Private Universities in Bangladesh: Challenges Ahead

BY AKKBARUDDIN AHMAD *

Private Universities came into existence on account of the desire and ability of the private sector to actively participate in this key area as well. 

The Private University Act of 1992 was passed through the efforts of late Professor Syed Ali Ashraf, a visionary and his elder brother the late National Professor Syed Ali Ahsan, a renowned educationist and former Chairman, UGC. Darul Ihsan University the brainchild of Professor Syed Ali Ashraf that started functioning in 1989 was licensed in 1993. This bold initiative to float a Private University by the late Professor Dr. Syed Ali Ashraf is indeed praiseworthy. He was a great scholar who passed with flying colours from the Dhaka University and later did his Ph. D. from the famous Cambridge University in UK. He also taught at the Cambridge University, Karachi University and at the King Abdul Aziz University in Saudi Arabia.

First generation private university

The proposal to form the Darul Ihsan University by its sponsor the Darul Ihsan Trust (DIT) that had some luminaries is worth mentioning. Dr. Abdullah Omar Nasseef, former Deputy Speaker of Saudi Parliament, Dr. Naimur Rahman, a renowned industrialist, Yakub Latifullah a well-known civil servant along with Dr. Aleem Mohammed, a multimillionaire from Trinidad, were the main architects and sponsors/trustees of DIT.

The other notable private university is the North South University (NSU) that was organised by a group of well-known philanthropists and the main guiding force was a bureaucrat-turned-educationist Moslehuddin. East West University, Independent University, AMA were the others to follow. Later a number of newer private universities were set up that continue to render services to their best of their abilities within their limited financial capabilities. Currently over one hundred thousand students are enrolled within the private universities system.

The UGC has in the meantime, conducted some inspection and declared some of the newer private universities offering some specific academic programmes much below their standards and expectations. We support such inspections that should be carried out on a regular basis. These inspections should not be witch hunting rather the UGC should extend a helping hand to assist some of these institutions with proper advice and with restructuring if need be. Unnecessary pressure and unreasonable demands must be avoided to keep healthy growth of the privately managed universities at its optimum level. These institutions are assisting the government to achieve its target of spreading higher education in Bangladesh.

Private universities’ role in supplementing government efforts in spreading higher education in the country is praiseworthy. Imagine the plight of thousands of students from the HSC and ‘A’ level who try for entry into the limited number of public universities. The seats offered are so few that only a fraction of the annual demands are met. Had it not been for the pioneering role of the private sector universities, our youngsters would face a bleak future.

National University had student enrolment of 7.5 lacs and Open University 2 lacs as against 1lac students in 22 public universities in 1995-96. Private universities students enrolment was 1lac distributed amongst 54 institutions in the same period. Colleges scattered all over the country that offer HSC, degree and even masters level examinations in a limited scale are affiliated to the National University. This institution is an examination body. It is plagued with session jam and inefficient management. A four-year degree programme takes a minimum of 7 years if the student is lucky. This is besides the fact that affiliated colleges offer in most cases sub-standard education. English language is the biggest handicap in these colleges particularly those that are fully government, non-government or private colleges with the financial salary support from the government. There is hardly any initiative or drive for enhancing the standard of education. Teachers training facilities are limited and the overall facilities that include a rich library and computer lab is practically non-existent in most cases.

Private colleges that do not enjoy the financial benefit of salary for teachers from the government is in a worst position. The teachers are under-employed and poorly paid and suffer from financial insecurity. Exceptions are in respect of some colleges which are 100% privately managed with a reasonable standard of education and full financial support from the sponsors. In these cases, tuition fees are relatively much higher.

The session jam with the National University with which colleges are affiliated has the perpetual problem where an under graduate student has to spend 3 or 4 years more than that of the required period of time. This situation is highly frustrating for the students who are made to waste their valuable time in pursuant of knowledge which again is much below the minimum acceptable standard.

Public universities are fully financed by the government. The tuition fees and hostel, food, accommodation charges are negligible and surprisingly very low. The students studies in these institutions are practically free. Those fortunate undergraduate and postgraduate students who are admitted to the 22 public universities through a highly competitive entrance examination process may be hardly 10% of the overall demand. This does not include the Open University and the National University with its affiliates that account for 90% of the public sector emolument. The funding for the 24 Public Universities amounts to about Tk. 600 crores annually as per UGC Report of 1995-96. The education budget for 2006-2007 stands at Tk. 12,500 crores i.e. 16% of the budget. If the properties both movable and immovable assets along with annual contribution to these universities were considered, the students per capita expenditure annually will be much more than the Tk. 45,000/- per year as reported by the UGC. For a 4-year programme it will be more than Tk. 2 lacs per student. This is without taking into consideration the rented value of the public university properties. It may be noted that the private universities do not get any financial assistance from the government.

The less fortunate students find their way to government or non-government private colleges. With the expectation of a few privately managed reputable colleges, the students have little choice left. They land up in even third rated-colleges and waste their valuable time and energy trying to overcome the session jam of the National University. The more fortunate undergraduate students get a chance in private universities which are operating mostly in the Dhaka City and some have their campuses in other important cities and towns as well. The government does not extend any financial support to the private universities as a result of which the tuition fee in respect of some institutions are 2 to 3 times higher than those catering for the middle and lower income groups.

Education institution was exempt from Income Tax under an SRO 454-L/80 in December 31, 1980. It was, however, misinterpreted and operation of educational institutions were considered incorrectly as profit making business units. It is indeed extremely unfortunate that NBR and Tax officials misconstrued the entire concept of non-profit bodies known as Trust that manage these private universities. Tax to the extent of 40% was levied on profit that is proposed to be reduced to 15% under 2006-2007 budgetary proposals. In addition a 4.5% VAT has been imposed on tuition fee. It is a gross misconception on the part of the NBR to introduce VAT. The spirit of VAT is connected with production, trading or business enterprise. Tuition fee does not fall in any of these categories. Such proposals if introduced will spell disaster to this newly emerging sector where the private sector is extending its whole-hearted support by investing large sums of money through non-profit Trust controlled private universities for the greater interest of higher education in Bangladesh.

To be continued...
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The writer, Director, Institute of Business Studies and Adviser, Darul Ihsan University, is an IT & Financial Consultant.

[Source: The Independent]