Globalization, liberalization, and privatization have significantly impacted India's education sector. The 1991 economic crisis prompted India to embrace economic reforms promoting free trade. This included joining the GATS to liberalize trade in services like education. Reforms privatized public education institutions and allowed foreign universities to establish campuses in India. While this increased investment and standards, there are concerns about the commercialization of education reducing access and equity. The impacts of these reforms on India's education system are still debated.

1. (b) Globalization, Liberalization&
Privatization – Concept, Characteristics and
Implications
Dr Heena D Wadhwani
Associate Professor
Seva Sadan’s College of Education
Ulhasngar

2.  16885 colleges
 320 universities
 India’s private education sector have transaction
of $1.84 trillion
General Agreement Trade in Service( GATS)

3.  General Agreement Trade in Service(
GATS)
 Liberalization of Trade in services
 Education as one of the services
How it happened

4. Economic Crisis 1991
 India Faced classic account deficit
 High fiscal and Current account deficit
External borrowing to finance the
deficit
Rising debt service obligation
Rising inflation, and inadequate
exchange rate adjustment

5. In 1979
Oil Shock
Agriculture subsides pushed the deficit
In mid 1980’s
Defense expenditure
Reduction of direct taxes
Increased dependence on foreign oil
import

6. Reliance on external funds
Negligible foreign investment i,.e 0.1% of GDP
Reliance on commercial Borrowing
Financial needs were met by external assistance

8. In July 1991,India has taken a series of
measures to structure the economy and
improve the BOP position. The new
economic policy introduced changes in
several areas.
The policy have salient feature which are: -
1.Liberlisation (internal and external)
2.Extending Privatization
3.Globalisation of the economy
Which are known as “LPG”.
(liberalization privatization globalization)

10. Liberalization

11.  to fewer government regulations and
restrictions in the economy.
 to the relaxation of the previous government
restriction usually in area of social and
economic policies.
 it means it has removed the tariff ,subsidies
and other restriction on the flow of goods and
services between the countries.

12.  Removing import and export restrictions
 Allowing FDI
 Allowing Indian company to go global.
 Allowing buying and selling of goods, technologies and
services.
 Removing licenses and permits.
 Free currency conversion.
 Levy reasonable taxes.
 Liberalize labour laws
 Reduction in tariffs
 Relaxation of investment
 Greater transparency of trade policies and regulations

13. POSITIVE (Adv)
1. Generate additional funds.
2. Provide viable option for
teachers and students.
3. Reduce the possibility of
charging excessive
premium for education.
4. Indian economy to get
push forward.
5. Financial capital of the
country will remain safe.
6. Industry- oriented
graduates.
7. Technology and
communication.
NEGATIVE (Disadv)
1. Sub-standard international
institutes
2. Risk of fake institutes.
3. Corrupt practises, false
degrees.
4. Survival of local institutes
with limited resources at
stake.
5. Setback of reputed institutes.
6. A loss of jobs
7. Negative changes in
remuneration and benefits.
8. Constantly changing
supervisors and subordinates.

14. The transfer of public assets, operations
or activities to private enterprise”.

15.  transfer of ownership and/or management of an
enterprise from the public sector to the private sector
 withdrawal of the state from an industry or sector
partially or fully.
 is opening up of an industry that has been reserved
for public sector to the private sector.
 replacing government monopolies with the
competitive pressures of the marketplace to
encourage efficiency, quality and innovation in the
delivery of goods and services.

16.  Shift in Policy- Article 45- Free and
compulsory education (14 years)
 Mass approach to higher education
 Technological Developments
 Greater Efficiency and Quality in teaching
 Increasing demand for enlightened work-force
 Economic Compulsions
◦ Competitive market scenario
◦ “Education for Globalization”

17. Positive (adv)
1. Overall efficiency.
2. Private Sector more
responsible.
3. Mutual benefits.
4. Earning capacity of the
receiver.
5. Financial burden of the
government.
Negative (disadv)
1. Commercialization of
Education.
2. Quality and Standards of
Education may suffer.
3. Equality of educational
opportunity may not be
available.
4. Neglect of ‘soft’ subjects

19.  Globalization implies integration of the economy
of the country with the rest of the world economy
and opening up of the economy for foreign direct
investment by liberalizing the rules and regulations
and by creating favorable socio-economic and
political climate for global business.
 Globalization transcends socio-economic and
political barriers that the countries of the world are
prone to build around themselves
19

