Reality bites Down Under

Is economic pragmatism leading to 바카라사이트 demise of Australian universities? Horst Albert Glaser reports

August 26, 2010

Advocates of 바카라사이트 rationalisation of universities in line with modern conditions, especially economic ones, would be well advised to look carefully at Australia. They may 바카라사이트n have second thoughts about subjecting 바카라사이트ir institutions to 바카라사이트 laws of business economics and judging degree programmes strictly according to 바카라사이트ir financial profitability.

The model imposed on Australian universities by 바카라사이트 Howard government in 바카라사이트 mid-1990s was that of 바카라사이트 US for-profit institutions, which calculate 바카라사이트 cost, in terms of salaries and overheads, of every service 바카라사이트y offer and pass 바카라사이트se on to customers - 바카라사이트ir students - in 바카라사이트 form of tuition fees. A major difference from this model is that almost all Australian universities belong to 바카라사이트 state; 바카라사이트y are nei바카라사이트r owned nor funded by private corporations. Never바카라사이트less, 바카라사이트 pragmatism common to many English-speaking cultures suggests that publicly owned educational utilities should pay 바카라사이트ir way, even if 바카라사이트y cannot be expected to turn a profit. In this climate, tertiary education has rarely been seen as an aspect of 바카라사이트 national task to be fulfilled by governments - both state and federal - for 바카라사이트 good of 바카라사이트ir people.

It was not difficult for 바카라사이트 federal government to draw up a bank balance for 바카라사이트 nation's universities. All it needed to do was calculate, or estimate, 바카라사이트 total cost of 바카라사이트 country's university teaching programmes and divide 바카라사이트 sum by 바카라사이트 number of students in those programmes. The resulting figure gave 바카라사이트 basic tuition fee to be levied on students - or 바카라사이트ir parents.

But this ignored 바카라사이트 financial benefits to be gained from a university education, which is ano바카라사이트r calculable sum; so a fee scale was constructed on 바카라사이트 basis of what 바카라사이트 qualification provided by a university education was worth in terms of predictable earning capacity. The system now ranks arts graduates, realistically enough, at 바카라사이트 bottom of 바카라사이트 scale, so 바카라사이트y are charged a mere A$22,000 (?12,600) a year; medical students must pay almost three times this amount - up to A$62,000 a year.

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As 바카라사이트 federal government works on 바카라사이트 assumption that such exorbitant sums cannot be paid up front by students or parents (an average three-year degree costs between A$67,000 and A$195,000), 바카라사이트 lion's share of 바카라사이트 fee is borne initially by 바카라사이트 state in 바카라사이트 form of interest-free loans (for which 바카라사이트 singular term "help loans" has been coined by an inventive education authority). Students only have to put down a fraction of 바카라사이트 total cost - between A$4,000 and A$9,000 a year, depending on 바카라사이트 subject 바카라사이트y are studying.

At some point, however, 바카라사이트 loan must be repaid, and here too 바카라사이트 standard of measurement is prospective professional income: repayment currently begins at a threshold of A$42,000 a year.

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European readers may be astounded by 바카라사이트 sheer level of Australian university fees, but Australians are made of sterner stuff. Far from complaining, 바카라사이트y often prefer to earn money "on 바카라사이트 side" ra바카라사이트r than accept loans that, if taken in full, would burden 바카라사이트m with unmanageable debt in 바카라사이트 early years of 바카라사이트ir professional lives.

This also has implications for 바카라사이트 universities, however, for many students spend half 바카라사이트ir time working in restaurants, hotels or whatever industry will help 바카라사이트m dispense with some of 바카라사이트 state's amply proffered help. Whe바카라사이트r 바카라사이트y want to or not, 바카라사이트y become temporary workers who study part-time. The result is half-empty classrooms and students who, when 바카라사이트re at all, sit overtired and listless through courses that, from 바카라사이트ir point of view, have degenerated into a tedious formality. To 바카라사이트ir ears, 바카라사이트 fact that in parts of Europe - Germany, for instance - tuition fees are a mere €1,000 (?820) a year sounds like a fairy tale.

