Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No.: 18065

IMPLEMENTATION COMPLETION REPORT

REPUBLIC OF GHANA

LITERACY AND FUNCTIONAL SKILLS PROJECT(Cr. 2349-GH)

June 24, 1998

Human Development 3Africa Region

This document has a restricted distribution and may be used by recipients only in theperformance of their official duties. Its contents may not otherwise be disclosed withoutWorld Bank authorization.

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CURRENCY EQUIVALENTS(December 5, 1997)

Currency Unit = CediUS$1.00 - Cedi 1,937.38SDR1 US$1.44US$1 = SDR.69

WEIGHTS AND MEASURESMetric System

FISCAL YEAR OF BORROWER LITERACY CYCLE

January - December October to September (2 year cycle)

ABBREVIATIONS AND ACRONYMS

BIA Beneficiary Impact AssessmentDFID Department for International DevelopmentGBC Ghana Broadcasting CorporationGBPA Ghana Book Publishers AssociationGILLBT Ghana Institute of Linguistics, Literacy, and Bible TranslationGLSS Ghana Living Standards SurveyGNAT Ghana National Association of TeachersICR Implementation Completion ReportIDA International Development AssociationIGA Income-Generation ActivitiesJSS Junior Secondary SchoolLFSP Literacy and Functional Skills ProjectMOE Ministry of EducationMTR Mid-term reviewNBSSI National Bureau of Small-Scale IndustriesNFED Non-Formal Education DivisionNGO Non-governmental organizationNOK Norwegian KronerNSS National Service SecretariatNuffic/CESO Netherlands Organization for International Co-operation in Higher

Education/Center for the Study of Education in Developing CountriesODA Overseas Development OrganisationPMU Project Management UnitRAC Research Advisory CouncilSDR Standard Drawing RightsSSS Senior Secondary SchoolUNICEF United Nations Children's Fund

|[Vice Peident: Jean-Louis Sarbib (AFR)|Country Director: Peter Harrold (AFC10O)Sector Manager: Helena Ribe (AFTH3)Task Team Leader: Irene Xenakis (AFTH3 )

FOR OFFICLAL USE ONLY

REPUBLIC OF GHANA

LITERACY AND FUNCTIONAL SKILLS PROJECT

IMPLEMENTATION COMPLETION REPORT(Cr. 2349-GH)

TABLE OF CONTENTS

PREFACEEVALUATION SUMMARY ...................................................................... I

INTRODUCTION ....................................................................... 1

A. THE WORLD BANK'S SUPPORT FOR LITERACY .................................................................... I

B. OBJECTIVES OF THE LITERACY AND FUNCTIONAL SKILLS PROJECT ............................................................... 2

PROJECT OBJECTIVES ...................................................................... 6

A. PROJECT OUTCOMES AND IMPLEMENTATION EXPERIENCE ..................................................................... 6B. PROJECT DESCRiPTION AND COMPONENTS .................................................................... 6

I LEMENTATION EXPERIENCE AND RESULTS ...................................................................... 10

A. ASSESSMENT OF PROJECT'S SUCCESS AND SUSTANABILITY .................................................................... 10

SUMMARY OF FINDINGS, FUTURE OPERATIONS AND KEY LESSONS LEARNED ............... 12

A. IMPORTANT FINDINGS OF PROJECT IMPLEMENTATION EXPERIENCE .......................................................... 12

STATISTICAL ANNEXES

Table 1: Summary of AssessmentsTable 2: Related Bank Loans/CreditsTable 3: Project Timetable --Table 4: Loan/Credit Disbursements: Cumulative Estimated and ActualTable 5: Key Indicators for Project ImplementationTable 6: Studies Included in the ProjectTable 7A: Project CostsTable 7B: Project FinancingTable 8: Status of Legal CovenantsTable 9: Bank Resources: Staff InputsTable 10: Bank Resources: Missions

Appendices: A. Mission's aide-memoireB. Summary of Borrower's contribution to the ICR

This document has a restricted distribution and may be used by recipients only in theperformance of their official duties. Its contents may not otherwise be disclosed withoutWorld Bank authorization.

REPUBLIC OF GHANA

LITERACY AND FUNCTIONAL SKILLS PROJECT

IMPLEMENTATION COMPLETION REPORT(Cr. 2349-GH)

PREFACE

This is the Implementation Completion Report for the Literacy and Functional SkillsProject in Ghana, for which Credit 2349-GH in the amount of SDR 12.4 million (equivalent toUS$ 17.4 million) was approved on March 26, 1992, signed on April 22, 1992, and becameeffective on July 21, 1992. The project was further supported by a grant from the Kingdom ofNorway of 20 million NOK (equivalent to US$ 2.9 million), which was administered by TheWorld Bank.

Tlhe Credit was originally scheduled to close on June 30, 1995. However in practice,the Credit was closed on December 31, 1997 after being extended twice, first from June 30, 1995to December 31, 1996, and then from December 31, 1996 to December 31, 1997. The lastdisbursement took place on April 29, 1998. A total undisbursed balance of SDR 951,086 of theCredit and NOK 1,482,484 of the Norwegian grant, were canceled upon closure.

This Implementation Completion Report was prepared by Ms. Margaret Kilo and Mr.John Elder of the Human Development Group Three (AFTH3) of the Africa Region, with thetechnical support of Mrs. Betty Casely-Hayford. It was reviewed by Mrs. Irene Xenakis (SeniorImplementation Specialist, AFTH3), Ms. Janet Leno (Senior Education Specialist, AFMGH), andMrs. Helena Ribe (Sector Manager, AFTH3). The Government of Ghana contributed to thepreparation of the report by providing relevant data, and by preparing its own evaluation of theproject (see Appendix B).

The preparation of the ICR begun during the Bank's completion mission in October1997. The draft ICR was discussed as part of a consultative workshop which took place inAccra, Ghana, from April 27 to May 1, 1998. The main objective of the workshop was tointegrate lessons learned from this operation into the subsequent phase of Bank's support for theGhana Literacy Programme. The ICR is based on the Bank's Staff Appraisal Report, theDevelopment Credit Agreement, project supervision reports, and correspondence between theBank and the Government of Ghana. Findings from monitoring visits by World Bank staff,several learner assessments (carried out by NFED), a qualitative Beneficiary Impact Assessment(BIA), and other relevant reports prepared by the Government of Ghana, have been integratedinto the ICR. A copy of the BIA is available from the Africa Information Service Center.

IMPLEMENTATION COMPLETION REPORTLITERACY AND FUNCTIONAL SKILLS PROJECT

(Cr. 2349-GH)

EVALUATION SUMMARY

Bank's Role in the Sector

1. Between fiscal year 1970 and fiscal year 1990, one-fifth of the World Bank's projectsin low-income countries contained a literacy element, but these elements accounted for only Ipercent of total project costs. A study by the World Bank's Operations and EvaluationDepartment (OED) shows that, from fiscal year 1963 to fiscal year 1990, approximately 11percent of the funding for all Bank-supported education projects was spent on non-formaleducation.

2. In Ghana, the World Bank and the Government of Ghana have completed five projectsin the education sector, including the Literacy and Functional Skills Project (Cr. 2349-GH), sincethe establishment of the Economic Recovery Program in the mid-80s. Four education projectsare currently being implemented: (i) the Tertiary Education Project (Cr. 2428-GH); (ii) thePrimary School Development Project (Cr. 2508-GH); (iii) the Vocational Skills and InformalSector Project (Cr. 2695-GH); and (iv), the Basic Education Sector Improvement Program (Cr.2885-GH). Two education operations have been proposed in the sectoral lending program:Functional Literacy II and the Post-Basic Education Project.

Description of the Literacy and Functional Skills Project

3. The Literacy and Functional Skills Project (Cr. 2349-GH) was the first stand-alone non-formal education project supported by IDA in the Africa Region. It was designed to assist theNational Functional Literacy Programme,which the government initiated in 1990 after the 1989census showed that the level of illiteracy among Ghanaians aged 15 and over was as high as 67percent.

4. The project was reviewed by the World Bank's Board on March 26, 1992, was signedon April 22, 1992, and became effective on July 21, 1992 with a projected closing date of June30, 1995. During the Bank's Mid-term Review of the project in April 1994, severaladministrative and pedagogical changes were made that greatly improved the implementation ofthe project and made the achievement of project objectives more likely. The closing date of theproject was extended twice (from June 30, 1995 to December 31, 1996 and then to December 31,1997) to allow for the strengthening of the NFED's management capacity and theimplementation of specific activities. The project finally closed on December 31, 1997.

5. A follow-up operation, Functional Literacy II, is scheduled for fiscal year 1999. Theimplementation of this project will benefit considerably from the experience of the first project.Demand for literacy services in Ghana is clearly high, and research undertaken during the firstproject can be used to tailor the content and timing of literacy courses to this demand.

Objectives of the Project

6. The overarching objective of the Literacy and Functional Skills Project (LFSP) was toimprove the quality of life of the poorest Ghanaians, especially those in rural areas, by equippingthem with basic literacy and numeracy skills and new knowledge. The government hoped thatthe LFSP would bring about a dramatic reduction in illiteracy in Ghana within a decade. Inparticular, the project stressed the need to make learners "functionally" literate, in other words, tobe able to apply their new skills in practice in their daily lives. The project's specific objectiveswere:

* To strengthen the institutional capacity of the Non-formal Education Division (which wasestablished in 1986 under the Ministry of Education to coordinate all non-formal educationactivities in Ghana) to manage the entire literacy program effectively

* To ensure that all of the aspects of the program were subject to frequent evaluation andmonitoring and that research and evaluation were key inputs in the development of any newinitiatives

* To improve the existing literacy program so that a large proportion of the 840,000 adults whowould be allowed to participate would become functionally literate

* To ensure that all new literates, whether from the school system or from the literacy program,had access to a range of reading materials in the Ghanaian languages

* To expand the coverage of the FM broadcasting system to support the functional literacyprogram and to increase the frequency of educational broadcasting in the Ghanaianlanguages.

Components of the Project

7. The project contained the following elements: (i) institutional support; (ii) research,monitoring and evaluation; (iii) classroom teaching; (iv) a system of supervisors to monitor theattendance and progress of learners and the performance of the facilitators; (v) classroommaterials and learner motivation; (vi) the creation of a literate environment; (vii) radio studio andtransmission facilities; (viii) post-literacy classes; and, (ix) assisting NGOs and other literacyproviders with training and materials.

Credit Covenants and Special Agreements

8. Credit covenants were primarily in the areas disbursement and procurement. TheGovernment of Ghana complied with the terms of all of these covenants (see Part II, Table 8).The NFED also entered into special arrangements with: (i) the National Bureau of Small-scaleIndustries (NBSSI) to oversee the income generation activities of the project; (ii) the GhanaBook Publishers Association (GBPA) to produce reading materials in 15 Ghanaian languages;(iii) the Ghana Broadcasting Corporation (GBC) to provide air time to the project in its Tamaleand Ho studios; (iv) the New Times Corporation for printing and distributing to the literacy

classes community newspapers in the 12 languages of the southern sector; and (v) the GonjaLiteracy Project and the Ghana Institute of Linguistics, Literacy, and Bible Translation (GILLBT)for printing and distributing to the literacy classes community newspapers in the northern sector.

