Friday, May 29, 2015

Corruption and Its Effect on Educational Institutions in the Middle East


Corruption and Its Effect on Educational Institutions in the Middle East

Introduction

                Over the last three decades, most states throughout the MENA region (the Middle East and North Africa) have increased spending on education, resulting in higher enrollment rates for all genders and social classes at the primary, secondary, and tertiary levels.   However, the quality of educational systems, as measured by international exams, has not improved significantly.  In general, children are spending more time in school, but curricula continue to focus on memorization over critical thinking, and students are not learning the skills necessary to obtain employment in the industrial and service sectors upon graduation.   The MENA region is the only one in the world where college graduates have a higher unemployment rate than the rest of the population.[1]   Why have educational institutions in the region failed to improve despite a significant increase in spending?  This contradicts previous studies on education, which shows that expenditure is usually correlated with improvements in educational quality.
                According to the World Bank, spending on education in the MENA region increased from approximately 12 percent of government expenditure in 1980 to over 20 percent by the beginning of 2009 with most of the extra spending coming in the last two decades. [2]    Teacher’s salaries have increased significantly, and the average length of time students spent in school doubled from 1970 to 2000.  Despite this, classroom sizes have barely changed.  Although the ratio of students to teachers at primary schools decreased from 25.1 in 1990 to 22 in 2010, the same ratio increased at the secondary level from 18.1 to over 20 in the same time period.   To put this number in perspective, the number in first world countries today ranges from 10 to 15 students.   Furthermore, increased spending has not led to a significant increase in the quality of learning.  In 2003, nine out of ten MENA countries who took part in the exams for Trends in International Mathematics and Science Study (TIMSS) placed in the bottom third out of the 45 countries that participated.[3]  Only Israel scored well.  Worse still, many of the test scores in the MENA region declined between 1999 and 2003.  This helps us understand part of the reason why the unemployment rate in the region for the youth (15 to 29 years old) has risen to over twenty five percent in 2010 in comparison with only a rate of 11.4 percent for the rest of the population.[4]  Too many of the youth in the Middle East lack the skills necessary to compete in the global economy.   There are not enough jobs for graduates in the industrial or service sectors as a result.  
It is my contention that economic investment is a necessary but not a sufficient variable to explain ways a government can improve its educational system; it is not only about how much money is spent on education but how public funds are used.   Corruption can significantly hinder the efficiency of a school system, producing graduates that lack the critical skills necessary to perform their chosen profession with competence.  Reducing corruption in the educational system is critical for the future of education in the Middle East, and the only way to achieve this is by increasing political stability, transparency, and accountability in the region. 
In this essay, I will show that there is a correlation between corruption and educational quality through a large N study.  To do this, I compared international test results in the PISA exam with levels of corruption in 30 countries across the globe over the last decade.   This essay will discuss the independent and dependent variables, and how I established a link between the two.  Furthermore, I will discuss various reforms that are necessary to reduce corruption in educational systems.


