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GATS

GATS and higher education: the need for regulatory bodies

What is the impact of trade rules on education?

Authors: N.V. Varghese
Publisher: International Institute for Educational Planning, UNESCO, 2007

This paper analyses the implications of the General Agreement on Trade in Services (GATS) on education systems in developing countries such as Vietnam. It discusses mechanisms for regulating cross-border trade in higher education.

The document highlights the fact that education became a tradable commodity, amenable for trade negotiations under GATS. In many countries, the private sector has become a convenient means to attract foreign collaborators to promote cross border education and trade in education.

The author concludes that there are still many unresolved issues which require the careful attention of national authorities. These include:

  • from the equity point of view, it is important that at least a part of the subsidies continue
  • student support systems such as student loans need to be introduced as a step towards creating the conditions to expand cross-border education
  • it seems that the development of trade in education has an adverse effect on development assistance
  • a key concern for developing countries in relation to cross-border education is the brain drain
  • governments planning to enter into GATS need to reassure their citizens that a reliable regulatory framework to protect their national interests is in place.