Private or public education-look from the economic theory

Abstract

Is education a commodity like any product in the market, the provision of which is subject to the supply and demand of the market? This is a question under the current debate in Vietnam. Relevant comments that appear on the press are based on experiences of other countries, but not on the economic doctrine. This article set the light on education based on such doctrine. Education is a special product in a sense that it is a mean to increase the production of wealth for future. Therefore, it is an accumulative commodity. Still, it is a commodity that the society needs; thus, it requires all citizens to reach a minimum level. Furthermore, basic education is a very special service as its societal benefits are worthier than personal benefits acquired by the buyers. Hence, if it is freely decided by the market, the supply will be less than the demand of the society. Basic education is characterized by the public goods that the society generally needs. So, there appear the liability of payment and coordination. The role of coordination rests with the State.