Loan 1800-KO/a 1985 0.5 0.5 1 0 2 4.5 5.0 5 0 1986 -I- 5.0 10.0 10 1 2 6.5 16.5 17 3 1987 12.0 28.5 29 13 2 16.0 44.5 45 29 1988 --lr- 24.0 68.5 69 60 2 16.5 85.0 85 84 1989 X_ 8.0 93.0 93 88 2 7.0 100.0 100 100 /a The profile is based on the actual performance under Loan 1800-KO, sector loan for higher technical education, the most comparable example in the Region or the Bank. The projected higher rate of disbursement during the first three years of the proposed program is due to the accelerated schedule in subproject processing by comparison with the schedule under Loan 1800-KO. - 28 - 4.13 In reference to documentation of disbursement applications, for con- tracts exceeding $100,000 two copies would be submitted to the Bank. For the large number of contracts below $100,000 (para. 4.11), statements of expendi- ture (SOE) would be used. In this case contracts and supporting documents would be retained in one location each for KOSEF and MOE, and made available for review by visiting Bank missions. Disburaements aisinst SOES would be made on the basis of a consolidated summary, each not less tnan $100,000O Disbursements against other program expenditures would be mado against full documentation. 4.14 Under the proposed loan, special accounts would be set up for the disbursement of KQSEF research grants, for XAIST and for MOE. These accounts would be set up and maintained in US dollars at the Korea Exchange Bank at Seoul, Korea. For each special account, applications for replenishment would be submitted quarterly, or more frequently if necessary, with SOEs as supporting documentation. The Bank and Government have agreed that opening of the special accounts for KOSEF, KAIST and MOE would be a condition for dis- bursement under thelr respective categories. Accounts and Audit 4.15 Government would establish and maintain separate accounts to record expenditures of proceeds. Auditing of accounts, including documentation of SOEs, would be performed by an independent auditor satisfactory to the Bank. Annual audit reports would be sent to the Bank within six months of the end of the Government's fiscal year. The Bank is satisfied with present auditing in Korea. Six months after the closing date Government would submit a project completion report to the Bank. 5. BENEFITS AND RISKS 5.01 The proposed sector program represents a new approach to improving science and technology education, as one element of a broad effort to raise the technological level vf industry. It focuses on government action with respect to sector policies and institutions that together hold far-reaching change in the management and performance of science and technology educa- tion. These adjustments would improve sector management through actions to set academic standards, concentrate resources for graduate education, increase research activity ia priority fields, and strengthen sector planning and program evaluation. They would improve sector performance through actions to increase the supply and qualifications of teaching staff, improve facilities and equipment and increase resources devoted to practical and laboratory-based educational activities. At the graduate and colige levels, by 1990 student: faculty ratios would average 20:1; average teaching load would be approxi- mately 10 hours per week; about 50% of all faculty would be on full-time appointments; and the proportion of faculty holding the doctorate would reach 65% in science, and 50Z in science education and in engineering. The shortage of laboratory facilities would be reduced to 15% of the official standard. The deficit in equipment for research and teaching would be reduced to an average of 30. of the official standard. At the secondary level, all students - 29 - in GHSs would study four science subjects; 140 experimental units would be introduced in these courses; about 20X of instructional time In science would be devoted to experimental science; and the overall deficit in laboratory facilities and science equipment would be narrowed to about 15X each. By 1990 the science and technology education sector would graduate approximately 7,000 students per year at the graduate level in science or engineering; 18,000 students at the college level in science or science education; and 400,000 students per year from GHgs with an improved science curriculum. As a result of this program these graduates would be of higher quality and in fields of evident national priority. 5.02 While providing substantial "enefits, this program comprises mani- fold changes. It would be complex to -axecute and would impose a significant management burden on Government. Due to the significance, complexity and management load of this program, there is a risk that delays may occur. However, features of program design and lessons from the program for higher technical education (Loan 1800-KO) incorporated into this program reduce this risk significantly. First, the main agencies involved participated exten- sively in the sector survey in 1981 and 1982 and in the identification and preparation of the program, including revised policies, institutional changes, and guidelines and criteria for approval of national programs and subprojects. Second, the management system and operating procedures have been designed to allow for adjustment during implementation by mutual agreement of Government and the Bank following annual joint and mid-term reviews. Third, the schedule for subproject processing and equipment procurement has been significantly advanced by comparison with the previous program. In sum, Government's familiarity with the content of the program, its commitment to the objectives, the flexibility of program design, and the borrower's experience and competence combine to reduce risk to acceptable levels. 6. AGREEMENTS REACHED AND RECMMENDATZ0IN 6.01 The Bank has obtained assurances from the Government on the following matters: (a) the time schedule for implementation of actions and attainment of targets set out in the Policy Letter and Action Program submitted to the Bank (para. 2.01); (b) fellowships would be awarded in accordance with selection criteria and procedures acceptable to the Bank (paras. 2.07 and 2.14); (c) Government would approve national programs and subprojects according to agreed criteria and guidelines (para. 3.11) (d) the performance indicators, first year and mid-term targets, including indicative annual enrollment levels, and reporting requirements (para. 3.14); (e) timing of annual and mid-term joint reviews (para. 3.14); - 30 - (f) in order to finance subprojects with private institutions, Government would enter into subloans on terms and conditions satisfactory to the Bank (para. 4.09). (g) Government would prepare each year during the program a financial plan for private graduate schools, colleges and high schools and, in consultation with the Bank on the occasion of each annual and the mid-term review, proceed to implement this plan (para. 4.09); (h) minimum level for withdrawal applications of $100,000 (para. 4.12); (l) KOSEF, KAIST and HOE would each open a special account priot to disbursement (para. 4.14); (J) audit reports would be submitted by Government to the Bank within six months of the end of each Government's fiscal year (para 4.15); and (j) completion report would be prepared by the Government and submitted to the Bank within six months of the closing date of the loan (para. 4.15). 