Tag: Economic

  • McDonald’s Faces National Boycott as Economic Justice Movement Builds Momentum

    McDonald’s Faces National Boycott as Economic Justice Movement Builds Momentum

    McDonald’s, the fast-food titan with global reach and billion-dollar profits, is the latest corporate target in an escalating campaign of economic resistance. Starting June 24, grassroots advocacy organization The People’s Union USA has called for a weeklong boycott of the chain, citing the need for “corporate accountability, real justice for the working class, and economic fairness.”

    Branded the Economic Blackout Tour, the campaign seeks to channel consumer power into political and structural change. According to The People’s Union USA, Americans are urged to avoid not only McDonald’s restaurants but also fast food in general during the June 24–30 protest window. Previous actions have focused on companies like Walmart, Amazon, and Target—corporate behemoths long criticized for their low wages, union-busting tactics, and monopolistic behavior.

    John Schwarz, founder of The People’s Union USA, has emerged as a vocal critic of corporate greed. In a recent video statement, Schwarz accused McDonald’s and its peers of dodging taxes and lobbying against wage increases. “Economic resistance is working,” he declared. “They’re feeling it. They’re talking about it.”

    The movement is tapping into deep and widespread frustration—fueled by stagnant wages, rising living costs, and mounting corporate profits. While many Americans struggle with student loan debt, inadequate healthcare, and job insecurity, companies like McDonald’s have been accused of shielding their profits offshore and benefiting from political influence in Washington.

    This is not the first time McDonald’s has come under fire. The company has faced criticism from labor rights groups for paying low wages, offering unpredictable schedules, and relying heavily on part-time or precarious employment. More recently, pro-Palestinian activists have also launched boycotts, citing alleged ties between McDonald’s franchises and Israeli military actions in Gaza.

    As part of the current boycott, The People’s Union USA is pushing for a broader shift in spending—away from multinational corporations and toward local businesses and cooperatives. In line with previous actions, the group is also encouraging Americans to cut back on streaming, online shopping, and all fast-food purchases during the boycott period.

    With Independence Day on the horizon, Schwarz and his allies are framing the protest as not just economic, but patriotic. “It’s time to demand fairness,” Schwarz said, “and to use our economic power as leverage to fight for real freedom—the kind that includes fair wages, democratic workplaces, and tax justice.”

    While McDonald’s has not released an official response to the boycott, a 2019 letter from company lobbyist Genna Gent suggested the chain would not actively oppose federal minimum wage increases. For Schwarz and his supporters, such declarations ring hollow without meaningful action.

    The July target for The People’s Union USA? Starbucks, Amazon, and Home Depot—three more corporate giants with long histories of labor disputes and political entanglements. The next wave of boycotts will extend throughout the entire month, further testing the staying power and impact of this new consumer-led resistance.

    At a time when higher education, particularly the for-profit and online sectors, often channels students into low-wage service jobs with crushing debt, these campaigns raise larger questions about the role of universities in perpetuating corporate power and economic inequality.

    The Higher Education Inquirer will continue to follow these developments, especially as they intersect with issues of labor, student debt, corporate influence, and the broader fight for economic justice in the United States.

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  • Universities should be architects of economic and social transformation

    Universities should be architects of economic and social transformation

    Britain’s universities stand at a critical juncture.

    The traditional funding model faces unprecedented pressure as costs spiral and resources dwindle, while successive government policy reversals on international students and graduate visas have created a destabilising environment.

    These converging forces threaten the very foundations of our higher education system.

    Simultaneously, Education Secretary Bridget Phillipson is challenging universities to deliver more with less – driving economic growth and enhancing student outcomes amidst severe financial constraints. The message is unambiguous – transformation is no longer optional.

    The uncomfortable reality is that with public funding constraints tightening and international income streams becoming increasingly unpredictable, universities can no longer sustain outdated operational models.

    To survive and thrive in this challenging landscape, institutions must fundamentally reimagine their approach – aligning their educational offerings with national priorities and market needs, adopting innovative commercial service models, and leveraging emerging technologies at scale.

    Pioneering a new paradigm

    Aston University’s recent report, Pathways to Success, provides a compelling blueprint for institutional evolution in response to these pressures. By transforming into a more agile, resilient, and globally connected institution, Aston has prioritised both student success and tangible socio-economic impact.

    This strategic pivot beyond traditional funding sources toward a partnership-driven approach has already generated over £1 billion for the regional and national economy, with ambitious plans to double this impact by 2030.

    Today’s most effective universities function as anchor institutions within vibrant innovation ecosystems. The Birmingham Innovation Precinct exemplifies this approach, seamlessly integrating innovative research, commercial ventures, and community development.

    Aston has expanded this concept with its “city within a city” model — a dynamic urban environment featuring public spaces, start-up accelerators, business incubators, community maker spaces, and comprehensive residential, health and recreational facilities.

