internationalisation, globalisation, and the knowledge economy
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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