Project on Privatization of Education

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 Contents

Page No:

a) …………………………………………………………Introduction 3--5

b) …………………………………………………………Privatisation 5

c) ………………………………………………………..Concept of Privatisation 6

d) …………………………………………………………Education and Privatisation 6

e) ………………………………………………………….Need for Privatisation 7--8

f) ………………………………………………………….Merits of Privatisation 9

g) ………………………………………………………….Demerits of Privatization 10

h) ………………………………………………………….Fears in Privatization of education 11

i) ………………………………………………………….Causes of Privatisation 12 __13

j) …………………………………………………………..Conclusion 14--15

k) ………………………………………………………….Recommendation 15

l) …………………………………………………..References 16

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ABSTRACT
Privatization in generic terms refers to the process of transfer of ownership, can be of
both permanent or long term lease in nature, of a once upon a time state-owned or
public owned property to individuals or groups that intend to utilize it for private benefits
and run the entity with the aim of profit maximization. In other words, it is a route from
public or state
ownership to
private players
or a group. From
the other point
of view, it is a
strategy that
provides
advantages to a
few at the price
of many.
However, this is
always subjected
to the
circumstances involved. In this paper, the aim is to understand the major advantages
and disadvantages of privatization in this country.

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a)Introduction
Privatization of Education in India!
Since the impact of privatization is penetrating all sectors of the economy, it is bound to
affect education sector as well. As it is very difficult to meet the democratic aspirations
of the people for further expansion of educational system due to paucity of resources it
is therefore, being felt that the private sector is inducted in education so that it car
share the burdens of the state in funding education.

Privatization of formal education in India is not new; it existed even before

independence in the form of so-called public schools (like Doon School, Mayo College)
and Christian missionary schools and colleges. They used to be run by their own Board
of Management without much interference by the government. After independence,
there was an expansion of education.

Central and state governments both took initiatives to establish state-owned or

government-aided schools. Teachers at all levels have their salaries determined
according to national or state wage scales. After 1990s interlinked processes of
globalization and liberalization have also tremendously affected the educational process
in India.

These have encouraged many forms of privatization and aided schools through
processes like rise in private tuition, subcontracting the publication of textbooks to
private agencies, selection and appointment of teachers by their own management
boards on their own terms and conditions, etc.

These processes have created new situations which in turn had brought both
opportunities and challenges to educational institutions in India. The process of
globalization has recently encouraged many foreign universities and educational
institutions of repute (e.g., Oxford, Harvard) to start exploring the possibilities of
establishing their branches in India.

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Although the demand for schooling has increased among the people of all the strata of
society, including the marginalized, over the years, standards of government schools
have declined considerably. Despite an increase in enrolment, the content and quality
and process of schooling and teaching practices are not only degrading but
discriminatory also.

There is an utter lack of infrastructural facilities in government schools, such as

students’ desks, tables, stools, carpets, teacher’s chairs, black boards, drinking water,
limited space with or without constructed class rooms, lack of play grounds and
teaching materials, etc.

All these shortcomings, along with the defective teaching system, have deleterious
effects on the education of students. Moreover, the procedure of appointment of
teachers in state schools is also very faulty. The truth is that politicians sell teaching jobs
for a handsome price. Such teachers, who are appointed for life, are protected and
believed that there is no need to teach. With such perverse incentives accountability
disappears.

India spends a respectable 4 per cent of GDP on education and even in the recent
budget proposals (2007), spending on education (and health and rural employment
schemes) has increased 35 per cent. Sarva Shiksha Abhiyan to improve primary
education is a success in numbers.

An IIM study of 13 states has found that the out-of-school population in the 6-14 age
groups fell from 28.5 per cent in 2001 to 6.94 per cent in 2005. The share of children
from Dalit and tribal communities in primary education has also gone up. Gender
disparities have also been reduced significantly.

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However, school dropout trends do not show a similar progressive decline. Out of 400
districts surveyed in the study, only 190 have experienced a decline in dropouts after
primary school. However, these figures do not tell us the full story. The picture will be
completed only if we also look at a World Bank study of teacher absenteeism. In some
states it is as high as 50 per cent.

The Kremer-Murlidharan survey shows that one out of four school teachers are absent
in state primary schools, and of those present one out of two is not teaching. Thus, the
heart of the problem is teacher’s accountability. This problem becomes more
heartbreaking when we look to the exalted status of the teacher as a Gum in Indian
culture.

Education and schooling both are changing very fast and also substantially by the impact
of information technology—computers, Internet and multimedia. Now-a-days,
gradually, school is becoming less and less important, because pupils can learn through
computers and Internet at home itself. This is creating an atmosphere of ‘classroom
without walls’.

Sometime back, there was good news that US children are taking coaching of
Mathematics and English by Chennai (India)-based teachers on Internet. New
technology will have radical implication for education. Scholars believe that they may
reinforce educational inequalities. ‘Information poverty’ might become added to
material deprivations.

