did not change much, but deteriorating education quality and equity may have serious implications for Costa Rica's education system over the long term. The literature does not assess the effects of adjustment on the education sector, despite relatively good data that are as recent as 1988 and that include quality and equity indicators. The 1985 SAL did not explicitly target education and apparently did not influence deteriorating trends.

5.09 Education spending as a percentage of total government spending and GDP declined from 1980 to 1986. Real public education expenditures were lower in 1985 than in 1975. However, the coefficient of vulnerability for education (the ratio of the change in public education spending to the change in total public spending) between 1980 and 1985 of 0.75 suggests that education was protected relative to total government spending during a period of declining public expenditures (World Bank, 1990d).

5.10 Because real education spending fell while enrollments rose (by less than one percent annually from 1980 to 1985), real per student education expenditures declined by one-third from 1980 to 1986. The greatest declines were from 1979-1982, but expenditures in 1986 had not yet recovered their 1980 levels. Within the recurrent budget, teaching materials received less than 0.5 percent of the budget. Repeater and promotion rates worsened after 1980, and the difference between the number of years to produce a primary graduate and the number of years in the system increased from 1.2 in 1980 to 1.8 in 1985. Deterioration continued throughout the decade, although not as rapidly after 1985. Primary education's share of the public education budget increased after 1980 but remained far below the 1970 level of 51 percent.

# GHANA

5.11 Economic mismanagement and adverse external developments (deteriorating terms of trade) during the early 1980s together were responsible for declines in production in all sectors of the economy, especially exports and food. In 1982 and 1983, prolonged drought, the sudden influx of one million Ghanaians from Nigeria, and the falling price of cocoa aggravated a critical shortage of foreign exchange, high inflation, and an increasingly overvalued exchange rate. Real GNP and GNP per capita were lower in 1984 than in 1974, reaching their lowest point in 1982.

5.12 In addition to a macroeconomic adjustment program, Ghana simul aneously undertook education sector adjustment with Bank assistance. The government introduced an adjustment program in 1983 with World Bank and IMF support. IMF stand-by agreements coincided with the first World Bank adjustment operations (import and export development SECALs in 1983, 1984, and 1985). SECAL conditionality included a 60 percent increase in civil service salaries. Other World Bank adjustment loans followed annually through 1990 (SALs in 1987, 1989, 1990). SAL conditionality emphasized civil service reform (retrenchment and wage controls--arresting the SECAL policy of wage increases) and budget rationalization, including a review of non-wage recurrent expenditures and the development of budget guidelines for recurrent expenditure allocations in education. Reforms also emphasized the rehabilitation of physical and social infrastructures. Ghana is the archetypal education sector adjustment case, with two 39