Saturday, December 01, 2007

The Dawn of Corporatist Education

Opinion, The Jakarta Post, 1 December 2007
Published as "The Rise of Privately Funded Education" *

The delivery of education in Indonesia has long been operated by private educational institutions. But more recently, with increasing cost of running an educational institution and funding its programs, and decreasing government subsidies to support such costs, most educational institutions have to rely on private corporations to fund its educational programs. Even public universities have started to become privatized, while more and more corporations have established private educational institutions.

This article attempts to explore the social and cultural cost of privatization of education and the possible danger this may bring to the development of the society. The case of single corporations founding and funding private educational institutions will be discussed in more depth due to its mushrooming growth and especially alarming repercussions.

With the expansion of free market and its campaign for privatization, Indonesia is not the only country that faces the challenges of funding educational institutions. Even universities in the developed countries have to seek funds from the private sectors. Naomi Klein, in “No Logo” (2000) warns that researches being funded by private sectors can compromise the integrity of research findings. She cites a study that “found that companies maintained the right to block the publication of findings in 35 percent of cases, while 53 percent of the academics surveyed agreed that “publication can be delayed”” (Cohen, Florida, & Goe, as cited in Klein, 2000: 112-113).

In Indonesia, private corporations not only fund educational programs and research projects, but single-handedly found educational institutions, fund its whole operation, and seek profit from providing educational services to the society – creating educational systems that I would call corporatist education.

The term corporate university refers to educational programs and institutions founded by corporations to train their employees in core beliefs, operating and value systems of the corporations. But corporatist** educational institutes, the private corporations in Indonesia, go beyond this sphere to form and deliver main stream educational content to those who can afford their ‘services’.

While many of these corporations may found educational institutions out of sincere desire to contribute towards improvement of the quality of education in Indonesia, others may do so for more practical reason that rises from the simple equation of market demand. Still others attempt to bring in more fundamental vision to the kind of community and future generation they seek to form: the ones that would conform to their corporate beliefs and extend their reaches to more fundamental facets of our lives.

These latter corporatist educational institutions run the operation of their educational institutions very similar to the way they would run corporations – with cost benefit factors, marketing surveys, and the running of marketing and management of the institutions by professionals who may or may not have interests in the value of educational and academic quest for development of knowledge. In these institutions, students and their parents are customers whose demands must be met regardless of academic integrity.

Some of these corporatist educational institutions manage their educational institutions the way corporations would manage their offices and commercial areas: highly secured, gated, exclusive communities with their own privately run food courts, parking lots, and students’ dormitories. Every now and then, these institutions would run sponsored and marketing events where other corporations could promote their latest products to students. Some of them even look and feel like the malls, where people who ‘don’t belong’ won’t have access to the educational compound.

In describing the effect of corporate sponsorship to the “re-engineer[ing of] some of the fundamental values of public universities,” Klein mentions that “[m]any professors speak of the slow encroachment of the mall mentality, arguing that the more campuses act and look like malls, the more students behave like consumers” (Klein, 2000: 109).

To make matters worse, corporatist educational institutions polarize even more the already divided social economical classes of Indonesian society. In his book, “Manifesto Pendidikan Nasional” (National Education Manifesto, 2005), Prof. H.A.R. Tilaar describes the impact of consumerism to education: “… most of [national pluses schools] are very elitist because they are very expensive. This consumerist life style is highly contrasted with the everyday realities of many children on the streets, many of whom are homeless … and have no access to education. [It] has dampened our feelings … towards the poverty that majority of Indonesian society is living in” (Tilaar, 2005: 27).

To illustrate the above point, several weeks ago, I was invited give feedbacks to presentations by fourth-year architectural students from one of the corporatist universities. I was stunned by one particular presentation of a student’s point of view about an urban problem she observed, and was even more baffled by her proposal. She noted that the price of a pack of instant noodle was cheaper at Carrefour than at the (illegal) street vendors. However, the (legal) inhabitants by the railroad of the Mangga Dua area she investigated did not go to Carrefour because they had to take a roundabout walk or take the ojek (motorcycle taxi).

