Emergence of New Capitalist Class and Issues of Market, Merit and Social Justice: The Business and Economics of Higher Education in India
This paper analyses the structural changes in
education sector since the introduction of liberalization policy in
India. This paper explains how the so-called non-profit trusts and
societies appropriated the liberalization policy and enhanced
themselves as new capitalist class in higher education sector. Over
the decades, the policy witnessed the role of private sector in terms
of maintaining market equilibrium. The state also witnessed the
incompatibility of the private sector in inculcating the values of
social justice. The most important consequence of the policy is to
witness the rise of new capitalist class and academic capitalism.
When the state came to realize that it no longer cope up with
market demands, it opens the entry of private sector in higher
education. Concessions and tax exemptions were provided to the
trusts and societies to establish higher education institutions. There
is a basic difference between western countries and India in
providing higher education by the trusts and societies. In western
countries the big business houses contributed their surplus
revenues to promote higher education and research as a
complementary service to society and nation. In India, several
entrepreneurs came up with business motive using education
sector. Over the period, they accumulated wealth at the cost of
students and concessions from the government. Four major results
can now be identified: production of manpower in view of market
demands; reduction of standards in higher education; bypassing the
values of social justice; and the rise of new capitalist class from the
business of education. This paper tries to substantiate these issues
with the inputs from case studies.
[1] Karl Marx, Capital, Vol. I. Progress Publishers, Moscow, 1977, p.
688
[2] R.V. Barrett and D.E. Meaghan, "Postsecondary Education and the
Ideology of Capitalist Production," The Public Sector Innovation
Journal, Volume 11(3), 2010.
[3] Sheila A. Slaughter and L.L.Leslie, Academic Capitalism: Politics,
Policies, and the Entrepreneurial University, Johns Hopkins
University Press, Baltimore, MD, 1997; S.A. Slaughter and G.
Rhoades, Academic capitalism and the new economy: Markets,
state, and higher education, Baltimore, MD: The Johns Hopkins
University Press, 2004; D. Bok, Universities in the Marketplace:
The Commercialization of Higher Education, Princeton, N.J.:
Princeton University Press, 2003; E. Gould, The University in a
Corporate Culture, New Haven, Conn.: Yale University Press,
2003; W. Readings, The University in Ruins, Cambridge, Mass.:
Harvard University Press, 1996.
[4] R.A. Posner, "The Social Costs of Monopoly and Regulation,"
Journal of Political Economy, 83, pp. 807-827, 1975; Anne O
Krueger, "The Political Economy of the Rent-Seeking Society,"
The American Economic Review, 64, pp. 291-303, 1974; C.K.
Rowley, R. D. Tollison and G. Tullock, (eds.), The Political
Economy of Rent-Seeking, Boston, MA: Kluwer Academic
Publishers, 1988.
[5] P. Bardhan, The Political Economy of Development in India,
Oxford: Basil Blackwell, 1984.
[6] J. Dreze and Amartya Sen, India: Economic Development and
Social Opportunity, Delhi: Oxford University Press, 1998; Sharif
Mohammad and John Whalley, "Rent Seeking in India: Its Cost
and Policy Significance," Kyklos, 37, pp. 387-413, 1984.
[7] J.B.G. Tilak, "Higher Education in Trishanku," Economic and
Political Weekly, September 10, pp. 4029-4037, 2005; D. Kapur
and P.B. Mehta, "Indian Higher Education Reform: From Half-
Baked Socialism to Half-Baked Capitalism," Center for
International Development, Harvard University, 2004.
[8] S.N. Mukherjee, History of Education in India, Acharya Bool
Depot, Baroda, 1966; J.P. Naik and N. Syed, A Student-s History
of Education in India, Macmillan, New Delhi, 1974.
[9] Planning Commission, Draft Report of Working Group on Higher
Education, 11th Five Year Plan, Planning Commission,
Government of India, New Delhi, 2007.
[10] MHRD, Annual Report, 2009-2010, Ministry of Human Resource
Development, Government of India, New Delhi; UGC, Higher
Education in India: Issues, Concerns and New Directions,
University Grants Commission, New Delhi, 2003.
[11] Pawan Agarwal, "Higher Education in India: A Need for Change,"
ICRIER Working Paper No. 179, New Delhi, 2006.
[12] Sanat Kaul, "Higher Education in India: Seizing the Opportunity,"
Working Paper No. 179, Indian Council for Research on
International Economic Relations, New Delhi, 2006.
[13] The Indian Express, 8 November 2005.
[14] UGC, Report of the Committee for Review of Existing Institutions
Deemed to be Universities, University Grants Commission, New
Delhi, 2009.
[1] Karl Marx, Capital, Vol. I. Progress Publishers, Moscow, 1977, p.
