Edu-business

Pearson’s insidious plan to profit from poor families in developing countries

Global education business, Pearson, continues to find new ways to make a profit from the education of children around the world. As its influence and profit growth stagnates in many economically developed countries, where it has made billions of dollars from providing standardised testing regimes and associated services, it has turned its attention to economically developing countries.

Pearson is growing its business in counties in Africa, South America and Asia, including India, where nations struggle to provide national systems of schooling. I believe what it is doing in these developing nations is perhaps even more insidious than the way it profited from helping impose a testing mentality to almost every major schooling authority in almost every developed democratic country.

Why Pearson is losing influence in economically developed democracies

Pearson is a big provider of textbooks, learning resources, assessment services, online learning needs and teacher professional development. Providing these services to economically developed countries such as the USA, UK and Australia has proved lucrative for Pearson over the past decade. Just last year it made over $5 billion in global sales and over $1 billion in adjusted operating profit. While these figures are comparatively strong, since 2012, Pearson hasn’t experienced any significant overall growth as a company. In fact, last year Pearson suffered a 40% drop in share price performance and has recently announced the need to cut 10 per cent of its global work force or 4,000 jobs.

This performance can be explained by a number of factors to do with the stabilisation and even reduction in sales in Pearson’s core markets. For example, let’s consider Pearson’s assessment business. At the turn of the 21st century standardised testing could be found at the core of many education systems, and the mandate for annual testing worked to open the space for commercial education providers to prosper.

Against this backdrop, the education market was reinvented around test development and preparation, data analysis and management and the related provision of online curricular and remedial services in an attempt to improve students’ performance outcomes.

Yet, the weight of evidence suggests that standardised testing has failed to improve education outcomes. Instead, standardised testing has been blamed for a narrowing and simplifying of curriculum that has undermined both teaching and learning. Given this, policy has started to change. The passage of the Every Student Succeed Acts (ESSA) in the USA (a reform to the No Child Left Behind policy) has given power to the States to decide how they test their students.

To put this in context in Australia, the USA has effectively scrapped their NAPLAN type tests and allowed their states and territories to decide how, when and what they will assess their students on. This move has obvious consequences for Pearson. Without nationally defined standards many of the large-scale tests developed by Pearson for national use are no longer required. This means that the testing market has been opened up to competition from lower cost alternatives, confirming Pearson no longer has the monopoly it once did.

Pearson’s ‘growth’ plan for developing nations

However, the answer to some of Pearson’s testing woes in economically developed countries has presented itself in economically developing countries.

Pearson’s Affordable Learning Fund (PALF) has made an $80 million investment in low-fee private school chains in Southern Africa, Asia and India. Pearson’s rationale for investing in low-fee private schools is based on the charitable notion that it is delivering an education to students in countries where access to public education is limited or nonexistent.

These low fee private schools are about making a private profit at the expense of poor families and poor economies

While such schools might be low fee, they constitute a high percentage of the disposable income of poor families, often resulting in gender discrimination where boys’ education is given priority over girls’ education in the same family. Moreover, low-fee private schools that will generate profit is economically dependent upon the employment of un- and under-qualified and very lowly paid, non-union organised teachers often using scripted pedagogies. These schools have few physical resources (e.g. computers, science labs, sporting facilities), large class sizes and there is little evidence to support the effectiveness of low-fee private schools.

This business strategy is based on the growth ‘markets’ that exist in countries of the developing world. Pearson says there is a ‘unique opportunity to capitalize on the emerging middle class’of almost 3 billion people who now earn enough money to invest in education to either improve their own or their children’s lives.

The Pearson plan undermines the development of quality public school systems

The outcome of this investment by Pearson challenges the aspiration that a free, high-quality public education for all is central to democracy and a socially just society. Through PALF, Pearson is working to replace or negate the responsibilities of governments to develop a public education system that affords the right of every child to access a free education. Many of these countries do not have strong legislature around for-profit schooling and even welcome the ‘solution’ that low-fee private school chains offer. Thus, Pearson has a new market to flourish in.

As I see it educators need to call out the significance of Pearson’s actions. The social, political and economic fallout for the countries where low-fee private schooling is growing are inevitable and may well have global consequences.

 

Anna-Hogan4Anna Hogan is a lecturer in the School of Human Movement and Nutrition Sciences at the University of Queensland. Anna has been researching the role of global edu-business on education policy and practice. She is currently working on projects that investigate the privatisation of Australian public schooling, the effects of curriculum outsourcing on teachers’ work and the commercialisation of student health and wellbeing. Anna has recent publications in the Australian Educational Researcher, Journal of Education Policy and Critical Studies in Education.

NAPLAN and edu-business: the commercialisation of schooling in Australia

NAPLAN testing is orchestrating a high-stakes environment in Australian schools where schools, teachers, students and even parents feel the pressure to perform and do well. Edu-businesses are capitalising on this high-stakes environment for commercial advantage.

Schools and governments now purchase products and services that are explicitly tied to test development and preparation, data analysis and management, remedial services and online content. American academic Patricia Burch, claims that the test industry in the USA is worth $48 billion per year. While it is difficult at this stage to put a precise figure on Australia’s test industry, it is increasingly obvious that the NAPLAN market is rapidly growing.

