VM Group boss calls for creative solutions to finance tertiary education

Group President and Chief Executive Officer (CEO) of the VM Group, Courtney Campbell, has called for creative solutions to help counter challenges faced by many Jamaicans in financing tertiary education.

Speaking at a colloquium on financing tertiary education, held at the University of the West Indies (UWI) Regional Headquarters in Mona, St Andrew on Wednesday, Campbell noted that there was an urgent need to address the issue.

“We need to increase enrollment in tertiary institutions. Jamaica's gross enrollment rate at the tertiary level of 27 per cent is well below upper middle-income countries and world averages, according to the Patterson Report using UNESCO information,” he said.

“Most tertiary institutions in Jamaica are reporting deficits in their financial operations and many are having acute cash flow problems,” Campbell stated.

Campbell highlighted the fact that a growing number of students who have registered at local tertiary education institutions are struggling to meet financial obligations associated with their studies, and that deregistration has become a more prominent challenge locally.

He said that this was a serious matter with dire implications for economic growth.

“If we are to break out of the middle-income trap and exponentially increase GDP and productivity, we have to close the wide talent gap,” he said.

The colloquium was part of the recently launched UWI Mona/VM Group Distinguished Lecture Series that couples the worlds of academia and business to interrogate matters of national and regional interest, with the aim to craft sustainable solutions to complex issues.

Campbell, in his opening remarks at the meeting which was also attended by Education Minister Fayval Williams, Principal of UWI, Mona Professor Densil Williams, and Vice Chancellor of UWI Professor Sir Hilary Beckles, said creative solutions were not out of reach.

He gave some examples of approaches that could be explored.

“Universities can commercialise their research and innovation strengths in order to diversify and grow revenue. Students could enter the workforce earlier – say after CAPE exams, and be sponsored for tertiary studies by visionary and enlightened employers. VM is already examining this,” said Campbell.

“We could consider Income-Contingent Student Loans – in which the graduates pay for their education if their salary surpasses a minimum income threshold and governments provide that insurance mechanism. This model is working in Spain, the United Kingdom, Australia and New Zealand,” he noted.

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