1

GLOBALIZATION AND THE FUTURE OF HIGHER EDUCATION

M. Aman Wirakartakusumah

Universitas AirlanggaSurabaya 27 Maret 2004

GLOBALIZATION AND THE FUTURE OF HIGHER EDUCATION

M. Aman Wirakartakusumah

Universitas AirlanggaSurabaya 27 Maret 2004

2

GLOBALIZATION

• Modern world with myriad phenomena• Greater global economic connectedness• Economic phenomenon-economic integration powered by Neo-liberal politics, electronics, instantaneous communications and multinational corporations• Flows of capital, people, information and culture• Internationalization of commerce, capital and labor• Post industrial and knowledge-based society • Constant creation of new forms of technology

GLOBALIZATION, COMPETITION AND COMPETITIVENESS

• Globalization of commerce, advances in communication technology, access and availability of information

• Growing commercial and social interrelationship• Competition among Institutions, Firms and Nations• Competitiveness: ability to stay in business and achieve

some desired result (profit, price, quality)• National economic performance~national competitiveness• Competitiveness: growth of labor productivity and raising

living standards

4

DOWNSIDES OF GLOBALIZATION

• Potential of creating severe gap between rich and poor countries• Divide the world into centers and peripheries

Centers grow stronger, peripheries marginalized • Global higher education dominated by world class universities in industrialized countries

Norms, values, language, scientific innovation and knowledge products of countries in the center crowd out other ideas and practices

• Globalization in higher education exacerbates dramatic inequalities among the world’s universities

5

“COMMERCIALIZATION” OF KNOWLEDGE

• Knowledge from study and research is seen as a “private good”

• Provision of knowledge = commercial transaction

• Provider public fund or State unable to provide resources for higher education and research

• Universities expected to generate more funding

• Initiation of selling of knowledge products, partnership private sectors, increase in student fees

• Universities sell skill/training, awarding degrees or certificates

6

HIGHER EDUCATION ROLE and POSITION

• Historically international in their academic and intellectual orientation

• Science and rationality of knowledge across the national and territorial limitation

• Asset that contribute to national economic and social well-being

• Equipped labor force with skills, innovation, productivity, enriching quality of life

7

HIGHER EDUCATION ROLE and POSITION•Universities are the instruments of the State, government exert regulatory authority on the university systems, use the university to build up national capacity

• Tensions between the State and global forces, governments and universities: i.e. Bologna convention

• Globalization tends to increase convergence of international and supranational on higher education policy

• Less public funding, more enrollment, more private investment, little transnational standardization and quality assurance

8

QUESTIONS FOR GLOBALIZATION AND HIGHER EDUCATION• Will globalization make universities even more instruments of government to generate comparative advantage ~ nation’s competitiveness?

• Will globalization lead to commercialization and corporatization of universities, increasing in multinational interests?

• Will some universities be state-driven and others globally-driven?

• Will state becoming hands-off enablers, become weaker and more dependent on private and corporate actors?

9

PORTRAITS OF HIGHER EDUCATION

Strengths• Increase of Gross Enrollment Ratio of aged 18-30 to university

• Contribute to national economy, labor force

• Research outputs and outcomes: cited publication, patents, Nobel prize

• Partnership with private sectors: spin-off industry, start-up company

• Professional development of employees

• Knowledge transfer and innovation management

• New approach in meeting student’s demand: new courses, part time study, extension, further education, distance learning

10

PORTRAITS OF HIGHER EDUCATION

Challenges• How to increase investment: USA, France, Germany, the Netherlands ~ 1 % GDP, UK ~ 0.8 %, Japan ~ 0.4 %, Indonesia ~ 0.28 %

• How to recruit, retain and reward the caliber of academic staff

• How to maintain infrastructure for research and teaching

• How to prioritize and focus research at the university: USA confined in 200 from 1600 institutions, China created 10 world-class universities, India concentrated 5 National Institute of Technology

