Costello.market.comparison.srilanka.thailand

eConcordiaFITTskills International Trade Research Course

Thailand and Sri Lanka: Prospects for Canadian Franchise Degree Programs?

And what rough beast, its hour come round at last,Slouches towards Bethlehem to be born?

“The Second Coming”, William Butler Yeats (1919)

Name: Daniel J. Costello Student ID: 1811 Address: Daejin University, Department of International Trade and Management, Pocheon, Gyeonggido, 487-711, South Korea. Telephone Number: +82-(0)31-535-3554 E-mail: [email protected]

mailto:[email protected]

Table of Contents

1. Executive Summary Pg.32. Identification of research questions and

objectives/methodology

a. What is the potential size of franchise degrees market in Thailand and Sri Lanka?

b. What preferences or trends are typical of these markets?

c. Who are the local competitors in the market and what resources do they have?

d. How do regulations and restrictions influence the ability to address these markets?

e. What resources will be needed to address these markets?

f. What marketing mix will be appropriate?

Pgs. 4-5

Pgs. 5-6

Pgs. 6-7

Pgs. 8-9

Pgs. 10-11

Pg. 113. Country analyses

a. Country profiles: current size and future growth potential

b. Political characteristics and stability

Pgs. 12-13

Pgs. 13-14

4. Identification of strategic/tactical issues Pgs. 15-16

5. Analyses of the competition Pgs. 17-18

6. Recommendations and action plan Pgs 18-21

eConcordia: International Research Assignment: Thailand and Sri Lanka

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7. Appendices Pgs. 22-29

8. Bibliography Pgs. 30-35

1. Executive Summary

This research report briefly outlines the opportunities and pitfalls for any Canadian university franchise degree program approaching foreign direct investment proposals in either Thailand or Sri Lanka. The author while Canadian is employed by a Korean university where similar information may prove useful in assessment of the same potential markets and strategic alignments necessary at home first before succeeding abroad.

While the franchise degree market in Thailand appears larger and more lucrative with a more developed investment environment it may be approaching saturation in Bangkok while Sri Lanka’s market for higher education is somewhat underdeveloped due to poor regulatory oversight. At the same time Thailand appears to prefer graduate and doctorate programs however that is not what Canadian schools appear to be marketing while Sri Lanka appears to have higher demand for business, management and technical degree programs yet Canada’s sole representation appears to be a consultancy geared for immigration to Canada.

Thailand measures far greater numbers of competitors with fewer accounted quality measures of their in country progress when compared to Sri Lanka. Both would require effective agency representation to sustain successful contract agreements either with joint venture partners in the public or private educational sectors as well as managing governmental regulatory procedures through respective Boards of Investment. Both provide adequate local


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advertising and marketing opportunities.

Competition is brisk in both markets concerning franchise degree programs however little progress appears to be possible due to current Canadian provincial and regulatory chaos not overseen by either an independent educational standards body or a national stakeholder marketing agency. Recommendations include formation of a national educational standards agency in line with global best practices as well as a national stakeholder owned marketing agency and remediation of regulations to reduce non-compliance. In addition self-financing of offshore programs is discussed. 2. Identification of research questions and objectives and methodology

What is the potential size of franchise degrees market in Thailand and Sri Lanka?

THAILAND: Estimates as of 2008 data may be made upon the basis of student enrollments at secondary and tertiary institutions. The Bangkok region represents the largest potential market with approximately 18% of the total population of Thailand in target age groups from lower to upper secondary, males and females. The total enrolled market of 815,405 potential customers is calculated on a population percentage basis and includes all secondary lower and upper level students estimated to live in the Bangkok region.1 The highest 20% of population consumes 48.4 % of total wealth.2 A potential student customer pool of 163,081 considers only the top 20% of the actual student population.

SRI LANKA: Estimates as of 2006 data may be made upon 1 Office of the Non-Formal and Informal Education, Ministry of Education, Bangkok (2007) UNESCO, “The Development and State of Adult Education in Thailand (ALE)”2 CIA (2008) Factbook: Thailand


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the basis of student enrollments at secondary and tertiary institutions. The Colombo region represents the largest potential market with approximately 12% of the total population in Sri Lanka target age groups from lower to upper secondary, males and females. Most recent enrollment figures would present the best estimates of these figures as any degree granting institution in Canada seeking to develop these markets would conservatively require three to five years to approve an action plan upon which time these students would represent actual customers. The total enrolled market of 301,920 potential customers is calculated on a population percentage basis and includes all secondary lower and upper level students estimated to live in the Colombo region.3 Due to a general tendency for annual increases in urban population in Asia these figures are conservative and may have 4-5% increases over the two years since data was generated. Calculated highest 20% of population consumes 42.8 % of total wealth4 and represents total potential customers at 60,384.

What preferences or trends are typical of these markets?

THAILAND: The Thai educational market is seen to provide potential in primarily the post-graduate sector currently experiencing growth in one year full-time enrollment programs with an increase in government financed scholarships as well as self-financed doctoral programs.5

Demand for higher education was seen to have peaked in 2001/2002 with slight fall in demand as of 2004.6 Limitations on demand growth are seen only in resolution of private financing, provision of student loans and income deficiency gaps between lower income families per capita schooling

3 UNICEF, Division of Policy and Practice, Statistics and Monitoring Section (2008) “Education statistics: Sri Lanka”, May 20084 CIA (2008) Factbook:Sri Lanka 5 The British Council, Educational Market Intelligence Thailand (February, 2008) 6 The World Bank, Thailand Social Monitor 2008 on Youth: Development and the Next Generation (Bangkok: March, 2008) Slide 13.


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expenses and opportunities costs. 7 Some consider the Bangkok education market may have reached a point of saturation.8 At this time other than the Canadian Education Centre (CEC), a non-profit cultural consultancy, it appears Canadian institutions do not operate any educational investments or franchise degree programs in Thailand. Canadian recruitment however for Thai students through the Thai International Educational Consultants Association (TIECA) is mostly west coast based and includes various smaller colleges and municipal school boards. At the same British Council research indicates that this is not what the Thai market demands. Understanding Canada’s laggard positioning, it is no surprise that the Thai market may be being misread as strictly school-aged.

