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Wednesday, December 8, 2010

IIT & IIM: Do we really need to expand?

As India looks to outpace other countries in terms of economic growth - higher education, because of its criticality, is in the limelight (better late than never). With the focus being on higher education, two of the best known Indian Institutes, IIT & IIM find a mention in our day-to-day discussions. As efforts are being made to increase the number of IITs & IIMs , questions are being raised whether that's leveraging the brand or diluting it?
We do know that India needs more quality educational institutes. With the claim to fame of many IITs & IIMs being “one of the toughest institutes to get into”, it’s more a commentary on the paucity of seats rather than intellectual rigor. So doing nothing is not an option.
Before I start putting down my views, I would bring to your attention a group that opposes expansion of IITs & IIMs even if brown-field i.e. increasing capacity of existing institutes. They argue that it might commoditize the brand (make no mistake quality is not their concern). Such arguments make no sense as IITs & IIMs are not Guccis & Armanis. IITs/IIMs stand for quality not exclusivity. 
Let us now look at some pressing concerns that justify the “need to expand”.
“During 1955 to 1975, the growth rate was high (10.5%) as the IITs were being set up and establishing the UG programme. In the next twenty years, there was a slight increase in the output (less than 1% per year). Since 1995 the growth rate increased to 4.2% per year mainly due to the addition of IIT Guwahati and IIT Roorkee.”
Source: ENGINEERING EDUCATION IN INDIA (2007)

The above data clearly shows that we need Greenfield investments i.e. open new IITs & IIMs as they mainly power the growth in intake. In fact IITs that accounted for 5-8 % of total output of engineers in 1980s now account for less than 1%. 
Many feel that expansion might lead to quality of education being compromised with. It’s a valid concern and needs attention (I will try to come up with remedial steps in the later part of the blog) but do you feel that the quality of new colleges will be worse that the existing private set up where students are forced to join if they can’t make it to the sought after colleges. I don’t think so as the “quality gap” is so enormous that we would certainly find the new ones, in terms of quality, somewhere in-between.
Even though IITs & IIMs might be under funded by global standards but they are still much better off than their Indian counterparts. So the question is whether we would be better off opening new colleges under new names rather than using the umbrella of IITs & IIMs? My answer would be that the name provides them greater attention and care which a new institute desperately needs. NITs have been greatly benefitted by the tag.
We all have great faith in the brand name of IITs & IIMs. Are these brands that weak that expansion would dilute them to the extent that it threatens their existence? That’s not the way, great brands operate. In fact, if properly carried out, expansion would only strengthen them. Greater student & alumni base would mean greater reach, influence and impact. Mind you, it would come in handy when we face the onslaught of foreign universities. By the way these are the outputs of some well known international engineering institutions: Urbana-Champaign 1950 degrees, Purdue 1840 degrees, Georgia Tech 2300 degrees, Tokyo University 3000 degrees, Tsinghua university about 4000. (Source: ENGINEERING EDUCATION IN INDIA, 2007)
Let’s now look at some of the methods that can expedite quality enhancements at the new colleges:
  • With increased intake, we must aim at increasing the bandwidth of well known professors i.e. number of students that s/he can address at a given time. This can be facilitated by ICT based live or recorded lectures. Technological intervention would also help in facilitating better educational aids or resources. The Masters as well as Fellowship programmes need to be strengthened as well.
  • We have buddy system in place where an old IIT/IIM mentors the new IIT/IIM but that doesn’t include student set-up. Peer learning and mentoring by seniors can help students at new IIT/IIM catch up faster. We should provide online platform to facilitate such exchange of information. Student exchange programmes can also be incorporated to facilitate co-operation. 
  • At least for the first few years, mentor IIT/IIM should help out their new members with their placements. It might seem unthinkable given the sort of competition but modalities can be worked out as new IITs/IIMs have relatively fewer intake.
  • Private sector, both India and abroad, have been the biggest beneficiary of the outputs of IITs/IIMs. PPP model for faculty development where industry provides visiting faculties or funding can be looked into. The academic exposure would benefit the employees as it could be a welcome break or “going back to basics” for them. It would be a win-win situation for both as private sector stands to gain through quality output and colleges through quality faculty.
Some reach out only for the riches whereas some reach out to help each other out. So if alumni and students of established IITs/IIMs reach out to their newer counterparts, they can certainly consider themselves better IITians if not prouder. Else a caste system in the intellectual and educational set up is in the making as there is a very thin line between being elite and being elitist. Please avoid it.

