Market Education: Will India Lead the Way?

Much is made of the fact that some sectors of the U.S. economy face increasing competition from the developing world. India, in particular, is singled out for its proliferation of call centers and computer programmers.

But few people stop to ask how a developing country in which English is only learned as a second language has been able to become such an important international contender for skilled jobs requiring English fluency. The answer, at least in part, is that a large and increasing number of Indian children are being educated in private, fee-charging schools that must compete vigorously for the privilege of serving them. Even in some of the poorest slums and rural villages of India and Africa, majorities of students attend these schools, and are better served educationally than their peers in the government-run sector (and at a lower cost, to boot). Among other advantages – from the standpoint of meeting parental demand – the vast majority of Indian private schools teach all their lessons in English, as opposed to state schools which typically offer English instruction only as a separate course, when they offer it at all.

But despite the considerable size and rapid growth of the private education sector, there are still millions of families in developing countries who find it financially difficult or impossible to gain access to it. But what if those countries kick it up a notch?

A recent story in DNA Mumbai quotes Infosys CEO Nandan Nilekani as saying that, “There is an urgent need for the government [to] provide vouchers to parents from the economically backward section. That way they can choose to enroll their children in private schools instead of the government-run schools, which are in a pathetic state.”

Adopting a truly free market approach to education, with financial assistance to ensure universal access, would be an incredible boon to the Indian standard of living, and an excellent lesson for rich countries still languishing under the pall of calcified government school monopolies.