SRI LANKA: Possible demand driven educational markets include tertiary, technical and vocational programs which would benefit from private sector investment. Little data exists on the overall quality of current private education providers in Sri Lanka.9 In addition, academic bias of educational institutions prepares graduates suitable for only a limited number of preferred white-collar positions marking university graduates with a high rate of unemployment.10

Demand for labour market ready skills remains high as youth unemployment was measured at 21% in 2004. Demand trend for education also indicates growth as all households regardless of income were seen to spend double the amount on private education in 2004 as compared to five years earlier.11 Also while information technology and internet accessibility is increasing slowly there is seen to be a great

7 Ibid, Slides 16,17,18.8 The Bangkok Post, International Education: A Beginners Guide (April, 2005)9 The World Bank, Building the Sri Lankan Knowledge Based Economy: Chapter Five Advancing Sri Lanka’s Education System through Quality Inputs (2007). p. 9.10 Britannica, Sri Lanka: Education (2008) 11 Asia Development Bank, Country Strategy and Program Update 2006–2008: Sri Lanka (2008)


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need for training in how to use these technologies. 12

Who are the local competitors in the market and what resources do they have?

THAILAND: There are at least forty three universities and colleges providing international studies programs and 780 public and private institutions providing programs courses and programs in higher education.13 Assumption University, Bangkok University, Chiang Mai University, Chulalongkorn University, Kasetsart University, Thammasat University, and the National Institute of Development Administration all appear to offer franchised degree programs. As well Heriot-Watt University, Schiller-Stamford International College, Stamford International University, Swinburne Tummasiri, and Webster University Thailand represent private independent full-time degree program providers.14 Webster University demonstrated particular zealous investment in bricks and mortar with early operating losses in 2002 due to lower than expected enrollments and higher than anticipated competition.15

SRI LANKA: The World Bank determined in 2008 that the higher education system of Sri Lanka consists of 17 public universities serving approximately 100,000 students. There are also 13 post-graduate and specialized institutes which enroll a further 6,000 students. However a large proportion of private sector providers enroll students in IT, management, accounting, marketing, law, business and finance. 16 Franchise degree providers in Sri Lanka included

12 The British Council, Educational Market Intelligence Thailand (February, 2008)13 Sedgwick, R. (2008) Education in Thailand 14 Thailand Board of Investment (2008) The Cost of Doing Business in Thailand: 200815 Starck, J. (2002) The Journal, “Webster's future in Thailand unclear”, December 5, 2002. 16 The World Bank, Building the Sri Lankan Knowledge Based Economy: Chapter Five Advancing Sri Lanka’s Education System through Quality Inputs (2007). p. 9.


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(as of 2004): University of Bradford and the Social Scientists' Association, University of Keele and Informatics Institute of Technology, Kingston University and Asian Aviation Centre, London Metropolitan University and IDM Computer Studies (PVT) Ltd, Staffordshire University and APIIT Lanka, University of Sunderland and Londontec International Computer School with full accounting of their resources and challenges through the Quality Assurance Agency for Higher Education UK.17 One Canadian oriented management agency, Centre for Canadian Academic & Professional Services (CCAPS) appears well poised to broker agreements between local and Canadian universities if and when franchises come.

How do regulations and restrictions influence the ability to address these markets?

THAILAND: Research shows 38% of high school graduates are enrolled in universities in Thailand. 18 While this remains a higher entry rate than in Sri Lanka it follows a global pattern of increase in university enrollment figures with the majority of new universities being private and described as demand absorbing. However increased demand has created

17 The Quality Assurance Agency for Higher Education (2004) Overseas partnership audit reports: Sri Lanka 18 The Panel Of The United Nations Commission On Science And Technology For Development (2007), Science Technology and Innovation in Sri Lanka.


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a concern for quantity over quality in program offerings.19

Tax waivers apply to minimum initial investment terms through BOI incentives often up to a term of five years contingent on approved educational projects fulfilling stipulations of BOI. Customs regulations ranked 59th out of 118 nations (or 3.7/7) stipulate private educational investments. 20 Approved training institute investment classified as regional office and under HR Development 7.15.1 Educational Institutes or Regional Training Centers. Tax exemptions: no import duty on machinery, no corporate income tax for eight years, no caps on the amount of corporate income tax, any and all revenue considered tax exempted, all the way to advertising promotions and any or all downstream subcontracts. 21Thailand ranks 15th for ease of doing business at 5.6% of GNI per capita start up costs and total regular commercial taxes at 37.7% without/post investment incentives. 22

SRI LANKA: An absence of private tertiary education institutions limits the number of university enrollments. Pressure to increase university admissions is considered significant and described as “unsatisfied social demand” where only 6% of all students graduating from high school are accepted into university and only 2% remain in university to program completion. Annual capacity of 13,000 new enrollments is insufficient to meet demands equaling nearly 75,000 applicants. 23 Even so, science and engineering are losing ground to business and management programs. 24 Investment in higher education is restricted and subject to screening and approval where foreign equity

19 Praphamontripong, P. (2005), International Higher Education, “Diversification within the Thai Private Sector”, No. 40, Summer 2005.20 World Economic Forum (2008), The Global Enabling Trade Report 200821 Thailand Board of Investment (2008) List of Activities Eligible for Promotion: 2007, “Policies and Criteria”, p.36.22 International Finance Corporation (2008), Doing Business Thailand 2009.23 Manoharan, N. (2006), Education System in Sri Lanka.24 The Panel Of The United Nations Commission On Science And Technology For Development (2007), Science Technology and Innovation in Sri Lanka.


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exceeds 40 percent. 25 Privately managed universities remains politically unacceptable however there is a New University Act in progress which would permit improvement of course and program quality, career and staff development, and more effective employer linkages. 26 Tax waivers apply to minimum initial investment terms through BOI incentives often up to a term of five years contingent on approved educational projects fulfilling stipulations of BOI investments regimes while customs regulations scored 71st

of 118 nations (or 3.4/7). 27 A minimum 100,000 USD is required capital for a training institute investment. Tax holidays progressively increase dependent upon enrollments from less than 250 students each year (a holiday of five years) to more than 2000 students a year (holiday of 12 years). Concessionary tax set at 10%, import duty exemptions on capital goods.28 While controls exist on capital account transactions these are often avoided on projects with Board of Investment (BOI) approval. 29 Sri Lanka ranks 29th overall for ease of doing business at statutory corporate tax rate total of 35.0% without/post incentives and profit percentage of 26.3%. 30

What resources will be needed to address these markets?

