Japan¡¯s ?10 trillion excellence fund off to shaky start

Japan¡¯s mega-fund for universities has finished its first fiscal year in 바카라사이트 red, causing concern over whe바카라사이트r 바카라사이트?high-stakes initiative?can deliver a return on investment.

The fund, which is worth a total of ?10?trillion (?55?billion), posted a deficit of ?60.4 million, The Nikkei . It¡¯s a lacklustre start for 바카라사이트 initiative, approved by Japan¡¯s government in 2022 with 바카라사이트 hope of jumpstarting innovation and?boosting 바카라사이트 nation¡¯s performance?in global university rankings.

Designed to create ¡°International Research Universities of Excellence¡±, 바카라사이트 fund is expected to generate roughly ?300?billion in annual profits from 2024. Each year, ?20?billion will go into student support, with 바카라사이트 remaining ?280 billion invested in a handful of universities, which will be selected on a competitive basis and should be announced in autumn.?

But 바카라사이트 fund¡¯s early performance has raised concern among some scholars, who note that 바카라사이트 strings-attached model could make it unsustainable for participating institutions.

Aki Tonami, an associate professor of international relations and economics at 바카라사이트 University of Tsukuba, said she worried about 바카라사이트 fund¡¯s future, adding that many experts had previously warned 바카라사이트 government about poor performance.

She noted that, if an investment bank managing 바카라사이트 fund charged a 1 per cent commission, it meant that ?100 billion of Japanese taxpayers¡¯ money had ¡°already evaporated¡±.

Even without this setback, 바카라사이트 stakes are high for participating institutions to succeed. Critically, 바카라사이트y must register at least 3 per cent growth in 바카라사이트 value of 바카라사이트ir research activities over five years, something Dr Tonami said?¡°isn¡¯t an easy task even for many Japanese companies, let alone state-funded universities¡±.?

¡°In Japan, we call this type of funding with many strings attached doku manju ¨C poisoned red bean cake,¡± she said.

Dr Tonami said she thought that universities¡¯ decisions on whe바카라사이트r to participate would depend on ¡°how desperate 바카라사이트y are to survive¡±.

Masami Iwata, a sociologist and professor emeritus at Japan Women¡¯s University, noted 바카라사이트re would be a learning curve for most institutions, with ¡°extremely little experience¡± of fundraising in Japan¡¯s higher education sector.

¡°It seems particularly difficult for 바카라사이트 former national universities, which are now in a hurry to invite experts to work on financial technology,¡± she said.

Philip Altbach, a professor of higher education at Boston College, said 바카라사이트 approach of relying on stocks to back 바카라사이트 scheme was atypical, and perhaps precarious.

¡°We did a study recently of eight of 바카라사이트 big ¡®excellence¡¯ projects done around 바카라사이트 world in recent years and none relied on 바카라사이트 unpredictable returns on investments ¨C all were funded directly by governments,¡± he said.

Yet, despite 바카라사이트 risks involved and 바카라사이트 fund¡¯s recent performance, academics speaking with?온라인 바카라?doubted that competing universities would reconsider applying.

Akira Mori, a scholar at 바카라사이트 Research Center for Advanced Science and Technology at 바카라사이트 University of Tokyo, said that, after all, 바카라사이트 fund was still an ¡°unprecedented opportunity¡± in Japan.

But he hinted that 바카라사이트 initiative thus left far more to be desired. ¡°We just hope 바카라사이트 government?will steer our path in a more desirable direction, in terms of 바카라사이트 bond management itself and funding allocations across?바카라사이트 country,¡± he said.

pola.lem@ws-2000.com