Download Common Ground

The Competitive Market in Public / Private Education
Driven within OECD countries by endogenous economic
growth theories that identify Public Education Reform
as key to:
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increasing the productive and allocative efficiency of
human capital development
increasing national economic growth through expansion
of the service sector
increasing service sector exports - public education
products and services
increasing the level of technology transfer
Fiscal Policy Reform:
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decrease government financing of public education
increase opportunities to derive government revenue from public
education through valued added taxes, goods and services taxes, export
revenue
Monetary Policy Reform:
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follow principles of Modern Public Debt Management
shifts public education financing to the capital markets to reduce the level
of public debt
government provides credit enhancement and other guarantees to attract
investors to public education sector equity and debt financing
Structural Policy Reform: Create Markets
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government regulations and laws that ensure the development,
ongoing operation of, and investment in, public education as an
industrial sector – competitive international Public Education market
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Endogenous economic growth theories
suggest competitive markets as the most
efficient mechanism for ensuring economic
growth
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OECD countries systematically move public
education from a government monopoly to
an internationally competitive sector of the
economy
OECD governments use structural reform policies to
develop competitive international markets to provide the
incentives and discipline necessary for Public Education
Reform to achieve:
 human capital productive efficiency
 human capital allocative efficiency
 export oriented economic growth
 technology transfer
 decreased levels of government debt
 effective utilization of capital
 competitive advantage
Step One: Education Laws and Regulations Necessary for Functioning Markets
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Monetization – establish fees/prices for public education markets to develop
Re-regulation – allow private and for-profit public education services
Assign Property Rights - intellectual property, copyright, ownership within public education
Step Two: Capital Market Financing of the Public Education Market
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Government Financing of Private Enterprise within Public Education: Technology Transfer
Capital Market Financing – Equity: Private Education Companies, Bonds: Public Universities
and Securitization: Student Loans
Government attracts investors through loan guarantees and credit enhancement
Step Three: Government Development of a Competitive Domestic Market
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Government funds cost recovery programs and vouchers in public education systems
Government funds private education start ups – private K-12 and postsecondary institutions
Step Four: Government Develops Export Markets
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Government supports international marketing of education products and services
Step Five: Government “Locks In” Public Education Exports – Irreversibility
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International Trade Agreements / International Investment Agreements for Public Education
Competitive International Markets in Public Education increase:
Human Capital Productive Efficiency
development of the productive capacity of labour in all areas of the
national economy through the development of a lifelong, seamless,
quality education system
Human Capital Allocative Efficiency
 mobility of students, faculty and staff between domestic and
international education institutions and programs
 articulation, recognition and transfer of qualifications between domestic
and international education institutions
 domestic and international qualification frameworks to support labour
market mobility of all workers
 cross border trade of education goods and services to increase the
opportunities for, and quality of human capital development
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Competitive International Markets in Public Education increase:
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the size of the service sector of the national economy by
increasing the demand and supply of domestic and international
public education products and services
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the value of national economy through exporting public
education products and services and importing quality foreign
public education products and services, developed in a fully
regulated, competitive international market in public education
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ongoing growth of the public education domestic and export
market through product differentiation, price differentiation and
aggressive, government coordinated and funded marketing
strategies
Competitive International Markets in Public Education increase:
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intentional actions of people to improve themselves – lifelong learning
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improvements in organizations – quality management systems
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levels of innovation – Research & Development
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productivity – less cost per unit, new and improved methods
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efficiency – lower transaction costs, increase transparency, eliminate
barriers to entry and exit
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knowledge transfer – eliminate systemic, administrative, social, political
or ideological obstacles to communication, distribution, and adoption of
beneficial technology
OECD countries have competitive advantage in the
International Markets in Public Education:
 First mover advantage (United States, United Kingdom):
identified public education sector as a new area for
liberalization and instituted market development program
in the 1970s – high level of exports to developing countries
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Late developers (Canada, Australia): catching up with first
movers since the 1990s by following their development
strategy – increasing exports to developing countries
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Non developers (Non – OECD countries) have had their
domestic public education market increasingly served by
international competitors – imports only
OECD Governments support competitive advantage of their Public Education
product and service providers
United States Information Service:
 211 offices in 147 countries to promote U.S. education and training services
Australia:
 30 overseas education offices
 as early as 1996 launched a $700 000 promotional campaign in key Asian
markets, and committed $18.5 million to promote its education and training
services internationally
British Council:
 most successful country – markets UK education and training services
 coordinated, onsite, central approach to international marketing
 228 offices and 95 teaching centres in 109 countries
 estimated that education and training exports account for 4 percent of invisible
exports of the UK economy
France:
 Alliance Française has 1,058 associations in 132 countries
 acts as an indirect marketing channel for French education and training services
Current UAE Public Education Reform reflects the
effectiveness of OECD Public Education Reform:
provides a regulated market for international competitors
retains government national public education institutions
allows foreign direct investment
allows cross border trade
regulates public education market participants
provides increasing levels of transparency to eliminate
information asymmetry
 supports technology transfer
 supports the allocative and productive efficiency of human capital
development
 buys / imports public education products and services
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Follow the OECD Public Education Reform approach?
 Decrease government expenditures and increase government revenue as
a result of public education reform ?
 Government and/or capital market financing of public education reform?
 Import and/or export of public education reform products and services?
 Develop internationally competitive UAE Public Education products and
services through public education reform?
Continue to develop these Public Education Reform activities?
 Elimination of Information Asymmetry - Rankings
 Quality Assurance - Government, Third Party Inspections
 International Institutional Accreditation
 International Teacher Professional Accreditation
 International Curriculum Standards
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World Pricing and/or government subsidies
Product Differentiation, 1st, 2nd , 3rd, 4th degree
Mobility – Internationally aligned National Qualification Framework for
Articulation, Recognition and Transfer
Lifelong Learning - Portfolios