CS I.2 - E. Nigel Harris

E. Nigel Harris, MPhil, MD, DM

Vice Chancellor

The University of the West Indies

The Many Faces of Privatization of Tertiary Education in the

English Speaking Caribbean

Early HEIs in the LAC region Some universities have existed in the Caribbean and Latin

America for centuries, some pre-dating the founding of

Universities in North America.

Santo Domingo 1538

Mexico 1551

Colombia 1580

Venezuela 1721

Cuba 1788

Haiti 1830s

Puerto Rico 1903

The University of the West Indies (Jamaica) 1948

Mona 1948

St. Augustine1962

Cave Hill 1963

Open2008

2010


A Regional University (funded by 15 governments)

Established in 1948 (Jamaica)

Four Campuses

Jamaica (Mona ) – 1948

Trinidad & Tobago (St. Augustine) – 1962

Barbados (Cave Hill) – 1963

Open (Virtual – 16 countries) – 2008

Current Total Enrolment – 47,000 (25% postgraduate)

Total Alumni – approximately 110,000


Leaders of Government -18 Prime Ministers (8 current)

and dozens of Cabinet Ministers

Professionals (Medicine, Law, Engineering, Education,

Accounting etc.)

Private Sector Leaders

1 Nobel Prize winner (Derek Walcott – Literature)

More than 50 Rhodes Scholars

Footnote: A former Vice Chancellor, Sir Arthur Lewis, was also a Nobel

Laureate (Economics)

Tertiary Education in English Speaking

Caribbean Today


National Universities (University of Guyana, University of

Technology, Jamaica etc.)

Private “For-Profit” Universities (internationally owned, catering

to local students)

Private, “For-Profit” Universities (Medicine) catering to United

States and other international students for work in the USA

Community Colleges

Vocational and Technical Colleges

Scholarships for Caribbean Students at International Universities

(Cuba, USA, Canada, Europe, Australia, India, etc.)

Tertiary Education in English Speaking

Caribbean

Massive Growth in enrolment 1990s – present

(e.g. UWI 19,000 (1996) – 47,000 (2012)

Governments unable to meet entire cost of expansion

(CARICOM Governments expand 4 to 8% GDP on

education …. St. Kitts & Nevis – 9.6%)

UWI Enrolment 10 Year Trend

1 – 2002/03 to 2004/05 figures adapted from the publication Statistical booklet publications prepared by Office of Planning.

2 – 2005/06 to 2011/12 figures taken from Banner Student System based on Semester I registration prepared by the Office of the University CIO.

3 – Off-Campus figures were not tallied by Campus from 2003/03 to 2004/05.

Financing Tertiary Education in the

Caribbean

Universities had to broaden their funding base if they were to

accommodate expansion of enrolment and do research

and outreach

Options

Fees Paying programmes

Research

contract (governments provide little funding)

innovation

Philanthropy

Commercial Operations (including Consulting)

Investment

Financing Tertiary Education (Partial

Privatization of Public University)

Introduction of Fees for Students The University of the West Indies – Governments agreed that

students should pay 20% “economic cost” of their education(1996). Economic cost per annum

= Staff + materials + infrastructure maintenance

Number of Students

Approximately US$11,000/annum Student pay approximately US$2,500/annum Student Loan Bureau to provide loans for students who cannot pay

(but in Jamaica, funds insufficient) Some governments (Barbados, Trinidad &Tobago) pay entire

economic cost!


Privatization of Public Universities)

Fees (other than through Government arrangements)

Professional Programmes (Medicine, Law – classes expanded

to attract full fee paying students) e.g. Medicine

USD26,000/year

Evening University, Week-end University (to accommodate

part-time working students)

“Taught” Masters Degrees (Business Administration – 3

Business Schools, several dozen programmes)

Short Professional Development Courses – Certificates,

Diplomas



Research Contract – with International Agencies, governments and

private sector to manage and conduct programmes of

national importance

Projects (Environment, Agriculture/Food Security, Marine

Studies, Climate Change, etc.) funded by multilateral agencies

(e.g. EDULink)

Collaboration with researchers in universities overseas

(US, Canada, UK) with access to funding



Philanthropy Support from alumni, private sector (scholarships, named

chairs, capital programmes)

University working to better organize alumni groups, private

sector and wealthy individuals for gifts.

Culture of philanthropy not developed in the Caribbean, there are few

large corporations and wealthy individuals and few give large gifts.



