Transcript Potential areas of improvement over the next 2

The Oxford Symposium
2014: ‘BRICs and the
Quality gap –
how to overcome it’
Rehan A. Khan
Managing Director, Abbott India Limited
29th August 2014
Executive Summary
BRIC economies are important globally:
▪ 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, there exists a gap in quality of higher education in BRICs:
▪ 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
This quality gap can be overcome by using 3 key levers effectively:
1 Policy: ensure growth across both, ‘elite’ and ‘mass’ educational institutions
1.
2.
2 Ecosystem: build higher educational infrastructure, strengthen linkage with
industry and invest in cutting edge research
3.
3 Technology: use technological innovations to improve access to higher
education
2
BRICs are important globally
BRICs will contribute 37% of global growth in
2011-16: this will increase their share of global
economic output from 19% to 23%1
BRICs make up nearly 40% of world population
with a rising middle class that has an increased
purchasing power2
At Abbott Labs, we see emerging markets such
as BRICs, contribute to 40% of our sales: we
expect that to grow to nearly 50% by 2015
1 The BRICs: propping up the global economy, International Business Report 2012, Grant Thornton
2 CIA World Fact Book
3
However, there exists a gap in quality of higher
education in BRICs
In scientific publishing (2011), India has the
lowest no. of articles/1000 inhabitants1
In terms of Relative citation index (2008-10),
BRIC nations score below 911
141
1.57
137
1.14
91
65
0.18
0.20
0.04
69
51
0.12
▪ Only 2 universities (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 below 30% while it
was 83% for the US and 57% and for UK2
1 A Norwegian perspective on higher education in the BRICS countries; University of Oslo, 5 Dec 2013
2 UNESCO Global Education Digest 2010: Comparing Education Statistics Across the World. Data from 2008 (India 2007)
4
This quality gap is due to 3 reasons: shortage of quality
faculty, lack of adequate funding and insufficient R&D
IIM Ahmedabad
1
Shortage of
quality faculty
Global Ranking
(FT 2014)
30
1
Total Faculty
90
265
3x
$40,000
$200,000
5x
Government
Fees, Endowment,
Industry
$3 Million
$3 Billion
1000x
$16,000
$60,000
4x
97
1
<$1 Mn
~$110 Mn
Average faculty
salary
Primary sources of
funding
2
Lack of
adequate
funding
Endowment size
Student fees per year
3
Insufficient
Research and
Development
Harvard
Business School
Global Ranking in
Research (FT 2014)
Spend on Faculty
Research
Note: $1 = INR 50; Source: Google
100x
5
This quality gap can be overcome by using 3 key levers
Build higher
educational
infrastructure and
invest in cutting
edge research
Ensure growth
across both,
‘elite’ and ‘mass’
educational
institutions
Policy
Ecosystem
Technology
Use technological innovations
to improve access to higher
education
6
This quality gap can be overcome by using 3 key levers
Build higher
educational
infrastructure and
invest in cutting
edge research
Ensure growth
across both,
‘elite’ and ‘mass’
educational
institutions
Policy
Ecosystem
Technology
Use technological innovations
to improve access to higher
education
7
BRICs spend less on higher education publicly and have
a wide quality gap between elite and mass institutions
Public expenditure on higher education1
% of GDP
2.6
▪
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
1.3
0.9
0.7
0.6
▪
0.5
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
BRICs have moved from a free or subsidized
public education model to a higher fee-based
public and private systems
1 World Bank statistics on Higher Education
2 University Expansion in a Changing Global Economy: Triumph of the BRICS?; Stanford University Press; Martin Carnoy et al
8
In India, this quality gap between elite and mass institutions will
have significant adverse impact in the long run
India has the 3rd largest education system in the
world but majority is medium-low quality
600
universities
68%
universities
35,000 73%
colleges
Medium
or Low
quality1
colleges
▪
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
IITs are renowned globally
▪ ~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
Alumni founded companies receiving
VC funding since 2010
Higher education policy needs be used as a lever by BRICs to ensure
equitable access to quality higher education
1 Research by Christ University , Bangalore, India and The Indian Express Group
2 Toward World-Class Status? The IIT System and IIT Bombay; N Jayaram
3 Source: Pitchbook
9
This quality gap can be overcome by using 3 key levers
Build higher
educational
infrastructure and
invest in cutting
edge research
Ensure growth
across both,
‘elite’ and ‘mass’
educational
institutions
Policy
Ecosystem
Technology
Use technological innovations
to improve access to higher
education
10
BRICs suffer from poor institutional infrastructure in higher
education
High student faculty ratios (India at 23:1,
Brazil at 17:1 while US at 13:1)
BRIC higher
educational
infrastructure
does not allow
imparting
quality
education
Disproportionately high % of students
studying Science and Engineering (>35% in
India vs. <20% in US)
Lack of innovative teaching delivery
methods that leverage technology and peerto-peer learning
Limited or low financial support
infrastructure
