Development of an International Education Strategy for Australia
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1 Development of an International Education Strategy for Australia Submission to the International Education Advisory Council June 2012 TAFE Directors Australia Tel: memberservices@tda.edu.au
2 Introduction and summary of recommendations TAFE Directors Australia (TDA) welcomes the opportunity to contribute to the development of an international education strategy for Australia. TAFE is Australia s largest provider of skills training with approximately 1.8 million enrolments per annum. In this capacity TDA wishes to emphasise the political, economic and strategic power of education in transforming Australia s relationships with countries throughout the world. On this basis, TDA makes the following recommendations for inclusion in the International Education Strategy: 1. Technical vocational education and training is recognised as one of the highest educational priorities for many countries, equal to the importance of university education, and Australian capabilities are prioritised for support 2. The Council of Australia Governments commits to establishing and supporting a permanent role for the International Education Advisory Council, with sub groups focusing on: a. the international student program b. student mobility and transnational education c. bilateral and multilateral relations 3. A whole of government policy on international education is articulated. This education services vision should recognise the strengths of each education sector in Australia, the importance of industry links, and the need for ongoing research and development. Such a policy will encompass Australian education services provided as: a. capacity building through aid and development initiatives b. policy development through bilateral and multilateral relations c. trade and investment through fee for service contracts and enterprise. 4. The sustainability and growth of international education services, including the provision of education for overseas students, is supported by specific research and robust quality assurance. TDA submission to the International Education Advisory Council - June 2012 Page 1 of 15
3 Recommendation One: Technical vocational education and training is recognised as one of the highest educational priorities for many countries, equal to the importance of university education, and Australian capabilities are prioritised for support As noted in the Australian Prime Minister s closing remarks to the Economic Forum held in Brisbane on 13 th June 2012: Further; We ve heard a lot about the need to focus on productivity and lifting productivity growth. And we ve heard about the importance in developing human capital, in developing our people. The importance of the education system, the importance of maths and science, of skills development or research and development. As Minister Emerson, the Minister for Trade and others mentioned, if Australian businesses participate in global value chains they can be producing for the vast and rapidly growing markets of Asia instead of relying on our relatively small domestic market. This economic transformation would be a big boost to both Australian manufacturing and to all the service industries that can participate in value chains. My Government is willing to support this transformation, integrating our manufacturing and services industries more fully into the opportunities in the economies in our region. The Government will deploy the expertise and resources of Austrade and the Export Finance Investment Corporation in encouraging the participation of Australian manufacturing and service businesses in global value chains. We will also ensure the Export Market Development Grants Scheme is helping to capture these new opportunities for Australian export businesses. 1 These sentiments echo two specific recommendations by the Hon Michael Knight in his Strategic Review of the Student Visa Program 2 : Recommendation 35: That the highest quality Australian VET providers including TAFEs, be encouraged to explore offshore market opportunities Recommendation 36: That the Australian Government, through programs such as the Export Market Development Grants Scheme and other forms of assistance, support high quality Australian vocational education providers in expanding their offshore training services. 1 accessed 14 June Strategic Review of the Student Visa Program 2011Report; Australian Government TDA submission to the International Education Advisory Council - June 2012 Page 2 of 15
4 TDA supports the Prime Minister s focus on transforming global value chains and supports the recommendations from the Knight Review, however we wish to emphasise the following: 1. TAFE institutes, as government owned entities, are not eligible for the EMDG 2. Australian industry and businesses are slow to engage with the VET sector in jointly pursuing trade and investment opportunities offshore 3. Very limited assistance is currently provided to TAFE institutes in pursuing offshore opportunities. For example, Austrade charges TAFE and other providers for attendance at their offshore expositions and trade fairs and detailed business intelligence is provided on a fee for service basis. TDA does acknowledge Austrade and Australian Education International have provided our members and our own organisation with valuable guidance, advice and consultations. In some cases, funding has been made available to support specific initiatives. However what is currently lacking is a coordinated and comprehensive international engagement strategy which draws together these efforts, along with the targeted programs funded through AusAID and the initiatives of State and Territory governments. The Colombo Plan, established in 1950, is often cited as the