George Caffentzis,
Edu-Factory
Debt has had a crushing impact on the lives of those who must take student loans to finance their university education in the US. For tuition fees that have been so notoriously high in private universities now are rising in public universities so quickly they are far out-pacing inflation. Student loan debt in the US has been much higher than in Europe (with the exception of Sweden), though recent developments there would indicate that this gap may soon no longer exist (Usher).
We should also take into account the fraudulent way in which the loans have been administered by the banks and the vindictiveness with which those who have been unable to pay back have been pursued by collection agents. The most frustrating aspect of student loan debt being the legally toothless position the debtor is in, because government policy has relentlessly vested all the bargaining power in the hands of the creditors.
But however agonizing the situation of the indebted, the debt is growing. As of September 2010 total student loan debt amounted to $850 billion, having just surpassed credit card debt by about $20 billion for the first time. And it is rising at a catastrophic rate, e.g., by 25% in 2009 to meet the rising cost of tuition and other college fees. Even the Great Recession has not put an end to this financial explosion. On the contrary, while credit card debt has leveled off, student borrowing has continued to grow to cover the rising costs of living as well as the tuition fees, especially by unemployed workers who are “going back to school” to get a “better,” or at least some, job in the future.
Logic, therefore, makes the remission and abolition of student loan debt a necessary demand for the university student movement, especially in an era when the need for “an educated work-force” has become an institutional axiom. However, student loan debt abolition (for instance) was not a focus or prominent issue in the student mobilization that peaked last spring, especially in California. This constitutes an impasse for the movement, since meeting after meeting it has become clear that refusing the blackmail of the debt and calling for abolition of tuition fees are pivotal to every form of struggle on our campuses. Students holding three jobs to repay (or avoid) loans or taking as many credits they can fit in their schedules to reduce the length and cost of schooling, can neither be active in campus protests against budget cuts and the commercialization of education nor can they engage in self-education and the creation of “knowledge commons.”
In this contribution to the Edu-factory network’s discussion of debt I think beyond this impasse, asking why an organized debt abolition movement does not exist in the US and what needs to be done to assist its formation.
A first consideration is that the very conditions that would call for mass student protest against indebtedness have so far contributed to preempt this possibility. Even before the time to pay back is upon them, the debt has profound disciplining effect on students, taylorizing their studies and undermining the sociality / and politicization that has traditionally been one of the main benefits of college life (Read).
An even more important consideration is the fact that student loans are constructed so that students do not pay them back while they are students. Student loans are time bombs, constructed to detonate when the debtor is away from the campus and the collectivity college provides is left behind. Once we recognize this we can also see that there is a hard-fought struggle around the student loan debt throughout the US, but (a) it operates in a non-communal, micro-social, serial way, mainly through default; (b) it is a struggle that involves subjects other than students, taking off precisely once students cease to be students, for only after they leave the campus do the debt collectors show up at their doorsteps. In other words, while the visible student movement has not so far made debt abolition its goal another movement with that goal has been growing to a large extent underground. One former student after another is rejecting loan payments through default, but they are not publicly announcing it. “For fiscal year 2008 the default rate increased to 7.2 percent, compared with 6.7 percent in 2007 and 5.2 percent in 2006” after a long period of decline from 1990, when it hit a peak of 22.4%, and 2003, when it hit a trough of 4.5%. (NB: These somewhat misleading statistics are calculated according to “cohort” years. For example, the 2007 cohort default rate is the proportion of federal loan borrowers who began loan repayments between October 2006 and September 2007, and who had defaulted on their loans by the end of September 2008. Therefore, they dramatically underestimate the true default rate) (Lederman).
As typical of “invisible” movements, statistics fail us in drawing its proportions. We have no estimate, for instance, of how many have been driven to suicide or how many have been forced to go into exile due to their student debts. Nor do we have a measure of the social impact of the growing de-legitimation of the student debt machine. We can only speculate about the consequences of disclosures concerning the collusion between the university administrations (especially in the case of “for profit” institutions) and the banks, now commonly acknowledged in the media as well as in congressional investigations. For sure, blogs and web-groups are forming to share experiences and voice anger about student loan companies like the biggest one, the Student Loan Marketing Association (nicknamed “Sallie Mae”). On Google alone, there are about 9,000 entries under the rubric “Sallie Mae Sucks,” and another 9,000 under “Fuck Sallie Mae.” Browsing through the chat rooms, with their harrowing stories of wrecked lives and mounting frustration against the operations of Sallie Mae, makes it clear that the potential for a debt abolition movement is high. So far, however, most attempts that have been made to give an organizational form to this anger have largely demanded the application of consumer protection norms to the management of the debt.
A well-known example is StudentLoanJustice.org (SLJ.org) that systematically compiles testimonials on the subject, organized state-by-state, revealing in graphic detail the dread, disgust, and humiliation indebtedness generates. These testimonies also reveal why, despite their anger and despair, debtors hesitate to join in an open debt abolition movement. As the founder of SLJ.org, Alan Michael Collinge, points out that there are many obstacles to such course of action:
Even now, the barriers to inciting meaningful political action at the grassroots level are daunting, For one thing, facing large –often insurmountable– student debt is a highly personal matter. Many debtors are too embarrassed or humiliated even to tell their immediate family members and close friends about their situation, let alone join in a grassroots effort challenging the injustice of student lending laws.” (Collinge: 93)
The Kantian imperative that debts ought to be repaid cost what may is also weighing on the minds of the debtors despite the fact that the conditions imposed by student loans companies are often fraudulent and generally unfair. As mentioned, many of the developing student debtor organizations refuse to speak of “abolition.” What fuels their indignation is the arbitrariness and arrogance of the creditors’ management of the debt, not the debt itself. As the “content author” of the SallieMaeBeef.com web-site writes:
Allow me to make one thing clear. This site is not for people who chose not to make their payments. Choosing not to pay a debt is one’s own fault. Sallie Mae, like many companies, makes mistakes. I don’t fault them for that. What matters is how they resolve the problems. They did a terrible job resolving the mistakes they made with my account, and I found out that I was far from being the only person suffering because of THEIR mistakes. I also found that they allegedly prey on borrowers, trapping people into paying 2 to 3 times (sometimes significantly more) what they borrowed. There is simply no excuse for it. (www.SallieMaeBeef.com).
