Top Stories - Google News

Saturday, 11 June 2016

Backing the Wrong Horse: How Private Schools Are Good for the Poor by James Tooley

Last fall the High-Level Plenary Meet­ing of the UN General Assembly brought together more than 170 heads of state—“the largest gathering of world leaders in his­tory”—to review progress toward the Millennium Devel­opment Goals. It was, we were told, “a once-in-a-gen­eration opportunity to take bold decisions,” a “defining moment in history” when “we must be ambitious.”

One of the internation­ally agreed-on development goals the heads of state reviewed was the achieve­ment of universal primary education by 2015. The UN was not happy with progress. There are still officially more than 115 million children out of school, it reported, of which 80 percent are in sub-Saharan Africa and Southern Asia. But even for those lucky enough to be in school, things are not good: “Most poor children who attend primary school in the developing world learn shockingly little,” the UN reported.
Something had to be done. Fortunately, the UN could call on Jeffrey D. Sachs, special adviser on the Mil­lennium Development Goals to Secretary-General Kofi Annan and author of The End of Poverty. He’s also director of the Earth Institute at Columbia University. He proposed as the way forward “Quick Wins,” which have “very high potential short-term impact” and that “can be immediately implemented.” Top of his list is “Eliminating school fees,” to be achieved “no later than the end of 2006,” funded through increased international donor aid. To the UN it’s as obvious as motherhood and apple pie.
But the UN’s “Quick Wins” are backing the wrong horse. For the past two and a half years I’ve been directing and conduct­ing research in sub-Saharan Africa (Kenya, Nigeria, and Ghana) and Asia (India and China). And what I’ve found is a remarkable and apparently hitherto unnoticed revolution in education, led by the poor themselves. Across the developing world the poor are eschewing free, disturbed by its low quality and lack of accountability. Meanwhile, educational entrepre­neurs from the poor communities themselves set up affordable private schools to cater to the unfulfilled demand.
Take Kibera, in Nairobi, Kenya, reportedly the largest slum in Africa, where half a million people live in mud-walled, corrugated iron-roofed huts that huddle along the old Uganda Railway. Kenya is one of the UN’s showcase examples of the virtues of introducing free basic education. Free Primary Education (FPE) was introduced in Kenya in January 2003, with a $55 million donation from the World Bank—apparently the largest straight grant that it has given to any area of social serv­ices. The world has been impressed by the outcomes: Former President Bill Clinton told an American prime-time television audience that the person he most want­ed to meet was President Kibaki of Kenya, “because he has abolished school fees,” which “would affect more lives than any president had done or would ever do.” The British chancellor of the exchequer, Gordon Brown, visiting Olympic Primary School, one of the five gov­ernment schools located on the out­skirts of Kibera, told the gathered crowds that British parents gave their full sup­port to their tax money being used to support FPE. Everyone—including Sir Bob Geldof and Bono—raves on about how an additional 1.3 million children are now enrolled in primary school in Kenya. All these children, the accepted wisdom goes, have been saved from ignorance by the benevolence of the international community—which must give $7 billion to $8 billion per year more so that other countries can emulate Kenya’s success.

The accepted wisdom, however, is entirely wrong. It ignores the remarkable reality that the poor in Africa have not been waiting helplessly for the munificence of pop stars and Western politicians to ensure that their children get a decent education. The reality is that private schools for the poor have emerged in huge numbers in some of the most impoverished slums in Africa and southern Asia. They are catering to a majority of poor children, and outperforming their government counter­parts, for a fraction of the cost.
I went to Kibera to see for myself, with a hunch that the headline success story might be concealing some­thing. In India I had seen that the poor were not at all happy with the government schools—a recent study had shown that when researchers called unannounced on government schools for the poor, only in half was there any teaching going on at all—and so were leaving in huge numbers to go to private schools set up by local entrepreneurs charging very low fees. Would Kenya be any different? Although the education minister told me that in his country private schools were for the rich, not the poor, and so I was misguided in my quest, I perse­vered and went to the slums. It was one of Nairobi’s two rainy seasons. The mud tracks of Kibera were mud baths. I picked my way with care.
Within a few minutes, I found what I was looking for. A signboard proclaimed “Makina Primary School” outside a two-story rickety tin building. Inside a cramped office Jane Yavetsi, the school proprietor, was keen to tell her story: “Free education is a big problem,” she said. Since its introduction, her enroll­ment had declined from 500 to 300, and now she doesn’t know how she will pay the rent on her buildings. Many parents have opted to stay, but it is the wealthier of her poor parents who have taken their children away, and they were the ones who paid their fees on time. Her school fees are about 200 Kenyan shillings (about $2.80) per month. But for the poorest children, including 50 orphans, she offers free education. She founded the school ten years ago and has been through many difficulties. But now she feels crestfallen: “With free education, I am being hit very hard.”