IMPLEMENTATION EXPERIENCE AND RESULTS.

Costs and Financing Arrangements

9. From its onset, the LFSP was supported by the IDA Credit and an IDA-administeredgrant from the Kingdom of Norway. The Literacy Programme had greatly benefited from theinvolvement of the British Department for International Development (DFID), formerly knownas the Overseas Development Agency. Also, UNICEF initially provided funding for the trainingof trainers but gradually phased this out.

10. It was estimated at the time of appraisal that it would cost US$30.9 million, withfinancing coming from IDA (US$17.4 million), the Kingdom of Norway (US$2.9 million),UNICEF (US$0.6 million), and the Government of Ghana (US$ 10 million). The DFIDparticipated in the project, contributing some of its support by providing resident technicalassistance to the NFED. Because of the depreciation of the Cedi and various implementationissues, the actual project cost only US$ 27.4 million or 90 percent of total estimated cost.

Project Results and Outcomes

H1. The overarching objective of the project was to improve the quality of life of thepoorest Ghanaians by providing literacy training. This was vital because poverty and illiteracyare closely linked in Ghana. The more specific project objectives were pertinent to the country'sneeds but were somewhat ambitious given the weak capacity of the NFED and the large numberof people who were expected to participate in the project's literacy classes.

12. Nevertheless, the objective of providing literacy training to 840,000 learners was notonly attained but even surpassed, partly as a result of the project being extended twice. About1,373,571 learners enrolled (as of December 1997), of whom 726,714 (as of June 1997) hadcompleted the training. The two learner assessments undertaken in the last two years of theproject demonstrated that many learners succeeded in acquiring literacy and numeracy skills,with scores in reading being significantly higher than in writing. The level of illiteracy found inthe 1987 census was 67 percent of the population over the age of 15. The most recent data showthat this has dropped to 51 percent. Much of this decline is due to the people who completed theliteracy courses under the LFSP.

13. The low drop-out rates for learners (about 22 percent) and high retention rates for thevolunteer facilitators (over 85 percent), often a problem in literacy programs, indicate that therewas a strong demand for literacy, and that the learners and facilitators were highly motivated.Implementation of the project was helped by very high demand for literacy, particularly among

iv

the 25 to 44 age group. This provided a large pool of people motivated to take the courses over afairly long period. Qualitative research indicates a variety of reasons for attending literacyclasses including the desire to avoid being cheated in financial transactions, the need to readinstructions on agro-chemical packages, the belief that literacy was a prerequisite for improvedsocial status, the desire to send and receive mail without assistance and the need to keep accurateaccounts.

14. The project was in many ways self-targeting, since only illiterates would be interestedin participating and most illiterates were poor. It helped to counter regional disparities in accessto basic education, as 67 percent of the learners were from the northern sector compared to only17 percent from the Greater Accra area. Sixty percent of the learners were women, and 70percent of them had had no formal schooling before starting the courses provided by the project.

15. On the monitoring visits it became clear that learners are demonstrating their increasedappreciation for education by enrolling their children in primary school, thereby expandingenrollments at that level. The Beneficiary Impact Assessment mentioned that there has been anincrease in self-esteem among learners and an increase in awareness of the choices available tothem in such areas as family planning, health and hygiene, agricultural practices, preservation ofthe environment, and civic awareness.

Implementation Experience

16. A critical factor in the success of the project was the fact that it was possible to find,recruit, and retain a large number of dedicated volunteer teachers (facilitators), many of whomtaught throughout several consecutive courses even without receiving the promised incentives.Another important factor was that the project received high-level political support, as well asparticipation and support at the grassroots level from local communities.

17. However, the management capacity of the NFED itself was weak. Managers changedfrequently, and at times there was no identifiable leader of the institution. Initially, thecomplexity of the project meant that those at the NFED who were charged with implementing itfailed to understand it fully. The working relationship between NFED staff and the staff of theProject Management Unit (PMU), which had been established under a different Bank project tohandle procurement matters, was also a problem during most of the early stages ofimplementation. The institution of regular meetings of a Project Implementation Committeeimproved implementation. However, the Government of Ghana was slow in making available itsmatching funds, which often hampered the progress of the project activities.

18. While the literacy teaching itself was able to continue despite institutional weaknesses,important activities such as research, monitoring and evaluation, supervision, and the delivery ofsupplies suffered due to the weak in-house capacity of the NFED. Project managers securedsome technical assistance to improve monitoring and evaluation late in the project. Forwardplanning for the training of supervisors and facilitators was uneven, but improved during the lasttwo years of the project. The production of classroom materials was delayed several timesbecause no one was willing to make relatively minor small decisions. Several key managementproblems were resolved in the last two years of the project, which resulted in a concomitantimprovement in the performance of the project.

v

19. The project was not very successful in printing and distributing reading materials inlocal languages in order to establish a literate environment for learners, although it did succeed inensuring that the content of the literacy lessons was tailored to the practical needs of the learners.The BIA reported that the radio component was successful, and this will be evaluated in detailduring the preparation of the subsequent project. The project's scheme to provide small loans togroups of learners who wished to start an income-generating activity initially benefited about 76groups. The impact of this component will also be evaluated as part of the preparation of the nextproject.

20. Project planners underestimated the difficulties that would be involved for the NFED incollaborating with other institutions, such as the GBC, the GBPA, the NBSSI, the universities,and the New Times Corporation. These difficulties initially slowed down some of the projectactivities (such as the dissemination of books in local languages, some income-generatingactivities, and applied research). However, it is not clear that this should have been evident at thetime of appraisal.

21. The emphasis put on establishing a strong monitoring and evaluation system was basedon the experience of other literacy programs, but the capacity of the NFED to carry out thenecessary work was overestimated. The monitoring and evaluation system improved during thecourse of the project, although the original plan to introduce a decentralized research system wasnot realized. The major restructuring of the monitoring and evaluation component occurred nearthe end of the project and, thus, could not be evaluated.

The Performance of the Bank and the Borrower

22. The World Bank's overall performance was satisfactory throughout the preparation andimplementation of the project. It ensured staff continuity on the project, providing guidance inoutlining the NFED's core activities and helping the institution to focus on the goals of theproject. The Bank was responsive to the NFED, giving advice and reacting to the staff'srequests in a timely fashion, being flexible in approving project activities using the OperationalPlan (which was adopted after the mid-term review as a way to coordinate all of the project'sactivities), and reallocating funds to ensure the smooth implementation of the project. Itencouraged the NFED to assist other providers of literacy services, to contract out some of theproject activities for which it lacked a comparative advantage, and to revise its plans whenevernecessary to increase the project's impact. In addition, the Bank demonstrated its commitment tothe goals of the project by extending the project twice so that certain improvements could beconsolidated. When funding from the DFID became available during the latter half of theimplementation phase of the project, IDA and the DFID conducted joint missions to supervise theproject, which increased donor coordination. The joint aide-memoires issued at the end of thesemissions helped to overcome several implementation problems.

23. The contribution of the borrower -- the Government of Ghana -- was satisfactory. Thestaff of the NFED showed a strong commitment to the goals of the program and worked hard toimprove their own skills over time. The performance of the NFED leadership was uneven andoften unsatisfactory but improved in the latter part of the project. High turnover of NFED staffand leadership, often without the knowledge of donors, had a negative impact on the program..The PMU's performance was satisfactory by and large, but it also had a high turnover of staff tothe detriment of the project. Over time, coordination between the PMU and the NFEDimproved, which improved the implementation of the project.

vi

The Sustainability of the Literacy Programme

24. There are three main sustainability issues: whether the Government of Ghana canallocate adequate resources to the Literacy Programme, whether the NFED has the capacity toensure the quality of services it delivers, and whether graduates can sustain their level of literacyafter leaving the project. The estimated unit cost of the literacy training provided under theproject is about $29 per graduate.1 This is considerably lower than the annual cost for one yearof primary school, which amounts to $47.42. In other literacy programs in the developing world,costs per learner are $37.61 in Bangladesh, $30.14 in Uganda, $173.28 in Senegal, and $99.27 inEl Salvador (Valerio, 1997). Despite the relatively low cost of the Ghana project, it is not clearthat the govermnent is committed to sustaining the project without the support of external donors.

25. In terms of institutional sustainability, it seems clear the NFED has increased itscapacity to deliver services to large numbers of people, but it also needs to increase its capacity todeliver the promised incentives to the facilitators to ensure that they remain committed tocontinuing their teaching.

26. The issue of whether graduates can sustain their literacy after completing the classes isless clear. The activities of the LFSP that were designed to create a literate environment were notvery successful, so this question needs to be reviewed carefully when the next project is beingprepared. Much additional thought needs to be given to what are the best methods for providingreading materials to learners. The current use of the silk-screen technology in the production ofthe community newspapers has great potential for strengthening community-level activities.Alternative ways of promoting the production of written materials in local languages should alsobe explored.

Key Lessons Learned

27. Some important lessons can be drawn from how the project was implemented. Thelessons learned even from the less successful components will be useful inputs into subsequentprojects in the same field.

* In a large project, it is important to contract out peripheral elements to allow the staff of theimplementing agency to focus on the primary goals of the project.

* Large-scale projects require high levels of political support and commitment as well as strongparticipation and acceptance at the grassroots level both by the communities and theirleaders.

* Strong and stable leadership of the top project management is key to providing direction,guidance, and support to staff at all levels. When this is lacking, the project sufferssubstantially.

These costs are calculated based on total project costs minus costs for post-literacy materials, radioequipment, and infrastructure. The number of completed learners is based on information fromNFED records, the 1997 leamers assessment, and an estimate of the number of learners that havecompleted their first year who will complete the two-year cycle.

vii

* The project must be responsive to the needs and perceptions of the learners. As such, itshould be designed to be flexible to enable it to adjust to local conditions, (such as harvestseasons and migration patterns) within a framework of agreed parameters and indicators ofquality (such as the duration of the instruction, class attendance, and learning outcomes).

* The project can play an important role in the community by incorporating developmentactivities into the regular class schedule and involving learners in related schemes foiimproving the local community.

* For Ghana to eradicate illiteracy, the formal and non-formal education sectors must joinforces to ensure that their respective programs are cost-effective and of high quality. Also,the implementing agency must help non-government lproviders of literacy services byproviding them with technical assistance and teaching materials.

* Literacy instruction is more likely to be effective and to sustain participants' motivation whenit is carried out in circumstances where it is clear to the learners that being literate willimprove their daily lives.

* Literacy interventions need to be continually monitored to ensure that they are effective. Tothis effect, the research and evaluation capacity of organizations like the NFED will eitherhave to be significantly strengthened or local consultants will have to develop the expertise toservice these organizations.

28. As a result of the LFSP, the NFED has a good institutional foundation on which tobuild a subsequent literacy project. The basic systems are in place. Preparatory activities forfuture projects should examine in more detail the results of some of the elements of the projectsuch as teaching methods, instructional materials, support to income-generating activities, theradio programs, and the impact of development inputs to determine whether or not to continuethese activities and, if so, the best ways to increase their effectiveness.

