GATS and higher education: the need for regulatory policies

Whereas education used to be considered a public good, it has now become an internationally tradable commodity. It is therefore important to look at how educational provision, quality and financing are affected by the General Agreement on Trade in Services (GATS), a multilateral agreement signed in 1995. The higher education landscape in particular is undergoing a process of significant change. Nevertheless, countries must remain aware that even if they do wish to open up an area such as education to international trade, they can retain control over a certain number of parameters. This paper analyzes the implications of GATS for education systems in developing countries, and discusses the importance of regulatory mechanisms for these countries.