There’s gold in them hills!
Under the cover of education reform is a reformation of the role of government in education by private companies who wish to deregulate the public school system in the same way other public commons have been deregulated since the 1960s.
"So, while the government’s role would still be significant, it would no longer operate the city’s entire portfolio of public schools. Instead, it would take on a role similar to the FAA’s role in monitoring the airline industry or a health department’s monitoring of restaurants.")
http://educationnext.org/wave-of-the-future/Into this deregulated vacuum awash in taxpayer billions rush hedge fund managers, capital investment groups and education investment industry companies that do what "investors" have done since they first came into existence: Starve out the little guy and amalgamate into global monopolies for greater profit.
In the same way that George Hearst bought and browbeat small-time prospectors into selling him their claims, the forces of global capital, dominated by the need to constantly expand to exploit markets, will eventually absorb "mom & pop" charter schools.
In our previous installment we described some of the investment and service companies trying to get in on this gold rush in the UK.(
http://journals.democraticunderground.com/Hannah%20Bell/142 ) In this one we look at some of the charities, private chain-schools and for-profit education management companies trying to cash in.
CHARITIESARK (Absolute Return Kids)Type: charity
Founder: Arpad Busson – chairman of EIM hedge fund
ARK Academies
Income: £81 million (31 Aug 2009)
Retained for future use: £46.9 million
ARK is an international "philanthropic co-operative" children’s charity that has worked on health, welfare and education projects in southern Africa, India, eastern Europe and the UK.
ARK runs eight academies in the UK modelled on American charter schools. It plans to add four more by 2012.
It sells ARK Plus academic and behavioural support for programmes for Year 7 pupils. ARK has approached the New Schools Network to express its interest in offering help to parents and teachers who want to set up new schools.The New Schools Network, a "charity" that advises folks who want to set up UK charters, has been criticized for refusing to reveal its funding sources:
http://www.guardian.co.uk/education/2010/jul/06/michael-gove-new-schools-transparencyNew Schools s headed by a former adviser to the education secretary Michael Gove and was awarded £500,000 in public money by his department. Gove is the English equivalent to Arne Duncan.
Comment:Prior to its entry into the country, ARK had no previous experience of running education services in the UK. ARK trustee Jennifer Moses was due to work as adviser to Gordon Brown in 2009 but had to give up days before starting when her husband, Ron Beller, lost more than £29 million due to the crash of his hedge fund. She is described as a "libertarian who supports private money in state education system". (Daily Mail, 5 Mar 2008)
http://www.guardian.co.uk/uk/2005/jul/06/schools.newschools
Mr Busson's publicists concede that talk of "giving something back" is hackneyed, but insist that is what he wishes to do. Mr Busson describes Ark's aims as "measured philanthropy": he wants his charity to employ the rigours of the hedge fund industry to ensure its money brings maximum benefit to deprived children. The "absolute return" of Ark's name is a hedge fund term, describing a determination to improve results year-on-year.
http://www.sourcewatch.org/index.php?title=Absolute_Return_for_Kids_%28ARK%29From SourceWatch: ARK's chairman is French hedge fund tycoon Arpad A. BussonHYPERLINK "http://www.arkonline.org/about/team/directors_and_trustees.html" <2>.
However, ARK's connections with the hedge fund industry go deeper than the background of its chairman. Unusually for an educational charity, ARK chose the journal HedgeFund Intelligence to advertise in late 2005 for a Programmes Director and Communications and Fundraising Director. The advertisement stated that "ARK's trustees drawn predominantly from within the hedge fund industry". <3> An August 2005 bulletin published by the public sector union UNISON described ARK in unflattering terms: "A charity funded with millions made in City fund dealing wants to develop a network of city academies in the UK, modelled on American charter schools. The ludicrously named Absolute Return for Kids (ARK) has no experience of running education services in the UK and was recently thrown off an academy scheme in Islington North, London in June after the governors of one of the schools involved voted against." <4>
Arpad Busson is an international playboy who is currently engaged to Uma Thurman. He comes from a monied background. More here:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=219&topic_id=28662&mesg_id=28782The Biggest, Richest Party Everhttp://blogs.wsj.com/wealth/2010/10/26/the-biggest-richest-party-ever/80,000+ OF THE WORLD’S ELITE…80+ OF THE WORLD’S FINEST LOCATIONS…ALL WITHIN 24 HOURS…
Among those expected to attend are Liz Hurley, Uma Thurman and Simon Cowell. A table is reported to cost 100,000 pounds. ... The invitation includes a special edition Key-2 Luxury silver key ring, which gives the holder "access to thousands of personal contacts and exclusive VIP privileges for life, and is not available to purchase by the general public."
