Sunday, May 07, 2006

Education

I had posted this earlier, but got deleted. Hence reposting. I HATE BLOGGER :-(

Via Indian Express,

In shadow of reservations debate, India Inc steps up ,

"...... In the first major industry response to the government's call for greater private sector participation in social upliftment, the Mittal family-run Bharti Enterprises on Thursday pledged Rs 200 crore over the next few years to set up and run hundreds of primary schools across the country.... "

One of the reasons behind social disparity and relative backwardness of rural India is absence of education. This ofcourse is severe indictment of state which has failed to provide neccessary infrastructure.

From my personal experience in IIT, I have seen that given an opportunity for education many people will avail it. Many of my friends were from villages and had a very humble background.

Therefore there is a demand for education at reasonable cost and private sector can fulfill. Government can ensure fulfillment of its objectives by opening up education sector and giving enough incentives to private players.

This however doesn't make for a nice vote gathering strategy. Therefore political parties cutting through spectrum will go for measures like quota and restricting the private player.

Update :
Atanu speaketh, I agree (Do I have any other option)
In comments Frog has faulted private sector for not investing in education. I disagree, private sector invests for profit. This is how it should be. Microsoft is meant for earning money and it does this through writing software, what charity Bill Gates or the employees (Microsoft India donates heavily into charities a fact which is hardly highlighted) do is the private decision. To expect Microsoft to open primary schools is based on flawed economic and social knowledge.
When I talked about encouraging private sector. It meant opening up education sector, and provding incentives (tax breaks or subsidies) for education. To tax Microsoft or corporate sector in order to finance education is the better option.

11 comments:

froginthewell said...

Thanks for reposting this.

I certainly agree that private sector can fulfil the demands; but they don't seem to care to do so unless they get a rod up their [expletive]. If the government hadn't made such a move the private sector would have just kept quiet.

doubtinggaurav said...

Frog,

I disagree.
Prviate sector works on self interest. It will intervene in education only if it finds profit.
As a policy I agree with it.
When I said incentives to private players what I meat incentive to increase the participation and competition in education sector so that education could be made affordable.

However to assume that private sector can ensure universal education is erroneous and any such task can be accomplishes only by direct (state schools) or indirect(subsidies) interventions.

Regards

froginthewell said...

I misinterpreted your statement with regards to the way private sector can fulfil certain demands.

But I still am not convinced that self-interest will make private sector fill the gap. As I said, the industry response you quoted occured only because the private sector felt a certain blow.

However, I find Atanu's idea of using the extra money for ensuring quotas into primary education, far too compelling. I am confused.

doubtinggaurav said...

Frog,

I can only propose tentative solution.

One might be opening state schools.
Another might be providing vouchers.

Wrt. Corporate acting after state in effect coerced them.
I was not talking about altruism of corporate, I was talking about that due to participation of private players, The interest in primary education sector.

Wrt Atanu's post I think he was not proposing any quota in primary education but ensuring that those who can not afford to spend on money should be subsidized.

Regards

froginthewell said...

but ensuring that those who can not afford to spend on money should be subsidized.

That is what I meant, my use of the word "quotas" was inappropriate, I was only referring to the eventual channeling of such money into primary education to let access to underprivileged kids.

doubtinggaurav said...

Frog,

So we agree after all ;-)

Regards

froginthewell said...

Well, I only said that I find that point of view compelling too. I don't know how much the tentative solution will work, for instance is it possible for the private sector to really make profit if enough subsidies/incentives is given? Will they try to do so?

doubtinggaurav said...

Frog,

I do not know myself. May be I will know in the future.

By the way do you have a livejournal account ?

Regards

froginthewell said...

Dude, how did you figure? I am sure you found the right account, but I only have a blogroll there, no posts.

doubtinggaurav said...

Frog,

Not much, site meter statistics.

Regards

Anonymous said...

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