    This integrated ecosystem drives placemaking and productivity through collaborative place-based innovation.

    Across Britain’s post-industrial cities, such innovation districts are becoming powerful engines of regional economic renewal. Aston’s focus on talent retention has resulted in approximately 70 per cent of graduates remaining in the West Midlands, providing essential high-level skills to local industries for the long run.

    This retention significantly enhances economic resilience, while the university’s three-year support scheme after graduation ensures sustained impact through graduate success.

    The university has constructed a comprehensive innovation ecosystem that accelerates research commercialisation, featuring the Aston Knowledge Transfer Partnership Unit, Aston Business Hub, Enterprise Hub, and Aston University Ventures, as well as a portfolio of partnered accelerators such as SPARK The Midlands Accelerator.

    Collaborative efforts with other institutions through the Midlands Innovation consortium and its investment arm Midlands Mindforge, alongside large-scale research commercialisation projects funded by Research England and Innovate UK, further amplify this impact.

    The results speak for themselves – KTP projects are projected to generate £266 million in pre-tax profit for partner companies and create 541 new jobs within three years, with participating companies achieving an average 1,107% return on investment.

    The quadruple helix: A new framework for innovation

    Forward-thinking institutions are increasingly adopting the “quadruple helix” model — an innovation framework that integrates academia, industry, government, and society.

    This approach has transformed our stakeholder engagement, focusing efforts on health technology, net zero initiatives, digital and engineering technologies, and biological sciences — areas aligned with national priorities and offering substantial employment opportunities.

    We demonstrate leadership in sustainability, on track to achieve net-zero carbon emissions by 2028, becoming the first university in the region to achieve this milestone, supported by a £35.5 million investment through the UK Public Sector Decarbonisation Scheme.

    We have also secured funding to establish the first national Transdisciplinary Research Hub and Doctoral Training Centre, enabling and supporting decarbonisation projects across vast networks of businesses and healthcare providers throughout the West Midlands.

    Those who fear that commercialisation threatens academic independence misinterpret this model. Robust governance frameworks protect intellectual integrity while facilitating meaningful partnerships that enhance rather than compromise research excellence through measurable impact.

    However, widespread adoption of this approach faces significant obstacles, particularly outdated performance metrics that continue to prioritise publication counts and academic citations over student outcomes and real-world impact.

    The forthcoming sector reforms must address these antiquated incentive structures if Britain is to maintain global economic competitiveness.

    Building a sustainable innovation pipeline

    The project-based funding model that dominates British research support creates chronic uncertainty, undermining long-term planning and investment.

    What we urgently need are strategic, decade-long commitments that provide the stability necessary for substantial infrastructure development and deep industry collaboration.

    The government’s forthcoming 10-year R&D budget must prioritise strengthening university-business collaboration. Only through such sustained investment can Britain cultivate the robust innovation pipeline essential for economic revitalisation.

    Universities must simultaneously align their educational offerings with evolving market needs for advanced skills.

    While the government’s focus on skill levels 1-5 is important, it remains insufficient. High-value sectors — artificial intelligence, advanced digital technologies, advanced manufacturing, and medical technology — require sophisticated capabilities that can only be effectively developed at scale through university-industry collaboration.

    University-led programmes, co-designed with industry partners, can deliver intensive training in these critical domains through more agile, flexible, digitally enabled learning approaches.

    The corporate challenge

    We must confront an uncomfortable truth: the firewall between industry and education is rapidly vanishing. Global technology giants, such as Google, Amazon, Microsoft, IBM, and Siemens, are already among the world’s largest training providers.

    Before long, they will either embed their programmes inside universities or create rival institutions that funnel graduates directly into high-value jobs. Students will inevitably gravitate toward whichever pathway offers the strongest prospects for employability and rapid career progression.

    The response must be proactive rather than defensive. Universities should forge strategic partnerships with businesses, policymakers, and private education providers to develop flexible, omni-channel learning models that integrate traditional campus experiences with industry-embedded learning opportunities, supported by sophisticated digital delivery platforms.

    For centuries, British universities have been intellectual powerhouses shaping minds and advancing knowledge. But the future of our higher education system now depends on a fundamental mindset shift.

    Institutions must become more commercially astute and globally connected, while remaining deeply rooted in their communities where their civic mission finds its most powerful expression.

    We must embrace industry and community like never before. That means forging strategic partnerships, embracing commercial imperatives, and converting research and skills into measurable socio-economic benefits.

    We can no longer rely solely on our storied academic traditions. If British universities are to thrive in the twenty-first century, they must transform and become active architects of economic and social transformation — or risk fading into obsolescence as relics of a bygone age.

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  • The economic cost of an unequal R&D workforce

    The economic cost of an unequal R&D workforce

    The argument for investment in R&D goes as follows.

