There are no simple answers to questions of what is the purpose of education? Is education to provide lessons for living or for livelihood? One of the most fundamental questions is why some countries remain poor. Poverty is often a result of low productivity, and while various factors can enhance productivity, education stands out as a transformative tool. For countries with large populations and limited resources, crafting effective higher education policy is crucial, but often more complicated than in wealthier nations due to conflicting goals. Education expert John Gardner posed the question of whether it is even possible to achieve both equality and excellence. Despite these complexities, education reform is essential for creating opportunities and combating poverty, especially when integrated with reforms in K-12 education, employability, and labour markets.
School reforms are vital because the foundational knowledge that should be gained over 12 years cannot be compressed into a six-month period. At the same time, employability reforms address the widespread issue of educated unemployment. Education policymakers face difficult trade-offs but five challenging trade-offs stand out: Quantity vs. Quality, Repair vs. Prepare, Price vs. Cost, Funding vs. Delivery, and Excellence vs. Inclusion.
Interestingly, these trade-offs affect the entire education chain—from K-12 education to vocational training and higher education. However, these questions have been persistent throughout history, as seen in the recommendations of both the Kothari Commission in 1968 and the Radhakrishnan Committee in 1948. Albert Einstein’s story about repeating exam questions because the answers change each year serves as a reminder: today’s India is younger, more confident, and poised for progress. The answers to education’s age-old questions must reflect this boldness. Below is an exploration of each trade-off:
Quantity vs. Quality
Efforts to control quality by limiting quantity have failed to achieve either goal. A comparison between two education regulators in India—MCI (Medical Council of India) and AICTE (All India Council for Technical Education)—illustrates this issue. MCI restricted capacity in medical education, while AICTE expanded engineering seats. As a result, India produces over 1.5 million engineering graduates annually but only 37,000 doctors. Capitation fees have largely disappeared in engineering but remain high in medicine. Over time, even poorly rated engineering colleges have contributed to India’s IT workforce. Today, competition is driving positive changes, with many low-quality engineering colleges shutting down and higher-quality institutions raising faculty salaries.
Reforms should lean towards increasing capacity, as oversupply can shift the focus from mere attendance to quality. This will help transform educational institutions from monopolies holding students hostage to competitive organizations that must attract students based on merit.
Repair vs. Prepare
Mark Twain’s view that education is about lighting a fire, not just filling a bucket, resonates in the Indian context. Transitioning out of poverty often requires a focus on employable skills, yet some educational idealists argue that learning should prioritize personal development over economic gain. However, short-term training programs cannot compensate for a lack of foundational learning over many years. While six months might be sufficient to train a plumber, it’s too short a time to foster essential qualities like creativity, curiosity, and teamwork. The goal should not be to excessively vocationalize education but to create flexible pathways between degrees, diplomas, and certifications.
Price vs. Cost
As the shift from quantity to quality continues, debates around the cost and pricing of education are likely to intensify. Determining fair fees and profit margins, and creating incentives for private investment without exploiting students, are complex issues. Evidence suggests that price controls are ineffective, as they often result in hidden fees or reduced access. Expanding credit markets may also lead to higher tuition fees, as seen in the U.S., where student loan debt has surpassed credit card debt.
Funding vs. Delivery
Public funding should not be limited to public institutions alone. Allowing both public and private institutions to compete for funding can improve outcomes by encouraging innovation and providing parents with more choices. This competition could also improve teacher performance by introducing accountability and performance management.
Excellence vs. Inclusion
The tension between excellence and inclusion is particularly relevant in India, where issues such as caste-based reservations and inequality of opportunity persist. Institutions must choose between models that prioritize excellence, such as IITs and IIMs with strict admission standards, or models that offer broader access but potentially lower outcomes. The current system of vocational training, with open admission and lenient graduation standards, often struggles to deliver effective results.
Debates about public vs. private or foreign vs. domestic institutions are less important than focusing on good versus bad schools. Reforms should encourage entrepreneurship, as the current regulatory system often discourages innovation by rewarding those who excel at navigating bureaucratic loopholes. This leads to institutions that remain small and ineffective, rather than fostering growth and quality. A thriving education system is crucial for turning India’s demographic potential into a true demographic dividend.
Globally, higher education is facing challenges. In the U.S., more than 31% of retail sales clerks have college degrees, a figure that was just 1% in 1970. Similarly, 60% of cab drivers in Korea and 15% of Indian high-end security guards hold degrees. The rising cost of education has led to spiralling student debt, with questionable returns on investment. Despite its promise, technology has yet to revolutionize education in a meaningful way, although recent advances may offer scalable solutions.
India’s labour market faces unique challenges. While many young Indians are entering the workforce, there is often a mismatch between available jobs and skilled labour. Employers are lowering hiring standards, while many capable job seekers remain unemployed due to geographical barriers. The importance of education in solving this mismatch cannot be overstated. The focus now must be on execution—how to navigate these trade-offs and strike the right balance between competing interests and objectives.
India stands at a pivotal moment. With 300 million people who may never experience the benefits of the products they help create, addressing illiteracy and unemployment is essential to achieving true freedom, as defined by Amartya Sen. As the world ages and India’s youth population grows, education reform will play a critical role in securing the country’s future. Finding the right balance in education policy will be key to fulfilling this potential.
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