The document discusses educational reform in Osaka, Japan that introduced competition between public and private high schools. The reform aimed to enhance educational quality, allow student choice regardless of economic status, and minimize fiscal expenditures. It did this through a subsidy program for private school tuition. Large-scale research was conducted to design the program, which provides free tuition for families below an income threshold and reduced tuition below a higher threshold. Results showed increased private school enrollment and competition among public schools for candidates.

1. Educational Reform in Osaka Introducing Competitive Circumstances between Public Schools and Private Schools Using a Subsidy for Private School Tuition Dr. Tomitaro Kitami, Esq. Osaka Prefectural Government, Japan May 25th, 2011, Taipei

2. Outline 1. A Brief Overview of Education System in Japan 2. Aims and Measure of Educational Reform in Osaka a. Three Aims of Educational Reform b. Measure: a Subsidy for Private School Tuition 3. Osaka’s Innovations a. “Policy Marketing Research” b. Program Design 4. Results and Conclusions

3. A Brief Overview of Education System in JapanPosition of High School (Upper Secondary School) in the System ☞ High school education is considered as de facto compulsory education in Japan. Fig.1

4. A Brief Overview of Education System in JapanPosition of Private School in the de facto Compulsory Education ☞ Private schools have 30% share of enrollment and complement necessary facilities in the de facto compulsory education. Fig.2 Fig.2

5. A Brief Overview of Education System in JapanRelationship between Public Schools and Private Schools ☞ Total number of students hit its peak in 1980s and dropped steeply and Osaka’s Board of Education asked private schools for help in order to meet the increasing demand for school facilities in 1970s. Fig.3

6. Aims and Measure of Educational Reform in OsakaThree Aims of the Educational Reform The First Aim ☞ Enhance educational quality by introducing competitive circumstances between public and private high schools ➣ The enrollment quota was set to public and private schools, 70% and 30% respectively, in 1982 at the latest. ➣ As a result, competition between public and private schools had been controlled.

7. Aims and Measure of Educational Reform in OsakaThree Aims of the Educational Reform The Second Aim ☞ Enable students to choose high schools based on their wishes and abilities regardless of their economic conditions Table 1

8. Aims and Measure of Educational Reform in OsakaThree Aims of the Educational Reform The Third Aim ☞ Minimize fiscal expenditure by properly shifting student enrollments from public to private schools Table 2

9. Aims and Measures of Educational Reform in OsakaMeasure: a Subsidy for Private School Tuition ☞ Two important elements to realize proper competitive circumstances are found. Table 3

10. Osaka’s Innovationsa. “Policy Marketing Research” ☞ A large scale research was conducted. ☞ Statistically estimated and analyzed Fig. 4 Fig. 4

11. Osaka’s Innovationsb. Program Design ☞ The details of the Osaka’s program Fig.5 ➣ National government has already established a local subsidy to waive public high school tuition in FY2010. ➣ Governor Hashimoto changed it into a more meaningful policy by expanding existing small subsidy: － Free tuition program for private school students from families having less than ￥6.1 million annual income. － Tuition reduction program for students from families with more than ￥6.1 million and less than ￥8 million income. Their tuitions are reduced up to ￥100,000. ➣ Total budget amounts to ￥ 11 billion (131 million US$) in FY2011 and will be tripled on the completion of the program.

12. Osaka’s Innovationsb. Program Design ☞ Innovations regarding recipient’s eligibility as for income level Recipient’s eligibility as for income level is introduced so as to make 50% of all households are eligible for the free tuition program and up to 70% for the reduced tuition program. ➣ Avoid giving extra advantages to high income students. ➣ Avoid limiting competitive effects to small group of candidates.

13. Osaka’s Innovations b. Program Design ☞Innovations regarding private schools’ autonomy for education Private schools’ autonomy for education is maintained but restricted as for their tuition-setting power (i.e. private schools are obliged to set their tuitions no more than ￥580,000 per year if participate in the system). ➣ Avoid abolishing educational diversity by making “quasi-public school.” ➣ Avoid exploiting the subsidy as bailout for private schools with managerial difficulties.

14. Results and Conclusions ☞ The results are being examined but considerable effects are shown. - The rate of private school-oriented candidates rose up to 27.02 points from 21.46 in the previous year. - Some public schools attracted more candidates than ever while the majority of them could not recruit sufficient candidates to meet their capacity.