Globalization, liberalization and privatization

Globalization, Liberalization and Privatization
Concept, Characteristics and Implications
Dr.T.ARULMOZHIVALAVAN,
M.Sc., M.Phil., SET.(Life Sci.), M.Sc.(Psy), M.Ed., NET.(Edu), PGDCA., Ph.D.,
Assistant Professor of Education,
Marudupandiyar College of Education,
Thanjavur - 613403
Mobile No: 9843074563
[email protected]

1. Globalization , Liberalization and Privatization Concept , Characteristics and Implications Dr.T.ARULMOZHIVALAVAN , M.Sc., M.Phil., SET.(Life Sci.), M.Sc.( Psy ), M.Ed., NET.( Edu ), PGDCA., Ph.D., Assistant Professor of Education, Marudupandiyar College of Education, Thanjavur - 613403 Mobile No: 9843074563 [email protected]

2. 16885 colleges 320 universities India’s private education sector have transaction of $1.84 trillion Gene r al Ag r ee m ent T rade in Ser vic e ( G A T S )

3. General Agreement Trade in Service( GATS) Liberalization of Trade in services Education as one of the services How it happened

4. Economic Crisis 1991 India Faced classic account deficit High fiscal and Current account deficit External borrowing to finance the deficit Rising debt service obligation Rising inflation, and inadequate exchange rate adjustment

5. In 1979 Oil Shock Agriculture subsides pushed the deficit In mid 1980’s Defense expenditure Reduction of direct taxes Increased dependence on foreign oil import

6. Reliance on external funds Negligible foreign investment i,.e 0.1% of GDP Reliance on commercial Borrowing Financial needs were met by external assistance

7. In Ju l y 199 1 ,India has taken a ser i es of meas u res t o st r ucture t he e co n omy a nd improve the BOP position. economic policy introduced The new changes in several areas. The policy have salient feature which are: - Liberlisation (internal and external) Extending Privatization 3.Globalisation of the economy Which are known as “ LPG ”. (liberalization privatization globalization)

8. Liberalization

9. to fewer government restrictions in the economy. r e gu l a tions a nd to the relaxation of the previous government restriction usually in area of social and economic policies. it means it has removed the tariff ,subsidies and other restriction on the flow of goods and services between the countries.

10. Removing import and export restrictions Allowing FDI Allowing Indian company to go global. Allowing buying and selling of goods, technologies and services. Removing licenses and permits. Free currency conversion. Levy reasonable taxes. Liberalize labour laws Reduction in tariffs Relaxation of investment Greater transparency of trade policies and regulations

11. POSITIVE ( Ad vantages ) Generate additional funds. Provide viable option for teachers and students. Reduce the possibility of charging excessive premium for education. Indian economy to get push forward. Financial capital of the country will remain safe. Industry- oriented graduates. Technology and communication . NEGATIVE ( Disadv andages ) Sub-standard international institutes Risk of fake institutes. Corrupt practises, false degrees . Survival of local institutes with limited resources at stake. Setback of reputed institutes. A loss o f jo b s Negative changes in remuneration and benefits. Constantly changing supervisors and subordinates .

12. The transfer of public assets, operations or activities to private enterprise”.

13. tr a n s fer o f o w ner s hip a n d/ o r ma n a g ement o f an enterprise from the public sector to the private sector withdrawal of the state from an industry or sector partially or fully. is opening up of an industry that has been reserved for public sector to the private sector. replacing competitive g o vernment m o n o p o l i e s with t h e p re s sures o f t h e m arket p lace to enc ou ra g e e f ficienc y , q u al i ty and inn o v a ti o n in t he delivery of goods and services.

