Offshoring opportunities – a real alternative?

Minister proposes overseas campuses as alternative to international student recruitment

Times Higher Education reports that David Willetts seems to be pushing overseas campus expansion – with private finance support – to compensate for reduced international student recruitment resulting from government immigration policies. The idea features, not for the first time, in a speech on international higher education he delivered at the Goldman Sachs-Stanford University Global Education Conference on 20 June:

His call for universities to seek alternative financing for expansion overseas comes amid a drive for every government department to identify sources of economic growth.

The minister is also seeking ways for UK universities to maximise the number of overseas students they teach abroad. The government’s tougher immigration controls threaten to cut the number of students able to enter the UK for study at universities.

Mr Willetts said: “Our universities are internationally recognised: they are a great British brand. We can do more to take advantage of our position. Our universities are well financed for what they do but underfinanced for big expansion. I want to see investors from Britain and abroad helping our universities access these big overseas markets. I know that companies like Goldman Sachs who have organised this conference…are keen to investigate this possibility.”

The minister hopes that Goldman Sachs will be able to identify private investors willing to finance developments such as overseas branch campuses and distance-learning operations.

A previous post reported on an earlier speech by Mr Willetts on the issue of internationalisation. He is undoubtedly serious about the proposition. And he is right to point to the success of the University of Nottingham and others in establishing campuses overseas. However, there are several fundamental problems with this notion:

  1. The income generated by overseas campuses will do very little to offset losses from underrecruitment of international students in the UK. Even where it may be possible and appropriate to repatriate surpluses, the sums involved will not get anywhere near the level of international student income currently received by UK universities.
  2. The de-diversification of UK campuses resulting from the decline in international students will harm the learning experience for all.
  3. Building, growing and sustaining an overseas campus is a long game. Even if every UK university had one it would take a very long time to get to a point where they were capable of providing the scale of export benefit the UK currently enjoys.
  4. If the primary aim of building an overseas campus is to make money then it is unlikely to provide a good basis for a productive relationship with a host country.

So, even with the backing of Goldman Sachs it is not clear that the overseas campus option is going to come close to compensating for the anticipated impact of immigration policies on international student numbers in the UK. The other angle discussed by the Minister, distance learning, may offer possibilities but again is unlikely to deliver on the scale required. Better perhaps to review those immigration policies instead.

Advertisements

World Education: The New Powerhouse – Going Global 2011 §1

Some comments on Going Global 2011 – World Education: The New Powerhouse?

I was fortunate to be present at the British Council’s Going Global Conference in Hong Kong earlier in March. There were about 1,000 delegates there and as might be expected for this kind of event many of the presentations were high level and whilst some were pretty strategic others felt rather abstract.

There was a distinct UK flavour to some of the discussions and the particular current domestic issues relating to the new English fees regime and Tier 4 student immigration did intrude in a number of sessions. Despite this there was a lot which was of interest including some really good perspectives from other nations.

The opening session on “world education, the new powerhouse” (does this really mean anything?) had a number of set piece presentations from Ministers and then contributions from Hong Kong to Brazil to Africa:

Donald Tsang Yam-Kuen, Chief Executive of Hong Kong spoke about the idea of HK as a regional higher education hub. However, you get the real impression that they won’t be just another regional hub, but rather that they have the foundations, the location, the money, strong institutions and the real vision to do make this happen. Two other points of note here: first, education is the Hong Kong government’s single biggest spending priority and accounts for 25% of annual expenditure (25%!); second, Harrow School (yes that Harrow) is intending to open a branch campus in HK.

Professor Tony Chan, President of Hong Kong University of Science and Technology (HKUST) and Convener of the Hong Kong Heads of Universities Committee, spoke about the changing patterns of international HE and reinforced the commitment to the idea of a regional hub. Hong Kong universities are offering a real international education not the more traditional Eastern model. And, lest anyone doubt the intent here, he noted that HKUST was aiming for 20% international students, increasing international study opportunities for its own undergraduates and more collaboration with universities in mainland China. HKUST is still a young institution but is an impressive one and hugely ambitious: “We are in aggressive recruitment mode for international staff and students”.