29. Having successfully established a large-scale project, any future project shouldconcentrate on improving the quality of services delivered rather than rapidly expanding thequantity of services available. The next project should place more emphasis on the quality of theliteracy classes, on the monitoring and evaluation of the outcomes, on post-literacy activities, onbuilding a literate environment, and on improving the coordination of the project's activities withthose of other development agencies and literacy providers.

30. The NFED needs to reflect on its mission and its comparative advantage as the agencyresponsible for coordinating Ghana's non-for mal education activities and for implementing theNational Functional Literacy Programme. In consultation with stakeholders and beneficiaries,the Government of Ghana needs to determine how the program can best cater to the needs of thetarget population and become more cost-effective.

IMPLEMENTATION COMPLETION REPORTREPUBLIC OF GHANA

LITERACY AND FUNCTIONAL SKILLS PROJECT(Cr. 2349-GH)

PART I: PROJECT IMPLEMENTATION ASSESSMENT

INTRODUCTION

A. THE WORLD BANK'S SUPPORT FOR LITERACY

1. The economic decline that Ghana suffered from the early 1970s to the mid-1980sadversely affected the country's social indicators, particularly within the education sector. Thisled the IMF, the World Bank, and other donors to become involved in an Economic RecoveryProgram (ERP), which for over 15 years has attempted to stabilize the Ghanaian economy. In1989, the Ghana Living Standards Survey (GLSS) found that only 32 percent of people aged 15and older were literate. Primary school enrollments had gone down from 80 percent in 1980 to 74percent in 1989 as a result of the economic decline, but they then recovered to 77 percent in1992/93, four years after the start of the ERP. The most recent figures (1996) indicate thatenrollment in primary school (6 to 11 year olds) is 75 percent and in junior secondary school (12to 15 year olds) is 58 percent. Government spending on education has increased steadily duringthe course of the literacy project from 3.4 percent of GDP in 1990 to 4.7 percent of GDP in 1996.In 1998, 43 percent of the Ministry of Education's budget is allocated to primary schools, 22.4percent is allocated to junior secondary schools, 16.4 percent is allocated to senior secondaryschools, 12.1 percent is allocated to tertiary education, and 0.58 percent is allocated to non-formal education, which includes adult literacy.

2. Between the World Bank's fiscal year 1970 and fiscal year 1990, one-fifth of itsprojects in low-income countries contained an element of literacy training, but these accountedfor only 1 percent of project costs. Since 1991, the Bank has approved only four self-standingliteracy programs out of a total of 164 education projects (spending only about US$110 millionout of a total of US$12 billion). These four projects were the Indonesia Third Non-formalEducation Project of 1991 (CR-343 10), the Ghana Functional Skills and Literacy Project of 1992(CR-2349); the Senegal Pilot Female Literacy Project of 1996 (CR-28730), and the BangladeshNon-formal Education Project of 1996 (CR-28220).

3. There are now signs that adult literacy programs are receiving more support andemphasis from donors for a number of reasons (Eisemon et al 1995). First, reachingcommunities in remote rural areas requires making a special effort, and these communities maybe better served by alternatives to traditional schooling. Second, economic and political turmoilin many countries has limited the number of opportunities available to many young adults tolearn. Third, efforts by governments to expand the formal education system and to provide high-quality education have been undermined by severe economic decline in many countries,

2

particularly in Africa. Thus, what is needed are cost-effective programs that teach basic literacyskills to adults with little or no formal schooling in order to increase their productivity.

4. In Ghana, since the ERP was instituted, the Bank and the Government of Ghana havecompleted five projects in the education sector, including the Literacy and Functional SkillsProject (Cr. 2349-GH), the Health and Education Project (Cr. 1653-GH), the EDSAC (Cr. 1744-GH), the EDSAC II (Cr. 2140-GH), and the Community Secondary Schools Construction Project(Cr. 2278-GH). There are four additional projects currently being implemented: the TertiaryEducation Project (Cr. 2428-GH), the Primary School Development Project (PSDP), theVocational Skills and Informal Sector Project (Cr. 2695-GH), and the Basic Education SectorImprovement Program (BESIP). Two operations have been proposed in the Bank's sectorallending program: Functional Literacy II, and the Post-Basic Education Project.

B. OBJECTIVES OF THE LITERACY AND FUNCTIONAL SKILLS PROJECT

5. The Literacy and Functional Skills Project (LFSP) was designed to support the NationalFunctional Literacy Programme, which the government initiated in 1990 after the 1989 censusshowed that the level of illiteracy among Ghanaians aged 15 and over was as high as 67 percent.The government hoped that the Literacy Programme would dramatically reduce illiteracy inGhana within a decade.

6. The overarching objective of the LFSP was to improve the quality of life of the poorestGhanaians, especially those in rural areas, by providing them with basic literacy and numeracyskills and new knowledge and attitudes. In particular, the project stressed the need to makelearners "functionally" literate, in other words, to apply their new skills in practice in their dailylives. The project's specific objectives were:

- To strengthen the institutional capacity of the Non-formal Education Division (which wasestablished in 1986 under the Ministry of Education to coordinate all non-formal educationactivities in Ghana) to manage the entire Literacy Programme effectively

* To ensure that all of the aspects of the project were subject to frequent evaluation andmonitoring and that research and evaluation were key inputs in the development of any newinitiatives

* To improve the existing Literacy Programme so that a large proportion of the 840,000 adultswho would be allowed to participate would become functionally literate

* To ensure that all new literates, whether from the school system or from the literacy project,had access to a range of reading materials in the Ghanaian languages

* To expand the coverage of the FM broadcasting system to support the Literacy Programmeand to increase the frequency of educational broadcasting in the Ghanaian languages.

Project Description and Components

7. The LFSP contained the following elements: (i) institutional support; (ii) research,monitoring, and evaluation; (iii) classroom teaching; (iv) a system of supervisors to monitor theattendance and progress of learners and the performance of the facilitators; (v) classroom

3

materials and learner motivation; (vi) the creation of a literate environment; (vii) radio studio andtransmission facilities; (viii) post-literacy classes; and (ix) assistance to NGOs.

8. Institutional Support. When the Non-formal Education Division (NFED) was first setup in 1986, it was a loose organization comprised of staff who were more familiar with theformal education system than with managing and delivering a non-formal literacy program.Thus, it was essential to strengthen the institutional capacity of the NFED. To this end, theBritish Overseas Development Agency (ODA, now the Department for InternationalDevelopment: DFID), carried out a study to determine the most effective institutional structurefor the NFED. Under the LFSP, a management structure was put in place to manage andcoordinate the activities of the NFED, and in-service training was organized for staff at thecentral, regional, and district levels.

9. Research, Monitoring, and Evaluation. This component of the LFSP was designed toincrease the effectiveness of the NFED by investigating smaller literacy initiatives in Ghana andby researching ways to make the program more effective (for example, by improving readingmaterials, lighting systems, the management information system, and learning outcomes). To thisend, the project aimed to create a central Research Unit, to train all regional staff in researchtechniques, and to designate monitoring and evaluation officers at the regional and district officesof the NFED. In addition, the NFED was to devote considerable resources to a program ofexternal research and evaluation under the supervision of a multi-disciplinary group from threeGhanaian universities responsible for approving proposals and administering a specially createdResearch Fund.

10. Classroom Teaching. During the pre-appraisal and appraisal phases of the LFSP,important changes were made to the content of the literacy courses to be taught under the projectand to teaching methods to be used. The tradition of rote learning and syllable drills wasabandoned in favor of the Freireian approach comprised of key words and slogans. The classeswould emphasize the functional aspects of literacy (in other words, the ways in which beingliterate would help learners in their daily lives). Also, there would be discussions aboutdevelopment in the classes and the learners would be involved in related activities for improvingthe local community. The acquisition of functional numeracy was stressed, because learners hadexpressed their desire to be able to calculate prices in the market place and in other financialtransactions. The project was particularly designed to address the special needs of women insuch areas as nutrition and child care. The training given to facilitators and supervisors wouldalso emphasize Freireian techniques and followed the "cascade" approach, whereby a nationaltraining team would train the regional teams, who in turn would train the district teams. Literacyteachers at the community level (facilitators) taught on a voluntary basis and were motivated byincentives such as gifts of bicycles and sewing machines, which were distributed according tocriteria laid out by NFED management.

11. Supervision System. Supervisors were seen as providing the critical link between theNFED's district offices and the literacy classes. They were to verify the existence of the classesand to monitor the attendance and progress of the learners, and the performance of thefacilitators. The NFED arranged for the National Service Secretariat (NSS) and the GhanaNational Association of Teachers (GNAT) to be responsible for supervising the LiteracyProgramme nationwide. NFED district officers in turn were responsible for monitoring theperformance of the NSS and GNAT supervisors. The supervisors received training and teachingmaterials similar to those given to the facilitators and, in addition, they received training in

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monitoring and evaluation methods and in Freireian teaching techniques to enable them to workwith the facilitators. Their incentives included being given a bicycle (to help them to cover longdistances between literacy education centers) and a radio set. At a later stage, they were to betrained to ride a motorcycle, which they would be given if they met criteria laid down by theNFED.

12. Classroom Materials and Learner Motivation. The materials to be given to learnersupon enrollment were a literacy primer, an exercise book, a slate, a pencil, and an eraser. Uponcompleting the basic literacy cycle, learners were to be given two functional reading books. Forself-improvement activities related to lessons in the primer, the project provided developmentinputs such as vegetable seeds (for lesson related to nutrition), oral rehydration salts (for lessonson the treatment of diarrhea), muslin cloth (for lessons on safe drinking water), tree seeds andplastic bags (for lessons on the environment), and red powder (to demonstrate how flies transmitdisease). Following a protocol signed between the NFED and the National Bureau for Small-Scale Industries (NBSSI), the project provided small loans to groups of learners who wished tostart an income-generating activity such as garri production (processed cassava), fish smoking,bread making, and kente weaving.

13. Creating a Literate Environment: One key element of the project was to ensure thatgraduates from both the formal and non-formal education systems had access to sufficientreading materials in the local languages to prevent them from lapsing back into illiteracy. Toachieve this end, the NFED undertook to:

* publish and distribute a community newspaper in 15 local languages under protocols withNew Times Corp6ration, the Gonja Literacy Project, and the GILLBT

* commission the publication of books in all 15 local languages and to assemble book boxesthat each consisted of 20 of these volumes, with one book box being shared between twoclasses

- subsidize a part of the book production costs of the Ghana Book Publishers Association(GBPA) depending on the language in which the book in question was being published, thesize of its likely market, and the complexity of the material that it covered.

* encourage local communities to produce their own reading materials using low- cost silk-screen technology.

14. Using Radio Studio and Transmission Facilities. During the pilot phase of the LiteracyProgramme which was supported by ODA, one FM radio station in Ho in the Volta Region andone in Tamale in the Northern Region were selected to be rehabilitated under an agreementbetween the Ghana Broadcasting Corporation (GBC) and the NFED. In return, these stationswere to air education, literacy, and development programs in selected local languages during atleast 60 percent of their peak listening hours.

