Executive Summary
1. Nature and focus of the study
1.1. This is a report of a first-stage project sponsored by UNESCO and the Commonwealth of Learning to map the extent, range, and impact of transnational, private, and for-profit tertiary education provision in a sample of countries. The data, collected from readily available public sources and verified by in-country experts, was first used to create country case studies for Jamaica, Bangladesh, Malaysia, and Bulgaria. A summary report was then produced that drew comparisons across countries in relation to five topics: overviews of each country; national education systems and policies; regulatory frameworks, accreditation, and quality assurance; transnational, private, and for-profit provision; and local perceptions of impact. The summary report also provides a comparative analysis across countries, with reference to the wider literature, and draws out a series of policy implications from the study for governments, institutions, and agencies, both national and international.
1.2. It should be noted that the research was undertaken in a short period of nine months, with limited resources and without the benefit of in-country research. The researchers are aware of gaps in the data caused by these factors, as well as other difficulties of terminology and availability of data, and these have been identified in the report. The focus of the research is also on a topical and volatile policy issue where there is much speculation, often a paucity of data, and a fast-moving agenda at national and international levels as countries adjust to globalisation and associated economic, technological, and social developments.
2. Case Study Findings
2.1. The countries in the sample differed markedly in terms of geographical locale and size, demographic profile, literacy levels, economic profile and stage of development, history and culture, and wealth. Their education systems also differed in terms of levels of primary and secondary schooling, participation rates at these levels, and the quality of such provision. All these factors have an influence on the nature of the tertiary education system, and associated government policy. In the sample countries, the public tertiary education system was generally strong and well regarded.
2.2. Demand for tertiary education is increasing in all the sample countries, but the reasons for this appear to be subtly different. They include the influence of reforms and improvements at lower educational levels, increases in per capita income and a growing middle-class, demographic imperatives combined with success at secondary level, and narrow and inflexible supply in a public system. Demand for distance learning also appears to be increasing, stimulated both by supply, and government policy and investment.
2.3. Most of the sample countries have similar policy goals including: increasing access and widening participation; increasing the economic relevance of tertiary education; improving quality (and governance and management) in public institutions; containing public expenditure on tertiary education or increasing the revenue generated by public institutions; and increasing and enhancing science and technology training. National identity and cohesion were also of importance for some governments. However, the means of achieving these goals differs and not all policy objectives are universal; one country was seeking to control access, not increase it.
2.4. The extent, range, and form of 'new providers and provision' varies widely in the countries in our sample. Context is all-important when seeking to understand the nature of developments in each country and the reasons for them. Certain variables seem to be significant. These include:
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Historical educational traditions and cultural values (e.g., the status of overseas study, the existence or otherwise of an elitist public education system)
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Adequate development of primary and secondary schooling (in terms of access and participation, and appropriate quality to assure a foundation for entry to tertiary education)
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The influence of government policy
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Economic development sufficient to create demand for fee-paying programmes combined with under-supply of sufficient or relevant public education
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The adequacy of student financial support arrangements
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The form, focus and level of 'applied rigour' of the regulatory framework
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The influence of the World Bank's policies and funding.
2.5. The majority, if not all of the countries in our sample, are engaged both in the 'export' and 'import' of students (and staff) and the 'import' of new provision and providers. The main exporters of provision are the US, UK, Canada, Australia, and New Zealand, but other countries are also involved, for example, Germany, Russia, the Ukraine, France, the Netherlands, and India - and Malaysia is actively seeking to become a regional hub for higher education. In this sense, international linkages and trade in higher education is clearly widespread.
2.6. The vast majority of transnational provision appears to be at the postgraduate level and private in nature, while the majority of local private provision is at sub-degree or degree level organised through franchise arrangements with local or international universities. Both types of provision take the form of vocationally focused courses (e.g., Business, Finance, ICT) that can provide a rapid return on investment (ROI) through increased employability and access to local and global employment markets. Most of the provision is 'traditional' in nature, taking place in local universities or other institutions of higher learning and involving a degree of face-to-face contact (even distance learning). However, we uncovered limited information about non-campus based transnational provision (e.g., e- learning) and provision offered by corporate providers, since this information is not generally collected by official agencies.
2.7. All of our sample countries are either developing or seeking to revise their structures for regulation, quality assurance, and university entry. This has happened in parallel to the expansion and diversification of provision, and perhaps as a direct consequence. Currently, the key issues are whether the countries have the capacity to support the development of such structures and ensure their effective implementation.
2.8. The impact of globalisation in tertiary education is evident in our sample countries. They have responded to the challenge presented by the increasingly competitive global knowledge economy by seeking to develop their education and economic sectors in order to compete effectively in a global market. To paraphrase McBurnie, they are not passive recipients of transnational, private, and for-profit education, they are seeking to 'leverage' such provision to aid the development of their tertiary sectors and their national economies (McBurnie, 2001). This is especially the case in Malaysia, which has adapted its national system to accommodate new forms of provision, while also seeking to ensure that national economic and social benefits are attained in the process.
