Higher Education Strategy Associates

Tag Archives: Japan

May 19

Free Tuition, Sea of Japan Edition

To Tokyo, where the ruling Liberal Democrats are considering adopting a proposal from a small right-wing party (Nippon Ishin no Kai – roughly, Japan Restoration Party) to enshrine a constitutional right to free tuition.  This is not, it is safe to say, because of any principled attachment to accessible education – the party opposed free secondary education (which the Democratic Party implemented during its brief, mostly hapless, stint in government which ended five years ago) as recently as a couple of years ago, calling it “an unprincipled policy to buy votes”.

So what’s behind Shinzo Abe’s new ploy?  Two things.  First, Prime Minister Abe’s attempts to kick-start Japan’s long-stalled economy have had only middling success.  Free tuition would in effect be another Keynesian stimulus, freeing lots of family savings to be spent on other things.  Now, technically that doesn’t require a constitutional change, but some observers think Abe would not be able to get a free-tuition proposal worth 5 trillion Yen (C$60 billion) through a normal budgetary approval process; a constitutional amendment would make the spending automatic, thus circumventing the budget process.

But the bigger reason is much more Machiavellian.  Abe’s fondest political wish is to alter the Japanese Constitution, written in 1945 by US occupying forces, to remove Article 9, which bans Japan from having armed forces.  Though Abe himself if popular, this proposal is not: since World War II the Japanese have become about as peacefully-minded nation as one can imagine.  And so, Abe is trying to tie a constitutional amendment on free-tuition to a constitutional amendment on the armed forces to sweeten the deal.

A couple of points here.  First, this would be a policy reversal on a massive scale.  As R. Taggart Murphy noted back here Japan deliberately kept tuition, along with land values, high in the postwar period as a form of industrial policy (note: if you are interested in Japan and not reading R. Taggart Murphy, especially his magnificent book Japan: The Shackles of the Past, you’re doing it wrong).  High savings meant low interest rates, which gave Japanese industrialists access to cheap capital, which in turn gave them a big manufacturing cost advantage, and Japan rode this to economic success in the 1960s.  Basically, short term pain for long term gain. Now, Abe wants to reverse this process.

The bigger question, though – and not one I have seen discussed anywhere in the Japanese press – is how on earth one implements a free tuition promise in a country where somewhere between 75 and 80% of all students attend private universities.  Making tuition free at national (public) universities is a cinch, but – as Chile discovered a couple of years ago – trying to do the same with private universities without outright nationalization is kind of difficult.  Fees vary from one institution to another: how would each be compensated in a consistent manner?

There’s something similar going on the other side of the Sea of Japan, where new Korean President Moon Jae-in has promised to halve tuition fees.  This isn’t the first time Koreans have heard such a pledge.  In 2011, months of student protests forced then-President Lee Myung-bak to make a similar pledge; however, in the end nothing was done and fees stayed the same (fee levels in Korea are similar to those in Canada).  But again, it’s not entirely clear how once can effectively deliver on a fee-reduction pledge in a system which is dominated by private universities without partial or outright nationalization, which seems unlikely.

If I had to guess, I’d say Korea’s the likelier to implement policy change because a) I don’t think Article 9 is going anywhere, free tuition or no and b) the Korean government is just a lot better at getting stuff done.  But we’ll see.  Two stories to watch, for sure.

September 30

Fields of Study: Some International Comparisons

Stop me if you’ve heard this one before: “We really need to have more STEM grads in this country.  Really, we ought to be more like Germany or Japan – fewer of these ridiculous philosophy degrees, and more of those lovely, lovely engineers and scientists.”

Personally, I’ve heard this one too many times.  So, just for yuks, I decided to take a look at the distribution of degrees awarded by field of study across the G7 countries, plus (since I’m overdue in throwing some love in the direction of the blog’s antipodean readership) New Zealand and Australia.  The data is from the OECD, and is valid for 2012 for all countries except France, where the data is from 2009, and Australia where it is from 2011.

I started with the percentage of degrees that came from the Arts and Humanities.  The result was… surprising.

Figure 1: Percentage of All Degrees Awarded From Humanities Fields














Germany leads the pack with just under 21% of all degrees being awarded in humanities, and Canada and Australia bring up the rear with 11.6% and 11.1%, respectively.  So much for the narrative about Canada producing too many philosopher baristas.