In modern societies, virtually everyone can read and write. The printed word and
electronic communication, combined with the formal teaching provided by schools and
colleges, have become fundamental to modern way of living. Before independence,
formal schooling was available only to the few who had the time and money available to
pursue it.

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b) Privatization & Concept of Privatization:
Privatization connotes a wide range of ideas. Privatization implies induction of private
ownership, management and control of organizations. Privatization can imply
deregulation meaning thereby lesser control of the government. It refers to expansion
of private sector and reduction of public sector. It also means that areas reserved for
the public sector will be opened to the private sector. The shift towards privatization
reduces the role of the government and increases the role of the private, cooperative
and local government. The areas of shift are mainly decision making and responsibility
of money and administration.

c) Education and Privatisation:

Applied to the education sector, privatization can be seen as part of the wider reform of
the public sector. Education is both a private and social investment. It is therefore the
responsibility of 202 both the individual including the student, his family and even his
employers and the society which includes the community and the state. The areas of
shift in the education sector are mainly decision and responsibility of money,
administration and a relevant curriculum of high quality. Privatization is management by
private sector with total absence of government intervention. Such institutions generate
their own funds through higher fees, user charges and full use of resources. They survive
on the philosophy that they do not have to pay for those who can pay. Privatization of
higher education has emerged in several forms and types in the recent decade in India.
1. Privatization within government higher education institutions takes place in the form
of introducing self-financing courses within government institutions.

2. Converting government aided private institution in to private self-financing

institution.

3. Allowing to expand self-financing private institution with recognition and also

without recognition, which may be termed as commercial private higher education
institutions.

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d) Factors Responsible for Privatization of Education (Need for Privatization)

I. Need for competitive efficiency:

Main justification for privatization rests heavily on the grounds of efficiency

to promote a more competitive economic environment. Operation of public
sector enterprises is considered inefficient. It is believed that private
ownership and control are more efficient in terms of resource allocation and
work.

II. Growth in population:

India has a population of nearly one hundred and seven cores.In order to
provide to a large number of people more private institutions are needed. To
fulfill the demand for higher education of young people in the country
privatization of higher education is needed.

III. 3. Financial burden on government:

Higher education in India is in financial stress. The state/government can no

longer bear the financial burden of public enterprises. Current spending on
education in India is not more than 3.5% of GDP. The center itself concedes
that the minimum should be 6%. Very little is being spent on higher
education. This compares unfavorably with the international level, especially
when compared with countries such as South Africa, which invests eight per
cent of GNP on education. Therefore there is a need to evolve policy through
which private resources are mobilized.

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IV. Education is an Economic good:

Education is no more being as a social service but as a necessary economic

input. Investment in education is treated as a factor contributing to the
development of human resources. In this effort private initiative can help
since the private sector is the beneficiary of the knowledge industry.

V. Quest for Quality:

Private institutions do not require long procedures for procurement of

human as well as material resources. In order to purchase and maintain good
qualitative infrastructure and equipment like furniture, buildings, different
types of laboratories and qualified and competent academic staff, who can
be paid as per the demand, there is a need for privatization.

VI. Rapid growth of school education:

Growing number of schools naturally pushed the demand higher education

which the 204 government is not able to provide, therefore demand for
privatization of higher education is the need of the hour.

VII. Fulfilling the need for skilled manpower:

There is very little initiative from the public sector due to limited freedom.
Private institutions are free to initiate modern and advanced courses in order
to fulfill the demand for subjects which facilitate economic development of
the nation. The demands of the market and the times can be fulfilled. For this
privatization is needed.

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e) Merits/Advantages of education Privatization:

Privatization will enhance:

 Decentralization and DE bureaucratization of educational institutions.

 Initiatives in educational reforms.

 Innovativeness in teaching and evaluation.

 Tailor made services and provision of wide choice of courses and

subjects to students.

 Competition.

 Quality education and training.

 Shaping of the curriculum according to global, national and local needs.

 Availability and better maintenance of resources transparency in all

procedures.

 Fulfill the need of the country in liberalization, privatization, and

globalization.

 Utility of human and physical resources in proper way.

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f)Demerits of Privatization
1. Quality assurance is not guaranteed through privatization.

2. Accountability in education becomes a question mark due to privatization.

3. Intercultural and inter social changes may take place which may not be easily
acceptable by Indian minds.

4. The public sector institutions at higher level have much better record of responding
to the societal needs of SC/STs and other backward sections of the society than the
private sector institutions.

5. There may not be any limitation in the fee structure and the fee structure may be
depending upon the richness of the institution.

6. With respect to the faculty selection, the private institution may acquire the right to
hire and fire both the academic staff. The same is case for the starting and stopping a
course.

7. Autonomy of students and teachers, teaching learning freedom and the democratic
set up may not exist.

8. Privatization may lead to more autonomy of institutions. The degree of acceptance of

the Degrees obtained from these institutions is unknown by the job market or industry
and institutions of higher learning. These institutions may not go for compulsory
assessment and accreditation of national boards.

