The Economics of Publishing Educational Materials in

The Economics of Publishing Educational Materials in Africa

PERSPECTIVES ON AFRICAN BOOK DEVELOPMENT Titles in the series 1 Cost Effectiveness of Publishing Educational Materials in African Languages, English and French editions, ed. Maureen Woodhall 2 The Economics of Publishing Educational Materials in Africa, English and French editions, Walter Bgoya, Nigel Billany, Marita Lujanen, Richard Noonan, Timo Paajanen, Eero Syrjänen 3 A Bibliography of Publishing and the Book Chain in sub-Saharan Africa, 1996, Hans Zell In preparation Les habitudes de Lectre en Afrique sub-Saharienne et les Apprentisages Traditionnels, Sophia Gazza Distribution and Dissemination Systems for Educational Materials in West Africa, Chief Aigboje Higo and Philippe Gabriel Accessibility to Educational Materials by the School Population in Africa, ed. Diana Rosenberg Fiscal and Legal Constraints to Intra-African Trade in Books

Perspectives on African Book Development

p

2

The Economics of Publishing Educational Materials in Africa

Walter Bgoya Nigel Billany Marita Lujanen Richard Noonan Timo Paajanen Eero Syrjänen

D EA

working group on books and learning materials Association for the Development of Education in Africa

© ADEA Working Group on Books and Learning Materials 1997 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means (including photocopying and recording), without the prior permission in writing of the copyright holder. Within the UK, exceptions are allowed in respect of any fair dealing for the purpose of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act, 1988, or in the case of reprographic reproduction in accordance with the terms of licences issued by the Copyright Licensing Agency. Enquiries concerning reproduction outside those terms and in other countries should be addressed to the publisher, at the address below. British Library Cataloguing in Publication Data The economics of publishing educational materials in Africa. – (Perspectives on African book development) 1. Educational publishing – Africa – Cost effectiveness I. Bgoya, Walter et al 070.5’096 Library of Congress Cataloguing in Publication Data A catalogue record for this book has been requested Published by the Working Group on Books and Learning Materials of the Association for the Development of Education in Africa PO Box 2564, London W5 1ZD, United Kingdom First published 1997 ISBN 1 901830 02 0 A French edition of this book is available: ISBN 1 901830 03 9 Distributed by ABC, African Books Collective Ltd., The Jam Factory, 27 Park End Street, Oxford OX1 1HU, United Kingdom Tel: +44-(0) 1865-726686 Fax: +44-(0) 1865-793298 Email: [email protected] This book was originally prepared as a research study by Opifer Limited, Urho Kekkosen Katu 4–6 F, 00100 Helsinki, Finland Packaged by Aldridge Press 24 Thorney Hedge Road, London W4 5SD Editorial: Charlotte Rolfe Design: Geoffrey Wadsley Cover artwork: Tayo Fatunla Production (UK) Typeset in Trump Medieval, Lithos, Futura, Artefact Printed and bound in Great Britain by Antony Rowe Ltd., Chippenham, Wiltshire

CONTENTS

vii

Preface

ix

List of abbreviations

xi

1 Introduction Background Methodology

1 1 2

2 Essentials of textbook publishing The environment of textbook publishing The textbook publishing process Critical issues

5 6 8 14

3 Market structures and publishing systems Policies, objectives, strategies Current trends The monopoly structure Transitional market structures The free market structure Other scenarios Modes of textbook provision

17 17 19 21 24 28 31 38

4 Demand and supply The quality and quantity of textbooks Financing needs

41 41 46

5 Publishers: size, product and ownership Staffing and effectiveness Volume and value of sales Range and specialization The issue of ownership

49 49 50 51 52

Contents

Foreword

55 55 55 56 60 63

7 Patterns in purchasing and funding Purchasing of textbooks The cost structure of publishing Pricing principles and their application A publisher’s financial requirements Government and donor interventions

69 69 73 78 85 88

8 Looking ahead: issues and priorities The major constraints Implementation strategies

97 97 101

Appendices 1 Terms of reference 2 Respondent countries and contacts 3 Background facts on sample countries

109 115 117

Glossary of publishing terms

135

Bibliography

139

Index

143

Contents

vi

6 Publishing functions in a changing environment Market research The influence of education policies Preparation and evaluation of manuscripts Aspects of production Marketing: information flow, selling, distribution

vii

Education is a social affair, and the prime investor is supposed to be society, through government. If all goes well with education in general, it is likely that all will go well with educational publishing, too; there is a high degree of correlation between the quality of education and the availability of educational books. This publication is therefore primarily addressed to government policy makers and decision makers, to those who have the power to enhance or constrain textbook publishing in sub-Saharan Africa. From our recent research findings concerning a representative sample of sub-Saharan countries it is clear that far too many policy makers have yet to begin their real work on policy development in this field. This situation is reflected in a lack of policies that support, encourage and monitor publishing industries, a lack of clear short- medium- and long-term objectives, and a lack of strategies for achieving those objectives. Education and educational needs, including textbook publishing, are usually given high priority in speeches, but lower priority in actions. It is easier to find examples of negative rather than positive influences. The contents of this publication, will, it is hoped, be useful for donors as well as governments; their funds are still desperately needed to revitalize the education systems in most African countries before there can be any real hope of achieving sustainable processes. We do not intend to deter other participants in the textbook publishing process from reading this publication, but it is not intended to be a manual on textbook publishing; it is primarily a guide to the environment of textbook publishing for use by those who seek suitable policies and strategies. Everything begins with an understanding of problems, and therefore we would like those readers who are not familiar with publishing as a business to consider the broad issues presented in Chapter Two Essentials of textbook publishing. A view of the book publishing industry, its environment, the roles of its main players

Foreword

Foreword

viii

Foreword

and its critical issues is needed before concentrating on policies and strategies. Unfortunately, the data collected from the field in the course of this study has been very sparse, though this has more often been a reflection of the absence of data rather than an unwillingness to provide information. In fact, as a result, one of our main recommendations is to improve the collection and analysis of data so that publishers can reach a more thorough understanding of their markets and customers, and the authorities can interpret the nature and needs of the industry more effectively. In addition to the paucity of general information on the book trade in Africa, we have found that publishers are often unwilling to divulge what they consider to be commercial secrets, and so it has been extremely difficult to build up a picture of the economics of publishing based on empirical data. The field stage of the study, however, included interviews in the sample countries, so much of the information given in Chapters Three to Seven is either supported by or sometimes based wholly on these interviews and analyses. The full list of contacts for the study would run to several hundred names, and so we have presented only the field assistants or contacts for each of the sample countries. We do not offer any universal model or models for textbook publishing in Africa, since there is a wide variety of possible modes and even functional strategies that a publishing industry can adopt. It would be a mistake to believe that any system which has worked well in one country can necessarily be successfully applied in different circumstances, let alone in another part of the world. That mistaken assumption, however, is, sadly, often one of the guiding stars of influential outsiders such as donors and consultants.

Preface

The list of contributors to this publication is very extensive: it includes officials from donor and recipient countries, staff of publishers, booksellers and printers, both public and private, consultants, researchers, educationists, translators. The work of the study team has been to collate and analyse the knowledge and experience of these contributors. We should like to thank all those who have given freely of themselves to guide and assist the work of the team and to provide the data on which this study and its analyses are based. We do not intend to single out individuals, but the team wishes to express its collective thanks to the ADEA Working Group on Books and Learning Materials and to APNET for initiating the process that led to the study and for assisting with identification of resource personnel across the continent. We particularly wish to thank our research assistants in the sample countries for managing the interviews and for collecting other data, often under very trying circumstances. All the research assistants are directly involved in the publishing industry, and their daily efforts will be the basis of any real improvements in textbook publishing in Africa. We hope that the findings, recommendations and suggestions resulting from this study will also contribute to those improvements. Helsinki, January 1997

OPIFER LIMITED

ix

Preface

Eero Syrjänen Walter Bgoya Nigel Billany Marita Lujanen Richard Noonan Timo Paajanen

Abbreviations

ACCT

Agence de Cooperation Culturelle et Technique

ADEA

Association for the Development of Education in Africa

ADB

Asian Development Bank

AfDB

African Development Bank

APNET

African Publishers’ Network

BDC

Book Development Council

BMU

Book Management Unit (Tanzania)

CASS

Centre for Applied Social Sciences (Namibia)

CIDA

Canadian International Development Aid

CODE

Canadian Organization for Development through Education

DAF

Directorate of Administration and Finance (Mali)

DANIDA Danish International Development Assistance DHF

Dag Hammarskjöld Foundation

DSE

German Foundation for International Development

ERIC

Educational Resources Information Centre: Database

EU

European Union

xi

GTZ

German Agency for Technical Cooperation

IDA

International Development Agency

IIEP

International Institute for Educational Planning

INEADE

Institut National d´Études et dÁction Pour le Développement de lÉducation

IPN

Institut Pédagogique National (Mali)

JKF

Jomo Kenyatta Foundation (Kenya)

KLB

Kenya Literature Bureau

KSES

Kenya School Equipment Scheme

LPM

Librairie Populaire du Mali

MIE

Malawi Institute of Education

MoE

Ministry of Education

NAMAS

Namibian Association of Norway

NEA

Nouvelles Éditions Africaines

NGO

Non-government organization

Abbreviations

FINNIDA Finnish International Development Authority

NORAD

Norwegian International Development Aid

ODA

Overseas Development Administration (UK)

PAWA

Pan-African Writers Association

SADC

Southern African Development Community (SADCC before August 1992)

Sida

Swedish International Development Cooperation Agency

TIE

Tanzania Institute of Education

UNDP

United Nations Development Programme

xii

UNICEF

United Nations Children´s Fund

USAID

United States Aid for International Development

VAT

Value Added Tax

Abbreviations

UNESCO United Nations Educational, Scientific and Cultural Organization

p

Chapter One

Introduction

Background

Its purpose was to analyse trends, identify dependency on the general conditions and prerequisites of industrial development, as well as to make recommendations for a variety of different situations. 1

Chapter One INTRODUCTION

The study featured in this publication was initiated by the Working Group on Books and Learning Materials of the Association for the Development of Education in Africa (ADEA). Bids for carrying out the study were invited in May 1995 by the International Institute for Educational Planning (IIEP) within the framework of the UNESCO and the contract between Opifer Ltd, a Finnish consulting company and the IIEP was signed in January 1996. The final working plan was approved by the ADEA working group in January 1996. The study’s terms of reference are included in Appendix One (see page 109). The purpose and justification of the study rose from concern over the lack of suitable educational materials in African schools. As the introduction to the study’s terms of reference states: ‘The relationship between adequate, sustained provision of educational materials to classrooms and children’s educational performance is well established. Consequently, the failure to deliver sufficient and appropriate educational materials seriously reduces the value of other educational investment.’ The study concentrated on three main areas concerning textbook publishing in Africa: 1. The business environment 2. The publishing industry 3. The critical success and failure factors related to book provision.

Methodology

Questionnaires by institution were returned as follows: – Ministry of Education (12) – Ministry of Finance (8) – Ministry of Trade/Industry (6) – Publishers’ Association/National Book Council (10) – Educational publishers (34 from 12 countries) – Booksellers (31 from 15 countries)

2

All the returned questionnaires contained substantial gaps in educational statistics and quantitative data on textbook production, sales and financial information. On the other hand, many of the respondents gave extra information in addition to that requested in the questionnaires. A general fact sheet is included in this publication for each of the sample countries (Appendix Three), showing basic economic, demographic, geographic and educational data. The purpose of these is to simplify comparisons between countries and to show some macro-level trends in the sample countries. The fact sheets

THE ECONOMICS OF PUBLISHING EDUCATIONAL MATERIALS IN AFRICA

Primary data for the study was collected through questionnaires which were distributed to 19 sub-Saharan African countries (except South Africa which was not included in the study objectives). In each country, the questionnaires were delivered to various organizations concerned with textbook provision. These included: Ministry of Education, Ministry of Finance, Ministry of Trade/Industry, Publishers’ Association/National Book Council (where applicable), educational publishers and booksellers. The questionnaires (in English, French and Portuguese) were tested by direct interviews in some of the sample countries and their return was ensured through local research assistants/consultants in the sample countries (see Appendix Two on page 115). In addition some of the sample countries were visited by consultants for direct interviews with organizations and individuals in the trade. The final sample (18 countries) included in this publication is larger than the original (13 countries). This expansion was found necessary during the piloting of the questionnaires, when it was noticed that the statistical basis for quantitative data would be poor. Questionnaires were returned from following countries: 1. Benin 7. Kenya 13. Nigeria 2. Botswana 8. Lesotho 14. Senegal 3. Cameroon 9. Malawi 15. Tanzania 4. Ethiopia 10. Mali 16. Togo 5. Ghana 11. Mozambique 17. Zambia 6. Ivory Coast 12. Namibia 18. Zimbabwe

3

Chapter One INTRODUCTION

should be of particular use to readers from the non-sample countries as reference items. Secondary data for the study was collected through published and unpublished documentation. A search of the UNESCO and ERIC databases was applied, and a bibliography published by Hans Zell was utilized for mapping out relevant literature. The bulk of published information relating to educational publishing is based on studies carried out during the 1980s and thus has a limited use in the often dramatic changes in the general economic conditions of the 1990s. There are no earlier comprehensive studies on textbook publishing in Africa. Lack of statistical information, particularly on specific economic data of publishing, has made it possible to provide statistical comparisons only on a very limited scale. The data analysis reflected in this publication is therefore based on a qualitative rather than statistical method. Nevertheless, this qualitative analysis gives a framework for understanding the problems, drawing conclusions and giving recommendations for the workable and sustainable provision of textbooks.

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Chapter Two

5

Publishing in different parts of the world differs very little in some ways and very much in others: there are no specifically African publishing processes, and neither are there any specifically European or American publishing processes. In any context, publishing houses may apply very similar or widely different approaches to any part of the process. Thus, this Chapter does not attempt to describe African publishing per se. It is intended only to set the background for readers who are not closely familiar with the publishing process. It presents the authors’ view of textbook publishing and its functions, and it is used as the basis for the analysis in later chapters. Book publishing is a part of the mass media. It offers reading in book form for educational purposes, general knowledge and leisure. Products of publishing can be listed as textbooks, fiction, nonfiction, reference books, and so on. Firstly, publishing means the creation or initiation of a work (book); an idea for a publication becomes concrete through the preparation of a manuscript. Secondly, publishing is essentially related to organizing the various functions of publishing: writing, editing, designing, production, marketing, selling, distribution. Thirdly, publishing also means financing the whole process. Thus, a publisher is the person or company (publishing house) responsible for these activities. Some publishers produce books in all categories. They are generalists who want to establish the volume of their business through a broad range of titles. A publisher can also specialize in one category of books, or even in selected topics only. The larger the marketplace, the more opportunities there are for specialists. On the other hand, in order to survive in a small market a limited number of publishers tend to publish right across the range. In market economies, a publisher makes the choice of what he or she would like to publish. This choice is based on the available human resources (skills, experience) and the business targets (volume, profitability) of a publisher.

Chapter Two ESSENTIALS OF TEXTBOOK PUBLISHING

ESSENTIALS OF TEXTBOOK PUBLISHING

Not all publishers are professionals who concentrate only on publishing. A publishing industry often includes a large number of associations and other interest groups which publish a few titles from time to time for their own purposes. In the context of this publication, publishing is defined primarily as educational publishing, but most of the facts, opinions and comments can also be related to book publishing in general.

The environment of textbook publishing Publishing as an industrial process Figure 2.1 below describes the environment of textbook publishing. Publishing should be viewed as an industrial process and assessed, like any other business, according to its effectiveness in the utilization of human, financial and physical resources. A publishing enterprise, like any other, is dependent on the skills and experience of its staff, the level of management skills, the organization of its functions, the establishment of systems and, finally, on financial results. Effectiveness in using resources is equally necessary, whether the mode of publishing is public or private.

The environment of textbook publishing

M AC

Systems

rt

po

Personnel Publishing policy • objectives • strategy

Demand

Exa m sys inatio tem n

Economics Management n

Co n

Leadership

ati o

tr o

Organization

l

Competition Curriculum development

Tr a d e

Go

6

BL I S HI NG

ve r

nm e

g

PU

M

r in

t rke Ma ential t po

AT I ON SY S T E

ee

UC ED

St

Su p

NT ER VE N T I O LIC I NS

Teacher competencies

res t r i c t i on s

ol n t fi sc a et p l a nd bu dg

ic i e

s


B PU

R O EC O N O MY

Ta x

Figure 2.1

In a competitive environment, the success of a publishing company can be measured against the results of other publishers or against indicators of international publishing. International competition is becoming more and more extensive in book publishing and forces publishers everywhere to increase their competitiveness.

Textbook publishing: hand in hand with education Publishers serve education, and are highly dependent on the needs of the education system. Quantitative needs are based on numbers of students, book/student ratios and the lifespan of textbooks. Qualitative needs are defined by education authorities, buyers, users and publishers, or all of them together. Books, textbooks in particular, reflect the goals and targets of education by following curriculum development and examination systems, and by promoting new teaching and learning methodologies. Authors of textbooks must also be fully aware of classroom situations, teacher competencies and the overall education environment. Textbook publishing is interlinked with education, for better and for worse. If a society (government, communities, parents) invests in education, there are also opportunities for publishing. Conversely, if there is inadequate money for schooling, then textbook publishing suffers as well.

A government can either support and enhance textbook publishing or constrain it and make life more difficult for publishers. The most significant support a government can give to textbook publishing is investment in education. If funds are available for educational materials, publishers are able to invest in the production of textbooks to the required quantity and standard. Government can also reduce or remove sales tax on textbooks, so that the affordability and purchase of textbooks can be made as easy as possible for schools and private buyers. On the other hand, a government can hinder textbook publishing, for example through trade restrictions or high taxation. Unfortunately, contradictory interventions are not uncommon. For example, if the publishing industry is entirely dependent on imported paper and there are high rates of taxes and duties on paper, this naturally makes textbooks expensive. On the other hand, the same government that determines the taxes and duties may be the sole buyer of the textbooks, and thus simply takes money from one pocket to put it into another. 7


Effects of government intervention

Macroeconomic influences The publishing industry, like any other industrial sector, either benefits or suffers from macroeconomic factors such as inflation, the state of government budgets, or the strength of the exchange rate. The performance of the macroeconomy is crucial for education and thus for textbook publishing. Governments are the major caretakers of basic education and as such responsible for finance, too. This is particularly the case if basic education is promised for all and made compulsory. However, in practice the government budget is often far too small to keep such a promise; savings may be directed at textbooks, and the resulting book/pupil ratios become so low that the entire quality of education is thrown into question. Education can only be a priority in the development of a nation’s economy, social life and democracy if the accompanying resources are also assigned a high priority. In this respect, there is often a wide gulf between positive political announcements and poor practical measures.

8

Textbooks and textbook publishing can be seen from various angles, depending on the observer. As policy developers and decision makers, education authorities often view publishing and textbook provision as part of a bureaucratic procedure. Teachers and students, as users of textbooks, are primarily interested in the quality and availability of textbooks. Buyers, whether Ministry of Education, schools, parents or others, place a high priority on prices. Independent publishers view publishing as a business from which they have to live. All these views reflect the different roles of the participants in the publishing process. The game becomes easier if the players know each other and understand the various roles. They all need knowledge and experience of each other. Education authorities should not set general objectives for textbook provision without knowing the financial consequences of such decisions. Publishers must take into account the situation and circumstances of textbook users in order to provide them with suitable quality. Buyers must be aware and informed of the range of textbooks available in order to compare different qualitative solutions, such as prices or service quality. The contextualized functions of textbook publishing are presented in Figure 2.2. The basic principle behind the chart is that textbook publishing is a circular process in which the starting point is the needs of society and users. At the end of the process,


The textbook publishing process

feedback collected from users closes the circle. Thus, experience from schools and the results of the education process can then not only lead to revised editions of textbooks, but can also be reflected in curriculum development and in the basic premises of the entire education system. Unfortunately, in African education systems the collection, analysis and utilization of such information is often either non-existent or unsuited to supporting the processes of curriculum and textbook development. The cyclical form of the process chart also symbolizes the need for close collaboration between various players: textbook publishing must be a well-directed, joint action. Specific technical and financial decisions made at an early stage of the process will influence various functions during the whole process. Therefore, one of the central roles of a publisher is that of coordinator. The publisher must understand the logic of the whole process and be able to schedule and control all the activities for a successful end result. The difficulty of publishing lies in the complexity of its functions. Each function is very different and each needs a different approach. Writing, illustrating, designing and editing can be compared with the creative development of industrial products. Time is needed for generating ideas, testing manuscripts and eval-

Figure 2.2

Publishing functions in the educational context

Schools Educational policies

Orientation of teachers

Curriculum syllabi

FEEDBACK

Preparation of manuscript

Reproduction Printing Binding

Writing Editing Design

Approval Acceptance Trialling Evaluation

9

Examination system Chapter Two ESSENTIALS OF TEXTBOOK PUBLISHING

Promotion Selling Distribution

Roles of the participants

10

The major roles in textbook publishing are identified according to functions in Figure 2.4. In a strictly centralized system, when the textbooks are fully subsidized by the government, the Ministry of Education can be both the supplier and buyer at the same time. Manuscripts are prepared by the Ministry. It also takes care of production and distribution. The process is often understood by authorities more as procurement than publishing of textbooks. The role of the school is to give information about their needs and to receive goods, while all the decisions on quantities, quality and financial arrangements are made by central or local authorities.


uating finished textbooks in use. Production (pre-press work, printing and binding) is a technical process that can be organized according to certain standards. Distribution is not only a question of physical transportation of goods, but also a logistic of flow of information (ordering), flow of goods (warehousing, packaging, transportation) and flow of money (invoicing, payments). Publishers themselves do not necessarily have all the resources needed in the process. They commission writers, and they may hire editorial capacity, subcontract production and distribution services and so on. Therefore, the role of a capable management is crucial. Figure 2.3 gives a brief description of the various functions of textbook publishing. There are some variations in the chain, depending on the nature of the publishing process, for example, commercial publishing puts a great emphasis on marketing while this concept is essentially unknown to monopoly publishing. Systems of trialling, evaluation and approval of textbooks may also differ between countries. Textbook publishing can be organized in several ways. There are so many alternatives for preparation of manuscripts, production, distribution and financing of textbooks that these functions must be considered first separately and then jointly to find the most efficient and effective combination for a particular publishing environment. We should not judge any particular mode, public or private, local or foreign, or any combination as simply good or bad; each mode should be analysed in the context of the publishing environment. The factors which count the most towards the result of the publishing business are quality, availability and prices of products. As in any other business, in addition to the functions presented above, a publisher needs appropriate management, accounting and administration systems in order to operate successfully.

11

Function

Content

1 Preparation of manuscripts • Writing • Editing • Illustrating • Design

The content of textbooks must be based on general guidelines of education expressed in a curriculum and more specifically in syllabi for various subjects. Curriculum development forms an ultimate prerequisite for textbook publishing, but is not part of it. The preparation of a manuscript is a creative process where a variety of expertise is needed. Often a team of experts can best achieve an accessible combination of text and illustrations. The team’s skills should encompass subject expertise, classroom expertise, writing ability, editorial experience and expertise in design and illustration. The editorial functions are of central importance, not only for manuscript preparation, but also for coordination of the whole publishing process. Editors are responsible for the quality and the economy of an individual title. Therefore, editors have to understand the whole process of textbook publishing, and be able to coordinate the long chain of various activities. Illustrators and graphic designers are responsible for typography, layout and use of illustrative material (photos, drawings, etc.) in a textbook in a way that is appropriate for the target group in question.

2 Trialling and evaluation

The quality of a textbook should be tested before it is used in schools. A publisher can use statements from experienced teachers and education experts and also arrange field tests in selected schools in order to check the usefulness of a new title. Continuous feedback on titles already in use in schools is also needed to take account of users’ experience for revised editions.

3 Approval Acceptance

A formal approval of textbooks, especially in centralized publishing systems, is usually managed by education authorities (Ministry of Education through its textbook board or committees). Final approval and selection of textbooks can also be left to schools, teachers and parents as happens in many market economies. The publisher’s role in quality control is vital from an early stage of writing and in many cases the final decision to publish a new title is the sole responsibility of the publisher.

4 Reproduction Printing Binding

The technical process of textbook production consists of origination of the work (pre-press work), printing and binding. Publishers do not necessarily have their own production facilities, and often subcontract printing services. Subcontracting gives a publisher an opportunity to arrange the technical process in a flexible way according to specifications of different titles. The publisher can utilize both domestic and international printers. The major raw material of books is paper. In large print runs of textbooks the cost of paper may be more than 50 percent of the total production cost

5 Marketing: • Promotion • Selling • Distribution

Marketing functions include promotion, selling and distribution. A two-way information flow is one of the essentials in marketing: customers (buyers and users of the textbooks) are informed about books available, but information about their needs is collected at the same time. A reliable system is needed to organize ordering, deliveries and invoicing. Distribution is often the weakest link in the book publishing chain because it is highly dependent on the general infrastructure such as road networks, mail services, telecommunications, or transportation capacity.

6 Teacher orientation

The quality of textbooks can be utilized only if teachers are (a) properly informed about their characteristics and (b) trained to use them. This is especially important if the books present pedagogical ideas new to teachers.


Figure 2.3 Functions of textbook publishing: a profile

On the other hand, in a fully market oriented system, the user (the school) determines its needs and buys accordingly, often having an opportunity to make a selection from alternative titles. Commercial publishers, either public or private ones, take care of the whole process of publishing from preparation of manuscripts to distribution, and cover their costs by selling the books for profit. Between these two extremes there is a wide variety of centralized and decentralized systems. For example, purchases can still be made centrally even if there are several publishers who publish alternative titles; or, private capacity can be utilized in production and distribution even if the publishing of textbooks is centralized. Whatever the system of publishing, however, the roles must be clear, especially from the coordination point of view, which is one of the most crucial issues of the whole process. The operations

Roles in textbook publishing

Function

Ministry

Publishers

Printers

Distributors

Schools

Preparation of manuscripts • writing • editing • illustrating • design

Alone or in collaboration with publishers provides authors, resources, defines needs.

Public or private; local or foreign publishers commission authors to develop new titles/series.

No role.

No role.

Information source – feedback for revisions – new needs.

Production • pre-press work • printing, • binding

Uses government printing house or subcontracts to private sector.

Buys printing services from own printing house or subcontractor. Often buys own paper.

Public or private; local or foreign printers print and bind books to specification.

No role.

No role.

Marketing I: • promotion • selling

Ministry procurement: books fully subsidized by government or projects. Books lent or sold to students by government.

Books advertised, promoted and sold by publishers.

No role.

Nationwide or regional distributors, distribution centres, booksellers collaborate with one or several publishers and handle many titles.

Receive, borrow or buy books.

Marketing II: • distribution

Ministry/govt. often distribute through own organization.

Publishers build own distribution network or use distributors, wholesalers, etc.

No role.

Nationwide or regional distributors, distribution centres, booksellers take responsibility.


Figure 2.4

must be managed by one single authority, the professional publisher. Planning and scheduling of activities, supervision of the process as well as monitoring and control must be in capable hands. The overall responsibility cannot be scattered between various functions, which is often typical of centralized systems of publishing, with the result that there is often no coordination whatsoever.

