Overview of the global market in transnational education


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Higher education has become a major global industry. The most striking dimension of this internationalisation has been the rise in the number of students studying at universities outside their own country. The equally rapid increase in the number of students studying for a foreign degree without leaving their home country has, however, attracted less attention. UNESCO defines this form of transnational education (TNE) as ‘all types of higher education study programmes, sets of study courses, or educational services (including those of distance education) in which the learners are located in a country different from the one where the awarding institution is based’. For some countries, notably the UK, there are now more foreign students studying for awards offshore than studying on-campus in the UK. This presentation provides an overview of the types of TNE activity and discusses the broad trends and developments in this rapidly evolving, and largely unregulated, international market.

QS Asia-Pacific Professional Leaders in Education (QS-APPLE) 8th Annual Conference, Bogor Agricultural University, Indonesia, November 2012

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Overview of the global market in transnational education

  1. 1. Overview of the globalmarket in transnational education 8th QS-APPLE Annual Conference 15 November 2012 Professor Nigel Healey Pro-Vice-Chancellor (International) Nottingham Trent University
  2. 2. Overview• What is transnational education?• Trends in transnational education• Drivers of transnational education• The challenges ahead for transnational education19 November 2012 2
  3. 3. What is transnational education?• ―Any teaching or learning activity in which the students are in a different country to that in which the institutional providing the education is based‖ (Global Alliance for Transnational Education, 1997)• ―all types of higher education study programmes, sets of study courses, or educational services (including those of distance education) in which the learners are located in a country different from the one where the awarding institution is based‖ (Council of Europe, 2002)19 November 2012 3
  4. 4. General Agreement on Trade in Services(GATS) and international trade in servicesMode 1 — Cross border From the territory of one Membersupply into the territory of any other MemberMode 2 — Consumption In the territory of one Member toabroad the service consumer of any other MemberMode 3 — Commercial By a service supplier of onepresence Member, through commercial presence, in the territory of any other MemberMode 4 — Presence of By a service supplier of onenatural persons Member, through the presence of natural persons of a Member in the territory of any other Member19 November 2012 4
  5. 5. General Agreement on Trade in Services(GATS) and transnational educationMode 1 — Cross border Programme mobility: distance orsupply on-line educationMode 2 — Consumption Student mobility: exportabroad educationMode 3 — Commercial Institutional mobility: franchise/presence validated partner and International Branch CampusesMode 4 — Presence of Staff mobility: fly-in/fly-outnatural persons programmes19 November 2012 5
  6. 6. Blurring and overlap in transnationaleducationMode 1 — Mode 2 —Programme Blended Studentmobility mobility 2+1Mode 3 — Mode 4 — IBC Staff mobilityInstitutionalmobility19 November 2012 6
  7. 7. How big is transnational education?• Host countries typically require foreign providers to register and report enrolments• This only gives a partial view of the global market• Few countries require reporting of transnational activities by their own universities• The UK and Australia both require reporting by their universities, and quality assure their foreign activities• Use UK data to provide an insight into the scale of the market19 November 2012 7
  8. 8. Mode 2: Students studying on campus atEnglish HEIs (2010/11) Level of provision Postgraduate Undergraduate TotalUK 316,265 1,429,795 1,746,065Other EU 40,855 61,845 102,700Non-EU 134,270 114,185 248,455Total 491,395 1,605,825 2,097,21519 November 2012 8 Source: HESA
  9. 9. Modes 1, 3 and 4: Students studying wholly overseas at UK HEIs (2010/11) Level of provision Post- First Other graduate degree UG TotalStudents registered at a 74,135 127,030 10,745 212,046UK HEIStudents studying for an 14,660 274,970 2,055 291,745award of a UK HEITotal 88,795 402,000 12,800 503,795 Total non-UK on campus = 351,155 19 November 2012 9 Source: HESA
