Internationalisation of higher education in new zealand what went wrong and how to fix it

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Internationalisation of higher education in new zealand what went wrong and how to fix it

  1. 1. The internationalisation of higher education in New Zealand: what went wrong and how to fix it? 4:00pm, Thursday, August 7th, 2008 Professor Nigel Healey University of Canterbury
  2. 2. ‘No shrinking violet’ or desperate businessschool dean? UC College of Business and Economics EFTS 2003 2004 2005 2006 2007 2008B 2008F Domestic 1612 1625 1640 1578 1765 1811 1982 International 540 739 816 618 412 311 338 Total 2152 2364 2456 2196 2177 2122 2320
  3. 3. Overview  From ‘bit’ player to world leader in five years: explaining NZ higher education’s ‘transformation’  Why our passive ‘open doors’ business model stopped working  Finding our place in the new global higher education market
  4. 4. A world leader in international tertiaryeducation by 2005 International Foreign (non-resident) (non-citizen) Australia 17.3% 20.6% New Zealand 17.0% 28.9% UK 13.9% 17.3% Switzerland 13.2% 18.4% France 10.8% - Germany - 11.5% USA 3.4% - OECD average 6.7% 7.6% Source: OECD Education at a Glance 2007
  5. 5. …from behind the curve – increase in foreigntertiary enrolments to 2005 (2000 = 100) 1000 800 600 400 200 0 ali a NZ UK rland ance any U SA CD str ze Fr erm OE Au wit G S Source: OECD Education at a Glance 2007
  6. 6. Explaining the ‘transformation’ (1): motives forinternationalisation  Altruistic – supporting economic development in the Third World (eg, ‘Colombo Plan’)  Geo-political - building geo-political connections and profile by educating foreign leaders of tomorrow (often disguised as altruism)  Talent-seeking – attracting best minds as future researchers, citizens (eg, Australia’s education-linked immigration policy, US postgraduates)  Pedagogic – creating multinational, multicultural learning environment for the benefit of all students  Economic – seeking new high-margin customers (often disguised as pedagogical)
  7. 7. Explaining the ‘transformation’ (2): fromaltruistic to economic  Paradox of democratisation of higher education  Rising participation rates (public policy goal) lead to budgetary pressures on taxpayer subsidies to higher education….  …falling per capita subsidies to universities…  …introduction of (politically regulated) domestic tuition fees  As resources squeezed, taxpayer subsidies for international students first to go  full-cost international tuition fees introduced
  8. 8. Tertiary Gross Enrolment Rates (2006) United States 82% New Zealand 80% Australia 73% United Kingdom 59% Malaysia 29% China 22% Indonesia 16% India 12% Vietnam 9% (2000 latest data) Source: UNESCO
  9. 9. Explaining the ‘transformation’ (3): full-costinternational tuition fees  Advent of full-cost international tuition fees:  UK, early 1980s  Australia, mid-1980s  New Zealand, early 1990s  Impact skews relative attractiveness of international vis-à-vis domestic students  Domestic EFTS: tuition fee* $4301 SAC: $5039  International tuition fee*: $18,100  Add to the mix a policy allowing public, non-residential schools to charge full-cost international tuition fees *UC undergraduate business degree 2008
  10. 10. Explaining the ‘transformation’ (4): theperfect storm  For a perfect storm, need the right combination of supply and demand  NZ government policy creates supply-side conditions  Social, economic and political conditions in Asia create the demand
  11. 11. Explaining the ‘transformation’ (5): demanddrivers  Social + Demographic  extended family support for children, perceived high value of education  demographic pyramids  Economic  rapid economic growth drives ability to pay  economic development puts premium on high-skilled knowledge workers  globalisation encourages English language acquisition  Social, demographic and economic factors grow demand faster than domestic supply…resulting in  Political  governments, critically China, allow excess demand to go offshore to foreign universities
  12. 12. India’s population pyramid
  13. 13. …and it once looked as if the demand wouldgrow for ever….. Projected demand for international higher education Source: IDP
  14. 14. The special features of NZ’s ‘transformation’  Rapid and opportunistic  Rational response to unprecedented demand growth, as a result of public policy change  Skewed to major growth markets – especially China, Korea  Unusually large role of key players  Role of public schools as feeders to universities  Role of agents in bringing international students to NZ schools  Unplanned and (initially) unwilled expansion of numbers in universities  International offices not geared up to managing, and later sustaining, international numbers  Resistance to institutional adaptation to support internationalisation
  15. 15. International student visas by sector2500020000 University15000 Polytech PTE10000 School 5000 0 2000 2001 2002 2003 2004 2005 2006 2007 Source: Education New Zealand
  16. 16. The China effect: international visas issued toChina1200010000 8000 University Polytech 6000 PTE School 4000 2000 0 2000 2001 2002 2003 2004 2005 2006 2007 Source: Education New Zealand
  17. 17. Chinese visas as % of total 80 70 60 50 University Polytech 40 PTE 30 School 20 10 0 2000 2001 2002 2003 2004 2005 2006 2007 Source: Education New Zealand
  18. 18. Chinese students as % international tertiaryenrolments, 2005 60 50 40 30 20 10 0 Australia NZ UK US Source: OECD Education at a Glance 2007
  19. 19. …leaving NZ universities exposed as perfectstorm dissipates  Social, demographic and economic drivers still strong…  …but political forces have shifted  Huge expansion in domestic capacity:  Public higher education in China  Private education in India  Excess demand heading offshore is being choked off at source  And Asian countries moving into export education themselves for all the usual reasons  altruistic, geo-political, talent-seeking, pedagogic, economic
