Developing a 3-year Bachelor's to compete globally

5/21/2018 Developing a 3-year Bachelor's to compete globally

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Running head: THE THREE-YEAR BACHELORS DEGREE 1

Comparing a Four-Year Liberal Arts Degree in America with a

Three-Year Bachelor of Arts in Europe: The Competitive Environment of Both Degrees

Michael D. Ballantine

Andrews University


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THE THREE-YEAR BACHELORS DEGREE 2

Comparing a Four-Year Liberal Arts Degree in America with a Three-Year Bachelor of Arts in

Europe: The Competitive Environment of Both Degrees

With the adoption of the Humboltian education model in the United States during the

19th

-century higher education moved away from strictly preparing one for an occupation or

profession (Guruz, 2011). Instead, this movement led to an emphasis on research that permeates

the American educational experience encompassed within the traditional four-year liberal arts

degree. Following World War II, students began to migrate to the United States for their higher

education studies instead of Europe suggesting a preference for the research model of study

embodied in the American system (Guruz, 2011; Wildavsky, 2010). Guruz and Wildavsky

identify that this preference continues to the present time because a significant number of

students studying abroad continue to choose to study in America. However, they indicate that

trends suggest that the United States is losing ground to global competition.

Although the current emphasis on transnational education indicatess a new phenomenon,

Guruz (2011) and Wildavsky (2010) make a strong case that student mobility existed in the past

and was the norm beginning in the renaissance and through the early part of the industrial

revolution. They relate that middle-class student mobility declined because the number of

students began to increase exponentially versus the number of students desirous of a

multicultural experience. Moreover, they highlight that not only is student mobility increasing

but also the mobility of institutions and faculty as well. With improved delivery of distance

education through e-learning or online learning programs, students can pick and choose the

educational provider from not only their regional location but also globally (Guruz, 2011;

Wildavsky, 2010).


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In contrast, Guruz and Wildavsky highlight how the traditional undergraduate program in Europe

and Australia is a three-year program that concentrates on technical and professional skills

relying on a Masters Degreeprogram to balance perceived weaknesses in the three-year

diploma.

To understand better the competitive nature of global education, one must compare the

American four-year bachelor diploma with the European three-year diploma along with their

various strengths and weaknesses. Evaluating the Bologna Process and the European Erasmus

program along with the accreditation process of these degrees provides context to the analysis as

well as the competitive advantages of the anglo-speaking countries. Finally, one must consider

the relative cost differences between the American model and the European one. Although

Guruz (2011) suggests costs are less significant in the decision-making process about where one

studies, anecdotal evidence and enrollment trends suggest otherwise.

The Ubiquitous Bachelors Degree

Most people perceive educational attainment as a path to prosperity; hence, the desire to

attend a college or university stems from this innate desire to improve one's personal wealth

(Wildavsky, 2010). Developed countries offered their citizens pathways to higher education

following World War II. With increased trade, developing countries began accumulating

sufficient wealth to promote higher education for their emerging youth as well. President Bush's

promotion of the No Child Left Behind' represents America's attempt to extend higher education

to all American youth; unfortunately, the American economy lacks the strength to implement

these desires fully. Americas loss is the worlds gain because students from China, India, and

the rest of Asia are on the move (Siddiq, 2013; Guruz, 2011; Wildavsky, 2010).


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Higher education comprises a variety of tertiary education, including vocational

education, technical training, and professional training. A bachelors degree signifies a greater

understanding of a particular discipline and the potential for advancement to management.

Strong demand exists for both general tertiary education and bachelorsdegrees. Moreover,

sufficient demand exists that most developing countries are unable to meet the needs of their

emerging youth (Guruz, 2011; Wildavsky, 2010). Hence, students are going to other countries to

meet their educational needs. However, Guruz and Wildavsky relate that not only are students

going to other countries but institutions are also going to other countries to meet the needs of

these students locally and regionally. Although students travelled far and wide for educational

opportunities throughout history, the movement of institutions represents a fundamental change

in global education (Guruz, 2011). It appears that clothing and restaurant chains are not the only

businesses that America can export.