Commercial Operations Student Housing

Food Outlets

Hostels

Facilities for rent (conference, events, etc.)

Banks and other Business Outlets



University Consulting Company Utilization of academic expertise to advise/conduct research

for government and private sector (for a fee!)

YR02/03

YR03/04

YR04/05

YR05/06

YR06/07

YR07/08

YR08/9

YR09/10

YR10/11

YR11/12

Government Contribution (BDS$) Billions $3,03 $3,03 $2,87 3,30 3,79 4,28 4,82 4,60 $4,79 $4,86

Year-to-Year (%) Increase 1,41% 0,07% -5,40% 15,32% 14,61% 13,10% 12,43% -4,52% 4,13% 1,61%

-10%

-5%

0%

5%

10%

15%

20%

0,00

2,00

4,00

6,00

An

nu

al

(%)

Ch

an

ge i

n G

ov

t. C

on

tb.

BD

S$'(

Billio

ns)

The University of The West Indies Consolidated - Government Contributions

( Year 2002/2003 to Year 2011/2012)

GovernmentContribution (BDS$)Billions

Year-to-Year (%)Increase

YR02/03

YR03/04

YR04/05

YR05/06

YR06/07

YR07/08

YR08/09

YR09/10

YR10/11

YR11/12

Tuition and other student fees (BDS$)Billions

$0,72 $0,83 $0,95 1,03 1,06 1,08 1,22 1,29 $1,38 $1,46

Year-to-Year (%) Increase 9% 16% 14% 9% 3% 2% 13% 5% 7% 6%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

-

0,20

0,40

0,60

0,80

1,00

1,20

1,40

1,60

An

nu

al

(%)

Ch

an

ge i

n T

uit

ion

Fees I

nc.

BD

S$ (

Billio

ns)

The University of The West Indies Consolidated - Tuition and other student fees*

( Year 2002/2003 to Year 20011/2012)

Tuition andother studentfees (BDS$)Billions

Year-to-Year(%) Increase

* Tuition and other student Fee Income represents funds received from tuition and miscellaneous fees

YR02/03

YR03/04

YR04/05

YR05/06

YR06/07

YR07/08

YR 08/9YR

09/10YR

10/11YR

11/12

Special Project Income ($BD) Billion $0,29 $0,36 $0,39 0,47 0,60 0,61 0,55 0,51 $0,57 $0,74

Year-to-Year (%) Increase -1,17% 24,03% 8,50% 18,83% 28,45% 2,46% -10,04% -7,50% 10,52% 29,61%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

-

0,10

0,20

0,30

0,40

0,50

0,60

0,70

0,80

An

nu

al (%

) Ch

an

ge in

Sp

ecia

l Pro

ject In

c.

BD

S$ (

Billio

ns)

The University of The West Indies Consolidated - Special Project Income*

( Year 2002/2003 to Year 2011/2012)

* Special Project Income represents

funds received from international

agencies and other donors for research

and specific programmes

YR02/0

3

YR03/0

4

YR04/0

5

YR05/0

6

YR06/0

7

YR07/0

8

YR08/9

YR09/1

0

YR10/1

1

YR11/1

2

Other Projects Income (BD$)Billion

$0,75 $0,64 $0,70 1,00 1,09 1,16 1,14 1,63 $1,91 $1,77

Year-to-Year (%) Increase 21% -14% 9% 43% 9,04% 6,09% -1,42% 43,26% 16,76% -6,90%

-20%

-10%

0%

10%

20%

30%

40%

50%

-

0,50

1,00

1,50

2,00

2,50

An

nu

al

(%)

Ch

an

ge i

n O

ther

Pro

jects

In

c.

BD

S$(B

illio

ns)

The University of The West Indies Consolidated - Other Projects

Income* ( Year 2002/2003 to Year 2011/2012)

Other ProjectsIncome (BD$)Billion


* Other Projects

Income represents

funds received from

self- financing

programmes, funds

earned by departments

through consultancies

programmes, fee

paying programmes

YR02/0

3

YR03/0

4

YR04/0

5

YR05/0

6

YR06/0

7

YR07/0

8

YR08/9

YR09/1

0

YR10/1

1

YR11/1

2

Commercial Operations Income($J) Billion

$0,28 $0,26 $0,29 0,36 0,39 0,47 0,52 0,56 $0,57 $0,60

Year-to-Year (%) Increase -11% -9% 0% 22% 9,06% 20,53% 10,59% 6,60% 2,89% 4,79%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

-

0,10

0,20

0,30

0,40

0,50

0,60

0,70

An

nu

al

(%)

Ch

an

ge i

n C

om

merc

ial

Op

era

tio

ns I

nc.

