Abstract
Following the structural adjustment policies introduced in India in the beginning of the 1990s, a social safety net programme was launched in India, primarily aiming at protecting the sectors of primary education and primary health care. The chapter presents a critical review of the politico-economic dynamics of the business of aid for education in India, and in the process reviews the rationale for aid for education and its impact. It unravels quite a few important dimensions of the external aid business from which valuable lessons can be drawn for India and other developing countries.
Published in Journal of Asian Public Policy (Routledge, UK) 1 (1) (March 2008): 1–20. © Journal of Asian Public Policy.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Adams, J., 1990. Breaking Away: India’s Economy Vaults into the 1990s. In India Briefing 1990, ed. M.M. Button and P. Oldenburg, 77–100. Boulder: Westview Press and the Asia Society.
Addison, T., G. Mavrotas, and M. McGillivray. 2005. Development Assistance and Development Finance: Evidence and Global Policy Agendas. Journal of International Development 17 (6): 819–836.
Asiedu, E., and B. Nandwa. 2007. On the Impact of Foreign Aid in Education on Growth: How Relevant Is the Heterogeneity of Aid Flows and the Heterogeneity of Aid Recipients? Review of World Economics (formerly Weltwirtschaftliches Archiv) 143 (4): 631–649.
Ayyar, R.V.V. 2005. What Lessons Can DPEP Offer? Journal of Educational Planning and Administration 19 (1): 49–65.
Basu, M. 2006. Negotiating Aid: World Bank and Primary Education in India. Contemporary Education Dialogue 3 (2): 133–154.
Boone, P. 1996. Politics and the Effectiveness of Foreign Aid. European Economic Review 40: 289–329.
Bordia, A. 2000. Education for Gender Equity: The Lok Jumbish Experience. Prospects 30 (3): 313–329.
Boyce, J.K. 2002. Unpacking Aid. Development and Change 32 (2): 239–246.
Caufield, C. 1997. Masters of Illusion: The World Bank and the Poverty of Nations. London: Pan Books.
Chatterjee, S., P. Giuliano, and I. Kaya. 2007. Where Has All the Money Gone? Foreign Aid and the Quest for Growth. IZA Discussion Paper 2858, Institute for the Study of Labor, Bonn.
Collier, P., and D. Dollar. 2004. Development Effectiveness: What Have We Learnt? Economic Journal 114 (496): F244–F271.
de Renzio, P. 2006. Aid, Budgets and Accountability: A Survey Article. Development Policy Review 24 (6): 627–646.
Devarajan, S., and V. Swaroop. 1998. The Implications of Foreign aid Fungibility for Development Assistance. Washington, DC: World Bank, PPR 2022.
Dijkstra, A.G. 2002. The Effectiveness of Policy Conditionality: Eight Country Experiences. Development and Change 32 (2): 307–334.
Easterly, W. 2003. Can Foreign Aid Buy Growth? Journal of Economic Perspectives 17 (3): 23–48.
Edgren, G. 2002. Aid Is an Unreliable Joystick. Development and Change 33 (2): 261–267.
Government of India. 1993a. Education for All: The Indian Scene. New Delhi: Ministry of Human Resource Development.
Government of India. 1993b. District Primary Education Project. New Delhi: Ministry of Human Resource Development.
Government of India. 1995. DPEP Guidelines. New Delhi: Ministry of Human Resource Development.
Government of India. 2005. Economic Survey 2004–05. New Delhi: Ministry of Finance.
Griffin, K.L., and J.L. Enos. 1970. Foreign Assistance: Objectives and Consequences. Economic Development and Cultural Change 18 (April): 313–337.
Hayter, T. 1971. Aid as Imperialism. Harmondsworth: Penguin Books.
Hayter, T. 1985. Aid: Rhetoric and Reality. London: Pluto.
Heller, P.S. 1975. A Model of Public Fiscal Behavior in Developing Countries: Aid, Investment and Taxation. American Economic Review 65 (June): 429–445.
Jagannathan, S., and M. Karikorpi. 2000. EC–India Collaboration in Primary Education: Sector-Wide Approaches to Development Cooperation. Prospects 30 (4): 409–422.
Jones, P.W. 1992. World Bank Financing of Education: Lending, Learning and Development, 2nd ed., 2007. London: Routledge.
Kakwani, N. 1995. Structural Adjustment and Performance in Living Standards in Developing Countries. Development and Change 26 (3): 469–502.
Kakwani, N., E. Makonnen, and J. van der Gaag. 1990. Structural Adjustment and Living Conditions in Developing Countries. PRE Working Paper No. WPS 467, World Bank, Washington, DC.
King, K. 1991. Aid and Education in the Developing World: The Role of the Donor Agencies in Educational Analysis. Harlow: Longman.
Kraske, J., et al. 1996. Bankers with a Mission: The Presidents of the World Bank 1946–1991. New York: Oxford University Press for the World Bank.
Laxer, J. 1993. False God: How the Globalisation Myth Has Impoverished Canada. Toronto: Lester.