first initiative aimed at promoting intergovernmental efforts to strengthen economic and social development of member countries in the Asia-Pacific Region. The primary focus of all Colombo Plan activities is on human resources development. A speech by Secretary General, Dato' Patricia Yoon-Moi Chia on 5 July 2010 in Colombo stated: the current Colombo Plan looks very different since our restructuring and revitalization in As we continue to build upon our past successes, the new Colombo Plan uses cooperation among developing member countries or South-south cooperation between the developed member countries and developing member countries, to underpin all our activities. Since our restructuring in 1995, we have now provided 16,082 scholarships to 23 member countries for both long-term and short-term training programmes. Much of Australia s engagement in Asia has followed this pattern with major investments in education scholarships, research, and aid and development projects. A large proportion of this investment has been in the higher education and post graduate sector. While supporting such investments, TDA seeks a stronger focus on technical vocational education and training (TVET) as a means for furthering Australia s international engagement. Australia s TVET system is regarded as one of the best in the world. The pathways to employment, career and personal advancement and further education are well defined and supported. With a focus on industry engagement, competency-based standards, nationally recognised qualifications and quality assurance, Australian expertise is highly regarded and valued. TDA submission to the International Education Advisory Council - June 2012 Page 3 of 15
5 Despite internal debates about the effectiveness of regulation, the flexibility of a competency-based approach, and funding and governance models, many countries look to Australia as a model on which to base their own development of a TVET system. In fact, TDA would argue such internal debates are a strong indication of a healthy and robust system. There is a significant movement throughout the world towards establishing or revitalising TVET. This movement extends beyond national boundaries as evidenced by recent initiatives through the East Asia Summit in developing regional quality assurance frameworks, consideration of mutual recognition of qualifications and the scoping of a regional network of TVET providers. TDA would like to offer further insights into the importance of TVET with the following snapshots of several countries and regions: China While China is seen as a rising power in the near future, projections through to the end of the 21 st century indicate some important changes to their demographics: China had 20% of the world s population in 2000 but will constitute less than 10% by Africa will have over 33% of the world s population by 2100 China s population is rapidly ageing where they currently have 8 workers for every retiree but in 20 years the ratio will drop to 2 for every retiree. Australia currently has 5 workers for each retiree Fertility rates in China are dropping, particularly in the cities 3 This year marks the 40 th year of Australia China diplomatic relations. The People s Republic of China now has one of the most advanced and internationally recognised higher education systems in the world. With over 1,000 universities and over 2,300 higher education institutions, the priority for most Chinese families is to gain entry into one of the top 100 universities in China rather than seek an overseas qualification. This is not to say an overseas qualification is not valued; one in 10 students in an Australian university is from China. There are currently over 300,000 Chinese students studying offshore and this number is expected to increase by 10% for each of the next ten years. However, the focus of the Chinese government is very much on developing their TVET institutions which number over 1,100. Major infrastructure investments are being made by the central government which has identified up to 200 tertiary vocational training institutes for significant capital and human resource development. 3 Statistics provided by Iain Watt, immediate past-minister Counsellor (Education) to Beijing, at a briefing in Canberra on 23 February 2012 TDA submission to the International Education Advisory Council - June 2012 Page 4 of 15
6 China is also promoting its own capabilities in TVET through major investments in training facilities and capacity building in other countries. For example, $USD133m has been provided to the Government of Kenya to upgrade their universities of technology and technical training institutes. The first phase of this project commenced in March China is the number one source country for international students studying with Australian TAFE institutes. What is of particular interest is that of the 53,954 Chinese students commencing their vocational studies with public providers in 2009, 50,253 were studying in China 4. The figures have remained relatively stable since then. Students in China study both Chinese and Australian qualifications through partnership agreements between Australian TAFE institutes and local Chinese institutions. The first major initiative between Australia and China in the TVET sector was a $20m investment between 2002 and 2007 by AusAID in Chongqing s Vocational Education and Training project. Since then TDA has established formal relations with the China Education Association for International Exchange (CEAIE) which includes: Five TAFE director missions to China since Chinese college directors participating in the Vocational Education Leadership Training (VELT) program, a four week professional development program in Australia, hosted by 19 TAFE institutes and coordinated by TDA A joint research forum in Chongqing in 2010 with a follow-up scheduled for the second half of 2012 A joint Skills for Sustainability conference in Beijing scheduled for October 2012 A pilot program to establish a student exchange program for Australian and Chinese vocational students. These initiatives have created immense goodwill and support further partnerships between Australian and Chinese institutions. While TDA recognises the support of the Commonwealth government and its agencies, there has been limited financial support for these initiatives, with the exception of the Chongqing TVET project. Most of the funding has in fact been provided by the PRC. 4 AEI Research Snapshot, July 2011 TDA submission to the International Education Advisory Council - June 2012 Page 5 of 15
