Here is the revised version of the original post I wrote in the middle of the strike earlier this week exploring the theme of ‘the means and ends of higher education’, published as part of the online archiving of strike material at the Journal of Cultural Economy.
Week 4, and it looks like the combined stupidity of the UUK and lack of preparedness and care by individual University senior leaderships before the current UCU strike action started means that lots of University staff in the UK are still out on strike, not teaching students, not librarian-ing, not providing professional support to researchers, not, public-engaging, and not doing lots of other things they’d rather be doing. That does mean more “learnable moments” for those of us on strike, whether through talking to our colleagues on the picket line (or meeting new ones) or through tweets and re-tweets and blogs. I’ve decided to not have any shame about only now discovering things about my pension, or how the University I work at (NOT for) is run, and instead take my ongoing journey of discovery as an indictment of the very system we are all realising we are part of. After all, none of what we are learning about how the USS pension system has been undermined, or how this is related to the systematic financialization of University funding, or how University governance has been rendered obscure and unaccountable, is actually a secret. Some of it people have known about, and lots of this is actually a focus of robust research. But who has the time to keep up with all this? And who imagined that those representatives of the institutions that one might think were meant to act in the best interests of those who work for Universities would turn out to be, well, less than honest and trustworthy and competent, if not deliberately misleading?
A few things have caught my eye in the last few days, precisely because the focus of my attention has been directed by my colleagues at better understanding the economics of pensions systems and the business models of Universities and because I have had the time to pursue in more depth these issues (there’s a lesson here, surely, concerning what it says about the Efficient Market Hypothesis that it is only when employees are on strike that they have enough time to actually begin to even imagine being able to access all of the information they are supposed by adherents to that abstract principle to have at their disposal in order to function as rational fools).
The first was a great, succinct blog post by Ewan McGaughey explaining the relationship between the planned gutting of the USS pension scheme and shifts in the nature of University governance. As he puts it, the plan to shift risk away from Universities by rendering all ‘pension’ support into ‘Defined Contribution’ schemes in the name of flexibility and choice amounts to recommending a ‘Die Quickly’ Plan. Now, one thing we’ve all learned is that this whole programme of de-risking is related to a broader shift in the strategizing of UK Universities, whereby the urge to reduce pension support as liabilities is intrinsically linked to the imperative to diversify sources of funding in a context of reductions in direct government support. Now, the logics of financialization in higher education are perhaps longer established, and subject to research scrutiny, in a North American context than in the UK, but it is worth remembering that that’s a different context. Thomas Hale provides a short summary of ‘allure of the capital markets’ for Universities at the FT’s Alphaville site (you have to register, but it’s free after that, and totally worth it – he’s been writing about higher education for a while now). It’s good to keep in view the degree to which these transformations in the strategies of Universities are structured by a firm commitment by government since 2010 to restructure the economics of higher education in fundamental ways. The relationship between the pensions dispute and this trend towards financialization is captured in what now, two weeks later, reads like a very old statement from the Vice Chancellor of Exeter, according to which the costs of continuing to support the existing pension system would involve “a reduction to our resources, and would limit our ability to deliver our key missions around research and education as well as our ability to invest in, and improve, the facilities we provide.” This zero-sum representation of what is at stake in this dispute – between investing in uniformly high quality pay and conditions for staff versus a rather obscure sense of education and research ‘missions’ that centre on ‘facilities’ – is, in fact, simply a talking point proffered by the UUK for widespread use. That’s just one of the things we’ve all learnt because of the work of Gail Davies and Felicity Callard and others in reconstructing the explicit efforts of ‘The Voice of Universities’ to legitimise the shift from collective pension support to individualised “Die Quickly” savings plans. (And Exeter’s VC has more recently reiterated the same argument).
The implicit view that supporting pensions is a liability that gets in the way of delivering key missions rests on a broadly shared imperative for Universities to be able to demonstrate that they are enhancing “student experience” – where this means access to high quality work spaces, to fantastic sports facilities, accommodation, high-tech teaching spaces, and the like. All of those things are crucial to making a University the space that it is meant to, no doubt. The interesting question is how it is that we have arrived at a situation in which all those material things are rendered affordable only by drastically restructuring academic labour markets in increasingly bifurcated ways while also streamlining ‘academic support’ professions.
The trelationship between the substantive issues behind the current pension dispute and the shift towards capital investment strategies amongst Universities is neatly captured by Philip Roscoe, discussing the origins of the strike in decisions made by UUK in 2017: “In the summer of last year USS asked employers – via Universities UK – whether they wanted more or less risk. It might seem a silly question, for out of context everyone wants less risk. But universities have a particular agenda. USS is what is known as a ‘last man standing’ scheme, meaning that should institutions start to fail, risk would pile up on those still operating. And university managers, now thoroughly versed in the language, practices and salaries of business, are obsessed with avoiding risk. Risk has practical implications, for under current accounting rules employers must carry full pension liabilities on their balance sheet. This affects administrators who, seeing themselves primarily as curators of rankings in a market-driven system, are diverting all the funds they can into an arms race of building and infrastructure investment. Universities can borrow very cheaply – often at less than the cost of inflation, and almost free money is too good a ticket to be passed up. But lenders are not going to offer such preferential terms to borrowers with huge pension liabilities; for a university, the covenant of USS begins to loom as an enormous blot on an otherwise shiny credit rating.”
The integral link between the pensions dispute and the financialization of University expansion plans involves a search for new sources of revenue, in a context of declining direct funding from government and uncertainty over the reliability of student fee income, the real value of which is declining year on year anyway. (Let’s not forget, in the midst of realising just how badly managed British Universities have been, that the changing political economy of higher education has its source in the determination of Tory-led governments since 2010 to try to make higher education conform to ridiculous models of markets and competition. Universities’ turn to capital investment programmes as a way of seeking enhance ‘student experience’ is an index of a motivated effort to enforce a competitive spirit on higher education institutions, and the move to ‘de-risk’ pensions liabilities is a central element of the resulting and still emergent business model in which getting better loan rates is the driving imperative.)