THAILAND: Any and all educational institutions in Thailand must be externally accredited to meet and satisfy standards 25 United States Trade Representative (2008), Factsheet Sri Lanka 2008.26 Asia Development Bank (2007) “Sector Paper: Sri Lanka Country Assistance Program Evaluation: Education Sector”, p.17.27 World Economic Forum (2008), The Global Enabling Trade Report 200828 Sri Lanka Board of Investment (2008) Industry-Wise Incentives -200629 U.S. & Foreign Commercial Service And U.S. Department Of State, (2006)30 International Finance Corporation (2008) Doing Business 2009: Sri Lanka


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and agreed procedures. Organizations such as the European Council of International Schools (ECIS), the Council of International Schools (CIS), the Western Association of Schools and Colleges (WASC) and the New England Association of Schools and Colleges (NEASC) would need to monitor and extend approval of institutional accreditation. In the short-term any Canadian institution seeking to set up franchise degree programs in Thailand would need accreditation available through the Office of the Private Education Commission’s Standards of Quality Assurance Procedure. 31Strong representation in trade associations, business networks, credit agencies and extensive employment of private agents would be required to determine with whom and under what provisions of contract to successfully conduct business. 32

SRI LANKA: Current regulatory environment lacks clear policies for the establishment and monitoring of franchise degree educational programs. Many Sri Lankans see establishment of foreign schools or institutions under BOI terms of contract and Companies Act as provisioning a two tier system of education for the rich versus the poor which is considered non-complementary to Sri Lankan culture. 33 At the same time foreign companies are seen to be able to enter this market through opening branch offices and would require “patient, persistent, and professional” agents to lobby contracts with Sri Lankan and higher education government officials.34 Dispute resolution difficulties and delays are seen to impede local contracts arrangement and enforcement. Finally an intellectual culture somewhat based

31 International Schools Association of Thailand (2008),” Frequently Asked Questions: How is educational quality assured?”32 The World Bank (2008) “Benchmarking—enforcing contracts, South Asia—compared with global best practice”, p.28.33 Coalition for Educational Development Sri Lanka (2007), “Issues and Concerns for Advocacy.”34 Foreign Affairs and international Trade (2008), “Tips For Business Travellers - Sri Lanka.”


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on mono-lingualism has influenced a “kaduwa concept” among many who view English language as a colonial legacy despite increased importance in international trade. 35

What marketing mix will be appropriate?

THAILAND: To meet perceived value drivers advertising would need to focus on a “student centred” approach, emphasizing the benefits of a western education, prioritizing critical thinking, reinforcing and or improving social status, as well as providing cost affordable tuition lower than that available in competitor host nations such as the UK, the US and Australia. 36 In country observance of educational marketing includes: internet, billboards, newspapers, radio, and television.

SRI LANKA: To avoid negative comparisons to low quality local educational providers advertising and promotion must emphasize locally sustainable profits, foreign qualifications recognized and valued by local employers, a lack of elitism, and an under-emphasis on English as the medium of education as well as how the programs meet national higher education policy objectives. 37 A small number of locally associated advertising agencies exist complete with annual innovation awards and no apparent global marketing of their collective skills. Yellow pages Sri Lanka reveals merely 21 listings a vast number of which specialize exclusively in tourism marketing. 38In country educational marketing includes: internet, billboards, newspapers, radio, and television.

35 Warnapala, W. (2007), “Need for a National Institute of Language Education.”36 Techavijit, V.(2007), University of Oxford, Presentation, “The International Schools Phenomenon in Thailand and the Implementation of the International Baccalaureate”, March 1, 2007.37 Knight, J. (2006) “Higher Education Crossing Borders: A Guide to the Implications of the General Agreement on Trade in Services (GATS) for Cross-border Education.”38 The Yellow Pages Sri Lanka (2000) “This site is Under Construction”


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3. Discussion of the country analysis using detailed research information from both primary and secondary sources and comparison of key research areas for each country.

Country profiles: current size and future growth potential

THAILAND: While current growth potential appears far from certain rising inflation, rising oil prices, the possibility of epidemics or serious health problems through avian flu or viruses as well as non-resolution of ethnic and political problems in southern provinces are all listed barriers to future growth. 39 Where little enough is known about profit margins in educational programs in Thailand do there remain incentives for Canadian educational companies and investors to enter this market?40 John Wrenshall, Academic Supervisor of American University Alumni (AUA) raised concerns of slight declines in student enrollments for basic English language classes with a business model and market intelligence described as “muddy” as he describes, “sometimes our 50 year history locks us into the past.” Lawrence A. Krogen may be paraphrased to describe the potential growth in educational franchise degrees in Thailand. Markets fluctuate in times of volatile supply and demand and in response to consumer sentiment. There are no guarantees of profitability as nothing can be guaranteed forever. Automobiles, food and agriculture have propelled much export led growth reaching 17% in 2006 and 12% export growth in 2007. The Thai economy as a whole grew 4.5% in 2007. 41

39 Austrade (2008), Thailand profile40 Institute for Trade Standards and Sustainable Development (2007),”ITSSD Response to the Draft Global Strategy and Plan of Action.”41 CIA (2008) Factbook: Thailand.


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SRI LANKA: THE OECD describes Sri Lanka in terms of cross-border education as an, “intermediate nation with inadequate domestic capacity, globally active as importers only.”42 Continued government policies impede the enrollment of a significant portion of eligible university aged students. Participation rates for 20-24 yr olds remained just 3.4% in 2006 while this indicates progress as total enrollments of undergraduate and postgraduate students increased 35% from 2000 to 2006.43 Such statistics suggest progress on the New Universities Act may swiftly impact demand and supply requirements in the near future. However current regulatory affairs appear to discourage private university competition at present. The Economist Intelligence Unit predicts, “GDP growth will average around 5.2% a year in 2008-12. Exports and the services sector will remain the primary drivers of the economy during the forecast period. Consumer price inflation will ease slowly downwards from its current double-digit rates to an average of 5.4% in 2012.”44

Political characteristics and stability

THAILAND: A pro-business climate appears to exist in Thailand with faster, fairer and more transparent environment despite fast growth and the economic downturn of 1997.45 Inflation and interest rates are currently modest. Following a military coup in 2006 consumer confidence fell

42 OECD (2004) Internationalisation and Trade in Higher Education: Opportunities and Challenges, Chapter 4, Cross-border post-secondary education in the Asia-Pacific region, p.147.43 Kubler, J. & Lennon, M.C. (2008), International Trade in Higher Education: Implications for the Commonwealth, The Association of Commonwealth Universities, p.43.44 The Economist (2008) “Economic data: Sri Lanka”45 Thamvorapol, S. (2004) “Thailand: Economic Policy Analysis”, The McKeever Institute Of Economic Policy Analysis.


