International Campuses or International Students?

Today’s entry is by Professor Christine Ennew, Pro Vice Chancellor (Internationalisation/Science) and Professor of Marketing, University of Nottingham, UK. Professor Ennew has responsibility for Internationalisation and the Faculty of Science. She was formerly Dean of the Faculty of Social Sciences, Law and Education and is also Professor of Marketing in the Business School.

I’ve run into Professor Ennew in various settings, and have always found her to be one of the most astute practitioner-analysts with respect to the globalization of higher education and research.  This entry stands by itself, but also ties into some of our previous entries in GlobalHigherEd regarding branch campuses and the ‘export‘ of higher education services (to use GATS parlance). Prof. Ennew raises some important points regarding the impact of political decisions regarding inflows of international students and how problematic it is to assume the increased export of education services (via a branch campus) can compensate for reduced imports of foreign students. More importantly, these two forms of ‘internationalization’ at the institutional scale are vastly different, and enable universities (and societies, more broadly) to pursue substantially different objectives. They are linked strategies, but ‘apples and oranges’ with respect to dynamic and outcome.

My thanks to Professor Ennew for permitting me to repost her entry here (it was originally posted on the University of Nottingham’s insightful Knowledge Without Borders blog). Kris Olds

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International Campuses or International Students?

Christine Ennew

For those of us who have long been active in developing educational and research provision outside the UK, it is heartening to learn that David Willets [Minister of State for Universities and Science] is keen to address the barriers to greater engagement by UK universities in overseas ventures. Developments such as international campuses (a major focus of recent discussions in the UK Government’s Department of Business, Innovation and Skills) have the potential to bring genuine benefits to individual institutions and to the sector as a whole. They provide an opportunity to work with talented students and academics who might not otherwise have engaged with UK HE; they offer distinctive mobility opportunities for staff and students; they can provide novel research opportunities and they contribute to the global reputation of UK HE.

But we should be careful not to delude ourselves that this activity is an “export” in any substantive economic sense. One of the distinctive features of an “export” is the generation of a flow of income to the home country in return for the provision of a service to an overseas market. UK HE already has an outstanding record in exporting HE, through the stream of international students who arrive every year to study at UK Universities. These students generate significant export earnings through the fees that they pay (perhaps as much as £8bn annually) and provide an additional economic impact through their spending while studying in the UK. More significantly perhaps, they contribute to the diversity and quality of the student body and in the longer term they help to build positive and enduring relationships between the UK and a range of other countries across the world.

The international record of UK higher education is now seriously threatened by a damaging immigration policy which BIS has been unable to counter. And the consequence for the sector and the economy of a significant drop in internationally mobile students coming to study in the UK could be disastrous – both in terms of a loss of talent and a loss of income. More insidiously the idea that we can simply substitute new income from international campuses for lost income from internationally mobile students suggests that financial motives dominate our interest in internationalisation in higher education. That is not to suggest that export earnings do not matter. They do. But internationally mobile students studying on UK campuses bring so much more for the student experience on campus and to the longer term position of the UK in the world economy and we must not under-estimate these non-financial benefits from international student recruitment.

And, it would be misguided to think that the establishment of campuses overseas (however funded) could be a substitute for international students coming to study in the UK. The experience of the University of Nottingham with its campuses in Malaysia and China has been hugely positive and the benefits of campus development have been considerable. But net income isn’t one of them. International campuses receive their income within the country in which they operate and incur most of their costs in that same location. Financially they are substantially based in their host economy. Almost by definition then, there will be relatively low income flows back to the home country.

Done well and done properly, an international campus will be economically viable, certainly in the medium term and will deliver a range of other non-monetary benefits. But, expecting any resulting revenues to replace the lost income that will materialise if the Home Office ever gets close to its targets for reducing net migration to the UK is both unrealistic and dangerous. In the longer term interests of the UK economy and its world leading Universities, international campuses and internationally mobile students must be seen as complementary initiatives in internationalisation, not alternatives.

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The Hazy View (on Yale-NUS) from Beijing

Greetings from Beijing, where I am attempting to build formal relationships between my department and two key Chinese partners. Apart from the expected relationship building (lubricated by brutal quantities of baijiu the other evening), negotiations, wonderful hospitality, and linked sightseeing (including to the “real Great Wall,” not one tourist in sight!), I’ve genuinely enjoyed the visit and have many hopes for the types of international collaborative education initiatives we’ve been hatching plans for.

