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This is an archive article published on March 31, 2010
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Opinion That new school feeling

Education,like other sectors,can only benefit from opening up to foreign investment....

indianexpress

SanjayGDhandeU

March 31, 2010 02:19 AM IST First published on: Mar 31, 2010 at 02:19 AM IST

The Indian higher education system,including technical ,professional and vocational education,is,in its present form,more than a hundred years old now. It all started when a set of institutions were started by the British Raj in Calcutta,Bombay and Madras. Soon thereafter,some more institutions were established by the Church and related organisations. Some of them continue to operate even today. It might be worth noting,thus,that Indian higher education was after all started

by Foreign Education Service Providers (FESPs) from Britain. The very fact that the language

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of instruction in most of Indian higher education is English is another pointer that Indian higher education has always been open

to foreign inputs.

An element of fierce competition was introduced to this model in the ’30s and ’40s,when some nationalist groups started their own educational institutions. These institutions were,however,passing on the same basic knowledge,if with a flavour of national-

ism: the ownership of these nationalist institutions was in the hands of trusts or individuals. The competition,as far as academics was concerned,was healthy. And among them,including the British or Church-owned FESPs of those times,the quality was uniform. The situation continued thus till the ’50s.

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Soon after Independence,there was a significant expansion in the higher education space. Due to the adoption of a socialistic model of economy and governance and because of the initiative of state and Central governments,all higher education institutions were brought under full government funding and support — and hence under government control. The IITs and IIMs were established,as were Central and many state universities. Since the country was building new dams,establishing new steel plants and building new aircraft,a new kind of manpower was required. The educational system,hence,started setting up many polytechnics,industrial training institutes and engineering colleges. This phase continued till the end

of the ’70s.

The beginning of the ’80s saw a new phenomenon: self-financed institutions in existing universities,as well as private institutions in engineering,arts,commerce and science education. Many politicians saw in this an opportunity,financial as well as social. The “Shikshan Samrat” age was born,and higher education became a source of big revenue. All one was required to do to succeed was to make sure one got all the licences from government agencies and regulatory bodies,as the younger generation of students was growing in numerical strength. The methods of access to higher education were becoming so stringent that this development,the opening up of a huge number of educational institutions in the southern and western parts of India,became a major demographic solution

(or was it a problem?).

It must be mentioned that private unaided institutions have a social responsibility and thus should be held accountable for their quality. Unfortunately,the regulatory mechanisms — both internal and external — did not ensure quality. So while the country saw a huge expansion of the higher education system — an expansion that is needed even today,considering that India’s gross enrolment ratio of 12.4 per cent is still very low — the expansion in quantity at the cost of quality has brought us to the present situation.

Unshackling the higher education system and opening its doors to fresh air would reinvigorate a static system — particularly in finding a resolution to the quantity-quality issue,the major challenge today. Opening up the system is merely a strategy; it is neither a magic wand nor a magic solution. But there is a long history of how opening up a sector has helped that sector. The time has come to adopt that strategy for higher education.

Consider India’s automotive sector. Till the early ’90s,it was one or two car manufacturers,one or two truck manufacturers,each pushing the same models year after year under a licence-permit raj. Once the sector was opened,India emerged as a global hub for automotive components. Even when a GM car is produced in

India,it is not sold at the international price: international brands in India will try for better quality at competitive prices. And Indian companies are competing,and winning in some aspects.

Now,let us consider a service industry,the banking sector. Till the early ’90s,we were used to

the highly inefficient services of nationalised banks. When it opened up,we were able to see a big change in the entire industry. International banks are there; nationalised banks have changed; new technology speeds up operations. Customers have plenty of options,as new banks come up with new products and services. Even when interest rates are

low,customers are happy with banks’ increasingly automated and efficient services.

Companies like Unilever and Colgate-Palmolive have been selling consumer products for decades. Does it mean that we have been paying exorbitant prices for these? The answer is simple: prices are always based on quality and costs,no matter whether the product is produced by a national or an international organisation. If these aspects are taken into account,the education sector will also see a bright future.

One should consider the Foreign Education Providers Bill with an open mind,and examine the specific features of the bill.

However,one has to consider both the historical background and the present situation in India before one looks at the

details. Both clearly point to the bill’s potential.

The writer is the director of IIT Kanpur

express@expressindia.com

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