• How to avoid “brain drain”, instead “brain gain”

• How to balance research excellence with teaching excellence

WORLD-CLASS UNIVERSITY RANKING

CountryWorld best

500 universities

CountryAsia best 100 Universities

Amerika Serikat 159 Jepang 36

Inggris 42 Australia 13

Jerman 41 Cina 9

Jepang 36 Korea Selatan 8

Kanada 24 Israel 6

Perancis 22 Cina-Hongkong 7

Australia 13 Cina-Taiwan 3

Belanda 12 India 3

Cina 9 New Zealand 3

Korea Selatan 8 Singapura 2

Cina-Hongkong 5 Turki 2

Cina-Taiwan 5 Indonesia none

India 3

Selandia baru 3

Singapura 2

Turki 2

Indonesia none

GROSS ENROLLMENT RATE (2000)

(Data Indonesia for 2002)

5.257.45

12.8013.89

14.8319.76

23.2629.45

31.9237.52

46.30

57.8459.99

63.0071.6271.69

46.05

47.96

0 10 20 30 40 50 60 70 80

BangladeshChina

IndonesiaBruneiBrazil

MexicoMalaysiaPilipina

ThailandChili

JepangGerm an

ArgentinaInggrisKanada

AustraliaAm erika Serikat

Korea Selatan

SOUTH EAST ASIAN CONTEXT OF HIGHER EDUCATION

Education – developed based on colonial style - many different systems – focusing on specialization rather generalization/diversification– lack of practical skills– lack of entrepreneurship

Faculty resistant to change Lack of resources - human/financial Top down bureaucratic systems

Human Development Index in South East Asia

Rank Country Human Development Index

1990 1995 2000

1 Norway 0.901 0.925 0.942

25 Singapore 0.818 0.857 0.885

32 Brunei Darussalam n.a. n.a. 0.856

59 Malaysia 0.722 0.760 0.782

70 Thailand 0.713 0.749 0.762

77 Philippines 0.716 0.733 0.754

109 Vietnam 0.605 0.649 0.688

110 Indonesia 0.623 0.664 0.684

127 Myanmar n.a. n.a. 0.552

130 Cambodia 0.501 0.531 0.543

143 Lao People's Dem. Rep. 0.404 0.445 0.485

INDICATORS OF R&D EFFORTS AND OUTCOMES

Source: ADB, 2003

  # R&D/million people

# Patents granted

#Hi-tech export/manuf.export

Country 1985-1995 1996 1997

Indonesia 1 20 -

Malaysia 87 12 67

Philippines 1,299 4 12

Singapore 2,728 88 71

Thailand 119 11 43

Rank Multi-disciplinary schools

Overall score

(100%)

1 Kyoto University (Japan) 83.17

5 National University of Singapore

77.96

47 University of Malaya 54.20

48 University of the Philippines 53.79

53 Prince of Songkla University (Thailand)

52.26

61 University of Indonesia 49.89 

Asia’s Best Universities 2000

Source: Asia week.com (2003)

Rank Science and Technology schools Overall score (100%)

1 Korea Adv. Inst. Of Sci. & Tech. 90.79

9 Nanyang Technological Univ. (Singapore)

67.75

21 Institute of Technology Bandung (Indonesia)

54.30

27 King Mongkut’s Inst. Of Tech. Ladkrabang (Thailand)

52.60

30 Technological Univ. of Malaysia 51.46

Asia’s Best Universities 2000

Source: Asia week.com (2003)

Indonesia position on the nation competitiveness rank among the nations Indonesia position on the nation competitiveness rank among the nations above 20 million populations above 20 million populations

INDONESIA Position on NATION COMPETITIVENESS

ParameterScore

(Max. 100)Rank from 30

Nations

Nation competitiveness 13.3 28

o macro economy indicator 28 24

o State policy to increase nation competitiveness

16.9 27

o Innovative and responsibility behaviour, corporate profitability

6.1 30

o Contribution of science, technology and HR to private sectors

9.6 30

TRANSFORMATION OF HIGHER EDUCATION

What are The Challenges?• How to bring up the issues of globalization into the curriculum and teaching practices?• How to put the university program relevant to national and regional interest?• How to improve the organizational health of the university?• How to build entrepreneurial mentality to the students?• How to produce graduate with inclusiveness and multicultural attitudes based on good moral, values and ethics?

