Higher education in wto regime

1. Introduction         

When there was no university elsewhere in the Europe; Takshasila, Vikramshila, Pallavi, and Nalanda were the centers of Global Education and attracting learners from all around the globe. The development of modern education in India started with the establishment of Hindu College in Calcutta in 1817. During British reign, Calcutta University was the first to confer the bachelor degree on women in 1883.

After independence various universities have been opened both by the government as well as private sector. The main motive behind opening these universities were not to earn profit but to serve the society by imparting higher education and conducting researches related to pure and social sciences. The fees charged from the students were minimum, hence these institutions were generating deficit so there was a need to go for the donations and aids to cover its fixed and running expenses. But gradually there was a drastic change in the scene .The education sector emerges as one of the most profitable business opportunity. The increase in the number of private schools and institutions supports the fact. Higher education is not an exception to this. Gradually most of the corporate entities have also entered into the picture.


2. Corporatisation of Higher Education

Now a days education sector is a trillion dollar industry. It is a service sector industry in the area of education as service with a huge global market in which students, teachers and non- teaching employee constitute resources for profit generation. So the concepts of marketing are also applicable. The organizations have to market their product and themselves in order to survive. In this industry the students are the customers, the teachers are the service providers and the institutions are organizers or marketers and teaching-learning process is no longer for the building of a nation but a business for profit making. Education at all levels, will continue to grow, because it cultivates the human mind and makes people important and useful in the all round development of a country, however for the corporate sector it will grow as a big service industry. Predatory and powerful MNCs are targeting public education, particularly higher education, for profit- making. Though predominantly a government supported service most governments are as consequences of neo-liberal economic reforms, withdrawing from it. The government of India through extensive privatization, commercialization and deregulation is encouraging this process.

3.  Education under GATS umbrella

In 1996, the United States provided exports of education and training services had reached 8.2 billion dollars, and its trade surplus in education amounted to 7 billion dollars. Higher education was the fifth largest service exported by the US. Therefore, the pressure of the United States on WTO member countries in relation to trade in education service is clearly understandable.

The US, the European Union (EU), Japan and Canada are the main powers behind the GATS. Though WTO membership consists of nation states, the transnational corporations of these countries that sit on all the important “advisory” committees and determine detailed policy shape its agenda. While denying access to decent healthcare, education housing and long term care to millions of workers and their families the world over, the agreement will confer ever greater political power on these corporations as they control and dictate public policy.

GATS have two components: (i) the framework agreement containing 29 articles, and (ii) a number of Annexes, Ministerial decisions etc. as well as the schedules of commitments by each member government, which bind them to allow market access, and /or remove existing restrictions to market access. This agreement covers all services, including education 

When the services are entirely provided by the government, they do not fall within the GATS rule. For a service to be out of the purview of the GATS rule it has to be entirely free. However, when the service have been provided either by the government partially or some prices are charged (as happens in education where some fees is charged) , or provided by the private providers , they shall fall under the GATS rule.

The informal WTO classification List (W/120) divides educational services into five parts: (a) Primary education (b) secondary education (c) higher education (d) adult education (e) other education.

The idea behind this is the creation of an open, global marketplace where services like education

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