tailieunhanh - ECONOMIC REFORMS AND FINANCING HIGHER EDUCATION IN INDIA

The ongoing post-financial crisis correction continues to weigh heavily on economic activity and employment in the EU. In the first half of 2012, domestic demand has continued to contract while the global economy has also slowed down, and consumers as well as firms have become more pessimistic about the near-term perspectives. The EU economy has dipped back into contraction in the second quarter with further weakness expected in the second half of the year. Unemployment has risen and cross-country divergences have widened. Yet, compared with the. | ECONOMIC REFORMS AND FINANCING HIGHER EDUCATION IN INDIA P. Geetha Rani Associate Fellow National Institute of Educational Planning and Administration 17-B Sri Aurobindo Marg New Delhi - 110 016. Telephone 2696 2120 2696 21216 extn 206 Fax 91-11-2685 3041 2686 5180 E-mail id geetharani@ ECONOMIC REFORMS AND FINANCING HIGHER EDUCATION IN INDIA P. Geetha Rani National Institute of Educational Planning and Administration 17-B Sri Aurobindo Marg New Delhi - 110 016. Abstract It is unambiguous that Policy of the Government of India now encourages augmentation of resources for covering a larger portion of cost of higher education. Recent policy changes in India often favour to divert resources from higher to primary level of education and favours for full cost recovery from students even in public higher education institutions. Cost recovery measures comprising of increase in fees student loans currently operated by commercial banks and privatisation will exacerbate inequality in the society. Indeed there seems to be a nexus between the present student loan scheme and full cost recovery. Increasing reliance on student fees student loans and privatisation without considering the low-income groups may produce regressive effects in the society. Under the deep waves of globalisation and competition important economic rationale for government funding especially for higher education is neglected. Public support for higher education remains essential to ensure a balanced achievement of educational and social missions apart from surviving in the knowledge-based society. It is essential that funding sources must be diversified but cost-sharing with students has social and political limits and excessive commercialization of higher education should be forbidden. 1 ECONOMIC REFORMS AND FINANCING HIGHER EDUCATION IN INDIA I. INTRODUCTION Knowledge is the driving force in the rapidly changing globalised economy and society. Quantity and quality of highly

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