EXAMPLES OF HIGHER EDUCATION TRANSFORMATION

– UK • Going global to quench the thirst for knowledge

– AUSTRALIA• Going global and Brand Marketing

– SEMCIT (Latin America, Asia, Africa)• Education and Management of Change in the Tropics

– SINGAPORE• Toward a world class university

– INDONESIA • HELTS

National University of SingaporeEstablished in 1905

Vision: Towards a global knowledge enterprise, building synergies between education, research and entrepreneurship

Mission: Advance knowledge and foster innovation, educate students and nurture talent, in service of country and society

How NUS achieve its goals?

• Building intelligent partnership with

universities worldwide

• No walls culture to promote free flow

of talent and ideas

• Foster an entrepreneurial mindset

NUS high five in 2005

• One in five students will be abroad on students exchanges

• One in five of undergraduates will be an international student

• One in five students will take an entrepreneurship module

• Five NUS overseas colleges will be established in the world’s leading entrepreneurial hubs

24

FUTURE OF HIGHER EDUCATION

VISION

• Recognize and value universities as creator of knowledge• Recognize the role of education to live life to the full and contribute to the society• Acknowledge the institutions differences define its own mission• Build strong and purposeful collaborations• Support the institutions that can compete with the best in the world• Increase gross participation ratio and access • Employ caliber academic staff• Freedom for innovation and entrepreneurship• Strong management and visionary leadership

25

FUTURE OF HIGHER EDUCATION

THEMES FOR FUTURE HIGHER EDUCATION

• Learner-centered

• Entrepreneurship

• Lifelong learning

• Interactive and collaborative

• Diverse

• Intelligent and adaptive

• Learn-grant university as a social contract between university and

society

26

Strategic Issues on Higher Education

•Globalization

•Research and Education

•Mission Differentiation

•Access to knowledge

•University Autonomy

University autonomy

Institutional and capacity buildingUniversity governanceFinancingHuman ResourcesQuality Assurance

International Network and Linkages

Enhancing International collaboration and partnership in the area of Tropical Agriculture

Conducting International training and internship program

Use the network and linkage to facilitate the change process

Challenges for Change

Perception and mind set/old paradigm of faculty members resist the change

Rigid departmental and centers structure (status quo)

Lack of partnership with industry and private sectors

Weak/limited support capacity of central and regional government

Struktur pendanaan PTN (dalam ribuan rupiah) Struktur pendanaan PTN (dalam ribuan rupiah) Struktur pendanaan PTN (dalam ribuan rupiah) Struktur pendanaan PTN (dalam ribuan rupiah)

Pendidikan Tinggi Saat ini PENDANAAN

SUMBER   1999 2000 2001 2002 2003

DIP 1,824,767,226 986,817,133 1,410,851,880 1,889,403,806 2,130,960,812

DIK 1,315,820,648 1,192,197,115 1,978,421,882 2,407,810,991 2,788,828,029

DIKS (SPP) 550,332,443 752,674,756 770,451,921 1,168,604,184 1,444,341,279

DIKS (Lainnya) 42,013,096 61,027,683 62,678,425 233,880,484 318,206,506

4.5 1.4

5.3 1.3

4.3 1.2

3.5 1.1

4.1 2.7

4.4 0.8

4.4 0.7

4.9 1.6

4.5 1.3

4.1 3.1

2.0 1.6

0.8 0.4

4.2 1.7

4.5 0.3

0.0 2.0 4.0 6.0 8.0

Australia*

Canada*

Germ any*

Japan*

Korea*

Mexico

United Kingdom *

United States*

Argentina

Chile

China

Indonesia

Philippines

Thailand

Public

Private

Rasio Pendanaan Pendidikan oleh Sektor Publik dan Masyarakat (potret tahun 1999) Rasio Pendanaan Pendidikan oleh Sektor Publik dan Masyarakat (potret tahun 1999)

