Pre-school education plays an important role in child development and has important effects on the society

1. Let us Open the Door to Equal Opportunities
Study on Investment in Early Child Education in Montenegro
Ivana Prica
Lazar Čolić
Hana Baronijan

2. Importance of pre- school education

3. Importance of pre-school education
3
Confirmation in numerous empirical studies
Pre-school education plays an important role in child development and has important effects on the society
djece
Result of the PISA tests analysis in 34 countries (Pisa in Focus, 2010) show there is a link between attendance of PE and later success and that which is more important:
─when PE includes a wider layer of children
─when PE lasts longer
─when the ratio between the number of children and the number of educators is smaller
─when more resources are invested per child

4. Importance of pre-school education
4
397
411
423
393
408
425
403
422
440
Ne
Da, jedna godina imanje
Da, više od jednegodine
Link between achievement and kindergarten attendance, PISA 2012, Montenegro
Matematika
Nauka
Jezik

5. Return of investment into human capital depending on age
5
Schooling
Pre-school programme
Job training
4-5
Presc
hool
School After completing schooling
Age
Inicijalno postavljene stope povraćaja ulaganja u ljudski kapital jednake po uzrastima
Rate of return of invetsment into human capital
Programmes oriented to earliest age
0-3
Souruce:"The case for investing in young children."(Heckman, 2012)
INVESTMENT INTO LEARNING AT AN EARLY AGE YIELDs A
CONSIDERABLY HIGHER RETURN THEN INVESTMENT LATER IN LIFE
(HECKMAN, 2012)
Importance of preschool education

6. Return of investments into human capital at different ages depending on
social-economic status
6
Level of
return Children from low level
social-economic
environment
Children from low level
social-economic
environment
Early
childhood
Primary and
Second. School
Higher
education
Adult
education
Age
Source:"Efficiency and equity of European education and training policies." (Woessmann, 2008)
Good quality pre-school programmes enable children from
marginalized families to have equal beginning of education
Importance of pre-school education

7. Importance of pre-school education
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In a number of countries there has been achange in the role of PEfrom primary role of keeping children safe to the function of educating children
Montenegro has recognized the importance of pre-school education and upbringing and there is programmebase for extending it
„By 2020 a minimum of 95% of children between the age of4 and the age when obligatory primary education begins should participate in the early education programmes” (Europe 2020)
To provide for all the children in Montenegro, from birth until the time when they start primary school, goodquality services for early development and learning so that they reach their full potential and become active and productive members of the society”
Strategiyof Early Pre-school education and upbringing for the period 2010 to 2015

8. Aim of the Study
Project aim: how to extend services of pre-school education to as many children an possible, especially those coming from vulnerable and marginalized groups
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Study objective: analysis of the pre-school education funding scenarios
Funding scenarios have been analyzed which
–Ensure universal coverage of children by pre-school education (one year before startignschool),
–Ensure gradual increase in coverage bypre-school programmefor children aged 3-5
The Project was initiated by UNICEF Office in Montenegro and the Ministry of Education of Montenegro

9. Ontheotherside,manyparentsinMontenegroarenotfamiliarwiththedevelopmentroleofpre-schoolinstitutions
Children coverage is not high.
On one side it is necessary to familiarize parents through a campaign with the benefits of pre-school education, and on the other to provide conditions for all children to attend pre-school education
¼ of parents think a child is better off at home, without considering the benefits of PE attendance for child development
„Assessment of knowledge, views and behaviour related to the care of children”, UNICEF, 2009, Montenegro
The state of pre-school education in Montenegro
Coverage of children from 0 to 6 years of age:33,2% or15.604of children
Coverage of children 3 to 6 years of age: 52.4% or11.641children
Coverage varies depending on the age of children and the territory
Numerous pre-school institutions operate beyond their capacities: 3.377 or30% of surplus children aged 3-6

10. The state of pre-schooleducation in Montenegro
The relation between the degree of a municipality development and degree of coverage of children by PE, Montenegro, 2012

11. Assessment of costs of introducing pre-school preparatory programme with general coverage

12. Introducing preparatory pre-school programme (PPP)
Recognized importance of pre-school education and long- term benefits of general coverage
Pre-school preparatory programme (PPP)
3 hours per day, 5 days per week and 10 months per year, so that every child has at least 600 hours of PPP per year;
Cover all the children who have:
–One year before starting school in 2015,
–Two years before starting school in 2017, and
–Three years before starting school in 2019;
PPP is free
Provides one meal (light meal)

13. Total costs of pre-school education (PE), 2015-20, EUR
Primary programmes costs
PPP costs for children who do not attend PE
Total costs of PE
Share of PPP in total costs
2015
16.963.657
989.243
17.952.900
6%
2016
16.876.707
1.034.122
17.910.829
6%
2017
16.719.488
2.033.033
18.752.521
11%
2018
16.679.920
1.955.438
18.635.358
10%
2019
16.814.183
3.461.938
20.276.121
17%
2020
16.870.884
3.433.725
20.304.610
17%

14. PE costs and budget expenditures for PE, 2015-20, EUR
PE costs
Budget expenditures for PE (3,8% GDP)
Costs–
budg. expend.
2015
17.952.900
13.209.506
4.743.394
2016
17.910.829
13.525.081
4.385.748
2017
18.752.521
13.879.032
4.873.489
2018
18.635.358
14.257.791
4.377.567
2019
20.276.121
14.646.886
5.629.235
2020
20.304.610
15.046.600
5.258.010

15. Scenarios of funding the remaining costs from compensations paid by parents
Currently parents are paying 40 and 20 Euros per month, i.e. 1,8 and 0,9 Euros per day
Compensation for half a day is always 1/2 of the compensation for full day primary programme
Options:
The same compensation for crèche and kindergarten or higher compensation for crèche in relation to kindergarten
Compensation is not changed during 2015-20 or compensation increases in 2017 and 2019
Compensation is realized 100% or is realized only 80%
Compensation is the same or different per municipalities….

