PRIVATIZATION

IN

EDUCATION

ORIGIN OF PRIVATIZATION

Ancient GreeceWhen governments contracted out almost everything to the private sector

FIRST TIME USEDThe Economist magazine introduced the term in the

1930s in covering Nazi German economic policy.

PRIVATIZATION

It refers to mode of working by beingoutside the control of the government. Itis the process of transferring ownershipof the public sector i.e. a government tothe private sector.

Privatization Implemented

This policy was associated initially with Margaret Thatcher's government in the 1980s, which privatised numerous companies, including PUBLIC UTILITY businesses such as British Telecom, British Gas, and electricity and water companies. During the 1990s, privatisation became a favourite policy of governments all over the world.

Thatcherism

PRIVATIZATION IN INDIAIn 1991, New Economic Policy

Finance minister Dr. Manmohan Singh under the guidance of Prime Minister P.V.Narasimha Rao

CHARACTERISTICS OF PRIVATIZATION

Individual’s or company’s ownership

No control of government

Different fields

Good alternative

PRIVATIZATION IN EDUCATION

• Initially considered asthe prime responsibilityof the state• Numerous debates• Joint responsibility ofboth public and privatepersonnel

DECISIONS FAVOURING PRIVATIZATION

National Policy of Education, 1986

Eighth Five Year Plan, 1992-1997

UGC, 1995

The World Bank, 1995

Supreme Court Judgment, 2002

Historical Background

Situation during 1882-1902

During world war(1939-1945)

After independence

FACTORS RESPONSIBLE FOR THE CHANGE

GROWING NUMBER OF STUDENTS

INABILITY OF THE STATE

GROWING NUMBER OF STUDENTS

Year Enrollment (in million)

1950-51 0.2

1960-61 0.6

197071 2

1980-81 2.8

1990-91 4.4

2005-06 10.5

INABILITY OF THE STATE

POOR ACCESS: 7% of youth age group 16-24 have

access to higher education, which needs to be raised

atleast 10%.

NON PLACEMENT: 25 to 30% of the students who

pass class 12th do not find placement in higher

education.

LOW PRIORITY:In the 1st 5 year plan , allocation to

education was 7.6%. It came down to 1.3%in 8th plan.

PROS AND CONS OF PRIVATIZATION OF EDUCATION

EFFICIENT USE OF RESOURCES

DOMESTIC INVESTMENT

VARIETY AND SELECTION

COMMERCIALIZATION

RELIEVES GOVERNMENT’S BURDEN

SOCIO-ECONOMIC DEVELOPMENT

FINANCIAL SUPPORT

EROSION IN QUALITY

SOLUTION OF ECONOMIC PROBLEMS

EXPANSION AND DEVELOPMENT

No doubt, there’s expansion of infrastructure due toPrivatization but there’s lack of qualified teachers i.e. There’s quantitative expansion but not qualitative one.

INCREASE IN FOREIGN DIRECT INVESTMENT

INEQUALITY

EARNING CAPABILITIES

COSTLY

INCREASED COMPETITION

FUTURE TRENDS

INCREASING AVAILABILITY AND ACCESSIBILITY Physical availability and accessibility.

Establishment of new schools.

INCREASING EDUCATIONAL CHOICES

Choices of coursesMedia professions

Mass communication

Management course

Medical course

Engineering

QUALITY OF EDUCATION

No. of students Public schools Private schools

No. of students with certificates of excellence

52 % 79 %

Failures 52 % 24 %

CHANGING ENROLLMENT PATTERNGrowth in Higher Education in India

Institutions 1950 2008

Universities 30 431

Colleges 750 20677

Enrollment 263 11612

Teachers 24 % 55 %

NEW TECHNOLOGY USAGE IN EDUCATION

PRIVATE TEACHING

CONCLUSION

Privatization can help India to gain higher competitive advantages in education sector.

There can be some manipulations but can be managed by proper rules and regulations by government.

There’re always pros and cons that can be overcome by involving government and private sector effectively.

THANK YOU