WTO and Indian education sector

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This slide gives the overview of WTO/ GATS impact on Indian Educational sector

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WTO and Indian education sector

  1. 1. Sudheer (u310051)
  2. 2. WTO <ul><li>The World Trade Organization (WTO) is the only international organization dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. </li></ul>
  3. 3. Uruguay Round & service sector <ul><li>Before the WTO's Uruguay Round negotiations that began in 1986, public services such as healthcare, postal services, education, etc. were not included in international trade agreements. Most such services have traditionally been classed as domestic activities, difficult to trade across borders </li></ul><ul><li>As a result of Uruguay Round General Agreement on Trade in Services  ( GATS ) came into the force in 1996 that extend multilateral trading system in service sector. </li></ul>
  4. 4. General Agreement on Trade in Services (GATS) <ul><li>GATS covers 161 activities falling within 12 services, including education </li></ul><ul><li>Under GATS member nations have obligations of two types – General and Conditional </li></ul>
  5. 5. General obligations <ul><li>Apply automatically to all Member Countries regardless of existence of commitments made for any sector </li></ul><ul><li>Most Favoured Nation (MFN) treatment </li></ul><ul><li>transparency and establishment of administrative reviews </li></ul><ul><li>procedures and discipline </li></ul>
  6. 6. Conditional obligations <ul><li>Under conditional obligations each country has to identify, if it so wishes, sectors/sub-sectors, and modes of supply, under which it is willing to make commitments (with limitations if it so desires) relating to market access and national treatment </li></ul>
  7. 7. Education
  8. 8. Education <ul><li>Education is the formal process by which society deliberately transmit its accumulated knowledge, skills, values and custom from one generation to another. </li></ul><ul><li>Education plays a crucial role of in fostering economic growth, personal and social development, as well as reducing inequality. </li></ul>
  9. 9. Education Services
  10. 10. India education sector
  11. 17. GATS and Indian education sector <ul><li>GATS covers the educational services of all countries whose educational systems are not exclusively provided by the public sector, or those educational systems that have commercial purposes. Since total public monopolies in education are extremely rare, almost all of the world's educational systems fall under the GATS umbrella. </li></ul><ul><li>  In India, we cannot get exemption in education from the application of GATS because education at all levels, particularly at higher education level, is not entirely free </li></ul>
  12. 18. The WTO has defined trade in services in the following four forms <ul><li>Cross Border Supply- distance education, or Internet, or any type of testing service  </li></ul><ul><li>Consumption Abroad- When the students of a member country A, move to another member country B, then B is said to be exporting education service to A </li></ul><ul><li>Commercial Presence- actual presence of foreign supplier in a host country </li></ul><ul><li>Presence of Natural Persons- when foreign teachers of a member country A, move to teach in another member country B, A would be deemed to be exporting education service to B. </li></ul>
  13. 19. Mode1:Cross Border Supply <ul><li>This mode is subdivided into two section: </li></ul><ul><li>conventional distance education using print and audio-visual material </li></ul><ul><li>e-learning through the Internet. </li></ul>
  14. 20. Conventional distance education <ul><li>India has 11 open universities and 102 centers of distance education in dual-mode universities </li></ul><ul><li>The possibilities of India importing education from the developed world, through this mode, are low. </li></ul><ul><li>On the other hand, some Indian universities have recently started offering degree programmes, through the distance mode, in countries having a large Indian Diaspora.The Indira Gandhi National Open University (IGNOU) is the prime example. </li></ul>
  15. 21. e-learning <ul><li>Cross-border supply through the Internet (virtual education) has immense potential, especially in disciplines like management and trade that have strong international components </li></ul><ul><li>Some well-known training institutes based in India offer, globally, further education programmes in professional areas like computer application (software development). e.g. NIIT offers programmes in 44 countries </li></ul>
  16. 22. Mode 2:Consumption Abroad <ul><li>In 2000-2001, India sent out 54,664 students to the USA, 4578 in Australia, 4302 in UK. In contrast, India received only 7,791 students of whom 240 were from the USA </li></ul><ul><li>So GATS can be beneficial if India attract more foreign student and reduce Indian student by providing world class education in India </li></ul><ul><li>University Grants Commission(UGC) is attempting to attract international student through its Committee for the Promotion of Indian Higher Education Abroad (PIHEA). The private deemed-to-be-universities are also undertaking marketing activities to attract international students to their professional programmes. </li></ul>
  17. 23. Mode 3: Commercial Presence <ul><li>There are three model of commercial presence </li></ul><ul><li>Articulation Model </li></ul><ul><li>Campus Model </li></ul><ul><li>Franchise Model </li></ul>
  18. 24. Contd………. <ul><li>It can be reduce the number of student go abroad for education in foreign university </li></ul><ul><li>Increase the standard of education in India by imbibing international pedagogy and techniques. </li></ul><ul><li>Open the opportunity for Indian institute to spread in overseas </li></ul>
  19. 25. Mode 4: Presence of Natural Persons <ul><li>Movement of teachers and scholars from the developed world to India is at a low level. </li></ul><ul><li>However, an appreciable number of Indians take up teaching or research assignments in the developed countries, and the numbers are increasing. </li></ul><ul><li>So it increase the brain drain from India </li></ul>
  20. 26. Impact of WTO/GATS <ul><li>The entry of foreign providers, and of foreign capital, would undoubtedly tilt the balance towards the private sector </li></ul><ul><li>It will increase the standard of education in India and Indian education system will get quality education </li></ul><ul><li>India has strength in engineering and technology education so through GATS it can transform this strength into economic value by setting up of tie-ups, joint ventures, collaborative research, and commercial presence in abroad </li></ul>
  21. 27. Contd… <ul><li>GATS will improve the curricula of Indian education that is quite obsolete the curricula in Indian universities and colleges are almost 50 years old that was not changed in with change in global scenario. </li></ul><ul><li>Large-scale entry of foreign providers offering high quality education, but at a price to be paid for that high quality education </li></ul>
  22. 28. Challenges: <ul><li>How can poor student face the challenges the hike in fee structure </li></ul><ul><li>With a lot of government support India’s enrollment ratio in higher education is low so without support it will reduce further </li></ul><ul><li>With cheap education available in govt. funded schools, dropout rate is still high so GATS put negative impact on this </li></ul><ul><li>With increase in fees, affluent student have access of every kind of education so in high skilled profession quality of student will be deteriorate </li></ul><ul><li>Many talented student will deprive from the education due to high fee structure </li></ul><ul><li>How the Indian institutes compete with foreign resourceful institutes as only very few institutes in India are able to fulfill international standard </li></ul>
  23. 29. Recommendations: <ul><li>Enrollment rate can be increase and dropout can be decrease by increase in awareness so government will be in position spend more for educational awareness </li></ul><ul><li>To maintain quality of student nodal agency should fix minimum criteria for sensitive profession like medicine, aeronautic etc </li></ul><ul><li>To ensure education to poor student government should provide loan at subsidize interest rate </li></ul><ul><li>National and state level scholarship programme must be start to ensure the education to poor and needy student </li></ul><ul><li>Govt. should provide the assistance to existing university or institute so that they can develop their infrastructure at par with global standard. </li></ul><ul><li>Replicate similar model of REIM (explain in next slide) as RSBY model </li></ul>
  24. 30. REIM: Rastriya Education Inclusion Model Permission
  25. 31. Conclusion <ul><li>In long run GATS will be beneficial to Indian education system by increase in competition, the quality and standard of education in India increase and Indian institute get international standard and recognized abroad. If central and state government take appropriate action the international standard education will be accessible for poor and underprivileged students too. </li></ul>

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