Poland's students go private in force

With the highest private-sector enrolment in Europe, the Polish university system could be a tempting model for Britain's coalition government

After the fall of communism, one aspect of capitalism embraced with fervour in Poland was privatised education. Before the fall of the Berlin Wall there was just one private university, run by the Catholic church. Now more than a third of Poland's students are educated outside the state system.

Around 300 private universities – some small enough to share premises with local schools – educate about 630,000 students a year, the highest private-sector enrolment in Europe. Unlike their fellow students at public universities, they have to pay fees, though both kinds of students are eligible for state-backed loans. And unlike public universities, their institutions do not receive any direct government funding.

It must a tempting model for Britain's coalition government, which has cut funding to universities in England and plans to open up the market to more private providers in the hope that competitive pressure might bring soaring tuition fees down.

Other ex-communist bloc countries have also seen surges in private higher education, but unlike those of its neighbours, some of Poland's private universities have serious academic aspirations. Mainly, private institutions focus on vocational subjects such as economics, management and computer science. But they also have PhD students conducting original research.

Private universities argue that they are quicker to respond to changes in the employment market than the bigger, more bureaucratic public universities. Tischner European University (TEU), which educates 1,100 students in Krakow, has brought in a Chinese language module as part of its English language and literature course.

Spotting niches like this is how private universities can flourish, according to Justyna Wozniakowska, head of TEU's international office: "[We can] be more flexible and think what specialisations are not yet present in the market and might sell."

Wozniakowska argues that private universities, typically small institutions with fewer courses, can tailor their degrees better to the demands of employment.

"What private universities do and what they attract students with, is to give them an exact picture of what they might do after they have finished these studies.

"They get practical knowledge and you will be able to meet business people. The programmes you are doing are designed in collaboration with business. I would say this is the key reason that students [when they] are interviewed give for selecting private schools over a public one."

Despite this business-friendly approach, many Polish employers are still sniffy about the quality of private universities – the suspicion is that students are "buying" their degrees.

Filip-Peter Skora, 26, studying for a master's in international relations at TEU after a bachelor's degree at a public university, disagrees: "The quality is at the same level or higher than public universities. Why? The person who teaches [here] is facing people who have some expectations.

"Our parents thought that everything that is good should be provided by government, so it should be without fees. We are thinking like – hey, if I go to a shop and I buy something, if I pay I can think about quality. For me a fee is a huge effort but I know I'll have quality." Skora pays 3,500 zlotys (£750) a semester with money saved up from part-time jobs.

As a dip in the Polish birthrate shrinks the number of potential students, competition between the private and state sectors is expected to get sharper. Even at Krakow's Jagiellonian University, a public institution which is Poland's oldest university and competes with Warsaw University for the title of the country's best, there is a keen awareness of the challenge.

The public university is far bigger and better known than any private competitor; the Jagiellonian occupies a swath of prime territory in Krakow's elegant city centre; its main administration building is a soaring neo-Gothic pile and it is spending 1bn zlotys of public money on a lavish new science campus. Meanwhile, its private counterpart, the TEU, has a more modest home in two 19th-century townhouses, one of them the former Soviet consulate in Krakow.

Andrzej Mania, the Jagiellonian's vice-rector for educational affairs, is sceptical about the quality of all but a handful of the private universities. But he admits: "Definitely we feel the pressure. We maybe are extremely proud at being so old, big and distinguished a university. We're not afraid in the primitive sense [of private universities].

"But we feel the pressure, especially right now when we have fewer and fewer candidates, we may assume that for some of these candidates it's not important to go to the best school but just a school. It's easier to get acceptance in a private school than in our school."

The rivalry between the sectors may increase if Poland's private universities prove successful in an attempt to win subsidies from the state. They are also lobbying for the introduction of tuition fees in the public sector, in a bid to "level the playing field", according to an academic familiar with the sector.

The threat from private universities creates a useful ally in internal struggles at public universities, Mania says – it helps senior managers prod reluctant colleagues to try new things.