At the end of every day I’ve tried catching up on emails, and have found some interesting Google alerts piling up regarding Yale-NUS College. I’ve been able to examine some of them, though others are on websites I am unable to access due to censorship of the internet in China. More broadly, I’ve been unable to examine and use my Twitter account (which is a great source of information via the hashtags), our Department’s Facebook account, any WordPress.com site (including the WordPress.com version of my own blog), and sites like Human Rights Watch’s press release about the latest eruption of debate about academic freedom and human rights on the Yale-NUS College campus. I also can’t access my own personal website because is located on a WordPress.com site.

Given my recent postings on academic freedom in Singapore (see ‘Deterritorializing Academic Freedom: Reflections Inspired by Yale-NUS College (and the London Eye)‘) I’m wanted to weigh in on this latest debate but will hold off until I get the time in South Korea this week to read everything I need to, free of the Chinese censor’s reach. But catching aspects of the Yale-NUS debate from the ground, here in hazy Beijing, reminds me of:

  • The pros and cons of engaging on a programmatic basis (e.g., degrees, human mobility, joint research, training regarding the publication process) versus via forms of “commercial presence” (to use WTO/GATS parlance).
  • The importance of identifying and being clear about “non-negotiables” as detailed arrangements — global assemblages really — are put together and brought to life.
  • The differences that exist between systems, but just as important the problematics associated with constructing binaries (East vs West; Asia vs West; nation vs nation; culture vs culture) where people posit essential qualities and characteristics, including when viewed from the standpoint of the global community of scholars we are a part of.
  • The importance of drawing in regional expertise, including people who understand the political economy of state-society-economy relations, which sets the broad context for the establishment of university to university relations.

Being here also reminds me of how inaccessible (in China) my department’s Facebook page and Twitter feed is, as well as the Facebook page for the Association of American Geographer’s specialty group I am affiliated with. In such a context, should we (as a department, as a specialty group) care? I do know this entry on Inside Higher Ed (which is not censored) can be read in China, but it can’t be when posted on my WordPress.com site. Again, should I care and migrate my own websites to unique URLs not associated with the WordPress platform? Or is this giving in (not that my personal website really matters, but it’s the principle issue I’m thinking about here)? But if we really want to reach our Chinese colleagues and their students, we’re de facto excluding them on some levels using Facebook, Twitter, WordPress.com, etc. Is this an issue worthy of more discussion?

I’m only posting this entry on Inside Higher Ed for now — the mirror version on GlobalHigherEd [this one] will have to wait until I get to Seoul’s airport. And the entry I had wanted to write about Yale-NUS College will have to wait until I get settled in Yeosu for the next four days, free of China’s internet censorship system.

Kris Olds

IBM and collaborators open a new rail innovation centre in Beijing

As someone who loves taking the train, misses the TGV, Eurostar, and Thalys systems (having lived in France last year), and is perplexed why the world’s wealthiest country does not get serious about fast speed rail, this news story caught my eye.

I’ll paste in most of the accompanying text below, from IBM’s Smarter Planet website.  What is interesting, from a GlobalHigherEd perspective, is the nature of the array of institutions that have been brought together to create such space of innovation, and where it is based.

Today IBM opened a worldwide rail innovation center in Beijing, China.  We’re excited because it’s the first time rail companies, universities, government leaders and a wide range of rail experts are gathering to figure out what it will take to bring the best rail systems to every country in the world….

Already members include Tsinghua University, Michigan Technological University, Professor Joseph M. Sussman of MIT, Railinc, RMI, Motorola, Sabre, the California High Speed Rail Authority, and Olivier G. Maurel, CIO of ILOG (an IBM company) and former CIO of SNCF in France.

The kinds of things we’ll work on are advanced data analytics for scheduling and predictive maintenance, cell phone enabled passenger service, wireless sensors on bearings and axles, digital video systems that ensure a clear track ahead and automatically respond to danger — to create rail systems that will support economic vitality, improved quality of life through reduced road congestion, and environmental sustainability.

The idea is when the best minds get together, everyone benefits.  That means better, faster on-time performance, far more efficient scheduling, maximized equipment usage and fewer vehicles congesting cities.

Think about this:  A single freight train on a track can replace 280 trucks on a road, reducing fuel use, congestion and emissions.  And considering every year nine billion gallons of fuel is wasted in traffic congestion we need all the help we can get.

