Soft Power Is No Big Stick

The Higher Education Policy Institute (HEPI) has made its Soft Power Index a regular “silly season” news story that fits into the university admissions period to give some positive news for education correspondents.  It is, however, another example of how the sector’s smugness and tendency to self-congratulation diverts it from serious business such as reputation, student satisfaction, graduate employability and shifting global power.  The Index’s use as an “..influential resource….regularly quoted by Government Ministers and in official documents..” suggests senior political decision makers are equally willing to suspend their critical faculties.  

The claim that educating “world leaders” leads to having soft power is scarcely credible.  It is difficult to believe that a Prime Minister, Finance Minister or central Banker, usually in post at least 20 years or more after graduation, is going to make decisions in favour of the country where they spent a year of their higher education.  The Index does not gauge whether their experience was sub-optimal or might have given first hand insight into the tendency to treat international students like convenient, globally mobile cash machines.

In “Soft Power as a policy rationale for international education in the UK: A critical analysis”, Sylvie Lomer, offers a thoroughgoing critique of the entire concept.  She notes that the linking of a student’s attendance to them being well disposed to the UK is “..next to impossible to empirically prove, and the existing evidence is equivocal at best”.  She argues that “..unsubstantiated assumptions in the soft power rationale reveal that the assumptions of the last century are still in play, representing international higher education and students in an outdated power relation predicated on Cold War politics.”

A summary might be that the notion is out of date, lacks evidence and is based on exploitative power relationships.  Over and above that that the HEPI list itself has some inaccuracies and questionable views about country leadership and executive authority that make it even more unreliable as a measure. Yet all of this makes the front page of UK national newspapers and is seen as a cause for celebration.         

UK May Have Width But Not Weight

Even if it were true that senior decision makers were likely to do favours for the country of their alma mater, Nick Hillman’s claim that, The number of world leaders educated in other countries…is a good proxy for the amount of soft power held by different countries.” seems wide of the mark.  It is like suggesting that having the leaders of Vannatu, St Vincent and the Grenadines and Dominica1 (combined GDP of $2.3bn) well-disposed to trade deals equates to more soft power than having South Africa2 (GDP $418bn) onside.  The size of the benefit or advantage conferred must surely be one measure of any form of power.3

South Africa is mentioned here because it has the lowest GDP of all the nations in the G20.  This brings us to the second problem with considering the HEPI Soft Power Index as a “proxy for..soft power”, which is that the list of UK educated “leaders” does not include any of the current political leaders in the G20 countries.  Those who would point to Emperor Naruhito of Japan by way of rebuttal should consider that Article 4 of the country’s Constitution defines his role as entirely ceremonial and representative, without even nominal powers related to government.

The G20 is referenced because it is commonly known as “the premier forum for international economic cooperation” and its members represent “around 85% of the global GDP, over 75% of the global trade, and about two-thirds of the world population.”  While some other countries and organizations are invited to G20 events the members lead the substantive work throughout the year.  Any reflection on “soft power” should be weighted to consider where that power brings economic and political clout.

US Is Not Much Better

Before anybody in the US gets too excited about its own array of world leaders, it’s worth noting that the HEPI list contains a glaring inaccuracy in suggesting that the leader of South Korea has any education in the US.  Korea Net, the official voice of the Korean government, carries a biography that has President Yoon Suk-yeol3 firmly in Seoul National University for his BA and MA*.  Unfortunately, the HEPI list (below) suggests that Hassan Sheikh Mohamud leads both Somalia and South Korea which is clearly a typo but adds an erroneous addition to the US numbers.

That leaves the US with Rishi Sunak, Prime Minister of G20 member the UK, an alumnus of Stanford University.   There is no doubt that the UK has been keen to do a trade deal with the US since leaving the European Union but that probably has more to do with the economic benefits than Sunak’s year in the “Golden State”.  Sadly, the feeling was not mutual and the UK Prime Minister has accepted the Atlantic Declaration as the best available solution although short of a fully-fledged trade deal.

Royal Flush

One of the more annoying features of the Index is that it indiscriminately incorporates members of various Royal families around the world as leaders of the country.  A little analysis would show that several cannot be assumed to carry any real authority.  Emperor Naruhito, whose book suggests he thoroughly enjoy his time in the UK, might be a fan of the country but as noted above his potential to influence decisions is seriously circumscribed.

