i1.08 The standard medium-term focus of the<sup>PER may put the education sector,</sup> much inore than the economic sectors,<sup>at a disadvantage when it comes to maintaining</sup> quantitative and qulAitative standards of service<sup>in the face of global resource constraints.</sup> Indeed, the burden of economic<sup>adjustment and government retrenchment falls</sup> disproportionately on education and other<sup>social sectors.- Since this review is limited to</sup> the evidence provided in PERs, the<sup>issue will only be touched upon tangentially. More</sup> important, this review emphasizes the<sup>need to strengthen the integration of se'tor policy</sup> issues and priorities within the macroeconomic<sup>framework.</sup>

1.09 After a brief review of the justification<sup>and operational context of PERs, section</sup> II discusses the relationship between<sup>global and sector issues. In particular, it assesses</sup> how the economic situation affects education,<sup>and how well education PERs reflect the</sup> main macroeconomic constraints and<sup>concerns. Section III reviews the treatment of sector</sup> cost and financing. The review culminates<sup>in a comparative analysis of sector financing</sup> strategies emerging from PERs (section<sup>IV), and an assessment of quality and methodology</sup> issues (.ection V). Conclusions and<sup>recommendations are included in section VI.</sup>

# C. Coverage

1.10 This study is from a detailed review of<sup>selected PER and PIR reports produced</sup> in the five-year period 1985-90.<sup>Fol!owing a broad initial review, it was concluded that</sup> pre-1985 reports are of limited relevance<sup>to the present PER format, which reflects greater</sup> standardization, as well as increased breadth<sup>and depth of coverage. Many PERs refer to</sup> other Bank studies covering sector<sup>cost and financing issues. For comparative purposes,</sup> an additional number of these self-standing<sup>education PERs were selected to complement</sup> the formal, multisector PER reports.<sup>All together 52 reports covering 36 countries were</sup> reviewed (21 in Sub-Saharan Africa;<sup>2 in Asia; 5 in Europe, the Middle East, and Northern</sup> Africa; and 8 in Latin America<sup>and the Caribbean).</sup>

1.11 For the purpose **of** analysis across countries,<sup>the sample was reduced to one</sup> report per country--that is, to 36 reports<sup>(see annex II). This involved selecting one report</sup> for each of the 12 countries with more<sup>than one report in the total sample. The selection</sup> was made according to the reports' coverage<sup>of essential issues. In cases of equal ratings,</sup> preference was given to the most recent<sup>documents and to formal PERs. The focus was</sup> thus maintained on PERs, but without<sup>excluding other important education expenditure</sup> studies. The sample includes 21 standard<sup>(multisector) PERs, 3 PIRTh, and 12 other CESW</sup> reports, of which 6 are self-standing education<sup>PERs. All together, there are 28 multisector</sup> reports and 8 reports covering only the<sup>education sector.</sup>

i/See, for example, Andrea Cornia, Richard<sup>Jolly, and Frances Stewart, eds., Adiustment</sup> with a Human Face. UNICEF. Oxford:<sup>Clarendon Press, 1987.</sup> 3