7 TDA firmly believes Australia s engagement and relations with China can be greatly enhanced with a focus on tertiary education; universities for their aspirational enrolments and TVET for skills development. This stronger commitment should support the development of the TVET sector in China, and the broader Asian region. In addition to existing scholarship and small grant programs such as the International Education Policy Experts Program, this commitment should include: support for Australian industry to invest in training equipment for Chinese vocational colleges with additional training support provided by Australian training providers support for Australian industry skills councils to introduce and customise Australian training standards support for Australian researchers to work in cooperation with Chinese researchers to collect and analyse data on vocational training delivery and industry engagement Support for a reciprocal Vocational Education Leadership Training program, targeting TAFE institute senior managers and to be delivered in China in association with CEAIE. Indonesia With assistance from the Federal government and support from the Indonesian Ministry of Education and the Ministry of Manpower and Transmigration, TDA was recently commissioned to research industry linkages with Indonesia s 31 polytechnics. Results of the survey were presented at a joint Australia-Indonesia Ministry of Education workshop in Jakarta in May 2012, and the key findings included: The most popular method of engagement with industry is the provision of internships for students. Seeking industry input into improvements to curriculum was also highly favoured Many Directors reported they are engaging with international partners via the exchange of teachers to receive training Almost all are seeking more international partnerships, mostly in the areas of exchanging teachers and exchange of students for internships. The countries most favoured were Australia (No 1), followed by Germany, US and other Asia neighbours. A similar survey of Indonesian and Australia industry and businesses is due to be carried out in July 2012 and other initiatives between our two countries are currently being considered. TDA submission to the International Education Advisory Council - June 2012 Page 6 of 15
8 India The Indian Government is in the early stages of transforming their TVET sector with the establishment of the National Skills Development Corporation. This body is charged with promoting skill development by catalyzing creation of large, quality, for-profit vocational institutions. It provides viability gap funding to build scalable, for-profit vocational training initiatives. Its mandate is also to enable support systems such as quality assurance, information systems and train the trainer academies either directly or through partnerships. 5 To date, TAFE institutes have primarily engaged with India through partnerships with industry rather than with individual training providers. Through consultative mechanisms such as the Australia India Education Council (AIEC), established in 2011, TDA continues to promote and advocate for closer relations between our two countries with a focus on skill development and capacity building. A two day AIEC conference in Perth in early July 2012 will further enhance engagement with India. India has long been a major source country for international students in the TVET sector, although public TAFE institutes have a relatively small cohort compared to the private training sector in Australia. For example, 42,047 students from India commenced their studies with private providers in 2009 compared to 2,774 in the public sector 6. There is no doubt the activities of a small number of providers in recruiting international students with the false promise of easier pathways to permanent migration have created tensions and questions over the integrity of Australia s international education program. TDA emphasises these activities have been greatly curtailed through legislative and regulatory action, and with the support of the education industry itself. Japan While Japan is considered to have a well-developed economy, a report published by the Australian Trade Commission 7 indicates Japan faces a critical skills deficiency in its workforce there is a widespread recognition that Japan lack globally-literate human resources capable of negotiating the challenges of international business. The report suggests a significant opportunity for a new model of engagement in the Japanese education and training market for Australian providers. Similar opportunities in the corporate sector are emerging in South Korea AEI Research Snapshot, July The Challenge of building a globalised workforce; Australian Trade Commission, April 2011 TDA submission to the International Education Advisory Council - June 2012 Page 7 of 15