Other UK Royal alumni who might usefully be removed from the list are the King of Lesotho, Letsie III, who is the country’s head of state but serves a “largely ceremonial function”, no longer possesses any executive authority and is prohibited from actively participating in political initiatives.  King Harald V of Norway has executive power but “..is not politically responsible for exercising it.”  After a controversy the Constitution of Luxembourg was amended so that Grand Duke Henri of Luxembourg no longer has to “sanction” laws for them to take effect.

The US list has far fewer members of Royalty than the UK.  However, King Felipe VI of Spain may be a useful supporter with most Spaniards apparently wanting him to play a greater role in politics and Albert II, Prince of Monaco, also appears to have genuine executive authority and may be worth his place. .

The list could also do with tidying up so that the disproportionate number of small countries with two leaders listed do not distort the overall measurement.  HEPI have noted that they do not list King Charles III of England as head of state of 14 Commonwealth countries so it’s unclear how some other decisions have been made to list two leaders.  It may be as simple as a way of inflating the UK figures.

Looking At the G Force

Taking Wikipedia’s list of the 61 key representatives at the G20 – country leader, finance minister and central bank “governor” – it appears that 17 of them (28%) have some overseas education at undergraduate or postgraduate level.  Three of the leaders, six of the finance ministers and 8 of the central bankers with US experience leading the UK by 11 to six.  The most international of all seems to be Chrystia Freeland, finance minister of Canada, who has undergraduate experience in the US and postgraduate experience in the UK as well as having been an exchange student at the University of Kyiv , Ukraine.

Another issue to remember here is that the G20 has its own power divisions with the G7 – Canada, France, Germany, Italy, Japan, UK, US and European Union – meeting separately of BRICS (see below). The D-10 Strategy Forum has all of the G7 plus Australia, India and South Korea and is a further inititiative adding complexity to any suggestion that an individual decision makers personal preferences can make a difference.    

More BRICS In the Wall

The growing strength and membership growth of the BRICS bloc could be further bad news for the notion that the UK and US are able to exercise soft power due to offering a superior schooling and student experience.  In 2001 a Goldman Sachs economist suggested that the original four members of BRICS would dominate the global economy by 2050.  The five current members account for 41.5% of global population and c32% of global GDP (PPP).   

None of the leaders has any higher education outside of their home country and only South Africa has a connection with the UK in these senior posts.  One of these, Lesetja Kganyago noted the limitations of soft power in his 2023 Michel Camdessus Central Banking Lecture to the International Monetary Fund, when saying that post-apartheid, “Foreign investors all loved South Africa, but they would not invest based on warm feelings.”  It summarises the core problem with the “soft power” argument – you can love somewhere but decline to put your money where your heart is.

The addition of Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates to the BRICS bloc may bring a few more UK educated faces to the table but also potential problems.  It is argued that “British-Argentine relations will be stifled so long as the UK refuses to engage in discussions about the future sovereignty of the Falkland Islands.”  The UK Home Secretary has recently stated that Iran is the “biggest threat to the UK” which seems unlikely to win friends and influence people.

Summary

It seems entirely possible that high quality higher education can be a powerful force in developing “soft power” through areas including collaborative research, meaningful exchange of good practice and genuine, shared initiatives offering mutual benefit. But time is running out for developed western countries that believe they can exploit countries by simply offering scholarships to smart students.  The BRICS5 initiative is a clear sign that the old world order is being challenged and that countries who have been excluded or manipulated are rethinking their engagement with traditional powers.

NOTES

I undertook an analysis of the HEPI Soft Power Index last year and this blog extends the research and critique to a broader set of country leaders. The research for the current blog was undertaken during week ending 27 August, 2023. Authoritative comments on errors of fact are welcome and will be noted.

The title of this blog reflects US Vice President Theodore Roosevelt’s speech in 1901 where he described the ideal foreign policy as “Speak softly, and carry a big stick”. “Big stick” diplomacy came to reflect backing up discussions with the unspoken threat of military power. It is arguable that in a world where economic links are critical they are usually the dominant “big stick” in negotiations.      

