THink #1: (Re)thinking the Box by TheHEADFoundation

MCI (P) 169/03/2017

MANAGING DIRECTOR’S NOTE

EDITOR’S LETTER

Dear Readers,

Welcome to the inaugural issue of THink – The HEAD Foundation Digest. The editorial team and I took great pleasure in working on this exciting publication, which we hope will fuel your intellectual curiousity and reasonably be a source of alternative and informed perspectives on a wide range of topics.

It is my pleasure to welcome you to the inaugural issue of THink – The HEAD Foundation Digest. I am excited about this new product that The HEAD Foundation has developed, as it could modestly strengthen discourse in the public domain in the region on diverse issues, which is arguably in a nascent stage itself. The genesis of this publication can be traced back to two compelling reasons – the need for a platform in this part of the world to proliferate intellectual and innovative perspectives on a wide range of issues, both retrospective and forward-looking, and the need for The HEAD Foundation, as a think-tank, to catalyse and solicit such thinking on our region, from contributors and intellectuals around the world. The HEAD Foundation is a young organisation, and thus, as we evolve, it is beneficial for us and our constituents – the people of Asia – to help build an ecosystem of critical and innovative thinking in the region, particularly in Southeast Asia where we are based and which is at the cusp of unprecedented economic and social development. Through THink, we aim to do this in a few ways. First, we will leverage on the Foundation’s network of Fellows, who are distinguished intellectuals and change-makers in their own right, from Asia, Europe and North America, to tap on their expertise on the region and their in-depth knowledge of various issues. By engaging them to contribute to THink, we hope to bring to you credible and innovative perspectives on many issues that confront the region. Second, we will also use this opportunity to engage public intellectuals and practitioners from Asia to collate such eminent views. In doing so, we hope to humbly build a unique Asian voice and body of knowledge on global topics. Third, in the spirit of generating and disseminating knowledge, we will not limit ourselves to topics or issues confined to narrow fields. Instead, like a truly aspiring publication with intellectual-depth, we will broaden our focus and bring to you content that you may find intellectually stimulating and which piques your thirst for knowledge. In doing so, we would have met our objectives for this publication and served part of our mission of developing human capital in Asia. I hope you will enjoy reading THink and that you will put forth more ideas to better it. Thank you for your unwavering support.

Yu-Book Lim

T H i n k EDITORIAL TEAM Malminderjit Singh, Chief Editor Anusha Aswani Melody Español C. D. Liang Thammika Songkaeo

We plan for THink to be published at least thrice a year, allowing us to curate a carefully selected list of essays from established and emerging voices on topics that concern the region. At the same time though this frequency will also provide us with the flexibility to react to topical issues that may arise from time to time within the broader theme of each issue of the publication. The editorial team has developed an overarching theme of ‘Looking at the Future’ for the year and so the three issues in 2017 will discuss the different facets of this broad direction. In our first issue, we will be visiting the theme of ‘(Re) Thinking the Box’, which, as may be inferred, explores how conventions may change going forward. In this regard, our feature cover story, The Future of Jobs, discusses if job losses are a real threat in the future in an era characterised by automation and disruption. We also have other essays that touch on rethinking the rules of the future. Aaron Maniam’s cleverly crafted letter to his present self from the future discusses the importance for us to cultivate generative resources, whereas Ming Wong argues for rethinking social innovation in the region studying the cases of Hong Kong and Singapore. Professor Michael Heng makes the case for Asian societies to invest more in cultural and intellectual development in his essay while Professor Chan Siew Hwa passionately discusses how hydrogen could be a key source of energy in the future. There are other essays that also discuss the role of education in shaping the future and how it has already adapted to change the rules of a traditional social institution. THink will also have some regular segments and I would like to take this opportunity to introduce them to you. The first are the contributions from Fellows of The HEAD Foundation. One of the Foundation’s core strengths is its well-developed network of Fellows, made up of experts and distinguished personalities from Asia, Europe and North America. THink will be one of our platforms to engage these eminent individuls as we aim to bring to you their views on critical issues. As such, in this inaugural issue, we have two of our Fellows – Professor Satryo Soemantri Brodjonegoro and Professor Hans Adriaansen – write about their experience and perspectives of educational reform in Indonesia and the Netherlands respectively. We also have an interview segment titled Leadership Spotlight, where we will get up close to leaders from diverse fields in society, who have themselves broken convention or embody the spirit of entrepreneurship and innovation regardless of which industry they come from. For this first issue, we present to you renowned business leader Haresh Aswani, who revolutionised the fast-moving consumer goods sector in Africa. We hope that you will find our attempt to build a diverse and rich intellectual offering beneficial and that you enjoy THink and all that it has to offer. Happy reading!

Malminderjit Singh

INSIDE THIS ISSUE:

Beyond the Scarcity Mindset A Letter from My Future Self

The Future of Jobs Humans Need to Apply

AARON MANIAM

MALMINDERJIT SINGH

Rethinking Social Innovation The Case in Singapore and Hong Kong

Shaping Social Outcomes Expanding the Role of Higher Education in Society

P. MING WONG

PEARL PHAOVISAID

Developing Future-Proof Citizens: Drill or Dare Education?

Accountability of Higher Education in Indonesia PROFESSOR SATRYO SOEMANTRI BRODJONEGORO

PROFESSOR S. GOPINATHAN

The International University College A Dutch Lesson

Searching for New Sources of Energy Why Hydrogen Could be Key

PROFESSOR HANS P.M. ADRIAANSENS

PROFESSOR S.H. CHAN

Book Pick Why Nations Fail

Leadership Spotlight Haresh Aswani, Tolaram Group

ANUSHA ASWANI

Cultural-Intellectual Reinvigoration Reflections on the Asian Century PROFESSOR MICHAEL S.H. HENG

About The HEAD Foundation

Beyond A Scarcity Mindset A Letter From My Future Self AARON MANIAM

This article originally appeared in The Birthday Book, a collection of 51 essays answering the question: What is Singaporeâ&#x20AC;&#x2122;s Next Big Thing?

THink: The Head Foundation Digest

Level #77 The Interface Raffles City-in-a-Garden 10 August 2065

Dear Aaron-in-2016,

But how right you were that the next big thing, for both Singapore and the world, was the movement away from a pure scarcity mindset. I would not overstate the case and say that we now live in age of abundance—but it’s safe to say that resources like data, networks and relationships, are “generative” rather than scarce. The more they are used, the more of each resource we have; the better it

was incredibly excited when humanity finally cracked the time

becomes. Data begets more data, knowledge catalyses new knowl-

travel conundrum and I could send this letter. To think it was all

edge, and the strong social capital underpinning relationships

done with technology developed by one of the seventh university’s

benefits from being carefully tended, much like gardens generate

own research centres, the Inter-temporal Transportation Institute for

new life from periodic pruning.

Molecular Efficiency (i-TIME)! I would venture that such generative resources have five core i-TIME has taken a leaf out of Star Trek’s “Temporal Prime Directive”

characteristics. I know you’re starting to ponder these in 2016, but

and is starting to draw up a Code of Chronocentric Conduct (C3),

thought I’d help to distil the ideas.

which tells me I cannot reveal too much about the future to you, as it might affect the space-time continuum. But I thought I’d take the

1. Generative resources exhibit “input-output porosity”.

chance, before the regulations are fully fleshed out, to encourage

It’s difficult to tell whether things like data, network connections,

you to persist in some of the work you’re doing in 2016—because

and social capital constitute input into, or output from, productive

there is potential for so much more value to emerge from it than

processes. I suspect that the input-output dichotomy, while useful

we’re currently seeing in 2065.

for a world where goods and services were produced in linear, discrete processes, is much less relevant when resources and raw

Do you remember that idea you/I/we had in 2014/2015, about how

“materials” are less tangible. There are inevitable feedback loops

the emergence of Big Data, networks and the sharing economy

between input and output, each feeding into and fed by the other.

might herald a new type of “resource”? You told anyone who was

The lines we used to draw, between production and consumption,

half-willing to listen that traditional economics textbooks weren’t

or producers and consumers, will grow less salient over time. We will

fully right to have first chapters with titles like “Scarcity: The Central

all increasingly become “prosumers”, combining both categories.

Problem of Economics”. I still remember the excitement of pondering a world where data, connections and relationships were resourc-

2. Generative resources suffer, not from overuse (as in the case of

es that might actually grow rather than deplete from being used,

Hardin’s tragedies), but underuse.

particularly given the network links forged by the Internet. New

Neglected communities on the sidelines of cities; websites bereft

resources for a new world! Of course, not all such data and network

of energy and traffic; physical and online networks atrophying

sharing is equal, and much depends on what resource is being

under the weight of sluggish usage; prediction algorithms with

shared, but the overall gains seemed clear. This seemed like such an

insufficient training data; personal recommendation or automation

exciting departure from the exhaustible resources that prompted

engines not used often enough—these are certainly tragic in terms

Garrett Hardin’s famous phrase “the tragedy of the commons” in

of lost potential and capacity. But the tragedy lies in insufficient

1968, based of course on the “enclosure” of common land carried

rather than over-exploitation—sometimes by choice, and some-

out by the English King Henry VIII. (In case you’re wondering, the

times because even in 2065 we still lack the computational power

phrase is still famous in 2065!).

to analyse the new information.

I can tell you that some scarcities haven’t disappeared, even now.

3. Generative resources are not static but constantly evolving.

There is still inequity, and more wants than can be met with the

This might seem obvious, until we remember that for the better

productive capacity enabled by raw materials like oil and minerals.

part of humanity’s economic history, our idea of resources focused

C3 regulations mean that time is scarce too—for now, at least!

on goods that stayed by and large the same during a productive

April 2017 |

“ We now live in age of abundance — but it’s safe to say that resources like data, networks and relationships, are “generative” rather than scarce.” process: things like oil and iron. Their physical states might have

This means adopting a much more systems-oriented approach, to

changed, but the core of the resource was relatively constant. Your

harness the generativity of networks, and more collaboration to tap

resources in 2016 are already starting to show signs of being much

into generative relationships. It means more public participation

more dynamic and iterative: data feeds on itself, networks give

in public policy—more deliberation by citizens on the decisions

rise to cycles that can be virtuous or vicious, and social capital

that affect their lives—more policy that is truly “of, by and for” the

can undergo massive non-linear transformations. So much more

people—because such broad engagement is itself a generative

happens between then and 2065, but I won’t spoil too many

process, characterised by immense potential and vitality. It means

surprises for you!

reviewing our intellectual property and tax regimes, because what constitutes “value” in a world of generative resources will be more

4. I’ve been increasingly intrigued by the related idea that

complex and variegated than our institutions are used to.

generative resources don’t have clear boundaries, but fuzzy edges.

I wish you could see just how generative resources have become.

This is important because we usually rely on well-defined boundar-

But I need to be careful, even if the C3 regulations aren’t fully artic-

ies when we govern (or decide who should govern) a resource. But

ulated. What I can say is that 2065 is exciting, full of possibilities, and

where do things like data, networks and relationships start or end?

will be worth the wait.