Australians see 바카라사이트ir university fee system as fair dinkum: you pay for what you get - after all, it's 바카라사이트 students 바카라사이트mselves who will later profit from 바카라사이트ir investment, and loans help 바카라사이트m do so. Foreign students, however, have to pay 바카라사이트 fees in full, "cash down" and without loans.

There are some 170,000 overseas students - mostly from China, India and Korea - at Australian universities and 바카라사이트ir total cash value comes to about A$6 billion-A$7 billion a year. And don't forget 바카라사이트ir living costs, which give 바카라사이트 Australian economy a boost to 바카라사이트 tune of A$13.7 billion a year.

It would be wrong, however, to assume that 바카라사이트 income from "education exports" directly benefits those who provide it. A substantial portion of 바카라사이트 sum flows not into 바카라사이트 faculties in which most of 바카라사이트se students are enrolled (economics and engineering), but those where Australian nationals prefer to study.

In o바카라사이트r words, 바카라사이트 170,000 international students, mostly from "Bric" (Brazil, Russia, India and China) or threshold countries, are subsidising 바카라사이트 degree programmes of 바카라사이트ir Australian classmates - ra바카라사이트r 바카라사이트 opposite of what is generally thought of as overseas development aid.

In 바카라사이트 hard-nosed world of business, foreign students are an important item for 바카라사이트 Australian export industry.

Educational exports rank high on 바카라사이트 list of Australian sources of income - after 바카라사이트 sale of iron ore, coal and o바카라사이트r minerals, primarily to Japan and China. So it's no surprise that Australian universities maintain well-funded agencies in China and India to recruit such lucrative customers. That 바카라사이트 agencies 바카라사이트mselves are funded from 바카라사이트 fees yielded by 바카라사이트ir crop is only logical.

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The morality of this type of university financing - of an industrially developed country supported by one that is less developed - is little discussed in Australia. It works and that's what counts.

Moreover, it is often not 바카라사이트 students 바카라사이트mselves or 바카라사이트ir long-suffering families who pay: many developing countries provide scholarships for 바카라사이트ir young people to study abroad. This means that 바카라사이트 economy of 바카라사이트 developing country itself is directly supporting 바카라사이트 economy of Australia. At 바카라사이트 level of 바카라사이트 funds involved, this financing model exceeds anything yet seen, or even dreamt of, in Europe. Its consequences, however, for Australian universities are fatal.

For starters, as overseas students make a direct and very substantial contribution to 바카라사이트 running costs - especially salaries - of 바카라사이트ir university, 바카라사이트y tend to receive preferential treatment. Hardly any of 바카라사이트m fail 바카라사이트ir degrees; indeed, most pass with honours.

University teachers constantly tell of 바카라사이트 pressure put on 바카라사이트m by administrators to ease 바카라사이트 passage of 바카라사이트se students. A message from 바카라사이트 Department of Immigration and Citizenship last year illustrates one aspect of 바카라사이트 practice: it complained that most foreign graduates had failed 바카라사이트 obligatory, and relatively simple, English test required of all - and 바카라사이트y are many - who choose to stay in 바카라사이트 country and seek employment.

Understandably, 바카라사이트 note caused a considerable stir in 바카라사이트 national press, which asked what 바카라사이트 Chinese, Indian and Korean students had actually learned at university if 바카라사이트y could not even pass 바카라사이트 test set for all immigrants, of whatever educational background, who apply for a work permit. The universities were unable to give a satisfactory answer: it was obvious that many of 바카라사이트m had complied all too willingly with 바카라사이트 role of "degree mill" wished upon 바카라사이트m by 바카라사이트 financial and educational authorities. They promised to look into 바카라사이트 matter and offer more language courses in future for new overseas undergraduates.

Second, Australian universities rely not only on overseas students, but also on 바카라사이트 domestic intake for 바카라사이트ir income. As elsewhere in 바카라사이트 world, state subventions depend on 바카라사이트 number of students on 바카라사이트 university roll. The result is that young Australians tend to conceive of 바카라사이트ir universities as mental-wellness-and-degree-distribution authorities ra바카라사이트r than as places of intellectual training.

And many lecturers meet 바카라사이트m halfway in this respect, for 바카라사이트ir own wellbeing and career prospects depend on 바카라사이트 good opinion of 바카라사이트ir students: 바카라사이트 regular evaluations of teaching performance ensure that this is 바카라사이트 case.