Here’s to breathing easier, relaxing more and getting from city center to city center in the most efficient way possible.

Kris Olds

The UK India Education and Research Initiative (UKIERI): reflections on ‘the complexities of global partnerships in higher education

gore221This entry has been kindly prepared by Tim Gore, Director of The Centre for Indian Business, University of Greenwich, London, UK. Tim has worked closely with educationalists, institutions, companies and governments to improve bilateral and multilateral educational links in Hong Kong, Singapore, United Arab Emirates, Jordan and India over a 23 year period. His most recent role was Director, Education at the British Council in India, where he was responsible for growing the knowledge partnership between India and the UK. Tim also led the establishment of the UK-India Education and Research Initiative (UKIERI) that is profiled in this blog entry.

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Building sustainable global partnerships

Partnership is a word that is often used but difficult to define. Many claim to have meaningful partnerships but in reality I suspect good partnerships are rare. Partnerships between academic institutions across national and cultural frontiers are especially challenging. In the first place, the institutions themselves are complex, multi-dimensional and resistant to being led in the traditional sense. On the other hand, there is language, the subtle nuances of unspoken cultural expectations and distance! UKIERI – the UK India Education and Research Initiative – was established with the aim of rebuilding the lapsed educational relationship between the UK and India. It was to focus on building academic partnerships that were meaningful and sustainable.

India and the UK

India emerged from its colonial period according to some commentators with the newfound national pride as the growth of their economy and their nuclear and space sciences established their national credibility (see Mohan, 2006). Since the economic reforms of 1991, India had opened its doors and witnessed a dizzying growth. But to fuel this growth, education became more important and with it an interest in partnership with amongst others the UK. The UK also recognised the need of knowledge to fuel its growth and set up several institutions such as the Science and Innovation Council to achieve this. India and China were obvious partners with their rapidly growing academic and research capabilities.

ukierilogoThe UK government put the initial funds into UKIERI to start it up closely followed by industry sponsors and later as trust was built, the Indian Government. A number of consultations in India and UK gathered views from the sector about how to achieve the goals. The result was a carefully balanced funding mechanism that encouraged competitive bids across a range of academic collaborations but with similar criteria of impact, relevance, high quality standards and sustainability. The funding was mainly mobility money to break down the difficulty of distance and encourage partners to spend time together. Bids needed to demonstrate that the activities of the partnership were of strategic importance to the institutions involved and that matching funding was available.

The concept of ‘strategic alliances’ has quickly evolved over the last few decades from a position where they were little mentioned in strategy textbooks. Michael Porter, for example, in his work on market forces in the seventies and eighties was more concerned with firms as coherent entities in themselves made up of strategic business units but conceptually sealed from competing firms in the market. Since then, alliances have become crucially important to the extent that a product such as the iPod is the product of a very complex set of strategic relationships where its brand owner, Apple, does not directly produce any part of the iPod or its content.

A variety of writers have looked at alliances from different perspectives. Economic and managerial perspectives see alliances as ways of reducing risk or exerting power and influence in a market. However, social capital and network analyses are far more subtle and see alliances as ways of accessing complex tacit knowledge that is not easy to build or acquire in other ways. Here, the concept of trust plays a big role and we come back to human interaction.

Academic institutions could be concerned with market share and can definitely be concerned about costs. So an analysis such as’ resource based theory’ or ‘transaction cost analysis’ may describe their motivations for partnership well. However, such institutions are complex and exhibit complex goals.

Studies in Norway (see Frølich, 2006) have shown that academic ambition and status is the main driver for researchers seeking overseas links rather than financial or institutional inducements which are merely facilitative. In this analysis, knowledge is power. Knowledge is difficult to acquire and especially those parts of knowledge that are not easily coded and where even the questions are difficult to frame let alone the answers that are sought. Trading in knowledge of this type is done only under conditions of trust.

However, this is only part of the picture. Institutions do have a role. In studies of the success of innovation in the Cambridge innovation cluster, the success was attributed to two sorts of social capital – structural and relational. The individual researchers can easily create the relational capital at conferences and other academic encounters but the structural capital comes by virtue of institutional links such as shared governors on a board. If we can create conditions of both structural and relational capital we can expect a more robust and productive alliance. It is this that UKIERI was trying to achieve.

