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Transcript of University and Regional Development in Korea Bong Gun Chung Ministry of Education & HRD, Korea...
University and Regional Development
in Korea
Bong Gun ChungMinistry of Education & HRD, Korea
Presentation at World Bank BBLDecember 18, 2003
My Story Goes :
What is the Problem? Regional Balance As A National Agenda Three Reform Laws for Balanced Development Some Features of Higher Education in Korea Government Policies for Higher Education Problems of Local Colleges & University Strategy of Univ. Industry Research Cooperation Further Issues and Problems Concluding Remarks
Description of the Problem : Shooting the Two Runaway Rabbits
The disparity between Large Capital Area and local cities and provinces are exacerbated.
The problems of local universities, for instance, low quality and lack of students, are compounded by the enlarging disparity between Center and Local.
However, local universities are requested by the government to solve the problem of enlarging disparity by becoming key players for regional innovation system.
Is it possible that the faltering local universities could solve the worsening problems of the local community?
Regional Balance for Competitiveness
The regional balance issue was chosen as one of the pivotal campaign pledges of President Roh. - The inefficiency of concentration in LCA reaches critical point. - Investment in local area will be profitable in the long run.
The powerful Presidential Commission for A Balanced National Development was launched in March 2003. - Local industries combined with the knowledge and skill base of neighboring colleges and universities should be the engine for regional development. - The Commission has designed Regional Innovation System.
Backdrop of Problem Identification
Disparity between Center&Local
As of 2001, GRDP of Large Capital Area comprised 47.1% of the total.
The GRDP of LCA showed a temporary decrease in mid 1990s, reversed afterward.
As of 2001, the local tax revenue of Large Capital Area comprised 58.7% of total.
In this regard, the financial independence level of LCA was 84.1%, compared to the national average of 62.9%.
% GRDP
Concentration of Population& Wealthin LCA
population
GRDP
MoIR, 2003
Concentrated R&D Funds/Manpower
As of 2001, 62.7% of funds, 58.6% of manpower, and 66.7% of R&D institutions are located in Large Capital Area.
67% of university related R&D institutions and 60.1% of students are outside of the LCA, but funds and quality of manpower are not sufficient.
R&D public
R&D univ
R&D private
MoIR, 2003
The Debate on Concentration Effect
The concentration of population and industry in the LCA increases the national wealth,while the efficiency of
the investment is higher than that of the non-LCA
The concentration of population causes the diseconomy of urbanization and localization.
There are economy of urbanization and localization, however, it has been decreasing.
- The Localized Economy Index of 1982 as 1 decreased to
0.789 in 2001. (Reversed Cost Elasticity to no. of Employed) - The Urbanized Economy Index of 1982 as 1 decreased to 0.759 in 2001. (Reversed Cost Elasticity to Population.)
Concentration in Large Seoul Area(One quarter of
Population)
TransportationCrime
pollution
UrbanizationCost
Investment
concentration
DisparityConflictresource
misallocation
WeakNational
competitiveness
Low real estate priceGrowing DependencyWeak Local industryWeak Local market
Concentration ofPower elites
Hegemony ofUniversities
In LSA
Brain drainFrom local
Drain ofPopulation
capital
Effects of Brain Drain from Local
Chanseok Park, 2003.
3 Laws for A Balanced Development
The three presidential commissions for regional development have proposed laws that are titled as “The Ad Hoc Laws for Happiness of Korea.”
The Ad Hoc Law of National Balanced Development - Regional Councils and Special Budget Account for RIS The Ad Hoc Law of Decentralization - extensive delegation of powers of the central government
The Ad Hoc Law for Construction of New Capital - new Capital at the geographical center of the ROK
Specialization
Local univRHRD
SpreadInstitutions
DevelopingPoor regions
Master Plans of 5 Year Balanced Development
Special Budget Account
Coordination of Funds
Nat’l Council forBalanced Development
Regional Council forInnovation
The ad hoc Law for Balanced Development
Goal
Core Projects
5 year Plan
Funds&
Admin.
Balanced Development
Scheme for A Balanced Development
Scheme for Regional Development
Local Gov’t
Local Industries
RIS
LocalUniv.
