Danger of bringing public subsidies into purely private school system

Jishnu Das's recent paper called A Pragmatic Framework for Improving Educationin Low-Income Countries makes these interest comments.

More perniciously, there is a pervasive danger that once public subsidies are brought into the purely private system, the political economy of countries with poor schooling capacity will generate worse outcomes. In India for instance, there is a long-standing tradition of “grant-in-aid” schools that function with public subsidies, usually on land leases. Performance data tend to show little difference between the functioning of these schools and pure public schools; it’s the private sector that receives zero public subsidies where performance is higher on tested subjects. 
After the education is made for profit, as the private market in school education gains prominence, regulation of this market and design of the subsidies, vouchers or others, is going to be very critical.

Without a high standard benchmark for education, the quality in school education might hit a roof, without having any external incentive to push themselves. Reforming board examination system and bringing its quality upto high standard international end-of-school assessments, is also going to play major role in this.

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