CSNPEA Red SEPA Logo
Red Social para la Educación Pública en las Américas - 
Red-SEPA

Civil Society Network for Public Education in the Americas - CSNPEA

en español
The Effects of 15 Years of Neoliberal Policies on Public Education in the Americas

Carlos Mauricio López
Tegucigalpa, Honduras

The New Landscape and Context of Decentralized Development
According to a study carried out by Dr. Jose Antonio Morales Erlich, a Salvadoran politician, the world today is characterized by three main trends in development:

1.1 A marked tendency toward unipolar politics, represented by the United States and reinforced by the Cold War 

1.2 A tendency toward economic multipolarity in different parts of the world, promoting a rupture in national markets in order to give way to globalization of the economy

1.3 A generalized tendency toward “modernization” of the state characterised by a reduction in the size of the bureaucratic apparatus, “rationalization” of public resources and efficiency in the distribution of public services. A pivotal axis of modernization of the state is the decentralization of territorial political administration.

Let us take a closer look at some elements of these three trends. 
1.1 The Tendency Toward Unipolar Politics

Over the last few decades, the world has experienced very significant economic, social and political changes, the most important of which has been the consolidation of one single economic and political system, which is capitalism. These changes are reinforced by recent events in Eastern Europe, which have served to feed the idea that "In light of the total failure of socialism, capitalism has shown itself to be effective." As a political power whose military strength is without rival, the US has placed itself in a vulnerable economic and social situation. In this world-wide repositioning, it will have to defend foreign investment and foreign-made products in its attractive internal. market. That is why the US has had to force an alliance with Canada and Mexico in an attempt to form an economic bloc that permits it to compensate for the deficiencies of it obsolete and costly productive apparatus. Due to its great scientific and technical capacity, the US is now the only high level world atomic power, and because of its advantage in this area, it fills the key, dangerous role of "sheriff" of the universal metropolis.

1.2 Economic Multipolarity

With the implantation of the New World Order, the economy has undergone more changes in the last fifteen years than in the eighty years that preceded them. A new industrial/technological revolution is taking place which is manifest in the areas of informatics, robotics and bio-engineering. Globalization is characterized by profound technological changes which have implications at the infrastructure level for such factors as production, the circulation of goods and the political economy of states.
Today, this is referred to as "globalization of the economy", which in reality, means regionalization of the economy on a world scale. Within this emerging framework, national economic borders are being drastically reorganized, giving way to the formation of large regional economic blocs, which actually work against free trade, since they are actually protective and highly aggressive trade zones.

Latin America with Mexico and Chile at the Forefront
The concept of national economies has practically been supplanted by the concept of regional economies or "the world economy", which no longer produce in order to satisfy domestic needs but for export. To this end, we must transform ourselves into competitive, "total quality" economies.
The result of all this is that today we are living in a world that is increasingly economically integrated and which grows ever closer to realizing the notion of the "global village". But this integration is accompanied by a situation of economic and social inequality between North and South.
In other words, this process is leading to a reduction of economic activity in the underdeveloped world while, as we grow more superfluous, the distance between Us and Them increases. In order to really be considered international, this New Order should benefit the majority of the world's peoples. On the contrary, however, it is not even an "order" in terms of respect and imposition, but is more like a series of "orders" that are being emitted. It is interesting to note that, etymologically, the concept of "order" can be used to imply "peace" while "orders" are something that contain the seeds of war.