The very choice of the term “Beef” in the title of the organization suggests a complaint or a private dispute, not a demand or a public arraignment. SLJ.org, one of the most publicized student loan protest organizations, also rejects both individual or collective refusals to pay– witness what its founder writes of one of SLJ.org’s members, Robert, whose $35,000 debt became $155,000 through the ploys of the financial company which held his debt : “like most SLJ.org members, Robert absolutely agrees that he should pay what he owes, but he simply cannot deal with a debt of this magnitude” (Collinge: 19).
In other words, prominent anti-student loan debtors organizations re-affirm the principle of the student debt. They believe that the safeguards and regulatory oversight that apply to other consumer loans –mortgages, auto loans, and credit card charges–should be applied to student loans as well, which presently is not the case because of the repeated governmental actions taken to block this option.
*In 1998 Congress made the student loan “the only type of loan in US history non-dischargeable in bankruptcy” (Collinge: 14). This means that presently even after filing for bankruptcy and been reduced to the status of a pauper, a debtor is still deemed responsible for payment on student loans, cost what it may, perhaps even facing a charge of fraud and imprisonment, if some politicians have their ways.
*In 1998 all statutes of limitations for the collection of student loan debt were eliminated.
*Since the beginning of the federal student loan program in 1965, the freedom to change lenders in order to find better terms for a loan has been denied.
Once the commodity approach to education is accepted, the political strategy adopted becomes predictable. According to Collinge, “it is imperative that standard consumer protections be returned to student loans” (Collinge: 20). This means, for a start, that student loans should be made dischargeable in bankruptcy, should have a statute of limitations apply to them, and it should be possible to refinance them with other lenders. These are the demands put forward by SLJ.org since its formation in 2005, supported in varying degrees by a number of liberal politicians like Hillary Clinton, Ted Kennedy, Dick Durbin, and Congressmen George Miller and Danny Davis (see the Acknowledgements section of (Collinge: 151)).
Over the last five years this “consumer protections” strategy has produced significant legislative results addressing some of the grievances listed above. These include the passage of three major acts: The College Cost Reduction Act of 2007 (that halves the interest rate on federally subsidized loans and cuts lender subsidies and collection fees slightly), The Student Loan Sunshine Act of 2007 (that requires university officials to fully disclose any special arrangements between them and lending companies), and in 2010 the Student Aid and Fiscal Responsibility Act (SAFRA) (described below). For all these cautious legislative efforts however, SLJ.org and similar organizations have not achieved any of their major objectives. If we add the return to power, as Speaker of the House, of John Boehner, “by far the largest recipient of campaign contributions from student loan interests” (like Sallie Mae) and their most aggressive watchdog, we can conclude that the “consumer protection” approach to student debt has reached its limit. Indeed, when Boehner speaks of repealing the Health Care Bill (whose complete name is the “Health and Education Reconciliation Act”), he certainly alludes also to the education rider hidden in it, as much as to the parts of the bill dealing with health care.
What then are the prospects for the struggle against student loan indebtedness?
Clearly a premise for the rise of an openly organized student loan debt abolition movement is that the organized campus student movement and the student loan debtor movement off the campuses meet. Indeed, they need each other and will be in crisis as long as they remain separated. On the one side, the student movement activists cannot call for the liberation of education without confronting the debt peonage waiting for them and their fellows, and on the other, the student loan debtors movement must go beyond the limits of its stalemated “consumer protections” approach. The sense that a limit has been reached in this regard is indicated by the enormous interest generated in early 2009 by Robert Applebaum’s Keynesian proposal, “Cancel Student Loan Debt to Stimulate the Economy,” where he called for the government to forgive government student loans and pay back to banks and finance companies the outstanding private student loans (Applebaum).
The combination of an underground struggle involving millions of loan defaulters, intensified by mass unemployment and cuts in social spending, and the exodus of thousands of debtors fleeing the debt collectors hounding them, just as the campuses are becoming again places of mass, open agitation, has set the stage for a student loan debt abolition movement that Edu-factory network, for one, has been calling for.
It is the possibility of this encounter, I believe, that prompted Congress to pass SAFRA that was signed into law by President Obama on March 30, 2010. George Miller, the archetypal East San Francisco Bay liberal, surely had a sense of the political winds that were blowing when he introduced the bill into Congress in July 2009, just as the occupations at the UCAL campuses of Santa Cruz and Berkeley were being planned and a 32% tuition fee increase was being discussed by UCAL’s trustees. But he was certainly looking as well at the rates of defaulting loans and what they expressed in political terms, for I could not otherwise understand why its buffering attempt would take the form of a student loan debt reduction bill, when the student movement on the campuses was not openly calling for it.
SAFRA is full of diversionary and ameliorating moves in the struggle between debtors and creditors that attempt to cushion the impact of the Crisis on student debtors.
(i) it replaces the private institutions with the federal government as the creditor, by halting loan-guarantees to the banks –a major source of interest revenue for the latter at no risk to themselves. The billions of dollars that will be “saved” would be used to increase scholarships for low-income students (Pell grants);
(ii) it provides for a reduction of debt payments, from 15% to 10% of discretionary income;
(iii) it provides for more debtor-friendly “forgiveness” conditions (viz., the debt would be “forgiven” for those working in the “private” sector–if payments were made on time–in 20 years instead of the previous 25 years, and in 10 years for those in “public service,” including teaching and the military).