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g)Fears in Privatization of education:

 Will badly affect the poor

 Undermine equity, diversity and openness

 Does not address issues of equality, fairness and responsibility

 Exorbitant fees will deprive many of availing education

 Accountability problem will arise 206

 Courses in humanities and social sciences will be sidelined due to no

economic gain

 Civic and democratic values may not get passed down

 Apprehensions about job security and retrenchment of staff

 Cost saving will lead cost cutting

 Collected funds may be misused by the owners

 Favoritism towards family members and friends

 Benefits remain un proven

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f)Causesof Privatization
The major causes of privatization of education include the following:

1. The expansion and establishment of education institution is increasingly high and the
same has been shouldered mainly by the state. A stage has now come when the state is
finding it very difficult to meet the democratic aspirations of the people for further
expansion of education system due to paucity of resources. It is therefore felt that the
private sector be inducted in education so that it can share the burdens in funding
education.

2. Knowledge explosion is taking place in the world and underdeveloped economies

must keep pace with this knowledge explosion. Education or knowledge industry is
becoming the key factor in the process of development. This being so education is no
longer viewed as a social service rather it is considered as a necessary economic input.
In this effort the private sector is also considered to play its part since it is a major
beneficiary of the knowledge industry.

3. The world is passing through fourth industrial revolution. This consists of information
technology, bio-technology, nano-technology, robotics, application of lasers and new
industrial materials. The growth of satellite TV has further strengthened information –

Revolution in the world along with development in computer technology. These

technological developments have increased the requirements of educated and technical
manpower at a much higher level. Since the public sector due to limitedness of
resources allocated to education cannot meet the needs of industry and other sectors of
the economy, it is vital that private sector is initiated in the programmes of skilled
manpower to take advantage of growing technologies.

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4. Privatization can respond to market signals or market demand for labour in the more
efficient and prompt manner than the public sector, which finds it very difficult to
introduce flexibility in operations of human resource development.

5. Over years, the public sector has failed to generate resources from the recipients of
education, it has become more or less free public good and this has devalued the
education in the eyes of recipients. Privatization may lead to changing for the service
provided which is likely to generate great responsibility among the recipients of
education. This results in greater efficiency in teaching learning and improvement in its
quality.

6. Privatization by generating more resources from students’ fees will help to reduce
fiscal burdens of the government.

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I )Conclusion

Whether we accept privatization or not is not a question. Rather, it is good for the
nation to experiment privatization in a rational and judicious way for a selected period
of time in selected areas and resources. But it is not advisable to keep away ourselves
from the process of privatization. When there are good role models of developed
nations, having become developed nations because of privatization. To put it in a nut
shell privatization is inevitable in this world of new industrial and technological
revolution and to meet the growing needs of human power.

Privatization of education can help India to gain higher competitive Advantage in

education sector. There can be some manipulations but can be managed by proper rules
and regulation by government. There are always pros and cons but we can over cum by
involving government and private sectors effectively

The private initiative in education, especially higher education is not new to India. Some
of the leadinguniversities like Banaras Hindu University and Aligarh Muslim University
came up with the efforts,

Dedication and financial support of community and since 1990’s; trend towards
privatization has been on

a large scale. Providing free and compulsory education to all is a basic duty of
government and it cannot be neglected. So government has to invest more and more
funds in development of primary education. Hague cut in expenditure on higher
education by government is the direct outcome. But it doesn’t meanthat higher
education is not important. Government cannot absolve its responsibility of regulating
privateinstitutes. So, some regulating agencies have to be formed which assure quality
and transparency and prevent profiteering. There is an emergence need to regulate
quality but not growth of supply. There is also a fact that private investors would not run
an institute a loss.

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 If a private sector educational institute cannot at least recover its costs, it would be
closed down. At the least, private institutions must be allowed to be commercial i.e.
they must be allowed to break-even or make a small fair profit. If theyare allowed to do
so transparently, there would be no need to disguise their profit and the institute will
not compromise with quality. To ensure access to higher education by weaker section of
society, government has to increase public expenditure on higher education. On the
whole, an improvement in the standards of educationcould be achieved through a
balanced relationship between public and private sector. Although there are many
drawbacks of privatization of higher education, it is sure to improve the present
educational system.

j)Recommendations:
Recommendations Some Quotas can be ensured by the private schools, so
that there is no discrimination. There can also be public- private schools.
There should be effective regulatory body to monitor. Affordability and
accessibility should be maintained.

Thanks

Niaz Sahil

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References:

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Perspectives in Education Vol. 17, 2001.

3. Hallak, Jacques “Globalization and its Impact on Education.” In Mebrahtu.T Crossley.

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4. Harvey, David (1996) Justice, Nature, and the Geography of Difference (Oxford, UK:
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5. Held, David, McGrew, Anthony, Goldblatt, David, and Perraton, Jonathan (1999),
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6. Scholte, Jan Art (19960 “Beyond the Buzzword: Towards a Critical Theory of
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(accessed on 27.08.2004)

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