Financing of On-Line Education Initiatives International Finance Corporation

Financing of On-Line Education Initiatives International Finance Corporation Presentation To World Education Market Lisbon, May 2003 Elia Roumani Principal Investment Officer Health & Education Department eroumani@ifc. org http: //www. ifc. org

IFC Project Screening Business Screen – where project meets commercial objectives – is financially sensible and self-sustainable – and demonstrates role as leader or pioneer Developmental Screen – where project promotes efficiency and innovation – can provide a demonstration effect – may contribute to capacity building – will advance the quality of education – and will complement World Bank Group activities Social Mobility & Poverty Alleviation Screen – enhancing social mobility – promoting educational opportunities to lower income groups & the emerging middle classes – and helping to bridge the digital divide Environmental and Social Screen – compliance with IFC environmental and social standards?

Characteristics of IFC Investments • Project size and scalability • Positive regulatory environment for private investment • Future commercial self-sustainability • Targeting low to middle / or emerging middle classes • Market factors – saleable services that increase access; ‘choice; ’ service unmet demand; enhance educational opportunities • Scaleable & developmental – increasing institutional capacity/ quality/ relevance of programs/ enrollments

Risk Profiling – Some Issues • Regulatory issues – potential for change • Political uncertainty – negative social climate (conflicts; crime; corruption); lack of transparent policies • Economic / Investment climate • Market – under/ over supply; competition; negative demographics; pricing affordability; reputation • Financial / administrational status and capacity • Operational – educational – lack of quality and accreditation systems

“Traditional” Economic Model” Costs Revenues Build the Campus Source: 2000 Dow, Lohnes & Albertson, pllc < Many Years > Renew the Campus

Technology-Medium Economic Model Costs Cost Revenues Start-up Courseware Development < Time > Source: 2000 Dow, Lohnes & Albertson, pllc; IFC (modified) New or Enhanced Courseware

Design / Applications Requirements Teaching & Learning Drive The Use Of Appropriate Technologies ICT–Technical Specification Course Development Course Induction Course Delivery Tutor Support Student Support Assessment & Evaluation Pedagogic Feedback & Review

Key Investment Issues Investment cycles – courseware, 3 to 4 years – I. C. T. infrastructure – reality of access & cost – sensitivity write-offs 2 to 3 years Demand – quick up-take of student numbers – market shortage of business graduates Quality of program – academic delivery & standards – employability and estimated economic return

Technology / Technical Specifications § Sound Technology Plan/Platform § Secure Systems & Back-up § Technical Support; Maintenance & On-going development § Open systems, scaleable – and user friendly software

Courseware Development § Design – collaborative process – students & professorate § Low capital in-house investment – with extensive media background § Sound quality review processes planned § Collaboration of teaching professionals in planning assessment for better learning

Student Orientation § Students – compulsory meeting for 2 days – prior to start § Focus on building self-confidence – program objectives – use of available resources & virtual library – use of templates, applications & tools – accessing course syllabus – use of labs, discussion ‘rooms’ – mentoring & advisory support – seeking technical support – communication – with professors and study teams – self evaluation

Program Delivery & Support § Professional development – adapting to new teaching methods for on-line delivery § Teaching supported by continuous assessment § Student mentoring – strong commitment § Technical support § Regular student contact and feedback (asynchronous) § Clear assessment strategies