Organization and business structure Publishing means responsibility for development of products, funding and coordination of publishing activities. To manage and organize these activities a publisher needs a professional staff consisting of editors, designers, illustrators, as well as marketing, production and administration staff. The publisher does not necessarily need a big organization to take care of activities if resources are available through subcontracting. A publisher may use freelancers for editorial purposes, or subcontract production and distribution services. Figure 2.5 describes the simplified structure of a medium-sized publishing organization with three major departments in line: editorial, production and marketing. In addition, an administration department serves the company as management’s staff function. The editorial department is responsible for the development of textbooks and comprises functions such as editing, designing and illustrating. The department commissions writers and other authors needed for preparation of manuscripts and actively

Figure 2.5

Structure of a professional publishing organization

MANAGEMENT

EDITORIAL

13

MARKETING

PRODUCTION

Editing

Promotion Selling

Acquisition of raw materials

Illustrating Design

Distribution

Pre-press work Printing Binding


ADMINISTRATION

collaborates with them on a day-to-day basis. The editorial departments of big publishing companies may be divided into subject sections so that one section is responsible for languages, another one for mathematics and so on. The marketing department is responsible for informing customers (schools, students) about books available, together with organizing sales and distribution, while the production department takes care of the technical processes of publishing. It makes the contracts with printers, buys paper and cover board if needed and follows up the printing process. The administration department is responsible for personnel administration, financial arrangements, accounting and book-keeping. Quality in publishing is not only related to the quality of books that publishers produce. Good textbook publishing must be integrated with the services a publisher can offer concerning the range of titles, availability of books, and delivery times. From the customer’s point of view, prices play an important role, too.

Critical issues Some of the important issues of textbook publishing are considered here in general terms and will be revisited when analysing the specific findings in Chapters Three to Seven.

1. Development of textbooks Figure 2.6 describes the development of textbooks in three major stages that are all related to education policies through curriculum, syllabi and examination systems. Development of textbook manuscripts

Curriculum ◆ Syllabi ◆ Examination system

Selection and organization of subject matter

Selection of methodology

Presentation writing, illustrating, designing, editing 14


Figure 2.6

The availability of competent and capable writers is an absolute prerequisite for quality textbooks. With the exception of some writers in countries with very large populations, most writers are part-timers who write a book or two on a temporary basis. There are very few, if any, authors who live from textbook writing in Africa. It is in the prime interest of a publisher to establish a good pool of writers. The difficulty in finding good people is related to the expertise needed. Very rarely, if ever, is one person a good subject expert at the same time as being a good pedagogue, creative writer and familiar with the practical classroom situation which a textbook is meant for. Most often, only a group of people together can cover all the aspects of good textbook writing. Then, in addition to their individual expertise, they need good teamwork skills. The publisher needs a good network of suitable contacts in order to find good writers among already experienced ones, or in order to assess the potential of new writers. Establishing a firm ground for textbook writing takes years. New publishers, therefore, often start with safe writers and safe projects on a small scale as part of their own learning process.

The long chain of publishing activities described earlier also demands good planning, coordination and control of the publishing process. Key players in the process cannot work in isolation, but must all follow the same plan to ensure quality, good timing and appropriate cost allocations. Most of these coordination tasks are usually given to an editor because he or she is dealing with most of the functions of the process. An editor must therefore not only know the editorial functions, but must also be familiar with the basics of printing technology as well as the marketing process. A good coordinating editor must also be familiar with the financial basics of textbook publishing in order to follow a given budget. For example a writer may wish to provide a wealth of extra material for students and teachers, but is usually unaware of the cost of such a desire. An editor’s job is to appraise the extra costs involved and to decide or assist in the decision on whether such extra costs can be both justified and also supported by increased prices or sales. As stated above, the publisher often uses printing and distribution services from sources outside a company. These subcontracting arrangements also need a great deal of attention in order to find the most economical solutions. The use of subcontractors also needs careful scheduling and cost-monitoring. 15


2. Coordination

3. Finance Textbook publishing is a seasonal business. Books must be ready and delivered to the schools at the latest for the beginning of a new school year or a new term, and the publisher must schedule all activities accordingly. This gives a certain rhythm for cash flow, too. The bulk of textbooks become ready for both printing and distribution at certain peak periods, and the publisher has to pay for raw materials, printing and distribution several months before receiving any income through sales. As the costs accumulate, the need for money accumulates. too. Most publishers need at least short-term loans or overdraft facilities in order to satisfy their working capital needs. Whether a publisher can get a loan from a bank depends on the success of earlier operations and the company’s financial position. In any case the bank needs a security for the loan, either as a guarantee or a mortgage. Small publishers rarely have adequate assets to mortgage and they also have difficulties to find suitable guarantors. The same can often be said of larger publishers, too, and funding arrangements, especially in developing countries, form one of the biggest problems of the publishing business.

Writers, editors, illustrators and designers all share responsibility for content quality and physical appearance of a textbook. The latter is also dependent on results of the printer’s work. Publishers use various methods for ensuring readability and legibility of textbooks. They can ask for comments and statements from experts, they can arrange monitoring or field tests in selected schools and they can organize experiments for evaluating a manuscript. Rarely do any of these methods give any final answer to quality questions. Often only extensive use of the books in the classroom and feedback from larger numbers of users give a firm basis for proper assessment of quality. Textbooks are tools of teachers and students in the teaching and learning process, and their value is assessed against the results of the education process.

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4. Quality control, testing and evaluation

p

Chapter Three

MARKET STRUCTURES AND PUBLISHING SYSTEMS

Policies, objectives, strategies

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Publishers have to understand the needs and the logic of the business in order to satisfy those needs and achieve their own business targets successfully. The market structure in a particular country gives a framework for the publisher’s opportunities and possibilities. This structure determines the rules of demand and freedom of action in supply as well as the role of publishers. In addition, education policies give general guidelines for the publisher’s work. Along these lines publishers have to set objectives and choose their strategy. A business strategy is an answer to the question of how the human, financial and physical resources of an organization can best be managed for achieving defined short-, medium- and long-term objectives: there are always alternative ways to run a publishing business, as there are to execute a programme or a project. Publishers have to make decisions on the range of titles they would like to publish, what financial arrangements they will make, how to generate manuscripts, how and where to organize production and distribution. The end result shows how capable a publisher has been in developing a combination of these decisions to create an effective business plan. If the decisions are based on clear objectives and a well-formulated strategy for implementation, there is also a logical basis for corrective measures when needed. Without proper plans there is a danger that events are uncontrolled, and that short-

Chapter Three MARKET STRUCTURES AND PUBLISHING SYSTEMS

Wherever textbooks are published, the same key questions must be answered: • What are the needs to be covered? • How can those needs best be met? • What types of alternatives are there to satisfy the needs? • Who pays? • What is the profitability of textbook publishing?


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sighted, uncoordinated decisions lead the business, or that outsiders steer the system in their own direction. Strategic choices are of fundamental importance in assessing the success factors of textbook publishing. The nature of a particular strategy will vary according to different market structures, but the same questions of demand, supply and the role of publishers are valid in both centralized and market-oriented systems. It is clear from the data collected in this study that there are very few, if any, clear policy papers, strategic plans or master plans. Concrete medium- and long-term objectives seldom appear to have been set, or if they have been set, are seldom communicated effectively to the industry. The most common strategy is that of survival, on a daily, weekly, monthly or annual basis. Development of textbook publishing according to systematic short-, medium- and long-term planning, financing and implementation programmes is almost unknown. In this setting, donors have occupied the centre stage of textbook provision schemes, making the continent’s educational and publishing efforts donor-driven. Donors have the resources and experience to make their own plans, to use the best possible expertise for running projects, and as a consequence they also influence and steer the entire system, especially when there are no clear master plans developed by the host country to provide a focus and a framework. If plans do exist, they are often built retrospectively to follow the progress that has already taken place. Donors are the most influential players in the aid market, and by virtue of their major role in financing they are also the most influential participants in the textbook market. There is often much harder competition between the donors than in the textbook market itself – and this form of competition does not necessarily benefit the receivers. Different donors have different ideas on how to best to support education. Donor governments, their agencies and consultants all too often seem to be harnessed to selling a certain approach, a certain type of expertise or certain products, knowing full well that gifts are not rejected and loans are not refused. The paucity of data received in the course of the study shows that the representatives of African publishing industries have not been able to help themselves either. Publishers’ associations do not collect the right kinds of data to be able to define the local situation and or to base their discussions and communications with the authorities on facts. Governments and publishers are equally impotent in quantifying the demand and supply sides. In most cases, information about the numbers of books in schools, the funding of purchases, annual textbook sales, or publishers’ financial positions is based solely on guesswork.

Current trends

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Most countries in sub-Saharan Africa are moving from controlled publishing systems to more liberalized ones as a consequence of a


Everybody believes education is the most vital sector for the improvement of a nation, but actions tend to belie the beliefs. We have found no study that seeks to expose the primary reasons for the imbalance between solemn promises and the all too miserable reality: how much is the imbalance a question of ignorance, a lack of judgement, a lack of political will or interest, or a combination of all these factors? There are numerous studies on textbook publishing, book sector studies, project documents, evaluation reports and so on, but their impact has been poor. Perhaps they were not read or understood? Perhaps they were too technical or too weak? Perhaps they were limited to a single aspect only, and ignored the overall picture of this complex business? Certainly, there is a wide variety of reasons for the imbalance between promises and actions. One of the most common excuses is lack of money, which is certainly true as such, but which is not applicable to every problem. Lack of money does not explain the lack of plans, because careful planning actually saves money. Another excuse for lack of action is the experience of a transition period from one market structure to another were there has been too short a time to show any positive results. This is true, too, but does not explain why there is no formulation of strategy to guide these extremely important transitions. The fact remains, unfortunately, that the lack of systematic planning efforts means that often there are no targets against which results can be measured. In the worst cases, this lack of planning has been the main cause of failure to achieve desired results. Plans must therefore be based on a reliable overall picture of the situation in the schools and in the publishing industry. They must also be based on comprehensive national book policies that take into account, not only the provision of core textbooks, but also the development and publication of supplementary materials and other forms of literature. Publishers and education authorities together need to create an information system to cover the needs of planning, implementation and monitoring of the publishing business. This could be carried out under the aegis of a national book council or book trust, bringing together players from both government and private sectors to help formulate policy questions and disseminate ideas and information.

universal tendency towards supporting market oriented activities. Figure 3.1 gives an introduction to three market structures. A market structure determines the conditions of demand and supply: what needs will be covered and how? The freedom of action of publishers is a direct consequence of market structure. The market structures exemplified in Figure 3.1 characterize market conditions that cannot necessarily be found in ‘pure’ forms in any particular country. Demand, supply and publishing systems vary so much in different countries that the market structure in a particular country can be a mixture of these characteristics. For

Market analysis

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Market structures and their fields of operation Market structure Monopoly

Transitional

Free market

Demand Needs Customers

Needs defined by central education authorities, little or no differentiation; MoE buys textbooks centrally for the schools.

Needs defined by authorities and/ or buyers/users. Books still purchased centrally, but also directly by schools and users.

Needs defined by buyers/users of textbooks who make selection of titles according to their specific needs and purchase textbooks directly from publishers or through booksellers.

Supply Quality Availability Service Competition

Single textbook system without alternatives; no competition.

Books published by government and/or private publishers. Books may also be imported in significant numbers.

Alternative titles by quality and price in the same subject. Books published by commercial publishers. Competition is emphasized in publishing and is especially apparent in marketing.

Publishers Finance Capacity Organization Profitability Management

One publisher, only; a unit, department or sub-contractor of MoE, or parastatal(s). Publishing funded by government budget. Cost-effectiveness is rarely measured. Publishing often a part of bureaucratic organization.

Spectrum of entrepreneurs from new individuals to established publishing houses. Most publishers (especially new private ones) in the process of building up their capacity.

Limited number of ‘qualified’ publishers; a few big or mediumsized generalists and several specialists, public or private, local or foreign. Publishing funded by publishers through selling books for profit. Much attention paid to efficient management and costeffectiveness.


Figure 3.1

example, textbook purchases may be strictly controlled by an education ministry, as in a monopoly situation, but it may, however, still be possible for publishers to provide alternative titles, as in a free market situation. An analysis of market structures will help planners and decision makers to identify typical characteristics within their own country and to define the path along which textbook provision should be taken.

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In a strictly controlled situation, educational publishing is monopolized and society (government) represents both the demand and supply sides. There is often one supplier and one buyer. Needs are defined by education authorities and schools are simply recipients of textbooks, having played no part in the provision process. Publishing is usually carried out in one of two ways: through a unit under the Ministry of Education or through a state-owned company. The former arrangement means that publishing as an industrial process suffers from the absence of market stimuli and is thus limited in scope. Those involved may or may not be professional publishers, but experience shows that they tend to put greater emphasis on their roles as educators and administrators than as professional publishers taking financial and other risks into consideration. The functions of textbook publishing are often scattered between various departments or units without any effective overall coordination. Writers are often curriculum developers who start the process and make fundamental decisions free from editorial, technical, financial or time related plans. There is no comprehensive cost control and therefore the real price of textbooks is not known. A separate state-owned company or a parastatal has better opportunities to practise as a professional publisher than a unit or a department within the Ministry of Education. It can even be commercialized, although the monopoly situation does not force the organization to consider qualitative alternatives or to compare its financial effectiveness with any other corresponding organization. The monopoly system does not leave any space for qualitative alternatives or differently priced textbooks, but the lack of alternatives does not necessarily mean that the one and only textbook is a bad solution. The quality of a textbook determines how the needs of users are met, and a good quality textbook in a single textbook system probably better meets the needs of users than several poor quality books in a multiple textbook system. However, in a single textbook system there are no parallel titles to be used for qualitative comparisons.


The monopoly structure

CASE STUDY: MOZAMBIQUE General Education in Mozambique has been described as ‘inadequately or untrained teachers attempting to deliver an inappropriate curriculum by inappropriate means in too few schools, all of which are poorly organized and equipped.’ (A master plan for Basic Education in Mozambique, Ministry of Education, 1994). This was the consequence of rapid expansion of primary education after independence and lack of qualified teachers and managerial skills. However, significant gains have been made compared with the pre-independence situation. The state budget allocations for education are insufficient. Only about 50 percent of primary education and 30 percent of secondary 22


Price comparisons are also impossible in the single textbook system. Books are rarely available on the open market and, if they are, they are not properly priced. Costing of textbooks does not usually take into account publishing overheads. Only direct costs are known and sometimes, even when known, they are not always used in the cost calculations. In other words, even if books are available for purchase on the open market, the price may bear no real relation to the actual cost of the book as it is impossible to know what types of subsidies have been included in the price. Inadequate costing often leads to low nominal prices and easily gives a false impression that the books produced by the Ministry are more economical than those of the private sector. The main rationale for the monopoly market in textbook publishing is usually maximization of the use of scarce resources, especially human resources. Unfortunately, often due to a lack of clear long-term planning, the monopoly market tends to stifle the development and expansion of those very resources. Textbook publishing has been understood in such a close association with education that it, too, has become a responsibility or a liability of government rather than a resource for education. As an example of state monopoly in publishing can currently be found in Mozambique (see the case study which follows), where the government has assumed full responsibility for all aspects of textbook provision. However, preparations for a new era of publishing are under way there, too, and the situation is expected to change gradually towards more liberalized policies in textbook provision. A different arrangement of monopoly publishing is applied in Botswana, where the government has made a deal with a private foreign publishing company which is entitled to publish all the basic textbooks.

education is financed by the national budget. Foreign donors contribute the rest. Major problems of textbook provision in Mozambique are the lack of a well-coordinated and structured programme for curriculum development, and poor systems of distribution and financing. Since 1989 the Ministry of Education has not been able to conduct any major curriculum reform. Development and publishing There is so far one publisher of textbooks, Editora Escolar. It acts as a the publisher for the materials developed by Institute of Curriculum Development (INDE). Editora Escolar employs most of its 43 employees, pays them from its own funds and can generate funds for upgrading and maintenance of its facilities. The publishing house is practically merged with DINAME, a state-owned distribution company. Preparations to make publishing and distribution more commercial are under way. Editora Escolar is also the only organization with skilled staff in desktop publishing. It has established its functions very well and it makes a professional impression. External support has made it possible and the Swedish International Development Agency (Sida) in particular has supported the publishing house in many ways by providing facilities, machinery, equipment and technical assistance since the 1970s. However, Editora Escolar faces many problems: low salary levels which make it difficult to attract qualified staff, lack of materials especially printing paper, as well as low capacity to meet the needs for new and revised textbooks.

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Purchasing and distribution Provision of textbooks in Mozambique has faced overwhelming problems and after unsuccessful attempts to distribute textbooks free of charge to pupils in primary education, the Ministry of Education and Sida made a thorough study of alternative methods. As a result Caixa Escolar was established. Under Caixa Escolar textbooks are sold at market prices, but the poorest pupils (or their parents) are supported with the help of donors. This arrangement towards more sustainable textbook provision, however, is now threatened because the World Bank would like to provide all the pupils with textbooks free of charge. It would return the textbook purchases back to the old system which is not sustainable in the longer run.


Production Domestic production capacity was largely adequate until the 1990s, but almost all textbooks are printed abroad now. Local printers have had substantial financial problems, which have led to poor maintenance of their machinery and little success in solving their management issues.

There are a number of textbook markets in a state of flux on the African continent. The former state-controlled markets and centralized systems are beginning to open up to competitive publishing. There is an aspiration to give publishers (public and private) an opportunity to publish alternative titles in the same subject and for schools to make their own selection of textbooks and also to buy them on their own. The transition from a monopoly structure towards a free market does not indicate identical arrangements in each country. Each country must find its own way to define and implement new publishing strategies. However, the first step for any country must be the establishment of a commercial environment for commercial publishing. The major prerequisites for this process can be listed as follows: • Decentralization of funds (or at least purchasing authority) to enable schools to select the textbooks and other resources they want to use and buy; • Capacity building of new publishers is needed to increase the number of qualified publishers able to offer alternatives in terms of quality and price; • Establishment of an approval system (different types of approval processes can be used to achieve different objectives, such as maintenance of educational standards or assistance to textbook selectors); • Training in assessment, selection and purchasing of textbooks for school administrators and teachers; • Establishment of information systems for procurement of textbooks; • Establishment of commercial distribution systems. Some countries have published new policies for liberalized textbook publishing, but have not complemented the policies with detailed strategies on how to achieve the general goals. The case studies on Malawi and Tanzania illustrate this.

CASE STUDY: MALAWI General The government of Malawi announced the introduction of free primary education in 1994 and this resulted in a rapid increase in school enrolments from 1.9 to 3.2 million. However, few additional resources were provided to education. Class sizes of over 100 are quite common. Teacher training has been reduced from two years to one year in order to increase the number of teachers. 24


Transitional market structures

Publishers Until 1993/94 only Dzuka Publishing Company (part of the government-owned group) was publishing educational books, but they were unable to meet the needs of the educational system. The Malawi Institute of Education (MIE) has been and still is a publisher, too. The situation is now changing and the Institute is entering into publishing agreements with local publishers. Two new publishing companies were established in 1995, Macmillan Malawi and Jhango. In addition to general textbook publishers, there is Popular Publications who have published some local supplementary readers. The Malawian textbook market is now open for other potential publishers, too, local or foreign. There is no Publishers’ Association or Book Development Council in Malawi.

Production The production of the new primary titles has been coordinated by MIE and the books have been printed in South Africa after tendering.

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Purchasing and distribution Distribution of Ministry of Education purchases is handled centrally. The books are transported to district education offices first, and from there to schools. The book trade is very underdeveloped. Malawi Book Service, that is now due for privatization, collapsed two years ago. Dzuka Publishing Company has an informal monopoly with the only working bookshop chain, Times Bookshops. Other publishers are trying to develop links with supermarket chains.


Development and publishing All primary materials are developed by MIE, which is currently working on a programme to develop new materials for Chichewa, English and General Studies. Publishing rights for Standards 1-4 of these books have been awarded to Macmillan Malawi and Jhango. However, publishers are not involved in the process until at least after initial bulk orders are placed. Primary science and agricultural science books are being developed under other donor funding by the German Foundation for International Development (DSE) and the German Agency for Technical Cooperation (GTZ), but will be published in the same way as other primary books. Most of the supplementary readers for primary education have been bought in by the UK Overseas Development Administration (ODA) from outside Malawi. Secondary textbooks have been selected by the syllabus committees. The list includes mostly foreign titles and few books have been published specifically for the Malawian curriculum.

A Supplies Unit has been established at the Ministry of Education to handle the procurement and distribution of all the Ministry’s educational materials requirements. Finance New primary books have been/are being published under a World Bank loan and delivered to schools free of charge. Canadian International Development Aid (CIDA) gave funds to allow reprinting of MIE books for Standards 1-4, to bring the book/pupil ratio up from 1:2 to 1:1 with a total of 5 million books. There is also an ODA-funded supplementary reader project, which identified 100 readers for Standards 4-5 and has purchased and distributed 8,700 copies of each. Only five titles have been published in Malawi. A proposed World Bank project aims to support MIE in reprinting books for the primary curriculum, and developing and supplying books for the secondary curriculum over the next 10 years. Transitional issues It is likely that the domination of donors, MIE and foreign production will continue for several years to come. However, there is no strategy paper outlining the necessary steps or timing of the transitional period or examining how sustainability could be established.

General A new policy on production and distribution of school/college books was announced in 1991 and came into effect from 1st January 1992. ‘The policy aims at transforming the Production and Distribution to a complete commercialized system whereby the entire book provision would be marshalled by publishers.’ The new policy aims at improved quality and lower prices through competition, as well as accelerated processes of production and distribution of textbooks. The government role will be in policy formulation and curriculum development. Publishers There are about 25 publishers who have shown interest in textbook publishing in the context of the tendering arranged by the Ministry of Education/Book Management Unit (BMU). However, a much smaller number of publishers can be counted as active ones and only a few publishers are capable of taking full respon26


CASE STUDY: TANZANIA

sibility for textbook publishing. Most of the publishers are small with no professionally experienced editorial and marketing capacity. The biggest shared problem of the publishers is finance and lack of working capital.

Production New titles have been produced by publishers offering winning bids (in which the quality of the product carries greater weight than the final price). Production of reprints (of titles produced under the closed market) has been financed and coordinated by the Ministry of Education/BMU. Production of all titles, both new editions and reprints, will eventually be financed and coordinated by publishers. Both national and international printing capacity has been used for printing. Purchasing and distribution To date, all the books produced by the projects have been purchased by the Ministry. The first step of the programme has comprised deliveries from publishers to the Ministry’s central warehouse. Distribution to districts and further to schools has then been executed by the Prime Minister’s Office. New titles have been made available on the open market, too. The next step is to require publishers to handle distribution, first to districts and then to schools. The prerequisite for decentralized purchasing and distribution is availability of funds at district and school levels. 27


Development and publishing The first step of the liberalization programme has included tendering out of the manuscripts prepared by the Tanzania Institute of Education (TIE), which is also responsible for curriculum development. Publishers have been responsible for editing, illustrating and designing of manuscripts as well as production. The tendering has been executed through two projects: Pilot Project for Publishing (PPP) financed by Sida for primary titles and some secondary titles through a World Bank (IDA) Project. The former has applied national competitive bidding procedures and the latter international competitive bidding. Technical assistance has been provided to the Publishers’ Association and individual publishers by PPP. The second step will allow initiation of manuscripts by publishers, which would mean alternative (parallel) titles on the same subject. Preconditions for this arrangement are: the decentralization of funds to district/school level for purchasing of textbooks, selection of suitable titles at district/school level, establishment by the Ministry of an approval system and capacity-building of publishers to assist them to take full responsibility for all the publishing functions.

Finance Purchasing of books is financed entirely by the government and donors. Publishing of the tendered titles has been financed by publishers from editing to production and delivery to the Ministry’s central warehouse. Manuscript development has been covered by the Ministry through TIE. Publishers will in the next phase take the full responsibility for the financing of publishing step by step. Transitional issues The major difficulty in the Tanzanian situation has been the slowness in decision-making by the educational authorities. There have been attempts made to establish a strategy for the transition period by BMU, but no proposals have so far been approved by senior MoE officials. Decisions on decentralization of funds, approval system and orientation training for buyers of textbooks are needed before the next steps can be taken towards a commercial system. In addition, the role and position of TIE as the textbook writer has been unclear until early 1996 when it was decided that TIE would no longer continue to write textbooks, but would concentrate on curriculum development and possibly research and teacher-orientation programmes.

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A free (open) market structure makes competition possible. Decision-making on purchases of textbooks is decentralized and the schools buy independently. The large number and variety of buyers means different books must meet different needs and this gives the basis for publishers to publish alternative titles in the same subjects. Competition is supposed to improve quality, keep prices reasonable and offer better service for buyers. Free market structures and competition , however, do not necessarily guarantee anything as such. The birth of qualitative alternatives and downward pressure on prices depends on the nature of the competition. If there is only one publisher or only one strong publisher, this easily leads to a monopoly situation which gives great operational freedom for the publisher, but fails to offer any choice for buyers. On the other hand, very hard competition can lead to very similar textbooks priced at the same levels; this does not provide many alternatives for buyers, either. The ideal situation from a buyer’s point of view is that there are several equally strong publishers (both generalists and specialists) who can guarantee real choice of parallel titles and alternatives in prices, too.


The free market structure

The role of the Ministry of Education in the free market situation is restricted to curriculum development, possible approval of textbooks and monitoring. The government can, however, influence textbook publishing through positive or negative interventions. The most important issue is funding for purchases of textbooks. Government’s support of education and student requisites, including textbooks, is the engine of educational economy everywhere. There is no example of a completely ‘free’ market structure where publishers publish according to market needs, and buyers are financially independent to make their purchases. An example of a relatively free situation, however, is the market structure in Zimbabwe.

CASE STUDY: ZIMBABWE

Publishers Zimbabwe has 50 publishers who, together, are quite capable of handling all the requirements of textbooks for primary and secondary education. Of those 50, three account for more than 90 percent of the textbook trade. Although no exact figures of turnover of the three companies were available, it is believed that their order of turnover and profitability is (1) Longman, (2) College Press and (3) Zimbabwe Publishing House. Other important publishing houses are Mambo Press, Academic Group including Baobab Books, Grassroots, and Zimbabwe Literature Bureau, which publishes mostly in Zimbabwean vernacular languages. There is a Publishers’ Association (ZPA) and Book Development Council in Zimbabwe. 29


General Zimbabwe has one of the better publishing industries in Africa, second only to that of South Africa. The publishing industry has always been in private hands and it has always enjoyed government support. Government allocates Z$60–80 million for the purchase of student requisites every year with parents and community associations usually contributing more than what government allocates. However, in spite of the positive picture of Zimbabwe publishing and distribution, a realistic book/pupil ratio is generally believed to be 1:7. Zimbabwe is host to the Zimbabwe International Book Fair, Africa’s premier book showcase, as well as the African publishers’ organization, APNET. Authorship in Zimbabwe is well developed, as are the graphic industries.