I don’t have a full answer to this, even in 2065, but the question has helped me to experiment with new ways of managing and governing such resources, focused more on the norms underpinning their

I’ll write again as soon as I can.

use, rather than mere physical concepts like their quantity.

Aaron-in-2065

5. Put together, the intangible and evolving nature of such

P.S. You probably guessed—some C3 standards that have been

resources mean that there are few clear “equilibrium” points in

codified clearly state that I can’t tell you what stocks to long in the

their usage or governance.

next 50 years. Not that I would have. I also can’t divulge what job

There’s another concept that economists used to love—and I have

you/I/we will do in 2065, but I can say this: it will be fun!■

to admit, equilibria do help to simplify analysis. But the real world doesn’t usually exhibit stable or immutable equilibria; it has a much more emergent quality, characterised by constant shifts and evolution. Life in 2065 is much messier than in 2016, in ways that your

Aaron Maniam is the Director of the Industry Division at the Ministry

quantum scientists are only just starting to appreciate… it’s also a

of Trade and Industry (Singapore). He is a curious generalist-civil

lot more interesting as a result!

servant by profession; poet by calling; volunteer educator and diversity facilitator by choice; all of them by passion. As the first Head of the

I’ve been thinking a lot about what all this means for Singapore—

government’s Centre for Strategic Futures (2010 – 2011), he crafted

both yours in 2016 and mine in 2065. That’s why I wanted to write:

many letters, scenarios and other artefacts from the future. He believes

because I hope you keep thinking about generative resources, and

deeply in the value of such “anticipatory muscle”, and sees inculcating

how we can move beyond the traditional scarcity mindset of eco-

long-term thinking in younger Singaporeans as the most important

nomics. Starting from 2016, we need a change not just in our policies

thing he can do in and outside work.

and business approaches to resources; we need a fundamentally new language for, and way of thinking about, resources themselves.

THink: The Head Foundation Digest

Rethinking Social Innovation A Look at Singapore and Hong Kong P. MING WONG

ingapore and Hong Kong compete on many fronts. These two

a measure of income disparity, place them among the world’s most

city-states, comprising half of the original Four Asian Tigers, which

unequal countries. The challenge for both Singapore and Hong Kong

also include South Korea and Taiwan, routinely top global rankings and

now is how to use their considerable wealth and resources to improve

surveys when it comes to indicators such as competitiveness, business

the quality of life of all their people and ensure that no one gets left

environment, transparency, infrastructure, education standards, quality

behind in the countries’ never-ending search for economic growth.

of the labour force and the rule of law. These factors have contributed to their positions as major financial centres rivalling New York and London.

A high GDP per capita does not appear to equate to a happy populace.

The flipside of their success is their unenviable positions among global

While Singapore and Hong Kong both enjoy some of the highest GDP

cities with the highest cost of living and the largest income inequality.

per capita figures in the world, their rankings in the latest World

Hong Kong and Singapore are placed first and fourth, respectively, in

Happiness Report tell a different story. Singapore ranked 24th out

the 2016 Mercer Cost of Living Rankings while their Gini coefficients,

of 158 countries surveyed – not a terrible position – but Hong Kong

April 2017 |

came in at a distant 72nd. Another poll, published in 2012 by Gallup, reported that just 36 percent of Singaporeans expressed experiencing feelings, positive or negative, on a daily basis, though such expressions are “a vital measure of a society’s well-being”. This places Singapore last among 148 countries surveyed. In the same poll, Hong Kong ranked 73rd, with 69 percent of its citizens expressing feelings of happiness. Although we should be careful not to read too much into these statistics, these two polls clearly show that there is room for improvement in both Singapore and Hong Kong. There would not be any quick fixes, but a dose of social innovation might just be the right medicine to rectify the woes facing these two high-flying cities. Based on the actions of the governments of Singapore and Hong Kong, the leadership in these two city-states seems to agree as well. In the past two years, Hong Kong has launched two funds, each worth HK$500 million (US$65 million); the Social Innovation and Entrepreneurship Development Fund promotes social innovation through “innovative solutions that address poverty and social exclusion,” and the Innovation and Technology Fund for Better Living applies technology to improve the lives of its citizens. In Singapore, the ambitious SkillsFuture programme, announced in 2016, offers every Singaporean over the age of 25 a credit of S$500 (US$360) to enrol in classes that promote lifelong learning and mastery of new skills. While it is unclear if these examples of social innovation initiatives would ultimately succeed in improving lives and reducing social problems, they represent ideas worth pursuing. Both cities are also focusing on becoming technology start-up hubs in areas such as fintech, healthcare, education and e-commerce. The proliferation of new co-working spaces and start-up accelerators in both Singapore and Hong Kong in recent years suggests that their start-up scenes are thriving. TechinAsia reports that Hong Kong’s start-up ecosystem is valued between US$2.8 billion and US$3.5 billion, and that Singapore’s is approximately four times higher. Given the importance of technology, the Hong Kong and Singapore governments should be actively encouraging start-up founders to also use their skills and

“ We need to encourage and incentivise our best young minds to focus their energy and intellect to design products and services that create social value beyond just making money.”

knowledge to help design products and services for under-served communities, including those of the elderly and of children from economically disadvantaged households. Stanford Business School defines a social innovation as “a novel solution to a social problem that is more effective, efficient, sustainable, or just than current solutions” with “value created accru[ing] primarily to society rather than to private individuals.” For social innovation to meet such lofty goals, the public, private and third sectors need to collaborate and acknowledge that any one of them would be unable to solve

THink: The Head Foundation Digest

complex social problems by working

return of an investment, including its social

alone. Such collaboration, however, is

and environmental impact, and not just its

challenging because it requires govern-

financial return.

ment, foundations and non-profits to work with mainstream businesses and

In my view, two mindset shifts need to happen.

private capital. These entities speak dif-

Those hoping for social innovation have to first

ferent languages, often have little under-

break out of their silos and start talking to all

standing on how others work and tend to

players in their ecosystem. They then need

have “silo” thinking that makes extension

to shift their focus from structure to results.

beyond their own comfort zones and

Deng Xiaoping was right when he said, “It

mindsets to work with other people diffi-

doesn’t matter whether a cat is white or black,

cult to achieve.

as long as it catches mice.” Grant-makers need to accept that for-profit social start-ups are

I have, for example, witnessed many

often better positioned to solve social issues

examples of government departments

at scale; grants for such start-ups are accept-

and foundations happy to make grants to non-profit projects that provide employment to disadvantaged groups despite these projects not being scalable or having any long-term viable business models. I am not saying that grants are a bad thing, but I do get frustrated when many for-profit social enterprises find themselves ineligible to receive any funding because the same grant-makers believe that grants should, under no circumstance, be used for private gain. Instead of searching for models that best solve a social issue, these myopic officials focus only on the fact that the start-up founders might profit from public funds and ignore the fact that profitable social start-ups are often best positioned to address social issues at scale and that any public funds used to achieve such goals represent money well spent. Just as government officials and foundation leaders need to modify their mindsets if they truly wish to find innovative solutions to existing social issues, I also believe traditional investors, both

“ Just as government officials and foundation leaders need to modify their mindsets if they truly wish to find innovative solutions to existing social issues, I also believe traditional investors, both institutional and individual, need to reexamine how they view returns on their portfolios.”

able. Investors also need to evaluate their investments by assessing their social and environmental impact and not just their financial return. Many foundations and family offices have started to embrace this approach. Corporations and institutional investors now need to do so as well to realise systemic change. Finally, we need to encourage and incentivise our best young minds to focus their energy and intellect to design products and services that create social value and go beyond just making profits. Only then can social innovation begin to thrive and allow Singapore and Hong Kong to take their places among the most sustainable, equitable and just societies in the world. ■

P. Ming Wong is cofounder and CEO of Asia Community Ventures. Following a long career in banking and finance, Mr. Wong has spent the past eight years promoting impact investing as a bridge between philanthropy and investing. He

institutional and individual, need to

also promotes investing in social start-ups

re-examine how they view returns on

that are creating innovative solutions to

their portfolios. When I make investments

improve education, healthcare and the

in a social start-up, I focus on the total

environment.

April 2017 |

Developing Future-Proof Citizens: Drill or Dare Education? PROFESSOR S. GOPINATHAN

he present time is a challenging one for educators, policy-

castigates the prevalent model of schooling…

makers, parents and students alike. There is general consensus

that we are in new times of volatility and uncertainty, that the

•

…children (are) being taught to behave like machines

triumphs and failures of the past no longer hold lessons for the future.

•

…children (are) dragooned into rows and made to sit still while

The education policy discourse is all about 21st Century competencies,

being stuffed with facts

about grit, resilience, need for multi and technological literacy,

•

entrepreneurial daring and so on. Poor old fashioned public schooling,

Finally, “teachers are now leaving the profession in droves, their

with its emphasis on self-management - also known as discipline,

training wasted and their careers destroyed by overwork and a spir-

content mastery, acceptance of examinations as reliable instruments

it-crushing regime of standardization, testing and top-down control”.

for measuring learning and so on - gets a bad press.

Mind the exaggeration!

In a recent opinion piece in the Guardian entitled ‘In an age of robots,

While no one is contending that everything is fine with present day

schools are teaching our children to be redundant’, author G. Monbiot

systems data and sober reflection is needed to chart education’s way

THink: The Head Foundation Digest

…why is collaboration in tests and exams called cheating?

“ Not all knowledge needs to be self-discovered. What is required is a hybrid pedagogy in which context a teacher draws from a wide range of strategies, selects from them as appropriate to the age of learners and the aims of the learning task.”

nology, learning by doing, assessment via project work, doing projects in the community etc. are all commonplace. Singapore students show high levels of content mastery and knowledge application skills. Two brief examples will suffice. In every primary school in Singapore, the Programme for Active Learning provides for varied and curiositystimulating activities. A great deal of attention is also being directed, at the upper primary and secondary schools, to 1–1, the MOE’s Programme for Applied Learning in a diverse array of subjects and areas. Singapore achieved this by careful long-term planning, adjusting and

in the future; exaggerated and hyperbolic commentary will not provide

fine tuning its system to meet changing circumstances. It adjusted cur-

reliable guidelines for change.

ricula and pedagogy in line with new objectives for the system. And it invested in its teachers, seeking high quality entrants, creating a teacher

It has to be noted that the present model of public schooling emerged

education model based on values, knowledge and skills, and making

in tandem with the rise of the nation state and industrialization. It lifted

sure not to delink teacher preparation from the messiness of actual

millions, in the past in our present day developed world, and now in

teaching. And, it incentivised good teachers to stay in teaching by invest-

the developing world, out of ignorance. School based socialization

ing in their professional development. It has sought to develop teacher

created the new citizens, and literacy, numeracy, with some instances,

professionalism and autonomy in a calibrated way via the creation of

technical skills fuelled economic growth in these nascent nation states.

school clusters, progressively given greater autonomy to principals.