15. Post-literacy Classes. It became evident during the pilot phase of the LiteracyProgramme that not all learners were entirely new to literacy. Some of them had droppedout of elementary school and needed a chance to begin their education again and perhapsto return to the formal school system. Therefore, the needs of this group were differentfrom those of learners who were entering a classroom for the first time. Thus, post-literacy classes were to be organized for this group as part of the LFSP. It was envisagedthat graduates of the basic literacy cycle would eventually take the post-literacy classes as

5

a way to sustain their newly acquired functional literacy. An English language pilotscheme for literacy in English was also designed to target this group.

16. Assisting the Literacy Efforts of NGOs. Under the terms of the project, the NFEDwould train facilitators for and provide literacy materials to any NGO (particularly church-basedorganizations) that could put together a literacy class of at least 25 participants. The NFED alsoliaised with larger NGOs that were already operating their own literacy programs throughoutGhana.

Credit Covenants and Special Agreements

17. Credit covenants were primarily in the areas of disbursement and procurement and allof them were complied with (see Part II, Table 8). The NFED entered into special agreementswith other institutions in Ghana to deliver the various components of the LFSP. Most of thecovenants concerned disbursement and procurement issues. The NFED entered into specialarrangements with the National Bureau of Small-scale Industries (NBSSI) to oversee the income-generation activities under the project. The NFED would evaluate and recommend the groupswho were most suitable to participate in the credit scheme and train them, while the NBSSIwould process the loans. To encourage the publication of reading materials in Ghanaianlanguages, the NFED collaborated with the Ghana Book Publishers Association (GBPA) in termsof funding and marketing. The Ghana Broadcasting Corporation (GBC) participated in the LFSPby agreeing to air the literacy programs produced by the NFED on radio stations in the Tamaleand H6 districts. An agreement between the NFED and the New Times Corporation enabled theprinting of a community newspaper in the 12 languages of the southern sector and its distributionto the literacy classes. A similar agreement between the NFED and the Gonja Literacy Projectand the GILLBT enabled the printing and distribution of community newspapers to the northernsector.

Costs and Financing Arrangements

18. From the beginning, the LFSP was supported by the IDA Credit and an IDA-administered grant from the Kingdom of Norway. The project greatly benefited from theinvolvement of the DFID, while UNICEF initially provided support for the training oftrainers but gradually phased it out. The Literacy Programme was estimated to cost US$30.9 million, with financing coming from IDA (US$17.4 million), the Kingdom ofNorway (US$2.9 million), UNICEF (US$0.6 million), and the Government of Ghana(US$10 million). The DFID participated in the Programme, contributing some of itssupport by providing resident technical assistance to the NFED. Because of thedepreciation of the Cedi and various implementation issues, the actual project cost onlyUS$27.4 million or 90 percent of the total estimated cost.

Implementation Schedule

19. The National Adult Literacy Programme was started in 1990 by a special governmenttask force. The task force studied existing literacy programs in Ghana, undertook study tours ofliteracy endeavors in other African countries, and drew upon the Bank's 1989 Sector Study:"Basic Education for Self-Employment and Rural Development." Early in January 1991, the

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government submitted its project proposal to the World Bank, and, by the end of January, a jointmission of staff from the Bank and ODA was organized to evaluate the government's proposal.The outcome was a set of recommendations to improve the Literacy Programme's readingmaterials, training programs, radio support activities, organization, and staffing. The Literacyand Functional Skills Project (Cr. 2349-GH) was reviewed by the Board on March 26, 1992,signed on April 22, 1992, and became effective on July 21, 1992 with a closing date of June 30,1995. The project closing date was extended twice to allow for the strengthening of NFEDmanagement capacity and the implementation of such project activities as the English Pilotscheme and the community newspaper. The project finally closed on December 31, 1997.

Mid-term Review

20. During the project's Mid-Term Review in April 1994, the following agreements werereached: (i) to extend the basic literacy cycle from one year to two years; (ii) to conductsystematic learner assessments to evaluate the extent to which those who participated in theproject acquired literacy skills; (iii) to request the NFED to collaborate with a research institutionto strengthen the research and monitoring component; (iv) to provide certificates to final-yearlearners/graduates of the project; and (v) to increase the role played by the regional and districtoffices of the NFED in supervising the project supervision. An Operational Plan prepared as aresult of the mid-term review was not fully utilized initially but later improved the planning andthe monitoring of the project.

PROJECT OBJECTIVES

A. PROJECT OUTCOMES AND IMPLEMENTATION EXPERIENCE

21. This section reviews the outcomes of the LFSP relative to its objectives, both in overallterms and then by component. It also reviews the experience of implementing the project,including the performance of both the Bank and the Government of Ghana. Finally, it outlinessome questions about the sustainability of the literacy initiative in Ghana.

B. PROJECT DESCRIPTION AND COMPONENTS

Project Results and Outcomes

22. The overarching objective of the project was improving the quality of life of thepoorest Ghanaians by providing literacy training. This was vital because poverty and illiteracyare closely linked in Ghana. The more specific project objectives were pertinent to the country'sneeds but were somewhat ambitious given the weak capacity of the NFED and the large numberof people who were expected to participate in the project's literacy classes.

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23. Nevertheless, the objective of providing literacy training to 840,000 learners was notonly attained but even surpassed, partly as a result of the project being extended twice. About1,373,571 learners enrolled (as of December 1997), of whom 726,714 (as of June 1997) hadcompleted the training. The two learner assessments undertaken in the last two years of theproject demonstrated that learners succeeded in acquiring literacy and numeracy skills, withscores in reading being significantly higher than in writing. The level of illiteracy found in the1987 census was 67 percent of the population over the age of 15. The most recent data (1997)show that this has dropped to 51 percent. It can be assumed that much of this decline is due tothe people who completed the literacy courses under the LFSP.

24. The low drop-out rates for learners (about 22 percent) and high retention rates for thevolunteer facilitators (over 85 percent), often a problem in literacy programs, indicate that therewas a strong demand for literacy, and that the learners and facilitators were highly motivated.Implementation of the project was helped by very high demand for literacy, particularly amongthe 25 to 44 age group. This provided a large pool of people motivated to take the courses over afairly long period. Qualitative research indicates a variety of reasons for attending literacyclasses including the desire to avoid being cheated in financial transactions, the need to readinstructions on agro-chemical packages, the belief that literacy was a prerequisite for improvedsocial status, the desire to send and receive mail without assistance and the need to keep accurateaccounts.

25. The project was in many ways self-targeting, since only illiterates would be interestedin participating and most illiterates were poor. It helped to counter regional disparities in accessto basic education, as 67 percent of the learners were from the northern sector compared to only17 percent from the Greater Accra area. Sixty percent of the learners were women, and 70percent of them had had no formal schooling before starting the courses provided by the project.

26. On the NFED monitoring visits, it became clear that learners are demonstrating theirincreased appreciation for education by enrolling their children in primary school, therebyexpanding enrollments at that level. The Beneficiary Impact Assessment mentioned that therehas been an increase in self-esteem among learners and an increase in awareness of the choicesavailable to them in such areas as family planning, health and hygiene, agricultural practices,preservation of the environment, and civic awareness

The Success of Each Project Component

27. The extent to which the project's overall objectives were achieved was dependent onthe success or failure of each individual component of the project.

28. Institutional Strengthening. At the outset of the project, the NFED's managementcapacity was weak. Managers changed frequently, and there was often no identifiable leader ofthe institution. Initially, the staff and management of the NFED had difficulty understanding theproject as it had many different components. This meant that they felt little ownership of theproject.

29. Considerable effort went into building the capacity of the agency and with somesuccess, so that, by the end of the project, the NFED had increased its capacity to deliver literacyservices to large numbers of people. This improvement was particularly evident after the mid-

8

term review. The main emphasis of the capacity building effort was put on training facilitators,supervisors, district and regional staff, and central management. Furthermore, the director ofadministration and- finance benefited from long-term technical assistance given to the agency bythe British, although this assistance did not provide the transfer of skills envisaged.

30. Capacity problems related to the procurement of materials remained an issuethroughout the project. In particular, the lack of a clearly defined arrangement between NFEDand the Project Monitoring Unit (PMU) in the Ministry of Education led to significant delays inthe procurement of project inputs. A significant failure was that the NFED did not develop thecapacity to help other providers to deliver literacy services, which had been an important aspectof the original project proposal. In addition, the agency failed to implement procedures designedto improve the quality of the services delivered. Nevertheless, the institutional reforms of theNFED introduced by the project have made it a stronger agency, better able to deliver literacyservices.

31. Research, Monitoring and Evaluation. Research activities were slow to get off theground. As planned, a research advisory committee was established in 1993/94 with membersfrom both the NFED and the universities. This committee reviewed proposals and organizedsome training on research methodology. However, proposals were too academic and not gearedto helping NFED improve its program and the long approval process for proposals (whichinvolved the NFED, the advisory committee, the Ministry of Education, and the World Bank)meant that no useful research was commissioned. Thus, the committee was discontinued.

32. Other problems encountered in the research component were: (i) poor procurementplanning and a lack of appropriate hardware and software; (ii) a lack of appropriate researchcapacity at all levels; and (iii) the fact that NFED staff had too many demands on their time fromother project activities. The research component, as originally designed, required unrealisticallyhigh levels of research capacity at both the central and the decentralized levels of the NFED,which is main reason why the planned decentralization of research activities never materialized..

33. In an effort to strengthen the research program, the NFED and Nuffic/CESO (of theNetherlands) established a partnership to develop a system for designing and conducting fieldresearch on topics that would make the Literacy Programme more effective. This partnershipreinvigorated the research program and produced recommendations on how to restructure it tomake it more effective and operationally oriented. The pace of research increased in the last twoyears of the project, mainly as a result of the technical assistance provided by Nuffic/CESO.Several studies were conducted, as a result of which adjustments were made to the way in whichthe project was being implemented (see Part II, Table 6). Nevertheless, this component of theproject was never sufficiently strong.

34. In setting the objective of establishing a strong monitoring and evaluation system foroverseeing the activities of the Literacy Programme, project planners overestimated the capacityof the NFED to carry out the necessary work. The basic monitoring system that was establishedwas sound, but, in practice, it suffered from the following problems: (i) important informationwas not collected (for example, on completion rates, facilitator drop-out rates, and the number ofclasses that stopped in mid-cycle); (ii) little checking was done of the validity of the informationprovided; (iii) field staff did not understand the importance of providing accurate information;(iv) there was little feedback from the NFED headquarters on the information collected; and (v),

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when these data were analyzed, the findings of this analysis were not used to modify the projectactivities. Also, supervision, an important part of any monitoring and evaluation system, wasweak, due to logistical problems and to a lack of capacity among the supervisors.

35. The NFED's collaboration with Nuffic/CESO provided an opportunity to revise themonitoring system. New data collection forms were designed, based on the needs of differentgroups involved in the programme. A new plan for collecting data was prepared, and trainingprograms were designed to ensure that all of the different actors in the system understood theirroles and the importance of collecting accurate data. These revisions were only introducedtowards the end of the project, so it has not been possible to evaluate their impact.

36. Classroom Teaching. The project was able to recruit and retain a large number ofdedicated volunteer facilitators (with a retention rate of over 85 percent). Many facilitators haveeven taught for several literacy cycles without receiving the promised incentives.

