TERM PAPER REVIEW OF QT:-2

TOPIC:- EDUCATION PRIVATE SECTOR VS

GOVERNMENT SECTOR

SUBMITTED TO:- SUBMITTED BY:-

Mr SATINDER ASHUTOSH BASOTRA
SECTION:- R1813A
ROLL NO:- A “22”
IMPORTANCE:-

Education is the process of instruction aimed at the all round development

of boys and girls. Education dispels ignorance. It is the only wealth that

cannot be robbed. Learning includes the moral values and the improvement

of character and the methods to increase the strength of mind. So the

importance of this study will leads to more insights in education system

and will tell the current scenario of education system.

OBJECTIVE:-

1) To see the growth in education sector.

2)To see the difference in private and government education.

ARTICLES:-

1) Every 2nd student in India enrols in pvt

college
Hemali Chhapia, TNN, Jun 21, 2009, 04.41am IST

MUMBAI: Despite higher education being vital to a rapidly developing country like
India, the government's share in higher education — in terms of number of institutes
and student enrollment — has dwindled over time. Simultaneously, academics note, the
stake of profit-seeking politicians in the higher education business has risen.

In 2001, when private unaided institutes made up 42.6% of all higher education
institutes, 32.89% of Indian students studied in them. By 2006, the share of private
institutes went up to 63.21% and their student share went up to 51.53%. In other words,
every second student in India signed up with a private institute.

Globally too, the private sector has seen opportunities in higher education, but there
have been few takers in comparison to India. For instance, although there are 39.1%
private higher education institutes in China, merely 8.9% students study in them. In the
US, private universities constitute 59.4% of higher education institutes, but only 23.2%
of American students pursue their education in them.
"It does signify that higher education in these countries is predominantly a public
service," noted Ved Prakash, vice chancellor of the National University of Education
Planning and Administration (NUEPA). Academics in India have researched on how
public spending by the Union and provincial governments has fallen. In his work,
Prakash notes that between 2002 and 2006, deemed universities — or 'doomed
universities' as one academic waggishly described them — grew by a whopping 96%. In
the same time span, central and state universities grew by a modest 11% and 22%
respectively.

This unabated growth without any quality check has forced academics from Harvard
University to scrutinize this sector and note, "The rapid expansion of capitation fees
colleges came about as a result not of great middle-class pressure or demand, but rather
the entrepreneurial activities of politicians."

Even the Supreme Court recently expressed its concern about the quality of education in
private institutes and the corruption that is rampant there. Within private higher
education, the professional streams have seen the maximum growth.

Private engineering colleges, which accounted for just 15% of seats in 1960, now account
for over 85% according to data from the All-India Council for Technical Education, the
regulatory body for professional technical education. From a tiny base in 1970, medical
colleges in the private sector have grown by an eye-popping 900%. The private sector
now accounts for over 45% of medical colleges in the country.

In 2006, Sanat Kaul in his paper ‘Higher education in India: Seizing the opportunity’
highlighted instances of a single politician running more than 100 educational
institutes. "There are rampant cases of malpractice in the form of illegal charges for
allocating seats from the management quota. Income tax raids have revealed that seats
are sold for cash, and a medical seat can fetch as much as Rs 25 lakh. The black money
involved runs into thousands of millions of rupees," Kaul observes in his study funded
by the Indian Council for Research on International Economic Relations.

But none of this has elicited any action from the government. And naturally so. In their
2004 paper, ‘Indian higher education reform: From half-baked socialism to half-baked
capitalism’, Devesh Kapur and Pratap Bhanu Mehta, both fellows of Harvard College,
argued that politicians who had been sugar and liquor barons had turned to higher
education as an industry because of its high returns.

"Even as political parties rail against de jure privatization, de facto privatization

continues unabated," they noted. Kapur and Mehta acknowledged that while there was
no statistical data, "there is little doubt that a majority of private institutions have been
supported or made possible by the direct involvement of politicians."

Arun Nigavekar, former chairman of the University Grants Commission, said private
institutes have been granted recognition without a sense of responsibility. "Time and
again, the HRD ministry has failed. There is a need for a surgical process to undo certain
decisions taken by it," he said.