The truth is that not all countries are in a post-industrial, knowledge economy state; indeed, even within developed economies, there can

The key lesson from Singapore’s journey towards an education system

be radically different economic conditions. Educational responses must

more relevant to 21st century needs is that seeking rapid transforma-

take account of this.

tions will make for poor policy and shaky implementation. Education systems are embedded within society, both preserving and reflecting

A second point is that Monbiot takes perhaps an overly romanticized

society and also acting as a catalyst for change. System signals are

view of childhood. Yes, children have a natural curiosity, are creative, and

strong, if in the old order, advanced academic certification was the

do learn much by watching and experimenting. But it is a big leap from

key to social mobility, it is reasonable to expect that parents, as much

that to say that all pedagogy should respond to these traits. Schools

as teachers, will value academic performance and all the effort that

do need to socialize children from different social classes, faiths, and

requires. Changing such signals is a society wide effort, requiring all

other classifications etc. to for a shared understanding of their common

stakeholders to move in tandem.

humanity, of their country and its circumstances. That will require some telling from an authoritative figure, a teacher. Reasonable order and

In conclusion, to quote Minister Ng Chee Meng, in order for Singapore to

discipline at the school and classroom level are necessary for learning

succeed in the future as well as it did in the past, the ministry’s policies

to take place. Not all knowledge needs to be self-discovered. What is

will be directed to promoting entrepreneurial dare, in which aspects like

required is a hybrid pedagogy in which context a teacher draws from

resilience, adaptability and an enterprising spirit will be promoted. But

a wide range of strategies, and selects from them as appropriate to the

as always this too will be done the Singapore way! ■

age of learners andage-appropriate the aims of the learning task. Singapore provides a good example of a system which, since 1997, has sought to move schooling from an industrial model to a knowl-

S. Gopinathan is Academic Director at The HEAD Foundation. During his

edge economy model of schooling. It offers a good case study of how

career spanning four decades, he held senior positions in several education

to do it, especially in the context of a system of public schooling. It

institutions and served as the Dean of the School of Education (1994-

has been a journey of some over two decades, and there is still some

2000), at the National Institute of Education (NIE), Nanyang Technological

distance to go. Yes, children do sit in rows, respect their teachers, do their

University. He has consulted widely with organisations such as the World

homework and know the value of academic achievement. Yet, inquiry

Bank, UNESCO, McKinsey and is acknowledged internationally as an

based learning, learning outside the classroom, relevant use of tech-

expert on Singapore’s educational development.

April 2017 |

Searching for New Sources of Energy Why Hydrogen Could be Key PROFESSOR S. H. CHAN

ature provides us with abundant resources. Over 90 percent of the

for example, solar photovoltaic - would allow a fuel cell car to cover a

Earth’s crust is composed of silicate minerals, making silicon its

driving range of 11,100 km. When hydrogen gas is oxidised chemical-

second most abundant chemical element. The properties of silicon and

ly in a combustion engine or electrochemically in a fuel cell system,

its derivatives make them suitable for buildings and roads construction.

it produces pure water as a by-product, emitting no carbon dioxide.

They are also key components in the electronics and semiconductors that have been changing our lifestyles.

Figure 1 shows two important facts on energy density and on the evolution of energy used in human society. It is a fact that the state-

Energy, on the other hand, is one of the most popular topics of the

of-the-art lithium ion battery is puny compared to fossil energy in

21st Century, as the way we use energy is causing worrisome climate

both gravimetric and volumetric energy density, hence the use of

changes. During the recent 21st annual Conference of the Parties

lithium ion battery for massive renewable energy storage posed

(COP21), the inclusion of a 1.5 degrees Celsius limit was seen a major

a question mark.

victory for island nations, such as Singapore, as well as the developing countries. To these countries, the impact of climate change due to

On the other hand, human civilisation has dramatically improved

greenhouse gases, manifested as temperature anomalies and rising

due to the discovery of energy, from wood to coal to oil and now

sea levels, are becoming increasingly intolerable and threatening. By

we use natural gas more than ever. The evolution of energy shows

placing the 1.5 degrees Celsius limit alongside the legally binding

increased hydrogen content in fuels in a log-linear manner, according

goal to hold global temperatures “well below 2°C above pre-industrial

to a study of the International Institute for Applied Systems Analysis

levels”, COP21 explicitly spelt out the decarbonising effort with an

in Austria. One would expect that by the end of this century, the

increasing use of renewable energy. Nature provides us with abundant solar, wind and other renewable energy resources, which in fact are sufficient to support the human needs, the challenge is in affordably harvesting these energy resources are challenging and costly. One of the most challenging technical issues associated with the use of renewable energy, such as solar and wind, is the intermittent nature of energy supply which prompts the need for energy storage. Hence, sourcing for an appropriate energy carrier, especially for those off-the-grid applications such as automobiles, aircrafts and ship propulsions, are extremely challenging if we were to electrify these vehicles. Hydrogen, a clean energy carrier, is the most abundant chemical element in the universe, making up 75 percent of normal matter by mass and more than 90 percent by number of atoms. Unfortunately, hydrogen gas is very rare in the Earth’s atmosphere, though it is the third most abundant chemical element on the Earth’s surface - mostly in the form of chemical compounds such as hydrocarbons and water. One cubic metre of water contains about 111 kilogram (kg) of hydrogen, and if hydrogen is used in a typical fuel cell car, 1 kg of hydrogen would cover a range of 100 km. In other words, splitting hydrogen from one cubic metre of water using any form of energy -

THink: The Head Foundation Digest

“...By the end of this century, the use of renewable energy will dominate the energy market and that hydrogen will be a natural choice as an ideal energy carrier for most of the off-thegrid applications”

use of renewable energy will dominate the energy market and that

Like many other energy sources, hydrogen also poses some safety

hydrogen will be a natural choice and an ideal energy carrier for off-

concerns, but its associated risks are no more than those of fossil

the-grid applications.

energy. Despite hydrogen having a wide flammability range, it is more diffusive and buoyant, which means that it can be dis-

Practically, hydrogen can be split from seawater using massive

persed more easily and rapidly than other energy sources after an

offshore wind energy through high-temperature solid oxide elec-

accidental release.

trolysers. This technology not only promises high energy conversion efficiency, but it is also inert to sodium chloride (salt) poisoning of the hydrogen electrode when the right materials are used in electrolyser cells. Hydrogen gas produced offshore can be piped to the shore for various applications, including direct use in automobiles, conversion to electricity through fuel cell systems, or injection into the natural gas pipeline to form hythane (hydrogen plus methane),

In summary, we are not short of energy as nature provides us with more energy than necessary. It is our choice to adopt more affordable renewable energy with help from financial institutions, especially for the poorer countries. The important message is rational energy end-use, rather than strictly efficiency especially from the perspective of energy storage. ■

which increases the heating value of natural gas for power plants or even home cooking. This scenario paints a picture for hydrogen as a new energy vector in human society. However, one of the drawbacks of hydrogen gas is

Dr Chan Siew Hwa is a professor in the School of Mechanical & Aerospace Engineering (MAE) at the Nanyang Technological University (NTU). He is concurrently holding two appointments

its low volumetric energy density; Compressing the gas to achieve a

as the Co-Director of the Energy Research Institute at NTU

desired density at high pressure is necessary. Alternatively, hydrogen

(ERI@N) and the Deputy Director of the Maritime Institute at NTU

can be stored in solid form as metal hydride, such as magnesium

(MI@NTU). He is also a non-Executive Director of Maz Energy Pte

hydride or in liquid form as methylcyclohexane (MCH), but more

Ltd, where he provides technical advice to the Board since 2004.

Volumetric Energy Density

research is needed before these can be practically used.

| Source: International Institute for Applied Systems Analysis, Austria

Gravimetric Energy Density | Figure 1: Towards a more sustainable future — Energy carrier and storage are critical for off-the-grid applications

April 2017 |

Book Pick

Why Nations Fail:

The Origins of Power, Prosperity, and Poverty BOOK REVIEW BY ANUSHA ASWANI

hy do nations fail? What is the cause of all of the world’s inequality that keeps me up at night? Having studied and

worked in the non-profit sector, inequality is something that I have come to accept. I have come to accept that, unfortunately, some countries are rich and some countries are poor. Perhaps even worse is when there are internal inequalities within countries, and when even mineral- and resource-rich countries also fall on the poor end of the wealth spectrum. Why Nations Fail addresses exactly this conundrum. What is the cause of inequality? To begin, the book discusses and debunks existing theories of the causes of inequality. Such theories include factors such as geography and the culture of the various nations. The authors argue that, as globalisation has made the world a “smaller” place, it has become difficult to segregate or categorize the causes of poverty based on such terms. Yes, some regions may have better resources due to their geographical features, but globalisation and the growth of the service industry have helped to level the playing field for many nations. Another theory that the authors debunk is related to ignorance, which argues that leaders simply do not understand how to run nations and organise their economic and policies. Yet, if ignorance were truly the cause of inequality, then learning and enlightenment - which are easy to attain, whether on one’s own or through advisors - should bring people, including national leaders, out of ignorance. As an individual who believes in the power of self-improvement and education, I couldn’t agree more with the authors that the ignorance hypothesis is a mere excuse.

| Source: Amazon.com

The authors proceed by stating that it is the way the nations are

Acemoglu and Robinson use North Korea and South Korea as their

organised that results in their inequality. It is the choice of those in

initial examples. They are both of the same geography and original

power that results in how a nation is run, and what that nation gets

cultures, and are led by educated leaders, and yet there is a stark

in return. Simply put: nations depend on whether their institutions

difference in the lives of those on the two sides of the North-South

are Extractive or Inclusive political institutions. Extractive institutions

border. The cause of the difference is their political institutions. In

are organised in a manner in which a small group benefits from the

North Korea, everything is controlled by the state, private own-

work of the majority. Inclusive institutions are organised to bring the

ership of land and organisations is banned, and the economy is

population on to a leveled playing field by providing equal opportu-

centrally planned. In South Korea, quite the opposite, private in-

nities in education, civil liberties and careers. Extractive institutions

vestments are encouraged and everyone has an opportunity to

may create success, but this success is not shared or sustained, while

own their property. Some may say that the differences are natural

Inclusive institutions may support innovative and continued growth.

between a dictatorship and a democracy, but let us not forget that

THink: The Head Foundation Digest

South Korea started as a dictatorship, too, and it was also arguably

will grow, and the world will first think of it as a success story, before

successful then.

recounting its violent history.

