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The Regulation of Private Schools Serving Low-Income Families in Andhra Pradesh, India

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  • Pauline Dixon
  • James Tooley

Abstract

This paper sets out some findings of a research project carried out in private unaided schools in low-income areas of Hyderabad, India. The part of the research project documented here was designed to examine the question: ‘Is the regulatory regime conducive to entrepreneurial action and market discovery’ with particular reference to the low-income schools in Hyderabad. This paper is narrowly focused, setting out the results of pattern matching empirical data with the Austrian economic concepts of entrepreneurship, rivalry, and market discovery. The research discovered that two regulatory regimes exist, one that is set out ‘on paper’ in the Education Acts and associated rules, and another that operates ‘in practice’. That is, there is a combination of regulations ‘on paper’ and regulations existing in an ‘extra-legal’ sector. Generally it was found that the regulations ‘in practice’ are consistent with market principles. Conversely the regulations set out ‘on paper’ are not conducive to entrepreneurial innovation and market discovery. Recommendations for potential policy initiatives include the possibility of legitimising the ‘extra-legal’ sector by introducing self-regulation possibly via self-evaluation systems for the private unaided schools. Copyright Springer Science + Business Media, Inc. 2005

Suggested Citation

  • Pauline Dixon & James Tooley, 2005. "The Regulation of Private Schools Serving Low-Income Families in Andhra Pradesh, India," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 18(1), pages 29-54, January.
    • Handle: RePEc:kap:revaec:v:18:y:2005:i:1:p:29-54
    DOI: 10.1007/s11138-005-5592-4
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    References listed on IDEAS

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    1. Jimenez, E. & Cox, D., 1989. "The Relative Effectiveness Of Private And Public Schools," Papers 60, World Bank - Living Standards Measurement.
    2. Jimenez, Emmanuel & Lockheed, Marlaine & Wattanawaha, Nongnuch, 1988. "The Relative Efficiency of Private and Public Schools: The Case of Thailand," The World Bank Economic Review, World Bank, vol. 2(2), pages 139-164, May.
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    Cited by:

    1. Pauline Dixon, 2012. "Why the Denial? Low-Cost Private Schools in Developing Countries and Their Contributions to Education," Econ Journal Watch, Econ Journal Watch, vol. 9(3), pages 186-209, September.
    2. Centre for Civil Society CCS, 2015. "Meta-Study of Literature on Budget Private Schools in India," Working Papers id:7950, eSocialSciences.

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