The EY study suggests a package of measures. Important among them are: simplifying regulation by moving away from input-based norms that stifle operational autonomy; creating enabling legislation at the state level to encourage setting up of private institutions; moving to student-side funding to provide a level playing field between public and private institutions; and encouraging the setting up of for-profit institutions along with a regulatory framework that ensures quality and transparency. It is the last point that captures the present dilemma, for both higher and school education: whatever regulatory systems currently exist to ensure quality are widely gamed. To cite one example, a few years ago the University Grants Commission ordered visits by peer groups on behalf of the National Assessment and Accreditation Council (NAAC) to be video-recorded as there were complaints of bribing officials, institutions bringing in ad hoc staff and faking reports of facilities, and unfair marking by NAAC.
India is thus faced with a Hobson's choice. On the one hand there is the populist reaction of Delhi Chief Minister Arvind Kejriwal, ordering the abolition of management quotas in private unaided schools with just a 25 per cent quota for economically weaker sections. In words bound to please parents, he says a "mafia" has captured the education system and made it a "business", and management quotas are the "biggest scandal" in the country. On the other hand, there is the reality of any number of builders promoting engineering and medical colleges because they see attractive returns from it for their land, extracting the last paisa possible from the ventures without any concern for quality.
A mixture of policy initiatives is the best bet. The regulation of private schools and colleges should be minimal but transparent, with vigilance to ensure that the regulatory process is not corrupt. The public school system will need to be vastly expanded, with more local control of teacher choice and accountability, in tandem with the option of school vouchers being explored where feasible. Above all, a wide vocational training system with minimal entry qualifications and close links to the private sector must be created. Knee-jerk attempts to impose complete government control must be resisted, as they will create more problems than they solve.