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144 QUANTIFICATION OF BENEFITS FROM ECONOMIC COOPERATION IN SOUTH ASIA students is much higher than what is charged from local students. However, IITs offer a 50% fee waiver to students from SAARC countries. Taneja et al. argue that the practices of the Sri Lanka medical council (SLMC) sometimes impose rigid conditions on Sri Lankan doctors qualified abroad. In cases where the SLMC does not recognise the foreign degree, they suggest, the Sri Lankan doctor qualified abroad has to give detailed information on the curriculum, duration, qualification of the faculty, etc. In addition, s/he has to clear an examination conducted by the medical council after which s/he is allowed provisional membership. Full membership is granted after a year of internship. In fact, they inform that Apollo in Sri Lanka found it more difficult to employ Sri Lankan doctors qualified in India than Indian doctors. On the other hand, Sri Lankan doctors passing out from any of the six recognised medical colleges in Sri Lanka are eligible for provisional membership on completion of their MBBS. The study of Taneja et al. suggests that several Sri Lankan students come to India to obtain a medical degree from medical institutions such as Kasturba Medical College, Manipal, college of dental sciences and all India institute of medical sciences (AIIMS). While the former two are private medical institutions, the latter is run and owned by the government. The private medical institutions reserve a quota of 50% for foreign students (majority of them being Sri Lankans) while at AIIMS there are limited seats for foreign students. Foreign students at the private medical institutes pay a much higher fee than local students (several times of local fees for MBBS) whereas at AIIMS the fee charged is the same for local and foreign students. The main problem faced by Sri Lankan medical students is that the Indian degree is not recognised by the SLMC unless they clear an examination in Sri Lanka after they obtain their degree from India. Taneja et al’s study has found that the qualifications obtained from India are not always recognised in the Sri Lankan job market. While some Sri Lankan students with Indian degrees have pointed out that they do not feel disadvantaged vis-à-vis local students, others have pointed out that some professional Indian degrees are not recognised in Sri Lanka. For instance, students with medical and accountancy degrees from India have to take an examination in Sri Lanka before they can practice. For engineers, Sri Lanka specifies organisations and companies for which membership with the Institute of Engineers is mandatory. Foreign engineers can acquire membership to the Institute of Engineers provided they clear the local examinations. However, where such membership is not required, foreign engineers can practice without membership. Taneja et al. also suggest that several Sri Lankans come to India for training in various disciplines. India has been extending training facilities to Sri Lanka in various professional courses under ITEC and TCS of Colombo plan (annually 70 under ITEC and 50 under Colombo plan). The major courses under these schemes are financial management, auditing and accounting, rural banking, insurance, plantation management, teacher training, textiles engineering and railways. The SLMC and the Indian Medical Association can work out mutual recognition agreements so that medical degrees from both countries should be recognised. A similar exercise could be done for dentists. However, what is urgently required is that Sri Lanka must undertake liberal commitments in the higher education sector. Sri Lanka being an important market in the region, all other South Asian countries would be interested in it. Summary of Restrictions in the Sector • No sectoral commitments • A number of restrictions under Mode 3 • Foreign degrees not being recognised • Ambiguous rules at university level for private/ foreign participation. Bangladesh Bangladesh has thus far not undertaken any commitments in education services in the WTO nor has it offered to do so during the ongoing services negotiations. However, Bangladesh has opened up the education sector and foreign investment is allowed. In fact, trade in education services is already taking place via all four modes in Bangladesh. As there is an enormous gap between the demand and supply of education, the country needs to supplement its efforts by seeking foreign investment. Raihan and Mahmood who have done a detailed study on various services sectors of Bangladesh suggest that in Bangladesh education is one of the basic services where market failure is common and the role of government is essential to ensure education for all (2004: 11). This particular service sector has always been a target for increased investment, both from the public and private sectors, due to the growing demand for education and education related services. Trade in education services takes place only in the tertiary sector, except for an education programme in
H IGHER EDUCATION SERVICES 145 Afghanistan run by BRAC (Raihan and Mahmood 2004). The trade takes place in all modes. In Mode 1, Bangladeshi students participate in various certificate exams, like TOEFL, GMAT, GRE, etc., to qualify for pursuing higher studies abroad, particularly in the US, Canada and the UK. Students of computer science and ICT courses also participate in various professional examinations, like MCSE and MCP. As elsewhere, import and export of educational services take place essentially through Mode 2 and the country is a net importer of education services. Major destinations for tertiary education abroad are: the US, the UK, Canada, Australia, Japan, India and Singapore. Generally, students going abroad for higher studies stay there under permanent immigration schemes (Raihan and Mahmood 2004). The total number of students going to major destinations per year is estimated at 25,000, of which 40% go to India, and more than 2,000 to Australia. In terms of exports through Mode 2, Bangladesh attracts students from Nepal, Bhutan, India and some African countries. Though the total number of students is unknown, most foreign students come to Bangladesh to study medicine, languages or science disciplines. Bangladesh started to import education services through Mode 3 after the