9 Asia Pacific region The most significant achievement in TVET has been the establishment of the Australia Pacific Technical College, funded by AusAID and managed by an Australian TAFE consortium. Now in its second four year period of operations, the college is based in four locations; Fiji, Papua New Guinea, Solomon Islands and Vanuatu. The design principles provide an excellent model for Australia s engagement in the broader Asian region: to enhance rather than compete with existing training at local institutions to partner with other Pacific training and education providers to build on existing strengths within the region to understand the local industry s training needs and base courses on industry demand. Our member institutes are active throughout Asia with particular emphasis and current engagement with Taiwan, Malaysia, Singapore, Vietnam and Thailand. United Kingdom The UK is one of Australia s main competitors in the international education market. Their British Council is often cited as a good example of a central agency which co-ordinates, funds and promotes the services of their education providers. However, in a recent paper developed by the UK Association of Colleges 8, the authors highlight the lack of a national strategy for vocational education and training (further education) in the international education market: There has been a lack of coordination from the top, including among government departments. There has been no over-arching strategy for the whole of the UK; for every facet of what is known as further education in this country and VET internationally; and for markets at home and overseas 9 The paper recommends the adoption of a single brand, UK VET, to promote their sector. South America TDA currently manages a technical skills scholarship program fully funded by the Government of Chile. By the end of this year, over 140 students will have completed a technical skills training course with one of 15 TAFE institutes across Australia. Our TAFE institute members are also active in Brazil, Colombia and Argentina, primarily through the recruitment of international students 8 UK Vocational Education and Training Towards a comprehensive strategy for international development, May Ibid, page 5 TDA submission to the International Education Advisory Council - June 2012 Page 8 of 15
10 Africa (sub-sahara) At a meeting in Mombasa, Kenya in May 2012, the Commonwealth Association of Polytechnics in Africa convened a two day conference where significant challenges and priorities were discussed among the seventeen member countries. As well as presenting a keynote address to the conference, TDA also ran a two day workshop for five Commonwealth countries including Kenya and The Gambia. The overriding priorities raised at both events were international partnerships and capacity building for TVET institutions to ensure they meet local industry needs. Recommendation Two: The Council of Australia Governments commits to establishing and supporting a permanent role for the International Education Advisory Council, with sub groups focusing on: a. the international student program b. student mobility and transnational education c. bilateral and multilateral relations We need a coordinated and coherent approach to policy development. To date, there have been a number of whole of government initiatives in international education, including COAG s International Students Strategy for Australia and two major reviews into protecting the integrity and quality of provision for international students; the Baird and the Knight Reviews. A permanent International Education Advisory Council, with appropriate representation from government agencies and key stakeholders including peak bodies for Australian education providers, is essential for developing a cohesive approach to policy development. TDA submission to the International Education Advisory Council - June 2012 Page 9 of 15
11 Recommendation Three: A whole of government policy on international education is articulated. This education services vision should recognise the strengths of each education sector in Australia, the importance of industry links, and the need for ongoing research and development. Such a policy will encompass Australian education services provided as: a. capacity building through aid and development initiatives b. policy development through bilateral and multilateral relations c. trade and investment through fee for service contracts and enterprise The overall approach to international education as a strategic lever for enhancing and protecting Australia s interests is split between multiple agencies: Aid and Development rests primarily with AusAID through the Department of Foreign Affairs and Trade, although many education providers access funds through other donor organisations and respond to regional priorities set by groups such as the Asia Development Bank, the World Bank and the USA s Millennium Challenge Account. Included in AusAID s portfolio are education scholarships under the Australia Awards, including Australian Leadership Awards, and Australian Regional Development Scholarships. A separate education scholarship program, the Endeavour Awards, is administered by the Department of Industry, Innovation, Science, Research and Tertiary Education (DIISRTE). A number of other Federal Departments offer funding for aid and development programs with an educational focus; for example the Department of Agriculture, Fisheries and Forestry manages an Australia-China Agricultural Cooperation Agreement with funding for study tours and exchanges. Trade and investment is promoted by the Department of Foreign Affairs and Trade through Austrade, with a focus on branding and promotion of Australian education, and the identification and support for offshore provision of education services. Austrade also supports overseas investment in the Australian education sector. Austrade offices throughout the world are also making links between industry and education sectors recognising synergies between investment, workforce planning and workforce development. There are also a number of very active Australian industry and business councils and chambers of commerce with formal bilateral groups such as the Australia Indonesia Business Council. These groups host trade missions, joint working parties and conferences which have a strong influence on policy and engagement. TDA submission to the International Education Advisory Council - June 2012 Page 10 of 15
