The Impact of Transitioning to IFRS on Accounting Education

As the world becomes increasingly interdependent, the need of integrating ideas, culture, technology, and economy is inevitable. Globalization abolishes trade, communication, and cultural barriers to make the world unified. Undoubtedly, globalization is affecting every aspect of our everyday life. For instance, it provides us with the ability to connect and share important information with other people across the world. This process of interacting with one another could be accomplished through Internet, transportation, or through telecommunication. Since globalization is continuously going to affect our lives, one might ask this question: What is the impact of globalization on accounting education?

The constant growth in global markets imposes challenges to U.S corporations, specifically to accounting professionals. As the business world gets smaller, the need to recognize and adopt a unified set of accounting standard is crucial to the success and growth of accounting profession. Such unification also leads to a better economy in the United States. While most U.S corporations are currently following Generally Accepted Accounting Principles (GAAP) that is developed by the Financial Accounting Standards Boards (FASB), more than one hundred countries throughout the world are following International Financial Reporting Standards (IFRS) that is developed by the International Accounting Standards Boards (IASB). The differences in reporting financial information between these two sets of rules make it difficult to financial statement users to analyze and compare a U.S company with a foreign company in the same industry. As a result, transitioning to IFRS enhances consistency and comparability of financial statements and makes the world’s capital markets more efficient. The efficiency in global capital market translates into growth in the U.S economy since it helps lowering the costs of capital for businesses.

Students majoring in accounting, accounting professors, and accounting professionals should not be in denial about the integration of global accounting standards into accounting education. Accounting students and professionals will be directly impacted by the transitioning to IFRS, and promising future will be awaiting them if they are well prepared for the changes that globalization could impose. How to prepare students for the transitioning in education from U.S GAAP to IFRS is challenging. Educators play a key role in that process. Accounting professors will indeed be facing difficulties in locating all the relevant resources related to IFRS, developing a curriculum that is compatible with other accounting courses, and continuously educating themselves in all areas of changes of global financial reporting. What can accounting professors do to incorporate IFRS in the accounting curriculum?

One possible approach is to gradually introduce IFRS concepts and materials into accounting courses. This approach is advantageous to students since there is no need to take additional courses in accounting. Teachers can slowly introduce the differences related to IFRS by giving examples and problems that illustrate these differences, such as giving examples on how to value inventory and other assets under IFRS. Another option on how to teach the new material is to add additional courses to accounting curriculum in colleges and universities. These additional courses would focus on introducing IFRS’ concepts in depth. This option requires students to buy new textbooks as well as taking additional accounting courses. This approach seems unattractive to many students who would have to spend more time in college, which in turn leads to additional costs.

U.S accounting professionals should also be ready for the transition to IFRS in order to be competitive with other foreign accounting professionals who have already grasped global financial reporting. The U.S accountants need further education on the new accounting principle, and this could be accomplished by attending seminars and taking international accounting standards’ classes. As a result of integrating IFRS, accounting professionals will be focusing not only on insuring compliance with standards, but also on enhancing business performance in competitive environment.

The impact of transitioning to IFRS should not be seen as a threat. Accounting students and professionals should position themselves to take advantage of the new career opportunities that this transition is creating both in the U.S and abroad. Enhancing and developing accounting skills help both students and accountants to succeed in this competitive world. Certainly, the key to overcoming challenges imposed by integrating IFRS into accounting education is preparedness. Preparing accounting students for these changes is very important, otherwise when the transition of global reporting standard takes place, there won’t be well experienced accountants to perform the jobs, which could lead to loss of U.S jobs and outsource accounting jobs to foreign countries.

Making Monopoly Better by Youth Financial Education

From an early age, we are taught the wrong things about money and business. Consider the very popular board game Monopoly(R). The game was developed by an engineer at the beginning of the 20th century. In a world of Robber Barons and at the genesis of Scientific Management as a management science, it is possible that a strictly win-lose game is an accurate teaching tool about business. To me, this is a grossly inaccurate way to teach young people about business in a Knowledge Economy, where success is much more about fostering cooperation, sharing ideas and mutual success. Today’s business environment is all about fostering win-win relationships. It’s a great time to be running a business.

