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The Struggle of a Small Nation to Develop a Good University System. What Effect will the Economic Crisis in Iceland have on its Development? University of Latvia 90th Anniversary 26.9.2009 Dr. Ingjaldur Hannibalsson, professor Overview 1 Iceland before and around 1900 Professional education 1911-1939 Professional education 1939-1970 Undergraduate emphasis 1970-1995 Master level education 1996-2006 Research and doctoral education 2006- Overview 2 • New University act in 1997 • New acts on State Universities in 1997 and 1999 • New University act in 2006 • An act on merging UofI and UofEd in 2007 • New act on State Universities in 2008 • Economic crisis Iceland in 1900 • One of Europe’s poorest countries • GNP/capita less than half that of Denmark Iceland in 1900 • 70% employed in agriculture and fisheries • 11.000 of 78.470 inhabitants lived in villages • Turf houses most common until 1920 Sectoral distribution of the working population 1870-2008 Major events in Iceland’s history • 1262 A union with Norway • 1874 A new constitution • 1904 Minister of Icelandic affairs located in Iceland • 1918 Iceland sovereignty • 1944 Republic of Iceland, June 17th • 1994 EEA membership Fight for independence during 19th. century • Jón Sigurdsson, (1811-1879) • 1843 An essay “On trade in Iceland” • 1842 An essay “On education in Iceland” • 1845 Parliamentary petition with emphasis on higher education Higher education in Iceland • • • • 1846 A college for lutheran priests 1876 A college for medical doctors 1908 A college for lawyers 1911 The University of Iceland, the smallest, youngest and least developed institution of higher education in Europe, 45 students and 11 professors The University of Iceland in 1911 • • • • Faculty of Theology, 5 students Faculty of Medicine, 17 students Faculty of Law, 23 students Faculty of Humanities, 0 students • Located on the ground floor of the Parliament building The evulution of higher education • The organization of the democratic collegial university. The University of Iceland 1911-1939 • 1911, 11 professors and 45 students • 1927, 2‰ vs. 1‰, Society required 12 graduates each year, 4 priests, 4 doctors, 3 lawyers and 1 teacher every third year. • 1935, University lottery is started • 1939, 14 professors and 227 students University students in Iceland Icelandic students abroad Total number of Icelandic students University students as % of population Graduates by faculties at U of I Graduates by faculties Theology Medicine 1911-1920 34 32 1921-1930 47 56 1931-1940 32 85 1941-1950 40 72 1951-1960 50 158 1961-1970 28 187 1971-1980 65 381 1981-1990 92 450 Total 388 1.421 Business and Engineering and Social Physical Law Humanities Economics Natural Sciences Dentistry Pharmacology sciences Nursing therapy 22 59 9 75 11 121 47 44 57 4 149 92 95 93 31 2 145 197 128 148 46 17 286 542 419 720 62 62 193 52 15 328 850 800 1.137 68 69 435 395 147 1.185 1.748 1.486 2.155 211 150 628 447 162 Total 88 171 203 385 670 896 2.797 4.771 9.981 University of Education, 1971 • Organization was similar to the University of Iceland, except: • The institution was not organized into faculties and departments • Influence of the staff to choose leaders was much smaller than at the University of Iceland. University of Akureyri 1987 • Organized into faculties and the deans were hired by the rector following a public advertisement • The rector’s position was advertized and the University council made a recommendation to the minister of education who appointed the candidate recommended by the University council. Number of degrees by field Degree structure of graduates The obligations of a university • To the local community • To the scientific community Contribution of UofI to society • • • • • Good infrastructure Quality of primary and secondary schools High life expectancy Low infant mortility High level of entrepreneurship What is a good university? • The one that admits only a very low percentage of applicants which are so qualified that they will graduate no matter what education they receive • The one that accepts every applicant, gets them through the educational programs and provides society with candidates who become useful citizens building up a nation • The value added is higher turning average applicants into useful citizens. Can small universities contribute to the scientific community? • Select students, only admit a low % of applicants • Be active in research • Hire international faculty • Admit international students • Work closely