In 1994, the majority of countries which founded the WTO in 1995, concluded a first general agreement on the liberalization of services (GATS). Within the framework of the General Agreement on Trade in Services (GATS) liberalization in international trade of services is supposed to be negotiated progressively 1 . Among 12 service subsectors, education is explicitly featured in GATS. However, before the inclusion of education in the Service Round negotiations as part of the Doha Round in the year 2000, educational services did not draw much attention. One reason being the strong underestimation of their market shares.
The EU, as one of the Contracting Parties of the GATS, has already agreed at the Uruguay Round in 1994, to guarantee free access and non-discrimination for foreign competitors in almost the entire education sector, that consists of primary, secondary, tertiary education as well as adult education. Until 2005 the ongoing Doha Round scheduled further liberalization of educational services and thus the EU is likely to be under the pressure to even further liberalize its education sector. Since large parts of the education sector in the EU belong to public service, liberalization of educational services is a subject of heated debate.
Neoliberal economists and politicians view the privatization of public services as the best way to increase both efficiency and the benefit for all members of the society. Anti-globalization activists fear the loss of public control over essential public services and regard the society as exposed to the ruthless greed of gain by multinational companies. Moreover the anti-globalization activists complain about the redefinition of educational services as a profitable product.
The international trade of educational services thus remains a highly controversial issue, causing the necessity for careful deliberation of the particular contents, chances and risks of the liberalization of educational services. This essay will take up this kind of deliberation, explaining the relevance of educational services in international trade and the significance of education as a public service.
Table of Contents
Introduction
1. The significance and development of the education sector
1.1. The four modes of international trade in educational services
1.2. Significance of educational services in international trade
1.3. Education as a public service
2. GATS main principles
3. The EU as an actor in GATS
3.1. The EU’s negotiating position concerning educational services in the WTO Uruguay Round 1986-1995
3.2. The EU’s negotiating position concerning educational services in the WTO Doha Round 2001-2005
4. The chances of liberalizing educational services in the tertiary education
5. The risks of liberalizing educational services in the tertiary sector
Conclusion
Objectives and Topics
This paper aims to examine the role of the European Union within the GATS framework regarding the liberalization of educational services. It explores the tensions between viewing education as a tradable commodity and as a fundamental public service, while addressing the potential economic impacts and social risks involved in these negotiations.
- The role of the EU as a key negotiator in the GATS framework.
- Economic and social implications of liberalizing tertiary education.
- Distinction between "public service" and "marketable educational product."
- Analysis of negotiation strategies during the Uruguay and Doha Rounds.
- Impact of global trade agreements on national education policies.
Excerpt from the Book
1. The significance and development of the education sector
“High quality education can positively influence labour factor conditions of a country´s economic development. The availability of highly skilled labour force is a factor contributing substantially to national economic development. Most countries consider investment in education as being of strategic importance to enhance national competitiveness and to increase opportunities to attract foreign investment.”
Without doubt services in the education sector are of outstanding importance not only to individuals but also to the competitiveness and future of a country. The OECD Education report published in 2004 proves, that countries, in which the number of graduations in secondary education has increased at least 5 per cent, benefit from decreasing unemployment and rising income. Each additional year of education, that a member of a given society enjoys, increases the GDP from 3 up to 6 per cent. The more it is to notice that OECD countries have reduced their expenditures on education from 7 per cent of the their GDP in the 70ies to 5,9 per cent in the 90ies. The reduction is mainly due to the flourishing private education sector, a tendency that is supposed to continue.
Summary of Chapters
Introduction: Provides the historical context of the GATS and outlines the contentious debate surrounding the liberalization of educational services.
1. The significance and development of the education sector: Analyzes the economic importance of education and introduces the four modes of trade defined by GATS.
2. GATS main principles: Details the fundamental legal framework of GATS, including principles like non-discrimination and market access.
3. The EU as an actor in GATS: Explores the EU’s position and negotiating strategies during the Uruguay and Doha trade rounds.
4. The chances of liberalizing educational services in the tertiary education: Discusses the potential efficiency gains and benefits of increased international competition in higher education.
5. The risks of liberalizing educational services in the tertiary sector: Highlights concerns regarding quality standards, the loss of public control, and the commercialization of knowledge.
Conclusion: Summarizes the irreversibility of service trade trends while acknowledging the unresolved challenges in defining education's social purpose.
Keywords
GATS, European Union, Educational Services, Liberalization, Tertiary Education, WTO, Public Service, Doha Round, Uruguay Round, Market Access, Privatization, Globalization, Trade in Services, Quality Assurance, Education Policy
Frequently Asked Questions
What is the primary focus of this research paper?
The paper focuses on the European Union's stance and activities regarding the liberalization of educational services within the General Agreement on Trade in Services (GATS).
Which central thematic areas are explored?
The study explores the classification of educational services, the legal principles of GATS, the evolution of EU negotiating positions, and the perceived benefits and drawbacks of market-driven education.
What is the main research objective?
The objective is to provide a balanced analysis of how the liberalization of trade in educational services challenges the traditional European understanding of education as a public good.
Which scientific methodology is applied?
The work utilizes a policy-oriented analysis, reviewing trade agreements, institutional reports (OECD, WTO), and existing scholarly critiques regarding globalization and service liberalization.
What are the main topics discussed in the body of the text?
The body covers the history of education in GATS, the structural modes of trade, specific EU policy responses to WTO requests, and the arguments from both economic liberals and anti-globalization activists.
Which keywords characterize this work?
Key terms include GATS, liberalization, tertiary education, public service, European Union, and trade policy.
How does the Bologna Declaration influence the topic?
The Bologna Declaration serves as a regional example of standardizing and harmonizing education, which provides a specific context for how the EU manages its internal educational market versus international trade pressures.
What role does the "Trojan horse" metaphor play in the conclusion?
It describes the fear that importing educational services could inadvertently lead to a loss of cultural and linguistic diversity, as new cultural values are introduced alongside standardized English-language programs.
- Citar trabajo
- Joanna Mastalerek (Autor), 2005, The European Union as an Actor in the General Agreement on Trade in Services - Contents, Chances and Risks of Negotiations, Múnich, GRIN Verlag, https://www.grin.com/document/34908
