A piece in the Times Higher Education by Liz Morrish on why she chose to tackle the failings of the neoliberal academy from the outside is very powerful testimony. She argues that “Academia badly needs a manifesto for academic citizenship to counteract the project of managerial colonisation”. Liz is such an important role model and a point of solidarity.
I have a full bursary PhD Scholarship at De Montfort University, starting in October 2017, with the title:
A critical evaluation of the impact of neoliberal policy on the lived experience of school communities in UK primary education
This project will analyse current education policy and policy changes in the context of UK primary school communities. It will situate the development of UK education policy against theories of neoliberalism, and the ways in which resulting discourses have become concretised in Primary Sector practices. The project will investigate the relationships between the claims made for education and social mobility, attainment and human capital theory, in order to model the impact of educational policy on primary school communities. An analysis of power in such communities that include pupils, parents, teachers and governors, lies at the heart of the project. As a result, its methodological framework will be negotiated, for instance to focus on ethnographic research, grounded theory or critical discourse analysis.
For a more detailed description of the scholarship, the subject area at DMU and an application pack please visit http://www.dmu.ac.uk/research/graduate-school/phd-scholarships.aspx.
Please direct academic queries to Professor Richard Hall on +44 (0)116 207 8254 or email email@example.com
For administrative queries contact the Graduate School office email: firstname.lastname@example.org, tel : 0116 250-6309.
Completed applications should be returned together with two supporting references and an academic transcript.
Applications are invited from UK or EU students with a Master’s degree or good first degree in a relevant subject (First, 2:1 or equivalent).
Doctoral scholarships are available for up to three years full-time study commencing in October 2017 consisting of a bursary of £14,296 per annum in addition to waiver of tuition fees.
Please quote ref: HLSFB3
I have an agreement with Palgrave Macmillan for a monograph with the title The Alienated Academic: The Struggle for Autonomy Inside the University. It builds on writing here, and has the following aims.
- The book applies Marx’s concept of alienation to the realities of academic life in the Global North, in order to explore how the idea of public education is subsumed under the law of value.
- The book situates academic labour as a form of productive labour, in order to connect alienation to the ongoing secular crisis of higher education and responses to that crisis.
- The book critiques academic responses to the secular crisis, first as struggles to overcome alienation, and second to reassert autonomy and forms of radical subjectivity.
It is also popularly believed to be possible to “gaslight” a perfectly healthy person into psychosis by interpreting [her] own behavior to [her] as symptomatic of serious mental illness. While “gaslighting” itself may be a mythical crime, there is no question that any social attitude which interprets a given behavior or experience as symptomatic of a generalized incompetence is a powerful creator of shame…
Anthony Wallace. 1961. Culture and Personality.
Education and radical subjectivity
The materialist doctrine that men are the product of circumstances and education, that changed men are therefore the products of other circumstances and of a different education, forgets that circumstances are in fact changed by men and that the educator must himself be educated.
Karl Marx. 1845. Theses on Feuerbach.
For the proletariat can only be liberated from its dependence upon the life-forms created by capitalism when it has learnt to act without these life-forms inwardly influencing its actions. As motive forces they must sink to the status of matters of complete indifference. Needless to say, this will not reduce by one iota the hatred of the proletariat for these forms, nor the burning wish to destroy them. On the contrary, only by virtue of this inner conviction will the proletariat be able to regard the capitalist social order as an abomination, dead but still a lethal obstacle to the healthy evolution of humanity; and this is an indispensable insight if the proletariat is to be able to take a conscious and enduring revolutionary stand. The self-education of the proletariat is a lengthy and difficult process by which it becomes ‘ripe’ for revolution, and the more highly developed capitalism and bourgeois culture are in a country, the more arduous this process becomes because the proletariat be-comes infected by the life-forms of capitalism.
The need to establish just what is appropriate to revolutionary action coincides fortunately-though by no means adventitiously-with the exigencies of this educational task.
Georg Lukács. 1920. History and Class Consciousness: Legality and Illegality.
Education and substantive equality
Black and Third World people are expected to educate white people as to our humanity. Women are expected to educate men. Lesbians and gay men are expected to educate the heterosexual world. The oppressors maintain their position and evade their responsibility for their own actions. There is a constant drain of energy which might be better used in redefining ourselves and devising realistic scenarios for altering the present and constructing the future
Audre Lorde, Sister Outsider: Essays and Speeches
The academy is not paradise. But learning is a place where paradise can be created. The classroom with all its limitations remains a location of possibility. In that field of possibility we have the opportunity to labour for freedom, to demand of ourselves and our comrades, an openness of mind and heart that allows us to face reality even as we collectively imagine ways to move beyond boundaries, to transgress. This is education as the practice of freedom.
bell hooks. 1994. Teaching to Transgress. Education as the practice of freedom, London: Routledge.
Going to university is still a big decision, and it’s a choice which more and more of you are making. We want that decision to pay off, to set you up for life, and our reforms will make sure universities do just that.
Jo Johnson. 2016. Open Letter to Students.
What if we’re actually not crazy? What if wanting to work one full-time job and have the ends not only meet but actually overlap a little is NOT an entitled pipe dream?
The sheer stress of existing in today’s world is enough to give anybody an anxiety disorder. Add the fact that we’re told over and over again how we need to just bootstrap it, because generations before us handled life just fine, and you have a recipe for disaster. The generations before us could afford college tuition on minimum wage and didn’t have bosses who expect us to be tied to our devices at all hours.
Born Again Minimalist. 2016. The gaslighting of the millennial generation.
the job wasn’t yet on offer to me. I was wanted for another trial shift on Thursday, and perhaps the weekend, to see if I could keep up on a busy night and then I’d get paid for any time over the unpaid 2 hours of each shift at the weekend when they pay all staff weekly, cash-in-hand, avoiding tax and, of course: no sick pay, no set hours.
So far, so exploitative. But the part of the conversation that most stood out was the guy’s pathetic attempt to make me beg for this below-minimum wage kitchen porter job. “You have to show us that you really want this,” he challenged me, like he was an X Factor judge and I the contestant desperately seeking his endorsement. “Do you just want the work, to earn your money and go home? Or do you want a career here?” I had to repress laughter at this point. The guy clearly didn’t even believe in this spiel, it’s just the kind of crap that he was supposed to say but he was awful at it. Perversely, I almost felt sorry for him for being such a shit capitalist.
The point here is that you’re not just supposed to be paid nothing and get treated like garbage, you have to act like this is all part of your career plan. The demand here is a performative one. I had to “show him that I wanted it” – a demand that is largely unquantifiable but nevertheless psychically demoralising, designed perhaps to differentiate the boss from their staff affectively, even morally, in an industry of surprising equality of immiseration between the ostensible capitalist and the worker.
Michael Richmond. 2016. Unpaid Trials & Self-Exploiting Entrepreneurs
Sometimes people hold a core belief that is very strong. When they are presented with evidence that works against that belief, the new evidence cannot be accepted. It would create a feeling that is extremely uncomfortable, called cognitive dissonance. And because it is so important to protect the core belief, they will rationalize, ignore and even deny anything that doesn’t fit in with the core belief.
Franz Fanon. 1952. Black Skin, White Masks.
