Internationalisation, Globalisation, and the Knowledge Economy

HEM 4230: Internationalisation, Globalisation and the Knowledge Economy Master in HE, Class 2008 Rómulo Pinheiro Oslo, 16 October 2007

The week ahead

Tuesday (today): Trade, Markets & Cross Border Education

Wednesday : Europeanisation: Bologna, Lisbon & the Open Method of Coordination

Thursday : The link Higher Education & Socio-Economic Development

Format: Class (morning), seminar (afternoon). Written essay as evaluation.

Trade, Markets & Cross Border Education Master in HE, Class 2008 HEM 4230: Internationalisation, Globalisation and the Knowledge Economy Rómulo Pinheiro Oslo, 16 October 2007

Broad topics being covered:

Developments in cross-border education (4 areas)

Trade in educational services (GATS)

Policy issues raised by Cross Border Education

Trade, Markets & Cross Border Education

1. Developments in cross-border education

Four key areas:

A. Growing and diversifying demand

B. Types and rationales in cross border delivery

C. Changing institutional landscapes

D. Brain- gain/drain/circulation

Development and Transition Economies/Countries Diversification Increasing & Widening Access Knowledge Economy Demographic Change A.Growing & Diversification HE demand

Growth of foreign students over the last 20 years (1990 = 100) Source: OECD

Patterns of flows Source: OECD

Country Case: The USA, the leading receiver Source: Open Doors (2006)

Where do the students come from? Source: Open Doors 2006 (USA only)

International Students: Subject Areas (2005/06, as % of total international)

Business & Management (17.9%)

Engineering (15.7%)

Physical & Life-Sciences (8.9%)

Social Sciences (8.2%)

Mathematics & Computer Science (8.1%)

Education (2.9%). Agriculture (1.4%)

Source: Open Doors 2006 (USA only)

B. Types of Cross border education activities Sources: Knight (2003b) and OECD A trend increasing very quickly from a modest starting point - Opening of a foreign campus - Buying (part of) a foreign educational institution - Creation of an educational provider abroad Foreign campuses Foreign investments 3. Institutions/providers Academic partnerships represent the largest share of these activities E-learning and franchising are small but rapidly growing activities - Joint course or programme with a foreign institution - E-learning programmes - Selling/franchising a course to a foreign institution Academic partnerships E-learning Educational programmes 2. Programmes An old tradition in the education sector, which should grow given the emphasis on mobility of professionals and internationalisation of education more generally - For professional development - As part of an academic partnership - Employment in a foreign university - To teach in a branch institution abroad Academic/trainer mobility Professors/trainers Probably the largest share of crossborder education - Full study abroad for a foreign degree or qualification - Part of academic partnership for home degree or joint degree Student mobility Students/trainees 1. People Size Examples Main forms Type

Linkages, connections and flows

Student and staff mobility

Increase in numbers

Changing rationales

Changing geographies

Flows of educational services

Cooperative programmes

‘ Offshore’ education

Distance education

On-line provision of education

Increase of linkages

Increased linkages

The changing nature of linkages

The changing nature of international linkages From connections to coordination to integration Intensity From academic to leadership driven Agency From single activities to multiple disciplines & themes Activities: From collective to individual interests of institutions Interests: From open to restricted Membership: From bilateral to multilateral (c.f. Beerkens 2004) Members: Dimensions

Approaches to cross border HE

C. Changing institutional landscapes Education brokers Media companies, libraries, museusms Corporate Universities Franchise universities Virtual Universities New Players of Knowledge Society Scott (2003)

D. Brain Gain/Drain/Circulation

Brain Drain:

25-50% of all college-educated nationals of Ghana, Mozambique, Kenya, Uganda and El Salvador live abroad in an OECD country; 80% for Haiti and Jamaica.

In contrast, less than 5% of the skilled nationals of the powerhouses of the developing world - India, China, Indonesia and Brazil - live abroad in an OECD country

Source: World Bank (2005)

28,000 178,000 10,000 3,000 120,000 20,000 27,000 2,700 15,000 108,000 24,000 1,800 27,000 EU +371,000 Asia + Oceania -47,800 Latin America - 48,000 Africa - 165,400 49,000 4,500 3,400 302,000 1,000 Migration between world regions: foreign students enrolled in tertiary education (in 1999) Source : DG Research & A.Golini, S.Basso, A. Busetta US & Canada +409.700 Other Europe -92.500 Latin America -48.000 Africa -165.400

Brain Gain. Who Benefits?

Brain Circulation/Exchange

Forbes (2002): The number of Chinese returnees in the Shanghai's Pudong special economic zone rose from 500 (1999) to 3,200 (2001). The number of companies set-up by returnees almost tripled, to 330 (1999-2001).

Study at UC, Berkeley: 74% of the 600 Chinese-born high-tech professionals surveyed in Silicon Valley have one or more friends or colleagues who have returned to China to work. The study estimates that there are 20,000 engineers from China working in the valley.

The same for countries like India/Bangalore (Saxenian 2000)

Sources: Forbes (02): http://members.forbes.com/global/2002/0916/058.html & Saxenian (02) http:// people.ischool.berkeley.edu /~anno/ Papers / bangalore_boom.html

most developing countries in Asia , Latin America and Africa experience most of the brain drain and do not experience “brain exchange”. However, the money transferred by skilled emigrants forms a major pillar of the economy.

skilled emigrants seem to follow rather than drive change in their home country

the stronger the economic growth and the more globalised the economy, the greater the rate of return (brain gain/circulation)

government policies, notably science and technology policies , play a role in facilitating return migration, alongside the country’s economic, social and political environment.

Source: Iredale et al. (2003a).

Some findings on the return migration of skilled workers

2. Trade in Educational Services - WTO/GATS-

The World Trade Organisation

A global international organization dealing trade rules between nations

Established in 1995. 151 member countries

The General Agreement on Trade in Services

A set of multilateral rules and commitments covering Governmental measures affecting trade in services

Covers all services but two; governmental authority & air traffic rights

MFN (Most Favoured Nation Treatment): a non-discrimination principle treating one’s trading partners equally.

Goal is to liberalise not to deregulate

Educational Services in GATS

Covers primary, secondary, post-secondary (HE), adult education services, and specialized training

HE: post secondary technical/vocational education services as well as other HE services leading to university degree or equivalent

Less than 50 WTO members have made commitments to liberalise education; around 20 proposals in HE

Only 8 (of 20) countries have published their offers (as of 2003): Australia, Canada, EU, Japan, Liechst., N.Zealand, Norway & USA

HE & GATS: Four Supply Modes Teachers travelling to foreign country to teach Branch or satellite campus; franchising; twinning arrangements Students studying in another country E-education; virtual universities Presence of natural persons Commercial presence Consumption abroad Cross border supply

Overview of Key dates and actions of GATS

GATS: Strategic options for developing countries