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Archive for the 'Economics' Category

University and Community Futures

Thursday, October 9th, 2014

Universities, Academe and Managerialism

Universities contribute substantially to the community through research and teaching and to economic gains as well as to the individuals who graduate. University reforms in developed countries over the last thirty or so years has brought managerialism and corporatisation  without matching gains in quality of undergraduate teaching, now often assigned to graduate students. Market economics has reduced the overall spread of courses offered and commercial sponsorship and partnerships have sometimes severely compromised independence.

The contribution of universities to significant innovation through multilateral relationships with government and business, enhanced by geographic location and funding from philanthropic organisations and alumni attracting high quality staff is not always understood, not least in Australia.

As in all other areas of public policy there is much nonsense written about alleged threats that are not really the major issue: those are ignored. In a well argued opinion, one-time journalism student and now business commentator Rob Burgess wrote in early October 2014,  in Business Spectator, “The brainwashing of students, I would suggest, is far less dangerous than the mis-selling educational products to young Australians. It keeps them out of other kinds of work-based learning for three years, lumbers them with a HECS debt and releases them into a jobs market that doesn’t want them.”

Burgess was responding to a report that “university lecturers were ‘indoctrinating’ journalism students to hate some media and gravitate toward some others”. As Burgess points out, “Young journalists often argue with their jaded bosses over idealistic views of society, but each, with time, finds their own map of reality.”

One of the theoretical requirements for the operation of a free market is perfect information. Students making a choice about which university to attend or which course to enrol in, like everyone else, lacks such perfect information. Indeed Nobel Prizes are awarded for studies into this asymmetry. So large numbers of students enrol in journalism courses for which there are few jobs and few enrol in actuarial studies where there are many jobs.

This all has relevance to recent proposed reforms.

Australia’s Universities: recent proposals for reform

The first Abbott/Hockey budget proposed major changes for Australia’s universities. Whilst there has been very substantial opposition, the larger universities have promoted the changes. (So has the Business Council of Australia.) Prominent commentators have accused Minister Pyne and the larger universities’ Vice Chancellors of not understanding the actual situation or the recent history of the microeconomic reforms proposed.

Deregulation of higher education fees is proposed with interest on the debt incurred through HECS funding of the fees being adjusted to the government bond rate and private providers allowed to offer courses. Significant cuts will be made to funding including to the Research Grants scheme. The argument is that the outcome will be enhancement of diversity and choice and lead to the older established universities being able to increase their revenue and attract the best students.

The assertions are considered on analysis to be wrong by comparison with the experience in the US and the recent history in Australia.

Senator Elizabeth Warren (Dem, MA) was interviewed recently on the website Several paragraphs refer to the college and university situation in the U.S. They make chilling reading:

Three of four kids in college are in public universities. A generation ago three of four dollars of the cost came from government: it is now one in four and the family or student has to make up the rest. “The state universities are the backbones of access to higher education for the middle class ..

One in 10 kids in college is in a for-profit university: “those universities are sucking down 25 per cent of federal loan dollars and they are responsible for 50 percent of all student loan defaults. So the federal government is subsidizing a for-profit industry that is ripping off young people. Those young people are graduating-many of them are never graduating-and of those that are graduating, many of them have certificates that won’t get them jobs, that don’t produce the benefits of a state college education.”

It is far from certain that the changes will pass the Senate. They most certainly should not! The Labor Opposition is running a major campaign against them.

Read more  on universities generally and more on recent developments in Australia.

In Australia etc

Monday, July 7th, 2014

A new series of articles  commences with a polemic about the value of thinking outside the domain in which our own organisation is situated and how that can contribute to greater understanding than another seminar from people we already know.

Australia faces perhaps more challenges than at any time in its history. Many commentators and experts point to failure to confront climate change and the carbon emissions contributing to that, to the decline in attention to many aspects of humanity including immigration and asylum-seekers, to the continuing challenge for ‘White Australia’ of Indigenous peoples gaining genuine standing in their own country, to the continuing less than independent stance in foreign policy despite the evidence that simply forming an alliance with the nation currently most powerful carries severe dangers, to the risk averse nature of the political systems in investing in communications and transport infrastructure and much else.

Economically, inequality in Australia, increasingly an issue gaining serious attention not least because of the publication of Capital in the 21st Century by French economist Thomas Piketty, has been brought to the fore in discussions about the first Commonwealth government budget of Treasurer Joe Hockey. Amongst the many features of very great importance characterising the government of Prime Minister Tony Abbott is the failure to appoint a Minister for Science and the abrogation of agreements with the states entered into by the Rudd and Gillard governments in respect of health and education. Education policies have already featured on this site.