Before we get all judgemental, let’s be clear that this is all for charity. The money –- an expected 5 million to 10 million pounds — will go to the charity ARK (Absolute Return for Kids), founded by hedge-fund manager Arpad "Arki" Busson (aka "Mr. Uma Thurman"). The hosts include Mr. Busson, entrepreneur Tom Singh, a Pakistani Prince and Stanley Fink, the hedge funder and Tory Party Treasurer...
But is the Global Party the most efficient or best way to raise money for charity? The Red Cross last year raised $32 million through online giving, without the black-ties and caviar boats and pop stars.
http://www.theglobalparty.com/homeOasis Community LearningCategory: Non-profit, religious
Type: Subsidiary charity of Oasis Trust
2009 budget = £6.5 million
Oasis Community Learning is a subsidiary charity of the Oasis Trust. It operates nine "academies" (aka charter schools) in England, as well as school-like entities overseas (India & Africa primarily).
Oasis Trust is a UK-based Christian charity which operates on 5 continents. On UK charity information sites its first listed aim is "the advancement of Christianity".
http://www.charitiesdirect.com/charities/churchcouk-community-projects-1123713.htmlIt is evangelical & a member of "Global Connections" -- The UK "network for world mission," Formerly known as the UK Evangelical Missionary Alliance.
http://www.globalconnections.co.uk/ Oasis's job Academy job listings note: "it is vital that our staff own our Christ-centered ethos"
http://www.salfordstar.com/article.asp?id=114.Comment:Oasis is already in the US, partnered with America's Fuller Theological Seminary, "the largest multi-denominational Christian seminary in the world," and "arguably the most influential."
Influential graduates include Rick Warren (Saddleback Church) & Bill Bright (founder of Campus Crusade for Christ). Billy Graham was mentored by Fuller’s founders & continued his association as a Board member.
http://www.oasisuk.org/world/countries/USAhttp://en.wikipedia.org/wiki/Fuller_Theological_Seminaryhttp://www.fuller.edu/page.aspx?id=7693Warren, Graham & Bright’s operations are networks of influence for the right-wing. For example, Bill Bright's Campus Crusade was funded by Nelson Bunker Hunt. Bright "positioned CCC as a major behind-the-scenes player in the creation of a network of organisations with overlapping memberships and finances. These included the Christian Freedom Fund, Moral Majority, Religious Roundtable, Christian Coalition, Alliance Defence Fund, Christian Voice...and the National Religious Broadcaster...(and).. the Council for National Policy (NCP)...
According to the New York Times NCP is "a little known club of a few hundred of the most powerful conservatives in the country. They meet at undisclosed locations for a confidential conference ... to strategize about how to turn the country to the Right".
http://www.onlineopinion.com.au/view.asp?article=3960Founder Steve Chalke states: “The struggle to reshape the meaning of politics is one we must engage in. The church has a major role and responsibility in this process.” Chalke is developing the Charities Parliament, in order to establish a stronger voice for third sector organizations in public life.
http://en.wikipedia.org/wiki/Steve_Chalke.Harris Federation:Net incoming resources: £8.2 million (31 Aug 2009)
Harris Federation is the chain-school "charity" of the carpet magnate Philip Charles Harris, Baron Harris of Peckham (title circa 1996), a Conservative member of the House of Lords and businessman. Bill Gates bought a 3% share of his floor covering corporation, Carpetright PLC, in 2008. Little quid pro quo there, perhaps? Baron Harris is the 206th richest person in the UK and donates extensively to education, shades of his pal Bill.
