And yet more challenges . . .
Regulating private education is a major issue in meeting the huge and growing demand for education in emerging economies. The main challenges are connected and include the following:
1. Protectionism from the public providers
In too many countries regulatory constraints come from the desire of established public providers to head off challenges from the private sector, with restraints on trade cloaked in cultural causes. This is especially the case in higher education and for out-of-country providers. Public and private providers should face common standards as far as possible and a common or similar accreditation and QA regime.
2. Keeping out the ‘bottom-feeders’
However there are risks: too many countries have encouraged private provision only to regret it later (e.g. Indonesia) then lift the barriers or try to establish late a standards-based regime. I don’t mean the outright illegal operations, the paper shops; I mean those that are flouting standards and just getting away with it for want of a robust accreditation and QA regime, deliberately falsifying the offerings and failing to provide mandated or promised services like qualified teachers, libraries or clean classrooms. Often their existence relies on lack of resources for the public regulator, but developed and emerging economies share similar difficulties in regulating the ‘bottom-feeders’ (a fishing analogy) and this makes the case to government for public-private equivalence, or industry self-regulation, very difficult. These rogue providers should not be confused with good low-cost providers, ‘cheap and cheerful’ who may not have the status of well-endowed institutions across town.
3. The wide range of providers . . .
4. Getting to the poorest citizens . . .
5. Regulating for non-remunerative education services . . .
David Wilmoth, Guest Commentator
Learning Cities International Pty Ltd, Australia
david@wilmoth.com.au
3. The wide range of providers
Regulatory regimes try to differentiate too finely between different education subsectors – for-profit and not-for-profit, faith-based and secular, local and foreign-owned – and create mountains of paperwork, overlapping categories, often overseen by different agencies. Better to have common standards, at least for major subsectors (K12, VET, higher education) and put providers to transparent and preferably peer-reviewed regulatory tests.
4. Getting to the poorest citizens
Often the private and community sector/s bear the burden of providing places for those with little means, growing up from community self-provision to full licensing. The regulatory process has to have a way to allow this self-starting to occur, and in some ways regulating this pathway to institutional maturity so as to encourage start-ups and upgrades does challenge my own point about common standards for all.
5. Regulating for non-remunerative education services
There is a further challenge perhaps more characteristic of higher education but embedded in the other sectors too: private providers (at least, for-profit providers, though in many countries profit motives are wrapped up in non-profit packaging) are kept separate because they are seen as uninterested in anything other than teaching and learning. Research, community service, and contributions to national development are seen as prerogatives of public institutions, justifying a separate and less autonomous existence to private institutions, and in some cases (for higher education providers) lack of access to the right to be called a university. There is truth to this and it remains a challenge even for a unified, standards-based, transparent and adequately-resourced system to accommodate such difference.
Comments (5)
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Light touch regulation has already been mentioned; perhaps it is more relevant now that we are in the midst of a major financial crisis. During crises it is the less skilled and less educated that are more likely to suffer employment and earnings losses. At the same time, the more skilled and educated experience higher returns to their schooling investments. Having more providers and a wide range of providers becomes all the more important so that the less skilled can continue to learn and make them more productive.
All this requires less regulation to ensure that more providers enter the market. It also requires equal funding, through students, so that the less skilled can make their investments in times of crisis.
Posted by: Harry Anthony Patrinos | Nov 5, 2008 3:22:51 PM
There is good regulation and bad. Whether regulation is effective depends on the purpose it is intended to serve. Some regulation is intended to control activity, i.e. the independent supply of schooling, which is viewed as inherently desirable. But all too often regulation is designed to discourage supply, not to enhance its standards. There is an ideological case for such regulation but it rarely has much to do with the quality of education.
A feature of much regulation is that it is over complex. Excessive complexity is ineffective from the point of view of the regulator, discouraging for the supply side and disempowering for the consumer. A useful comparison is between Sweden and England. The regulatory framework in Sweden is easy to explain and understand and responsibilities are well defined. In England the extent of the independence of Academies is very difficult to define and the ability to innovate is compromised.
Posted by: Neil McIntosh | Nov 6, 2008 9:27:44 AM
If the governments are not able or willing to provide some level of adequate public higher education, it makes sense to privatize higher education and make sure they are in compliance with the international standard (which does not exist) to accredit these institutions. If the private education implies a for-profit corporation (i.e., share price), it must be regulated with extra scrutiny as it presents a conflict of interest.
Posted by: Dennis Anderson | Nov 6, 2008 10:44:59 AM
An interesting issue is whether and how much scope there is for use of the private sector as a means of regulation - in areas such as quality assurance/accreditation and entry into the education marketplace.
There are many examples in the education sector where private organizations regulate/certify quality. For example, Cisco and Microsoft both provide private sector certification of skills in the IT field(http://www.cisco.com/web/learning/le3/learning_career_certifications_and_learning_paths_home.html and http://www.microsoft.com/learning/mcp/default.mspx). Cambridge International Examinations plays a similar role at the school level by providing qualifications for 14-19 year olds (http://www.cie.org.uk/). The Accrediting Agency for Seventh Day Adventist Schools (http://www.nadeducation.org/dynamic.html?wspID=300&wscID=146) operates its own accreditation system for its programs and institutions. There are other examples, including the US system of higher education accreditation (http://www.chea.org/default.asp), the privately operated accreditation system for schools, colleges and universities in the Philippines (http://www.dlsu.edu.ph/accreditation/paascu/default.asp) and international accrediting organizations such as EQUIS (http://www.efmd.org/index.php/component/efmd/?cmsid=040929rpku), which provides international accreditation of higher education institutions in business and management.
Private accreditation can help to address some of the concerns with government regulation outlined above - a key one being that governments may use regulation to limit the entry of private institutions in order to protect public institutions from competition (ie government is both referee and player). The issue for governments is to put in place a system where such private regulation is recognized.
Posted by: Norman LaRocque | Nov 7, 2008 2:01:48 AM
The greatest challenge in regulating private education in Cameroon is financing. Since the providers are alone to invest to make functioning their institution, he just looks at it as an opportunity to generate profit. The school fees are consequently not fixed by the State which lets the law of the market make its dictatorship in a world of unfair competition.
The State must subsidize private Education.
Posted by: Brigitte Matchinda, Cameroon | Nov 7, 2008 9:08:01 AM