If providers are unable to provide courses that students want in a financially sustainable way it is in the long-term interests of students and the taxpayer that they close down. This is of course compatible with government subsidies of certain courses, such as STEM (science, technology, engineering and mathematics), that are deemed necessary for economic growth.
Andrea Coscelli. 2016. Competition in higher education is in the interests of students
For choice and competition to work, students need access to reliable and comparable information on HE courses. Changes made to the provision of information must not undermine students’ ability to make choices.
Like you, we consider that the TEF should be made as effective as possible in supporting student choice and providing incentives for providers to compete on quality. Students choosing between courses at different institutions are likely to be most interested in the quality of the specific course for which they are applying, rather than the institution generally, and as such are likely to derive significantly more value from a TEF award that relates to specific disciplines. We therefore welcome your proposals to run “disciplinary pilots” of the TEF, and we recommend that you move to a disciplinary level TEF as soon as practically possible.
Andrea Coscelli. 2016. CMA recommendations on the Higher Education and Research Bill.
Perhaps it’s just that the government doesn’t actually want to measure teaching excellence. Maybe we really want to measure learning outcomes and someone got the name wrong. Maybe teaching excellence is just one of a myriad of things that we want to measure, and TEF was just the catchiest acronym. Either way, I think it’s time that we ask ourselves, “what is it that we actually want to measure?”
For there to be any confidence in TEF, there must be acceptance that the metrics, their benchmarks, and the weight attached to them give valid results. We have heard that the TEF assessment panel will operate with all the necessary contextual information, which gives some comfort. But what is in the metrics, what is benchmarked, and what is flagged are crucial.
Jackie Njoroge. 2016. Three important questions about TEF metrics.
Choose what you internalise and re-produce
as billions of young people based in least developed countries might encounter much greater difficulty than the 1970s- 90s generation in integrating into the global economy. In a world of ‘declining returns on humans’ having too many young people might be a recipe for social and political dislocation rather than growth, even if the business climate is improved. In our view, it is quite likely that when historians examine the last one hundred years, they would classify 1950s-1990s as the ‘golden age’. Although there would be inevitable academic disputes about exact boundary (i.e. whether the golden age ended in 1980s or whether there were two golden ages, i.e. 1950s-mid 1960s and 1980s-90s), however, as an overall period, we think it was time of increasing opportunities and generally rising returns on human capital. However, 2000-2030s will likely be classified distinctly differently.
Macquarie Research. 2016. What caught my eye? v.61 ‘Lumpenproletariat’ & deglobalization.
If there is no price signal, complex reforms have to be put in place to replicate its function or the market is no more efficient as an allocator of resources than an alternative form of organisation such as central planning. And there would be no point in engaging in extensive reforms to university funding.
The Teaching Excellence Framework is best understood then as an effort to create a proxy signal to indicate quality to potential students and rival institutions through its gold, silver and bronze badges. (In contrast to this consumer intervention, the Research Excellence Framework is a public procurement tendering exercise where future research is funded on the basis of past results).
As a concluding aside, if ‘neoliberalism’ is to be more than a shibbloleth when discussing HE reforms, then its more substantive meanings are to be found by understanding why markets are desired and what impediments there are to their implementation. This then makes the contours of future struggle clear – only by eroding the subsidy in student loans can tuition fees (as they rise and differentiate) become the prices they are so obviously meant to be.
Andrew McGettigan. 2017. Why undergraduate tuition fees are not prices when backed by SLC loans.
Jehu has it.
Communists have to decide how they see the next few years unfolding: Are we simply against Trump or the system that made Trump possible as well. The Democrats, who control the movement at present, want to limit the aims of the movement to an anti-Trump agenda. Communists need to sharpen their critique of Trump to go beyond the merely superficial differences between Trump and Pelosi/Schumer.
From the major, surface eruptions of a failing system in inexorable crisis like Trump and Brexit, to the more localised attempts to overcome stagnation and to repatriate social wealth from the public to the private, like the assaults on national, public education, the question is how do we theorise and the dissent, organise and resist on structural/theoretical and concrete/local levels? It is inside and across education that this currently exercises me. What does this mean for those who labour inside schools and universities? What does it mean for the curriculum? How is the field of struggle widened out beyond the classroom?
This recognises the discussions about whether, in the current moment, Trump is weak and incompetent or enacting a frightening escalation that could presage a coup. However, in either analysis we must seek to grapple with Brian O’Neill’s echo of Jehu:
So far, sadly, the opposition to the order has been a kind of unreason, too. It has substituted the cool, tough, political critique of the order that we need with its own brand of fearmongering and the deployment of an ahistorical dread about the return of Nazism.
Our response needs to engage with: the relationship between education and the State; the value and purpose of our everyday interactions with students and their families/communities; the ways in which education enables the social metabolic reproduction of both capitalism and the capital system; and what is to be done as a pedagogic project at the level of society. Simply engaging in refusing the TEF or promoting no borders or whichever rearguard-tactical-response, without a theoretical analysis of why we are in this hateful space, simply leaves us at the mercy of the next demagogue, howsoever they smile whilst issuing kill lists or refusing to disclose whether any detainees have been victims of sexual violence inside Yarl’s Wood or banning visas for refugees from Iraq for six months or wrongly deporting 48,000 students, and on and on and on. And simply looking at Trump as the distilled moment of this excess enables us to continue-on, wilfully ignorant of our own place in the reproduction of oppression.
Moreover, to expect that we can outsource the solution to the next set of politicians is naïve: “The executive of the modern state is but a committee for managing the common affairs of the whole bourgeoisie” (Marx, Communist Manifesto). In part this is because the State functions inside-and-for capitalism and is historically and materially contingent on the capital system. However, struggles between states also act as critical moments of antagonism as they vie to become the state of the capital system as a whole. As István Mészáros notes
Thus the reality is not the elimination of nation-state aspirations but an overheating cauldron of perilous contradictions and antagonisms on a variety of levels, ubiquitously asserting themselves among the given and aspiring nation-states and even within the framework of the state formations invented as the projected solution of past inter-state antagonisms, like the—far from unified—European Union…
The overwhelming historical failure of capital was—and remains—its inability to constitute the state of the capital system as a whole, while irresistibly asserting the imperatives of its system as the material structural determination of societal reproduction on a global scale. This is a massive contradiction. Inter-state antagonisms on a potentially all-destructive scale—as presaged last century by two world wars still without the now fully developed weapons of total self-destruction—are the necessary consequence of that contradiction. Accordingly, the state that we must conquer in the interest of humanity’s survival is the state as we know it, namely the state in general in its existing reality, as articulated in the course of history, and capable of asserting itself only in its antagonistic modality both internally and in its international relations.
A response cannot come from accepting the reduction of individuals to their labour-power alone, as is evidenced in State-based proscriptions from both left and right, and in Capital’s desire to subsume all activity under the labour theory of value. Any such response, whether it is about no borders and the free movement of people (as human capital) or the human rights of refugees that are horrifically ignored because they have no market-value (recalling the New Car Recall scene in Fight Club), have to be situated against new forms of social solidarity that are rooted in directional demands and that emerge from new readings of equality, democracy and co-operation.