But as we all know, humanities are only half the story – there’s also the question of applied humanities, or “Social Sciences” as they are more often known.  The Social Science category includes business and law.  It turns out that if you add the two together, the countries cluster in a relatively narrow band between 47 and 56 percent of all degrees granted.  No matter where you go in the world, what we call “Arts” is basically half the university.  We should also note that Canada’s combined total is essentially identical to those of the great STEM powerhouses of Japan and Germany.

Figure 2: Percentage of All Degrees Awarded From Humanities and Social Science Fields














Let’s now look directly at the STEM fields.  Figure 3 shows the percentage of degrees awarded in Science and Engineering across our nine countries of interest.  Here, Germany is in a more familiar place, at the top of the table.  But some of the other places are surprising if you equate STEM graduates with economic prosperity.  France, in second, is usually not thought of as an innovation hub, and Japan’s third place (first, if you only look at engineering) hasn’t prevented it from having a two-decade-long economic slump.  On the other hand, the US, which generally is reckoned to be an innovation centre, has the lowest percentage of graduates coming from STEM fields.  Canada is just below the median.

Figure 3: Percentage of Degrees Awarded from Science and Engineering Fields














Last, Figure 4 looks at the final group of degrees: namely, those in health and education – fields that, in developed countries, are effectively directed to people who will pursue careers in the public services.  And here we see some really substantial differences between countries.  In New Zealand, over one-third of degrees are in one of these two fields.  But in Germany, Japan, and France – the three STEM “powerhouses” from Figure 3 – very few degrees are awarded in these fields.  This raises a question: are those countries really “good” at STEM, or do they just have underdeveloped education/heath sectors?

Figure 4: Percentage of Degrees Awarded in Health and Education Fields














So, to go back to our initial story: it’s true that Japan and Germany are heavier on STEM subjects than Canada.  But, first, STEM-centricness isn’t obviously related to economic growth or innovation. And second, STEM-centricness in Germany and Japan doesn’t come at the expense of Arts subjects, it comes a the expense of health and education fields.

September 28

Are Japanese Humanities Faculties Really Being Shut Down?

You may have noticed stories in the press recently about the government of Japan asking national universities to shut down their humanities faculties.  Such stories have appeared in the Times Higher Ed, Time, and Bloomberg.  Most of these stories have been accompanied by commentary about how shortsighted this is: don’t the Japanese know that life is complex, and that we need humanities for synthesis, etc.?  A lot of these stories are also tinged with a hint of early-1990s “these uncultured Asians only think about business and money” Japanophobia.

The problem is, the story is only partly accurate.  A lot of background is needed to understand what’s going on here.

Some facts about higher education in Japan: First, “national universities” – that is, big public research universities – only account for about 20% of student enrolment in Japan; the remainder of students are enrolled in private universities.  Second, the number of 18 year-olds has fallen from 2 million in 1990 to about 1.2 million; meanwhile the annual intake of students has stayed relatively constant at around 600,000.  The problem is that the 18 year-old cohort is set to continue shrinking, and few think that a system with 86 national universities, about as many regional/municipal universities, and 600-odd private universities can make it through this demographic shift.  Re-structuring is the name of the game these days.

Now, while national universities are theoretically autonomous, they still take “advice” from the Ministry of Education, which is sometimes transmitted via circulars that explains the Ministry’s perspective on national academic priorities.  The current brouhaha centres around one such circular, distributed this past June, which contained the following statement: “With regard to the programs of teacher training, and humanities and social sciences in particular, it is encouraged to stipulate a reform plan, taking into consideration the reduction of 18-year-old population, human resource demands, expected level of education and research, the roles of national universities and etc., and dismantle and restructure organisations based on social needs”.

There’s some clunky language in there, and since I don’t speak Japanese I’m unclear as to how much of this is lost in translation.  A lot of this story comes down to the meaning of the phrase “dismantle and restructure organizations”.  Nearly all the coverage assumes that “organization” means “faculty”.  But if it means “program” (which is effectively what this commentary from a former education bureaucrat suggests) then basically the government is saying “students numbers are down, maybe you should do some program reviews”.  If this is the case, the whole thing is a lot less controversial.