6.02 Subject to the above conditions the proposed program constitutes a suitable basis for a Bank loan to the Republic of Korea of $100 million equivalent, with a term of 15 years, including a grace period of 3 years, at the standard variable interest rate. PIOORM( rot ScItcK AN ?K00(0L0Q UUCATIOK ActIon ProSrsa on Sacto Policis end instlnatutonal Devolopments 1984-90 Cbactivae/vtrstegee Actions taken by April IS, 1384 Yurethr ctioto to be tAkc3 1. Graduate Troinina cad RAsearch3 To 4evelo. gradUate Proareme in the Sector snd to ot sod talS.* the quality of rorr.spondina res-eech activitta.. (a) Control qualitc of graduate progrme in Coveroment has tstated in tha creation of the AccreditotIon of graduate program in science and science and engintering by meano of gradu- torn,n *so ocLation of all colleges n4 univar- enginvertng to be initiated for sector lnstitu- ate progrm accrotitation. sitfli In Kores. The Council seeks to pronte lions by June 30. 198$. quality education by coaductins reviews an4 *valusation of h4R*. education snd reconedins appropriate policieoo StUpS vre initiated for graduate progras acrteditation under tha a"gis of the nw 0CUt3. Prograt evaluation at RAWl? wo14 be conducted by an asternal visiatig comittee. (b) Concentrate resourets for graduate u duc.- Governaent haa decided to designate aoleced4 .pproxieatsiy 10 gr*du*to-artented univeraitiea tion tn the sciencee and tn engineering in graduatt-orteonted universities for scitnca and in science end engineering are to be sasetat4 by fewer Inetitutions, with Lncr*ssed ape- en4ineering ftlds. Ouuideins and *l1tbtliUty scGas of aubloanx for equipment *nd grants for tisligatton among instltutions to be criteria for sublotas and a*sttence under faculty development. During 1984185 covanasot reflocted tn the tnvestment plan for ntionAl program for graduate schools were would also Prepare a long-teor development plso fcilitias and equipment. reviewed by ank staff and arm acceptable to the for graduate edUcation. Sank. (c) Strongthen the key institution for 6s8r prepared a develo;=ent plan to expand sup- HOSE? 'ould allocAte about 1 600 rearsch tarnts pr,motion and funding of res"rch in port of *cademic reseatch in science and tschnol- with approximately 602 of funds to basin and support of national stionce and technology ogy. 605K has r.viwed priority fitlds in rals- apptiwd sciince and 402 to *ngineering tields. &oals. tion to the MOSt plan or science end technology At least 752 of research greats would support development. tOSS? prepared an ioveet nst plan work of university or eollege-based researchers for academc research suppott indicating proposed under "OIS. C05U? Progre Promotion Department allocations to Priority Kteld a/d also developed would Increase to 10 etaff b June 1985. Over- a plan ror strengthening 6OSFK management. Sank all. 60? staff vwould increase to ebout 45 by staff reviewe4 the investment plan snd the plan 988. for atrengthening K0s9? management sad ifound both plan reasonable. (4) Improve collAbortaton amng grduate HOST ha budgeted fot reseatrh collaboration with ItAIT would tnplent a plan for expsosion of echools end teaserch institutes by coope. untaxrsities and witb private tnductry. DSIT hbe graduate Cducatio, espcially at the th.D. ration n gradate teethiog atd in joint forsalty instructed maJor reasatch inatitute* to level. Approxiately 10 maJor reoearch inati- research. appoint trSit4ng coordinators from amon the re- tutes would appoint training coordinators by eatrcb petsonnel to organis* end *upervia. assti- June 30. 1985 to assist in providing research tence to graduate atldante frox universities who tratning to graduate students troi universitieas. would undertake dtisertation rea*arch at reasrech Institutes. AonS re***Atch inatttut*s, IAIST, in porticulat serves so a sajnr center fot univar- city faculty develop'mt. KAr is also conduct- og psrt-ti grasdata progris for *pproxiset.ly 400 eciettiets end engineers ti the inatitutee. (e) Develop within tbe network of collegee of Th Oov r,ment decided to eetablieb the Korean corermet would ispleomnt a devlopment plan for education, a specll.x*d center for grad- Kntional lniversity of teacher dcation for the torean National University of Teacher Xduca- at* traintng and for research and devnlop- co_3ncMent Of oparitian in Mlrch 1955. SnkA tios. ln the first year of operation, the ent itn oieonce ducation, staff reviewd proposls for graduate training University vould scroll about ,500 studeta And reesArcb In eci5tne eductatio. Sank staff including about 700 at the graduate levl. Of agreed to Include under subprojectt an allocation themaa approutiately 250 would purts the mstars for graduate training ir acionca educatSon, sub- or doctorate degree in acitnce education. On ject to Preparation of detallaid loan *pplicatton. copleting their studies, these sciene education pecialiate wou4 take positions ao professors of acience education in collegs of education or as super,isors *aduinListrators or saniace educatico researchers in agencls of the *setor. 2. CollSaa-Lavel icianct Z&.catlont 'Po incret the nu btr and raise the ous *liftotna of tenhLua facuty and to mro failiti nd Wo0loitnt0 In Co,las f aural !scine n science education d Sprtaentn cotllees of "d'cAtion. (a) Control quality of scienez progrma by See Section i (a), Sea SectiaO I (A). manst of a college of natural Science accreditation. |~~~~~~~~~~.2 S Yf I 0b:octiivs/st toyeglo deltaos takes by Aptst 15, ISS orhesr atilocn to be then (b) tnrease aumber sad utrads qualifictsioas of faculty ambers i colloges of educa- ovafnat baa prepared faculty lavalopmant and *2,vernaent would taplesent plana for aoe2uty ctlo and collagOe of ncaturol cionce. faculty frcruitman plans tor colleges of aduna- recruitwnt and development according to the Mt- Contins recrutc_int proora, tor faculty te0s, C ollagse of natulal *cients cd oellogee of lovin oloals tfo June 30, 1990t averago student; of colleges oat eaglosiring. 