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                    The Corporate Takeover of Childhood
   Schools are being privatised in order to develop a new export industry

                             By George Monbiot
                              8th January 2002
                             The Guardian [UK]



     For many children, a new school term begins with apprehension. But
     yesterday it wasn't just the children who were worried about what
     they might encounter. Every term now brings another government
     scheme, to re-finance, outsource, subcontract, reclassify, zone or
     cluster some aspect of the handling of our children. And parents,
     reasonably enough, are becoming ever more suspicious.

     What these changes mean, confusing as they are, is privatisation.
     It won't happen all at once, as Labour is anxious to avoid the
     confrontations which have taken place between parents and private
     companies in the United States. But we should be foolish to
     mistake the government's purpose. The general privatisation of
     schooling in Britain has begun.

     Several theories have been advanced to account for Labour's
     strange enthusiasm for disposing of our schools, but the most
     convincing I have seen is the one articulated last year by a
     lecturer at the University of Central England called Richard
     Hatcher, in the journal Education and Social Justice.

     A few years ago, prompted by the powerful European Roundtable of
     Industrialists, Tony Blair identified the "knowledge economy" as
     the driver of future British growth. The UK would specialise in
     industries such as information technology, biotech and second
     generation services. As the export value of manufacturing, farming
     and even some of the traditional service industries declined,
     Britain would become a market leader in exporting a new
     international business: privatisation.

     This strategy has so far been resoundingly successful. The private
     finance initiative, for example, was pioneered in the UK, then
     exported by British companies to countries as far apart as
     Finland, Canada and South Africa. Though their sales of hospitals,
     roads, prisons and waterworks are of dubious value to the
     recipients, they are massively profitable for our corporations,
     not least because, having arrived on the scene before anyone else,
     they are all but free from foreign competition. Now Blair wants to
     do the same for education.

     The UK's private education industry, Hatcher argues, "has to be
     fostered and nourished by the state until it is strong enough to
     compete with US and other competitors". Once they have gathered
     enough money and experience from the domestic economy, schooling
     companies can then try to penetrate the markets of other
     countries. While the United Kingdom's schools might one day be
     worth some pounds25 billion a year to potential "investors", the
     US system has been valued at $700 billion. Worldwide, education is
     worth trillions. If the UK can seize an early, substantial share
     of this market, our economy will become, to all intents and
     purposes, recession-proof.

     So our own children are, in this picture, simply the crash dummies
     with which the UK tests its future export policy. Companies will
     practise on them until they find the right economic formula and
     attain sufficient economies of scale. Then they will apply that
     formula worldwide.

     This theory appears to explain the remarkable variety of
     privatisation and part-privatisation schemes currently being
     tested in Britain. Education action zones and city technology
     colleges have failed to produce the necessary cash, so they have
     been superseded by a new experiment in the shape of the city
     academies. These schools receive 80% of their money from the
     state, but are controlled by private companies. Elsewhere,
     existing comprehensives, like King's Manor in Guildford and
     Abbeylands in Addlestone (both in Surrey), have been franchised to
     corporations. Private schools are now considering the purchase of
     parts of the state sector.

     The government has also been experimenting with the management of
     Local Education Authorities, privatising either some of the
     services they offer, or, in the case of Leeds, the entire outfit.
     In some places, it has sold off school inspections, in others
     teachers' pay and pensions. It has been "market testing" several
     different versions of the private finance initiative, in which
     companies provide buildings and services to education authorities
     for a fee. It has developed a private market, already worth some
     pounds1 billion, in "e-learning", or computer-based education.

     These efforts have established a climate in which corporations are
     able to gain unprecedented access to schoolchildren. Last year,
     for example, the government agency Scottish Enterprise distributed
     20,000 copies to schools of a magazine called Biotechnology and
     You. This purports to be a "teacher's resource" helping children
     to navigate the moral and scientific complexities surrounding
     genetically engineered crops. But Scottish Enterprise failed to
     warn teachers that the "Biotechnology Institute", which published
     it, is a lobby group funded by Monsanto, Novartis, Pfizer and
     Rhone-Poulenc. The magazine repeats Monsanto's misleading claim
     that its best-selling herbicide is "less toxic to us than table
     salt". It attacks organic farming and suggests that it would be
     "immoral" not to develop GM crops.

     In England, the old careers advisory service run by the Department
     for Education is gradually being replaced by a new agency, called
     Connexions. Once they have registered with this service,
     schoolchildren are given a swipe card, on which they accumulate
     points every time they turn up. They trade the points for
     discounts from the consumer goods listed on the Connexions
     website. The choices they make are monitored, and the information
     is then given to the service's "commercial partners". Last year,
     the education firm Capita, which runs Connexions for the
     government, told the Times Educational Supplement that companies
     such as McDonalds and PlayStation Magazine would have "the
     opportunity of seeing what these young people take up. They can be
     a very difficult group to reach."

     By themselves, few of these developments will bring people onto
     the streets. "Labour," Richard Hatcher predicts, "will move
     cautiously and gradually, carefully preparing each step
     ideologically." Or, as the chief executive of the "edubusiness"
     firm Nord Anglia commented when he read the white paper the
     government released in September, "This is an astonishingly
     important point of transition. It is tentative, because it's
     politically sensitive, but it opens the door for the private
     sector to get involved, bit by bit."

     We could argue about whether or not these steps towards full-scale
     privatisation improve or damage standards in education. In the
     United States, the evidence suggests that privatisation has been
     disastrous. In the UK, so far, the results are mixed. But this
     really isn't the point. Our schools are being privatised not for
     the benefit of our children, but for the benefit of our
     corporations, and the export economy to which, the government
     hopes, they will one day contribute. Children are simply the raw
     materials with which they work. They will unless their parents
     demand an end to this experiment of being traded on the world's
     stock markets like so many barrels of oil.