Privatizing Public Schools

An online article via huffingtonpost.com called "Privatizing Public Schools: Big Firms Eyeing Profits From U.S. K-12 Market" might send a chill down the backbones of some educators, although it is having the opposite effect on vendors who see the potential of a new market.

...Think about the upcoming rollout of new national academic standards for public schools, he urged the crowd. If they're as rigorous as advertised, a huge number of schools will suddenly look really bad, their students testing way behind in reading and math. They'll want help, quick. And private, for-profit vendors selling lesson plans, educational software and student assessments will be right there to provide it.

"You start to see entire ecosystems of investment opportunity lining up," said Lytle, a partner at The Parthenon Group, a Boston consulting firm. "It could get really, really big."

Indeed, investors of all stripes are beginning to sense big profit potential in public education.

The K-12 market is tantalizingly huge: The U.S. spends more than $500 billion a year to educate kids from ages five through 18. The entire education sector, including college and mid-career training, represents nearly 9 percent of U.S. gross domestic product, more than the energy or technology sectors.
http://www.huffingtonpost.com/2012/08/02/private-firms-eyeing-prof_n_1732856.html

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