37. Supervision System. The importance of supervision to the success of the literacy classeswas not fully appreciated initially by NFED. Field supervisors were selected for reasons otherthan their technical qualifications and level of commitment to the project so that many of themwere neither competent nor motivated. Poor supervision was demoralizing for learners andfacilitators and had a negative impact on the monitoring and evaluation system.

38. Classroom Materials and Learner Motivation. As its title indicates, the LFSP stressedthe importance of the functional aspects of literacy teaching so that lesson content was tailored tothe practical needs of the learners. This proved to be a big factor in stimulating demand for theproject's literacy course.

39. The project also increased learners' awareness of important development issues in theareas of agriculture, health, family planning, and nutrition, sometimes with the help of staff ofministries such as health, agriculture, and forestry, staff of NGOs, and community leaders. Noevaluation has been done of the actual impact of the development activities undertaken as part ofthe literacy project, so it is impossible to draw a conclusion about the effectiveness of theseactivities. However, it is known that, in some communities, participating in developmentactivities changed the attitudes and behavior of both participants and their neighbors.

40. As part of this component, the project introduced a small loans scheme to fund groupsof newly literate people who wished to set up income-generating activities. Initially, this schemebenefited about 76 groups. However, delivering and recovering small loans requires skills thatthe NFED does not possess and should not try to acquire. This was recognized during thepreparation of the project, and the contract with the NBSSI was meant to address this issue.Unfortunately, the NBSSI itself did not possess the required outreach capacity and instead reliedon the NFED to evaluate potential beneficiaries and to administer the credit scheme, which wasthe situation that project planners wished to avoid in the first place.

41. Institutional weaknesses affected the provision of classroom materials. For example,there were often delays in the producing and supplying them to the classes because of weakplanning and management.

42. Creating a Literate Environment. Based on the experience of other literacy programs,the project emphasized establishing a literate environment to support learners while they

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completed the basic literacy cycle and after they graduated. However, the NFED's collaborationwith GBPA to promote the printing of reading materials in local languages was not satisfactorilycompleted. Only six marketing events were held. The NFED doubled the quantities of post-literacy materials procured from the GBPA to distribute in the project's book boxes, but thematerials provided under the agreement were not as varied as desired.

43. Initially, the newspapers to be distributed to the literacy classes in their local languageswere produced centrally, but, as a result, their distribution was sporadic and inopportune, and thenews was often very stale by the time it reached the classes. In response to these problems, theNFED decided that community newspapers should be produced at the district level using a simplesilk-screen technology. In some districts, this has worked quite well, but in others, particularly inthe north, there have been logistical problems, requiring further training and supervision of thoseproducing the newspapers.

44. Using Radio Studio and Transmission Facilities. In support of the functional aspect ofthe classes, the NFED arranged to broadcast its literacy material on two FM radio stations. Thetwo stations at H6 and Tamale covered five languages. According to the Beneficiary ImpactAssessment, the demand for these radio programs among the learners who spoke these languageswas high, and learners made positive comments about the content of the broadcasts.Unfortunately, the NFED was not able to exploit the medium fully due to the limited range of thebroadcasts and problems with the GBC in broadcasting relevant programs. The BIA reports thatthe radio component was successful, and it will be evaluated in detail during the preparation ofthe subsequent project.

45. Post-literacy Classes. No separate evaluation of these activities has been done.

46. Assisting the Literacy efforts of NGOs. While NFED did collaborate with some NGOsinvolved in literacy training, it did not play the facilitating and coordinating role that had beenenvisaged.

IMPLEMENTATION EXPERIENCE AND RESULTS

A. ASSESSMENT OF PROJECT'S SUCCESS AND SUSTAINABILITY

47. Implementing the LFSP yielded a number of unexpected problems and consequences.For example, project planners underestimated the difficulties that the NFED would have incollaborating with other institutions (such as the GBC, the GBPA, the NBSSI, the universities,and the New Times Corporation). These difficulties initially slowed down progress towardsattaining some of the project's objectives such as the dissemination of books in local languages,income-generating activities, and applied research. However, it is not clear that this would havebeen evident at the time of the project's appraisal.

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47. The working relationship between the NFED and the PMU was also problematic during mostof the early stages of implementation. The institution of regular meetings of an ImplementationCommittee alleviated some of these problems.

48. The project received high-level political support, but the Government of Ghana was slow indelivering its counterpart funding, which often hampered project activities.

The Performance of the Bank and the Borrower

50. The World Bank's overall performance was satisfactory throughout the preparation andimplementation of the project. It ensured staff continuity on the project, providing guidance inoutlining the NFED's core activities and helping the institution to focus on the goals of theproject. The Bank was responsive to the NFED, giving advice and reacting to the staff's requestsin a timely fashion, being flexible in approving project activities using the Operational Plan andreallocating funds to ensure the smooth implementation of the project. It encouraged the NFEDto increase its outreach to other providers of literacy, to contract out some project activities forwhich it lacked a comparative advantage, and to revise its plans whenever necessary to increasethe project's impact. In addition, the Bank demonstrated its commitment to the goals of theproject by extending it twice, so improvements could be consolidated.

51. The contribution of the borrower -- the Government of Ghana -- was satisfactory. The staff ofthe NFED showed a strong commitment to the goals of the project and worked hard to improve theirown skills over time. The performance of the NFED leadership was uneven and sometimesunsatisfactory but improved in the latter part of the project. High turnover of NFED staff andleadership, often without the knowledge of donors, had a negative impact on the project. ThePMU's performance was satisfactory by and large, but it also had a high turnover of staff to thedetriment of the project. Over time, coordination between the PMU and the NFED improved,which improved the implementation of the project.

The Sustainability of the Literacy Programme

52. There are three main sustainability issues: whether the Government of Ghana willallocate adequate resources to the Literacy Programme, whether the NFED has the capacity toensure the quality of services it delivers, and whether graduates can sustain their level of literacyafter leaving the project. The estimated unit cost of the literacy training provided under theproject is about $29 per graduate.2 This is considerably lower than the annual cost for one yearof primary school, which amounts to $47.42. In other literacy programs, costs per learner are$37.61 in Bangladesh, $30.14 in Uganda, $173.28 in Senegal, and $99.27 in El Salvador(Valerio, 1997). Despite the relatively low cost of the Ghana project, it is not clear that thegovernment is committed to sustaining the project without the support of external donors.

53. In terms of institutional sustainability, it seems clear the NFED has increased itscapacity to deliver services to large numbers of people, but it also needs to increase its capacity to

2 These costs are calculated based on total project costs minus costs for post-literacy materials, radioequipment, and infrastructure. The number of completed learners is based on information fromNFED records, the 1997 learners assessment, and an estimate of the number of learners that havecompleted their first year who will complete the two-year cycle.

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deliver the promised incentives to the facilitators to ensure that they remain committed tocontinuing their teaching.

54. The issue of whether graduates can sustain their literacy after completing the classes isless clear. The activities of the LFSP that were designed to create a literate environment were notvery successful, so this question needs to be reviewed carefully when the next project is beingprepared. Much additional thought needs to be given to the best methods for providing readingmaterials to learners. The current use of the silk-screen technology in the production of thecommunity newspapers has great potential for strengthening community-level activities.Alternative ways of promoting the production of written materials in local languages should alsobe explored.

SUMMARY OF FINDINGS, FUTURE OPERATIONS AND KEY

LESSONS LEARNED

A. IMPORTANT FINDINGS OF PROJECT IMPLEMENTATION EXPERIENCE

55. This section examines the lessons learned from LFSP, lessons which have importantimplications for the planning and implementation of future literacy projects in Ghana andelsewhere.

56. Important Lessons from the Project. There are several general lessons to be learnedfrom the way in which the LFSP was implemented.

* In large projects, it is important to contract out peripheral elements in order to allow the staffof the implementing agency to focus on the primary goals of the project.

* Large-scale projects require high levels of political support and commitment as well as strongparticipation and acceptance at the grassroots level both by the communities involved andtheir leaders.

* Strong and stable leadership at the top of the institution managing the project is veryimportant for providing direction, guidance, and support to staff at all levels. When this islacking, the project suffers substantially.

* The project must be responsive to the needs and perceptions of learners. As such, it should bedesigned in a flexible way to enable it to be adjusted to suit local conditions (such as harvestseasons and migration) within a framework of agreed parameters and indicators of quality(such as the duration of instruction, class attendance, and learning outcomes).

* Literacy projects can play an important role in community development by incorporatingdevelopment activities into the regular class schedule and involving learners in relatedactivities for improving the local community.

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* For Ghana to eradicate illiteracy, the formal and non-formal education sectors must joinforces to ensure that their respective programs are cost-effective and of high quality. Also,the implementing agency must help non-government providers of literacy services byproviding them with technical assistance and teaching materials.

* Literacy instruction is more likely to be effective and to sustain participants' motivation whenit is carried out in circumstances where it is clear to the learners that being literate willimprove their daily lives.

* Literacy interventions need to be continually monitored to ensure that they are effective. Tothis effect, the research and evaluation capacity of organizations like the NFED will eitherhave to be significantly strengthened or local consultants will need to develop the expertise toservice these organizations.

57. In addition, there are some lessons to be learned from the experience of implementingthe specific components of LFSP.

58. Institutional Strengthening. While the NFED has increased its capacity to deliverservices to large numbers of people, it still needs to increase its capacity to provide effectivesupervision and to provide incentives to the facilitators to ensure their commitment to continuingtheir teaching. The supervision of facilitators has been weak, as has the supervision of thesupervisors by district office staff.

59. Community Development. The participation of communities in the project is importantsince the acquisition of literacy and functional skills is intricately linked to community activities.The BIA indicated that the most successful classes in terms of retention rates were those thatwere strongly supported by the local community. However, the relationship that the project haswith local communities must be carefully thought out to avoid promising more than can bedelivered in terms of complementary inputs such as credit. The support given by communityleaders to local administrators of the project is especially critical for sustaining the commitmentof the learners and facilitators, particularly considering the impact that the project is likely tohave on the community as a whole, learners and non-learners alike.

60. Functionality. The results of the BIA showed that one of the great attractions of theproject to potential learners was the functional aspect of the curriculum. Learners were interestedin acquiring skills and practices that would allow them to increase their social and economicpotential. According to the BIA, acquiring these skills gave learners greater self-esteem.However, the BIA also concluded that acquiring new knowledge did not often translate intobehavioral change. For example, the learners were taught in the project classes that standingwater around residences breeds mosquitoes and can lead to malaria. Nevertheless, the homes oflearners who were visited during the BIA were surrounded by pools of mosquito-infested water.Thus, it is advisable to strengthen the links between the lessons taught in the classes and thepractical community-level efforts of NGOs, donors, and the Ministries of Health andAgriculture.

61. Planning. It was found that advance planning to recruit facilitators, to acquire inputs,and to design training courses for facilitators is critical to ensure that classes follow an agreed

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schedule. Also, the Operational Plan was found to be a useful management tool to link thevarious elements and activities of the project. .

62. Training. The training of facilitators and supervisors must be active and participatory.It should train them not only to teach literacy but also to lead class discussions on developmentissues and to facilitate development activities. In light of the fact that training is a criticalelement of the Literacy Programme and incurs significant recurrent costs, it is vital that thetraining be both effective and sustainable. In this context, the cascade methodology should bereevaluated.

