Is India experiencing an education bubble? What are the implications of it?
The higher education bubble is a hypothesis that "there is a speculative boom and bust phenomenon in the field of higher education and that there is the risk of an economic bubble in higher education that could have repercussions in the broader economy"
According to the theory, while college tuition payments are rising, the rate of return of a college degree is decreasing, and the soundness of the student loan industry may be threatened by increasing default rates. College students who fail to find employment at the level needed to pay back their loans in a reasonable amount of time have been compared to the debtors under sub-prime mortgages whose homes are worth less than what is owed to the bank.In Indian context:
Enrollment at many private colleges and universities declined this year. I know "This year in Telangana state, about 200 engineering colleges are denied admissions stating in-sufficient facilities and this is supposed to boost admission for the well equipped colleges. But, too few students took up admissions and there are still many vacant seats after a reduction of about 30000 seats"
Answer by Priyanka Peeramsetty:
The bubble phenomenon as anticipated, is a hypothesis that "there is a speculative boom and bust phenomenon in the field of education and that there is the risk of an economic bubble in education that could have repercussions in the broader economy (Wikipedia)
It seems obvious because of these factors:
- "Curriculum-Skills" gap – Most of those who receive education are not employable with a definite buffer period of training.
- Commercialization of education: Nursery schools are demanding Jute bags of rupees which is ridiculous and also economically not justifiable.
- International like Institutes-Brand setting: One school/college boasts of world class facilities, the trend goes viral. The reality is just confined to Swimming pools, Glass libraries but not Knowledge transfer.
- Rise of Entrepreneurship: One can become a billionaire in India, thanks to the rise in love for job creation than mere job seeking. Education is not an obligation anymore. If you can hire a right person, Bingo.
- Govt's seeming apathy on Outcomes: ASER report says Majority of Class V students can't read a simple sentence properly or do a basic mathematical function. This assumes a giant picture, as poor parents find Education to be an unwanted burden. And a child labour can be more productive (despite being temporary results). Added, Govt spends way less than even 5% of GDP. That will have serious repercussions of quality.
- U without Q syndrome: Universalisation without Quality. Enough said. Quantity overtakes quality.
- Job bagging capacity: Education (Call it a mere sheet of paper called "Degree") no longer guarantees livelihood. Reason for those millions of Jobless engineers. Some time ago, I read of Engineers and Post graduates applying for a clerk post in Gujarat.
- Sorry state of Training institutes: There is virtually no effective bridge to train the students to make them Industry-ready. ITI's exist. But do not function.
But, Welcome To India.
Education is next to nothing. Parents sacrifice and compromise on their comfortable life style to ensure their kids get decent education.
So, not in the near future we are going to have this bubble.
Methods to combat/avoid this bubble:
- More Govt's patronage
- Change of curriculum centric and Rote learning mechanisms
- Practical exposures. Industrial visits in true sense
- International Collaborations on teaching techniques
- Teacher's training. Very Imp.
- Creation of enough diverse avenues for Job creations.
- Encouraging innovations, R&D.
- Developing scientific temper.
Impact On Indian Economy:
As we exactly can't imagine in what form this might come over, let's assume most of the educational Institutes remain dysfunctional. With no admissions and people not having academic inclinations. This is what I can extrapolate. Caution: Hypothetical max.
- No extraneous expenditures on Education. House hold savings rise first and later on decline, as spending takes the form of primary investments in something else.
- Non-educated students will however need a job. The criteria for qualifications become stressful. The incumbent system of deciding by grades is convenient to them.
- As a result of no priority, the few existing ones, will ahve no incentives to add on to the already existing social and academic infrastructure. Gradually all institutions erode.
- Brain drain increases exponentially. All of the talent will fly for better knowledge.
Comment for new ideas. We can keep appending the list.
A2A, Here you go Jai Parimi !