Education became a Commodity, now what?

The GER trend in India is increasing[4] and the target set by the government is to achieve 50 % GER by 2035[5] so we can only expect this upward trend to consolidate in the upcoming years. But how is this surge in supply for higher education being met? Let us go back to the data. In 2020, the share of government public universities[6] was about 38% across India. This was a decrease from 2012 when the share of state public universities was 46% (Statista). If we contrast this data with the information outlined in the beginning of the article, it does not take much to realise that the demand is being met by an increase in the number of private universities.

In a country where education is still not universal in access, but demand is increasing expeditiously, we are observing a phenomenal growth in the number of private universities – outpacing the other types of universities.

There might be a limit to the capacity of public institutions, incapable of matching the rapid demand for higher education. Private universities seem to be offering a successful formula for the current times, especially in terms of speed and efficiency – easier to enrol, less academic entrance obstacles, variety of degrees offered, locations all over the country… But wait, let’s pause and reflect for a minute. Doesn’t this seem like obtaining a degree is becoming like choosing a car or a travel destination? Where the richest sector of society can access better goods, just because their purchasing power is higher, this being the only factor that counts.

One perhaps should not criminalise private education for the fact that it is costlier than public education – as long as the quality and standards of education are maintained. So, it seems that the transformation of education into a lucrative business is widely accepted in our current societies. We are allowing businesses to operate in the name of imparting knowledge. Nothing wrong with that as far as we are aware of the implications associated with it.

Research has proven that when spending more and consistently in public education income inequality is lowered. On the contrary, higher levels of private education spending are associated with higher wage dispersion and a higher education premium[7] – which in other words means higher income inequality[8].

This is nothing new. Competition in education happens the same way it happens in other sectors: it is fair uniquely when the competitors are of equal strength otherwise it becomes a market failure. In India there is an evident and big gap between rich and poor as per income inequality indicators. So, not only those with higher incomes will unfairly compete and win the race for a private university degree but, on top of that, this race will exacerbate the already existing inequalities.

Marketisation can provide wider opportunities and options to people. When buying this red shirt I am wearing now, I had – at least – 20 options within the same shop, and 20 shops within the same street to opt for. Some people might have chosen a more expensive shop and a fancier shirt, some would opt not to buy a new shirt due to financial constraints, but should we play the same game with education?

By: Celia Gueto Melo