These more favorable conditions are meant to forestall an increase in default rates–for if the “crisis” continues and unemployment rates remain high, the student debt machine is bound to collapse and will force a “bail out” of student loan debtors similar to Applebaum’s “Cancel Student Loan Debt to Stimulate the Economy” proposal. They are also meant to prevent an escalation of student activism on the campuses and above all to keep the two movements divided. Whether SAFRA will succeed in doing this is not something we can foresee at this stage. We can, however, see some steps that appear necessary to build an abolition movement besides the obvious one of bringing both movements together in a national student loan abolition convention.
Building a student loan debt abolition movement also requires that we reframe the question of the debt itself. A first step must be a political house cleaning to dispel the smell of sanctity and rationality surrounding debt repayment regardless of the conditions in which it has been contracted and the ability of the debtor to do so. Most important, however, from the viewpoint of building a movement is to redefine student loans and debts as involving wage and work issues that go to the heart of the power relation between workers and capital. Student debt does not arise from the sphere of consumption (it is not like a credit card loan or even a mortgage). To treat student loans as consumer loans (i.e., deferred payment in exchange for immediate consumption of a desired commodity) is to misrepresent their content, making invisible their class dimension and the potential allies in the struggle against them.
Student debt is a work issue in at least three ways:
- Schoolwork is work; it is the source of an enormous amount of new knowledge, wealth and social creativity presumably benefiting “society” but in reality providing a source of capital accumulation. Thus, paying for education is for students paying twice, with their work and with the money they provide.
- A certificate, diploma, or degree of some sort is now being posed as indispensable condition for obtaining employment. Thus the decision to take on a debt cannot be treated as an individual choice similar to the choosing to buy a particular brand of soap. Paying for one’s education then is a toll imposed on workers in exchange for the possibility, not even the certainty, of employment. In this sense, it is a collective wage-cut.
- Student debt is a work-discipline issue because it represents a way of mortgaging many workers’ future, deciding which jobs and wages they will seek, and their ability to resist exploitation and/or to fight for better conditions (Williams).
The overarching goal of capital with respect to student loan debt is to shift the costs of socially necessary education to the workers themselves at a time when a world market for cognitive labor-power is forming and a tremendous competition is already developing between workers. Employers’ refusal to massively invest in education in the US is not, in fact, a misreading of its class interests as theorists like Michael Hardt maintain (Hardt). It is the result of a clear-cut assessment of the new possibilities opened up by globalization, starting with the harvesting of educated brains as well as muscles from every part of the world. Capital’s strategic use of student loan debts to enforce a harsher work-discipline and force workers to take on more of the cost of their reproduction makes the struggle for debt abolition one that necessarily affects all workers. Accepting the student debt is accepting a class defeat, for it is certainly marks a major set back with respect to the 1970s when education was still largely financed by the state.
Certainly university teachers (like myself and many readers) and our unions and associations must take an active role in the abolition of student loan debt. For we are on the frontline, but in a compromised position, because we must “save the appearances” and pretend that for the university, cultural formation is of the essence, while we know that the student loan money is the source of much of the university’s budget and that the future debt peonage of many of our students “pays” our wages today (Federici). Just as, hopefully, most professors would object to be paid by a university whose revenue was the product of slave labor, so too must we object to having our students pay us at the cost of their post-graduation bondage.
Finally, debt in general is constructed to humiliate and isolate the debtor (Caffentzis). But demands for its abolition can be unifying, because it is everybody’s condition in the working class worldwide. Student loan debt, credit card debt, mortgage debt, medical debt: across the world, for decades now, every cut in people’s wages and entitlements has been made in the name of a “debt crisis” of one sort or another. Debt abolition, therefore, can be the ground of political re-composition among workers. If this is the path it takes with respect to student loan debt, the student movement in the US will experience a decisive turning point and opening out to many allies beyond the campus.
Bibliography
Applebaum, Robert (2009). Cancel Student Loan Debt to Stimulate the Economy. www.forgivestudentloandebt.com. Accessed December 10, 2010.
Caffentzis, George (2007). Workers Against Debt Slavery and Torture: An Ancient Tale with a Modern Moral. UE Newspaper (July).
Collinge, Alan Michael (2009). The Student Loan Scam: The Most Oppressive Debt in U.S. History–and How We Can Fight Back. Boston: Beacon Press.
Federici, Silvia (2010). Political Work with Women and as Women in the Present Conditions: Interview with Silvia Federici. Maya Gonzalez and Caitlin Manning. Reclamations. Issue 3 (December). http://www.reclamations.org. Accessed on Dec. 10, 2010
Hardt, Michael (2010). US education and the crisis. Liberation (Dec. 2).
Lederman, Doug (2009). Economy Sinks, Default Rates Rise. Inside Higher Education. September 15. http://www.insidehigheredu.com/news. Accessed December 10, 2010.
Read, Jason (2009). University Experience: Neoliberalism Against the Commons. In Towards a Global Autonomous University: Cognitive Labor, The Production of Knowledge, and Exodus from the Education Factory. Edited by the Edu-factory Collective. New York: Autonomedia.
Usher, A. (2005). Global Debt Patterns: An International Comparison of Student Loan Burdens and Repayment Conditions. Toronto, ON: Educational Policy Institute.
Williams, Jeffrey (2009). The Pedagogy of Debt. In Towards a Global Autonomous University: Cognitive Labor, The Production of Knowledge, and Exodus from the Education Factory. Edited by the Edu-factory Collective. New York: Autonomedia.

