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On the Corporatization of Universities - Part 1

Before I begin, I'd like to point your attention towards a lecture (of sorts) dictated by Noam Chomsky. It's a nice little intro to the topic but be warned that he does go off on several tangents (if you're fairly liberal with your definition of the word) regarding politics and history. It's also sprinkled with a healthy dose of criticisms of the U.S. and the modern political landscape (classic Chomsky…) so if that's your cup of tea, give it a listen!

On to the topic at hand: the corpratization of the university in this century. In discussing the matter, I'll be focusing specifically on the transitions universities have made into presenting themselves as products and the parallels between the modern student and consumer. It's a bit of a bleak outlook though, so I give you fair warning in advance :) …. Unless of course, you're one of the many fine people profiting off of such a system! In that case, I send a stern, disapproving look in your direction, sir or madam!

So, what are some characteristics of this trend? Some of them include the increase in enrolment, the decrease in the average aptitude of entering students, the drastic increases in tuition, "surprise" costs associated with unnecessary features, and - my favourite! - new marketing schemes.

For now however, we shall close the doors on all of these complicated (and frustrating!) issues and narrow our focus on the root causes of this phenomenon. While it's difficult to definitely point the incriminating finger at just one event or person…we can be irresponsible and try!

The Recession and Subsequent Funding Cuts 

The 2008 recession hit Canada (and much of the world for that matter) very hard. Now almost 7 years removed from the financial crisis, we can reasonably say that institutions of all forms were hurt - universities chiefly among them. In Canada, most of the schools are public universities, meaning much of their endowment and operating budget is derived from the government (both federal and provincial).

Naturally, in times of financial crisis, the government will look to slash spending and make cuts wherever they can. It turns out the universities were prime victims! With only some paperwork and the ability to turn a blind eye standing in the way, a couple of billion could be saved and it was only at the expense of some schools! Yay!

Just in 2013, the University of Alberta, amongst the largest universities in the prairie provinces, saw their provincial government revoke a promise of budget increases (what, do pinky promises no longer apply in politics?!). What did the government provide as compensation for this? Why, they decided to cut 6.8% of  the university's budget! That amounts to a total loss of $40 million - a sum that the university believed they had for next year. Quite the change in plans!

As several university presidents have come out and said, their schools, that had previously seen decades of steady growth, were now fighting and clinging on to hopes of just keeping their budgets stagnant!

Now, if universities have less money to play around with, that means that something has to budge. Either they spend less (probably the logical thing to do) or increase revenue. While thoughts of limiting expenditures would be first to mind for most of us common folk, higher education is stuck in a game where they just cannot afford to do that. Universities are constantly trying to fight for students (walking, talking bags of money, as they are otherwise known as) and this is achieved through providing the best facilities and accommodations - everything from new buildings, to more green space on campus, to Taco Tuesdays.

So, if schools want to keep all of these essential services (I mean, Taco Tuesdays are pretty important), then they need to bring in more money. What better way to do that then to raise the tuition fees!

Over the past decade or so, tuition for fees have grown slowly (but steadily) to compensate for the budget cuts. As long as the students are willing to pay, the universities won't be stopping any time soon! And seeing as a university degree is viewed as absolutely essential by the majority of the wonderfully informed masses, people will be lining up with wheelbarrows of ever growing cash to hand over to Canada's institutions of higher education.

The best part of this strategy is that the consumers - the students - don't have much of a choice. Universities offer an "essential" (or at the very least, a desired) good (i.e. a piece of paper that says "DEGREE") and if consumers are unhappy with the sticker price, someone else will gladly jump in and pay full ticket! Boy, the universities sure have us in a convoluted (and very expensive) pickle, eh?



On a tangential point, next week, we'll discuss the implications of the competition between universities fighting for consumers (i.e. students)!

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