BD

S$(B

illio

ns)

The University of The West Indies Consolidated - Commercial Operations

Income* ( Year 2002/2003 to Year 2011/2012)

CommercialOperationsIncome ($J)Billion


* Comm. Ops

Income represents

funds received from

halls of residences,

book shops, other

rented properties

YR02/0

3

YR03/0

4

YR04/0

5

YR05/0

6

YR06/0

7

YR07/0

8

YR08/0

9

YR09/1

0

YR10/1

1

YR11/1

2

Other Income (BDS$) Billions $0,35 $0,28 $0,31 0,34 0,35 0,43 0,31 0,28 $0,23 $0,31

Year-to-Year (%) Increase -5% -20% 12% 10% 2% 23% -27% -12% -16% 35%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

-

0,05

0,10

0,15

0,20

0,25

0,30

0,35

0,40

0,45

0,50

An

nu

al

(%)

Ch

an

ge i

n O

ther

Inco

me

BD

S$(B

illio

ns)

The University of The West Indies Consolidated - Other Income*

( Year 2002/2003 to Year 2011/2012)

Other Income(BDS$) Billions


* Other Income

represents funds

received from gain on

sale of certain equities,

,income representing

value of capital grants

amortised & from rental

of facilities

Financing Tertiary Education (Other

Models)

Private “For-Profit” Universities (USA,

UK universities) Distance Education (On-Line)

Campuses established in the islands

Cater primarily to students in smaller islands that do not have university campuses

Students who cannot gain entry to regional or national universities (see next slide) (good marketing, banks provide student loans)

Also provide postgraduate programmes that are in high demand (Business, Computer, Management, etc.)

Applications have increased

2007/8 2008/9 2009/10 2010/11 2011/12

Applied 22 500 25 166 29 350 28 491 30 518

Institution Acceptance 12 966 15 200 17 347 16 816 19 074

Applicant Acceptance 11 003 13 655 15 443 14 793 16 731

-

5 000

10 000

15 000

20 000

25 000

30 000

35 000

Applications/Institutional Acceptance/Student Acceptance

2007/8 to 20011/12

Financing Tertiary Education (“Off-

Shore” Schools)

Private “For-Profit” Universities catering to students

from the USA (in particular) in Medicine, Vetinerary

Medicine, Nursing

Basic Science courses in Caribbean (2 years), clinical studies

(2 years ) in USA (special arrangements with US hospitals)

e.g. St. George’s University (Grenada), Ross University

(Dominica and St. Kitts) and more than 30 others!

(Heavily marketed, efficiently managed, and some are

hugely profitable)

Financing Tertiary Education (“Off-

shore” Schools)

Win-win for local island governments – universities

(“educational tourism”)

St. George’s now providing degree programmes for local

students – Liberal Arts, Public Health, etc.

Privatization of Tertiary Education in

the English-Speaking Caribbean

Conclusion Massive Expansion of Tertiary Education enrolment has

exceeded ability of Caribbean Island-Nations to entirely

support Tertiary Education.

Public Institutions (example, The University of the West

Indies) have utilized a variety of strategies to diversify

funding

Fees for select undergraduate programmes; full fees for

postgraduate programmes; contract research; commercial

operations; philanthropy; consulting services

Conclusion

“For-Profit” Institutions increasingly numerous (owned by

university and other business entities), providing education

by Distance (On-line) programmes or even establishing

campuses in the Caribbean.

More them 30 “Off-Shore” schools catering primarily to US

citizens who cannot get into their own professional schools.

Conclusion

Privatization - Positives

Competition from “for-profit” institutions can drive

improvement of service delivery, efficiency and marketing of

public institutions

“Off-Shore” Medical Schools contribute 9-11% of GDP of

some island-nations (revenues from student housing and

living expenses, visits from relatives and friends)

Conclusion

Privatization - Negatives Privatization can hinder delivery of broad range of

programmes necessary for national development particularly

in the humanities, arts and basic sciences

Quality can be sacrificed for profit in search of students and

rigour of programmes

No impetus for pursuit of research and outreach to benefit

national, social, economic and cultural development.

CS I.2 - E. Nigel Harris

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