Private sector in Asian higher education
A central reality of massification of higher education in Asia is increased reliance on private higher education institutions. Private higher education is the fastest-growing segment of post-secondary education worldwide. In Asia, private institutions have long been a central part of higher education provision. In Japan, South Korea, Taiwan, the Philippines, and Indonesia, private universities enroll the majority of students — in some cases upwards of 80 percent. The large majority of Indian students also attend private colleges, although these are heavily subsidised by government funds. The private sector is also a growing force in parts of Asia where it was previously inactive — China, Vietnam, and the central Asian republics are examples.In general, private universities are found at the lower end of the prestige hierarchy in Asia. There are a few exceptions — high quality private universities, such as Waseda, Keio, and a few others in Japan; De La Salle and the Ateneo de Manila in the Philippines; Yonsei in Korea; and Atma Jaya in Indonesia. Generally, private institutions rely on tuition payments, receive little funding from public sources, and have no tradition of private philanthropy (in part because the tax structure does not reward private donation to non-profit organisations such as universities), and as a result are unable to compete for the best students. However, the private sector plays a central role by providing access to students who would otherwise be unable to obtain academic degrees.
It is useful to disaggregate the Asian private higher education sector because of the significant differences among institutions and the divergent roles they play in society. As noted, there are a few very prestigious private universities in the countries in which a private sector operates. In some cases, these institutions are sponsored or founded by religious groups — largely but not exclusively Christian. Sophia and Doshisha in Japan, Yonsei and Sogang in South Korea, Santa Dharma in Indonesia, Assumption in Thailand, and De La Salle and Ateneo de Manila in the Philippines are examples. These universities are typically among the oldest in their countries, and they have a long tradition of training elite groups.
Another category is newer private institutions, often specialising in fields such as management or technology, established with the aim of serving a key but limited market with high quality academic degrees. The Asian Institute of Technology in the Philippines, its sister institution in Thailand and the new Singapore Management University are examples of such schools. These prestigious private universities have been able to maintain their positions over time and rely largely on tuition payments for survival.
Most Asian private universities serve the mass higher education market and tend to be relatively non-selective. Many are small, although there are some quite large institutions, such as the Far Eastern University in the Philippines, which has a large student population and was for a time listed on the Manila stock exchange. Some are sponsored by private non-profit organisations, religious societies, or other groups. Many are owned by individuals or families, sometimes with a management structure that masks the controlling elements of the school. This pattern of family-run academic institutions has received little attention and is important to understand, as it is of growing importance worldwide.
The emerging for-profit sector is a growing segment of private higher education in some Asian countries. In 2002, China passed legislation that permits private higher education institutions to earn an "appropriate" profit. Two for-profit higher education patterns have emerged in India: several quite large and successful post-secondary trade schools and a number of colleges (mostly focusing on professional and medical training) that charge high fees and are intended to provide a return on funding to investors although the legal status of these institutions has come into question. While a number of Asian countries have not as yet opened their doors fully to for-profit higher education, there are already semi-for-profit enterprises operating — a trend that will prevail.Many Asian countries have long experience in managing large private higher education sectors, while others are seeking to establish appropriate structures. The main challenge is to allow the private sector the necessary autonomy and freedom to establish and manage institutions and to compete in a differentiated educational marketplace, while at the same time ensuring that the national interest is served.
As in other parts of the world, private higher education is expanding throughout Asia, and the countries that are moving toward a large private sector would be well advised to look at the experience elsewhere in Asia for guidance. There is a dramatically growing private sector in China, with more than 500 private post-secondary institutions, most of which are not accredited or approved by the government. Vietnam and Cambodia also have rapidly growing private sectors, as do the central Asian nations. The challenge will be ensuring that the emerging private sector is effective, well managed, and serving national goals.
(Dr. Philip G. Altbach is director of the Center for International Higher Education, Boston College, USA)