Echoing Nigavekar, academics say that minister for science and technology Kapil Sibal
will not only have to untangle some policies set by his predecessor, but also work to
ensure high quality in public higher education.

2)
Experience of Privatization of Education in India
By Naraginti Reddy

The experience over the last few decades has clearly shown that unlike school education,
privatization has not led to any major improvements in the standards of higher and
professional education. Yet, in the run up to the economic reforms in 1991, the IMF,
World Bank and the countries that control them have been crying hoarse over the
alleged pampering of higher education in India at the cost of school education. The fact
of the matter was that school education was already privatized to the extent that
government schools became an option only to those who cannot afford private schools
mushrooming in every street corner, even in small towns and villages. On the other
hand, in higher education and professional courses, relatively better quality teaching
and infrastructure has been available only in government colleges and universities,
while private institutions of higher education in India capitalised on fashionable courses
with minimum infrastructure.

Nevertheless, successive governments over the last two decades have only pursued a
path of privatization and deregulation of higher education, regardless of which political
party ran the government. From the Punnaiah committee on reforms in higher
education set up by the Narasimha Rao government to the Birla-Ambani committee set
up by the Vajpayee government, the only difference is in their degree of alignment to the
market forces and not in the fundamentals of their recommendations.

With the result, the last decade has witnessed many sweeping changes in higher and
professional education: For example, thousands of private colleges and institutes
offering IT courses appeared all across the country by the late 1990s and disappeared in
less than a decade, with devastating consequences for the students and teachers who
depended on them for their careers. This situation is now repeating itself in
management, biotechnology, bioinformatics and other emerging areas. No one asked
any questions about opening or closing such institutions, or bothered about whether
there were qualified teachers at all, much less worry about teacher-student ratio, floor
area ratio, class rooms, labs, libraries etc. All these regulations that existed at one time
(though not always enforced strictly as long as there were bribes to collect) have now
been deregulated or softened under the self-financing scheme of higher and professional
education adopted by the UGC in the 9th five-year plan and enthusiastically followed by
the central and state governments.
This situation reached its extreme recently in the new state of Chattisgarh, where over
150 private universities and colleges came up within a couple of years, till the scam got
exposed by a public interest litigation and the courts ordered the state government in
2004 to derecognise and close most of these universities or merge them with the
remaining recognized ones. A whole generation of students and teachers are suffering
irreparable damage to their careers due to these trends, for no fault of theirs. Even
government-funded colleges and universities in most states started many "self-
financing" courses in IT, biotechnology etc., without qualified teachers, labs or
infrastructure and charging huge fees from the students and are liberally giving them
marks and degrees to hide their inadequacies.

It is not that the other well established departments and courses in government funded
colleges and universities are doing any better. Decades of government neglect, poor
funding, frequent ban on faculty recruitment and promotions, reduction in library
budgets, lack of investments in modernization leading to obsolescence of equipment and
infrastructure, and the tendency to start new universities on political grounds without
consolidating the existing ones today threatens the entire higher education system.

Another corollary of this trend is that an educational institution recognized in a

particular state need not limit its operations to that state. This meant that universities
approved by the governments of Chattisgarh or Himachal Pradesh can set up campuses
in Delhi or Noida, where they are more likely to get students from well off families who
can afford their astronomical fees. What is more, they are not even accountable to the
local governments, since their recognition comes from a far away state. Add to this a
new culture of well-branded private educational institutions allowing franchisees at far
away locations to run their courses, without being responsible to the students or
teachers in any other way. This is increasingly becoming a trend with foreign
universities, especially among those who do not want to set up their own shop here, but
would like to benefit from the degree-purchasing power of the growing upwardly mobile
economic class of India. Soon we might see private educational institutions getting
themselves listed in the stock market and soliciting investments in the education
business on the slogan that its demand will never see the sunset.

