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EDUCATION POLICY: CHOICE AND COMPETITION

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Link government grants with performance for all education institution. ... Introduce the voucher scheme (link government grants with performance) ... – PowerPoint PPT presentation

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Title: EDUCATION POLICY: CHOICE AND COMPETITION


1
EDUCATION POLICY CHOICE AND COMPETITION
  • Parth J Shah
  • President
  • Centre for Civil Society

2
Challenging the Conventional Wisdom
  • Myth 1 The poor need their children to earn/work
  • Myth 2 People are ignorant of the benefits of
    education
  •  Myth 3 People do not have money or are
    unwilling to spend on education
  •  Myth 4 Government provided primary education is
    free

3
Estimates of Child Labour (All-India rural)
4
Work Patterns of Out-of-School Children (PROBE
States)
Girls
Boys
1
5
Proportion who performed wage labor on the day
preceding the survey
5.1 hrs (4.8 hrs)
4.2 hrs (3.3 hrs)
Average time of work on the day preceding the
survey
2.2 hrs
2.1 hrs
Extra time of work, compared with children who
are attending school
Median in brackets Source PROBE survey (random
sub-sample of 333 out-of-school children in the
6-12 age group)
5
The PROBE survey
Inactive teachers were found engaged in a
variety of pastimes such as sipping tea, reading
comics or eating peanuts. Generally, teaching
activity has been reduced to a minimum, in terms
of both time and effort. And this pattern is not
confined to a minority of irresponsible teachers
it has become a way of life in the profession.

6
The PROBE survey
found that in only 53 of government schools
any teaching going on at all. plain
negligence cases of teachers keeping a school
closed for months at a time a school where the
head-teacher was drunk, a head-teacher who asks
the children to do domestic chores, including
looking after the baby several cases of teachers
sleeping at school a head-teacher who comes to
school once a week.
7
NCAER NSSO Survey, 1986-87
  • Total Household Expenditures on
  • Primary Education
  • Rs. 7388.5 million

By Rural Areas Rs. 4202.5 million
Total Government Expenditure on Primary
Education Rs. 17,000 million
8
Professor JBG Tilak
  • How Free is Free Primary Education in India?
  • Economic and Political Weekly, February 3 10,
    1996
  • Households spend large sums of money on acquiring
    primary education a sizable number of students
    do not receive primary education free, in
    contrast to the claims made by the government a
    large number of students pay tuition fee,
    examination fee and other fees even in government
    primary schools in India.

9
Proposed solutions Would they be effective?
  • Solution 1 Make elementary education compulsory
  • Solution 2 Make education a Fundamental Right
  • Solution 3 Increase government spending on
    education to 6 percent of GDP

10
Fundamental Right against Exploitation
  • Article 23 Prohibition of traffic in human
    beings and forced labourTraffic in human beings
    and beggar and other similar forms of forced
    labour are prohibited.
  •   
  • Article 24 Prohibition of employment of children
    in factoriesNo child below the age of fourteen
    years shall be employed to work in any factory or
    mine or engaged in any other hazardous
    employment.

11
Expenditures and Quality?
There is little evidence of a positive
relationship between per student expenditures and
enrolments of the students from the bottom 40
percent of family income.  
Deon Filmer and Lant Pritchett, Educational
Enrolment and Attainment in India Household
Wealth, Gender, Village and State Effects,
Journal of Educational Planning and
Administration, April 1999, p. 159 (based on the
data for 1992-93)
12
This lack of a general effect is not surprising,
as there is a huge literature that supports the
proposition that, while additional spending has
the potential to raise school quality, there is
no necessary connection between school quality
and school spending
13
Kingdon Cost per Student (Rs)
14
Kingdon Cost per achievement (Rs)
15
Kingdons conclusion
PUA schools are unambiguously and substantially
more cost-effective and internally efficient than
G and PA schools
16
The Education System
State B
State A
Characteristics
No
Yes
Elementary Education Compulsory
25
26
Share of Education in the State Budget
48
84
Fee-Free Primary Education
2
60
Free Textbooks and Stationary
3.6
2.5
Proportion of Income Spent on Primary Education
by Households in the Lowest Income Quintile
17
Educational Performance
18
Distribution of State Education Spending
19
Source of Funding andNature of Spending
20
Kerala Model of Education
Competition for the Soul (get more followers of
a religion)
21
AGENDA FOR REFORM
1. .. 2. 3. .
22
Reform 1
Abolish the license-permit raj in education
  • Allow free entry and exit to both suppliers and
    demanders of education.
  • Permit for-profit education institutions.
  • Pass private university bill.
  • Encourage edupreneurs by loans, venture capital
    funds. Do not give subsidised land.

23
Delhi School Education Act, 1973
The school must obtain Essential Certificate by
establishing that its existence serves the public
interest. The Administrator decides by taking
into account the number and categories of
recognised schools already functioning in that
locality, and general desirability of the school
with reference to the suitability and sufficiency
of the existing schools in the locality and the
probable effect on them. (my emphasis)
24
Delhi School Education Act, 1973
Rule 8 Terms and Conditions of Service of
Employees of Recognised Private Schools, Clause
2 Subject to any rule that may be made in this
behalf, no employee of a recognised private
school shall be dismissed, removed or reduced in
rank nor shall his service be otherwise
terminated except with the prior approval of the
Director.
25
Delhi School Education Act, 1973
Rule 139 Admission on transfer
certificate No student who had previously
attended any recognised school shall be admitted
to any aided school unless he produces a transfer
or school leaving certificate from the school
which was last attended by him.
26
Private Schools for the Poor
Federation of Private Schools Management,
Hyderabad
  • 500 schools
  • 40 recognised, 60 unrecognised
  • School fees from Rs 50 to Rs 150 per month
  • Scholarships for poorest 15-20 of seats

27
Private Schools for the Poor?
  • Uphill struggle against govt regulation
  • Where can pupils take examinations?
  • Land requirements
  • Endowment (Rs. 50,000)
  • Teacher training requirements
  • etc.
  • etc.