The Dependent Variable: Educational Quality
                The general quality of an educational system is correlated with the level of economic development in any given country.[5]  In other words, countries with a high GDP per capita and a good score on the Human Development Index generally have quality educational systems.  Although it is difficult to fully understand the causal links between the two given the great difficulty in understanding how new ideas affect human behavior, it doesn’t take a great deal of imagination to understand why education is important.   Countries with citizens that are literate, creative, open minded, well organized, analytical, and well read will have a large pool of workers that can serve as highly qualified bureaucrats, industrial labor, entrepreneurs, academics, and political leaders.  This is simple enough to understand, but how do we quantify the quality of an educational system? 
                One of the more popular methods in the past was to use literacy rates, which measure the general ability of citizens to read and write.  Although literacy rates are one useful way of measuring an output of schools, they tell us little about the overall quality of a student.  A person might be able to read, but they might still lack the critical thinking skills and content knowledge necessary to adapt in today’s industrial economy.   The teaching philosophy of many schools and educators throughout the Middle East still places too much emphasis on memorization and not enough on soft skills like debating, research, and abstract thinking.[6]  Furthermore, there is almost no focus on liberal arts subjects or learning skills that involve physical labor.  In today’s world where technology and society are changing quickly and citizens are expected to have a greater say in governance, it is no longer enough to teach people how to memorize a textbook, so literacy rates cannot tell us about the quality of an educational system.
                Another way to measure educational quality is to look at the average amount of time the average student spends in school.  The United Nations Development Program uses this statistic as one of three variables in their measure of Human Development known as the HDI index.[7]  Enrollment and graduation rates can tell us how many families throughout the country can afford to allow their children to obtain an education instead of putting them to work at an early age.  However, using this statistic by itself is fraught with problems.  Although the average length of time spent in school can give us some useful info on government outputs, it once again doesn’t tell us about the quality of the educational system.  Someone can spend twelve years in school and still lack basic literacy or critical thinking skills.  Overcrowded classrooms, unqualified teachers, a lack of good textbooks, and a corrupt educational system waters down the quality of the degree they receive at the end of high school or college.  Furthermore, this statistic tells us nothing about cultural attitudes towards education or the amount of skills students learn outside the classroom.  Good students are not only produced by schools but by parents who encourage their children to engage in a variety of activities to expand their skill sets. 
                A better way to measure the quality of education in a country is to use international exams that test a variety of critical thinking skills as well as content knowledge in mathematics and science.  One of the most well known international exams is designed by the Program for International Student Assessment (PISA), which is funded by the Organization for Economic Cooperation and Development (OECD).[8]  The first exams were administered in the year 2000 in over sixty countries, and since then, it has been administered every three years.   The test assesses a student’s math, science, and reading skills in three separate sections, and students can earn a score of up to a thousand points each.  Furthermore, questions are written in such a way as to test critical thinking skills. 
Like any other international exam, there are issues with how the test is translated into different languages and administered in different countries.[9]  Cultural and geopolitical differences throughout the globe make administering a single exam a complex challenge.  Some countries are not eligible for the test because they lack the security or the educational infrastructure necessary for the OECD to administer it.  Most countries in Sub-Saharan Africa are noticeably absent from the statistics.  Furthermore, this method of evaluation penalizes students who don’t have great test taking skills but might otherwise be well educated.
However, this test is one of the few methods we have of assessing the quality of education in many countries across the globe.   Exams remain the best option for evaluating students in general.  Therefore, I measured my dependent variable, the quality of education, using each country’s PISA exam results from 2000 to 2012.

The Independent Variable: Corruption
                Corruption is an even more difficult variable to define, study, and measure.  Those engaging in most forms of corruption try to keep their activities hidden from the public eye after all.   However, there are ways to measure the causes and effects of corruption, and much has been written in the last two and a half decades on the subject by writers such as David Chapman, Bertram Spector, and Arvind Jain.  These political scientists generally define corruption as the misuse of public office for personal gain.[10]  When political leaders misuse the powers of their office for the benefit of a client in exchange for favors or bribes, this is known as grand corruption.  This kind of misuse of public office often involves the manipulation of law codes and the misappropriation of public goods on a large scale.   However, most forms of corruption are petty; this involves bureaucrats who accept small bribes in exchange for special favors.   Sometimes, bureaucrats may also refuse to perform the basic tasks of their job unless they are compensated by the client.   
Although political scientists agree on this basic definition, there are some disagreements over what exactly constitutes the misuse of public office.[11]  Is a bureaucrat with a very low salary misusing his power when he accepts a small bribe in exchange for ignoring an illogical law?  Is a politician that receives legal campaign financing from a teacher’s union engaging in corruption if he writes laws that provide higher salaries and benefits for public school employees?   It is not always easy to define what misusing public office means. 
It is also difficult to assess the effects of corruption.  Political scientists who study the subject seem to agree that in most instances, corruption is negatively correlated with economic development as it produces severe inefficiencies within government bureaucracies, making it more costly and time consuming for the state to perform basic tasks.[12]  Sometimes, the inefficiencies become so overwhelming that bureaucracies perform no service at all for their country.  Although some petty forms of corruption may help create more efficiency in the short term by allowing clients to get around illogical laws, in the long term, all forms of corruption create structural costs.  If various forms of petty corruption are prevalent in a system, it means that there is a lack of the rule of law, and this can lead to severe repercussions in terms of governance and the loss of wealth.  The American non-governmental organization Global Financial Integrity estimates that 151 developing nations lost 991 billion dollars from corruption alone in 2012.[13] However, despite the fact that political scientists agree that corruption is costly, assessing the total economic costs of corruption is not easy.
                Part of the reason why is that it is difficult to measure.  It is impossible to study it directly in most instances.  Instead, international organizations have to study general perceptions of corruption.  Various international organizations, including Transparency International and the World Bank, have developed different ways to do this.[14]    
For this paper, I used Transparency International’s Corruption Perception Index, which aggregates data from thirteen separate surveys distributed to businessmen, government employees, NGO workers, policy experts, and average citizens within each country.  States are scored on a scale of zero to one hundred, with zero being the most corrupt.  Some of the information these surveys gather is on a country’s judicial system, legislative process, regulatory institutions, law enforcement agencies, electoral systems, and law codes.[15]  Based on the answers, we can learn about the government’s capacity to create and enforce effective laws in a transparent and unbiased manner.  The rule of law is critical for insuring good governance.  Furthermore, many of the survey questions ask people about their attitudes towards corruption and whether or not they have engaged in bribery.   A country that is generally more tolerant of corruption and ignorant of its social costs is likely to have a lot of political officials that think in the same manner.   Lastly, surveys are given to evaluate the degree of political freedom and civil liberties in the country.  Countries that have competitive elections, a free media, and an active civil society are less likely to have problems with corruption since there is more political accountability in the system.  Of course, there are problems with using this survey method.  Most of these questionnaires don’t directly study corruption itself but its underlying causes and effects as well as perceptions of corruption within the culture.   Given that it is impossible to directly study the phenomenon, using statistics like Transparency International’s CPI Index is one of the few options available.