We can only read issues of equality, democracy and co-operation as they emerge historically and materially from the economic system in which they are subsumed and re-purposed, in this instance the distribution and ownership of labour-power as a commodity. Inside capitalism this then leads to all manner of objectionable ways of categorising individuals based on their human, social, intellectual, cognitive capital, or their being lazy, subhuman or second-class, or their re-composition as skilled/menial workers, whilst all the time we are proletarianised and stripped of our humanity.
Right by its very nature can consist only in the application of an equal standard; but unequal individuals (and they would not be different individuals if they were not unequal) are measurable by an equal standard only insofar as they are brought under an equal point of view, are taken from one definite side only, for instance, in the present case, are regarded only as workers and nothing else is seen in them, everything else being ignored.
In a higher phase of communist society, after the enslaving subordination of the individual to the division of labor, and therewith also the antithesis between mental and physical labor has vanished; after labor has become not only a means of life but life’s prime need; after the productive forces have also increased with the all-round development of the individual, and all the springs of co-operative wealth flow more abundantly – only then can the narrow horizon of bourgeois right be crossed in its entirety and society inscribe on its banners: From each according to his abilities, to each according to his needs!
Marx, K. 1875. Critique of the Gotha Programme.
This is, of course, important in the USA where Yonatan Zunger argues that amongst other groups academics will come under duress (through funding restrictions, issues to do with tenure etc.) ‘because they’re part of those “elites” which are a convenient target for blame, and are also likely to be vocal opponents of the regime.’ Enclosures of academic freedom will be made necessary, in order to decommission the “expertariat” that is seen to threaten the true freedom of the market. And we have already seen Professor Watch-Lists.
We have seen the attack on experts and intellectuals in the UK too, and the denigration of teachers as professionals alongside the reduction of the curriculum to economic outcomes and value-oriented services, which demand performance management and perpetual assessment, and that lead to embodied illness and mental health under siege. And so we might ask, whether being on the streets to question Trump and to push back against State visits is enough? Or whether this is a counter-hegemonic moment when the failing system reveals its antagonism towards humanity as anything other than human capital. And we might ask about the role of educators and students in organising a new social movement, with new directional demands, which lie beyond the organised labour movement and instead coalesce as a new labour movement of the under/over/precariously employed and those who labour for the social reproduction and care of society more widely.
A social movement is a counter-force within an arena of power. At its best a counter-force destabilizes that arena and creates social and political openings, in the moment and in its wake. The longer a crowd exists the more dangerous it becomes. It’s there, in those openings, that we find fertile ground for broad and interpersonal solidarity, trust, dreams of the future, collective desire for anything. That is where we build our positive prescription, our visions. Meaningful, useful dreams are only dreamt in struggle, in the spaces opened and left behind by the fight.
Such a movement focuses upon critiques of equality, democracy and co-operation in governance, and takes the rejection of the market and of competition, and the mediations of exchange value, private property and the division of labour, as a pedagogic project to be grappled with at the level of society. As such it reinvents the curriculum-as-praxis inside and outside of the classroom. This is the moment at which we attempt to shape a curriculum that is beyond borders, through engagement with the voices of delegitimised academics and students, which make clear how the ongoing colonisation of the curriculum by capital is reflected in its explicit links to colonial repression.
Thus, in responding to social vulnerability, there is a need for those who labour inside the university as academics and students to re-imagine new, public forms of HE. One possibility is through engagement with the voices of delegitimised academics and students, which make clear how the ongoing colonisation of the curriculum by capital is reflected in its explicit links to colonial repression. Such a revelation is a search for radical democracy inside the university, framed by research-engaged teaching and learning that is deliberately militant, public and counter-hegemonic. This positions the curriculum as contingent upon, and sensitive to, societal values, objectives, and risk perceptions, with recognition of diverse interests, circumstances, social-cultural contexts, and expectations. This is a pedagogical project at the level of society.
Hall, R and Smyth, K. 2016. Dismantling the Curriculum in Higher Education.
A pedagogical project at the level of society. As a counter-hegemonic project.
I have a chapter in an edited collection called Negotiating Neoliberalism: Developing Alternative Educational Visions. The Sense Publishers website contains previews of the first two chapters.
My chapter is entitled: Against Academic Labour and the Dehumanisation of Educational Possibility.
The flyer for the volume, with contents, is here.
The context and focus/key areas from the original proposal are appended below.
This edited collection of papers illustrates the continued weaknesses and failings of neoliberal education. It highlights the paradoxes in the broader arguments used to substantiate its perpetuation and intensification, and the striking deficiencies and flaws of its central tenets and mechanisms. The collection provides examples of a range of alternative systems, discourses and action in order to illustrate and re-imagine possible alternatives that can challenge the current ‘orthodoxy’ and taken for granted assumptions that have dominated educational debates in the ‘age of austerity’.
It is argued that the proliferous nature of neo liberalism has seeped into core educational debates and practice to such an extent that mainstream, and arguably ideologically informed, discourse regarding the purpose and direction of education largely ignores, and deflects discussions away from, potentially viable alternatives. This ‘hegemonic newspeak’ (Bourdieu & Wacquant 2001) becomes normalised and actualised through discourse symbolically pronouncing a new ‘knowledge society’, which is accompanied by an ideological fetishism surrounding ‘school improvement’, ‘school effectiveness’ and ‘educational change’. However, the concomitant ‘logic’ suggests such goals can only be delivered through dogged adherence to a set of externally imposed ‘standards’, driven by new forms of educational ‘leadership’ and embedded in practice through managerialist practices orientated toward abstract performativity measures.
Yet the paradox in the discourse is clear. Despite decades of policy initiatives aimed at driving up ‘standards’ and delivering ‘educational improvement’, neo liberal policies have served to work to the contrary. Inequalities continue to be reproduced and exacerbated. The extent of system and school improvements and effectiveness remain questionable at best, even when measured against the rigid, limited and abstract measures imposed upon education. Other, potentially more meaningful, signifiers of educational quality have been marginalised in favour of rigid, technicist abstractions that remain incapable of delivering wider change and development. Educators professional autonomy is increasingly being diverted toward an instrumentalist servicing of managerial accountability functions, which ironically have little to do with the qualitative processes of education. As a result we are seeing an increasingly demoralised and de-professionalised workforce. The ‘paradox of performativity’ is that moral and professional commitment and autonomy are eroded, which in turn are detrimental to quality and performance. This in turn raises questions as to whether the wider motivations and dogged pursuit of performativity measures are actually intended to de-professionalise and de-stabilise education as an essential condition to ensure further privatisation is publicly viable. In short, neo liberal education is fundamentally flawed and its logic misplaced, or perhaps misdirected.
Focus and key areas
A range of key elements and aspects that are central signifiers of neo liberal education are explored and critiqued, alongside an exposition of alternative systems, discourse, approaches and practice, and a range of theoretical and conceptual representations.
These include: accountability, performativity and managerialism; forms of measurement, assessment and attainment; critique of learning outcomes and accountability; the marketization and increasing corporate sponsorship of education; privatisation, educational commodification and educational policies; free schools; academies and provider-consumer relationships and ‘logic’ in higher education; profit, labour and surplus; the role of students and educators; dehumanising education and alienation; freedom, choice, commodification; global education reform movements and reproduction; inequality, power, freedom, choice and repressive ideology; historical perspectives on neo liberal education; refraction, variation, neo liberalism and professional knowledge; flexi-schooling; co-operative alternatives; deschooling; and humanist education.
