Before providing clarification on the exploration of a potential AIT-Laureate partnership, which was initiated and is guided by the AIT Board of Trustees, it is important to put in perspective, the reasons behind why AIT is exploring a new funding model (NFM).
Asia's success has profoundly altered the issues of the day, and the challenges that AIT must tackle. The entire landscape of higher education and research within Asia and in the globe has changed. When AIT was established in 1959, the region was completely different. AIT was one of the very few, if not the only institute of higher learning in the region which focused on a developmental and capacity building mission at advanced level for the region. It more or less enjoyed a monopoly.
Today, the political environment and context in which AIT was shaped and existed has radically changed. Change is not just a challenge, but also a source of inspiration and opportunity. Compared to a situation where AIT was the only one enjoying a monopoly in this sector, it is now confronted with a scenario in which many nations in the immediate neighborhood are actively inviting top international universities to establish campuses in the country.
AIT's new Charter will further accord the Institute full-fledged international organization status, thus enabling the Institute to take on a much stronger and proactive regional as well as global role into the future, together with its partners. The Charter is recognition of AIT as a regional international platform for collaboration in areas of higher education, research, capacity building and outreach. It is rather a legal model, but not a financial model. It invites countries and international organizations to collaborate using AIT as a platform. The Charter defines the vision and role of AIT and provides a legal framework for it. Combined with a financing / funding model, it will be very powerful.
Economically developed countries are reducing aid as the countries in Asia cross the GDP threshold. Into the future it is likely that they will entirely leave, shifting their development focus to regions such as Africa and other parts of the world, or significantly reduce their level of support to the region which AIT currently serves. Developmental aid into the future will be increasingly provided by emerging economic powers of Asia such as: China, India, and some of the Middle-eastern countries etc. However, these countries are likely to utilize their own national universities and institutions for such developmental related activities and projects.
Since Asia is changing, AIT which is an Asian Institute of Technology must also change. AIT's financing / funding model must reflect the changing times, and it has to be able to move from the donorship model to a partnership one. The previous model worked well earlier, but not anymore. We have to respond quickly to the needs of the market. If we do not, others will take our role and place. Those organizations which can respond faster to needs emerge as winners. The ability to respond to market needs will be very important. I refer to AIT as a flexible institute. AIT must therefore be much better equipped than other universities and institutions in responding to changes in a timely manner, since unlike other national universities / institutions, AIT lacks core funding.
Professor Milton E. Bender Jr. first President of AIT back in 1964 already knew that "year-to-year direct grants by the various member countries could not continue indefinitely," and suggested that the future of the Institute could be assured "by an endowment that would cover all costs except scholarships, which would be sought on an annual basis from governments, foundations, industry etc.". Given the change in the donor and higher learning landscape, it is apparent that AIT cannot sustain itself under the current funding model from 1959, and therefore it is imperative that the Institute develops a new financing / funding model that can sustain it into the long term.
Work on the new funding model was initiated by the Board, as a means to complement the new AIT Charter, which unlike other international organizations, did not include a clause on core or obligatory funding. All contributions are on a totally voluntary basis.
With the above in mind the Board over the past 3 years has been looking at different options. As a first option, request for core funding was made to all of AIT's partner governments, with a special note if Thailand, as AIT's host country could take the lead. The alumni were also invited to submit a proposal along with a financing scheme, and in addition the Board also endorsed the exploration of the engagement of strategic private investor(s) for possible implementation of the "satellite campus model" which was recommended by an external independent assessment.
Similar to the "Satellite Campus Model" which AIT has been discussing over the past few years, the University of Central Lancashire (UClan) has announced the setting up of a full-fledged private university in Thailand by 2014, in partnership with a local private entrepreneur. Students at the University of Central Lancashire have the possibility to register to the university's undergraduate and postgraduate programmers in almost twenty countries on the globe, in Europe, Africa, Asia, the middle-East and the USA. In some of the partnerships, students have the possibility to study an entire programmer of studies, for instance a Bachelor from Year 1 to Year 3 included, and thus graduate from the university, without being physically at the UK campus. The new campus will initially be home to 800 students with a planned capacity of 5000 in ten years.
The prime reason behind the "exploration of a new funding model" is to ensure the sustainability of AIT so that it could continue to impart, along with its partners, its development mandate in an effective manner. The ideal condition would be for AIT to secure core funding from its partner governments. However, under the current donor landscape and internationalization of higher education efforts by countries themselves, it is unlikely that AIT will be able to secure the needed funding. Partner governments will continue their engagement and have assured AIT that they would move more into a project mode and support specific initiatives but not in the form of a "core grant". During my travels accompanying H.E. Dr. Tej Bunnag, Chairman of the Board, to several of our partner countries and meetings with high-ranking officials, the message has been clear that AIT has to get ready and prepare itself for significant reductions in donor money.
However, it is important to add that we have been successful and are actively exploring all possible avenues, such as engagement in post-conflict countries and those in transition, namely Afghanistan, Timor-Leste, Myanmar, North Korea etc. 50 Afghan students under World Bank and other funding is expected to join AIT this year which could increase to 100 by next year, and we are likewise discussing the enrolment of 120 students from Myanmar over the next 3 years.
However, such initiative will not provide for needed funds for the maintenance and upgrade of the AIT main campus, investment in new knowledge areas, building a sufficiently large endowment that could provide scholarships to academically excellent but financially needy students, and in the fulfillment of AIT's ambitions to have a greater presence in the region through the "satellite campus model".
