Arjun's U-turn, to steer bill for FDI in Higher Education

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>>>The dominant competitive weapons of the twenty first century will be the education and skill of work force>>>>> Dear Friends, Before reading this article,Please understand “INDIA EDUCATION Statistics ”…. Total Amount spent on education: 91000 crores per year. The education cess will collect another Rs: 7000 crores per year. This is about 3.3 % of GDP. 70% of all graduates are B.A. or Art gradates ( No. of college in India – 17963 ). Is this relevant today? Most of these so called gradates are not-employable. India has about 6000 vocational schools (Ministry of HRD), while china has about 500000 senior secondary vocational schools. China has about 900 universities, while we in India have 362 universities. USA &

Japan have 3650 & 4000 universities respectively. India has 300 millions unemployed able bodies between the ages of 18 to 50, but they have no skill sets and therefore not employable! Employers in India are facing a huge shortage of skill man power. Because of the licence Raj in higher and technical education, it is estimated that nearly 110000 to 120000 students leave India every year for study abroad. At any given time these 350000 students cost the country a foreign exchange outflow of nearly US $ 10 billions per year or nearly Rs. 46000 crore per year,enough to build 40 IIM's or 40 IITs per year. source: ……..….and morefrom i watch: www.wakeupcall.org Focus: >> Effective & Efficient way of "resource allocation" as well as "resource leverage & accumulation". >> Need : A sound feed back channel – Check at bottom of the pyramid. IF SOLUTION IS “YES”! WHY SO MUCH CONSTRAINS! A QUESTION MARK ON SYSTEM MENTAL MODEL? and read this following artcle ... warm regrds & thanks AJAY SINGH NIRANJAN Arjun's U-turn, to steer bill for FDI in Higher Education NEW DELHI : Cornered by the Group of Ministers (GoM), the Minister for Human Resource Development Mr Arjun Singh has finally agreed to steer a bill in the Lok Sabha, allowing foreign players to open campus in India. The announcement in this regard was made by Commerce and Industries minister Kamal Nath on November 28. Addressing the India

Economic Summit, organised by CII and World Economic Forum (WEF), the minister said that at present "over 120,000 students annually go abroad for higher studies and if we can even retain 60 per cent of the number then the scarcity of skilled manpower would be addressed to some extent,” he said. The proposed bill is being drafted to allow foreign investment in higher education after studying the need for quality higher education institutes, Kamal Nath said and added that the bill will be finalised within one month and the regulations for FDI will be formulated in consultation with all the stakeholders. The bill, approved by the union cabinet on November 28, will be tabled in the Budget session. "There is consensus within the government for looking at the

prospect of FDI in higher education given the level of brain drain in the country. We are studying the necessary safeguards that need to be put in place," Kamal Nath said. The minister added that the new institutes which will come into existence as a result of the bill which will open new opportunities in the sector underlining the need for urbanisation of the rural educated youth. "What we are seeing today is that a number of people who have graduated in the hinterland of the country are a misfit in the urbanised world. There is an acute need for strengthening the system in a way that the process of urbanisation seeps into the rural parts as well," he said. Though he ruled out the bill for the current winter session, it is likely to be tabled in the coming budget session. On the issue of deterrants on the way Mr Kamal Nath said that some amount of resistance is always there in any reform activity but the government is convinced that the education sector needs to be opened up to foreign investment gradually. "Whatever opposition we face we are convinced that there is need for this and will push the bill to the best of our ability," he added. Group of Minister's suggestion Earlier on September 21 the Group of Ministers (GoM) had urged Mr Arjun Singh to soften his stand

on FDI. According to Commerce Ministry sources Mr Arjun Singh had a tough time defending his ministry’s stand on the entry of foreign universities to India at the GoM meeting on September 21. The GoM, constituted to look into the Foreign Education Providers Regulation Bill (which once cleared will pave the way for foreign universities to set up institutions in India), is understood to have asked the minister to go a bit “soft” and “adhere to a liberal approach”. Mr Singh's belligerent stand was obvious from his comments made to