Unlike in Germany, where some private universities have a strong focus on research, Poland's public universities remain the country's reservoirs of academic knowledge and research.

Private universities are primarily teaching institutions, with just 1.8% of their income coming from research, according to 2009 figures. Many of them borrow teaching staff from public neighbours, and their offer is likely to remain narrowly focused on business, social sciences and some of the humanities.

At TEU, Wozniakowska said: "We definitely do have an ambition to become a more research-oriented institution. We have done some research but it is not enough. There is a strong push from the university authorities towards the academic staff to get involved in research projects but it's not yet a fully-fledged programme. This is something that is the major challenge for us."

source:http://www.guardian.co.uk/world/2011/apr/06/poland-universities-private-public

Rising coal, crude prices will hurt corporate earnings, profit margins: UBS

HONG KONG: Profit margins of Indian companies will be under pressure as rising coal prices force them to pass on the increase in cost to customers, according to commodity analysts present at the UBS APAC Journalist Forum in Hong Kong. UBS expects thermal coal's contract price to remain above $100 per tonne over the next one year.

"Domestic prices for coal in India is still 20-25% lower than international prices," Peter Hickson, global basic materials strategist, UBS, told ET on the sidelines of the conference. "But then, even a small increase will affect the bottom lines of cement, power and steel companies, which use coal in a big way."

Demand for coal in India has grown at 9% a year for the past five years. The country, along with China, will play an important role in driving up global coal prices. India expects power coal usage to rise from 400 million tonnes to 600 million tonnes by 2015. Apart from coal, crude prices will also play a major role in the corporate earnings of Indian companies. Analysts expect the effect of oil prices to start showing on the earnings from the April-June quarter.

"We're not sure where oil prices are headed," Mr Hickson said. "In normal circumstances, we expect crude prices to hover at $85-90 per barrel level but there are many concerns. The crisis in Gulf countries, tight supply environment and steady demand will keep crude prices firm."

Problems in Japan , volatile west Asia and "slower" economic activities in China could have an impact on the overall commodity prices. Crude oil, platinum, phosphate, lead and palladium are on the 'preferred commodity list' while nickel, steel, uranium and aluminium have fallen out of favour - at least in the short-term - for most commodity analysts.

"Cost curve will be up for most commodities over the next few years," said Andrew Ferguson, CEO of APAC Resources . "It'll not be excess liquidity alone that will keep commodity prices up; demand-supply gap and high cost of extraction will add to the overall prices. Raising interest rates to control commodity price inflation will not bring about a big change in prices."

Copper prices are likely to be governed by China's seasonal restocking, which should last till May. The recent spike in steel prices in US and Europe is largely driven by an increase in seasonal activity, low steel inventories and raw material cost-push. Analysts are worried that key-end markets like construction, infrastructure and real estate have not contributed much to the demand for steel.

Gold prices may benefit from lingering European Union sovereign debt concerns, rising inflation fears and the West Asian crisis. "Gold prices will be firm this year. We do not expect a sharp spike up, but a gradual rise in prices. I am bullish on gold as an asset class," said Mr Ferguson.

source:http://economictimes.indiatimes.com/markets/analysis/rising-coal-crude-prices-will-hurt-corporate-earnings-profit-margins-ubs/articleshow/7840309.cms

Profitable, yet risky trade

THE CRISIS THIS TIME - Socialist Register 2011: Leo Panitch, Greg Albo, Vivek Chibber; LeftWord Books, 12, Rajendra Prasad Road, New Delhi-110001. Rs. 350.

During the past four decades and more, a group of committed analysts, admittedly with Left leanings, have been bringing out an annual publication, Socialist Register, to make available their interpretation of pressing contemporary problems. The latest in the series deals with the global economic crisis that surfaced in 2008-09 and is still running its course in the United States, Europe, and many other parts of the world.

Even general readers now know that the crisis has been associated with sub-prime lending and the rapid growth of derivatives. What this volume attempts to convey is that the crisis has some systemic features and that it may indeed presage a new phase in the development of capitalism.