4gioeerisg. National prograw gor faculty teacher ratio wuld fall t co LI evernn o teach- developmant and recruitent rer designed and in load would be 10 hOurs per wooik ct loast 102 coated. ;ea1k ,taf reviewd the plano and futod of faculty would be on full-time appoilanants; thb rorabb. and the proportion of faculty with the doteorate would be 652 ic collages of nacural scionce and 50i in colleges ot education and colleges of yineerng. overnment has 4gred to interim targets for aid-term review iSn 197 oaf average studentiteachsr ratio of 2511 ta colleges of natural science and of education and 2851 in col- leges of engineteringi a,verage, teaching load of LIi houts per weak; at Leat 402 of ffculty ao fullo tim appoLantnts; and proportion of faculty wlth thc doctortec mo 1ees then 53S in colleges of natural science, 40K in colleges of education; And 402 in colleges of engineering. (c) Prepre tn Imprcveaent plat fta fanilities Gonsrmnt has prepared revised equipasot tlsto Approalately 30 colleges of natural scLence and And equipMent. by subject ares. XquIp_n for college of educa- 20 colleges ot education would be assisced under tlon in primartly for science education aod sct- cbh progroa. The deficit ln laboratory facili- face teeching. An Lnvteteent plat besed on ties would be reduced to about 1X. The defieLt udpated aroiay of requirseenta wac reviewed by in equipment tto teaching and rveseoch would be lank stff and found resonable. Guidelines and reduced to about 305 by 1990 and eoable labora- liSgibility criteria were &greed for purposes of tory work to incrose froe 102 to about 302 of processing subloens. closs time. 3. Secondcrv S4cLre Gducotiout To incrse e etud} of scienc sublcts areticulr1 at the hu h schol leve: tO isofowv curricula end instructional netteiale: to stranethan the skills of classroom c-achers,a*nd to unrard. lities and acutresot of aerisr-l htCh schools and r-uional sctence cantors. (a) Desion and iaplmnt new science turrt- Go,erusent hba adopted a plan to otfer high Proc 1984 Covernent would introduce a plan as culux witb greater whnasie on enperi- school science coursen on both the ordinary and followst all students in general high schools ental and practical science woch a*nd the advanced levels, with ecionc- raquireent for would take four science courses on either the eatablieh a management agency to oversee all students and prepared syLlabi tor new coursoo ordinary or advanced levell about 20S of instrucb and coordinata overall isplmentation. to be Introduced in 19W. Now courses woutd tionL tine would be devote4 to exerienctal devote about 20X of instructional tis in science work. The deficit in laboratory facilitcies and to exper Lustl work. beak staff revitwd the in sclence equip-nte would be reduced to about plan for iprovesent of secondary ecienca cquri- 152 by 19"0. The SdDC would comence operation by cuban. Bank stafft ad overnaent agreed on the June 30, 1984 with * staff of about 10 acienca creation of the Science Edacation evelopment educators under an advisory panel of representa- Co_mttex (SDOC) to oversee planning and tipl_- tives of Covernment. the educatlon and research enstetlo Of disparate functions of curriculum sector an4 induatry. In order to facilitate doeai.. materials ptparrcLon. teaocher retraln- iplmentatlon. the Scitene and Vocacional Zduca- Lng evaluation nd feedback and on staff ton Division of C2D would increase to 15 by etrangcnaning of the Science an4 Vocatlonal Edu- JuDn 30, 1984. cation Divisien of CXW. (I) Sntroduca yaretetic wonltoring of aecon- Governmnt *nd the blak have agreed on two areas Government wotd lintroduce, by Jun 30, 1985, a dry` ectencn oducation for policy anAl- char require further study. These are the need plan for onitorinsg the secondry ecienco prosrea rta. fort natiownl urvays to evaluate student pet- end a plan for improvu taechera' anssx-xnt torantc f or policy uidance edA ILProvment of shills. xassexoet skills by tCechen. (c) Adjust college sdmidsona procoduces to Since 19S1 colloge adisatlon procedures have Government wOuld evaluate the adaisaione ameaina- enable tndivtdual colleges to select etu- takn oto account the school record and the tion systen and develop a modifiad approach with dents by tekicns gccount ot students ovew- school record includes a grade for expernmatatl a veew to providing selecting colleges the tru- al performance on the entrace *ream- and practical mosk. Sn eost cxse, however, only dInts scores in eathasatics cad science as well toes as wel as schtieeaag on the a total snore to "4e ovailable to collages and a* the etudente snChol record. Plndints ot the sel-ne and athematine component of the decisions on aduiseioo to program in science or study wold be implnsented in the admissiona axtracc aoxamlotion and on the school enginrtin are made without detailed information cycle for the 1937 academic year. record. oo stUdent prioe acbisremat in alnenna and mAth- eleties, Ths effecte of the changes to date *rs Insufficient as en incentivet for schools, tiach- ean and students to place sorn emphasis on aoL- sns. The school record ad the scienc record comonent are not ysxcaatinally shared with CeOlLec seleting studets. (d) Desgn an implemnt staff developent M prepared a national progra for reeriniLng GoVArmeOt would rcruilt approxznattly 700 ad4i- prosmem ror socondary sceLnce te-chare, sd upgrading secondary sclenc tcechers ad spa_ tionel sciencr teachers per year from 1984 to laoratory cassitants, an science *duca- claliato including overseas training In fields 198 And *also attain a level of 2 laboratory tic oVpeclsts in regional acieAc ca- not currsetly offered tn colleges in Korea. lank asistants per genaral high school by June 30. tesrs. A central asgncles of Dd staff :e_vieed the national progrse and found it 1990. ro.enable. A9NFJt I -33- Page 3 1 Objectiveelatratagtea Actioan takmn by April 1, 1984. Further actLin. to be taken 4. Science nd technolog Etducation Sector Plan- nitn *nd Itnanca. (a) Improved manpower monitoring for science EPb chairs a manpower promotion comlttes. wth MOE would regularly provide results of manpover and technology sector. authorlty to coordinate anepower ;lanning, to studiss to universities and Is*o memlet each formolste snd coissioa epoie .s_cudtes. Gov- Lnstitution to Improve services of student career *rpneO regularly upd, as manpower prcjactLons as counselling. well as relevant lahor market informeu t3n, using resources of IOST, inLetry of Labor, Hli, HPS and consultante tn Korea Development Intitute and KZ D. (b) Projected enrollment in undergraduate and Y11Of and K1O0T have prepared enrollmnt and output Goverament would monitor enrollments in terms of graduate progrsa in *cience and engineer- forecasts through 1990 in sciance and engineering labor erket demand as well as Indicators of pro- ing should not exceed economically juati- program as indicative annual enrollment le- gran quality as in 2 (b). Governaent would also fiable level or incresse at such a pa-e as aI. Bank etaff reviewed enrollmnt and output use agreed annual enrollment levels as a guida- to prejudice goal of improving quality. in reletion to investment plan