Allow private capital in education

The government cannot afford to provide higher education to all the people in the country. It is too costly for the government to do so. The central government spends about 4% of budget expenditure on education, compared to 40% on defence. Historically, the government just did not have enough money to spend on even opening new schools and universities, forget overhauling the entire system and investing in technology and innovation related to the education system. Still, until today, at least on paper only non-profit organizations are allowed to run educational institutions apart from government institutions. Naturally, the good money, coming from honest investors who want to earn from honest but high impact businesses do not get into education sector. Rather, there are crooks, money launderers and politicians opening “private” educational institutions which extract money from the educational institution through creative structuring. The focus is on marketing rather than innovation or providing great educational service – one of the major examples of this being IIPM.

Allowing profit making will encourage serious entrepreneurs, innovators and investors to take interest in the education sector. The government does not have enough money to provide higher education of reasonable quality to all of us, and it has no excuse to prevent private capital from coming into the educational sector.