Education Policy Institute

4401-A Connecticut Avenue, Box 294, Washington, DC 20008
Tel: (202) 244-7535, Fax: (202) 244-7584
Education Exchange
Volume 3, Issue 8 -- August 1999

Focusing on Education Reforms at Your School, in Your State Legislature, and in Congress

In This Issue

Candidates Missing the Point on Education in Campaign 2000

Simple Answer: Competition Works

Education International Concerned About Privatization in Global Market

EPI's Education Quick Facts

Candidates Missing the Point on Education in Campaign 2000

Political campaigns have been growing longer and costlier for many years, but campaign 2000 for the presidency promises to break all previous highs. With the Iowa Straw Poll just past, and media coverage heating up by the day, candidates of both major parties are being pushed to lay out detailed policy platforms not only so voters can be informed, but also as a means for the media to find new angles for coverage.

On the issue of education, an area that has received more publicity than perhaps any other in the last election cycle, we are hearing nothing new from Democrats or Republicans.

Al Gore wants to spend more tax money on new programs expanding preschool opportunities nationwide, pushing for teacher licensing by the teacher-union-dominated National Board for Professional Teaching Standards, and providing teacher technology preparation and Internet wiring for schools and libraries. He adamantly opposes all proposals for the federal government to relinquish education funding or oversight to state and local institutions, and like his friends in the NEA and AFT, he supports "public" school choice, but is opposed to any other kind of educational choice.

The other serious Democratic contender, Bill Bradley, has said little on education so far. Like others in both parties, he emphasizes the need to hold teachers and principals accountable, which will require better teacher training. He also promotes increased use of technology in classrooms, and says we must have national standards.

Republican front-runner George W. Bush supports block grants, charter schools, and school choice. He proposes reforming Head Start to make it more of a reading/early learning program, and diverges slightly from some of his Republican counterparts with his "English 'Plus'" programs for teaching immigrant children English. The "accountability" buzzword crops up time and again in the Bush campaign in relation to education.

Neither John McCain nor Elizabeth Dole has provided much input on his/her education policy preferences to date. Steve Forbes supports tuition tax credits; K-12 education savings accounts; school choice pilot programs; and protections from government intervention for homeschool families.

Some lower tier Republican candidates promote more of what might be deemed conservative cultural issues such as abolishing the Department of Education, passing a constitutional amendment allowing school prayer, and opposing national testing and standards.

What we have noticed is that not one of the serious candidates for the presidency has offered any new education policy proposals. Everything we are hearing has been heated, cooled, and heated again before the public. We would like to see the candidates demonstrate their understanding of, and support for, a competitive education industry.

Perhaps the candidates need to be reminded that a competitive education industry would eliminate the need for government agencies, such as school boards, to resolve many of the individual education issues currently under discussion. For our education system to become competitive, several things need to happen.

  • First, parents must be free to choose the best school for their children.
  • There must be minimal obstacles to entry of new schools, profit and nonprofit.
  • Public schools would grow or fail insofar as they could compete successfully with other schools.
  • Faith-based and for profit schools must not be discriminated against in eligibility for government funding.
  • Home schooling must be allowed to expand.

If schools became competitive, a wide variety of schools would be easily accessible to parents and children.

To be easily accessible, the state, and in a much more limited way the federal government, must not mandate unnecessary obstacles to private schools. For example, laws that require schools to accept pupils by lot or to accept any students who apply inhibit the kind of specialization that would better meet the needs of parents and pupils. In fact, it would be desirable if governments enacted tax credits which follow the student, and for companies starting new schools.

With sufficient options, parents could expect the best educational results for their children. If parents and students were not satisfied, they could take their customer-children elsewhere -- to the competition!

Excellence in education for our children should not be a partisan concern. The Education Policy Institute encourages Republican and Democrat candidates alike to foster a competitive education industry. Such an industry would solve many issues that are currently resolved by governments in a haphazard way.

When you have an opportunity to question candidates -- presidential, congressional, state legislative, county, municipal, school board -- demand that they address these issues.

Simple Answer: Competition Works

In answer to a recent question about whether there is really any proof that competition works, EPI offers this seemingly simplistic answer. Often, we ignore the evidence that is right in front of our eyes.

In fact, we have thousands of examples that competition works. Each time you as a consumer decide to eat out with your family, you have almost innumerable options: a place specializing in American cuisine, Chinese, Japanese, Ethiopian, KoreanŠwhatever. Some restaurants offer many varieties within each of these, and more.

Food service providers operate in a true competitive environment; many sole proprietor (family run) cafes compete with chain franchises (McDonalds, Kentucky Fried Chicken) that compete with corporate sponsored restaurants such as Applebees.

By specializing, some restaurants believe they have a competitive edge. Likewise, quality assurance is critical to repeat business, as is the constant development of new items to attract new customers and keep current customers. As a consumer you are free to choose the price range, the menu, the atmosphere, the location, the quality, the quantity, and a host of other considerations as you make your choice. You will give your repeat business to the restaurant that most closely meets your needs -- often characterized as the best quality for the least price.

None of this is true in education. Education service providers operate in a monopolistic environment because the government provides education service to almost 90% of all students. Only 10% of education providers come from the private sector; and the majority of these are nonprofit schools which are in many ways similar to government provided education.

There are many reasons why this monopoly exists and continues to exist. First, in most jurisdictions, the government assigns the schools that children must attend. Again, schools are filled because of government regulations, not because customer-parents have chosen the educational opportunity that is appropriate for their child's needs, interests, or learning style.

Second, any change in this monopoly situation is met with furious objections from the education establishment, especially the teacher unions that spend enormous amounts of money to influence the political process to keep the status quo.

