1. The Many Faces of Privatization of Tertiary Education in the
English Speaking Caribbean
E. Nigel Harris, MPhil, MD, DM
Vice Chancellor
The University of the West Indies
2.
3. 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
4. 2010
Open2008
Cave Hill 1963
Mona 1948
St. Augustine1962
5. The University of the West Indies
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
6. The University of the West Indies
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 formerVice Chancellor, Sir Arthur Lewis, was also a Nobel
Laureate (Economics)
7. Tertiary Education in English Speaking
Caribbean Today
The University of the West Indies
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.)
8. 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%)
9. 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.
10. 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
11. 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!
12. Financing Tertiary Education (Partial
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
13. Financing Tertiary Education (Partial
Privatization of Public University)
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
14. Financing Tertiary Education (Partial
Privatization of Public University)
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.
15. Financing Tertiary Education (Partial
Privatization of Public University)
Commercial Operations
Student Housing
Food Outlets
Hostels
Facilities for rent (conference, events, etc.)
Banks and other Business Outlets
16. Financing Tertiary Education (Partial
Privatization of Public University)
University Consulting Company
Utilization of academic expertise to advise/conduct research
for government and private sector (for a fee!)
17. The University of The West Indies Government
Contribution (BDS$)
Consolidated - Government Contributions Billions
( Year 2002/2003 to Year 2011/2012)
Year-to-Year (%)
Increase
6,00 20%
15%
Annual (%) Change in Govt. Contb.
4,00 10%
BDS$'(Billions)
5%
2,00 0%
-5%
0,00 -10%
YR YR YR YR YR YR YR YR YR YR
02/ 03/ 04/ 05/ 06/ 07/ 08/ 09/ 10/ 11/
03 04 05 06 07 08 9 10 11 12
Government Contribution (BDS$) Billions $3,03 $3,03 $2,87 3,30 3,79 4,28 4,82 4,60 $4,79 $4,86
Year-to-Year (%) Increase 1,41% 0,07% -5,40% 15,32% 14,61% 13,10% 12,43% -4,52% 4,13% 1,61%
18. The University of The West Indies Tuition and
other student
Consolidated - Tuition and other student fees* fees (BDS$)
( Year 2002/2003 to Year 20011/2012) Billions
Year-to-Year
(%) Increase
1,60 18%
Annual (%) Change in Tuition Fees Inc.
1,40 16%
14%
1,20
BDS$ (Billions)
12%
1,00
10%
0,80
8%
0,60
6%
0,40
4%
0,20 2%
- 0%
YR YR YR YR YR YR YR YR YR YR
02/ 03/ 04/ 05/ 06/ 07/ 08/ 09/ 10/ 11/
03 04 05 06 07 08 09 10 11 12 * Tuition and other
Tuition and other student fees (BDS$) student Fee Income
$0,72 $0,83 $0,95 1,03 1,06 1,08 1,22 1,29 $1,38 $1,46 represents funds
Billions received from tuition and
Year-to-Year (%) Increase 9% 16% 14% 9% 3% 2% 13% 5% 7% 6% miscellaneous fees
19. The University of The West Indies
Consolidated - Special Project Income*
( Year 2002/2003 to Year 2011/2012)
0,80 35%
30%
0,70
Annual (%) Change in Special Project Inc.
25%
0,60
20%
BDS$ (Billions)
0,50
15%
0,40 10%
5%
0,30
0%
0,20
* Special Project Income represents -5%
funds received from international
agencies and other donors for research
and specific programmes 0,10
-10%
- -15%
YR YR YR YR YR YR YR YR YR
YR 08/9
02/03 03/04 04/05 05/06 06/07 07/08 09/10 10/11 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 $0,74
Year-to-Year (%) Increase -1,17% 24,03% 8,50% 18,83% 28,45% 2,46% -10,04% -7,50% 10,52% 29,61%
20. The University of The West Indies
Consolidated - Other Projects Other Projects
Income (BD$)
Income* Billion
( Year 2002/2003 to Year 2011/2012)
Year-to-Year (%)
Increase
2,50 50%
40%
Annual (%) Change in Other Projects Inc.
2,00
30%
BDS$(Billions)
1,50
20%
10%
1,00
0%
0,50
-10%
* Other Projects
Income represents
- -20% funds received from
YR YR YR YR YR YR YR YR YR
YR self- financing
02/0 03/0 04/0 05/0 06/0 07/0 09/1 10/1 11/1
08/9 programmes, funds
3 4 5 6 7 8 0 1 2
earned by departments
Other Projects Income (BD$) through consultancies
$0,75 $0,64 $0,70 1,00 1,09 1,16 1,14 1,63 $1,91 $1,77
Billion programmes, fee
Year-to-Year (%) Increase 21% -14% 9% 43% 9,04% 6,09% -1,42% 43,26% 16,76% -6,90% paying programmes
21. Commercial
The University of The West Indies Operations
Consolidated - Commercial Operations Income ($J)
Income* Billion
( Year 2002/2003 to Year 2011/2012)
Year-to-
Year (%)
Increase
0,70 25%
Annual (%) Change in Commercial Operations Inc.
20%
0,60
15%
0,50
BDS$(Billions)
10%
0,40
5%
0,30
0%
0,20
-5%
0,10
-10%
- -15%
YR YR YR YR YR YR YR YR YR * Comm. Ops
YR
02/0 03/0 04/0 05/0 06/0 07/0 09/1 10/1 11/1 Income represents
08/9
3 4 5 6 7 8 0 1 2 funds received from
Commercial Operations Income halls of residences,
$0,28 $0,26 $0,29 0,36 0,39 0,47 0,52 0,56 $0,57 $0,60 book shops, other
($J) Billion
rented properties
Year-to-Year (%) Increase -11% -9% 0% 22% 9,06% 20,53% 10,59% 6,60% 2,89% 4,79%
22. The University of The West Indies Other Income
(BDS$) Billions
Consolidated - Other Income*
( Year 2002/2003 to Year 2011/2012)
Year-to-Year (%)
Increase
0,50 40%
Annual (%) Change in Other Income
0,45
30%
0,40
20%
0,35
10%
BDS$(Billions)
0,30
0,25 0%
0,20
-10%
0,15
-20%
0,10 * Other Income
represents funds
-30%received from gain on
0,05 sale of certain equities,
,income representing
value of capital grants
- -40%amortised & from rental
YR YR YR YR YR YR YR YR YR YR of facilities
02/0 03/0 04/0 05/0 06/0 07/0 08/0 09/1 10/1 11/1
3 4 5 6 7 8 9 0 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%
23. 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.)
25. 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)
26. 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.
27. 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
28. 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.
29. 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)
30. 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.
