The current socioeconomic challenges faced by many state governments and indeed the national government require approaches that are pragmatic and solutions outside of the box. Involvement of private entities is very crucial at the moment if the states will truly transform and reposition for greater heights. Government has to address its recurrent expenditure, figure out ways to reduce its infrastructural deficit and ultimately focus on creating enabling environment through investor friendly policies.
It is in the light of the above that I cast my support for the government of Oyo State in its recent quest to privatize some of its public schools to improve quality of education and reduce cost of ownership in a public-private initiative.
Labour groups who most times resist changes in the face of reality of course met this with fierce resistance, although government should have properly engaged the union in the process. But that being said, a pragmatic approach as put forward by the government should be supported if there is going to be any meaningful change in public service.
The intent of social welfare programme such as free education, free health etc. is to alleviate the suffering of the poorest in the society. Mostly the working class rather than the poorest class that is being targeted has enjoyed the benefits. The unintended consequence is the erosion of inducement to raise productivity by the working class and the continued impoverishment of the masses.
With the proposed privatization by government of Oyo state targeting schools closer to urban areas and city centers, improvement can be expected in the quality of education in the state. It would afford these schools the opportunity to compete with their private counterparts. It will also reduce the recurrent expenditure of the state thereby freeing up resources for other productive use.
Government however should institute a robust scholarship board that can augment the school fees of students who meet the “Means Test” condition. The amount budgeted for this program would be dependent on government revenue.
Government should also moderate the employer-employee relationship of the privatized schools.
This approach should also be extended to the operations and management of State Hospitals. Medical Doctors Association should be carried along in its implementation and should also be given the opportunity to run it profitably where possible. Government in its part should focus on establishing a statewide insurance scheme that every citizen can benefit from.
I believe with good initiative and proper engagement, many states can emerge from their current predicament.