Buying a stake in the process

bangalore-015UKIERI insisted that institutions buy a stake in the process at the same time as encouraging academics to create their partnerships. Funding was deliberately limited so that the institution had to contribute or find extra funding from a third party. This ensured that the strategic interests of the institution were taken into account. Many universities asked all their staff with an interest in India to attend a working group and prioritise their own bids into UKIERI. At the same time, UKIERI looked for evidence of synergy within the teams and evidence that the partnership would yield more than the sum of the parts. UKIERI arranged a two stage process of peer review to look at the academic strengths followed by a panel review to look holistically at the partnership.

Trust was built at many levels in the Initiative. The Indian Government demonstrated their trust by co-funding the second year after having satisfied themselves that there was genuine mutuality. Many partnerships had to deal with trust issues especially over funding which was channelled through the UK partner in the first year according to UK audit requirements. In a few cases trust broke down and partnerships did not work out but in the overwhelming majority the partnerships are doing well and producing strong research and academic outputs. The Initiative has been favourably reviewed by a number of institutions including the UK’s National Audit Office and a Parliamentary Select Committee.

‘Good’ communication sustains partnerships

In my experience, many partnerships run into difficulties because there is not enough contact between the partners, communications are sparse and often responses are slow or do not happen at all. Universities can give the appearance of being rather fragmented in their approach to partnerships as authority for the various components lies in different parts of the university.

Additionally, very often aspects of the partnership are agreed but then need to be ratified by academic councils or other internal quality processes and this again can cause delays. Very often, the partner is not told about the reason for delays and from the outside it is hard to understand why responses are so slow. This is accentuated when we are dealing across cultures and delays can be interpreted as lack of interest or even a lack of respect. In some cultures, it is not normal to say ‘no’ and a lack of response is the way of communicating lack of interest! All these communication issues erode the trust in the relationship and can be damaging.

I would recommend that each partnership always has a clear lead person who leads on communications and keeps in touch with all the processes on both sides of the partnership. It is important to be transparent about internal mechanisms and how long processes are really likely to take as well as what the processes are. The lead person can also coordinate visits to and fro and ensure that these are fairly regular. If there is a gap, there may be a relevant academic in the area who could take an extra day visiting the partner and keeping the relationship ‘warm’.

We often forget in our efforts to be both effective managers and academics that human relationships are at the core of all our enterprise and that these relationships need nurturing. Without this basic trust effective management of a project and high quality standards will not be enough.

Additional Reading

Frølich, N. (2006) Still academic and national – internationalisation in Norwegian research and higher education, Higher Education, 52 (3), pp. 405-420.

Gore, T. (2008) Global Research Collaboration: Lessons from Practice for Sustainable International Partnerships, October, London: Observatory of Borderless Higher Education.

Heffernan, T. and Poole, D. (2005) In search of the ‘vibe’: creating effective international education partnerships, Higher Education, 50 (2), pp. 223-45.

Mohan, C.R. (2006) India and the balance of power, Foreign Affairs, 85 (4), pp. 17-32.

Muthusamy, S. K. and White, M. A. (2007). An empirical examination of the role of social exchances in alliance performance, Journal of Management Issues, 19 (1), pp. 53-75.

Myint, Y, Vyakarnam, S. et al (2005) The Effect of Social Capital in New Venture Creation: the Cambridge High Technology Cluster.

Tim Gore

Analysing Australia’s global higher ed export industry

The globalization of higher education and research is creating and attracting new players and new analysts. Credit ratings agencies have, for example, started to pay more attention to the fiscal health of universities, while fund managers are seeking to play a role in guiding the investment strategies of university endowments in the United States, and more recently Saudi Arabia.

On this broad theme, and further to our recent entry (‘New foreign student and export income geographies in the UK and Australia‘), the Reserve Bank of Australia released a June 2008 report titled ‘Australia’s Exports of Education Services‘. The Reserve Bank of Australia‘s:

main responsibility is monetary policy. Policy decisions are made by the Reserve Bank Board, with the objective of achieving low and stable inflation over the medium term. Other major roles are maintaining financial system stability and promoting the safety and efficiency of the payments system. The Bank is an active participant in financial markets, manages Australia’s foreign reserves, issues Australian currency notes and serves as banker to the Australian Government. The information provided by the Reserve Bank includes statistics – for example, on interest rates, exchange rates and money and credit growth – and a range of publications on its operations and research.

