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The Global Market for Education

The Global Market for Education. Harry Anthony Patrinos World Bank hpatrinos@worldbank.org AUCC International Conference Montreal, Canada October 31 - November 2, 2000. Size of the Global Market. $2 trillion (Merrill Lynch) Teaching staff employed in education: 2% to 5% of labor force

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The Global Market for Education

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  1. The Global Market forEducation Harry Anthony Patrinos World Bank hpatrinos@worldbank.org AUCC International Conference Montreal, Canada October 31 - November 2, 2000

  2. Size of the Global Market • $2 trillion (Merrill Lynch) • Teaching staff employed in education: • 2% to 5% of labor force • 1.5 M+ tertiary students abroad: $27 B • One-third of global market in USA • 15% in developing world

  3. Wages Relative to Wageswith No Schooling 6 5 4 3 2 1 0 Indonesia Peru USA Thailand Cote d’Ivoire Slovenia Secondary Post-secondary Primary

  4. Tertiary Education Challenges • Low enrollments and decreasing public resources • Inequality in access • Lack of quality and relevance • Globalization -- New Economy

  5. Financial Issues • Public spending inefficient • Over-subsidized higher education • In Africa, higher education spending/student = 44 X primary • Governments less able to bear increasing cost of expanding public system

  6. Evolution of Tertiary Education Enrollment (1980-1995)

  7. Private Enrollment in Tertiary Education

  8. Fees as Share of Expenditure at Public Institutions

  9. Household Spending (% of total education spending, all levels) Uganda Chile Korea Indonesia United States Mali Japan Germany France Denmark Netherlands Sweden 57 45 41 37 26 25 23 22 9 7 3 2 0 10 20 30 40 50 60

  10. Private Sector Share of Higher Education Enrolments Korea 75% Indonesia 65% Philippines 80% Colombia 60% Brazil 60%

  11. Private Higher Education in Developing Countries • 100% of professional training in Cote d’Ivoire • 44% of skills training market in The Gambia • Almost non-existent in Mauritania • 75% of tertiary colleges in India • 1,274 institutions, 4 Million students in China • 37 tertiary institutions in Ghana (11 accredited)

  12. Private Higher Education in Developing Countries (cont’d) • Fees main source of income • Serve both rich and poor • New sector • Complete range of institutions • Ownership types • Offer limited range of courses • Often use part-time staff • Regulatory framework less developed

  13. Significant Growth • 3 new colleges currently being set up in Ghana • 500 new tertiary institutions in China, 1995-99 • 7 universities, 25 colleges applied in Cameroon • 27 applied in Kenya this year • 4 universities registered, 19 in development or in process of accreditation in Tanzania

  14. Private Business Schools in Eastern Europe, 1998 • Poland 91 • Czech Republic 29 • Armenia 21 • Romania 18 • Bulgaria 4 • Slovenia 1 • Macedonia 0

  15. Brazil: Objetivo/UNIP • 1962 a ‘coaching class’ for pre-university students -- 20 students • Largest chain of private schools and universities in the world: • 514,000 students • 482 campuses/sites - majority franchised • Turnover US$384m (1996-7) • Profit US$40 m (1996-7)

  16. Romania: CODECS • Romania: Centre for Open Distance Education for Civil Society • Est. 1993 • Distance education in business and management • 2,578 students in 1997

  17. For-Profits Targeting Developing World • Apollo Group (Univ of Phoenix) -- Apollo International • Sylvan Learning Systems -- Universidad Europea de Madrid • Unext.com? • Columbia, Chicago, Stanford, LSE, Carnegie Mellon

  18. On-line Education • African Virtual University • Est. 1997, 15 African countries, 2,500 hours of instruction, 12,000 students • NextEd.com • Est. 1998, 12 universities (Aus, Can, Hol, NZ, UK, US), 2,600 students, 21 countries

  19. South Africa: Educor • Est. 1943, as ‘cramming’ college • 1997 - internal expansion and acquisition of other companies in southern Africa: 300,000 students on 43 campuses • 1999 - global expansion - purchases 50%+ of International Business Schools, Toronto

  20. India: NIIT • Est. 1979, as computer training company • Now has 400 centres in India and has expanded into 30 countries

  21. http://www.worldbank.org/edinvest • A joint WB/IFC/private sector initiative • Country Market Reports for investors • Database on potential investments • Exchange of ideas and market information • Regional Conferences

  22. Messages • Competition in education brings new set of responsibilities • Investigate the market for education • Internet will change higher education • Trade will become an issue

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