ONE. Universities as tools of economic progress and social mobility.
The HE Bill reaching the Lords has catalysed a fresh discussion around ideas, first, of the University itself, and second, of academic freedom. These are the perceived form/purpose and content of our higher education system. Lord Wolf’s first amendment to the proposed Bill sought to specify what a university is understood to be, and attempted to stitch into this an idea of autonomy and freedom.
UK universities: functions
(1) UK universities are autonomous institutions and must uphold the principles of academic freedom and freedom of speech.
(2) UK universities must ensure that they promote freedom of thought and expression, and freedom from discrimination.
(3) UK universities must provide an extensive range of high quality academic subjects delivered by excellent teaching, supported by scholarship and research, through courses which enhance the ability of students to learn throughout their lives.
(4) UK universities must make a contribution to society through the pursuit, dissemination, and application of knowledge and expertise locally, nationally and internationally; and through partnerships with business, charitable foundations, and other organisations, including other colleges and universities.
(5) UK universities must be free to act as critics of government and the conscience of society.
Contestation in the Lords, and between Lords and Commons, reveals the extent to which policymakers are struggling to make higher education fully subservient to the needs of the wider economy. Moreover, it reveals the constrained position of the opposition to the Bill within this dominant, economic narrative. This is a moment in which education as a fulfilling life-activity, or a process of emancipatory self-actualisation is subsumed and then transformed, precisely because that wider economy has been stagnating for almost a decade, with low levels of profitability and investment, and as a result weak growth and productivity. Moreover, it risks further contraction in the face of Brexit.
As the economic base of society weakens, the infrastructure that emerges from it and which helps shape it is damaged. The on-going (historical) narrative that seeks to re-engineer (materially) universities/higher education by subsuming them explicitly under processes for generating economic growth was re-emphasised by Jo Johnson, Minister of State for Universities, Science, Research and Innovation, in his response to the first Committee day in the Lords.
[T]here is an urgent need for innovation, particularly in the form of flexible programmes with strong employer engagement offering faster routes into work than the traditional three-year residential degree programme.
For too many high quality new institutions able to do just this, however, the path to degree awarding powers is blocked by inherently anti-competitive requirements that force them to find a competitor who will ‘validate’ their provision before they can issue their own degrees.
This Bill will make it easier for a new generation of institutions to cater to the aspirations of a new generation of learners and deliver the skills necessary to keep our economy globally competitive, while maintaining the high standards that underpin its international reputation.
It will also ensure that ensure that our universities are delivering for the students and families who invest so much in a university education. Those paying £9,000 per year deserve value for money and this Bill will deliver it.
We will not tell universities what or how to teach, but we will demand that their teaching delivers good outcomes, in the form of students who complete their degrees and progress to highly skilled employment.
One thing, though, will not change through these reforms and that is our commitment to institutional autonomy and academic freedom, the essential attributes for the enduring success of any system of higher education.
This Bill is no grab for control of an autonomous sector.
This is a Bill that consistently recognises and protects that autonomy. And it does so while removing a regulatory system from a bygone era, and replacing it with framework that can truly respond to the challenges of the 21st Century.
Jo Johnson: We must break open the higher education closed shop. Conservative Home. 10 January 2017.
This is a call for re-engineering the terrain of higher education by: innovating in the creation of new academic commodities through which students and their families, operating as firms, can invest in their own human capital (as self-exploiting entrepreneurs); speeding-up the circulation of those academic commodities by overcoming practices that are inherently anti-competitive; connecting the purpose of higher education and universities to the realities of the global economy, and hence of monopoly finance capital; and focusing teaching on good outcomes, as defined by degree-completion and progress to highly skilled employment. Johnson’s claim to recognise and protect institutional autonomy can only be situated inside these political economic realities, which are themselves shaped by an on-going (secular) crisis of capitalism.
One of the manifestations of that economic crisis is how it continues to leach (toxically) into the politics of higher education, and the social relationships that define the university and its perceived autonomy. Those who argue for maintaining academic autonomy, in terms of the management and governance of standards, regulation and quality, situate that plea against a diverse ecosystem of providers that “can create, develop and teach an incredibly wide range of courses that meet the needs of over 2 million students and responds to the workforce needs of the country.” A struggle over standards and regulation, as mediations of autonomy, is a struggle over power and is a political manifestation of an economic reality that grounds the university in the production, circulation and accumulation of capital. Thus, Lord Stevenson, shadow higher education minister in the House of Lords, argued that:
Universities across the world have multiple and complex roles in society – something from which we all gain. They are at their best when they are autonomous independent bodies, with the freedom to develop a range of missions and practices. While at the same time being public institutions, although not in the public sector, they serve both the knowledge economy and the knowledge society, and are tools of economic progress and social mobility.
Moreover, he then situated academic freedom against that reality of universities as tools of economic progress and social mobility. Stevenson went on:
Universities also use the precious safe harbour of academic freedom to seek for truth wherever it is to be found, and publish it for all to see and discuss. They transmit and project the values of openness, tolerance, enquiry and a respect for diversity that are key to civilisation in our increasingly globalised world.
TWO. Objectification for-profit
Those values that universities allegedly transmit and project stand on shaky ground (witness struggles and occupations on campuses that protest: first, labour rights, casualization and precarity; second, the implementation of the TEF; third, rent hikes; fourth, cops on campus; fifth, Rhodes Must Fall; and so on). Those same values of openness, tolerance, enquiry and a respect for diversity are framed within a specific capitalist formulation and re-production of the world, which has a limited toleration for dissent. This is made starker as the overall (lack of) profitability of the economy defines what can be tolerated.
This is amplified by a further amendment to the Bill in the Lords. As Andrew McGettigan notes, the second amendment “on the establishment of universities – opens with two clauses that will hurt the government further with their bar on profit.”
(1) UK universities must be bodies corporate, primarily located in the United Kingdom, and established on a not-for-profit basis.
(2) UK universities are public bodies, contributing to society through the pursuit of education, learning, and research at high levels of excellence.
Johnson continually fudges the main issue – access to public funding. What the new providers want is subsidies for their profit-making.
In the wider political economic realities inside which higher education and universities are reproduced, the first two amendments are inextricably linked. What can autonomy and freedom possibly mean inside organisations that are themselves objectified for-profit, and inside which the logic of money (as debt, surplus, external income, consultancy, spin-off or spill-over and so on) is so dominant?
this process of objectification in fact appears as a process of dispossession from the standpoint of labour or as appropriation of alien labour from the standpoint of capital.
Marx, K. 1993. Grundrisse: Foundations of the Critique of Political Economy. Penguin: London.
The values of openness, tolerance, enquiry and a respect for diversity, and the potential for autonomy and freedom, and their social potential rather than their fetishized position inside objectified institutions, ought to aim at the enrichment of the human being, for her inner, socialised wealth rather than her private enrichment.
The need for money… the true need produced by the modern economic system, and it is the only need which the latter produces.
Marx, K. 1844. Economic and Philosophical Manuscripts of 1844.
