Private Higher Education:
An opportunity for Greece
By Nickolaos Travlos, Ph.D.*
The severe economic crisis that Greece is currently going through offers a unique chance to explore hidden opportunities for economic growth in the areas that Greece has a competitive advantage. While tourism and shipping are usually considered as areas with great potential, less emphasis is given to the area of higher education. However, as I will argue below, higher education is an area where Greece can play a key role in the international arena with significant economic impact in various sections of the economy.
Historical reasons: Greece is recognized internationally as the cradle of western civilization. The significant contribution of Greek thinkers to almost all sciences makes Greece a natural place to establish a modern cluster of academic institutions. These can attract a large number of foreign students, especially in the area of Liberal Arts and Sciences.
Natural Beauty and Climate: The climate along with the natural beauty of the country can potentially turn Greece into a dynamic international academic center, attracting students from Europe, the Balkans, Asia, Africa, and even the Americas and Australia.
Human Resources: It is widely known that Greeks place a high value on education. There is a large number of distinguished Greek professors living in Greece and abroad who could staff several colleges and universities similar in quality to some of the famous international institutions. There is also a plethora of Greek young professionals with graduate degrees who possess international experience. They could offer high quality administrative services required by such institutions of higher education.
Despite the aforementioned strategic benefits Greece is endowed with, it is disheartening that the country has not taken advantage of them. The reason for this is simple: the refusal of the political system to accept the establishment and operation of private universities in the country. The problem goes as far back as the mid 1970’s when the conservative government of Constantine Karamanlis included a clause in the new constitution (Article 16), which does not allow private universities in Greece. Although there have two attempts to amend this particular article and the two major political parties had agreed on this issue, eventually the socialist PASOK party refused to support the amendment in 2007. The establishment of Postsecondary Education Centers (KE.ME) under the Laws 3696/2008 and 3848/2010 constitutes only an ambiguous and halfway attempt to acknowledge the existence of private institutions of higher education. The result is that Greece is one of the few countries in the world which do not recognize private higher education. It is interesting to note that Turkey has long introduced private colleges and universities. As a matter of fact, at least two of them (Koc University and Sabanci University) are competing successfully with well-established European and North American institutions. In Europe, Spain has established several private universities which are ranked very highly in the various international ranking lists. For example, in 2012 two Spanish Business Schools are included in the top 100 Business Schools of the Financial Times. It is also interesting to note that in their MBA programs 70% of their students come from abroad. Even Cyprus has introduced private universities, allowing the country to attract several thousands of foreign students.
This refusal to introduce private universities in Greece, even not-for-profit ones, consequently has left the role of attracting foreign students to the state universities. Given that their infrastructure and funding from the government are not adequate, state universities cannot fulfill this need. While struggling to accommodate the Greek students, it is impossible, to pay attention to the international market.
A window of opportunity arises for our country. The introduction of private colleges and universities, at least in the form of not-for-profit institutions, is a must. The social, economic, political and international conditions have changed relative to the ones in the 1970’s. The country can no longer afford to forgo its competitive advantages. The economy needs a stimulus; society needs diversity; people demand additional choices; democracy requires the freedom to choose; Greece must put the brakes on its brain drain and provide a vehicle to bring back the renowned Greek academics of the diaspora. Recognizing private colleges and universities is a necessity.
The state universities will benefit from liberalization as well, because some of their students will transfer to the private ones, resulting in better services for the remaining students. In addition, the competition will force state universities to explore the opportunities the new legal framework offers in attracting private funds and establishing collaborations with foreign universities. The Greek economy will benefit because the private universities will invest in facilities and infrastructure that will attract thousands of foreign students and support a cluster of industries around them, revitalizing Athens, Thessaloniki, Patra, and several islands. High caliber faculty of state universities will benefit as well from these developments because the Greek academic community will be enriched and enlarged. The only group which stands to lose is those academics who use the university merely as a source of prestige and networking with old-style politicians.
It is time Greece stops accommodating the vested interests of a minority of Greek academics and politicians; it is the last opportunity to serve the interest of Greek society at large. Recognizing private colleges and universities should be a top national priority.
* Dr. Travlos is holder of The Kitty Kyriacopoulos Chair in Finance and dean of the ALBA Graduate Business School at the American College of Greece.