Development and publishing As textbook publishing in Zimbabwe has been stable and has developed within the private sector, it has not had the kind of dislocations seen in countries which maintained state or parastatal publishing monopolies. One area of contention in the book trade is between publishers and booksellers on the right of booksellers to be the only retailers. Publishers who have well established representatives all over the country are tempted to sell directly to schools which is a violation of book trade regulations. Publishers, on the other hand, claim that the booksellers are not active enough and deny them sales that they can pick up directly. There are latent ill feelings between small indigenous publishers and the two giants, College Press and Longman but those are to some extent absorbed within the ZPA, the booksellers’ associations and Zimbabwe Book Development Council. Production Zimbabwe is one of the leading countries for printing in the region but it does have paper problems because its own paper mill at Mutare cannot meet all its requirements. It imports its paper mostly from South Africa. Cooperation between the Ministry of Education and publishers in Zimbabwe, particularly the Curriculum Development Unit’s readiness to work with publishers so that books are recommended before publication, is providing a model for other countries in the region to emulate. 30


Purchasing and distribution The total turnover of the Zimbabwean book industry is estimated at Z$130 million of which only Z$20 million is attributed to the general book trade. There is a statutory requirement obliging the government to pay a Z$25 per capita grant per child for textbooks in the twelve months following announcement of the budget. Failure to make this disbursement can lead to legal action being taken against the government. Although this amount is inadequate to meet the textbook requirements, the fact that the disbursement is regular makes it possible for publishers to plan their marketing strategies to enable them to retain their market shares. One of the strengths of Zimbabwe publishing is its relatively well established distribution infrastructure. There are many bookshops in Zimbabwe although as everywhere in Africa they are mostly in towns. Thanks to a good all weather road network which makes most areas accessible, orders received in Harare from most district centres of the country can be processed and books sent out to reach customers within 24–30 hours. Purchasing is decentralized to schools; in addition local councils and parents associations regularly purchase textbooks for schools. Government also shares the responsibility of distribution with publishers.

Finance In addition to the government allocation of Z$60–80 million per annum for textbooks and parents as well as local councils´ contribution, donor assistance is a critical component of the financing of textbooks. The European Union has committed itself to regular contributions until the book/pupil ratio reaches 1:2. The Dutch and Swedish governments have made equally important commitments to educational support with the provision of textbooks featuring prominently in those commitments. Other donor contributors are: UNICEF, ODA/British Council, UNESCO, GTZ, Redd Barna and USAID.

Other scenarios Three further cases of textbook provision follow. The situations in Mali, Kenya and Namibia are all different and do not constitute orthodox examples of any of the previously mentioned categories. However, they underline the importance of identifying the characteristics of a provision system in relation to the goals and targets of that system.

General Mali was for many years one of the African countries whose government pursued socialist policies and sought to control all social sectors including education. Until the 1980s Librarie Populaire du Mali (LPM) and Édition et Imprimerie du Mali (EDIME) controlled the business of book distribution as well as publishing and printing. It is, however, important to emphasize the fact that textbook publishing was controlled by government only from the pedagogical point of view, not from that of manufacture. Editorial functions and production were carried out in France by French publishers, under commission or through tendering. The Dakar-based Nouvelles Éditions Africaines (NEA) was owned by the governments of Senegal, Ivory Coast and Togo and by the French publishing firms Édicef, Armand Colin, Nathan, Présence Africaine and Le Seuil in a 60/40 percent shareholding. They published books for almost all the francophone countries in West Africa, Burkina Faso, Mali, Niger, Guinea and Benin. This was possible because the education systems in those countries were the same and were patterned on the French system. 31


CASE STUDY: MALI

Development and publishing Textbook publishing in Mali is carried out by the following agents and through the following processes. The Institut Pédagogique National (IPN) prepares manuscripts for the various subjects based on a national curriculum. The writers are subject specialists within their field. After the initial writing is completed and before going to tender, an evaluation of the manuscript is carried out by another group of subject experts within IPN. If financial resources permit an appel dóffre (tender) is announced, all such tenders being international. The conditions of participation are so heavily loaded against local publishers that no Malian publisher on his own has ever won a single tender to publish a textbook. According to two publishers interviewed, Jamana and Librairie Nouvelle, it is not likely that a Malian publisher will ever win a tender in the foreseeable future. Publishers who invariably win the tenders are: Pierron, Serbedit, Hatier from France and Alfa Éditions from Tunisia. On winning the tender the publisher signs an author-publisher contract with IPN. The publisher carries out all the editorial work as well as commissioning book illustrators. When all prepress work is completed to IPN´s satisfaction, a bon à tirer is signed by IPN, showing that the book meets all the requirements and can go to print. Contrary to the claim by IPN that they have all the necessary expertise in manuscript writing, opinions were voiced within the Ministry that manuscripts are, in fact, usually below standard; one reason for this being that IPN manuscript writers are not paid royalties. A further complaint was that too much time was spent in manuscript writing rather than in curriculum development. International agencies supporting textbook production in Mali are CIDA (Canada), ACCT (Agence de Cooperation Culturelle et Technique), World Bank/IDA and USAID. Only when there are no funds from international agencies does the government 32


Publishers In the Development Directory of Indigenous Publishing in Africa compiled for APNET by Carol Priestley and published in 1995, only two publishers, Éditions Jamana and EDIME were listed. During a visit to Mali in May 1996 by one member of the study team, three other publishing entities were identified: Éditions Donniya, Éditions Sahélien and Éditions Fayida. But only Éditions Jamana qualifies as a serious publisher with an active list of 61 books. Éditions Donniya is also considered to have good potential, being well capitalized as part of a media group including an FM radio station. It had just re-published a BambaraFrench dictionary at the time of the research team member’s visit.

allocate funds for textbooks and those are usually insufficient to meet the book/student ratio target of between 1:3 and 1:7. Production As all books are printed in France, the production quality of Malian textbooks is very high. However, it was lamented that the process of bidding from beginning to the end is long and tedious. An example was given showing that books for which the process began in 1992 under the Fourth IDA Project were completed in December 1994, a total of three years, and payment for them was made in 1995. Purchasing and distribution Distribution of textbooks is the responsibility of the Directorate of Administration and Finance (DAF) and parents associations are responsible for book purchases. The DAF contracts the major book distributor in Mali, Librairie Nouvelle (formerly Librairie Populaire du Mali, purchased from the government in 1989) to distribute the books. Three other major bookshops who act as distributors as well are Librairie Traore, Librairie Jamana and Papeterie du Soudan, all in Bamako.

Transitional issues The government has announced liberalization of aspects of the publishing process that hitherto had been the preserve of IPN. Henceforth, private individual authors will be able to submit manuscripts to be considered by IPN for approval as textbooks. When acceptable, the author will sign an agreement with IPN which will then process the manuscript as its own. Publishers will also be able to develop textbooks for consideration and approval by IPN. A National Book Policy designed to cover all books was under preparation in May by IPN and the DAF and it was expected to go to some extent towards creating a more enabling environment for national textbook provision.

33


Finance The major problem of publishing in Mali is financing, but this is not perhaps as critical as the legacy of French domination. In combination, however, the two problems tell the desperate story of publishing in Mali. The weak financial base of indigenous publishers even without the extremely unfavourable conditions for participation in international bids for textbook publishing makes them unable to develop publishing capacities to handle more than a few titles with short print runs.

34

General At the time of independence in 1963 there was no privately or nationally owned publishing company in Kenya, although foreign owned companies such as Longman and Oxford University Press had established offices. In 1964 and 1965 respectively, two state organizations, the Kenya Institute of Education (KIE) in charge of curriculum development and the Jomo Kenyatta Foundation (JKF) in charge of book production, were established, to act as manuscript developer and publisher. Other publishing companies, both local and transnational were soon set up in the years that followed, and by the mid 1970s there was a lively publishing scene in operation, where textbooks from private publishers competed freely with JKF publications. Books for primary schools were centrally purchased and distributed by the Ministry of Education’s Kenya School Equipment Scheme (KSES), also set up in the 1970s. The Ministry sought to loosen the grip of the transnationals in the core areas of primary publishing by recommending the core texts, but as in a number of cases textbooks from the JKF were not yet available, the situation was far from monopolistic. Publishing began to go into decline after the break up of the East African Community in 1977; this had provided a large market for indigenous Kenyan publishers in particular, and a number did not survive this shrinking of their market. However, in textbook publishing, another period of prosperity came after 1985 with the introduction of the so-called 8-4-4 educational system which demanded new syllabi and materials. The well established publishers developed courses for the new system but a number of other inferior products from inexperienced publishers were rushed onto the market as well. The result was a confusion in schools. The government took a radical step and only recommended textbooks published by JKF and the Kenya Literature Bureau (another state owned company). Although the big private publishers have still held their own even in the face of this near monopoly situation, there is a real fear that, unless government loosens its grip, many could collapse. Two of the largest transnational companies – Heinemann and Longman – have meanwhile been bought by local entrepreneurs. This erodes even further the state’s reasons for wanting to monopolize publishing. In Kenya most publishing business is in textbooks making up to 90 percent of the industry´s turnover. Out of the total market about 40 percent is made up of imports with the remaining 60 percent being generated by local companies. Due to the government policy of state publishing, the local market is shared between state publishers (37 percent) and private publishers (23 percent).


CASE STUDY: KENYA

Kenya has established a dynamic private publishing infrastructure compared to many other African countries. Private publishers´ main problems lie in lack of trained personnel and disharmony between the different interest groups (associations of publishers, booksellers and distributors), and government in its discrimination against privately published textbooks. Another major limitation is the cost of paper and other production materials which make book prices very high for the parents to afford, especially as no government contribution is made to book purchases except for the specially disadvantaged areas; 93 percent of all textbook purchases are currently made by parents. Publishers During the last ten years several indigenous publishing houses have been set up in Kenya. There are a large number of private publishers (60–70) in Kenya, but only around a dozen of them can be stated as active and viable ones. Among the active ones, two (Heinemann and Longman) were recently bought out by local entrepreneurs leaving only Evans, Macmillan and Oxford in foreign ownership. State publishers KLB and JKF as already indicated have near monopoly status in the textbook market. There is a Publishers Association in Kenya (KPA) as well as other booktrade professional organizations.

Distribution Distribution of books in Kenya is relatively well developed. There are an estimated 600 bookshops in Kenya covering most of the country. Some distributors such as Textbook Centre are huge organizations with extensive networks of bookshops. In spite of the well established distribution network in the country there are still many problems underlying book distribution. There is a lack of understanding between publishers, booksellers and distributors. Booksellers resent publishers selling directly to users (schools and other education institutes) with publishers criticizing booksellers for not doing enough. The need for a national book policy has been noted and today it is evident that also policy makers support strongly the estab35


Development and publishing The Kenyan government policy of state publishing and of recommending only textbooks from the two state publishing companies is under heavy criticism. Private publishers have taken measures to fight this monopoly and to get privately published textbooks onto the recommended booklist for schools. State published books are criticized by users and increasingly even by policy makers as being amateurish and inferior. Privately published textbooks are considered better for content, illustration, editorial work and durability.

lishment of a National Book Development Council to regulate activities in the field of book publishing and to create harmony between state and private publishers. Finance The government no longer provides books for schools. The latest surveys show that 93 percent of textbook purchases were financed by parents with support by relatives and only the remaining 7 percent through the government subsidies. Under so called ‘cost-sharing’ measures (the education sector falls under this policy) parents have to bear the high book prices which are unaffordable for most of them when added to other costs they must bear. There are several donor agencies which provide financial support to Kenya today: World Bank, CODE, Sida, CIDA, UNESCO, Unicef, ODA, Obor Foundation, Dag Hammarskjöld Foundation are all involved in supporting the publishing industry but in all cases the support does not match the needs. Sources: Cost and Financing of Teaching and Learning Materials Study, ARA Sage Management Consultants, 1995. The Book Market in Kenya Today, Lily K. Nyariki and Ruth L. Makotsi, 1994.

General The Government of Namibia provides free and compulsory primary education. The Ministry of Education and Culture is also attempting to provide free junior secondary education to all those who successfully complete their primary education and have not yet reached the age of sixteen years. A new national curriculum was introduced to replace the South African curriculum after independence in 1990. The launching of the new curriculum put all publishers on the same footing since they all needed to develop entirely new books. The market is wide open for expansion, giving challenge to the most ambitious publishers. Publishers and publishing There are four Namibian publishers specializing in educational publishing. All of them are privately owned by or affiliated to various foreign publishers, South African and British. The publishers have taken advantage of their foreign relations to publish under licence or through copyright agreements in Namibia books originally produced overseas. Adapting foreign 36


CASE STUDY: NAMIBIA

books for use in Namibia became a necessity under the rapid introduction of the new national curriculum, which did not allow for the normal development of textbooks. There is a local Publishers Association and a Book Development Council in Namibia. Three major projects for the development of textbooks in Science, English, and Social Studies, have been initiated by the Danish-funded NGO Ibis, NAMAS and the Centre for Applied Social Sciences (CASS) since independence. Production Only three of the printers in Windhoek regularly print textbooks. In general, book printing covers a very small percentage of their total work or profits. Windhoek Printers, the largest in Namibia, only prints about 10 percent of textbooks. Approximately 70 percent are printed outside Namibia. The major reason for printing textbooks abroad is in the high costs and long delivery times of local printers.

Finance Sida assisted with the purchase of textbooks for the new junior secondary curriculum by making R888,494 available in 1991, and the European Community provided R3,103,030 in 1992 for the same purpose. There are no new projects in the pipeline and no firm indicators of new projects for textbook development or donor funding of textbooks to be initiated within the next few years. Source: Study on Textbook Provision and the Feasibility of Cooperation among SADC Countries, R.C.West and E. Maasdorp, 1994.

37


Purchasing and distribution A new tender system between Ministry, booksellers and publishers was introduced in 1994 under which each school was to be directly reached by a bookseller, and publishers were to promote their own products more strongly within the schools. Schools will continue to choose their own textbooks, but not the distributor/bookseller, since this is arranged on a tender basis by the Ministries of Finance and Education and Culture. The books are ordered by schools which place their request with the Ministry. Under the new tender system, it is then the bookseller’s responsibility to distribute the books directly to the schools. The major problem is shortage of storage facilities at schools.

Modes of textbook provision Figure 3.2 presents various modes of provision of textbooks in a sample of sub-Saharan African countries. These modes of provision correspond to a state-owned/controlled publishing environment (single textbook system), or a competitive/commercial publishing environment (multiple textbook system). Eight out of the 17 countries sampled apparently continue to use the single textbook system in the publishing of primary materials. One country also allows a choice of parallel titles in some subjects. The single textbook system means a government-controlled market, but some of these countries (for example, Malawi, Tanzania, and Zambia) are in transition towards open markets and liberalized textbook publishing. In three countries there is a choice of parallel titles in each subject. Five countries give limited opportunities for alternative titles in some subjects only. The variety of textbooks made available in a multi-textbook system emphasizes the opportunities for a buyer to make a free

Country

Modes of textbook provison in sub-Saharan Africa Primary education

Secondary education

Single

Multiple

Single

Multiple

Benin

✓

✓

Botswana

✓

✓

✓

Cameroon

✓

Ethiopia

✓

Ghana

✓

Kenya

✓ ✓

✓

Lesotho

✓

Malawi

✓

✓

Mali

✓

✓

Mozambique

✓

Nigeria

✓

✓

✓

✓ ✓

✓

✓

✓

Senegal

✓

Tanzania

✓

Togo

✓

Uganda

✓

✓

Zambia

✓

✓

Zimbabwe

38

✓

Source: MoEs in respective countries

✓

✓

✓

✓

✓


Figure 3.2

selection from several available titles. The aspect of competition in such a system is believed to provide a range of quality alternatives and to keep prices reasonable. Parallel titles are more common at secondary levels than in primary education. One of the reasons for this is that several countries have both government and private secondary schools, and the private schools are free to use any books. In principle, such permitted access to alternative titles gives business opportunities for publishers, but often only on a limited scale. The number of potential users of textbooks is frequently so small that the limited volume of sales does not allow publishers to invest in the generation of high quality textbooks or to establish extensive sales and delivery services.

39

Comparisons between various provision schemes should not be made too simplistically. The relevance of a particular scheme is really related to how the system works in practice and how it supports established education targets. The provision scheme alone does not give a comprehensive picture of publishing business. Policy makers should not be led to believe in simplistic ‘liberalization’ or other solutions; for example, change from a centralized system to a liberalized system of textbook publishing will not necessarily lead automatically to better quality and services. Policies alone are not enough. Clear strategies and plans are needed for implementation of policies and in order to concretize many functional issues. It would be presumptuous to give any all-encompassing recommendations for a suitable provision and publishing system. A working system (from both the demand and supply points of view) must take into account the circumstances in a particular country: for example, the general industrial climate and policies, the existing stage of the publishing business, and the requirements of and needs for textbooks. There are several alternatives that fall between a strictly government-controlled system and a completely free system. Even within one publishing system there are several options for various functions. Thus, a government-controlled publishing system is not necessarily a completely closed structure in terms of all the functions, but it can, for example, utilize private-sector services for production and distribution. There is a trend towards more liberalized and open publishing systems in several African countries. Free systems give more choice than monopoly systems for users of textbooks as well as for publishers. A free system should not, however, be an end in itself – its value should be measured through the balance it achieves


Conclusion

40


between demand and supply: how does the freedom to publish support the freedom to select suitable tools for teaching and learning? Society (through government/Ministry of Education) can influence this balance through interventions related to finance, curriculum development and approval of textbooks.

p

Chapter Four

DEMAND AND SUPPLY

As indicated in Chapter Two, decisions on the types of textbooks to be published should be based on qualitative, quantitative and financial considerations. The starting point should be an idea of how the pedagogical needs can best be met and what the likely costs are, in terms of the technical process of publishing. In principle, these considerations should be the same whether books are published under a centralized system or by commercial publishers, and in a single or multi-textbook system.

41

The quality of a textbook depends on content (such as coverage, objectivity, emphasis and organization of subject matter), presentation (appropriateness for the classroom situation, suitability of language, motivational factors) as well as design and illustrations (suitability of format, use of colours, balance between text and illustrative material, typography, paper quality). This long list of variables should be considered before preparation of a manuscript is begun. Taking a stand on some of these important questions also means taking into consideration the costs of a textbook: for example the number of pages, format, use of colours, typography, and raw materials all affect costs directly. Unfortunately, the consideration of qualitative and financial issues together is not highly rated in African publishing. One of the major reasons for this is the prevalence of government-controlled single textbook systems, which means that there are no qualitative alternatives to use as a basis for comparisons of quality or price. The managements of commercial publishing firms, on the other hand, have to pay much more attention to the quality/cost mix to ensure their competitiveness and profitability on behalf of the owners to whom they are ultimately responsible. Quantity requirements for textbooks are related to school

Chapter Four DEMAND AND SUPPLY

The quality and quantity of textbooks

42

Figures 4.1 and 4.2 show the number of subjects, book/pupil ratios and lifespans of textbooks for primary and secondary education in some sample countries. The number of subjects taught does not vary significantly from country to country. The targets of primary education are often related to the basics of literacy, numeracy and science. Thus, the number of subjects is small and the number of required textbook titles is small, as well. On the other hand, the huge number of copies required in primary education is a big challenge from a publishing and purchasing point of view. The targets of book/pupil ratios in primary education vary from 1:1 to 1:3 (one book per subject and grade for every pupil or books shared by two or three pupils in a specific subject). According to the majority of answers received in the course of the study research, targets have generally been achieved. This data is, however, dubious, because there are very rarely any statistics or systematic recording of the situation in schools. The lifespan of textbooks is an average of three years in the countries where information is available. Books are usually the property of the schools and are reused by several age cohorts. More important than the number of books in the schools would be information on book usage. There is clear evidence in some countries that, even if the books are available, they are not always used. Various reasons for this have been discovered: headteachers would like to save rarely seen books for coming years; teachers are not familiar with how to use textbooks, and so on. There are usually more subjects in secondary education than in primary education and thus also more titles are required. In addition, the relative importance of textbooks (for self study) is greater at secondary levels and there is an aspiration to provide students with personal copies if possible. Therefore, a book/student ratio of 1:1 is quite a common target. As stated earlier, in countries applying monopoly publishing in primary education there is often a free choice of textbooks in


population, number of subjects and the number of titles needed for various subjects. The number of books required is also dependent on the number of copies purchased per pupil and the lifespan of the books. It is common for several pupils to have to share one book and that the book is reused by three or four age cohorts. Readership (which should be examined as the potential number of users) is, however, a different issue from the number of copies required. Production estimates must be based on • the number of new copies needed • the possible number of copies in stock • the replacement needs of old textbooks.

Figure 4.1 Number of subjects, book/pupil ratios and lifespan of books in primary education Country

Primary education No. of core subjects

Book/pupil ratio Planned

Actual

Expected life span of textbooks (yrs)

Botswana

5

1:1

1:1

3

Cameroon

5

N/I

N/I

N/I

Ethiopia

4

1:2, 1:3

1:2, 1:3

3

Senegal

5

1:1

N/I

3

Tanzania

5

1:3

N/I

3

Togo

4

1:1

1:1

3-4

Zambia

5

1:2

1:4

3

Zimbabwe

5

N/I

1:7

3


Figure 4.2 Number of subjects, book/pupil ratios and lifespan of books in secondary education Country

Secondary education No. of core subjects

Book/pupil ratio Planned

Actual

Expected life span of textbooks (yrs)

Botswana

10

1:1 – 1:6

1:1 – 1:6

3

Cameroon

5

N/I

N/I

N/I

Ethiopia

1:2, 1:3

1:2, 1:3

3

Tanzania

1:1

N/I

3

1:10

3-4

Togo

5

Zambia

5

1:1

1:2

4

Zimbabwe

8

N/I

N/I

3

43

secondary education. This gives opportunities for private publishers, but sometimes the opportunities are not commercially feasible. The potential number of users (often only in private schools) is small and thus the numbers of copies required are very much lower than for primary titles. This does not encourage big investments in quality. Foreign competition is also hard in secondary education and sometimes it is easier for local publishers to adapt a foreign title than to start from scratch. The basis for such




44

a decision must be made on a comparison of the costs of licensing and adaptation against those of developing new materials, as well as an analysis of marketing issues such as customer loyalty to existing titles. In the centralized system, textbook publishing is more a production oriented than a marketing oriented business. In principle, monopoly publishers should know the exact number of textbook users (as explained above), and then produce a set number of copies according to specific targets. However, in practice, this often occurs with no consideration of the real requirements of users: schools receive books according to a plan over which they have no influence, resulting in either under-provision or over-provision. In a free market system, if there are several alternative titles for selection by the customers, publishers have to take into account competition, too. Thus, sales estimates always include a certain risk element. Publishers try to predict their sales so that they do not produce too few or too many books. The former situation means unsatisfied and angry customers, and the latter means extra costs from keeping unnecessary books in stock. Accurate production figures for textbooks should be in the interest of both monopoly and commercial publishers. Such estimates can only be based on a sound information system so that all the variables for sales/production and distribution are known: number of copies needed according to enrolments, book/pupil ratios, lifespan of books, reuse rates and stock figures. The present data shows that no such comprehensive information systems exist in any sub-Saharan country. The unfortunate consequence of this lack of information is that provision does not meet requirements, or, if requirements are met, it is more the result of accident than of careful planning. Private publishers have to be more careful than monopoly publishers in making their estimates because they must bear responsibility for their mistakes themselves. Unfortunately, publishers and others in the commercial book trade find any information related to sales or market share highly sensitive and they may well be reluctant to share their knowledge with researchers. Figure 4.3 opposite provides a basis for analyses of the provision of textbooks. Requirement, production and distribution figures are based on the Tanzanian situation (see also Case study: Tanzania, page 26). It compares results of textbook provision with target requirements to give an overall picture of situation. However, a working planning and monitoring system needs more detailed information in the form of class by class and title by title consideration which is not presented here due to lack of data. Financial data is not available for this example either, and therefore the emphasis is on overall quantities of textbooks only.

Figure 4.3

Requirements vs. production and distribution

1 Enrolments

1993

1994

1995

3 733 000

3 793 000

3 872 000

168 000

174 000

184 000

3 901 000

3 967 000

4 056 000

Primary education

5

5

5

Secondary education

7

7

7

Primary education

3

3

3

Secondary education

2

2

2

Primary education

60

60

60

Secondary education

65

65

65

3 733 000

3 793 000

3 872 000

Primary, grades 1-7 Secondary, forms 1-6 TOTAL 2 Quantity determinants Number of titles

Book/pupil ratio (1=1:1 etc.)

Lifespan of books (Replacement rate)

3 Requirements Primary, grades 1-7 Secondary, forms 1-6 TOTAL

382 200

395 850

418 600

4 115 200

4 188 850

4 290 600

4 Production (a) Actual TOTAL

1993

1994

1995

3 393 000

4 161 000

2 293 000

(b) Difference between actual production and requirements

TOTAL

1993

1994

1995

-722 200

-27 850

-1 997 600

5 Distribution (a) Actual TOTAL

1993

1994

1995

3 230 000

3 608 000

2 853 000

TOTAL

1993

1994

1995

-163 000

-553 000

560 000

(c) Difference between actual distribution and requirements

TOTAL % Difference

45

1993

1994

1995

-885 200

-580 850

-1 437 600

-21.5

-13.9

-33.5

Sources: Basic Statistics in Education 1991–95, MoEC, 1996. MoEC/BMU


(b) Difference between actual distribution and actual production

Notes to figure 4.3: Enrolments (1) There is a trend towards increasing primary and secondary enrolments during the three-year period in question. Quantitative determinants (2) These are the variables which have been defined in education policy for public schools. They do not reflect the real situation in private schools especially in secondary education. Number of titles is related to subjects where textbooks are needed. The figures take an average number of titles as an example and do not take into account possible yearly variations. Book/pupil ratio in primary education is given as 3 (1:3) which means that three pupils share one book. The corresponding book/pupil ratio in secondary education is 1:2 (two pupils share one book). Requirements (3) Calculated according to quantitative determinants. The figures in this example are averages and do not necessarily take into account variations of individual titles. Stock situation of schools has not been available in actual figures for requirement estimates.

Conclusions The yearly production of textbooks has been smaller than estimated requirements in this three-year period. Difficulties in distribution have diminished the availability of textbooks, as well. The major reasons why supply has not met demand are poor market information and lack of funds.

Financing needs

46

Financing needs, for publishing or purchasing, can be directly derived from the number of copies needed. Schools as well as local and central authorities should easily be able to make estimates for funding of textbooks, even in the longer term, as long as enrolments, number of titles, book prices and other variables are known.


Production (4) and distribution (5) Presented in total figures without breakdown between primary and secondary sectors. Comparisons have been made between actual production and requirements, actual distribution and actual production and actual distribution and requirements.

These estimates should be a natural part of a master plan for textbook purchases. Scarcity of funds returns funding questions back to qualitative and quantitative variables of textbooks: how many books are really needed and what should be the quality of the textbooks in order to achieve the desired educational targets? Unfortunately, these considerations are not based on comparisons between various alternatives in African countries. Technical determinants (such as number of pages, format, colours, or raw materials) are not costed out and weighed together with qualitative variables. If funds are available, even the poorest countries buy single use books in glorious colours (or are provided with such books by donors).

Conclusion

47


The starting point for considerations on types of textbooks to be published should be an idea of how pedagogical needs can best be met and what this costs in terms of the technical process of publishing. Production estimates must be based on the number of new copies needed, possible number of copies in stock, and replacement needs of old textbooks. All this requires a good information system which is the ultimate basis of successful operations in textbook provision. The system should be established by education ministries in collaboration with publishers.

p

Chapter Five

PUBLISHERS: SIZE, PRODUCT AND OWNERSHIP

Staffing and effectiveness Figure 5.1 indicates some key figures from a sample of 34 publishers from 12 countries (Benin, Botswana, Cameroon, Ethiopia, Ghana, Kenya, Lesotho, Namibia, Senegal, Togo, Zambia, Zimbabwe). The data is categorized according to the average number of staff of the 34 sample publishers. During the course of the study research, information on turnover and market share was given by a limited number of publishers. Therefore in Figure 5.1, the sum of the three groups (IIII) of the publishers is smaller than the total number of the sample. The publishers who provided quantitative information on sales are grouped in three categories: I (turnover of 1995 more than US$ 1 million), II (turnover of 1995 less than US$ 1 million, but more than US$ 0.5 million) and III (turnover of 1995 less than US$ 0.5 million). The number of publishers in each category is shown at the side of the category heading.