with future employers of graduates The rankings of small universities Institution Shanghai World Rank Times World Rank Number of students in FTE Ecole Normale Super Lyon 180,5 155,0 868 Ecole Normale Super Paris 85,0 26,0 1.132 California Inst Tech 6,0 7,5 2.197 Ecole Polytechnique 155,0 28,0 2.464 Univ Auckland 155,0 50,0 5.087 Tokyo Inst Tech 86,0 90,5 5.096 Rice Univ 71,0 92,0 5.268 Dartmouth Coll 105,0 71,5 5.657 Univ Wageningen 128,5 146,0 5.700 Swiss Fed Inst Tech - Lausanne 128,5 117,5 6.144 Rensselaer Polytechnic Inst 128,5 187,0 6.376 Korea Advanced Inst Sci & Tech 180,5 131,5 6.614 Princeton Univ 8,0 5,5 6.795 Tech Univ Denmark 128,5 129,5 6.947 Univ St Andrews 155,0 76,0 7.128 Eindhoven Univ Tech 180,5 129,5 7.430 Brown Univ 79,0 32,0 7.678 Univ Pittsburgh - Pittsburgh 39,0 77,5 7.866 London Sch Economics 155,0 59,0 7.891 Public financing of HE Organization, University of Iceland Students Faculty Ministry Staff Board Committees Senate President Administration Deans Chairs Faculty Students The university system in 1997 • • • • 3 state universities Collegial management system Little political influence on internal affairs To politicians the universities were like black boxes that absorbed a lot of money • The University of Iceland was too big New University laws, 1997 • Universities can be self-governing institutions which then operate according to a charter. Private entities are allowed to establish universities upon an agreement with the minister of education. • The position of the rector was to be advertised publicly although it was still possible to elect the rector of the University of Iceland. • Representation of the university councils was changed and the minister of education appointed one or two representatives that were not affiliated with that university. Reykjavik University, 1998 • The Chamber of Commerce established the Business College in Reykjavik in 1998 • Soon, the name was changed into the Reykjavik University of Business. • As educational offerings became more diverse the name was changed to Reykavik University. • In 2005 Reykjavik University merged with the Icelandic University of Technology and is now operated as a limited company owned by the employers’ associations. Iceland Academy of the Arts, 1998 • An independent self-governing institution of higher education. • A temporary board appointed by the minister of education • A charter for the Academy was signed by the Federation of Icelandic Artists and the minister of education. Bifröst University, 2000/1990 • The Federation of Icelandic Cooperative Societies ran a high school from 1918, the cooperative School. • 1988 the school became an institution of higher education • 1990 it became a self-governing institution the Cooperative University. • 2000 the name was changed into the Bifröst School of Business and from 2006 its name has been Bifröst University. Private institutions A • The minister of education issued licenses. • The minister negotiated agreements on the financing. • The institutions get a contribution for an agreed upon number of students in different fields of study. • The institutions can charge tuition fees. Private institutions B • Students get loans from the government Student Loan Fund • Students pay back approximately 50% of their loans in real terms. • The private institutions get some research financing from the Government but the Iceland Academy of the Arts does not. Higher education institutions in Iceland Name of HEI Organizational form State owned State owned State owned State owned No. of students 7980 1400 150 300 % State contribution 61 % 9.680 m. ISK 11 % 1.461 m. ISK 1% 260 m. ISK 2% 522 m. ISK University of Iceland University of Akureyri Holar University College Agricultural University of Iceland Reykjavik University Bifröst University Iceland Academy of the Arts 64 % 10 % 2% 3% Private, ltd. Private, self governing Public, self governing 2310 610 400 18 % 5% 3% 14 % 2% 4% 2.173 m. ISK 348 m. ISK 668 m. ISK % Three external reviews in 2004-2005 • Icelandic National Audit Office - Finance, performance, productivity, quality, administration and governance • Ministry of Education - Academic position, research performance • European University Association - Overall assessment, graduate programs, quality New University law 2006 • Universities “may be run as state institutions, non-profit organisations, corporations, companies or as other types of accepted legal form. • Requirements for accreditation • Objectives of quality control • Administration Legislation in 2007 • University of