However: Parliamentary written answers in December 2009 showed that the seven Harris academies open at that time had only received £3.7 million of the £8.5 million promised by Lord Harris for capital building work. In May 2010, it was reported that Harris and other providers held talks with parent campaigners about running a new state school in Wandsworth for profit; the school will be run by the provider and not the parents.
http://www.atl.org.uk/Images/ATL%20Privateers%20Brochure.pdf (p. 16)
FOR-PROFIT ACADEMIESCognita GroupType: private limited company with share capital
Cognita Ltd, subsidiary to Cognita Holdings Ltd
Operating profit: £3.9 million (31 Aug 2009)
Formed in 2004 by Chris Woodhead together with Englefield Capital LLP (renamed Bregal Capital LLP in 2010), Cognita specialises in moderately priced private education. It is the largest private operator of schools in the UK. Its international schools division was created in October 2006. It currently has 52 schools (including nurseries, prep schools, primary and secondary schools) across the UK, Europe and south-east Asia (46 of which are in the UK). It employs 2,900 teaching and support staff and delivers to more than 15,200 pupils.
A lesson in private educationDespite a recession and the government's new 'public benefit' standard, the Cognita group of private schools is thriving....Those owned by the Cognita group have escaped these pressures by not claiming charitable status. The company was founded five years ago by a group of financiers, and has since bought up 49 schools. By 2013, reckons its chair, Chris Woodhead, it'll double that.
And – despite being a purely commercial venture – it is being helped in its ascent by the very rules intended to make schools offer a "public benefit".http://www.guardian.co.uk/commentisfree/2009/jul/25/pri...Englefield Capital LLP (Woodhead’s investment company)
Education and trainingEnglefield believes that education and training has huge potential as a sector, benefiting from strong underlying social and economic drivers and attractive business models. It benefits from positive demographics, undersupply, low or negative correlation to the business cycle and is recognised as increasingly valuable in the labour market. The sector has the advantage of visibility of revenues, costs and cash flow, low price elasticity and asset backing.
http://www.engcap.com/eng/sectors/education-and-training/ Kunskapsskolan and Internationella Engelska Skolan (IES):Private for-profit Swedish chain-schools
Sweden underwent education reform in 1991-1992, concurrent with a political shift to the right which has ended the dominance of the Social Democrats, produced a two-term conservative PM, and most recently resulted in a right-wing party being seated in Sweden's Parliment for the first time in modern history:
"The victory of the conservative governing Alliance in Sweden’s parliamentary elections has definitively broken the dominance of the Social Democrats, writes the liberal daily Göteborgs-Posten: 'Fredrik Reinfeldt is the first conservative prime minister in modern times who has managed to be re-elected. That is a historic breakthrough. The Social Democrats will certainly form a government again at one point, but by then Sweden will be another country. Not less prone to solidarity, but with more civic freedoms, and founded upon low income tax and freedom of choice regarding the social system. The Social Democrats will no longer see Sweden as their domain. That is the most important consequence of this victory for the Alliance.'"
http://baltic-review.com/2010/09/20/the-end-of-an-era-swedish-right-wing-populists-enter-parliament/Sweden's ed reform is similar to what's being pushed in the US: Tax money is used to fund education and families may place their children in the school of their "choice," including the so-called "independent" (charter) schools, most of which are for-profit. Sweden's reforms got high marks from that guru of economic "freedom," Milton Friedman.
http://www.heartland.org/policybot/results/11606/Voucher_Lessons_from_Sweden.htmlSo it's not surprising that two of the chain-schools who've indicated interest in operating British schools are Swedish for-profits looking to expand:
Kunskapsskolan: Sweden's largest non-governmental school (32 schools in Sweden), currently in the process of opening 3 schools in the UK.
Internationella Engelska Skolan (IES):Translates to "International English School," a Swedish for-profit chain school founded by Barbara Bergstrom, an American. Has 17 schools in Sweden, employs 800 people, and has revenues of 60 million British pounds. IES has partnered with University of Cambridge International Examinations (CIE), the world’s largest provider of international qualifications for 14–19 year olds ("non-profit" testing industry) -- which is itself already operating in Sweden, as well as 157 other countries. CIE also provides curriculum and consultancy world-wide.