20.  The growing economic interdependence of countries
worldwide through increasing volume and variety of
cross border transaction in goods and services and of
international capital cash flows, and through the more
rapid and widespread diffusion of technology.”
 It is not only a process “integrating just economy, but
culture, technology and governance. It is giving rise to
new markets, foreign exchange and capital markets
linked globally, new tools, internet links, cellular
phones, media network, new actors

21.  Opening and planning to expand business throughout the
world.
 Erasing the difference between domestic market and
foreign market.
 Buying and selling goods and services from/to any
countries in the world.
 Locating the production and other physical facilities on a
consideration of the global business dynamics ,irrespective
of national consideration.

22. Positive (Adv)
 Increase in trade in goods
and services
 New opportunities for
growth
 Financial Markets
 Foreign Market Capital
 Impact on Poverty
 Increase in level of
Interdependence and
competitiveness
 Domestic firms to improve
technology
Negative (Disadv)
 Loss of domestic industries
and business
 Exploits Human resource
 Widening gap between rich
and poor
 Transfer of natural
resources
 Commercial exploitation
 Take over of National firms
 Traditional crafts and
industries
 Brings Instability
 Adverse effects on
Environment.

23. Modes of Exchange
in services
 Mode 1: Cross border
delivery: i.e. Education via
internet, distance education,
tele – education, open
learning, online courses etc.
 Mode 2 : Consumption
abroad : movement of
students from one country
to another for higher
education. STUDENT MOVES

24.  Mode 3: Commercial presence :
Establishment of local branch
campuses or subsidiaries by
foreign universities in other
countries, course offerings by
domestic private colleges
leading to degrees at foreign
universities, twinning
arrangements, franchising.
INSTITUTION MOVES
 Mode 4 : Movement of natural
persons : temporary movement
of teachers, lecturers, and
education personnel to provide
education services. TEACHER
MOVES

25. LPG : ON EDUCATION

26.  Disinvestment of government share from universities,
colleges and schools.
 Entry of Multi- National Corporations(MNCs) and
Foreign Direct Investment (FDI) in the Universities,
colleges and schools.
 Multi-national collaborated offering of courses /
programmes.
 Privatization of schools, colleges and universities
 Structural and functional changes in universities,
colleges and schools.

27.  Amendments to the legal framework
governing universities, colleges and schools
 Raising the quality of universities, colleges
and schools to international standards.
 Export and Import (Exim) of Higher
Education.
 Continuous changes in the higher education
sector in tune with WTO, WB, IMF policies.
 Upward revision of fees on the basis of
economic calculations.

28.  The problem of meritocracy vs. moneycracy.
 Generation of internal resources to meet the
expenses.
 Frequent changes in the curriculum in
accordance with global trends
 Consideration of education as a non-merit
good and discontinuation of government
subsidies.
 Creation of intellectual properties and
obtaining patents.

29.  Extensive use of information and
communication technology.
 Incurring of capitation / donation for
admissions in the form of enhanced (Self-
financing) fees.
 Marketing of courses / programmes /
wisdom of the faculty members
 Frequent exchange of teachers and
students between countries

31.  Concern that “the socio-economic implications of
opening the education system globally and making
education service for profit needs to be carefully
examined
 Global competition, full or profit cost pricing of
education has several socio-cultural implications and
may adversely affect the Constitutional obligations of
equity.”
 Commercialization of higher education can have
adverse implications, both in terms of access and
equity.

32.  Commodification of education,
research and knowledge will not
serve the long range interests of the
nation. It could lead to truncated
growth and lop sided development of
higher education.
 The NIEPA seminar recommended
that “commercialization needs to
be controlled.”

33.  https://vijendersharma.wordpress.com/2008/12
/06/gats-and-higher-education-in-india-
implications-and-concerns/
 http://www.ijstr.org/final-
print/aug2013/Globalisation-And-School-
Education-In-India-Some-Data-Gaps.pdf
 https://www.academia.edu/8121043/Privatizatio
n_and_Globalization_of_Higher_Education_in_Indi
a_in_the_era_of_Economic_Reforms
 Nushad Husain : Contemporary India and
Education ,Shipra Publication
 Lubna Mansuri: Contemporary India and
Education ,Himalaya Publishing House