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S h a r d a u n i v e r s i t y Page 1
Project on Privatization of Education
S h a r d a u n i v e r s i t y Page 2
Contents
Page No:
a) …………………………………………………………Introduction 3--5
b) …………………………………………………...
S h a r d a u n i v e r s i t y Page 3
ABSTRACT
Privatization in generic terms refers to the process of transfer of owners...
S h a r d a u n i v e r s i t y Page 4
a)Introduction
Privatization of Education in India!
Since the impact of privatizati...
S h a r d a u n i v e r s i t y Page 5
Although the demand for schooling has increased among the people of all the strata ...
S h a r d a u n i v e r s i t y Page 6
However, school dropout trends do not show a similar progressive decline. Out of 40...
S h a r d a u n i v e r s i t y Page 7
b) Privatization & Concept of Privatization:
Privatization connotes a wide range of...
S h a r d a u n i v e r s i t y Page 8
d) FactorsResponsiblefor Privatization of Education (Need for Privatization)
I. Nee...
S h a r d a u n i v e r s i t y Page 9
IV. Education is an Economic good:
Education is no more being as a social service b...
S h a r d a u n i v e r s i t y Page 10
e) Merits/Advantages of education Privatization:
Privatization will enhance:
 Dec...
S h a r d a u n i v e r s i t y Page 11
f)Demerits of Privatization
1. Quality assurance is not guaranteed through privati...
S h a r d a u n i v e r s i t y Page 12
g)Fears in Privatization of education:
 Will badly affect the poor
 Undermine eq...
S h a r d a u n i v e r s i t y Page 13
f)Causesof Privatization
The major causes of privatization of education include th...
S h a r d a u n i v e r s i t y Page 14
4. Privatization can respond to market signals or marketdemand for labour in the m...
S h a r d a u n i v e r s i t y Page 15
I )Conclusion
Whether we accept privatization or not is not a question. Rather, it...
S h a r d a u n i v e r s i t y Page 16
If a private sector educational institute cannot at least recover its costs, it wo...
S h a r d a u n i v e r s i t y Page 17
References:
1. Powar, K.B. and Johar, K.L.: Private Initiatives in Higher Educatio...
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Project on Privatization of Education

  1. 1. S h a r d a u n i v e r s i t y Page 1 Project on Privatization of Education
  2. 2. S h a r d a u n i v e r s i t y Page 2 Contents Page No: a) …………………………………………………………Introduction 3--5 b) …………………………………………………………Privatisation 5 c) ………………………………………………………..Conceptof Privatisation 6 d) …………………………………………………………Education and Privatisation 6 e) ………………………………………………………….Need for Privatisation 7--8 f) ………………………………………………………….Merits of Privatisation 9 g) ………………………………………………………….Demerits of Privatization 10 h) ………………………………………………………….Fearsin Privatization of education 11 i) ………………………………………………………….Causes of Privatisation 12 __13 j) …………………………………………………………..Conclusion 14--15 k) ………………………………………………………….Recommendation 15 l) …………………………………………………..References 16
  3. 3. S h a r d a u n i v e r s i t y Page 3 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 individualsor groupsthat 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 alwayssubjected to the circumstances involved. In this paper, the aim is to understand the major advantages and disadvantages of privatization in this country.
  4. 4. S h a r d a u n i v e r s i t y Page 4 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 sharethe 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.
  5. 5. S h a r d a u n i v e r s i t y Page 5 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.
  6. 6. S h a r d a u n i v e r s i t y Page 6 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.
  7. 7. S h a r d a u n i v e r s i t y Page 7 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 curriculumof high quality. Privatization is management by private sector with total absenceof governmentintervention. Such institutions generate their own funds through higher fees, user charges and full useof 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.
  8. 8. S h a r d a u n i v e r s i t y Page 8 d) FactorsResponsiblefor 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.
  9. 9. S h a r d a u n i v e r s i t y Page 9 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.
  10. 10. S h a r d a u n i v e r s i t y Page 10 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.
  11. 11. S h a r d a u n i v e r s i t y Page 11 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.
  12. 12. S h a r d a u n i v e r s i t y Page 12 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
  13. 13. S h a r d a u n i v e r s i t y Page 13 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 systemdue to paucity of resources. Itis thereforefelt that the private sector be inducted in education so that it can sharethe burdens in funding education. 2. Knowledge explosion is taking place in the world and underdeveloped economies must keep pace with this knowledgeexplosion. Education or knowledgeindustry is becoming the key factor in the process of development. This being so education is no longer viewed as a social servicerather it is considered as a necessary economic input. In this effortthe privatesector is also considered to play its part since it is a major beneficiary of the knowledgeindustry. 3. The world is passing through fourth industrialrevolution. 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.
  14. 14. S h a r d a u n i v e r s i t y Page 14 4. Privatization can respond to market signals or marketdemand for labour in the more efficient and promptmanner than the public sector, which finds it very difficult to introduce flexibility in operations of human resourcedevelopment. 5. Over years, the public sector has failed to generate resources fromthe 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.
  15. 15. S h a r d a u n i v e r s i t y Page 15 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 somemanipulations 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 supportof 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 governmentand it cannot be neglected. So governmenthas to invest moreand more funds in development of primary education. Haguecut in expenditure on higher education by governmentis the direct outcome. But it doesn’tmeanthat higher education is not important. Governmentcannot absolveits responsibility of regulating privateinstitutes. So, someregulating agencies have to be formed which assurequality and transparency and preventprofiteering. There is an emergence need to regulate quality but not growth of supply. There is also a fact that privateinvestors would not run an institute a loss.
  16. 16. S h a r d a u n i v e r s i t y Page 16 If a private sector educational institute cannot at least recover its costs, it would be closed down. At the least, private institutions mustbe allowed to be commercial i.e. they must be allowed to break-even or make a small fair profit. If theyareallowed to do so transparently, there would be no need to disguisetheir profitand the institute will not compromisewith quality. To ensureaccess to higher education by weaker section of society, governmenthas 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 sureto improvethe 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
  17. 17. S h a r d a u n i v e r s i t y Page 17 References: 1. Powar, K.B. and Johar, K.L.: Private Initiatives in Higher Education. 2. Tilak, J.B.G.: “The Challenging Concerns in Economics of Indian Education in Perspectives in Education Vol. 17, 2001. 3. Hallak, Jacques “Globalization and its Impact on Education.” In Mebrahtu.T Crossley. M. Johnson, D, (2000). Globalization Educational Transformation and Societies in Transition (U.K.: Symposium Books). 4. Harvey, David (1996) Justice, Nature, and the Geography of Difference (Oxford, UK: Blackwell). 5. Held, David, McGrew, Anthony, Goldblatt, David, and Perraton, Jonathan (1999), Global Transformations: Politics, Economics and Culture (Stanford: Stanford university Press) 6. Scholte, Jan Art (19960 “Beyond the Buzzword: Towards a Critical Theory of Globalization,” in EleonoreKofman and Gillians Young (ed) Globalization: Theory and Practice (London: Pinter). 7. Tomlinson, John (1999), Globalization and Culture (Cambridge, UK: Polity Press) 8. Global Transformations website (maintained by David Held, Political Science, London School of Economics, and Anthony McGrew, International Relations, Southampton University) 9. The Globalization Website, maintained by Frank Lechner (Emory University) 10.http://www.bavside.sd63.bc.ca/home/rcoulson/globaled/perspecti ve. html (accessed on 27.08.2004) 11. Palamattan V.P.: Autonomy: A Structural Innovation in Higher Education in AIU University News 2 12.Kapur, J.N. in AIU University News 2 p 131.
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