Corruption in Educational Systems
                It is important to clarify what the misuse of public office means in the educational system and how we can measure it.   Corruption in the educational system can come from one of the following four places: (1) government officials in the ministry of education, (2) school administrators, (3) teachers, and (4) students.[16]   Corrupt government officials in the ministry of education can abuse their power by giving accreditation to underperforming schools in exchange for bribes; misappropriating tax funds meant for schools for personal gain; and distributing jobs in schools to loyal clients.  This form of grand corruption is hardest to assess as it is the least visible to the public eye.  School administrators can misuse the powers of their office by hiring unqualified teachers as a personal favor; accepting bribes from students in exchange for giving them good grades when they were not earned; and misappropriating the school’s financial resources for their own private benefit.  Teachers can misuse their power by accepting bribes from students in exchange for good grades or refusing to teach during class time so as to force students to pay for private lessons after school.   Students and parents can engage in corruption through cheating on exams and paying off school officials for better grades and preferential treatment.
                The effects of corruption in school systems are difficult to measure but clearly have an effect on economic development.   One negative consequence of educational corruption is that many students will graduate from high school or college with degrees that they did not earn.  Having too many doctors and engineers that are unqualified can be dangerous for society.   Furthermore, corruption in educational systems creates problems for employers.  In a country with quality universities, employers can have greater trust in the qualifications of a candidate if they came from a school with a good reputation.  However, if a country has no high schools or universities that can guarantee a quality education, employers are forced to rely on personal connections to hire employees instead of qualifications.  This can create problems for students who actually worked hard but had problems finding a job after graduation because of the lack of connections.   
                Unfortunately, there is no standard index that measures corruption in educational systems throughout the globe.  The corruption perception surveys of Transparency International and the World Bank focus more heavily on understanding regulatory institutions and the judicial system in their questionnaires, and there is less emphasis on understanding the affects of corruption within education.   The reason why is that they consider the rule of law to be a critical factor in reducing corruption.  Without an independent judicial system, corruption will thrive.  However, I argue that the same is true in the absence of an educational system.  Good schools can provide bureaucracies with quality workers that will be more driven to perform their jobs properly.
A few political scientists have tried to measure the level of corruption within schools and assess the consequences.  To measure corruption within Russia’s educational system, Stephen Heyneman, Kathryn H. Anderson, and Nazym Nuraliyeva distributed surveys to schools throughout the country to students, asking them questions on their perceptions of corruption in their school, their attitudes towards it, and how often they have cheated.[17]  Data was than aggregated, and schools were ranked based on their levels of corruption.  The authors found that there is a negative correlation between the level of corruption in a school and the average earnings of the students after graduation.   As corruption goes up, salaries went down.
More studies like this are needed to differentiate between levels of corruption within a country in general and specifically within educational institutions.  It is often true that corruption in institutions like the judiciary or the legislature will spill over into road construction, schools, hospitals, and other governmental institutions.   However, some countries have successfully shielded their educational institutions from corruption, even as it thrives elsewhere.  For example, in South Korea, corruption is rife between politicians and big businesses, but the government has successfully insolated its educational system from these problems.[18]  Even though South Korea has a moderately high level of corruption for a developed country, its educational institutions are some of the best in the world.  In this essay, I am using the CPI index with the assumption that countries that have general problems with corruption also have issues with it in their educational system.  Although this is true most of the time, there are many exceptions to the rule.  Corruption can be contained by governments under certain circumstances.