Jane’s wasn’t the only private school in Kibera. Right next door was another, and then just down from her, opposite each other on the railway tracks, were two more. Inspired by what I had found, I recruited a local research team, led by James Shikwati of the Inter-Region Economic Network (IREN), and searched every muddy street and alleyway looking for schools. In total we found 76 private schools, enrolling over 12,000 students. In the five government schools serving Kibera, there were a total of about 8,000 children—but half were from the middle-class suburbs. The private schools, it turned out, even after free public education, were still serving a large majority of the poor slum children.

A Typical Experience?

Was Jane’s experience typical since the introduction of free primary education? Most of the 70- odd private-school owners in Kibera reported sharply declining enrollment since the introduction of FPE. Many, however, were reporting that parents had at first taken their children away, but were now bringing them back—because they hadn’t liked what they’d found in the government schools. We also found the ex-managers of 35 private schools that had closed since FPE was introduced, 25 of whom said that it was FPE that had led to their demise. Calculating the net decline in private-school enrollment, it turned out that there were many, many more children who had left the private schools than the 3,300 reported to have entered the government schools on Kibera’s periphery and who were part of the much celebrated one million-plus supposedly newly enrolled in education.
In other words, the headlined increase in numbers of enrolled children was fictitious: the net impact of FPE was at best precisely the same number of children enrolled in primary school—only that some had trans­ferred from private to government schools.
I discussed these findings with senior government, World Bank, and other aid officials. They were sur­prised by the number of private schools I had found. But, they said, if children had transferred from private to state schools, then this was good: “No one believes that the private schools offer quality education,” I was told. British Prime Minister Tony Blair’s Commission for Africa agrees: conceding that mushrooming private schools exist in some unspecified parts of sub-Saharan Africa, it reports that they “are without adequate state regulation and are of a low quality.”

But why would parents be as foolhardy to pay to send their children to schools of such low quality? One school owner in a similar situation in Ghana, where we later conducted the research, challenged me when I observed that her school building was little more than a corrugated iron roof on rickety poles and that the gov­ernment school, just a few hundred yards away, was a smart, proper brick building. “Educa­tion is not about buildings,” she scolded. “What matters is what is in the teacher’s heart. In our hearts, we love the children and do our best for them.” She left it open, when probed, what the teachers in the government school felt in their hearts toward the poor children.
Exploring further in Kenya, my team and I spoke to parents, some of whom had taken their children to the “free” government schools, but had been disillusioned by what they found and returned to the private schools. Their reasons were straight­forward: in the government schools class sizes had increased dramatically and teachers couldn’t cope with 100 or more pupils, five times the number in the private-school classes. Parents compared notes when their children came home from school and saw that in the state schools pupil notebooks remained unmarked for weeks; they contrasted this with the detailed atten­tion given to all children’s work in the private schools. They heard tales from their children of how teachers came to the state school and did their knitting or fell asleep. One summed up the situation succinctly: “If you go to a market and are offered free fruit and vegetables, they will be rotten. If you want fresh fruit and veg, you have to pay for them.”
Perhaps these poor parents are misguided. Certainly that’s what officials believe. But are they right? We test­ed 3,000 children, roughly half from the Nairobi slums and half from the government schools on the periphery, using standardized tests in math, English, and Kiswahili. We tested the chil­dren’s and their teachers’ IQs and gave questionnaires to pupils, their parents, teachers, and school managers so that we could control for all relevant back­ground variables. Although the gov­ernment schools served the privileged middle classes as well as the slum chil­dren, the private schools—serving only slum children—outperformed the government schools in mathemat­ics and Kiswahili, although the latter had a slight advantage in English. But English would be picked up by privi­leged children through television and interaction with parents. When we statistically controlled for all relevant background variables, the private schools outperformed the government schoolchildren in all three subjects.
But there was a further twist. The private schools outperformed the government schools for considerably lower cost. Even if we ignore the massive costs of the government bureaucracy and focus just on the classroom level, we find the private schools are doing better for about a third of teacher-salary costs: the average month­ly teacher salary in government schools was Ksh. 11,080 ($155) compared to Ksh. 3,735 ($52) in the private schools.
Free primary education in Kenya, a showcase exam­ple of the UN’s “Quick Wins” strategy, has simply transferred children from private schools, where they got a good deal, closely supervised by parents, with teachers who turn up and teach, to state schools, where they are being dramatically let down. One parent was clear what the solution was: “We do not want our children to go to a state school. The government offered free education. Why didn’t it give us the money instead and let us choose where to send our children?” For this parent, a voucher system was the obvious way forward, putting her right back in control.