Derivatives

Take derivatives, for instance. Thanks to the widespread use of the term, it is common knowledge that derivatives derive their value from other debt-related instruments. But, as financial instruments, what is their special feature, and how do they impact the economic system as a whole and the lives of ordinary people? Are they indeed “financial weapons of mass destruction,” as a writer claimed?

One thing is clear: though derivatives appeared on the financial scene only in the 1980s, now they are the most traded among financial instruments and the latest means of acquiring and holding wealth. The amount of derivatives outstanding currently is multiple times the capitalisation of the world stock markets. Indeed, derivatives are redefining what wealth is. Insofar as they are bought and sold, they are commodities or traded goods. If they are traded, they must have value of some sort, on the one hand, and the right of ownership, on the other.

In an earlier era these two attributes coincided: only goods that had some value of their own — grain, cattle, precious metal, land, etc. — would be considered as wealth or assets. The second phase was when claims to wealth such as paper money, deposit certificates or shares would also be treated as wealth and would become standard forms of holding assets. Derivatives announce the beginning of yet another phase of accumulating and holding wealth. Derivatives are contingent claims on the changes in the future price of an asset without any claim to the asset itself.

Financial instruments

A concrete example will make this clearer. Since the end of World War II, a major issue was to ensure the stability of national currencies to facilitate international trade. Till the early 1970s, what ensured stability was the fact that the US dollar, which remained pegged to gold, was freely convertible into any other currency. Once this dollar-gold link was snapped in 1971, the values of currencies began to fluctuate, opening up an opportunity to make profits by trading in currencies. Then it became possible to trade in the anticipated variations in the prices of currencies — a sort of derived trade — and derivatives emerged as the financial instruments for such transactions. Since these transactions were on anticipated variations that might or might not happen, they were subject to big risks. In fact, they made risk a commodity to be traded and extended such trade to equities, debts, metals, oil, real estate, etc., and even to such things as the weather, movements of wages and so on.

In all these instances, the ownership (that which one sells) is exposure to the performance of items, including assets, without ownership of the item itself (some of which, like weather cannot even be owned). Evidently, it is easier, and can be more profitable, to trade ownership of an oil derivative than a barrel of oil.

Derivatives, therefore, constitute a new form of trade, a new form of ownership, and a new means to make profit. One of the writers in the volume puts it more technically: derivatives are ‘meta-commodities' and ‘meta-capital'. The commodification of risk permits diversification of risk portfolios and the proliferation of transactions.

Profit-making

Profit-making via risk-trading is the essence of derivatives. They, thus, create new sites for accumulation mainly for those who already have the advantage of large scale ownership — the big corporations (banks, investment firms. etc.) and their top operatives, hedge funds, and the top wealth-owners. But the ‘small man' gets drawn in too — through his growing dependence on debt — voluntarily, thanks to the convenience the credit cards offer, for instance, but more so involuntarily because only by borrowing can he ever hope to have a house of his own, or educate his children. And often, without his knowledge, his pension fund becomes a big player in derivatives-chasing. Thus, those at the top become wealthier; those at the other end go into debt.

What is more alarming is that while individuals may find it possible to pass on the risk, the cumulative burden of risk may turn out to be too big to avoid a collapse as it happened in 2008-09. This is particularly so because the big players know that the public authorities will bail them out. Once it is done, the train will again be back on the rails till another derailment comes sooner or later. Details may differ, but the basic issues will be the same, perhaps become more intense.

If you find this terse summary of the basic argument interesting and helpful, get to the volume itself which deals with how the crisis this time found expression in the U.S., the United Kingdom, Europe, Japan, and South Africa, and wait for Socialist Register 2012, which promises to deal with Asia, West Asia, and Latin America.

source:http://www.hindu.com/br/2011/03/15/stories/2011031551181800.htm

Forging new relations with institutions

Project English aims to provide every teacher and learner with skills, ideas, and access to the best resources from the U.K., says Mr. Sellers.