Lumsdaine, D.H. 1993. Moral Vision in International Politics: The Foreign Aid Regime 1949–1989. Princeton, NJ: Princeton University Press.
Magdoff, H. 1969. The Age of Imperialism. New York: Monthly Review Press.
Mason, E.S., and R.E. Washer. 1973. The World Bank Since Bretton Woods. Washington, DC: Brookings Institution.
Masud, N., and B. Yontcheva. 2005. Does Foreign Aid Reduce Poverty? Empirical Evidence from Nongovernmental and Bilateral Aid. IMF Working Paper No. WP/05/100, International Monetary Fund, Washington, DC.
Mavrotas, G. 2002. Aid and Growth in India: Some Evidence from Disaggregated Aid Data. South Asian Economic Journal 3 (1): 19–48.
MHRD-a (Ministry of Human Resource Development). 1995. Budgetary Resources for Education 1951–52 to 1993–94. New Delhi: Government of India, Department of Education.
MHRD-b. Various years. Analysis of Budgeted Expenditure on Education. New Delhi: Government of India, Department of Education.
MOF (Ministry of Finance). 2006. Expenditure Budget 2007–08. New Delhi: Government of India.
MOF. 2007. Expenditure Budget 2007–08. New Delhi: Government of India.
Mosely, P. 1987. Foreign Aid: Its Defense and Reform. Lexington: University of Kentucky Press.
Mosley, P., J. Harringan, and J. Toye. 1991. Aid and Power: The World Bank and Policy-Based Lending. London: Routledge.
Opeskin, B.R. 1996. The Moral Foundations of Foreign Aid. World Development 24 (1): 21–44.
Petras, J., and H. Veltmeyer. 2002. Age of Reverse Aid: Neo-liberalism as Catalyst of Regression. Development and Change 32 (2): 281–293.
Pronk, J.P. 2001. Aid as a Catalyst. Development and Change 32 (4): 611–629.
Psacharopoulos, G. 1973. Returns to Education: An International Comparison. Amsterdam: Elsevier.
Psacharopoulos, G. 1984. Contribution of Education to Economic Growth: International Comparisons. In International Comparisons of Productivity and Causes of the Slow-Down, ed. J.W. Kendrick, 335–360. Cambridge: American Enterprise Institute/Ballinger.
Psacharopoulos, G., and H.A. Patrinos. 2004. Human Capital and Rates of Return. In International Handbook of Economics of Education, ed. G. Jones and J. Jones, 1–57. Cheltenham: Edward Elgar.
Reddy, D.N. 1994. Double Standards of World Bank’s Policy Package: Accentuation of Dualism and Inequity in Education. New Frontiers in Education 28 (4): 369–383.
Rosen, G. 1991. The Indian Economy: Muddling Through in a Year of Turmoil. In India Briefing 1991, ed. P. Oldenburg, 75–95. Boulder: Westview Press.
Sachs, Jeffery D. 2005. The End of Poverty: Economic Possibilities for Our Time. New York: Penguin Press.
Sachs, J. 2006. Foreign Aid Is in Everyone’s Interest, Christian Science Monitor, 10 May. Reproduced from Los Angeles Times. Available from http://www.csmonitor.com/2006/0510/p09s02-coop.html.
Sadgopal, A. 2004. Globalisation: Demystifying Its Knowledge Agenda for India’s Education Policy. Durgabhai Deshmukh Memorial Lecture. New Delhi: Council for Social Development and India International Centre.
Schultz, T.W. 1961. Investment in Human Capital. American Economic Review 51 (1): 1–15.
Schultz, T.W. 1981. Distortions by the International Donor Community. In Investing in People: The Economics of Population Quality, ed. T.W. Schultz, 122–147. Delhi: Hindustan.
Swaroop, V., S. Jain, and A.S. Rajkumar. 2000. Fiscal Effects of Foreign Aid in a Federal System of Governance: The Case of India. Journal of Public Economics 77: 307–330.
Tarp, F., and P. Hjertholm. 2000. Foreign Aid to Development: Lessons Learned and Directions for the Future. London: Routledge.
Thobani, M., 1983. Charging User Fees for Social Services: The Case of Education in Malawi. Staff Working Paper No. 572, World Bank, Washington, DC.
Tilak, J.B.G. 1987. Economics of Inequality in Education. New Delhi: Sage.
Tilak, J.B.G. 1988. Foreign Aid for Education. International Review of Education 34 (3): 313–335.
Tilak, J.B.G. 1989. Center–State Relations in Financing Education in India. Comparative Educational Review 33 (4): 450–480.
Tilak, J.B.G. 1990. External Debt and Public Investment in Education in Sub-Saharan Africa. Journal of Education Finance 15 (4): 470–486.
Tilak, J.B.G. 1991. Privatization of Higher Education. Prospects: Quarterly Review of Education (UNESCO) 21 (2): 227–239.
Tilak, J.B.G. 1992. Education and Structural Adjustment. Prospects: Quarterly Review of Education (UNESCO) 22 (4): 407–422.