Figure 5.1

Key figures of a sample of publishers

49

Publishers All (34)

I (5)

II (4)

III (7)

A Average number of permanent staff

23

49

18

10

• Average number of editorial and design staff

4

7

4

2

• Average number of sales staff

3

5

4

2

• Average number of other staff 16 (Administration, management etc.)

37

10

6

B Average turnover, 1995, US$

N/I

1 250 000

682 000

154 000

C Average turnover/ capita, US$

N/I

25 510

37 889

15 400

Sample: 34 publishers from 13 countries

Chapter Five PUBLISHERS: SIZE, PRODUCT AND OWNERSHIP

Data

The average number of permanent staff of the sample publishers is 23. The biggest publishers (Category I) have an average staff of 57, publishers in Category II 18 and publishers in Category III 10 staff members. The number of staff compared with turnover gives an idea of how effectively a company produces its textbooks according to its human resources. Even though the financial data in Figure 11 has been received from only a limited number of publishers (16), it gives an opportunity to make some general observations. The highest turnover per capita is in Category II. These publishers achieve turnover which is about half of that in Category I, but the number of staff is much less than half that of the biggest publishers. Publishers in Category II have relatively more editorial and selling resources than big publishers, but fewer management and administration staff. Most of the publishers in this category are private ones and they are obviously more conscious of personnel costs than big publishers (this sample includes two big parastatal publishers).

50

Textbook publishing is a business that needs a relatively long time for preparation of manuscripts (writing, editing, illustrating, testing etc.), well-educated and experienced human resources as well as funding of often long print runs. A textbook publisher also deals with institutional sales (Ministry, schools) which means long credit times and high interest costs. Financially a publisher has to sell a high enough volume to be able to continue his business in the longer run. Steady selling titles are the basis of a well established publishing business. The biggest opportunities for volume sales are in primary education. On the other hand, in a competitive situation the biggest investments are also needed for quality and big print runs in this area. Centralized purchasing of primary books is, however, often the biggest barrier to publishers, because purchases are made from selected publishers only (usually parastatals). An approval system can also effectively eliminate potential publishers if the publishers do not meet qualitative requirements (especially where the quality criteria are of a subjective nature). An approval system can also be a hindrance to new publishers if the system is not transparently fair. The other alternatives for sales, apart from primary books, are often limited. However, secondary books still give a good potential market in countries with high populations and especially in those with a good number of private schools. General titles sell poorly


Volume and value of sales

everywhere and do not help to establish a firm basis for the high demands of textbook publishing. There is no reliable, available data on volume (number of copies) and value of sales of textbooks in African countries. Publishers find this information too sensitive in a competitive situation and very rarely give any detailed figures. Some general conclusions about potential market sizes and even costs can be drawn by using the model presented in Figure 4.3, where numbers of copies can be calculated according to enrolments, book/pupil ratios, lifespan of books and reuse rates. Unfortunately, these estimates only give a theoretical basis for textbook sales and do not actually relate to real annual sales. Some education ministries purchase titles in bulk during one year and then make no further purchases for several years. Such procurement policies make sense from the point of view of economies of scale (longer print runs mean lower unit prices), particularly from the buyer’s point of view. However, such a policy also tends to mean that books lost or damaged cannot easily be replaced and that there is no incentive for publishers to develop sales and distribution networks. Without continuous purchases publishers live from hand to mouth, depending entirely on occasional large contracts, and lacking any solid basis for their business.

51

According to Figure 5.2 on the next page most publishers in the sample of 32 publishers in 13 countries publish all types of titles. However, ten publishers from seven countries seemed to concentrate very clearly on textbooks. The average share of textbooks out of their total turnover was 83 percent and the share of other titles 17 percent. The main reason for the big share of textbooks is obviously that the textbook market is the biggest potential sector of the book trade and the market information is more easily available than that for general literature. On the other hand, most of the publishers in the sample are small and unable to concentrate on textbooks entirely, so seek instead to utilize all possible opportunities for sales. The majority of publishers (88 percent of the total sample) publish both approved primary titles and general literature. There is no breakdown of sales and we do not know how important primary sales are in practice. As textbook purchases are centralized in many countries, the publishing of primary titles cannot be as significant for all publishers as indicated in the replies. Perhaps the answers reflect desires rather than reality. However, the publishing


Range and specialization

Figure 5.2

Types of books published

Book category

Number of

% of total

publishers

publishers

Approved/prescribed textbooks for primary level

28

88

General titles

28

88

Supplementary reading materials for pupils

26

81

Approved/prescribed textbooks for secondary level

25

78

Books for teachers

19

59

Non-approved textbooks for secondary level

17

53

Non-approved textbooks for primary level

16

50

of primary textbooks, where possible, is the backbone of business for any publisher as it can give needed volume and sometimes steady sales. Similarly, publishing of supplementary readers can provide commercial stability if there are continuous sales to schools and if private buyers are also interested in the books. The number of new titles published during the three previous years and the estimate for 1996 shown in Figure 5.3 further clarifies the nature of African publishing, even though the sample is very small for making comparisons. The table shows a relatively small volume of publishing. Even the number of new titles published by the biggest publishers is small and means that it is hardly likely that books are published in all categories of interest (See Figure 5.2) every year. Many of the small publishers produce at best a few new titles a year and sometimes none. The number of books on the backlist (See Figure 5.3 opposite) tells how many titles a publisher has on sale at a particular time. A good number of steadily selling backlist titles secures a publisher’s economy. Good backlist management, however, requires that books are available according to estimated annual or seasonal sales. Large numbers of unsold (or even worse, unsaleable) books in stock for long periods is a financial burden.

The issue of ownership

52

According to Figure 5.4, domestic ownership of publishing houses is clearly dominant. In 80 percent of the sample publishing houses, domestic ownership is more than 50 percent, which also means



Figure 5.3 Average number of new titles published annually in 1993-95 and planned for 1996, plus backlist figures Year

Big publishers Total staff: 30 or more

1993

26

8

6

1994

20

8

3

1995

19

11

4

1996 planned

20

19

5

375

118

16

Backlist

Medium publishers Total staff: between 10 and 30

Small publishers Total staff: less than 10


Figure 5.4 Ownership

Domestic vs. foreign ownership of publishing houses Domestic ownership 100%

Domestic ownership between 50 and 100%

Domestic ownership between 0 and 50%

Foreign ownership 100%

Publishers

17

7

2

4

Percentage (%) of total (30)

57

23

7

13

domestic authority. More than half of the publishing houses are totally domestic owned. However, even if the percentage of the totally foreign owned publishers is relatively small, their influence is often much bigger. The financial and human resources of foreign owned companies are often better than those of domestic publishers, and the overseas parent companies can back the local companies significantly in many ways. Although the influence of foreign publishers is often considered negatively in African publishing, foreign ownership or management does also provide opportunities for collaboration and transfer of know-how and technology.

Conclusion

53

Perhaps the most significant and also the most obvious conclusion of this Chapter is that governments must find more funds for education. Educational publishing cannot survive if funds for the



54


purchase of books are not forthcoming. This applies not only to the purchase of core materials but also to the steady purchase of supplementary materials to help establish and maintain sales and distribution networks for educational materials. Naturally, such funding must be made in the context of providing services to overall education provision, not as specific support for a publishing industry. The reluctance of commercial publishers to divulge specific information about their businesses highlights the need for macrolevel information exchange and collection. This can best be done by government and industry organizations working together to analyse markets from the supply and the demand sides. Early and special emphasis should be placed on management training which is the most fundamental requirement for running publishing houses successfully. Therefore, publishers’ associations, financially backed by governments, should create opportunities for training staff in all aspects of book publishing. Training could be integrated in university courses in media development, or in polytechnics.

p

Chapter Six

PUBLISHING FUNCTIONS IN A CHANGING ENVIRONMENT

Market research

The influence of education policies

55

As the major providers of education, African governments bear a heavy responsibility for policies that influence textbook publishing and ultimately education in general. The range of policies affecting textbook publishing is wide. State monopolization of the provision of education, both to the exclusion of other agents and in the face of limited state resources, is significant. Controlling (particularly through approval processes) the content of textbooks is also one of the most significant influences on textbook publishing. The degree of risk involved in a publisher investing in a new title depends greatly on the system of approval and the extent to which the manuscript or title must be in a finished form. In the event of

Chapter Six PUBLISHING FUNCTIONS IN A CHANGING ENVIRONMENT

Market research is rarely done in the African publishing industry, and even in specific studies on textbook markets it is difficult to find any proper analysis of issues relating to markets and marketing. On the other hand, where publishing is government controlled, issues such as market size, market segments and their development, competition, market shares, and the purchasing power of active and potential customers understandably do not interest the participants within that system. Surprisingly, publishers’ interest groups like APNET and national publishers’ associations have yet to collect any market data either. Therefore, any analysis of the problems of publishing in general and textbook publishing in particular is based more on opinions and guesswork than on facts. Naturally, therefore, decision-making tends to reflect the opinions of high officials in the hierarchy of power than the results of research or professional opinions.

failure to be approved, a publisher who has had to present a printed book for evaluation stands to lose a much higher investment than a publisher who has been able to present a manuscript or even camera-ready copy (CRC) for approval. Transparent, flexible and early (CRC) approval systems are less risky than systems which demand expensive investments in the form of ready made textbooks. Other consequences of education policy that influence textbook publishing include frequent and unplanned curriculum changes. Such changes can result in heavy losses to and even bankruptcy for publishers who may still have in their warehouses large stocks of books that suddenly are no longer saleable. However, none of the above education policies influence publishing to anywhere near as great an extent as the general lack of adequate financing of education (see also Policy checklist, Figure 8.2 on pages 104–5).

Preparation and evaluation of manuscripts Figure 6.1 shows the options available to publishers in respect of manuscript acquisition. Options A and B are the most common in fully commercialized publishing but options E and F may also be entry points for publishers just entering the field of textbook publishing, and not yet in a position to develop their own manuscripts from scratch. Option C is common in transitional situations. Option D is operative in state publishing and represents a monopoly model where manuscript development is done exclusively by one institution.

Sources of textbook manuscripts

Source of manuscripts

% of total (30)

A Individuals write materials and offer these unsolicited

25

83

B Publisher commissions writers to develop materials

25

83

C Publisher bids for manuscripts written centrally by a curriculum body

13

43

7

23

E Publisher licenses manuscripts from foreign publishers

10

33

F Publisher adapts manuscripts from existing materials

12

40

D Publisher automatically receives manuscripts written by a curriculum authority

56

Number of publishers



Figure 6.1

Pre-testing and evaluation

57

The study findings show that, while pre-testing and evaluation of manuscripts is often a theoretical requirement of centralized systems, in practice this is rarely done by curriculum development institutions and almost never by commercial publishers. In addition to lack of financial resources for these exercises, there is an inbuilt tendency for authors to be satisfied with their work if they are protected by official authority. Testing is an expensive undertaking because trial copies have to be produced in sufficient numbers to make testing meaningful and even if they are only


Authorship is increasingly becoming a group activity, even with commercial publishers, because several authors working together tend to produce better manuscripts than individual authors. An important factor in motivating authors and authorship and one that is lacking in countries where curriculum developers also write textbooks is financial interest in the textbooks they write. Being salaried civil servants, authors of textbooks employed by institutes of curriculum development are seldom paid royalties. It is argued by proponents of private publishing that, for this reason alone, textbooks commissioned from authors by commercial publishers are likely to be better than those written by curriculum development institutions. On the other hand, among the reasons given to justify using curriculum developers for authorship of textbooks is the lack of qualified textbook authors elsewhere. This may be true, depending on the existing policy on textbook authorship and publishing. No individual author or publisher will waste their time or funds on textbook writing or publishing if they know that their manuscripts will not be considered for adoption by the education system. Furthermore, textbook writing, like other skills, must be developed through constant practice and training. If publishing is to be fully commercialized, as policy change demands in many countries, authorship will have to be vested in individuals and teams identified by publishers. Curriculum development institutions should retain an advisory role to publishers during manuscript development so that the manuscripts meet the standards set by education ministries. Another way to encourage authorship would be to allow individual teachers, including those working for curriculum development, to contract with publishers to develop suitable manuscripts in their own time. In any country, the assurance that their books will have an equal chance of being sold to the education system is a requirement for publishers before they can commit their funds to turning their manuscripts into textbooks.

mimeographed the cost can still be considerable. Pre-testing has to cover schools in different geographical areas to be representative and requires resources to cover many costs. Nevertheless, pre-testing and evaluation must remain an objective requirement in the development of textbooks because only classroom situations can give the most relevant responses to new textbooks and their effectiveness. Indeed, curriculum development institutions should consider their major responsibility to be the evaluation of manuscripts, and in this role they should encourage and assist publishers to make pre-testing a regular step before publishing textbooks. This seems to work well in Zimbabwe and could be emulated by other countries. The question of costs of evaluating manuscripts on behalf of publishers is often raised. It is understandable that education ministries and/or curriculum development institutions cannot afford to use their staff to evaluate manuscripts for publishers at no charge. On the other hand, publishers can ill afford to publish books that they are not sure will be approved or recommended. The information from publishers indicates that they are ready to pay for that service, especially if it is reasonably fast and does not throw their schedules out of line.

Approval

58

Where officially only one textbook is allowed, pan-territorially, per class and per subject one can only hope that the book is as good as possible. In a competitive situation, it is buyers and users who determine the quality of textbooks through making informed choices regarding the quality and price of the books. The absence of competition between textbooks from different publishers must be acknowledged as one reason for the slow development of quality textbooks in Africa. Thus the move towards liberalization of textbook publishing that is underway in a number of countries will be complete only when more than one textbook per subject is approved and schools or other approved bodies, such as the local (district) education committees, can decide which textbooks among many they prefer. To build a workable approval system, if any system is desired,


Approval of textbooks is an important and contentious issue in African publishing. The two methods that are currently in practice are: • automatic prescription of textbooks written by curriculum development institutions as the only approved textbooks; • recommendation of several textbooks in addition to the one written by the curriculum development institution.

careful consideration is needed to define its objectives, and establish appraisal criteria, analysis requirements and system needs. There is a danger that, without well thought-out objectives and criteria, an approval system will be time-consuming, expensive and ultimately an obstacle to the development of textbooks. Figure 6.2 below summarizes issues of textbook development from the point of view of assessment and evaluation. Different combinations of criteria for appraisal can be made according to the objectives of the system. If an approval or recommendation system of new titles is desired, attention must be paid to the outputs and value of that system and the price required to cover the costs of the system. The more comprehensive the system, the more human resources, money and time are needed. However, the comprehensiveness of a system does not always guarantee the quality of textbooks. The

Examples of approval systems

Definition of objectives

Criteria for appraisal

Analysis requirements

System needs

To assist teachers in qualitative selection of textbooks.

Quality control based on content quality and/or physical quality of textbooks such as • relevance to target group • accuracy • readability • legibility • durability etc.

Pedagogical evaluation: • field trialling • expert analysis against given criteria on synopsis of a book and/or sample chapters or complete manuscripts with possible page layouts or printed book or combinations of the above.

• Criteria to be established. • Tryout system. • Pool of experts to be established. • Cost of the system to be estimated; funding arrangements to be considered.

To maintain desired price level.

• Price control based on financial information from publishers and affordability to buyers.

• Financial evaluation against calculations prepared by publishers and general economic variables.

• Standard costing and pricing formula to be established.

To check social-political correctness.

• Content control based on socialpolitical criteria.

• Expert analysis against given criteria.

Criteria to be established.

• ‘Checklist’ evaluation on samples.

• Checklist to be established. • Register to be established. • Information system to be established.

To meet needs • Registration of textbooks based of information on minimum needs on subject/ of pedagogical grade relevance, coverage and accuracy and new textbooks. technical quality.

59


Figure 6.2

final value and usefulness of textbooks can often be examined only through wide use of books in the schools over the course of time. Therefore, education ministries should carefully consider, while establishing or improving an approval system, what aspects of the textbook control should be taken care of by authorities and what can be left to the responsibility of publishers.

Aspects of production Desktop publishing capacity Desktop publishing (DTP) technology enables publishers to prepare manuscripts to camera-ready copy (CRC) and even to pre-film stage on their own. It provides revolutionary ways to prepare manuscripts of better quality and with greater cost-effectiveness. The number of African publishers using DTP technologies has increased considerably over the last five years, although, as is evident from Figure 6.3, still less than half of the publishers provide their own typesetting services. Even if they do not own their own computers, publishers have fairly easy access to secretarial services that also act as DTP specialists. The evolution of DTP has had a very positive impact on publishing in Africa and has been responsible for improvement in the quality of books from the point of view of design and of proofreading. The development and growth of this technology in Africa as elsewhere has been of great benefit, and has increased the ability of publishers to control the speed of origination of their books. However, an erroneous belief has also grown that everyone can now be a master book designer as a result of owning a DTP facility. Individuals with less than professional mastery of DTP and design

Typesetting services used by publishers

Typesetting services and equipment Own services

12

Outside services

7

Both own and outside services

8

Services abroad

Own typesetting equipment Own DTP equipment

60

Number of publishers (out of 26)


10 (32% of works on average) 12 9 Macintosh 6, IBM 3


Figure 6.3

Production capacity

61

Production capacity in most African countries is low, either because of small and outdated manufacturing plant or, more frequently, because of weak, under-experienced management. Production services are often purchased abroad (See Figure 6.4). It is evident that publishing can flourish better where the printing industry is well developed. South Africa, Mauritius, Nigeria, Zimbabwe and Kenya, have the best printing industries in sub-Saharan Africa. Mauritius in the Indian Ocean is developing into one of the best printing countries and is already competing with the south-east Asian countries in offering its services to countries from Africa and Asia. In francophone Africa, Ivory Coast and Senegal have relatively good printing industries. The devaluation


skills have set up shop as DTP specialists, and the tendency of publishers to rely on them for layout and design has often produced very poor results. The fact is that, as much today as in the past, book design is a specialized art that requires training and constant practice. Publishers should not leave this important element to others unless they are sure that those others are skilled professionals. Publishers, and particularly editors, must be able to communicate with the professional typesetters now using DTP technology, as well as with printers, and there can be no alternative to the study of book design and to the understanding of production processes for either the editor or the designer. The most favoured DTP systems are the Apple Macintosh computers and printers linked to scanners for illustrations. With the advent of Windows-based software, the competitive edge that the Apple Mac enjoyed over IBM compatible computers no longer exists and IBM systems are increasingly being used. In some countries there is more than ample DTP capacity. In fact the idea that every publisher should own such a facility when one unit could serve several publishers with capacity to spare, is something that African publishers should consider more deeply. Most African publishers are small and do not have the financial and human resources to publish more than a few books every year. Bearing in mind the financial outlays for a fully fledged DTP facility, it would make more sense for two or three small publishers to share the costs of purchasing a system than for each publisher to go it alone. An alternative would be for a publishers’ association to own a system and for its members to purchase its services, as is the case in Tanzania. Such an arrangement has the added benefit of providing a source of operating income to the association.

Figure 6.4

Production services purchased abroad

Production services

Average (%) of services

Range (%) of services

Typesetting purchased abroad

12

0–97

Textbooks printed abroad

35

0–70

Other production services purchased abroad: – paper (3 mentions) – cartographic services (2) – ink (1) – film (1) – design (1) – training (1) – consulting services (1)

of the CFA has contributed to making printing in these countries competitive with printing in France. The situation of Nigeria warrants special comment. Although the country has all the necessary requirements for as good a printing industry as anywhere in the world, it is greatly affected by political turmoil as well as by erratic supplies of paper due to foreign exchange shortages for imports, power rationing and state bureaucratic hurdles in connection with payments to publishers and printers for books supplied. In a number of countries such as Tanzania, adequate capacity for printing has existed for a long time. State monopoly policies that confined textbook printing to parastatal companies and excluded private printers were responsible for the eventual decline of their industries. Lack of competition for the parastatal companies resulted in carelessness, waste and bad print quality. Machinery was run down for lack of maintenance and spare parts. This situation is changing in favour of competition, better management of resources and better print quality.

Raw materials

62

The basic raw materials for publishers and printers are paper and cover board. Other materials like ink, films, plates and binding materials are minor cost items. The cost of paper and cover board in long print runs exceeds 50 percent of the total production cost. Insufficient paper supplies are at the heart of the manufacturing problem in African countries. Poor paper quality is the next most significant problem. Few countries in Africa produce their own paper in sufficient quantities and of a quality suitable to meet their needs.



Figure 6.5

Access to domestically produced raw materials

Type of material

Domestic availability No. of publishers Availability (%)

Paper

14

55

Cover board

11

64

Ink

8

74

Reprographic materials

8

74


If no local paper is available, or the supply is less than demand, paper merchants very often benefit from the situation by hoarding and by increasing prices beyond those which pertain to the world market. Publishers or printers wishing to purchase paper abroad, need hard currency or large sums of local currency as cash cover for imported paper. Only a few can afford it. Another important aspect of raw materials is the efficiency of materials management in avoiding unnecessary wastage of paper, or preventing prevent theft, as this has an important influence on controlling costs.

Marketing: information flow, selling, distribution

63

Publishers use various marketing tools to inform their customers (users, booksellers, distributors) about their lists, such as titles available and prices. Figure 6.6 gives an idea of how a sample of 18 publishers from 12 countries view the importance of their marketing tools. The most popular methods include public announcements, textbook lists, and catalogues. This reflects a marketing situation where lack of textbooks in general and of alternative titles in particular makes basic information on availability of textbooks enough. Personal marketing methods, in particular, could be expected to play a greater role in Africa, where dialogue between people is infinitely more effective than an impersonal catalogue. On the other hand, written information is the cheapest way to reach various target groups. More expensive personal methods (such as visits to schools, or exhibitions) necessarily play a central role when competition increases. Figure 6.7 indicates booksellers’ methods of providing information to their customers. The data has been collected from 29 booksellers in 15 countries. It is worth noting that, in comparison with


Information from publishers to users and booksellers

Figure 6.6

Importance of marketing tools No (of sample) regarding A-G as:

Marketing tool A List of textbooks

Most important

Second most important

Least important

10

5

2

B Publisher’s own catalogue

4

4

1

C Visits to schools by representatives

4

7

3

D National textbook catalogue

3

2

0

E Distribution

3

3

3

F Advertising

2

3

4

G Exhibitions

0

5

6


Figure 6.7

Booksellers’ methods of informing their customers

Marketing tool

Usually used

Sometimes

Never

Visits to schools

10

11

2

Advertisements in newspapers

6

13

4

Sales letters

6

14

1

Exhibitions

6

12

4

Sample copies

5

7

4

publishers, more personal marketing methods are used by booksellers to their customers. In addition to the above methods some booksellers also use telephone (3 mentions), radio (2), television (1), book flyers (1) and billboard advertisements in their marketing.

Selling and distribution

64

Publishers, distributors and booksellers each apply their own methods in selling and distributing their books and in determining their business terms. Figure 6.8 describes booksellers’ methods of procuring various titles for sale. The first two methods – individuals publishing and offering titles direct to booksellers, and booksellers approaching publishers to sell their books – are not very different. In most sub-Saharan African countries there are very few


Sample: 29 booksellers from 15 countries

Figure 6.8

Booksellers’ methods of procuring their products

Method

Yes

(%) of total

Individual publishers offer titles direct

19

76

Bookseller approaches publishers to sell their books

18

72

Bookseller bids for the right to provide books published centrally

8

32

Bookseller represents a foreign publisher(s)

8

32

Bookseller represents a domestic publisher(s)

8

32

Usually used

Sometimes

Never

Visits by customers to shops

27

2

0

Order collected by sales staff

16

7

5

Through order forms sent to customers

5

16

3

Mail orders initiated by customers

3

13

7


Figure 6.9

Ordering methods of booksellers

Ordering method

65

booksellers outside the capital cities. There are also few publishers – in some countries only one or two – based outside capital cities. There is, therefore, a closer mutual dependence of individual booksellers and publishers than there would be in situations where neither publisher nor bookseller depended so much on one or two business partners. One of the benefits of such close links is that information flow and personal contacts are better organized. Figure 6.9 shows the importance of personal visits, whether of buyers – institutional or private – to the booksellers (presumably at a bookshop) or of sales staff to schools or to those responsible for book purchasing at district or regional level. Booksellers’ personal selling methods support their contribution to personal information, too, as Figure 6.8 has shown. The discounts the publishers give to their customers (see Figure 6.10) are lower than those for non-textbooks, which may be up to 35 percent for retailers and more for wholesalers. Lower discounts to purchasers tend to reflect high volume of textbook sales as well as certainty of market and thus lower warehousing costs, too. Lower discounts also reflect a lower credit risk for the retailer or wholesaler as the sources of funding for textbooks are usually more certain.



Figure 6.10 Discounts given by publishers (average percentage/variation/ number of replies) Purchaser

Discount Primary books

Secondary books

Wholesalers

15% /30–10/ 10

15% /20–10/ 10

Government

11% /25–2/ 12

11% /25–2/ 14

Retailers

11% /20–2/ 15

10% /20–2/ 17

Schools

10% /20–3/ 16

10% /20–3/ 17

Private individuals

6.5% /20–0/ 14

6.5% /20–0/ 14

Figure 6.11

66

Cash and credit sale of publishers

Purchaser

Cash

Private individuals

13

3

Retailers

5

11

46 days (30–90)

Wholesalers

4

12

49 days (7–90)

Government

4

12

64 days (14–180)

Schools

3

13

43 days (7–120)


Credit

Average credit time (range) 30 days (30)


A curiosity is the discount to private individuals. It is not known how widely the discount is given, but as a practice it would lead to questioning of retail price from the booksellers’ point of view. Figure 6.11 shows that publishers sell mostly on credit and in some cases the credit period is considerable. Governments are the worst payers and even average credit periods are more than two months, ranging up to several months. Other credit periods are relatively long too; when contrasted with the usual demand for advance cash payment for the services publishers order from printers and the high interest rates charged by banks, any credit given is a heavy financial burden. It is often stated that in sub-Saharan Africa, poor roads and absence of other modes of transport are a serious impediment to book distribution. However, from Figure 6.12 opposite as well as from interviews with publishers and booksellers it is generally believed possible to transport books to the remotest areas of nearly every country, and for them to arrive there within two weeks of

Figure 6.12

Booksellersí delivery times for textbooks

Location

Average delivery time (range)

Capital city area

4 days (1–30)

Major cities and towns

5 days (1–20)

Rural areas

9 days (3–45)

Remotest areas

12 days (3–60)


despatch. The reasons for books not reaching these destinations in time should, therefore, be looked for elsewhere than in lack of transport. In contrast to centrally planned distribution by government departments, the private sector is able to make use of (and pay for) a variety of transport and distribution modes, and will select the mode best suited to the destination, required delivery time and cost. Furthermore, lack of motivation, uncertainty of payment after delivery and absence of pressure by education authorities at the lower echelons may account for part of the observed delays in delivery.