Perpetual “Aid”

Perhaps some will argue that these are teething problems and the UN’s “Quick Wins” need time to bed down. The evidence does not support this either. Take Nigeria, for example, which introduced its free primary education act in 1976. Ever since, state education has been backed by huge dollops of international aid, but it doesn’t seem much to celebrate.
Drive across the low highway viaduct over toward Victoria Island, in the bustling city of Lagos, for instance, and you’ll see the shantytown of Makoko, home to an estimated 50,000 people, sprawling out into the black waters below. Wooden huts on stilts stretch out into the lagoon; young men punt; and women paddle dug­out canoes down into narrow canals weaving between the raised homes. Across the top of the shantytown, there is a veneer of drifting smog created by the open fires used for cook­ing. Again, it’s the last place that you’d expect to witness an educational revolution taking place. But, again, that’s precisely what’s happening.
To get to Makoko by road, you’ll need to turn off Third Mainland Bridge, into the congested Murtal Muhammed Wayand sharply into Makoko Street, easing past the women crowding the streets selling tomatoes, peppers, yams, chilies, and crayfish. At the end of this road, there is the entrance to two parallel and imposing four-story concrete buildings. These buildings contain three public primary schools, originally church schools nationalized by the state in the 1980s, all on the same site, designed by the state officials to serve the whole population of Makoko.
Visiting these three public schools is a dispiriting experience. Our visit was a scheduled one; the schools had had time to prepare. But even so, in most of the classrooms, the children seemed to be doing very little. In one the young male teacher was fast asleep at his desk, not aroused even when the children rose to noisi­ly chant greetings to their visitors. In others the teacher was sitting reading a newspaper or chatting with some­one outside the door, having written a few simple things on the board, which the class had finished copying. In one of the three schools, Grade 1 had 95 children pres­ent, three classes put together because of long-term teacher absenteeism. The children were doing nothing; some were also sleeping; one girl was cleaning the win­dows. The one teacher was hanging around outside the class door. No one, certainly not the headmistress, seemed remotely embarrassed by any of this. I asked the children what lesson they were doing—when no one responded, the head teacher bellowed at the pupils to get an answer; “It is a mathematics lesson,” she reported, pleasantly, without any sense of incongruity, for no child had a single book open.
This one of the three schools alone could accommo­date 1,500 children. The headmistress told us that parents left the school en masse a few years earlier because of teacher strikes. But things have improved, and chil­dren have returned, she said, with 500 now enrolled. On the top floor of the stark building, however, there were six classrooms empty, all complete with desks and chairs, waiting for children to return. “Why don’t parents send their children here?” we asked the headmistress. Her explanation was simple: “Parents in the slums don’t value education. They’re illiterate and ignorant. Some don’t even know that education is free here. But most can’t be bothered to send their children to school.” We inno­cently remarked that we’d heard that, perhaps, parents were sending their children to private schools instead, and were greeted with laughter: “They are very poor families living in the slum ….They can’t afford private education!”
But she is entirely wrong. Continue past the three public schools, past where the tarred road ends at a raised speed bump, and enter Apollo Street, too muddy for a vehicle. Here you’ll need to pick your way carefully, squelching your way from one side of the street to the other, avoiding the worst excesses of the slime and mud and excrement and piled rubbish. Walk alongside the huts visible from the highway—homes made of flat tim­bers, supported by narrow slithers of planks sunk into the black waters below—and you’ll come to a pink plas­tered concrete building with colorful pictures of chil­dren’s toys and animals, and “Ken Ade Private School” emblazoned across the top of the wall.
Ken Ade Private School, not on any official list of schools, so unknown to government, is owned by Mr. Bawo Sabo Elieu Ayeseminikan—known to everyone as “B.S.E.” B.S.E. had set up the school on April 16, 1990, starting with only five children in the church hall, par­ents paying fees on a daily basis when they could afford to do so. Now he has about 200 children, from nursery to primary 6. The fees are about 2,200 Nigeria naira ($17) per term, or about $4 per month, but there are 25 children who come for free.“ If a child is orphaned, what can I do? I can’t send her away,” he says.