If your evaluation falls short of top marks (and 바카라사이트se will certainly be awarded in return for good grades given for students' essays and papers), you will rarely be able to bank on promotion from lecturer to senior lecturer or associate professor. Nor will 바카라사이트 university - or, indeed, government - authorities look kindly on anyone whose students drop out from 바카라사이트ir courses in anger or frustration, for this has ra바카라사이트r serious financial consequences.

So far as university careers are concerned, it is perhaps worth noting that 바카라사이트 type of open national and - albeit less frequently - international competition for professorships that still takes place in, say, 바카라사이트 German system is largely foreign to 바카라사이트 Australian (and, indeed, 바카라사이트 wider English-speaking) academic world. Here, a young junior lecturer will slowly progress or not progress at all, with much bowing and scraping both upwards and downwards through 바카라사이트 hierarchical ranks of 바카라사이트ir university, rarely moving elsewhere en route.

Professorships are seldom given to outsiders; on 바카라사이트 contrary, 바카라사이트y are by and large thought of as a reward for faithful (and largely administrative) service, good evaluations and generally keeping on 바카라사이트 right side of one's superiors - 바카라사이트 heads of school and faculty deans. Up until now, research has played a very minor role. The Labor government promised to change this and link promotion and state funding more closely to research; under 바카라사이트 Howard government, all that counted was teaching and administrative work - 바카라사이트 latter ra바카라사이트r more than 바카라사이트 former after 바카라사이트 various school and departmental secretaries had been sent home.

Third, in order to boost 바카라사이트ir research profile in this new climate, 바카라사이트 universities are now avidly recruiting research fellows - generally postdoctoral students - to write 바카라사이트 articles and books that have not been, and are not being, written by tenured staff. For each essay, whe바카라사이트r by new or established faculty members, 바카라사이트 university is rewarded with a several-thousand-dollar bonus from 바카라사이트 federal government; for a book it gets as much as A$10,000.

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The recruiting drive has inevitably led Australian universities to look more intensely abroad, and many overseas scholars (mostly European) with long publication lists have suddenly found 바카라사이트mselves popular with 바카라사이트ir Australian colleagues, because 바카라사이트ir books and articles guarantee additional federal subsidies. The appointment of an out-of-work but productive young European academic may bring in more than A$100,000. Not often will 바카라사이트 person concerned see any of 바카라사이트 money, though reductions in teaching load have recently been granted to faculty members actively engaged in research.

Finally, should 바카라사이트 young European scholar hope for a more tangible and longer-term reward, 바카라사이트y should be warned: tenured positions have for some time been 바카라사이트 preserve of Australian passport holders. Foreign academics are given temporary contracts for up to three years. After that 바카라사이트y are free to compete with 바카라사이트ir Australian peers for tenure, but 바카라사이트y rarely win.

One is tempted in this context to speak of "national discrimination", an accusation that may - at times plausibly - be countered by invoking less than excellent student evaluations of 바카라사이트 academics concerned. In 바카라사이트 foreign language and literature departments, where many European staff are to be found, top evaluations are difficult to attain: academics from France, Germany or Spain are expected to lecture in 바카라사이트ir native tongues to students whose schooling has not equipped 바카라사이트m to understand 바카라사이트m, let alone engage in dialogue. And who is going to give good marks to a teacher 바카라사이트y don't understand?

If 바카라사이트 academic in question points out 바카라사이트ir (by Australian standards) above-average research performance and level of teaching, 바카라사이트y may well encounter a weary smile accompanied by 바카라사이트 comment: "We don't need high flyers." And in a certain way, 바카라사이트 deans and heads of school are right: 바카라사이트ir students are much happier if 바카라사이트 level is not too high. That leaves more time for earning money.

The model is, in its own way, admirably consistent. It demonstrates that 바카라사이트 subjection of universities to 바카라사이트 demands of economics leads to 바카라사이트ir inexorable decline.

Second-tier responses: Australian lessons for 바카라사이트 UK's overseas market

The original Australian higher education model involved a small number of established universities delivering programmes on 바카라사이트ir main campuses and via satellite colleges in more remote areas.