Guruz (2011) and Wildavsky (2010) identify several trends among higher education

institutions. The first trend is the development of jointly delivered programs referred to as

twinning. Twinning is the practice of delivering a partner institutions curriculum and degrees at

another institutions campus or facility. Higher quality partners may provide100% of the

curriculum locally; whereas, less established partners often deliver programs based on a formula

of two-years locally and two-years abroad (Guruz, 2011; Crowne, 2010; Wildavsky, 2010). In

the case of European programs, this could be two-years locally and one-year abroad. These

programs offer substantial savings to participants because tuition fees are lower in the host

countries as well as reduced living expenses. Further, students build stronger language

comprehension during their first two-years of study enabling to perform well when they arrive on

campus to complete their diplomas. The advantage for the curriculum provider is the ability to


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extend its brand to customers who lacked the resources to participate fully(Crowne, 2010;

Wildavsky, 2010). These types of programs represent examples of educational franchising.

Although less common, many institutions are opening branch or satellite campuses

overseas. Wildavsky (2010) provides numerous examples and descriptions of American

institutions establishing branch campuses throughout the middle-east. He highlights a number of

criticisms emphasizing concerns for freedom of expression and the equal treatment of women.

Clearly local cultural variations will influence the delivery of education at satellite campuses

impeding the ability of schools to provide an equal experience(Wildavksy, 2010). Guruz

(2011) and Wildavsky relate that stakeholders at home institutions suggest that this lack of

equality limits the ability of institutions to provide diplomas from the home institution to avoid

confusion in the marketplace. However, this monocular view of education belies the potential

for satellite campuses to provide a superior educational experience to one provided at the home

institution. Moreover, by extending brand awareness overseas, the value of the diploma

increases for all participants.

The benefits to future students of satellite campuses and twinning programs are self-

evident. These students benefit from lower delivery costs, validated and accredited programs,

and market acceptance of educational qualifications (Wildavsky, 2010). From the customer

point-of-view, these programs represent measurable value. However, like the pharmaceutical

industry, American students as well as students from other developing countries will begin to

question the higher tuition fees that burden them. Christensen and Eyring (2011) maintain that

bachelors degreestudents subsidize graduate programs at Harvard. Likewise, students can

evaluate the difference between tuition at home campuses and tuition at overseas branches as an

inherent subsidy because the diplomas have equal value in the marketplace. Much like the


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manufacturers in America, American higher education institutions will have to cut costs further

to maintain market share to avoid educational tourism as students abandons high-cost programs

at home. This cost-cutting burden will continue to effect negatively teaching staff through

reduced salaries and benefits. These cuts may translate into reduced quality at home campuses

until institutions find an appropriate balance between overseas campuses and home campuses.

The American Four-Year Diploma

In their book, The Innovative University, Christensen and Eyring (2011) describe the

influence that Harvard University maintained over the American higher education industry.

They suggest that the liberal arts degree replaced the traditional degree in classics to prepare

students for graduate studies at Harvard and other universities. According to Christensen and

Eyring, over time other colleges and universities across America replicated the Harvard program

believing that their programs would receive similar market acceptance as Harvard. Christensen

and Eyring express their concerns that attempts to duplicate the Harvard model will lead to a lack

of diversity. Their concerns mirror the concerns expressed by Guruz (2011) in his discussions

about the Indian education system.

The American bachelorsdegree provides students with a variety of coursework,

including cultural studies, science, and history in addition to the student's core-studies. The

belief is that students must have a broad educational background to contextualize proper

knowledge (Christensen & Eyring, 2011). According to Christensen and Eyring, without this

contextualization American students are unprepared for management roles and advanced

research. Although there may exist validity for this argument, this belief stems from the

argument of whether the purpose of higher education is for the development of a person or the

preparation for future careers. This sophomoric argument presupposes that everyone desires


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education for self-improvement when many desire educational qualifications to enhance

employment prospects. Guruz (2011) relates that many American institutions are unwilling to

accept three-year bachelorsdegrees from overseas for graduate studies because these degrees

focus on professional preparation and lack the knowledge contextualization necessary for

advanced degrees. One may also consider that limiting the acceptance of three-year degrees is

an attempt to justify four-year degree programs that produce competitive pressure to reduce

degree requirements in the United States.