I love Monopoly(R) but I have found a few minor rule changes can make it a much more accurate depiction about business today. It also makes the game move more quickly and allows for teaching lessons of negotiation and the art of creating win-win solutions in business.

Rule 1) All rents are paid by the bank

Rents are not paid by other players. When a player lands on another player’s property, this simulates the market giving buying signals to the owning player.

Rule 2) Making Payroll

Every time a player passes “Go”, the player must pay 10% of the purchase price of all owned properties (both mortgaged and unmortgaged). This simulates making monthly payroll and teaches the player the importance of cash-flow management.

Rule 3) Partnered Ownership.

Players can partner to form monopolies and divide the proceeds as agreed. Property ownership is no longer an attrition game. Deal making is encouraged much earlier in the game. In the traditional game, many players wait until nearly all the properties are acquired to begin making deals, which draws the game out. In business, jumping on opportunities quickly is vital to success.

Rule 4) Private Lending

Players may lend money to other players under whatever terms mutually agreed upon. Successful business people know that a lack of money is rarely an obstacle when the opportunity is great. Part of the art of deal making is assembling the team that has all the necessary resources. Often, one party brings funding.

Rule 5) Ending the Game

The game ends when the last hotel is sold and therefore, the market has achieved “saturation”. This teaches the importance of taking action quickly and encourage deal making as soon as possible.

A few simple rule changes like these can reinvent Monopoly(R) and make it a much better learning tool.

Ancient Indian Education and Ethics – Its Relevance Today

We are here to critically understand the relevance of Ancient Indian education system in the modern time. Has the modern education ethos has helped to understand the Indian society. Do we want to become original thinkers again or remain in the present system which breeds mediocrity? India need to think carefully how much foreign system of education has helped her. Time has come to go back to high level of education which will produce thinkers.

Basis of Indian education has been learning and understanding. It became just memorizing after countless invasions. India was the most prosperous nation in the world in the ancient times. It believed in exploitation of the natural resources just that much which was needed. Excessive exploitation of natural resources was not done nor was it encouraged. In India people worship nature: plants, wind, fire, water, sun and so on. This proves the respect it gave to all the living plants and animals on the Earth. In Hindu religion it is said that over exploitation of the sea, should be avoided and that is known as “samudramanthan.” Giving education was considered as noble job, a solemn duty of the teacher and he should not expect remuneration from the students. A teacher used to be dedicated and did take teaching as a mission.

Academics also helped to reform the societies. We could recall the contribution made by the great economics teacher of Takshashila and Nalanda Universities; Chankaya who realized that for economic development in the region it was necessary to make an undivided nation: India. He helped Chandragupta to establish the Mauryan Empire which ruled the entire subcontinent and beyond. This empire in recent time gave the system that gave us the ethical standards which Indians value even now. The education standards were high and people came from far lands to study all streams of subjects here in India. Indians also worship goddess of education “Saraswati.” Even today it is celebrated with great fanfare.

Hindus do have a function where the child is introduced to learning and that is the culture of India. Indian society is based on education. People in education are given the highest position in society called Brahmins. In ancient times one had to work very hard to become a Brahmin. In those days it was not by birth. One had to take that profession then only he could become a Brahmin. The Brahmin could not take money to give education. Education in ancient India was free to all. The kingdom would fund education. India is a country which has low literacy but high education. People know about life, nature, plants, and its importance and so on.

Indian education system was based on the principle of total development; mind and emotions. Indian system paid great emphasis to development of ethical sole and therefore, introduced brahmacharya system. During this period a student is supposed to learn only. Indian system gave emphasis to learning through practice. It was indeed based on religious practices and religious acts. One must appreciate that religion in those days was just a way of life hence, no conflict with education. One had to follow a strict way of life which one has to still follow. Athavaveda an ancient book talks in detail the education part; the system and methods to be followed.