The transformation of the economics of higher education represents an opportunity for growth for certain fields of private investment, and that’s why there is so much consultancy by the likes of Barclays and KPMG flying around – it serves as a way of introducing potential investors to potential borrowers. Here is pwc summarising the new landscape of higher education funding: “In an increasingly competitive market where all Universities are striving to offer their students, staff and visitors the most positive and rewarding experience possible, the quality of the built environment, the accommodation offering, and the delivery of estates services are playing a more critical role than ever before. In response to this, Universities are developing exciting and ambitious estates plans that propose significant investment in new facilities, and innovative ways of delivering services.” Now, the key thing about this emergent field is that buildings and facilities require long-term financing, and traditional lenders – banks – “are unable to write loans with the same duration and pricing levels of the past”. All of this is a source of some excitement: “New sources of finance, as well as new commercial modes for securing this finance, are therefore needed and are being employed across a variety of projects in the sector”. As NatWest nicely put it, capital debt markets “have capitalised on the lack of bank liquidity for longer-duration financing”.
The most publicly visible example of Universities turning to debt capital markets takes the form of individual institutions – ones as very different as De Montfort and Cambridge – issuing their own bonds (an instrument of indebtedness sold by the issuer to the holder, e.g. what governments do). This trend serves as a way of securing long-term finance that bank lenders are not prepared to extend. But the logics of financialization are not only evident amongst institutions who have leveraged credit in this way. For example, the University of Exeter’s financial strategy is quite prudent – the University is “relatively highly geared”, that is, it’s focussed on paying down relatively high levels of debt accrued from past investments. This is one reason, of course, why pension commitments show up as a risk (not just a liability) for this type of institution. For Exeter, “Pensions” are listed ahead of “Impact of the EU Referendum June 2016” when it comes to discussing financial risks: “The settlement of the USS 2017 actuarial valuation is a key risk, both financially and in terms of industrial relations, with the national trade unions agitating to protect current pension benefits. Current expectation is that the valuation will be settled within the current funding envelope, without increasing costs to the employer or employee but the likelihood that future pension benefits will have to be curtailed is high.” That was written a year or so ago I guess.
Of course the idea that pensions are ‘a material liability’ is just technical vocabulary, it’s not necessarily ripe for deconstruction. But when financial balance-sheets become ‘enveloped’, shall we say, in a wider process of actuarial de-riskification then the idea of pensions as liabilities gets translated into the idea of pensions as a risk, and helps to generate the search for securing the ‘resilience‘ in higher education financing.
Now, you might think that if you are already busy paying down lots of debt, you’d calm down about taking on a lot more. Well… the University of Exeter actually has an ambitious future capital investment strategy (‘Iconic Buildings on what used to be a Car Park’, for short). Exeter’s Capital Strategy proclaims “The next ten years will see us invest £428.5M in our campuses, estate and infrastructure. We are building the estate we need to deliver world-class research and an internationally excellent education, accommodating our students and our world leading academics in exceptional teaching, learning and research spaces.” As I said, there’ll be less car parking space as a result. And it’s not quite clear, from the outside (that is, for those working at this University) where this money is meant to come from. This investment strategy also sits alongside the University’s “People Strategy’, which has the sub-heading of ‘Attract, Perform, Retain’ – I’m not sure how any of those aims is meant to be enhanced by undermining University employees’ pension provision which, as UCU members have helpfully reconstructed over the last week or so, has been systematically pursued by British University senior management for a while now.
Exeter is certainly a good an example of the recent spending spree on new buildings that characterises British higher education, a phenomenon that is rooted in a widely shared understanding that this is the secret to attracting students. And if building buildings is crucial to recruiting students, then in turn servicing the debt that finances that building depends on being able to guarantee future student income (an aside: one of the things that working through the logics of this dispute does underscore is just how important teaching students remains to the changing meaning of ‘the University’, including ‘research intensive’ ones). In his discussion, Hale helpfully identifies just how important rankings are to this process of financialization, playing two related roles in mediating demand of “student-consumers” and in “the overall marketing process of debt issuance” (i.e. in reassuring investors that Universities looking for credit are actually any good). Rankings are, of course, just one part of the ‘avalanche of numbers’ that has swamped HE – loads of ‘data’ is used to manage Universities internally so that universities can act in certain ways externally, as it were, for accountability and justification purposes for sure, but also to establish and maintain institutional credit worthiness (remember that next time you are congratulated for achieving a better position in a methodologically dodgy league table). But more precisely, rankings and league tables are now built into systems for finessing the calculation of the risks of different sorts of assets, liabilities, and both estate investments and human capital.
Needless to say, this sort of estate-led expansion of HE is not without its controversies.
It should be said that developing expansive capital investment strategies does not only involve individual Universities directly raising capital through bond issues. Again, pwc is helpful here: “We are, however, seeing significant interest from certain large investors to increase their exposure to the higher education sector through property-related income that is backed by a strong covenant”. What is being referred to here is the turn to using “lease based structures” that allow Universities to access capital with long maturities indirectly (and therefore not messing up the balance-sheet). That line about large investors ‘exposing’ themselves to the HE sector is, of course, meant to be ironic: it’s not really the investors that are exposed in these deals, which actually depend on the assumption that investing in University estate is a safe bet. This second form of ‘innovative’ higher education financing through the credit markets involves Universities partnering up with specialist financial companies, of which University Partnership Programme (UPP) is the most visible in the UK. UPP is a University accommodation developer, that provides to Universities ‘special purpose vehicles’. Basically, they raise the capital for Universities and build and run student accommodation, and ownership of the buildings only passes on to Universities when the original debt is paid back (that might sound familiar). UPP describe what they do in the following way: “Our vision is to deliver the very best student experiences, in partnership with great universities. Our mission is to create exceptional academic infrastructure and support services in partnership. We design and develop high quality, affordable, student accommodation, academic infrastructure and support services. Our unique partnerships enable universities to make best use of their assets, freeing up university resources and improving services to students.” That last bit about ‘freeing-up’ resources is important, because this way of financing building projects allows Universities to keep the costs of investment off their balance sheets – thereby enhancing their on-going borrowing strategies. Nothing to worry about there then.
It’s worth slowing down a moment, and recognizing that the emergence of this debt-fuelled model of higher education is rapidly evolving – until very recently Universities were able to raise capital on favourable terms because of an implicit assumption that they were in the last resort guaranteed against failure by government. That’s no longer such a wise assumption. Government now not only seeks to facilitate new entrants into HE but says out loud it will not automatically prop-up a financially failing University. This effort to enforce marketisation is one reason why it is important to differentiate between arguments that HE is currently an imperfectly functioning market that could be made more perfect, and an argument about why it might not be a good idea to imagine that it’s sensible to imagine it should or could be in the first place. Of course, Universities remain very heavily dependent on government funding in all sorts of ways, primarily in terms of credit-extended to fund student fees as well as direct grants and research funding. It’s not clear that the model of financialization of higher education upon which the trashing of my pension has been premised is actually even sustainable.