There’s another aspect here, too. The original English language stories in the Japan Times and the Times Higher Education relied heavily on a Yomiuri Shinbun story – which no longer appears to be on the internet – in which 26 of the 60 national universities with humanities programs said they were closing programs, or curtailing enrolment, without ever specifying the proportions.  Twenty-six universities where enrolment in certain humanities programs is being curtailed is a very different story from shuttering 26 humanities faculties altogether.

A final niggle is that since this circular only applied to national universities, humanities in the country’s 600-odd private institutions would have been unaffected anyway.  So even in a worst case scenario sense, this is would be the fate of humanities in about 5% of the country’s universities, not the entire system.

So if the story is only partly true, why did it blow up the way it did?  A couple of reasons, I think.  First, obviously, is that there aren’t a lot of English-language journalists specializing in Japanese higher education, so there is considerable potential for misunderstanding and nuance-missing.  Second, there’s a big market for stories about humanities programs being shut down, mainly from humanities professors themselves who seem to have an endless capacity to imagine what fresh horrors the barbarians in control of the system will do next (for an example see this from the Guardian).

The third reason, though, is that there really are some big disputes between Japanese academics and the ruling Liberal Democratic Party (LDP).  Academics are generally on the left, and have opposed the LDP’s recent legislation allowing the Japanese military to participate in overseas combat missions.  They also aren’t too happy about new government legislation that strengthens central administrations at the expense of faculty councils.  In a sense, the humanities row is a proxy fight: there are some in the LDP who really would like to stick it to the academy this way, and there are some in the academy who have reasons to make the government look buffoonish.

But for western readers, there’s a different lesson here: be not overly credulous in dealing with stories from countries whose languages you don’t understand.  Especially if they play to your existing prejudices.

April 28

Trust, Transparency, and Need-Based Aid

If you look around the world at the kinds of subsidies made available to students, you’ll be struck by the fact that there are two very large chunks of the world where need-based aid isn’t the dominant form: post-Socialist Europe and Africa.  The reasons for this boil down to a simple issue: trust.

In the post-socialist countries, the preference for merit-based aid over need-based aid is a relatively recent affair.  Prior to 1990, access to university was restricted both in absolute numbers and on ideological grounds: in order to attend university one had to have correct “origins”.  This was another way of saying that if your family was considered too bourgeois, you weren’t allowed to attend (Vaclav Havel, for instance, was denied entrance to university on these grounds).  Though regimes eased up on this somewhat as the 70s and 80s progressed, class origins continued to play a role in admissions up to the end of the regime.

So when it came time for new, post-socialist regimes to come up with student aid policies, there was considerable suspicion about anything that looked like it discriminated based on something like class.  Preferences based on parental characteristics, quite simply, were too tainted by communism to be a viable political project: nobody trusted government to discriminate between students based on something like income.  Merit-based aid, on the other hand, was not so burdened by history, and gave the appearance of being “objective” in the sense that exam results were measured in a consistent way across the country, and could easily be used to differentiate between students.  The results, in a word, were trustworthy.

In Africa, the trust problem is slightly more complex, and less tractable.  There, the state lacks the ability to monitor individuals’ income and consumption through the tax system.  Trying to run a need-based system of aid without means of income verification is difficult, to say the least (in bits of Eastern Europe – especially Russia – income verification poses the opposite problem in that people are reticent about providing documentation that would help the government verify income).  Without income verification, need-based systems tend to rely on proxies like ownership of land or livestock, which is either very complicated or impossible to verify.  These systems quickly fall into disrepute: because it is possible to cheat them, everyone comes to assume that those who receive need-based aid have cheated.  And so again, something simple and transparent – like merit as measured through examination results – becomes the de facto standard.  Everybody knows it’s ludicrously regressive, because the awards inevitably go to students from families rich enough to pay many multiples of university tuition to attend the best secondary schools, but at least it’s transparent and not corrupt.

Japan has a similar issue: it has no need-based grants, because no one trusts that the tax system accurately captures parental income.  It does, however, have a need-based loan system.  When I asked someone senior there about why they trusted need-testing for one and not the other, he simply said “because people pay back the loans”.