Success in the business of publishing, that has been characterised as having the right book in the right place at the right time and at the right price, cannot be achieved through ad hoc arrangements and inconsistent procedures. The same can be said about marketing efforts. ‘Right’ can only result from persistent search and research, so that the starting point is the needs of buyers and users. Only a competitive climate can create true alternatives for qualitative selection of textbooks. Competition should also lead to the generation of improved marketing services such as better information from suppliers to users, smooth ordering procedures, good availability of textbooks, and prompt deliveries. Such efforts require consistent long-term investments in marketing.

67


Conclusion

p

Chapter Seven

Patterns in PURCHASING AND FUNDING

69

In some countries textbooks were and still are distributed free. This, however, is unlikely to continue where governments do not have the financial resources to maintain the provision of free books. In the short and medium terms, however, governments will still bear most of the burden of supplying books. Different African countries are at different stages in developing their publishing industries and in some of them governmentcontrolled publishing is likely to remain for a considerable time. In others the transition process from the controlled to the market system has begun. Governments in these countries will remain as engines of growth for the textbook industry. The market is likely to develop in the direction of greater choices of different textbooks on the basis of quality and purchasing power in the hands of parents and their associations. That will inevitably lead to a diminishing role of government. It is clear that there are serious implications for the future of African education if quality textbooks are not be available in at least a ratio of 1:3, regardless of who supplies them. In this respect, in addition to government and parents, others must come in to supplement their efforts. Donor organizations and local as well as international NGOs are already key actors in funding books for schools. Churches and other religious organizations also supply books to the schools they own and run and undoubtedly they will have to take on an even greater share of this task in the future as governments continue to fall short of achieving reasonable book:pupil ratios. In most sub-Saharan countries, there would be very few or no textbooks at all without donors, their grants and loan funding. Whether funding textbook provision in this context qualifies as ‘economics of publishing in Africa’ needs to be debated. The facts that grants are conditional upon good relations between donor and

Chapter Seven PATTERNS IN PURCHASING AND FUNDING

Purchasing of textbooks

Funding of purchases 1995-96

Country

Source of funds (%) Ministry

Benin

N/I

Botswana

100

DEO, PEO

Cameroon

School

Parent

Project

N/I

N/I

30 USAID, WB

Other

100

Ethiopia

30

Kenya

7

Lesotho

100

Malawi

10

together

Sida 70 93

90 WB, CIDA

Mozambique

100 WB, Sida

Senegal

70

Tanzania

20

20

NGO 10 80 Sida, WB

Togo

100 Japan, WB, AfDB

Zambia

40

Zimbabwe

N/I

60% Sida, FINNIDA, WB, EU, ODA, UNICEF, British Council N/I

8 Sida, EU


70

recipient, and loans from multilateral institutions are often subject to fulfilling certain conditions constitute two of the reasons for the lack of medium- and long-term plans in the textbook sector and education in general in Africa. They also reinforce the secondary role that African planners play with the agents of the donors and loan givers. Solutions to the problem of textbook provision are therefore inseparable from that of the problem of general dependency on external agents and factors for internal structural change.


Figure 7.1

Availability Figures 7.2 and 7.3 indicate the availability of educational titles in bookshops and the activity of booksellers in selling their books in various parts of a country. According to the sample, the vast majority of booksellers sell all primary and secondary titles, but sell supplementary readers only selectively. Basic textbooks represent reliable sales; supplementary readers, on the other hand, more random sales. Booksellers are more selective in selling general literature. Unfortunately, the available data does not tell anything about the density of the bookshop network itself or the volume of sales in different parts of a country. An estimate by experience indicates, however, that bookselling is concentrated on bigger towns and bookshop networks in the country side are usually very sparse. How much this is a consequence of poor purchasing power and centralized distribution of textbooks should be a well-grounded reason for market research by publishers. Figure 7.2

Educational titles available in bookshops

Sales

Primary

All titles

Secondary

Supplementary readers

24

22

7

Some titles

4

7

22

No sales

2

1

0

Sample: 30 bookshops from 15 countries

Sales of bookshops according to sales territories

Sales

Active

Low

All regions

10

12

1

Selected regions

11

3

1

Selected districts

8

3

2

12

0

2

Selected towns

No sales

Sample: 22 bookshops from 15 countries

Who buys the textbooks?

71

According to Figure 7.4 overleaf governments are the largest buyers of textbooks, either directly from printers in monopoly systems where the governments themselves or state owned companies are the publishers, or through grants to districts or schools which then


Figure 7.3

Figure 7.4

Buyers of publishers’ volume sales, by percentage

Buyers

Primary books

Secondary books

MoE/Headquarters

38

20

Schools

27

22

Bookshops

17

42

Pupils/parents

14

12

Distribution company

4

4

MoE/Regional HQ

0

0

MoE/ Local HQ

0

0

100%

100%

TOTAL

buy their own books from commercial publishers. In most countries budget allocations for books have been declining and other parties – supporters of African education – are more often stepping in to supplement the meagre financial resources that are set aside by governments for book purchases. The most significant NGOs involved in education in Africa are mainly churches and other religious organizations. Their participation in textbook provision is in the direct purchase of textbooks and distribution to pupils in their own schools, or, where they themselves do not own schools, through grants to schools and communities. Other NGOs donate books or support book publishing and buy-back schemes in which fixed numbers of books are purchased from the publisher and donated freely to libraries. There is no readily available information or data on the extent of parent and parent associations’ contributions to purchases of textbooks in sub-Saharan African countries. Their contribution is more significant in some countries than in others. In countries where commercial publishing is the principal mode, their contribution tends to be greater than in those with centralized monopoly systems.

Free books or cost sharing?

72

The justification for free books still exists but the trend everywhere is towards cost sharing and there seems to be no realistic way to avoid it. The question that needs to be posed would therefore appear to be whether the whole population in a given country is unable to contribute towards textbook purchases or whether many parents could contribute significantly if they were given



options of how and when to do so. It is argued quite reasonably that many parents could make the contribution in cash or in kind if they were convinced away from the idea that books are a right they have for sending their children to school and if they were organized towards making their contributions in ways that were affordable and convenient. The importance of parent-teacher associations in this regard cannot be overemphasized.

Procurement systems have their roots in the political value systems that countries adopted either immediately after independence or as a result of experiences of the initial first years. The free and government-controlled systems already discussed in Chapter Three have political dimensions although the ideological aspect can be and is often overstated. One finds government-controlled systems in countries where the free market system operates, and within the countries with government-controlled provision there are aspects of the free system. The criteria for these procurement systems were based on expectations of efficiency, equity and resource management. Thus, the centralized planning system was predicated on economies of scale; that from a specialized single source of manuscripts to single publisher and distributor there would be integration and maximization of efficiency and savings. Experience has shown the limited success of this model in contrast to the free market one which has stood the test of time and produced more and better books. The transition from the government-controlled to the free market system raises a number of questions regarding new criteria for procurement. These concern: • the extent of free books and cost sharing; • the operation and management of publishing and distribution functions where institutional capacities are weak or lacking; • indigenous (local) versus transnational publishers; • the realistic basis of international competitive bidding, taking into consideration the fact that such bidding systems seldom address the full process of purchase and delivery to end-users.

The cost structure of publishing

73

The cost structure of publishing in Africa is not fundamentally different from that which applies elsewhere in the world. The


Procurement systems

Figure 7.5

Average cost structure of a textbook

RETAIL PRICE

100%

Discount to booksellers

23%

Payment to authors (royalty)

11%

Production costs (raw materials, pre-press work, printing, binding)

32%

Marketing costs (promotion, selling)

9%

Distribution costs

9%

Publishing overheads and profit (personnel, management, finance, profit)

16%


differences which there are lie in the availability of resources and the efficiency of their management, in the scale of operation, and in the size of the market. In Figure 7.5, the cost structure of an average textbook is broken down into its major elements, and their share in the cost structure of the retail price is shown.

74

The biggest individual cost shown here is that of production (32 percent of the retail price). The production cost includes raw materials (paper, cover board, films, plates, ink), pre-press work (composing, camera work, assembling, plate making etc.), printing and binding. The cost of inputs, paper and other materials, which are often all imported in Africa is the most important element in production. The cost of paper alone can take up to 80 percent of the total cost of production of a book in some cases (26 percent of the retail price in the example above). Production costs vary a lot between new titles and reprints. In addition, they are dependent on technical determinants like the size of a book, number of pages, number of colours used, type of paper, type of binding and so on. These important choices should be made already at an early stage of the process. Those who participate in manuscript preparation (writers, editors, designers, illustrators) must be aware of these facts in order to provide economic solutions. Both pedagogical and technical variables must be weighed together in order to arrive at an ideal solution. In other


1. Production costs

words, the costs can and must be planned. Since paper is the most expensive item the type and quality of paper to be used will be the most crucial decision in production. Unfortunately, African publishers are limited by unavailability of paper, and even when this is available there is rarely any range of choice of types, qualities or prices. The price of an individual book depends on the nature of the book (size, number of pages, colours etc.), but also on the total cost divided by the number of copies printed. The latter, the unit cost, is important in determining the optimum print run and in setting the price for the market. Figure 7.6 below gives an example of the effect of the print run on the unit production cost of an individual title. The example can not be taken as a standard cost as the cost varies according to the specifications of a book as well as machinery used for production. The total production cost of a book can be divided into fixed costs and variable costs. The total fixed cost (costs before printing) is not affected by the number of copies to be printed. It includes processing of text and illustrations, camera work, assembling, and plate making. The cost of this part of the work is the same whether 1000 or 100,000 copies of the book are then printed. The variable costs are affected by the number of copies to be produced. The bigger the print run the bigger the amount of paper, the more machine hours needed, and so on. To calculate the unit cost of a book, the fixed and variable costs

Effect of print run on production unit cost

Figure 7.6 5.0

Unit cost

4.5 4.0 3.5

2.5 2.0 1.5 1.0 0.5 0 1

75

2

3

4

5

7.5

10

20

30

Print run in thousands

40

50

75

100


3.0

must be divided by the total number of copies printed. Therefore, the more copies the lower the unit cost. It is easy to see from Figure 7.6 how rapidly the unit cost comes down as the print run increases. Compared with a print run of tens of thousands, a few thousand copies is an uneconomical solution from a production point of view. The advantage of a big print run diminishes, however, by the time the number of copies reaches 40–50,000 in this example. The share of the pre-press costs (fixed cost) per copy is then so little that a bigger print run does not significantly reduce the unit cost. When determining an optimum print run, a publisher must consider economies of scale. There is an inherent danger in trying to apply the model in Figure 7.6 on a general basis. Scale does not reduce production costs – it increases production costs but reduces unit costs. The idea that money will be saved if 40,000 rather than 10,000 copies of a book are printed may be a false one. If only 10,000 copies of the title are needed (or can be expected to be sold), the investment in producing the extra 30,000 copies to reduce the unit price will either be wasted or will require extra costs of warehousing, tied capital etc. until the books are needed. The starting point for a publisher (or a government) to analyse economies of scale cannot be the production process. The first decisions must concern the required quality of the product from the point of view of the user (in terms of technical and content quality), and an indication of the number of copies required. Only after these targets have been set should the publisher begin to look at the different ways to achieve them. Should the optimum targets prove to be impossible to achieve in terms of price or technology, they should be revised and the ways to achieve them re-examined.

76

Marketing costs (discounting, promotion, selling and distribution) cover all the activities needed to get the books to users. In total, they represent the biggest percentage cost, (in Figure 7.5, 41 percent being made up of: discount to booksellers 23 percent, marketing 9 percent and distribution 9 percent). This high percentage is understandable because publishing is heavily dependent on good marketing efforts: to identify needs, make books known and get them to buyers. Marketing, as described earlier (see pages 63–67) is one of the biggest weaknesses of African publishing. Market research, promotion and selling are either not done properly and systematically or very few resources are allocated to them. Distribution costs are high because of the weakness of the transport infrastructure and lack of suitable alternative distribution channels.


2. Marketing costs

3. Development costs Writing a book, editing it, designing it and providing it with illustrations belong to the development process (preparation of manuscript). Some of the participants in this process may form the permanent staff of a publisher, but freelance editors, illustrators and designers are frequently used, too. The cost of permanent staff is included in a publisher’s overheads whereas freelance costs are usually included in the production cost. The percentage of publishing overheads (16 percent in Figure 7.5) also includes other elements and should not be seen only as development costs. In commercial systems, writers generally work as part-time authors. They normally receive a fee calculated as a certain percentage of the sales of a book (royalty), although other arrangements are also possible. The writer receives his/her remuneration during the life of a book for all the copies sold. The average royalty of 11 percent in Figure 7.5 reflects royalties for both primary and secondary textbooks.

77

Publishing overheads comprise the cost of the permanent staff and thus also management and administration cost. Financing costs and profit are also included in the example. The 16 percent figure for the publishing overheads is low compared with international publishing, where this percentage can vary between 25 and 35 percent. This different structure may have several explanations: freelancers are largely used instead of permanent staff, percentages of other cost factors are exaggerated or not based on reality, or different cost factors are defined differently . One of the cost elements in many countries is sales tax. In addition, there are also other taxes such as stamp duty and withholding tax. Taxation of textbooks is not always logical, especially if the government is the sole buyer of books: the buyer then simply takes money from one pocket and puts it into another. Publishers often complain about high taxes on textbooks and raw materials as being the only crucial obstacle to the publishing business. However, whereas carefully applied taxation can facilitate publishing, reduction of taxation will not solve anything if there are basic structural problems in the local publishing industry. In any case, taxation should not put local publishing in a more difficult position than its foreign rivals if the target is generation of local industry. There is no data available through the study on how textbooks are treated for taxation purposes in the various African countries. This is one of the details that publishers’ associations and APNET could supplement to give a fuller picture of local differences in costing.


4. Other costs

Pricing principles and their application

Formula (a) Unit cost + Profit = Price is still common in many African countries. The principle indicates a market situation where competition is small and a publisher can hope to get the price he asks. He calculates unit cost, adds on the profit and thus gets the retail price. Formula (b) Price – Unit cost = Profit suits the situation where a certain price level must be taken into account as a prime factor in a highly competitive market. From market research, the publisher knows the affordable price of a specific title on the market. He then tries to adjust his unit cost relative to the price, so that he can obtain the desired profit. Formula (c) Price – Profit = Unit cost illustrates the situation where the market price is still the starting point, but now the publisher is ready to adjust the profit percentage in order to keep the unit cost at a desired level. The examples (b) and (c) reflect a competitive situation where great flexibility is needed by publishers in adjusting price, cost and profit for a beneficial equation.

1. Mark-up method

78

The first pricing principle (a) is often applied to the mark-up method. Production unit cost is multiplied by a coefficient that depends on the cost structure and overheads of the publisher. For example, if the production unit cost is about one third of the total


Pricing, the process of determining at which prices the books will be sold, is the basic element of income generation. Therefore, every publisher strives above all to find suitable methods on how to best produce revenue and obtain the desired profit. Price should cover the costs as presented already in this Chapter, but it should also give a profit (margin) for generating capital and for making a publisher’s investments possible. For reasons already mentioned, the data on costing and pricing obtained from publishers in this study is scanty, but the information available is applied to the following pricing principles and methods to give an overall picture of the African situation. Pricing can be presented as an equation with three factors: price, cost and profit. Any of these factors can be the theoretical basis for different pricing principles depending on which of the factors is taken as the economic target of the business: (a) Unit cost + Profit = Price (b) Price – Unit cost = Profit (c) Price – Profit = Unit cost

cost, then the unit cost multiplied by the coefficient 3 gives the retail price: Production unit cost x 3 = Retail price e.g. US$ 1.50 x 3 = US$ 4.50 The method is very simple, but also relatively inaccurate. It can be best applied to rough estimates in order to determine an acceptable level of production cost and price, otherwise there is a danger that it is used in too mechanical a way and for all types of titles regardless of their cost variables. Especially in Africa, where financing costs and inflation rates can be high, a more accurate method is needed.

2. Gross profit method The two other principles (b) Price – Unit cost = Profit and (c) Price – Profit = Unit cost are based on the ideas where either profit or desired unit cost is the target. In both cases, the price is the starting point and it reflects a publisher’s aspiration to find the balance between the price asked and the price buyers are willing to pay. In a competitive situation a publisher must also carefully take into account prices of competitors. If the profit is the target (formula b) then the unit cost must be adjusted so that an acceptable price (acceptable by buyers) is reached. If the unit cost has to be at a defined level (as in formula c) then the publisher must be ready to adjust his profit in order to get an acceptable price. These principles often require calculations where several alternatives of the price, unit cost and margin levels are needed. Therefore, a so-called gross profit method is often used for these considerations. Gross profit (margin) is determined as an average

79

Gross profit method of pricing

Sales discounts (23%)

80 000 18 400

% 100.00 23.00

Net Sales royalty (11%)

61 600 8 800

77.00 11.00

Turnover production cost (Here: direct illustrations, design, word-processing, printing, binding)

52 800 25 600

66.00 32.00

Gross Profit

27 200

34.00

Price = US$ 4.00 Number of copies to be sold Price = US$ 4.00 Number of copies to be sold = 20,000 SALES = 20,000 x US$ 4.00 = US$ 80,000


Figure 7.7

percentage which should then contribute to overheads, finance costs etc. Figure 7.7 gives an example of this method by using average percentages of discounts and royalty from Figure 7.5. The data in Figure 7.7 is similar to that in a profit and loss account and is based on the same idea for comparing income and costs. The method, however, leaves the calculation at the level of gross profit. It assumes that a certain average percentage covers the average overhead, finance and other costs, giving a desired average profit. This does not always fit into reality, especially in competition, when different titles have different constraints to cover costs and gain profit. Cost structure may vary title by title and this ‘average thinking’ can lead to an unfortunate economic result. Therefore, this method too can be criticized as simplistic and failing to give a realistic picture for pricing. However, if the calculation is continued further (still using the profit and loss account as a model) it gives a full picture of the cost structure and thus also the full data for price considerations.

80

This method takes into account variations of different titles. As stated above, the structure of the calculation is the same as in a profit and loss account. Therefore, it is easy to compare the profitability of an individual title with the that of a group of books or the whole company. The various cost factors used in the method reflect direct cost and indirect cost. Direct costs such as discounts and some other elements of the marketing cost, royalty, and production costs can be assigned to an individual title. Conversely, indirect costs like overheads can be handled as average costs which mirror the cost structure of a company rather than that of a single title. This method makes it possible to look at financing costs, too, which is especially important in the countries where interest and inflation rates are high. Unfortunately, too many publishers forget this cost category when their own funds are available and only take it into consideration when they need a bank loan. Figure 7.8a gives a simplified example of a net profit calculation. The cost factors are presented according to the information in Figure 7.4 and they reflect average costs of a sample of publishers. In this example the estimated economic result would be negative. Operating profit does not cover finance cost and taxes. Either the price is too low or costs too high. The publisher can try to adjust either the former or the latter, or both. If the price only is adjusted, an increase of more than 30 percent is necessary to get a positive result. Before increasing the price, however, the publisher must decide whether buyers will be willing to pay the higher price.


3. Net profit method

Net profit method of pricing (1)

Sales less discounts (23%)

80 000 18 400

% 100.00 23.00

Net Sales less royalty (11%)

61 600 8 800

77.00 11.00

Turnover less production cost

52 800 25 600

66.00 32.00

Gross Profit less overheads (34%): (Editorial, marketing, management, administration)

27 200 27 200

34.00 34.00

0 2 640

0.00 3.30

3 200

4.00

5 840

11.06

Operating Profit less finance cost: interest less other costs (4%) (depreciation, taxes) Net Profit

81

Price = US$ 4.00 Number of copies to be sold = 20,000 SALES = 20,000 x US$ 4.00 = US$ 80,000

Unit cost = US$ 1.28 Estimated sales = 20,000 copies PRODUCTION COST = 20,000 x US$1.28 = US$ 25.600

Interest on 30% of total production cost and overheads @ a 20% annual rate. Term of

loan, 10 months.

If a publisher wishes to adjust costs only, this is most easily done through production and marketing costs because they are easier to influence than other costs. (It may be difficult to make unilateral changes to booksellers’ discounts, authors’ royalties and finance costs, or to reduce overheads in a short period of time.) In the example, a reduction more than 25 percent of costs would be needed to achieve a positive level of net profit. However, the changes to the technical specifications necessary to effect the savings may change the book in question quite dramatically. Therefore, if a publisher may most easily achieve a positive endresult through a combination of reducing production cost at the same time as increasing the retail price if it is possible. In Figure 7.8b overleaf the production cost has been reduced by 15 percent. This can be done, for example, through reducing the number of pages, paper quality, or number of colours. At the same time, the retail price has been increased by 15 percent. These two factors together give a positive net profit, but not much more. What should be a satisfactory level of net profit is a question only individual publishers can answer, according to their business targets. The net profit method is a better way of helping the publisher to


Figure 7.8(a)

Net profit method of pricing (2)

Sales less discounts (23%)

92 000 21 160

% 100.00 23.00

Net Sales less royalty (11%)

70 840 10 120

77.00 11.00

Turnover less production cost

60 720 21 760

66.00 23.65

Gross Profit less overheads (34%) (Editorial, marketing, management, administration)

38 960 31 280

42.35 34.00

7 680 3 713

8.35 4.04

3 680

4.00

287

0.47

Operating Profit less finance cost: interest less other costs (4%) (depreciation, taxes) Net Profit

The price has been increased by 15% from US$ 4.00 to US$ 4.60 New Sales = 20,000 x US$ 4.60

The production cost has been reduced by 15%

The gross profit has increased from 34% in Figure 7.8(b) up to 42.35%

Interest on 30% of total production cost and overheads @ a 20% annual rate. Term of

loan, 14 months.

examine all the possible opportunities to balance cost and price. If the publisher wants to allow for possible cost adjustments the cost and price estimates must be available at an early stage of the process, while the most important decisions on technical variables are still open. Estimates can then steer the process into the desired direction. It is not possible to get a totally exact picture of the costs of an individual title in any costing and pricing system. Not all the costs can be assigned to a specific title as there are always inaccurate costs such as overheads which must be taken into account as rough percentages. These percentages are often calculated from profit and loss accounts from previous years, and, as historical data, they do not reflect the actual situation. On the other hand, mathematics is only a tool in pricing and sometimes the market situation and the state of the competition will have a greater influence on prices. A publisher may set a target of establishing a certain market share, and thus may be willing to forego higher profits in order to achieve this.

82


Figure 7.8(b)

Price comparisons

83

Comparisons between the products of local companies (a) often show that publishers tend to follow the prices of their competitors carefully. Whole series of books are priced equally, even if the individual books are very different. It is not known whether such prices are based on market information about the affordability of books or whether it is simply too risky for publishers to vary from the prices of books which are already on the market. Direct comparisons between the products of public and private companies (b) are not directly possible. Public monopoly companies do not usually take into account all of their overheads in costing and pricing and therefore their prices are not directly comparable with the private sector. In international comparisons (c) the prices of African textbooks are often low. (The fact that prices are envisaged to be high according to internal purchasing power is a different issue.) However, again, it is often difficult to compare real prices (as opposed to costs), especially in cases of bulk purchasing through tender processes which do not include all the functions of publishing, such as marketing and distribution. Similarly the importance of winning market shares plays a greater role in pricing decisions made by international companies than those made by domestic companies.


Prices of textbooks can only be assessed in relation to quality. A buyer wants to know what quality a publisher is offering in relation to the price. The price/quality consideration is justified even if there is only one title available. Comparisons between price and quality become more necessary when there are several alternatives available. It is usually assumed that the same quality should cost the same price and that added quality means a higher price. The quality of a book, however, often means different things to different buyers, and so fair and real comparisons are possible only if the qualitative criteria and technical premises for an assessment are known. Quality should be appraised against the purpose for which a textbook is written. Technical variables such as paper quality, number of pages, size, or type of binding should also be taken into consideration. In the African context some price/quality comparisons are of special interest: (a) between the products of local publishers (between competitors); (b) between the products of public and private companies; (c) between the products of domestic and international companies.

Profitability

Figure 7.9

Cost structure variations

Cost category

84

Average % of retail price

Variation in % of retail price

Discount to booksellers

23

5-30

Royalty

11

5-15

Production cost

32

15-60

Marketing cost

9

2-20

Distribution

9

8-30

Gross profit

34

15-70



Figures 7.8(a) and (b) describe the profitability of a single title, but the same principle can be applied to a group of books and to a whole publishing company. Profit indicates the ability of a company to generate income through sales compared with the expenditure needed to achieve those sales. The success of a publishing company can be further measured by comparing the company’s profit levels with those of other publishers, or by examining the fluctuations in market shares. The average gross profit of African publishers indicated through this study was 34 percent (12 publishers from 8 countries, variation from 15 to 70). The range is very wide, as are the ranges for the other cost factors, too (see Figure 7.9). Clearly publishers’ profit requirements are very different, and the question of a suitable profit level cannot be answered generally. The average percentages and sample calculations shown in this Chapter give only an overall picture of costing and pricing. The profit varies between titles, book series and companies as stated earlier. The cornerstone of good profitability is a sales structure where the majority of sales comprise steadily selling, profitable titles; generally, a publisher can hope to achieve such sales through reprints. As the primary costs (of development, illustration etc.) have been paid (hopefully) through sales of the first edition of a book, the reprints are more profitable for a publisher. A publisher who is able to predict steady sales of reprints is able to take the higher profit margin of reprints into account when first pricing the book (possibly even making a loss on the first year of sales and recouping the loss in following years). Thus the publisher is able to share the benefits of steady sales of reprints with customers through lower prices, especially in the face of hard competition.

In the African publishing industry, it is not always possible to take into account steady long-term sales because of the many uncertainties a publisher faces. For example, budgetary restrictions often mean that education ministries and schools are unable to buy books regularly, and so various print runs have to be priced separately and both the customer and the publisher lose the benefits of economies of scale. There are also uncertainties other than random sales to be taken into account in pricing (such as high interest and inflation rates, difficulties in collecting payments/risk of bad debts, or rapidly changing prices of raw materials). Unfortunately, the study yielded no information on how publishers handle these factors in their pricing calculations. What is clear is that these uncertainties often mean much higher costs than from those countries with wellestablished industry and stable conditions. The establishing and generating of local publishing industries in Africa thus means acceptance of higher real prices in order to create the preconditions for real competitiveness.

The following is based on general findings obtained in the study through interviews rather than derived from data collected through the questionnaires. The information from publishers is mostly in the form of very general statements, and does not give an opportunity for detailed assessment of publishers’ financial positions or the situations in various countries. Publishing is a business that requires a relatively long perspective for financial planning. In full-scale textbook publishing two to four years is the normal time needed for the preparation of new manuscripts, testing, production, marketing and distribution. Similarly, it takes several years for a publisher just starting out to develop and market a sufficient number of titles as a firm basis for continuous sales. Only a sufficient number of steadily selling textbooks guarantees a sustainable opportunity for a publishing company to generate funds for future investment.

1. Working capital

85

Textbook publishers primarily need working capital. They have to commit funds at an early stage of the publishing process, when the development of manuscripts begins. However, this is a relatively small amount compared with the later funding of paper purchases and payments of printers’ bills. Paper, the major and most expensive raw material for book production, must be bought in good time for


A publisher’s financial requirements

the coming season. The technical processing of new editions then takes several months depending on the number of titles and copies to be produced. The payment of raw materials and production bills for new books and reprints means that at least short-term loans are needed before a publisher can get cash through sales. One of the African publisher’s major risks is delayed payments as shown earlier in Chapter Six (see Figure 6.11); some clients are credited by publishers for several months; publishers can also accrue large amounts of bad debts.

