Is Education a Business Now? The History, the Evidence, and the Global Divide

Education has long been thought of as a public good: a way to build societies, lift people out of poverty, advance knowledge, and ensure freedom. But over the past few decades, especially in many wealthy countries and increasingly around the world, education has also become a business. Fees, branding, private institutions, student debt, ranking systems—all of these signal that education is being treated like a service or a product rather than a universal right.

At the same time, in many poorer countries, large portions of the population still cannot access basic schooling, or if they can, the quality is poor and the cost still prohibits advancement. These two trends—education as business in rich countries, and education as scarce and unequal in poor countries—are two sides of a global problem.

This blog traces how education shifted historically in the UK, USA, and Europe; examines how wealthier countries turned education into a business model; and contrasts this with the situation in poorer parts of the world, where huge gaps in access, quality and affordability remain. It will highlight key statistics showing inequality, cost, debt and exclusion, and argue that unless we rethink education as a right—not simply an industry—then many people and many nations will be left behind.

1. Early History: Education as Privilege, Not Right

Europe and the UK: From Church Schools to Public Systems

In medieval Europe, formal schooling was rare and reserved for the elite. Education was conducted largely by the Church or by apprenticeships. Wealth, birth and social status determined who could learn. Formal universities such as Oxford and Cambridge in England were founded in the 12th and 13th centuries, but admission was limited to those with means and connections.

In the UK, for centuries, elite grammar schools and private “public schools” (ironically meaning private in British usage) educated sons of the nobility and gentry. Middle class children sometimes had access to charity schools or local parish schools, but the poorest children often did not attend school at all.

It was only in the 19th century, under industrialisation and social pressures, that the UK government began to commit to broader schooling. The 1870 Education Act provided for elementary schooling for children aged 5–13 in England and Wales. But higher education remained largely elitist and expensive.

USA: From Land-Grant Colleges to Expansion

In the United States, a similar pattern emerged: early universities such as Harvard (1636) and Yale (1701) served privileged classes. When the Morrill Act of 1862 created land-grant colleges, public higher education expanded, but secondary and higher schooling still required payment and was less accessible.

After World War II, the GI Bill in the U.S. dramatically expanded access to college education for veterans, marking a turning point where higher education became more of a pathway to broad social mobility. But even then, cost and access remained unequal across race and class.

Developing Countries: Late Start and Colonial Legacy

In many parts of Africa, Asia and Latin America, formal education systems were introduced or expanded under colonial rule, but often with limited resources, limited access for locals, and designed primarily to serve colonial administrative and economic needs rather than local development. For example, much of sub-Saharan Africa still faces severe challenges in schooling access and quality as a result of this legacy.

According to UNESCO, around the world an estimated 258 million children, adolescents and youth were out of school — about 17 % of the global population in that age group. Our World in Data+3United Nations+3UNESCO+3

Thus, from the very beginning, education has been associated with privilege—and inequality.

2. The Shift: Education Becomes a Business in Wealthy Countries

United Kingdom: Rise of Tuition and Student Debt

In the UK, until late 20th century, many universities were state-funded and undergraduate tuition was either free or minimal for domestic students. But that began to change. In 1998 (England and Wales) tuition fees of £1,000 per year were introduced, rising in subsequent years. By recent years, many UK undergraduates graduate with significant debt. For example, as of 2024-25, students in England graduate with average debts of about £53,000 according to data released. The Guardian+1 The expansion of private providers and competition for international students has also turned universities into market actors, where branding, recruitment and fees matter greatly.

Moreover, “hidden debts” at UK universities (fees for accommodation, library fines, loans) add further burdens: around £500 million in hidden debts among 180,000 individuals averaging £2,650 each. The Guardian

These developments signal a shift: universities are costly, graduates are indebted, competition matters—education looks more like a business than a public service.