Increasingly money replaces the real object and dominates the subject. In it needs and powers coincide in an abstract way: only those needs are recognized as real needs by an alienated society which can be bought by money i.e. which are within the reach and power of money.
Mészáros, I. 2005. Marx’s theory of Alienation. Merlin: London, p. 179.
What is hidden, or revealed, depending on the level of analysis is the idea/purpose and content of the university as it is structured through its (academic) labour. As István Mészáros notes in his work on Marx’s theory of Alienation, as capitalistically-structured activity, labour is the ground of all alienation, structured through human activity, the division of labour, commodity exchange and private property. The socio-historical mediations of private property – commodity exchange – division of labour infect the university just as they do any other firm, and education as they do any sector of the economy. What the HE and Research Bill seeks to do is to amplify this process of objectification, such that academic labour is increasingly alienated.
Many of the rebuttals of the proposed Bill are manifestations of moments of alienation, through which productive activity (and hence the development of self-consciousness) is objectified. Thus, Warwick for Free Education stated: “We are at a truly pivotal moment for higher education. This government is set to usher in the full marketisation of the sector, with devastating consequences for both students and staff.” In announcing the NUS’s NSS boycott, Sorana Vieru argued:
there’s one more myth that has to be busted – that this government cares about students. In parliament on Monday, pushed on the link between TEF and fees, Jo Johnson MP said that he had heard no voices in the education sector speaking out against the link between TEF and fees. Either Johnson can’t hear our voices, has forgotten meeting us to talk about the TEF or he doesn’t see us as part of the system.
Not content with dismissing our existence, Johnson has also conceded that these metrics are not perfect and are instead part of a “pilot”. If this doesn’t tell you everything you need to know about this government’s attitude to students I don’t know what will. An experiment with our education, warned against by experts, which will skyrocket fees, change the face of the education sector and potentially close institutions down.
Cares, attitudes and needs are shaped by productive activity, in the form of academic labour, which produces an alienated consciousness that reflects alienated activity. It reflects our labour’s self-alienation.
Thus, throughout much of this discussion there is an idealisation of the abstract (economic, productive, entrepreneurial) individual. As Mészáros argues (ibid., p. 81), ‘In place of man’s [sic.] “consciousness of his species” we find a cult of privacy and an idealization of the abstract individual.’ This idealisation is rooted in the governing mediations of private property – commodity exchange – division of labour, through which, first the university is being re-engineered (subsumed), and second, the cares, attitudes and needs of students and staff (as forms of autonomy) are further alienated. Overcoming these alienated mediations and transcending, overcoming or suppressing alienation depends not on abstracted ideals of academic freedom or institutional autonomy, or fetishized values locked inside institutions that are being made unsustainable, but concrete practices aimed at:
The supersession of alienation through the abolition of “alienated mediation” (i.e. from capitalistically institutionalized second order mediation) through the liberation of labour from its reified subjection to the power of things, to “external necessity”, and through the conscious enhancing of man’s “inner need” for being humanely active and finding fulfilment for the powers inherent in him in his productive activity itself as well as in the human enjoyment of the non-alienated products of his activity [sic.]
Mészáros, I. 2005. Marx’s theory of Alienation. Merlin: London, pp. 91-2.
Or as Lenin argued (General Works, Vol 38), this work aims at transforming the practically alienated relation of man to his objective essence, revealed though private property – commodity exchange – division of labour.
THREE. Paradise lost
So our responses to these processes are the revelation of the objectification and alienation of our work as they are intensified through capitalist crisis. Our screams of outrage at the lack of attention to our cares or needs are a function of the enclosure of this field of possibility. Such enclosure is described for the natural sciences in the process of industrialisation by Mészáros, and we might also reflect on how this academic life is subsumed inside the circuits of capitalist reproduction.
The role of social needs and preferences in scaling down the infinite to the finite is extremely important. However – and this is the point Marx is making – in an alienated society the process of scaling down itself, since it is “unconsciously” determined by a set of alienated needs, is bound to produce further alienation: the subjection of man to increasingly more powerful instruments of his own making. The structure of scientific production is basically the same as that of fundamental productive activity in general (all the more because the two merge into one another to a considerable extent): a lack of control of the productive process as a whole; an “unconscious” and fragmented mode of activity determined by the inertia of the institutionalised framework of the capitalistic mode of production; the functioning of “abstractly material” science as a mere means to predetermined, external, alienated ends. Such an alienated natural science finds itself between the Scylla and Charibdis of its “autonomy” (i.e. the idealisation of its “unconscious”, fragmentary character) and its subordination as a mere means to external, alien ends (i.e. gigantic military and quasi-military programmes, such as lunar flights). Needless to say, the subjection of natural science as a mere means to alien ends is by no means accidental but necessarily connected with its fragmented, “autonomous” character, and, of course, with the structure of alienated productive activity in general. Since science develops in a fragmented, compartmentalised framework, it cannot conceivably have overall aims which, therefore, have to be imposed on it from outside.
Mészáros, I. 2005. Marx’s theory of Alienation. Merlin: London, pp. 102-03.
This lack of control, fragmentation and abstraction of possibility, through which capital defines and repurposes autonomy as alienated activity (private property – commodity exchange – division of labour) is contrasted with the ‘twofold alienation of the sphere of speculative thinking’, such as philosophy. Here we might think of the ways in which autonomy and freedom are constricted through the fragmentation and abstraction of disciplines and institutions, under the iron law of competition. Thus, alienation extends:
(1) from all practice – including the, however alienated, practice of natural science – and (2) from other theoretical fields, like political economy, for instance. In its speculative “universality” philosophy becomes an “end in itself” and “for itself”, fictitiously opposed to the realm of means: an abstract reflection of the institutionalised alienation of means from ends. As a radical separation from all other modes of activity philosophy appears to its representatives as the only form of “species-activity”, i.e. as the only form of activity worthy of man as a “universal being”. Thus instead of being a universal dimension of all activity, integrated in practice and in its various reflections, it functions as an independent (“verselbständigt”) “alienated universality”, displaying the absurdity of this whole system of alienations by the fact that this fictitious “universality” is realised as the most esoteric of all esoteric specialities, strictly reserved for the alienated “high priests” (the “Eingeweihten”) of this intellectual trade.
Mészáros, I. 2005. Marx’s theory of Alienation. Merlin: London, p. 103.
Thus, as described for the natural sciences and philosophy under industrial production, so we might analyse the entrepreneurial university and the teaching excellence of fragmented disciplines. As a result, we see the private property of intellectual or cognitive capital, made productive through commodity exchange, and reinforced through the division of labour that is reproduced as precarious employment or performance management or teaching-only contracts. The lack of a theoretical position taken by those who practice academic labour (and the general lack of praxis that emerges inside universities except in specific, exceptional circumstances) leaves discussions over autonomy, freedom, and the values that universities allegedly transmit and project as a form of academic labour’s self-alienation.
If the “abstractly material” character of the particular natural sciences is linked to a productive activity fragmented and devoid of perspectives, the “abstractly contemplative” character of philosophy expresses the radical divorce of theory and practice in its alienated universality. They represent two sides of the same coin: labour’s self-alienation manifest in a mode of production characterised by Marx and Engels as “the unconscious condition of mankind”.