And it’s worth noting, in the middle of all this, just how variable the subject of ‘The Student’ has become. It’s easy to bemoan the idea that students are increasingly treated as consumers, but it in fact students are figured in various ways in contemporary higher education policy and strategy: as future recruits, they serve as security against which Universities can secure loans; they are quite publicly presented, amazingly, as superficial air-heads who are easily dazzled by ‘shiny buildings’ when making life-changing decisions; they are expected to be only ever motivated as utility-maximisers by the promise of future earnings in their choices and expectations and satisfactions (giving rise to a weird sense of what ‘vocational‘ means in education, which is reduced to quite instrumental ideas about value for money; which doesn’t leave much space for the idea of a calling, a passion, a life’s worth of mission); and, rather importantly given the debt-leveraged nature of all this building work, as reliable rent-payers. And this disaggregation of ‘The Student’ into a dispersed range of abstract singularities facilitates in turn the re-aggregation of “student voice” and “student experience”, always and only ever spoken-for by University managers.
Now, at this point, I want to step sideways and make what might appear to be an arcane theoretical point: I want to say out loud that I think none of this can be helpfully analysed with reference to extant conceptualisations of neoliberalism. My reason for saying this here is because I have made this case on a couple of occasions as contributions to local UCU-related teach-outs in the last week or so, so I thought as a matter of good faith I should reiterate the argument here too. The framing of the wider context for this dispute routinely falls back on the terms of a popularised discourse of ‘the neoliberal University’ set against an idea of Universities as a public good that has come to define a whole space of critical imagination for the academic left and beyond. It’s worth slowing down a moment and considering what difference it makes to think about higher education as a public good or as a means of achieving the public good – and noticing that in neither case are market mechanisms necessarily inimical to desired collective outcomes. I happen to think that the analysis of processes of the marketisation, financialization, and consumerisation of higher education in the UK needs to be freed from the weight of the theoretical edifice of critical discourses of ‘neoliberalism’ (and I think this not just for academic reasons but also because I think it contributes to bad political strategy). I don’t want to rehearse a lengthy academic argument here, so I will try to be quick: leaving aside the complete incoherence of ‘neoliberal’ as either an explanatory or descriptive term, and the fact that all critical theories of neoliberalism tend to suffer from a somewhat unhealthy identification with their putative object of analysis (this is related to the methodological basis of most social science research on neoliberalism, which for all the talk of ‘political-economy’ tends to be based on fairly simplistic forms of discourse analysis (without even admitting it) and interviews with elite actors; or, for those late to the game, it is related to having no regard for the empirical at all, preferring to simply show the normative inadequacies of a set of theoretical propositions that are presented as having already been perfectly realised in the world). To cut a long story short, prevalent theories of ‘actually existing neoliberalism’ – whether the carpet theory of roll-back and roll-out variegated neoliberalization, or those of a more sophisticated poststructuralist variety, turn on stark contrasts between states and markets, or between the political and the economic – or, at a deeper level, between bad individualism and virtuous sociality (there are broader issues here about what kind of social theory is at work in critical analyses of ‘neoliberalism’, which tend to be reliant on functionalist theories of the state and of ‘subjectivity’, and devoid of effective understandings of the rationalities of action) .
There are at least three reasons why this whole framework of analysis doesn’t really help in analysing what we are all learning about the political economy of higher education through our involvement in this dispute. They all deserve more attention than I can muster here, but I’ll mention each in turn:
- First, it disallows the possibility of any positive knowledge of the economic (at best delegating that knowledge to a tradition of Marxist analysis that is certainly worth taking very seriously). And if there is one thing we’ve all learnt these last couple of weeks, it’s that it’s really useful to be able to know about the economics of finance.
- Second, as already intimated, risk the central theme linking the use of rankings, pensions as liabilities, and the financing of capital investment (again, that’s what Gail Davies and Felicity Callard have been excavating). And risk is quite central to modern concepts and practices of public life, in a way often underestimated by critical theories. There really is something called the ‘The new risk agenda‘ that is being embedded in bought-in, consultant-led higher education strategising, management and administration. It’s a world in which future pension liabilities show up as a financial risk while leveraged on- and off- balance indebtedness doesn’t, no-one takes seriously the risk of undermining the professional confidence of University staff in senior leadership, and all those flakey metrics are used to make it appear that future student recruitment is a lock-in. There is certainly a debate to be had about ‘the privatization of risk‘, although that’s not quite what is involved here – it’s more like a process in which privatised models of risk, via actuarial practices and the operations of debt markets, have become integral to the delivery of new understandings of the ‘public benefits’ of HEIs.
- Third, and picking up on this suggestion, entrenched critical discourses of neoliberalism find it very difficult to acknowledge that the marketisation and financialization of higher education involves the reconfiguration of the relationship between the means and ends of the public dimensions of higher education, rather than the diminution of the public qualities of University life in the face of unrelenting privatisation (the values of efficiency, accountability, freedom and choice that legitimise that reconfiguration are, after all, no less public values than, say, equality or justice). It is presumed that market mechanisms – in this case financialized practices – can only ever undermine properly public values (and it’s never explained why this infectious relation cannot work in the other direction as well).
The example of pension provision, which is what our dispute centres on, should remind us that there is no necessary reason why private means cannot be used to secure public goods (in that respect, Adam Smith remains a rather insightful theorist of modern public life). The history of pension provision in the UK from the early 20th century until the introduction of George Osborne’s “Freedom and Choice’ reforms in 2015 illustrates that it’s perfectly possible to combine private markets for investments with specific tax regimes to deliver welfare outcomes.