United States: The Big Business of Higher Education

In the U.S., the cost of college rose markedly in the last several decades. Student loan debt rose accordingly: as of 2025, U.S. student loan debt totaled approximately $1.814 trillion, with 42.5 million student borrowers. Education Data Initiative+1 Many students graduate with average federal loan debts of $39,075 or more. These loans behave like consumer debt; institutions market themselves heavily; higher education is often run like an industry.

Private universities charge high tuition, promote brand value, operate campuses like commercial enterprises. The U.S. model has become an export: many countries emulate high cost, high debt systems.

Western Europe: Rising Market Elements in a Traditional System

Many European countries historically offered free or low-cost higher education (e.g., Germany, Scandinavia). This allowed relatively broad access. But market pressures are increasingly present:

• Private universities and schools are growing.

• International students (who pay higher fees) are recruited.

• National universities compete in global rankings and adopt branding and marketing.

• Even when tuition remains low, additional fees, living costs, preparatory schooling and private tutoring increase the real cost.

So while Europe still protects more access than the U.S. or UK in many cases, the trend toward marketisation is visible.

Why This Business Model Emerged

Several factors drove education to become a business:

• Globalisation: Universities compete for international students (who often pay higher fees) and prestige.

• Reduced public funding: Governments often reduce direct spending and shift burden to students.

• Students as consumers: Students are viewed as clients purchasing credentials.

• Private providers and for-profit schools: Operation of private colleges, online education, test-prep industries.

• Debt financing: Student loans create large financial flows, connecting education to the financial sector.

Thus, many institutions, especially in wealthy countries, behave like businesses: they invest in branding, marketing, high-paid administrators, and expansion into new markets. Education as business is not solely a metaphor—it reflects a structural reality.

3. The Consequences in Wealthy Countries: Cost, Debt, Inequality

Student Debt & Cost Barriers

In the U.S., student loan debt is massive: $1.814 trillion outstanding. Education Data Initiative+1 In the UK, average graduate debt upon repayment liability is around £53,000, and hidden debts further burden students. House of Commons Library+1

High tuition, cost of living, and debt burdens make higher education riskier for low-income students. Some may avoid attending, or choose cheaper courses, or graduate with heavy debt and uncertain earnings.

Unequal Access

Even in wealthy countries, access and outcomes in education vary widely by family income, parental education, race and location. The rich can afford elite private schools, expensive universities and tutoring; the poor may rely on under-resourced public schools, which may deliver lower quality learning.

Inequality in educational attainment is captured by the Atkinson index: for example, in countries where this is measured, higher values indicate more unequal distribution of years of schooling. Our World in Data+1

Market Pressures and Quality Risks

When education becomes a business, risks include:

• Prioritising revenue over pedagogy (e.g., recruiting high-fee paying students, international students).

• Commercialisation of assessments and certifications.

• Growth of for-profit institutions with variable quality and high student dropout rates.

• Shift of public funds toward top universities, while weaker schools struggle.

Some commentators argue that the rising cost and debt burdens undermine the original promise of education as a path to social mobility.

4. Developing Countries: Where Education Remains Elusive

While in wealthy countries the concern is cost, debt and market-isation, in many developing countries the barriers are far more fundamental: lack of access, quality, infrastructure—and cost remains a significant barrier.

Access and Out-of-School Rates

Worldwide, there are large numbers of children out of school or not receiving adequate education. The UN notes that approximately 258 million children, adolescents and youth are out of school globally. United Nations The UNESCO 2020 Global Education Monitoring report showed that 40 % of countries did not fully support learners at risk during the pandemic, deepening inequalities. UNESCO

Quality and Learning Outcomes

Access alone is not enough—many children who attend school do not learn basic skills. The World Inequality Database on Education (WIDE) shows that factors such as wealth, location, gender, and ethnicity powerfully influence educational outcomes. education-inequalities.org+1 A World Bank report estimated that only half of primary school children and a little more than one quarter of secondary school children in low- and middle-income countries are learning basic skills. Wikipedia+1

Cost and Poverty Barriers

Even when schools exist, costs—uniforms, transportation, exams, materials—make schooling unaffordable for many families. Education sometimes becomes a business in its own right: private schools charge fees; tutoring is required; families borrow. The poorest countries often rely on international aid or loans to build schooling systems.

