School Effectiveness in Developing Countries - A Summary of the Research Evidence

comparable levels of output for fewer inputs, other things equal.....The

output of education refers to that portion of student growth or
development that can reasonably be attributed to specific educational
experiences.

Inputs are conceived in broad terms, to include the complex interactions of students and
teachers, as well as text-books, teachers' salaries, and so forth. Lockheed & Hanushek
restrict the term 'efficiency' to monetary inputs and use 'effectiveness' for non-monetary
inputs. Outputs expressed in non-monetary terms (e.g. learning) are 'internal' and outputs
expressed in monetary terms (e.g. earnings) are 'external'. Hence external efficiency is
equated with a cost-benefit ratio. Unfortunately, the classification is marred by equating
internal effectiveness with 'technical efficiency', and internal efficiency with 'cost-
effectiveness'!

There are obvious difficulties with these definitions. For example, it is arguable as to
exactly what should count as inputs, and how inputs might best be measured, even if all
inputs are measurable. Similar difficulties apply to outputs. However, whatever precise
definitions are adopted, it is clear that there are various policy options for attempting to
improve the output-input ratios, for example

1) achieving existing output levels for cheaper or fewer inputs (e.g. by
selecting low-cost building alternatives)

2) increasing outputs for the same inputs (e.g. by reducing absenteeism)

3) reallocating existing resources to new inputs which increase outputs
(e.g. perhaps by spending less on teacher training and more on textbooks).

It must be kept in mind that efficiency is not the only criterion for policy-makers, who
must take account of a range of social, political, economic and educational
considerations in arriving at judgements as to priorities for objectives and methods of
achieving them. Nevertheless as Lockheed & Hanushek (1988, p21) point out

When there are limited resources - as there always are - those resources
should be used to promote society's objectives as fully as possible.

They identify three important constraints on improving internal efficiency: (a)
inadequate knowledge about internal effectiveness, (b) inadequate knowledge about
costs in inputs, and (c) difficulty in obtaining appropriate information. Evidence on
which to base decision-making is limited by these constraints.

It is noteworthy that, while the World Bank has invested over $10 billion

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