A Wish

1. A Wish Where the mind is without fear and the head is held high Where knowledge is free Where the world had not been broken up into fragments … ….… Into that heaven of freedom, my Father, let my country awake! We cannot reach that heaven of freedom without education for EVERYONE ….

2. Project Gurudakshina Education for all

3. The next few pages • State of education after 60 years of freedom • What are the obstacles to ideal education for all? • Project Gurudakshina – Offering a solution What is Gurudakshina ? Why Gurudakshina ? How will it work ? What are possible challenges ? • What next ?

4. Education after 60 Years of Independence … A crumbling and overcrowded system catering only to a select few, unable to provide high-quality education to the masses Government funded education Privatized education • Limited capacity • Poor infrastructure • Does not employ best minds • No accountability/meritocracy, politics, corruption • Severely constrained by rules • High fee -- caters only to few • Goal is not education and research. Does not employ best minds. Poor quality • Easy to circumvent regulations • Charitable ones constrained by regulations and resources How can we provide affordable high-quality education at primary, secondary and college levels to 1.1 billion?

5. What are the obstacles to ideal education for all? The 3As Affordability Availability Accountability How to ensure that education is affordable to all? Government has limited resources Private education beyond paying capacity of the most Few charitable organizations with limited resources How to ensure that – System is transparent and accountable Fee is related to quality of education provided High-quality institutions thrive and others don’t Education is relevant to needs of the society How to give quality education opportunities to people of all casts, religions, domiciles and Economic backgrounds? Needs massive capital investment in education Is there a paradigm that changes the face of education in India?

6. Enablement Gurukul Teachers and alumnus to eventually run the Gurukuls Responsibility Participation Only merit-based selection No fee to be charged Costs to be recovered through Gurudakshina Project Gurudakshina – A paradigm shift A national movement throughout the country for establishing Universities/schools (Gurukuls) on a massive scale that offer quality education to students free of charge and recover their costs through contributions made by the students once they start earning Freedom to establish schools/colleges Decide everything about their affairs Gurudakshina: A sound Economic model using ancient wisdom

7. Gurudakshina in the modern times is … A pledge (legal contract), made by the student to pay dues aftercompleting education (say 10 years), according to the abilities(say 10% of income) to the Gurukul that provided the education • Gurudakshina contract tradable in open market – Gurukuls, FIs, Mutual funds, banks encouraged to trade Addressing the 3As Affordability Availability Accountability Government resources freed for new institutions Charitable institutions can focus on expansion Private players can also provide free education • Gurudakshina equal to the quality of education • Quality institutions thrive • Gurukuls to anticipate needs 10 years in future Free of cost for student, no loan burden for parents Gurukuls don’t need money. Can sell Gurudakshina Self-sustainable without any external financial support How can it be implemented especially in the Indian context?

8. How will it work ? Establishment of Gurukuls Collection and distribution of Gurudakshina PAN allocated when students join a Gurukul TAX returns have a column “Gurudakshina” Degree used as a collateral Tax system for enforcement Transform existing Institutions Successful Government and private institutions transformed to Gurukuls No longer need financial support. Start earning income immediately by selling Gurudakshina contracts Make use of Information technology to link Income tax with national skills registry and Gurudakshina Electronic Gurudakshina ownership records. Automatic credit to the owner’s account Establish new Institutions NSDL for transparent distribution Free capital generated from transforming existing institutions used to establish new ones Private players make business case to start new Gurukuls Will different stakeholders be interested in establishing quality Gurukuls?

9. Why will people be interested? • Faculty – because they get good salaries, good research environment and are in control of education • Students – because they get free education • Government – because everyone can be educated • Entrepreneurs – because they will get good return for their investments in Gurukuls • Financial Institutions – because they can make money by – • Holding and trading Gurudakshina contracts • Providing equity/debt finance to Gurukuls Is it feasible in India where many people evade taxes?

10. Frequently asked … Questions Answers • What happens if despite all controls not everyone pays Gurudakshina? • What if the students leave India and go abroad? • Will there be an excessive focus on money in education? • Will Gurukul teach not-lucrative subjects such as arts, basic sciences, mathematics? • What will be the incentive for entrepreneurs if teachers/alumnus run the show? • Will Gurukuls teach women? • What happens if there is excessive “cherry picking”? • Will anyone teach students who are not talented? • Indian economy migrating from agriculture to services. Large tax paying middle class. Better enforcement using PAN. Even if 75% pay the system will be sustainable • They need to obtain Income tax clearance • In general, maybe. Perhaps not, if teachers and alumni are in control • Maybe not if owners seek profits. If teachers and alumni are in charge, they may support programs on arts/basic sciences • Need more thought. Perhaps a build-own-operate-transfer model is needed • Perhaps gender bias can be handled using regulation (non-discrimination) • Cherry picking will be good for higher education. Law to restrict it in schools • There will still be “fee charging” institutions What next?

11. We need your help …..– Provide feedback on the idea and help refine it–Lend some visionary eyes and ears HELP US TAKE THIS FORWARD India has the required infrastructure. Just needs support from the Government in the form of an act of parliament

12. Backup Slides

14. More about National Securities Depositary Limited (NSDL) • A professional semi-government body • Maintains the electronic database of ownership of stock scripts (DMAT) • Best service in the world (at par with NYSE/NASDAQ) • Transformed Indian capital markets in a very small time • Creating Tax Information Network (TIN) -- A repository of nationwide tax related information • Modernizing system for collection, processing, monitoring of direct taxes using IT and PAN database • Maintaining national skills registry – big IT companies require employees to have updated information in NSR • Gurudakshina contracts ownership, trade and its integration with TAX, ECS and NSR systems easy for NSDL – the infrastructure already exists • Can charge a small fee (percent) to meet its expenses • Can also provide electronic clearing system (ECS) • Gurudakshina credited transparently to bank account of the owner of contract