Gender and Geography

Gender disparities are strong. In sub-Saharan Africa, for example, more girls than boys are out of school at every level; the number of out-of-school girls is increasing due to population growth. UNICEF DATA In Niger, for example, literacy among girls over age 15 is 23 %, compared to 39 % for boys. Wikipedia

Rural vs urban divides are large. Children in remote areas often face long travel distances, fewer qualified teachers, and lower-quality infrastructure.

Impact of COVID-19

The pandemic worsened these problems. School closures affected over a billion students globally. A recent study reported a global average decline of 0.11 standard deviations in student achievement, with much worse impacts on low-income households. arXiv+1 This hit developing countries hardest, where remote learning and internet access may be absent. The Financial Times noted that post-pandemic the gap between rich and poor countries in education and health returned to levels seen in 2015. Financial Times

Thus, many children in poorer nations are not just lacking schooling—they are losing years of learning, which means worse jobs, lower income and perpetuation of poverty.

5. Why Education Is Turning Into a Business (Even in Poor Countries)

Private Schools & Fee Systems

In many developing countries, as state systems struggle to meet demand, private schools proliferate. These may charge fees, offering “better” teaching or English-medium instruction. Families see them as an investment in the child’s future—thus education becomes a commodity. But many poor families cannot afford fees, creating greater inequality.

International Education as Export

Richer countries recruit international students from developing countries—who pay high fees. This helps wealthy-country institutions treat students as customers, but causes “brain drain” from poorer countries: the brightest students leave and often do not return, meaning the poorer country’s human capital is depleted.

Test-prep, Tutoring and Credentialism

Even in poorer countries, the move toward credentials means families spend more on supplementary education: tutoring, exam workshops, private coaching. This is a business. Families who cannot pay are disadvantaged.

Online Platforms & Private Providers

Technology firms and private providers increasingly offer education services—online courses, remote tutoring, certification. In wealthy countries this is normal; in poorer countries this is growing but access is unequal because of internet and device costs. So the business model suits those who can pay and excludes those who cannot.

Debt and Borrowing

In some middle‐income countries, student loans are becoming more common, though often with weaker protections. As governments reduce subsidies, students may borrow or rely on private funding. This shifts risk onto individuals and makes education part of the financial sector.

6. The Global Cost of the Shift: Who Loses?

Loss of Social Mobility

When education requires payment or debt, children from poor families have less access. They cannot attend the “best” schools; they may drop out. This causes inter-generational inequality: the children of the poor remain poor.

Human Capital Under-utilised

If significant portions of children, especially in poorer countries, do not receive adequate education, then the country’s human capital is low. Studies show that each additional year of schooling raises individual earnings by about 10%. UN Today+1 So when people cannot access schooling, both they and their country lose.

Sanctions on Development

Poor countries with weak education systems struggle to develop industries, innovate, and compete globally. They often rely on resource extraction or low-skill services rather than high value industries. This locks them into low-growth traps.

Debt Risks for Students

In wealthier countries the debt burden is suddenly heavy. In poorer countries, if debt systems develop, effects may be even worse because students have fewer earning options.

Inequality Within & Between Countries

Educational inequality is rising both within countries and between countries. Within countries, children from wealthier families attend better schools and achieve higher results. Between countries, students in developed nations have far better access to schooling, better infrastructure, better technology, and higher quality teaching. The Atkinson index of inequality in education confirms higher values (more inequality) in many poorer countries. Our World in Data+1

7. Historical Evidence: Country-by-Country Snapshots

United Kingdom

• The 1870 Education Act marked the start of universal elementary education in England and Wales. Before that, schooling was uneven and often cost‐based.