Third, the education establishment is doing its utmost to prevent anything remotely resembling an experiment with a competitive education system. At the same time, the education establishment is quick to emphasize the absence of "evidence" that competition in education works.

A solution to many of the problems with the government delivery of education services is competition, as outlined in the article on page one. For additional resources, please read Capitalism and Freedom by Milton Friedman, Market Education by Andrew J. Coulson, and Public Education: An Autopsy by Myron Lieberman. To learn more about the power and influence of the teacher unions in this matter, read The Teacher Unions by Myron Lieberman.

As to what the presidential candidates are promising to doŠsimply put, more of the same will not result in a competitive education industry.

Education International Concerned
About Privatization in Global Market

When we think of the National Education Association (NEA) and the American Federation of Teachers (AFT), we tend to put most other public education organizations somewhere under them on the organizational chart. Did you know, however, that both the NEA and AFT, as well as the American Association of University Professors (AAUP) are among the 294 members of Education International (EI), headquartered in Brussels, Belgium?

Education International is the world's largest International Trade Secretariat, with roughly 23 million members. It is one of sixteen organizations worldwide holding NGO (non-governmental organization) consultant status with the United Nations Educational, Scientific and Cultural Organization (UNESCO). Currently, EI's president is former NEA President Mary Hatwood Futrell. AFT President Sandra Feldman serves as one of four vice presidents, and NEA President Robert Chase holds a North American regional seat on EI's Board.

In a recent "Questions for Debate" publication, EI asks the World Trade Organization (WTO) what is at stake for public education during the millennium round of negotiations. In 1994, the WTO adopted rules concerning international trade in services.

In EI's words:

"On the threshold of the twenty-first century, global public spending on education tops one trillion dollars.  This figure represents the costs of over 50 million teachers, one billion pupils and students, and hundreds of thousands of educational establishments throughout the world. Some observers are already describing this huge sector as a colossal 'market'. Shaken by the combined effects of galloping globalization and exacerbated neoliberalism, and with free trade being put forward as a cure-all by the champions of economic laissez-faire, education is now 'in the sights of entrepreneurs...

"...In the wake of other major public services which have been subject to extensive privatization and deregulation, public education is increasingly being targeted by predatory and powerful entrepreneurial interests. The latter are aiming at nothing less than its dismantling by subjecting it to international competition."

Sound familiar? Big labor fighting feverishly against privatization? One might think this is just an international replica of the NEA's and AFT's public rhetoric here at home. EI's document reads, "International trade in education services is an important area of activity, currently undergoing rapid expansion... With the GATS [General Agreement on Trade and Services], the WTO has instituted a general framework and an agenda intended to progressively liberalize international trade in services, and this includes education services."

Education International believes "there is a major risk that the WTO's initiatives will clash head-on with the principles upheld by all those who value a quality public education system." They ask, "Given the existence of huge disparities between countries, is the idea of placing national education systems in a competitive situation not tantamount to selling out the education systems in the weakest countries to a handful of large transnational corporations?" They add, "The danger of ending up with a 'mechanized' [computerized], uniform education system should not be underestimated."

Paradoxically, EI is arguing against the possibility of a monopolistic, standardized system coming into existence on the international front -- just the opposite of what the NEA and AFT argue for on the American front.

EI concludes, "By leaving private operators a clear field and endorsing the transfer of arbitration procedures to an organization such as the WTO, governments have already effectively created a social deficit through the complete surrender of public responsibilities and powers which directly concern social development. This applies as much to education as to other programs and measures which fall within the competence of public authorities. At the same time, there is every reason to be seriously concerned about the democratic deficit which is progressively deepening as what effectively amounts to a covert world government is built step by step on the basis of the economic, financial and business interests of a handful of large corporations."

Whereas one country cannot force its government systems on another (short of war), Education International has raised an important question about the efficacy of lowering trade barriers in terms of the provision of educational services across national borders.

* European spellings were Americanized in the quotes provided above.

EPI's Education Quick Facts

  • The total e-rate funding for schools and libraries so far this year is $270 million, with 10,491 commitment letters sent to e-rate applicants. A total of $2.25 billion is available for the 1999-2000 funding year. (Source: School Board News, August 3, 1999)
  • In fall 1999, the Edison Project expects its total number of schools will increase to 77, up from 51 in the 1998-99 school year. Schools are expected to open in ten new cities, five new states, and in many of Edison's existing locations. Following the expected openings, Edison will operate in 36 communities, in 16 states and in the District of Columbia. (Source: The Edison Project News, July 29, 1999)
  • Delaware, Maryland, and New Mexico were the only states to receive a B- or higher grade in the National Program for Playground Safety's recent report card (which surveyed 27 states) on school, park and child care center playground supervision, designed-in safety and equipment maintenance. (Source: Governing, August 1999)
  • Between 1999 and 2009, the total number of public and private high school teachers is expected to rise by 75,000 -- a 6 percent increase; a total of 2.2 million public elementary and secondary school teachers will be needed over the period to accommodate the new students and replace those teachers who retire or leave the profession for other reasons. (Source: "Baby Boom Echo: No End in Sight," U.S. Department of Education, August 19, 1999)
  • Michael Sandler, Chairman of Boston-based EduVentures, says, "The amount of money raised [in the publicly traded education industry], according to securities data from 1993, is $3.6 billion. The number we are going to produce [in a report this fall], which will only be private equity investment, is going to be substantially bigger than that $3.6 billion." Todd Parchman, Partner at Baltimore-based Parchman-Vaughn, shares the view that education is experiencing fast growth on the private side. (Source: The Education Industry Report, August 1999)

See File

Copyright 1999
Education Policy Institute, PMB 294, 4401-A Connecticut Ave., NW, Washington, DC 20008-2322 202/244-7535, Fax 202/244-7584 http://www.educationpolicy.org