Monday, May 07, 2007

Govt mulls university fund cuts / But education ministry, govt council at odds on promoting competition

A disagreement between the Council on Economic and Fiscal Policy and the Education, Science and Technology Ministry over how to allocate government subsidies to state-run universities has raised questions about the extent to which competition can be introduced into the education system.

The government council said funds should be allocated based on the efforts each university has made to reform, or their academic achievements. However, the ministry, backed by the country's universities, counter that academic results are not always easy to assess.

The dispute was triggered by a report submitted on Feb. 27 by four members of the council from the private sector, including Japan Business Federation (Nippon Keidanren) Chairman Fujio Mitarai.

The report said, "The method of allocating government subsidies for management of state-run universities must be drastically changed to reward effort and achievements."

Government subsidies are a major revenue source for universities to cover labor costs and educational and research budgets. About 1.2 trillion yen in management subsidies are paid annually to 87 state-run universities across the nation. The amount allocated to each of the universities is being reduced by 1 percent each year from fiscal 2004, when state-run universities became independent entities, to fiscal 2009.

The report proposed that from fiscal 2010, the method of allocating the subsidies should shift from a uniform reduction to one based on competition.

However, at a convention of the Japan Association of National Universities held on March 8, presidents of state-run universities expressed strong opposition to the recommendations in the report. One of them said, "Education will be ruined if universities are evaluated only by results that are easy to understand." Another commented: "Management subsidies are necessary for universities to survive. If the amounts are cut further, more universities will go bankrupt."

In response to these concerns, Education, Science and Technology Minister Bunmei Ibuki argued for a review of the proposals for cuts in the subsidies at a meeting of the council on April 17, pointing out that the Cabinet of Prime Minister Shinzo Abe was supposed to be prioritizing educational reforms.

But Finance Minister Koji Omi voiced his support for the report. "Is it really necessary to maintain 87 state-run universities?" he asked.

On the principle of introducing competition between education institutions, the ministry in 2001 hammered out a policy of drastic realignment of higher education, including possible consolidation of state-run universities and the introduction of performance-based management systems, in a report on structural reform of universities.

As a result, the number of state-run universities has fallen from 99 in 2002 to 87, and evaluations of universities are being conducted by third parties. But reforms have so far been voluntary, with each university allowed to decide what practical measures it will implement.
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Private sector criticism


Council members from the private sector have been critical of the reforms so far introduced.
International Christian University Prof. Naohiro Yashiro said, "It's not enough to expect each university to improve its own educational quality."

Mitarai commented: "Universities in provincial regions are all aiming to be the same thing, with a large number of faculties. They haven't been able to utilize elements unique to their region."

Concerns over the state of the country's universities have been exacerbated by rapid advances in India and South Korea, both of which are striving to enhance their credentials in the technology sector. Many critics believe Japanese universities are failing to attract talented researchers and students from other countries to undertake advanced studies in Japan.

Takatoshi Ito, a graduate school professor at Tokyo University, and a representative of the private sector on the council, said, "The government should encourage universities with potential to hone their capabilities further." He argued that more money should be invested in universities that can compete with prestigious institutions overseas.

On the issue of state-run universities in provincial regions, Ito said he believes drastic realignment or consolidation should be enforced if necessary.

Following submission of the report, the ministry conducted a simulation, in private, on what would happen if competition was introduced through changing the allocation of management subsidies.

According to sources in the ministry, the results shocked many, with as many as 47 likely to be forced to close.

Many state-run universities in provincial regions play a key role in fostering teachers and doctors for their respective region, and also conduct joint research and development with local small and midsize companies with weak R&D capabilities.

Wakayama University President Akira Oda said he was troubled by the idea of diverting money from regional institutions. "Letting universities in provincial regions collapse could lead to a widening gap between large cities and provincial regions," he said. Some researchers also believe introducing competition could result in declining standards in basic scientific research and history, where strong results take longer to realize.

Four national research organizations, including the Japan Association of National Universities and the National Institute of Natural Sciences, submitted a letter last month asking the education minister to rethink the management subsidy issue.

"If funds are provided only to studies that can produce outstanding results in short periods, budding examples of excellence in applied studies will be lost," the letter said.

"If competition is brought into basic research fields, only high-profile studies will get any attention, which could distort the basics of academic studies," Gunma University President Mamoru Suzuki said.

(May. 6, 2007)
http://www.yomiuri.co.jp/dy/national/20070506TDY03003.htm

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