It however, had some defects. Education was restricted to those who deserve and was not available to all. Second it was Guru (teacher) centric i.e. for every thing one had to depend on the guru and his knowledge was considered perfect. Buddhism democratized the education by allowing all to study. This helped to spread education and institutionalise education by forming Universities. Buddhism did not deviate from Hindu system of imparting education but made it broad-based. Here again educators and students had to be religious people and had to follow a strict rules. Even here it was not fully devoid of old Guru System. Even Buddha said “Buddham saranam gachchami” (Come to Buddha to get enlightenment). Mind you, in ancient times the great saints did research on their own and developed body of knowledge which was in contrast to what Buddha said. However, he challenged the system of concentration of knowledge in few hand. This might have diluted the quality of knowledge but this improved the understanding of the people in general in India.

This also developed a bond among people of India which is keeping this country together. This is the secret of unity in diversity of India. A diverse country became one population having same principle of life that is achieving mokshya (eternal bliss).

Indians always paid great importance to education which would improve the ethical standard of the population. Resilience of ancient Indian education system was proved again and again. Since the early stages of foreign invasion India lost all its material wealth but not the Indian ethos and superiority of our (Arian) culture and believes. This was possible because of the foundation of Indian education system. Others talk about Ethics but Indians practice through education.

Aims of the Indian System as I think were:

1. The direct aim was to make all students fit to become useful members of the society so that they could follow the duties of all other Ashrams of life faithfully.

2. The aim was to make firm and good character through moral values.

3. The Indian education system made a distinction between mere scholarship and total education.

4. The aim of the system was development of total personality.

5. Next was inculcation of civic and social duties. India in ancient time was a society mainly governed by social laws which gave us our strength. It is the only society where the social system of conducting business was so strong and independent that we survived in spite of foreign invasion and rule.

6. Indian education promoted social efficiency and happiness. We all know in our ancient books there are examples of people helping the society.

7. Ancient education system taught preservation of national heritage and culture hence we still have a culture different from all other societies. This still remains our strength and some day we will be able to re-establish our national pride. This has given us the unbroken continuity since the ancient times. It is the strength of our ancient education that we survive as a nation.

Then the question is where did we go wrong? Our education system got encased in a shell for it had to be protected from foreign influence. This violent massacre of our culture by foreign invaders made us extremely introvert. The openness of our society was lost and formal education became the domain of few. This destroyed the ability of our academia to expand knowledge. The burning of our established centers of education made people scared. The mass lost the desire to learn because they did not value home-grown knowledge. People drifted from formal learning process and this gave way to all sorts of raw practices in our society. Indian society lost the basic ability to acquire and take advantage of knowledge. The body of knowledge became foreign which was a rare commodity only the rich could afford. The British rule took advantage of this void and introduced a system to suit needs of the Empire. The system did not encourage beyond copying. This practice is still prevalent in Indian education system. It discourages boys from having their own independent opinion on a subject.

We stopped learning and all our ancient texts were being considered as part of religion. We should re-design our education system incorporating the main ethos of our time- tested old system with new knowledge. We must reintroduce the concept of self-control which has been there in our society. This may make our people to appreciate need for ethical standards. Yes, let us go back to the relationship that existed between education and society defined by our age-old tested system. The quality of some of the books written 2500 years ago or beyond is so high that people of today can not write. That was the level of our original research why and when we lost that ability is a matter of concern even now. We must revive that and rebuild the education system in India as we want it; the total development. Copying of the west has not helped and it shall not help in future this has to be recognized once for all. We believe in the Ethical values of the society and that can not be compromised at any cost. Society has lost thousands of years and let us not loses further time in search of right education for India.

Dr Aloke Chakravartty

Dean

School of Management

Brainware

00919230527596

India’s Move to Right to Education

BACKGROUND.