The British Council has expanded its programmes in the country by implementing several educational and cultural projects over these years. Paul Sellers, the new Director of the British Council for operations in South India, says that the council is keen on building relationships with a variety of institutions and people in India through its ongoing and forthcoming initiatives. In an interview to The Hindu-EducationPlus in Kochi, Mr. Sellers, who had earlier held senior positions with the British Council worldwide, elaborates on a wide-range of topics related to the council. Excerpts from the interview:

How good is the demand for U.K. higher education among students in India? How do you plan to tap the growing opportunities in the Indian higher education sector?

The demand for U.K. higher education keeps increasing every year. We had a 16 per cent increase last year. There are around 15,000 Indian students going to the U.K. [every year] to study the undergraduate or postgraduate programmes offered by the universities in the country. That is the number of students on our record. It is probably more than that. Interestingly, Kerala accounts for around two-third of the number. It is the biggest among the States. The largest number of students come from Kerala. We attribute this to the good school education and literacy.

Possibly the demand for courses in certain subject areas isnot met even though there are very good higher educational institutions in South India especially in health care and engineering.

And IT is also coming up. British Council institutions around the world have always had a mission to promote the U.K. as a higher educational destination.

Increasingly, we want to build sort of mutual links between U.K. universities and India. We make it easy for the U.K. universities to come and present themselves before Indian students by holding U.K. education exhibitions. We also work closely with the British High Commission so that they can give information on visa requirements, which is an important issue. We are conscious of the competition from Australia, South East Asia, and Europe. The U.K.'s niche is often the postgraduate programmes that complement the undergraduate programmes students pursue here especially in niche subject areas.

One of the ways forward is to link educational institutions in India and the U.K. so that students have a real choice where to study and from where they get quality education.

Do you think that the move by the Indian government to allow foreign universities to open shop here would pave way for the entry of higher education providers in the U.K. to India?

I think definitely there is an opportunity. The new legislation is a positive step forward. I see the U.K. institutions going for joint ventures in India. Some would set up their own campus. But I understand it requires a lot of investment. Some universities thrive on that — Middlesex, Nottingham and some others. They already have campuses in China and the United Arab Emirates running successfully. The reputation of universities is very often based on its locality or presence. The best option, the low-risk model, is to have joint programmes and exchange of faculty and students. And again here British Council intends to help by maintaining the contact with the Indian universities. We can put them together when institutes in the U.K. want to go for joint collaboration.

Do you think that the visa restrictions imposed by the U.K. government would impact genuine applications for higher education?

No, definitely not. There is no barrier at all in terms of the standard students who want to pursue a programme in the U.K. on a bonafide basis especially in undergraduate and postgraduate programmes. What the U.K. government has done is to tie-up some of the loose ends in the legislation. It is a fact that some students heading to the U.K. for short-term programmes like language courses are not necessarily going for that sole purpose. We encourage students to come. The student with the right qualification is offered a place in the U.K. in the right institution.

What is your advice to students who are searching for data on the higher educational opportunities in the U.K.? How would they be able to identify fake agents and agencies?

They should go through the British Council web site (www.britishcouncil.org). We have a database of all the universities in the U.K. And this list is vetted and guaranteed by the British Council. It also gives a breakdown of the courses and subjects specialised by each university.

If you are lucky enough to be in a place where you have access to one of our U.K. education exhibition, you can talk directly to the representatives of the universities.

I think the vast majority of agents do a really good job, as they assist the students in finding their right course.

If their advice and data match the initial research you have done on the basis of the British Council web site, it is more likely that they can help you. Do not pay fees upfront without a written guarantee and a contract or paper work. I believe nearly a dozen agents based in Kochi have passed the British Council training for agents.

We offer them a special training. Another thing to do is to check whether they are accredited by the council. It is not mandatory. But it is yet another guarantee.

Could you elaborate on the ongoing ‘Learn English' project initiated by the council?

Project English, a regional initiative on English language teaching (ELT) and training, was launched in November 2007 with the commitment to provide every teacher and learner with skills, ideas, and access to the best resources from the U.K.