The scale and economic impact of this new industry is reflected in the Bank’s interest in the topic.

‘Australia’s Exports of Education Services‘ highlights key dimensions of the development of what is now one of Australia’s leading export industries such that it now generates $12.6 billion (2007 figures), and is Australia’s third largest export industry (see the two figures below from the report).

While the report is succinct, and can be downloaded for free here, I would like to flag three key themes from the perspective of the GlobalHigherEd analytical agenda.

First, reading through the report one cannot help but note the mercantilist approach that is infused in the analytical terms and data categories associated with the report, and Australian higher education ‘industry’ discussions more generally. From the dominant Australian perspective, global higher ed is unabashedly an export industry that needed to be created in a regulatory and ideological sense, and then subsequently, nurtured, reshaped over time, and more generally planned with strategic effect. Global higher ed is also situated within a broader array of educational services:

  • Higher Education
  • English Language Intensive Courses for Overseas Students (ELICOS)
  • Vocational Education and Training (VET)
  • Schools
  • Other Awards Sectors (e.g., “bridging courses and studies that do not lead to formal qualifications”)

Data on international student enrollments (1994-2007) using these categories is also available at the Australian Education International website (see the site too for clarification about source data and a key methodological change in 2001).

This strategic cum assertive/aggressive approach to the creation of ‘customers’ means that Australia will also ensure it has a capacity to monitor its primary competitors (especially New Zealand, the United States and the UK), and its emerging competitors (especially the group of countries that make up the European Higher Education Area, as well as Malaysia, Singapore, and China). Competition can occur through enhanced capacity to attract the mobile students who should have come to Australia, enhanced capacity to keep them at ‘home’ (via “import-substitution” policies and programs), or the external profile of weaknesses in the quality of Australia’s higher educational offerings, especially for fee-paying foreign students.

Second, the emergence of China and India as sources of mobile students is abundantly evident in the report (see Graph 5 and Table 4). Recall our 22 June entry, too, which presented data on Asian student numbers from the new Asian Development Bank (2008) report titled Education and Skills: Strategies for Accelerated Development in Asia and the Pacific. In short, Australia has strategically hooked into the highly uneven development wave evident in the ADB report, and shifted from ‘scholarship to dollarship’ (a phrase Katharyne Mitchell has used more generally) with respect to the country’s primary overseas student target. As the Bank’s report puts it:

Until the mid 1980s Australia’s involvement in providing education services to non-residents was directed by the Australian Government’s foreign aid program. Nearly all overseas students studying in Australia over this period were either fully or partly subsidised by the Australian Government, with the number of overseas students capped by an annual quota. Following reviews into Australia’s approach to the education of overseas students, including the 1984 Jackson Report, a new policy was released in 1985. This policy introduced a number of measures, such as allowing universities and other educational institutions to offer places to full fee-paying overseas students, which encouraged the development of Australia’s education exports sector. There were also changes in overseas student visa procedures aimed at helping educational institutions market their courses internationally. As a result of these changes, overseas student numbers increased significantly, and there has been a rise in the proportion of university funding sourced from fee-paying overseas students.

Third, the expansion of such a market, and the creation of significant export earnings, has created dependency upon full fee paying foreign students to bankroll a major component of the budgets of Australian universities (see Graph 4 above).

Thus, when between 15-20% of average annual revenue comes from “fee-paying foreign students”, especially the parents of Asian students, a condition of broad structural dependency exists, all ultimately shouldered upon household decision-making dynamics in places like Kuala Lumpur, Beijing, Mumbai, Seoul and Singapore. And it should also be noted that the income streams being generated from these students are proportionally being reinvested into the enhancement of the faculty base; indeed, as the figure below from a new Association of Universities and Colleges of Canada report (Trends in higher education – Volume 3: Finance) demonstrates, Australia has seen a massive increase in student numbers (local + foreign) but relatively little faculty growth.

Is it any wonder then, that the Brisbane Communiqué Initiative, an initiative that we will profile in early August, was developed in 2006, largely in response to the Bologna Process?

The Brisbane Communiqué, and related initiatives in Australia, remind us that structural dependency upon foreign (Asian) students exists. Given this, Australia cannot help but be concerned about any initiative that might lead to the possible realignment of Pacific Asian (especially China), and South Asian (especially India) higher education systems to the west (aka Europe), versus the south (Australia), when it comes to the mechanisms that enable international student mobility.

Kris Olds