14. Shift in Policy- Article 45- Free and compulsory education (14 years) Mass approach to higher education Technological Developments Greater Efficiency and Quality in teaching Increasing demand for enlightened work-force Economic Compulsions Competitive market scenario “Education for Globalization”

15. Positive (adv) Overall efficiency. Private Sector more responsible. Mutual benefits. Earning capacity of the receiver. Financial burden of the government. Negative (disadv) Commercialization of Education. Quality and Standards of Education may suffer. Equality of educational opportunity may not be available. Negle c t of ‘s o ft’ su b jects

16. Globalization implies integration of the economy of the country with the rest of the world economy and opening up of the economy for foreign direct investment by liberalizing the rules and regulations and by creating favorable socio-economic and political climate for global business. Globalization transcends socio-economic and political barriers that the countries of the world are prone to build around themselves 19

17. The growing economic interdependence of countries worldwide through increasing volume and variety of cross border transaction in goods and services and of international capital cash flows, and through the more rapid and widespread diffusion of technology.” It is not only a process “integrating just economy, but culture, technology and governance. It is giving rise to new markets, foreign exchange and capital markets linked globally, new tools, internet links, cellular phones, media network, new actors

18. to expand business throughout the Opening and planning world. Erasing the difference between domestic market and foreign market. Buying and selling goods and services from/to any countries in the world. Locating the production and other physical facilities on a consideration of the global business dynamics ,irrespective of national consideration.

19. Positive (Adv) Increase in trade in goods and services New opportunities for growth Financial Markets Foreign Market Capital Impact on Poverty Increase in level of Interdependence and competitiveness Domestic firms to improve technology Negative (Disadv) Loss of domestic industries and business Exploits Human resource Widening gap between rich and poor Transfer of natural resources Commercial exploitation Take over of National firms Traditional crafts and industries Brings Instability Adverse effects on Environment.

20. Modes of Exchange in services M o d e 1 : Cross bord er deliver y : i .e. Ed u catio n via internet, distance education, tel e – education , open learning, online courses etc. M o d e 2 : abroad : Con s ump t ion movement of students from one country to another for higher education. STUDENT MOVES

21. R Mode 3: Commercial presence : Establishment of local branch campuses or subsidiaries by foreign universities in other countries, course offerings by domestic private colleges leading to degrees at foreign universities, twinning arrangements, franchising. INSTITUTION MOVES Mode 4 : Movement of natural persons : temporary movement of teachers, lecturers, and education personnel to provide education services. TEACHE MOVES

22. LPG : ON EDUCATION

23. Disinvestment of government share from universities, colleges and schools. Entry of Multi- National Corporations(MNCs) and Foreign Direct Investment (FDI) in the Universities, colleges and schools. Multi-national collaborated offering of courses / programmes. Privatization of schools, colleges and universities Structural and functional changes in universities, colleges and schools.

24. Amendments to the legal framework governing universities, colleges and schools Raising the quality of universities, colleges and schools to international standards. Export and Import (Exim) of Higher Education. Continuous changes in the higher education sector in tune with WTO, WB, IMF policies. Upward revision of fees on the basis of economic calculations .

25. The problem of meritocracy vs. moneycracy. Generation of internal resources to meet the expenses. Frequent changes in the curriculum in accordance with global trends Consideration of education as a non-merit good and discontinuation of government subsidies. Creation of intellectual properties and obtaining patents.

26. Extensive use of information and communication technology. Incurring of capitation / donation for admissions in the form of enhanced (Self- financing) fees. Marketing of courses / programmes / wisdom of the faculty members Frequent exchange of teachers and students between countries

27. Concern that “the socio-economic implications of opening the education system globally and making education service for profit needs to be carefully examined Global competition, full or profit cost pricing of education has several socio-cultural implications and may adversely affect the Constitutional obligations of equity.” Commercialization of higher education can have adverse implications, both in terms of access and equity.

28. Commodification of education, research and knowledge will not serve the long range interests of the nation. It could lead to truncated growth and lop sided development of higher education .

29. https://vijendersharma.wordpress.com/2008/12 /06/gats-and-higher-education-in-india- implications-and-concerns/ http://www.ijstr.org/final- print/aug2013/Globalisation-And-School- Education-In-India-Some-Data-Gaps.pdf https://www.academia.edu/8121043/Privatizatio n_and_Globalization_of_Higher_Education_in_Indi a_in_the_era_of_Economic_Reforms Nushad Husain : Contemporary India and Education ,Shipra Publication Lubna Mansuri: Contemporary India and Education ,Himalaya Publishing House