Saturday, 15 March 2014

PRIVATIZATION OF EDUCATION SECTOR



1.      INTRODUCTION
Privatization is basically transferring of authority under public sector (government ownership) to private sector. So why do we need Privatization in Education sector? A well Developed and equitable system of higher education promotes quality learning as a consequences of both teaching and research, which is centre for success in the emerging economy like India. Two observations have to be made on education in India: First, education, in general, and higher education, in particular, plays a key role in the realization of India’s extraordinary potential and aspirations for economic and technological development. Secondly, precisely because of this potential and its implications for individual advancement, there is an extraordinary demand for higher education among India’s young. So, our government is responsible for providing higher education accessible to all. But Indian higher education system is facing several challenges. The challenge of global competitiveness has been added to other demanding tasks such as equity, relevance, quality, access to all in the face of a resource crunch. To cope up with these problems, the government has to resort to privatization of higher education. This essay gives an overview of state of higher education system in India and highlights the need for private sector to step up in the field of higher education. I have made a sincere effort to discuss the impacts of privatization whether it would be beneficial & harmful for the economy and society. I personally believe that privatization of higher education can be used to improve the education system.

2.      THE STATS OF THE PRESENT SYSTEM

India's education system is the world's third largest in terms of students, next to China and the United States. Unlike China, however, India has the advantage of English being the primary language of education and research. India educates approximately 11 per cent of its youth in higher education as compared to 20 per cent in China. Universities and its constituent colleges are the main institutes of education in India. As of 2012, there are 316 state Universities in India. Out of which 152 are central universities, 191 are private universities and rest are Open Universities. Distance learning is also a feature of the Indian higher education system. These stats clearly show how private institutes have become the main root in our education system.

3.      ADVANTAGES (Or The Need For The Privatization Of The Education System)

                    i.            IMPROVED EFFICIENCY: the main argument for privatization is that private institutes have a profit incentive to cut costs and be more efficient, if the management of the institute is effective in reinforcing the plans and objectives(vision and mission) of the institute then the institutes would be effective and efficient.
                 ii.            LACK OF POLITICAL INTERFERENCE: there are many instances in state govt universities where the politicians have recommended people for the award of PH.D. e.g. recently in Bangalore University, Mylarappa was in controversy for giving PH.D for an unfit non-deservable candidate.
                iii.            INCREASED COMPETITION: increase in competition among private institutes has led to increase in quality of education among them. Since there is a demand for students to join the top most institutes, the institutes will be looking to implement all the new technologies so that, the facilities and opportunities given are not available in any other institutes.

4.      DIS-ADVANTAGES (Or The Problems Associated With The Privatization Of The Education System)
                    i.            PUBLIC INTEREST: The government has put in measures of hike in student fees, student loans and privatization in justification of availability and mobilization of resources to expand higher education. These measures have made higher education a profitable business for industrialists due to which a large number of private institutions are there at present. E.g. recently in Karnataka, the govt was about to implement the provisions of 2006 act(Regulation of Admission and fixation of fee), which would have given freedom for professional colleges(engineering and management) to fix the fee which many meritorious but poor students could not have afforded.
                  ii.            PROBLEM OF REGULATING PRIVATE INSTITUTES: it is difficult for the govt to intervene in the running of a private organization; there is a need for proper regulating rules to keep the private institutes under control.
                iii.            NATURAL MONOPOLY: natural monopoly occurs when the most number of universities related to that particular subject/branch is one.

5.      CONCLUSION

The private initiative in education, especially higher education is not new to India. One of the leading universities of India, Sikkim Manipal University was the first government private initiative in that region (North Eastern Parts of India) and is now offering scholarships of 100% to students for distance education which is tremendous and very advantageous for the talented and poor students to utilize such an opportunity, if several other universities come up with similar motive then India would march ahead of US and China in quality education.
            So even though the privatization is a must for education in India, the govt’s role becomes very crucial, it has to check if the private institutes have a common public interest and the cost of education in these institutes are less. The govt has to set up proper rules for the regulation of these private institutes or 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.
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 education could 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.

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