Bridging The Higher Education Gap T HE P ARTHENON G ROUP Boston - PowerPoint PPT Presentation

Bridging The Higher Education Gap T HE P ARTHENON G ROUP Boston • London • Mumbai • San Francisco National Wor ld- Class Unive r sitie s and Othe r Mode ls F e b rua ry 2010 I n Asso c ia tio n with F e dUni Pre pa re d fo r the E DGE 2010 Co nfe re nc e

Education Center of Excellence Global Presence In Over 400 Projects Since 2001 T HE P ARTHENON G ROUP = On-the-Ground Education Sector Projects Completed = Parthenon Offices Pre-Kindergarten K-12 Career and Professional University Vocational and Other 2

Higher Education Enrolment Rises With GDP T HE P ARTHENON G ROUP Higher Education Enrolment vs. Income 50% 2005 Chile 40% 2000 Enrollment Ratio 30% 2004 2005 2005 1996 Mexico Turkey 2000 2000 Brazil 20% 1996 2005 2000 1996 10% 1995 China 1995 2000 0% $0 $2,000 $4,000 $6,000 $8,000 $10,000 PPP adjusted GDP per Capita 3

Economic Strength And GDP Per Capita Are Closely Linked To A Country’s Enrolment Ratio T HE P ARTHENON G ROUP Higher Education Enrollment Ratio vs. PPP Adjusted GDP Per Capita 100% Republic of Korea United States 75% Philippines United Kingdom Enrollment Ratio Arab OPEC Italy Argentina Canada Non-Arab OPEC France Germany 50% Venezuela Other Japan Chile Thailand Peru UAE Malaysia Qatar Colombia 25% R 2 * = 61% Indonesia Saudi Arabia Iran China Mexico India Algeria Nigeria 0% $0 $10,000 $20,000 $30,000 $40,000 PPP-adjusted GDP per Capita 4

To Support Economic Growth India Needs To Grow Its Tertiary Enrolment By 7.7MM Seats In 2014 T HE P ARTHENON G ROUP Enrolment Forecast for Higher Education, 2005-14 30MM Number of Students 7.7MM 21.5MM 20MM 3.3MM 13.8MM 10.5MM 10MM 0MM 2005 Incremental 2008E Incremental 2014F Enrolment Enrolment GDP/ Capita (US $ PPP Adjusted) $3.5K $3.5K $4.0K $4.0K $5.4K $5.4K Gross Enrolment Ratio 11.4% 11.4% 14.3% 14.3% 20.0% 20.0% Rs77K Cr Rs77K Cr Rs215K Cr Rs215K Cr Capex Required 5

7.7MM Seats By 2014 Translates Into ~1.3MM Seats Per Year Which Implies Annual Capex Of ~Rs 13K Crores T HE P ARTHENON G ROUP Annual Incremental Seats & Capex Required 1.5MM 1.3MM Incremental Seats 1.0MM 0.5MM 0.0MM Annual Incremental Capex Required Rs13K Crore 6

The NKC Has Recommended Expansion To 1500 Universities Nationally And Establishment Of 50 National World-Class Universities T HE P ARTHENON G ROUP From the National Knowledge Commission’s “Report to the Nation, 2006-2009”  “The higher education system needs a massive expansion of opportunities, to around 1500 universities nationwide, that would enable India to attain a gross enrolment ratio of at least 15 per cent by 2015. The focus would have to be on new universities, but some clusters of affiliated colleges could also become universities.”  “NKC recommends the creation of 50 National Universities that can provide education of the highest standard. As exemplars for the rest of the nation, these universities would train students in a variety of disciplines, including humanities, social sciences, basic sciences, commerce and professional subjects, at both the undergraduate and post-graduate levels. The number 50 is a long-term objective. In the short run, it is important to begin with at least 10 such universities in the next three years.” 7

We Have Surveyed 9 Indian Educationalists On Their Views On WCUs And Other Models To Address The Issues Of Higher Education In India T HE P ARTHENON G ROUP Participating Institutions Survey Participants n=9 100% Dr L K Maheshwari, Vice Chancellor BITS Pilani N J Yasaswy, Founder ICFAI 80% Jaypee Institute of Dr Yaj Medury, Vice Chancellor Percent of Total Technology Father Xavier, Former Principal Loyola College 60% Anand Sudarshan, CEO Manipal Dr Sunil Karad, Executive Director 40% MIT Pune P Sathyanarayanan, Vice Chancellor SRM Univresity 20% Dr Abhijit Mukherjee, Director Thapar University Vellore Institute of Sekar Viswanathan, Pro Chancellor Technology 0% Survey Participation 8

The Capital-Efficient Model Will Drive Enrolment Volume In India; The World-Class Model Will Be A Brand Builder For The Country T HE P ARTHENON G ROUP Research Exclusivity/ Reputation  Taxation of capital efficient universities World- funds world-class Class universities/research University  Over time a capital efficient university could become a world- class university Capital-Efficient University Quantity & Accountable Quality Inclusiveness Relevance/ Employability 9