Philanthropy and Commerce

His motives for setting up the school are a mixture of philanthropy and commerce—yes, he needed work and saw that there was a demand for school places from parents disillusioned with the state schools. But his heart also went out to the children in his community and from his church—how could he help them better themselves? True, there were the three public schools at the end of the road, but although they were only about a kilometer from where he set up his school, the distance was a barrier for many parents, who didn’t want their girls walking down the crowded streets where abductors might lurk. But mainly it was the educational standards in the public school that made parents want an alterna­tive. When they encouraged B.S.E. to set up the school 15 years earlier, parents knew that the teachers were fre­quently on strike—in fairness to the teachers, protesting about nonpayment of their salaries. We arrange to meet some parents, visiting in their homes on stilts. The parents from the community are all poor, the men usually fishermen, the women trading in fish, or selling other goods along Apollo Street. Their max­imum earnings might amount to about $50 per month, but many are on lower incomes than that. The par­ents tell us without hesitation that there is no question of where they send their children if they can afford to do so—to private school. Some have one or two of their children in the private school and one or two others in the public school, and they know well, they tell us, how differently children are treated in each. One woman said: “We see how children’s books never get touched in the public school.” Another man ventured: “We pass the public school many days and see the children outside all of the time, doing nothing. But in the private schools, we see them everyday working hard. In the public school, chil­dren are abandoned.”
And of course, Ken Ade Private School is not alone in Makoko. In fact, it is one of 30 private primary schools in the shantytown. I know, because I sent in a research team, graduate students from Nigeria’s premier university, the University of Ibadan, to find as many of the schools as they could. In the 30 private schools found, enrollment was reported to be 3,611, all from the slum itself, while the enrollment in the three public schools was reported to be 1,709, but some of these chil­dren came from outside Makoko. That is, the great majority, at least 68 percent, of all schoolchildren in Makoko attends private school.
Whether it’s in Nigeria or Ghana, which started its own free primary education process in 1996, or India, where free primary education dates back to 1986, in poor areas my researchers found exactly the same story: the majority of poor schoolchildren attend private schools that outperform the state schools for a fraction of the teacher-salary cost.

Not only is the UN backing the wrong horse, it is also missing a trick: for the existence of private schools for the poor provides a grassroots solution to the problem of achieving universal basic education by 2015—without the huge dollops of aid supposedly required. If so many chil­dren are in private unregistered schools, then education for all is much easier to achieve than currently believed. Dramatically, in Lagos State, Nigeria, the experts tell us that 50 per­cent of school-aged children are out of school. My research suggests that it is only 26 percent—the remainder in private unregistered schools, off the state’s radar.

But all of this is a success story that’s not being celebrated. And perhaps the reasons why are obvious. National governments are threatened by the existence of this counterrevolution in private education, for if they can’t get basic education right, then people might wonder: what can they do? Aid agencies might wonder whether they have been backing the wrong horse for decades. And development experts feel ideologically snubbed: they believe that the poor need aid channeled through government schools; they’re offended that instead, the poor seem to have their own ideas about how educational needs can best be provid­ed. But poor parents know what they are doing. They want the best for their children and know that private schools are the way forward. The question is: will anyone with power and influence listen to them?