  20. 20. Investment in higher education: a Chineseperspective  Regular higher education enrolments up from 5.5m in 2000 to 18.9m in 2007  Total expenditure on education has increased from 253bn RMB (1997) to 981bn RMB 2006)  Tertiary participation rates now 22% (3.4% in 1990)  Major investments in elite higher education:  Project 211  Project 985  Project 111
  21. 21. Chinese enrolment rates (%) 120 100 80 Primary Junior Secondary 60 Senior Secondary 40 Tertiary 20 0 1990 1995 2000 2005 2006 Source: China Education Yearbooks
  22. 22. The role of the private sector: India (1)  Challenge for India:  411m people in the 6-24 age group (40% of total)  India has a number of elite national institutions:  7 Indian Institutes of Technology (IITs)  6 Indian Institutes of Management (IIMs)  3 Indian Institutes of Information Technology (IIITs)  19 Central Universities  Indian School of Mines, Dhanbad  …but only 338 public universities and 12% gross participation rate (7% official participation rate)
  23. 23. The role of the private sector: India (2)  India cannot afford public investment in higher education:  urgent demand for expansion in secondary education (only 60m of 170m primary students progress to secondary schools)  Indian government does not have the financial resources to invest in the way that China can  India has encouraged private sector to invest:  75% of HEIs in India now private; 90% of colleges in engineering, IT and management private  Over the last 10 years, huge expansion in private sector provision  Many private providers using distance/on-line learning to leverage scarce resources, exploit economies of scale
  24. 24. Private sector in Asia-Pacific  Japan, South Korea, Taiwan, Taipei, Indonesia, and the Philippines  up to 80% students are in private institutions  China  1200 private institutions  Vietnam  12% of students in private institutions  Malaysia  691 private colleges and universities and 4 foreign university campuses
  25. 25. So what went wrong? Popular explanations:  Bad publicity  High exchange rate  Competition from Australia – particularly for immigration market Economics 101:  Unexpectedly rapid supply-side response in Asia, choking off demand  Over-exposed to single market  New competition – from Europe (Bologna), Asian export education, from spread of English as a medium of instruction  Undeveloped strategies to cope with changing demand, increasing competition
  26. 26. Can we fix it?  Good news:  We have excellent, internationally connected and benchmarked universities  5 of 8 (62.5%) of NZ universities in THE Top 500  Universities multinational, multicultural environments  Bad news:  Global faculty shortage – salaries falling behind  Rising oil prices, environmental awareness may erode multinational staff and student base  The Bologna effect  Asian universities upgrading capabilities very fast
  27. 27. Asia-Pacific Top 40 (THE WUR 2007) 16 Australian National University 17 University of Tokyo 18 University of Hong Kong 25 Kyoto University 27 University of Melbourne 31 University of Sydney 33= University of Queensland 33= National University of Singapore 36 Peking University 38= Chinese University of Hong Kong 40 Tsinghua University
  28. 28. So what can be done? – Earnestness 101  Understand our markets and the changing needs  Understand our competitors  Build long-term relationships built on mutual benefit, not quick one-way gain  Celebrate and embrace internationalism  NZ small trading economy, need to be internationally connected to knowledge economy  Integrate international students – networks of the future  Use student exchange to create genuinely multinational learning environment  Align immigration policy (talent-seeking) and education
  29. 29. So what can be done? - Pragmatism 101  What do foreign students want?  Can we profitably give them what they want, in ways that fit with our educational mission and tradition?  What do they want?  Internationally portable (benchmarked, accredited) qualifications that guarantee a high rate of return on their investment – global graduate employability  English medium of instruction  Multinational/multicultural learning environment  Membership of global alumni network
  30. 30. So what can be done? - Pragmatism 101  Internationally portable qualifications:  A coherent set of Bologna/US compliant Bachelors- Masters-PhDs qualifications which facilitate student mobility  Clear position on T-people qualification structures – general UG to specialist PG or vice-versa?  Postgraduate coursework masters, especially in business and other professional areas – major growth area  US-style, scaleable PhD programmes, aimed at satisfying the ballooning demand for academically qualified faculty in Asia
  31. 31. So what can be done? - Pragmatism 101  English medium of instruction  √  Although foreign language provision in NZ universities declining  Contrast multilingual abilities of European and Asian graduates with NZ, UK and US
  32. 32. So what can be done? - Pragmatism 101  Multinational/multicultural learning environment  High % international students on campus ≠ multinational learning environment  Integration and leveraging diversity in classroom key  Student and faulty exchange militate against passive client status of international students  Challenge staff out of comfort zones by international experiences  Reach out to local ex-patriot communities
  33. 33. So what can be done? - Pragmatism 101  Membership of global alumni network  Traditional strength of US and major business schools  Kiwi Ex-patriots Association (KEA) – Professor David Teece (Berkley)  Importance of network externalities  “Alumni most important stakeholders”
  34. 34. Conclusions  New Zealand internationalisation was:  Unintended product of a public policy change  Driven by developments in China  Mediated by agents, mainly into schools  Rapid, unmanaged and unsustainable  Finding our position in the new global higher education market requires:  Understanding the changes taking place  Long-term relationship building  And especially, educational products and ‘after-sales support’ services which meet market needs

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