edu policy ch competition

7/27/2019 Edu Policy Ch Competition

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EDUCATION POLICY:CHOICE AND COMPETITION

Parth J ShahPresident

Centre for Civil Society


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Challenging the ConventionalWisdom

Myth 1: The poor need their children toearn/work

Myth 2: People are ignorant of thebenefits of education

Myth 3: People do not have money or areunwilling to spend on education

Myth 4: Government provided primary

education is free


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Female Male

Census of India

19818.8 10

National SampleSurvey 1993 7.8 6.9

NCAER Survey,

1994 3.5 4.4

Proportion (%) of children aged 5-14

who are in the workforce

Estimates of Child Labour(All-India rural)


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Work Patterns of Out-of-SchoolChildren (PROBE States)

2.2 hrs2.1 hrsExtra time of work, compared withchildren who are attending school

5.1 hrs(4.8hrs)

4.2 hrs(3.3hrs)

Average time of work on the daypreceding the survey*

1%5%Proportion who performed wage

labor on the day preceding thesurvey

GirlsBoys

* Median in bracketsSource: PROBE survey (random sub-sample of 333 out-of-school

children in the 6-12 age group)


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The PROBE survey

Inactive teachers were found engaged in avariety of pastimes such as sipping tea,

reading comics or eating peanuts.Generally, teaching activity has beenreduced to a minimum, in terms of bothtime and effort. And this pattern is not

confined to a minority of irresponsibleteachers it has become a way of life in theprofession.


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The PROBE survey

found that in only 53% of governmentschools any teaching going on at all. plain negligence: cases of teachers

keeping a school closed for months at atime; a school where the head-teacherwas drunk, a head-teacher who asks thechildren to do domestic chores, including

looking after the baby; several cases ofteachers sleeping at school; a head-teacher who comes to school once a

week.


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NCAER & NSSO Survey, 1986-87

Total HouseholdExpenditures onPrimary Education

Rs. 7388.5 million

By Rural AreasRs. 4202.5 million

Total GovernmentExpenditure onPrimary Education

Rs. 17,000 million


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Professor JBG Tilak

How Free is Free Primary Education in India?Econom ic and Pol i t ical Weekly, February 3 & 10, 1996

Households spend large sums of money on acquiringprimary education; a sizable number of students donot receive primary education free, in contrast to theclaims made by the government; a large number ofstudents pay tuition fee, examination fee and otherfees even in government primary schools in India.


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Proposed solutions:Would they be effective?

Solution 1: Make elementary educationcompulsory

Solution 2: Make education a FundamentalRight

Solution 3: Increase government spendingon education to 6 percent ofGDP


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Fundamental Right againstExploitation

Article 23: Prohibition of traffic in humanbeings and forced labourTraffic in human

beings and beggarand other similar forms offorced labour are prohibited.

Article 24: Prohibition of employment of

children in factoriesNo child below the ageof fourteen years shall be employed to work inany factory or mine or engaged in any otherhazardous employment.


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There is little evidence of a positiverelationship between per student

expenditures and enrolments of the studentsfrom the bottom 40 percent of familyincome.

Deon Filmer and Lant Pritchett, Educational Enrolment andAttainment in India: Household Wealth, Gender, Village and StateEffects,Journal of Educational Planning and Administration, April1999, p. 159 (based on the data for 1992-93)

Expenditures and Quality?


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This lack of a general effect is notsurprising, as there is a huge literature that

supports the proposition that, whileadditional spending has the potential toraise school quality, there is no necessaryconnection between school quality andschool spending


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20081827

999

0

500

1000

1500

2000

2500

Cost/Student

G PA PUA

Kingdon: Cost per Student (Rs)


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Kingdon: Cost per achievement (Rs)

80

146

176

77

133

181

38

72

78

Cost per Point

Cost per

Reading Point

Cost per math

point

G PA PUA


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Kingdons conclusion

PUA schools are unambiguouslyand substantially more cost-effectiveand internally efficient than G and

PA schools


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The Education System

3.6%2.5%Proportion of Income Spent onPrimary Education by Households inthe Lowest Income Quintile

2%60%Free Textbooks and Stationary

48%84%Fee-Free Primary Education

25%26%Share of Education in the StateBudget

NoYesElementary Education Compulsory

State BState ACharacteristics


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Educational Performance

Characteristics State A State B

Literacy Rate 57% 91%

Children (age 6-14)

Never Enrolled46% 2%


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Distribution of State EducationSpending

5.4%2.3%Transport Subsidy

10%0.5%Grant of Scholarship

48%15%Free Primary Education in PrivateSchools

48%84%Free Primary Education inGovernment Schools

60%11%Proportion of Private (aided)

Primary Schools

KeralaWestBengal

Characteristics


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Source of Funding andNature of Spending

Central

University

State

UniversityPercent of Budget form the

Government90% 50%

Percent University Budget spent

on Administration41% 18%

Percent of University Budget spent

on Academic Programms33% 55%


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Kerala Model of Education

Competition for the Soul

(get more followers of a religion)


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AGENDA FOR REFORM


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Reform 1:

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, venturecapital funds. Do not give subsidised land.