government allowed the establishment of private universities and off-shore campuses for foreign private universities. In 2003, the total number of private universities and off-shore campuses of many foreign universities was 52. In most cases, private universities substituted for the import of educational services. While half of the private universities do not have campuses of their own, all have credit transfer facilities with universities abroad (Raihan and Mahmood 2004). More than half have foreign affiliation status. The countries, with which the universities have affiliations, or exchange, joint and offshore programmes, are Australia, the US, the UK, Malaysia, Japan, New Zealand, Canada and Singapore. Although there are serious concerns regarding the quality of most private universities, the boom in these establishments is proof that there is a demand for adult education services to complement the education available at public universities. As a whole, private universities are under-funded. Since 1992 the total investment in private universities was $34.45 million. Twenty-nine foreign teachers visited Bangladesh to provide education services through private universities. One positive impact of these establishments is that many holders of foreign PhDs have returned to Bangladesh to teach. In 2003, the total number of teachers with a PhD degree was 362, and 284 students transferred their study credits to foreign universities. In terms of export, many Bangladeshi teachers also provide education services at foreign universities on either short- or long-term basis, although precise data on the numbers is not available. As a whole, the study suggests, the tertiary education sector is very vibrant and there is potential for further growth in the areas of adult education and training services through all Modes. The country’s higher educational facilities include 11 public and 16 private universities, 4 engineering colleges, 13 public and 9 private medical colleges, and 20 polytechnic institutes (UNCTAD-ICC 2000). Every year almost 45,000 students graduate from various technical colleges and institutes, and the number of students graduating from professional institutes is around 82,000. (Raihan and Mahmood (2004). Although the education sector in Bangladesh has experienced progressive development over the last few decades, it is clear that this particular service sector looks forward to further investment in order to fill the increased demand for quality education. The government’s future vision and current education policy also support the view that any kind of investment geared towards developing the education sector would be well appreciated. Raihan and Mahmood (2004:14–15) provide the following brief description of the areas where foreign service providers can look for investment opportunities: • Tertiary Level Education: This particular level has experienced massive growth in recent years in terms of the establishment of new private universities, the opening of campuses for foreign universities and institutes, and the transfer of students and foreign teaching professionals. The increased demand for tertiary level education, coupled with growing competition in public universities, has opened a window of opportunity for foreign service providers to invest in this area. • Training of Professionals: Since the movement of natural persons has emerged as one of the most lucrative export sectors in recent years, there is an increased demand for skills training to enable workers to access more value-adding professions. However, the lack of experts and training centres have emerged as constraints in this regard. Foreign service providers, therefore, have opportunities to seize opportunities in this area. • Technical Education: Bangladesh has responded to
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QUANTIFICATION OF BENEFITS FROM ECO
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QUANTIFICATION OF BENEFITS FROM ECO
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Preface Our consultations with seni
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viii CONTENTS 7. Revenue and Welfar
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Executive Summary OBJECTIVE This st
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EXECUTIVE SUMMARY xiii Table 1 EAMA
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EXECUTIVE SUMMARY xv India A full S
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EXECUTIVE SUMMARY xvii indicates th
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EXECUTIVE SUMMARY xix ments on basi
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Part I BENEFITS FROM TRADE, INVESTM
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4 QUANTIFICATION OF BENEFITS FROM E
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10 QUANTIFICATION OF BENEFITS FROM
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2 Literature Review and Rationale f
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4 Effective Additional Market Acces
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6 Impact of SAFTA on Member Countri
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7 Revenue and Welfare Implications
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8 Impact of SAFTA on Inward and Out
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9 Quantification of Benefits from T
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APPENDICES
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Appendix 8 Intra SAARC FDI Collabor
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Appendix 11 Table A11.1 On an Emplo
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Appendix 12 Original Commitments/In
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Appendix 14 Table A14.1 Telecommuni
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Appendix 15 REFERENCE PAPER Scope T
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Bibliography Abelson, P. (1996),
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BIBLIOGRAPHY 241 Cuba (2002), Negot
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BIBLIOGRAPHY 243 (2004), Impacts of
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BIBLIOGRAPHY 245 Silva, Patricia an
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BIBLIOGRAPHY 247 (1998), Tourism Se
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