Decentralisation and Privatisation in Education: The Role of the State

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The corporations law should also include procedures for the liquidation or dissolution of enterprises, thereby releasing the assets of insolvent state entities for sale to the private sector. Prior to the sale of certain heavy polluting enterprises, an environmental audit should be performed to determine the requirements for environmental and occupational health cleanup. This audit can be performed in accordance with existing domestic or international environmental and occupational health standards.

The Privatization Debate

Based on that audit, the seller can decide whether to absorb the costs of existing environmental degradation, while requiring the buyer to meet future environmental liabilities. Labor restructuring is commonly required before privatization to reflect the change from a government agency to a profit-oriented enterprise.

Labor laws should define the entitlement of redundant employees to severance or other benefits, while recognizing the right of the employer to reorganize the labor force to meet changing needs. Privatized enterprises are most likely to operate efficiently when they are exposed to competitive forces. A competition law is desirable to:. If the enterprise is a public utility, a regulatory regime should be created by law so that the regulator can protect the public interest in output pricing and the quality of services and support future entry by competitors. If foreign investors are expected to participate in the privatization program, the laws of the country should guarantee fair and equitable treatment to those investments according to generally acceptable international standards.

Privatization requires institutional arrangements to manage the program so as to ensure transparency and consistency in implementation. Yet the conduct of privatization transactions differs from traditional bureaucratic activities, in that:.

Scholars chart the political economy of education privatization

These factors suggest the need for a central unit or agency responsible for overall guidance of the privatization program. The agency should have a single mandate: to sell the assets and enterprises in accordance with the policy principles on which the program is based. Clear authority to control program implementation, as well as the ability to recruit quality staff and outside advisers are also vital to success.

Responsibility for managing the ongoing business activities of the enterprises prior to sale should however rest with the governing board of the enterprise. While a single central agency is the most desirable means of ensuring effective policy formulation and focussed control of the process, the preparation and implementation of individual transactions should be decentralized to the maximum possible extent.

Regional, sectoral, municipal or enterprise-specific groups can be set up to implement transactions in accordance with guidelines set by the central agency. Those groups should ideally include representatives of the major stakeholders, to improve the prospects for local commitment to the transaction, and should be assisted by investment banks, lawyers or other professional advisers as required. A primary goal of any privatization program should be to ensure that transparency is maintained in every transaction.

This can be done at two levels. First, the laws and regulations supporting the program should require the maximum publicity and openness in the workings of the privatization agencies consistent with normal requirements of commercial confidentiality. Second, individual transactions should be conducted under well-publicized competitive bidding procedures, encouraging the widest possible range of domestic and foreign investors to participate. Competitive bidding should maximize sales proceeds while maintaining public confidence in the integrity of the process.

The principal methods of privatization through competitive bidding are the sale of assets or shares through public auction or tender, and the public offering of shares through a stock exchange. Except in the case of pre-existing contractual rights such as pre-emptive options to purchase held by existing private shareholders, a direct negotiated sale to a single buyer should be avoided. Commonly, employees of an enterprise will be given a preferential right to buy a small proportion normally not more than 10 per cent of the shares of the enterprise. Payment may be deferred for a limited period, with transfer of ownership of the shares delayed until payment has been made.

Employee consortia should also be eligible to participate in the bidding process on a basis of parity with other bidders. Even within the same transaction, a variety of methods may be used: for example, sale of a tranche of shares to employees, followed by the sale of a core shareholding to a long-term investor, and finally a public offering of the balance of the shares. These schools have been notified and notices have been sent to the school authorities that any such type of malpractice would not be tolerated and the erring schools will be prosecuted as per law The Hindu September 20, These schools were totally in the hand of central government during the Soviet period MoE, Russian Federation, In most of the cases private institutions have registered their presence in the area where government institutions are either absent or limited in numbers, like institutions of management, tourism or humanities.

Even in U. But private schools in U. Consequently the private schools are 2 A type of school with strong emphasis on academic learning providing advanced secondary education, in ancient Greece Gymnasium stands for both physical and intellectual education, later on in Germany it restricted only for intellectual education and in English it restricted only for physical education. But in case of unaided schools the situation is worse as they totally dependent on the fees raised by students.

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Therefore, they raise various types of fees like, construction fees, examination fees, and maintenance fees, fees for teaching aid, sports charges, and contribution for uniform, competition, meetings and many other type fees. Many sociologists hold the view that sending children to private schools has also become a symbol of social status. In many small urban areas even middle class families who are barely above the line of poverty send their children to private schools.

Some of them are lured towards the advertisements that the children will be taught in an English medium and some of them want to show their comparatively high social standard among other neighbors. They send their children in private schools without knowledge of the quality of their teaching. The weakening of Parent Teacher Association advocated in the NEP is also a cause of the downfall of the quality in government schools.


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As per DISE report there are around BRCs and CRCs in the country but many of the burning issues like lack of classrooms, toilets, drinking water, playground, contract teachers, high pupil teacher ratio, high classroom student ratio, lack of classrooms are still to be solved. As a result there is mushrooming growth of substandard private schools. This is mainly to reach the target fixed by Millennium Development Goal of cent per cent literacy by In a regular parent teacher meeting, weekly or fortnightly parents are informed about the progress of their children.