Showing a Correlation between Corruption and Educational Quality
                In order to prove the existence of a correlation between corruption and educational quality throughout the globe, I decided to do a big N study involving thirty states.  Each country was chosen based on one of three factors:
1) They participated in the PISA exam from 2000 to 2012
2) They are nations with significant population sizes
3) The exam was distributed throughout the entire country. 

Island nations were left out of the study.  Furthermore, states like China that only allowed the exam to be distributed in individual provinces were also left out to prevent the corruption of the data.  It is also important to note that only five Middle East countries have participated in this exam.  However, the point of this study was to prove the general existence of a correlation between corruption and educational quality, and to apply the results to our understanding of corruption in the Middle East.  After choosing the thirty countries, I added up and averaged their PISA test scores and CPI indexes from 2000 to 2012.
Upon uploading the data on an SPSS and comparing the two variables, I found that a very strong correlation exists between the two.  The Pearson Correlation number is .647.  What this means is that as the Corruption Perception Index score goes up, test scores generally go up as well.   The tables below show the results:
Country
Average CPI Index: 2000-2012
Average PISA Test Score: 2000-2012
Spending on Education per capita 2011
GDP Per Capita
2011
Spending On
Education Per Capita
S. Korea
4.94
541.33
.052
24,156
1256.11
Finland
9.47
542.13
.068
50,791
3453.79
 Japan
7.32
533.73
.038
46,204
1755.75
Canada
8.72
527.27
.054
51,791
2796.71
Australia
8.65
521.07
.051
62,134
3168.83
Germany
7.84
503.20
.051
45,871
2339.42
Slovenia
6.11
499.00
.057
24,965
1423.01
France
6.97
500.60
.057
43,810
2497.17
Poland
4.37
498.87
.052
13,680
711.36
United Kingdom
8.22
508.00
.062
40,972
2540.26
United States
7.42
491.63
.054
49,803
2689.36
Russia
2.42
469.47
.041
13,324
546.28
Greece
4.17
465.87
.041
25,964
1064.52
Croatia
3.90
478.44
.043
14,540
625.22
Israel
6.40
454.08
.056
33,276
1863.46
Turkey
3.91
445.17
.029
10,605
307.55
Serbia
3.28
435.33
.048
6,423
308.30
Uruguay
6.02
423.17
.045
13,961
628.25
UAE
6.17
435.67
.063
38,930
2452.59
Mexico
3.42
410.60
.052
9,803
509.76
Brazil
3.78
387.73
.037
12,576
465.31
Kazakhstan
2.55
407.50
.028
11,358
318.02
Malaysia
4.87
413.17
.059
10,068
594.01
Argentina
2.97
393.75
.063
13,694
862.72
Jordan
4.90
400.89
.035
4,666
163.31
Columbia
3.65
390.78
.044
7,125
313.50
Tunisia
4.59
384.67
.062
4,305
266.91
Indonesia
2.36
383.60
.030
3,470
104.10
Qatar
6.48
360.67
.025
88,861
2221.53
Peru
3.69
353.44
.025
5,759
143.98


Correlations Between PISA Exam and CPI

Exam Results 2000 to 2012
Average CPI
Exam Results 2000 to 2012
Pearson Correlation
1
.647**
Sig. (2-tailed)

.000
N
30
30
Average CPI
Pearson Correlation
.647**
1
Sig. (2-tailed)
.000

N
30
30
**. Correlation is significant at the 0.01 level (2-tailed).

