HEM 4230: Internationalisation, Globalisation and the

Knowledge EconomyMaster in HE, Class 2008

Rómulo PinheiroOslo, 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 2008HEM 4230: Internationalisation, Globalisation and the

Knowledge Economy

Rómulo PinheiroOslo, 16 October 2007

Broad topics being covered:

1. Developments in cross-border education (4 areas)

2. Trade in educational services (GATS)

3. 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 TransitionEconomies/Countries

DiversificationIncreasing & Widening

Access

Knowledge Economy

Demographic Change

A.Growing & Diversification HE demand

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

0

50

100

150

200

250

300

350

400

1980

2001

Source: OECD

Patterns of flows

0 %

25 %

50 %

75 %

100 %

Australia (93458)

Japan (59682)

United Kingdom(222203)

United States(475166)

Origins of foreign students (2000)

Oceania

Europe

Asia

South America

North America

Africa

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

Type Main forms Examples Size

1. People

Students/trainees Student mobility - Full study abroad for a foreign degree or qualification- Part of academic partnership for home degree or joint degree

Probably the largest share of crossborder education

Professors/trainers Academic/trainer mobility

- For professional development- As part of an academic partnership- Employment in a foreign university- To teach in a branch institution abroad

An old tradition in the education sector, which should grow given the emphasis on mobility of professionals and internationalisation of education more generally

2. Programmes

Educational programmes

Academic partnershipsE-learning

- Joint course or programme with a foreign institution- E-learning programmes- Selling/franchising a course to a foreign institution

Academic partnerships represent the largest share of these activitiesE-learning and franchising are small but rapidly growing activities

3. Institutions/providers

Foreign campusesForeign investments

- Opening of a foreign campus- Buying (part of) a foreign educational institution- Creation of an educational provider abroad

A trend increasing very quickly from a modest starting point

Sources: Knight (2003b) and OECD

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

Dimensions

Members: From bilateral to multilateral (c.f. Beerkens 2004)

Membership: From open to restricted

Interests: From collective to individual interests of institutions

Activities: From single activities to multiple disciplines & themes

Agency From academic to leadership driven

Intensity From connections to coordination to integration

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 SocietyScott (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)

28,000178,000

10,000

3,000

120,00020,00027,000

2,700

15,000

108,00024,000

1,80027,000

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

i) 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.

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

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

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

Source: Source: Iredale Iredale et al. et al. (2003a).(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

Cross border supply

Consumption abroad

Commercial presence

Presence of natural

persons

E-education; virtual universities

Students studying in another

country

Branch or satellite campus;

franchising; twinning

arrangements

Teachers travelling to foreign country to

teach

Overview of Key dates and actions of GATS

GATS:Strategic options for developing countries

1. Full protectionism

2. Full protectionism with concessions through other government agreements

3. Full liberalism

4. Partial liberalism

5. Partial liberalism tied to concessions from exporting countries

3. Policy Issues raised by Cross Border Education

•Role of national government (sovereignty)•Student access (equity)•Funding•Regulation of cross-border providers •Recognition •Quality assurance•Research and IPR•Internationalisation•Mobility of professionals•Culture and acculturation (social cohesion)•Institutional level issues

Conclusions (1): Global governance?

Existing Constraints:– National sovereignty in education

– Diversity in national systems and circumstances

– The role of NGO’s (universities, students, profession)

– Regulation based on cooperation (trust) instead of compliance (laws)

Conclusions (2): Key issues in Cross Border Education

• Access & equity– Who benefits?

• Financing and costs– Who should pay and how much?

• Quality and recognition– Agencies are nationally-based. Need for broad cooperation.

• Capacity building– Economic benefits (imports/exports), networks, local spill-overs– But, also potential for brain drain!

• Policy coherence– With other policies: Trade/economics, development assistance,

migration, quality assurance, institutional incentives, etc