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due to uncertain political climate up to the December 2007 elections. Foreign investor sentiment was affected by a 30% reserve requirement on capital inflows from December 2006, and amendments to Thailand's rules governing foreign-owned businesses are under consideration. Predominantly Muslim southern provinces have prompted border closures and controls with Malaysia to limit terrorist activities. Enhanced border surveillance exists to limit the spread of avian flu. Demarcation with Laos is problematic and disputes remain over several islands in the Mekong River. Thailand deals with Karen and other ethnic rebels, refugees, and illegal cross-border activities. In 2006, more than 116,000 Karen, Hmong, and other refugees and asylum seekers came from Burma. Cambodia and Thailand disagree over border boundaries with missing boundary markers. Cambodia believes regular Thai encroachments into Cambodian territory. Recent protests in southern provinces focus on wealth inequities. 46

SRI LANKA: Since 1983 the LTTE (Liberation Tigers of Tamil Elam) have fought a guerilla/terrorist war for independence of the north east portion of the island nation which has cost in excess of 60,000 lives and displaced over 400,000 people as internal refugees. “Sri Lanka’s financial management arrangements compare very well with those of other countries: both developing and developed—at least for the private sector. In contrast, public corporation financial governance practices are poor—as are other public sector accounting arrangements.” (Athukorala and Reid, 2002) Inflation rates are considered the highest in Asia, “annual inflation by December should drop to around 20 percent, down from a peak of 28.2 percent in June. In July, consumer price inflation was at 26.6 percent. The central bank has left its monetary policy rates unchanged for the past 18 months…”(Aneez and Hull, 2008) “Political stability is a critical factor in the business environment. Sri Lanka remains among the world’s most unstable countries...” (IFC, 2005)

46 CIA (2008) Factbook: Thailand.


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4. Identification of strategic/tactical issues

Any Canadian university contemplating offshore franchise degree delivery faces the reality that their strategy might represent an exclusive counter-culture among Canada’s educational community. Joint degree programs represent only fourteen institutions and even the vocabulary in Canadian reports on the topic by no means utilizes the term, “franchise.” Furthermore none of the institutions surveyed are either named or highlighted as demonstrating best practices and nowhere are there publically accessible quality reports for any of the programs listed in AUCC’s August 2007 report, “Knowledge exports by Canadian universities.”47

Demonstrating a possible under-representation of Canadian knowledge exports as well as global standards in best practices in terms of quality management of offshore programs, AUCC appears to self-monitor its quality rather than assign, develop or recommend an independent national agency in terms of higher education quality similar to the QAA in the UK, an independent body set to safe guard the UK’s educational standards for higher education. This is a serious tactical impediment to developing transparent franchise degree linkages and damages the exercise of program developments abroad. Under such policies which global partners would rely upon Canadian educational quality standards?

47 AUCC (2007) “Knowledge exports by Canadian universities”


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“Education is a provincial – not federal – responsibility in Canada, notes Lucie Langlois of Industry Canada. Langlois’s department is still trying to get the public colleges and universities to simply agree with the small group of accredited private language schools on common standards and a unified brand, such as ESL Canada, for overseas promotion. But she concedes the public schools and the 70-odd CAPLS schools working together won’t be enough to save Canada’s reputation for ESL. Canada’s global market share now stands at 13 per cent, Langlois adds, and it will slip.” (Howard, 2006)

Without similar QAA reporting standards at a national level it would be impossible to evaluate franchise degree programs as an independent researcher, anywhere, at anytime, and least of all in Sri Lanka, or Canada at this time. AUCC does not even provide an author’s reference for its latest report as follow up to 1999’s “Progress and Promise.” If the AUCC cannot even follow the recommendations of their own references and resources standards demanded of students how can they be expected to adequately manage and protect educational quality in the face of global competition which provides better resources?

The largest barrier to Canadian educational franchise degree programs development appears to be Canada itself as a nation of deregulators, and perhaps national and damaging perception of proprietary information as well as divisive provincial interests consuming a global educational income which by terms of national population and GDP should exceed Australia’s 10.1 billion in earnings annually. If resources are available yet only on a need to know basis without public access and without quality assessment, global competitiveness in international education cannot be improved. In fact such realities appear its major impediment to developing high profile franchise degree programs.

There is the danger under such standards that what the British and Australians provide to global researchers, in terms of market information, for free access, is exponentially better than what Canadian institutions and special interest groups appear to keep behind closed doors. Perhaps the difficulty in resourcing primary information in this vital


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industry is the result of embarrassment regionally at Canada’s global positioning and franchise degree programs development to date rather than an unwillingness to make these challenges known. One of the few books which adequately describes such a political/sociological milieu of silence and under-performance was written by a US consultant operating in Jakarta entitled, Corruption Arts in Third World International Business: Traps, Swizzles, and Swindles Used by the Master Players. (Gottbreht, 2005) It appears a paradox that the Canadian educational regulations surrounding international studies in Canada reveals provincial corruptions of purpose, chaos in terms of federal regulation and lack of national standards all tarnishing of Canada’s global educational image and a major impediment to progressive educational partnerships abroad.

5. Analysis of the competition in Thailand and Sri Lanka

THAILAND: This market is highly competitive and relies on bridging programs in ESL as well as drawing students away from local franchise degree options at present.

Competitor activities are significant, with Australia being the most aggressive, followed by the USA, Canada and New Zealand. Student numbers going into Australia's HE sector declined by 6.3 per cent in the year 2005 / 2006 but sharply increased for the vocational and English language sectors by 17.6 per cent and 18.2 per cent respectively. Canadian numbers are low. The majority of Thai students going to the USA were students in work and travel and student exchange programmes. (British Council, 2008)

The only way to increase those numbers is to increase presence and addressing one year franchise programs and doctoral programs in the most popular subject areas would certainly be the best step for any Canadian university to take in Thailand. As Mr. Audsitti Sroithong, Senior Investment Promotion Officer, Office of the Board of Investment


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explained, “Canada is half-way around the world” with respect to the Thai educational market. More Canadian market presence would provide “Canada in Thailand” which is what franchise degree programs would provide Canadian competitors in Thailand.