Mean
Std. Deviation
N

Exam Results 2000 to 2012
452.0274
57.62323
30

AverageCPI
5.3186
2.06168
30


What I also found is that corruption is a necessary but not a sufficient variable to explain educational quality.  Some countries with relatively low levels of corruption did not have high scores.  For example, although Qatar and the United Arab Emirates have a relatively low CPI index and both countries spend a significant amount of money on education, their test scores were low.  This might be explained by the fact that both countries are rentier states with an enormous amount of oil wealth and a small population.  Citizens are guaranteed significantly high incomes as adults regardless of skills or qualifications, so there might be a lack of motivation for many individuals to take their studies seriously. 
Furthermore, there are other variables that help explain educational performance like spending on education per capita.  After comparing spending on education with the PISA test scores, the SPSS produced a Pearson correlation number of .659, which indicates a positive correlation between the two variables.  Although Jordan, Tunisia, South Korea, Poland, and Greece all have relatively similar levels of corruption, the later three spend significantly greater amounts of money on education.  In the case of South Korea, they spend five times more than Jordan on their educational system.  Whereas Jordan’s PISA scores were low, South Korea had the best average score in the world over the last twelve years.  

Correlations between Pisa Exams and Spending

Exam Results 2000 to 2012
Spending on Education Per Capita
Exam Results 2000 to 2012
Pearson Correlation
1
.659**
Sig. (2-tailed)

.000
N
30
30
Spending on Education Per Capita
Pearson Correlation
.659**
1
Sig. (2-tailed)
.000

N
30
30
**. Correlation is significant at the 0.01 level (2-tailed).

Descriptive Statistics

Mean
Std. Deviation
N
Exam Results 2000 to 2012
452.0274
57.62323
30
SpendingEducationPerPerson
1279.7032
1050.13112
30

There were also some other fascinating results that were not expected.  Countries in Eastern Europe like Russia and Poland that have relatively high rates of corruption in comparison with the West and relatively low levels of spending on education performed decently on the exams.   The same is true of countries in East Asia.   I do not have an explanation for this anomaly and more study needs to be done to understand why this was the result.  It may be the case that educational institutions in some of these countries are insulated.  It is also possible that these countries might also have a significant demographics issue where the number of old people outnumber the number of you people, which might explain some of the low spending on education per capita.  There also might be long term historical or cultural explanations for this phenomenon.   
However, despite these anomalies, what the numbers show is that there is a general correlation between the quality of educational institutions and the levels of corruption.  Spending alone is not enough to increase the quality of education.  More efforts are needed to reduce corruption within educational institutions specifically and within the entire government in general.  Reducing corruption also requires more than institutional reforms and public awareness campaigns. Countries suffering from corruption usually also have problems with economic and political stability.  Corruption does not exist in a vacuum; it is interconnected with other economic, political, and social problems.[19]   



Work Cited Page
1. Ahmad, Eatzaz, Muhammad Aman Ullah, and Muhammad Irfanullah Arfeen.  "Does Corruption Affect Economic Growth," Latin American Journal of Economics, Vol. 49, No. 2, November, 2012: pg 277-305. 

2.  Chapman, David.  “Education Quality in the Middle East,” International Review of Education, Vol. 55, No. 4.  July, 2009.

3. Heyneman, Stephen, Kathryn H. Anderson, and Nazym Nuraliyeva.  "The Cost of Corruption in Higher Education," Comparative Education Review, Vol. 52, No. 1, February, 2008.

4.  “Human Development Report, 2013: The Rise of the South, Human Progress in a Diverse World,” United Nations Development Program: New York, 2013. 

5.  “Is Transparency International’s Measure of Corruption Still Valid?,” www.theguardian.com, December 3rd, 2013.

