Education before profit
The challenges with privatising education
More than 50 global organisations have come together to warn of the pitfalls of public-private partnerships (PPP) in education.
The Privatization of Education and Human Rights Consortium, of which Oxfam is a part, released a policy brief designed to guide policymakers on the risks of PPPs and provides evidence for investing in public schools.
In this week’s bulletin, we look at some of the challenges of privatising education.
Education PPPs in numbers
Missing the goal. Sustainable Development Goal 4 (SDG4) aims to ensure inclusive and equitable quality education for all. However, at its midpoint, 250 million children remain out of school, teacher numbers have stagnated, and the UN warns of a “global learning crisis.” Things are not looking good for the global goal.
Mind the (finance) gap. Low- and lower-middle-income countries face a $97 billion financing gap to reach national SDG4 targets. 1 in 6 of the poorest countries spend more paying back debt to wealthy countries and investors than they spend on children’s education. Policymakers are looking to the private sector to meet some of this shortfall.
The private sector sees green. The global education market is currently valued at $7.6 trillion. It is primarily funded by governments which contribute 60-70% of total education spending. This makes it a promising source of revenue for a private sector seeking to capture some of these funds.
PPPs have been proposed by the private sector and several rich donors to fill the financing gap and address the quality of education.
What is a PPP? They are long-term contractual arrangements where the private sector provides infrastructure, assets, and/or services traditionally funded and managed directly by governments (like provision of education, school management, meals, transport, professional services (like teacher training), among others). They are frequently promoted as solutions to budget constraints, quality improvement, and innovation within educational systems ―an innocuous partnership between the public and private sectors.
Win-win or win-lose? Evidence points to significant challenges associated with PPP implementation, particularly from an inequality lens.
PPPs tend to prioritize the highest performing and “cheapest to educate” students. A study of 17 countries found that in “a majority of countries, [PPP schools] are reinforcing social disparities by disproportionately serving students in the upper-income quintiles.” PPP schools have also been found to cut corners when making investments to support vulnerable students. In Uganda, a study of an education PPP found that not one school visited had a single special needs teacher for children with disability.
PPPs are more expensive, particularly in the long run. Governments need to build the capacity to oversee the service delivered by others and absorb risk when projects fail. The transaction costs of PPPs across various sectors are estimated at 20% of the project value, which starves more resources from education budgets. The World Bank’s “World Development Report 2018” concluded that governments may deem it more “straightforward” (i.e., efficient) to provide public quality education than “to regulate a disparate collection of providers that may not have the same objectives.”
PPPs neglect critical determinants of quality. There is no consistent evidence that PPPs perform better than government schools. Any difference is because providers select “more capable students into the private sector.” Indeed, a lot of the cost-saving is done by worsening the working conditions of teachers- reducing wages, placing them on shorter contracts, thus diminishing the teacher profession, demonstrably the strongest determinant of quality. In the UK, while the average pay for teaching staff in academies (a type of PPP) is lower compared to public schools, it is higher for senior management, with some “leaders” of academy trusts receiving sky-high salaries.
PPPs are not more accountable. Space for structured parental engagement in decision-making in private or PPP schools tends to be limited. Thus, in the UK, the conversion of government schools into academies (a kind of PPP school) has radically reduced the voice of local communities, parents, and staff. When PPPs design and implement programs without consulting and involving local stakeholders, they may either fail to address their specific needs and challenges, or foster resistance to change and a lack of trust.
Empowering a public alternative. Instead of entering PPPs, governments should consider the public alternative ―empowering public institutions, strengthening public education and ensuring adequate investment in public schools. They need to build the capacity of the public education system, invest in teachers, ensure that the regulations meet human rights standards and strengthen enforcement to ensure that peoples’ rights are protected.
Something to read and listen to
Listen to the latest Equals podcast with economist Grace Blakeley on the rise of oligarchy and the relationship between billionaires, corporations, and the state.
Read fictional Succession billionaire, Brian Cox on why we need a wealth tax.