On a personal note, I grew up in Lagos, Nigeria, and moved back

Having grown up in Nigeria, I am passionate about the African con-

home to Singapore at the age of fourteen. I was able to see such in-

tinent, and these are just some examples to illustrate Acemoglu

stitutions at work directly, even though I may have only understood

and Robinson’s thesis. They, of course, provide many more in-depth

them when I was older. When reading the authors’ interpretation

and well-researched examples in this attention-grabbing book, be-

and discussion of extractive and inclusive institutions, I thought back

ginning with a summary in the introduction and first few chapters,

to my two homes, Nigeria and Singapore. By no means are they on

followed by detailed examples of their argument. This book is one of

level playing grounds, as Singapore is so much smaller than Nigeria,

the most informative books on poverty that I have recently read, and

but they were both colonies of the British Empire, and are at a similar

I would recommend it to anyone keen to see beyond what we often

latitude and populated by many races and ethnicities. Nigeria gained

read or hear in the news today, to understand why nations are the way

independence in 1960, five years before Singapore did. Singapore

that they are now. Critics’ praise the book as “awesome,” “splendid,”

was a fishing village in 1965, but has been able to attain great levels

and “a bit of a masterpiece,” and it certainly did not fail.■

of development by creating inclusive institutions that provide education, homeownership and other opportunities equally for the population. Nigeria has created many more Extractive institutions, particularly in the oil and gas sectors. Oil and gas exports in 2014 in

Anusha Aswani is a Development Manager at The HEAD

Nigeria accounted for 90 percent of Nigeria’s export revenue and over

Foundation. She was introduced to Corporate Social

80 percent of the federal budget revenue. Being one of the leading

Responsibility and Community Development when she began

oil producers in the world, Nigeria should not have a GDP per capita

her career in Corporate Communications. After focusing largely

as low as it is. Why is this? I believe it is because it is only the wealthy

on Community Development projects, she soon made the switch

who reap benefits from Nigerian oil. They extract the oil, which is sent

to Philanthropy where she founded the Tolaram Foundation

to large oil companies for refinement and sold to the community. No

as Executive Director and Board Member. She focuses mainly

benefits reach the people beyond those of price subsidies. There are

on Social Impact and creating positive change through needs-

still instance of “petrol drought” in Nigeria, perhaps attributable to the

oriented projects.

extractive nature of of its largest industrial institution. Similar comparisons can be made of South Korea and Kenya. In 1960, South Koreans were poorer than their Kenyan counterparts, and yet today they are much richer. This is because those in Kenya were not given an equal opportunity in education and eventually jobs, compared to South Koreans. This is not to say that African nations are not doing well or providing civil opportunities. Rwanda, for instance, despite the brutal history of a genocide, has decided to start afresh. It has begun to open up its economy, work diligently on providing education to all of its citizens, and make businesses easier to be set up and run. With this, Rwanda

A satellite photo of North and South Korea at night. | Source: National Geophysical Data Center/Why Nations Fail

April 2017 |

Cultural-Intellectual Reinvigoration Reflections on the Asian Century PROFESSOR MICHAEL S.H. HENG

sia has been experiencing an economic revival since the 1960s,

While Asian cities show physical evidence of economic moderni-

beginning in Japan, followed by the Little Dragons, the Asian

sation, many societal ills still exist. There are dysfunctional cultures

Tigers and now, China and India. With Asian economies doing relatively

exhibited by the political elites. State infrastructure projects are

well against the background of global recession, many Asians hope

awarded to friends and relatives rather than to the most competent

that the 21st Century will be the Asian Century. But what kind of Asian

firms. In societies with modern economic, political and legal institu-

Century do they mean?

tions, many of these institutions lack independence and integrity.

It could be a period of impressive economic growth but accompanied

Even in a modern economy and efficient society, we need something

with environmental degradation, violent crimes, rampant corruption,

more. Japan is the most modern Asian country. Yet its modernisation

wide social disparities and acute social conflicts. Or it could be a period

is confined to the fields of economics, technology, social and legal

that draws on the best of human achievements and advances them.

institutions and lifestyles. It has not undergone a cultural transition

Such achievements would contribute immensely to a new global

based on critical rationality and humanism. Some have used this

civilisation characterised by peace, social justice, cultural brilliance,

point to explain why the Japanese nation has not been able to come

technological advancement and sustainable economic development.

to terms with its atrocities during the Second World War.

Radical economic and social transformations are often accompanied

Three Major Challenges

by intellectual ferment and cultural effervescence. These transfor-

Asians face three major challenges at this juncture of their history. The

mations generate dislocations and new problems, that challenge

first is to draw on their own cultural and intellectual resources. With

existing cultural norms, ideas, political order and social institutions.

an open and inquisitive mind, old ideas take on new meanings and

These issues engage the best brains of the time. In their efforts to un-

interpretations in the context of new social problems. In re-working

derstand and solve burning societal issues, great thinkers tap their in-

old ideas from one’s culture, one is free and indeed encouraged to

tellectual heritage, learn from other sources, cross-fertilise them and

consult ideas from other cultures. This is especially so when a society

creatively synthesise them to produce schools of original thoughts.

is confronted with problems where there is no effective solution. In his study of the European Enlightenment, Ernst Cassirer, in his 1951

Harking back to earlier times, one could cite as examples Ancient

book, The Philosophy of Enlightenment, observes that “enlightenment

Greece, the Spring and Autumn Period and the warring States Period,

philosophy simply fell heir to the heritage of those [preceding] cen-

the Islamic Golden Age, and the Maurya and the Gupta periods of

turies. It ordered, sifted, developed and clarified this heritage rather

India. The most recent experience is the European Renaissance and

than contributed and gave currency to new and original ideas. Yet in

Enlightenment, which produced giants in the fields of philosophy,

spite of its dependence with respect to content, the Enlightenment

natural sciences, social sciences, fine arts, music, architecture and

produced a completely original form of philosophical thought.”

literature. These cultural-intellectual works have shaped the character of modern European civilisation and continue to influence our

The second challenge is to learn from countries of other continents.

thoughts and cultures.

To quote Indian philosopher S. Radhakrishnan from the first volume of the book Indian Philosophy: “Similar experiences engender in men’s

The Need for the Historical Project

minds similar views.” Since the West has a longer history of modern-

When Asian countries suffered humiliation and defeat in their en-

isation, Asia can benefit much from learning from Western ideas and

counter with Western imperial powers, Asian leaders slowly realised

institutions. Asians should be glad to read that the European Renais-

the crucial importance of reform and modernisation. Country after

sance and Enlightenment drank from the wells of Eastern achieve-

country began to borrow ideas from the West, not all of which were

ments as argued by Martin Bernal in Black Athena: The Afro-Asiatic

positive, as we see in the case of Japanese imperialist aggression.

Roots of Classical Civilization and John Hobson in The Eastern Origins

THink: The Head Foundation Digest

of Western Civilisation. Likewise, they should be glad to borrow and learn from the West, for it can only increase the range of possible

world and indeed to a richer modern civilisation. It will also impart a more profound and enduring meaning to the term Asian Century. ■

solutions. What is critical here is meticulous and rational learning, adapting them to suit local conditions and drawing upon local cultural resources to absorb them. Michael S. H. Heng is a retired professor who has held academic The third challenge for Asians is to know much more of each other’s

appointments in Australia, the Netherlands and at six universities

history, intellectual achievements and cultural traditions. Though

in Asia. He has published five books and has spent most of his

language may present a barrier, most Asian intellectuals use English

working life in teaching and research at universities. He has also

as the second language, which renders exchange of ideas possible.

worked as a software engineer at a transnational company, as a

What holds them back is their attitude. Asians tend to know more

research scientist at the Dutch research agency TNO, and as an

about Australasia, Europe and America than their Asian neighbours.

associate editor of a business weekly. His teaching and research interests are in business strategy, electronic business, supply

A Historical Opportunity

chain, globalisation, Asian modernisation and nation building.

Reinventing socio-cultural practices is quite common in societies undergoing structural changes. It is a part of the societal efforts to refine and refurbish the inner resources of their societies. It is hoped that Asians can inherit their intellectual heritage, learn from foreign sources, cross-fertilise them and, through creative synthesis, produce schools of original thought. The process touches societies in the most profound sense, involving ideas, values, morality, belief systems, culture and institutions. It requires us to revisit our concept of justice, truth and beauty. It is a project with both social and spiritual dimensions. It is a project with a soul of history. However, economic resurgence in itself does not guarantee corresponding intellectual ferment and cultural effervescence. There are formidable obstacles in the long journey. First, Asian intellectuals may not rise to the call. Second, there is lack of freedom and internalised self-censorship that originates from a culture of fear. Third, there is no critical mass of thinkers to stimulate each other – or, if there is, they can only do so much when subjected to censorship. Fourth, there are as yet no powerful social groups willing to adopt and champion new philosophies developed by their people. The rise of Asia may thus be conceived as an opportunity for an Asian cultural revival, which may or may not happen. Much depends on how Asians will make use of the opportunity. The project of an Asian cultural rejuvenation is an ambitious undertaking. It is likely to last for several generations. It has no walls and borders. Contributions from all corners of the world are warmly welcome. Though the stage is in Asia, the cast and audience are global. This opens up a new arena of international cooperation for all those who aspire to contribute to the long-term well-being of humanity. If and when Asian cultural and intellectual reinvigoration does happen in its full glory, it will lift Asian civilisation to a higher level. In so doing, it will contribute to the cultural resources of the

“ However, economic resurgence in itself does not guarantee a corresponding intellectual ferment and cultural effervescence. There are formidable obstacles in the long journey.”

April 2017 |

Featured Story

The Future of Jobs Humans Need to Apply MALMINDERJIT SINGH

e are on the cusp of the Fourth Industrial Revolution and that has given the naysayers

a free pass to paint a bleak picture of an already tightening labour market. â&#x20AC;&#x153;Robots will take over our jobs!â&#x20AC;? some of the more sensational headlines these days scream. Other reports argue that automation will make most of the jobs we know and do today, redundant. Let us examine the probability of this prophecy being realised and to what extent. The key drivers of a potential rapid displacement of jobs are automation, disruptive innovation, the skills gap and globalisation. Much of the intensity of job displacement in the future hinges on the variation of these factors and how they interact with one another. But there are other underlying factors within these domains too that may have a louder say, than some may imagine, in the fate of work of the future. Will Robots Take Over Our Jobs

shown otherwise. Even white-collar professions such as lawyers and

Automation has certainly been one of the main reasons why many

doctors now have part of their work automated and performed by

doubt the longevity of current jobs. The lure of increasing factor input

artificial intelligence and deep learning software systems. This shows

productivity by automating a job function fully, or part thereof, is one

that machines these days do not just do manual tasks but ones built

that employers may find attractive against the backdrop of rising

on cognitive skills too. Therefore, it is not a matter of automation re-

wages. It may be easier to think of more labour-intensive job func-

placing white or blue-collar jobs or manual ones, but how routine a

tions to fall prey to the jaws of automation, but recent trends have

task may be. The greater the replication of the task, the easier for the

THink: The Head Foundation Digest

machine to internalise, master and be productive in it and, eventually,

But the real question is if these predictions will hold true. The advent

carry it out more precisely.

of automation and its perceived threat to jobs is not new. As early as the Industrial Revolution, the threat of automation became the

So, if you are a radiologist, chances are that in the future you may have

scorn of textile workers who believed their livelihoods were at stake.

a machine taking over your job. But if you are a radiologist who also

Throughout the course of history, experts warned of the impending

takes on other tasks in the hospital, it is rather unlikely that a machine

threat of technology and automation on jobs – eminent economist

will be able to displace you since your work is not routine.