12 Some State and Territory governments are also actively engaged in promoting the services of their locally based education providers through various departments such as education, trade, investment and regional development. Bilateral and multilateral relations DISSRTE, through their International Cooperation Branch, has carriage for bilateral and multilateral agreements and initiatives in education. DFAT also plays a key role through the negotiation and establishment of Free Trade Agreements, many of which create opportunities for international engagement and the exchange of educational services. DFAT also leads ministerial level agreements such as a recent Memorandum of Understanding between Mongolia and Australia specifically focused on vocational education and training. TDA actively engages with Australian government representatives throughout Asia and often holds briefings with representatives from AusAID, DFAT and DIISRTE at post. Stakeholder consultations and engagement There have been a number of attempts by the Commonwealth to effectively engage with Australian education stakeholders. A quarterly meeting of peak bodies, Commonwealth government agencies and state and territory governments, named the Government Industry Stakeholder Consultation (GISC), was replaced in 2011 with an Education Visa Consultative Committee with an obviously narrower focus. DIISRTE holds an annual meeting of their locally based officials and offshore education counsellors where stakeholders are invited. Proposed and planned legislative and regulatory changes are often canvassed with key stakeholders. Submissions and representations are also sought from key stakeholders for various committees, reviews and inquiries, including Senate and House of Representative inquires and standing committees. All of this activity is carried out with no overarching policy for international education which encompasses international student recruitment and support, promotion and trade in educational services, bilateral and multilateral agreements and initiatives, aid and development, and strategic engagement with industry. This is essential for several reasons: The wider community in Australia needs a clearer understanding as to why our education providers engage in international activity, including the recruitment of international students and the benefits such activity brings to Australia. Such benefits include improved relations with countries, economic benefits to Australian communities and industry, and improved facilities and resources for local students TDA submission to the International Education Advisory Council - June 2012 Page 11 of 15
13 Australian industry needs to have a better understanding as to how education can forge relationships and open up new opportunities in other countries Countries need to have a clearer understanding as to the motivations and expectations of the Australian education sector as they seek to develop and expand relationships. TDA recognises the Australian education sector is diverse and with different levels of commitment to international engagement. Schools predominantly seek a level of engagement which exposes Australian students to other cultures and people and creates opportunities for overseas students to experience Australian society and culture. Universities have long championed the benefits of cross cultural engagement, the deepening of relationships through alumni, and the advancement of research. For TAFE institutes, the motivation for international engagement was often a commercial one, with the aim of achieving a reasonable return on investment. In the case of TAFE institutes across Australia, this return remains within the public purse. However the focus has now shifted to becoming truly international institutions with programs dedicated to student and teacher exchanges, partnerships with overseas institutions and joint initiatives with Australian and international industries. TDA submission to the International Education Advisory Council - June 2012 Page 12 of 15
14 Recommendation Four: The sustainability and growth of international education services, including the provision of education for overseas students, is supported by specific research and robust quality assurance. Australia is the third largest destination for international students and a preferred supplier of education services, with TAFE as an export leader, and this $15billion industry remains vibrant and with great potential for further growth. A sustainable market To date, there has been limited research into what exactly is a sustainable market for international student services. By default, the size of the market is governed by approved capacity limits for individual providers. Through the registration process (CRICOS) which is managed by DIISRTE, each provider indicates their capacity to provide education services and are given a limit on the total number of international students they can issue enrolment offers. This data is recorded on a database (PRISMS) and the system prevents individual providers from registering enrolments above their approved capacity. It is our understanding the Department of Immigration and Citizenship (DIAC) also monitors individual provider capacity to ensure student visas are not issued where full capacity is reached. The capacity limits are primarily based on the individual provider s physical facilities and resources. To date, there has been little or no consideration given to the total approved capacity for all providers in specific geographic locations and the impact on access to: Affordable accommodation and food Public transport Part-time employment Relevant work placements Health services Other community services Personal welfare and safety Interaction with local students and local communities. TDA strongly recommends a commitment to on-going research, particularly in the area of sustainable growth of the international student market, as a key part of the international education strategy for Australia. TDA submission to the International Education Advisory Council - June 2012 Page 13 of 15