• In recent years, average student student debt for a UK undergraduate cohort is about £53,000. House of Commons Library+2The Guardian+2

• The shift from state-funded to fee-based higher education marked a shift toward education as consumer service.

United States

• After WWII and the GI Bill, higher education expanded, but from the 1970s onward tuition rose steeply.

• Student loan debt in the U.S. now stands at approximately $1.814 trillion. Education Data Initiative

• Higher education institutions focus on branding, recruitment of paying students, online programs—many act like businesses.

Europe (Northern vs Southern)

• In countries like Finland, Norway and Sweden, education remains largely free, and the state funds inclusive access.

• In Southern and Eastern Europe, access is more unequal; private schools and private tutoring have grown.

• Across Europe, the business logic—competition, fees, marketing—is increasing.

Developing Countries (Global South)

• The World Inequality Database on Education shows massive inequalities across wealth, gender, and location in over 160 countries. education-inequalities.org

• According to the UNESCO Global Education Monitoring report, 40 % of countries did not support learners at risk during the pandemic, deepening inequalities. UNESCO

• In sub-Saharan Africa and other low income regions, the percentage of girls out of school remains high; the cost of schooling and poverty prevent many from enrolling. UNICEF DATA+1

COVID-19 as a Case Study

• The pandemic showed how unequal education systems are: many children in richer countries shifted to online classes; many in poor countries lost months of schooling or never returned. A study found a global average achievement decline of 0.11 standard deviations, but much worse for vulnerable groups. arXiv

• The gap between developed and developing countries in education and health widened quickly post-pandemic. Financial Times

8. Why the Poor Countries Are Left Behind: Structural Barriers

Funding Shortages

Poor countries simply lack the financial resources to build schools, hire qualified teachers, pay decent salaries, buy books and computers, and maintain infrastructure. Wealthy countries can spend thousands of dollars per student; poorer ones may spend only hundreds. That creates large quality gaps.

Market Logic Without Safety Nets

As the global model of education shifts toward business, poorer countries may adopt the model without having the necessary social safety nets. For example, private schools may fill gaps—but they charge fees, excluding the poorest. The cost focus can crowd out inclusive systems.

Brain Drain

When educated individuals from low and middle-income countries migrate to wealthier countries for work and better opportunities, the poorer countries lose skilled teachers, researchers and professionals. That further reduces capacity and quality.

Gender, Location and Family Background

Children from rural areas, girls, children from poor or marginalized families face multiple disadvantages. For example: in Niger only 17 % of girls complete secondary school; literacy rates for girls over 15 years are just 23 %. Wikipedia In households where parents are uneducated, children often attain fewer years of schooling. arXiv

Quality of Learning vs Mere Access

Even when children attend school, learning may be minimal. Many poor countries suffer from “learning poverty,” meaning children cannot read or do basic math by age 10. Building schools without quality teaching and materials is not enough. The Education Commission estimates only about half of primary and a little more than a quarter of secondary school children in low and middle-income countries learn basic skills. Wikipedia+1

External Shocks

Conflicts, climate disasters, pandemics disproportionately harm education systems in poorer countries. COVID-19 closed schools for far longer in low-income countries, and many children did not return. Axios

9. Is Education Still a Business Even in Poor Countries?

Yes—in some ways—but in a distorted form. Some signs:

• Private schools and fee-charging institutions expand because public systems cannot keep up.

• Families often pay high out-of-pocket costs (uniforms, transport, exam fees).

• International agencies push “private-public partnerships” and private provision, treating education partly as an investment.

• Tuition and fees at tertiary level rise for those who can pay; students borrow or access private financing if available.

• Some developing countries host “international branch campuses” or foreign-owned private higher education institutions, catering to those who can afford them.

Thus education becomes commodified: the ability to pay shapes access, quality, and outcome.