Tuesday, November 23, 2010

QE II and the recovery story: Is it time for austerity?

(The article was adjudged the best entry at Consilium – The Policy Design Competition at IIM Lucknow)
Quantitative Easing II better known as QE II has been globally the most  discussed phenomenon in the recent times. Through this mechanism the US Federal Reserve will buyback 600 bn US$ worth  of bonds, at about 75 bn US$ a month, and infuse newly created money in the system. The buyback follows the QE I that saw an infusion of 2 trn US$.

The step can lead to lowering of interest rates or yields in the US thus incentivizing investors to look for greener pastures abroad that provided greater returns. Considering the deflationary concerns in the US and the unusually high unemployment rate, “doing nothing” was not an option for the regulators. With Chinese not allowing Yuan to appreciate to the levels acceptable to the US, Fed through QE has taken it upon itself to undo the “trade imbalance”.  QE through lowering of interest rates aims at spurring demand as well as consumption. This will generate jobs as well as lead to appreciation of asset prices which have touched new lows thus leading to foreclosures and defaults. As far as global economy is concerned, even they can benefit through FII inflows.

Tuesday, November 16, 2010

Bihar: The road-map to prosperity

For the past few weeks, I have been going through various panel discussions, books, blogs & news articles, both national and international that had some relevance or relation to Bihar. Through this blog dedicated to Bihar, my focus will be on laying out a roadmap for a prosperous Bihar. I will include the findings from the above exercises as well as inputs from discussions that I had with my Bihari as well as non-Bihari friends. Let us now start our expedition.


Thursday, November 4, 2010

The Marketing of a Movie


The idea for writing this blog came after I had an almost-live experience of coming across a press conference of the Akshay starrer Housefull (though I sensibly avoided it) when in Ahmedabad. In this blog I would discuss the different stages and ways in which buzz about a movie is created i.e. how a movie is marketed? I would limit myself to only those aspects that pitch the movie to the audience rather than a director pitching it to the producer or to the movie star.


Let’s take the first step of this journey which is also known as the muhurat or the launch. The first few selling points could be the star couple, launch of a new star son or daughter, the acclaimed director or coming together of the pairs rarely seen together. Subhas Ghai’s Saudaagar that saw late Raj Kumar pitted against Dilip Kumar generated a lot of interest as historically as per rumors ego-clashes kept these actors from acting together.  The example of Saawariya that sank without a whimper but was in the news regularly due to launch of Ranvir and Sonam is a case in point. The off-screen chemistry or gossips about the lead couple have been traditionally exploited to create a much needed first impression. The prestige of the occasion is measured by the quality of the audience rather than its quantity i.e. which celebrities made it to the launch.

Sunday, October 24, 2010

Why will the 50-overs format be soon over?

Which are the most awaited series in cricket nowadays? Some may say Ashes, some may rate Border-Gavaskar trophy as their favourite or some may even find Aus-SA test match rivalry exhilarating. Well if I ask you to limit yourself to the “limited overs” format, IPL might be the one to go for. Some cricket enthusiast might even include Champions league T20 (though I won’t). Now let’s qualify it even further. How many 50 over series or tournaments are on your radar? You might vote for Champions trophy. Can you come up with a few more? Seems tough, isn’t it?

Now it’s the turn of the players to pick their favourites. You will find the Aussies and the Poms engrossed with the Ashes or the Indian team bragging about their No.1 tag. The Proteas consider winning Test series in Australia as their biggest cricketing achievement. Come IPL and you would find players braving injuries to showcase their talents. In fact it has even affected their commitments to their national teams.