Neoliberalism, Education and the Politics of Capital: Searching Possibilities of Resistance
Ravi Kumar
That the instruments of imparting education extend beyond the classical notions of classroom learning is a fact few can disagree with today. It is, however, not enough to realise that the process of educating a human being transcends the limited universe of whatever form of formalised institution of teaching-learning transactions and is finally linked to the approach that one adopts to comprehend the processes of knowledge formation. This process of education is also closely linked to the desires of the dominant social structures to limit our view of the complex processes of knowledge creation. A limited and fragmented view of the world not only hides the systemic contradictions but also makes possible a process of regimentation. For instance, one can never fully appreciate the fact that the elite castes of India – not unlike the entrenched hegemonic class interests in any social order – need to segment the processes of education so that it in turn sustains the segmentation of the social order. Not unless one overcomes one’s ideological myopia to grasp the link between the processes of knowledge production in a society and its larger logic of production. It is this myopia that compels us to explain the teacher-taught relationship through the undemocratic metaphor of teacher as god. It is the intrinsic uncritical appeal of such a metaphor that leads us even today to claim that the teacher reveals the path to the kingdom of god. And it is this belief in the existence of a particular kind of system that celebrates the existence of gods – which bases itself on uncriticality and opposition to dissent, and concomitant subordination to spiritual and/or temporal authorities – that is responsible for our failure to understand how, for example, the Dronacharya-Eklavya relationship, by virtue of it being embedded in class-caste relations, is an expression of the segmentation of society along class lines through segmentation of education. And this holds true as much for ancient India, as for us in our times, wherein a vision of understanding educational processes as going beyond classroom and institutionalised structures is seldom encouraged. Even if it is done the connections between the mode of production and educational systems is rarely explored.
This further results in the absence of an analysis that would try to understand the impact of neoliberalism on education and its implications for the working class. Even the most progressive voices/analyses of the so-called education sector (such divisions are in themselves yet another attempt to fragment the world view) fail to overcome these limitations. The problem areas that, as a consequence, emerge with regard to understanding the processes of education and knowledge creation are the following:
1. There is a tendency towards generating a dehistoricised understanding, i.e., denying conjuncturality of different stages of development of capital and the nature of educational discourse and conditions on the ground.
2. There exists a disjunction in the understanding of education and the comprehension of social structures/ relations.
3. Education, therefore, is not seen as a battlefield where a part of the everyday class struggles is waged. As a result, it is discounted as a site of accentuating class struggle.
4. There is a serious absence of reflection on the issue by the Indian Left.
5. Because of the above-mentioned factors education becomes a classroom-based affair shorn of class politics and outside the ambit of labour-capital conflict.
6. Consequently, education acquires a kind of autonomy and an agency of its own and, therefore, none of the educational alternatives in India have managed to establish themselves as real working class counter-narratives to the capital-driven discourse and practice of education.
7. Due to these drawbacks the notion of empowerment, which cannot be seen as something outside the ambit of class struggle, within the educational field becomes problematic.
A comprehensive understanding of the developments taking place today with respect to education and knowledge-formation at large can emerge only if the above-mentioned factors are taken in to account. It is only then that one can understand how neoliberalism does not only affect the institutions, moulding them to its own end, but also radically alters the way even welfarist, social-democratic forces understand education. Such an approach that enables us to see education as a terrain of class struggle would, for instance, reveal rather clearly how and why capital must alter the classical idea of a classroom in its neoliberal epoch. This conjuncture necessitates not only the emergence of schools without teachers/instructors, but ‘places’ where teaching-learning happens online and even through mobile phones or satellite television. In other words, when the state offers alternatives such as online education; or when private enterprises tell us through their advertisements that it does not matter if you miss classes because there is a virtual classroom; or when Abhishek Bachchan graphically shows how classrooms can happen anywhere (which would even mean, at the cost of exaggerating it, that child labour can go hand in hand with education), what with lessons being imparted through mobile phones; or when the new symbol of humane, concerned and conscientious India – Aamir Khan – tells you that education is possible even through satellite channels there is an underlying commonality in their visions.
What they are telling us is that equality of access to education is possible even within neoliberal capitalism. They are suggesting that access need not always be seen in direct person-to-person or person-to-institution contact, and that it can be impersonalised. The sum and summary of what they are suggesting is this: why do we always need to locate the question of equality within a framework of class relations or consider the state as the provider of educational means and facilities. The point they are making is that profiteering or mindless urge to accumulate surpluses can go hand in hand with the principle of equality and justice. In a nutshell, it is a denial of conjuncturality of capital-labour contradiction with the issue of knowledge formation and dissemination. This denial appears, in not so stark and unabashed a manner, when the progressive voices and forces uncritically get nostalgic about reviving the lost world of welfarism. In other words, they, unknowingly or otherwise, adopt the approach of ensuring equality or justice outside the ambit of class struggle, and thus fail to envisage this absolutely desirable quest of theirs, which is doubtless urgent, in terms of problematising the intentionality of capital at different moments in its history.
Emergence of the Neoliberal Order
Finally, it has arrived and made itself the dominant paradigm of our everyday life. It is unabashedly shrewd, callous and calculating. It uses the instruments of consensus as well as coercion with utmost dexterity, becomes part of our individuality and has all possible designs at its disposal to alienate us from our collective working class consciousness in such a way that for sometime the battlefield can become quite hazy with the mirage that the system offers all kinds of possibilities to resolve our problems and all we need to do is work hard and give our lives to it. This is the age of neoliberalism that represents the tyranny of capital in the most organised and atrocious manner and India’s economic and political scenario for last one-and-a-half decades represent this tyranny. It is a stage or a moment in capital accumulation that leads to an unprecedented expansion of capital by bringing into the commodified zones even aspects which have been considered as non-commodified such as education and health during the pre-neoliberal phase of capitalism. Simultaneously it uses its aggression to push further its aim without any hitch.
This phase of capitalism is especially intractable for those committed to resisting the rule of capital. In fact, there has been a neoliberal consensus evolving across diverse political formations and amply clear in the situation post-2009 general elections (Kumar, 2010). The rhetoric of social justice, demands for equity built on the premise of identitarian politics as well as the hollowness of a market driven purportedly by justice and equity have been exposed. What, then, remains as the subject of concern for all of us is: (1) to comprehend the logic and strategy of capital in the current conjuncture; (2) inquire into the way this is manifest in the arena of education; and (3) evolve ways of resisting this onslaught of capital. Towards achieving these tasks this paper tries to understand the idea of neoliberalism and what does it do.