  1. The UK does have “provisional application” trade deals with Dominica and St Vincent and the Grenadines through an overarching deal with the CARIFORUM trade bloc of 14 countries.  Most recent figures show UK trade with St Vincent and the Grenadines was worth £42m and Dominica trade was worth £424m.
  2. UK trade with South Africa is under the SACUM trade bloc of six countries.  Most recent figures show UK trade with South Africa was worth £10.3bn.
  3. I recognize that GDP is only one measure of a country’s relative importance and it is used as an example. In The Power of Nations: Measuring What Matters, Michael Beckley notes “GDP has been described as the leading indicator” and “the Zeus of the statistical pantheon,” because governments, organizations, and scholars around the world use it to gauge states’ raw capabilities.”
  4. Han Duck-soo is the Prime Minister of South Korea and attended Harvard University.  The role of Prime Minister is subordinate to and appointed by the President.
  5. The BRICS membership is not unproblematic and some have suggested it is a “China club”. Nonetheless, there are clear attempts to engage more actively with the Global South in a more inclusive way.

Image by Bieniu94 from Pixabay

Rulings, Filings and Finances

There have probably been better fortnights for INTO University Partnerships (INTO) than the last two of July 2023.  Losing a decision in the court case against the University of South Florida (USF) and missing financial filing deadlines for both INTO University of East Anglia and the parent company are not calculated to bolster confidence or impress existing and potential partners.  Rumours of another round of redundancies and outsourcing also reflect the challenges facing the business.

Truth and Wisdom

Following a hearing on 27 June, Circuit Judge Darren D. Farfante has dismissed Count V of the Second Amended Complaint filed by INTO against Defendants Jennifer Condon, Karen Holbrook, Nic Trivunovich, and Ralph Wilcox.2  In simple terms, the judgement noted that “…sovereign immunity bars Count V of the Second Amended Complaint against the FC Directors as pled.”  The Plaintiffs, INTO USF, Inc., INTO USF LP, and INTO University Partnership Limited, “…subsequently advised the Court that they will not amend and dismissal of Count V of the Second Amended Complaint should be entered for purposes of appeal.”

While the plaintiffs could choose to re-engage on this point if the case ever goes to appeal the position is that after months of assertions that the USF Joint Venture Directors had “breached their fiduciary duties”,3 that particular strand of the matter is closed.  It is difficult to believe that the legal pursuit of individuals hasn’t left some scars on both sides and it may have put the issue of personal liability into the minds of university joint venture board directors elsewhere.  Rulings in one state may not be directly applicable to another but they may offer a sense of how closing a similar joint venture could play out elsewhere. 

Hard on the heels of the judgement USF moved to “..dismiss IUP’s Supplemental Pleading4 with prejudice.”5  This appeared to be substantially on the grounds that Sovereign Immunity also “..Bars Counts X, XI, XII, XIII and XIV”.  The filing also states that that “…opposing counsel (i.e. INTO’s counsel) has not requested that the undersigned stipulate to the filing of a second amended complaint” which seems to suggest the judge will now determine the outcome on these Counts.    

It may be that forthcoming discussions will lead towards a settlement of some sort with notification that a Mediation Conference has been scheduled for 29 September, 20236.  One might think that both organizations would be glad to see an end to such a public dispute.  As always, the author of this blog does not claim any legal expertise and advises readers to seek detailed information to form their own opinions9

History Man to Remains of the Day

The decline of INTO’s first joint venture at the University of East Anglia (UEA) is a saddening tale for anybody involved in the successful early days of the initiative.  The rhetoric was largely about the game-changing nature of long-term public-private partnerships but for those involved in the reality of international recruitment the immediate opportunity for increasing enrolments was clear.  INTO has removed the UEA case study from its corporate pages but the early days were genuinely transformational.

While the crisis at the University and the departure of its Vice-Chancellor has broader causes the situation has been exacerbated by a significant decline in the enrolment and financial fortunes of the joint venture.  The late filing, for the second year in a row, of the joint venture’s financial statement due on 31 July, 2023, means it is not possible to know whether enrolments fell even further in 2021/22 but the direction of travel has been downwards since 2015.  It is also likely that this has contributed to UEA’s declining revenue from international students.