Three other international perspectives of note here. Professor Olugbemiro Jegede, Secretary-General and Chief Executive, Association of African Universities, Ghana spoke about the challenges for Africa. It was a very long list and the challenges exist across the board. Collaboration and a continent-wide academic framework including mobility and mutual recognition is the way forward. He also noted the importance of using ICT to help the growth of HE in Africa. Ultimately this was an optimistic prospectus but the massive scale of challenges here remains rather daunting.

Dr Javaid Laghari, Chair of the Higher Education Commission in Pakistan, reported that Pakistan still has a long way to go to achieve its ambitions for having two universities in the world top 100. Pakistan was seeking to grow PhD numbers significantly, including through split PhDs with foreign universities. And all of this was happening in the context of being in the ‘frontline of the war on terror’. Again we were given an optimistic outlook but these are really challenging circumstances in which to be growing and strengthening HE.

Dr Carlos Alexandre Netto. President of the Federal University of Rio Grande do Sul, Brazil, gave a sense of the huge scale of HE in his country. With over 2,000 institutions but only a 15% age participation rate there is ongoing major growth in public university enrolments. Most HE students are at private universities though and growth in student numbers is actually being funded through loans for private university study. A major quality assurance operation now been through its first cycle. Overall, left with the impression of a system of extraordinary scale.

Between them Professor Steve Smith, Vice-Chancellor and Chief Executive, University of Exeter and President, Universities UK, and David Willetts, UK Minister for Universities and Science, sought to paint a positive picture of UKHE. The THE report on the event notes the following:

Claims that the UK government is cutting funding for higher education are “not factually accurate” and gloomy media coverage is damaging the sector’s reputation overseas, according to the president of Universities UK.
Steve Smith, vice-chancellor of the University of Exeter, told an audience of international higher education leaders at the Going Global conference in Hong Kong last week that the reality of the government’s funding changes in England was “rather different to the headlines”.
He also countered suggestions that fees for overseas students would triple and described the UK as still being “welcoming” to international students despite visa restrictions.
Professor Smith’s message on funding echoed that from David Willetts, the universities and science minister, who told the conference: “We expect universities to get the same amount of cash, if not more than they have received up to now.”

Both were therefore arguing there would be more money in the system, international fees would not be tripled (although the contrast with David Cameron’s assertion in China last year that international fees would actually be reduced to bring them in line with domestic fees was noted by the anoraks) and international students would continue to be extremely welcome in the UK (although this is somewhat at odds with the Government’s proposed Tier 4 visa changes). Willetts said he was embarrassed by small number of UK students going abroad and says Government was trying to help with this (but it was far from clear how this help would be offered). Steve Smith meanwhile added that the revised visa proposals which would be published soon would be good news for universities and international students. We’ll see.

World education may or may not be the new powerhouse but the challenges in some parts of the globe remain huge and in other areas the difficulties are self-imposed. Overall though there seems to be a strong degree of consensus that the future of HE is global.

Australian review of student visa requirements

Australia seems to have realised that student recruitment matters

Times Higher carries an interesting piece on changes to student visa arrangements in Australia.

Universities in Australia have welcomed the “timely” decision by the country’s federal government to review its student-visa system in light of the recent collapse in demand from overseas students.

Ministers announced the review last week alongside an immediate package of measures designed to ease restrictions that have been partly blamed for the decline in applications from key markets such as India and China.

Although other factors such as the global recession, the strong Australian dollar and the fallout from attacks on Indian students have also hit enrolments, the government has come under pressure to change its visa policy.

Concerns have also been expressed that the Australian government was giving overseas students the impression that it was not “open for business”, with the result that students were heading for competitor countries such as the US, Canada and the UK.

Given the decidedly unfriendly tenor of the government’s latest immigration proposals, this move could reverse the flow of traffic. Good news for Australian HE, not good for UK universities (or the UK economy).