Does 'corporate' private education raise standards?

Private education is a growing enterprise in many parts of the world.  In the United Kingdom and United States, inconsistency in standards of state education, and a recent prolonged period of rising disposable incomes, have led an increasing cross section of populations to opt out of state provision, and pay for a perceived higher standard of education of their children. 

At the same time, in many parts of the world the skilled labour force has become increasingly mobile.  This has led to growth in the provision of international educational institutions, which aim to provide a high quality, cosmopolitan educational experience, which – through widely recognised qualifications such as the International Baccalaureate – can be used to secure access to higher education across a range of countries of origin.

New private education clients

Growth in demand for private education has also affected provision.  As more private schools have opened, catering to an ever-wider range of budgets and educational requirements, parents with less disposable income are now able to give their child a private education.  This has driven more intense competition, with schools needing to be run efficiently in order to attract and retain suitably qualified teaching staff and maintain required levels of facilities. 

Private education firms

A number of private education firms have emerged in recent years, seeking to exploit economies of scale to offer relatively low cost higher education, while competing with more prestigious institutions on quality.  For example, GEMS was founded in Dubai and now runs schools in several continents, including Europe.  Similarly, Cognita runs schools across the age ranges in the United Kingdom and a number of other countries, and has as its chairman former UK chief inspector of schools Chris Woodhead. 

Both these companies have been controversial in the United Kingdom, with Cognita facing criticism both from private sector competitors and the state sector for using discount pricing to 'poach' high achieving students from nearby institutions when it has opened schools.

Higher standards?

Despite perpetual government pledges across the world to improve the quality of state education, a private sector will continue to flourish for as long as there is a perceived need to opt out of public sector provision, and parental disposable income levels that allow such a choice to be made. 

This means that more private education corporations are likely to emerge internationally, leading to ever-greater levels of competition.  This could fundamentally change the nature of private education, particularly outside the high-end 'elite' sector, but also has profound implications for the state sector.  Private institutions will be able to exploit economies of scale and increasingly efficient management structures to attract a great deal of teaching talent, and also offer free – or at least highly subsidised – places to gifted students. 

However, initiatives such as the UK government's city academy programme also offer opportunities for education businesses to become involved in state education.  While up to now, this has been highly controversial, it could have the long-term effect of raising levels of investment in state education, while improving efficiency in the management of schools, and raising the quality of the student experience. 

Commoditisation of education in the private and public sectors may also lead to parents – and students – becoming more aware of the standards they should expect and proactive in ensuring these are obtained.