It seems reasonable to believe that the late filing may be due to broader discussions about the future of the joint venture relationship.  New vice-chancellor, Prof David Maguire, is on record as saying that the immediate future is about “survival of the fittest” and it is difficult to see a compelling case for preserving the joint venture while cutting back on schools of study that have formed the institution’s history and sense of self.  At a time when reports say 400 positions – equivalent to 10 per cent of the workforce – have already been lost at UEA through redundancies, severance and resignations, the extent to which the university should continue to help prop up a loss-making commercial venture must be in question.

There may be an alternative argument that the joint venture brings opportunities for direct recruitment to help UEA out of its current problems.  Whether to stick or twist and whether it is wiser to be the history man6 or look with confidence towards the remains of the day7 is a very real choice.  Given the length of the joint venture contract originally signed and what appears to be a lack of performance it will be interesting to see if UEA would consider the USF route to resolution.

Patet omnibus veritas8

INTO’s financial accounts to July 2022 noted that its cash position during the year had declined from £20.5m to £9.4m year on year and that it had “revised EBITDA covenants agreed with its bankers to February 2024”.  It’s difficult to know what is going on under the surface but rumours of further cutbacks are circulating and it seems plausible that there is a squeeze to cut costs early in the financial year that began on 1 August 2023.  The urgency may be sharpened by developing views on enrolment numbers because, as with many education businesses, a significant portion of revenue will be baked in quite early in the year.

A previous blog suggested some of the issues that the incoming CEO, in February 2023, might want to consider.  The Executive Team has already been slimmed down a reduction in higher salaries is to be expected when the 2022/23 results are published.  On the other hand, expenditure on opening University Access Centres seems to be continuing, there is a new partnership to launch at Lancaster University, the recovery of pathway operations in the US looks patchy and there is the spectre of more stringent visa controls in the UK ahead of 2024 recruitment.

In the US, the recent addition of a recruitment only deal with Montclair State University makes little headway in the struggle to recover and compete after several years of joint-venture closures and the acceleration of direct recruitment partnerships by main competitor Shorelight.  In the UK, the partnership with Lancaster University brings a high tariff institution to the party but Study Group didn’t seem able to keep Lancaster happy so the pressure to perform is certain to be on. There does not seem to be any news of further progress in Australia. 

INTO must also be waiting with bated breath on the outcome of the Manchester Metropolitan University International Study Centre tender.  There is rarely a dull moment, which may be why they have been a bit too busy to file their Confirmation Statement to Companies House.  Or it could be that there is even bigger news to come.

NOTES

  1. Truth and Wisdom is the motto of the University of South Florida
  2. Final Order: 07/24/2023 02:59:36 PM Electronically Filed
  3. Filing # 167652717 E-Filed 02/27/2023 07:53:06 PM (point 137 and others)
  4. Filing # 175778804 E-Filed 06/21/2023 09:45:06 AM
  5. Filing # 178214351 E-Filed 07/25/2023 05:09:59 PM
  6. Filing # 179194479 E-Filed 08/08/2023 03:23:11 PM
  7. A small homage to Malcolm Bradbury, author of The History Man (1975), one of the most evocative novels about university campus life of the era, who became Professor of American Studies at the University of East Anglia in 1970 and launched the MA in Creative Writing course.  The course has been attended by several eminent authors including Kazuo Ishiguro who won the Booker Prize in 1989 for his book Remains of the Day and went on to be awarded the 2017 Nobel Prize for Literature.  My best wishes to all colleagues and friends still working hard to make UEA a success again.
  8. “Patet omnibus veritas” is the Latin version of Lancaster University’s motto.  It translates to Truth Lies Open to All.
  9. The background to the court case between INTO University Partnerships and the University of South Florida has been outline in several previous blogs. As before the terms INTO and University of South Florida are used as short forms for the range of corporate plaintiffs and defendants. Full details and all public documents reference in this blog can be found through https://hover.hillsclerk.com/html/case/caseSearch.html the Hillsborough County Clerk of Courts search facility. Insert 22 for the year, CA-Circuit Civil for the Court type and 006001 for the case number.