Lack of international faculty, students and
partnerships
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 Wright
3. EY Report – 40 million by 2020: Preparing for a new paradigm in Indian Higher Education, 2009
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‘University-Industry’ ecosystems in developed economies have
created game changing innovations
University-Industry systems have pushed research and innovation, fuelled by industry
backed investment and influx of intellectual resource from universities
▪ ‘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
12
The Boston-Cambridge area in Massachusetts has a
robust Biomedicine ecosystem
Hospitals
Universities
Funding
Research Institutions
Skilled human capital
Big Pharma
Scientists
Drug developers
Entrepreneurs
Students
Biomedicine startups
Large Biotech
Healthcare IT
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BRICs need quality higher educational infrastructure: Indian
School of Business (ISB) is one such example in India
2014
1996
Quality global faculty
▪ Over 100 visiting faculty each year from
leading universities across the world
▪ ISB started with a vision
to be an internationally
top-ranked, researchdriven, 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
Source: ISB Website
30th
Ranked at
in
the Financial Times
Global MBA Rankings
for 2014
Alumni network
Diverse
Distinctive
Fast Growing

5200
32
Alumni
Countries
Leading corporates
across Banking,
Consulting and
Technology are
recruiters
14
Ashoka University is another example of quality higher
educational infrastructure that is developing in India
▪ Ashoka University is a not-forprofit that provides Liberal Arts
and Sciences education in India
Academic flexibility:
students can pursue
multidisciplinary programs
such as Computer Science
& Entrepreneurship or
Economics & Finance
▪ 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
Needs-blind: allows better
access to quality higher
education for meritorious
but financially challenged
students
Fellows from Ashoka
University’s Flagship
program, Young India
Fellowship, have started
their own ventures, work
in leading corporates such
as McKinsey and Abbott,
and study in leading
universities such as
Oxford and Stanford
“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)
Source: Ashoka Univ Website
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This quality gap can be overcome by using 3 key levers
Build higher
educational
infrastructure and
invest in cutting
edge research
Ensure growth
across both,
‘elite’ and ‘mass’
educational
institutions
Policy
Ecosystem
Technology
Use technological innovations
to improve access to higher
education
16
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
17
EdX was one of the first MOOC platforms and is
governed by MIT and Harvard
How it works
Variety
edX has 3 goals
▪
Expand access to
education for
everyone
▪
Enhance teaching
and learning on
campus and
online
▪
Advance teaching
and learning
through research
Source: EdX website
Subjects
such 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’.
Flexibility
Courses
with
flexible
schedules that
can be taken on
the go
Peer-to-peer
Social
learning
from
peers around
the world
Courses and Faculty
200+
400+
100,000+
courses in many areas of
study, including humanities,
math, computer science,
physics
faculty and staff
teaching courses and
discussing topics
online
certificates
proudly earned
by edX students
18
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
Majority of Indian visitors to MOOC websites are young
Total unique Visitors, By Country, By Age Group, July 2013
~50% US visitors are
under 34, with 27% of
its population that age
100%
80%
60%
40%
~80% India visitors are under 34,
with 35% of its population that age
0.8 Million
Age 65+
Age 55-64
Age 45-54
0.23 Million
Age 45-54
Age 35-44
Age 35-44
Age 25-34
0%
Source: The Parthenon Group
> 150%
51-100%
Age 15-24
Age 18-24
0-50%
<0%
Age 13-17
US
Total Unique
Visitors growth
101-150%
Age 25-34
20%
Total= 1 Million
India
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However, MOOCs need to overcome language and
employability barriers to become successful
A limiting factor for MOOCs is language as
MOOCs are currently primarily in English and
therefore, more accessible to India’s population
than other BRICs
With translation into Portuguese or Mandarin,
MOOCs market could explode in other BRICs
Another limiting factor is that employers
currently don’t recognize MOOC as a relevant
degree for employability
MOOC platforms will have to examine
students and that could involve investment in
physical centers in foreign lands
Source: Financial Times, Moocs growth? Head for India, Nov 15, 2013
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What is the way forward?
The quality gap in higher
education in BRICs can be
improved by :
▪
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, what can Oxford do to help?
1
Could Oxford setup satellite
campuses in BRICs?
2
Could Oxford partner with BRIC
universities where part education is
completed at Oxford?
3
Could Oxford share its leading
faculty with more BRIC universities?
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[email protected]
Rehan Abbas Khan
FirstPenguin1
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