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The Oxford Symposium 2014: ‘BRICs and the
Quality gap – how to overcome it’
Rehan A. KhanManaging Director, Abbott India Limited29th August 2014
2
Executive Summary
BRICeconomiesareimportantglobally:
▪BRICs will contribute 37% of global growth in 2011-16, increasing their share of global economic output from 19% to 23%
▪Developed nations critically depend on manpower from BRICs in sectors such as IT
However,thereexistsagapinqualityofhighereducationinBRICs:
▪Only 2 BRIC universities in Top 100 of the 2011-12 Times Higher Education Rankings
▪Gross Enrolment Ratio for higher education in Brazil, India, China <34% while in US >80%
▪Fewer number of articles/1000 inhabitants: <0.2 for BRICs while >1.1 for US and UK
Thisqualitygapcanbeovercomebyusing3keyleverseffectively:
1.Policy:ensure growth across both, ‘elite’ and ‘mass’ educational institutions
2.Ecosystem: build higher educational infrastructure, strengthen linkage with industry and invest in cutting edge research
3.Technology: use technological innovations to improve access to higher education
11
22
33
3
BRICs are important globally
AtAbbottLabs,weseeemergingmarketssuchasBRICs,contributeto40%ofoursales:weexpectthattogrowtonearly50%by2015
BRICsmakeupnearly40%ofworldpopulationwitharisingmiddleclassthathasanincreasedpurchasingpower2
BRICswillcontribute37%ofglobalgrowthin2011-16:thiswillincreasetheirshareofglobaleconomicoutputfrom19%to23%1
1 The BRICs: propping up the global economy, International Business Report 2012, Grant Thornton2 CIA World Fact Book
4
However, there exists a gap in quality of higher education in BRICs
▪ Only2universities(Peking and Tsinghua universities in China) in the top 100 from BRICs in the Times Higher Education Rankings in 2011-12– US had 51 and UK 12 in the top 100 respectively
▪ The Higher education Gross Enrolment Ratio in Brazil, India and China was below30%whileitwas83%fortheUSand57%andforUK2
1 A Norwegian perspective on higher education in the BRICS countries; University of Oslo, 5 Dec 20132 UNESCO Global Education Digest 2010: Comparing Education Statistics Across the World. Data from 2008 (India 2007)
Inscientificpublishing(2011),Indiahasthelowestno.ofarticles/1000inhabitants1
0.120.040.200.18
1.14
1.57
IntermsofRelativecitationindex(2008-10),BRICnationsscorebelow911
9169
5165
137141
5
This quality gap is due to 3 reasons: shortage of quality faculty, lack of adequate funding and insufficient R&D
Shortageofqualityfaculty
5xAveragefacultysalary
$200,000$40,000
3xTotalFaculty 26590
1
Lackofadequatefunding
1000xEndowmentsize $3Billion$3Million
4xStudentfeesperyear $60,000$16,000
Primarysourcesoffunding
Fees,Endowment,Industry
Government
2
IIMAhmedabadHarvardBusinessSchool
GlobalRanking(FT2014)
130
InsufficientResearchandDevelopment
100xSpendonFacultyResearch
~$110Mn<$1Mn
GlobalRankinginResearch(FT2014)
197
3
Note: $1 = INR 50; Source: Google
6
This quality gap can be overcome by using 3 key levers
Ensuregrowthacrossboth,
‘elite’and‘mass’educationalinstitutions
Policy Ecosystem
Technology
Usetechnologicalinnovationstoimproveaccesstohigher
education
Buildhighereducational
infrastructureandinvestincuttingedgeresearch
7
This quality gap can be overcome by using 3 key levers
Ensuregrowthacrossboth,
‘elite’and‘mass’educationalinstitutions
Policy Ecosystem
Technology
Usetechnologicalinnovationstoimproveaccesstohigher
education
Buildhighereducational
infrastructureandinvestincuttingedgeresearch
8
BRICs spend less on higher education publicly and have a wide quality gap between elite and mass institutions
1 World Bank statistics on Higher Education2 University Expansion in a Changing Global Economy: Triumph of the BRICS?; Stanford University Press; Martin Carnoy et al
0.50.60.7
0.9
1.3
2.6
Publicexpenditureonhighereducation1
BRICshavemovedfromafreeorsubsidizedpubliceducationmodeltoahigherfee-based
publicandprivatesystems
% of GDP▪ BRICs have focused on
improving quality in only few elite institutions, resulting in a wide quality gap with mass institutions
– Underlying assumption is that few high quality graduates are sufficient for economic growth
▪ A Stanford research study2 found that BRICs focus on investing in elite colleges whereas majority students attend mass colleges
– In 2009, 85% of total undergraduates in China and 96% in India matriculated from mass institutions
9
In India, this quality gap between elite and mass institutions will have significant adverse impact in the long run