It was Saturday afternoon; the world seemed to be on vacation but me, as I was busy serving guests at a lunch party at my masters’ residence. Chatting and laughing was loud enough to be heard in every nook and corner of the house. But those were of least concern to me, because I had to respond to every single call for any requirement at the very word of the guests or the master in particular. It was 2009, and I was just seven, wearing a sweater and a half pant, watching a bunch of people boasting about the achievements of their wards and trying to prove ones child better than the other. When suddenly, an old man read from a magazine that the government was to pass a new act namely, Right to Education Act. But to me those routine talks about the household work made more sense than this new coming up topic, because neither I could read or understand there high-level conversation, which had diverted there talks from their children, on top of that I didn’t even understand, what the word ‘right’ meant. That elderly fellow said something like…

History of the Act:

The Free and Compulsory Education Bill 2003 was the first attempt of the Central government to draft a comprehensive legislation on education after the 86th Constitutional Amendment that made education a fundamental right. The Bill was an excellent example of bureaucratic empowerment, creating up to 6 levels of various authorities to ensure the provision of free and compulsory education. Furthermore, the reservation of up to 25% of the private school seats for the economically backward students to be selected by these authorities ensured that the Bill was a throwback to the old licence-permit-raj regime. Following widespread criticism, the Bill was discarded.

The Right to Education Bill 2005 is the second attempt by the Central government to set the education system right. Some of the important provisions of the Bill:

• Promises free and compulsory education of equitable quality up to the elementary level to all children in the age group of 6 to 14.

• Mandates unaided private schools to reserve up to 25 percent of the seats for students from weaker sections. The schools will be reimbursed by the lower of the actual school fee or per student expenditure in the government school. The aided schools will reserve “at least such proportion of their admitted children as its annual recurring aid bears to its annual recurring expenses subject to a minimum of 25 per cent.”

• Requires all remaining students to be accommodated by opening new government schools and within three years of the passage all students to have a school to go within their own neighbourhood.

• Forms School Management Committees (SMCs) comprising parents and teachers for state schools and aided schools. The SMCs will own the assets of the school, manage the accounts, and pay salaries.

• Establishes a National Commission for Elementary Education to monitor the implementation of the Bill, State Regulatory Authorities to address grievances under the Bill, and several ‘competent authorities,’ ‘local authorities,’ and ’empowered authorities’ to perform a vast number of regulatory functions and meet out punishment to defaulters.

• Assigns all state school teachers to particular schools from which they will never be transferred-creates a school-based teacher cadre.

The finance committee and planning commission rejected the Bill citing the lack of funds and a Model bill was sent to states for the making necessary arrangements.

INTRODUCTION

As is evident, even after 60 years, universal elementary education remains a distant dream. Despite high enrolment rates of approximately 95% as per the Annual Status of Education Report (ASER 2009), 52.8% of children studying in 5th grade lack the reading skills expected at 2nd grade. Free and compulsory elementary education was made a fundamental right under Article 21 of the Constitution in December 2002, by the 86th Amendment. In translating this into action, the `Right of Children to Free and Compulsory Education Bill’ was drafted in 2005. This was revised and became an Act in August 2009, but was not notified for roughly 7 months.

The reasons for delay in notification can be mostly attributed to unresolved financial negotiations between the National University of Education Planning and Administration, NUEPA, which has been responsible for estimating RTE funds and the Planning Commission and Ministry of Human Resource and Development (MHRD). From an estimate of an additional Rs.3.2 trillion to Rs.4.4 trillion for the implementation of RTE Draft Bill 2005 over 6 years (Central Advisory Board of Education, CABE) the figure finally set by NUEPA now stands at a much reduced Rs.1.7 trillion over the coming 5 years. For a frame of reference, Rs.1 trillion is 1.8% of one year’s GDP.

Most education experts agree that this amount will be insufficient. Since education falls under the concurrent list of the Constitution, financial negotiations were also undertaken between Central and State authorities to agree on sharing of expenses. This has been agreed at 35:65 between States and Centre, though state governments continue to argue that their share should be lower.

KEY FEATURES OF THE ACT INCLUDE:

1. Every child from 6 to 14 years of age has a right to free and compulsory education in a neighbourhood school till completion of elementary education.

2. Private schools must take in a quarter of their class strength from `weaker sections and disadvantaged groups’, sponsored by the government.

3. All schools except private unaided schools are to be managed by School Management Committees with 75 per cent parents and guardians as members.