John Maynard Keynes coined the term “technological unemployment” in the 1930s; in the 1960’s US President John F Kennedy in a

According to a study done by Oxford University-based scholars Carl

speech at the United Chemical Workers Convention cautioned that

Benedikt Frey and Michael Osborne, future computering could put

the biggest domestic challenge was to maintain full employment

as many as 47 per cent of US jobs at risk. They reported in ‘The Future

and not allow automation to cause unemployment; a group of Nobel

of Employment: How susceptible are jobs to computerisation?’ that

prize winners in 1964 sent US President Lyndon Johnson a note to

the industries most vulnerable to automation are transport and lo-

warn him of the impending danger of an automation revolution,

gistics as well as office support, while even some service-level jobs

which they argued would alter the production process with less

may be at risk.

human capital input, dividing society into a skilled elite and unskilled underclass.

What does this mean for the future of the job market going forward? For one, there may be a decline in the demand for specialised mid-lev-

The reality is that, despite all of these bleak projections, technology

el jobs. The more specialised skills that are routine, like radiology for

has led to more job creation than unemployment. An explanation for

instance, can easily be replicated by machines and, hence, replaced.

this, as put forth by Massachusetts Institute of Technology economist

Learning a specialised skill or knowledge in the future may be less

David Autor, is that as automation is introduced to make certain tasks

appealing and necessary. Certainly, with the spread of artificial intelli-

more productive, there is an increased demand to employ workers to

gence and the information economy, the need to develop specialised

carry out tasks around it that have not been automated. According

knowledge may be less necessary than to learn its application and

to a study published in McKinsey Quarterly in 2015, computerisa-

management. The impact of this on the job market, and even the

tion in most cases does not lead to the replacement of workers but

higher education sector, is a possible swing towards more general

automates portions of the tasks they perform. A special report by

qualifications.

The Economist magazine on automation in June 2016 illustrated this point through the example of automated teller machines (ATMs). The

The exception to this rule is high-level specialised jobs, such as archi-

introduction of ATMs in the US saw the average number of human

tecture, where a reasonable degree of discretion is required therefore

tellers employed by banks fall from 20 percent per branch in 1988

making the job less routine. But this is where automation could have

to 13 percent in 2004. But this reduced the banks’ operational cost

a further impact; not just on the workforce, but also on society. As it

per branch allowing them to open more branches in response to

seems that the less routine a task the safer it is from being displaced,

customer demand. As a result, the number of urban bank branches

there are two distinct groups that should benefit from this conclusion:

increased by 43 percent over the same period, thus increasing the

high-level skilled jobs and low-level unskilled labour. This makes

number of jobs. So human tellers lost part of their previously routine

the mid-skills jobs the most vulnerable to be replaced by machines.

jobs to machines but then took on new roles like customer service,

This could lead to greater wage inequality in the future and make

which computers could not automate. Similarly, while driverless tech-

the income divisions in society more pronounced, which in itself

nology may put drivers out of jobs in the future, they will then have

leads to several accompanying social challenges. Younger mid-level

the opportunity to train and operate as safety drivers.

workers may have the option to upskill and move up the value chain if opportunities exist. Older workers though, may be less able and

There is thus enough evidence to show that while automation may

willing to do so and hence, may either be out of work or force to take

change the way we work in the future, it is not going to eradicate

low-skilled jobs. Either way, underemployment and unemployment

jobs. What it will do is replace the more routine tasks that we do,

may be more pronounced due to this phenomenon.

allowing us to take on more complex functions that cannot be auto-

April 2017 |

mated. This will require us to learn new skills so that we can take on

future jobs and skills originate from and are determined, gaps still

these new roles.

exist. For instance, in the United States, the number of skilled workers needed is growing and there will be a projected shortage of 3.5

Are We Skilled Enough?

million workers by 2025.

As we have seen, the ability to traverse the future economy will depend on how skilled we are to do so. Whether automation manifests itself as

The challenge of having a skills gap globally is that firms may not be

job creator or job robber will be determined by our capabilities and if

able to find enough workers to fill high-level jobs that they create.

we can take advantage of the opportunities it presents us.

Thus, while automation may replace routine jobs, businesses may not be able to use the cost savings to create more jobs higher up the value

One of the greatest challenges in equipping ourselves with such skills

chain because they simply do not have an adequate pool of talent to

and capabilities is even identifying them in the first instance. Since

rely on. This could lead to two possible outcomes – one, companies

many of the jobs of the future do not even exist as yet, it is rather

have less incentive to automate as they do not think they will success-

difficult to be exact about what skill sets these may require without

fully be able to move up the value chain without the necessary talent

being presumptive. The term ‘21st century skills’ is a buzzword these

pool or second, companies automate and successfully replace routine

days, but again, besides a few common core skills that everyone talks

jobs but then, due to a shortage of talent, are not able to scale up and

about like coding and data analysis, any indication of which skills will

create new and skilled employment. Which way the situation swings

be prerequisite in the future are just speculative.

depends on a number of factors including the level of business costs, type of industries, factor productivity rates, the visibility of skills gaps

Another argument is that core skills remain constant regardless of

and the mobility of labour across industries and geographies.

whether it was the 21st century or decades before. Realistically, basic skills such as numeracy and literacy are essential tomorrow as they

Uberisation of Jobs

have been in the past and today. It is difficult to imagine someone

The disruptive innovation of business models and industries is a

taking on programming before attaining a considerable level of com-

factor that is rapidly influencing the nature of future work. Today,

petency in mathematics. But herein lies the problem. Travel to many

the term Uberisation, named after ride sharing company Uber, has

parts of the developing world and you will find that the education

actually become an adjective to describe a workforce trend that sees

systems there are woeful in even providing numeracy and literacy

the conversion of existing jobs and services into discrete tasks that

abilities that are competent globally. If they cannot even meet the

can be requested on-demand. The development of this ‘gig economy’

needs of today’s basic skills, how will they be able to keep up with

has quickly transcended the workforce as start-ups across industries

future more complex developments?

and countries transform spare capacity into productive resources. Besides the transport industry, Airbnb has made anyone with a

Such scenarios create skills gap in the developing world. As a result,

vacant home into a landlord. In this region, online grocery shopping

we may see a reversing of the trend of previous years where jobs

company honestbee has turned those not in the workforce into

moved from the developed world to cheaper destinations on cost

productive shoppers. Same with local logistics company Ninja Van,

competitiveness. As jobs become more specialised in the future

which taps on the lunch hours to allow workers of any companies to

and so demand commensurate skills, we may see them returning to

double up as delivery personnel.

more advanced countries where education systems have been able to prepare a skilled and competent workforce. For the workforce in

The gig economy does have its pros and cons. On one hand, it creates

the developing countries, a lack of skills may cost it dearly in hanging

a useful alternative for those of out of job and not actively looking

on to jobs. Since automation may replace many of the routine tasks,

for work. The disruptive economy could thus be a salvation for those

these economies are likely to struggle to find niche industries to

who lose jobs to automation in the future and need an urgent stream

be competitive in unless they can make substantial leaps in their

to sustain their livelihood. However, the attraction of flexible work

skills agenda.

arrangements could also lure many from the mainstream workforce to the gig economy. For one, this could hollow the workforce and

But even in developed countries, the ability of governments and

worsen the skills gap. A low-skilled worker, for instance, who was

systems to recognise future trends and anticipate their implications

displaced by automation may find it easier to do gig jobs delivering

varies. Singapore is one example of a country that has taken a pro-

parcels, driving for Uber or doing concierge services rather than

active approach to bridging the skills gap through initiatives such

upskilling and moving up the value-chain. This is a net loss to society

as SkillsFuture. But even in countries where many of the trends of

as stagnates skills development and worsens the ability and incen-

THink: The Head Foundation Digest

tives of firms to create new higher skilled jobs. In addition, the gig economy also does not provide social insurance or a social safety net for employees through medical coverage, pension payments and retirement savings plans, increasing the fiscal burden on the state for this segment of society in the future. Barriers to Jobs Disruptive companies thrive on scale though as they strive to be the large multinationals of the future. And that is where globalisation comes into play as a factor. This essay has already discussed how the mobility of labour could help determine the impact of the skills gap on the willingness of companies to automate. But there is more that globalisation, or the lack of it, could impact the future of jobs. The events of the last year have shown that the trend of global liberalisation of the last four to five decades is now reversing. The increase in protectionism or the inclination to look inwards is adversely impacting the global trade and economic regime. Dipping into economic theory, David Ricardo’s theory of comparative advantage and specialisation, which underpins the modern convention of free trade that we had been used to, is based on a core principle – that free trade will allow countries to specialise in the production of goods and services that they have a comparative advantage in producing. Should the movement of goods and services become less free, will countries still find it as attractive to specialise? In such a scenario, will automation and technology adoption continue at a high pace? As such, the decrease in globalisation could slow down the loss of jobs to automation.

“ As we have seen, the ability to traverse the future economy will depend on how skilled we are to do so. Whether automation manifests itself as job creator or job robber will be determined by our capabilities and if we can take advantage of the opportunities it presents us. ”

Humans Need Apply The jobs of the future could not be under as much threat as some may fear. It seems likely that automation will replace routine jobs, particularly at the lower and middle-skilled levels. But there is also an opportunity for automation to lead to more job creation higher up the value chain, which requires society to upskill. But if current trends of disruptive economies and anti-globalisation pick up steam, automation may be less attractive to companies and jobs in the future may not be displaced by machines as rapidly. Humans still have a substantial role to play in the future workforce and any concerns otherwise may be exaggerated and misplaced. ■

Malminderjit Singh is Editor of THink: The HEAD Foundation Digest. He is an Editorial, Communications and Government Affairs consultant to a number of private sector and non-profit organisations. He is also a speech writer and adjunct academic.

