Galt Global Review

QFS 360

September 3, 2002
Privatization of Education: Applying our Problem Solving Skills
by Jana Ritter


The defunding of public education has resulted in the broad and contested trend of privatization. To advocates, a privatized school system offers the efficiency of a free market rid of bureaucratic bog. To those in opposition, the commercialization of education means inequality and a worsening social plight. As the dispute continues so does the suffering of our public schools. To find a solution, we must first do our homework.
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The Root of the Problem
Theoretically, public education is structured under the ideology of equity. Provincial/state government tax revenue is the primary source of funding and legislature dictates mandatory policies and the general curriculum. Similar to other government services, efficient practice is subject to variable social, economic and political factors

The Oregon State School Board reports that last year's severe economic recession has drastically impacted school funding. The BCTF (British Columbia Teachers Federation) estimates that similar cutbacks in the 2002-03 school year will reduce the teaching force by about 2,000 full-time teachers. BC school boards are now forced to cut programs and services to pay for the government legislated (but not funded) 2.5 salary increase for teachers. Bill 28, (the legislation that ended the recent teacher strike), also stripped class-size and non-enrolling ratios from the collective agreement. These and many other prevalent effects of shrinking budgets and decentralized responsibility of public education have created the need for alternative sources.
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The Growth of Privatization
Coining it the "privatization of content of education" Erika Shaker (Director of CCPA Education Program, Ontario), states that the decline of public funding has drastically increased commercial involvement in our schools. "Exclusive marketing, sponsored educational materials, sponsorship agreements, fundraising, and corporate partnerships are becoming further institutionalized. School boards are now setting up non-profit organizations to offer tax credits to sponsorships", explains Shaker. Kit Krieger, (President of the West Vancouver Teacher's Association), agrees. "Schools have made major commitments to technology and few, if any, ministries provide the funding. The investment in technology is both a major pressure on school budgets and a significant door for private involvement in schools". Although corporations are supplementing public education, schools offer these companies a virtual monopoly and a major advertising platform to an extremely captive audience, thus allowing corporatization to exist on public time and money. Krieger also points out that the result of corporate participation is inequity, as wealthier school districts are much more appealing to potential sponsors.
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Education as a mutual program
Shaker also describes how the 'privatization of the structure', (charter schools, voucher or tax credit legislation, outsourcing of services, and private management of schools), has enabled education to become big business. Second in size to healthcare, the global education industry is estimated to be worth $2 trillion, annually. Since the early 90's "Educational Maintenance Organizations' have emerged. Convincing school boards that they can run schools more cost efficiently, these private companies are combining education budget money with their own capital and overseeing school operations.

Advocates of these privatization ventures see an opportunity for parents to have choices they deserve, especially in urban school districts. Appealing to many under funded schools, for-profit education companies are multiplying with revenues of $100 billion in 2001. Others argue that the contrast between private and public interests put schools at risk. More responsible to shareholders than students, these companies may either pull out or sacrifice education for profit. And as was the experience in Baltimore, the substandard business practices of EduVentures Inc. resulted in a major public expense.
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Problem Solving
The negative implications of privatization do not erase the circumstances that require it to exist. Marshall Fritz, (President of the Alliance for Separation of School and State, California), reports that the declining quality of public schools has increased the support of complete privatization to one quarter of the American population. Erika Shaker rejects any private reform. "To knowingly restructure a public system so that it requires a proportion of those who invest in it to fail for the system to operate correctly is not just, or right, or, frankly, even civilized." But until the government commits to adequate education budgets, the prevention of corporate takeover must be met with alternatives.

Is it possible to restructure a public system that will benefit from private involvement yet maintains the vision of equity and collective good? Implementing laws that have corporations pay taxes instead of benefiting from free advertising and tax breaks and that regulate the management of schools are some suggestions that may offer solutions to this difficult equation.
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