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The way education is perceived socially and politically has changed significantly over the last half century. The growing pervasiveness of economic analysis in education has contributed significantly, among other societal and political factors, to a reformulation in the way educational organizations are conceived, particularly due to the economic and social effects of their activity. One of the major dimensions of that change has been the strengthening of a discourse that emphasized the advantages of market and competitive forces over public regulation and of privatization and quasi-private rationales over public ones. Despite significant social and political resistances, the education sector has been experiencing a growing influence of market and competitive forces, and this is particularly visible in the higher education sector. Hence, several policy developments have led to the strengthening of market forces and competition in higher education. This encompasses changes in the contextual conditions through which market forces have been strengthened and the subsequent impact of marketization, competition, and privatization policies at the institutional level. However, this faces resistance, not least due to the peculiarities of educational sectors and institutions, that begs reflection about the potential and limitations of approaching education institutions as economic organizations.

Article

The neoliberal revolution negatively impacted the American society and educational system. Several major contributors to neoliberal thinking helped develop the theory. Two examples of utilizing neoliberal principles are the Sears corporation and the nation of Honduras, both teetering on the brink of collapse. The GINI Index can be used to provide insight into American economic inequality. Neoliberalism as a social movement and its impact on the American educational system are analyzed. Major conceptual components of neoliberalism, including competition, choice, privatization, standardization, accountability, marketing, and deregulation, are presented. Legislation using these principles include No Child Left Behind, Race to the Top and the Every Child Succeeds Act (ESSA). The testing, voucher, and charter movements are discussed. Three kinds of charter schools together with their academic and segregating results are analyzed. Charter and voucher supporters have become active in the political process to increase the charter component of public education. Corruption in charters and vouchers and neoliberalism’s undermining of public support for public education is treated. Online education’s positive support for small and rural schools, particularly for high schools, is noted, as is online education’s assistance for credit recovery. Another impact of neoliberalism on public education is noted, that is treating charters and vouchers as commodities which provide opportunities for private investment.