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State Primacy over Private Sector

(Summary by Prachayani Praphamontripong)

PROPHE Summary

The Indian government has re-asserted that the private sector can play a vital role only in supplementing the government's efforts in higher education provision, never replacing the State's role. Thus it is the State that must lead reform, including reform necessitated by a globalization including a 50% rise since 1990 in Indian students going aboard for education and forcing India toward the General Agreement on Trade in Services (GATS) for education. Opponents of signing the GATS for education point to India's low education quality, concentrated less on "public good" than on profit. Therefore, State-led domestic reform is a perquisite to appropriate partnership or competition with private or foreign universities, so the government needs to strengthen its role as regulator, provider, and facilitator if legitimate privatization of education is in the offing.

For the full story, see The Hindu Business Line, January 2005. "Private sector cannot replace role of States in higher education," by the Bureau.

 

PROPHE Observation
As prior PROPHE News Summaries on India have shown, there is great concern over excess privatization and profit-oriented marketization in higher education. The idea of the State at the core of designing and running a higher education remains strong in India. But the idea and evolving practice clash. Practical realities include how new private higher education may fit the new economy and aspirations and choices by a variety of stakeholders, most notably students and employers.
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