Director: Daniel C. Levy
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Director: Daniel C. Levy |
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PROPHE Summary: This past January the European School of Management and Technology opened its doors in Berlin. In doing so it became the first private university in Germany to focus exclusively on business education. The ESMT offers a one-year MBA program that is taught in English, focuses on practical experience and costs students just more than $60,000. It is part of a multi-campus system that was begun in 2002 with the support of several large German corporations seeking to provide the business sector with a larger pool of highly-trained labor. The university's establishment is yet one more sign of the troubles currently facing Germany's public higher education sector. In the wake of its top universities' dismal showing in several global rankings, the German government has recently looked for ways to increase the quality and stature of its precariously balanced system. While efforts at the federal level are underway to create a small cadre of "elite" universities through massive investments in academic research (the current proposal is to spend an additional €6-billion on academic R&D by the end of the decade), the plan continues to face strong opposition from the state governments (Länder). For the full story, see DW-WORLD.DE Deutsche Welle, January
9, 2006, "First Private Business School in Germany Opens,"
By DW staff (jb). PROPHE Observation: Despite the problems with the public sector, private providers
like the ESMT still enroll less than 2% of the nearly 2-million students
studying in German higher education institutions. More important is
that large corporations like DaimlerChrysler and Allianz who are frustrated
by the low-quality of new graduates have elected to support a private
university rather than invest in existing MBA programs offered by public
universities. While market proponents cheer the decision by German leaders
to foster an elite higher education sector through generous research
funding, money alone does not make an institution prestigious. Given
that the funding model for German higher education is still quite centralized,
it will be interesting to observe how a model based in part on institutional
wealth and part on strong state oversight can help rectify the current
fiscal woes.
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