and various esti- line for planning. For college. of engtnesring, mates of demand prepared by MOST. On tha gredu- in parttcular, the Interim target for 1987 is ate level there Is en approximate balance. On 140.000 *todental the guidelIne figure for 1990 the undergraduate level. projected output in it 160l000 students. engineering may exceed the forecast of economic demnud. This iL due to high social demand, rapid engapsion of enrollment in the period 1980-82 and Covernmat decietons to prooeta training of eciesce and technology manpwer. (e) aseed on a sector survey carried out Government agreed that original policies to No further actLon required. jointly by Government and the Bank in 1981 reduce class size and achieve universal publicly and 1982, eaverel adjustments were recoin- funded middle school education would be achieved mended in education plana. Overall spend- by 1991 rather than by 1986 as was Initially pro- ing on education should be adjusted in posed. Government also prepared a revised analy- accordance vith economic performance and sis of projected educational enpenditute and annual budgetary policy, 1t order to finance in Korea. Bank etaff reviewd the Itofor- diminish impact on recurrent expenditure mation and conclud. J that the overall trend is of proposale in Fifth Five-Year Plan consistent wit"- its under the FPYP, Including (MP) to reduce rIses sine, raise teach- revenue f. -%aticn tax. trpendlture by ers' salaries and implement compulsory -ea 221 of national budget or middle school education, Government should "og the FF° and should decline phaee Implementation over a tan-year as n .J1V- . In 1982, total public expen- opposed to a fIve-year period diture on t_uu.tion and training reached approxi- mately 6% of 111P, and total private finsant of education avd training was shout 3.91 of GNP. These levels ere reasonable. (d) Korea has dave; >ed a large privately fun- Government recogniree that private educational Government would provlde assistance to private dad education systew that fulfills a valu- institutions provide valuable public service and institutions under enbprojecto and national able educational role at both the secon- reduce the share of educational fianace borne by program. Government would also prepare each dary and higher levels. tt operates under Government. It is in the public interest to pre- year during the progras a fitan-nAal plan for close supervision of Government, including serve their financatl base and to assist their private graduate schools, colleges and hlgh Government regulation ,f fees, and pro- achieving quality objectives. Bank staff schools to ensure the anahnceseoc of their vides educational servi-m in both urbaa revieved the Level of fees in both pubiLc and quality in accordance with the objectives of the ad rural areas. lt effeccivetl enxpads privet. institutions end judged them sa adequate program, end in consultation with the Bank, on educational opportunity without sectil and res onable. Goverment agreed to review fete the oceeaion of each annual and the mid-ters bias. blever, private schols and cl- annually and, if necessary. tinrease thm. raviev. proceed to Implement this plan. Ieges require financial assistante for improwment of science and technology edu- cation. Private graduate schools. tn par- ticular, require additional financial assistance for expension and iuprovemnt of graduate prograw. KOREA PROGRAM FOE! SCIENCE AND TECHNOLOGY EDUCATION Organizotion of the Korea Advanced InstHtute of Science and Technology Boofd Tutes - - - I E ?~~~~~~~~~~~~~~~~~~~~ Presklr Plarnningl Crw4ces|dent IPcdamic AoLa l & Reseorct Review Committee Dijiao atiI Disidn Scil Enowieeflng ~~~& phy.r Altaks Cocnto -ne E6ectical chemisty I _ l ~~~~~~~~ ~~Of fice atdln Ofc Genarcl Technical Techniccl Division d Division d A_im ion 9 Ctel woton Dsiondui of fIce ata Enginezng safety& _ In oo Sc d AcS hntWdt Chemical |trbdnab Stijdent nioig " = uto Affairs Lanit I atenisc e . EnierQtei "d * Engineegng c wod Bmk-2mM 7 ANNEX 3 Page1 - 35- KOREA PROGRAM FOR SCIENCE AND TECHNOLOGY EDUCATION Korea Science and Engineering Foundation 1. The Korea Science and Engineering Foundation (KOSEF) was established in 1977 as a non-profit foundation under the adminlstrative control of MOST. The Board of Trustees is composed of representatives of Government, the acade- mic community and the private sector. The current President of KOSEF is the Minister of MOST. As recorded in the KOSEF charter, the objective of the Foundation is to contribute to the advancement of science ard technology through fostering research, enhancing science and technology education and promoting international exchanges in the areas of science and technology. This objective is served through several KOSEF funded activities: a program of research grants for basic and applied research; a program of graduate research fellowships; fellowships for advanced study abroad; finaacial assist- ance for publications; and international cooperation involving scientific exchange, joint research, and visiting research fellowships. This program is managed by a permanent staff of 25 under the Secretary General and a set of committees composed of leading scientists and engineers (Chart 1). KOSEF financial resources are composed of income from an endowment fund, annual budgetary allocations under MOST, and other sources, such as donations from national or international sources. The KOSEF budget in 1983 was about $6.0 million. This is projected to increase to about $24.0 million by 1988 in 1983 prices. IBRD loan assistance would represent a decreasing share of KOSEF total program or from about 25% in 1984 to 10% in 1988. 2. A major objective of the proposed sector program is to help raise the level and quality of research, both as a contribution to advanced training in science and technology and as part of the national drive to promote research and development of relevance to Korean industry. During 1982, KOSEF organized a nationwide review of the state-of-the-art in scientific and technological areas of relevance to Korean industrial and economic develop- ment. This exercise was carried out by a cross-section of leading Korean scientists and technologists. Panels of experts analyzed each major field and subfield by discipline, assessed the calibre of research personnel and their contribution, identified weaknesses and recommended levels of research funding and related assistance for training to raise the quality of vork in 15 selected fields to international standards./l The expanded program of research grants would be directed at priority fields such as mathematics, physics, chemistry, biological sciences, materials science, geoscience, computer science, mechanical engineering, electronics, electricity, chemical engineering, architectural engineering, civil engineering, nuclear /1 Reported in Development Strategies for Priority Subfields In Science and Technology, KOSEF, March 1982. ANNEX 3 Page 2 ^ 36 engineering, and agriculture and fishery. Tentative allocations have been assigned to each of these fields for program planning. The overall estimated balance in these planning figures is 60% of research funds for busic or pure sciences and 40X for engineering fields. 