63. Facilitators. So far, offering incentives to facilitators as rewards for their goodperformance has been effective, even though project management has had problems in deliveringthe incentives. However, it may be necessary to offer facilitators more regular compensation inthe future to ensure their good performance over the longer term. It is important that appropriatecriteria are used to select facilitators and these criteria should be uniformly applied.

64. Supervision. Although supervision has been decentralized, this has not really worked,and sanctions have not been enforced. If a second phase of the project is to be funded, theNFED will need to propose a viable supervision system including a reexamination of thequalifications expected of a supervisor.

65. Materials in Local Languages. The efforts to establish a literate environment have beendisappointing, due in part to the GBPA's failure to comply with the agreement that it had with theNFED to produce reading materials in the 15 Ghanaian languages covered by the project.However, given the complexity of this task, further reflections on the best way to sustain a bestway to sustain a literate environment would be useful. One book box containing a wide varietyof titles should be assigned to each class and should be made available to both learners and thecommunity.

66. Monitoring and Evaluation. Monitoring and evaluation systems need to be establishedfrom the start of the project, with baseline data and clear indicators to assess learningachievement and other benefits. The timely collection and processing of relevant and reliabledata is critical for assessing the impact of the project and for making necessary adjustments.Applied research and, just as importantly, the application of these research findings are criticalfor increasing the effectiveness of the project.

67. Logistics. Over-centralized procurement can hinder the implementation of the projecton the ground. Consideration should be given to decentralizing the procurement of a selectednumber of inputs. Ongoing capacity problems within the PMU will need to be solved before thenext phase of the project is implemented.

Summary

68. As a result of the LFSP, the NFED has a good institutional foundation on which tobuild a subsequent literacy project. The basic systems are in place. Planners of future projectsshould examine the lessons from some of the components of the LFSP, including teachingmethods, instructional materials, income-generating activities, the radio programs, and the impact

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of development inputs to determine whether or not to continue these activities and, if so, what arethe best ways to increase their effectiveness.

69. Having successfully established a large-scale project, the Government of Ghana shouldconcentrate in the next project on improving the quality of services delivered rather than rapidlyexpanding the quantity of services available. The next project should place more emphasis on thequality of the literacy classes, on the monitoring and evaluation of the outcomes, on post-literacyactivities, on building a literate environment, and on improving the coordination of the project'sactivities with those of other development agencies and literacy providers.

70. The NFED needs to reflect on its mission and its comparative advantage as the agencyresponsible for coordinating Ghana's non-formal education activities in the country and forimplementing the National Functional Literacy Programme. In consultation with stakeholdersand beneficiaries, the Government of Ghana needs to determine how the project can becomemore cost-effective and best cater to the needs of the target population..

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PART I1: STATISTICAL TABLES

Table 1 Summary of AssessmentsTable 2: Related Bank Loans/CreditsTable 3: Project TimetableTable 4: Loan/Credit Disbursements: Cumulative Estimated and ActualTable 5: Key Indicators for Project ImplementationTable 6: Studies Included in the ProjectTable 7A: Project CostsTable 7B: Project FinancingTable 8: Status of Legal CovenantsTable 9: Bank Resources: Staff InputsTable 1 0: Bank Resources: Missions

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Table 1: Summary of Assessments

A. Achievement of objectives Substantial Partial Negligible Not applicable

Macro policies xSector policies xFinancial objectives xInstitutional development xPhysical objectives xPoverty reduction xGender Issues xOther social objectives xEnvironmental objectives xPublic sector management xPrivate sector development x

B. Project sustainability Likely Unlikely Uncertain

x

HighlyC. Bank Performance Satisfactory Satisfactory Deficient

Identification xPreparation assistance xAppraisal xSupervision x

HighlyD. Borrower Performance Satisfactory Satisfactory Deficient

Identification xPreparation assistance xAppraisal xSupervision: NFED staff x

Management x

Highly HighlyE. Assessment of Outcome Satisfactory Satisfactory Unsatisfactory Unsatisfactory

x

18

Table 2: Related Bank Loans/Credits

Loan/Credit title Purpose Year of Status

.-__________________________________________ -approval

Preceding operations

1. Health and The first "emergency" project in education and health 1986 ClosedEducation Project was designed to get textbooks, library books, writing 12/31/91(Cr. 1653-GH) materials and other essential supplies into the school

system as quickly as possible.

2. EDSAC I First of a series of projects designed to support the 1987 Closed(Cr. 1744-GH ) Government's 1987 Education Reform Program, 12/31/91

EDSAC I was a broad policy based SECAL coveringthe entire education system, with a greater part of theresources generated from the credit concentrated on theJSS levels (grades 7-9). EDSAC I established the PMUwhich has remained the project implementation facilityfor Bank and other donors.

3.EDSAC 1I EDSAC II was much like the first EDSAC but its main 1990 Closed(Cr. 2140-GH) policy framework dealt with school education and most

of the resources were concentrated in the SeniorSecondary School level.

4. Community The project supported the construction of about 150 1991 ClosedSecondary Schools Senior Secondary Schools by local communities in ruralConstruction Project areas to help expand access to education and improve(Cr. 2278-GH) equity, particularly for girls.

Ongoing operations:

1. Tertiary Education The project supports the first phase of the government's 1993Project (Cr. 2428- tertiary education reform program, with stress on: (a)(GfH) quality improvement in teaching and learning; (b)

improved management; (c) increased autonomy withaccountability for the universities; and (d) a gradualexpansion of enrollments.

2. Primary School The project assists the government in increasing 1993Development Project learning achievements and enrollments in primary

school.

19

3. Basic Education The project seeks to: 1) improve the teaching process 1996Sector Improvement and learning outcomes; 2) strengthen management ofProject (Cr. -GH) the basic education system through better planning,

monitoring and evaluation by the Ministry of Educationand Ghana Education, and by promoting activeinvolvement of communities in the management ofschools; 3) improve access to basic education,especially of girls, the poor and other disadvantagedsegments of the population; and 4) ensure financialsustainability of the government program for basiceducation over the longer term.

20

Table 3: Project Timetable

Steps in project cycle Date planned Date actual/latest estimate

Identification 04/22/88

Preparation 01/28/91

Appraisal 06/24/91

Negotiations 02/10/92

Board presentation 03/26/92

Signing 04/22/92

Effectiveness 07/21/92

Project completion 10/10/97

Loan closing 12/31/97

Table 4: Credit Disbursements: Cumulative Estimated and Actual(US$ millions)

FY1992 FY1993 FY1994 FY1995 FY1996 FY1997 FY1998

Appraisal estimate 4.9 10.6 16.4 17.4Actual 0.0 2.20 3.41 5.92 8.56 10.63

Actual as % of estimate 21% 21% 34% 49% 61%Date of final June,disbursement 1998

21

Table 5: Key Indicators for Project Implementation**

OBJECTIVES INDICATORS OUTCOME COMMENTSNo. of facilitators given 17,145 39,239 The numbers of facilitators

initial training trained increased due to theextension of the project

No. of supervisors given 1,126 1,194 NFED zones changed with eachinitial training literacy cycle, depending on #s

of classes per zoneGovernment's contribution Determination of timely Counterpart funding Non-Formal share of 1998

to project account monthly payment endemic problem for education budget = 0.58%program;

Learner retention rates Improvement over time Over 80% completion rates Learner retention rates werehigh compared to other literacyprojects. Rate was more or lessconstant throughout project

Facilitator retention rates Improvement overtime over 85% Retention rates high comparedto other literacy projects.Dedicated facilitators, manywithout promised incentives;

____ _ _ _ __ ___________ may not be sustainableLiteracy/numeracy Improvement since mid- 3 learner assessments Increasingly positive results in

acquisition term review undertaken by NFED reading and numeracy; poorresults in writing

Research program Continued undertaking of studies undertaken, some Variable quality, difficult tostudies relevant to by NFED and others with connect study results toprogram quality help of external consultants changes in project

Community Improvement Improvement since Mid- Considerable activity No evaluation of developmentTerm Review undertaken in forestry, impact

agriculture, livestock,handicrafts, schoolconstruction.

Utility of Radio Increase in listening Utility of Radio not BIA reports wide use of radiosaudience from level at evaluated and high demand for radio

Mid-Term Review among leamersEffective Demand for Increase of sales of private A total of 6 marketing

Reading Materials publishers since Mid-Term events to promote sales ofReview GBPA books around the

country. No data on overallsales.

Income-generating Cash advances to 76 230 IGA groups supported Demand for IGA support high;activities literacy groups by IDA Credit Repayment rates low.

Agreement with NBSSI notsuccessful

** Indicators presented are SAR project completion targets; whereas outcomes are those at project closingon December 31, 1997.

22

Table 6: Studies Included in Project

Study Status __ Impact of study

I. Problems and Constraints Completed Revision of Incentives Package for LFSPII to attract more femalein Mobilization and Facilitators. Gender consultant was contracted.Participation of FemaleLearners in 2 selectedDistricts in Ghana2. Implementation of Completed Distinction made between development activities and reinforcementDevelopment Activities in techniques. This component of the program has become one of the areas ofFunctional Literacy Program l emphasis during facilitator and supervisor training programs.

3. Economics of the Completed Change in type of lanterns being procured.alternative lighting systemsused in the LFSP by ADAR

4. Radio Research [ Completed Audience survey carried out within the catchmerit areas of the 2 stations.Findings analyzed and a refresher course for the program producers isabout to take place.

5. 1st Impact assessment of Completed Revision in training content and methodology (RTT/DTT and facilitatorslearning achieved by final initial and refresher training).year Literacy Learners6. IstNationwide Leamer 1 Completed [Revision of scoring system.Assessment 1996. j _____Identification of areas of emphasis during training programs.

7. Evaluation of book boxes, jpCompleted I Change all book boxes to aluminum. During Phase Two the book boxes1996. will be distributed one to a class.8. Evaluation of post training 1 Completed 1 Revision of content of facilitators training.competencies of Facilitators, Preparation of handouts for trainers on content of the primer.December 1993. _ _ ___I9. Baseline Study prior to the Completed ir Baseline survey for radio usage recommended the use of the medium.commencement of radio j Based on the findings, 2 stations set up in the Volta and Northern Regions

10. Management, technical Completed Led to some changes in content of newspapersproduction and contentproblems of the ruralnewspaper. 11 11_1

11 Management and Completed Decentralization of development inputs.utilization of six development

||inputs supplied by NFED. 1112. The role of incentives Completed Revision of incentive package for LFSP II for both Terminal mid-termand rewards for facilitators in periodic incentive packages.the Functional Literacyprogram.

J 13. Impact Study in one pilot Completed Recommendations were fed into the program implementation in the areasand non pilot area - March 1 of training, logistics, supply and radio.1996. 1 !! - 1114. Problems in Completedimplementation of FLP -November 1992.

23

15. Baseline survey Completed Economic and social study of target established, and impact to be measuredin 2000.

16. Beneficiary impact Completed eesign of the FLP for LFSP. II (identify strategies to address some of theissues raised by first phase enhancing community ownership and

l ~~~~~~~~~~~~collaboration/sustainability .