Source: 


Thursday, 9 June 2016

LBS Young Talents Programme

he purpose of the one-day programme is to help the school establish an ongoing relationship with the brightest university students in the country prior to and after their graduation from the university. The primary objective of engaging with these talented students is to expose them to a world-class institution and short list suitable candidates for the LBS Management Scholarship Academy. We will also welcome candidates that could become future administrative staff and ultimately faculty members. This programme would help the school build a pipeline of bright academics for the African continent.

Programme
The LBS Young Talents' Programme will:
1.      Introduce participants to life in LBS as a faculty person, researcher and admin staff
2.      Introduce participants to a career in Management research and teaching
3.      Expose participants to the channels within the school for embracing an academic career: Management Scholarship Academy and the LBS PhD programme
4.      Discuss about the LBS culture, history and inspiration.
5.      Build a network of young talents who can also be part of the MBA programme

For: This programme is designed for undergraduates who are in their final year university studies. We also welcome M.Sc students and National Youth Service Corps (NYSC) members. These students should be on a first class or second class upper. The applicants should not be above 30years old. Previous participants of the YTP are not eligible to apply again.

Application procedure: fill the application form online , send resume and proof of academic standing. Further details can be given by Ope Oteri on oteri@lbs.edu.ng

Date: July 29, 2016

Fee: Free for selected candidates

Monday, 6 June 2016

Africa in Chaos by George B. N. Ayittey

George Ayittey is one of a few African scholars committed to advancing the ideals of classical liberalism. This is clearly demonstrated in his previous books, Indigenous African Institutions and Africa Betrayed. In Africa in Chaos, Ayittey advances the arguments made in those books, provides a detailed report on the chaos in Africa, and proposes various reforms to deal with the crisis. It is an excellent chronicle of events that have led to the demise of civil society in Africa.

A clear indicator of the chaotic state of affairs is the economic condition of Africa. The continent—more specifically sub-Saharan Africa—is richly endowed with some of the most valuable natural resources. Its potential for economic growth is enormous, yet countries in this region have the lowest standard of living in the world. Malnutrition and even starvation are widespread. African countries rank lowest in all measures of economic well-being, such as the proportion of population below poverty, infant mortality, life expectancy, and caloric intake. Infrastructure, which includes government buildings, roads, railways, and telephone and electricity facilities, is in a sad state of disrepair. The evidence shows that political independence has not advanced the material well-being of Africans in general.

What explains this dismal condition? Ayittey’s book provides a detailed account of government policies that stifle the functioning of markets. Instead of building on indigenous markets that prevailed in the past, African leaders adopted policies that involved heavy-handed intervention. The primary result of government intervention has been to undermine the incentive to produce. In many countries property rights are insecure and leaders often engage in arbitrary expropriation. While many Africans remain destitute, political allocation of resources has provided rulers with copious opportunities to get rich.

Another reason for Africa’s economic crisis has been the mistaken belief that large modern projects are equivalent to progress. Supported by foreign governments and international organizations, numerous capital-intensive projects divert resources from consumer-driven purposes. Further contributing to the instability has been the reliance on the many public enterprises that are inefficient and largely dependent on subsidies.
But if political independence has done little to advance the material well-being of the majority of Africans, it has proven disastrous for their liberty. Ayittey demonstrates that independence in Africa has been characterized by some of the most oppressive governments in history. The first wave of civilian leaders adopted oppressive laws that prohibited political competition and empowered rulers to detain opponents without trial. These “leaders” were replaced in many instances by military officers who were even more corrupt and tyrannical. With every coup, things have usually gotten worse.

To compound the problems, many countries have experienced internal conflicts. Armed clashes such as those in Somalia, Zaire (Democratic Republic of Congo), Liberia, Uganda, Rwanda, Burundi, Angola, Sudan, and many others have resulted in millions of casualties. Internal conflicts are exacerbated by the fact that government is geared more to plunder than to protecting rights and keeping peace.
Ayittey is critical of the commonly proposed solutions to the crisis in Africa. He argues that foreign aid and loans such as those advanced by the international organizations have no benefit in the long run. Ayittey proposes reform policies that key on the restoration of civil and economic liberties, building on traditional African systems of governance.