The economics of imparting higher education are such that, barring a few courses in arts
and humanities, imparting quality education in science, technology, engineering,
medicine etc. requires huge investments in infrastructure, all of which cannot be
recovered through student fees, without making higher education inaccessible to a large
section of students. Unlike many better-known private educational institutions in
Western countries that operate in the charity mode with tuition waivers and fellowships
(which is one reason why our students go there), most private colleges and universities
in India are pursuing a profit motive. This is the basic reason for charging huge tuition
fees, apart from forced donations, capitation fees and other charges. Despite huge public
discontent, media interventions and many court cases, the governments have not been
able to regulate the fee structure and donations in these institutions. Even the courts
have only played with the terms such as payment seats, management quotas etc.,
without addressing the basic issue of fee structure.
Name:Naraginti Amareswar reddy
Father Name: N.M.Reddy
Sex: Male
Date of Birth: 10th Fed 1981
Ed Qua: M.Sc., M.Ed., research scholar in the dept. of education, sri venkateswara
university, tirupati, india
e-mail ID: amareswaran@yahoo.co.in

Article Source: http://ezinearticles.com/?expert=Naraginti_Reddy

3) More kids in private schools in

Maharashtra, TN now
Hemali Chhapia, TNN, Mar 15, 2009, 02.49am IST

MUMBAI: Even as public schools are mushrooming around the country, thanks to the
education cess that powers the UPA government's flagship Sarva Shiksha Abhiyan (SSA)
programme, the student numbers in government schools are dwindling. Fewer parents
are opting to put or keep their kids in free schools across India. This trend is
pronounced in two states-Maharashtra and Tamil Nadu-where, for the first time in
2007-08, the student population in private schools exceeded that in public schools.

The most recent data released by the Union government reveals some disquieting
truths. Between 2002-03 and 2007-08, state governments constructed and started a
total of 1.49 lakh schools across the country, and boasted increased enrolment. But the
reality was strikingly different-the student population kept dwindling in the public
institutes. Educationists note that private fee-levying English-medium schools, once
popular in urban centres, are increasingly sought after in even the most obscure corners
of the country.

Between 2002-03 and 2007-08, Maharashtra started 1,874 new public schools (primary
and upper primary). But educationist J M Abhayankar notes that the state cleared the
decks for opening an even larger number of private schools in rural areas. "There was a
time when districts merely had zilla parishad-run schools. Now, Maharashtra's
countryside has close to 6,000 private schools running at full capacity," Abhayankar
adds. Little wonder then that the total enrolment numbers in government schools fell
from 80 lakh to 77.5 lakh, while in private schools they soared from 73.5 lakh to over 79
lakh.

Equally telling is the data from Tamil Nadu, where the student numbers in private
schools have outpaced those in public institutes. Chennai-based education activist S S
Rajagopalan points out that his government has a policy of encouraging private schools
so that the state's financial commitment dips. "It's a two-pronged attack--permit private
schools to start, and reduce facilities in the government schools by not filling up
teaching posts."

The Tamil Nadu government set up 3,139 schools between 2002-03 and 2007-08 under
the SSA, but Rajagopalan observes that only "new buildings" came up. "If private
primary schools have five teachers, the government institutes have just two teachers,"
he says. Parents cottoned on and "even ordinary people living a hand-to-mouth
existence started moving their children to private schools".

At issue is what National University of Education Planning and Administration

(NUEPA) vice-chancellor Ved Prakash calls "the large-scale privatization of school
education". But the enrolment numbers for private schools available with the District
Information System for Education (DISE) are way short of the real figures, says another
NUEPA research fellow.

"Government data on the student population in private schools is way lower than in
actuality. Across India, there are tens of thousands of unrecognized private schools
which are not recorded in any government registry." Recently released government
figures reflect information that has been collected from 98% of the country's recognized
schools.

The thousands of crores of rupees collected through the education cess has indeed
funded school buildings. But educationists know the harsher truth-- imparting quality
education needs more than just money.

4) Role of the private sector in

Education
Jayanti Ghose, TNN, May 4, 2003, 06.20am IST

Education helps to increase people's awareness of opportunities and scope for

advancement. It also empowers them with the ability to seize them. Self-help is easier
for an educated person than one who is not educated.

Education empowers an individual not just with the knowledge of his/her rights but also
the capacity to keep learning.

Education has become even more important because we live in a knowledge-based

society driven by information technology. An educated population can easily catch up
and exploit the potential of the emerging opportunities for progress and economic
advancement in the globalised environment.
Most of our premier institutions of education have for long been backed/ funded by the
government (State or Central) and they are all run as not-for-profit enterprises.