6. Jain, Arvind.  “Corruption: A Review,” Journal of Economic Surveys, Vol. 15, No.1, 2001: pg 71-121.

7. Kornai, Janos, Laszlo Matyas, and Gerard Roland, eds.  Corruption, Development, and Institutional Design.  Palgrave Macmillan: New York, 2009.

8. Lambsdorf, Graf.  The Institutional Economics of Corruption and Reform.  Cambridge University Press: Great Britain, 2008.

9. “Organization for Economic Cooperation and Development: Key Findings, 2000-2012,” www.oecd.org, September, 2014. 

10. “Public Spending on Education: 1980-2014,” The World Bank, http://data.worldbank.org/indicator/SE.XPD.TOTL.GD.ZS?page=1, 2014.

10. Spector, Bertram.  Detecting Corruption In Developing Countries: Identifying Causes/Strategies for Action.  Kumarian Press: United States, 2012.

11. Stewart, William.  “Is PISA Fundamentally Flawed?,” www.tes.co.uk, September 16th, 2014.
12. “Transparency International: Global Perceptions Index 2013,” http://www.transparency.org/cpi2013/results, 2014. 

13. Waldner, David.  State Building and Late Development.  Cornell University Press: New York, 1999.
14. Yadav, Vineeta.  Political Parties, Business Groups, and Corruption in Developing Countries.  Oxford University Press: Oxford, 2011.






[1] “Human Development Report, 2013: The Rise of the South, Human Progress in a Diverse World,” United Nations Development Program: New York, 2013. 
[2] “Public Spending on Education: 1980-2014,” The World Bank, http://data.worldbank.org/indicator/SE.XPD.TOTL.GD.ZS?page=1, 2014.
[3] Chapman, David.  “Education Quality in the Middle East,” International Review of Education, vol. 55, no. 4.  July, 2009.
[4] “Human Development Report, 2013: The Rise of the South, Human Progress in a Diverse World,” United Nations Development Program: New York, 2013. 
[5] Heyneman, Stephen, Kathryn H. Anderson, and Nazym Nuraliyeva.  "The Cost of Corruption in Higher Education," Comparative Education Review, Vol. 52, No. 1, February, 2008.
[6] Chapman, Ibid
[7] “Human Development Report, 2013: The Rise of the South, Human Progress in a Diverse World,” United Nations Development Program: New York, 2013. 
[8] “Organization for Economic Cooperation and Development: Key Findings, 2000-2012,” www.oecd.org, September, 2014. 
[9] “Is Transparency International’s Measure of Corruption Still Valid?,” www.theguardian.com, December 3rd, 2013.
[10] Chapman, David.  “Education Quality in the Middle East,” International Review of Education, Vol. 55, No. 4.  July, 2009; Jain, Arvind.  “Corruption: A Review,” Journal of Economic Surveys, Vol. 15, No.1, 2001: pg 71-121; and Spector, Bertram.  Detecting Corruption In Developing Countries: Identifying Causes/Strategies for Action.  Kumarian Press: United States, 2012.
[11] Lambsdorf, Graf.  The Institutional Economics of Corruption and Reform.  Cambridge University Press: Great Britain, 2008.
[12] Ahmad, Eatzaz, Muhammad Aman Ullah, and Muhammad Irfanullah Arfeen.  "Does Corruption Affect Economic Growth," Latin American Journal of Economics, Vol. 49, No. 2, November, 2012: pg 277-305
[13] “Developing nations lose one trillion a year in dirty money,” Reuters, http://in.reuters.com/article/2014/12/16/funds-global-illicit-idINKBN0JT2JE20141216, December 16th, 2014. 
[14] “Transparency International: Global Perceptions Index 2013,” http://www.transparency.org/cpi2013/results, 2014; and “Human Development Report, 2013: The Rise of the South, Human Progress in a Diverse World,” United Nations Development Program: New York, 2013.
[15] Spector, Ibid. 
[16] Heyneman, Stephen, Kathryn H. Anderson, and Nazym Nuraliyeva.  "The Cost of Corruption in Higher Education," Comparative Education Review, Vol. 52, No. 1, February, 2008.
[17] Heyneman, Ibid.
[18] Waldner, David.  State Building and Late Development.  Cornell University Press: New York, 1999.
[19] Spector, Ibid.  

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