Neoliberalism: A Story of the End of the Century 
The 1990s witnessed the end of the Cold War and the dissolution of the socialist system. Agreements between blocs that were previously in conflict have produced changes in our world, many of which were unthinkable twenty years ago.
Certainly in a unipolar world, capitalism thinks it has won the fight and the concept of the paternalistic welfare state has disappeared. In our countries, this dream was held up as a necessity in order to offset "terrorist subversion", and as a means of keeping social conflict at bay. However, with the majority of social groups disbanded or immobilized,  pressure was no longer applied to keep it in place. In Latin America, the dominant groups perceived that it was necessary to dump the paternalistic state and supplant it with a state that would guarantee private investment and private profit. 
It is for this reason that neoliberalism (or "new" liberalism) has become an economic trend in our countries that has gained strength through the its association with the University of Chicago with its intellectuals and Latin American pupils, and which has received much support from the developed countries. For neoliberalism, the market exists in perfect equilibrium and is self-regulating. Private property is equally self-regulating, based on sales contracts. The state should modify itself, limiting its capabilities and functions and become apolitical, efficient and specialized.
The state should privatize and delink itself from its previous activities, handing them over to private enterprise. This new state should not disappear, but it should become the motor of macroeconomic policies and the infrastructure while guaranteeing investment and capital and some social programs. This last area should take the form of ensuring that the workforce that industry needs will have adequate education, training and technical preparation. 
The neoliberals claim that the crisis in education is the product of the welfare state and those that support it: the unions, teachers' organizations and social organizations that defend the right of all to quality public education. Neoliberals also claim that teachers don't work very hard, that they don't keep their knowledge and methodology up-to-date and that they waste a lot of time on holidays and strikes.

The Social Impact of Economic Adjustment Policies

Economic adjustment policies have had an effect that is perceived by the powerful sectors as dangerous but necessary: They have increased the number of poor people who are unable to resolve their basic subsistence needs. For this reason, the Latin American governments have started up social compensation programs in order to try to try to prevent a social explosion among the destitute population. Many of these programs are financed by the World Bank, the International Monetary Fund (IMF) or regional banks like the Inter-American Development Bank (IDB). Most of them are aid programs that cover basic necessities, such as building schools, contracting non-professional people for pre-school programs, highway repairs, street cleaning, stipends for students, etc.

Neoliberalism vs. the People

As a social process, education is directly affected, but the evolution of this educational component is still taking place slowly. Many different efforts are being made in the search to "modernize" and "adapt" education to the new times. These adaptations are being produced within the framework of heavy economic adjustment programs which have a negative effect on the majority of the population through decentralization, modernization, municipalization, regionalization, deconcentration. Many different names are being used, but whatever label is applied, most of these so-called reforms are not responses to real diagnostic processes or serious proposals for education. They are, rather, responses to the effects of globalization programs. Within this framework, governments make commitments, apparently with good intentions, but without any real desire to fulfil them because they are very difficult to achieve.
In this sense, governments are in a double bind situation. On the one hand, they agree to education proposals that show a lot of vision. On the other, they have committed themselves to demanding programs of economic adjustment, modernization and globalization that make it impossible to really carry out the education programs.

Economic Adjustment Measures

In the framework of the neoliberal process that has been implemented for all of Latin America, economic adjustment measures have been being developed since the 1980s with the goal of improving the income of the states so that they will be able to fulfil commitments they have made to the international organizations. These measures seek to increase economic possibilities while making changes in the institutional and production structures which permit the following:

1. Greater diversification of the economy;
2. Greater economic efficiency in order to compete with other countries on the world market; 
3. Floating credit rates with the state no longer fixing the rate of interest;
4. The cost of labour should be lowered and the state should no longer set a minimum wage; 
5. Elimination of controls over the costs of goods and services, with the result that they become unattainable for the poor and working sectors of the population;
6. The state should not set the rate of exchange with the US dollar;
7. Trade liberalization (free trade);
8. Privatization of the banks;
9. Privatization of public services (water, electricity, telephone system, education, health care, highways, national parks, forests, etc.)
10. Privatization of state companies and of the interest earned on transnational capital.