Her design proposal was a building that would bridge over the railroad track into the Mangga Dua Mall so the inhabitants could go directly to Carrefour. Thus, in her reasoning, the legal inhabitants of the area would no longer need to purchase items from the (illegal) street vendors or use the service of ojek – because “by law these (illegal) people would have to anyway be evicted from the area.”

In her argument against corporations sponsoring educational events and programs, Klein stated: “When corporations sponsor an event on a university campus [or school] … they cross an important line between private and public space – a line that is not part of a consumer’s interaction with a corporation as an individual shopper. We don’t expect morality at the mall but, to some extent, we do still expect it in our public spaces – in our schools, national parks and municipal playgrounds” (Klein, 2000: 445).

With the lack of national parks and municipal playgrounds in Indonesia, where social exchanges among different social economical classes could occur, educational institutions have become our last frontiers where ideal form of the society could be envisioned, discussed, debated, and continued to be developed. Yet, with the constant growth and encroachment of corporatist educational institutions, could we still hope for such public arena?

Notes
* This is the original, unedited version.
** Not in the original manuscript: The term corporatist is borrowed from Klein's "Shock Doctrine" (2007):

"Corporatism, or "corporativism," originally referred to Mussolini's model of a police state run as an alliance of the three major power sources in society - government, businesses and trade unions - all collaborating to guarantee order in the name of nationalism. ... an evolution of corporatism [can be defined as]: a mutually supporting alliance between a police state and large corporations, joining forces to wage all-out war on the third power sector - the workers - thereby drastically increasing the alliance's share of the national wealth" (Klein, 2007: 86).

10 comments:

Unknown said...

It seems to me that Indonesia's private universities are similar to most universities in the US. Except the ones in the US have been around longer, and have become more respected.

Most of the criticisms you leveled at Indonesia's private universities could be leveled at Stanford or Harvard where you have a lot of research, buildings and programs sponsored by big multi-national companies.

Private education occurs because there is demand for it, no one forces it, all participants are free to choose where and how they study - which I feel can only be a good thing.

I have heard very few people evangelise Indonesia's government backed education system, it's no wonder that private education is so popular over there.

Dewi Susanti said...

Hi John,

I’m not against private educational institutions or sponsorship of educational institutes by private corporations per se. There’s no way we can avoid this kind of ‘partnership’ between educational institutions and private corporations.

What I am particularly wary of is the many cases of a single corporation funding and running the whole educational institutes, which means that it’s the one corporation envisioning and setting the future and life goals of many young generations. And I haven’t heard of cases like this in developed countries.

Microsoft, Google, and many corporations have their own campuses – for their own employees. Imagine these corporations funding and running educational systems from elementary, secondary, to tertiary levels – wouldn’t you start questioning them? I guess you wouldn’t worry so much if Linux does such a thing, but what about Microsoft? This is what I see is happening in Indonesia. Major real estate companies (Lippo Group, Ciputra, Sinar Mas) do not stop at building whole cities, but also providing whole educational systems (which used to be run by other private schools not related with the corporations).

Again, in developed countries, you probably don’t have to worry as much, because like you said, there are many choices of where and how they study. But in my own experience teaching in Indonesia, many parents and adult students are not well informed in making their decisions about why they choose certain school over others. Many thinks that those who run schools know what they are doing and these are unquestionably good in quality and value.

We Indonesians have more reason to worry about, precisely because the public education system is rather poor. Private educational institutions are considerably more expensive than public educational institutions because they need to cover their expenses – which is fair. But this leaves us with a question of who will deliver quality education for majority of Indonesians who can’t afford private schools? We don’t have that much choice when it comes to what kind of education and how it is delivered.

Unknown said...

i understand ur concerns.

but ur whole argument seems to rest on the naivety of Indonesian parents. as with many other things, i suspect ppl aren't so naive -- most parents have a good idea about what's best for their kids most of the time.

(btw, western countries are also not immune to corporatism.)

Dewi Susanti said...

Thanks for the link John. Now imagine if Microsoft open educational institutions for the public, and others start to follow :)

My original argument is rested on several facts:
- privatization of education (apply generally throughout the world).
- running and funding of private educational institutes by single corporations (in Indonesia).
- diminishing public spaces (in Indonesia).

