This document discusses privatizing education. It outlines reasons for and against privatization, including failures of state education systems and the potential for private systems to be more efficient, innovative, and cost-effective through investment and economies of scale. An example is given of NIIT, a private Indian company that provides computer training and has expanded globally through research and development. Key questions are raised about whether private education virtues could be replicated in state systems and accessed by more students. Public-private partnerships are proposed as a potential solution that could address breakdowns seen in some public school systems.

1. Privatising
Education
Janardan Mishra
IGNOU B ED Trainee
Radhanath IASE, Cuttack
Government vs Private

2. 2
The Concept
 Increasing role for private sector in educational :

provision

funding and/or

regulation
15/05/12

3. 3
Why privatisation?
 Negative reasons
 failures of state education
 inequity of state provision
 Positive reasons
 Efficiency and cost-effectiveness
 Investment
 Innovation
 Self-help and community self-help
 Freedom/liberty

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Why Privatisation? Innovation
and investment
Education companies are emerging, with chains of
schools and universities, which:
 benefit from economies of scale – can find finance
from financial institutions; can fund student loan
programmes
 invest in research and development – implications
for financial efficiency and educational effectiveness
 Potential to solve the ‘information problem’ through
brand names

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Why privatisation? Innovation
and investment
Entrepreneurs in developed
and developing countries
have created educational
opportunities which are:
 Profitable
 Financed entirely from
student fee income
 Cater for mass markets, not
just the elite

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NIIT, India
1979 computer training
company
Now has 1,000 franchised
centres in India and has
expanded into 25
countries worldwide
Emphasis on R&D and
quality control
Student loan scheme with
Citibank

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NIIT R&D
 The ‘hole in the wall’ programme
 Challenges the notion of what a teacher
is…
 Is it commercially viable?

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Key questions
 Can the virtues of private education be
replicated in the state sector?
 Can access to the virtues of private
education be extended to those
currently within the state sector?

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Solution to Privatisation
 Public-Private Partnerships (PPP)

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Why? Breakdown in public
schools
 ‘plain negligence: …
casesof teacherskeeping
aschool closed for months
at atime; aheadteacher
who comesto school once
aweek’
 “this pattern is not
confined to a minority of
irresponsible teachers – it
has become a way of life
in theprofession.’