15 Quality assurance Australia s ability to promote international education is significantly affected by our reputation for delivering a high quality service and protecting the national interest. We need an effective quality assurance framework which ensures: provider compliance with regulations and standards continuity of service low immigration risk. We now have three agencies with direct responsibility for each element: 1. National regulators (TEQSA and ASQA) charged with ensuring providers meet initial registration requirements and continue to comply with legislation and codes of practice 2. The Tuition Protection Service (TPS) which guarantees continuity of education provision for international students or refunds pre-paid tuition fees 3. The Department of Immigration and Citizenship (DIAC) which manages the risk of international students not complying with their student visa conditions. There remains some confusion over roles and responsibilities among these agencies, particularly in the area of risk management. Education providers will soon be subject to three different approaches to risk management, each one requiring significant costs to providers in meeting their obligations. The national regulators have indicated they will develop a risk framework which identifies categories of risk, each with a different level of monitoring and compliance cost. The TPS Director will develop a separate risk rating for providers which will include an additional levy for some providers. DIAC currently uses a country and Australian education sector risk rating framework which determines the level of evidence required by students applying for a student visa. A current review of the Assessment Level Framework is likely to lead to some form of provider-based risk rating. There is potential for significant duplication of effort and increased costs to government and providers in developing similar risk profiles which may all include an assessment of financial viability, appropriate governance and management structures and processes, appropriate teaching facilities and resources, and other compliance requirements. TDA strongly recommends a whole-of-government approach to quality assurance and risk management, where risk assessments are integrated and compliance costs are minimised. The focus for quality assurance should be on those providers identified as high risk by any one of the agencies involved and this information should be shared on a regular basis between these agencies. TDA submission to the International Education Advisory Council - June 2012 Page 14 of 15
16 About TDA and it members TAFE Directors Australia (TDA) is the peak body representing government owned TAFE institutes across Australia. With a membership of 60 state and territory based institutes plus the AusAID funded Australia Pacific Technical College, TDA provides a range of services for its members including: Advocacy; with a focus on policy, governance and funding Research; with a focus on workforce development and industry engagement Marketing & promotion; with a focus on the unique attributes of our members National & international networks; with a focus on expanding opportunities for engagement with industry, government and other training institutions Business development; with a focus on tuition assurance, professional development and capacity building. Our members deliver vocational education and training (VET)* for over 1.2 million Australian students each year. 10 In addition, our TAFE institutes provide education and training in Australia for over 45,000 international students each year 11 and education and training for over 62,000 students in overseas locations 12. In 2010, thirty nine public VET providers, including dual sector university/registered training organisations, were involved in the delivery of VET in 33 countries. China had the largest number of students studying VET offshore with an Australian public provider (45,882 students) with courses being delivered in all 12 fields of education. 13 Seventeen providers have delivered VET offshore in China continuously since 2006 and the five most popular countries in terms of providers were China, Vietnam, Malaysia, Hong Kong and Papua New Guinea. Offshore engagement is not limited to the delivery of vocational education and training. Our institutes provide consultancies, capacity building, project management and professional development throughout the world with a particular focus on Asia and the Middle East. TAFE institutes also provide in-bound study tours, briefings for high level delegations and customised professional development programs for overseas college directors and managers. TAFE institutes are actively engaged in supporting scholarship programs such as the Australia Awards and are increasingly focused on supporting Australian VET students to study overseas as part of their education and training. 10 AEI Research Snapshot, September ibid 12 Delivery of VET offshore by public providers, DEEWR ibid TDA submission to the International Education Advisory Council - June 2012 Page 15 of 15
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