In sum, Africa in Chaos is informative, well written, and rich in detail. This book advances our understanding of African institutions and should be particularly helpful to those “development experts” who prescribe policies to Africans and yet have limited understanding of the continent.

Source: FEE

Saturday, 4 June 2016

REGULATORS ARE UNREGULATED by Howard Baetjer


In “There’s No Such Thing as an Unregulated Market,” I claimed that regulation by market forces works better — gets better results for society — than government regulation. But why does government regulation work so poorly?
In government, the regulators themselves are in practice unregulated. Their accountability goes the wrong way — upward to politicians rather than downward to the public.
Regulation is so bad in our overregulated economy because our regulators are unregulated.
Consider the regulation of school quality. For decades, Americans have deplored the low quality of our government-regulated schools, as compared to the higher quality of our market-regulated private-sector schools.

A Nation at Risk (National Commission on Excellence in Education) asserted in 1983 that “if an unfriendly foreign power had attempted to impose on America the mediocre educational performance that exists today, we might well have viewed it as an act of war.”
Since then, nothing material has changed. There are some superb government schools, but there are also many in poor areas that are atrocious, and even average-quality government schools produce mediocre education at high cost. For example, in my hometown, the Baltimore City Public Schools spent $15,464 per child in the 2010–11 academic year. Meanwhile, the median tuition charged by private schools attended by students receiving partial scholarships from the Children’s Scholarship Fund (CSF) Baltimore was $5,050 total. (A scholarship of, say, $1,000 at the median-tuition school would mean the child’s family would have to pay only $4,500.) And these are schools considered so much better by the children’s parents that they willingly pay out-of-pocket to send their children there. The numbers are not directly comparable because many of the CSF Baltimore schools include only grades K–8, while the Baltimore City Public Schools include high schools, which are more expensive. Nevertheless, the numbers suggest that Baltimore could get better schooling for less than half of what’s spent in government schools, if only the quality of those schools were decently regulated.
A properly regulated schooling industry would offer a wide range of approaches to K–12 education, would quickly weed out bad schools and teachers, and over time would weed out mediocre schools and teachers. It would reward good schools and teachers. It would foster innovation in curricula, school organization, and the use of information technology. It would lower costs and increase choice.
But we don’t have a properly regulated system. Those who regulate the quality of our government schools do it badly. Why?
Because those regulators are themselves unregulated. Officially, they are regulated from above by the political process, but the political process is so ineffective at regulating regulators that they are essentially unregulated. They are not accountable to the public in any meaningful way.
Consider how government school quality is supposedly regulated. Suppose that, somewhere in the country, instruction of children in government schools is poor. Suppose further that money is not the problem, as in my hometown of Baltimore, where per-pupil funding is nearly the highest in the state, and far higher than the average tuition in private-sector schools in the same area.
Who is immediately responsible for regulating — that is, for improving and keeping at a high level — the quality of instruction? The principals are. It’s their job to make sure the teachers do a good job. But not all principals do a good job of making sure the teachers do a good job. They may allow poor instruction to continue because they lack the necessary authority, or experience, or competence, or motivation, or support from their own superiors. Whatever the reasons may be, when principals don’t do a good job, who is accountable? Who or what should regulate principals’ performance?
The school board should. It hires the principals; it is supposed to make sure the principals are getting good performance from teachers so that students can learn. But suppose the school board does a bad job — how is its performance to be regulated? A bad school board might not recognize the problems in its schools. It might be friendly with poor principals. Or it might be doing the best it can, but be so tied down by the teachers’ union contract that it can’t require the changes it thinks are needed. Or, despite the best will in the world, the board might simply not know what to do to improve a mediocre school district. Whatever the reason, in such cases the unsatisfactory performance of the school board must not be tolerated. The school board itself must be regulated, held accountable, and required to do a better job. Who or what is to do that?
The essential structure of government regulation remains the same, no matter how many layers of government overseers are added on.
In most states, school board members are democratically elected, so the citizens of the district, in their capacity as voters, are responsible for regulating school board quality. If a particular board is doing a poor job, then voters should vote its members out and vote in a good board — one that can recognize problems in its districts and schools, resist the temptation to hire (or not fire) personal friends, stand up to teachers’ unions, and, most essentially, know enough about teaching, learning, and school management to regulate well the schools it oversees.