SRI LANKA: Known franchise degree programs are codified, monitored and reported by The Quality Assurance Agency of Higher Education in the UK. Addressing IT, management, accounting, marketing, law, business and finance all key subject areas which the market appears to demand would represent the best franchise degree programs to develop in this country. As York University appears to have the largest toe-hold here in its affiliation with the Centre for Canadian Academic & Professional Services (CCAPS) in Colombo, it might be the best first Canadian entrant to offer franchise degree programs in Sri Lanka. However, the best opportunities for franchise degree development might be Canada’s smaller and more numerous maritime universities which might more quickly and easily manage to develop franchise systems abroad due to their smaller sizes and perhaps easier movement of capital. As a result smaller sized universities might have more advantages offshore. This perspective may be attributed to the comments of the Canadian CEO of Boswell Capital Management Pte. Ltd. (in Singapore) as he explained why smaller banks may outperform larger ones through easier asset capital movements. Indeed relevant to both markets are my further recommendations.

6. Recommendations and action plan

RECOMMENDATIONS: “Laissez faire,” inaction, laggardness, reveals a daunting set of uncertainties surrounding the delivery of Canadian franchise degree programs in Thailand and Sri Lanka. First, the competition is brisk and well supported by government sponsored advertising, marketing, research, and quality management agencies especially those


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of Australian and British competitors. This would imply that any Canadian university contemplating entry into either Thailand or Sri Lanka is already at an informational disadvantage due to a paucity (some might say travesty) of Canadian federal government agencies delivering similar or superior agency, marketing and research resources. Second, while DFAIT is making some progress current market information remains lacking. Where is Canada's equivalent to IDP, Australia's independent education export development corporation which markets Australia as an education destination and is owned by shareholders which includes all of Australia's 37 universities? This would be my first recommendation. Finally, without universities demanding it global progress is uncertain and local consensus is thwarted. Mr. Greg Goldhawk, Aerospace and Defense Trade Commissioner, Embassy of Thailand, one of the few primary contacts who had the time and interest to yet respond to my enquiries, agrees, “There can be little doubt that virtually all other English-language destinations -- but most particularly Australia -- have made a substantial advance on Canada in terms of education marketing. There are some structural / institutional reasons for this of course, but I don't think it can be denied that part of the reason for our laggard performance is because Canada has not gotten behind a concerted strategy on the education front. The Department of Foreign Affairs and International Trade is now putting some effort behind education marketing…” Dr Sheryl Bond at Queen’s University also reflects in, “Northern Lights: International Graduates Of Canadian Institutions And The National Workforce” that, “The government of Canada should look critically at the model currently in place in Australia (Australia Education International), and consider committing resources to a similar special unit within either Citizenship and Immigration Canada (CIC) or Human Resources and Social Development Canada (HRSDC).”

A second recommendation is that market entry is infinitely better than doing nothing or maintaining the status quo which is “laissez faire,” inaction and laggardness. The


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transition of international students from local to global consumers of international education has made them more demanding and knowledgeable of program qualities, offerings and overall cost-benefits. Canada loses in the bargain. IDP Australia predicts, “Global demand for international higher education will grow from 2.173 million in 2005 to 3.720 million in 2025. This is growth of 71% over 20 years, or compound growth of 2.7% per year. “ This may appear too small a margin of growth to sustain Canadian offshore franchise degree developments in the short-term however it would be a mistake to maintain the status quo in the long-term, for at the same time, “the international student program may be the only component of the Australian university student population that grows, out to 2025. Universities may face choices about whether they downsize or whether they grow their international student programs.” (Banks, Olsen & Pierce, 2007) What is true for Australia’s international education industry totaling 10.1 billion in profits each year must be triply true for Canada’s which while with nearly double the national population earns only about a third in profits from international education as compared to Australia. Avoidance of propelling franchise degree programs entry into these markets is an arbiter of future enrollments at Canada’s most popular universities and programs for similar degrees. Market entry is recommended within the next three to five years which should be enough time to hammer out a significant reconstruction of Canadian federal and national universities’ global strategy to maintain and increase international education offshore at the front lines where the future customers are.

Evidence suggests that franchise degree programs are gaining ground in both nations at the expense of Canadian institutions who provide no similar programs. Closer to home, my own alma mater, The University of Wollongong has transitioned its popular Master’s of International Business program (of which I was a graduate in 2004) to a two year home campus program with a fully associated part-time or full-time franchise option program available at


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Assumption University in Bangkok offshore. Such actions suggest visible flexibility in delivery of franchise programs and are in direct response to international consumer preferences to avail such services in their own countries at significant cost savings in travel, living and opportunities costs as well as attracting students who would otherwise undertake the program in Australia. While these may include Australian students themselves Thailand options also provide opportunities for attracting non-Thais such as Chinese and Vietnamese who already represent large proportions of Thailand’s international student market. These would include customers who might not avail Canadian education programs in Canada due to cost.

Yet unaddressed in current academic literature are the potential net cost-benefits savings in perhaps sending vast percentages of Canadian under-graduate students abroad in an attempt to jump-start self-financing of such programs detailed as a key stumbling block by the AUCC report. Everyone expects the federal government to finance their global positions. Especially those in fields of study most highly preferred by international candidates might benefit from overseas positioning, building global consciousness into the Canadian students and offering local networks, as indicated by foreign student enrollments percentages in Canada's universities. Through full-time enrollment in Canadian universities, local students could be provided with added incentives to enroll in global joint-venture partnership programs of study abroad actually gaining experience and learning local languages in key markets of interest to Canadian business start-ups if reduced credits requirements and flexibilized modular course timings or similar incentives could be developed in Canada. This would be the opposite approach to attempting to attract foreign students to Canada of course. It would also be a competitive advantage to take an alternative financing and focus position and would allow Canadian universities ready and easy financing of franchise degrees abroad. If their sole concern is, “Who should pay for it?” then they have not fully committed to


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global learning and must accept the fates of international businesses for those leaders who seek not to pay for it out of pocket or out of hard experience.

In conclusion the short-term risks do not deter the presence of Canadian competitors in these markets and are outweighed by the continued long-term losses of delayed market entry of franchise degree programs in either of these markets. In fact, first Canadian entrants may offer a unique contribution to current offerings in these exceptional nations and will give advantages to those who arrive first. For it is currently a regrettable Canadian trait to only really seek to compete with other Canadians in terms of international education. Especially comfortably, languidly observing the global education market and dispassionately at home. What if any success could come from true progress abroad?

7. APPENDIX

1. Office of the Non-Formal and Informal Education, Ministry of Education, Bangkok (2007) UNESCO, “The Development and State of Adult Education in Thailand


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(ALE)”

Bangkok region: 18% of total population age groups from lower to upper secondary, males and females.EnrolledSecondary 4,530,029 2.19%Lower secondary 2,761,219 3.01%Upper secondary 1,768,810 0.96%(UNESCO , 2008)Enrolled total market: 815,405 potential customers.