Abolish the license-permit raj in education


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Delhi School Education Act, 1973

The school must obtain Essential Certificateby establishing that its existence serves the

public interest. The Administrator decides bytaking into account the number andcategories of recognised schools alreadyfunctioning in that locality, and general

desirability of the school with reference tothe suitability and sufficiency of the existingschools in the locality and the probable effecton them.(my emphasis)


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Rule 8: Terms and Conditions of Service ofEmployees of Recognised Private Schools,

Clause 2:Subject to any rule that may bemade in this behalf, no employee of arecognised private school shall be dismissed,removed or reduced in rank nor shall his

service be otherwise terminated except withthe prior approval of the Director.


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Rule 139: Admission on transfercertificate

No student who had previously attended anyrecognised school shall be admitted to anyaided school unless he produces a transfer or

school leaving certificate from the schoolwhich was last attended by him.


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Private Schools for the Poor

500 schools 40% recognised, 60% unrecognised School fees from Rs 50 to Rs 150 per

month Scholarships for poorest: 15-20% of

seats

Federation of Private Schools

Management,Hyderabad


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Private Schools for the Poor?

Uphill struggle against govt regulation

Where can pupils takeexaminations?

Land requirements

Endowment (Rs. 50,000)

Teacher trainingrequirements

etc.

etc.


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Edison versus Governmentschools % of school budget

8%0%Profit

6%3%Depreciation

7%27%Administration

79%70%Devolved toschool

Edison SchoolsGovernmentschools


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Reform 2:

Grant autonomy to existing schools and

colleges without reducing financial support. Link government grants with performance for

all education institution.

Convert departments of education fromproducers to financiers and supervisors.

Transfer management to local governments,communities, and NGOs

Government institutions: Autonomy andaccountability.


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Reform 3:

Urban and rural students have different

educational needs; local schools should decidesyllabus 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.

Syllabi, Exams,and Certification: Depoliticiseand Decentralise


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Reform 4:

Scholarships

Vouchers

Loans

Empower students and parents. Moneyshould follow students, not schools.


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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


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NEW EDUCATION POLICY:CHOICE AND COMPETITION


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Potato Chip Theory ofRegulation

One restriction (regulation) creates situationthat demands further restrictions, which in

turn requires more restrictions.

Once a bag of potato chips is opened, itshard to stop at one or a few chips.


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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 lowincome students to attend private schools

CSF received 1,250,000 applications30 times numberof scholarships availablefrom low income families,all prepared to pay $1,000 per year.

Private voucher scheme USA


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Edison School www.edisonschools.com

Invests $1 million ineach school

Pays teachers more Share options for all

staff, from janitors toprincipals

84% of classes havestatistically significantgains

High parentalsatisfaction 85% ofparents highly

satisfiedAverage waiting list of140 students nearly10,000 nation-wide
http://www.edisonschools.com/http://www.edisonschools.com/


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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 yearsare given $4,000 vouchers to attend privateschools

1999134 families offered scholarships

2000as many as 50 schools would qualifybutthis led to improvements

Superintendent of one Tampa district said that alltop administrators would take 5% pay cut ifany school was given an F

.


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Two models: a globalphenomenon

Contracting out of stateschools

Contracting out of

curriculumareas/teaching,etc.

Vouchers Tax credits The state-funded

private school Growth of private

education for lowincome families

Contracting out: public-private partnerships(PPP)

Extending access toprivate education,especially for the

disadvantaged


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Marks by School Management, Chennai(1994-95, Higher Secondary Level)

Source:P. Duraisamy and T. P. Subramanian (1999, p. 43)

English PublicPrivate

Aided

Private

Unaided

All 47 61 77

Boys 48 62 77

Girls 47 59 77Number of Students 351 602 595

Mathematics

All 49 55 76

Boys 48 52 74Girls 51 51 79

Number of Students 192 424 470


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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


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Grant-in-Aid (continued)

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 journalswhich are essential for the library; and

grants for the acquisition of essentialequipments of the school.

The recurring maintenancegrants are


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Grant-in-Aid (continued)

(a) contingent grant;

(b) rent grant;(c) depreciation grant for school;(d) hostel grant and depreciation hostel

grant;

(e) grant for equipment, furniture, gamesand sport materials and the like;

(f) biennial or triennial grants for thepurchase of books for the library and for

the setting up of a book bank.

Non-recurring maintenance grant shall beof the following categories,

Average Cost of Sending a Child to


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Average Cost of Sending a Child toSchool(Rs. / year at constant 1996-7 prices)

Elementary Level

478NCAER estimate, 1994

318PROBE estimate, 1996

212NSS estimate, 1986-7 *

Primary Level

* Excluding clothing expensesSource:NSSO, 1993; NCAER, 1996; PROBE survey


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Average cost of sending a child to agovernment primary school:

16 99 159 159 19

Fee Textbooks and Stationary

Uniform/Clothes for School Private Tutions

Travel & other Expenditures

Source: PROBE survey (sub-sample of 831 children enrolled in government

ParentsEstimate

274TeachersEstimate

Total Expenditure Rs 318/year

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