In my first comment, I add two more opinionated observations:
- lack of choices in type of educational institutions (in Indonesia).
- parents and students not having good enough reasoning in choosing schools.

Although I may be overgeneralizing and cynical about the last two observations, I do think that my concerns are based on stronger grounds - or so I hope :)

Arya Gaduh said...

Dewi:
You know what I'm going to say, right? ;-)

I think your criticisms is simply misplaced. I agree with John: Everything you described can equally be applied to Oxford, Cambridge or Harvard. Besides, these Indonesian "corporatist universities" also gave scholarships.

From a pragmatic point of view, they expand tertiary education, which can't be bad.

As for your rantings about morality, do you think that professors in "corporatist universities" are less moral than those in "non-corporatist universities"?

I think, you overgeneralize -- thanks to reading too much Naomi Klein. ;-)

On the side, I'd like to know which part exactly that you think is wrong with the student's line of reasoning.

Dewi Susanti said...

I didn’t say *all* private universities are prone to this criticism, and in my view, the article serves more as a warning for most, and criticism to few – as I wrote in my responses to John.

I’m not criticizing the professors, but I won’t put too much faith on them either as the gatekeepers of education, because in reality, when everyone is thinking about being pragmatics, who would care that much about who set the course or vision of the whole university? The morality issue is addressed more to the few corporatist universities.

In a free country, there’s nothing wrong about the statement of the student; I just happen to disagree with her, and thus I also have the right not to grade her presentation because it’s against my principles :)

Talking about Naomi Klein, have you read her “Shock Doctrine”? I’m wondering how economists would think about this book and her attack against Friedman’s free market ideals – which I know very little about.

Arya Gaduh said...

Dewi
You wrote:
"In a free country, there’s nothing wrong about the statement of the student; I just happen to disagree with her, and thus I also have the right not to grade her presentation because it’s against my principles :)"

Even if it's merely a difference in opinion, you must have an argument against it? It's not just "I disagree and hence it's my right not to grade her". That's not really educational, is it?

No, I haven't read Klein. But here is Mankiw's take on Klein's criticism.

Dewi Susanti said...

My argument has to do with the fact that in problem solving and in trying to make a solution that works, we should not create more problems for other people/ in other areas (and let other people deal with that). This often is an indication that our problem finding process may not be very thorough and may not address the root cause of the problem.

This is especially important in design and planning, because if one only thinks about the solution for a particular area or group of people, this solution may very well cause problems for other areas/ groups of people. One simple example is drainage issue: if we only think about drainage in our house or particular area, we’re thinking about raising the whole house/ area. But by doing this, we cause other houses/ areas to flood.

Let me know when you have read Klein’s book. Her investigation went beyond Chile and discussed the impact of free market in China, Russia, South America, etc. through which she mapped out the strong relationship between economics and politics, and criticized economists for blaming it on politics/ politicians :)

Anonymous said...

Unlike the comments from your two respondents I could not agree with you more.
There is no doubt that the privatisation of education leads to elitism within the structure of our society and the difference between the 'haves' and 'have nots' just gets greater and greater.
To compare the privatisation of educational institutions in the US and UK to that in Indonesia shows a degree of naivity and a lack of understanding of the goals and impact of education within the community.
Education is a tool to create social mobility within our community and it should be the right of all to be able to access such. In nations where access to quality education is a government initiative we see that the social productivity of education is much higher. Such countries are leading global thinking.
Compare this to Indonesia where there is not quality free government sponsored education. The consequences are that kids are not getting access to quality, learning, drop out rates are very high, and bright young intelligent youngsters are being lost to the future participation and development of this country.
So what is the impact of Indonesia, on global thinking? Very little.
In the meantime private education institutions are flourishing, developing their own kind of graduates, reproducing the society and defining participation in society based on socio-economic status not on anything to with human learning capacity.
To me Indonesia will continue to be a non competitive nation as long as quality education lies in the hands of the corporate world.

Dewi Susanti said...

Ken, thank you for leaving your comments on my article, and to not only defend but making an even stronger argument to support it.