Could for‐profit private education benefit the poor? Some a priori considerations arising from case study research in India

Abstract

A low‐cost private education sector is acknowledged to be serving the poor in developing countries, including India. However, it is widely accepted that this sector cannot provide a route towards ‘education for all’. This conclusion is explored in the light of case study evidence from low‐income areas of Hyderabad, India. Private education may be beneficial to the poor–especially in terms of greater accountability to parents leading to higher levels of teacher commitment. Moreover, de facto, although not de jure,for‐profit education exists in low‐income areas, with levels of profit such as to attract entrepreneurs into the market, and hence may be beneficial to the poor by expanding their choices. Objections to a role for private, for‐profit education are explored. These include justifications for state education, including arguments for equity, externalities, the human right of education and the argument of history, none of which appear conclusive as objections.

Notes

1. The figures given here differ very slightly from those published in the pamphlet for CfBT (Tooley & Dixon, 2003b); these were earlier estimates that critics have pointed out did not take into account the opportunity costs of capital where buildings were owned and later information obtained concerning estimates of unofficial payments. Figures given here are the more accurate estimates.