16. Model of different compensations per municipalities:
20% higher in municipalities with a high rate of coverage:
Budva, Tivat, Kotor, Herceg Novi and Cetinje
Average (median) for municipalities with the average rate of coverage:
Podgorica, Kolašin, Danilovgrad, Bar, Pljevljaand Žabljak, Nikšić, Mojkovac, Ulcinjand Plav
20% lower in municipalities with a low rate of coverage:
Bijelo Polje, Berane, Šavnik, Andrijevica, Plužineand Rožaje

17. Scenarios of funding the remaining costs from compensations paid by parents
A.The same price for kindergarten and crèche
B.Different price for kindergarten and crèche
C.Compensation is paid for attendance rate of up to 80%.

18. Scenarios A: The same price for kindergarten and crecheRevenues -expenditures, EUR
A1
A2
A3
A4
2015
741,464
164,110
360,688
60,447
2016
1,062,746
489,220
693,470
394,693
2017
526,600
242,385
164,738
164,738
2018
1,004,718
721,440
649,536
649,536
2019
-202,378
-202,378
-554,515
-256,003
2020
186,850
186,850
-160,244
139,624
A1: 38 Euros per monthA2: 34, 36a 38 Euros per month
A3: median 34 Euros per month
A4: median 32, 34and 36 Euros per month in 2015, 2017 and 2019

19. Scenarios B: Compensation for crèche higher than for kindergartenRevenues-expenditures, EUR
B1
B2
B3
B4
2015
366,778
587,899
572,726
272,486
2016
693,666
912,280
907,628
608,851
2017
163,519
379,284
380,075
344,185
2018
644,441
858,959
866,083
829,992
2019
-566,385
-349,841
-336,730
-110,812
2020
-178,108
39,069
58,763
285,629
B1: 40 full day crèche and 34 kindergratB2: 40 full day crecheand 36 kindergarten
B3: median 40 full day crecheand 34 kidergarten
B4: median for full day creche38, 39and 40, and 32, 34and 36 Euros for kindergarten

20. Scenarios C: 80% of compensation is charged from parentsRevenues -expenditures, EUR
C1
C2
C3
2015
-124,567
568,258
587,899
2016
202,458
890,688
912,280
2017
-326,045
356,071
379,284
2018
154,883
834,751
858,959
2019
-1,059,250
-373,753
-349,841
2020
-672,865
14,907
39,069
C1: 40 Euros per month for full day programme
C2:46 Euros per month for full day programme
C3:50 Euros for full day crèche and 45 Euros for kindergarten

21. Scenarios C: 80% of compensation is charged from parentsRevenues -expenditures, EUR
C4
C5
C6
2015
106,375
540,832
60,447
2016
431,868
872,737
355,002
2017
128,699
342,557
105,464
2018
608,128
826,963
590,393
2019
-373,753
-375,408
-375,408
2020
19,677
19,677
16,534
C4:42, 44 and 46 Euros per month for full day programme
C5:median 44 Euros per month for full day programme
C6: median is 40, 42 and 46 Euros per month for full day programmes in 2015, 2017 and 2019

22. Main findings
In scenario C the rate of collection of 80% causes an increase in the amount of compensation to be paid by parents by around 20%
In general programmes where compensation is changed over the years are more efficient
Of all A scenarios, scenario A4 shows the lowest difference between total revenues and total expenditures, followed by scenario A2
Of all B scenarios, scenario B4 results in the lowest difference between revenues and expenditures and thus is more superior
Of all C scenarios, scenarios C4 and C6 show the lowest degree of aberration of revenues from costs
Besides the above quoted, the choice of the scenario depends also on the compensation to be paid in those scenarios…

23. Municipalities
2015
2017
2019
Compen.per
scenario A2
34
36
38
Compen.per
scenario A4
Higher coverge
38
41
43
Average coverage
32
34
36
Lowcoverage
26
27
29
Compen.per
scenario C4
42
44
46
Compen.per
scenario C6
High coverage
48
50
53
Average coverage
40
42
44
Low coverage
32
34
35
Monthly compensations for full day programmes, EUR

24. Monthly compensations for full day programme in scenario B4, EUR
Minicipalitieswith higher cover.
Minicipalitieswith average cover.
Minicipalitieswith low cover.
2015
creche
46
38
30
kindergar.
38
32
26
2017
creche
47
39
31
kindergar.
41
34
27
2019
creche
48
40
32
kindergar.
43
36
29
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25. Conclusions
The costs of PPP make up 6%-17% of total costs PE
The budget covers 75% of total costs of PE for 2015-2020
The remaining amount would be paid by parents through compensation, in accordance with the proposed scenarios
The amount of compensation in different scenarios varies depending on:
year of programme implementation;
weather crèche or kindergarten is concerned;
weather a municipality with average, lower or higher rate of children converge by PE is concerned, and, the key factor is
rate of collection of compensations by the parents.

26. Conclusions
Scenarios that cover the costs of PE most efficiently are scenarios A2, A4, B4, C4 and C6.
The selection, in ideal case of one of these 5 scenarios, will depend on concrete circumstances and the needs of decision makers:
The basic issue is that of degree of collection of compensations from parents
One of the factors affecting the selection of the scenario is also the amount of compensation paid by parents in different scenarios
At the same time it must be taken into account that degree of realization of compensations from parents has an opposite effect on the general level of compensations to be paid by the parents –the lower the rate of collection the higher the total compensation to be paid by parents.

27. Thank you for your attention!
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