The consistent assertions by Abbott government ministers of a budget emergency and a debt crisis requiring a budget featuring significant reductions in government outlays in many areas, the resulting pain to be “shared” across the board, have been comprehensively denied by many economists and commentators supported by numerous detailed studies.

It is intended that these issues will form the background to the essays in this section, In Australia.


More on Museums and More on other Issues

Sunday, November 17th, 2013

Museums, Gardens and their Future with Government

A short essay on departures of senior executives from New South Wales museums and botanic gardens in 2013 and what they say about government policies is added to the essays about effective museums. Earlier it had been  posted on my blog, commenced in October 2013. The essay questions whether governments and boards appointed by governments to manage and oversight museums and similar enterprises actually show themselves capable of effectively fulfilling their obligations. In the study of effective museums the first distinction, the most important one, of effective organisations was that they are independent of, or at least maintain a distinct arms length from, government.

Governments are often obsessed with centralised control, which usually ends up achieving very little, and boards appointed by them seldom comprise persons with genuine understanding of the organisation and its principal aims. Newly appointed members are seldom properly briefed at the time of their appointment; the chair is often not appointed because they possess the most important characteristic of an effective chair, the ability to bring people together to envision a shared purpose and ensure meaningful participation of the members of the board, but because they are a friend of the Minister or have achieved prominence in business or some other field. The fact is that often people  rise to positions of prominence for reasons related mainly to who they know and where they went to school. For all these reasons boards of cultural organisations very often fail to achieve effective governance and in particular may not even make appropriate appointments to the most important position, that of executive director.

If the truth of the assertions of the above paragraph seems doubtful, consider the fact that the vast majority of the people in the UK in the professions of the law and finance are from a few “public” schools. A review of the composition of boards of Australian cultural institutions would show that even if the members are scientists or artists they seldom have any experience of leadership or governance. However, their expertise would be valuable were the majority of the decisions made by the board related to considered judgements about the principal purposes and business of the organisation. Instead they often concern financial matters and issues of an administrative nature.

New Essays on Other Issues

In October 2013, a new blog site was commenced. It will contain articles on subjects other than museums, leadership, organisational  development and similar subjects with which this site has been concerned for the last 11 years and education, essays on which have been posted in the last two years.

The first essays deal with climate change; other articles which appear on this main website have been cross posted on the blog site.

A full list of articles on the blog is posted on its own page.

Articles on other sites

Articles published on other online sites are listed on the Publications page of this website. They cover education, economics and climate change.

The School Education Policy of the Abbott Government

Thursday, November 14th, 2013

The approach to education reform intended by the new Government, as enunciated especially by Education Minister Pyne, is based on serious misunderstandings of the nature of education and the latest contribution to knowledge about it. “People need to understand that the government has changed in Canberra, that we’re not simply administering the previous government’s policies or views”.

Five areas of concern arise from the statements by Minister Pyne about school education. They are first, the proposition that ‘the present model is not broken’, then the influence of standardised testing, the nature of school leadership, the nature of effective learning and teaching and the nature of the disciplines which form the curriculum, especially history, and the ways they are taught.

Actor and comedian Tim Minchin said much more interesting things about education at the University of Western Australia. Like, “life is best filled by learning as much as you can about as much as you can, taking pride in whatever you’re doing, having compassion, sharing ideas, running(!), being enthusiastic”.

Much of this education reform is just the unwinding of intelligence and creativity!

Read more at The Education of Christopher Pyne.

John Howard, Climate Change Denier and much more!

Thursday, November 7th, 2013

It would be easy to dismiss former Prime Minister John Howard’s address, to acolytes in London, presented at the invitation of climate sceptic and former UK Chancellor Lord Lawson. Over at New Matilda Ben Pobje has done that. So have others including Guy Rundle and Max Gillies in their 2002 production Your Dreaming: Poets, Pontificators and Expatriates and Jonathan Biggins and others at the Sydney Theatre Company satirise numerous politicians and others every year in their Revue.


Related articles: Australia’s Carbon Emissions Target: Intellectual Laziness At Work

Owl’s Hoots No. 13: Co-Producing The Museum And What Actually Do We Think We’re Doing?


Several of Howard’s statements are gratuitous, several are misrepresentations.

Howard’s principal statements must be identified for what they are. To suggest that the climate scientists’ statements are “sanctimonious” and that the term “denier” has some overtone of intimidation, as Howard does,  is to misrepresent the meanings of words and the nature of the discourse.

Howard misrepresents the present state of scientific understanding by branding it as a mantra, as a set of views to be not denied. And he asserted, “In the past five years, the dynamic of the global warming debate has shifted away from exaggerated acceptance of the worst possible implications of what a majority of climate scientists tell us, towards a more balanced, and questioning approach.” Rubbish! Dangerous stupid rubbish!

This article is posted at my blog site.