1 Research by Christ University , Bangalore, India and The Indian Express Group2 Toward World-Class Status? The IIT System and IIT Bombay; N Jayaram3 Source: Pitchbook
▪ ~500,000 students appear for ~10,000 seats in the IITs of which 50%2 go abroad for further studies
▪ IIT alumni rank in the top 10 for starting new companies globally
IITsarerenownedglobally
AlumnifoundedcompaniesreceivingVCfundingsince2010
▪ Academically bright students get admitted to subsidized institutions that are of high quality, such as the Indian Institutes of Technology (IITs)
▪ Majority of remaining students join lower quality institutions that have higher fees, especially in technical and professional education
▪ With a severe shortage of quality higher education institutions, India now faces the challenge of educating nearly 30% of its 1.1 billion population
600
universities
35,000
colleges
Indiahasthe3rdlargesteducationsystemintheworldbutmajorityismedium-lowquality
Indiahasthe3rdlargesteducationsystemintheworldbutmajorityismedium-lowquality
MediumorLowquality1
68%universities
73%colleges
HighereducationpolicyneedsbeusedasaleverbyBRICstoensureequitableaccesstoqualityhighereducation
10
This quality gap can be overcome by using 3 key levers
Ensuregrowthacrossboth,
‘elite’and‘mass’educationalinstitutions
Policy Ecosystem
Technology
Usetechnologicalinnovationstoimproveaccesstohigher
education
Buildhighereducational
infrastructureandinvestincuttingedgeresearch
11
BRICs suffer from poor institutional infrastructure in higher education
BRIChighereducationalinfrastructuredoesnotallowimpartingqualityeducation
Highstudentfacultyratios(Indiaat23:1,Brazilat17:1whileUSat13:1)
Disproportionatelyhigh%ofstudentsstudyingScienceandEngineering(>35%inIndiavs.<20%inUS)
Lackofinnovativeteachingdeliverymethodsthatleveragetechnologyandpeer-to-peerlearning
Limitedorlowfinancialsupportinfrastructure
Lackofinternationalfaculty,studentsandpartnerships
Source:1. UNESCO Global Education Digest 2010: Comparing Education Statistics Across the World. Data from 2008 (India 2007)2. UGC; “Humanities or STEM? Looking at the Most Popular Majors for US Students”, Jan 11, 2012, Joshua Wright3. EY Report – 40 million by 2020: Preparing for a new paradigm in Indian Higher Education, 2009
12
‘University-Industry’ ecosystems in developed economies have created game changing innovations
University-Industrysystemshavepushedresearchandinnovation,fuelledbyindustrybackedinvestmentandinfluxofintellectualresourcefromuniversities
▪ ‘Silicon Valley’ is a Technology ecosystem in California
– Stanford, U C Berkeley and Cal Tech have promoted cutting edge research
– Revolutionary technology firms such as Facebook, Google, Yahoo and Cisco were built here
▪ Cambridge, UK has a Biotech ecosystem
– University of Cambridge has promoted rapid scientific research by setting up infrastructure & attracting investors
– Over 100 Biotech and Pharma majors are based in science parks at St John’s College, Trinity College and surrounding areas
13
The Boston-Cambridge area in Massachusetts has a robust Biomedicine ecosystem
Skilledhumancapital
ScientistsDrug developers
Entrepreneurs Students
Universities
Hospitals
LargeBiotech
HealthcareIT
ResearchInstitutions
BigPharma
Biomedicinestartups
Funding
14
BRICs need quality higher educational infrastructure: Indian School of Business (ISB) is one such example in India
▪ ISB started with a vision to be an internationally top-ranked, research-driven, independent management institution, that grooms leaders for India and the world
▪ McKinsey designed the strategy and brought together leading corporate leaders and academicians as founders, faculty and potential recruiters
LeadingcorporatesacrossBanking,ConsultingandTechnologyare
recruiters
Ranked at 30th in
the FinancialTimesGlobalMBARankingsfor2014
1996 2014
▪ Over 100 visiting faculty each year from leading universities across the world
Qualityglobalfaculty
Alumninetwork
Diverse Distinctive FastGrowing
5200Alumni
32Countries
Source: ISB Website
15
Ashoka University is another example of quality higher educational infrastructure that is developing in India
▪ Ashoka University is a not-for-profit that provides Liberal Arts and Sciences education in India
▪ It has been founded by successful Indian entrepreneurs, industrialists and academicians
▪ It has tie-ups with leading global universities such as University of Pennsylvania, University of Michigan and Sciences Po