Mészáros, I. 2005. Marx’s theory of Alienation. Merlin: London, p. 103.
This position is reinforced because the form of private property – commodity exchange – division of labour that is reproduced through academic labour reinforces what Marx called ‘Movable property’s civilised victory’. This is the uncontested truth that the increasingly globalised world, shaped by transnational competition and dominated by monopoly finance capital, demands the production and circulation of material and immaterial commodities as the pure expression of capital. Marx argued that this process reveals capital’s strong points (beyond its weak ones, such as its surface immorality like the reduction of student life to employability) but that in the process of its becoming fully-developed labour is more fully estranged or alienated.
This underpins the possibility of overcoming such an estrangement from what it means to be human, in particular where alienation is revealed as ways of living that are being made unsustainable. This might include the increases in student debt, the increase in precarious employment or casualization, the reduction in costs (wages) of teaching at the expense of investment in capital infrastructure and buildings, the intolerance of dissenting positions on campus, and so on. For Marx, this reveals the tensions between marketised, economised existence that is predicated on the ‘increasing value of the world of things’ at the expense of the ‘devaluation of the world of men’. The questions are whether that world can be superseded, and what is the role of the University in that overcoming?
FOUR. Sociality: overcoming a terrain of alienation?
Human nature (“sociality”) liberated from institutionalized egoism (the negation of sociality) will supersede “reification”, “abstract labour”, and “imaginary appetites”. it is not difficult to see that as long as competition is the governing power of production, or in other words, so long as “cost-effectiveness” is the overriding principle of productive activity, it is quite impossible to consider the worker as a man at the various stages and phases of the cycle of production. Human activity under the conditions of competition is bound to remain wage-labour, a commodity submitted to the “natural law” of the objective, independent needs of competition. Similarly, it is easy to see the relevance of the supersession of competition to the achievement of the human requirements of the self-fulfilling activity (as opposed to “abstract labour”, the negation of sociality) and to the elimination of “imaginary appetites”.
Mészáros, I. 2005. Marx’s theory of Alienation. Merlin: London, pp. 149-50.
The life of the university is increasingly regulated and governed as coerced activity. It is against this reality that thinking of academic freedom or university autonomy becomes meaningless through its particularity rather than its universality. This is because projecting such states or values into a wider society that is itself grounded in coerced activity is meaningless. Moreover, what is being projected into society is the value of abstract labour (for entrepreneurship or employability or knowledge economy) rather than concrete, human activity (to tackle crises of social reproduction like climate change or poverty). The key is less fetishized autonomy and freedom inside universities, and more a struggle for universal overcoming ‘in the political form of the emancipation of the workers’ (Marx).
Freedom, academic or otherwise, needs to be focused on a transcendence of alienation in social practice, and a recognition that achieving freedom or autonomy can only be derived from sociality constructed through social processes and activities. This is our common ability to do and our comprehensive social practice. It is only by overcoming the mediations of private property – commodity exchange – division of labour across a social terrain, rather than in the objectified setting of reified academic practice, that something more socially-useful might be enacted. This means opening-up a terrain for directional demands and the social strike, rooted in association and negating the idea that freedom is either transcendental or exists by the grace of another human being. What we strive for here is the ‘self-mediated being of nature and of man’ (Marx).
This self-mediated being stands against the mediations of private property – commodity exchange – division of labour.
‘privatization’ means abstracting (in practice) from the social side of human activity. If, however, the social activity of production is an elementary condition for the human existence of the individual (with his increasingly complex and socially embedded needs), this act of abstracting – whatever form it might take – is necessarily alienation, because it confines the individual to his ‘crude solitariness’. Society is man’s ‘second nature’, in the sense in which the original natural needs are transformed by it and at the same time integrated into an enormously more extensive network of needs which are all together the product of socially active man. To abstract therefore from this aspect of man in the cult of the self as opposed to social man amounts to the cult of an oversimplified alienated self, because the true self of the human being is necessarily a social self, whose nature is ‘outside itself’, i.e. it defines itself in terms of specific and immensely complex interpersonal, social relations.
Mészáros, I. 2005. Marx’s theory of Alienation. Merlin: London, pp. 174-5.
This is defined through forms of sociality that refuse the spiritual and physical dehumanisation of commodity production. Here the praxis of those who labour in higher education (staff and students) matters because the space needs to open-out to bleed into society beyond the commodity production for the knowledge economy, the fragmented division of academic labour and the subsumption of academic life inside private property and intellectual property. This is a practical task of generating and sustaining self-conscious human activity, as opposed to alienation from our work, its products, nature and the world, our species-being or our peers, and ourselves.
the fight against alienation is the struggle to rescue humans from ‘the extension of products and needs falls into contriving and ever-calculating subservience to inhuman, refined, unnatural and imaginary appetites.’ This alienated state which is characterized not only by the artificial ‘refinement of needs’ but also by ‘their artificially produced crudeness’, makes a mockery of man’s desires to extend his powers in order to enable himself to realize human fulfilment, because this increase of power amounts to the ‘extension of the realm of the alien powers to which man is subjected’.
Mészáros, I. 2005. Marx’s theory of Alienation. Merlin: London, p. 179.
For Mészáros , teaching is central to this project of becoming self-mediating because it expresses a specific relation to a specific, historically concrete alienated object. The practice of teaching, and enabling anyone to teach, raises consciousness (as opposed to alienated consciousness of commodity production) as a human society. This is not the consciousness of a negation (of alienation) but of a positivity (of human nature divorced from the mediations of private property – commodity exchange – division of labour).
At the moment the realization of academic freedom as academic purpose is impossible because it is simply the means to an abstract, financialised end. Overcoming this is rooted in forms of sociality that are grounded in social wealth and the ‘rich human being’ and ‘rich human need’. This is a totality of life-activities, the realisation of which exists as an inner necessity, as need (Marx). This is also the integration of the private and public in ways that resist objectification and alienation, in order to overcome ways of being that are made increasingly unsustainable through hegemonic economic directives. This is a world for:
the real human individual and the unity of opposites (public/private, production/consumption, doing/thinking, means/ends), without which there can be no overcoming of alienation. Private life has to acquire the practical consciousness of its social embeddedness, but also that personal life has to be personalised; also creative/productive/enriching consumption, and enjoyable production; subjectless, abstract having must acquire a concrete being; practical thinking related to the real (non-alienated) need of humans; doing that has lost its unconscious coercive character and become self-conscious free activity.
Mészáros, I. 2005. Marx’s theory of Alienation. Merlin: London, pp. 185-6
It is here that the struggles for university autonomy or academic freedom matters because education is the critical terrain for self-mediation. Such self-mediation embraces and relates first, activities that give life meaning across a social context, and second, the needs, attitudes and cares that reinforce that meaning as self-consciousness. This takes the form of self and social educating; it is the overcoming of the domination of externality (private property – commodity exchange – division of labour). Thus, these struggles matter where they are related to social forms of autonomy and freedom as universal self-mediation. They matter where they are the beginning of a refusal of private property – commodity exchange – division of labour, rather than an affirmation.
With Joss Winn, I’m presenting at the Co-operative Education and Research Conference 2017. The abstract is presented below.
