People's Democracy

THE WTO has identified certain barriers to trade. These barriers/ obstacles include the restrictions on free movement and nationality requirements of students and teachers, immigration regulations, type of courses, movement of teachers, modalities of payments or repatriation of money, conditions concerning use of resources, direct investment and equity ceilings, the existence of public monopolies, subsidies to local institutions, economic need tests, exchange controls, non-recognition of equivalent qualifications, etc. Because services are not objects, barriers to trading services are referred to as non-tariff barriers.

The goal of 'free trade' regime under WTO is to get these barriers removed in order to further liberalise the world economy. The United States, on December 18, 2000, made a proposal to the Members of the Council for Trade in Services, WTO, in which it included "all tertiary education, i.e. education beyond secondary education, adult education, and training services" under the umbrella of ‘higher education’.

The US proposed the inclusion in education services two types of services: (1) training services which are less theoretical and more job-related than academic courses, and (2) educational testing services which are used to evaluate the student as well as the course material, and include ‘designing and administering tests, as well as evaluating test results.’

The US proposal calls for an open regime in the education and training sector and demands market access, national treatment, and additional commitments from Member countries who have been called upon to "inscribe in their schedules 'no limitations' on market access and national treatment" and to undertake "additional commitments relating to regulation of this sector."

However there are only 40 countries out of 143 WTO Member countries that have committed to trade in education service. Majority of them are from developed countries.

In the beginning of the last decade, some foreign universities tried to market their higher education programmes in India. Representatives of several countries visited India to market certain percentage of their medical and engineering seats. Some foreign universities have also engaged Indian agencies and firms to recruit students to study in their universities. Others have started franchisee or commercial presence in India by allowing students to be enrolled in India and carry out studies for a part of the period in India and completing the other part of the degree in the institutions abroad. In certain cases even full degree institutions in India for giving foreign university conduct their programmes. Some also have twinning programmes between foreign and Indian universities. Some offer programmes through distance mode, through print, computer, television and electronic mode, i.e. the virtual universities.

Thus the export of higher education to India by universities of several countries has been through modes of consumption abroad, cross border supply, franchisee, twinning programmes and virtual universities. In 1999, about 20,000 students went abroad for education mostly to USA, Australia, UK, Canada and France. However, on an average only 1500 students per year mostly from Gulf and South Asian countries come to India for education. It is not known as to how many Indian students are enrolled under cross border supply, franchisee and other modes. Fee charged from students ranges from Rs 50,000 to Rs 340,000 per annum.

A recent estimate given by Global Alliance for Transnational Education indicates that about 27 billion dollars worth of higher education is exported to Asia and Pacific by three countries namely USA, UK and Australia. A business of 37 billion dollars trade in tertiary education services in Asia and Pacific region is projected for future.

An analysis of the advertisements issued by foreign universities or on their behalf in India reveals that the courses offered by them mostly relate to hospitality services, management, medical and information technology. Some times concurrent degree programmes, i.e., two degrees in the same period are offered. No conditions of minimum qualification, are insisted upon, only 10+2 degree/certificate plus an interview is enough. Quite often the duration for getting degree may also be less than that required in India for the same degree. Largest number of universities advertising in India is from UK followed by Australia, Canada and Austria.

As far as India is concerned, the foreign education suppliers are interested in higher education with the use of all the four modes of trade. They are targeting at economically well-to-do group in the society in order to maximise profits. The impact of GATS would be that the non-organised private education suppliers in India would be the first ones to take an advantage. The public education suppliers would be marginalised in the race due to unequal rules of the game. There is bound to be an unfavourable balance in the trade of education services.

The ongoing WTO negotiations on trade in services including trade in educational services, present issues that have very serious implications for higher education. In this context, some of the following observations made in the Tenth Five Year Plan Proposal deserve serious attention:

• "Although India has approved to complete liberalisation on Trade in Educational Services, it may not be able to withstand the international pressures unless she prepares well for the second round of WTO negotiations. The matter is urgent and the government should therefore appoint Committee/ Task Force to advise on (a) negotiation on higher education issues in WTO, and (b) issues relating to erecting the safeguards for the post-negotiations market access regime."
• "Serious thinking is required to extend the benefits of higher education to the less privileged section of society. For this an Educational Development Bank should be created."
• "Private relevant institutions of higher education should be encouraged provided they adhere to equity parameters determined by appropriate regulatory mechanism."
• "Optimum utilisation of public infrastructure and manpower in the higher education sector should be ensured."
• "Universities should also consider setting up a cell for taking care of internationalisation of higher education, both for import and export. Universities may devise ways and means to mobilise their own resources through various means."