Table 7A: Project Costs

Item Appraisal estimate Actual/latest estimate (USS)L____ (US$M)_Local Foreign Total Local Foreign Total

Basic Literacy Materials 1.2 3.8 5.0 0.6 1.77 2.37Support to Facilitators and Supervisors 0.4 3.6 4.0 0.1 1.1 1.2Post Literacy Materials 0.3 0.5 0.8 0.06 0.93 0.99Radio 0.1 1.7 1.8 0.1 1.7 1.8Research and Evaluation 0.5 0.6 1.1 0.62 0.99 1.61Institutional Strengthening 3.8 5.2 9.0 6.35 12.18 18.53Infrastructure 0.9 0.6 1.5 0.1 0.87 0.97Taxes and Duties 3.0 0.0 3.0 0.31- 0.31PPF Refinancing 0.0 0.8 0.8 0.052 0.0527. Contingencies: Physical 0.6 1.5 2.1

Price 0.7 1.1 1.811.5 19.4 30.9 8.24 19.60 27.84

TOTAL

Table 7B: Project Financing

Source Appraisal estimate (US$M) Actual/latest estimate (US$M)

IDA 17.4 16.97The Kingdom of Norway 2.9 2.63UNICEF 0.6 0.05Government 10.0 8.19

TOTAL 30.9 27.84

24

Table 8: Status of Legal Covenants

STATUSSELECTION NO. OF COVENANT C = In Comp. COMMENTS ACTION TAKEN OR

CREDIT/LOAN CD = Compliance REQUIREDAGREEMENT after Delay

CP = Comp. withPartiallyNC = Not inCompliance.NYD = Not yet

_______________________ ~~~~~~~~due3.01 (a) Government to open a commercial bank account to C The Government opened and is

meet expenditures under the project not financed by the operating the project account with acredit. commercial bank.

3.01 (b) Quarterly deposits into this accounts. C The project has experienced delays inthe implementation of somecomponents, due to delays in thequarterly deposits to the projectaccount.

3.03 Procurement governed by Schedule 3. C The printing of the Revised Primer wasparticularly late this FY. This delayedthe training of facilitators and thelaunch of the 1997 Literacy Cycle.Classes which were due to start byearly in October, had to be postponedto November 1, 1997.

3.04 Mid-term Review C Done April 19943.05 (a) Government to present plans to implement reward CThe incentive scheme for facilitators

system for facilitators and supervisors. needs to be improved. the acquisitionand distribution of incentives islagging. Facilitators are not completelysatisfied with the bicycles and sewingmachines that have been selected forthe incentives program.

3.05 (b) Carry out rewards system. C No comments.

25

STATUSSELECTION NO. OF COVENANT C = In Comp. COMMENTS ACTION TAKEN OR

CREDIT/LOAN CD = Compliance REQUIREDAGREEMENT after Delay

CF = Comp. withPartiallyNC = Not inCompliance.NYD = Not yetdue

3.06 (a) Government to present agreement with NBSSI. C NFED Agreement with NBSSI for theimplementation of the IncomeGeneration Activities (IGA) componentof the project is now beingimplemented by NFED. NBSSIpresence is limited to RegionalHeadquarters only, whereas NFEDreaches the districts and zones.

3.06 (b) Implement NBSSI credit facility. C NFED not satisfied with theimplementation IGA component byNBSSI. NFED has structures in alldistricts and zones, whereas NBSSIonly reaches Regional headquarters.NBSSI was thus relying on NFED tocollect data for its evaluation. NFEDdecided it would accomplish task byitself.

4.01 (a) Government to maintain financial records. C Government maintained satisfactoryfinancial records of project activities.

4.01 (b) (i) Government to have all project records and accounts C Audits of project accounts have beenaudited. available on time.

4.01 (b) (ii) present Audit to IDA C No audit reports overdue.

26Table 9: Bank Resources: Staff Inputs

Stage of Project Cycle Planned Actual

_________________________ Staff Weeks US$ ('000) Staff Weeks US$ ('000)21.3 51.1

Preparation -- Appraisal l33.8 81.8

Appraisal -- Negotiations22.7 50.9 121.0 214.7

Supervision*39.0 52.1 22.0 23.7

Completion* l

TOTAL 61.7 103.0 198.1 371.3*Planned information is only available for FY96, FY97, and FY98, and comparison with actual is not meaningful.

27Table 10: Bank Resources: Missions

________ |________ _____Performance Rating

Stage of Month/ Number Days Specialized Implemen. Develop.project cycle year of in staff skills Status objectives

persons Field represented1/91 3 22 TM, EdS,BS

Identification 6/91 9 21 EdS (4), PP, RS,through to ESEffectiveness 10/91 2 21 PP, EdS

I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~2/93 2 11 PP,EdS 2 2

Supervision 6/93 2 12 PP,EdS 2 212/93 2 9 PP,EdS 3 21/94 2 PP,EdS8/94 2 11 SEdS, PP U U12/94 2 9 SEdS, PP 3 24/95 4 9 SIS, 00, SOO, S S

EdS10/95 5 7 A, SIS, EdS, PA, U S

PS2/96 3 12 SIS, EdS, PS S S10/96 4 5 PS, SOO, SIS, S S

EdS, PA2/97 5 9 SIS, SOO, EdS, S S

PO, FA6/97 3 5 SIS, SOO, PO

Completion 9/97 6 16 SIS, ES, S, SOO, S S00, FA

EdS= Education SpecialistPP= Principal PlannerRS= Research SpecialistES=Evaluation SpecialistBS= Book SpecialistS= SociologistSEdS= Senior Education SpecialistSOO= Senior Operations OfficerSIS= Senior Implementation SpecialistPS= Procurement SpecialistA= AccountantPA= Projects AssistantFA= Financial Analyst00= Operations Officer

Africa RegionC:\VSCAN\LFSPICR.DOC

04/26/98 4:33 PM

28APPENDIX A

AIDE-MEMOIRERepublic of Ghana

Literacy and Functional Skills ProjectIDA (CR.2349-GH) - Norwegian Grant (T521795)

Supervision and Completion Mission

September 22 - October 10, 1997

1. An IDA mission3 supervised the Literacy and Functional Skills Project (LFSP) fromSeptember 22 through October 10, 1997. The mission's main objectives were to: (a) reviewprogress in completing project activities programmed through December 31, 1997(Credit/Grant closing date); (b) review progress in the implementation of the English Pilot;(c) assess progress in the preparation of the Beneficiary Impact Assessment (BIA) for LFSPand provide technical assistance as needed; (d) review status of the ImplementationCompletion Report (ICR), including GOG contributions, and discuss key sections; (e) reviewthe proposed 1998 Literacy Program; (f) discuss with NFED/PMU/MOE the framework forthe preparation of a second Literacy Project, (LFSP II); and (g) follow on the EducationSector Finance work relevant to the LFSP. The mission's work was framed by projectdocuments, prepared by NFED/PMU, and field visits to literacy classes in the AshantiRegion.

2. The mission wishes to thank Dr. Christina Amoako-Nuama, Minister for Education;Mr. Kwabena Kyere, Deputy Minister, MOE; Mr. John Darlymple-Hayfron, Chief Director,MOE; Ms. A. Korsah, Director General, PMU; Mr. A. Akuoko, Acting Director, NFED;and the staff of NFED and PMU for their customary support and cooperation.

Current Project Status

3. The LFSP is broadly achieving its development objectives and continues to supportthe GOG's long-term objective to combat adult illiteracy in Ghana. As the IDA credit andthe Norwegian Grant come to closure, it is noted that, overall, the LFSP has come a long wayin: (a) strengthening of the NFED' s institutional capacity; (b) monitoring and evaluating theliteracy program; (c) consolidating and improving the literacy program begun in 1990 toallow learners to become functionally literate; (d) ensuring access of literates to readingmaterials in local languages; and (e) expanding the coverage of FM broadcasting in supportof the functional literacy program.

4. The implementation of the project, however, has slowed down this year -- mainlybecause of weaknesses in planning and coordination of project activities, but also because of

3 The mission included Mmes/Messrs. I. Xenakis, Sr. Implementation Specialist (Mission Leader), M. Kilo,Education Specialist, J. Elder, Sociologist (AFTH3); G. Hancock, Sr. Operations Officer, T. Apronti,Projects Officer, and F. Yankey, Financial Analyst (AFGMH).

29a lack of counterpart funds. Several project activities, including training, printing of primers,and general logistics have been delayed. As a result, the opening of the new 1997-1999literacy classes has been postponed by one month (now re-scheduled for November 1, 1997)and several project activities programmed to be financed under the IDA credit and theNorwegian Grant may not be completed by the closing date, December 31, 1997. Theseactivities have been reviewed and will continue to be monitored by NFED_ and PMU. Amore detailed report on project activities is included in Annex 1.

Implementation Completion Report (ICR)

5. The Bank requires that the LFSP ICR -- a standard evaluation requirement for allBank supported operations-- be prepared by Bank staff and submitted to the Bank Boardwithin six months after the closing date of the LFSP credit. An evaluation of the LFSP by theGOG/MOE should be a significant part of the ICR. The ICR will be drafted also taking intoaccount the findings of the Beneficiary Impact Assessment (BIA) -- now under way (AnnexII). The mission will send a copy of the draft ICR to the MOEINFED/PMU prior tofinalizing it. The GOG/MOE contribution will be available by December 31, 1997. TheLFSP ICR will be a document critical for IDA's consideration of a second phase of IDAassistance to the GOG Literacy Program.

6. The preparation of an ICR is customarily discussed during the last supervisionmission before project closing (completion mission) -- that is, in the case of the LFSP, thismission. Among the key sections of the report are: the assessment of LFSP success,outcome, and sustainability; and lessons for future functional literacy operations or othereducation sector projects. The NFED staff conducted the first-round review, from theirperspective, of project accomplishments and lessons learned. The mission appreciatedNFED's rich insights and constructive feedback. From the mission's point of view, themessages coming from this exchange with NFED could be summarized in the following:

In the last five years (1992-97), the LFSP has delivered five batches of literacyclasses; recruited about 1,7i0,000 learners; experienced learner dropout rates of15-20% ; enlisted about 40,000 facilitators; and implemented all the componentsenvisaged under the project. After the mid-term review, April 1994,implementation improved gradually. Systems and processes were put in placeand tested, mainly in the last two years. In this respect, the extension of the IDAcredit and Norwegian Grant (twice, from 12/31/95 to 12/31/97) and DFID supportwere critical. The LFSP has had the support of the GOG/MOE and has taken rootin the communities and groups of people, including women, targeted by theprogram.

* Implementation lessons range over issues from institutional capacity (NFED/GES/PMU)to day-to-day field activities; and point to the importance of several factors withoutwhich the effectiveness of the Literacy Program would be compromised. These include:

Community involvementFunctional application of learningMaintaining a literate environmentQuality of training (facilitators)

30Classroom inputs and learning materialsFacilitator incentivesQuality of supervisionResearch, monitoring and evaluationLogistics and decentralizationInformation/Communication about the literacy program/activitiesCoordination with other literacy providers or demandsInstitutional (NFED) efficiencyProgram financing and sustainability

A preliminary synthesis of the lessons seems to suggest the need for improvements in theabove areas, as well as for the adoption by future literacy operations of an orientation andfocus ensuring that:

literacy skills are sustained and become more functional and responsive to learners'needs;the central role of the Functional Literacy Program in community development - andvice-versa - is recognized and capitalized upon;the Functional Literacy Program is a key part of the Ghana Education Sector.