April 2017 |

Shaping Social Outcomes

Expanding the Role of Higher Education in Society PEARL PHAOVISAID

| Do the students of today’s higher education have what it takes to lead society?

few months ago, I gave a lecture on globalisation to a 500-

than the risk of not having one. As the debate on the relevance of

student classroom of predominantly Thai students from various

higher education wages on in other parts of the world, it seems that

international programmes within Thammasat University. As I prepared

the university’s standing in Thailand is safe from disruptive forces for

for the lecture, I reflected on how globalisation had shaped my own

the foreseeable future.

experiences, how it has intensified in the lifetime of the millennial generation, and how the existence of that class was a manifestation

Currently, many universities in Thailand house both Thai and inter-

of globalisation itself.

national programmes. While the surface-level difference - the former is taught in Thai and the latter taught in English - seems simplistic,

Thammasat University was founded in 1934 in response to an unmet

the existence of these two programs is significant for its implications

demand for higher education. The institution traces its roots as an

on equity, human capital development and Thailand’s future. At

open university and has, over the decades, established itself as one of

the turn of the century, the forces of globalisation precipitated the

the top universities in Thailand - if not in QS (Quacquarelli Symonds)

rise of Thailand’s international programmes, which filled a need in

rankings, then in the hearts of many high school students. As with

the workforce for graduates who could communicate and operate

elsewhere in the world, great importance is placed on the university

in a global context. They also provided a viable option for students

degree, as it presumably unlocks a brighter future and provides a

who had previously studied outside the Thai system, in international

professional network for its graduates. Because Thammasat is no

schools or overseas.

longer an open university, students must now compete for a few coveted spots. Whether the university degree is meeting individual

Because proficiency in English and international norms of work

and societal needs is less important for many students and families

meant access to a wider array of potential jobs, these internation-

THink: The Head Foundation Digest

al programmes gained traction. However, due to higher tuition

If Thammasat was created to provide education for the masses, what

expenses and English proficiency requirements, entrance into these

is the significance of the masses walking out of classes? Dr Bano-

programmes was typically limited to more affluent families. Given the

myong’s vision brings to light questions about relevance and change

relatively lower number of potential applicants, most international

– change within people, within organisations and within nations.

programmes have a less competitive admissions rate than that of

Sometimes change occurs through deliberate action and some-

Thai programmes. Thus, the student body within many international

times circumstances force change, particularly when the old way no

programmes is more socioeconomically homogeneous, but more

longer works. Perhaps the university is no longer a figurative oasis or

diverse in terms of academic capacity and outlook.

perhaps students no longer thirst for the type of knowledge that the university offers.

Given the diversity and size of the classroom for which I prepared to teach, I thought it prudent to lay out simple rules at the beginning

More ominous than the image of a dried-out oasis is one of a poisoned

of class to optimise the learning experience. I asked students to put

well. A senior university administrator once made a provocative state-

their mobile phones away, to limit side conversations, to be engaged,

ment that universities have caused many of the world’s problems.

and that if they could not abide by these rules, to leave the class and

Linking global issues to the people and knowledge that originated

spend their time as they saw fit. The result? The session began with

from universities, he argued that consumerism would not be per-

400 students; approximately half remained during the last hour.

vasive without marketing acumen and plastic waste would not be rampant if not for manufacturing expertise. The conclusion was clear:

Some readers may assume that the mass exodus resulted from

the university has a solemn responsibility in solving or mitigating the

an excessively long monologue, which certainly was not the case;

intractable problems it has brought to life. Yet, it cannot do so unless

the 3-hour session consisted of interactive lecture, active learning,

it moves away from a business-as-usual mentality.

simulations, as well as a 10-minute break every hour. After class, my teaching assistants and I reflected on observations and lessons

Within the programme I teach, we encourage students to become

learned. While the mass exodus seemed like a major setback at the

changemakers. Yet, institutions of higher education may be in the

time, in retrospect, it was symptomatic of a more significant problem.

best position to bring about massive and systemic change through

My take-away was the realisation that many students, just a few

small, well-designed interventions. As a start, institutions of higher

months into their university experience shared neither the same goal

education, particularly those in Asia, could create substantial social

that I had for them nor the same vision for what their university expe-

impact by redesigning how they admit students, how they support a

rience should be. At the core, our mission, roles, and responsibilities

more diverse student body, and how they develop engaged citizens

were fundamentally unaligned.

through transformative learning.

While I believe that all students have potential and that brilliance

The university’s role, among other mandates, is to link young adults

comes in many forms, I also concluded that not all students belong

to the working world, to instil cognitive and social skills so that ado-

in a university, not because they are not academically capable, but

lescents can transition into the next phase of life. Yet, many students

because the university was created for a specific purpose. Oftentimes,

I have observed possess a narrow view of learning that is fixated on

this purpose is mismatched with the student’s true aspiration, par-

exams and grades. Changing this paradigm requires a more com-

ticularly if the student views higher education as a rite of passage to

prehensive admissions process that avoids promulgating a nation of

endure. This mentality stands in stark contrast to the hopeful vision

good and bad test takers who have lost sight of the joy and utility of

of Thammasat University’s founder, Dr Pridi Banomyong:

learning. Undeniably, admission into institutions of higher education drives a significant portion of the high school experience. The univer-

“A university is, figuratively, an oasis that quenches the thirst of those who

sity can set a new tone. Admissions assessment should move away

are in pursuit of knowledge. The opportunity to acquire higher education

from high stakes testing into a more holistic approach that considers

rightly belongs to every citizen under the principle of freedom of educa-

the students’ multiple intelligences. In this way, the university would

tion. Now that our country is governed by a democratic constitution,

induce a more well-rounded high school experience centred on in-

it is particularly essential to establish a university which will allow the

tellectual curiosity, experimentation, and service. Programmes within

people, and hence the public, to develop to their utmost capability. It will

universities should also move away from a singular focus on student

open up an opportunity for ordinary citizens to conveniently and freely

quantity, which prioritises revenue, in favour of student quality and

acquire higher education for their own benefits and for development

academic fit, which prioritises a vibrant learning environment.

of our country.”

April 2017 |

do not end with admissions, but extend to the student’s multi-year enrolment within the university. Lastly, a 500-student lecture hall, while not ideal, can work if students are aligned in their goals and motivation. Likewise, a skilled teacher and personalised learning experience can inspire a disengaged student. The only positive outcome of a 500-student lecture hall with disengaged students is healthy profit for the university. The teacher and learner’s time, on this scale, is too precious to waste. We must rethink how we teach in general and how we teach certain subjects

“ While I believe that all students have potential and that brilliance comes in many forms, I also concluded that not all students belong in a university, not because they are not academically capable, but because the university was created for a specific purpose.”

– such as civics, ethics, history, and leadership - in particular, so that graduates will leave with the knowledge, skills, and attitudes to lead the country in a more complex and globalised world. Ultimately, I believe that every student wants to be challenged and engaged, whether in the classroom, outside the classroom, through a book or via their social media feed. I remain optimistic about the fate of our young people and the commitment of educators. What I am not as certain about is how our institutions of higher education, ever resistant to change, will fare and whether they will fulfil their mandate to society. The opportunity and obligation to meet emerging societal needs represent a turning point for an institution built upon the ideals of liberty and justice. Undoubtedly, some leaders within this sector are thinking about change, sustainability, and equity in a rigorous way, but these types of conversations are often absent from both day-to-day conversations and strategic planning at many Thai universities. Nearly 83 years ago, Thammasat emerged as an institution to serve an unmet need; it is time, once again, for the institution to rise to the challenge of the 21st Century. Much more work is needed to harness the inspiration and perspiration necessary to bring about the type of personal

Moreover, many universities have some form of scholarship and

and national development for which the university was founded. ■

financial aid programme in place, but these programmes must be better designed and more vigorously implemented. The possibility for social mobility through access to education is well-documented. The best and brightest students exist at every income bracket; if

Pearl Phaovisaid is Program Director at the Global Studies and

given the opportunity, traditionally underrepresented students can

Social Entrepreneurship (GSSE) at the School of Global Studies

be a force for sustainable community development. Hence, this in-

(SGS), Thammasat University. Prior to joining SGS, Pearl served

tervention is not just altruistic, but pragmatic, too. Relatedly, finding

in the US Army; her military service spanned three continents

underserved students who have the potential to thrive in a rigorous

and culminated at the US Army Aviation Center of Excellence

academic environment requires strong recruitment effort. Without a

where she instructed junior aviation officers in the Basic Officer

commitment to equity and closing the achievement gap, the labour

Leaders Course. After active duty military service, Pearl moved

and capital required to administer a scholarship and financial aid

to Thailand to pursue her passion for teaching, coaching, and

programme is not compelling when compared to the relative ease

mentoring. Her areas of interest include education, technology,

of admitting a self-funded student. Essentially, financial aid efforts

leadership, and social justice.

THink: The Head Foundation Digest

Accountability of Higher Education in Indonesia PROFESSOR SATRYO SOEMANTRI BRODJONEGORO

The Essence of Higher Education

espite the fast growth of Gross Enrolment Rate (GER) in higher education in Indonesia, there is a concern that higher

education will not be able to contribute to national development as expected. Higher education is supposed to be the driver of the nation’s competitiveness through the roles of the graduates and institutions. Otherwise, it will create social problems nationwide where

where the money goes, knowing that the achievement indicators

the graduates or higher education leavers will either be unemployed

are often intangible and also time consuming, thus people may

or be involved in non-productive sectors or be utilised by international

forget about the investment. If the investment is short-term and

agencies/institutions. Higher education institutions (HEIs) will not

tangible, accountability would be easier and the stakeholders

contribute significantly to national development if they are only

could easily do the monitoring.

producing graduates with very little research and development (R&D) experience.

Higher education cannot be a short-term investment, since it deals with the development of human capacity and capabili-

The public spending for higher education has been significant both

ty, and therefore any output may be achieved at least after five

directly and indirectly. The government allocates a sizable budget

years while the outcome or the impact to the society can only be

to public HEIs while private HEIs rely very much on student tuition

seen after at least 10 years. Output is rather easy to measure, but

and some philanthropists. The government provides around 30 – 40

outcome or impact is difficult to measure or identify.

trillion rupiahs annually for the higher education sub-sector. There are now more than five million students enrolled in HEIs, and there are

Higher education investment deals with a huge budget (both gov-

around 4000 HEIs operating in various disciplines and regions all over

ernment and private), and most likely the source of this budget

Indonesia. Have those figures contributed to national development

comes from taxpayers (as an indirect financing scheme) and from

and to the nation’s competitiveness?

those who pay tuition fees (as a direct financing scheme). Taxpayers and fee-paying students (both are stakeholders) demand

HEIs Accountability

an accountable measure showing that their money is properly

Higher education is considered a human investment, which is a

invested, that the investment will benefit the most of the future

long-term and sometimes intangible investment. The investment

generations and that the investment will provide prosperity

usually involves a large budget and therefore people are concerned

for the nation.

April 2017 |

Stakeholders

Expected output

Expected outcome

Students

Quality education

Hard skill, soft skill, life skill

Parents

HE graduates (children)

Established life (children)

HEIs

Quality graduates, quality research

International reputation, world class ranking

Government

Enrolment increases, number of graduates

People’s prosperity as mandated

increase, research & publication

by the constitution

Talented employees from HEIs

Expansion and more profit,

for production and

more competitiveness

More educated people

Civil society

Industry/productive sector

People/society

| Table 1: Indicators for successful human investment (from the point of view of stakeholders).