10. What Must Change: Rethinking Education as a Right, Not a Business

If we agree that education should be a fundamental human right rather than primarily a commodity, then several policy directions follow.

A. Increased Public Investment

Governments must invest more in universal schooling—primary, secondary and tertiary—especially targeting marginalized and low-income communities. The days where education is “free for all” must be truly realised, not just in rhetoric.

B. Regulation of Private Sector & Fees

Where private providers operate, they should be regulated to ensure access, equal quality, and reasonable fees. Incentives should ensure that private schooling does not simply replicate elite models for the rich.

C. Debt Relief & Equitable Financing

In wealthier countries, student loans and debts should be managed so that access is not blocked by cost. In poorer countries, models of low-cost, public-funded tertiary education need promotion. The focus should be on reducing inequality, not maximising institutional revenue.

D. Focus on Learning, Not Just Enrollment

The quality of teaching, materials, technology, and school conditions matter. Enrollment is not enough. The assessments show that in many countries children attend but don’t learn basic skills. Invest in teacher training, infrastructure, and learning‐outcome measurement.

E. Targeting Marginalised Groups

Girls, rural children, minorities and disabled children must be explicitly prioritized. Gender gaps, location gaps and wealth gaps must be addressed. For example, sub-Saharan Africa still shows more girls than boys out of school at every level. UNICEF DATA

F. International Cooperation and Financing

Developing countries often lack fiscal space to invest heavily in education. International finance, debt relief, and strategic partnerships must enable large scale investment. The Education Commission estimated that investment in low and middle-income countries must rise from US$1.2 trillion a year today to US$3 trillion by 2030. Wikipedia

G. Monitoring Inequality and Outcomes

Data must be collected on educational attainment, inequality indices (such as Atkinson index for years of education) Our World in Data+1 and improvements tracked. Too often policy focuses on inputs (build school) rather than outputs (did students learn?).

11. Looking Ahead: What a Fair Education System Could Look Like

Imagine this:

• In a middle-income country, primary and secondary education is free, high quality, and universal. Rural children have the same access as urban ones. Schools are well-funded, teachers trained, textbooks provided, and internet access available.

• Higher education is also publicly funded or low-cost, with equitable admission, strong funding, and no massive debt burdens. Private institutions exist but are regulated, fees are capped, and student support is robust.

• Education is not marketed as a luxury product, but as a basic human right. Programs exist to support girls, disadvantaged children and remote regions.

• Global cooperation ensures poorer countries get investment and technology, enabling them to build strong systems, not just replicate failures of business models.

In such a scenario, education helps countries grow, reduce poverty (because every additional year of schooling raises earnings ~10% per year on average) UN Today+1 and accomplish social mobility. The world becomes more equitable.

12. Final Thoughts: Business or Right? The Choice We Face

The evidence is clear: in many rich countries education has undergone a significant shift toward business logic—costs rising, debts climbing, institutions acting like enterprises. Developing countries face even deeper challenges—lack of access, quality, financing—and risk becoming even further behind.

If we accept education as primarily a business, we risk turning a basic human right into a privilege: access depending on ability to pay or borrow, outcomes depending on resources, mobility locked by debt or exclusion. If we instead treat education as a public good that must be universally supported and funded, then societies have the chance to reduce inequality, build human capital, and sustain growth.

For the world’s poorest countries, this matters hugely: every child denied schooling is a potential talent lost, every year of learning missed is income not gained, every girl kept out of education is both injustice and economic tragedy. For richer countries, the issue is also urgent: student debt burdens, unequal access, commodified learning—these threaten social mobility and raise questions about the purpose of education.

We are at a crossroads: will education continue to become a business—pricing people out and dividing societies—or will we reaffirm that education is a right, a public investment, a path to human dignity and shared prosperity? The data, the history, and the global realities suggest that the latter choice is necessary for a more just world.