The Challenge of Establishing World-Class Universities

Jamil Salmi

Washington DC6 May 2009

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natural lab experiment: U. of Malaya vs. NUS

• early 1960s: 2 branches of University of Malaya

• today: • NUS ranked # 19• UM only # 192

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outline of the presentation

• what is a world-class university?

• how do you become a world-class university?

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how do you recognize a world-class university?

• everyone wants one• no one knows what it is• no one knows how to get one

Philip G. Altbach

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defining the WCU

• self-declaration

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defining the WCU

• self-declaration• reputation• rankings

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top 50 universities

AutonomyAcademic Freedom

StudentsTeaching StaffResearchers

Leading-Edge

Research

Dynamic Technology

Transfer

Concentration of Talent

Abundant

ResourcesFavorable Governance

Leadership TeamStrategic VisionCulture of Excellence

Public Budget ResourcesEndowment RevenuesTuition FeesResearch Grants

WCU Supportive Regulatory Framework

Top Graduates

Characteristics of a World-Class UniversityAlignment of Key Factors

Source: Elaborated by Jamil Salmi

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concentration of talent

• teachers and researchers• incoming students• undergraduate / graduate students

balance

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weight of graduate students

University Undergraduate Students

Graduate Students

Share of Graduate

Students (%) Harvard 7,002 10,094 59 Stanford 6,442 11,325 64 MIT 4,066 6,140 60

Oxford 11,106 6,601 37

Cambridge 12,284 6,649 35 LSE 4,254 4,386 51 Beijing 14,662 16,666 53 Tokyo 15,466 12,676 45

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concentration of talent

• teachers and researchers• incoming students• undergraduate / graduate students

balance• international dimensions

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international dimensions

• foreign students– Harvard (19%)– Cambridge (18%)

• foreign faculty– Harvard (30%)– Oxford (36%)– Cambridge (33%)

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abundant resources

• government funding– US spends 3.3% of GDP ($54,000 per

student)– Europe (E25) only 1.3% ($13,500 per student)

• endowments

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US InstitutionsEndowments

Assets(2006 million $)

UK InstitutionsEndowment

Assets(2002 million $)

Harvard University 28,916 Cambridge 4,000

Yale University 18,031 Oxford 4,000

Stanford University 14,085 Edinburgh 3200

University of Texas 13,235 Glasgow 240

Princeton University 13,045 King’s 200

Comparison of US and UK Endowment Levels

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abundant resources

• government funding

• endowments

• research funding

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impact of the crisis

• resources flows

• government policies

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resources flows

• reduced government funding for teaching, research and student aid

• reduced resources for institutions as demand falls (new domestic and foreign students, dropouts)

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resource flows (II)

• fewer resources from private sector (donations, contracts)

• fall in stock market values reduces value of endowments and pension funds

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implications for governments

• increase scholarships and establish / strengthen student loan programs

• include tertiary education in economic stimulus plans– R&D– entrepreneurship for innovation

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favorable governance• freedom from civil service rules (human

resources, procurement, financial management)

• management autonomy– flexibility and responsiveness with power to act

• selection of leadership team• independent Board with outside

representation

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U. Of Malaya vs. NUS

– talent• UM: selection bias in favor of Bumiputras,

less than 5% foreign students, no foreign professors

• NUS: highly selective, 43% of graduates students are foreign, many foreign professors

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U. Of Malaya vs. NUS (II)

– finance• UM: $118 million, $4,053 per student• NUS: $750 million endowment, $205 million,

$6,300 per student

– governance• UM: restricted by government regulations and

control, unable to hire top foreign professors• NUS: status of a private corporation, able to

attract world-class foreign researchers

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outline of the presentation

• what is a world-class university?

• how do you become a world-class university?

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the path to glory

• upgrading existing institutions• mergers• creating a new institution

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upgrading approach

• less costly• challenge of creating a culture of

excellence• focus on governance

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mergers approach

• China, Russia, France, Denmark, Ireland

• potential synergies– 1+1=3

• clash of cultures

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creating a new institution

• higher costs• getting the right culture from the

beginning

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who takes the initiative? • role of the State

• favorable regulatory framework• funding

• role of the institutions• leadership• strategic vision• culture of excellence

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Clemson University• land grant university focused on

agricultural and mechanical crafts

• changing region

• strategic partnership with BMW to become premier automotive and sports car research U

• aims to become # 20

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Upgrading &

Fixing Universities

Upgrade your knowledge –

enhance, repair, connect, and adapt your universities!

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a word of caution

need for diversified tertiary education

system

not all institutions can be “world-class”

a few select world-class research universities

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a word of advice

what kind of institution?

time dimension

alignment

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money is not enough

the most expensive universities in the

world are not world-classWashington U (Washington)Kenyon College (Ohio)Bucknell U (Pennsylvania)Vassar College (NY)Sarah Lawrence College (NY)

AutonomyAcademic Freedom

StudentsTeaching StaffResearchers

Research Output

Technology Transfer

Concentration of Talent

Abundant

ResourcesFavorable Governance

Leadership TeamStrategic VisionCulture of Excellence

Public Budget ResourcesEndowment RevenuesTuition FeesResearch Grants

WCU Supportive Regulatory Framework

Graduates

Characteristics of a World-Class UniversityAlignment of Key Factors

Source: Elaborated by Jamil Salmi

World Class University Recipe

Lots of Talent

A Touch of Governance

Shake Well!

Plenty of Resources