2.CIA (2008) Factbook: Thailand

Household income or consumption by percentage share: lowest 10%: 2.7% highest 10%: 33.4% (2002)

3. UNICEF, Division of Policy and Practice, Statistics and Monitoring Section (2008) “Education statistics: Sri Lanka”, May 2008

Total population, all ages, 2007 19299 (male) 9514 (female)9786

4. CIA (2008) Factbook:Sri Lanka

Household income or consumption by percentage share: lowest 10%: 1.1% highest 10%: 39.7% (FY03/04)

5. The British Council, Educational Market Intelligence Thailand (February, 2008)

Thailand is predominantly a postgraduate and ELT market (specifically summer schools and preparation programmes for postgraduate study). These two sectors account for over 60 per cent of all student visas issued.

There is considerable room for growth in the postgraduate sector, which has seen steady growth in one-year taught programmes. There is an increase in the number of governmental scholarships, as well as a growth in the self-funded sector for doctoral programmes.

The ELT sector also demonstrates scope for growth in the March / April language holiday period for 14 to 19 year-olds.

6. The World Bank, Thailand Social Monitor 2008 on Youth: Development and the Next Generation (Bangkok: March, 2008) Slide 13.

Demand-side constraints Direct education costs as a share of per capita household expenditure increase sharply at higher levels of education and limit access to secondary and tertiary schooling Opportunity costs deter poor households from sending children to school The gap between expenditure on secondary and tertiary education between rich and poor is widening

7. Ibid, Slides 16,17,18.

Supply-side constraints


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While secondary schools seats have grown over time, there may still be room for expansion Principals report shortage/inadequacy of teachers and teachers consider themselves not adequately prepared in mathematics and science There is room for a more efficient and progressive utilization of public spending on education

8. The Bangkok Post, International Education: A Beginners Guide (April, 2005)

As By law, all international schools should be externally accredited, so look out for the certificate granted by a recognised body such as CIS, NEASC, WASC or the Office of the Private Education Commission.

9. The World Bank, Building the Sri Lankan Knowledge Based Economy: Chapter Five Advancing Sri Lanka’s Education System through Quality Inputs (2007). p. 9.

Sri Lanka’s ability to create a demand driven education system that focuses on lifelong learningwill determine the country’s capacity to embrace the benefits of knowledge economy. A successful education system will focus on learning rather than schooling, and creating an enabling environment that promotes creativity, improves the quality of basic and tertiary education, and provides opportunities for lifelong learning.

10. Britannica, Sri Lanka: Education (2008)

Formal higher education in the country has a strong academic bias, making the large majority of university graduates suitable for only a limited number of white-collar jobs; this has caused widespread frustration, especially among the educated unemployed youth.

11. Asia Development Bank, Country Strategy and Program Update 2006–2008: Sri Lanka (2008)

Given the past neglect and low public investment in education, a rapid improvement in key indicators cannot be expected. Youth unemployment in 2004 remained high at 21%. In addition, a central bank survey found that all households regardless of income spent more than twice as much on private education in 2003–2004 as they did 5 years ago. This could be a sign that public education has not yet improved sufficiently. Strengthening vocational training, another ADB focus area, is also crucial: about 13,000 unfilled vacancies are reported by JobsNET, a Government e-initiative. A Local Government Infrastructure Improvement Project in 2005 aims to improve the delivery of key social services (such as communal water supply, drainage, municipal clinics, etc.) by local authorities.

12.The British Council, Educational Market Intelligence Thailand (February, 2008)

Competitor activities are significant, with Australia being the most aggressive, followed by the USA, Canada and New Zealand. Student numbers going into Australia's HE sector declined by 6.3 per cent in the year 2005 / 2006 but sharply increased for the vocational and English language sectors by 17.6 per cent and 18.2 per cent respectively. Canadian numbers are low. The majority of Thai students going to the USA were students in work and travel and student exchange programmes.

13. Sedgwick, R. (2008) Education in Thailand


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There are a total of 780 public and private institutions in Thailand offering courses and programs in higher education. The Ministry of University Affairs sets educational standards, approves curriculum, and is the main institutional and professional accrediting body.

14.Thailand Board of Investment (2008) The Cost of Doing Business in Thailand: 2008

Universities Offering International Programs

15.Starck, J. (2002) The Journal, “Webster's future in Thailand unclear”, December 5, 2002.

But the first few years weren't as positive. According to Vice President of Finance Dave Garafola and verified by Board of Trustees meeting notes, Webster sent WUT $443,000 in cash support during the 1999-2000 school year, $700,000 during 2000-2001 and $200,000 in 2001-2002.

16.The World Bank, Building the Sri Lankan Knowledge Based Economy: Chapter Five Advancing Sri Lanka’s Education System through Quality Inputs (2007). p. 9.

17. The Quality Assurance Agency for Higher Education (2004) Overseas partnership audit reports: Sri Lanka

18. The Panel Of The United Nations Commission On Science And Technology For Development (2007), Science Technology and Innovation in Sri Lanka.

19. Praphamontripong, P. (2005), International Higher Education, “Diversification within the Thai Private Sector”, No. 40, Summer 2005.

Following the still-rising global pattern, the bulk of Thai private higher education institutions can be regarded as demand absorbing. Generally, demand-absorbing institutions intend to accommodate an overabundant demand of higher education and are often concerned more with quantity than quality. These institutions have grown enormously in the past decade. All but three hold only a tiny share of total private enrollments, whereas the three account for one-third of the demand-absorbing subsector's enrollments. Demand-absorbing institutions may be divided into two subcategories: (1) the ones offering programs emulating those in public or private elite universities, and (2) those focusing on professional training in limited specific areas. Both generally have high student:faculty ratios. Some have no faculty holding doctoral degrees in the entire institution.

20. World Economic Forum (2008), The Global Enabling Trade Report 2008

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

21.Thailand Board of Investment (2008) List of Activities Eligible for Promotion: 2007, “Policies and Criteria”, p.36.

1) Scope of business must be approved by theBoard as follows:a) Educational institutes or vocational training centers that teach courses on industrial mechanics, engineering, science and technology, including design training


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center (74) and have students in these courses numbering not less than 50 percent of the total number of studentsb) International schoolsc) Hotel training institutes that teach courses on hotels and have students in these courses numbering not less than 50 percent of the total number of studentsd) Maritime training institutes that teach courses on maritime training and have students in these courses numbering not less than 50 percent of the total number of students2) Classified as a priority activity of special importance and benefit to the country3) Exempt from import duty on machinery, regardless of zone4) Exempt from corporate income tax for 8 years, regardless of zone5) Promoted projects will not be subject to any cap on the amount of corporate income tax exemption.6) Other rights and privileges will be granted in accordance with Board of Investment Announcement No. 1/2543.