Measurement of HEIs Accountability •

Effectiveness of HEIs in fulfilling their vision

•

Effective use of funding in achieving HEIs mission

•

Correlation between funding and output

•

Correlation between output and outcome

•

Public responsibility of HEIs

Public Responsibility of HEIs •

Effective use of funding for quality education

•

No discrimination

•

Fairness, equal access, proportional tuition fees

Current Understanding Regarding HEIs accountability: •

Compliance to the law/government regulation/ministerial decree/circular in both financial and academic aspects

•

Accountability to the government - Ministry of Education & Culture (for public HEIs)

•

Accountability to the foundation (for private HEIs)

•

Degree/level of accountability (compliance – short term; outcome – long term)

THink: The Head Foundation Digest

•

Direct and in-direct accountability

•

Regulation driven accountability vs accountability driven regulation

•

Need for consensus regarding the understanding of accountability

“ Membership of the Board of Trustees is the key factor to obtaining public accountability: therefore it is necessary that members represent stakeholders in the widest sense.” The consensus regarding the definition of accountability has to

Necessary Affirmative Actions to Achieve Public Accountability:

be agreed on by the stakeholders, including government, public/

•

Policy change in higher education;

community and HEI faculty members and students. Each of these

•

Legal aspects for public accountability;

stakeholders has the willingness to sacrifice part of their interests

•

Funding mechanisms

to achieve the ultimate national goal –an Indonesian higher education system with high quality for the nation’s prosperity. To reach the consensus, it is necessary for each stakeholder to change

Mechanisms to Secure Public Accountability:

their mindset from self-interest (inward-looking) to public-interest

•

Membership and governance of the Board of Trustees;

(outward-looking).

•

Independent validation of HEIs output and outcome;

•

Auditing mechanism to secure the use of public funding

To achieve accountability, the HEIs should be provided with

to achieve output

adequate autonomy so that they can fulfill the government objectives through a proper funding mechanism where the gov-

The existence of the Board of Trustees is the main mechanism to

ernment provides budget to HEIs based on the agreed perfor-

obtain public accountability in the wider sense. With this mechanism,

mance indicators.

community or public could give opinion regarding higher education strategic development and on the other hand HEIs could provide feedback to the public/community.

Performance Indicators for HEIs: •

Contributions to regional economic

Membership of the Board of Trustees is the key factor to obtaining

development and empowerment;

public accountability; therefore it is necessary that members represent

•

Responsive to the need of the world of work;

stakeholders in the wider sense. HEIs are responsible and accountable

•

Broadened student perspectives through

to public, therefore the membership of the Board of Trustees should

interdisciplinary approach;

fully represent the public. The membership should not be dominated

Promotion of excellent study programs and

by internal stakeholders, it should be dominated by external

•

maintenance of ‘specific/unique’ study programs; •

Quality improvement and excellence;

•

Access for economically disadvantage students;

•

Improved effectiveness and efficiency in conducting

stakeholders so that public accountability could be secured. ■

education, research, and community development Satryo Soemantri Brodjonegoro is the vice president of the Requirement for Accountability:

Indonesian Academy of Sciences. He was the Director-General for

•

HEIs have the capacity to operate autonomously in

Higher Education at Indonesia’s Ministry of National Education

terms of curriculum, financial, and personnel;

between 1999 and 2007. He is a Professor in mechanical

Legal framework to maintain the consistency

engineering at Institut Teknologi Bandung (Bandung Institute

of all related units and stakeholders

of Technology), Indonesia.

•

April 2017 |

The International University College A Dutch Lesson

PROFESSOR HANS P.M. ADRIAANSENS

THink: The Head Foundation Digest

’d like to give you an account of a recent development within Dutch

students are asked to build their own individual study path, observ-

Higher Education, a development that started in the late 1990s. It is

ing, of course, a set of choice rules that guarantee both breadth and

the type of innovation that is drastically resetting the quality standards

depth. The term ‘artes liberales’ has always included the sciences as

for teaching and learning in universities. I am talking about the so-

well, but to avoid the often heard, mainly European, misunderstand-

called “university colleges”, international and academic undergraduate

ing that links the term exclusively to the humanities, we usually speak

institutions that thoroughly prepare motivated students for the better

about “liberal arts and sciences,” a combination that is - admitted-

professional graduate programmes in the world. University colleges

ly - a pleonasm.

constitute, in fact, a double innovation: not only do they represent a major innovation in the structure of Dutch higher education, they also

Liberal arts education is a truly academic, not vocational, type of

educate their students to become creative and innovative citizens for the 21st Century.

education. In that sense, it is different from contemporary European and Asian models of higher education in which students are often, right from the start, led into professional studies. Next to its academic

A university college is a mix of three important elements of under-

orientation, which is in itself of great value, the liberal arts model has

graduate education: programme, scale and pedagogy. Together,

two additional advantages: on the one hand it provides students

these three elements form the backbone of the European heritage in

with the academic and multidisciplinary base for a top-notch profes-

education, though we sometimes seem to forget about them.

sional programme in the graduate school (e.g. law school, medical school, government school, business school, engineering school,

As far as the programme is concerned, the main reference is to the

as well as the graduate school of liberal arts and sciences); and, at

original, Aristotelian liberal arts and sciences format that still forms

the same time, it frees students from having to make a premature

the undergraduate programme of the better American universi-

and ill-considered choice at the young age of 17 or 18. Thanks to the

ties and colleges.

liberal arts setting, students may enter college or university without being too specific or too sure about the direction in which they would

With respect to scale and size, a university college looks like the

like to major. The liberal arts curriculum gives them the opportunity

40 colleges of Oxford University and the 30 colleges of Cambridge

to gradually zoom in on the major or concentration for which they

University. The name “university college” was taken after University

have an affinity.

College, the first college founded in 1249 at Oxford University. Size or scale forms the second cornerstone of university colleges. And as far as pedagogy is concerned, university colleges refer to the

From the Oxbridge colleges we borrowed a truly collegiate system

Humboldtian Bildung tradition in which two elements stand out:

in which university colleges should not be bigger than 600 or so

the connection of teaching and research and the importance of a

students. That size makes it possible for students to get to know each

student’s free choice.

other very rapidly and to learn from the variety of their peers’ perspectives. The educational power of having students with a variety of

Each element has its own main problems that had to be solved in

interests (and majors) and also with a variety of cultural backgrounds

order for Dutch university colleges to be accepted by the established

(most colleges have students from 50- 60 different nationalities) is

universities as an interesting and valuable form of undergraduate ed-

impressive. Among the students of such a small college, positive

ucation. This innovation has generated a spin-off in the Netherlands

feelings of pride, belonging and responsibility can easily be estab-

as well as abroad.

lished. Feelings of pride, belonging and responsibility won’t come into being unless students and faculty can look each other in the eye.

Liberal arts education is a system of undergraduate higher education that nurtures the students’ ambition to learn and to become a respon-

We arranged for classes to have a maximum of 25 students. The

sible and knowledgeable citizen. In that sense, it has a cognitive as

intensity of the interaction in these small classrooms is much more

well as a moral ambition. It is a system that teaches students how to

productive than in mass lectures; students are asked to write papers

acquire new and valid knowledge, to help them think critically, to

on which feedback is given and which are discussed in class; they are

make them adequately report and communicate about their results

asked to give presentations, to defend their findings and opinions

in speaking and writing, and also to prepare them to become respon-

publicly. Everything is done to engage in more proactive forms of

sible and independently thinking citizens. It does so by offering a

teaching and learning. All these activities count in a system of con-

broad academic curriculum that covers all basic academic disciplines

tinuous assessment, so that students know exactly where they stand

(the so-called artes liberales). From all the courses that are on offer,

as they proceed.

April 2017 |

The pedagogy is the third essential element of our university college concept. Some important aspects of its pedagogy were already included in what was mentioned about the programme and the size of the college. For example, in a liberal arts setting, students are made responsible for their own programme, their own study path (albeit within a set of constraints), which has the positive effect of making clear that they are treated as professionals themselves. And limiting class size to a maximum of 25 certainly helps to make the teaching and learning process more interactive than in a traditional lecture setting. Students explicitly learn from one another, not only because they come from different cultural backgrounds and have different mindsets, but also because they may have different majors or different concentrations within their majors. Another crucial pedagogical element is the focus on academic skills, such as how to think critically, how to properly collect data, how to properly come to conclusions, how to organise objections and how to present conclusions in writing or speaking. But there is one single element in the pedagogy of this “Dutch Mix” that deserves special mention: the undergraduate research focus. It is, in fact, a contemporary interpretation of Humboldt’s emphasis on the connection of teaching and research. In most universities, this teaching-research connection has gotten a very specific meaning, signalling that unless teachers are engaged in research projects, they won’t be any good in teaching either.

“ After the first college was founded in 1998, almost all universities in the country have built such a university college, mostly as a kind of honour’s college for students whose academic ambition and potential are above average.”

And, of course, that may be true, but the immediate consequence has often been that university teachers have shifted their focus from teaching to research, which is, in fact, a form of goal displacement similar to the shift bankers have made from clients to bonuses. In our university colleges, the mantra of teaching and research was given a different twist, more in line with what Humboldt must have had in mind: students and teachers engage in so-called undergraduate research projects. These projects may have a more regional and/ or practical focus, or they may be elements in a research line of a particular teacher or department, if not, as is often the case, very original, student-driven additions to such a research line. Undergraduate research may help the student to acquire new knowledge and understand how research is properly done, but at the same time it serves the teacher in his or her own research and publication interest. Despite the positive impacts, introducing the Dutch Mix into higher education has involved many hurdles, and much resistance. The liberal arts setting was confronted with the almost paradigmatic character of the studierichting, the fixed programme; it was often accused of providing students with an “anything goes”-programme,

THink: The Head Foundation Digest

which, particularly in times of economic crisis, was not expected to

have built such a university college, mostly as a kind of honour’s

help students to get a decent job. Moreover, some faculty seemed to

college for students whose academic ambition and potential are

be afraid of having to compete in a market setting in which students

above average.

may pick courses and teachers for whom they have affinity. On top of that, spending so much time teaching would drastically lower the

The Dutch government decided in 2008 to grant a substantial amount

faculty member’s research output. Skepticism reigned as the Dutch

of money to be used for the improvement of university education

Mix had only promises and not much evidence in the first couple of

across the board. Although the intensity of the programme and the

years. But after four or five years, even the most skeptical faculty had

demands asked from students and teachers were far beyond familiar

to admit that graduates from university colleges were among the

standards, graduation rates in these colleges skyrocketed up to 90-95

very best candidates not only for master and Ph.D.-programmes all

percent, and dropout rates fell to a bare minimum of 5 percent.

over the world, but also for employers who needed academics who could think, write and present. Moreover, the enthusiasm of faculty

The vast majority of graduates of these university colleges are seen

members who taught at university colleges spread rapidly over the

as excellent candidates for the better master and Ph.D. programmes

university as a whole, making it a privilege to be invited to teach there.

throughout the academic world and they consequently spread over the continents. Of the Dutch students in these colleges, over 50