I guess my point is simply that higher education isn’t a public good – there are multiple public goods associated with higher education (and they might actually be proliferating even as the means of achieving them is being narrowed). At its most straightforward, as subject to the Charity Commission, Universities in the UK are obliged to demonstrate that their activities deliver Public Benefit to all sorts of constituencies (have a google, you’ll quickly be able to find the annual reporting of how your University’s delivers Public Benefit). It is possible to imagine various configurations of the objects, subjects and mediums of public life rather than holding to a stark contrast between two separate, and opposed realms. The marketisation and financialization of higher education, expressed not least through heavily leveraged capital investment programmes, represents a re-configuration of the means and ends of the public qualities of HE. And it’s not just done in the name of public values (to think that this will do as an analysis requires you to still believe in the concept of ideology, which you just shouldn’t). To illustrate my point, consider the evaluation of the capital investment by the research-intensive Russell Group Universities between 2012 and 2017 produced by the economics consultancy BiGGAR Economics in 2014 (great name). It should be said that most of the increase in capital investment by Universities is driven by a relatively small set of research-intensive institutions. The evaluation found that almost 100,000 jobs would be supported by more than £9 billion of projected investment – spending on “a wide variety of different types of project from new libraries and student accommodation to major urban regeneration projects and world-leading medical facilities” – and that every £1 invested will generate £4.89 ‘gross added value’ – these claims being arrived at by using a “specially developed economic model”, the details of which are not made publicly accessible. These impacts will be felt over different time-scales – the total added value is divided between short-term impacts (the impacts of building the buildings), longer-term operational impacts (which derive from what goes on in the new buildings once they are built) and long-term ‘catalytic’ impacts: there at least 6 dimensions to this latter category, which anchors the really strong claim involved, namely that capital investment by Universities does not just amount to a redistribution of central government moneys but contributes to the active generation of new wealth. The six dimensions are ‘graduate productivity’, ‘medical research’, ‘commercialisation and innovation’, ‘enhanced research competitiveness’, ‘tourism’ (basically, parents coming to stay in University towns when their kids graduate) and ‘improved learning environment’ (which loops back to securing future student recruitment).
The report has a lovely conclusion, in which it is asserted that “Investing in a high quality learning and research environment” allows Universities “to attract and maintain the best students and researchers”. In this vision, capital investment projects are integral to the building of the ‘human capital’ that is central to both teaching and education. What a lovely idea. Unfortunately, no-one told the authors of this report that the specific business model upon which these programmes of capital investment depend actually requires that academic labour markets are increasingly bifurcated and students increasingly treated as assets – so that the ‘human capital’ part of that equation is actually sacrificed to the ‘capital-capital’ part.
The BiGGAR report illustrates that even when the impacts of higher education are, as they increasingly are, presented as accruing to individuals (the future salaries of students) or private entities (‘industry’) then this is understood as being a means through which wider public benefits can be generated. It’s just one example of how far the reconfiguration of higher education has involved a trend by Universities to claim to ‘doing everything‘ for everyone (social mobility, productivity increases, technological innovation, instilling civic spirit, solving climate change, etc., etc.); and the associated adoption of management models that are shaped by the imperative to provide evidence of that capacity to deliver for both instrumental reasons and accountability reasons.
So, again by way of example, the University of Exeter makes regular use of economic consultants to help it publicly demonstrate the benefit of increasing number of international students that it has bought to the city and region, part of a broader imperative to demonstrate the economic impacts of the University locally and regionally. And in case that sounds a little too economistic, then the University also makes strong claims about acting as an anchor institution the generates all sorts of social and cultural benefits alongside economic ones. The “anchor institution” idea has taken off in government and other public agencies around HE, and it’s an interesting example of travelling theory, whereby the original sense of the potential of certain public institutions driving regeneration in deprived and ‘vulnerable‘ localities and regions has been turned into a generalised narrative about Universities driving innovation and growth anywhere and everywhere. The specific combination of justificatory logics behind these sorts of claims about local impact is not peculiar to Russell Group institutions, it’s common across the whole HE sector. And one of the key roles of the not-so-loved UUK is to scale up these sorts of claims to the national level.
Now, to return to my theoretical hobby-horse, I don’t think neoliberalism or ‘privatisation’ or counterposing ‘people versus profit’ actually captures what is going on here (And I realise that “It’s complicated and contradictory and complex” doesn’t make a great slogan. It’s much worse even than Rectify the Anomaly, although I am personally increasingly drawn to the idea that University staff should campaign around the slogan “We Have a Right to be Well Managed”). Those slogans (and that’s what ‘neoliberalism’ really is remember) ask us to buy into a moralistic contrast between bad privatised, competitive, marketised, individualised practices versus good, virtuous, sharing ones. As I said, I think the ‘neoliberal’ frame leads us to misrecognize the degree to which what is at stake is a dispute between different understandings of the public responsibilities of higher education, and especially between different understandings of the best means by which to achieve the public purposes of higher education. I happen to think a better place to start is to take seriously Rowan Williams’ characterisation of the current trends in higher education restructuring as being shaped by a “half-baked utilitarianism“. It’s a suggestion that has more purchase in analysing the dynamics of the changing world of higher education, and it is neatly illustrated by the line parroted by VCs that I mentioned at the start, in which the costs of sustaining decent pensions systems is set against the sacrosanct requirement to continue to invest in expansion: that zero-sum line exposes how the calculation of the value of the public benefits of higher education – in terms of social mobility and productivity improvements and that innovation and economic growth that is meant to follow from a credit-led expansion strategy – is totted up and then the ‘sufferings’ resulting from gutting staff pensions are simply subtracted from the total: what you get is a projected overall increase in an aggregated utility function.
In the UK, a shared sense of hubris continues to drive higher education policy (by government) and strategy (by Universities), around which the contradictions and conflicts between these actors revolve. It also lies behind the increasingly toxic mess of top-down, vicious, paternalist, patronising management systems that has come to characterise University life. A significant proportion of University staff have decided to call BS on the whole complex of funding, financing, and management over the last few weeks. As this dispute moves towards its fourth week, what is becoming increasingly clear is that it is not just that the governance of collective University decision-making is in crisis – that much is clear enough when the constituent members of UUK are themselves complaining that this organisation can’t be trusted – but that the whole model of individual University governance is itself in need of urgent reassessment. It’s easy to fixate on the responsibilities of VCs in all of this, but McGaughey is surely right to suggest that it is the whole edifice of upper-level University governance that needs to be democratised: “in every university, staff, the University and College Union, and students should demand every governing body has a majority elected by staff and students.” The reason why ‘democracy’ is the answer to the crisis of British higher education exposed by this dispute is not so much because ‘neoliberalism’ is opposed to democracy (the two are rather closely entangled), but because what everyone keeps calling ‘neoliberalism’ is really a specific assemblage, shall we say, of practices and meanings of accountability, freedom, and public value. At least that’s my argument, and I’m sticking to it.