688
[2] R.V. Barrett and D.E. Meaghan, "Postsecondary Education and the
Ideology of Capitalist Production," The Public Sector Innovation
Journal, Volume 11(3), 2010.
[3] Sheila A. Slaughter and L.L.Leslie, Academic Capitalism: Politics,
Policies, and the Entrepreneurial University, Johns Hopkins
University Press, Baltimore, MD, 1997; S.A. Slaughter and G.
Rhoades, Academic capitalism and the new economy: Markets,
state, and higher education, Baltimore, MD: The Johns Hopkins
University Press, 2004; D. Bok, Universities in the Marketplace:
The Commercialization of Higher Education, Princeton, N.J.:
Princeton University Press, 2003; E. Gould, The University in a
Corporate Culture, New Haven, Conn.: Yale University Press,
2003; W. Readings, The University in Ruins, Cambridge, Mass.:
Harvard University Press, 1996.
[4] R.A. Posner, "The Social Costs of Monopoly and Regulation,"
Journal of Political Economy, 83, pp. 807-827, 1975; Anne O
Krueger, "The Political Economy of the Rent-Seeking Society,"
The American Economic Review, 64, pp. 291-303, 1974; C.K.
Rowley, R. D. Tollison and G. Tullock, (eds.), The Political
Economy of Rent-Seeking, Boston, MA: Kluwer Academic
Publishers, 1988.
[5] P. Bardhan, The Political Economy of Development in India,
Oxford: Basil Blackwell, 1984.
[6] J. Dreze and Amartya Sen, India: Economic Development and
Social Opportunity, Delhi: Oxford University Press, 1998; Sharif
Mohammad and John Whalley, "Rent Seeking in India: Its Cost
and Policy Significance," Kyklos, 37, pp. 387-413, 1984.
[7] J.B.G. Tilak, "Higher Education in Trishanku," Economic and
Political Weekly, September 10, pp. 4029-4037, 2005; D. Kapur
and P.B. Mehta, "Indian Higher Education Reform: From Half-
Baked Socialism to Half-Baked Capitalism," Center for
International Development, Harvard University, 2004.
[8] S.N. Mukherjee, History of Education in India, Acharya Bool
Depot, Baroda, 1966; J.P. Naik and N. Syed, A Student-s History
of Education in India, Macmillan, New Delhi, 1974.
[9] Planning Commission, Draft Report of Working Group on Higher
Education, 11th Five Year Plan, Planning Commission,
Government of India, New Delhi, 2007.
[10] MHRD, Annual Report, 2009-2010, Ministry of Human Resource
Development, Government of India, New Delhi; UGC, Higher
Education in India: Issues, Concerns and New Directions,
University Grants Commission, New Delhi, 2003.
[11] Pawan Agarwal, "Higher Education in India: A Need for Change,"
ICRIER Working Paper No. 179, New Delhi, 2006.
[12] Sanat Kaul, "Higher Education in India: Seizing the Opportunity,"
Working Paper No. 179, Indian Council for Research on
International Economic Relations, New Delhi, 2006.
[13] The Indian Express, 8 November 2005.
[14] UGC, Report of the Committee for Review of Existing Institutions
Deemed to be Universities, University Grants Commission, New
Delhi, 2009.
@article{"International Journal of Business, Human and Social Sciences:64955", author = "Subramaniam Chandran", title = "Emergence of New Capitalist Class and Issues of Market, Merit and Social Justice: The Business and Economics of Higher Education in India", abstract = "This paper analyses the structural changes in
education sector since the introduction of liberalization policy in
India. This paper explains how the so-called non-profit trusts and
societies appropriated the liberalization policy and enhanced
themselves as new capitalist class in higher education sector. Over
the decades, the policy witnessed the role of private sector in terms
of maintaining market equilibrium. The state also witnessed the
incompatibility of the private sector in inculcating the values of
social justice. The most important consequence of the policy is to
witness the rise of new capitalist class and academic capitalism.
When the state came to realize that it no longer cope up with
market demands, it opens the entry of private sector in higher
education. Concessions and tax exemptions were provided to the
trusts and societies to establish higher education institutions. There
is a basic difference between western countries and India in
providing higher education by the trusts and societies. In western
countries the big business houses contributed their surplus
revenues to promote higher education and research as a
complementary service to society and nation. In India, several
entrepreneurs came up with business motive using education
sector. Over the period, they accumulated wealth at the cost of
students and concessions from the government. Four major results
can now be identified: production of manpower in view of market
demands; reduction of standards in higher education; bypassing the
values of social justice; and the rise of new capitalist class from the
business of education. This paper tries to substantiate these issues
with the inputs from case studies.", keywords = "New capitalism, market, social justice, higher
education", volume = "5", number = "1", pages = "96-7", }