All of which is to say that need-based aid requires that students and families trust that state institutions will deal with them fairly, and state institutions need to trust that families won’t try to lie to them (or, at least, have reasonably robust measures of discovering lies).  In Canada, we take this for granted, but we shouldn’t.   Without trust, and the transparency that tax-based verification tools provide, need-based aid simply wouldn’t exist.

April 10

A View from Abroad

I’m in Japan this week, and amid all the futuristic buildings, hi-tech, and gloriously efficient public transit, one is continually tempted to ask: how much of this has to do with Japanese higher education? In the Canadian higher education sector we keep telling ourselves how central universities are to economic growth and innovation process, so by that logic, a gleaming technological marvel like Japan must have some kick-ass research universities, mustn’t it?

Actually, no. Sure, Japan has a few top schools – Tokyo and Kyoto, for instance, compare with most any public university in the world. But overall, their universities significantly underperform relative to their peers in terms of research production. Serious scientific research in Japan is much more likely to happen in corporate settings than in academic ones (the Bell Labs equivalents here were never dismantled). Since the centrality of university research to innovation is, to a large extent, an inverse function of business productivity, universities simply aren’t so crucial where the business sector is actually on the ball.

Well then, Japanese universities must be turning out loads of skilled labour, right? And since it’s such a high-tech country, they must be miles ahead of us in terms of STEM subjects.

Still, no. About 17% of university enrolments in Japan are in engineering, which is much higher than in Canada, but only about 2% are in the sciences, which is much, much lower. As a result, Japan’s overall STEM enrolments are slightly lower than ours. And there are also serious complaints about quality, with universities here being called “Ivory Basements,” a four-year party-filled hiatus between the rigours of high-school and finding a job. Some of these complaints have tapered off a bit recently after major reforms under Prime Minister Koizumi, but there is a long way to go.

(One area where Japanese universities really are unique? Marketing. I’m 100% sure that in no other country would Peter Rabbit be considered a suitable subject for an institutional branding campaign, as he is at Saitama’s Daito Bunka University.)

Here’s the crux of it: countries actually can get by pretty well without massive university systems. Germany and Switzerland send very few people to university yet have quite advanced technical economies. The optimal mix of education can differ substantially from one country to another based on the range of industries one possesses. That’s not to say that you could just tear down our universities and expect the same results as Germany or Japan – it’s just to say that their capabilities and optimal role is heavily circumscribed by their institutional environment.

Universities aren’t inherently central to economic development. It’s all down to context.

December 08

Turning Japanese? (We Really Think So)

Sometimes it seems as though Canadian higher education can only ever have one good idea at a time and everyone has to join the scrum around that idea. For the last couple of years in international education that idea has been grabbing international students from India, an idea which seems to have pushed out expansion pretty much everywhere else.

(Ok, before anyone says it – yes, we at HESA are a bit guilty with that too, with our India Survey, but at least we’ve got plans to do another 19 countries as well.)

But apart from problems of portfolio risk, is India really the international market we want to be tapping? Why wouldn’t we want to spend more effort attracting students from more developed countries, with better secondary schools (meaning more able students), and with families better able to pay international student dollars? It would have to be a country whose higher education system was undergoing problems of its own, of course, and one where there was already wide acceptance of spending big dollars for top education.

Think such a country doesn’t exist? Well, it does: Japan.

One consequence of the twenty year-long recession in Japan has been a fall in the number of Japanese students going overseas. The reason: hiring season for the big Japanese companies starts in April, which put foreign-educated students at a serious disadvantage in a difficult labour market. But an over-reliance on local university talent hasn’t turned out so well for Japanese companies, who are increasingly unhappy with the kinds of graduates local institutions are churning out.

As an article in a recent edition of The Economist points out, demand for foreign-trained graduates is growing, and firms are altering their hiring practices to better include them. This could be the spur to a sea-change in attitudes, and institutions that get in early will have an advantage in coming years.

But to really attract top candidates, institutions will need to make a credible case that they can provide modern, high-tech, professionally-oriented education that is relevant to the Japanese economy. Forming an advisory committee consisting of representatives from some key Japanese employers to help tweak program offerings before heading into this market could be an important part of institutional success in the area.

Sake, anyone?