Economic Liberalization in 1991 and Its Impact on Elementary Education in India

S Venkatanarayanan

doi:10.1177/2158244015579517

Abstract

The basic foundation of policy making had undergone profound shifts over the past two decades as the policy makers are inclined to rely heavily on the exercise of power in their pursuit of development and prosperity. Government interventionism was subject to a strong intellectual and political backlash, and a new ideological movement seeking to redefine the role of government rose to take its place. This new political–economic liberalism insisted on the removal of governments’ grip over the economy and the introduction of open competition into economic life. Thus, the market emerged as the central actor governing economic activity during the 1990s, and the ethos of neoliberalism progressively entrenched itself into law and public institutions in India. This change in “policy paradigms” implies a substantial reorganization of domestic political economies for an efficient governance of political and economic institutions in a longer run. This article attempts to look at the changes in “policy paradigms” that happened after 1990 in the domain of educational governance in India. Along with the policy changes, there happened a watershed in constitutional rights, making right to education a fundamental right of every citizen. This article further inquires how far the state has endeavored to fulfill its objective of providing quality education for all children within these economic and political changes. Indian states’ financial obligation toward elementary education and the policy directions during the period after 1990 were thoroughly analyzed to find out the commitment of state in providing universal elementary education of good quality in India.

Highlights

While the beginning of the current economic liberalization policy in India could be traced to the period much earlier than the 1990s, the explicit acceptance and implementation of the economic liberalization program during mid-1991 by Indian government could be seen as the starting point of the new reform program, and its subsequent change of approach and priorities with regard to its governance
It was based on the belief that economic globalization/liberalization worked toward the integration of national economies into the international economy through trade, direct foreign investment, short-term capital flows, international flow of workers and humanity, and flow of technology
Such thinking based on Neoliberalism1 started occupying the minds, in a measured manner, in the policy circle worldwide during the 1970s, which led to a major shift in the political– economic practices, and started moving toward deregulation, privatization, and withdrawal of state from many areas of social security, for efficient governance, based on market economy

Summary

Introduction

While the beginning of the current economic liberalization policy in India could be traced to the period much earlier than the 1990s, the explicit acceptance and implementation of the economic liberalization program during mid-1991 by Indian government could be seen as the starting point of the new reform program, and its subsequent change of approach and priorities with regard to its governance. The expenditure by General Government (Central and State combined) on social services has not increased substantially during the period after adoption of economic liberalization program in 1990. The state has not achieved its target set in Article 45 of the Indian Constitution and has not implemented various recommendations by various committees from the time of independence to provide quality universal education.

Results

Conclusion