2.9. Assessing the impact, either positive or negative, of transnational, private and for-profit provision is complex, and for a complete picture, requires more data gathering than was possible in this study. However, it is clear that local circumstances are all-important. These include, the stage of development of the country in terms of 'new providers and provision' (as reputations, status and contributions change over time) and the existence, scope and effective functioning of national regulatory and quality assurance regimes. It is also important to note the complementarity and mutual influence between local public and new private provision (both imported and local) in our sample countries; impact flows in both directions.
3. Policy implications
3.1. The national and regional context is key when seeking to understand or determine the appropriate balance and opportunity for benefit from transnational, private, and for-profit provision; one size does not fit all. Governments can influence developments positively through a variety of mechanisms including:
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Current economic policy and economic strength
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Clear policy priorities and national agendas - e.g., national integration, economic development, enhancing quality and standards, promoting international collaboration
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Technological and communications infrastructure - i.e., for Distance Learning
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Investment in and development of secondary education
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Government education expenditure priorities - such as system restructuring programmes, literacy, vocational education, teacher training, expansion of science and technology
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Government influence on national tertiary systems in terms of their quality, flexibility, and relevance to national needs
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A regulatory and quality assurance regime that encompasses all forms of provision and that is widely disseminated and applied
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A regulatory and quality assurance regime that is clear about responsibilities for quality assurance, both local and international
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Financial mechanisms and regulations that match national objectives (e.g.,quotas, bursaries, and clear 'rules of engagement' for all providers)
3.2. In some of the areas described above, institutions and institutional agencies (such as Rectors' conferences) can also influence developments positively, both in collaboration with governments and independently.
3.3. The authors believe it is also important for governments and institutions to keep up-to-date with the changing international context related to transnational education. For example:
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The potential and actual impact of a move from 'collaborative internationalisation' to 'commercial' internationalisation' in several countries
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The global employment market in certain industries - management, business, ICT
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The ways in which 'Borderless' institutions can gain access to students worldwide without the knowledge and control of national bodies - some national agencies monitor educational advertising for this reason
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The impact of closer regional integration (such as the European Union) and its effect on transnational provision and international collaboration
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The increasing commercialisation of quality assurance procedures to gain competitive advantage (e.g.,IPR of emerging QA systems)
3.4. Maintaining government awareness of the position of transnational, private and for-profit provision in the country and region over time requires the collection and analysis of current and trend data to guide decisions about:
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The nature and extent of demand for tertiary level studies - by subject
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The needs of the local economy - what type of students are required?
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Current local supply by type of institutions and mode of delivery
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The operations of providers that operate outside traditional record-keeping channels, i.e., transnational, for-profit companies, and corporate provision (especially about nonaccredited providers)
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Possible models and approaches to managing the development (e.g., Malaysia)
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. Clarity over national interest: e.g., national identity, regional agendas, social cohesion, skill shortages, increasing access, diversifying access to under-represented groups, and attitude towards 'brain drain'.
3.5. The need for national and regional regulatory and quality assurance arrangements appears to be of increasing significance, given the rise of new providers and forms of provision. There is a need for:
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Establishing effective and functioning regulatory frameworks
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Developing and embedding accreditation and/or quality assurance arrangements that are fit for purpose and for the national and regional context
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Providing useful public information to guide students and other key stakeholders
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Supporting quality enhancement through national and international partnerships
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Improving staff:student ratios, financial management and governance in tertiary institutions
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Setting expectations for 'home' quality control and monitoring for foreign providers
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Providing and encouraging suitable financial support arrangements for students
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Providing clarity and transparency regarding national requirements (linked to national needs). E.g., entry criteria, quotas for poor students, limits and/or quotas on foreign student numbers, curriculum content, financial incentives for shortage subjects/skills (such as tourism, IT, etc.)
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Measures to address fraudulent institutions
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Measures to identify 'borderless' institutions
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Establishing arrangements that link quality assurance and accreditation arrangements with those relating to qualifications frameworks and the recognition of credit and qualifications.
3.6. International agencies can also make an important contribution through:
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Working towards international agreement on standard categorisations and terminology to aid data collection and sharing of data
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Collecting and publishing information and data about developments, national systems, quality assurance regimes, etc.
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Supporting international collaboration and information exchange
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Assisting in building capacity, particularly in relation to regulation and quality assurance
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Working with governments and institutional agencies to clarify responsibilities for quality assurance (i.e., the balance between the responsibilities of importers and exporters)
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Assisting governments to identify and collect relevant data
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Supporting research into costs and benefits of TNE and private provision (e.g., impact on local provision, money saved from overseas study, income from overseas students, research output, economic competitiveness, etc.)
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Providing financial aid (e.g., from the World Bank) to support infrastructure development in relation to information and communications technology, student support and regulatory arrangements.