NIS:Central Gov’t
Upgrade to innovateKnowledge&skill
Upgrade to produceHuman Resources
Venture&NewBusinesses
Improvementof Businesses
Regional Development
Self-sustainedLocalization
UIR
univ. industry research cooperation
the key element of RIS
Higher Education and Community
teaching
research
service
innovation
skill
Culture,community
Higher Education Region
OECD (1999) The Response of Higher Educational Institutions to Regional Needs, p.11
Some Features of Higher Education in Korea
Rapid Expansion, particularly since 80’s
Heavily dependent on private resources
Low level of investment in faculty and facilities
Hierarchy among colleges and universities
0
100
200
300
400
500
600
1967
1971
1975
1981
1985
1990
1995
En
tran
ts (
1,00
0)
0
200
400
800
1200
1600
2000
Tot
al E
nro
llm
ents
(1,
000)
Total Tertiary Enrollments
Entrants Total
Jr. College
Univ.
From Chun Shik Woo, 2002
Rapid Expansion
Increase in Enrollment
0
10
20
30
40
50
60
70
80
90
1970 1990 2003
KoreaUSAJapan
Korea: Statistical Yearbook of Education, each year
USA: Digest of Education Statistics 2001, NCES, Table 185
Japan: White Paper, MEXT, Heisei 13th year
2000
2000
Rapid increase since 1990 in colleges and universities
Reasons for the Rapid Expansion
High Rate of Return in Socioeconomic, Cultural, and Psychological Terms
Demand on college graduates accompanied by economic growth
Changes in the Control Policy of the Government - The 1981 Graduation Quota System with 130 percent Admission
- The 1994 Ease of Control on New Establishment based on the principle of free entry to market
Private Universities in Korean H.E.
location schools Public Private % of private
Large CapitalArea
2 year collegeUniversityGraduate school
4433
4862
482
92.393.993.6
subtotal 41 592 93.5
Local Area
2 year collegeUniversityGraduate school
1222138
9481
357
88.778.672.1
subtotal 172 532 75.6
total 213 1,104
Source: KEDI, MoE&HRD, Statistical Yearbook of Education, 2003, p. 604
Large share of Private Universities
Relative Proportions of Public&Private Expenditure on Tertiary Education
0
10
20
30
40
50
60
70
80
Korea USA Japan Britain Australia OECDave
publicprivatesubsidy
EAG, 2003, OECD, p. 220
Expenditure for Higher Education
Expenditure for Higher Education
total public private
Korea USAFranceCanadaGermanyU.K.Japan
2.62.71.12.61.01.01.1
0.60.91.01.61.00.70.5
1.91.8 0.11.00.10.30.6
Country mean 1.3 1.0 0.3
% of GDP, 2000
OECD, EAG 2003, p.208
An international comparison
Korea(1999) USA(1995) UK (1999)
PublicUniversity
PrivateUniversity
PublicUniversity
PrivateUniversity
Government funds 57.5 4.8 51.0 16.4 53.3
Education 37.6 0.6 48.5
Research 13.4 15.9 4.7
Tuition fees 42.5 66.8 18.8 43 11.9
Private gifts, grants, contracts 9.0 4.1 9.1 10.7
Endowment income 11.2 0.6 5.2
Sales and services 2.1 22.2 21.0 17.0
Other sources 6.1 3.3 5.3 7.0
Source: Lee and Woo (2001).
Sources of finance for H.E.
Dependent on tuition & fees
Number of Students per Professor
0
5
10
15
20
25
30
35
40
45
public private
totalLCAlocal
Jinwha Chung, KIET, 2003
Year 2002
Number of Pupils per Teacher
Primary Lower secondary
Upper secondary
Higher Education
Korea, 1999Korea, 1996JapanGermanyBritainUSA
32.231.221.221.022.516.3
21.925.517.116.417.416.8
22.523.114.112.412.414.5
38.526.311.512.318.514.0
OECD ave 18.0 15.2 14.1 15.3
Hyunsook Yu, KEDI, 2001, p.17
Year 1999
Competitiveness of Korean H.E.