You can tell that University administration has become dysfunctional when it becomes normal for everyone to refer to senior managers from the VC downwards by their first names. After all, properly functional, responsible bureaucracies are supposed to be anonymous and depersonalised – yet Universities in the UK increasingly organise themselves internally as if the effective operations and achievements of the whole institution can be accounted for by the forms of authority projected through the charisma of their ‘leaders’ (This is a just warped expression of a more basic and much cherished principle of University governance, whereby Vice-Chancellors are selected from ‘the ranks’ as it were, moving from practicing academics to senior management positions). Of course, the relationships that really matter in Universities are those structured by conventions of pastoral care between students and teachers, and by respect between professionals, not those structured by weirdly personified hierarchies of cascading “strategy”. In the UK, the consequences of the topsy-turvy distribution of personal relations of trust and suspicion in cultures of higher education management (see also my previous comments on the systematic distrust towards academic professionalism embedded in the TEF) have been fully realised in the current dispute about the future of the pension system in pre-1992 Universities. And whatever the outcome of the dispute, it seems to me that there at least two certainties upon which one can count about what life is going to be like in the future for people working in this part of the UK higher education sector.
1). Large numbers of academic and non-academic staff working in British Universities now know that senior management have, to varying degrees and with some notable and honourable exceptions, been actively seeking to systematically diminish the pay and conditions of those working in the sector – we know this because we have all been reading about this for at least a couple of weeks now, a bit late perhaps but better late than never (you can read the position of your own institution here, and more generally follow up on this issue by following the commentary by Michael Otsuka). If the UUK position on the future of the USS pension system prevails, then there will be an awful lot of University staff who will find themselves significantly less materially well off and secure in the future. I’m not aware of any plan by any University to think about compensating their staff for the financial losses which will follow from proposed changes to the USS system. Basically, we’re all expected to do the same amount of work (that is, “more and more” of it all) for less money. This is worth saying out loud to underscore the brazen quality of the collective position publicly endorsed by Universities which provoked the current strike action by University staff. Even if the UUK position does not prevail, even if in some unlikely outcome the UCU’s position wins the day (I’m not that optimistic), then what now exists is an open awareness across the sector, amongst everyone working in a University (with a few notable exceptions), that the particular institution they work for was more or less happy to try to force through this sort of restructuring as quietly as possible, without admitting it, and by attempting to ‘naturalise‘ the economics of pensions by way of justification when called out. The sheer mendacity of Universities in allowing the dispute over pensions to get to the current point (leaving aside deeper questions about longer term mismanagement of the pensions system) is not something that will just be erased from memories – it’s now a known fact about institutions that are often enough happy to circulate platitudinous congratulations to their staff when League Table results go well or REF outcomes are positive or NSS scores go up, that they were and are keen to steal money from those same staff members in order to sustain what seem like increasingly thoughtless and unsustainable strategies of institutional growth and ‘global’ competitiveness (the visible, measurable success of which we all suspect directly benefits senior management through ill-considered performance related pay schemes).
2). The irreparable damage to morale and trust that follows from the betrayal revealed by the UUK position and the way it has been meekly supported by individual institutions is only further worsened by the ways in which the more routine forms of higher education administration have been almost automatically applied to the micro-management of the current dispute. This extends from explicitly punitive and provocative efforts to bully staff into giving up on strike action through to more ordinary, often rather clumsy, but I have no doubt widespread efforts such as those at my own institution to require individual academics to provide detailed information about the impact of their strike action on teaching (somehow they never ask that question about impacts on research), as well as explicit efforts to force colleagues to make-up classes not held because of strike action (i.e. to provide teaching after the strike for which salary has been withheld because of being on strike). These sorts of heedless attempts to manage the effects of the strike action extend to the making of blanket promises to students, strongly implying to them that any missed classes will indeed be caught-up by striking academics, a promise which amounts to central University managers seeking to leverage the expectations of students in order to expose often relatively junior staff members to further stress, harassment and pressure. In one respect, this is business as usual, in so far as all of these forms of response reflect what is now an almost taken-for-granted model of top-down micro-control in which University management seeks to monopolise the right to speak in the interests of students in order to impose from above changes to teaching practices that are wholly insensitive to either sound pedagogy or well-established good practice at ‘the chalkface’. In short, if one certainty going forward is that senior University managers will not be able to put their own Humptiness back together again, the other seems to be that they will nonetheless continue for a while yet to operate with the same centralised models of internal micro-management as before, thereby only compounding the effects of demotivation, demoralization and lack of trust that follow from 1). above.
The predictable outcome of the current dispute, then, is that University senior managements are likely to be widely held in contempt by significant proportions of the staff working for their own institutions, and with complete justification. Again, with some exceptions of differing degrees (and those exceptions just underscore the degree to which the standard line taken by many Universities is an intentional decision to act in a particular manner), a large number of individual Universities and the umbrella organisation UUK have been revealed to be dishonest, out of touch, ill-informed, and manipulative (did I forget to mention incompetent?); and the embedded systems of institutional micro-management that have been rolled-out over the last decade or so have been revealed to be entirely unsuited to the cultivation and maintenance of a spirit of collegiality upon which any University community crucially depends.
Properly speaking, that all amounts to a real live crisis of legitimation – Universities no longer have the means to secure the identification of those over whom they presume to exert authority.
It should be said that this is far from an unambiguous state of affairs. University management in the UK is already suffering from a very serious PR problem thanks to scandals about vice-chancellor pay and expenses. The cultural politics of that issue are far from obviously aligned with the interests being defended by the UCU in its campaign for secure pensions (remember, the same person who thinks that levels of VC pay is a scandal also thinks that academics’ spend half their time on holiday, which is another way of saying we are underworked and overpaid). This dispute, however enlivening and affirming for all of those involved in it, is taking place in a context in which a decadent and decaying Tory government is intent on forcing through a series of ill-considered structural changes to higher education, including revisions to student fee systems, intrusive regulatory regimes (TEF, again), heightened competition by allowing ‘new entrants’, and further compromising the autonomy and integrity of research at the altar of ‘innovation’ and ‘regional growth’ and ‘impact’ and ‘global challenges’. For an entire culture of higher education senior management and leadership to have been so thoroughly delegitimized in the eyes of those who, remember, do all the teaching and deliver all that research excellence, is in this wider context a far from unambiguous process. There is, after all, nothing about ‘crisis’ situations that tends naturally to encourage progressive outcomes. This is a moment for heightened vigilance not only towards the unfolding of this particular dispute but also of the ways in which this dispute might be spun and appropriated by various interested on-lookers.
