LIBERALIZATION: A Fatal Blow to Public Education

By: Ruth R. MorrisNational Council on Education

WHAT IS THE GENERAL AGREEMENT ON TRADE IN SERVICES (GATS)?

First trade agreement which focuses exclusively on Trade in Services as opposed to Trade in Products

Multilateral, Legally enforceable agreement Administered by World Trade Organization

comprising 144 Member countries. First negotiation under GATS is the Uruguay

Round of Negotiations dated April 15, 1994.

WHAT IS DEFINED AS A SERVICE UNDER GATS?

A service is any service in any sector except services in theexercise of Governmental Authority.

A service supplied in the exercise of governmental

authorityis any service that is supplied neither on acommercial basis nor in competition with one ormore service suppliers.

On a commercial basis

is any service traded for a profit

In competition

is a service provided: with multiple service suppliers; or where there are public and private service

providers in the same sector

LEGISLATED CATEGORIES OF TRADE

The WTO has identified the following four modes of trade whichconstitute the definition of trade in services:

Cross-Border Supply – Services are provided which cross the national

boundaries of the supplier or the consumer through the use ofcommunications technology, for example education services

providedthrough distance learning or correspondence courses;

Consumption Abroad - the consumer crosses the border to consume

services outside of his/her home territory, for example a Jamaicantravels to another country to study.

Commercial Presence: –the supplier of the serviceestablishes a local branch or subsidiary to provide servicesin another country for example the establishment inJamaica of a campus of a foreign university.

Presence of Natural Persons: - the supplier of the servicetravels from his own country to supply a service in anothercountry, i.e. the presence of a service provider who travelsto Jamaica in an individual capacity to provide a service ona temporary basis. A teacher who comes from overseas totutor students on his/her own.

LEGISLATED ARTICLES

The Agreement is legislated under 26 articles.

The following three (3) will be examined:

The Most Favoured Nation (MFN) Rule National Treatment Market Access

Most Favoured Nation (MFN)

This requires equal and consistent treatment of

all foreign trading partners. It means:

Providing equal opportunities in that sector for all foreign service providers.

mutual exclusive treatment for all service providers

National TreatmentThis is not the same as MFN. National Treatment requires equal treatment for foreignproviders and domestic providers.

Once a foreign supplier has been allowed tosupply a service in one’s country there shouldbe no discrimination in treatment between theforeign and domestic providers.

Market AccessA member shall not establish:

Limitations on the number of service providers, including numerical quotas.

Limitations on the total value of service transactions or assets

Limitations on the total number of service operations.

Limitations on the total number of natural persons that may be employed in a particular service

sector.

Measures which restrict or require specific types of legal entity or joint venture through which a service supplier may supply a service.

Limitations on the participation of foreign capital in terms of maximum percentage limit on foreign

shareholding.

Schedule 1: SCHEDULE OF SPECIFIC COMMITMENTS JAMAICA

Modes of Supply: 1) Cross-border Supply 2) Consumption Abroad 3) Commercial Presence 4) Presence of Natural Persons 

Sector or Sub-sector

Limitations on market access

Limitations on national treatment

Additional commitments

5. Educational Services

c. Higher Education Services

1) None

2) None

3) None

Local certification, registration, licensing required.

4) Unbound except as indicated in the horizontal section

1) None

2) None

3) None

4) Unbound except as indicated in the horizontal section

WHAT IS HIGHER EDUCATION?GATS defines higher education as anyeducation offered after secondary. It incorporatestwo distinct groups:

the teaching of practical skills in post-secondary, sub-degree technical and vocational education institutions and;

theoretical educational services provided by universities, colleges and specialized professional schools.

PUBLIC EDUCATION Partially or wholly funded by Government Regulated by Government Provided in the interest of the “common good”

- Socialization

- Cultural transmission

- Personal, Cognitive and Social Development

- Preparation for participation in national development

Public benefit is necessary for the fulfillment of individual

aspirations and public education is the site where these

aspirations are formed as well as realized.

Will GATS apply to all Public Education Systems? Is government the sole provider of higher

education in your country? If yes, the education sector is exempt from

GATS If no, all the general principles of GATS

apply and all sections indicated in the schedule of specific commitments.

Will GATS apply to all Public Education Systems? Cont’d

Is government the sole provider ofeducation but charge fees in an effort to raise revenue for other sectors?

If yes, GATS apply If no, the education sector is exempt from

GATS

Challenges for Higher Education Most countries have a mixed public/private higher

education system. Most have a significant amount of funding coming from

the private sector e.g. private source of funding account for less than 3% in Italy, Sweden and the Netherlands, 18% in Germany and Australia and 45% in Chile.

Public institutions offer private programmes at full economic cost.

Students share in the economic cost of their education. In Jamaica students pay 20%.

ConclusionThe prevailing context indicate that globalization is

as inevitable as it is immediate.

GATS will drastically limit government regulation in

the education sector, preventing the implementation

of education policies designed in the public’s

interest.

As a consequence:

Education will become less available: Under public control, governments can distribute educational resources to communities and jurisdictions that would otherwise not warrant investment by private providers. In private systems, programs would not be available in sufficient quantity to all citizens.

  

Education will become less accessible: universal, non-discriminatory and affordable education is antithetical to private providers who must profit from the services they deliver. The most vulnerable groups and poorest members will be less able or unable to afford private education or education of equal quality.

Education will become less acceptable: Private providers working throughout the hemisphere operating on large economies of scale will not be able to provide students with culturally appropriate curricula and teaching methods in the many varied jurisdictions and communities that they service.

 

Education will become less adaptable to social needs: The profit motive will lead private education providers to cater to areas with quick return to financial investment, making education less adaptable for the long-term public interest, and “the full development of the human personality.”