Academicflexibility: students can pursue multidisciplinary programs such as Computer Science & Entrepreneurship or Economics & Finance
Needs-blind: allows better access to quality higher education for meritorious but financially challenged students
“We are aspiring to be world class and we will do everything to make that happen”. – Co-founder, Dr Pramath Sinha (ex Partner, McKinsey and Founding Dean, ISB)
FellowsfromAshokaUniversity’sFlagshipprogram,YoungIndiaFellowship,havestartedtheirownventures,workinleadingcorporatessuchasMcKinseyandAbbott,andstudyinleadinguniversitiessuchasOxfordandStanford
Source: Ashoka Univ Website
16
This quality gap can be overcome by using 3 key levers
Ensuregrowthacrossboth,
‘elite’and‘mass’educationalinstitutions
Policy Ecosystem
Technology
Usetechnologicalinnovationstoimproveaccesstohigher
education
Buildhighereducational
infrastructureandinvestincuttingedgeresearch
17
Access to quality higher education is a serious issue in BRICs; technology is the only cost effective solution
In BRICs, significant population lives in areas with poor connectivity and finding access to quality higher education is challenging
However, with increasing internet penetration (~30% by 2015), Massive Open Online Courses (MOOCs)
is an innovative way to combat this issue of access
MOOCs allow people an option of quality learning online from professors in leading universities across the world at a very nominal cost
The largest MOOC providers – Coursera, Udemy, Udacity, and EdX – offer free tuition, supplied by universities, to
hundreds of thousands of students at a time
Source: Financial Times, Moocs growth? Head for India, Nov 15, 2013
18
EdX was one of the first MOOC platforms and is governed by MIT and Harvard
▪ Expand access to education for everyone
▪ Enhance teaching and learning on campus and online
▪ Advance teaching and learning through research
edX has 3 goals
Variety
Subjectssuch as Science, Art and Technology,from leading professors worldwide
Learning
Learning through tools, videos and game-like labs such as the ‘3D virtual molecule builder’.
FlexibilityCourseswith flexibleschedules that can be taken on the go
Peer-to-peer
Social learningfrompeers aroundthe world
How it works
Courses and Faculty
courses in many areas of study, including humanities,
math, computer science, physics
200+faculty and staff
teaching courses and discussing topics
online
400+
certificates proudly earned by edX students
100,000+
Source: EdX website
19
MOOCs have become popular in emerging markets such as India
▪ Emerging markets with a young aspirational population and growing internet penetration are a real market for MOOCs
▪ In nations with few high quality colleges, the opportunity to learn from a Harvard professor is immense– For example, unique visitor numbers increased between May and August in 2013 by 5% in India
MajorityofIndianvisitorstoMOOCwebsitesareyoungTotal unique Visitors, By Country, By Age Group, July 2013
100%
80%
20%
60%
40%
0%
India
0.23Million
Age 15-24
Age 25-34
Age 35-44Age 45-54
Age 45-54Age 55-64Age 65+
Age 25-34
Age 35-44
US
0.8Million
Age 13-17Age 18-24
> 150%
101-150%
51-100%
0-50%
<0%
Total Unique Visitors growth
Total=1Million
~50%USvisitorsareunder34,with27%ofitspopulationthatage
~80%Indiavisitorsareunder34,with35%ofitspopulationthatage
Source: The Parthenon Group
20
However, MOOCs need to overcome language and employability barriers to become successful
WithtranslationintoPortugueseorMandarin,MOOCsmarketcouldexplodeinotherBRICs
AlimitingfactorforMOOCsislanguageasMOOCsarecurrentlyprimarilyinEnglishandtherefore,moreaccessibletoIndia’spopulationthanotherBRICs
MOOCplatformswillhavetoexaminestudentsandthatcouldinvolveinvestmentinphysicalcentersinforeignlands
Anotherlimitingfactoristhatemployerscurrentlydon’trecognizeMOOCasarelevantdegreeforemployability
Source: Financial Times, Moocs growth? Head for India, Nov 15, 2013
21
What is the way forward?
ThequalitygapinhighereducationinBRICscanbeimprovedby:
▪ Policy: ensure growth across both, ‘elite’ and ‘mass’ educational institutions
▪ Ecosystem: build higher educational infrastructure, strengthen linkage with industry and invest in cutting edge research
▪ Technology:use technological innovations, such as MOOCs, to improve access to higher education
So,whatcanOxforddotohelp?
CouldOxfordsetupsatellitecampusesinBRICs?11
CouldOxfordpartnerwithBRICuniversitieswhereparteducationiscompletedatOxford?
22
CouldOxfordshareitsleadingfacultywithmoreBRICuniversities?33