POLICY CHANGES, GLOBALISATION

AND THEIR IMPACT ON EDUCATION

- Dr. V. THANIKACHALAMFormer Professor & Head

Center for International AffairsNational Institute of Technical Teachers Training and

Research Chennai – 600 113, INDIA

Post Indian Independence Development 1947-1970:

Development of India through five year plans Growth of Public Sector Companies Protection to Indian Industries Food Production Technical Education Bureaucracy

The Cold war and the Inflation Driven recessions 1970s – 1980s:

Between USSR & USA Growth demand Increased prices for goods

The Gobal Economic Recovery 1983 - 1984:

Stability of Prices Pricing was no longer inflation driven China opened its economy to Foreign Direct

Investment

New Economic Policies of USA & UK - 1984:

Restructuring of capital market Dampened inflationary spikes Latin American and Asian Countries – Emerging

Economy South Korea, Singapore, Hong Kong, Taiwan, Japan

Aggressive Strategies of Emerging Economy (South Korea, Taiwan and Japan):

Exporting high-quality and low cost products to support their growing industrial economy

Supported by artificially soft currency Very low capital cost Free equity stemming from vertically interacted capital market Close financial / industrial relationships.

American Corporate Leaders:

Indulged in panicky calls for Increased protectionism Exchange rate manipulation National industrial planning

US International Strategies:

80% focus on domestic market 20% on foreign market

In the Late 1980s

The balance had shifted to fifty-fifty Focus on exports and trade policy

HONDA MODEL INVESTING OF JAPAN

Investing overseas and placing plant and equipment near to their ultimate customers

Overcomes the shortage of human resources Slip under protectionist barriers Lower manufacturing cost Improved supply chain response time to customers. Utilized the provisions under foreign direct investment

The key features of international strategy in the 1980s Political and trade rules throughout the world

were different on a country-by-country basis Protectionist policies Non-tariff barriers Exchange controls Tax policies Rules governing distribution Advertising Employment Safety and Environment.

US Corporate Strategies: Attacked a heterogeneous global market Country-by-country basis Tried to ferret out opportunities among the

political risk issues and market variations Adopted “Country of the year” Attempted to expand internationally as

cheaply as possible Pursued low-risk, low-reward strategies Trade, employing local sales representatives Strategic joint ventures.

Pricing Strategy:

Business process reengineering Supply chain management Cost reduction Better use of working capital Value analysis

Capital Investment:

Leanness Responded to customer demand faster with

lower levels of inventory Higher degrees of reliability and efficiency.

The Era of Internationalization (1984 – 1990):

Foreign competition focus on inflation Real prices Real costs Domestic market share erosion Internationalization Internet and e-commerce Cost reduction

The Era of Global Convergence (1990 – 1994):

Privatization / Deregulation Lower trade and capital barriers Increased use of computing power Attracting investment. Export processing zones Foreign direct investment (FDI) Opening the stock markets for foreign institutional investors (FII)

The Era of Global Consolidation (1994 – 1996): Increasingly integrated global capital markets

Capital concentrated by sector rather than geography Imperative to be competitive on a global basis Requirement of scale and resources to support global

strategy Consolidation of sectors

Telecom Automotive Consumer products / retail Financial services Health care

The Era of Global Integration (1996 – 1998)

Internet Infinite knowledge and information at virtually no cost

Movement to lower-cost computational and knowledge access system

Advanced global communications geometrically – fiber optics

Transformed the value chains of nearly every industry ( supply chains)

Leading to a transformation of most industries into electronics – based information flows, financial transactions, and marketing

The Era of Acceleration (1998 – 2020)

Markets are becoming more efficient Technology is being applied effectively Consumers should benefit through a vast variety of choices

delivered at highly attractive prices Globalization of educational institutes Net working with international universities

“WISDOM” Globalization of curriculum and instruction Growth of Departments, Programs, Number of

Students per program Stakeholders value Institutional development leading to human

capital E-learning Web based learning Disruptions Innovation – New Degree / Post Graduate degree

programs Knowledge development leading to knowledge

capital

Institutional Development for Excellence in India

Utilization of Wisdom Market driven curriculum for B.E. / M.E. Up to date instructional planning and design Research and development projects supported by AICTE, CSIR, local industries Networking with industries, R&D Labs, and other Resource Institutions Research Publications Inventions Patents.

Follow up by Indian Government Starting more I.I.Ts in various regions Starting more I.I.M.s (Indian Institute of

Management) in various regions Starting more N.I.Ts (National Institute of

Technology) one in each state Starting more IIDM (Indian Institute of

Design and Management) two in the country

Follow up by Indian Government Starting IIIT (Indian Institute of

Information Technology) in selected regions

Starting IIITM ( Indian Institute of Information Technology and Management)

Starting Institutions for Planning and Architecture

Refining the I.I.T Programs Starting the new technology programs Starting the Innovation Centers for

research and design Networking with global universities Planning industry relevant graduate

programs Starting MBA programs

Starting new programs Starting new graduate programs in

economics Starting extension centers Dual degree programs Planning to increase the graduate and

doctoral programs.

State Technical Universities Most of the State governments planned

separate technical universities Affiliated self-financing colleges Started university colleges Started more post graduate and doctoral

programs Undertaking sponsored research

Role of AICTE Providing funds faculty developments

through summer and winter schools Providing funds for modernization of

laboratories Providing funds for conferences and

seminars Accreditation of engineering colleges

Role of Deemed to be Universities (Private) Planning and implementing undergraduate,

post graduate and doctoral programs Undertaking sponsored research

Role of University Grants Commission (UGC) Providing assistanceships for post graduate

and doctoral students Accreditation of self financing universities Starting national universities

IMPACT OF INITIATIVES Supply of human resources for sustaining

the fast expanding industrial needs Sustenance of industrial production Globalization of industrial production Attraction for starting research and product

development centers by MNCs

THANK YOU!