Three-Year BachelorsDegrees

The common bachelorsdegree found throughout Europe as well as South Africa,

Australia, and Southeast Asia is a three-year degree program that concentrates on a professional

qualification (Guruz, 2011; Wildavsky, 2010). These degrees prepare one for a variety of

careers, including law, medicine, business, and government. Developing countries with limited

resources cannot justify building higher educational systems that are multi-tiered much like the

United States. Instead, they must concentrate resources that provide basic education to meet

growth requirements in the shortest possible timeframe. Merit exams discriminate who gets to

enroll in specific programs limiting participation to those most likely to succeed (Guruz, 2011).

Students who are unable to enroll in local institutions have the option of studying overseas

provided they can obtain a scholarship, or their family can provide sufficient financial support

(Guruz, 2011; Wildavsky, 2010).

A three-year program offers student's intent on a professional qualification a cost

effective solution to higher education. In contrast, the American four-year program adds

unnecessary costs for students' intent on education for professional opportunities. The additional

cost of one-year of education coupled with an average higher cost of education in America


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(Guruz, 2011) portends a competitive collapse in higher education in the United States. Despite

comparatively higher average tuition rates, Australia appears to be the destination of choice for

students who may have chosen America in the past (Guruz, 2011). Australia offers three-year

accredited bachelorsprograms in an English-speaking environment that many Chinese and

Indian students find desirable (Murray, Hall, Leask, Marginson, & Ziguras, 2011). In

conversations with Vietnamese parents, they relate a desire to school their children in Australia

because of its proximity, perceived safety, and lower costs when compared to America. The

most successful foreign university in Vietnam is RMIT with two satellite campuses located in

Vietnam. Their success further demonstrates the desire for an Australian qualification in

Vietnam and this desire has spillover effects for other Australian institutions. Although America

remains a preferred destination, practicality appears to be winning the day.

The Bologna and Erasmus Process

As part of the economic integration of the European Union (EU), the Bologna Process

exists to integrate national educational policies with the EU (Guruz, 2011; Wildavsky, 2010).

Each member state maintains degree requirements, accreditation policies, tuition structures, and

educational objectives. Guruz and Wildavsky relate that the Bologna Process seeks to align

these policies to allow transnational recognition while maintaining distinctive differences.

Ultimately, each nation will adopt a three-year diploma followed by a two-year Master's diploma

that Europe recognizes (Guruz, 2011; Wildavsky, 2010). With EU acceptance, America must

eventually reciprocate and accept the three-year diploma much like it accepts the three-year

diploma from the United Kingdom. In response, America should adopt either an accelerated

study program or an American three-year diploma to meet the competition.


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To promote further integration, the EU offers the Erasmus program designed to provide

financial support to students desirous of studying in other EU nations (Guruz, 2011; Wildavsky,

2010). Guruz and Wildavsky highlight the benefits of this program because it supports up to a

year of study in another EU member state for each degree allowing both students and faculty to

move between universities throughout Europe. Wildavsky relates that up to 10% of students

avail themselves of this program. Although the initial consequence is a reduction in studies

outside the European Union, overtime students will begin to move beyond the EU into other

areas of the globe once programs become integrated fully within the EU. A mutual recognition

treaty between the EU and the United States would promote the movement of students between

both markets.

Although the Bologna Process appears as a logical progression for higher education in

the EU, many member states face difficulties implementing it (Guruz, 2011). In Italy, weakness

in the national legislature and a weak economic environment limit the flexibility of bureaucrats

to make changes that would involve cutting staff (Carla Salvaterra, personal communication,

June 19, 2014). In contrast, Greece legislation prevents the recognition of undergraduate work

conducted outside Greece necessitating constitutional changes before the implementation of the

Bologna Process (Dimitri Apostilidis, personal communication, June 26, 2014). Unfortunately,

the direness of the Greek economy prevents unity on educational policy. Italy charges tuition;

whereas, Greek education is free. Harmonizing tuition rates is another obvious challenge for the

Bologna Process.

Extending the Bologna Process to the Russian Federation, the Arab League states, and

South Asia offers the opportunity to harmonize educational qualifications and enhance

employment opportunities for European faculty members. Europe suffers from falling birth rate


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limiting the number of future students for European institutions. Currently, Japanese institutions

suffer from declining enrollments because it limits employment for foreigners and declining

birthrates limit the number of enrolling students (Guruz, 2011). Guruz highlights how Singapore

in contrast despite declining birthrates offers attractive immigration policies and focuses on

attracting educational tourists.