28
Edison versus Government schools of school
budget
Edison Schools
Government schools
79
70
Devolved to school
7
27
Administration
6
3
Depreciation
8
0
Profit
29
Reform 2
Government institutions Autonomy and
accountability.
  • Grant autonomy to existing schools and colleges
    without reducing financial support.
  • Link government grants with performance for all
    education institution.
  • Convert departments of education from producers
    to financiers and supervisors.
  • Transfer management to local governments,
    communities, and NGOs

30
Reform 3
Syllabi, Exams,and Certification Depoliticise
and Decentralise
  • Urban and rural students have different
    educational needs local schools should decide
    syllabus and medium of instruction.
  • Teachers and schools should do evaluations.
    Common exams, on the line of SAT, can be done at
    the end of schooling.
  • Help establish independent certification,
    accreditation, and examination agencies.
    Competition among evaluating agencies is good as
    it is in among suppliers of education.

31
Reform 4
Empower students and parents. Money should follow
students, not schools.
  • Scholarships
  • Vouchers
  • Loans

32
Conclusion
  • Remove the license-permit raj (private schools
    for the poor)
  • Allow openly for-profit institutions
  • Let schools decide the syllabus and conduct
    examinations
  • Introduce the voucher scheme (link government
    grants with performance)
  • Establish independent certification agencies

33
NEW EDUCATION POLICY CHOICE AND COMPETITION
34
Potato Chip Theory of Regulation
One restriction (regulation) creates situation
that demands further restrictions, which in turn
requires more restrictions.   Once a bag of
potato chips is opened, its hard to stop at one
or a few chips.
35
Private voucher scheme USA
Private voucher scheme USA
  • Childrens Scholarship Fund (CSF)
  • 100 million foundation, underwritten by Ted
    Forstmann and John Walton.
  • Awarded 40,000 four-year partial scholarships
    to low income students to attend private schools
  • CSF received 1,250,000 applications30 times
    number of scholarships availablefrom low income
    families, all prepared to pay 1,000 per year.

36
Edison School www.edisonschools.com
  • Invests 1 million in each school
  • Pays teachers more
  • Share options for all staff, from janitors to
    principals
  • 84 of classes have statistically significant
    gains
  • High parental satisfaction 85 of parents
    highly satisfied
  • Average waiting list of 140 students nearly
    10,000 nation-wide

37
USA vouchers
  • Florida A Plan (1999)
  • A school accountability plan with teeth.
  • Schools are graded A-F based on standardised
    test scores
  • Students in schools graded F for 2 out of 4
    years are given 4,000 vouchers to attend
    private schools
  • 1999134 families offered scholarships
  • 2000as many as 50 schools would qualifybut
    this led to improvements
  • Superintendent of one Tampa district said that
    all top administrators would take 5 pay cut if
    any school was given an F

.
38
Two models a global phenomenon
Contracting out public-private partnerships
(PPP)
Extending access to private education, especially
for the disadvantaged
  • Contracting out of state schools
  • Contracting out of curriculum areas/teaching,etc.
  • Vouchers
  • Tax credits
  • The state-funded private school
  • Growth of private education for low income
    families

39
Marks by School Management, Chennai(1994-95,
Higher Secondary Level)
Source P. Duraisamy and T. P. Subramanian (1999,
p. 43)
40
Chapter VI Grant-in-Aid
Categories of aid 1. Aid shall be of two
categories, (a) maintenance grant
and (b) building grant 2. Maintenance grant
shall be of two kinds, (a) recurring maintenance
grant and (b) non-recurring maintenance grant
41
Grant-in-Aid (continued)
The recurring maintenance grants are
  • staff grant
  • provident fund grant
  • pension and retirement benefit grant
  • medical benefit grant
  • benefits specified in Chapter X
  • grants for the purpose of books and journals
    which are essential for the library and
  • grants for the acquisition of essential
    equipments of the school.

42
Grant-in-Aid (continued)
Non-recurring maintenance grant shall be of the
following categories,
(a)  contingent grant (b)  rent
grant (c)  depreciation grant for
school (d)  hostel grant and depreciation hostel
grant (e)  grant for equipment, furniture, games
and sport materials and the like (f)   biennial
or triennial grants for the purchase of books for
the library and for the setting up of a book
bank.
43
Average Cost of Sending a Child to School
(Rs. / year at constant 1996-7 prices)
Primary Level
212
NSS estimate, 1986-7
318
PROBE estimate, 1996
Elementary Level
478
NCAER estimate, 1994
Excluding clothing expenses Source NSSO, 1993
NCAER, 1996 PROBE survey
44
Average cost of sending a child to a government
primary school
Teachers Estimate
274
Total Expenditure Rs 318/year
Parents Estimate
Source
PROBE survey (sub-sample of 831 children enrolled
in government primary schools)
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