A target of indirectly training 7.5 lakh teachers in India from 2007-12 has been set. We have currently reached 74 per cent of the target. Since November 2007, we have trained 4,266 master trainers, 5,56,166 teachers and 28 million students through this initiative.

We are in the middle of a very productive contract with the Kerala government to train teachers of English in the public sector.

The methodology is to train a cadre of master trainers. In the past 18 months, we have trained 300 master trainers. They have trained over 6,000 teacher trainers. These trainers have taught two lakh students in Kerala so far.

We do have similar agreements with nine State governments including Tamil Nadu and Karnataka. Our aim is to get as close as to the end user — the student.

The council keeps a quality control over the programme. Considering the huge demand in India, our ambition is to become more high-tech with learning of English. We are now researching and investing in English through mobile phone technology and online programmes. Picking the right technology is the key.

One technology might be right for Europe but may not be right for India. Mobile phone market in India had outstretched. Our Internet provision is very good. It will help in increasing your capabilities in learning English. There is a whole range of free materials on the council's web site on learning English.

The focus is still on the teacher. There are very good teacher support materials on the web site.

We already have the Cambridge teacher training course. And we are looking for ways to transmit a similar course through television.

source:http://www.hindu.com/edu/2011/03/08/stories/2011030850030100.htm

Outstanding response to Cambridge IGCSE Enterprise writing competition

We've received more than 650 entries for the Cambridge IGCSE Enterprise student writing competition from all corners of the globe.

The competition is being run to celebrate the launch of Cambridge IGCSE Enterprise. Learners in Cambridge schools were asked to write a short essay on their favourite entrepreneur, how that entrepreneur inspires them, and what question they would put to their chosen entrepreneur if they had the chance to meet them.

Entries have come in from South America, the United States, Europe, the Middle East, Sub-Saharan African, and Asia Pacific.

Favourite entrepreneurs include shoe designer, Jimmy Choo and Facebook's Mark Zuckerberg, Oprah Winfrey, Sir Richard Branson and Michael Dell among many others. Some students named their entrepreneurial parents as their favourite, while many successful entrepreneurs in students' home towns have been used as the subject of the essay.

The deadline for the competition was 11 February and the entries are now being considered by a panel of judges.

Nick Mazur, Marketing Manager for Cambridge IGCSE Enterprise, said he had been delighted with the response.

'The competition has captured the imagination of Cambridge learners around the world,' he said. 'Cambridge IGCSE Enterprise teaches students about the real world of business and is a dynamic course that students are enjoying. The subject is currently being piloted in schools around the world and students will take their first exams this June. It's obvious from the entries that the entrepreneurial spirit is something young people can connect with. The quality of entries has been excellent. The judges will have a hard task choosing the winner.'

The winner will be announced during March and will receive an Amazon voucher to the value of £100 for their school as well as a box set of the BBC TV series Dragons' Den.

Source: http://www.cie.org.uk/news/announcements/detail?announcement_id=37199

Germany expands nanotechnology funding with new action plan

Germany’s federal government recently introduced its Nanotechnology Action Plan 2015. The comprehensive approach extends and expands upon a previous programme, which provided 400 million euros in public funding for nanotechnology research in 2010 – the highest level in Europe.

“Nanotechnology reaches across industries and research disciplines. In Germany, excellent cooperation between academic institutions, research establishments, and industry players creates excellent chances for foreign investors. With nanotechnology, we can better address a range of global challenges from mobility and energy to healthcare and communication,” according to Rainer Mueller, Senior Manager for Nanotechnology at Germany Trade & Invest in Berlin.

German nanotechnology activities are the most intensive in Europe in terms of public and private funding, patents, active companies and targeted initiatives. With nearly 2,000 players, Germany is the European frontrunner in both research and commercialisation of nanotechnology products and processes. A total of nine national nanotechnology clusters have developed.

Source:http://www.german-info.com/edu_shownews.php?pos=Germany_expands_nanotechnology_funding_with_new_action_plan&pid=215