The United Kingdom as well as other EU members introduced two-tiered tuition rates.

EU members pay one rate, and nonEU members pay a higher rate (Deardon, Fitzsimons, &

Wyness, 2011). Other countries outside the EU such as Australia and Singapore also offer two-

tiered programs (Guruz, 2011). Wildavsky (2010) describes the European rationale that

education is a human right; hence, denying education would violate ones humanrights.

Unfortunately, declining budgets limit the number of seats available for students desirous of

tertiary education when one does not charge tuition or only charges limited tuition. In practice,

education is a human right for the meritorious or the wealthy. Offering two-tiered pricing

expands opportunities for students from the developing world because they will subsidize the

cost of faculty allowing more seats for EU citizens within the universities (Guruz, 2011).

Finally, extending secular education to neighboring states offers long-term solutions to the

current cultural conflict between the west and Islam.

Australian Success

The Australian Government (2013) reported that overseas enrollments peaked in 2009

with over 600,000 foreign students attending Australian institutions with nearly 560,000

attending in 2011. Moreover, this demonstrates marked improvement vis-a-vis their statistics for

the year 2002, when only 275,000 students attended Australian institutions. Murray et al. (2011)

highlight that falling enrollments reflect globally falling enrollments suggesting that the overseas


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student movement will be soft through 2020. Australian enrollments contrast with US foreign

student enrollment in higher education of over 720,000 in 2011 (IIE, 2011). With only a 10th

of

the population of the United States, Australia plays host to substantially more students by

comparison. Guruz (2011) suggests that Asian students prefer Anglo-education, and they prefer

value (Murray et al., 2011). Murry et al. identify that with a three-year bachelor's degree, lower

average costs per year, and physically safe environment, Australia offers better value than

American institutions. However, employment opportunities after graduation in Australia

engender systemic limitations to further growth (Murry et al., 2011).

Murray et al. (2011) in their analysis highlight the lack of growth in Australian based

transnational programs. They indicate that although enrollments in individual programs are

higher than in the past, the number of individual programs is lower. In a stunning reversal, the

University of New South Wales closed its campus in Singapore after only one semester because

it found itself overpriced in the market (Guruz, 2011; Wildavsky, 2010; Croom, 2010); whereas,

RMITs program in Vietnam dominates the market with nearly 6,000 students (Clark, 2013),

nearly a tenth of Australia's reported transnational students (Murray et al., 2011). Croom (2010)

suggests that the highly competitive market in Singapore prevented the University of New South

Wales from meeting its target; whereas, RMIT faces few competitors of quality in Vietnam.

Establishing branch campuses in the ASEAN emerging market countries offer better prospects

for Australian institutions to extend their brands than in well developed markets such as

Singapore, Hong Kong, Japan, or Korea (Guruz, 2011).

European Higher Education

Historically, European universities were the destination of choice for students until the

advent of World War II (Guruz, 2011; Wildavsky, 2010). Guruz and Wildavsky highlight that


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faced with lower budgets and declining enrollments, European universities have begun to adjust

tuition policies to make themselves more attractive to overseas students. The Erasmus program

improved student mobility, but French and German universities seek to reestablish their presence

in the global markets for students (Guruz, 2011; Wildavsky, 2010). Guruz and Wildavsky

believe that the establishment of English language based diploma programs are essential to

attracting foreign students to continental Europe.

The United Kingdom began a two-tiered tuition program to encourage its institutions to

enroll foreign students. Guruz (2011) suggests that this program is working. Murray et al.

(2011) highlight that the United Kingdom is proving to be a competitive challenger for Australia.

In contrast, Germany abolished tuition fees in most of its institutions portending budget cuts that

may limit the enrollment of foreign students (Hotson, 2014). Over the past several years,

Germany attempted to differentiate its institutions and make them more attractive to foreign

students and faculty (Guruz, 2011). In the past, Turkish, Chinese, and Greek students dominated

foreign students in Germany (Isserstedt & Schnitzer, 2005); whereas, Chinese students

supplanted Turkish students as the primary source country because of low tuition rates and

employment opportunities after graduation (Hairsine, 2012).