3. Although tentative allocations by priority field Liave been assigned, research program funding targets would be reviewed and revised annually by KOSEF. This annual program planning would be based upon: an evaluation of ongoing research projects; formulation of priorities by subfield based on present scope, level and quality of researce, international comparison and development plan; and formulation of priorities by principal field based on potential contribution to industrial and social development, relative weak- ness, international comparison and demand for doctoral level manpower. 4. In response to a general announcement indicating priority fields, applications would be received and subjected to peer review by a roster of consultants maintained by KOSEF. Proposals recommended for further considera- tion would then be examined by a formal KOSEF selection committee. Once approved, grants are made to the researcher through his/her institution. These procedures are standard and have been modeled upon systems in place in corresponding agencies in the Federal Republic of Germany, Japan and the United States, among others. 37 - ANNEX 3 Chart I KOREA PROGRAM FOR SCIENCE AND TECHNOLOGY EDUCATION Organization of Korea Science and Engineefing Founcdction Prosicient ~~~~~BoardJ of Trustees j Auditor { iJnd Managerment Committee l_____ _ Prograrn 0evelolnment & 1 { P ~ ~ i?eview Comrnittee SPeciolized Cornmtitees for f Each ot t5 Prioity Fields ] Secretary General Fund Management General Af*fairs Prograim Promotion International Department Depairtment Department PRogram Department World Bank-25776 ANNEX 4 Table 1 _38 KOREA PROGRAM FOR SCIENCE AND TECHNOLOGY EDUCATION Planned Expansion of Graduate Programs Accumu- Estimated Type of Enrollments Outputs lated number graduate Actual Planned Estimated Planned total becoming training (1983) (1990) (1983) (1990) (1983-90) teachers/a Colleges of Natural Science - Master's 3,400 7,900 800 2,000 11,300 1,650 (15%) - Doctoral 1,000 1,800 100 200 1,180 600 (50%) Colleges of Education (science education) - Master's 100 200 - 200 700 - (0%) - Doctoral - 25 - 25 100 30 (30%) Colleges of Engineering - Master's 7,300 16,900 1,800 4,200 24,200 2,800 (10%) - Doctoral 1,400 2,700 150 290 1,760 500 (25%) KAIST /b - Master's 900 900 450 450 3,600 400 (10%) - Doctoral 260 360 50 100 750 200 (25%) /a Figures in brackets represent the approximate percentage of graduates entering college teaching. /b Full-time enrollment only. v-, Source: Bank staff estimates based on data provided by MOE and MOST. ANNEX 5 Page I - 39 - KOREA PROGRAM FOR SCIENCE AND TECHNOLOGY EDUCATION Science and Technology Manpower 1. Plans for strengthening Korean scientific and technological capacity are necessarily dependent on plans to produce an appropriate number of quali- fied persounal for industry, research institutes and academic institutions. That Korea firms face R&D manpower difficulties is corroborated by the results of a 1979 survey of 150 large firms conducted by the Federation of Korean Industries. Less than 50% of firms considered their technical staff as fully qualified and less than 40% were satisfied with the capability of R&D per- sonnel. Lack of appropriately qualified personnel, especially at the profess- ionaL level, was reported by most companies to be a major problem in running R&D facilities. For establishment of R&D facilities, recruitment of high- level personnel again ranked first among .the stated difficulties. 2. Shortage of qualified manpower, especially persons with relevant industrial experience, is also a constraint in the operations of the govern- ment-funded research institutes. In 1981 the approximately 120 government research institutes employed over 4,600 researchers, including 600 PhD holders, 1,200 master's graduates and 2,800 with the bachelor's degree. Further growth in the number and proportion of persons with the master's or PhD degree is foreseen by government officials. A major drive is also underway to recruit personnel who possess not only necessary academic creden- tials but experience in research management and leadership. Likewise, the demand for college and university faculty in science and engineering fields has increased as student enrollments have doubled since 1978. And Government seeks to upgrade skills of existing faculty through support of advanced training in Korea and abroad. 3. Relative demand for qualified manpower in science and technology is further evident from general labor market analyses. Earnings differentials in Korea between persons qualified in science and engineering at the university and graduate level and those of secondary or lower education have widened since the early 1970s. Based on annual surveys by the Ministry of Labor, average monthly earnings of science and engineering graduates over secondary graduates, increased from a ratio of 1.75 in 1971 to 2.30 in 1979 or by 31.4%. Whether this ratio will increase or decrease in the 1980s depends on a combination of factors. Not the least of these factors is the capacity of Korea to satisfy the demand for qualified personnel. 4. Projections of enrollment and output in graduate and college level programs in science and engineering for the period 1983 to 1990 are contained in Tables 1 and 2. MOST, KEDI and KAIST have recently carried out projections ANNEX 5 Page 2 -40- of future demand of scientific and technical manpower.-/ When these figures were compared with the supply estimates, the results from these different approaches were broadly comparable. In general, these studies portray differ- ing conditions across the three major categories of scientists, engineers and technicians. A shortage of scientists, generated largely from within the edu- cation system and research institutes, is anticipated throughout the decade suggesting that science education should grow modestly during the Fifth and Sixth Plan periods. In contrast, the supply of engineers should approximate demand through the end of the 1980s. This anticipated balance reflects major investment already planned in this decade to expand and upgrade undergraduate engineering education. The major imbalance, a significant surplus, is fore- seen in supply and demand for technicians. However, this category of manpower is also the most elastic. These graduates of two-year junior technical colleges have a range of choice on completion of their programs. A select few may seek to enter four-year colleges to improve their credentials. Those who enter the labor force directly may shortly progress to the upper ranks of skilled workers and craftsmen. The more able may even displace engineers from certain intermediate industrial posts that engineering graduates have tended to fill in Korea. Manpower projections by MOST also anticipate excess demand for skilled workers in the second half of this decade. An ample supply of technicians, trained at the junior college level in close association with industrial conditions and needs, might provide the needed cushion. 