To say that there has been a marked decline in ‘social sector’ spending by the Indian state would be stating the obvious. It would, however, be erroneous to reiterate that decline without analysing it as a consequence of the persistent battle between capital and labour. The mutilations in the education system are no more than embodiments of this conflict in the arena of state, economy and polity. The state becomes an agent of capital assisting in its expansion and, whenever/wherever necessary, repression – physical as well as intellectual. In other words, apart from the mere physicality of the neoliberal impact there are very dangerous and more powerful mental and intellectual instruments working overtime to consolidate the already gained grounds for capital or creating possibilities for newer grounds to be captured. This character of the neoliberal phase of capital accumulation emerges out of the specific historical moment in which it was born. It was the crisis of accumulation in “embedded liberalism” that paved way for this new system to emerge after the option of deepening “state control and regulation of the economy through corporatist strategies” (Harvey, 2007, p.12) became problematic because the Left, which had forwarded this idea, “failed to go much beyond traditional social democratic and corporatist solutions and these had by the mid-1970s proven inconsistent with the requirements of capital accumulation” (Harvey, 2007, p.13). Obviously, the increasing influence of Left was also becoming problematic for the unhindered expansion of capital. The influence of Left unions and mobilisations were strengthening. One finds the vibrant movement of the Left flourishing during the era of welfare capitalism even in India. Trade unionism as well as other forms of resistance to the rule of capital did pose a substantial challenge to the politics of the ruling class. The resistance in these two different phases also becomes a matter of relative comparison as we are confronted with moments of declining resistance to the politics of capital in the neoliberal era. It was this imperative of curtailing the challenges to capital accumulation that compelled neoliberalism to become a political ideology as well.
Hence, we find neoliberalism giving “priority to capital as money rather than capital as production” and by doing so it allows “policies to be adopted which clear the decks, removing subsidies and protection, and freeing up capital from fixed positions” intensifying the pace of restructuring. “It allows capital to regain mobility, dissolving the spatial and institutional rigidities in which it had become encased” (Gamble, 2001, pp.131-32). State, which was welfarist, and had undertaken campaigns of nationalisation and promised to take care of the health and educational concerns of its people started saying that it was not possible for it to bear the burden of educating every child or taking care of the health needs of its citizens. Consequently, it comes up with analysis that would suit its market logic. For instance, it argues, in context of secondary schools, that “the doubling of the share of private unaided schools indicates that parents are willing to pay for education that is perceived to be of good quality” (GOI, 2008, p. 15). And the extension of this argument results in involving more and more private players in running the education system as a business. Consequently, the government plans to open model schools that “will be managed and run by involving corporates, philanthropic foundations, endowments, educational trusts, and reputed private providers” (GOI, 2008, p.17). This tendency to open up new avenues or withdraw from certain roles and responsibilities that till now were strictly considered the state’s domain has been intrinsic to the character of the neoliberal state. “The contribution of neoliberalism to the restructuring of capitalism was, therefore, to provide a means by which capital could begin to disengage from many of the positions and commitments which had been taken up during the Keynesian era.”(Gamble, 2001, p.132)
Even Neoliberalism talks of Dignity, Freedom, Autonomy and Well-Being – Where does the Problem lie
Neoliberalism functions on the premise that the “human well-being can best be advanced by liberating individual entrepreneurial freedoms and skills within an institutional framework characterized by strong private property rights, free markets, and free trade” (Harvey, 2007, p.2). It uses the principle of freedom andjustice but as concepts that apply to individuals treating them as autonomous beings outside the social relations within which they are embedded. Hence, neoliberalism looks at the role of the state as a body that creates and preserves institutional frameworks that ensure this project of capital. The state has to not only “guarantee, for example, the quality and integrity of money” but also set up structures of coercion “to secure private property rights and to guarantee, by force if need be, the proper functioning of markets” (Harvey, 2007, p. 02). State intervention in management and regulation of market becomes negligible. It only has to facilitate its functioning but not intervene in what it does or wants to do. The quintessential example of this is found in the two simultaneous developments in India: (1) the state expenditure on education has been on the decline and the share of private sector in it has been on the rise because capital thinks that the education ‘sector’ needs to be liberated from the clutches of statist structures and principles; and (2) over Rs 40,000 crore have been spent on organisation of a game show (Commonwealth Games) with which neither the Indians relate nor did they want it because for them priorities could well have been health and education. It is happening because the post-recession Indian industry needs as many shows as possible like this one. These two developments show how the state creates opportunities for market and for this it withdraws and creates space for private capital in certain areas whereas it subsidises the expansion of private capital at the cost of its masses. However, it chooses not to spend on education and health to make them accessible to everyone.
It has been argued that liberalism had made life suffocating for people. Mongardini cites Burdeau who argues that it ceased to be ‘the hope of a whole people’ and had rather become ‘the ideology of a class: the bourgeoisie’. The state under bourgeoisie had been transformed into ‘into a closed power’ (Burdeau quoted in Mongardini, 1980, p. 318). In other words, under liberalism, state, rather than resolving the tension between the individual and the state, had made latter “the natural enemy of liberty” (Mongardini, 1980, p. 318). Neoliberalism is seen as defending the social rights of individuals. It “seems to begin as a civil reaction against the invasion of politics and bureaucratic machinery, of little groups against large groups, the private against the public. It is, however, from another point of view also an attempt to reestablish at ground level that relationship of political representation which has been broken and to recreate consensus on a new ideological platform which restores certainty to individual and social action” (Mongardini, 1980, p. 321). Hence, what one finds is that the ideals of human dignity and individual freedom have become the driving ideology, as the slogan, of neoliberal thought and “in so doing they chose wisely, for these are indeed compelling and seductive ideals. These values, they held, were threatened not only by fascism, dictatorships, and communism, but by all forms of state intervention that substituted collective judgements for those of individuals free to choose” (Harvey, 2007, p.5). And obviously, the agency to ensure this freedom and dignity has always been the market for neoliberal ideologues and states.