  10. 10. Transnational education by type of delivery 2007/08 2008/09 2009/10 2010/11Overseas campus 7,120 9,885 11,410 12,305Distance, flexible anddistributed learning 100,345 112,345 114,985 113,065Other students registered atHEI 59,895 68,595 74,360 86,630Overseas partnerorganisation 29,240 197,185 207,790 291,575Other students studyingoverseas for HEIs award 70 35 50 125Total 196,670 388,045 408,595 503,70019 November 2012 10 Source: HESA/SIEM
  11. 11. Caveat 1: the Oxford Brookes effect 2007/08 2008/09 2009/10 2010/11Oxford Brookes 870 163,295 162,045 239,945University19 November 2012 11 Source: HESA
  12. 12. What do I need to do to be awarded the BScdegree at Oxford Brookes?To be awarded the BSc (Hons) in Applied Accounting you must:• be registered with Oxford Brookes University ie have opted in to the BSc degree scheme before passing any of the three ACCA Fundamentals papers, F7, F8 and F9• successfully complete all nine Fundamentals level papers• complete the ACCA Professional Ethics module• complete and pass the Oxford Brookes University Research and Analysis Project• To submit the Research and Analysis Project in the May and November submission periods, please refer to RAP submission dates.• The degree must be completed within 10 years of your initial registration onto ACCAs professional qualification. 19 November 2012 Source: http://www.accaglobal.com/en/help/oxford- 12 brookes.html
  13. 13. So how big is transnational education for theUK without Oxford Brookes? 2007/08 2008/09 2009/10 2010/11Overseas campus 7,120 9,885 11,410 12,305Distance, flexible anddistributed learning 100,345 112,345 114,985 113,065Other students registered atHEI 59,895 68,595 74,360 86,630Overseas partnerorganisation 28,370 33,890 45,745 51,630Other students studyingoverseas for HEIs award 70 35 50 125Total 195,800 224,750 246,550 263,75519 November 2012 13 Source: HESA/SIEM
  14. 14. Caveat 2• ―the Aggregate offshore record should be collected in respect of students studying (to date) wholly outside the UK who are either registered with the reporting institution or who are studying for an award of the reporting institution‖ http://www.hesa.ac.uk/component/option,com_studrec/task,show_f ile/Itemid,233/mnl,11052/href,coverage.html/• The data do not include students in validated centres studying for UK awards, unless they are registered as students19 November 2012 14 Source: HESA
  15. 15. Transnational education as governmentpolicy• TNE is one of the ―great growth industries of the future‖• ―increasingly, emerging economies want to educate their students at home, and the UK – a global pioneer in developing educational facilities – is well placed to help…We not only have strengths in teaching and research but in design and construction of universities, mobilising finance, curriculum development, qualification accreditation and quality assurance‖ (David Willetts, UK Minister for Universities and Science, April 2012)19 November 2012 15
  16. 16. The drivers of demand for transnationaleducation – Per capita GDP: • Ability to pay • Need for education in an advanced knowledge economy – Population in 18-30 age group – Capacity and quality of domestic higher education – TNE is mainly ‗demand-absorbing‘ – TNE is presently mostly in Asia • Fastest economic growth • Rapid population growth • Domestic higher education capacity has lagged demand growth and been lower quality than in OECD19 November 2012 16
  17. 17. Projected per capita GDP (US$ PPP at 2006prices)19 November 2012 Source: PWC, The world in 2050 - Beyond the BRICs: a 17 broader look at emerging market growth prospects
  18. 18. Continuing population growth: five of the world‘sseven most populous countries are in Asia19 November 2012 Source: United Nations Population Fund 18
  19. 19. By 2020, 50% of the world‘s 18-22 year oldswill be from four Asian countries19 November 2012 Source: United Nations Population Fund 19
  20. 20. But changing shape of the populationpyramid for Asia: 1990 (left) vs 201019 November 2012 Source: Population Division of the Department of Economic 20 and Social Affairs of the United Nations Secretariat
  21. 21. A closer look at the university agedemographics19 November 2012 21
