Balanced market forces are good for education, the Education Council believes. But the Minister for Education should have an active role: as the ‘market master', responsible for providing a stimulus, coordination or intervention.
9 October 2001
The mechanism of supply and demand fits well in the education system, but the effects have been modest to date. Market forces in education would work better if the government took on the role of market master. The government could, for example, encourage variation while maintaining minimum standards, put limits on the free selection of pupils, and take action when failing providers do not voluntary leave the marketplace.
Establish a basic package
The government wishes to see education provide everyone with a certain basic level of development. But education also offers optional extras that do not need government intervention. The government needs to mark out where the ‘basic package' ends and where the optional extras begin. There also needs to be clarity on who is responsible for funding what activities.
Invest in providing information
Information on study programmes is not always as reliable or accessible as it should be. This problem becomes more acute as the market becomes more varied. The government should invest in new ways of providing information on schools, so that consumers can make more informed choices.
Bring in alternative forms of quality assurance
Educational institutions need to be able to establish a profile for themselves. Yet current deregulation does not always get to the core of the matter: institutions rarely use educational content to set themselves apart in the market. The Education Council would like to see alternative forms of quality assurance in order to be able to let go of certain legislation and rules without creating risks.
Give new market entrants more opportunities
Market forces makes a greater degree of variation possible in the education on offer. New market entrants with something new to offer should be given more opportunities. This applies equally to new ICT-based forms of education.
Private finance
The Education Council has dedicated a separate advisory report to the use of private funding in education. Our aim in doing this is to contribute to the public debate on market forces in education. More on this subject can be found in the report Public and Private. Opportunities and consequences of private funding in public education (2001).