The idea that neoliberalism is dedicated to ensuring the well-being of human beings, through ensuring equity and justice has been instilled into our common sense. It is done through a variety of ways:
(1) There are arguments and theories of development, which never look at the political-economic aspects of development and, therefore, create a well-thought-out disjunction between, for instance, market, state and development. They tell us how equity and justice are attainable even within neoliberalism without transforming fundamentally the social relations that give rise to these inequities. Herrera arguing against the development economists points out how the softer development economists get away as critics of the system, which, in fact, “is a serious misunderstanding, because neither of them recommends rebuilding the welfare state, modifying the ownership structure of capital in favor of the public sector, applying a policy of income redistribution, or promoting public services—much less arguing in favor of state-led planned development. In spite of a few nuances or subtleties, their arguments always imply that the state should fully submit to the dominant forces of global capital and help its capital accumulation” (Herrera, 2006). Citing the example of Stiglitz, Herrrera argues how during Stiglitz’s regime as the chief economist of the World Bank, the international financial institution published its report on “Knowledge for Development” in 1998-99, which talked about “cooperation” with the private sector “in the fields of information and telecommunications: privatization, dismantlement of public research (even the transformation of research institutes into joint stock companies), and marketization of education (even by helping the poor to pay for their studies)” (Herrera, 2006). Amartya Sen, on the other hand, locates, in an occulted manner, the social and political rights within the ambit of market. “Without a liberal-style market, Sen seems to say, none of the other freedoms can work.” (Harvey, 2007, p. 184)
(2) Competition has been made the guiding ethics of everyday life. This ethics is not only based on the farcical idea that everyone has the equal opportunity to participate and perform in the competition but it also generates a desire among individuals to be part of this system, which, apparently, demonstrates thepossibility of equal probability to achieve the goal. This sense of competition, which wrongly presumes equal access to required information and which ignores the differential material conditions that go into the formation of an individual or group, though being essentially misplaced, generates a sense of constant involvement within the system. This not only complicates, and therefore delays, the task of mobilisation along class lines but also gradually fosters a misplaced sense of fidelity towards the system. While the ethics of competition cultivates fantasies, aspirations and generates possibilities to achieve them, it also encourages individuation and, therefore, diminishes sense of solidarity. This ethics becomes a part of us through the pedagogical experiences of everyday life under the rule of capital.
(3) There is a vast network of ideological apparatuses, which are at work to legitimise the neoliberal system as well as to garner support for it. While a great deal has been written about how media becomes an effective instrument of propaganda there are misrepresented and fallacious analyses carried out by intellectuals in favour of the neoliberal order. One very obvious example is the work of James Tooley, who argues, following Oxfam Education Report, that “private schools are emerging for the poor in a range of developing countries” (Tooley, 2004, p.06). While he quite intentionally ignores the same Oxfam Report when it also says that “while private schools are filling part of the space left as a result of the collapse of State provision, their potential to facilitate more rapid progress towards universal basic education has been exaggerated. They are unable to address the underlying problems facing poor households, not least because their users must be able to pay, which the parents of most children who are out of school often cannot do” (Watkins, 2000, p.230). Not only this but the whole argument forwarded by likes of Tooley, based on ‘evidence’ from India and elsewhere that “there is considerable evidence available…that suggests that private education is more beneficial to the poor than the government alternative, and hence that parents are making rational decisions by sending their children to private schools” is misplaced and out of context. It not only refuses to analyse the basic and fundamental causation behind the flourishing of sub-standard (or otherwise) private schools across India but also forwards an argument to encourage privatisation of education when it says that “the making of profits is an important motivation for entrepreneurs to enter the education market, and hence it may have some desirable impact, leading to the provision of schools that poor parents prefer to the government alternative. Without the profit motive, this suggests that there would be fewer private schools available, hence the choices available to poor parents would be severely limited” (Tooley, 2004, p.16).
They take the notions of competition, performance and achievement as a priori categories and begin their studies from those already given premises (Tooley, 2004; Tooley and Dixon, 2005). In that sense, their whole argument and research is designed to serve the system that is furthering that particular kind of education system, which rejects critical insight as an essential constituent of educational process or which trains students to dream of alternatives. Apart from such intellectuals working overtime to generate sufficient grounds for private capital to expand, the state has also been quite ‘sensitive’ to the needs and demands of private capital. Knowledge Commission, a body of recognised intellectuals, for instance, very clearly points towards the need to recognise the role played by private educational institutions and suggests that “those providing quality education should be encouraged, especially when they cater to less privileged children”. It also suggests that the government bureaucracy should not harass them and “it is necessary to simplify the rules and reduce the multiplicity of clearances required for private schools….” (GOI, 2009, p.48). These are mechanisms to generate consensus among masses in favour of the restructuring of the economy. And these processes, as Harvey Notes, have occurred globally:
(4) Neoliberalism weaves a world of fantasy around each individual as well as collectivities of achievable possibilities, thereby confining their imaginations to function within the operational regime of capital. The delusional mind becomes unaware of the labour-capital dialectic. For it the possibility of becoming one day what some people around him/her are or owning what they own has a blinding effect. That individual herself is located within that labour-capital dialectic never appears so to her. Capitalism, in general, through breaching the possibilities of solidarity among the working class creates the expansion and sustenance of neoliberalism possible. What adds to this process is simultaneity of all of the above-mentioned socio-economic and political processes.