Iceland and the University of Education are to merge in July 2008 • The merger created a university with 14.000 students, 1.200 permanent staff and almost 3.000 part time lecturers. Objectives of the Government • Government wanted the majority of the council to consist of external members chosen without any interference of the universities. • One of the external members was to chair the council. • There are indications that the intention was not only to hire the deans but also the rector and the heads of faculties without an election. Legislation in 2008 • The university as an independent institution of higher education under the ministry • The university has full control over its activities. • The main organizational units of a university are schools and faculties. The major changes in 2008 • The majority of university council members are external. • The rector and other staff and student representatives participate in the selection of some of the external members. • Deans are hired by the rector. Economic crisis • By 2007 the assets and liabilities of Iceland’s financial system were more than fifteen times the GDP of Iceland. • During 2008 the Icelandic currency got weaker and finally in early October 2008 the Icelandic economy collapsed. • The value of the currency (ISK) plummeted. The three major banks, two of which had been created by privatizing state-owned banks a few years earlier were nationalized. Financial account 1990-2008 Economic crisis • The treasury of Iceland has become very indebted after having been almost debt-free. • The IMF and several European Central banks have come to the rescue on harsh conditions. • The income of the Government has plummeted, unemployment has grown and many firms and families are approaching bankruptcy. State financing • HE gets same state contribution in real terms in 2009 as in 2008 but for 5% more students. • HE will have to cut costs by 8,5% annually in 2010, 2011 and 2012. Actions of U of I so far • Increase the teaching load of the oldest full professors. • Reduce overtime payments to staff • Postpone upgrading of computers and other equipment • Reduce financial support to academic staff on sabbatical leave abroad and to reduce substantially foreign travel. At the same time • It was decided to accept applications from students who wanted to start their studies in January. • It was decided to offer summer courses. • Demand for places in 2009-2010 is greater than before. • As a result the number of students 2009-2010 will be 15 per cent higher than in 2008-2009. Possible actions • One system not two as now • Reducing the number of institutions of higher education from 7 • Merging universities to avoid duplication • Closing some of the small institutions • Centralizing quality control, registration, counselling, international activities and doctoral studies Possible actions • Increasing cooperation among institutions of higher education and research institutes • Increasing teaching load of professors • Early retirement of those approaching 70 years of age Recommendations • Merge, close and centralize to reduce costs but with emphasis of maintaining quality • Maintain reginal centers as part of regional policy but not HE policy A merger of U of I and RU • Total contribution to the HE system 83 m euros • Costs have to be cut by 20 m euros 20102012 • 5 m euros can be cut by merging U of I and RU without laying off any faculty • 5 m euros more can be cut by stopping duplications The challenges of a merger • • • • • • One institution is public the other private Different employment rights (public/private) Different cultures Different sizes (3000 vs 14000 students) Domestic competition will cease The new University will have 17000 students compared to 6000 at U of I in 1997 Higher education institutions in Iceland Name of HEI Organizational form State owned State owned State owned State owned No. of students 7980 1400 150 300 % State contribution 61 % 9.680 m. ISK 11 % 1.461 m. ISK 1% 260 m. ISK 2% 522 m. ISK University of Iceland University of Akureyri Holar University College Agricultural University of Iceland Reykjavik University Bifröst University Iceland Academy of the Arts 64 % 10 % 2% 3% Private, ltd. Private, self governing Public, self governing 2310 610 400 18 % 5% 3% 14 % 2% 4% 2.173 m. ISK 348 m. ISK 668 m. ISK % The reformed system of HE following the crisis • University of Iceland with 15000 students • A regional University of the North with 3000 students • A community college in Reykjavik with 2000 students • All state financed Thank you