The ‘crisis’ that the current dispute over pensions represents is, one might suggest, in no small part an effect of a systematic form of hubris shared across a whole stratum of University managers, a stratum which has for more than two decades happily embraced and promoted the idea that Universities can do everything – deliver social mobility, help drive national economic growth and technological innovation and revive productivity, generate cultural diversity and creativity, anchor local and regional dynamism, and various other functions too. Taking on these undeniably public responsibilities has, however, been associated not only with the adoption of particular models of University financing but also with the consolidation of ill-starred systems of centralised and hierarchical management that are, in practice, at odds with the fundamentally pluralistic qualities of the modern University. There is behind all of these issues a series of questions about the opacity and unaccountability of University governance, beyond and above questions about the management of Universities, that too often remain hidden from view – time for the co-operative University, anyone?
I had a conversation the other day with my colleague Sean Carter on the subject of the apparent lack of songs about University life (we were on strike, so whether talking about this absence quite counted as a work-related conversation remains a little unclear). I think we agreed that there is no equivalent of the campus novel in pop – no identifiable genre of the ‘campus pop song‘. Anyway, provoked by that conversation, here’s a stab at a playlist to keep up spirits on [the way to] the picket line next week to support the UCU’s campaign against plans to gut the pensions of University staff. I realise that this reflects the tastes of a man of a certain vintage (but that’s OK – after all, I’m on strike to protect my PENSION). And in my defence, remember that most pop songs are about falling in love and/or broken hearts, and that most pop songs which are not about those things aren’t very good.
Songs to help energise and maintain mobilisation:
Songs to remind you about the causes and stakes of this particular dispute:
Songs to help you keep things in perspective (that is, to help us all remember why Universities matter, as well as why there is more to life than an education and that all sorts of things can be educational):
One of the peculiar things about working in Higher Education in the UK these days, as Universities become increasingly assertive about declaring their own public significance – in terms of their contributions to students’ employability and thereby national productivity, to regional and national economic regeneration, and to local diversity and creativity – is the sense of dissonance that arises from the use made by those institutions of various sorts of ‘data’ and ‘evidence’ and even ‘concepts’ to support those justificatory claims, on the one hand, and on the other what seems increasingly to be the systematic elision of social science expertise in the public performance of the importance of any single University, or of Universities in general (as a colleague of mine has helpfully pointed out, this process is one symptom of the institutionalised stupidity of audit-led higher education governance in the UK).
The current dispute between the University staff union, the UCU, and Universities UK (UUK) over the sustainability of USS pension system (or, if your prefer, over the attempt by the latter to basically allow Universities to steal money from their employees) is one example of this disconnect, and an illustration of the politics of knowing internal to the operations of contemporary HE institutions. The position of the UUK, parroted by many (though not all) VCs of Universities, rests on the claim to have access to a singularly authoritative interpretation of complex financial information (including the putting beyond question of certain ‘facts’, as if actuarial knowledge is, and even presumes to be, an exact predictive science). But lo and behold, it turns out that Universities are full of people who not only read the papers and know about how institutions work and what really motivates people, but also a whole bunch of experts who turn out to be perfectly adept at questioning the authority of those singular interpretations of the facts.
The know-it-all style of communication displayed by some Universities in the current dispute is one part of a more general, increasingly taken-for-granted model adopted by Universities in which they loudly project their achievements and ambitions, in the interests of securing student recruitment, public and private funding, and not least, hoped-for alumni support. I sometimes wonder, only half seriously, whether Universities shouldn’t be obliged to append a message to their external communications stating that the viewpoints of ‘the University of X’ do not necessarily represent those of individuals working for that University. The same model of communications has become a feature of internal management cultures too – so that internal management is increasingly shaped by the self-congratulatory register that assumes that everyone is meant to buy into the corporatised mission of ‘the University’ – as if academics work for the the Universities that employ them, rather than simply working at those institutions: we derive our sense of vocation from and owe our loyalty to wider “invisible colleges”. (Whisper it, but really, nobody cares where the University they happen to work at stands in international league tables; that’s not something worth taking any pride in at all, and if you think it is, you don’t understand the complex ecology of modern scientific knowledge). And that’s simply a way of saying that ‘a’ University is more than one thing. Of course, people who manage Universities obviously know that; but increasingly this type of knowing has to be systematically effaced in practices of internal management – another version of stupidity, no doubt.
This style of univocal management is not unrelated to the habit of central HE administrations to assertively seek to represent “student voice” in internal management systems. Student voice is captured by various internal and external metric-based, not-very-robust survey methods (that’s you, NSS), one part of a broader audit culture in HE of course, and then wielded against academic staff to impose centrally determined, pedagogically dodgy programme changes. The purest expression of this form of management is the TEF, an insidious expression of out-of-date Principal-Agent theories of public management, in which students are understood to stand exposed to having their interests as recipients of services usurped by the temptations to self-interest of those supposed to provide those services. (There is a larger story to be told here about quite why British Universities remain beholden to models of top-down, hierarchical management that are, indeed, so dated). As a more or less eagerly embraced system of mismanagement, the TEF involves a doubling of this set of understandings: externally, Government appointed agencies are meant to provide the monitoring function that will keep the Agents (Universities) from mistreating the Principals (students); internally, the logic is just cascaded downwards, so that the central management of the University takes on the role of guaranteeing that untrustworthy Agents (academics) don’t short-change the Principals (those same students). You’ll notice how, in this logic, ‘students’ are doubly displaced into chains of representation in which their ‘voice’ is only ever ventriloquised by those claiming to have their best interests in mind. In this model, students are always and only seen as Pawns; University senior management are treated by their external Government overlords as defensive elitists, but are tempted to think of themselves internally within their own institutions as altruistic Knights; and so, one way or the other, academic staff are only ever treated as Knaves.