Tilak, J.B.G. 1994. External Financing of Education: A Review Article. Journal of Educational Planning and Administration 8 (1): 81–86.
Tilak, J.B.G. 1996a. Higher Education Under Structural Adjustment. Journal of Indian School of Political Economy 8 (2): 266–293.
Tilak, J.B.G. 1996b. How Free is ‘Free’ Primary Education in India? Economic and Political Weekly 31 (5/6): 275–282, 355–366.
Tilak, J.B.G. 1999a. National Human Development Imitative: Education in the Union Budget. Economic and Political Weekly 34 (10/11): 614–620.
Tilak, J.B.G. 1999b. Development Assistance to Primary Education in India: Transformation of Enthusiastic Donors and Reluctant Recipients. In Changing International Aid to Education: Global Patterns and National Contexts, ed. K. King and L. Buchert, 307–317. UNESCO with NORRAG.
Tilak, J.B.G. 2000. Education Poverty in India. NIEPA Occasional Paper No. 29, National Institute of Educational Planning and Administration, New Delhi (May).
Tilak, J.B.G. 2002. Financing Elementary Education in India. In India Education Report: A Profile of Basic Education, ed. R. Govinda, 267–294. New Delhi: Oxford University Press for National Institute of Educational Planning and Administration.
Tilak, J.B.G. 2003. A Decade of Turmoil in Higher Education in India: Faulty Assumptions, Questionable Approaches, and Undesirable Outcomes. Higher Education Policy and Practices 1 (1/2): 25–31.
Tilak, J.B.G. 2004. Absence of Policy and Perspective in Higher Education. Economic and Political Weekly 39 (21): 2159–2164.
Tilak, J.B.G. 2006. Cess-driven Allocations for Education. Economic and Political Weekly 41 (14): 1331–1333.
Triantis, S.G. 1962. Foreign Aid: Unrestricted or Conditional? Economic Development and Cultural Change 11 (1): 101–104.
UNESCO. 2002. Education for All: Is the World on Track? EFA Global Monitoring Report 2002. Paris.
UNESCO. 2006. Education for All: Early Childhood Care and Education (EFA Global Monitoring Report 2007). Paris.
Varghese, N.V. 1994. District Primary Education Programme: The Logic and the Logistics. Journal of Educational Planning and Administration 8 (4): 449–455.
Varghese, N.V. 1996. Decentralisation of Educational Planning in India: The Case of the District Primary Education Programme. International Journal of Educational Development 16 (4): 355–365.
Varghese, N.V. 1998. Investment in Education and Implications for Poverty Reduction in India: A Study of Primary Education Projects Funded by the European Countries. Occasional Paper No. 25, National Institute of Educational Planning and Administration, New Delhi.
Verspoor, A. 1993. More than Business-As-Usual: Reflections on the New Modalities of Education Aid. International Journal of Educational Development 13 (2): 103–112.
WCEFA (World Conference on Education for All). 1990. World Declaration on Education for All. New York.
Weiler, H.W. 1984. Political Economy of International Cooperation in Education Development. In Education and Development, ed. R.M. Garrett, 123–156. London: Croom Helm.
Weiskopf, T.E. 1972. The Impact of Foreign Capital Inflow on Domestic Savings in Underdeveloped Countries. Journal of International Economics 2 (February): 25–38.
World Bank. 1980. Education Sector Working Paper, Washington, DC.
World Bank. 1986. Financing Education in Developing Countries: An Exploration of Policy Options. Washington, DC.
World Bank. 1990. Primary Education: A World Bank Policy Paper. Washington, DC.
World Bank. 1994. District Primary Education Programme: Staff Appraisal Report (India). Washington, DC.
World Bank. 1995. Priorities and Strategies for Education: A World Bank Review. Washington, DC.
World Bank. 1997. Primary Education in India. Washington, DC.
World Bank. 1998. Assessing Aid: What Works, What Doesn’t and Why. A World Bank Policy Research Report. New York: Oxford University Press.
World Bank. 2001. India: The Challenges of Development: A Country Assistance Evaluation. Washington, DC.
Acknowledgements
Revised version of the Sri C.V. Subba Rao Memorial Lecture 2006, delivered at the 24th Annual Conference of the Andhra Pradesh Economic Association, Maris Stella College, Vijayawada, India (11–12 March 2006). The opinions expressed in the paper are those of the author and are not to be attributed to the Institution with which he is associated, or to the Andhra Pradesh Economic Association. The comments of K.C. Reddy and the other participants of the conference and of the anonymous referees of the journal are gratefully acknowledged.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2018 The Author(s)
About this chapter
Cite this chapter
Tilak, J.B.G. (2018). Political Economy of External Aid for Education in India. In: Education and Development in India. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-13-0250-3_14
Download citation
DOI: https://doi.org/10.1007/978-981-13-0250-3_14
Published:
Publisher Name: Palgrave Macmillan, Singapore
Print ISBN: 978-981-13-0249-7
Online ISBN: 978-981-13-0250-3
eBook Packages: EducationEducation (R0)