Neoliberal Recipes for Education in America

When we begin to talk about education policies for the region, we should recognize that they are being proposed as a central point of the economic policies with the goal of maintaining a close relationship between education and the labour market (in reality, the problems of unemployment in the current context).
The policies being carried forward for Latin America by the IMF and the World Bank promote privatization of the state. The state is supposed to be subordinate to other interests and foster a free market. The education reforms the governments are promoting operate within this framework, and follow the orders of the international lending organizations.
The educational model for the region provides the same prescription for all countries: Hand over real control of the economy and the benefits derived from it to a small "financial" group. Within this same logic, the changes that are being proposed arise from the new plan for workers: "modernization", "efficiency", "total quality", "free market", and "deregulation". 
In this way, we are forming a new type of person in society. We are facing an enormous social change, in which the parameters outlined above will not only apply to workers, but to every individual that makes up a society. Even rules as to how we are to relate to each other will be imposed, and to lock the system in place, education must be adapted to new needs. The World Bank, the IDB and the IMF have all worked at identifying the different categories within the workforce that the market demands in the areas of production of goods and providers of services, and the "education supply" is being designed with this in mind. No longer is education to be designed under the principal of developing human capacities to a maximum, but rather with the idea of limiting human capacity to the "possibilities" of the market. In other words, the education and preparation of people and citizens will be subjected to the rules of the market which are imposed for the purpose of exploitation.
At the end of the 1970s, concerned by the enormous growth in the public systems (including education) that required them to continually ask for bigger budgets without being able to guarantee that they were economically viable, the international lending organizations began to study "education in developing countries" in order to recommend educational reforms for them to adopt that would be in keeping with a new plan.
In this context, the education system was seen as the ideal environment for forming the type of workforce that would be needed. Education should lead to an increase productivity with the introduction of cutting edge technology, which would go hand-in-hand with the reorganization of work. Increasing productivity does not mean increasing workers' wages. Today, it means increasing exploitation, since wages have not gone up, but have, in fact, decreased considerably. Today the picture is the same for all the countries of the region: unemployment, an increase in informal labour and the informal market, closure of "non-competitive" companies with capital being transferred to the financial sector, often resulting in this capital ending up in the hands of large national or international companies.
The concept of education has changed considerably. No longer is education seen as a right of citizens. Today, it is an investment. And, like any investment that does not turn a profit, it does not deserve further investment. Education needs to adapt to the market and yield interest in economic terms. The areas of education that the market demands should be developed. Education should be looked on as a business that must demonstrate its efficiency, effectiveness, profit-making ability and quality.
As part of this objective, a set of measures have been proposed by the World Bank for the countries of the region that have the effect of increasingly decentralizing the education system, putting it in the hands of communities, municipalities or private companies. A clear example of this is the fact that nearly 80 percent of technical training in Chile is now in the hands of private companies, while in Brazil part of the technical formation of teachers is carried out by SENAI, SENAC or SENAR. If the education systems are to be compatible within the region, there should be general, basic compulsory education for at least ten years. In this way, the concepts will be nearly unified and "universal".
Decentralization of the system is the first step toward privatization, and to dismantle it means nationalizing the service, all of which makes no sense for the market, which is supposed to be "rationalized" (although it does make sense socially). 
Within this logic, the school would be viewed as a company or business that provides education. Professional training for teachers would mean forming a new elite that would then instruct future teachers, who would graduate with lower qualifications. Costs would then be lowered for the system: there would be fewer years of preparation for teachers with fewer courses offered, resulting in less-well-prepared teachers.
The neoliberal agenda is a perverse one. It takes the contractions and deficiencies of the system and changes and redirects them for it own purposes. Its attractive discourse is often the result of taking our own ideas--often our own words--and using them to communicate its own coded message. It also frequently makes reference to situations that we ourselves have denounced. 
There is an education system identical to that being used in some other countries, which is being tested for the possibility of implanting it in others. Today, the Chilean educational model has shown that it has been unable to lower the number of students who fail to be promoted. Nor has the education reform in that country reached the neediest children. On the contrary, cases of non-school attendance have increased.
It would be good if the governments of the region could explain how they intend to balance economic plans that continue to generate growing rates of unemployment with a public school system that is supposed to favour social mobility.  How do they intend to carry out plans for competition and efficiency when public education in many countries of America is still designed to protect the poorest people and foster solidarity...?
The neoliberal model has a vision of the region in which each individual will maintain and produce for him/herself. It seeks to increase the already-existing gap between the poor countries and the First World, between those who have nothing and those who own our peoples, between the "haves" and the great mass of "surplus" humanity, along with those who have ceased to be surplus by ceasing to exist. In the time it takes to read this paper, 300 of the world's children under five years of age will have died of hunger.