4. All schools except government schools are required to be recognized by meeting specified norms and standards within 3 years to avoid closure.

On the basis of this Act, the government has framed subordinate legislation called model rules as guidelines to states for the implementation of the Act.

The family, I had been working for, (walia family) had always been caring for me, with occasional slaps and abuses, to which I had become accustomed to and accepted them as a part and parcel of my monthly income of 700 Rs along with square meals and the discarded cloths of the children to the master. But then that was my life……bhaiya and didi (son and daughter to the master) were both elder to me by 4 or 5 years respectively and during my free time often played along with me, but again I was reminded of my being a servant whenever I forgot that…they had thought me to read and write my name in Hindi, which I always kept scribbling at the corners of the walls which resulted in a colour change of my cheeks to red from white, whenever caught. That Act being the burning topic of those days always managed to occupy some space at the front page of every news paper, which further became a topic of early morning drawing room discussion for the family as it was that day and just like every normal citizen he also started which his speech, with the critique of right to education act and its loop holes….

LOOPHOLES IN THE ACT

The Act is excessively input-focused rather than outcomes-oriented. Even though better school facilities, books, uniforms and better qualified teachers are important, their significance in the Act has been overestimated in the light of inefficient, corrupt and unaccountable institutions of education provision. Then the Act unfairly penalises private unrecognised schools for their payment of market wages for teachers rather than elevated civil service wages. It also penalises private schools for lacking the infrastructural facilities defined under a Schedule under the Act. These schools, which are extremely cost efficient, operate mostly in rural areas or urban slums, and provide essential educational services to the poor. Independent studies by Geeta Kingdon, James Tooley and ASER 2009 suggest that these schools provide similar if not better teaching services when compared to government schools, while spending a much smaller amount. However, the Act requires government action to shut down these schools over the coming three years. A better alternative would have been to find mechanisms through which public resources could have been infused into these schools. The exemption from these same recognition requirements for government schools is the case of double standards — with the public sector being exempted from the same `requirements’. By the Act, SMCs (school management committees) are to comprise of mostly parents, and are to be responsible for planning and managing the operations of government and aided schools. SMCs will help increase the accountability of government schools, but SMCs for government schools need to be given greater powers over evaluation of teacher competencies and students learning assessment. Members of SMCs are required to volunteer their time and effort. This is an onerous burden for the poor. Payment of some compensation to members of SMCs could help increase the time and focus upon these. Turning to private but `aided’ schools, the new role of SMCs for private `aided’ schools will lead to a breakdown of the existing management structures. Teachers are the cornerstone of good quality education and need to be paid market-driven compensation. But the government has gone too far by requiring high teacher salaries averaging close to Rs.20,000 per month. These wages are clearly out of line, when compared with the market wage of a teacher, for most schools in most locations in the country. A better mechanism would have involved schools being allowed to design their own teacher salary packages and having autonomy to manage teachers. A major problem in India is the lack of incentive faced by teachers either in terms of carrot or stick. In the RTE Act, proper disciplinary channels for teachers have not been defined. Such disciplinary action is a must given that an average of 25 percent teachers are absent from schools at any given point and almost half of those who are present are not engaged in teaching activity. School Management Committees need to be given this power to allow speedy disciplinary action at the local level. Performance based pay scales need to be considered as a way to improve teaching.

The Act and the Rules require all private schools (whether aided or not) to reserve at least 25% of their seats for economically weaker and socially disadvantaged sections in the entry level class. These students will not pay tuition fees. Private schools will receive reimbursements from the government calculated on the basis of per-child expenditure in government schools. Greater clarity for successful implementation is needed on:

• How will ‘weaker and disadvantaged sections’ be defined and verified?

• How will the government select these students for entry level class?

• Would the admission lottery be conducted by neighbourhood or by entire village/town/city? How would the supply-demand gaps in each neighbourhood be addressed?

• What will be the mechanism for reimbursement to private schools?

• How will the government monitor the whole process? What type of external vigilance/social audit would be allowed/encouraged on the process?

• What would happen if some of these students need to change school in higher classes?