The entry of the private sector in education came about initially in the context of
professional courses such as engineering, dentistry, medicine, pharmacy, etc which were
the limited professional avenues for a long time. Private entrepreneurs realised that
there was reasonable supply of such interested students who could afford the cost of
education.

The cost of setting up such institutions would be borne by a private entrepreneur or a

corporate house but could later be paid back through the fees. Sometimes, it also helped
create a pool of talent that could be absorbed by the company. Private educational
enterprises, therefore, came with social, industrial and economic pay-offs.

But private enterprise in education became even more important when the Indian
economy went through liberalisation and we realised the existence of professional
opportunities in fashion design, computers, media, jewellery design, travel and tourism,
hotel management, bioinformatics, private security, management, insurance, etc.

There were some government -backed institutions to provide the necessary training but
the supply of students far exceeded the available seats. During the eighties and nineties
private institutions seriously considered entry into the educational fold to tap the huge
demand for newer courses and created an entirely new educational vista for Indian
students.

Educational institutions funded by the government have been strictly not-for-profit

while private sector educational institutions are definitely not so.

Despite the higher cost of education at private institutions, there is enthusiasm among
potential students because traditional colleges and universities offering highly subsided
education are not always in a position for proactively updating facilities, infrastructure
or curricula.

They were able to offer limited seats and hence entry was highly competitive. Privately
funded or corporate funded educational institutions thus came to be viewed as a viable
option by students keen to get education in the desired field when they wanted it.

Economists have always been uncomfortable with the conflicting pulls between what's
good for society and the profit motive of private enterprise.

The entry of private sector in education has been on the basis of a realistic recognition of
the needs and interests of the population. It has added new dimensions and alternatives
for the education-hungry population.

Private educational enterprises offer greater variety of educational choices that match
the greater variety of educational needs and interests inherent in a radically expanded
and more heterogeneous student population.
Not just variety but modernity in course content appeals to the students craving direct
relationship between the job market and formal education. Short-term, part-time,
placement-oriented courses are a niche opportunity successfully catered to by private
institutions.

Student must however define their career goals before committing to any institution/
course. They must clarify issues like accreditation, defining content, delivery and
duration.

They must look for a definite placement programme if they are looking for direct entry
into the workplace. They must accept that private institutions are there to fulfil their
demands, but outlining those demands and ensuring the right match is their
responsibility.

Formal accreditation may not be a major concern for those contemplating self-
employment rather than regular employment. However, such individuals must find out
whether the course offers useful practical content and work-orientation.

Schooling at the new private institutions offers a larger variety of curricula including
British and American educational systems and a wide range of personality development
activities. Parent and students must be the best judge of whether this matches their
long-term objectives or not.

Private institutions are popular for providing alternate or non-conventional educational

avenues. To make it beneficial for yourself, be clear about your objectives and
expectations of pursuing such education.

Private sector involvement has undoubtedly helped to raise the general level and variety
of educational opportunities. It has helped many students to tap rapidly emerging and
evolving local as well as global career opportunities.

There is the possibility of disturbing the educational balance by focusing on high-end

technologies or specific industry demands for short-term gains. This would seriously
inhibit possibilities of long-term success for private institutes, so it is to be hoped that
they would avoid this trap.

There appears to be scope for public-private partnership in education for more effective
utilisation and management of funds invested in premier government institutions and
upgradation of technologies to deliver newer programmes and improved quality of
service

5) Privatization of Professional Education in

India
 Source: http://www.articlesbase.com/college-and-university-
articles/privatization-of-professional-education-in-india-522208.html