The NAPLAN market

The NAPLAN market includes practice tests, student workbooks, online programs, tutoring, teacher professional development, data analysis services for schools and so on. For example, the Australian Council for Educational Research (ACER) offers a number of progressive achievement tests (PAT) to provide norm-referenced information to teachers about their students. Schools often purchase a PAT test in Mathematics or English at a cost of $7.50 per student, and subsequently utilises this data to identify their student’s strengths and weakness in preparation for NAPLAN. Similarly, there are online resources like ‘StudyLadder’ or ‘Excel Test Zone’ that offer sample style NAPLAN questions to help students prepare for the test. There are also companies that target the insecurities of parents. Services such as ‘NAPLAN tutor’ offer a membership for $79 that will allow parents to access a range of NAPLAN tutorials. Private tutors also offer NAPLAN specific services.

Some edu-businesses now offer professional development and data analysis services to schools and teachers. For example, ‘Mighty Minds’, ‘Seven Steps’ and ‘Count on Numeracy’ all offer NAPLAN specific workshops. Seven Steps displays the following testimonial on its website: ‘Two of our teachers attended your seven steps seminar last year. They used the program in the Grade 3 cohort. Our NAPLAN results in those two grades were outstanding’. Similarly, Mind Matters suggests that its NAPLAN workshop will ‘focus on revising fundamental skills that are essential for students’ school careers and will prepare them for the NAPLAN test’. This type of marketing capitalises on the anxieties of schools and teachers.

Pearsonisation of NAPLAN

Pearson was among the edu-businesses that were contracted by the States and Territories in their delivery of NAPLAN. In 2012 every State contracted the printing and distribution of the NAPLAN tests to Pearson, with the exception of Queensland who contracted Fuji Xerox for this process. The actual testing of students occurs in schools under the direction of school staff and the subsequent marking of the test is a process overseen by most of the relevant educational authorities in the States and Territories. However, in New South Wales, Victoria and the Australian Capital Territory, this process was also contracted to Pearson, and it became responsible for recruiting, training and paying NAPLAN test markers. For example, this contract is worth $41.6 million in NSW. This presents Pearson as a central agent in the NAPLAN policy network, and moreover, suggests it has significant contractual obligations with Commonwealth, State and Territory governments.

Other areas where edu-businesses is at work in Australia

Edu-businesses are at work elsewhere in Australia. They are also contracted by the Australian Curriculum, Assessment and Reporting Authority (ACARA) in the development of the test and the analysis and reporting of the results on My School. For example, in 2012, ACARA spent over $4 million contracting ACER, Pearson, Educational Measurement Solutions and Educational Assessment Australia for a range of services. Some of these services included item development ($2,075,717), trialling of the test items ($681,253), equating of the test items ($527,848) and analysis and reporting of the results ($610,247).

These increasing amounts of private business activity have caused concern amongst a number of social commentators who believe that education as a public activity, serving the public interest, should remain within the control of the public domain. Yet, the primary aim of involving edu-businesses seems to be to modernise the public sector and make it more effective. This, of course, is based on the assumption that market-oriented management will lead to greater cost efficiency and improved success for governments

Problems with the growing edu-business activity in Australia

NAPLAN clearly represents the emergence of new ‘business opportunities’ in Australian education policy. Edu-business, from multinational corporations like Pearson to smaller national providers such as ACER now contribute to education policy and practice in various ways. In this environment ‘contractualism’ or partnerships between the public and the private sector have become the new normal. ACARA argues edu-businesses are an important and necessary component of developing NAPLAN and similarly, schools and teachers embed products and services from the private sector across all aspects of teaching and learning, particularly in regards to NAPLAN preparation.

My concern is that edu-businesses are increasingly contributing to policy development and teaching and learning practices in ways that have displaced traditional expertise. For example, according to ACARA, NAPLAN is delivered by ‘experts’ across the field. It seems problematic that experts in this case are not teachers, curriculum developers or even university researchers. Instead, experts are constituted by their ability to offer ‘value-for-money’ on competitive tender applications.

Edu-businesses are now closely associated with the role of policymaking and the state. What groups are becoming excluded from, and included in, processes of public policy?

Another concern I have is that the products and services schools and teachers are engaging with in preparation for NAPLAN are often shaped by ‘generalists’ with little classroom experience or formal research background in education. Many of these products are underpinned by agendas of profit making, not evidence.

Similarly, there are potential conflict of interest issues in which edu-businesses like Pearson are contracted to develop aspects of NAPLAN, but also create revenue through marking the NAPLAN test and the selling of resources to improve student’s NAPLAN results.

What can we do?

Of course, some of the work the private sector does is legitimate and important to how we deliver public education effectively. However, if edu-businesses continue to proliferate like they have in recent years, education has the potential to be monopolised by for-profit agendas. We must move beyond the rhetoric of edu-businesses in their promises to transform education and offer solutions to our problems. Instead, we have a responsibility to engage with the private sector more critically and make sure we protect public education and our expertise as deliverers of it.

 

Anna-Hogan4Anna Hogan is a lecturer in the School of Human Movement and Nutrition Sciences at the University of Queensland. Anna has been researching the role of global edu-business on education policy and practice. She is currently working on projects that investigate the privatisation of Australian public schooling, the effects of curriculum outsourcing on teachers’ work and the commercialisation of student health and wellbeing. Anna has recent publications in the Australian Educational Researcher, Journal of Education Policy and Critical Studies in Education.