Education and the Politics of Capital -This is how Neoliberalism looks like
Neoliberalism, in general, is firmly entrenched today in India and with the tide of resistance getting lower at this moment its virulent form and tenor is visible in nearly every sector. The education sector is one of the ideal types, which demonstrates how the neoliberal assault works. The nature of changes, which have been brought about over the past few years and with particular vigour during the past one year have shown how neoliberal capital operates. The above-cited four factors that generate consensus and common sense about neoliberalism have been quite obviously active in the Indian context. A host of committees and commissions have been set up to establish how there cannot be any possible alternative to capitalism and, therefore, it is better to work within it. In terms of operationalisation, the state has been formulating policies that institutionalised discrimination – as different kinds of schools and colleges are established in accordance with the differential purchasing and socio-political power of the customers – that draws in more and more private funding in education sector and which denies equality of access to educational facilities of similar kind to everyone. The best example of such efforts to create a consensus in favour of neoliberalism can be found in the Yashpal Committee report, which has sanctioned everything that the neoliberal capital would like to put into place for its expansion. In other words, drastic changes in the form and content of the so-called education system are taking place due to the onset of the neoliberal stage. Hence, the developments inpolicy, content and form of education need to be seen in conjunction with the changing forms of capital accumulation. Following have been some of the manifestations of this development in the country.
1. Education is more than the formal institutional structures and classroom transactions. It is an arena that reflects the agenda and need of the dominant class interests in a society. Therefore, to understand whatever happens in education it is important to understand the class politics, or the labour-capital conflict, characterising a society. But due to this lack the character of the state is seldom questioned in the Indian education discourse. It, many a times, ends up being a nostalgic, illogical discourse that demands a neoliberal state to become welfarist. (Though I would admit that nostalgia has a potential, here, to generate a radical impulse as well.)
2. Capital in India never felt the need (during the past 60 years) to spread education (meaning democratise accessibility to education) because (a) the requirements of labour force were being met by an unequal system; (b) it was able to segment the educational levels of people in congruity with the segmented labour market thereby regulating the educational apparatus-labour market linkage as well.
3. Even today neoliberal capital cannot afford to democratise accessibility to education because it would amount to its decommodification.
4. Quite naturally, neoliberal capital destroys institutions that hamper its progress or appear not to make profits. It also curtails the pedagogic processes that potentially generate a critical perspective against the system – the decline of social sciences and fundamental researches in sciences is an example along with technicisation of science and popularisation of new ‘professional’ (skill-obsessed) courses in the social sciences.
5. In this scenario class manifests itself in following ways in education: (1) there is a particular kind of class formation that the education system foments; (2) the education system becomes an effective ideological state apparatus (ISA) evident in the way capital dominates over labour in their conflictual relationship even in the time of such a serious economic recession; and (3) the possibilities of transcending the capitalist mode of production through creating new imaginations of a world beyond capital becomes difficult and impossible thereby establishing the inevitability of capitalism.
6. Education, if located in the matrix of labour-capital conflict, unfolds as the battleground of competing classes. The constituents of this location – teachers or students remain workers whose realisation of their class position is delayed by the character/orientation of this location.
7. While education remains the most vital link for capitalism to sustain it also remains the location where the link can be broken because it is where the workers (when they realise that they are workers) are also in control of the kind of product that they produce to a great extent (though this freedom is diminishing and is differential across the uneven terrain of educational landscape).
When the Congress Party came to power along with a host of regional formations after General Elections in 2009, the Ministry of Human Resource Development made it amply clear that voices of dissent were not welcomed. Whether it has been the issue of passing Bills to further the expansion of capital or the issue of standardising the functioning of academic institutions such as universities for better control and better manipulation, all decisions are being taken unilaterally and without any attempt at consensus building. One example of how decisions to alter the syllabus or examination system, frame new service conditions for faculty members or completely transform the physical infrastructure have been taken in an undemocratic fashion can be seen in the University of Delhi where the faculty members as well as the students have been protesting for months. It has been happening in other universities as well but there is hardly any opposition. The tenor of the human resource development minister has been one of an outright corporate honcho. Irrespective of whether the Indian Institute of Technology faculty members were justified in demanding more salaries than faculty members of other institutions, the minister on hearing their demand remarked, “I am meeting some people from IITs and will ask them for a roadmap for the autonomy. If they tell us how much money from private investors they can get for the next five years, then we will give them more autonomy. They can take more projects and become private.” (Business Standard, 2009) What gets reflected in this statement is the way terminologies such as autonomy, freedom and choice are used. It is autonomy in sense of getting freed from barriers that would impede flow of capital. It is freedom from different kinds of restrictions, ranging from state policies to the ones posed by unionisation. “The neoliberal notion of academic freedom arises from viewing knowledge as a commodity…and education as a path to income generation that must be privatized and made profitable in order for it to be maximally effective.” (Caffentzis, 2005, p. 600) While the elementary education is in dire straits as the state fails to ensure that each child, irrespective of its class, caste or gender background, gets education of similar quality, higher education is moving towards becoming more and more inaccessible.
The neoliberal assault on education in India is different in terms of its trajectory compared to the West. In the UK or the US, for instance, thanks to concerted struggle by masses and also because of the needs of capital in those particular moments of history, laws and policies that made school education universally accessible to children were enacted. It was the phase of, what Harvey calls, “embedded liberalism” or what many others call Keynesianism. The crisis of the Keynesian model of accumulation was also reflected in the sphere of education when the governments of these nations began the process of withdrawal and started creating spaces for private capital within sectors where state control was entrenched. This pattern does not have much similarity with the Indian situation because the development of capitalism here has had a different trajectory. However, the welfare state that came into being, post Independence, did not create an education system on the lines of what Gandhi and others during our anti-colonial freedom struggle had conceived. It was a system designed to perpetuate class biases. The Indian state created distinction in terms of ‘elite’ institutions – the first IITs were born in early 1950s and the IIMs started in early 1960s – and the other institutions of higher education. Similarly, different types of schools were established by the Indian state for different sets of people. Even before these developments, the Indian Constitution could not include Right to Education as a Fundamental Right, which very well reflected the priorities of the state. Though included, more as a tokenism, in the Directive Principles of State Policy, expansion of education and ensuring equality of access were not the priorities for the welfare capitalism that was established under Jawaharlal Nehru. The needs of a skilled workforce were limited and the limited number of institutions was sufficiently meeting those needs. More than this nothing else was required. The intentions of equality and social justice were being defined in the limited sense of what could have served the needs of capital. It was a notion of equality and justice falling within the mandate provided by that particular stage of capitalism. Hence, it is not only fallacious to get nostalgic about the ‘great’ days of welfare state but it is also myopic in terms of analysis because it falls short of tracing the relationship of capital, in different forms and at different moments, with the education systems.