One perhaps unexpected effect of the current dispute in UK higher education is the disclosure, revealed by quite robust survey methods, that lots of students’ seem quite sympathetic to the sorts of grievances behind the UCU-led dispute. At the very least, the presumption that students speak with one “voice”, one that aligns perfectly with the perspective represented by central University management strategies, evidently lies in ruins. Herein perhaps lies the longer term significance of this dispute, whatever its outcome (there’s certainly no need to be that optimistic that the employees’ position will win the day). What has been rather shamelessly revealed by the UUK position in general, and in varying degrees by different Universities in their somewhat insensitive repetitions of that position, is a fairly brazen lack of respect not only for their staff in terms of the material issues at stake (pay, pensions and conditions), but also for the basic professional competencies upon which Universities’ day-to-day roles of education, research, scholarly and pastoral care depend. That’s something very difficult to row back (I’m sure that from a management perspective it might well be a difficult task to motivate academics; but once they have been systematically de-motivated, it becomes impossible – all you are left with is systems to “incentivise” them, which are really just a way of systematising the de-motivation). I suspect that part of the reason why some VCs have recently distanced themselves, in different ways, from the UUK party line was an appreciation of the need to publicly maintain some modicum of professional respect towards their staff through the course of this dispute. Other Universities have simply doubled down on the “we know better than you do” model of management and communication, at the same time as thoughtlessly seeking to talk to students as if only they had their best interests at heart in contrast to short sightedness academic staff.
Did someone say ‘stupid‘?
There is, apparently, a ‘war against the humanities‘ going on in British higher education, according to a piece in The Observer this weekend. The piece cites as its primary evidence for this ‘war’ the perspectives of scholars from the humanities, of course, lamenting the effects of changes to funding regimes but also the culture of management in British Universities on the proper pursuit of scholarship.
I always worry when ‘the humanities’ is used as a catch-all to encompass the social sciences as well as more ‘arts’-type fields. It is true, of course, that both arts and social sciences disciplines have suffered from the same funding changes since 2010, but I’m not quite sure that the standard ‘whither the humanities?’ style of criticism of higher education policy over this period necessarily sheds much light on what is really going on, or on how best to evaluate it. The piece in The Observer shares various features of a broader genre of criticism of higher education transformation in the name of ‘the humanities’:
First, as already noted, it conflates a range of different disciplines, but presents next to no insight from anyone who looks or sounds like a social scientist. No doubt we could argue about whether the social sciences counts as ‘humanities’ or not, but in this sort of piece, it turns out that ‘the humanities’ really means literary and arts-based fields and forms of analysis. Therein lay the values most under threat from funding changes and top-down management styles and impact agendas. Amongst other things, one effect of this elision of social science is a tendency to present ‘the sciences’ as the more or less unwitting bad guys in the story. Two cultures, all over again, one of which is always a bit too uncultured.
Second, the lament about the squeezing of ‘humanities’ is often enough made in the name of the values of criticism and critique, but I do wonder whether we should really look for our models of these practices from ‘the humanities’ anymore? To be fair, there is a ‘social science’ version of the same lament. John Holmwood, for example, has written in much the same vein recently about the apparent marginalisation of the critical voice of social sciences in British public debate. Holmwood worries that social science is being shaped too pragmatically, in such a way as to displace attention to social structures. I dare say that an appeal to the value of social science as lying in access to knowledge of structures and possibilities of change bears some structural similarity to the form of discerning insight that ‘the humanities’ are meant to have. In both cases, ‘critique’ is the magical practice that is best able to articulate with public worlds by maintaining a certain sort of distance from them.
The genre is remarkably resilient, it seems, even resurgent. Unhappily, it turns on quite conventional oppositions between (bad) instrumental knowledge and (good) critical knowledge. Somewhere in between, the scope for thinking about different versions of instrumentality gets lost, and the critical voice gets snared in its own contradictions, being forced to disavow various public entanglements (the impact agenda, most obviously, or treating students as adults, rather more implicitly), in the name of a weakly expressed ideal of the worldly force of ‘really useless knowledge’.
There is much to lament about the state of British higher education. And there is, of course, a ‘campaign for social science‘, which has recently managed to produce a deeply embarrassing representation of the value of social science that might well confirm all one’s suspicions about the selling-out of social scientists to ‘neoliberal agendas’ (we are in ‘the business of people‘, apparently). Social science is, of course, a divided field, as Holmwood implies. So too, one might suspect, are ‘the humanities’. The resilience of the ‘two cultures’ genre has been evident since 2010, at least, when arguments in the defence of the ‘public university’ took off in response to Coalition policy changes. It was evident, for example, in the controversy around the AHRC’s alignment with ‘the big society’ agenda (remember that?). That episode illustrated the division within the humanities I just mentioned, rather than an impure imposition of pernicious instrumentalism from the outside. It turns out, of course, that the humanities are really good at being instrumentally useful, at knowing how to ‘sell-out’; not least, humanities fields have been at the forefront of legitimizing the impact agenda both in principle and in practice (as evidenced by evaluations of impact submissions and indicators in the 2014 REF exercise).
The ‘two cultures’ genre is always a trap, not least in the current conjuncture when the defence of ‘the value of the humanities’ is made alongside sweeping references to neoliberalization of higher education. Like it or not, the restructuring of higher education in Britain, and elsewhere, is explicitly made in the name of public values like accountability and social mobility; as a result, the defence of ‘the humanities’ always already suffers from a populist deficit when articulated from within the confines of the two cultures genre, however refined that has become in the hands of Stefan Collini or Martha Nussbaum. ‘Neoliberalism’ is, of course, a social science concept, but not a very good one, especially in this context, because in its most sophisticated varieties, it doesn’t allow you to recognise that contemporary political-economic processes involve the reconfiguration of the means and ends of public life, rather than just a straightforward diminution of public life (here represented by ‘the humanities’) in the face of privatisation, individualism, and competition.
Herein lies the real problem with the elision of social science into a precious view of ‘the humanities’ as the repository of irreducibly qualitative values: the defence of the humanities is generally made via a simplistic conceptual vocabulary of ‘the market’, ‘the state’, ‘bureaucracy’, and other hoary old figures of the forces of philistinism. There is a critique, certainly, to be made of trends in higher education in the UK, but it probably requires better social science, better social theory, than the prevalent defence of ‘the humanities’ seems able or willing to muster. It would require, amongst other things, giving up on the idea that critique is a special preserve of ‘the humanities’, or indeed that it requires discerning access to structural analysis.