2. Creditworthiness The amount of credit needed by a publisher depends on several factors, such as the existing financial position, level of self-sufficiency, timing of production and not least the time needed to realize cash income from sales. None of these factors is very favourable for African textbook publishers or for other entrepreneurs in the book trade, and so the need for credit is high. Furthermore, publishers often have enormous difficulties in meeting loan terms and arranging bank guarantees or loan collateral because of unpredictable sales resulting from irregular purchases by institutional customers. In addition, both profitability and levels of equity are low, and high inflation rates make financial planning difficult. Financing has thus been identified as one of the major constraints on textbook publishing and publishing in general. Unfortunately, publishers are not the most sought-after customers of banks or the money market. For the same reasons, publishers are not always qualified to participate in tendering of textbooks arranged by donors.

During a field interview, a West African book distributor wanted to participate in a World Bank Project for publishing textbooks; they explained what the requirements for their participation in that project would be and why they would never be able to participate. The following documentation and financial guarantees were required: – CFA 50,000 to purchase tender documents – Bank guarantee of 2.5 percent of the value of the tender – Income tax clearance certificate – Social security payment certificate – Staff housing tax clearance equal to 1.5 percent of each member of staff’s salary. 86


CASE STUDY: ENABLING FINANCE

On a tender with a value of CFA 200 million (about US$ 400,000) for four pupils’ books and four teachers’ books, the successful bidder would have had to provide a total of CFA 9.8 million (about US$ 20,000) in guarantees, or about 5 percent of the value of the contract. The bidder would also have to show a healthy financial situation for the company for some years back and assets worth at least four times the value of the contract sum. Government would advance the successful bidder 30 percent of the contract price, but that too would have to be guaranteed by a bank and the conditions of the bank would, of course, be difficult to meet. Further investigation and commentary showed that these documents and guarantees were a combination of the requirements of the government purchasing agency and the World Bank. The combined effect of the requirements was to effectively double the guarantees normally required by the World Bank. According to information from the World Bank, agreements were made at the APNET Seminar on Textbook Procurement (Nairobi, May 1995) to the effect that contracts would be kept small to keep guarantee amounts low. In addition, a bidder’s turnover requirements would be limited to the value of the contract in question. Clearly, these agreements have not been followed by all recipient governments.

3. Financing options

In addition, arrangements for revolving fund and loan guarantee schemes are available in some countries. External support is often related to many of these alternatives. Bank borrowing is usually the most natural way to arrange financing for a commercial company. As mentioned above, however, African publishers face many problems in trying to get bank loans. Very few publishers are able to meet the loan conditions because of: • size of publishing house (often too small) • unpredictable sales • lack of assets • high interest rates • lack of guarantees or collateral. 87


In theory, publishers have several options for financing their business: • bank borrowing • loan guarantees • increasing equity capital.

Government and donor interventions 1. Taxes and duties

88

Taxes and duties have a significant impact on publishing. Although most countries do not impose import duties on printed books they do impose duties on imported paper, which may be as high as 35 percent. Sales tax on locally produced paper is also of the same magnitude. Other taxes and duties (withholding tax, stamp duty, VAT, etc.) are applied differently in different countries but they all have the effect of raising book prices. Printers in Kenya pay VAT of


The same reasons can be listed for the poor likelihood of increasing equity capital. Funds can hardly be raised through selling shares to investors in a business which suffers from small size, uncertain sales and low equity capital. Such investors can easily find much more attractive objects for their money. The lack of guarantees is one of the major problems of small publishers (and most African publishers are small). Small publishers do not usually have assets which could be used as security for loans. A special loan guarantee scheme to help private Kenyan publishers with their bank guarantee problems was established in 1989, with the Dag Hammarskjöld Foundation (DHF) as guarantor and a commercial bank as lender. The scheme helps publishers to manage their working capital requirements. Otherwise, a publisher takes a normal business risk and pays interest on the loan at the bank rate. The experiences of this loan guarantee scheme to date are partly contradictory. There have been positive impacts in the form of increased publishing activities. On the other hand, three of nine beneficiaries have failed to meet their loan repayments. Obviously, more experience is needed to convince other countries to apply the system. In theory at least, other potential guarantors, apart from foundations, could be governments and donors. Donors, however, are often so involved in the direct financing of various projects that they may not be willing to increase their contribution to uncertain financial transactions. Governments, for their part, are weighed down by so many financial difficulties that they are reluctant to favour one of the small industrial sectors with special arrangements. The guarantee problem is not the only one publishers face in trying to qualify for a loan. Even if the guarantee is in order a publisher may have problems servicing the loan. Therefore, there is a big demand for soft loans with low interest rates. So far, there is no information on concrete plans for such loans.

18 percent on paper which of course is passed on to the publishers who in turn pass it on to the final consumers. Paper and other materials used by education ministries in printing their own books are usually exempted from taxes and duties of all kinds, which gives them an unfair advantage over private publishers who must pay the full range of taxes; it also distorts the price/quality comparison.

89

There is an important debate as to whether subsidies are good and necessary and, if the answer is in the affirmative, at what point they should be applied. Various experiences show that subsidies, when applied at any point during the production cycle, distort the costing and pricing of books, giving the false impression that books are cheaper than they actually are. This is significant for the whole issue of cost sharing, particularly when the subsidies cannot be guaranteed for ever. Publishers who receive subsidies to produce first editions, and who must, on reprinting, double the price because no subsidies are given for reprints, know how difficult it is to sell the reprint and know the anger that people show at the sudden increase in price. This is the same argument private publishers rightly use against the claims made by curriculum development institutions that their books are cheaper. The fact is that many costs incurred by these institutions which should be incorporated in the final accounts are not included because they are taken from recurrent government expenditures (such as salaries for staff and teachers assigned to textbook writing). These expenses would have to be fully included in the private publisher’s costs and reflected in the book price. Sida, which has for a long time subsidized publishing in Tanzania, Zambia and Mozambique by supplying paper and other printing materials, has come to the same conclusion regarding subsidies, and is now convinced that the full costs of publishing should be reflected in the prices of books and that whatever assistance is given should be to help purchase books at their real value. This is also one way for Sida to relinquish the heavy administrative costs and supervision of materials that it used to supply, and leave all the publishing and printing activities to the publisher or printer. Other donors are also thinking in terms of similar strategies. Although countries are generally tending to move away from supply-side subsidies for textbook provision, it may be useful to summarize some of the issues related to the application of subsidies. • Subsidization of writers tends to mean that books are written with little or no thought for the final costs of the book or with regard to scheduling.


2. Subsidies

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Experience has generally shown that supply-side subsidies can be effective in solving short-term problems if applied carefully to specific situations, but that the distortions thus created are usually detrimental in the long term.


• Subsidization of monopoly publishers tends to mean that real costs of textbooks are unknown and, again, that little thought is given to price or quality. • Subsidization of individual publishers in a commercial environment creates distortion of the market, discourages new publishers and affects competitiveness. • Subsidization of specific titles is quite common, especially if a title is expected to be commercially unfeasible (for example, in special subjects with few students). In the case of state publishing, parastatals have usually been required to publish such titles as part of their general functions, regardless of cost. In a competitive climate, such requirements would be detrimental to the publisher, and so the publishing of commercially non-viable materials should be supported by guaranteed purchases or by a subsidy paid per copy sold. • Subsidization specifically to encourage the development of new titles is a relatively new phenomenon, in which development subsidies are paid to several publishers (selected on the basis of plans and synopses) for a particular title or series. Although relatively expensive, this results in quite rapid development of several parallel titles from which educators can make their choices. On the one hand, it has the advantage of avoiding a monopoly situation and providing up-front financing of development costs, but, on the other hand, it does not address the African publishers’ more serious problems of financing production and marketing. • Production subsidies have been very common in the form of materials or direct payment of printing costs. The main disadvantage of such subsidies is that they tend to move the responsibility for costing decisions and scheduling away from the publishers and into the hands of bureaucrats, thus distorting the publishing process. • Subsidization of marketing does not appear to have been applied in Africa, although often education ministries have purchased books in bulk (from public or private domestic or international suppliers) and handled distribution through local government channels (Tanzania and Botswana) or similar public authorities (Uganda and Zambia). Again, this creates distortions and disincentives, as there are too few reasons to develop sales networks or services, especially for non-domestic publishers.

Demand-side subsidies are by far the most effective means of assisting in the provision of textbooks. Such subsidization becomes more effective the further down the education ladder one reaches. In other words, direct subsidies to parents/pupils or schools help to keep local cost contributions to books low and to create market opportunities for publishers without creating market distortions. Even in situations where payments from the parent or school level are not feasible, demand-side subsidization works as long as the point of selection is at the school level as that becomes the main point of contact for the publisher and bookseller. The disadvantage of this form of subsidy is that, again, it does not address the problems of publishers’ credit financing in the short term.

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There should not, in principle be any restrictions on publishers who want to be involved in textbook publishing. The only qualification should be that, when their books are published, they should be in line with existing curricula, and not in conflict with the basic educational philosophy of the country. It is sometimes even further suggested that if a publisher is foolish enough to publish a book that has no relevance to the curriculum and will not therefore be approved, the publisher should be left to suffer the inevitable losses. By the same token, if a school or council should opt to purchase a badly written or printed book then they should be allowed to use it. The assumption is that common sense would not let them select poor books. The objective of this liberal view is that as many books as possible should be available on the market to allow for the widest choices possible. Existing restrictions in transitional phase countries such as Tanzania are still centred on manuscript development, where, until contrary evidence is available in practice, the curriculum development institutions still cling to textbook writing and education ministries have not given the green light to publishers to enter the textbook market through developing their own manuscripts. As long as publishers are not allowed or even encouraged to develop their own manuscripts the situation will not change. In any case, such policy changes cannot be meaningful before the more basic one – liberalization of book purchasing and devolution of responsibility and funds to districts or schools – is made. A multi-textbook system can only be completely successful if book purchasing is done at the lowest level, and if all the books that are approved have an equal opportunity to be purchased. The final arbiter should be the market-based assessment of the quality, the efforts of the publishers in marketing and finally the price of the books.


3. Restrictions

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African publishing has not been a growth industry and that may be one reason for its failure to attract the interest of African governments as well as the support of donors. But perhaps the real reason for this neglect is that even in developed countries, publishing is not that well understood. While the roles of writers and printers are known and appreciated, the publisher is seen more as the writer’s exploiter than as the facilitator who invests money and takes all risks in the work of the author, never quite certain that the money invested will return. In many countries in Africa, there were no publishing industries prior to independence. In the anglophone countries where there were no branches of multinational publishing houses, governments stepped in and set up state publishing houses, often in partnership with one multinational. Even where foreign publishing houses thrived, governments still set up state publishing houses, while allowing private ones to continue operating. Over recent years, the trend has been to phase out state publishing houses, and, in some countries, for multinationals to be bought by local entrepreneurs and attempts made to build strong indigenous publishing houses. In the francophone countries, where domination of publishing remains in the hands of French publishers, there has been much slower development of indigenous publishing. With the exceptions of Senegal, Ivory Coast and Togo where the Nouvelles Editions Africaines are active, there is no private publishing to speak of in francophone Africa. The three NEA companies are, themselves, owned jointly by the three states with a substantial shareholding belonging to French companies. There are other small publishing enterprises, some of them, like Éditions Clé in Cameroon, which belong to religious missions, and others, like Éditions Jamana in Mali, which are struggling against enormous odds to survive. In the last few years interest in African publishing has grown considerably. Following benchmark seminars on publishing in Africa (the Dag Hammerskjöld Foundation Seminar on Developing Autonomous Capacities in Africa – Arusha, Tanzania, 1984; Bellagio Conference on Publishing and Development in the Third World – Bellagio, Italy, 1991; and recently another DHF Seminar on the Future of Indigenous Publishing in Africa – Arusha, 1996), many initiatives have been taken in support of African publishing. The establishment of the African Publishers’ Network (APNET) and the support it has enjoyed from the Bellagio Group (an informal association of donors who support African publishing) has made it possible for African publishers to be heard as well as to organize themselves to help their members professionally. Top


4. External support

among the activities of APNET is the training of African book professionals: editors, book designers and illustrators, managers, booksellers and others. Other support has been aimed at assisting African publishers to have access to financial resources through programmes such as the DHF Loan Guarantee scheme in Kenya, the Children’s Book Project in Tanzania (started with the support of the Canadian Organization for Development through Education (CODE) and cofinanced by DANIDA, Sida, the Netherlands government and two NGOs), and financial support to self-help projects and associations of African publishers such as the African Books Collective which markets and distributes books from African publishers to Europe and North America and other countries in the North. The International Publishing Partnership (based in Ottawa, Canada) enables Canadian publishers to embark on joint ventures with publishers in developing countries on mutually beneficial terms in relation to the sharing of expertise, credit and markets. These efforts, while commendable, are still far from meeting the needs of African publishers in an extensive and permanent way. Professional organizations within Africa, as the following overview of institutional interest groups indicates, are also still relatively weak, though it is to be hoped they will continue to develop as channels of professional support to the industry.

Publishers’ associations Publishers’ associations, are a new development in African publishing, arising as they have in the wake of indigenous publishing. Not surprisingly, publishers’ associations are mostly to be found in anglophone African countries, where greater numbers of publishers are to be found. There are publishers’ associations in the following countries: Ethiopia, Ghana, Kenya, Lesotho, Mali, Namibia, Nigeria, South Africa, Tanzania, Uganda, Zambia and Zimbabwe. These associations have been responsible for organizing training courses for professionals from their member organizations as well as for organizing book fairs and generally making book issues known to government and society in general. Publishers’ associations have campaigned against piracy and for respect of copyright law and regulations, and more recently they have been active in seeking for their members favoured treatment in book projects that are sponsored nationally or internationally. 93


OVERVIEW: INSTITUTIONAL INTEREST GROUPS

Book development councils Book development councils (BDCs) an idea which originated from UNESCO, have not been particularly successful in Africa despite their clearly developmental potential in the publishing industry. The idea of an umbrella organization bringing together all participants in the book business in order to solve the industry’s problems is a constructive move in countries seeking to develop a coordinated approach to book provision. The problem has been how to operationalize this. Book professionals have not given their support to developing BDCs because they have seen the tendency for governments through their education ministries to want to use them as further instruments of control of the industry and even censorship. Coupled with the fact that BDCs should ideally represent professional associations of the book trade, and since such associations were either nonexistent or weak, the BDCs lacked their basic building blocks. Interviews with book professionals have showed that there seems to be a new interest in establishing a BDC in Kenya (Nyariki and Makotsi, 1995) as well as reviving the Zimbabwean one. The Ghana BDC is perhaps the only one that has worked for many years and its lessons will be important as new countries attempt to set them up. The chances for a BDC may be better today than in the past since professional associations now exist in many countries, and the need for a larger lobby across the industry can be seen to be more effective than the voices of individual professional organizations.

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APNET has been very supportive of publishers’ associations, indeed going out actively to assist in establishing them where there were none. Through APNET and national publishers’ associations it has been possible to develop contacts between francophone and anglophone countries; promotion of the Zimbabwe International Book Fair as well as the Pan African Children’s Book Fair has also brought closer links between African publishers from east and west. These publishers’ associations are still in the formative stage, weak and financially vulnerable. This reflects the general weakness of the member publishers. However, in view of what they have already been able to accomplish, these associations need the support of all those who have African publishing interests at heart. Strong associations would be most useful as partners with donors in smoothing out problems of the publishing industry, particularly in the transition period from centralized to market systems.

Writers’ associations Last but not the least among the professional organizations of the book trade is that of the writers. Because there are few successful publishers who are truly professional in their work, and because by the same token there are few professional writers, the ground on which both stand is often shaky and uncertain. The publisher is in an advantageous position because there are not that many from which authors can choose. Authors are intimidated because they have little experience and are so anxious to be published that they often do not make the appropriate demands to the publisher. Above all, the issue of what is an acceptable royalty is clouded by myths about publishers exploiting writers – even when the publishers themselves can hardly break even. Writers also need to set up strong organizations that can represent their interests at the same time as creating opportunities to train writers for their own interests and the interests of the book industry. Writers’ associations exist in many countries where indigenous publishers are active but they are weak and for the most part have had little impact. In Zimbabwe, Nigeria and Ghana they are more active than in other countries. The PanAfrican Writers Association (PAWA), has its headquarters in Ghana, but it has not yet established a sufficient presence in other countries to have a truly continental character.

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Booksellers’ associations In many ways booksellers in Africa face the same problems as their publishing colleagues. The profession is relatively new, it demands substantial up-front investment, it requires training and professional know-how and depends on the same society; one that does not have purchasing power or a habit of book buying. The two professions of book publishing and bookselling do not always see eye to eye, and struggles over discounts and terms of payment, or disagreements over whether publishers should or should not be allowed to sell books directly to consumers, are regular features of the relationship between publisher and bookseller. For this reason alone, the advantages of having strong professional organizations and knowledgeable individuals in them cannot be overemphasized for the good of the book industry. On the whole booksellers’ associations are still weak in all African countries. They are relatively strong in Nigeria, Zimbabwe and Kenya. In Tanzania, it is the publishers’ association that is assisting booksellers to organize themselves and the profession, because the publishers realize that they stand to gain by having a strong and well-organized system of bookselling.

Conclusion

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The basic problem of publishing in Africa is financial: lack of assets, low level of equity capital, lack of working capital and difficulties in meeting loan conditions. Lending institutions in Africa do not consider publishing bankable. And even if they did, present interest rates, which are as high as 44 percent in some countries, would prohibit any publisher from making use of the facility. The only effective way to support African publishing, taking note of the strategic nature of this industry, would be for African countries together with the international funding institutions and development cooperation agencies to put together a substantial special fund from which publishers could borrow at reasonable interest rates. Such an initiative should go hand in hand with training in financial management for publishers. Within a five to ten year period African publishing would then take off into self-sustainable development.

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Chapter Eight

LOOKING AHEAD: ISSUES AND PRIORITIES

This Chapter gives an overall picture of the major issues regarding textbook publishing, according to the information gathered in the course of the study. The subsequent recommendations should be read as priority targets for textbook provision; however, since even general problems vary between different countries, the aim is not to try to reach any country-specific conclusions, but instead to suggest an outline for implementation strategies according to the division of responsibilities between government/Ministry of Education and publishers.

The major constraints

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It is clear from both the information gathered and the paucity of information in this study that the major obstacle to sustainable textbook publishing in sub-Saharan Africa is the absence of clear policies, strategies and master plans. It is not possible to make systematic efforts towards achieving desired results if there are no logical programmes created by local participants and to which they themselves are committed. At present, where plans do exist, the strategies are designed and the plans often written by outsiders, usually by or on behalf of donors. Plans are often accepted by governments as conditions for financial assistance. At its worst, this state of affairs has caused a variety of competing projects, all concentrating on publishing, but from various angles and according to targets dictated by donors. A lack of medium- and long-term planning prevents actors from seeing or taking opportunities and possibilities. This is reflected as a poor understanding of the role of publishing in national development. Ignorance feeds prejudices against local publishers and sometimes even causes the ridiculing of domestic resources. The lack of plans prevents actors from seeing their opportunities and

Chapter Eight LOOKING AHEAD: ISSUES AND PRIORITIES

1. Lack of book policy, plans and strategies

possibilities in a time perspective: what could we achieve tomorrow if we start systematic efforts today? Instead, policies, if policies do exist, remain as useless political documents without concrete support for implementation. Government/Ministry of Education plays the key role in textbook publishing through its determination of needs and most often as financier and/or buyer. It should therefore accept the biggest responsibility for taking initiatives in the most important issues concerning textbook publishing. This can be done in the following ways: • make public the policies of textbook provision. Establishment of national book policies (NBPs) in many African countries has not materialized in spite of often expressed desires for them. Instead of waiting for the results of what will clearly be a long process before comprehensive NBPs are evolved, education sectors should move quickly to develop at least their own textbook policies. This task belongs to education ministries as they are in charge of education development in general. • concretize the policy issues in collaboration with publishers and their organizations and with other interest groups within the book trade. Utilization of all possible know-how and transparency of the planning process should be the foundation stone of the process. • together with others involved in textbook provision, collect data and statistics as a solid basis for planning. Good planning can only be based on relevant information regarding the market situation, availability of textbooks, finance and so on.

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Governments are major buyers and financiers of textbooks. Most governments are highly dependent on external support with little or no significant contribution of their own to the financing of textbooks. Thus, the major consequence of a lack of longer-term plans is lack of predictability for textbook publishing. What governments finance or buy in one particular year may not be purchased again for several years. Regularity in government purchases is unknown in most countries. This translates into uncertainties in issues of fundamental importance to publishers. It makes books more expensive and it does not give any security for investments. It is thus not surprising that investors avoid the publishing business in Africa. Government’s long-term responsibility for education and participation in financing is crucial for textbook publishing. There is very little that publishers can do if there is a poor financial basis and a lack of government funds.


2. Unpredictability of textbook provision

Lack of money is naturally the main reason for the poor state of educational materials in many countries. On the other hand, this situation can also be seen as a political inability to look for alternative solutions such as cost-sharing. Where tough promises have been made on free education, politicians and authorities feel that they cannot raise the question of alternative funding methods and transfer the responsibility to communities and parents. Paradoxically, the transfer happens often by necessity, anyway. It then leads to the situation where a government asks for more assistance from donors, but does not actively look for sustainable solutions with communities and parents. It follows therefore that: • textbook purchases must be programmed as part of short-, medium- and long-term investments in the quality of education as well as in the quantity and quality of educational materials. The ultimate prerequisite is that central and local education authorities consider all possible alternatives for funding and adjust quantities and quality according to the funds available. Only a long-term funding programme for education can give security for publishers’ investments.

Publishers have to make relatively heavy investments in working capital. As the time needed for publishing a new title varies from several months to three or four years, a substantial amount of money is tied up in pre-press expenses, printing and marketing before a publisher can expect any revenue through sales. Publishers rarely have enough cash to fund production of several titles at the same time and therefore they need short-term credit. Banks are the most usual source of financing assistance for entrepreneurs, but very few publishers can meet loan conditions and some publishers are not even able to service their loans at normal bank rates. The publishing industry certainly needs financial support for facilitating loan arrangements, but it does not need direct subsidies. It is very difficult to make sensible use of direct subsidies to an industrial branch because these require outsiders to take part in business risks which belong to an individual company. The publishing industry alone is a very small part of industry. It employs only a handful of people and its turnover is also relatively small. Its entire importance lies in its crucial social influence. Therefore, this ‘social business’ needs society’s support. This can best be done by: • provision of credit facilities for publishers. Government should facilitate publishers’ access to bank guarantees and soft loans, but avoid direct subsidies. 99


3. Financial constraints

Most of the internal problems of companies everywhere derive from the poor state of management. The data collected in this study does not offer a thorough picture of the state of the staff and management skills within publishing, but it does give a basis for some general conclusions. Most of the sub-Saharan countries are moving towards commercial publishing in one form or another. However, the industrial environment in many countries is still less commercially developed, or at least very young, which also usually means that the general management experience is poor. The publishing business is no exception. Local opportunities for getting a comprehensive and well-structured education in the field of publishing are either extremely limited or non-existent. Training abroad is available, but possible for only a few. When possible most companies tend to send their people to local courses, often sponsored by donors. One of the weaknesses of such courses is that they are designed to cover a particular set of individual skills and thus rarely offer any long-term development. People can possess attractive certificates from many courses, but not have knowledge of the real basics of their jobs. Training programmes for development of a whole publishing organization according to defined targets are non-existent. The priorities in this area are therefore: • Publishers’ associations, financially backed by governments, should create opportunities for training staff in all aspects of book publishing. Early and special emphasis should be placed on management training which is the most fundamental requirement for running publishing houses successfully. Training could be integrated with university courses in media development, or in polytechnics, and should build on actual work experience. • The publishing and associated industries must spearhead all training initiatives, and they can do so successfully only through strong professional associations. Regional training centres may be most cost-effective but training cannot wait for their establishment if they are not there already. In this respect national publishers’ associations and the African Publishers’ Network should be given all necessary support.

5. Role of external support

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The planning of textbook provision should be driven by national needs and interests. Donors should act as intermediaries, not ‘leading agencies’. The leading position of donors has often resulted


4. Management and staff skills

from inadequacy of government resources or poor management of projects by recipient country. However, this should not be an excuse to use predominantly external planners of projects. The major responsibility lies in the hands of a recipient country and that responsibility is not transferable. If the Ministry of Education receives external support for textbook publishing it should know how the funds and/or technical assistance support the development of education. External support can only be meaningful if it is rooted in concrete master plans, not on general policy statements. Therefore: • external support should be coordinated through a master plan that relates to government book policy. The first step should be definition of government policy on educational materials provision, followed by strategic planning to provide an overall framework on how to achieve government targets, for example, in the form of a master plan for a fixed time frame. Only on the basis of the master plan should funding agencies be invited to design textbook provision projects to achieve the objectives of the plan. Otherwise, there is the danger that projects start to steer development of textbooks on their own.

Implementation strategies

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Figure 8.1 overleaf describes the role of government and publishers in textbook provision. The division of responsibilities is based on the view that the government (through the Ministry of Education) should concentrate on development of education by formulating policies, taking care of finance of purchases, or possible procurement arrangements, but not be involved in publishing itself. Publishing should be left to professional publishing organizations which can best take care of the industrial and business process. This principle should be equally applied to any type of market situation even if publishing is a monopoly business of government. Even then the publisher should be a separate organization, set apart from the bureaucracy of the government offices. This division of responsibilities gives a government an opportunity to play an active role in building up an enabling environment for the publishing industry. Politicians and authorities can hardly dedicate themselves to this task if they are somehow tied to the publishing business and benefit from it. Objectivity and transparency of an approval system also requires a clear distinction between the administrative role of authorities and the business role of publishers.


1. Responsibilities between government and publishers

The publisher’s challenge in textbook provision is to meet requirements of education. The results of the publishing business in respect of quality, quantities and prices should be comparable with international standards, at least in the long term. Above all, the ability to handle capacity competition demands qualified human resources, and the establishment and development of those resources is the price any society must pay if it wishes to support a national textbook industry.

Figure 8.1

Responsibilities of government and publishers in textbook provision

Phase

Government / MoE

Publishers

1 Assessment of the present situation

Analysis, conclusions (e.g. SWOT-analysis)

Analysis, conclusions (e.g. SWOT-analysis)

2 Policy formulation

Curriculum policy

Publishing policy – Priorities – Specialization

Principles of textbook procurement (Range of textbooks, book/student ratio, lifespan of books, reuse of books) Principles of improvement of quality and approval system Financial sustainability Teacher orientation policy 3 Setting objectives

Development objectives and scope of textbook provision

Quantities Quality Prices Profitability

General strategy for textbook provision

Market segmentation

Funding strategy

Allocation of human, financial and physical resources

Strategy for teacher orientation Strategy for evaluation and approval

Competitive edge

Development inputs Management arrangements Functional strategies

5 Master plan Action plans

Master plan on provision of textbooks

See Figure 2.2 (page 9)

6 Publishing process 7 Feedback

102

Detailed action plans

Research, evaluation

Market research, evaluation


4 Choice of strategy

2. Assessment of textbook provision All those involved in textbook provision should have a similar view of the state of publishing for fruitful discussions. Regular assessment of textbook provision would help a lot. One common method for this is the SWOT analysis. The acronym comes from the words Strengths, Weaknesses, Opportunities and Threats. One aspect of this analysis is meant to give a perspective for assessing external factors (opportunities and threats) and thus the environment of textbook publishing. It is extremely useful if the various participants in textbook provision (authorities, publishers, printers, booksellers, distributors etc.) can give their opinions and are able to discuss them together. An institution such as a book development council could play a significant role by bringing all these participants together and providing a common perspective for handling various policy issues under the same umbrella. Review of opportunities and threats should include • Market situation (trends, growth) • Buyers (purchasing power: MoE, schools, parents) • Publishers (capacity: development, marketing, distribution, production; capabilities) • General economic environment.

