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Showing posts from July, 2011

Indian B-School Bubble?

Are Indian B-schools in a bubble as some project about American higher education? (Here is my EDU article). Schumpeter in his recent article in entitled “The latest bubble?” in the Economist, argues that American higher education bubble is already beginning to burst. Specifically, for business schools he concludes “Middle-ranking schools are seeing a significant drop in demand, which they have masked by taking weaker candidates, but which will eventually force them to start cutting back.” He also cites Peter Thiel, co-founder of PayPal who “believes that higher education fills all the criteria for a bubble: tuition costs are too high, debt loads are too onerous, and there is mounting evidence that the rewards are over-rated.”

With more than 3,000 B-schools, India has three-times the number of B-schools as compared to the US. This difference becomes stark considering that the size of the Indian economy is one-tenth of the US economy. The end result is poor quality of education, overs…

The New Wave of Branch Campuses

Branch campuses are in news again with some optimistic and others with pessimistic tone. However, this time it is more than Gulf region and also has some big names involved.

After mega launch of NYU, Abu Dhabi, Duke's plans for China and Yale's plan for Singapore are being closely watched. However, both of them have faced resistance from faculty. While Yale faculty is concerned about academic freedom, Duke's faculty is concerned about financial feasibility.

A report in University World News noted "Concerns over the cost of a new branch campus for Duke University in Kunshan, near Shanghai, which is set to open in 2012, has led to vocal opposition from Duke faculty." It adds that "Duke is spending around US$37 million on a new campus in China when more than US$125 million has been lopped off its own budget in recent years, and arts and humanities are facing a $3 million budget deficit this year. Some $5.5 million is being spent by Duke to ensure the facility…

IIPM: Mocking at Quality of Indian Higher Education?

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IIPM and Arindam Chaudhuri have been synonymous with advertisements shouting "Dare to think beyond the IIMs!" (Here is Hoot's analysis on IIPM's advertisements). It took audacity (often to the limit of brashness) and entrepreneurial grit to equate oneself with big brands like IIMs. IIPM enrolls more than 5000 students across 8 campuses with more than 400 faculty members.
So, what's the issue? The issue is better understood if you see the advertisements of IIPM like below. What's the brand "promise" to a prospective student? They are most likely to see "MBA/BBA/EMBA" along with major brands like Cornell and Stern.

However, FAQs on IIPM website mentions: "1. Does AICTE/UGC [Indian regulatory bodies] recognize IIPMs programme in planning and entrepreneurship?
No. IIPM has never sought recognition from any statutory bodies and is proud of its world class course contents. Students bothered about statutory recognition of IIPMs programmes n…

In Search of Self-financed International Students

The number of High New Worth Individuals (HNWIs) have increased by 21% and 12% for India and China respectively, according to 2011 World Wealth Report. India added 26,000 new HNWIs and China added 58,000 in one year. HNWIs are defined as those having investable assets of US$1 million or more, excluding primary residence, collectibles, consumables, and consumer durables.

This expansion of wealthy class means number of self-financed international students may also grow by a healthy double digits. In times of severe budget cuts, this may present a very lucrative opportunity for many public institutions. The expansion of HNWIs is just one indicator of increase of very wealthy, however, self-financed international students may come from the immediate next segment under HNWI, which is even bigger in size.

Both China and India have a hyper-competitive environment to gain admissions into good quality institutions and quality of institutions falls precipitously beyond few top institutions. Ma…