1/ Korea: Sector Survey of Science Education, IBRD Report No. 3775-KO, January 12, 1982. -41- ANNEX 5 Table 1 KOREA PROGRAM FOR SCIENCE AND TECHNOLOGY EDUCATION Projection of Total Undergraduate Enrollment and Annual Output of Colleges of Natural Science and Engineering ('000) 1983 1984 1985 1986 1987 1988 1989 1990 Colleges of Natural Science Enrollment 60.0 64.9 67.4 70.1 73.3 76.9 80.7 84.5 Output 11.4 14.9 15.5 15.9 16.6 16.9 17.8 17.8 Colleges of Engineering Enrollment 127.2 127.8 128.5 133.6 139.7 146.5 153.8 161.1 Output 29.0 27.4 27.4 27.0 28.9 32.2 33.9 33.9 Source: Based on projections of enrollment and output provided by MOE. _ 42 - Table 2 KOREA PROGRAM FOR SCIENCE AND TECHNOLOGY EDUCATION Projection of Total Graduate gnrol1ment and Annual Output of Scientists and Engi.neers Type of graduate training 1983 1984 1985 1986 1987 1988 1989 1990 Masters Level Science Enrollment 3,400 4,000 4,700 5,300 6,000 6,600 7,200 7,900 Output 800 1,000 1,200 1,300 1,500 1,700 1,800 2,000 Engineering Enrollment 7,300 8,600 10,000 11,400 12,80C 14,200 15,500 16,900 Output 1,800 2,200 2,500 2,900 3,200 3,500 3,900 4,200 KAIST /a EnroTIiment 900 900 900 900 900 900 900 900 Output 450 450 450 450 450 450 450 450 Subtotal Enrollment 11,600 13 500 15 600 17 600 9700 21 700 23 600 25,700 Output ,5 3w 4,150 4!5 T5 Y5W ,5W ,5 Doctoral Level Science Enrollment 1,000 1,000 1,200 1,300 1,400 1,600 1,700 1,800 Output 100 110 130 140 150 170 180 200 Engineering Enrollment 1,400 1,500 1,700 1,900 2,100 2,300 2,500 2,700 Output 150 170 190 210 230 250 270 290 KAIST /a Enrollment 260 320 340 360 360 360 360 360 Output 50 100 100 100 100. 100 100 100 Subtotal Enrollment 2,660 2,820 3,240 3,560 3,860 4,260 4,560 4,860 Output 300 3ao 42W '-45 4* 0 5zu -5So '30 Total -Enrollment 14 260 16 320 18 8&0 21 160 23 560 25 960 28 160 30 560 Output -3350 4!030 4!570 5'100 5,630 6 70 6,700 7!240 /a Full-time enrollment only. Source: Bank staff estimates based on projections of enrollment and graduation provided by MOE and HOST. ANNEX 6 Chart 1 KOREA PROGRAM FOR SCIENCE'AND TECHNOLOGY EDUCATION Responsiblitles for Management and Implementation Licison woh Bank an Locn Ministry of I Finance Excu"m Aut a .y Vlce Vc Minister Minister ~-_ Program Manogorerit._ Coordinatio E ons FinncirraiCtrl OMic7 KOSEF AS Implementation: Nabtnol Programs: HEB FEB Educcationci SUb04OieOt Tasic Procurement ~ ~ ~ ~ ~ ~ Eveho Apsoal Ffe Imlwo rl Publi Pte |e Pocurement I _ .-' I[3 MOE - Minishy of Education KOSEF - Koma Science & Engineering Foundation TIEB - eachere & international; Ectucaion Bureau MOST - Mnistv of Science & Technotagv KAIST - kotea Advanced Institute of Science & technology OSQOK -Oice ot Supt,y. Rlepublic et Korea EFB - Educationai Facill1ies Bureou HiEB - Higher Educaion Bureau OSTP - Office of Science & Technology Polly GEB - GereapI Education Bureau Woli Bank-25775 4 - ANNX 7 Chart 1 F~~~ ILJ |~~~~ th ji 'Ii3 2~~~~~~~~' ii ai Ii is jtK i L iX KOREA PROGRAM FOR SCIENCE AND TECHNOLOGY EDUCATION Orgiiation of the Min ,try of Sciemc and Tcbhncoia scwncianbrd Dvlme tor _ Altomnicand T~noI~ POIIC Promotion Buromulic Inforumtion Advitv Cornmrtt ftor_ EMPa DoagAemteand l E Coordnion . ___ i Advisory ComrnttZi on _ hirto Pbnninai Ottica Reort Sd _ _ t Gen~~~ ~dicetnr cisemiwy arId ~~~~~~~Technology Aftalt a~Ptnd iugetd Overal olnnn Oaseopmsens n Aoic oriccensigwPlnfontiongadcop Minaionnn anhd olB y ,Scienced PrmotionBuDionru Bureiun PlDviingison Biuro | e | PAdminstrative Co|rdinator I Coordinator TacCoologition Nu | NucarReact | Multiateral anagd n Mehaucl ndEnrg adoangment R&DorImacio paN Division Division a t1eri cienci Resource | Division Divion Disionsi Dinsin es DAcminitoualw rCoordinator Director e h Isir l 1 tSbcbroiraEl i and R&D n rcler Radiation l nformation Weitral Administrator El ~ AmnitCDiiinStandards Salary Processing Coopration Office Engineering Division Olv~~~~~ ~ ~~~~~~~i.ia. Divi,irn. Diviion Division Kram Advanced lIntitute ol Science and Technology legal ~~~~~~~~~~~~~~~~~~~~~~~~~~Korea Adwriced Energy, Reserch_institute DMi Cental Me eor- Nettsol ii tlorieb Attton. De,adatir S tecnolgy |olog;ical Oficei | | ScincaMus4eum ||omksicObujrvar | Tovn Adominist- | oec Institute 1 1 1 1 1 0 1 ration Office Korea~~~~~~~~~~~~~~~~~ Instit-ute of Mach inerTy and ietas ________________________________________________ Korea Institute of Energy and Resources Kore Standlards Reeach Institu Korea Research institute of Chemical Technology Korea Ginseng anid Tobacco Rweserh institute Korea Instiutu of Electronics Techlnology Korea Science"an Engineering Foundation C World Bank-239lB9 46 ANNEX 9 ~ 46 - Chart 1 KOREA PROGRAM FOR SCIENCE AND TECHNOLOGY EDUCATION Procedures for Generating and Processing Subprojects Institution _… F ----…-_ su…o…ect Appolccutln tI Yes vs tne> EFB ProwAdes Newebd In Assistance .,PreperI:on? , N~~~~~~~~~~N Modil¶cctions No -'&lets N EB S n ctlo:ns to meet ApIplcotion Appltotbn to Meet Requlrements % ,Requirements?,o crltenla Xyes "ki 4 To* Force ~~~~Taskr Force llt 1 Tak Force Appraises Appoval Appointed Sudqroject th Cerla & _ Bureaus N EFB &}Other | " Approe? Bureaus Subrnl to Recommendation Submitted to VIce Minister oo s > ~~~~4 Subprojeet L _-Wodd Bonk i Subrnitted to -- - '.ember 1983; (f) the faculty concerned must be able to produce evidence of productive research activities (e.g., (i) institutional research grants awarded by KOSEF or other research funding institution; (ii) institutional research budget; and (iii) theses or papers accepted for publication); and (g) the institution must have a development plan for five or more years with emphasis on demonstrating how quality improvements would be achieved within the program concerned. ANNEX lOc 54 Page 2 College programs: (a) the institution is a national, public or private university/college with faculties of science and/or education; (b) as regards size the university/college must have at least three science departments; and in the case of colleges of education it must have operated at least two departments of science education before September 1984; (c) the ex4sting staff in the three or more science departments must include at least 12 full-time faculty members each qualified to teach science; the existing staff in the two or more departments of sc4ence education must include at