Explaining its approach for internationalisation of higher education, the Tenth Five Year Plan Proposal suggests special incentives to universities: Universities which are willing to raise say 25-30 per cent of their recurring expenditure from the fees of foreign students should be permitted to retain 10 per cent of the collection towards a designated fund for updating equipment and facilities. The university should be within its rights to admit as many foreign students as necessary to raise the target amount. For five years government should also consider making a matching grant towards their designated fund. This would progressively reduce the dependence of such a university on the government. (Emphasis added)

For the universities that accept the above scheme, recommends the Proposal, the NAAC (National Assessment and Accreditation Council) should set up a special and professional method for evaluation so that the foreign students who receive training in India are accepted as 'world class' on their return to home. The evaluation should aim at ensuring not only high academic standards but also decent living conditions for the foreign students.

The Proposal further states, Deemed universities, which are rapidly growing in number and receive no support from the government should be encouraged to admit higher percentage of foreign students. It emphasises that if private enterprise is "willing to set up world-class educational facilities in emerging areas such as IT or biotechnology, where the full cost will be recovered from the fees of foreign students they should be given encouragement.

The UGC has allowed deemed universities to set up their campuses in other countries. In view of this, the Proposal wants this facility to be extended to all universities who wish to export education. It is also proposed that as an incentive for the universities, "their earnings from abroad should not be deducted from the annual government grants for say, 5-10 years", and they should have "access to soft loans" for the purpose.

The Proposal warns, "The paradigm of development has changed. International arrangements in trade in commodities, services and intellectual property rights are occupying greater importance and the place. Some of the State policies and rules have to give way to international arrangements." (Emphasis added)

According to the Report of a "Policy Perspective Seminar on Internationalisation of Higher Education and Operation of Foreign Universities in India" organised by NIEPA, in 2000, education should be seen from the point of view of "promotion of knowledge and development of knowledge and skills among the people which are mutually beneficial and oriented towards development of mankind and also reducing the gap or the factors which cause the gap in knowledge and skills among people. If this point of view is accepted then it is necessary to allow free flow of knowledge cutting across the geographical boundaries of nation states. Though this idea sounds well and high, but in practice it might as well result in selected flow of information/ knowledge and skills from one set of countries to another set of countries in one direction whether in a single or multi-disciplines subjects. If this happens then it might as well result in draining of resources of receiving country as well as strong cultural and political influence by one set of countries on other set of countries." (Emphasis added)

Some of the recommendations made in the Report are:

—Setting up of a "national level mechanism" for registering foreign universities in India and promote Indian higher education abroad.

—Clear guidelines and laws about "VISA, infrastructure facilities, social and welfare programmes and accommodation facilities for students coming to India and students going abroad."

—An "Ordinance should be passed" to allow universities to open their campuses abroad.

—The acceptance of the "certification/ credit given by the respective institutions should form the part of agreement."

—The accredited Indian universities or Institutes of higher education should have "15-20 per cent full payment seats for foreign students in every subject/ programme as a supernumery position not cutting into the available seats of Indian students."

—In order to have an international context in education, the course content should "focus on requirements of job market and should have provision for innovative and flexible programmes."

—Indian universities should be "allowed to offer programmes through twinning, franchisee as well as distance mode."

—Foreign students studying in India should have "work permit for a period of three months per academic year. Total duration of work permit would not exceed one year six months."

A National Level Meeting of Vice-Chairpersons of State Council of Higher Education, Vice Chancellors and Experts on "Trade in Education Services under WTO Regime" was organised by NIEPA on September 11, 2001. The meeting constituted several committees for in-depth studies on the issue. It however considered Higher Education as the only sector for trade under WTO regime. The meeting expressed concern that "the socio-economic implications of opening the education system globally and making education service for profit needs to be carefully examined. Even making it a full cost paying service has caused social and cultural trauma in many countries including developed countries. Making open to world competition with high cost of education might cause further social-cultural problems. These may be un-manageable in the developing countries and particularly in India. Global competition, full or profit cost pricing of education has several socio-cultural implications and may adversely affect the Constitutional obligations of equity."