[Market Economy in Your Pocket] Education Also Needs Autonomy and Competition

Many people mistakenly believe that education is a public good. Based on this logic, they argue that the government should be responsible for and control education. However, education is a private good from which the person receiving the education benefits first and foremost. Even if it serves a public purpose, there is no reason for the government to exercise monopolistic authority over it. That is because better outcomes can be achieved through the market.

Educational competitiveness is, in effect, national competitiveness. Countries with education systems that cultivate intelligent, creative, and outstanding talent needed by society and businesses are vibrant and prosperous, whereas countries with standardized and egalitarian education systems cannot escape stagnation. In 2004, our country ranked 35th in national competitiveness, but 44th in educational competitiveness, showing that education is becoming an obstacle to national development.

To raise educational competitiveness, fundamental innovation is needed, and the essential solution is to leave to the market the functions monopolized by the government and allow education to be provided by the private sector.

Standardized equalization-oriented education forces consumers to purchase uniform educational products. Such education is neither just nor efficient, producing not only the inefficiency known as leveling down but also the contradictory result of actually deepening inequality.

By introducing market principles into education, parents and students should be able to choose schools, and schools should have the freedom to choose students. Through the diversification of educational offerings and competition among educational institutions, it is possible to achieve education that is both affordable and high in quality. For those who believe they have no choices within the country, early study abroad or emigration has become the only escape.

For our education system to break away from rigidity and closedness and become competitive, opening the education market is also necessary. There are already many countries actively opening their doors, including by recognizing educational corporations as joint-stock companies. The government, the Korean Teachers and Education Workers Union, and some civic groups oppose opening the education market on the grounds that it would create a sense of class disparity, but in reality they fear that it may threaten their monopoly over education.

Original title: [주머니 속의 시장경제] 교육에도 자율과 경쟁이 필요

Author: Center for Free Enterprise (CFE)

Date: 2005-08-01

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=column&pn=22&idx=10656