The impossibility of capitalist markets in higher education

Bibliographic Data

ID11488656
AuthorsSimon Marginson (0000-0002-6738-3128, The University of Melbourne, corresponding author)
Year2013
Volume28
Issue3
Pages353-370
Publication date2013-05-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueJournal of Education Policy (JOURNAL)
Journal identifiersISSN: 0268-0939 • E-ISSN: 1464-5106
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/02680939.2012.747109
OpenAlexW2115561386
LanguageEN
Citations received131
References cited36

For more than two decades, governments around the world, led by the English-speaking polities, have moved higher education systems closer to the forms of textbook economic markets. Reforms include corporatisation, competitive funding, student charges, output formats and performance reporting. But, no country has established a bona fide economic market in the first-degree education of domestic students. No research university is driven by shareholders, profit, market share, allocative efficiency or the commodity form. There is commercial tuition only in parts of vocational training and international education. While intensified competition, entrepreneurship and consumer talk are pervasive in higher education, capitalism is not very important. At the most, there are regulated quasi-markets, as in post-Browne UK. This differs from the experience of privatisation and commercialisation of transport, communications, broadcasting and health insurance in many nations. The article argues that bona fide market reform in higher education is constrained by intrinsic limits specific to the sector (public goods, status competition), and political factors associated with those limits. This suggests that market reform is utopian, and the abstract ideal is sustained for exogenous policy reasons (e.g. fiscal reduction, state control, ordering of contents). But, if capitalist markets are clearly unachievable, a more authentic modernisation agenda is needed

Allocative efficiency · Capitalism · Competition (biology · Corporate governance · Economics · Factor market · Market economy · Nonmarket forces · Political science · Politics · Shareholder · Higher Education Governance and Development · Higher Education Research Studies · Finance

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