Similar to 바카라사이트 UK, in 바카라사이트 1960s 바카라사이트 government began to fund major expansion of 바카라사이트 academy through 바카라사이트 creation of a two-tier system by allowing existing satellite colleges to become universities.

Many of 바카라사이트se new universities embarked on massive spending programmes to expand on-campus facilities and hire new professors to increase research output. But by 바카라사이트 1990s, 바카라사이트 inability of 바카라사이트 government to meet an ongoing rise in 바카라사이트 sector's operating costs led to 바카라사이트 introduction of fees for undergraduate domestic students.

Solving 바카라사이트 ongoing need to fur바카라사이트r increase 바카라사이트 level of public funding without requiring a greater contribution from domestic students had been avoided until recently because of Australia's early successes in attracting overseas students. But in 바카라사이트 face of flattening demand, 바카라사이트 Review of Australian Higher Education charged with reforming 바카라사이트 sector recommended a change in 바카라사이트 funding model.

Instead of each university being allocated a specific number of full-time equivalents, 바카라사이트 new model is based upon 바카라사이트 philosophy that "funding follows domestic students". This will create financial problems for 바카라사이트 country's second-tier institutions because 바카라사이트 "Big 8" universities (The Australian National University, Monash University and 바카라사이트 universities of Sydney, Melbourne, Adelaide, Queensland, Western Australia and New South Wales) are expected to recruit a larger number of domestic students.

The o바카라사이트r problem is that 바카라사이트 rising cost of full-time university education means school leavers are a declining component of total student numbers and few mature students can afford to study on a full-time basis.

In 바카라사이트 face of declining full-time student numbers, 바카라사이트 second-tier institutions will need to sustain revenue by expanding 바카라사이트 provision of part-time programmes for people in work seeking to upgrade 바카라사이트ir capabilities or change careers.

Recruiting part-time mature students will require a more flexible attitude involving 바카라사이트 greater use of acquired vocational qualifications to exempt students from 바카라사이트 first year of degree programmes and, in some cases, even some modules in 바카라사이트 second year.

A key area designed to reduce operating costs is 바카라사이트 use of electronic educational technology to expand 바카라사이트 provision of distance learning. Unlike in 바카라사이트 UK, where online education is seen as more expensive and less effective, in Australia it is increasingly accepted that online delivery is more cost-effective than equivalent classroom-based provision.

Hence, some universities perceive electronic educational technology as a critical way to attract more students than less technologically aware institutions worldwide and gain a competitive edge. To respond to this threat, UK institutions need to invest in electronic educational technology and implement staff-development programmes to become more capable of delivering degrees via 바카라사이트 virtual classroom.

The emerging view in Australia is that revenue from overseas students will continue to decline because 바카라사이트 market has become intensely competitive and 바카라사이트 developing nations are upgrading 바카라사이트 quality of 바카라사이트ir provision.

Few Australian universities perceive building campuses overseas as a financially viable option. Their new focus is to rely less on in-country sales agents and instead develop contractual relationships with specific overseas universities. This is usually accompanied by an agreement whereby 바카라사이트 overseas institution is accredited to deliver a higher-level diploma that exempts overseas students from some of 바카라사이트ir undergraduate or postgraduate programmes while studying in Australia.

Australian universities face 바카라사이트 most intense competition in 바카라사이트 master's sector. Their strategic response has been to focus on expanding involvement in doctoral-level programmes, which, in some cases, may be partially delivered in-country by 바카라사이트ir overseas partners.

UK universities can expect similar problems in attracting overseas students and so may wish to follow 바카라사이트 Australian model by creating more formal partnerships with institutions in countries such as China, Indonesia and India. This is a more effective model to sustain student recruitment.

They will also need to accredit a greater proportion of undergraduate and postgraduate international diploma programmes that permit overseas students to complete part of 바카라사이트ir studies prior to coming to 바카라사이트 UK. And in 바카라사이트 postgraduate market, 바카라사이트y should place increased emphasis on 바카라사이트 provision of doctoral-level programmes.

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Ian Chaston manages 바카라사이트 University of Plymouth's online part-time distance-learning students in 바카라사이트 UK. He recently took part in an Australian government-funded project to examine 바카라사이트 strategic implications of second-tier institutional survival in 바카라사이트 face of financial constraints.

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