Pendidikan Tinggi Saat ini PENDANAAN

Prosentase alokasi dana pemerintah untuk pendidikan tinggi per mahasiswa Prosentase alokasi dana pemerintah untuk pendidikan tinggi per mahasiswa dibandingkan dengan PDB per kapita pada 1997 dibandingkan dengan PDB per kapita pada 1997

Sumber: Bank Dunia, Sumber: Bank Dunia, Development Indicators, Education inputsDevelopment Indicators, Education inputs, 2002, 2002

Pendidikan Tinggi Saat ini PENDANAAN

Negara Prosentase alokasi %

Cina 65.30

India 92.50

Indonesia 12.30

Malaysia 53.60

Filipina 14.80

Sri Lanka 64.00

Vietnam 86.10

Pendidikan Tinggi Saat ini PENDANAAN

Jumlah mahasiswa PTN pada tahun 2003 880.000 Mhs

Belanja rutin pendidikan tinggi (total spending) sebesar

Rp. 4,6 Triliun

Anggaran biaya satuan pendidikan tinggi nasional rata-rata untuk mahasiswa/tahun.

Rp. 5,18 Juta

Dari jumlah tersebut biaya yang dipikul pemerintah (public spending) untuk mahasiswa/tahun

Rp. 3,17 Juta

NEGARA BIAYA/Mhs/Thn EQ.RUPIAH

Amerika dan Canada US$ 20,000 Rp. 170 juta

Jepang dan Inggris US$ 10,000 Rp. 85 juta

Perancis dan Itali US$ 6,000-7,000 Rp 51- 60 juta

Malaysia Rp. 29 - 111 juta

Singapura *) Rp. 90 - 400 juta

Pendidikan Tinggi Saat ini PENDANAAN

- Studi Biro Keuangan Departemen Pendidikan Nasional, Desember 2002- *) www.singapore.edu.gov.sg

Global Value Chains “Internationalization of a manufacturing process in

which several countries participate in different stages of the manufacture of a specific good”

• The most efficient and the lowest cost• Countries more interdependent on each other• Access technological knowledge, improve product

innovation skills• Facilitated rapid industrial growth and permitted the

assimilation of technology

Effect of Global Value Chains

•More knowledge and technology intensive

•More demand on creative and innovative workers

•Need respond from education and training

institutions

•Education contributes to person’s quality of life and

productivity

Public expenditure per student/GDP per capita (%)

Gross enrollment ratio (GER)

1980 1997 1985 2002

China 246.2 65.3 2.9 13.2 (2001)

India 83.3 92.5 6.0 6.5 (1995)

Indonesia 25 (1985) 12.3 8.5 12.8

Thailand 59.7 25.4 18.1 31.92

Malaysia 140.6 53.6 5.8 28.26

Philippines 13.7 14.8 n.a. 29.4 (1999)

Vietnam n.a. 86.1 2.3 9.66 (2001)

Public Expenditure in HE and enrollment for selected Asian countries (DGHE, Indonesia, 2003)

The Challenge for Higher EducationThe Challenge for Higher Education

Implementing good agricultural practices in the academic programs

Application of holistic approach in integrated farming system

Integrated pest management and biological control

Shifting from fishing to restocking Reforestation and community participation Improvement of agro-industry practices

Summary of IPB case Good practices in agricultural education should

use the student centered learning approach Changing curriculum of a traditional university

should recognize the existing disciplines Needs involvement of instructors and professors Requires continuity and consistency of strong

leadership and commitment Needs regional and international networking