I start with a question today which says, is higher education a business? I hear a growing number of professionals advocate that it\u2019s not, and I have to let you in on a little secret \u2013 I couldn\u2019t disagree more.<\/p>\n
Higher education is a unique type of business to be sure, but it is absolutely a business. It\u2019s just that the product sold is different from other products we always buy from the market, and another question says, why is it that this product (higher education) doesn\u2019t follow the law of demand in Rwanda?<\/p>\n
{{Statement from the law of demand}}<\/p>\n
The law states that the more the demand the more the company will raise the cost of that product that is in high demand so they make more money. If demand goes down they will drop prices as much as possible to remain even to try to get demand back up. That\u2019s what it\u2019s all about plain and simple. If prices decrease that means the demand is diminishing. <\/p>\n
Let\u2019s look at the evolution of higher education product in Rwanda if it follows the law of demand?<\/p>\n
Kigali institute of Science and Technology was founded in 1997 with the specific goal of supporting the applied sciences and helping advance Rwanda\u2019s information and communications technology industry. <\/p>\n
The largest university in Rwanda, the Universit\u00e9 Libre de Kigali (ULK), was the first private
\nUniversity to grant its own degrees and Founded in 1996.<\/p>\n
Rwanda\u2019s higher education system has improved dramatically since the genocide, expanding in
\nEnrollment more than ten-fold in the year 2000.<\/p>\n
By 2004, this rate had doubled to 200, but One barrier to entry is the cost of higher education but the. Survivors Fund, a non-governmental organization that supports genocide survivors with services including education, budgets between $450 and $900 for each university
\nStudent it supports. These costs are prohibitive for the vast majority of Rwandans unless they can <\/p>\n
{{Receive government or private support. }} <\/p>\n
Compared with its neighbors, Rwanda\u2019s education system is doing quite well, with some caveats. <\/p>\n
Rwanda\u2019s gross primary enrollment is better than most sub-Saharan countries, although it is <\/p>\n
Somewhat inflated by the presence of older students who are repeating grades or entered late. <\/p>\n
Let\u2019s see compare higher education as a product in 2004-20014 and see if it has followed the law of demand as tuition remains constant, can we call it a perfect competition? I don\u2019t know just read and get the truth.<\/p>\n
National University of Rwanda (NUR)
\n, Kigali Institute of Education (KIE),
\nKigali Institute of Science and Technology (KIST)
\nKigali Health Institute (KHI)
\nSchool of Finance and Banking
\nHigher Institute of Agriculture and animal husbandry (ISAE Busogo)[
\nRwanda Teachers College (RTC)
\nTumba College of technology (TCT)
\nUmutara Polytechnic (UP)
\nIntegrated polytechnic Regional Centre Kicukiro Campus (IPRC )
\nInstitute of Legal Practice and Development (ILPD)
\nCatholic Institute of Kabgayi (ICK)
\nKigali Independent University (ULK)
\nInstitut d\u2019Agriculture, de Technologie et d\u2019Education de Kibungo (INATEK)
\nInstitut Laique adventiste de Kigali (INILAK)
\nAdventist University of Central and East Africa (AUCA)
\nInstitut d\u2019Enseignement Sup\u00e9rieur de Ruhengeri (INES)
\nCatholic University of Rwanda (CUR)
\nKigali Institute of Management (KIM)
\nByumba Polytechnic (IPB)
\nProtestant Institute of Arts & Social Sciences (PIASS)
\nRwanda Tourism University College (RTUC)
\nMount Kenya University Kigali Campus (MKU Kigali)<\/p>\n
When we follow the projection above there has been a big change and an increase in the number of higher learning, institutions in Rwanda since 2004-2014 today but my question remains is this perfect market competition or imperfect market competition.
\nLets watch on the changes of Tuition fees on higher institutions in Rwanda from 2004-2014 and compare with the law of demand?<\/p>\n
Students planning to enroll in public universities in the 2013-2014 academic year have a reason to smile as the government has reduced tuition fees in all tertia\u00acry institutions, going down from Frw 850,000 to Frw 600,000 per year.<\/p>\n
\u201cThe new policy was aimed at enabling more students in public tertiary education to pay afford-able tuition fees and minimize the possibility of losing students who may drop out of public higher learning institutions due to cost,\u201d explained the State Min\u00acister for Primary and Secondary Education, Dr Mathias Hareba\u00acmungu.<\/p>\n
At the same time, however, the government has changed the selection criteria of students to access bursary loans. Stu\u00acdents in Ubudehe category 1 and 2, which include the most vulnerable students, shall re\u00acceive 100% government sup\u00acport in the form of loans for tu\u00acition fees and living allowances while those in categories 3 and 4 will receive 50% of the tuition fee but no living allowances. Stu\u00acdents in categories 5 and 6 whose parents or family are financially well-off will have to fully cater for themselves.<\/p>\n
The new policy is aimed at enabling more students in public tertiary education
\nHe noted that before taking a final decision, Mineduc officials visited higher-learning institu\u00actions to discuss the issue of re\u00acducing the tuition fees.<\/p>\n
\u201cWhile determining the new education policy in our public higher institutions, we also put into consideration the current tuition fees structures in other East African Community mem\u00acber states\u201d Harabamungu said.<\/p>\n
The amendments also include the harmonization of the regis\u00actration and caution fees to Frw 50,000 in all institutions. Ac\u00according to Harebamungu, some public institutions have been charging students different registration and caution fees at Frw 30,000 and Frw 50,000 respectively.<\/p>\n
It seems the measures have been generally well received by students. Benon Mugabo, a senior six leaver who is planning to join the National University of Rwanda, welcomed the reduced tuition fees saying which he said will help more vulnerable stu\u00acdents to get access to education through government sponsorship.<\/p>\n
However, he called upon the ministry of education to come up with mechanisms and strategies aimed at also harmonizing tuition fees at private universities and other institutes of higher learning.<\/p>\n
How education business has not been considered a business product as such?