In contrast, France suffers from existential angst vis--vis the French language inhibiting

its ability to promote English language based programs (Guruz, 2011). According to Guruz,

most foreign students come from former colonies or other European states. Guruz and

Wildavsky (2010) highlight several schools that established English language based programs

but most French academics prefer to focus on traditional programs taught in French. However,

the Nordic states, Sweden, Norway, and Finland, promote English language based programs


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because few people outside the region speak their native languages. These countries anticipate a

resurgence in interest despite their small populations (Guruz, 2011).

The Deterrence of High Tuition Fees

Logically one may consider high tuition fees as a deterrent to student mobility.

American institutions have the highest average tuition fees, and Australia has the second highest

(Guruz, 2011; Wildavsky, 2010). Guruz and Wildavsky report that despite higher tuition rates,

America continues to attract students in large numbers; although, they note that Americas

attraction is falling as a percentage of total transient foreign students. In the United States, high

average tuition rates reflect increases at private and for-profit institutions. Many state schools

and community colleges remain competitively priced offering value to foreign students.

Table 1

Average Tuition Fees in the United States (New America Foundation, 2013)


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Table 1 provides a clear analysis of the differences in cost between public and private

institutions. Although American education is more expensive on average, there remain

economically attractive options as well for overseas students. A larger deterrent for foreign

students is their inability to work in America after completing their degree. Fischer (2014),

Guruz, Wildavsky, Murray et al. (2011), and Croom (2010) identify this expectation as a key

determinant for foreign students considering a program overseas. Among American nationals,

the high cost of tuition along with the need to incur substantial student loan debt appears to be an

important criteria for choosing educational providers or foregoing higher education (Baum &

Schwartz, 2013). Although Americans have not begun to look overseas for educational bargains

in large numbers (Guruz, 2011; Murray et al., 2011; Wildavsky, 2010), the proliferation of

online programs, e-learning, and regional accreditation programs such as the Bologna Process

may influence future students.

Table 2

Comparing Annual Tuition Fees to Students Receiving Subsidies (Science Guide, 2012)


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Table 2 helps explain why students from America and Australia prefer to study at local

institutions versus studying abroad (Guruz, 2011). With high levels of subsidies, students can

meet most of their educational costs through grants and loans. Other countries like Japan offer

fewer subsidies; hence, Japan's students are more likely to travel abroad (Guruz, 2011).

Siddiq (2013) relates that high tuition fees are not a strong deterrent to Chinese students

because of rising incomes among the middle-class. He highlights that these Chinese students are

less interested in remaining in the United States; hence, internships and work permits are not

necessary. This change in demand explains why Chinese student enrollment in American

institutions is rising; whereas, Indian enrollments are falling (Siddiq, 2013).

Online and E-LearningEducation as a Commodity

The proliferation of online training and distance education globally offers students

opportunities to enroll in overseas institutions without the associated high cost of living in the

developed world. Nagel (2014) reports that 12% of students in the United States attend online

degree programs while another 13% participate in online learning. Tyson (2014) suggests that

the provision of MOOCs courses to recruit overseas students offers significant benefits to

recruitment efforts by American institutions. MOOCs are free online courses that teach specific

skills, but do not count as credit toward degree or diploma programs. Upon completion of an

MOOCs course, successful participants may receive a certificate of completion for a small fee.

Unfortunately, relevant statistics on the enrollment of international students in online courses are

not available. Anecdotal evidence in Vietnam suggests students prefer face-to-face instruction

versus online instruction. However, as online participation rates increase in the United States

and online programs become more standardized, the potential exists for international students to

enroll in them in greater numbers.


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Adapting the American Education Model

Christensen and Eyring (2011) along with Guruz (2011) relate that the resistance to

changing the four-year bachelor program exists among academics. Siddiq (2013) suggests

"Chinese students prefer the US because the universities offer more academic choices. In the

UK, students are expected to choose a major at enrollment and stay focused on it during the

course of the program" (para. 7). In conversations with prospective students in Vietnam, most

students preferred studying a subject related to business. For these students, a professional

bachelors degreeprogram like those offered in the United Kingdom or Australia may be more

suitable.

Guruz (2011) relates that American institutions are hesitant to offer different diplomas at

overseas branches or for twinning programs. The United Kingdom offers a three-year bachelors

degree, and if one completes a fourth-year, one receives honors. American institutions can meet

demands for lower tuition fees among American nationals and the needs of overseas students by

offering a similar program. Unfortunately, the economics work against such a strategy because

only 4% of enrolled students in American institutions are foreigners (UWN Journalists, 2014).