Not exactly hot off the presses, I’ve only just noticed this essay by Craig Calhoun in Public Culture, a long and detailed reflection on the changing dynamics of public social science and the public functions of Universities more generally, as exposed by the LSE/Saif Gaddafi/etc affair of last year.
The National Co-ordinating Centre for Public Engagement (NCCPE) has just published a report, Segmenting Publics, co-written by Nick Mahony and I, which reviews the use of market segmentation technologies and other segmentation practices for the purposes of public engagement. This little project, co-funded by the ESRC, investigated the use of segmentation tools in various fields – environmental policy, political campaigning, arts and heritage sectors, charities and campaigning – in the context of various imperatives, including personalisation agendas, behaviour change paradigms, and public service reform agendas. It places the proliferation of segmentation methods in the wider context of the changing dynamics of various ‘public’ issues, including the public health, development aid, environmental issues, and climate change, and in particular the increasing use of social marketing principles and CRM technologies to address problems defined in terms of behaviour change.
This is the first time I have worked on a project like this, directed primarily to a non-academic audience – the specific brief for the report is to address the potentials and limitations (lots of those) of using segmentation methods in higher education contexts. Conceptually and methodologically, the report is an attempt to apply some of the lessons learnt on the Emergent Publics project that Nick and I were involved in with Janet Newman, including ideas outlined in the Rethinking Publics book (reviewed here). It’s an interesting challenge, to take a framework primarily oriented to ‘critical’ analysis and try to use it to address a practitioner audience – i.e. to make the ‘critical’ insights useful and useable by ordinary professionals with jobs to do.
There are a couple of things which I find most interesting about this topic, thought they are not the lead items of this report, given its audience.
Firstly, segmentation gets used all over the place in noncommercial sectors, and while it may seem counter to obvious ideas of inclusive publicness, these methods drawn from marketing are deployed to enable organisations to address obviously public pressures – imperatives of diversity, inclusion, responsiveness, accountability. So I think there is scope here for thinking about how segmentation practices are indicative of the ascendancy of particular models of public responsibility amongst across a range of organisational fields.
Second, there is an interesting ‘hypothesis’ I have now about the relationship between the techniques of segmentation packages (lots of data, lots of cluster analysis) and the ‘theory’ that is inputted into these, to define variables and interpret results. The rage at the moment is all for ‘pyscho’ or motivational variables, that enable organisations to target different ‘susceptibilities’. The ‘subjects’ of these practices, then, first and foremost are not necessarily ‘visitors’, or ‘citizens’, or ‘clients’ – not, that is, the different figures of the public that show up in different segmentations. I think the primary subjects formed by these exercises are the professionals within and across organisations whose practices of engagement are re-shaped by the knowledges of motivations generated by segmentation practices. This is actually a theme you can find in some of the management studies literature about how segmentations work in practice, but as yet there is next to no academic research on how these marketing-sourced practices are used in public and third sector fields, and to what effect.
Segmentation methods are certainly being used in the higher education sector more and more (do let us know you if you know of examples!), although it was difficult to find out much about this in this type of synthesis project – the segmentations used in HE at the moment are likely to be commercially sensitive and valuable, and so are not quite so accessible as the ones generated by DEFRA or the National Trust. And the HE sector is an interesting hybrid in this regard – part of the imperative for the use of these types of methods fits with the ‘public’ purposes we address in the report; but part of the imperative is, of course, a more obviously ‘competitive’ looking one of re-defining the position of institutions in national and international higher education markets.
So, as I say, there is actually lots of scope for academic research on this whole field. We identified various topics in the report for further work:
– How and why segmentation methods are translated across policy areas and professional fields.
– Research into the practices of ‘doing segmentation’ in public engagement contexts (equivalent to leading-edge research on the practice of segmentation in commercial settings undertaken in management studies and marketing theory.)
– Research, assessment, and evaluation of the extent of the use of segmentation in HEIs.
– Research and evaluation into the conceptual and methodological issues involved in using segmentation tools in public engagement activities, including research on the use and analysis of different forms of data and the implications of digitalization for the generation of sophisticated segmentations of motivations and values.
– Research into how the applications of segmentations in public engagement activities are evaluated in practice.
Not sure we will pursue any or all of these. Not sure I want to. But somebody should. This stuff is coming to a University near to you anytime soon. If it is hasn’t already.
These are the three things that caught my eye during a 5 minute scroll through Twitter this afternoon, while very definitely not working: George Steiner reviewing a French book about American theory-wars about French Theory – Steiner is a smart grump on these matters; an essay on book hoarding [they aren’t just objects, they are pieces of one’s mind]; and Christopher Newfield reflecting on the ongoing unmaking of the Public University in the USA. I think I need a hobby.
One sidebar to political upheaval this week in Libya has been the story about Saif Gaddafi’s academic credentials, holding as he does a PhD from the LSE. In re-posted profiles from 2006 and 2009, he is presented as a reformer in waiting, and credited with influencing the relative normalisation of Libya’s international relations. Now it looks a little like a means of providing intellectual respectability for the anointed son. Gaddafi’s PhD was supervised by David Held, who has professed a certain degree of disappointment at the conduct of his former student this week. There is some discussion on the blogosphere suggesting that somehow the cosmopolitan theory that Gaddafi used in this thesis is now shown to be complicit with state-sponsored violence. A bit of a stretch, that argument.
The more interesting aspect of this story is the funding relationship between the LSE and the Libyan regime, which has suddenly become very embarrassing indeed, provoking sit-ins and rapid disavowals (this particular deal was opposed at the time it was established by the late Fred Halliday). This is hardly the first time that a University has been embroiled in potentially dubious relationships wfide runders. But it is timely, in the current context of UK debates about the future of University funding – the long term trajectory of institutions such as the LSE is to seek greater ‘independence’ by substituting public funding for a varied portfolio of private funding. Anyone who has received alumni literature from an Oxbridge college in the last few years will have had this aim more or less explicitly acknowledged. Again, not new, an old story in the US. Nevertheless, this is a relatively new phenomenon in the UK, and it remains the case that the putative ‘brand value’ of elite universities in the UK as private players in an international marketplace for higher education does depend on a massive, century old public subsidy. So the sorts of reputational risks involved in diversifying university funding are likely to be heightened for quite some time into the future. Cosmopolitanism can be a bit grubby, it turns out.