Higher education in the UK is in crisis. The idea of the public university is under assault, and both the future of the sector and its relationship to society are being gambled. Higher education is increasingly unaffordable, its historic institutions are becoming untenable, and their purpose is resolutely instrumental. Moreover, the intellectual leadership of HE is situated within a competitive, transnational political and economic context, and this reproduces academic practices through marketization and financialisation.
This paper develops a critical analysis of ‘intellectual leadership’ in the University, and identifies on-going efforts from around the world to create alternative models for organising HE and the production of knowledge. It offers the potential for developing an alternative conception of the role and purpose of HE that is rooted in the idea of ‘mass intellectuality’. This takes experiences and views from inside and beyond the structures of mainstream HE, in order to reflect critically on efforts to create really existing alternatives.
In the process the authors ask if it is possible to re-imagine the University democratically and co-operatively? If so, what are the implications for leadership not just within the University but also in terms of higher education’s relationship to society? The authors argue that an alternative role and purpose is required, based upon the real possibility of democracy in learning and the production of knowledge. Thus, the paper concludes with a critical-practical response grounded in the form of ‘co-operative higher education’. This rests on the assertion that ‘social co-operatives’ offer an organizational form that values democratic participation and decision-making and would constitute the university as a social form of mass intellectuality re-appropriated by the producers of knowledge.
I have been asked to speak at the Brookes Learning Teaching Conference 2017. I love this kind of invite, which enables a testing of ideas and a lot of listening to the practices, activities and hopes of others. My abstract is detailed below. The talk enables me to return to that practical work I was engaged with in 2010-12, around the idea of/re-imagining the university. It also enables me to reflect on my recent work inside the University, on commons and co-operative practices.
This talk questions the role of pedagogic scholarship and innovation in addressing global crises of social reproduction. It argues that working together has both possibilities and impossibilities, which need a richer discussion inside the University.
In the past decade, fall-out from the Browne Review has given birth to a number of alternative education projects. These alternatives focused on creating spaces and curricula that prefigure more democratic ways of doing higher education, in which the boundaries between student and teacher are dissolved and where co-operation and peer-projects between scholars become fundamental. Examples include the Social Science Centre in Lincoln and the Really Open University in Leeds. These projects developed grounded, co-participatory scholarly communities, which acted as incubators for pedagogies like Student-as-Producer (Neary and Winn 2011; Pusey 2016).
However, they also share characteristics with transnational platforms like #RhodesMustFall and#Whyismycurriculumwhite, in attempting to push back against the structuring logics represented by the curriculum (Hall and Smyth 2016). These platforms also connect to co-operative forms of higher education like Mondragon University in the Basque country, the Little Schools of the Zapatista Movement, and the education sector of the Brazilian Landless Movement.
Reflecting on these alternative forms is helpful in analysing our responses to the crisis of higher education, in order to locate spaces for truly progressive pedagogies inside the university. If such spaces do exist, on what are they based and what is their relationship to the curriculum? How do they enable academics and students to respond to issues of inclusivity and diversity, collaboration and peer production? Three responses may be considered:
- open, academic commons supporting a sharing economy inside and across a porous interdisciplinary curriculum;
- safe, scholarly communities of practice, perhaps forming solidarity economies that refuse enclosure; and
- positioning the university and curriculum within (and against?) the development of ‘mass intellectuality’, or socially-useful knowledge produced outside the university.
Hall, R., & Smyth, K. (2016). Dismantling the Curriculum in Higher Education. Open Library of Humanities, 2(1), p.e11. DOI: http://doi.org/10.16995/olh.66
Neary, M., & Winn, J. (2011). The student as producer: reinventing the student experience in higher education. In M. Neary & J. Winn (Eds.), The future of higher education: policy, pedagogy and the student experience (pp. 192–210). Continuum. Retrieved from http://eprints.lincoln.ac.uk/1675/
Pusey, A. (2016). Pusey, A. (2016). Strike, occupy, transform! Students, subjectivity and struggle. Journal of Marketing for Higher Education, 26(2), 214-32. Retrieved from: http://dx.doi.org/10.1080/08841241.2016.1240133
<for some to succeed, some have to fail>
The government is trying to create a market in the education system. This … is the right track for reform, but at the moment there’s a risk that we’re building in the potential for market failures too. A functioning market needs enough genuinely new entrants to challenge existing providers, enough capacity for competition to be meaningful, enough information for providers and users alike, ways of breaking up failing or monopolistic providers, and exit points for providers that aren’t doing a good enough job. The direction of travel is the right one, but there’s a lot that still needs to be done.
Nick Timothy. 2016. Talk at the Centre for the Study of Market Reform of Education.
<higher education and market downgrades>
Moody’s considers that policy predictability and effectiveness of economic policy-making — an important aspect of institutional strength – might be somewhat diminished as a consequence of the [Brexit] vote. The UK government will not only need to negotiate the UK’s departure from the EU but will likely also aim to embark on significant changes to the UK’s immigration policy, broader trade policies and regulatory policies. While we consider the UK’s institutional strength to be very high, the challenges for policymakers and officials will be substantial.
As a consequence of the weaker GDP growth outlook and institutional strength, the UK’s public finances will also likely be weaker than Moody’s has assumed so far. In Moody’s view, the negative effect from lower economic growth will outweigh the fiscal savings from the UK no longer having to contribute to the EU budget.
“We would downgrade the UK’s sovereign rating if the outcome of the negotiations with the EU was a loss of access to the Single Market as this would materially damage its medium-term growth prospects”, said Kathrin Muehlbronner, a Moody’s Senior Vice President and the report’s co-author. “A second trigger for a downgrade would be if we were to conclude that the credibility of the UK’s fiscal policy had been tarnished as a result of Brexit or other reasons.”
Overall, the forecasts demonstrate a continuation of the themes raised in previous analysis.
<financial capital, volatility and competition>
a. The latest forecasts, for the period 2015-16 to 2018-19, show a widening gap between the lowest- and highest-performing institutions and increasing volatility of forecasts in the sector.
b. Sector surpluses are projected to be between 2.3 per cent and 4.3 per cent of total income in the forecast period; these are relatively small margins in which to operate. However, at institutional level, these range from a deficit of 28.6 per cent to a surplus of 21.5 per cent in 2017-18, equivalent to a range of 50.1 per cent (compared with 30.4 per cent in 2014-15).
These are relatively small margins in which to operate, and mean that even small changes in income or costs could have a material impact on the financial performance of institutions and the sector.
<a looming crisis of liquidity and debt>
c. The trend of falling liquidity (cash) and increasing sector borrowing continues in this forecast period. Borrowing levels are expected to exceed liquidity levels in all forecast years, by £49 million at 31 July 2016, increasing to £3.9 billion at 31 July 2019. This trend of increasing borrowing and reducing liquidity is unsustainable in the long term.
Strong liquidity is particularly important given the growing level of uncertainty and risk in the sector and wider economy.
