The Demonetization of Indian Education

Very recently, the Indian government announced a demonetization measure by removing 500 and 1000 rupee notes as legal tender, ostensibly to combat cash hoarding (black money) and counterfeiting (which was helping fund terror). Of course, we have seen the impact of fiscal demonetization on the economy in the short term, though the long term prognosis is yet to emerge.

The immediate impacts that I see on the system of education in our country are as follows (not an exhaustive list):

  • Slowdown in the rate of growth of private schools. Slowdown in money chasing real estate, regulatory clearances, investments and siphoning of money in Education, at least in the short to medium term. This may be accompanied by a corresponding growth/investment in the public system.
  • The push to online payments at school. I believe more schools will now start accepting money in non-cash forms. This means a fillip to existing fee payment, school uniform and bookstore platforms.
  • The increased visibility of the coaching institution and the individual tutor. More and more tuition teachers and coaching schools (at one point claimed to be a USD 23 bn parallel system expected to be about 40 bn USD in 2015) will move to online payments.
  • Lowered spends on research. Research shall be impacted, with owners who are already handicapped by ‘marketing spends’ kind of vision on research, holding back on new projects. In fact, all facile investment will reduce.
  • Higher international collaboration. Cleaner international money will flow and it is time to leverage that for maximal impact.

On another note. What would be the equivalent of currency in education? Is there a parallel with the black money and counterfeiting that is happening with regular currency, but in the educational market? Is there a ‘currency’ of the educational market? And therefore, if a demonetization of that ‘currency’ has to happen for similar reasons, what would that look like?

If we look at ‘currency’ in the educational context, it would be most likely be constituted by marks or scores (more literally marksheets) and certificates (such as degree certificates and work certificates).

A quick look around clearly shows the menace of fake certificates. The screening firm, First Advantage, found that 51% of the prior experience certificates were fake globally, India being a notorious example. Then there are websites advertising fake education certificates, sometimes in connivance with officials in the system, it seems, all over the world. Many instances abound in India as well.

What would be the equivalent of educational black money? Little harder to trace an equivalent there if one is not probing the real currency angle. But let us look at it from the lens of employability, the argument being that the degrees or certificates that provide a social and economic return to the economy are ‘white’ educational currency, while the rest are ‘black’ educational currency.

Less than 20% of our graduates are employable. In that sense, the rest are unwittingly just hoarding ‘black’ degrees and certificates. Institutions are hoarding degree certificates, sitting on a stock of certificates for the foreseeable future depending upon their capacity and their authorization by the government.

There may be more interpretations, for example, extending to institutions who are building capacity they cannot fill or usefully utilize.

So what would happen if we made a move to demonetize this education currency?

For example, de-recognize all degrees for a year and make it mandatory for anyone holding a degree to prove its authenticity? Or for all institutions to be stripped of its ability to provide a degree certificate till they can prove that they have a structure in place and systems to ensure employable graduates and provide real data on their current state of being able to generate ’employability’? Or breakup degrees into smaller chunks that have to be individually certified? Or for government to stop mandating this educational currency, in all or part, for their own recruitment?

A move like that would be inconvenient for most, but may have similar (to fiscal demonetization) longer term effects. It may push a greater academia-industry interaction, move us to digital certificates and transparent scoring mechanisms, bring more professionals into the running of institutions and set up fences against black marketeers entering the education space – all of which sound like the right things to do, whatever the process.

One thought on “The Demonetization of Indian Education

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  1. For a student, the real BLACK are the guidebooks from publishers that allows a shortcut to student to rote a concept without understanding. This creates a gap in learning, which itself is BLACK.

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