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9 - Economic government in education

Published online by Cambridge University Press:  05 June 2012

Simon Marginson
Affiliation:
Monash University, Victoria
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Summary

‘At first glance, it might seem that where a State provides more staff per unit of service, there is a prima facie case for saying that this reflects a policy decision to provide a higher quality service. On the other hand, it can be argued that a State that is providing the same service with fewer staff per unit of service is operating more efficiently. Drawing on public choice theory, we have started from the assumption that, unless there is evidence to the contrary, high staffing ratios do not provide a better quality service and are a reflection of other factors, such as vote “buying” of public sector unions and other similar pressure groups or attempts to minimise potential vote losses from similar groups by politicians.’

Institute of Public Affairs, ‘Efficiency of States' spending’, in Economic Planning Advisory Council (EPAC), in Background papers on the public sector, Background Paper Number 7, EPAC, Australian Government Publishing Service, Canberra, 1990, p. 2.

Prelude: Voices in the air (1987 and 1992)

In 1987 the Monash University Centre for Policy Studies published Spending and taxing, a market liberal blueprint for the reform of government, funded by the business-based National Priorities Project. Chapter 7, on education, was prepared by economist Ross Parish.

Parish stated that while spending on government education had risen, its standards and quality were declining and teachers were not accountable. For this reason many parents were transferring their children to the private schools. Smaller classes and student-teacher ratios suited teachers, but did not necessarily improve students' education.

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Educating Australia
Government, Economy and Citizen since 1960
, pp. 207 - 242
Publisher: Cambridge University Press
Print publication year: 1997

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