Policy Wise

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National Knowledge Commission has recommended allowing foreign universities to set shop in India.

Foreign educational institutions should be allowed in with policies that ensure that “there is an incentive for good institutions and a disincentive for sub-standard institutions to come to India”. It also clearly proposes that a “level-playing field must be ensured and all rules that apply to domestic institutions should also be applicable to foreign institutions. (emphasis mine)[link]

While the proposal to allow foreign universities must be welcomed, the devil lies in the fine print. The universities would be allowed only if they follow ‘all domestic rules’. This would include, apart from being forced to follow government reservation mandates, regulations on the levels of fees they can charge. It is open to question whether top foreign universities would be interested in opening campuses if they are forced to deal with the legendary Indian bureaucracy and constant interference from the University Grants Commission. The NKC, to it’s credit has recommended setting up a Independent Regulatory Authority for Higher Education(IRAHE) to take away the regulatory powers from the Human Resources Development Ministry. This proposal would meet strong resistance from the mandarins of the ministry and it remains to be seen if the Prime Minister can summon enough courage to take them on.

Interestingly enough, on the same day the NKC submitted it’s report to the government, the Vice Chairman of the commission, Dr. P.M Bhargava came out strongly against the entry of foreign universities.

The move to invite foreign universities to offer education in India today came under attack from Vice Chairman of National Knowledge Commission P M Bhargava who said it would lead to commercialization of higher education.”This move is to commodities education. Education is not at all a commodity,” …”No good university will come. The second grade and third grade university will come and make profits in the name of quality education,” he told a news agency later.[link]

Dr. Bhargava doesn’t explain why only second or third grade university would be come. Is it because of the policies his commission has recommended?

Dr. Bhargava’s whole premise of commercialization of higher education is, to put it mildly, ridiculous. By the commission own estimates, only 7% of Indians have access to higher education-how many of those are sufficiently equipped for today’s knowledge economy is another matter altogether. The government which cites lack of funds as reason for not being able to guarantee primary education should surely not invest more in higher education, especially when there are private parties willing to share the burden. And it’s not as if government own institutions are doing a stellar job . Yes, there are enough private institutions which are nothing more than ‘educational shops’. But they are merely symptomatic of the larger problem-due to the excessive regulations and constant government interference, only the political elite is able to set up universities. That such institutions still thrive is indicative of an unmet demand and pointer towards more liberalization.

So while I applaud Dr. Bhargava’s thinking that every Indian university can be turned into a Harvard and wish him luck, the more realistic elements in the government must work hard towards creating a conducive environment for attracting top universities. That such universities are not exactly enamored by the government is patently clear.

(Bhargava link via RJ who comments on it here)

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