Second phase of IDA assistance-- LFSP II

7. GOG/MOE has requested the Bank to provide continuous support to various levelsof education, and this has been reflected in the Bank's Country Assistance Strategy (CAS)for Ghana. In response to this request, IDA is contemplating further support to the GOGLiteracy Program through the Second Literacy and Functional Skills Program (LFSP II).

8. It is envisaged that the LFSP II would build upon successful experiences, cost-effective activities, and pilots in the on-going LFSP. It would target specific groups,particularly rural populations and female illiterates; continue to use local languages andperhaps English, depending on the outcome of the English pilot currently underway; andtake into account the findings and recommendations of the ICR. The mission understandsthat for the GOG to achieve its objective to increase adult literacy in the context of vision2020, access to literacy promoting activities would have to be increased. The proposedNFED targets for new learners are: 200,000 (1998-00), 300,000 (1999-01), 450,000 (00-02),500,000 (01-03 and thereafter).

9. To assist in the preparation of the LFSP II, the Bank has obtained a PHRD Grantfrom the Government of Japan to provide technical assistance to the NFED/MOE. Formalcommunication from the Bank to GOG on this issue is underway. The mission stands readyto help with the processing and implementation of the PHRD Grant Agreement.

* The mission understands that the GOG/MOE proposal for the second phase of IDAassistance to the Literacy Program, including the 1998 workplan, budget estimates, andfinancing plan will be sent to IDA by November 30, 1997.

Key Issues

3110. Completion of LFSP activities. There are several outstanding items underprocurement (Annex III) that may not be delivered by the closing date of the IDA Creditand the Norwegian Grant. Additionally, it is estimated that about US$ 240,000 of the Creditand US$ 528,000 of the Grant have not been committed or programmed to be spent by theclosing date December 31, 1997.

* PMU/NFED will review the programming of activities and the procurement schedule,including contract amounts, procurement methods and delivery dates, and advise IDA ofthe steps that will be taken to ensure that outstanding items and services are delivered andavailable funds utilized by closing.

11. Furthermore, inactivity of the Special Account (SA) for a prolonged period of timehas prompted the Bank to advise that the SA will close unless it becomes active shortly. Themission understands that an SA replenishment application, proposed for signature, has yetto be forwarded to IDA. This causes undue constraint to the project implementation at thiscritical stage.

- The mission urges MOE to submit the replenishment application to IDA soonest andpromptly collect documentation for subsequent Withdrawal Applications.

12. Counterpart funds. The implementation of the project has been constrained by thechronic lack of GOG matching funds. Currently, the balance in the project account is onlyabout cedis 56 million, an amount insufficient for the smooth closing of the project; totalGOG matching funds released to date amount to only 57% (c. 275 million) of the 1997allocation (c. 481 million). The mission understands that requests for budget release.havebeen followed in a timely fashion, and that the balance of the 1997 allocation (c.206 million)was requested on October 5, 1997. The mission was assured that MOE will follow on thispromptly.

13. Literacy Program financing. In view of the aforementioned financial constraints,it is critical to ensure adequate budget allocation to support the 1998 Literacy Program. It isnoted that, in the last two years, the GOG financial support to the LFSP -- in matching fundsand recurrent expenditures -- has decreased in real terms (Annex IV).

* GOG financial support for the 1998 Literacy Program will be an indication of itscommitment to the continuation of the GOG Literacy Program and the proposed LFSP IIwith IDA support.

32

APPENDIX B

REPUBLIC OF GHANAMINISTRY OF EDUCATION

NON-FORMAL EDUCATION DIVISION

DRAFT

IMPLEMENTATION COMPLETION REPORTLITERACY AND FUNCTIONAL SKILLS PROJECT

(CREDIT NUMBER GH 2349-GH)

EVALUATION OF THE BORROWER

33INTRODUCTION

1. Initially, literacy activities in Ghana were supported by GTZ through the Institute ofAdult Education and the Department of Community Development. In 1986, as part of theEducational Reform Programme (ERP), the Government of Ghana established the Non-Formal Education Division (NFED) under the Ministry of Education, and charged it with thetask of coordinating all non-formal education activities in the country. At that time, non-formal education was defined as "all organized and semi-organized educational activitiesoperating outside the regular framework of the formal education sub-sector and aimed atservicing various learning needs of different sub-groups of the whole population". The 1984census had estimated the number of illiterates in Ghana to be about 6,000,000, with acumulative effect as the population grew.

2. With the introduction of PAMSCAD in 1988, Overseas Development Agency(ODA, now DFID) provided assistance to NFED to the tune of 1.4 million sterling. UJNFPA,UNICEF, WHO, Canadian Organization for Development Education (CODE), the BritishCouncil, and IDA were among the initial collaborators. In 1989, the Functional LiteracyProgramme was introduced on a pilot basis in the Winneba-Apam, and Tono-Vea areas of theCentral and Upper East Regions respectively. With the signing of the IDA Credit 2349-GHin 1992, the Literacy and Functional Skills Project was almost solely funded by the WorldBank Credit, accompanied by a grant from the Kingdom of Norway, with the Government ofGhana providing matching funds.

PROJECT OBJECTIVES

3. Project objectives were outlined as follows: a) assist in strengthening theinstitutional capacity of NFED to manage effectively the entire literacy program; b) ensurethat all program aspects are subject to frequent evaluation and monitoring, and that researchand evaluation become key inputs in the development of any new initiatives; c) improve theexisting literacy program so that a large proportion of the 840,000 adults who participatebecome fully literate; d) ensure that all new literates, whether from the school system orfrom the literacy program, have access to a range of reading materials in Ghanaian languages;and, e) help expand the coverage of the FM broadcasting system to support the functionalliteracy program and to increase the frequency of educational broadcasting in the Ghanaianlanguages.

PROGRAMME OBJECTIVES

4. The objectives of the National Functional Literacy Programme were defined asfollows: (a) to enable participants to better meet their personal and social needs throughenhancing their abilities to deal competently with everyday life in a literate community; (b)to equip learners with the knowledge, attitudes and skills that will enable them raise thequality of life in their community; (c) to enable learners improve upon their occupationalskills through functional literacy; and (d) to broaden the reading interests of learners andestablish an attitude of reading for pleasure through the provision of follow-up readingmaterials. The programme was particularly aimed at improving the quality of life of thepoorest Ghanaians, especially those living in rural areas, with an emphasis towards targetingwomen.

34

ACHIEVEMENT OF PROJECT AND PROGRAMME OBJECTIVES

5. NFED has been successful in achieving the main objectives of the literacyprogramme, having enrolled over 1.3 million learners since its inception, over 60% of whomhave been women, with most of the learners in rural communities. Monitoring visits andlearner assessments carried out by NFED revealed that the teaching of the 3Rs was quitesuccessful. NFED has been strengthened institutionally through management training, multi-purpose, initial, refresher and specialized training provided for NFED staff, facilitators andsupervisors as required. NFED initially entered into agreements with a total of sevenorganizations (GNAT, GBPA, GBC, NSS, NBSSI, New Times Corporation, and the Ministryof Information), and made attempts to collaborate with NGOs and other providers of literacyin the country. During the implementation of the project, NFED worked closely withNuffic/CESO to improve on its research, monitoring and evaluation capacity.

6. The research unit carried out about 10 studies (lighting systems, developmentinputs, classroom teaching and female participation, evaluation of bookboxes, etc.) toimprove the implementation of the programme. For example, the study on developmentsinputs recommended the decentralization of procurement of some programme inputs.Income Generating Activities continue to interest learners, but only 230 out of 48,000literacy groups were supported with small credits under the project. The agreement with theGBPA never resulted in the creation of a literate environment even after NFED doubled itsprocurement of books for bookboxes, and funded six bookfairs around the country.However, NFED transformed the rural newspaper into a community newspaper aftersuccessfilly piloting the silk-screen technology, thus encouraging local communities toincrease their access to print materials. The BIA described the radio as vital forcommunication in rural communities, but NFED still has to capitalize on this medium.

IMPLEMENTATION EXPERIENCE AND RESULTS

7. The National Functional Literacy Programme was quickly expanded to cover fifteen(15) languages on a national scale in the early part of 1991, even before the pilot at Winnebaand Tono had taken root. In 1992, with the involvement of IDA, emphasis was placedconsolidating the existing levels of coverage rather than further expanding the programme,with priority placed on the creation of a literate environment. Further, supervision missionsrecommended the training of staff in research, monitoring and evaluation, and theengagement of consultants to provide technical support to NFED. Focus was placed on thecore literacy activities through supervision and the production of materials for learners.GNAT supervisors were replaced by the members of the Association of Committees for theDefense of the Revolution (ACDR). However, not all supervisors have received them, norhave sufficient numbers of bicycles been distributed to female facilitators.

8. Training of facilitators and supervisors in the effective running of the ManagementInformation System (MIS) planned under the collaboration with Nuffic/CESO has yet to becarnied out. Collaboration with other literacy providers such as GILLBT and Gonja LiteracyProject has been abrogated in view of the decentralization of the production of community

35newspaper. The silk-screen pilot was made nationwide in 1997, bringing to an end thecollaboration with New Times Corporation. NFED collaborated with NSS to compile its"Success Stories".

PERFORMANCE OF THE BANK

9. The Bank has provided considerable guidance and support throughout theimplementation of the programme, and has been particularly responsive during the past fewyears. Bank staff may not have participated directly in training NFED staff, but contributionsmade during missions helped programme staff build on their shortcomings, making forcapacity building. The Baseline Survey was helped tremendously by this support; whenNFED staff raised the problem of data processing due to lack of software and staff time, theBank suggested that the activity be out-sourced. Similarly, comments on the quality of theassessment report led the Unit to review the data collection tools, and to upgrade the currentdata making the results more interesting. Mission evaluation and approval of activities in theOperational Plan led to improvements in project implementation, and cut through the numberof requests for "no-objection". On a few occasions when the Bank's directives were notclearly communicated, some decisions like the lighting system adversely affectedimplementation.

RECOMMENDATIONS

10. For improved implementation of the next phase of IDA funding, the followingrecommendations should be considered: (a) Procurement procedures should includedecentralized local shopping for special items, especially some class inputs such aschalkboard and easels; (b) For the creation of a literate environment, at least one bookboxshould be provided per class; (c) Greater emphasis should be placed on the functionalityaspect of the literacy programme which was not well implemented during the first phase ofthe programme; (d) Categorization and allocation of credit funds should be made to reflectNFED needs and its Operational Plan; (e) Greater support should be earmarked for IGAgroups; (f) All supervisors should receive a motorbike; (g) Budgetary allocation should bemade for the Field Operations Section to allow for follow-up visits to the field, to ensure thatprompt corrective measures take place to improve programme delivery at the grassrootslevel; and (h) District Assemblies should be made signatories to all project funds allocatedto districts as a first stage checking system.