least two full-time faculty members qualified to teach subjects in science education; (d) as regards student enrollment, the number of entering students in the college of science must be in 1983/84 in excess of 120 in basic science departments; the number of entering students in the college of education must be in 1984/85 in excess of 20 in each science education department; (e) the institution must have been in operation for at least four years by September 1984; and (f) the institution must have a development plan for five or more years with emphasis on demonstrating how quality improvement would be achieved for the program concerned. General Guidelines for Allocation of Loan Proceeds 3. The following guidelines would be used by the Government for the approval of institutional subprojects: Overall allocation of fund. It is expected that the overall allocation would not exceed: $20 million for science graduate programs; $10 million for engineering graduate programs; $30 million for science college programs; $10 million for education college programs; $10 million for secondary-level science programs; and that the total allocation would not exceed $70 million. (Not including KAIST; see Note /a below.) Concentration of funds. Within the above ceiling for each category of programs, it is further expected that there would be no more than 15 subprojects for science and/or engineering graduate programs; no more than 35 subprojects for science college programs; and no more than 25 subprojects for education college programs. Regional distribution of funds. For science and engineering graduate programs, at least 30% of its share of loan funds would be allocated to institutions outside the Seoul area. For science and education college programs, at least 50% of loan funds under that category would be allocated to institutions outside the Seoul area. Participation of private institutions. About 30% of the share of loan funds for graduate and science college programs would be allocated to private institutions and about 40% of the share of loan funds for education college programs would be allocated to private institutions. ANNEX lOc Page 3 - S5- Maximum and minimum allocation per subproject. The maximum and minimum allocation per subproject would be as follows: Programs Maximum Minimum Graduate level /a $5.0 million $0.5 million Colleges of Natural Science $3.0 million $0.3 million Colleges of Education $1.0 million $0.1 million /a The graduate-level programs at KAIST would exceed $5.0 million. Due to its size and the emphasis placed on doctoral education and research, this institutional subproject has been appraised separately and therefore would not be subject to the max.num limitation as set in this document. ANNEX 11 -56 - Chart 1 KOREA PROGRAM FOR SCIENCE AND TECHNOLOGY EDUCATION Korea Sclence and Engineering Foundation Procedures for Selectlon of Research Projects PDRC Appoints s_.l.ze Specilzed Spciaitzed Cornrmittees Solicit Comittees Submit Cory,mlttees Int Each ON eccmrnendations fo Recommnernotiorns fot of Is Research Reeorch Goiscs in ach Field Relds s to PORC |Institutlons Invited to Submit s Research Proposols Instlh110on Modifications Prepres & . * _ Modlfcatlrons to to Meet Crttenoa Subnits Research Meet Guidellnes _ ~~~~~~~~~No PDRC Classifes . ev ewets No Appoints Re1ewets .RView Prorls N Meets GuldelInes7 > yes . _- S.... Subcomrnntees PDPt" Appoints Revewersubrt ,, Meets Cdterla? Evalu`te. Subcommittee to Rating & Recomn- - R Proposalss mendlon to PDRC N. Subcornmittee Submits Repoft & RecommenCa11on to PDRC - -, Recomtnendotion | N Institutlon < POC Approwes? Submitted to *1C, President ApprIves? - lmplerments 00- Prgideret - . Research Proaect PORC: Project Development & Review Comitnlee Wodd Bank-25772 ANNEX 12 Page 1 - 57 - KOREA PROGRAM FOR SCIENCE AND TECHNOLOGY EDUCATION Xey Performance Indicators 1. The principal objective of the sector program is to raise the quality of science and techinology education to the standards required for an industrial system that will be more skill- and knowledge-intensive and employ more advanced technologies. As summarized by the Action Program, to achieve this objective, Government would: introduce new and revised policies; effect institutional changes to strengthen sector management; and improve the finan- cial position of sector institutions by reducing the investment gap. For monitoring progress with respect to these changes, Government and the Bank have agreed on the following key performance indicators. They would form the basis of progress reports and be reviewed jointly by Government and the Bank on an annual basis and on the occasion of the interim review. 2. Policy Achievements (a) Manpower monitoring, whether data and projections have been disseminated and utilized. (b) Enrollment and output monitoring, whether supply and demand appear to be in relative balance. (c) Educational expenditures and finance, whether percentages in terms of share of GNP and total government expenditure are as projected. (d) Financial assistance to private institutions, whether enrollments in private institutions maintain their share with respect to total enrollments. (e) Accreditation and quality control, whether advice has been provided to and taken into account by colleges (see 5(e)). (f) Concentration of resources for graduate education in key universities (see 5(g)). (g) Research promotion and management (see 5(f)). (h) College admissions procedures, whether changes have been effected and with what results. (i) Teacher recruitment and upgrading (see 5(b) and 5(h)). (j) Experimental science activities (see 5(j), (k), (1)). (k) Educational performance monitoring, what recommendations are generated by the studies and policy changes that have resulted. 3. Institutional Development (a) KCUE as accreditation agency (see 2(e) and 5(e)). (b) KOSEF for research promotion and management (see 2(g) and 5(f)). (c) Hankuk Teachers' University for graduate study in science education and for development and diffusion of research and innovation in ANNEX 12 -58 Page 2 science education and other fields of education, improvements in curriculum and teachings (d) BSDO for coordination of the improvement program in science education at the secondary levelp results of related studies, 4. Management Development (a) Preparation, appraisal, implementation and monitoring of national programs and subpiojects (see 5(g)). (b) Procureme?&t of services and goods (see 5(h) and (m)). (c) Disbursement management (see 5(zn)). 