But voters as a whole are unlikely to be sufficiently well informed and motivated to hold school boards to account at the ballot box. While some voters have children in their government schools, most do not. Also, voters realize that any one person’s vote is unlikely to decide an election, and researching different candidates’ qualifications and positions takes time. Hence, it does not make sense for most voters to inform themselves of candidates’ qualifications. They are rationally ignorant about the needs or problems of their local school system and the qualifications of the school board candidates.
In some states, state departments of education take responsibility for regulating school boards. In extreme cases, a state government bureaucracy takes over underperforming schools or school districts and installs new management. But state departments of education may also perform well or badly, for the same reasons school boards do. Who or what regulates the state departments of education? Well, the state legislatures do. And if a state legislature is doing a poor job of regulating the department of education, again it falls to the citizens, in their capacity as voters, to vote out the legislators who are not regulating the departments of education well and to vote in new legislators who will. But here again, most voters know little to nothing about their representatives’ or candidates’ positions on or competence in education policy.
We can add to the mix the federal government’s participation with President Bush’s No Child Left Behind policy, President Obama’s Race to the Top policy, the push to implement Common Core, and, most recently, the Every Student Succeeds Act signed by President Obama on December 15, 2015. The essential structure of government regulation of schooling remains the same, however, no matter how many layers of government overseers are added on. Government schooling is regulated in a monolithic, top-down manner by a chain of political authority. Teachers are regulated by principals, who are regulated by school boards, who are regulated by state departments of education, who are regulated by state legislators, who are regulated by voters.
Where, in all this, are the parents, the people with the most knowledge of their children’s needs and the greatest incentive to see them educated well? Ultimately, parents do have some decision-making authority over the government schools their children attend: they vote. But what a dreadfully attenuated control that gives them: only once every two years do they have any actual choice that affects this political structure. That choice is generally among candidates who may know or care little about education, and whose positions on a host of other issues those parents must consider also. And each voter’s vote has a vanishingly small chance of deciding the election.
Government schooling is regulated in a monolithic, top-down manner by a chain of political authority. 
With government regulation of schooling, each higher level of regulatory responsibility is ever more distant from the students, classrooms, and teachers. At every remove from principal to school board to department of education, the regulators have less and less knowledge of the students, the teachers, the school’s culture, and teaching itself. At every remove, the incentives to act become more about politics and less about learning.
What all this means in practice is that the regulators of government school quality are really not regulated at all. The system does not force principals and school boards and legislatures to regulate well or to replace them if they don’t.
The same problem afflicts the regulation of all sorts of industries:
  • Taxi and rideshare regulators in many cities actively harm the public interest by impeding ridesharing services such as Uber and Lyft. They get away with this breach of duty because they are, in practice, unregulated by state legislatures.
  • The FDA, in practice unregulated by Congress, misregulates new drug development so badly that it can take 10 years and over a billion dollars for a new medicine to be developed and brought to market.
  • Wrongheaded bank capital regulation encouraged banks to load up on mortgage-backed securities during the housing boom and so aggravated the financial crisis that followed, but Congress does not meaningfully regulate the regulators responsible: the Fed, the Office of the Comptroller of the Currency, and the FDIC.
  • Occupational licensing boards routinely protect incumbent practitioners by blocking newcomers with excessively strict requirements, thereby harming the public with higher prices and fewer choices. These boards are in practice not regulated by their state legislatures.
Ironically, regulation is so bad in our overregulated economy because our regulators are unregulated.
There is a better way: regulation by market forces.
Regulators need not be accountable upward to ever more distant layers of a political bureaucracy and thence to the public as voters, who get to choose only every couple of years. In free markets, those who regulate are accountable downward to the public as customers, who choose day to day or even moment to moment, and thereby regulate the regulators very closely indeed.


Howard Baetjer Jr. is a lecturer in the department of economics at Towson University and a faculty member for seminars of the Institute for Humane Studies. He is the author of Free Our Markets: A Citizens’ Guide to Essential Economics.