HIGHER AND PROFESSIONAL EDUCATION IN INDIA

Higher education in India is gasping for breath, at a time when India is aiming to be an
important player in the emerging knowledge economy. With about 300 universities and
deemed universities, over 15,000 colleges and hundreds of national and regional
research institutes, Indian higher education and research sector is the third largest in
the world, in terms of the number of students it caters to.
However, not a single Indian university finds even a mention in a recent
international ranking of the top 200 universities of the world, except an IIT Kharagpur
ranked at 41, whereas there were three universities each from China, Hong Kong and
South Korea and one from Taiwan.
On the other hand, it is also true that there is no company or institute in the world that
has not benefited by graduates, post-graduates or Ph.D.s from India be it NASA, IBM,
Microsoft, Intel, Bell, Sun, Harvard, MIT, Caltech, Cambridge or Oxford, and not all
those students are products of our IITs, IIMs, IISc/TIFR or central universities, which
cater to barely one per cent of the Indian student population. This is not to suggest that
we should pat our backs for the achievements of our students abroad, but to point out
that Indian higher educational institutions have not been able to achieve the same status
for themselves as their students seem to achieve elsewhere with their education from
here.
While many reasons can be cited for this situation, they all boil down to decades of
feudally managed, colonially modelled institutions run with inadequate funding and
excessive political interference. Only about 10 per cent of the total student population
enters higher education in India, as compared to over 15 per cent in China and 50 per
cent in the major industrialised countries. Higher education is largely funded by the
state and central governments so far, but the situation is changing fast. Barring a few
newly established private universities, the government funds most of the universities,
whereas at the college level, the balance is increasingly being reversed.
THE PRIVATISATION EXPERIENCE
The experience over the last few decades has clearly shown that unlike school education,
privatisation has not led to any major improvements in the standards of higher and
professional education. Yet, in the run up to the economic reforms in 1991, the IMF,
World Bank and the countries that control them have been crying hoarse over the
alleged pampering of higher education in India at the cost of school education. The fact
of the matter was that school education was already privatised to the extent that
government schools became an option only to those who cannot afford private schools
mushrooming in every street corner, even in small towns and villages. On the other
hand, in higher education and professional courses, relatively better quality teaching
and infrastructure has been available only in government colleges and universities,
while private institutions of higher education in India capitalised on fashionable courses
with minimum infrastructure.
Nevertheless, successive governments over the last two decades have only pursued a
path of privatisation and deregulation of higher education, regardless of which political
party ran the government. From the Punnaiah committee on reforms in higher
education set up by the Narasimha Rao government to the Birla-Ambani committee set
up by the Vajpayee government, the only difference is in their degree of alignment to the
market forces and not in the fundamentals of their recommendations.
With the result, the last decade has witnessed many sweeping changes in higher and
professional education: For example, thousands of private colleges and institutes
offering IT courses appeared all across the country by the late 1990s and disappeared in
less than a decade, with devastating consequences for the students and teachers who
depended on them for their careers. This situation is now repeating itself in
management, biotechnology, bioinformatics and other emerging areas. No one asked
any questions about opening or closing such institutions, or bothered about whether
there were qualified teachers at all, much less worry about teacher-student ratio, floor
area ratio, class rooms, labs, libraries etc. All these regulations that existed at one time
(though not always enforced strictly as long as there were bribes to collect) have now
been deregulated or softened under the self-financing scheme of higher and professional
education adopted by the UGC in the 9th five-year plan and enthusiastically followed by
the central and state governments.
This situation reached its extreme recently in the new state of Chattisgarh, where over
150 private universities and colleges came up within a couple of years, till the scam got
exposed by a public interest litigation and the courts ordered the state government in
2004 to derecognise and close most of these universities or merge them with the
remaining recognized ones. A whole generation of students and teachers are suffering
irreparable damage to their careers due to these trends, for no fault of theirs. Even
government-funded colleges and universities in most states started many "self-
financing" courses in IT, biotechnology etc., without qualified teachers, labs or
infrastructure and charging huge fees from the students and are liberally giving them
marks and degrees to hide their inadequacies.
It is not that the other well established departments and courses in government funded
colleges and universities are doing any better. Decades of government neglect, poor
funding, frequent ban on faculty recruitments and promotions, reduction in library
budgets, lack of investments in modernization leading to obsolescence of equipment and
infrastructure, and the tendency to start new universities on political grounds without
consolidating the existing ones today threatens the entire higher education system.
