Some Issues in Higher Education D Emand for It
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COMMENTARY in the supply of higher education and Some Issues in Higher Education d emand for it. The number of seats available in government-run institutions is much smaller than the number of peo- Shobhit Mahajan ple wanting them. In this environment of scarcity, other players enter the arena A huge gap in the supply of higher igher education is the fl avour of and there is a rush to start institutions to education and demand for it the season; there is scarcely a fi ll the gap, leading inevitably to an has encouraged private sector Hday when it does not feature on oversupply, as is becoming evident with the front pages of newspapers – the private engineering colleges not being participation, but a rigorous I ndian Institute of Technology (IIT) ad- able to fi ll their seats. Like any other eco- regulatory mechanism has mission fracas, the stratospheric cut-offs nomic good that is scarce, market forces to ensure high standards and announced for admission to the Univer- rush in to fi ll the gap. affordability. More alarming is sity of Delhi, the foreign education pro- Except that there is a slight hitch – it viders’ bill, and so forth. turns out that education is not a market the serious shortage of faculty in While these issues are obviously good in our country. And this is true not institutions of higher learning, important, there are some aspects of just in an ethical or moral sense, but unequal access to the institutions, the higher education scenario in India even legally. One cannot run a for-profi t the non-availability of textbooks that have not caught the imagination of educational institution in India. Educa- the mass media in ways that others tional institutions can only be estab- in Indian languages and students have. Maybe these issues have never lished either by a charitable trust or as a who are ill-equipped to handle been highlighted because of the English- Section 25 company that is formed “for the rigours of college education. speaking elite bias of newspaper and the sole purpose of promoting com- television r eporting. merce, art, science, religion, charity or One issue that has been in the news any other useful object”. Crucially, “it though is the commercialisation of higher should intend to apply its profi ts or other education – the mushrooming of private incomes only in promoting its objects”. institutes, universities, colleges and even Thus legally profi ts cannot be taken out the growth of the coaching classes in- of the company but have to be ploughed dustry, like in Kota. The numbers are back into the institution. This means no a stonishing – there were 100 private dividends or other monetary rewards to universities and 129 deemed universities the promoters of the institution. (mostly private) in India as of December Of course, that is not how the real 2011. This is a massive 36% of the total world works. Or else there would not be number of university-level institutions this proliferation of private degree-giving in the country. The number of private shops. What is done is fairly well known professional institutes is equally star- – huge under-the-table capitation fees, tling – there are more than 4,000 private over-invoicing of salaries of genuine em- institutions imparting professional edu- ployees, fake, non-existent employees cation. And the private coaching i ndustry on the rolls, over-invoicing of capital ex- has been estimated to have a turnover of penditure mostly to associated compa- more than Rs 50,000 crore, though this nies of the promoters, consultancy and number must be an underestimate given perks to the promoters, and so on. the nature of the industry. This is then broadly the scenario in Shobhit Mahajan (shobhit.mahajan@gmail. Clearly, the higher education space in the private education space. One should com) is at the department of physics and India is becoming more and more priva- hasten to add that there are some excellent astrophysics, University of Delhi. tised. The reason is obvious – a huge gap private institutions of higher learning 20 august 4, 2012 vol xlviI no 31 EPW Economic & Political Weekly COMMENTARY that maintain standards and provide high- argument is that the state should not be get enormous benefi ts from the state – quality education, especially in the pro- providing any kind of subsidy in terms of subsidised land, power, tax and duty fessional sphere. The following obser- land, power, and infrastructure. As long concessions for importing equipment, vations are not about these exceptions, as this is the case and as long as reason- and so on. In lieu of these, they are which anyway prove the rule. able regulatory requirements are en- obliged to provide cheap healthcare to The question one needs to ask is forced, and enforced well, on these insti- the poor to the extent of a certain per- whether this proliferation is necessarily tutions, there is no reason why their centage of their capacity. This, of course, bad. Interestingly, there are several growth should be curtailed. almost never happens. In the education reasons why it need not necessarily be so. An interesting parallel can be drawn sector, no direct subsidies or concessions with the healthcare sector where the are provided. However, this seems set to Compulsion, Not Choice huge growth in private institutions in change if the recommendations of the First, these institutions are not where r ecent years has almost mirrored the Narayana Murthy panel on higher edu- students go out of choice, in general. growth of private institutions of higher cation are accepted and implemented. Only when a student cannot make it to education. The correspondence can be The recommendations include provid- a government-run institute, say Delhi worked out in a pretty accurate way – ing free land on long leases, freedom U niversity, would she consider going to the mushrooming of nursing homes in from regulation of salaries and huge tax A mity or Sharda University. And this is small moffusil towns is like the huge concessions for funding. If these are im- not just because they are, on an average, number of small degree colleges that plemented, the whole argument needs of poorer quality. It is also because these one sees, for instance, in Uttar Pradesh, to be rethought. institutions are exorbitantly expensive – the medium-rung hospitals are like private Another phenomenon increasingly typically a few lakh rupees per year. professional colleges and the fi ve-star, being noticed in the health sector is lo- After years of dithering, the govern- super-speciality hospitals are like private cal brain drain – some of the best talent ment has started to regulate the fees universities. And this growth has been from prestigious government-run hospitals charged by professional institutions. because of the massive mismatch bet- is moving to private, fi ve-star medical Thus, for instance, business schools can ween demand and supply of quality hospitals. This is not going to happen only charge an amount that the state healthcare services. in any signifi cant way in the education government fi xes, based on their ex- Of course, this is not to argue that the sector in the near future. Unless foreign penditure per student. But like what hap- state should wash its hands off these universities set up shop here. That will pened when capitation fees were banned fundamental necessities. It is a fact be a total game changer – the prestige, by the Supreme Court, promoters fi nd that the government hospitals are not the money and the facilities offered by ways around regulatory constraints. capable, either in quality or quantity, these would obviously persuade the best There is a positive side to these insti- to handle the healthcare needs of a faculty to leave. tutions. Many of them run courses which large majority of the population. The Thus private institutions of higher are non-existent or rarely found in state- solution is obviously increasing the learning are not necessarily bad and run universities. A diploma in apparel reach of state-run, cheap and good- apart from a rigorous regulatory mecha- design or export management is not quality healthcare. But that is not hap- nism, not much needs to be done on this something that would necessarily be pening at a satisfactory pace. Hence the front. It is important to repeat that this is available to a student in Delhi University. huge private participation in this sector, not an argument for the state to step This in itself is not something a priori which may be one of the fastest growing back from the sector. If anything, it is an bad – an economy as varied as ours does in our economy. argument to massively increase the state need a variety of skills and if these are There is, however, a difference. presence in the higher education land- taught professionally (a big if, of course), Whereas, on an average, government- scape to bring some balance to the this is a positive aspect. After all, instead run educational institutions are of higher d emand-supply equation. of thousands of students doing a plain quality compared to private ones, this is This leads us to other related issues. vanilla undergraduate degree in human- not true of healthcare. The quality of Even assuming that the resources can be ities or commerce, if a few hundred or care provided by the state sector com- garnered for a massive increase in state- thousand end up with diplomas in leather pares poorly, across equivalent levels, funded higher education, there remain technology, apparel design and the like, when compared with that offered by the issues of human resources.