Moreover, the method for calculation of per-child reimbursement expenditure (which is to exclude capital cost estimates) will yield an inadequate resource flow to private schools. It will be tantamount to a tax on private schools. Private schools will end up charging more to the 75% of students – who are paying tuition’s – to make space for the 25% of students they are forced to take. This will drive up tuition fees for private schools (while government schools continue to be taxpayer funded and essentially free).

Reimbursement calculations should include capital as well recurring costs incurred by the government.

By dictating the terms of payment, the government has reserved the right to fix its own price, which makes private unaided schools resent this imposition of a flat price. A graded system for reimbursement would work better, where schools are grouped — based on infrastructure, academic outcomes and other quality indicators — into different categories, which would then determine their reimbursement.

Quality of Education

The quality of education provided by the government system remains in question. While it remains the largest provider of elementary education in the country forming 80% of all recognized schools, it suffers from shortages of teachers, infrastructural gaps and several habitations continue to lack schools altogether. There are also frequent allegations of government schools being riddled with absenteeism and mismanagement and appointments are based on political convenience. Despite the allure of free lunch-food in the government schools, which has basically turned the schools into a “dhaba” and school teachers to “chefs”, many parents send their children to private schools. Average schoolteacher salaries in private rural schools in some States (about Rs. 4,000 per month) are considerably lower than that in government schools. As a result, proponents of low cost private schools, critiqued government schools as being poor value for money.

Children attending the private schools are seen to be at an advantage, thus discriminating against the weakest sections, who are forced to go to government schools. Furthermore, the system has been criticized as catering to the rural elites who are able to afford school fees in a country where large number of families live in absolute poverty. The act has been criticized as discriminatory for not addressing these issues. Well-known educationist Anil Sadagopal said of the hurriedly-drafted act:

“It is a fraud on our children. It gives neither free education nor compulsory education. In fact, it only legitimizes the present multi-layered, inferior quality school education system where discrimination shall continue to prevail.”

For me this new topic was like Ramayana being recited in the house, although Ramayana was still Hindi, but this was complete alien…it was Wednesday afternoon and the family members were all taking rest when I decided to run away from that house, and then actually did…but when was back home I was scolded brutally by my father who said ‘here comes one more, person with his mouth wide open, good for nothing creature’. After few days, I was as well enrolled in local village school, which served lunch to every student who attended the school. But the food wasn’t easy here too, every pupil was made to cook food and wash dishes, the left out time was utilized in fulfilling the desires of the school teacher. I did everything in the school but study. But my sister was not as lucky as me, although for sake of attending school, she was only enrolled in there but the reality was that she hardly attended any classes due to engagement in the household work, as that was more important and education for marriage than that what was written the school books. The only day we had a feast was when inspection was on the calendar. I did wanted to study but my pockets didn’t allow me, I always pondered but couldn’t make out what was wrong with my school when compared to those big ones in the cities but the answers were nowhere for me……

THINGS WHICH CAN BE DONE FOR THE IMPROVEMENT.

The RTE Act has been passed; the Model Rules have been released; financial closure appears in hand. Does this mean the policy process is now impervious to change? Even today, much can be achieved through a sustained engagement with this problem.

Drafting of State Rules

Even though state rules are likely to be on the same lines as the model rules, these rules are still to be drafted by state level authorities keeping in mind contextual requirements. Advocacy on the flaws of the Central arrangements, and partnerships with state education departments, could yield improvements in at least some States. Examples of critical changes which state governments should consider are: giving SMCs greater disciplinary power over teachers and responsibility of students learning assessment, greater autonomy for schools to decide teacher salaries and increased clarity in the implementation strategy for 25% reservations. If even a few States are able to break away from the flaws of the Central arrangements, this would yield demonstration effects of the benefits from better policies.

Assisting private unrecognized schools

Since unrecognized schools could face closure in view of prescribed recognition standards within three years, we could find ways to support such schools to improve their facilities by resource support and providing linkages with financial institutions. Moreover, by instituting proper rating mechanisms wherein schools can be rated on the basis of infrastructure, learning achievements and other quality indicators, constructive competition can ensue.