<the rule of recruitment, retention and progression>
d. The sector is projecting fee income from non-EU students to rise from £3.7 billion in 2015-16 to £4.8 billion in 2018-19 (equivalent to 14.9 per cent of total income). Increasing competition from other countries and proposed changes to student immigration rules suggest these projections may be difficult to achieve. This would have a significant adverse impact on the sector’s financial projections. However, the weaker pound may assist the recruitment of overseas students.
e. The sector is projecting high levels of growth in numbers of total home and EU students (10.3 per cent over the forecast period). This level of growth may be a challenge given the decline in the 18 year-old English population, uncertainties over the impacts of Brexit and increases in alternatives to undergraduate courses, such as degree apprenticeships.
f. Significant increases in capital investment are projected. At over £17.8 billion, this represents an average annual investment of £4.5 billion (2015-16 to 2018-19), 51 per cent higher than the previous four-year average. Despite this, nearly a quarter of HEIs in the sector are planning to reduce capital expenditure over the forecast period.
<never-ending fixed capital lulz: surplus, investment, competition>
g. Investment in infrastructure is particularly important given that, in July 2015, the sector estimated that it still needed to invest £3.6 billion into its non-residential estate to upgrade it to a sound baseline condition.
At a time of lower public capital funding, institutions must deploy more of their own resources or raise finance through external borrowing in order to maintain and enhance their infrastructure. This places greater pressure on HEIs to generate higher surpluses to maintain their sustainability.
<tightening of liquidity/access to capital>
h. The uncertainties faced by the sector as a result of the UK’s decision to leave the EU, coinciding with increasing competition in the global HE market, will lead to a greater focus from investors on the underlying financial strength of HEIs. Consequently, any fall in confidence levels could restrict the availability of finance in the sector and put significant elements of the investment programme at risk. Falling confidence levels are also likely to lead to a rise in the cost of borrowing.
It is also important to recognise that the forecasts assume that the capital markets continue to have confidence in the sector, which depends upon their risk assessment of the sector and individual HEIs.
<contexts for labour arbitrage>
i. Aside from the challenges associated with income generation, the sector will face inflationary pressures on costs, particularly staff costs, operating costs and capital investment costs. j. Pension liabilities are expected to increase from £4.9 billion at 31 July 15 to £7.2 billion at 31 July 2016; an increase of 45.8 per cent. This is due to FRS102 which requires liabilities relating to the deficit recovery plans for multi-employer pension schemes to be reflected in institutional balance sheets. However, the latest estimated valuation of the sector’s largest pension scheme, the Universities Superannuation Scheme (USS), indicates a significant worsening of the deficit, implying further increases in liabilities are likely
<stranded capital and market exit: thanks for playing>
The significant level of uncertainty in the HE sector and UK economy, as well as the need to sustain a higher level of capital investment to respond to growing competition, will require institutions to aim for higher surpluses in future.
This uncertainty is likely to lead to continued volatility and growing variability in the financial performance of institutions, together with a widening gap between the lowest and highest performing HEIs.
<de-regulated and beholden to the financial markets>
The report is damning, and the irony won’t be missed that it comes at a time when the role of the funding council in safeguarding the financial sustainability of the sector is being replaced by a ‘let the market decide’ approach. While the government has its oen [sic.] logic for this approach and is implementing some measures to protect students in the case of ‘market exit’, it will come as a shock to universities that the oversight, guidance and practical – financial – support previously offered by HEFCE may no longer be available in their hour of need.
Indeed, it is new for HEFCE to use such strong and foreboding language about the overall state of HE. Previous iterations of these forecasts have been far more positive about the sector’s financial situation and have smoothed over cracks with reasonable rhetoric. But HEFCE is either no longer willing, or no longer able, to spin such a rosy picture.
The HEFCE report shows the grim state of affairs in which universities find themselves: the short-term diagnosis is one of stability – the 2014-15 numbers were healthy enough – but the prognosis is poor. Expect a need for some serious remedial action in board rooms across the land.
Bagshaw. A. 2016. Getting worse: HEFCE’s bleak prognosis for university finances.
<global labour arbitrage>
Insecure working practices now permeate every section of our society. Although students probably don’t realise it, most of them are taught at some point, perhaps even for majority of their time at university, by people on insecure casual contracts. Some universities have been accused of trying to ape the worst practices of the likes of Sport Direct.
The exploitative use of casualised contracts – including hourly-paid, part-time and even zero-hours ones – breeds insecurity and stress, and forces people to work long hours for poor pay. Many work for more than one university to make ends meet. It cannot be right that the people teaching our students are constantly anxious, not knowing from year-to-year, term-to-term, or even month-to-month, whether they will have a job or how much they might earn.
Inevitably, casualisation has an impact on education. US research demonstrates that students who take large numbers of courses with teachers employed on insecure contracts, or who are in institutions with large numbers of non-permanent staff, tend to graduate at a lower rate and are more likely to drop out of college.
as the terms innovation and disruption become mainstream there are still pockets of discovery value for investors in the world today. From curing cancer with the cloud to solving space to creating an alternative to fossil fuel in lithium, opportunities abound for those willing to look beyond today’s headlines. The world is changing as a new generation (Gen-Z) is poised to take the mantle from Millennials while the payback for college becomes harder to justify.
The average return on going to college is falling. For the typical student the number of years to break even on the cost of college has grown from 8 years in 2010 to 9 years today. If current cost and wage growth trends persist then students starting college in 2030/2050 will have to wait 11/15 years post college to break even. 18 year olds starting college in 2030 with no scholarship or grants will only start making a positive return when they turn 37.
Graduates studying lower paying majors such as Arts, Education and Psychology face the highest risk of a negative return. For them, college may not increasingly be worth it.
<enterprising human capital>
Corporates may have to do more themselves and develop their own talent identification systems. New entrants and business models are emerging to meet some of these challenges.
the vacancy rate does imply that the increased need for specialization is a factor and that the labor market is moving faster than education can respond. Arguing against this is the threat from artificial intelligence to pattern recognition and human decision making jobs (47% of total US employment is at risk from computerization according to a recent Oxford University study). This hollowing out of the labor market risk makes future-proofing very difficult, but there is a clear growth opportunity in professional training.
When it comes to money and finances, Gen-Z and Millennials hardly resemble one another. While Millennials are often cast as the “follow your dreams at all costs” generation, Gen-Z appears acutely focused on the financial consequences of their decisions. TD Ameritrade’s 2nd Annual Generation Z survey, for example, revealed that 46% are worried about accruing student loan debt while a study by Adecco showed that Gen-Z’ers are more concerned about the cost of education than Millennials. Meanwhile, sixty percent of Gen-Z believes that “a lot of money” is evidence of success, while only 44% of Millennials believe the same (Cassandra Report).
In combination with their financial conservatism, Gen-Z is also entrepreneurial.
Boroujerdi, R.D., and Wolf., C. 2015. Themes, Dreams and Flying Machines. Goldman Sachs Equity Research.
<against the stagnation of immobile capital>
We’ve written before that despite the protestations of academic insiders, MOOCs have real promise—not just as supplements to brick-and-mortar degree programs, but as viable alternatives for large numbers of students. And a “new system of signaling and talent identification” is sorely needed. A national exam system, in particular, would help level the playing field for students who didn’t want to attend an elite college, or couldn’t afford to.
The current American higher education regime is not working for a huge number of students, and, as this report suggests, those who continue to cling to the status quo are in denial. The system has to change, and it will.
The American Interest. 2016. Goldman Sachs: Higher Ed Ripe for Disruption.