1999 2000 2001 2002 2003
47/47 43/47 47/47 41/49 28/30
2001 2002 2003
19/47 17/49 16/30
World Competitiveness Yearbook, each year, IMD
World Competitiveness Yearbook, each year, IMD
Transfer of knowledge between univ and industries
Competitiveness of higher education
SWOT Analysis of H.E. in Korea
Strength Opportunity
Weakness Threats
High level of enrollment
R&D capacity potent
Government support
Knowledge based econ
Lifelong learning era
Environment
Lack of specialization
Evaluation system
Government control
Isolated from Industry
Recruitment crisis
Pressure to open market
Government Policy for H.E.
Quality Control Practices by per-student Indices - The approval of new establishment is usually made when the criteria of land, building, and faculty are met.
Control of Enrollment Quota - The Ministry of Construction and Transportation, not the MoE&HRD is
authorized to approve the increase of the colleges and universities in LCA. Provision of Financial Resources - Various types of earmarked budgets are provided by different government ministries to induce changes and reforms in universities.
Specialization of Schools - The MoE&HRD has been trying to introduce the specialization of colleges and universities such as research, education, and vocational training.
Quality Control by Indices
Humanities/ socsci
Basic/natural science
Engineering
Arts/athlete
medicine
Building space perstudent, m2
12 17 20 19 20
Number ofProfessorsper student
25 20 20 20 8
In order to secure the financial stability of schools, all private universities are mandated to possess the property for profit that is equal to the total amount of the annual revenue.
The minimum criteria for establishing univ.
Comparison of Increase in Schools
Number of schools
2 year college
university
Graduate
school
1981
LSA 42 42 90
local 90 47 61
total 132 89 151
2002
LSA 51 66 483
local 108 97 462
total 159 163 945Educational Statistics, KEDI, 1981, 2002
For the purpose of population control the increase of universities in LCA is half of those in the local area.
Financial Resources for H.E.
Operation&capitalFor public univ
MoE&HRD
Research funds etc
Other ministries
General purpose
Special purposeGov’t
In-Univ.
Privatesector
Operation&capitalFor public univ
Research fundsetc
MoIC
MoST
MoIR
MoAF
MoHS
FacilitiesEquipment
Research fundetc
Brain Korea 21Engineering
Int’l manpowerEducation reform
etc
Basic scienceModel univ
Research ctrScience Res CtrEngineering RC
Regional RCSpecialized Res
Techno ParkTech Incubator CtrNew tech ventureHeath/Medicine R
etcMoL
3.3
2.4
0.9
1.3
1.1
0.34
0.53
Gov’ttotal
OperationCapital
Private fund In-Univ
fund
Gov’tR&D fund
Outer-Univ.fund
2.5
3.3
0.8
0.30.1
1.1
Unit: trillion Korean Won, 2000
Source: Hyunsook Yu, KEDI, 2001
Specialization of Colleges&Universities
Medium levelprofessional
High level professional
Field technician
Local univ RIS Local voc collegespecialization
Brain Korea 21 Project
Univ Industry ResCooperation
Scholarship for engineering/science student
SpecializationLCA univ
Local Brain Korea 21
Voc coll tailoredcurriculum
Voc coll in LCAspecializationbasics
Bottom Up
allocation
Top downallocation
2,637
(31%)
3,965
(46%)
1,980
(23%)3,150
(37%)
5,432
(63%)
Unit : 0.1 bil Korean Won, 2004
Specialization of schools
present future
total LCA local total LCA local
Research
Education
Field
16
82
9
12
23
1
4
59
8
31
29
47
19
9
8
12
20
39
107 36 71 107 36 71Survey from 107 engineering colleges, including 11 polytechs
KIET, 2002 (from Jung Jin Wha, 2003)
Specialization that schools want to be in future
Current State of Local Universities
Wide Spread Unpopularity - As of 1999, 62.5 percent of the top 5 percent of Korean SAT enter the universities in LCA of which accommodation ratio to the total is 32.5 percent.
Increasing Vacancy - The under-recruitment of LCA schools is 1.5% compared to that of 7.5
in local areas. Increasing numbers of local universities are losing students.
Low Level of Employment Rate - In mid 90’s the employment ratio of LCA schools was 70.9% compared to
57.0%. After the foreign currency crisis, they were 60.8% and 56.0%.