Ensure proper implementation

Despite the flaws in the RTE Act, it is equally important for us to simultaneously ensure its proper implementation. Besides bringing about design changes, we as responsible civil society members need to make the government accountable through social audits, filing right to information applications and demanding our children’s right to quality elementary education. Moreover, it is likely that once the Act is notified, a number of different groups affected by this Act will challenge it in court. It is, therefore, critically important for us to follow such cases and where feasible provide support which addresses their concerns without jeopardizing the implementation of the Act.

Awareness

Most well-meaning legislation’s fail to make significant changes without proper awareness and grassroot pressure. Schools need to be made aware of provisions of the 25% reservations, the role of SMCs and the requirements under the Schedule. This can be undertaken through mass awareness programs as well as ensuring proper understanding by stakeholders responsible for its implementation.

Ecosystem creation for greater private involvement

Finally, along with ensuring implementation of the RTE Act which stipulates focused reforms in government schools and regulation for private schools, we need to broaden our vision so as to create an ecosystem conducive to spontaneous private involvement. The current licensing and regulatory restrictions in the education sector discourage well-intentioned ‘entrepreneurs’ from opening more schools. Starting a school in Delhi, for instance, is a mind-numbing, expensive and time-consuming task which requires clearances from four different departments totaling more than 30 licenses. The need for deregulation is obvious.

Today, I am 15 in age, out of school and again away from home, working only to earn hand to mouth, to boast that am literate I have gained my elementary education but the fact is, I only know how to write my name in Hindi along with few more things and that’s not because of the school but I owe that to Mr walias’ children. And today, the biggest question for me is, why should anyone get enrolled in a school to gain elementary education, when that education is doing no good to him in the future? After 14 I had to leave the school, in spite of me being still in standard four, I couldn’t support my studies further so ultimately all my efforts went in vain, leaving me all to myself, just to ponder what should I do????

CONCLUSION:

The Act has failed in identifying what actually ails our education system and so not surprisingly it offers solutions that are either redundant or counter-productive. Its unrelenting faith in the bureaucracy and its seething animosity towards private initiatives in education reflect a bygone era. However well-intentioned the government may be, the central planning approach cannot serve the future needs of India. It has failed in economics and it cannot do any better in education. The promises made in the Bill then amount to political grandstanding.

The fulfillment of the constitutional obligation does not necessarily require the state to build and manage schools. It can discharge its obligation successfully by restricting its role to the provision of financial resources to those who cannot afford and enabling all parents to make informed choices. The education system should be designed in such a manner that there is competition and choice. The schools should compete with each other to attract students and the students should in turn have the freedom to choose their school. This would ensure the best allocation of scarce resources and an improving quality of education.

One way for the government to finance education that would guarantee access to school and would create right incentives for improving quality is to fund government schools on the basis of number students in the school. Instead of a lump sum grant, the government fixes a per student charge, which multiplied with the number of students, determines the grant that a school would receive. The state can also provide financial support to students in the form of a voucher that can be redeemed only at educational institutions to cover the expenses of education. With this education voucher, the student would be in a position to choose from amongst the various public and private schools.

This would ensure competition amongst schools and thus good quality education. Furthermore, the financial resources of the state would be put to more effective use by targeting them towards the poor only and by optimally utilizing the management skills of the private sector. There is no doubt that privately managed institutions have made a tremendous contribution to the cause of education, and in the last decade particularly the unrecognised private schools for the poor. It would be a tremendous loss of social capital if these schools were forced to close down. If the government opens a new school and runs well, there would be no reason for parents to send their children to a fee-charging, unrecognised school.

They would go out of business automatically. One more reason not to outlaw these schools with the passage of the Act is the chaos and harm it would create since they will have to close down well before the government will be able to open new schools across the country. In its zeal to fulfill its constitutional mandate, the government would achieve the opposite.

Instead of treating private initiative as inherently corrupt and exploitative, the government should channel the private enterprise to help expand access and improve quality of education. It has been done with great success in many areas.a

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