5. Quantitative and Qualitative Targets (a) Quota, enrollment and output data by year versus planned figures for science and engineering at graduate and college levels and in general high schools (see Annex 5, Tables 1 and 2). (b) Number of staff, recruitment and attrition versus planned figures in science and engineering at graduate and college levels and in general high schools (see Tables 2.1 and 2.2). Note: Student/teacher ratios can be calculated from (a) and (b). Cc) Number of part-time staff employed in science and engineering at graduate and college levels, full-time equivalent and ratio of full- time to part-time staff (as full-time equivalent). Cd) Breakdown of staff by qualifications in science and engineering at graduate and college levels and proportion of faculty with Ph.D qualifications. Ce) Numbers of science and engineering disciplines reviewed and accredited by year. (f) Number of research grants by year, average size per grant and break- down by major fields. (g) Number of subprojects prepared, appraised and approved, broken down by program component. (h) Number of staff recruited from overseas, number of specialists appointed (including information on duration of each) and number of overseas fellowships by major fields. Ci) Number of studies commissioned and amount of contract. (j) Number of experiments performed at secondary level as compared with the number before the program. (k) Percentages of equipment availability in colleges and general high schools as compared with standard lists. (1) Number (average) of experiments performed in four years in science, science education and engineering courses at college level as compared with the number before the program. (m) Number of equipment contracts awarded, total amount of award and average size of contract. (n) Number of applications for withdrawal, total amount of disburse- ments, average size of disbursement and number and amount of withdrawals for the replenishment of the Special Account. 59in ANNEX 13 Chart. 1 V LU~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~U fp..~~~0 0 - - -- - - - - --- - - _ N __ ._ C__ a o - - --- - 0--- U.3I N X a Z i d g f § t -S0 fl I zc -~~~~~~~~~~~~ -60- ANNEX 14 Table 1 KOREA PROGRAM FOR SCIENCE AVD TECHNOLOGY EDUCATION Investment Program by Category of Expenditure and by Public and Private Funds (July 1984 - June 1988) $ million) Category of expenditure Government Private Total Civil works 142.6 76.5 219.1 Equipment 121.9 74.9 196.8 Repatriation of scholars 3.0 0.0 3.0 Overseas fellowships 24.6 0.0 24.6 Local training 57.7 0.0 57.7 Specialists services 1.2 0.0 1.2 Studies 0.7 0.0 0.7 Research grants 39.4 0.0 39.4 Total Base Cost 391.1 151.4 542.5 Continuencies 110.0 42.6 152.6 Total Program Cost 501.1 194.0 695.1 ANNEX 14 61 - TabLe 2 KOREA PROGRAM FOR SCIENCE AND TECHNOLOGY EDUCATION Investment Program by Year and Program Component (July 1984-June 1988) Year and FY85 FY86 FY87 FY88 Total program component -------------- ($ million) -- Graduate Level WOE 30.9 27.3 24.3 30.0 112.5 KAIST 9.4 11.6 10.6 8.7 40.3 KOSEF 6.3 9.0 11.4 13.1 39.8 Subtotal 46.6 47.9 46.3 51.8 192.6 College Level H4OE 46.2 42.1 33.0 37.2 158.5 Secondary Level HOE 52.9 49.5 44.8 44.2 191.4 Total Base Cost 145.7 139.5 124.1 133.2 542.5 Contingencies Physical 14.6 13.9 12.4 13.3 54.2 Price 6.0 17.2 28.6 46.6 98.4 Total Contingencies 20.6 31.1 41.0 59.9 152.6 Total Program Cost 166.3 170.6 165.1 193.1 695.1 -62- ANNEX 14 Table 3 KOREA PROGRAMA FOR SCIENCE AND TECHNOLOGY EDUCATION Overall Financing Plan by National Program and Subprolect Source of financing National program Proposed Z IBRD or subproject Government Private IBRD loan Total financing - -------- - ($ million)- …- National programs Research promotion 30.4 0.0 9.0 39.4 23 Repatriation 0.0 0.0 3.0 3.0 100 Overseas training 18.1 0.0 6.5 24.6 26 Local training 57.7 0.0 0.0 57.7 0 Accreditation & studies 0.0 0.0 1.9 1.9 100 Facilities and equipment for GESs and RSCs 102.6 68.3 6.6 177.5 4 Subtotal 208.8 68.3 27.0 304.1 9 Subprojects KAIST 32.1 0.0 5.4 37.5 14 MOE Graduate level 48.4 32.2 19.7 100.3 20 College Level 44.8 30.0 25.8 100.6 26 Subtotal 125.3 62.2 50.9 238.4 21 Total Base Cost 334.1 130.5 77.9 542.5 14 Contingencies 93.9 36.8 21.9 152.6 14 Total Program Cost 428.0 167.3 99.8 695.1 14 Front-end fee on Bank Loan 0.0 0.0 0.2 0.2 100 Total Financing Required 428.0 167.3 100.0 695.3 14 - 63 ANNEX 14 Table 4 KOREA PROGRAM FOR SCIENCE AND TECHNOLOGY EDUCATION Tentative Bank Financing by Program Com2onent and Item of Expenditure ( million) PReearch Repatria- Overseas Specialists 1- jel Equipient grants tion trainirg services Stixes Total Graduate Level bOE 25.3 - 2.6 1.3 0.2 0.2 29.6 KAIST 6.9 - 1.3 1.3 0.5 - 10.0 Kow 0.0 11.6 - 0.2 0.2 - 12.0 Subtotal 32.2 11.6 3.9 2.8 0.9 0.2 51.6 College level W9E 33.0 - - 4.0 - - 37.0 SeodayIze mE 8.5 - - 1.5 0.5 0.7 11.2 Front-end fee on Bank loan - - - - - - 0.2 Total 73.7 11.6 3.9 8.3 1.4 0.9 (99.8) 100.0 -64 - ANNEX 15 Table 1 KOREA PROGRAM FOR SCIENCE AND TECHNOLOGY EDUCATION Procurement Profile /a Procurement method Total Category of ICB LCB Other N. A. cost expenditure --------- ---- -$ million) -------- - ----- Civil works - 280.9 - - 280.9 (0.0) (0.0) Equipment and instruc- tional materials 201.7 37.8 12.6 - 252.1 (61.8) (11.0) (0.9) (73.7) Local training - - - 73*9 73e9 (0.0) (0.0) Overseas fellowships - - - 31.5 31.5 (8.3) (8.3) Overseas recruitment - - - 3.9 09 (3.9) (3.9) Specialist services - - - 1.4 1.4 (1.4) (1.4) Studies - - 0.9 0.9 (0.9) (0.9) Research grants - - - 50.5 5'.5 (11.6) (11.6) Total 201.7 318.7 12.6 162.1 695.1 61T.8) (11.0i) (0T9) (26.1) (99.8) /a Figures in parentheses are the respective amounts financed by the Bank. W -65- ANNEX 16 Page 1 KOREA PROGRAM FOR SCIENCE AND TECHNOLOGY EDUCATION Selected Documents and Data Available in the Program File A A. Selected Reports and Studies Related to the Sector A.1 Korea: Sector Survey of Science Education, IBRD Report No. 3775-Ko, January 12, 1982 A.2 The Report of the Study on the Development Plan of Korean Science Education, HOE, April 1982 A.3 Loan Application to IBRD for Korea Advanced Institute of Science anc. Technology, KAIST, February 1982, revised in June 1982 A.4 Development Strategies for the Priority SubfieLds, Korea Science and Engineering Foundation, March 1982 A.5 Report of KOSEF on the IBRD Education Project, March 1982 A.6 The Promotion and Development Plan for Science and Technology Education, 1983-1986, MOE A.7 The Proposed Plan for Second IBRD Education Sector Loan, MOE, August 1983 A.8 Content of Loan Applications for Subprojects. A.9 Status of Loan 1800-KO as of December 31, 1983. B. Working Papers B.1 Korea Science and Technology Program, K. Rao, May 1982 * B.2 Korea Science and Technology Program, C. Phelps, April 1982 B.3 KAIST, Proposals for Doctoral Education and Research, 1983-1990, K. Rao, October 1983 B.4 KOSEF, Proposal to IBRD, 1984-88 Grants Program, K. Rao, October 1983 B.5 Secondary Science Education Component, P. Black, October 1983 B.6 Establishment of Basic Science Development Office, P. Black, October 1983 C. Data C.1 Detailed, Investment Program and Cost Tables C.2 Contracts' profile *.nder Loan 1800-KO