22. International Finance Corporation (2008), Doing Business Thailand 2009.

The first table lists the overall "Ease of Doing Business" rank (out of 181 economies) and the rankings by each topic. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

23. Manoharan, N. (2006), Education System in Sri Lanka.

Accommodating students deprived of university education should be the primary concern. Apart from increasing the number of universities, it would be wise to consider expanding the Open University system, part-time learning, self-study and such other means to cater for candidates from different areas. But adding to the number of graduates without improving the quality of education is irrelevant. Introduction of new non-traditional vocational courses and reorientation of the existing curriculum to meet the needs of the market should be seriously considered.

24. The Panel Of The United Nations Commission On Science And Technology For Development (2007), ScienceTechnology and Innovation in Sri Lanka.

The major stumbling block for the development of scientific and technological capabilities in Sri Lanka is the low state support for R & D, lack of highly trained professionals in R & D organizations, underdevelopment of higher education and the science base in universities and the preference for foreign technology rather than the development of local technology by the industrial sector. The science base in the universities need to be expanded with more Ph.D and R & D programmes coupled with peer review and measures to ensure standards of excellence. Diffusion of R & D remains weak and left to natural play of different actors and attempts to forge linkages between the Universities, industry and government agencies have not been very successful.

25. United States Trade Representative (2008), Factsheet Sri Lanka 2008.

Foreign investment is not permitted in the following businesses: non-bank money lending; pawn-brokering; retail trade with a capital investment of less than $1 million (with one notable exception: the BOI permits retail and wholesale trading by reputed international brand names and franchises with an initial investment of not less than $150,000); coastal fishing; and the awarding of local university degrees. Foreign degree courses can be offered in Sri Lanka by affiliating with foreign universities. However, there is no scheme to monitor the quality assurance or accreditation of the


27

foreign courses offered in Sri Lanka.

26. Asia Development Bank (2007) “Sector Paper: Sri Lanka Country Assistance Program Evaluation: Education Sector”, p.17.

Although Sri Lanka achieved notable gains in literacy, gender equity in education, and universal primary education, several gaps have existed in the sector: (i) lack of responsiveness of the education system to labor market requirements, (ii) disparities in access to quality education, (iii) lack of an effective linkage between secondary and tertiary education, and general education and TEVT, (iv) inadequate management capabilities that constrain decentralization, (v) inadequate teacher deployment and management, (vi) declining government expenditures on education, and (vii) limited public-private partnerships.

27. World Economic Forum (2008), The Global Enabling Trade Report 2008

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

28. Sri Lanka Board of Investment (2008) Industry-Wise Incentives -2006

Incentives will be provided for career or job oriented educational and training institutions engaged in Tertiary, Technical, Vocational, Skill Development, Business and Management, Post-graduate & Continuing education programmes. All courses should comply with minimum training period and international or local accreditation. Areas identified for training are as follows: •English, English & IT, BPO Industry training, Mathematics & English, IT related training. •Post-Graduate diploma courses for Professionals, Business, Industry, Administration & Services• Vocational & Skill Development for carpentry, masonry, motor mechanism welding and other job oriented technician level courses. •Foreign employment training •Textile & Clothing Industry, Nursing, Hospitality & catering, secretarial & food processing •Skill development & productivity improvement courses for industry, services, agriculture & plantation sectors including the training & retraining of employees. •Institutes providing apprenticeship schemes with employees where trainees obtain practical skills and attend classes part time. •Foreign Universities setting up Campuses in Sri Lanka for approved courses. •Teacher training institutes• Institutes providing education for disabled •Media such as Television, Radio, E-Learning institutes set up to provide education & training. •Training for graduates & provision of industrial training. •Accounting and Financial Services or any other profession as approved by the Board. Existing BOI and non-BOI companies meeting criteria will also be entitled to these incentives provided they undertake training number of students as per tabled III and set up expansion units out of Colombo and Gampaha districts. Additional incentives will be provided to institutes which set up centers outside Colombo & Gampaha districts.

29. U.S. & Foreign Commercial Service And U.S. Department Of State, (2006)

Doing Business In Sri Lanka: A Country Commercial GuideU.S. & Foreign Commercial Service And U.S. Department Of State, 2006

30. International Finance Corporation (2008) Doing Business 2009: Sri Lanka

The first table lists the overall "Ease of Doing Business" rank (out of 181 economies)


28

and the rankings by each topic. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

31. International Schools Association of Thailand (2008),” Frequently Asked Questions: How is educational quality assured?”

The Ministry of education requires that all international schools are externally accredited to ensure that they meet recognized standards and follow agreed procedures. Accrediting organizations include the European Council of International School (ECIS), the Council of International Schools (CIS), the Western Association of Schools and Colleges (WASC) and the New England Association of Schools and Colleges (NEASC). As an interim measure, the Ministry allows accreditation through the Office of the Private Education Commission’s Standards of Quality Assurance Procedure.

32. The World Bank (2008) “Benchmarking—enforcing contracts, South Asia—compared with global best practice”, p.28.

Where contract enforcement is efficient, businesses are more likely to engage with new borrowers or customers. Doing Business tracks the efficiency of the judicial system in resolving a commercial dispute, following the step-by-step evolution of a commercial sale dispute before local courts. The data are collected through study of the codes of civil procedure and other court regulations as well as surveys completed by local litigation lawyers (and, in a quarter of the countries, by judges as well).

33. Coalition for Educational Development Sri Lanka (2007), “Issues and Concerns for Advocacy.”

Ever increasing demand for the prestigious schools has created several problems. It has led to overcrowding of urban, prestigious 1AB and National schools, malpractices in admissions and imposed a threat of closing down on small rural schools. Innovative exercises suggested and implemented such as clustering and establishment of National and Navodya schools have not proved effective and acceptable substitutes. Therefore, a clear policy to restructure the school system in Sri Lanka should be advocated and pursued .

34. Foreign Affairs and international Trade (2008), “Tips For Business Travellers - Sri Lanka.”Sri Lankans like to know their business partners well, before they enter into any transactions. Due to the bureaucracy, business decisions are made slowly in the public sector organizations. Most corporate offices in Sri Lanka are situated in Colombo. There are various Industrial Parks that are scattered in many parts of the country. Sri Lanka is strategically located in South Asia, and the Sri Lankan business environment is generally investor friendly and enriched with a skilled workforce.

