logo

Challenges ahead of private universities

Friday, 6 July 2007


Akbaruddin Ahmed
THE policies of the government and the University Grants Commission (UGC) have become an impediment to growth and development of the private universities. The UGC is responsible for monitoring the activities of both the public and private sector Universities. Unfortunately, the persons at the helm of affairs at the UGC are all from the public university background. They have no idea or concept of income generation, modern management style or application of technology for decision making and private sector management. They have come from a background where they have never faced a situation to generate income to meet the salaries and other operating expenses of the officers, staff and teachers. The entire funding of public universities is the responsibility of the government. The government is in fact heavily subsidising for each and every student of the public universities to the extent of Tk 45,000 per year per student. It will be fair, if a similar amount is also paid towards subsidising the private university operations.
All over the world, public and private universities are operating side by side. They are supplementing each other's efforts in the spread and development of higher education in their respective countries. Traditionally, it has been seen that the private universities are more expensive and also exclusive. Tuition fee structure is higher in private university and by and large it is rather a great honour and prestige studying in a private university where alumnis, corporations and philanthropists donate large sums of money for the development of these institutions.
It is needless to say that in foreign countries, undergraduates passing out from private universities generally command prestige and respect and have better job prospects. This position is about the same in case of Bangladesh as well. There are exceptions as in the case of IBA and BUET where a small group of students are enrolled in each bath from amongst the best students. It is, therefore, logical that on account of those meritorious students, these institutions have developed into centres of academic excellence. The dedicated teachers also deserve due credit for the good performance of the meritorious students.
The private universities are striving to maintain a better academic environment. Some of the earlier private universities have undoubtedly become pioneers in spreading quality education in Bangladesh. Private universities established later have also developed into reputable institutions. Private institutions managed through a trust is non-profit in nature and do not function with the prime objective of making profit. The main aim of such private university is to render service for higher learning for the greater benefit of our young men and women who can be well equipped with modern quality education to face the challenges of the 21st century. These institutions that are rendering nation-building services deserve recognition that will have a long range impact on the society.
The UGC and the Education Ministry should be pro-active and extend full support to the initiatives of the private universities. This is the least that they can do for spread of quality education. It must be noted that the UGC and/ or the government does not in any way provide financial or infra-structural support for the private universities where the students living in the same country do not enjoy a level playing field. The elite group of students who get admission to public sector universities enjoy all facilities at the cost of the tax payers. Unfortunately the private sector university students do not get a single taka from the government exchequer. This is ironical and unjust and contrary to human rights as a enshrined in the constitution. The UGC and the government has no moral right or obligation to interfere or control the activities of the private universities.
The UGC and the Ministry of Education do need to extend wholehearted support for the efforts of the private sector universities. They should under no circumstances become an impediment to the smooth operation of the private universities. Unnecessary harassment and pressure must be avoided under all circumstances.
In a recent communication with the 53 private universities and the government in respect of private university's own campus, the request was made to respond within a certain deadline i.e. May 29, 2007. Only four universities responded positively.
The requirement to have three acres of land to construct a private university's own campus in Dhaka city is quite absurd. In the Dhaka city, it is impossible to get three acres of land. Unless the government provides this land at a subsidised rate, no private university can ever purchase such a huge chunk of land at the exorbitant market rate.
Some private universities are in the process of completing their own campuses.
In many parts of the world, campuses in the city are basically accommodated in large buildings without sprawling lands. Land prices in cities are extremely high. A good large building can conveniently accommodate a private university campus.
In a competitive environment, all universities will try their best to improve academic standards. Depending on their marketing strategy, the success and reputation of all these private universities will depend on the delivery of quality education, permanent campus and healthy conducive campus environment.
Commercial banks should come forward to extend financing at confessional rates of interest. A special fund may be crated by the government and kept at the disposal of the Bangladesh Bank, that can be disbursed through the nationalised commercial banks(NCBs) or private commercial banks(PCBs) towards financing development of the private university infrastructure.
The government through its budgetary allocations can earmark Tk.5.0 billion(500 crores) as equity participation fund (EPF) that may be utilised by the private universities based on its requirements. This fund (EPF) can remain at the disposal of the Bangladesh Bank where it will be entitled to take up up to 49% of the equity of a private university with option to sell the same to the private university within eight years. Each year the national budget must have an allocation of similar amount as EPF that will trigger massive development in the higher learning process.
A separate regulatory body should be formed to monitor the activities of the private universities. The present UGC is alright for the government universities but has failed to stimulate the private universities as it is ill equipped to handle the special needs of the private universities. Dynamic personalities from the private sector should be drawn and a separate regulatory body for monitoring the activities of the private universities is needed. This body must have professionals from the private sector and be guided on principles that drive the private sector.
The Association of Private University should be re-organised to face the challenges and focus on greater unity and development. In a body they must meet the relevant government authorities and obtain approvals in extending their activities all over Bangladesh. Private universities with this flexibility and dynamic management must plan to extend its activities to all over Bangladesh.
Traditionally- government controlled education institutions, business, banks and industries have all been total failures. With corruption galore, government must loosen its grip and allow the private universities to thrive and operate to the best of their abilities in the greater interest of human resources development in Bangladesh.
Financing arrangements will allow rapid growth and development of private universities with full-fledged campus that can be set up at the district level and minor campus up to the upazila level. We need to spread higher education and take it to the doorsteps of the majority of the population. It should not be restricted to the Dhaka city dwellers only and a luxury for the other deserving students all over the country. The present discrimination is seriously hampering the growth of higher education in the country and we hope the UGC and the government will see a lot of sense in the aforesaid comments and observations and loosen its grip on the private universities so as to allow them to spread the higher learning process countrywide.
The myth that the private universities are charging higher tuition fees is a misconception. Most of the private universities are in rented buildings where the rent is calculated on per square feet basis. With air conditioned classrooms, computer labs, library facilities and high salary of the faculty members, the private universities find it extremely difficult to make ends meet. Exception may be in case of a few universities where the sponsors and the relatively high tuition fees may have helped generate the surplus funds to assist building their own campus. These few institutions are catering to the upper class and higher middle class section of the society. The remaining 50 private universities cater to the needs of the middle and lower middle income bracket guardians and their wards where scholarships, tuition fee waiver and financial aid are common phenomena and the students get reasonable benefits. Meritorious students as a general rule get substantial financial benefit that may even be 100% in exceptional cases.
(This is an abridged version of an article by the writer who is a "IT" & Financial Consultant. He is Director, Institute of Business Studies and Advisor, Darul Ihsan University. He can be contacted at [email protected])