the press a day before the GoM meet insisting on reservation policy for foreign universities. On September 20 Mr Singh had strategically spelt out his ministry's stand on the FDI saying that those setting up foreign campuses would have to follow the national policy like reservation since these are enshrined in the Constitution. "People cannot be above the Constitution," he had said. The GoM was to meet on September 17, but was postponed due to non-availability of some members. The national policy being insisted by HRD ministry goes beyond mere reservation. It

also includes regulation of fee and admission by UGC and ensuring that foreign education providers do not indulge in profit-making.While arguing his ministry's case Mr Singh cited examples from China, Malaysia, Indonesia, Singapore and other countries where foreign education providers go on conditions laid down by the host country. On the other hand, the Commerce Ministry wants flexible conditions and feels that HRD's proposals would not attract foreign education providers.Early this month, commerce ministry released

a consultation paper on foreign education providers that calls for a viable financing model, with a mix of public and private participation.Commerce ministry feels cost recovery through suitable tuition fees and access to loans for students will help alleviate financial constraints faced by higher education institutions.Sources say it might take few more meetings of the GoM to concertise the foreign education provider Bill. In the first meeting held last month, HRD officials gave a detailed briefing. Commerce Ministry pleads for FDI in Higher Education NEW DELHI : Defying

the Left diktat and Arjun Singh's wishes the Ministry of Commerce has put up a 24-page document supporting foreign direct investment in Higher Education. The idea, according to Mr G K Pillai, Special Secretary, Department of Commerce, is to evolve consensus on opening up higher education to foreign investment, even 100 per cent FDI. The document, titled "A consultation paper on Higher Education in India and GATS : An opportunity" pleads for an urgent need of FDI in Higher Education, failing which we would be left in the lurch. As against Leftist lobby's firm stress on state control on Higher Education, the Commerce Ministry document pleads for a balance "between domestic regulation and providing adequate flexibility to such (foreign) universities in setting syllabus, hiring teachers, screening students and setting the fee level." Speaking to reporters here at a conference on services exports, organised by the Confederation of Indian Industry (CII), Mr Pillai had indicated on September 6 that the ministry will soon circulate a discussion paper on liberalising higher education and changing domestic regulations to draw investment in the sector. When asked whether the Commerce Ministry was supporting 100 per cent FDI in higher education, Mr Pillai said: “Why not?” He said the discussion paper has been sent to

the MHRD, universities and other stakeholders for comments. The HRD ministry has been opposing all moves of the commerce ministry to improve its offers on liberalising higher education at the WTO.The Commerce Ministry also wants foreign educational institutions to be given the freedom to determine the salaries of their faculty and fixing fees outside the purview of the University Grants Commission. Putting forward his Department’s argument, Mr Pillai pointed out that India had an outgo of $4 billion on education every year that could be saved by allowing foreign institutes to set up shop in the country. And for that it was important to liberalise certain domestic regulations to attract good institutes, he said. “You cannot expect top-grade institutes like Harvard to come to India

if you control salaries and fees,” he said. The consultation paper would ultimately be submitted for approval to the Cabinet. He noted that nearly $4 billion were being outsourced from India for higher education. Background The issue of FDI in Higher Education was put on hold in August 2004 as the proposal drew a critical reaction from the Left parties which are supporting the limping Congress-led Union ministry. In fact, the Union Minister for HRD, Arjun Singh, stated as much at a press conference here on August 7. Asked how much headway MHRD had made in its plans to allow FDI in higher education, Mr Singh said that he had had second thoughts after the reaction it drew. In an informal interaction with the media soon after taking over, Mr Singh had said that he was open to FDI in higher education. However, the proposal drew a critical reaction from the Left parties and that the MHRD was putting it on the backburner Source : http://www.academics-india.com AJAY SINGH NIRANJAN [ If Problem exists .....Solution can not wait ...Think & Try

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