PRIVATIZATION

IN
EDUCATION
ORIGIN OF PRIVATIZATION
Ancient Greece
When governments contracted out almost
everything to the private sector
FIRST TIME USED
The Economist magazine introduced the term in the
1930s in covering Nazi German economic policy.
 PRIVATIZATION

It refers to mode of working by being

outside the control of the government. It
is the process of transferring ownership
of the public sector i.e. a government to
the private sector.
Privatization Implemented
 This policy was associated Thatcherism
initially with Margaret Thatcher's
government in the 1980s, which
privatised numerous companies,
including PUBLIC UTILITY
businesses such as British
Telecom, British Gas, and
electricity and water companies.
During the 1990s, privatisation
became a favourite policy of
governments all over the world.
PRIVATIZATION IN INDIA
In 1991, New Economic Policy
Finance minister Dr. Manmohan Singh under the
guidance of Prime Minister P.V.Narasimha Rao
CHARACTERISTICS OF
PRIVATIZATION

 Individual’s or company’s ownership

 No control of government
 Different fields
 Good alternative
PRIVATIZATION IN EDUCATION
• Initially considered as
the prime responsibility
of the state
• Numerous debates
• Joint responsibility of
both public and private
personnel
DECISIONS FAVOURING
PRIVATIZATION

 National Policy of Education, 1986

 Eighth Five Year Plan, 1992-1997
 UGC, 1995
 The World Bank, 1995
 Supreme Court Judgment, 2002
Historical Background

Situation during
1882-1902

During world
war(1939-1945)

After
independence
FACTORS RESPONSIBLE FOR THE
CHANGE

GROWING NUMBER OF
STUDENTS

INABILITY OF THE STATE

GROWING NUMBER OF STUDENTS
Year Enrollment (in million)
1950-51 0.2
1960-61 0.6
197071 2
1980-81 2.8
1990-91 4.4
2005-06 10.5
INABILITY OF THE STATE
 POOR ACCESS: 7% of youth age group 16-24 have
access to higher education, which needs to be raised
atleast 10%.
 NON PLACEMENT: 25 to 30% of the students who
pass class 12th do not find placement in higher
education.
 LOW PRIORITY:In the 1st 5 year plan , allocation to
education was 7.6%. It came down to 1.3%in 8th plan.
PROS AND CONS OF
PRIVATIZATION OF EDUCATION
EFFICIENT USE OF RESOURCES
DOMESTIC INVESTMENT
VARIETY AND SELECTION
COMMERCIALIZATION
RELIEVES GOVERNMENT’S BURDEN
SOCIO-ECONOMIC DEVELOPMENT
FINANCIAL SUPPORT
EROSION IN QUALITY
SOLUTION OF ECONOMIC
PROBLEMS
EXPANSION AND DEVELOPMENT
No doubt, there’s expansion of
infrastructure due to
Privatization but there’s lack of qualified
teachers i.e.
There’s quantitative expansion but not
qualitative one.
INCREASE IN FOREIGN DIRECT
INVESTMENT
INEQUALITY
EARNING CAPABILITIES
COSTLY
INCREASED COMPETITION
FUTURE TRENDS
INCREASING AVAILABILITY AND
ACCESSIBILITY
 Physical availability and accessibility.
 Establishment of new schools.
INCREASING EDUCATIONAL
CHOICES
Choices of courses
Media professions
Mass communication
Management course
Medical course
Engineering
QUALITY OF EDUCATION

No. of students Public schools Private schools

No. of students with 52 % 79 %

certificates of
excellence

Failures 52 % 24 %
CHANGING ENROLLMENT PATTERN
Growth in Higher Education in India

Institutions 1950 2008

Universities 30 431

Colleges 750 20677

Enrollment 263 11612

Teachers 24 % 55 %
NEW TECHNOLOGY USAGE IN
EDUCATION
PRIVATE TEACHING
CONCLUSION
 Privatization can help India to gain higher competitive
advantages in education sector.

 There can be some manipulations but can be managed

by proper rules and regulations by government.

 There’re always pros and cons that can be overcome by

involving government and private sector effectively.
THANK YOU