Another corollary of this trend is that an educational institution recognized in a
particular state need not limit its operations to that state. This meant that universities
approved by the governments of Chattisgarh or Himachal Pradesh can set up campuses
in Delhi or Noida, where they are more likely to get students from well off families who
can afford their astronomical fees. What is more, they are not even accountable to the
local governments, since their recognition comes from a far away state. Add to this a
new culture of well-branded private educational institutions allowing franchisees at far
away locations to run their courses, without being responsible to the students or
teachers in any other way. This is increasingly becoming a trend with foreign
universities, especially among those who do not want to set up their own shop here, but
would like to benefit from the degree-purchasing power of the growing upwardly mobile
economic class of India. Soon we might see private educational institutions getting
themselves listed in the stock market and soliciting investments in the education
business on the slogan that its demand will never see the sunset.
The economics of imparting higher education are such that, barring a few courses in arts
and humanities, imparting quality education in science, technology, engineering,
medicine etc. requires huge investments in infrastructure, all of which cannot be
recovered through student fees, without making higher education inaccessible to a large
section of students. Unlike many better-known private educational institutions in
Western countries that operate in the charity mode with tuition waivers and fellowships
(which is one reason why our students go there), most private colleges and universities
in India are pursuing a profit motive. This is the basic reason for charging huge tuition
fees, apart from forced donations, capitation fees and other charges. Despite huge public
discontent, media interventions and many court cases, the governments have not been
able to regulate the fee structure and donations in these institutions. Even the courts
have only played with the terms such as payment seats, management quotas etc.,
without addressing the basic issue of fee structure.
PRIVATIZATION OF TEACHER EDUCATION
“The destiny of India is now being shaped in her class rooms”. This is the opening
sentence of the Kothari Education Commission report (1964-66). What kind of destiny
has been actually shaped during the last sixty years? There are thousands of schools
without primary needs. The position of teacher’s economic condition is also poor when
compared to USA teachers. Majority of teacher educational institutions are under the
control of private sector. The main aim of private organizations is to get profit.
It is not only students but also teachers who are at the receiving end of the ongoing
transformation in higher and professional education. The nation today witnesses the
declining popularity of teaching as a profession, not only among the students that we
produce, but also among parents, scientists, society and the government. The teaching
profession today attracts only those who have missed all other "better" opportunities in
life, and is increasingly mired in bureaucratic controls and anti-education concepts such
as "hours" of teaching "load", "paid-by-the-hour", "contractual" teachers etc. With
privatisation reducing education to a commodity, teachers are reduced to tutors and
teaching is reduced to coaching. The consumerist boom and the growing salary
differentials between teachers and other professionals and the value systems of the
emerging free market economy have made teaching one of the least attractive
professions that demands more work for less pay. Yet, the society expects teachers not
only to be inspired but also to do an inspiring job!
PRESENT STATUS OF TEACHER EDUCATION
Permission is granted by the NCTE regional centres to number of teacher
education institutions/colleges especially in the private unaided sector. Take for
example, in Andhra Pradesh, there are more than 300 B.Ed Colleges in the private
unaided sector and there are less than 20 B.Ed colleges in Government and aided sector.
Is there any kind of supervision either by the university authorities or by the
government officials or by the officers of NCTE with regard to availability of the staff
during college days, proper attendance of the students, proper organization and running
of different programmes of B.Ed Course? It is a doubtful validity. The first and foremost
supervising authority for running B.Ed programme is the concerned University. The
concerned officials of the university have to make frequent surprise visits to the B.Ed
Colleges under its Jurisdiction. If any loopholes identified, necessary steps may be taken
for rectifying them at the earliest possible time; then only the quality of B.Ed
programmes can be improved.
In the most of the private B.Ed. colleges in the state of Andhra Pradesh, there are two or
three teaching staff only. In some of the universities, there are no selection committees
for these colleges. The managements will run the colleges according to their whims and
fancies. In majority of the situations, they are charging Rs.6000/- for a set of B.Ed.
records which cost about Rs.300/- in the market. They will pay less than Rs. 5000/- to
the teaching staff. They are collecting huge amounts from the students under the heads;
‘practical examinations’, ‘study tours’, etc. they allow less than 20% attendance students
to the examinations by collecting huge amounts from them. Some private management
resort to all types of fraud activities. Then, who will set right these things? The first and
foremost is the concerned affiliating university, then the state government and NCTE at
the regional level and national level. Honesty persons with surprise visits can make the
situation better