\nI realize many take offense at the notion that education is a product, but bear with me it\u2019s very untraditional. A student isn\u2019t paying for a diploma or swiping their credit card for a trinket. <\/p>\n
Students enroll at an institution seeking an education, and as institutions of higher education, we provide that opportunity.<\/p>\n
The difference from a traditional business is that institutions of higher education (at least most of them), don\u2019t seek to create a profit in their fee schedule. <\/p>\n
They seek to make enough revenue to pay for current and continued operations, and future growth (new buildings, programs, etc.).<\/p>\n
While many folks don\u2019t like to talk about it, revenue is what allows universities to do what they do best \u2013 educate and promote development. <\/p>\n
However, without a properly structured business model for producing enough revenue to pay for salaries, facilities, programs, etc, any institution of higher education will struggle budgets will be cut, projects delayed, and personnel released (or not re-hired).<\/p>\n
It seems the notion that education is a business is offensive to many in education, and I can\u2019t for the life of me understand why maybe that M.E.D \u2013 MBA combo has clouded my logic? <\/p>\n
{{Could it be that some professionals are simply too far removed from revenue producing operations to see and feel their impact?}}<\/p>\n
I deal with divisional budgets on a near daily basis. Those budgets must be allocated properly so that the division can accomplish its goals of developing our students.
\nWe must keep in mind that the money doesn\u2019t arrive in those budgets by magic and it takes considerable effort to properly structure the business model (revenue acquisition) of the university to meet the operational needs of each department (expenses). <\/p>\n
Now I think it\u2019s important to acknowledge the business operations of the University, however the really important piece is this.<\/p>\n
The operations are properly structured so that the institution can carry out its mission. If the business plan isn\u2019t solid, then the ability to shape a quality education for our students will be compromised.<\/p>\n
I always appreciate diversity of opinion, so if you think I\u2019m a horribly out of touch administrator with a distorted MBA paradigm, I promise we can still be friends.<\/p>\n","protected":false},"excerpt":{"rendered":"
I start with a question today which says, is higher education a business? I hear a growing number of professionals advocate that it\u2019s not, and I have to let you in on a little secret \u2013 I couldn\u2019t disagree more. Higher education is a unique type of business to be sure, but it is absolutely […]<\/p>\n","protected":false},"author":2,"featured_media":2000049878,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","meta":{"archived_slugs":[],"footnotes":""},"categories":[20],"tags":[75],"byline":[2268],"hashtag":[],"class_list":["post-12048","opinion","type-opinion","status-publish","has-post-thumbnail","hentry","category-opinions","tag-homenews","byline-richard-mugarura"],"bylines":[{"id":2268,"name":"Richard Mugarura","slug":"richard-mugarura","description":"","image":{"id":0,"url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&f=y&r=g","alt":"Default avatar","title":"Default avatar","caption":"","mime_type":"image\/jpeg","sizes":[]},"user_id":null,"twitter_handle":""}],"contributors":[{"id":2268,"name":"Richard Mugarura","slug":"richard-mugarura","description":"","image":{"id":0,"url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&f=y&r=g","alt":"Default avatar","title":"Default avatar","caption":"","mime_type":"image\/jpeg","sizes":[]},"user_id":null,"twitter_handle":""}],"featured_image":{"id":2000049878,"url":"https:\/\/en-images.igihe.com\/IMG\/logo\/arton12048.jpg","alt":"","caption":"","mime_type":"image\/jpeg","width":0,"height":0,"sizes":{"thumbnail":{"url":"https:\/\/en-images.igihe.com\/IMG\/logo\/arton12048.jpg","width":1,"height":1},"medium":{"url":"https:\/\/en-images.igihe.com\/IMG\/logo\/arton12048.jpg","width":1,"height":1},"medium_large":{"url":"https:\/\/en-images.igihe.com\/IMG\/logo\/arton12048.jpg","width":1,"height":1},"large":{"url":"https:\/\/en-images.igihe.com\/IMG\/logo\/arton12048.jpg","width":1,"height":1},"full":{"url":"https:\/\/en-images.igihe.com\/IMG\/logo\/arton12048.jpg","width":0,"height":0}}},"_links":{"self":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/opinion\/12048","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/opinion"}],"about":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/types\/opinion"}],"author":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/comments?post=12048"}],"version-history":[{"count":0,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/opinion\/12048\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/media\/2000049878"}],"wp:attachment":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/media?parent=12048"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/categories?post=12048"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/tags?post=12048"},{"taxonomy":"byline","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/byline?post=12048"},{"taxonomy":"hashtag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/hashtag?post=12048"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}