We should begin with the fact that, in America, education has three levels of development, which correspond to the US and Canada, Latin America and Cuba.

a) The US and Canada: Many students in these countries have access to a broad, good-quality education in both the arts and sciences. The majority of youth finish high school and in Canada, the majority go on to some form of higher education. But within this abundance, there are many inequalities. In both countries, neoliberal policies have given rise to a growing inequality of income, to the extent that 20 percent of children now live in poverty.

In the United States, far more money is invested per capita in the children of the middle and upper classes than in those of the working class or the ethnic minorities that live in the inner cities. One analyst has described this situation as one of "savage inequality" within an opulent society.
Education in Canada also has it inequalities, although they are not as acute as in the US. Indigenous children face many more barriers to education than other children. Globalization, neoliberal policies and free trade agreements such as NAFTA have brought budget cuts to public programs, including education, and have encouraged privatization.
Despite the fact that Canada and the US have achieved more economic progress than the other countries of the American continent, growing sectors of the population have remained behind and marginalized, while those that direct the economy have increased their incomes.

b) Latin America: With the exception of Cuba, education in Latin America is truly backward, with profound inequalities among social classes, and between the urban and rural populations, and between mestizos [the mixed-race majority. Trans.] and the national minorities. 
 

In Cuba, on the other hand, education is a universal right and is part of an overall project of society. In the English-speaking islands of the Caribbean, most countries have developed school systems based on the British public education model. Although these countries have succeeded in reaching high academic levels and a high rate of school enrolment, in recent years they have experienced economic adjustments similar to those taking place in the Latin American countries over the last two decades. These countries are also experiencing the problem of an increase in children and youth leaving school before completion.
With the exception of Cuba, the Latin American educational systems have not developed the along the lines of what was hoped for the modern public school. With profound social inequalities and with an anti-democratic and elitist style of education, they have, however, deepened the application of neoliberal policies.

As with all social areas, education is subordinate to the neoliberal measures, which are aimed at bringing about the following objectives:

1. Privatization of public education, placing it in the hands of the popular sectors, the community, non-governmental organizations, private enterprise or multisectoral organizations, which will replace state responsibility in this area.

2. It has been suggested that the need to improve the efficiency, the quality, the effectiveness and the productivity of educational systems is taking place in a general way, rather than with an eye to democratizing the systems. This is contrary to the way public education was visualized during the Nineteenth Century by such leaders as Bolivar in South America and Francisco Morazán in Central America.

3. Flexibilization of education, changing the system and the professional profile of teachers, reforms to the curriculum ways that eliminate the humanist aspects and substitute a purely technical approach. People should be prepared to follow orders without questioning them.

4. It has been proposed that internal competition be introduced and that a system be developed that is based on individual strength and that these should become mechanisms for guaranteeing the services offered among both students and teachers.

5. Mechanisms for control and quality evaluation of education services are to be established.

6. Schools should express and be subjected to the needs imposed by the national and international labour market.

7. Private contribution to education should be promoted.

8. Teachers' contracts and salaries should be flexible, but social systems of evaluation should be developed.

9. Education costs should be decreased through the establishment of measures that optimize resource use in order to increase efficiency in the education system.

10. The number of students per classroom should be increased, in order to increase teachers' productivity and lower the cost of paying new teachers.

11. Contracting non-professional people to carry out work that was previously only done by qualified teachers.

12. Moving toward educational models that rely on the purchase and use of imported technology.

part 2
AltaVista Translations
IDEA Women
in Education
Public  Education Hemispheric Education TriNatonal Coalition Globalization Urgent Actions Links Contact Us
IDEA Mujeres en la Educación Educación Pública Educación Hemisférica Coalición Tri-nacional Globalización Acciones Urgentes Enlaces  Comunicarse con Nosotros 
updated  January 3 2000
actualizado Enero el 3 de 2000