3. Policy formulation

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Policies are general statements of ideals and sometimes merely of wishes, but to be effective they must be interpreted in practical terms for setting objectives and selecting strategies. A selected strategy should then lead to a master plan and further to action plans. It must be primarily in the interest of a government/Ministry of Education that schools should be provided with suitable teaching and learning tools, and the principles guiding textbook publishers must be therefore be clear.


The second aspect of the SWOT analysis is assessment of internal factors (strengths and weaknesses). It is a confidential action within companies and meant to help them to choose the best possible strategies for fulfilling their business targets: • Staff (knowledge, skills, attitudes) • Organization (structure, coordination, communication) • Business volume and value (range of titles, specialization, turnover, market position) • Products/services (quality, cost) • Finance (cash flow, profitability, financial position) • Leadership (management systems, leadership climate)

Figure 8.2

Policy checklist

Policy issue

Content

Notes

A Curriculum policy

Subject priorities

Definition of core subjects and topics and position of various subjects.

Instructional time

Hours defined according to subjects and/or topics.

Position of local languages

Principles for publishing textbooks in local languages.

Timing of reforms and revisions

Schedule for launching revisions or reforms of curriculum and/or syllabi.

Range of textbooks

Defining titles needed in various subjects.

Book/pupil ratio

Defining sharing/ ownership of books if the books are not provided to all pupils, guidelines to be based on calculations and alternative considerations.

Lifespan of textbooks

Definition of how long books should be used in the schools; to be considered together with reuse of textbooks.

Reuse

Determining reuse and replacement arrangements if books are recycled.

C Quality

Technical determinants

Considerations from financing point of view on paper quality, number of pages, formats, use of colours, type of binding etc. Detailed definitions to be left to publishers.

D Evaluation and approval

Testing and evaluation

Determining how evaluation and possible approval of textbooks will be arranged: What are responsibilities of MoE and publishers?

B Policies affecting quantities

Approval

E Finance

Cost sharing

Considerations on financing alternatives of purchases: role of government, communities, parents.

Government contribution

Possible government contribution in a form of bank guarantees, soft loans, support to development of manuscripts, staff training, organizing book fairs etc.

External support

Defining principles of how external financial support and/or technical assistance can be linked up with the framework of textbook provision. (See also page 100 Role of external support and page 107 Planning)

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(See Chapter Six, pages 57–59)

Policy issue

Content

Notes

F Teacher training

Orientation programmes

Defining how teachers will be informed about new textbooks and trained to use them.

G Literacy and reading campaigns

Book promotion

Defining how literacy will be enhanced through publishing of general reading materials, how people should be encouraged to read.

H Library programmes

Defining target population per library

Defining how availability of reading materials should be enhanced through school libraries and public libraries.

Training for librarians

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I Information systems

Statistics

Determining priorities and methods for collection of data on books and publishing.

J Research

Applied research on textbooksí influence on quality of education

Data collection: book availability, book use/ classroom practice etc. Analysis of examination results in relation to textbooks used.

K Legal issues

Copyright

Considerations of copyright protection according to national law and international copyright conventions.

L Industrial policies

Status of textbook publishing

Determining status of publishing as an industrial process and influential factor in development of society.

Development of local publishing

Determining role of local publishing industry and its position in international competition.

Promotion for competition

Determining role of competition in publishing in general and in provision of textbooks in particular.

Taxation

Defining role of taxation in sales of books, raw materials, imported books etc.

Financial support, bank guarantees, subsidies

See page 99 Financial constraints

The checklist in Figure 8.2 consists of the major issues on which the participants in textbook provision should take a stand. The policies can be formulated and converted to targets and strategies in a variety of ways, depending on market situation and mode of publishing. Only some examples can be given here. In a monopoly situation the Ministry of Education is the only participant to make decisions on all the aspects of textbook


Policy checklist (continued)

provision, from curriculum development to distribution of textbooks. The free market structure gives an opportunity for using various provision mechanisms. Even then, however, certain issues belong to government and the Ministry of Education, for example: curriculum policy, evaluation and approval, financing of purchases, library policies, or industrial polices. Much depends on the degree of liberty of the textbook market. If schools and users are buyers of textbooks they can strongly influence the quality of books and quantities to be purchased. Selection and ‘approval’ can take place on a local level as is the case in secondary education in several countries. When there are several interest groups in a free market situation and all demanding their say, various opinions should be coordinated. One way, as mentioned earlier, is to handle policy issues under the umbrella of a book development council (BDC). However, only through strict impartiality can the activities of a BDC receive the support of every group. Policy formulation should not be a separate expression of ideas without careful consideration of the consequences. For example, establishment of a simple book/pupil ratio is not enough from the buyers’ point of view without assessment of financial possibilities and consideration of the effect of the ratio on the quality of education. All the definitions on quantities (See point B in Figure 8.2) and technical determinants (point C) should be concretized through calculations (See Figure 4.3 on page 45). Otherwise, it is not possible to understand financial premises while considering alternative solutions.

Objectives can be divided roughly into two categories: general development objectives defined by a government and programme objectives of publishers. The roles of government and publishers in textbook provision determine how detailed are the objectives to be set. If textbook publishing is strictly controlled by government the detailed definitions for textbook publishing are given by government. In a market economy, a government sticks to general guidelines only. In any case the Ministry of Education is responsible for determining the development objectives and the scope of textbook provision – how textbooks should contribute to improvements in the quality of education and rough estimates of books required. This information is needed for further determining of objectives for institutional development, support for strengthening of publishing capacity, research and evaluation and approval of textbooks. All these considerations should be reflected in the setting of financial 106 plans.


4. Setting objectives

Publishers will set their objectives according to publishing programmes, their components and definition of outputs. It is an internal process that is tied to the business targets of individual publishers.

5. Choice of strategy As in the setting of objectives, both governments and publishers need their own strategies for achieving the set objectives. A ministry’s strategic considerations are related to general options in textbook provision. For example, if the objective is to give an opportunity for alternative textbook titles (quality, prices) for users then government should support competition, local selection and purchases of textbooks, and strengthening of the human resources capacity of publishers (for example, through support in training). If major education reform necessitates large quantities of textbooks in a short time then it is best to give space for temporary projects and utilize all possible resources available. Textbook provision strategies in many African countries are related to increased freedom in publishing. Such a change happens gradually, and strategies must be flexible enough to respond to changing circumstances. The short-, medium- and long-term perspectives each need their own strategy. Special emphasis must be put on funding strategies: how sustainability can be achieved, how quantitative and qualitative requirements can be balanced against funds available in a time perspective. Publishers’ strategies are based on their business objectives. They make choices of their programmes according to targets of volume, value and profitability. Functional strategies of publishers can vary a lot in development, production, marketing and distribution of textbooks.

A master plan should be a necessary tool of planning of any education ministry in developing economies, whatever the system of publishing. It is needed in monopoly publishing, but it is equally important in any transitional and free market situation too. The overall purpose of a master plan is to build a framework for textbook policies, strategies, funding methods and programmes for a certain period of time. The master plan should also rationalize coordination of textbook provision and external support.

107


6. Planning

7. Publishing and feedback

108


The publishing process and its various functions has been described in detail in Chapter Two in order to provide background information on the arrangements and coordination of textbook publishing. Feedback from users of textbooks is the only way towards continuous improvement of the quality of textbook publishing and therefore quality of education. Feedback not only influences quality, but also prices and marketing methods. Therefore, collection of feedback and evaluation is a necessity for publishers. Information gathered by publishers, however, is not usually made public. This is why a Ministry of Education needs its own monitoring methods, too. Furthermore, questions to be handled by a ministry go beyond the quality of single titles to the quality of education as a whole.

p

Appendix One

TERMS OF REFERENCE STUDY ON ECONOMICS OF TEXTBOOK PUBLISHING IN AFRICA

1. BACKGROUND TO THE STUDY

At the meeting of the ADEA Working Group on Books and Libraries, London, 18th January 1994 it was formally proposed and agreed that the ‘Economics of Textbook Publishing in Africa’ was a priority topic for research. A background paper was tabled at the meeting. This was discussed again in greater depth at a meeting of the ADEA Working Group held in Washington in June 1994, and subsequently some ADEA members have submitted suggestions. It has been noted that the proposed research would substantially assist donors, African governments and African publishers in developing an appropriate strategy for the susstainable provision of textbooks. There is no comprehensive and up-to-date study of the economic factors governing the emergence and expansion of domestic book publishing industries in Africa. Consequently, there is a vacuum of analysis in this aspect of textbook development. Most book sector studies for Africa undertaken in the past five to ten years have focused on the management of book provision to schools (as part of aid programmes) and not on the stimulation of industrial and commercial activity in the book sector under African socioeconomic conditions. Recognition is growing that textbook provision cannot ultimately be sustained or assured under conditions of over-dependency on imported books and without the linkages of a functioning local book industry. Educationalists are concerned about the negative effect on educational performance caused by the lack of an effective and continuous interface between pedagogical needs and textbook publishing. This can only he avoided when a local book industry supports local authorship in close contact with curriculum planners and teachers. Inefficient state monopoly approaches to book provision are collapsing in many African countries and private sector publishing is expected to replace this. Yet, there is no Africa-centred analysis to determine the optimum conditions under which private sector publishing can emerge and achieve viability.

109

The relationship between adequate, sustained provision of textbooks and learning materials to classrooms and children’s educational performance is well established. Consequently, the failure to deliver sufficient and appro-

Appendix One

2. INTRODUCTION TO THE STUDY

priate textbooks seriously reduces the value of other educational investment. Sustainable textbook provision is linked to the capacity of national book industries. The business of publishing requires clear linkages within a definable ‘book chain’. In Africa the progress of developing book industries is uneven both within and between countries and regions. Some countries have viable textbook manufacturing industries providing self-sufficiency at the primary and junior/middle secondary levels. Others are dependent on imported books and expertise, even for basic texts. Book sector studies have provided data on book provision but contain insufficient analysis on building national industrial capacity in textbooks. Textbook provision decisions, which concern a textbook manufacturing and distribution industry, have been simplistically regarded as part of pedagogical planning. As a result there is little appreciation of the rationale and methods of the industrial policy-making required to develop textbook provision systems. The special nature of publishing is that it crosses economic, educational and cultural boundaries. 3. THE OBJECTIVES

The study has several objectives. The text under each objective refers to a typology of countries as explained in section 4, Methodology, of this terms of reference.

The objective is to develop a typological framework of textbook provision in Africa and to establish the common factors within each ‘type’ determining book industry activity, viability, output and consumption. The study shall: • examine the conditions determining the output, consumption and viability in textbook; publishing and distribution in four broad typologies (see section 4); • define, for each, the textbook producers, consumers and purchasers The system of distribution, financing, including any subsidies, open or hidden, and payment must be identified; • identify the criteria used to establish print runs (or textbook imports) and prices. How are these decisions taken and where? What average proportion of a print run (or textbook import) reaches the classroom and why; • describe the role and decision-making authority of government, private and development sectors and examine the interaction between these; • identify the availability and level of skills (i.e. for textbook publishing and distribution) within each sector. To what extent are the skills available in-country for a publishing industry to expand its capacity? • determine the approximate number of people employed directly and indirectly in the book industry, an approximate ratio of publishing volume to employment, the factors increasing or decreasing employment in the book industry and the basic level of skills found.

110

Appendix One

3.1 Establishing a typology for African book industries

3.2 Establishing a model of the book chain under African conditions

The objective is to determine and illustrate the way in which the ‘book chain’ system of linkages should develop under present African conditions, and its deficiencies in respect of the efficient use of available resources. The study shall: • develop a ‘model’ sectoral framework for the textbook industry in Africa. The model will demonstrate the required system of linked components in production and consumption and the related support linkages in government, institutional and development sectors. It must illustrate the key components and how they may link together to maximize efficient utilization of resources. The model will show where and how these are commonly deficient, and must examine the weakest linkages and priority areas for development, • provide policy formulation in each of the four typologies and overall industrial development options for each. 3.3 Determining the need for subsidies and their effect

The objective is to examine the role of subsidies in policy options for the textbook manufacturing industry. The study shall: • identify the major methods of subsidy currently used in African textbook provision including open and hidden, producer or consumer subsidies; • examine, for each, based on case studies, its cost relative to the education budget and calculate its effect on textbook production, distribution, consumption and affordability and on the book chain as a whole; • briefly examine the subsidies measured against consumer purchasing power, through household living standard measurement surveys where available, or any other relevant data. 3.4 Determining procurement policy options

The objective is to outline the procurement options open to policy makers and the effect of these on local productive capacity. The study shall: • establish criteria that are needed to decide on a procurement system, • examine major procurement method, such as book rental schemes, central purchase by Ministry of Education, per capita grant to school (or educational authority), school levy on parent, or by parent directly; • examine, for each of the above, its effect on textbook financing, production, consumption and the functioning of the book chain; • consider other factors which influence procurement such as durability (and replacement costs), inflation and pricing.

111

The objective is to develop a model strategy based on practical experience of leading textbook industries, and to determine the optimum conditions within existing economic restraints under which African textbook manufacturing can sustain growth. The study shall:

Appendix One

3.5 Developing an intervention strategy based on successful models

• establish the critical factors determining viability, sustainability, diversity and growth in domestic output and consumption, using countries which present the most viable and sustainable textbook industries in sub-Saharan Africa, except South Africa; • examine the factors which restrict greater viability and growth; • identify priority areas for future development and industrial policy formulation, • determine the implications for employment in successful book industries. What is the role of management? What factors specifically stimulate or inhibit private investment, local development activity and increased civic participation in book development? 3.6 Establishing an industrial policy checklist

The objective of this section is to develop standard industrial policy options for the textbook manufacturing sector in Africa. The study shall: • present a policy checklist with options for the textbook manufacturing and distribution sector which can be implemented by governments to achieve domestic growth and sustainability in textbook provision; • establish a methodology to compare the cost involved in importation with cost-effective local production of textbooks at primary and secondary level. The relative cost-efficiency of these two methods of textbook procurement can then be ascertained and compared. The long-term impact, in terms of economy of scale in publishing, of current and projected market size, for the basic different levels of textbooks will be taken into account. The study will examine a number of specific questions: 1. Are regional markets feasible in the short- or long-term? 2. What strategies are appropriate to protect ‘infant’ textbook industries? How can the productive capacity of the private sector be increased? 3. How can private investment be stimulated? 4. How can employment in the book industry be increased? 5. What measures are required to improve management? Are there special needs related to management training in book industries under african conditions? 6. What measures are appropriate to foster local competitiveness?

112

The objective of this section is to provide practical guidelines for implementing industrial policy for textbook provision in order to maximise national fiscal resources and financial resources of the community (for example parents) in the long term. The study shall: • outline, in a step approach, how a government, in conjunction with the private and development sectors, can create and implement industrial policy for textbook provision with the long-term goals of sustainability and expansion of local productive capacity. If necessary, separate policies for the typologies will be considered;

Appendix One

3.7 Implementing an industrial policy for textbooks

• include outline proposals for methods for determining the appropriate textbook pricing, subsidies, procurement policies, financing and distribution systems which are required to maximize textbook production, consumption and usage. Variations will be shown where they are required; • place particular emphasis on developing the book chain, fostering local competitiveness, diversity and industrial capacity in local textbook manufacturing and distribution, increasing employment, developing the private sector and deriving maximum benefit from textbook importation. 4. THE METHODOLOGY

113

Essential to the study is the input of recognized practitioners in textbook publishing and distribution in Africa. Their experience, whether successful or not, whether in the state, NGO or private sector is the basis of realistic and appropriate policy. In addition, they hold vital information about the actual practice of book provision in Africa. Finally, as they are amongst the persons who will be implementing a proposed policy, their opinion as to what works and why is unquestionably valuable Questionnaire-based data gathering is acceptable, providing the statistics related to the number of questionnaires sent, where sent and the proportion returned are stated. Where relevant, the study might make use of some existing book sector studies. However, the perspective and rationale of this research will not be confused with that of previous work. The study is expected to identify and use policy, information and research prepared by African publishers, book distribution experts and others, having established the accuracy of such material. Much useful analysis lies under-utilized in Africa and often has the advantage of placing issues in an entirely African context. The emphasis of the study will not be descriptive, i.e. gathering facts and figures, but analytical; determining the patterns of supply and consumption, identifying the main factors involved, and the logic behind proposed systems and policy. The study must assume and briefly describe its conceptual framework based around a functioning system of linkages between the various components, comprising a ‘book chain’ as its basis. This study must base its conclusions on a sample including anglophone, francophone and lusophone countries. The sample shall include countries representing the following categories:

Appendix One

The study will examine the specific publishing experience of different parts of Africa. It will articulate the conditions required for African textbook manufacturing to expand and qualitatively develop within a practical context. The study must: • conform to accepted economic criteria in the field of industrial sector policy formulation; • justify its conclusions in terms of recognized publishing and book development practice; • briefly show the implications for education in all its proposals; • propose policies most appropriate to African socio-economic realities.

(i) extreme dependence on imported textbooks, in excess of 80 percent of identified national basic requirements, and minimal domestic textbook manufacturing infrastructure; (ii) inadequate domestic manufacturing capacity producing less than 50 percent of basic textbook requirements; (iii) textbook manufacturing infrastructure producing over 50 percent of basic textbook requirements at all levels and marked by dominant or substantial state participation in the textbook manufacturing and distribution; (iv) textbook manufacturing infra-structure producing over 50 percent of basic textbook requirements at all levels and marked by dominant or substantial private sector participation in the textbook manufacturing and distribution. A proposal for policy formulation in each of the four typologies and an overall industrial development option for each must be provided. 5. QUALIFICATIONS OF CONSULTANTS

The requirements assume a combination of publishing/books expertise and a systematic approach to the analysis of the management and organization of textbook publishing, and it is this mixture which is vital to formulating an integrated policy. Eligible, competent consulting firms, consortia or joint venture groups are invited to submit applications for consulting services to undertake the study. Applications will be considered only from principals who are prepared to undertake full responsibility for carrying out the services as outlined. Applicants must describe their previous experience and involvement in Africa with economic sector analysis, industrial policy formulation and textbook publishing sector studies. Applications must name and justify the countries intended to be used as case study material throughout the study especially for the typologies. 6. TIME SCHEDULES AND DELIVERY OF MATERIAL

A first draft of the study in printed and on IBM-compatible software diskette is required to be lodged with the ADEA Working Group on Books and Libraries within six months of signing the contract The final draft is required to be lodged with the ADEA Working Group on Books and Libraries within three calendar months thereafter. 7. NOTE ON TERMINOLOGY

The study will avoid the use of unnecessarily complicated economic terms, providing this does not detract from the meaning or substance of the study. The readership of the study will include government officials, publishers and development agency staff. As a guide, the terminology will conform to that commonly used in textbook publishing and development.

114

The study will be made available to appropriate departments in all subSaharan countries, to donors concerned with textbook provision, to professional associations of African publishers and booksellers, and to book development organizations in Africa.

Appendix One

8. DISTRIBUTION OF THE STUDY

p

Appendix Two

Respondent Countries and Contacts

PERSON

ORGANIZATION

BENIN

Oscar de Souza

Les Éditions de Flamboyant

BOTSWANA

Mothaleemang Ntebela

Mmegi Publishing House

CAMEROON

Ngandu Tshimanga

Éditions Clé

CÔTE dÍVOIRE

Guy Lambin

Nouvelles Éditions Ivoiriennes

ETHIOPIA

Bayene Abraha

EMPDA

GHANA

Richard Crabbe

Africa Christian Press

KENYA

Ruth Makotsi

LESOTHO

M.M. MoshoeshoeChadzingwa

MALAWI

Martin Ferns

MALI

Hamidou Konaté

Éditions Jamana

MOZAMBIQUE

Samuel Matola

National Institute of Books

NAMIBIA

Clare Galloway

Gamsberg Macmillan

NIGERIA

Victor U. Nwankwo

Fourth Dimension Publishing Company Ltd

SENEGAL

Djibril Faye

Nouvelles Éditions Africaines de Senegal

TANZANIA

Walter Bgoya

Mkuku Nyota Publishers

TOGO

Victor Aladji

Faculté des Lettres Université du Benin

ZAMBIA

Christine Kasonde

Longman Zambia Ltd

ZIMBABWE

Lesley Humphrey

APNET

Institute of Southern African Studies

Appendix Two

115

COUNTRY

p

Appendix Three

Background facts on sample countries

BENIN Fact Sheet Population 1993: 5.1 million GNP per capita 1993: 430 US$ Income group: low (World Bank) Indebtedness level: moderate indebted Production % of GDP 1994: BENIN

Agriculture

34.2%

Industry

12.3%

Services

53.4%

Average annual growth % of GDP 1993: Gross domestic investments 19.8% Consumer prices (% change) 1993: N/I EDUCATIONAL INDICATORS 1 Literacy rate (%) Male Female Total

1980

1985

1990

1992

20.4 8.5 14.3

26.0 11.7 18.7

31.7 15.6 23.4

49.0

68.0 17.6

61.0 11.4

33 32

35 25

2 Government expenditure on education % of total expenditure N/I 3 Enrolment ratio (% of age group) Primary 64.0 Secondary 16.5 4 Pupil/teacher ratio Primary Secondary

48 38

117

Sources: Trends in Developing Economies, Extracts, Volume 3. Sub-Saharan Africa, The World Bank, 1995 A statistical profile of education in sub-Saharan Africa in the 1980s, DAE, 1994 Human Development Report, UNDP, 1995

Appendix Three

5 School age population projections 1990–2000 Average annual growth rates: 3.5%

BOTSWANA Fact Sheet Population 1994: 1.4 million GNP per capita 1994: 2790 US$ Income group: N/I Indebtedness level: N/I Production % of GDP 1994: Agriculture

N/I

Industry

N/I

Services

N/I

Average annual growth % of GDP 1992: 6.6 BOTSWANA

Gross domestic investments N/I Consumer prices (% change) 1991: 12

EDUCATIONAL INDICATORS 1980

1985

1990

1992

61.2 61.0 61.1

81.5 60.4 70.0

83.7 65.1 73.7

72.0

2 Government expenditure on education % of total expenditure 16.1 15.4

12.5

21.0

1 Literacy rate (%) Male Female Total

3 Enrolment ratio (% of age group) Primary 92.0 Secondary 21.3 4

Pupil/teacher ratio Primary Secondary

32 18

108.0 29.9

117.0 43.0

32 22

32 17

118


Appendix Three


CAMEROON Fact Sheet Population 1993: 12.5 million GNP per capita 1993: 820 US$ Income group: lower-middle (World Bank) Indebtedness level: severely indebted Production % of GDP 1994: CAMEROON

Agriculture

28.6%

Industry

24.9%

Services

46.5%

Average annual growth % of GDP 1993: Gross domestic investments -7.9% Consumer prices (% change) 1992 1.4% EDUCATIONAL INDICATORS 1980

1985

1990

1992

55.8 29.2 42.1

61.1 35.6 48.0

66.2 42.6 54.1

66.0


19.6

3 Enrolment ratio (% of age group) Primary 98.0 Secondary 18.3

102 22.7

101 27.5

51 31

51 27


4 Pupil/teacher ratio Primary Secondary

52 26

119


Appendix Three


ETHIOPIA Fact Sheet Population 1993: 51.9 million GNP per capita 1993: 100 US$ Income group: low (World Bank) Indebtedness level: severely indebted Production % of GDP 1994: ETHIOPIA

Agriculture

57.0%

Industry

10.1%

Services

32.9%

Average annual growth % of GDP 1993: Gross domestic investments NI Consumer prices (% change) 1993: 3.5% EDUCATIONAL INDICATORS 1980

1985

1990

1992

9.4 0.3 4.8

28.1 9.4 18.6

37.0 14.6 25.7

53.0


9.4


3 Enrolment ratio (% of age group) Primary 35.0 Secondary 8.7 4 Pupil/teacher ratio Primary Secondary

64 41

36.0 11.9

31.0 13.5

48 42

36 37

120


Appendix Three


GHANA Fact Sheet Population 1993: 16.4 million GNP per capita 1993: 430 US$ Income group: low (World Bank) Indebtedness level: severely indebted Production % of GDP 1994: GHANA

Agriculture

45.5%

Industry

15.7%

Services

38.8%

Average annual growth % of GDP 1993: Gross domestic investments 13.9% Consumer prices (% change) 1993: 25.0% EDUCATIONAL INDICATORS 1980

1985

1990

1992

56.9 33.5 45.0

63.8 42.2 52.8

69.9 51.0 60.3

67.0


24.3


76.0 39.7

77.0 37.8

23 20

29 19



29 22

121


Appendix Three


IVORY COAST Fact Sheet Population 1993: 13.3 million GNP per capita 1993: 630 US$ Income group: low (World Bank) Indebtedness level: severely indebted Production % of GDP 1994: IVORY COAST

Agriculture

41.3%

Industry

26.4%

Services

32.3%

Average annual growth % of GDP 1993: Gross domestic investments 19.3% Consumer prices (% change) 1993: 2.8% EDUCATIONAL INDICATORS 1 Literacy rate (%) Male Female Total

1980

1985

1990

1992

45.4 24.0 35.0

62.5 34.3 48.8

66.9 40.2 53.8

56.0

75.0 22.4

71.0 22.7

2 Government expenditure on education % of total expenditure 22.6 3 Enrolment ratio (% of age group) Primary 79.0 Secondary 19.4 4 Pupil/teacher ratio Primary Secondary

39

36

122


Appendix Three


KENYA Fact Sheet Population 1993: 25.3 million GNP per capita 1993: 270 US$ Income group: low (World Bank) Indebtedness level: severely indebted Production % of GDP 1993: KENYA

Agriculture

28.9%

Industry

17.6%

Services

53.5%

Average annual growth % of GDP 1993: Gross domestic investments -10.7% Consumer prices (% change) 1993: 45.8 EDUCATIONAL INDICATORS 1 Literacy rate (%) Male Female Total

1980

1985

1990

1992

59.6 34.8 47.1

77.1 53.2 65.0

79.8 58.5 69.1

78.0


38 25

16.7

99.0 25.9

95.0 29.0

34 20

31 17

123


Appendix Three


LESOTHO Fact Sheet Population 1993: 1.9 million GNP per capita 1993: 650 US$ Income group: low (World Bank) Indebtedness level: less indebted Production % of GDP 1994: Agriculture

13.7%

Industry

45.8%

Services

40.5%

Average annual growth % of GDP 1993: Gross domestic investments 7.3% LESOTHO

Consumer prices (% change) 1993: 13.8%

EDUCATIONAL INDICATORS 1980

1985

1990


74.0


1992

48 20

12.2

113.0 23.1

107.0 25.6

55 20

55 20

124


Appendix Three


MALAWI Fact Sheet Population 1993: 10.5 million GNP per capita 1993: 200 US$ Income group: low (World Bank) Indebtedness level: moderately indebted Production % of GDP 1994: Agriculture MALAWI

-29.3%

Industry

5.3%

Services

0.7%

Average annual growth % of GDP 1994: Gross domestic investments 23.5% Consumer prices (% change) 1993: 19.7% EDUCATIONAL INDICATORS 1980

1985

1990

1992

32.9 12.0 22.0

33.5 12.3 22.5

41.7 17.7 29.3

55.0


10.3


60.0 4.1

69.0 3.9

61 22

64 26



65 21

125


Appendix Three


MALI Fact Sheet Population 1993: 10.1 million GNP per capita 1993: 270 US$ Income group: low (World Bank) Indebtedness level: severely indebted Production % of GDP 1994: MALI

Agriculture

42.0%

Industry

16.1%

Services

41.9%

Average annual growth % of GDP 1994: Gross domestic investments 23.9% Consumer prices (% change) 1993: N/I EDUCATIONAL INDICATORS 1980

1985

1990

1992

22.0 9.1 15.1

30.9 15.4 22.7

40.9 23.9 32.0

56.0


17.3


23.0 6.5

24.0 6.7

34 12

42 14



42

126


Appendix Three


MOZAMBIQUE Fact Sheet Population 1993: 15.1 million GNP per capita 1993: 90 US$ Income group: low (World Bank) Indebtedness level: severely indebted Production % of GDP 1994: Agriculture

32.8%

Industry

12.3%

Services

54.9%

Average annual growth % of GDP 1994: Gross domestic investments 0.1%

MOZAMBIQUE

Consumer prices (% change) 1993: 42.2 EDUCATIONAL INDICATORS 1980

1985

1990

1992

33.8 12.2 22.7

39.4 16.4 27.6

45.0 21.4 32.9

38.0


12.0


87.0 7.3

66.0 7.6


64.0 32.0

57.0 34.0


81.0 36.0

127


Appendix Three


NAMIBIA Fact Sheet Population 1994: 1.6 million GNP per capita 1994: 1820 US$ Income group: NI Indebtedness level: NI Production % of GDP 1994: Agriculture

NI

Industry

NI

Services

NI

Average annual growth % of GDP 1993: Gross domestic investments

NAMIBIA

Consumer prices (% change) 1993: NI EDUCATIONAL INDICATORS 1980

1985

1990

64.5 40.0 52.0

68.3 41.1 54.5

72.2 46.6 59.2


21.1



125.0 37.6


1992

119.0 41.3

29 16

128


Appendix Three


NIGERIA Fact Sheet Population 1993: 105.3 million GNP per capita 1993: 300 US$ Income group: low (World Bank) Indebtedness level: severely indebted Production % of GDP 1994: NIGERIA

Agriculture

42.7%

Industry

32.1%

Services

25.2%

Average annual growth % of GDP 1994: Gross domestic investments -14.1% Consumer prices (% change) 1993: 57.2 EDUCATIONAL INDICATORS 1 Literacy rate (%) Male Female Total

1980

1985

1990

1992

46.9 23.2 34.8

54.8 31.1 42.7

62.3 39.5 50.7

66.0

2 Government expenditure on education % of total expenditure 8.7 12.0 3 Enrolment ratio (% of age group) Primary 104.0 Secondary 19.0 4 Pupil/teacher ratio Primary Secondary

37 29

82.0 29.2

72.0 19.6

44 23

41 20

129


Appendix Three


SENEGAL Fact Sheet Population 1993: 7.9 million GNP per capita 1993: 750 US$ Income group: lower-middle (World Bank) Indebtedness level: moderately indebted Production % of GDP 1994:

SENEGAL

Agriculture

17.2%

Industry

20.0%

Services

62.8%

Average annual growth % of GDP 1994: Gross domestic investments 0.1% Consumer prices (% change) 1993: -0.6 EDUCATIONAL INDICATORS 1980

1985

1990

1992

31.1 14.2 22.5

45.4 19.3 32.1

51.9 25.2 38.3

51.0


24.1


56.0 13.9

59.0 16.3

46 23

58 23



46 22

130

Sources: Trends in Developing Economies, Extracts, Volume 3. Sub-Saharan Africa, The World Bank, 1995 A statistical profile of education in sub-Saharan Africa in the 1980s, DAE, 1994 Human Development Report, UNDP, 1995 Note: Figures marked with an asterisk refer to current educational expenditure only.