35. Warnapala, W. (2007), “Need for a National Institute of Language Education.”

In Sri Lanka, the study of English has been in decline for more than five decades and mono-lingualism created a terrible intellectual culture which does not tolerate debate, discussion, argument and dissent. The intellectual culture based on mono – lingulaism, failed to produce people with originality and vision; more than that it failed to produce cultured men. At one stage in the history of this country, very leading people openly condemned English as a colonial legacy and this assertion, in


29

the end created the “Kaduwa concept” among the undergraduate. I would like to quote Chancellor Von Bismark of Germany on the importance of English. In 1898, a young journalist asked Chancellor Bismark – “ What had been the most determining event of the 19th century?” He replied, “ The fact that North America speaks English”. It was very prophetic on the part of Chancellor Bismark. Today English is the global ‘ lingua – franca’.

36. Techavijit, V.(2007), University of Oxford, Presentation, “The International Schools Phenomenon in Thailand and the Implementation of the International Baccalaureate”, March 1, 2007.

In Thailand, the Ministry of Education requires that all international schools are externally accredited to ensure that they meet recognised standards and follow agreed procedures. I have no doubt that this is true in other countries as well. Accrediting organisations widely known in Thailand include the Western Association of Schools and/or Colleges (WASC) and the New England Association of Schools and Colleges (NEASC) for American based international schools; Worldwide Education Services (WES) for British based international schools; and the Council of International Schools (CIS) for any international schools.

37. Knight, J. (2006) “Higher Education Crossing Borders: A Guide to the Implications of the General Agreement on Trade in Services (GATS) for Cross-border Education.”

The demand for international education is forecast to increase from 1.8 million international students in 2000 to 7.2 million international students in 2025. This is a staggering increase that presents enormous challenges as well as opportunities. It is not known what proportion of the demand will be met by student mobility, but it is clear that there will be exponential growth in the movement of programs and institutions/providers across national borders.

38. The Yellow Pages Sri Lanka (2000) “This site is Under Construction”

Never say you missed it!

39. Austrade (2008), Thailand profile

Thailand has slowly recovered from the 1997 economic crisis to become one of East Asia’s best performers for the period 2002-2008. It welcomes foreign investment and has a reported increase in consumption and investment spending. The increase spurred the GDP growth to 5 per cent in 2006 and 4 per cent in 2007 despite a slower global economy.

40. Institute for Trade Standards and Sustainable Development (2007),”ITSSD Response to the Draft Global Strategy and Plan of Action.”

Markets are profit-, not cost-driven. Volume-based business models with tight profit margins are an extremely risky investment in the long term, even if supported by government efforts to artificially make markets by providing advance market commitments. Since the natural tendency of markets is to fluctuate in response to the sometimes volatile supply and demand of raw materials, goods-in-process, finished products, etc., as well as, to consumer perceptions and idiosyncrasies, it would be extremely difficult to gauge in advance the true economic value of such a guarantee in terms of profitability. After all, nothing can be guaranteed forever, let alone for the extended period of time that may be required to develop, manufacture and distribute a successful life-saving drug to needy patients free of complications.


30

Consequently, if governments regulate company profit margins internationally and domestically without truly guaranteeing markets for more than the short-term, company and investor incentives to enter into any such arrangement are likely to evaporate very quickly.

41. CIA (2008) Factbook: Thailand.

Disputes - international

42. OECD (2004) Internationalisation and Trade in Higher Education: Opportunities and Challenges, Chapter 4, Cross-border post-secondary education in the Asia-Pacific region , p.147.

Programme and institution mobility involves lower personal costs than studying abroad, and although such services might not offer the same cultural and linguistic experiences as foreign study, they are likely to meet a growing demand in the future. In the degree granting sector, the growth of for-profit cross-border education through programme and institution mobility is mostly driven by “traditional” public or private not-for-profit educational institutions, which are increasingly offering private provision.

43. Kubler, J. & Lennon, M.C. (2008), International Trade in Higher Education: Implications for the Commonwealth, The Association of Commonwealth Universities, p.5/43.

It is not only the mobility of students that is growing; the movement of academic programmes and services across borders is also becoming increasingly common. New technologies and more open markets have made this more viable. One of the most comprehensive mechanisms for programme mobility is the development of branch campuses overseas. While the number of international branch campuses set up by higher education institutions remains relatively low the numbers are steadily increasing. A recent report by the Observatory on Borderless Higher Education (OBHE) indicates that there has been significant growth in branch campus activity in recent years, with half of the 82 branches listed in the report established since 2000. However, setting up a branch campus is a very resource intensive enterprise and while there has been significant growth in the past few years this provision is dominated by a few key countries, notably, the UK, Australia and the US. Other, more common, forms of cross-border provision include: franchising, selling or validating programmes delivered by a foreign institution; programme articulations (i.e. twinning), where institutions collaborate to deliver joint programmes; off-shore institutions and other types of internationally sponsored universities; as well as online and distance provision.

The countries grouped within the South Asian region (India, Pakistan, Bangladesh and Sri Lanka) have, like their counterparts in sub-Saharan Africa, struggled to achieve minimal participation rates.

44. The Economist (2008) “Economic data: Sri Lanka”

Partly as a result of the country's reliance on aid from multilateral agencies (which are in favour of free markets), and partly owing to the need to improve the fiscal position, the government may implement some economic liberalisation measures.


31

45. Thamvorapol, S. (2004) “Thailand: Economic Policy Analysis”, The McKeever Institute Of Economic Policy Analysis.

People usually give respect to persons who have a power to open up a business. And they also feel that all businessmen, Thai or foreign alike. Therefore people can be confident that when they invest in Thailand, they will receive fast, fair and transparent treatment.

46. CIA (2008) Factbook: Thailand.

47. AUCC (2007) “Knowledge exports by Canadian universities”

Chief among these challenges is the lack of financial support to offset the considerable upfront costs associated with entering the international market successfully. This was identified in the 2006 survey as the top barrier to developing and delivering education products and services overseas. When asked which key support services and measures they needed from the Canadian government and other stakeholders to enhance institutional efforts to export educational products and services overseas, most institutions gave a high level of importance to a number of measures including the need for “seed funds to help universities to foster strategic alliances” and “seed funds to support universities to develop products” (see Figure 2). In addition, respondents underscored the importance of a coordinated government approach and strategic engagement by the Department of Foreign Affairs’ networks of trade commissioners and science and technology counsellors.

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