Problems
Current State of Local Universities
Causes of the Problem
Socioeconomic Gap between LCA and Locals Enlarged
Concentration of Decent Jobs in LCA
Top Down Fragmented Projects by Central Government
Lack of Leadership in Regions for Univ. and Industry
Low Investment in Local Colleges and Universities
Easy Approval of Establishment of Universities
Shooting the Two Rabbits
Reinforcing Univ. Industry Research Cooperation
Customer Oriented Education & Training
R&D for Production Technology Innovation
Technology Transfer and Advice to Firms
Assistance to Incubate New Businesses
Successful UIRC brings in regionaldevelopment
Univ. Industry Research Cooperation
Insulation between Univ. and Industries - Univ. : academicism and supplier centeredness - Industry : distrust on the competency of univ.Problems in Funding System and Practice - insufficient amount with irregularity - coordination among different funding sources - researcher’s needs rather than those of industries - equipment for research rather than manufacturing
Diagnosis of Problems
Problems of C&I in Engineering College
description firmsuniversity
LSA Local
Insufficient general educationInsufficient basic educationTheory oriented educationOutmoded curriculumInsufficient case studiesPoor facility for practice& experimentInsufficient exchange btn univ&industryLack of field experience of facultyLack of effort by faculty to innovatePoor academic management
2.842.762.403.163.353.213.193.073.022.71
2.692.422.222.502.923.393.222.502.252.11
2.592.542.462.722.943.113.272.592.412.30
Number of cases 625 36 71
4 point Likert scale 1 = not serious, 4 = very seriousSource : Jinwha Chung, 2002.
Complaints by Firms on Univ Education
Federation of Korean Industries, 2002. 12
87%Practice&field education
75%Creativityeducation
68%Field
experience offaculty
70%Diverse
instructions
72%Curriculum
update
Geography - Universities that are located inside industrial complex - Campuses that are clusterized for industriesEquipped with High Quality Facilities - Attractive to neighboring industries to participateOpenness of the Universities - Exchange of personnel between univ and industries - Curriculum tailored to the needs of industries - Emphasis on the technology that industries demand
Univ. Industry Research Cooperation
Factors for Success from Case Studies
Fostering UIR-centered Universities - select & concentrate on 10 Hub Universities for UIR
School Enterprise in Public Universities - sales of the goods and services produced in classes
Campus Head Quarter for UIR Cooperation - control all UIR related activities, programs, funds
Reward System for Professors - favors in faculty evaluation, Patent fees
Curriculum Development by Business Requests - specialized departments and courses
Highlights of New UIR Cooperation
Issues and Problems
Survival of the Fittest Funds are concentrated to selected local universities. How many weak ones should perish? Ironically, balanced development causes inequality.
Insufficient Resources The budget increase for local universities are incremental, so that the funds should be concentrated rather than spread to more AMAP.
Inefficient Coordination at Center & Local The Ministries insist on funding of their own respective programs at schools. Waste and duplication are likely at the center and local.
Reverse Discrimination to LCA The schools in Large Seoul Area are disadvantaged due to the special support to the local ones as the total amount of funds are limited.
Hegemony Conflicts in Local Community Deans, presidents, mayors, governors will compete for RIS leadership
Insufficient incentives for firms to participate The policy measures for UIRC are tilted to univ compared to individual firms to take part in the cooperative relationship.
Issues and Problems
Issues and Problems
values academicism vocationalism
Nature of higher eduFaculty evaluationManagement of schoolIncentive structure
Pure science, basicsAcademic achievementNon-profitEquity
Applied scienceService, participationProfitReward & punishment
Value conflict in reinforcing UIRC
Job stability of faculty unfavorable to UIRC The job stability and the inflexible labor market of Korean professors are likely to be unfavorable to UIRC as they are not motivated to seek for out-bounding activities.
Some Facts about UIRC
institutions traits
UniversityPolytechnicVocational college
New technology development, consulting, designEquipment, technical guidanceInternship, customized curriculumMoE&HRD, 2003
What companies benefit from UIRC
Personal acquaintance
Through gov’t projects
Searching for themselves
etc
44.6 19.3 27.9 8.2
How companies enter UIRC
MoIR, 2003
%
Concluding Remarks
Policy makers should always keep in mind that :
“Isn’t UIRC Panacea to the complicated problems of the deteriorating local universities and the disparity between center and local?”
What should you do if it shouldn’t be one?
Thank you!