  22. 22. Capacity and quality of domestic highereducation• Participation rates rising to OECD levels (helped by demographic slowdown in 18-22 year olds)• Policy focus shifting from quantity to quality: advent of new quality assurance regimes• Explicit policies to internationalise universities• Governments concentrating funding for research on tier of elite universities to create ―world-class‖ universities19 November 2012 22
  23. 23. Gross tertiary enrolment rates*19 November 2012 * Includes international students 23 Source: UNESCO Institute for Statistics
  24. 24. Quality AssuranceAsian rankings of strength of quality assurance regime Score/10 1 Hong Kong 7.2 2 China 5.6 3= Indonesia 5.0 3= Malaysia 5.0 5 South Korea 3.9 6 Thailand 3.3 7 Singapore 2.8 8 Japan 2.2 9 Vietnam 0.6 Source: British Council
  25. 25. Asian vs world quality assuranceRankings of strength of quality assurance regime Score/10 1 Australia 9.4 2 Germany 8.9 3 UK 8.3 4 France 7.8 =5 Hong Kong 7.2 =5 Netherlands 7.2 7 China 5.6 =8 Indonesia 5.0 =8 Malaysia 5.0 =8 US 5.0 11 Russia 4.4 12 South Korea 3.9 =13 Thailand 3.3 =13 UAE 3.3 =15 Nigeria 2.8 =15 Singapore 2.819 November 2012 25 Source: British Council
  26. 26. Internationalising Asian higher education• Motives for internationalisation: – Development aid (Colombo Plan) – Project language and culture (soft diplomacy) – Export education (commercial) – Attract skilled immigrants – Strengthen teaching and research on campus through the presence of foreign scholars• All main Asian countries have ambitious targets to attract international students to their domestic higher education systems19 November 2012 26
  27. 27. Building world-class universities (1)• China – 2,358 universities – 22.3m undergraduates, 1.5m postgraduates (MoE, 2011/12)• Project 211: started 1995 – 113 universities – Train 80% PhDs, 66% PGT, 50% of international students, host 96% of research laboratories• Project 985: started 1998 – Chinese ―Ivy League‖ – Initially C9 League, now 39 universities• Goals: – To make Peking and Tsinghua ―top university‖ – To make 8 universities ―world-class‖ – To make remaining 29 universities ―well-known internationally‖19 November 2012 27
  28. 28. Building world-class universities (2)• Korea – World Class University‘ (WCU) project launched in 2008 – Government-funded to bring international scholars to Korea and set up new programmes – KoreaBrain21 to create 10 world class, research-oriented universities• Thailand – Second 15-Year Long Range Plan on Higher Education – Focus resources on nine national research universities• Japan – A Policy for the Structural Reform of Universities, 2002: 21st Century Centres of Excellence Programme – Now Global COE Programme: targeted support to the creation of world- standard research and education bases (centres of excellence) – Based on discipline areas, not whole universities19 November 2012 28
  29. 29. Building world-class universities (3)• Malaysia – National Higher Education Strategic Plan 2011-15 – 6 Research Universities – 20 world class Centres of Excellence (CoE) – One or two APEX Universities among existing IHEs – Three IHEs among the top 100 and one in the top 50 of world renowned universities• Singapore – Has bilateral system of polytechnics/institutes of technical education vs four public universities – Research funding concentrates on NUS and NTU – Uses foreign universities to absorb additional demand for places• Taiwan – Development Plan for World-Class Universities and Research Centers of Excellence19 November 2012 29
  30. 30. Conclusions (1)• Transnational education is big business for…• …but the data are still not reliable• To date, transnational education has been mainly focused on Asia, driven by: – High economic growth – Rapid population growth (in 18-22 year old range) – Lack of capacity and quality in domestic higher education sector• Looking ahead, transnational education will become a tougher market in Asia as: – Demographics reduce demand – Capacity and quality of Asian universities improve and… – …tougher quality assurance regimes impact Western providers – Evidence that some franchise activity is being scaled back19 November 2012 30
  31. 31. Conclusions (2)• The traditional principal-agent (university-foreign private college) model may have limited life span in Asia• Activity may switch to other emerging markets in Africa and LatAm…• …and some new hubs where government policy is to draw in foreign providers, notably Dubai and Qatar• Continued TNE in Asia likely to be concentrated on IBCs rather than franchising, but this may be a limited market19 November 2012 31