Setting the Scene: A Framework for Setting the Scene: A Framework for Private Donations in Education Private Donations in Education

World Bank, March 31, 2010

Turnarounds

Small class size

Source: National Center for Education Statistics, Digest of Education Statistics 2007

Spending Per Pupil and NAEP Test Scores for 17-Year-Old Students

Source: Dalbar, Inc. 2008. http://www.thedigeratilife.com/blog/index.php/2008/01/03/why-most-investors-dont-make-money-in-the-stock-market/

Returns for the 20 years, 1986-2005

“[Friedrich von] Hayek argued that trial and error, feedback loops, and competition more often surface good solutions to thorny social problems than do officials and experts devising grand fixes from their elevated perch.” –Education Unbound: The Practice and Promise of Greenfield Schooling

It Starts With It Starts With StructureStructure

School Builders Talent Providers Tool Builders

Barriers Quality Talent Money

Restrictiveness of Labor Agreements in 50 Biggest Districts

Flexible10%

Restrictive32%

Ambiguous 58%

Source: Hess & Loup, Leadership Limbo, 2008.

3.3 million3.3 million

10%6 6

million million 500,00500,00

00

7 million

Source: Marguerite Roza, “A Penny Saved” AEI conference, January 11, 2010. 1/11/10 www.aei.org/docLib/Roza%20Panel%20I.pdf.

Cost Equivalent Cut

Teacher salary $4,500 Pay CutPupils Per Class 2 AddedTeacher Aides 1/6 EliminatedPreparation Time Per Week 2.5 Hours Added

FY 2009 Research and Development Budgets

HUMAN CAPITAL

• Teach For America

• New Leaders for

New Schools

• The New Teacher

Project

TOOL BUILDERS

• Wireless

Generation

• SchoolNet

• SMARTHINKING

INVESTORS• NewSchools Venture Fund• Charter School Growth Fund• Knowledge Investment Partners

SCHOOL BUILDERS• KIPP Schools• Green Dot Public Schools

• Achievement First

INFRASTRUCTURE• The Mind Trust• New Schools for New Orleans• High Tech High Ed School

Remove formal and informal barriers to entry

Find and utilize talent in more strategic ways

Boost access to capital for new & growing ventures

Incentivize smarter & more comprehensive quality control

Encourage public-private investment in R&D

• Aim for sustainability, expandability, and cost-efficiency

• Build sufficient resources and agile organizations

• Aggressively seek data

• Lower obstacles for problem solvers

• Foster smart private and public quality control

• Be clear and honest about what change will require

• Invest in research that determines why new ventures are effective

• Invest in infrastructure

• Seek and reward efficiency

Setting the Scene: A Framework for Setting the Scene: A Framework for Private Donations in Education Private Donations in Education

World Bank, March 31, 2010