Economic Rationalism in Schools in Australia

Economic Rationalism

1. Introduction

“Economic rationalism is the belief that market forces will generally produce better outcomes, or more efficient allocation of resources than government intervention” (Barcan, 1994. p.13).

Economic rationalism is concerned with promoting cost saving, and avoiding any unnecessary waste or extravagance. The importance of getting rid of any unrequired staff or equipment to promote efficiency is an important objective. In regards to education, economic rationalism is about decentralization to schools, universities and other vocational colleges. It is seen in terms of economic policy, managerial efficiency and importantly the privatisation of public amenities and services (Marginson, 1997).

The current policy of economic rationalism in education is subject to extreme controversy and debate in regard to its place in our society. Economic rationalism has been applied to education under the claim that schools will become more efficient and profitable.

This essay will look closely into and examine some of the main ideas of economic rationalism and its affect on education in Australia. It will explore some claimed beliefs and will show that its objectives are not always in the best interests of our students, teachers, university lecturers and community as a whole.

2. Educational reform after the recession in 1985

2.1 Reasons for reform

There was a period of reform in government schools during the period of 1987-1994 due to a number of key factors.

One was the growing concern over the standard of education in our state schools. During the early nineteen eighties there were concerns about the style and quality of education that was being offered in state schools. Due to bad publicity from the media parents were concerned about what was and what was not being taught to their children. There were especially some grave concerns about the literacy and numeracy standards of those that were entering the workforce. The commonwealth government introduced reforms to our schools, universities and vocational colleges.

Another factor that led to reform was the crisis of our welfare state. In the mid nineteen eighties there was an economic recession in Australia and the government was not able to continue to contribute the huge amounts of money into education as it had previously done. Overseas borrowing in the 1980’s had led to the demise of generous grants of pecuniary aid and social philanthropy to the welfare state (Barcan, 1994). Key priorities were now seen as the reorganisation of materials and resources to promote efficiency in schools. Education had become economic policy rather than social policy.