The college setting, i.e. the small size, also met with objections, par-

percent go abroad and of the international students more than 50

ticularly related to costs. Of course, everyone would agree that small

percent stay in the Netherlands for their master programmes. There

classes improve the quality of teaching and learning, but in line with

has also been quite some interest from abroad. Universities from

traditional industrial logic, the lack of standardised teaching must

China have visited various of Dutch colleges, and there are efforts to

raise costs, the skeptics thought. Being stuck in the paradigm of

establish a university college in Chongqing and one in Shanxi. The

fixed programmes or studierichtingen, they never realised that having

University of Freiburg in Germany also has a university college. At

separate bachelor programmes may be more costly. And outside of

its opening, the university rector pondered transforming the entire

the realm of costs and cost-efficiency: in a college setting with small

institution into a collegiate institution.

classes, teachers can no longer hide behind prefabricated lectures or chapters of books that could have been read by the students them-

The concept of university college is now rapidly taking root, and it

selves. They really need to be in full charge of the material, so that

does so for a very specific reason: the need for more creativity, out-

they may invite students to find out for themselves. In other words:

of-the-box-thinking and entrepreneurship among generation 2.0.

teachers have to become teachers again. To conclude: iIt is my firm belief that unless universities go ‘collegiate’, Finally, of course, there was the complaint that the intensity of the

they will have trouble surviving. ■

teaching process would minimise the teacher’s chance to engage in serious research. It is true that full time teachers at university colleges spend 1200 hours per academic year teaching and learning, and that work load does not leave much room for one’s own research (outside,

Hans P.M. Adriaansens is Emeritus Professor of Social Sciences

of course, the undergraduate research projects), but it is also true that,

at Utrecht University, Netherlands, and Dean Emeritus at

even in these circumstances, there are still four full months available

Roosevelt Academy in Middelburg, an international honours

for one’s own research projects, and that, if needed, a reduction of

college of Utrecht University. He was chairman of the Dutch

teaching obligations can be “bought” by acquiring grants, since part

Sociological and Anthropological Association, member of the

of the grant money can then be spent on qualified replacements. This

Scientific Council for Government Policy, and chairman of the

suggests that teaching at a university college requires a special kind

Council for Social Development. He founded University College

of teacher: teachers whose pride lies in the career of their students.

Utrecht and Roosevelt Academy Middelburg, and is a co-founder of European Colleges of Liberal Arts and Sciences. He publishes

Notwithstanding these hurdles, objections and apprehensions, intro-

on sociological theory, the development of welfare states and the

ducing the university college concept into the Dutch system of higher

organisation of higher education.

education has had a variety of positive consequences. After the first college was founded in 1998, almost all universities in the country

April 2017 |

Leadership Spotlight

“ Entrepreneurs generally have odds stacked against them, but if you have the right set of people and the correct business fundamentals and a single-minded focus, you can be sure of success.”

Mr Haresh Aswani, Managing Director of the Tolaram Group’s Nigeria business, talks about the Group’s pioneering decision to enter Africa when few did and to create a lifestyle change in the continent.

THink: The Head Foundation Digest

Your journey of bringing Indomie to Nigeria and making it a staple

With global economic growth and poverty alleviation over the last

food there is nothing short of extraordinary. As a business leader,

few decades, do you believe that businesses are now more inclined

how were you certain that this was an idea worth pursuing despite

towards focusing on the growing middle-income market at the

all the odds stacked against it?

expense of the bottom of the pyramid segment?

It all boils down to trusting your gut. We came to Nigeria and realized

Well, not really. I believe multinationals in Nigeria are also focusing on

that there was a gap in the market. As increase in urbanization in

the BOP segment, looking at the amount of activity in Nigeria. The

Nigeria was inevitable, time was going to be scarce for the consumers.

multinational consumer companies have clear focus towards the BOP

And we figured there was no quick meal solution available at that

and have developed cost effective solutions for their problems. The

time; this was a big gap. We looked back to our childhood and instant

sizing – pricing strategy has been targeted at the BOP segment. Some

noodles came to our minds almost immediately. It was our favourite

of them have launched new products in Africa from its learnings from

food item. Entrepreneurs generally have odds stacked against them, but if you have the right set of people and the correct business fundamentals and a single-minded focus, you can be sure of success. We invested in people, and worked on grooming them. All of that investment is now showing results. The turning point for us was when we were able to take on Maggi noodles (Nestle product) in Nigeria and beat them to establish our brand. To top it, they even sold their machine to us and we used it in-house. That gave us the belief and determination that we could face any multinational and be the best if we believed in our people and products. Part of your decision to bring instant noodles to Nigeria was also to provide for the bottom of the pyramid (BOP). Do you see many business leaders these days still using corporate approaches to addressing such socio-economic problems? Yes, there are a lot of multinationals and local players who are trying to address socio-economic problems for the bottom of the pyramid. For any player to be able to succeed in this market, they have to invest heavily in research and development to innovate and to come up with solutions for problems in a cost effective manner. Nigeria has a huge percentage of population

other emerging markets like India and Brazil. Africa is largely considered as the last economic frontier, yet your company and you have been there for decades. Why do you think it has taken so long for businesses and investors to look at Africa in a big way? A lack of understanding of the market inhibits businesses to venture into the continent. Businesses assume Africa is a homogeneous market and all the consumers are alike. Companies cannot work with one Africa strategy. Every market has its own unique flavor and businesses need to adapt accordingly. Also political and economic instability and security concerns have kept businesses out. To take the Nigerian case in point, the Northern region is distinctly different from the South in the way the consumer behaves and companies have to adjust and respond to these differences through their product and strategies. There are few companies from Southeast Asia, and even fewer from Singapore, that have ventured out to Africa. Why do you think this is the case and what advice do you have for them? African countries hadn’t marketed themselves as green pastures. This was the reason for the lack of awareness of these markets in Southeast Asia and Singapore. But now this is changing and you see more

in the BOP, so if companies don’t invest in this they risk being irrele-

and more businesses considering Africa very seriously. My advice

vant. We have invested a lot in innovating and figuring out solutions

to them would be do your research before you enter the market. I

for the BOP. For example, Chinchin is a local snack which used to sell

would like to emphasise that one size doesn’t fit all: this means African

in open in the market. We now sell it under our Minimie brand in a

problems can’t have Asian solutions; they need African solutions. We

hygienic pack and have retained the same taste. Power oil and Hypo

have the ground knowledge having been there for decades. We are

bleach are sold in affordable single use sachets. Bleach consumption

happy to talk to people who are keen to navigate the terrain so that

has grown more than tenfold in a span of five years due to this inno-

they can reap the benefits of our local knowledge and experience.

vation. We are a major player in the FMCG space in West Africa due to

They should consider partnering with someone with local experience

this in-depth understanding of our consumers.

to skip the long learning curve.

April 2017 |

Launch of a new flavour of Indomie Instant Noodles in Nigeria, 2017 | Source: Dufil Prima Foods Plc

What are your views on Africa’s growth prospects and what time

ing toilets and hand pumps for clean water for free. Another ini-

horizons are we looking at before, in your opinion, much of the

tiative is our ‘Teach-for-Change’ program, where the employees of

region’s potential is actualized?

Tolaram Group have volunteered to teach in schools for 10 weeks

We are nowhere near realizing the region’s potential. Africa’s growth

giving 1 hour classes per week to impart their experiences to kids

prospects completely depend on its political and economic stability

in primary school to inspire them. This unique program allows us to

and infrastructure development. I have seen companies fold and leave

give back in a humble and loving way. Our business also ensure that

because of these challenges. You see prosperity in the countries that

we provide goods with a focus on nutrition, health and hygiene at

are more stable. Once this happens, you will see much faster growth

affordable prices.

and many more businesses trying to be a part of this growth story. What would be some of the priority problems that the Tolaram The Tolaram Group believes in balancing its profit-making activities

Foundation and you be interested in solving?

with also contributing back to society, through its Foundation.

More than 40 percent of the Nigerian population comprises of

How important is it today, where there are so many NGOs and

children below the age of 14. If we set them on the right path then

multilateral initiatives, for businesses to solve societal problems?

we can be sure that Nigeria’s future is in safe hands. Health and edu-

In spite of the presence of NGOs and other initiatives, Africa’s economic

cation for children is a priority for us.

discontent is self-perpetuating, resulting in various consequences such as low standard of living, low life expectancy, and low literacy

What is next for the Tolaram Group? As a family-run business, how

rates, among others. I feel it is the duty of businesses to give back

do you help establish continuity in exemplary business leadership

some portion of their profits through corporate social responsibility

in the organization?

(CSR) activities. In our case, we are doing our bit too. In fact in 2016, as

Tolaram is a family-owned, professionally-run business. All the group

a Group, we decided to give a large share – 25 percent - of our profits

companies are run by qualified and experienced professionals and

to the Tolaram Foundation, which is an initiative to enhance the lives

we have joint ventures with global giants like Kellogg, Arla and Salim

of people through education, information, inspiration and fulfilment.

Group, among others. So it is not a family-run business anymore.

In Nigeria, at our Ishk Limb Centre, we provide fully functional cus-

We have professionalised our Board and our key business verticals

tom-made artificial legs, polio calipers and cosmetic hands, free of

are currently being headed by very senior and experienced profes-

cost for people who need them to help live their lives completely.

sionals who have worked for more than 15 years in our Group. As a Group, our goal is to expand our existing portfolio of brands and

We are also running sanitation and health projects, where we provide better sanitary conditions in schools and communities by install-

THink: The Head Foundation Digest

products, form new partnerships in our chosen lines of business and enter new markets. ■

About The HEAD Foundation

The HEAD Foundation (THF) is a charitable organisation set up in 2013 in Singapore to contribute to the development of Asia. As a think tank, we focus on issues around:

Human Capital

Education

Leadership

Sustainability

The Foundation provides a collaborative and inclusive platform for a multidisciplinary approach to scholarship, policy reform and programme development. We partner with like-minded local and regional experts and institutions to advance our common goal. THF plans to help build communities of practice in order to root and sustain more effective education and leadership models. Our Work •

Research projects in Asian countries

•

Publication of book series, working papers, reports and policy documents

•

Events such as workshops, seminars, lectures and policy fora

•

Development and delivery of models and programmes for capacity building

Our Research The Foundation’s Faculty is supported by its young and dynamic in-house research team that focuses on core areas ranging from higher education to school improvement. The team is also involved in other knowledge-building activities, including literature reviews and contributing to our series of publications. Our People •

Senior Advisors and Fellows share their extensive experience and leadership. They are instrumental in helping the Foundation shape its research projects and programmes and in building new alliances.

•

The Management Team comprises specialists with experience across various sectors, including in education, multinational corporations, government and non-profit organisations.

Our Partners THF partners with regional and international institutions that bring along with them expert knowledge, resources and on-the-ground networks to help achieve our aims. We work with our partners to mutually enhance knowledge-building capacities and to strengthen the influence and impact of our activities to achieve meaningful outcomes.

April 2017 |