Any strategic option in terms of a new funding model which is eventually chosen must ensure that AIT will be financially attractive and sustainable. The aim must be to develop a new funding model that can achieve among others the following:
# Generate funds for the upgrade of the academic and non-academic facilities of the AIT main campus,
# Scaling up of AIT's operations in a number of targeted countries through the establishment of "satellite campuses", # Investment in new knowledge areas, # Scholarships for needy students, and
# Building up of a strong AIT endowment
With the above in mind, the AIT Board of Trustees, considered the different options and strategies to ensure the future long-term financial sustainability of AIT, and the need for a capital injection and authorized and instructed the Executive Committee to proceed in exploring three options:
1. Continue at the current level of operations or status quo since all the possibilities under it may not yet have been exhausted;
2. Pursue with the relevant Governments and explore the extent to which they can provide funding (in appropriate proportions), and the terms of that funding and the times at which it could be made available; and
3. To enter concurrently into strategic discussions with potential specialized investor(s) as to the terms and conditions on which they would be prepared to operate AIT, and to enter into appropriate non- binding letters of agreement.
It is in the context of item 3 that AIT has been in contact with Laureate International Universities over two years and currently exploring a strategic collaboration, under the guidance of the Board.
2. Does Laureate International Universities plan to invest 41 million USD in upgrading AIT's main campus?
This is not true.
Neither AIT nor Laureate, have made any commitment regarding a potential partnership, which will need to be decided by the new AIT Council. The ongoing discussions with Laureate International Universities, is mainly to define the broad parameters of a potential partnership, and that there is no commitment made whatsoever. In parallel, we are also exploring other funding options including possible support from governments, and through them availing of soft-loans from multilateral funding agencies. The Board has also invited the alumni to present an alternate proposal. In the end, it will be up to the new AIT Council, to make a decision and choose the best option for AIT.
AIT has been working with independent external consultants and legal advisors to represent and protect AIT's interests. All decisions will be carefully vetted and there are certain things on which we will not compromise, namely:
• Mission and intergovernmental status
• Commitment to research and outreach activities
• Academic quality control
• New initiatives will carry the AIT name and convey AIT mission and DNA
3. What the strategic options in terms of forming strong alliances?
Please refer to above answers and Q&A and H.E. Dr. Tej's response.
Any strategic option in terms of a new funding model which is eventually chosen must ensure that AIT will be financially attractive and sustainable. The aim must be to develop a new funding model that can achieve among others the following:
# Generate funds for the upgrade of the academic and non-academic facilities of the AIT main campus,
# Scaling up of AIT's operations in a number of targeted countries through the establishment of "satellite campuses", # Investment in new knowledge areas, # Scholarships for needy students, and
# Building up of a strong AIT endowment
A strengthened AIT, under its new legal standing and position as an International Intergovernmental Organization, can further help promote host country Thailand's ambitions of becoming a regional educational hub.
4. What about the status of AIT's staffs and employee after AIT board approved the new partnership, does Laureate int'l control them?
Under any new funding model, AIT will remain an independent, not-for-profit, autonomous organization under its intergovernmental status, and the status of AIT employees will be within such a framework. Any possible partnership must be a strategic one that is based on a mutually win-win principle. Discussions are not on taking over but potential strategic partnership and alliance.
5. How would you address about the tuition fees for the new plan?
This question is premature since we have yet to define the broad parameters of a potential partnership, and there is no commitment made whatsoever.
Please refer to above answers and Q&A and H.E. Dr. Tej's response.
In addition, the tuition fees depends on many factors, the type of programs, mode of delivery, target students i.e. whether from developing countries or private and public sectors among other factors. One of the key aims of any new funding model has to be to provide full scholarships to academically bright but financially needed students from the region and beyond, which was one of the main and noble reasons for AIT being created.
6. Do you have new plan for bachelor degree?
The AIT Board of Trustees as part of its "AIT Strategy 2013" for the first time in its history decided and embarked on a limited number of programs at the undergraduate level, at its main campus, and innovative forms of integrated bachelors and masters degrees, as well as two-stage bachelors programs, with its institutional partners in Vietnam, Sri Lanka and Myanmar to start with.
Undergraduate programs serve as a feeder mechanism for graduate programs, and will also help in subsidizing the much more costly graduate programs.
The target is foreign students, which is highly beneficial for AIT's host country Thailand, since some of those students would also chose Thai universities, to further pursue their masters and later doctoral studies.
7. AIT alumni association (Thailand) concern after the new charter AIT will change to an international organization, what do you have comments?
At the outset, I wish to state that the majority of the AIT alumni from Thailand and all other parts of the world support and have actively been pursuing with their respective governments, in enlisting their countries as signatories to the new Charter, and in the ratification process.
The processing of the new AIT Charter was initially done by the Executive Committee and after several iterations submitted to the Ministry of Foreign Affairs Thailand through the AIT Board. However, the whole process of drafting the new AIT Charter had to literally be restarted from scratch under an intergovernmental process led by the Ministry of Foreign Affairs Thailand, with the engagement of AIT's partner governments. The final version of the new AIT Charter was considered by all the governments, and a number of governments including Thailand, adopted and signed it on 25 August 2010. In accordance with the law of "International Law" the category under which the new AIT Charter falls into, and as stipulated in new Charter, it will enter in force on 30th January 2012, since the 5th country had already deposited its instrument of ratification with the Ministry of Foreign Affairs Thailand.
The new AIT Charter will greatly help AIT in terms of its ability and capacity to serve as a neutral platform for its host country Thailand and other partners, and enable it to take on stronger and proactive regional as well as global role into the future.
AIT attaining international and intergovernmental status will also add to the prestige and influence of host country Thailand, especially in the context of the regional integration in the ASEAN.
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