Appendix Three


TANZANIA Fact Sheet Population 1993: 28.0 million GNP per capita 1993: 90 US$ Income group: low (World Bank) Indebtedness level: severely indebted Production % of GDP 1993:

TANZANIA

Agriculture

56.0%

Industry

14.4%

Services

29.6%

Average annual growth % of GDP 1993: Gross domestic investments -3.2% Consumer prices (% change) 1993: 23.5% EDUCATIONAL INDICATORS 1980

1985

1990

1992

69.3 49.7 59.2

70.4 51.5 60.7

74.0 55.8 64.7

68.0


11.4


3 Enrolment ratio (% of age group) Primary 93 Secondary 3.3

75 3.3

69 4.7


34 18

35 19

41 21

131


Appendix Three


TOGO Fact Sheet Population 1993: 3.9 million GNP per capita 1993: 340 US$ Income group: low (World Bank) Indebtedness level: moderately indebted Production % of GDP 1994: TOGO

Agriculture

40.7%

Industry

18.9%

Services

40.4%

Average annual growth % of GDP 1994: Gross domestic investments 63.7% Consumer prices (% change) 1993: -1.0 EDUCATIONAL INDICATORS 1980

1985

1990

1992

46.3 20.0 32.8

51.4 25.1 37.9

56.5 30.7 43.3

52.0


24.7



55

93.0 20.9

111.0 23.1

46 22

59 28

132


Appendix Three


ZAMBIA Fact Sheet Population 1993: 8.9 million GNP per capita 1993: 380 US$ Income group: low (World Bank) Indebtedness level: severely indebted Production % of GDP 1994:

ZAMBIA

Agriculture

31.9%

Industry

33.4%

Services

34.7%

Average annual growth % of GDP 1994: Gross domestic investments -50.8% Consumer prices (% change) 1993: 189.0% EDUCATIONAL INDICATORS 1980

1985

1990

1992

71.7 51.2 61.1

76.8 58.7 67.4

80.8 65.3 72.8

81.0


8.7



49 21

100.0 18.0

92.0 21.3

49 21

44 23

133


Appendix Three


ZIMBABWE Fact Sheet Population 1993: 10.7 million GNP per capita 1993: 520 US$ Income group: low (World Bank) Indebtedness level: moderately indebted Production % of GDP 1994: Agriculture

15.2%

Industry

36.4%

Services

48.4%

Average annual growth % of GDP 1994: Gross domestic investments -2.6%

ZIMBABWE

Consumer prices (% change) 1993: 27.6% EDUCATIONAL INDICATORS 1 Literacy rate (%) Male Female Total

1980

1985

1990

65.3 49.3 57.2

69.8 55.0 62.3

73.7 60.3 66.9

1992

2 Government expenditure on education % of total expenditure 13.7 16.0 3 Enrolment ratio (% of age group) Primary 85.0 Secondary 7.7 4 Pupil/teacher ratio Primary Secondary

44 20

136.0 41.5

116.0 50.0

40 28

36 27

134


Appendix Three


GLOSSARY OF PUBLISHING TERMS

The writer/creative party of the book or other materials. Agreement

The document which sets out the terms and conditions under which a book will be published. An agreement (contract) is signed by the author and the publisher, and sets out the provision for royalty payments, as applicable. Backlist

All the ‘old’ titles (distinct from the ‘frontlist’ – those most recently published) a publisher has in print/available. Binding

The way in which printed pages are held together in a book. There are a number of binding methods related to the size/required durability of the book. Camera-ready copy (CRC)

The final text and illustrations of a publication, pasted up ready to be put on film prior to platemaking and printing. Copyright

135

An author’s legal right to publish his or her work and not to have it copied without permission. Copyright lasts for 50 years after the author’s

death according to the Berne Convention, and for 25 years according to the Universal Copyright Convention. Costing

Calculation of all the costs involved in producing, marketing and distributing a book. This enables the selling price to be established. Design

The choice of format, typeface, typesize and other specifications, the layout of each page of the book and the cover. Desktop publishing (DTP)

The use of computer programs to carry out design and page layout electronically. The result can be printed using a laser printer and used as CRC with the addition of illustrations. Distribution

The transfer of the finished books to wholesale or retail outlets or directly to the reader. Editing

The preparation of a manuscript or typescript for production and thence publication. Editing can include working in conjunction with an author or authors to produce a final manuscript as well as preparing the script for press

Glossary of Publishing Terms

Author

Edition

The quantity of copies of a book printed and bound at the same time or in subsequent identical printings. If substantial changes are made to a book prior to a subsequent printing, then this is considered to be a new edition. Editor

The person who prepares a manuscript for a printer. The editor may work with the authors as they are developing a script. Editorial

Relating to the work of an editor. Evaluation

Any form of assessment of draft or finished materials, including trialling or pilot testing, but also including careful reading of a script by an expert in the relevant field. Extent

The length of a book (number of pages). Extents are usually worked out as economically as possible, in multiples of 16 or 32 pages, to keep paper wastage to a minimum. Film

The last stage in the production process, before platemaking and printing. Film is stored for reuse to make fresh plates for a reprint. Separated films are used for the production of colour in books. 136

Format

The dimensions of a book after it has been trimmed. Sometimes the term is used more generally to encompass the general style of a book, including illustration, typeface used, binding style, etc. Layout

The arrangement of the text and illustrations on a page of a book. Manuscript development

The planning, writing, trialling and revision of a manuscript for subsequent production and publication. Manuscript/typescript

Strictly speaking a manuscript is handwritten, whereas a typescript is typed, but the terms are usually used interchangeably, and are sometimes abbreviated to ‘script.’ Manuscripts for publication are usually typed or wordprocessed. Marketing

The promotion and sale of books (or other commodities) for commercial gain. Pilot testing

See trialling. Pre-press

This describes all those activities which are carried out on a publising project prior to platemaking/printing. Pricing

The act of determining the price at which the book will be sold. Print finishing

The stages after printing, including folding, collating, binding, trimming and checking of a work. Print run

The number of copies of a book printed at one time.


(sometimes referred to as copy-editing,): involves checking for accuracy, style, consistency etc., proofreading and liaising with other specialists engaged in the production of the book, such as illustrators, designers, production and sales/ promotion staff.

A company which prints books or other materials, usually for commercial gain. A printer will often have typesetting and bookbinding facilities as well, Production

Generally all the functions involved in the creation of a finished book, other than manuscript development, editing and design. Proofs

All printed matter is proofed at one or more stages. Books are no exception, and proofs of the text and all illustrative material are checked and corrected where necessary by the editor. Publication

The offering for sale to the public of a book. Books are usually registered centrally and carry a code (ISBN) number which assists identification and ordering. Publisher

A company which publishes, usually for commercial gain. (Also known as a publishing house.) Publishing

A general term use to refer to the activities of a publisher – the creation, financing, distribution and marketing of published works. Publishing house

See publisher. Publishing rights

137

The legal rights to publish a new or revised edition of a book. There are several categories of publication rights, such as: foreign rights – the legal right to sell a book in a foreign country; subsidiary rights – the legal right to adapt a book in some specified way, including translation. All such rights are negotiated and provided for in the publishing agreement.

Reprint

The second (or third, fourth etc.) printing of an already published book, involving no changes to the text – as distinct from a new edition (or revised edition), where substantial changes are made. Royalty

The payment to the author by the publisher for copies sold of his/her book. The royalty is calculated as a percentage of either the full or discounted price of the book, and royalty terms are set out in the agreement. Textbook

A book used in the course of study, especially as a main course book rather than as supplementary material. Title

The work in book form; a name given to a book. Trialling

The trying-out of draft educational materials in the classroom, to assess suitability, level, effectiveness etc. with a view to identifying improvements that can be made to the draft during the manuscript development stage. (Also known as pilot testing). Typesetting

Putting the manuscript into printed form. This may be done by various means: electronic or mechanical. Typography

The design of typefaces (sets of characters) and the way that type is presented on the page. Word processing

The use of a computer to produce typed copy, with facility for easy revision of drafts. Sometimes includes the facility for page layout.


Printer

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and FULLE, B. How Textbooks Affect Achievement, The World Bank, 1987.

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and MAKOTSI, R. The Book Market in Kenya Today, Dag Hammarskjöld Foundation, 1994.

PAXMAN, B., DENNING, C.,

and READ, A., Analysis of Research on Textbook Availability and Quality in Developing Countries, 1989.

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Development Directory of Indigenous Publishing, African Publishers´ Network, 1995.

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Cost and Financing of Teaching and Learning Materials Study, Kenya, ARA 1995.

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General Operational Review of Textbooks, The World Bank,

1985. SIDA,

Experience in School Book Support in Mozambique and Regional Perspectives, 1994.

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STANDARD AND CHARTERED BANK, UNDP,

Africa Quarterly Report, 1996.

Human Development Report, 1995.

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Annotated Guidelines for the Preparation of a National Book Development Plan, s.a.

UNESCO,

Business of Book Publishing. A Management Training Course,

1990. Development of Industrial-Scale Manufacturing of Materials and Equipment Adapted to Educational Needs in the Third World, Analysis of the Problems and Proposals for Action, 1980.

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VERSPOOR, A.M.

Pathway to Change, Improving the Quality of Education in Developing Countries, The World Bank, 1989.

VERSPOOR, A.M.

and LENO, J.L. 1986. Improving Teaching: A Key to Successful Education Change, The World Bank, 1986.

and MAASDORP, E. Study on Textbook Provision and the Feasibility of Cooperation among SADC Countries: Namibia Case Study, UNDP, 1994.

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WORLD BANK,

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1989. WORLD BANK,

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Labour and The Growth Crisis in Sub-Saharan Africa,

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‘Publishing and Book Development in Africa: A Bibliography’ in Studies on Books and Reading No. 15, UNESCO, s.a.

141

Bibliography

ZELL, H.M.

index

143

backlist 52-3, 135 bad debts 85-6 bank borrowing, bank loans 26, 80, 87 Baobab Books 29 Bellagio Group 92 Benin 2, 31, 38, 49, 70, 117 Berne Convention 135 binding 10-12, 62, 74, 79, 83, 104, 135-6 book development councils 25, 30, 36-7, 94, 103, 106 book fairs 29, 94 book/pupil ratio 26, 29, 31, 43, 456, 104, 106 bookseller/s, bookshops 2, 12, 20, 25, 30, 33, 35, 37, 63-7, 71-2, 76, 81, 84, 91, 93, 95, 103 booksellers associations 30, 95 Botswana 2, 22, 38, 43, 49, 70, 90, 118

British Council 31, 70 Burkina Faso 31 buy-back schemes 72 Caixa Escolar 23 camera-ready 56, 60, 135 Cameroon 2, 38, 43, 49, 70, 92, 119 Canada 32, 93 capital, working 16, 27, 85, 88, 96, 99 equity capital 87-8, 96 cash flow 16, 103 catalogue/s 63-4 centralized system 10, 39, 41, 44 Chichewa 25 churches 69, 72 CIDA 26, 32, 36, 70 CODE 36, 93, 137 College Press 29-30 competition 7, 18, 20, 26, 28, 39, 43-4, 55, 58, 62-3, 67, 78, 80, 82, 84, 102, 105, 107 competition, absence of 58 copyright 36, 93, 105, 135 cost 11, 15, 21-22, 35-36, 41, 58-9, 62, 67, 72-84, 89-91, 103-4 costs, controlling 63 costs, direct 22, 80 cost-effectiveness 20, 60 cost sharing 72-3, 89, 104 cost structure 73-4, 78, 80, 84 costs, finance 80-2 costs, fixed 75 costs, variable 75 unit costs 75-6, 78-9, 81 costing 22, 59, 77-8, 82-4, 89-90, 135 credit periods 66 curriculum 7, 9, 11, 14, 21-3, 25-

Index

ACCT 32 ADEA 1 administration 10, 13-14, 25, 33, 49-50, 77, 81-2 administration staff 13, 50 advertisements, advertising 64 African Books Collective 93 African Development Bank 70 Alfa Éditions 32 APNET 29, 32, 55, 77, 87, 92-4 Apple Macintosh 60-1 approval systems, textbooks 56, 59 Armand Colin 31 Asia 61 author/s, authorship 5, 7, 12-13, 15, 29, 33, 57, 77, 81, 92, 95, 135-7

Dag Hammarskjöld Foundation 36, 88, 92–3 DANIDA 93 decentralization 24, 27-8 decentralized purchasing 27 design 11-12, 41, 49, 60-2, 79, 101, 135, 137 desktop publishing 23, 60–1, 135 discounts 65-6, 76, 79-82, 84, 95 distribution, distributors 5, 10-17, 23-7, 29-31, 33, 35, 37, 39, 446, 51, 54, 63-4, 66-7, 71-3, 76, 83-5, 90, 103, 106-7, 135, 137 distribution, centralized 71 domestic ownership 52 donor/s 18, 23, 26-5, 28, 31, 36-7, 47, 69-70, 86, 88-9, 92, 94, 97, 99-100 DSE 25 Dzuka Publishing Company 25

144

East African Community 34 economies of scale 51, 73, 76, 85 Édicef 31 EDIME 31-32 editing, editor/s 5, 9, 11-13, 15–16, 27-8, 50, 61, 74, 77, 93, 136-7 Éditions Clé 92 Éditions Donniya 32 Éditions Fayida 32 Éditions Jamana 32, 92 Éditions Sahélien 32 Editora Escolar 23 education: education policies 14, 17, 46, 55 6 education system 7, 9, 57 educational planning 1 education, quality of 8, 99, 105 6, 108 educational standards 24 Educational Resources Information Centre (ERIC) 3 English 2, 25, 37 enrolments 24, 44-6, 51 Ethiopia 2, 38, 43, 49, 70, 93, 120

European Community 37 European Union 31, 70 Evans 35 exhibitions 63-4 film 62, 135-6 finance 2, 8, 16, 20, 26-8, 31, 33, 36-7, 40, 80-2, 86, 98, 101, 103-4 financial constraints 99, 105 financial data 44, 50 financial planning 85-6 financial problems 23 financing of textbooks 10, 31, 98 financial, financing 2, 5-6, 8-10, 14-18, 21, 23, 28, 31-3, 36, 41, 44, 46, 50, 52-3, 56-7, 59, 61, 66, 69, 72, 77, 79-80, 85-8, 90-1, 93, 96-9, 102-6, 137 FINNIDA 70 foreign competition 43 foreign exchange 62 foreign ownership 34-5, 53 format 41, 47, 135-6 France 31-3, 62 free market 20-1, 24, 28-9, 44, 73, 106-7 funding 13, 16, 18, 25, 29, 37, 46-7, 50, 54, 59, 65, 69-71, 73, 75, 77, 79, 81, 83, 85, 87, 89, 91, 93, 95-6, 99, 101-2, 107 funding strategies 102, 107 funds, scarcity of 47 general literature / titles 50-2, 71 Ghana 2, 38, 49, 93-5, 121 government: government funds 98 government intervention 7 government policy 34-5, 101 government, role of 69, 101, 104 government-controlled publishing 38-9, 41, 69, 73 GTZ 25, 31 Guinea 31 Hans Zell 3 Harare 30 Hatier 32 Heinemann 34-5 Ibis 37 IBM computers 60-1 IDA 27, 32-3

Index

30, 32, 34, 36-7, 40, 56-8, 89, 91, 102, 104, 106 curriculum development 7, 9, 11, 23, 26-30, 32, 34, 40, 57-8, 89, 91, 106 curriculum development instit tions 57-8, 89, 91

Japan 70 Jhango 25 Kenya 2, 31, 34-6, 38, 49, 61, 70, 88, 93-5, 123 Jomo Kenyatta Foundation 34-5 Kenya Institute of Education 34 Kenya Literature Bureau 34, 35 Kenya School Equipment Scheme 34 Kenya Publishers’ Association 35 layout 11, 61, 135-7 Le Seuil 31 leadership 103 Lesotho 2, 38, 49, 70, 93, 124 liberalization 27, 33, 39, 58, 91 liberalization of textbook publishing 58 Librairie Jamana 33 Librairie Nouvelle 32-33 Librairie Populaire 33 Librairie Traore 33 Librarie Populaire 31 lifespan of text books 7, 42-5, 51, 102, 104 loans 16, 18, 70, 86-8, 99, 104 loan guarantee 87-8, 93 Longman 29-30, 34-35

145

Macmillan 25, 35 Macmillan Malawi 25 Malawi 2, 24-6, 38, 70, 125 Malawi Book Service 25 Malawi Institute of Education 25–6

Mali 2, 31-3, 38, 92-3, 126 Mambo Press 29 management 6, 10, 13, 20, 23, 26, 36, 49-50, 52-4, 61-3, 73-4, 77, 81-2, 96, 100-3 management and administration staff 50 management, backlist 52 manuscript 5, 11, 16, 28, 32-4, 41, 55-7, 74, 77, 91, 135-7 manuscript development 28, 56 7, 91 manuscripts, evaluation of 56-8 mark-up (of prices) 78 marketing 5, 10-15, 20, 27, 30, 44, 55, 63-4, 67, 76, 80-5, 90-1, 99, 103, 107-8, 135-7 market conditions 20 market data 55 market research 55, 71, 76, 78, 102 market structures 17-21, 23-5, 27-9, 31, 33, 35, 37, 39 marketing methods 63-4, 108 marketing tools 63-4 Mauritius 61 Ministry of Education 2, 8, 10-11, 20-3, 25-30, 34, 36, 40, 72, 97-8, 101-6, 108 monopoly 10, 20-2, 24-5, 28, 34-5, 39, 42, 44, 56, 62, 71-2, 83, 90, 101, 105, 107 monopoly publishing 10, 22, 42, 107 monopoly systems 39, 71-2 Mozambique 2, 22-23, 38, 70, 89, 127 NAMAS 37 Namibia 2, 31, 36-37, 49, 93, 128 Nathan 31 National Book Council 2, 19 National Book Development Council 36 National Book Policy (NBPs) 19, 33, 35, 98 NEA 31, 92 NGO/s 37, 69-70, 72, 93 Niger 31 Nigeria 2, 38, 61-2, 93, 95, 129 Nouvelles Éditions Africaines 31, 92 Obor Foundation 36

Index

IIEP 1 illustrating, illustrators 9, 11-13, 16, 27, 32, 50, 77, 93, 136 INDE 23 information systems 19, 24, 44, 47, 59, 105 Ink 62-3, 74 interest rates 66, 87-8, 96 International Publishing Partnership 93 investment/s 1, 7, 43, 50, 56, 67, 76, 78, 85, 95, 98-9 future investment 85 ISBN 137 Italy 92 Ivory Coast 2, 31, 61, 92, 122

Pan-African Writers Association 95 paper 7, 11-12, 14, 23, 26, 30, 35, 41, 62-3, 74-5, 81, 83, 85, 88-9, 104, 136 paper supplies 62 parastatal companies 20-1, 30, 50, 62 Pierron 32 planning 1, 13, 15, 17-19, 21–2, 39, 44, 70, 73, 85-6, 88, 90, 97-8, 100-4, 106–7, 136 Portuguese 2 pre-press 10-12, 32, 74, 76, 99, 136 pre-testing and evaluation 57-8 Présence Africaine 31 price, pricing 20-2, 24, 27, 41, 58-9, 66-7, 74-6, 78-5, 87, 89-91, 102, 135-7 printing 10-12, 14-16, 23, 27, 30-1, 37, 61-2, 74-5, 79, 89-90, 99, 1357 production 2, 5, 7, 10-14, 17, 23, 25-8, 30-5, 37, 39, 42, 44-7, 60-2, 74-82, 84-6, 89-90, 99, 103, 107, 135-7 production costs 74, 76, 80 production process 76 profit 12, 20, 77-82, 84 profitability 5, 17, 20, 29, 41, 80, 84, 86, 102-3, 107 profit, gross 79-82, 84 profit, net 80-2 profit, operating 80-2 promotion 11-12, 76, 94, 105, 136 proofs 137 publishers associations 2, 18, 25, 27, 29, 35, 37, 61, 54-5, 77, 93-5, 100 publishing overheads 22, 77 publishing strategies 24 quality control 11, 16, 59 questionnaires 2, 85

146

raw materials 16, 41, 47, 62-3, 74, 77, 85-86, 105 reprints 89, 136-137 retail, retailers 30, 65-6, 74, 78-9, 81, 84, 135

royalty, royalties 32, 57, 77, 79-82, 84, 95, 135, 137 SADC 37 sales, selling 2, 5, 7, 11-12, 14-16, 18, 20, 30, 35, 39, 44, 49-52, 54, 63-5, 71-2, 76-7, 79, 81-2, 84-8, 90, 99, 105, 135-6 sales, net 79, 81-2 sales tax 7, 77, 88 selling methods 65 science 25, 37, 42 Senegal 2, 31, 38, 43, 49, 61, 70, 92, 130 Serbedit 32 Sida 23, 27, 36-7, 70, 89, 93 social studies 37 Soudan 33 South Africa 2, 25, 29-30, 36, 61, 93 Spectrum 20 staff, staffing 6, 13, 23, 49-50, 53-4, 58, 65, 77, 86, 89, 100, 103-4, 136 state monopoly 22, 62 state-owned 21, 23, 38 statistics 2, 42, 45, 98, 105 stock 42, 44, 46-7, 52 strategy 17-19, 26, 28, 102-3, 107 subcontracting 11, 13, 15 subsidies 22, 36, 89-91, 99, 105 subsidized publishing 89 supplementary readers 25, 52, 71 SWOT analysis 103 Tanzania 2, 24, 26-7, 28, 38, 43-4, 61-2, 70, 89-93, 95, 137 Tanzania Institute of Education 27 taxation, taxes 7, 77, 80-2, 88-9, 105 technical cooperation 25 Textbook Centre, Kenya 35 textbooks passim textbooks, approval of 10-11, 29, 40, 58, 104, 106 textbook markets 24, 55 textbooks, primary 25-6, 50, 52, 66, 72 textbook procurement 87, 102 textbook provision 2, 8, 18, 21-3, 31, 33, 37-8, 44, 47, 69-70, 72, 89, 97-8, 100-7 textbooks, quality of 11, 15-16,

Index

ODA 25, 31, 36, 70 Opifer 1 origination 11, 60 Oxford University Press 34

Uganda 38, 90, 93 UNESCO 1, 3, 31, 36, 94 UNICEF 31, 36, 70 United Kingdom 25 United States 49, 79, 81-2, 87 USAID 31-2, 70

147

VAT 88 wholesalers 12, 65-6 World Bank 23, 26-7, 32, 36, 86-7 writers, writing 5, 9, 10-12, 13, 1516, 21, 32, 50, 56-7, 74, 77, 89, 91-2, 95, 136 Zambia 2, 38, 43, 49, 70, 89-90, 93, 133 Zimbabwe 2, 29-30, 38, 43, 49, 58, 61, 70, 93-5, 134 Zimbabwe Book Development Council 30 Zimbabwe International Book Fair 29, 94 Zimbabwe Literature Bureau 29 Zimbabwe Publishers Association 29-30 Zimbabwe Publishing House 29

Index

39, 58-9 textbooks, secondary 25, 50, 66, 72, 77 trialling, of textbooks 10-11, 59, 136-7 Times Bookshops 25 Togo 2, 31, 38, 43, 49, 70, 92, 132 training 24, 28, 54, 57, 61-2, 93, 95-6, 100, 104-5, 107 training staff 54, 100 Tunisia 32 turnover 29-30, 34, 49-51, 79, 81-2, 87, 99, 103 typesetting 60, 62