An extension of this fallacy is manifest in the way the arguments for a better educational system or efforts at establishing alternatives, which have emerged at different points of time, have always failed. There is an intrinsic relationship between the educational processes and the social processes of reproduction. The two cannot be separated. “Accordingly, a significant reshaping of education is inconceivable without a corresponding transformation of the social framework in which society’s educational practices must fulfill their vitally important and historically changing functions.” (Mészáros, 2009, p.216) In other words, it is important to locate oneself in terms of class position before formulating educational analyses or alternatives. One cannot formulate an alternative from the vantage point of capital and claim to fight alongside labour or claim to establish a socially and economically just education system. “The objective interests of the class had to prevail even when the subjectively well-meaning authors of those utopias and critical discourses sharply perceived and pilloried the inhuman manifestations of the dominant material interests.” (Mészáros, 2009, p.217) The reason behind the failure of efforts at changing the educational maladies and institute an alternative has been that they “reconciled with the standpoint of capital” (Mészáros, 2009, p.217).
Transforming the Education through Class Struggle – the only Alternative
In order to establish an alternative and build a movement towards it, it is important to recognise that this alternative could happen only outside capitalism. In this era of neoliberal capitalism, when the offensive of capital has pushed the resistance on the backfoot, a counter-narrative has to be rewritten. This counter-narrative has to be a comprehensive battle plan that would include educational transformation as well.
There are a lot of alternatives being put forth against the so-called neoliberal assault. The most radical of these alternatives find marketisation of education, increasing commodification, consumerism and subservience of education to corporate houses extremely problematic. The authors of these alternatives also lament the transformed culture of the new education system that is coming into existence. These concerns appear quite justified. However, the problem begins when (1) the analysis of the situation is undertaken – in terms why these tendencies emerge and not so much in terms of how they operate; (2) what can be the alternative; and (3) who will be the driving forces of transformation. There is a tendency to enumerate the symptoms without indicating or identifying the socio-economic processes that give rise to them. Hence, even if such critiques of neoliberalism argue for alternatives the thrust is on reinstating the welfare stage of capitalism. The location of the problem within labour-capital dialectic always remains absent. Welfare state and its institutions become the possible alternatives as if the idea of exploitation and inequality was absent in such a stage.
Such critiques are forced to remain silent witnesses at moments when the neoliberal state adopts a welfarist stance on some of the issues. This happens because there is a distinct failure to uncover how and why certain institutions or policies come into being at particular moments in history and how those moments have also not been exclusive of class antagonism. Therefore, scholars and activists alike begin imagining that a particular state institution within capitalism can have the potential of being revolutionary and anti-state (read anti-capitalist). Such an understanding destroys the possibility of systemic transformation without which an education system, which is liberating, is impossible to achieve. What can be more naïve than to think that capitalism would allow its education systems to produce critical, self-reflexive and radical beings who would question the basic premises of the system founded on the principles of private property, exploitation and mindless race for accumulating wealth. Unless scores are settled with this naiveté of the ‘radical-progressive’ agenda of back to welfarism, which discounts class struggle as the only possible alternative for transforming iniquitous education or health ‘sector’, the battle cannot become sharp enough to threaten capital and its neoliberal epoch.
References:
Business Standard (September 26, 2009), Kapil Sibal rules out salary hike for IIT faculty, available athttp://www.business-standard.com/india/news/kapil-sibal-rules-out-salary-hike-for-iit-faculty/371345/, downloaded on 12th January 2010
Caffentzis, George (Dec., 2005) Academic Freedom & the Crisis of Neoliberalism: Some Cautions, Review of African Political Economy, Vol. 32, No. 106, pp. 599-608
Gamble, Andrew (Autumn 2001) Neoliberalism, Capital and Class, No. 75, pp.127-134
Government of India (2008) Eleventh Five Year Plan (2007-2012), Volume II, Planning Commission, Oxford University Press: New Delhi
Government of India (March 2009) Knowledge Commission: Report to the Nation 2006-2009, Knowledge Commission: New Delhi
Harvey, David (2007) A Brief History of Neoliberalism, Oxford University Press: Oxford
Herrera, Rémy (May 2006) The Neoliberal ‘Rebirth’ of Development Economics, Monthly Review, Vo. 58, No.1, available at http://www.monthlyreview.org/0506herrera.htm, downloaded on 10th August 2010
Kumar, Ravi (Winter 2010) India: General Elections 2009 and the Neoliberal Consensus, New Politics, Vol. XII, No. 4, Whole Number 48 pp. 107-111
Mészáros, István (2009) The Challenge and Burden of Historical Time: Socialism in the Twenty-First Century, Aakar Books: Delhi
Mongardini, C. (1980) Ideological Change and Neoliberalism, International Political Science Review, Vol. 1, No. 3, pp. 309-322
Tooley, James (2004) Could the Globalisation of Education benefit the Poor?, Occasional Paper No.3, The Liberal Institute of the Frierdrich Nauman Foundation: Potsdam
Tooley, Jame and Dixon, Pauline (2005) Private Schools Serving the Poor, Working Paper: A Study from Delhi, India, available at http://www.ccs.in/ccsindia/pdf/Delhi-Report-Tooley-new.pdf, downloaded on 12th May 2010
Watkins, Kevin (2000) The Oxfam Education Report, Oxfam GB: Oxford