What Does It Mean To Be A National World-Class University? T HE P ARTHENON G ROUP World-Class Collaboration With Infrastructure Industry/ Government/ Research Focus Other Universities Academic Reputation 10

What Other University Model Does India Require In Order To Meet Its Higher Education Needs? T HE P ARTHENON G ROUP Private Sector Access, Inclusion and Financial Autonomy Participation Equity A private, academically autonomous & capital-efficient institution will be able to address volume and accessibility issue of higher education 11

T HE P ARTHENON G ROUP World-Class University Capital Efficient University 12

~46% Of All Nobel Prize Winners Graduated From 12 Universities T HE P ARTHENON G ROUP Nobel Prize Winners by University From Which They Graduated 789 100% Other California Institute of Technology Yale University 80% Georg August University of Goettingen Ludwig Maximilians University of Munich Percent of Total University of California, Berkeley University of Oxford 60% MIT University of Chicago 40% 46% 20% University of Paris Columbia University Harvard University University of Cambridge 0% Nobel Prize Winners (Graduates) 13 Source: Nobel Foundation

Similar Set Of Universities Have A High Number Of Citations In US Patents And Provide Cutting Edge Research T HE P ARTHENON G ROUP Number of References in US Patents by Author’s University 4,000 Number of Citations in US Patents 3,679 3,575 3,366 3,357 3,287 3,000 2,341 2,000 1,702 1,389 1,206 1,000 604 514 0 Cambridge of Oxford Harvard California Institute of Technology Columbia Princeton University Johns Hopkins University University University of California, Berkeley University University University Yale University University of MI T of Chicago 14 Source: US Patent Collection

World-Class Universities Are Not Scalable; Average Enrolment At Leading Universities Is ~14K Students; Enrolment Growth Is ~1% T HE P ARTHENON G ROUP Total Enrolment at Ivy League Universities, 1995-2007 CAGR ('95-'07) 144,638 150,000 1% 141,685 1% 127,118 1% 124,212 1% Dartmouth College 0% Princeton University Enrolment Brown University 100,000 4% Yale University Cornell University 2% Stanford University Total Columbia 1% University in the 50,000 City of New York University of 1% Pennsylvania Harvard 0% University 0 1995 2000 2005 2007 15 Source: NCES

It Takes At Least ~50 Years To Develop A World-Class Institution T HE P ARTHENON G ROUP Top 200 World Universities by Age* n= 200 100% Above 400 Years 200-400 Years 80% Percent of Total 150-200 Years 60% 100-150 Years 40% 20% 50-100 Years Below 50 Years 0% By Age 179 Years Average Age 16 Note: *Quacquarelli Symonds Ranking

Non-Tuition Income (Grants, Income From Endowments, Etc.) Composes A Significant Portion Of Funding At WCUs; In India, Universities Rely Largely On Tuition Fees T HE P ARTHENON G ROUP University Funding by Source* $2,999MM $2,875MM $2,141MM $1,781MM $609MM $XXMM 100% Tuition Fees Tuition Fees Tuition Fees Tuition Fees Endowment Income Tuition Fees Endowment Endowment Income Income 80% Endowment Income Other Income Percentof Total Other Income Other Income Endowment Tuition Fees 60% Income Other Income 40% Research Other Income Research Grants Grants Research 20% Research Grants Grants Other Income Research Grants 0% Harvard Stanford MIT Cambridge Oxford Pvt Indian University University University University University Non- Tuition I ncom e as 25% 79% 87% 91% 93% 86% % of Total Note: Other Income includes revenues from publishing, royalties, gifts for current use, rental, health services and other university activities; * 17 Source: University websites; NCES

Most Of The Grants At WCUs Are Government-Sponsored T HE P ARTHENON G ROUP Harvard Operating Revenues MIT Operating Revenues by Source of Income, (FY06) by Source of Income, (FY06) $2,999MM $634MM $2,141MM $1,219MM 100% 100% Other Grants Other Income Other Income 80% 80% Endowment Other Grants Percent of Total Income Percent of Total Endowment Tuition Fees 60% 60% Income Federal Grants 40% 40% US Tuition Fees Research Department Grants 20% 20% of Defence Research Grants 0% 0% Harvard University Research Grants MIT Research Grants at Harvard at MIT Note: Other Income includes revenues from publishing, royalties, gifts for current use, rental, health services and other university activities 18 Source: University websites; NCES

T HE P ARTHENON G ROUP World-Class University Capital Efficient University 19

Private Self-Regulated Universities Are What Drives Enrolment Growth In China T HE P ARTHENON G ROUP Number of Students Enrolled in Higher Education 30MM (Degree & Diploma) India CAGR China 2000-2008 MM Students Enrolled China: 21% 20MM India: 7% 10MM 0MM 1993 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20