Free secondary education

The government has indicated its plan to make education free up to secondary level if it is allowed to present the budget in parliament. It is a big if, since the main opposition party, Unified Communist Party of Nepal (Maoist), has threatened to block the caretaker government from tabling any budget. Given the strange parliamentary tradition in this country wherein one opposition member can hold up House proceedings, there is little chance that the budget proposal will make it to the House and get passed by it so long as the main opposition party is up in arms against the government.



This education-related proposal from the finance ministry interests us not because of the deadlock in parliament but because of its potential to re-ignite the debate about free education. In a country where the literacy rate is just around 60 percent and given the tremendous empowerment that education can bring to an individual, investment in education on any scale should be welcomed. Empirical studies have shown that per dollar investment in education brings higher returns than similar levels of investment made in roads or other infrastructure.



But that´s theory, and we wish things were as simple and straightforward in practice. Many countries have wasted scarce resources trying to prop up their education sectors. There are questions about how much subsidy is good for education, where that subsidy should be directed, and who should benefit from it. A number of studies also show that primary education is perhaps the best area to subsidize since it has the greatest empowering impact on individuals. Since our literacy rate is very low and dropout rates at the primary school level are high, it makes sense to invest more in primary education. So we really don´t understand why the finance ministry is proposing to increase subsidy and incentives at the secondary level as well.



However, frankly speaking we really don´t have a position on the issue. We consider education to be crucially important for Nepal, as it is for any country, but at the same time it´s also something far too complicated for us to have a particular position on how investments and subsidies should be channeled. We are concerned because we have doubts whether the ministry held comprehensive discussions with all the stakeholders before taking such a crucial decision. Donors are important stakeholders in Nepal´s education since they fund over one-fourth of the education budget. We urge the ministry, the donors and other stakeholders to engage in a comprehensive dialogue and come up with a subsidy policy and program that suits the needs of this country.

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