On the basis of that report card parents also help the students on their part in homework and other required things. Those days there were strong parents teacher associations to be found in government schools. As students belong to rich family, the middle class and below poverty line all were learning in the same school. Consequently every student was benefited due to this control from parents.

But gradually the private schools increased up to In other words we can say that these additional Now the balance adversely shifted towards the students from lower and lowest strata of society getting education in government schools. Many of the parents are illiterate or semi literate and virtually ignorant about the benefit of true learning. They are just happy seeing the report card that their child passed in the annual exam. Hence they did not raise their voice for quality of education as they are quite ignorant of it.

Therefore we see that the boom in private sector in education adversely affect the government schools as more and more bright students are getting enrolled in private schools creating a vacuum of learned parents in government schools. Some educationists attempted to find out the cause of decline of quality in the government schools.

Is the lack of quality in the government schools that compels the parents to send their children in private schools looking for remedy and trapped even in worse situations? How would the government resist the growth of private schools while the government schools are themselves not fulfilling the required norms? In the same report it is further revealed that in 13 districts of Assam, all 38 districts of Bihar, 16 districts of Jharkhand, 19 districts of Gujrat, 13 districts of Madhya Pradesh, 15 districts of Maharashtra, 5 districts of Orissa, 56 districts of Uttar Pradesh, 18 districts of West Bengal the SCR is above Thus out of districts in India the CSR is still above 30 in districts.

Hence the plight of government school education system forces the parents either to send their children in any of private schools despite their low earning or decide not to send in school at all and rather send them to work as a child labourer in labour market or work as a paid or unpaid domestic child worker. The claim of Bihar government that the Central government is not providing sufficient money for the development of education in the state is not satisfactory as it gets regular central assistance in Sarva Shiksha Abhiyan. Instead of providing bicycles the classroom would have been made for the proper functioning of the class.

In most of the European countries this ratio falls between 20 and The government of Bihar claims that this problem could be solved only if Bihar were given special status. But what about other states? Is every state facing financial crunch? The educational system in India is predominantly state funded.

Reform measures suggested by international agencies and recommended by various committees appointed by the national government have explored possibilities of additional resource mobilisation to reduce the burden on the public exchequer. The s was a period of economic crisis in many developing countries. During this period many countries resorted to extensive external funding, primarily through the structural adjustment programmes.

Scholars chart the political economy of education privatization

Studies have shown that countries which received structural adjustment loans showed declining public expenditure on education Lewin ; Sanyal It was primarily due to the fact that structural adjustment necessitated a redefinition of the role of government and envisaged a reduced government intervention in all sectors, including education.

It would be more appropriate in light of current educational challenges for the GOI to resist increasing privatisation with its associated expenditure on technical assistance and creation of free and quality vocational education despite pressure from international agencies. All of these agencies play a crucial role in advancing free market ideas as the basis for development. It was nothing but the advertisement policies of commercial entities. Though these policies are based on efficiency and effectiveness, they have no concern over their devastating effect of social polarisation and inequality in the masses.

These policies includes decentralisation, privatisation, user fees, and community financing, had devastating consequences not only on the quality and capacity of these education systems, but on their wider societies, with increased social polarisation and greater levels of inequality Bonal ; Ilon India introduces these policies or so called reform measures suggested by World Bank World Bank for developing countries: i cost-recovery mechanisms include cost- sharing in the form of fees with students; ii redefining the role of the government by evolving a policy framework to make the sector more market friendly and public institutions more autonomous; and iii prioritizing investments towards quality improvement.

During this period of structural adjustments, since 's, the public expenditure declines in general and that on social sectors, including education, declines in particular. In India too, allocation of resources to education declined during the period of adjustment Tilak The reform suggested by World Bank and other international organisations was not new. Begale This theory of scientific management was later introduced in the field of education. According to this theory students were viewed as raw material to produce goods, teaching work as production process and teacher as a labourer.

Thus human being was viewed as a machine to produce maximum output. Using this market philosophy, India gave private sector a free hand in the field of education including school education. Every size of private players jumped to fill the vacuum created by government schools.

Different Forms of Decentralization

From the mega giant like Delhi Public Schools to a small urban public schools all tried to test their luck and gain something from this industry. Thus private school user fees prohibit the people below poverty line accessing the service, and also the low quality of the government schools also forced them to get admission into low fees private schools Kingdon and Muzammil Due to low expenditure in education the quality of the world's biggest school education system of India having over 14 lakhs of primary, elementary, secondary and seniors secondary government schools, decreased to an alarming state.

The situation of contractual teachers is worse.

Decentralization and Freedom

In a DISE report around Buy eBook. Buy Hardcover. Buy Softcover. FAQ Policy. About this book Decentralisation and Privatisation in Education explores the ambivalent and problematic relationship between the State, privatisation, and decentralisation in education globally. Show all. Show next xx. Read this book on SpringerLink.

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