EDUCATION MANAGEMENT, CONSULTANCY AND SUPPORTGEMS (Global Education Management Systems)Type: privately owned company based in Dubai
Turnover: £17.3 million (31 Aug 2009)
Part of the Varkey family holding group, GEMS Education manages an
international network of schools in Europe, Asia and North America, providing education to nearly 100,000 students in 125 countries and employing 9,000 education professionals in approximately 60 schools. It claims to be the “…largest kindergarten to grade 12 private school operator in the world”.CommentGEMS Education originally intended to be one of the leading chains of UK independent schools acquiring a chain of 13 schools. GEMS Education intends to be a ‘major player’ in running the coalition government’s new free schools programme.
Speaking at a conference in London former chief executive, Anders Hultin, stated that “the profit motive is essential for such projects to work”. He believes success is dependent upon being given autonomy from local authority control. He also said he felt England would eventually reconcile itself to privatisation in education when it saw the results. (Times educational supplement, 21 May 2010)
In 2007 GEMS joined forces with Edison Schools, the largest education management organization in the US. Edison had such a poor track record for running schools that several schools returned to their districts after being run by Edison management in the early part of the decade. http://online.wsj.com/public/article/SB112604287494033169.html “Edison Schools, as the venture was called, instantly bled cash but still attracted funding from the likes of Time Warner, J.P. Morgan Capital Corp. and the venture arm of Donaldson, Lufkin & Jenrette Securities. In 1999, after $112 million in accumulated losses, Mr. Whittle launched an initial public offering, raising $173 million. Three years later Edison's stock had dropped 98%. In 2003, with $60 million in loans in default, Mr. Whittle took the company private again. Today, instead of owning 1,000 private schools, Edison merely manages 157 public ones. Quite a comedown.” I guess the price for failure is more investment.
http://www.tes.co.uk/article.aspx?storycode=6061295Global giant Gems joins the gold rush for academy profitsNews | Published in The TES on 22 October, 2010 | By: Irena Barker
One of the world's largest chains of private schools, which is headed in the UK by a former Ofsted chair, has become the latest company to join the "gold rush" of companies looking to profit from Coalition school reforms.
Zenna Atkins, chief executive of Gems in the UK, said she was in talks with academies about offering services to schools and would go "as big as they want and as fast as they want".
Critics of private sector involvement in state education said schools should be "very afraid" of the surge of interest from private providers, claiming the profit motive would jeopardise children's education.
Dubai-based Gems made a loss from its 12 British-based private schools last year, but believes this can be offset by profit from the Government's moves towards more independence in state education.
Fieldwork Education:“Fieldwork” -- Interesting choice for the company name.
Fieldwork Education is a for-profit education support company providing curriculum to 1000 schools world-wide, as well as school management, consultancy & other services. It's a division of World Class Learning Schools and Systems Group LTD, which operates private schools in Britain, the US, and Dubai:
http://evgrieve.com/2010/04/blimey-world-class-learning-academy.htmlThere appears to be a real estate angle:
http://www.wclgroup.com/view_pagecontent.php?resourceid=9;id=r9#r9Fieldwork has managed all of Shell Oil's schools since 1996, i.e. it recruits, hires and fires staff, provides curriculum, manages facilities, etc.
http://www.fieldworkeducationservices.com/view_pagecontent.php?resourceid=11;id=r11#r11 WCL was founded by an unnamed group of "investors" and is now backed by Sovereign Capital, a private equity company. "Sovereign has a strong track record of investing up to £40m of equity in entrepreneurial, UK businesses with over 130 Buy & Build transactions successfully completed so far. Sovereign specifically invests in the service based sectors of healthcare, education & training and business support services." A quick glance at their site and various news items gives the impression they're investing in consolidating small to medium players in these sectors.
http://www.sovereigncapital.co.uk/VT GROUP:As mentioned in our previous installment, VT Group is the education services subsidiary of Babcock International, a global corporation whose main income stream comes from defense & government contracting. Babcock International began its life as the UK unit of America's Babcock & Wilcox.
VT Group is getting into the education management business too, & has plans to run up to 1000 schools in Britain -- for profit.
A Bell/Messenger ProductionLink to Part 1 of Privateers Series:
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x9314623