Sudheer (u310051)

WTO

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.

Uruguay Round & service sector 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

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.

General Agreement on Trade in Services (GATS)

GATS covers 161 activities falling within 12 services, including education

Under GATS member nations have obligations of two types – General and Conditional

General obligationsApply automatically to all Member Countries regardless

of existence of commitments made for any sector Most Favoured Nation (MFN) treatment transparency and establishment of administrative

reviews procedures and discipline

Conditional obligations

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

Education

Education

Education is the formal process by which society deliberately transmit its accumulated knowledge, skills, values and custom from one generation to another.

Education plays a crucial role of in fostering economic growth, personal and social development, as well as reducing inequality.

Education Services

India education sector

GATS and Indian education sector 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.

 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

The WTO has defined trade in services in the following four forms

Cross Border Supply- distance education, or Internet, or any type of testing service 

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

Commercial Presence- actual presence of foreign supplier in a host country

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.

Mode1:Cross Border Supply

This mode is subdivided into two section: conventional distance education using print and

audio-visual material e-learning through the Internet.

Conventional distance education India has 11 open universities and 102 centers of

distance education in dual-mode universities The possibilities of India importing education

from the developed world, through this mode, are low.

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.

e-learning Cross-border supply through the Internet (virtual

education) has immense potential, especially in disciplines like management and trade that have strong international components

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

Mode 2:Consumption Abroad 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

So GATS can be beneficial if India attract more foreign student and reduce Indian student by providing world class education in India

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.

Mode 3: Commercial Presence

There are three model of commercial presenceArticulation ModelCampus ModelFranchise Model

Contd……….It can be reduce the number of student go

abroad for education in foreign university Increase the standard of education in India

by imbibing international pedagogy and techniques.

Open the opportunity for Indian institute to spread in overseas

Mode 4: Presence of Natural Persons Movement of teachers and scholars from the

developed world to India is at a low level. However, an appreciable number of Indians take

up teaching or research assignments in the developed countries, and the numbers are increasing.

So it increase the brain drain from India

Impact of WTO/GATSThe entry of foreign providers, and of foreign

capital, would undoubtedly tilt the balance towards the private sector

It will increase the standard of education in India and Indian education system will get quality education

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

Contd… 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.

Large-scale entry of foreign providers offering high quality education, but at a price to be paid for that high quality education

Challenges: 1. How can poor student face the challenges the hike in fee

structure2. With a lot of government support India’s enrollment ratio in

higher education is low so without support it will reduce further

3. With cheap education available in govt. funded schools, dropout rate is still high so GATS put negative impact on this

4. With increase in fees, affluent student have access of every kind of education so in high skilled profession quality of student will be deteriorate

5. Many talented student will deprive from the education due to high fee structure

6. How the Indian institutes compete with foreign resourceful institutes as only very few institutes in India are able to fulfill international standard

Recommendations: 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

To maintain quality of student nodal agency should fix minimum criteria for sensitive profession like medicine, aeronautic etc

To ensure education to poor student government should provide loan at subsidize interest rate

National and state level scholarship programme must be start to ensure the education to poor and needy student

Govt. should provide the assistance to existing university or institute so that they can develop their infrastructure at par

with global standard. Replicate similar model of REIM(explain in next slide) as RSBY

model

REIM: Rastriya Education Inclusion Model

Permiss

ion

Conclusion

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.