Schools would need to recruit 25% more students both within the states and from without to

offset the potential decrease of up to 25% in enrollments by offering a three-year bachelor's

degree program. A normal business would not view this as economically feasible; whereas a

university may consider it given the current budget pressures that they face and the preference

for improving people's lives versus the need to generate quarterly earnings (Murray et al., 2011).

Christensen and Eyring (2011) believe a three-year diploma is possible if students attend

school during the summer or switch to a four-term year. Although, this does not reduce the

tuition fees, it would reduce the living expenses by 25%. The second consideration is the lack of


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interest in the humanities by American students. Although, Mateos (2013) makes a strong

argument that the interest in the humanities is stable, the current economic crisis coupled with

higher tuition rates suggests that future enrollments will concentrate on professional degrees.

Without the additional humanities courses required in a typical four-year bachelors degree

program, institutions implementing a three-year bachelors degreeprogram would have fewer

students to amortize teaching salaries for these lecturers potentially forcing the elimination of

marginally attended programs (Christensen & Eyring, 2011). Sharma (2011) suggests that

increased enrollments by international students may fill the gap because in non-English language

programs, foreign students prefer the humanities.

American institutions offering online degree programs can adapt easily to a three-year

bachelors degreeprogram because many of their faculty are adjunct or part-time limiting their

exposure to long-term employment contracts or tenure obligations (Mueller, Mandernach, &

Sanderson, 2013). Small private colleges with fewer faculty but a strong international presence

could also benefit from establishing first-mover positions. Although these institutions may

experience an initial dip in revenues during the adjustment from primarily providing four-year

programs to three-year programs, institutions with savvy marketing departments can make up the

losses through aggressive recruitment.

An institution such as Andrews University with about 1,600 undergraduate students and a

high proportion of international students could build upon its current student base to expand

enrollments by offering a program that offers savings of 25% offsetting student concerns about

higher tuition fees. Further, Andrews' program in Vietnam would be more competitive in the

marketplace with RMIT's three-year bachelors degreeprogram enabling their Vietnamese

twinning program in Hanoi to attract additional students. Without a three-year bachelors degree


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program to offer Vietnamese students, the twinning program will continue to receive lackluster

interest in the Vietnamese marketplace. Instead of a 3 + 1program (one year at Andrews)

currently envisioned, a 2 + 1program offers greater opportunities for brand extension.

In contrast to the Andrews program, Pegasus International Unicollege in Vietnam offers a

three-year bachelor's degree program in business in partnership with Edinburgh Napier

University (ENU) in Scotland. ENU offers a 2 + 1program that provides each participant with

a bachelor's degree that is recognized in the United States. Regardless of the relative strengths of

Andrews or ENU, there is a substantial cost difference between the two programs that may or

may not be justified. However, upon completion of the degrees the marketplace will accept both

degrees equally in Vietnam regardless of their cost. The primary difference between the

programs is the level of English required for the final year. Andrews requires a 5.0 on the IELTS

test and the government of the United Kingdom requires a 6.0 on an IELTS test for a visa. By

modifying their program, Andrews would become more competitive on an English requirements

basis justifying its higher tuition fees.

Conclusion

In the near term, demand for American style higher education will continue unabated.

With nearly 900,000 foreign students enrolled in American institutions, America will continue its

domination of the global market (UWN Journalists, 2014); however, America once dominated

international trade as well as global manufacturing and has since given over its leadership to

China and Germany. Much like manufacturing, America cannot rest upon its previous

experience and assume that foreign students or even American students will be willing to

continue to pay substantially higher tuition fees for a comparable education that foreign

providers are willing to provide for less. Adapting the traditional four-year bachelors degree to


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the European professional three-year degree is one change that will meet future competitive

pressures. Establishing overseas campuses in high demand regions is another way to meet these

competitive pressures (Guruz, 2011).


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UWN Journalists. (2014). Record number of foreign students to enrol in 2014. Retrieved from

http://www.universityworldnews.com/article.php?story=2014012916402922

Wildavsky, Ben (2010). The great brain race: How global universities are reshaping the world.

Princeton, NJ: Princeton University Press

Documents

Developing a 3-year Bachelor's to compete globally