Why are there not enough good schools catering to economically weaker section of the society? We all know the reasons – There is no financial incentive for an entrepreneur to open a school in area where people cannot pay. Compare this fact to metros and tier-2 towns where hundreds of new schools are coming with fees range of 15K+ / annum. These schools are either run by politicians, real estate guys or well-known companies [no surprises, schools are profitable model specially if you have access to real estate and cheap source of money]
Here are 3 ideas to solve this problems
1. The Education Fund – This fund is raised from people who look for social return on their investment. This is not donation but an investment that earns zero % interest or very low-interest rate and invested for a long-term (typically 10+ years). The Education Fund invests this money in instruments providing decent returns and since the investment duration is for a long-term, there is some guarantee of return, lets say, it is 10%. This return is used to fund the education of deserving students. Number of students who can benefit is directly proportional to the amount of money that can be raised and rate of return that can be earned on this money. Using technology enabled learning, lets assume that good quality education can be imparted with the cost of around Rs 5K per annum per student. That means, we need around 50K as principle amount deposited for each student. Now someone can ask – why complicate so much. If a person is purely interested in social ROI, why should he care about this complicated model and not just donate 5K every year? For following reasons – 1) It will save you hassles of writing cheque every year. 2) Probably, there is higher chance of finding an investor than a donor 3) The same 50K will impact lives of students for many years – which would otherwise need a solid commitment and discipline for such a long duration.
2. Guru Dakshina – In the age of Gurukuls, students did not get free education. It was kind of loan which students needed to pay back once the education was done. It was called Guru-Dakshina. Similarly, we can have a model where the payback comes when students pass-out and are employed. For few initial years this inflow would be zero [ as someone said, education is a very long-term investment]. After few years, we have a flow of cash, which makes it more self sustainable. 500 passing out students can fund 500 new students. This will also bring accountability on the education system – if we cannot make students employable, in a practical world, we have failed.
3. School in a Box – To bring down the cost of education. With such a large population and so little money, there is no other option but to cut the cost of education. Can good quality education be provided at such a low-cost. Technology and standardization may come to rescue. Lets say we have School in the box concept (phrase borrowed from UNICEF’s) – a completely standardized set of curriculum based on digital media and learning management system. If this can enable us to cut out dependency on good teachers and world-class infrastructure. In such scheme of things, can the cost of opening a new school be brought down? Can we build a good school with Rs 1million instead of Rs 10million.
No new idea comes without a problem. The first idea is not scalable, the second idea is cash flow negative for many initial years and the third idea needs a lot of investment and research to create such a concept. May be, if all the three ideas are applied together, these problems can be nullified. In any case, it is very difficult to say unless a solid research is done by getting on the roads. Hope one day we see these models working.