    The more innovative an economy is the greater level of economic output it will produce. The more output an economy produces the wealthier a country will be and by extension its citizens will enjoy higher wages, better public services, and a greater quality of life.

    Innovation is dependent on two things. The first is the infrastructure to make innovation happen. The great universities, laboratories, equipment, and less prosaically the roads, broadband, and public transport, that facilitate the physical transfer of ideas. The second is human capital. The educated workforce that can turn the raw materials of our collective knowledge into new products and services which make the economy strong and society better.

    The ideal scenario has two major assumptions. The first is that the products of innovation will be widely felt in the economy to spur economic growth and these benefits will be felt by the workers who are not taking part in R&D intensive activities. In other words, private activities have a spill over benefit to the public at large. The second is that human capital will be allocated efficiently where the best people to do R&D will be placed in the best roles and the market will reward them for their time.

    This means that work in R&D should return higher wages through the input (people’s labour) and through its output (a more productive economy.) A new independent report for DSIT has raised questions on whether the benefits of R&D are felt evenly either by its producers or the population at large.

    Skill issue

    As the report highlights there is little empirical evidence on the kind of R&D workforce the UK needs. The evidence of which kinds of people in which kinds of roles will spur which kinds of R&D activity is poorly understood across geographies, it is poorly understood which specific skills are needed, and it is poorly understood which skills are needed to meet the R&D challenges of the future.

    This is surprising when we learn that 56 per cent of all business R&D spend is spent on staff and the number of people working in roles essential for R&D activity has grown by over a million in the past eleven years. Owing to changes in R&D accounting methodology it’s hard to suggest whether R&D activity or spending intensity has increased at the same rate. It is however true that there are regional imbalances in R&D spending, R&D intensive roles generally pay more, and despite an increase in the R&D workforce the UK’s overall productivity levels remains frustrating low.

    Successive government industrial strategies, incentives, and supply-side reforms, aimed at any kind of redistribution of the proceeds of R&D activity may not have been an effective counterweight to the incentives of business to simply invest where they will see the largest private returns.

    Imbalances

    There is a distinct problem that the R&D workforce is imbalanced. Some parts of the R&D economy, particularly roles like software, have an underrepresentation of women, a significant number of people with level four and above qualifications, and growth is rapid in London and the South East. There is both a demographic and geographic equality issue which means the benefits of R&D investment are not broadly felt across the UK population.

    This is bad on its own terms. It is not a good outcome for society that the public investment in R&D through subsidies, tax credits, capital investment, infrastructure, and the myriad of kinds of corporate welfare, is producing a workforce which has gendered earning inequalities amongst even the highest paid R&D workers (albeit this less than some parts of the labour market), where growing investment is concentrated in the most economically prosperous part of the country, and where there is significantly more instability for the least qualified workers.

    As the report points out, academic literature demonstrates that a more diverse workforce is good for economic growth, productivity, innovation, and entrepreneurship. The inequality of inputs limits the UK’s innovation potential, which in turn impacts how widely the benefits of R&D are felt. Compounding this innovation trap is the UK’s poor record at in work training, geographic inequalities in access to jobs, challenges with university pipelines into specific skills, and geographic imbalances in hard to fill vacancies.

    Universities

    The solution to a more dynamic R&D workforce does not fall exclusively at the door of universities. As the report highlights, universities are churning out large numbers of graduates in subjects aligned to the R&D intensive roles. However, there is a significant undermatching in those graduates then being able to deploy their skills in the labour market. There is also a significant gender imbalance in university recruitment into STEM programmes which then leads into the imbalances in the workforce.

    Interviewees for the report also suggested that university CPD for R&D industries could help close skills gaps and redefining their commercial approaches with SMEs could help with the workforce challenges. Yes, but it also doesn’t feel like universities should be responsible for the permanent reskilling of their graduates. Again, in work training in the UK is low.

    The labour market in R&D is the product of every step up to someone entering the workforce and then the conditions once they are in it. At the current trajectory the UK will have an ever large R&D workforce but the expansion in its size will not occur conterminously with a geographic or demographic expansion of its impacts.

    Universities are not factories that churn out graduates with neatly aligned skills to the ever changing demands of the labour market. However, this report does convincingly point out that the UK’s economy benefits from diverse firms and more diverse firms will only happen with more diverse graduates.

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  • Government economic policy depends on a healthily diverse higher education ecosystem

    Government economic policy depends on a healthily diverse higher education ecosystem

    At GuildHE, we represent over 60 institutions that do not fit the traditional, large, generalist, research-intensive mould. These institutions are deeply focused on industrial readiness, employability, specialist skills and regional growth.

    They deliver vital skills in geographical areas and sectors where the UK faces acute shortages, and directly support the government’s own missions to grow, increase opportunity, develop a greener future, reduce crime levels and build a better NHS. Whether this is achieved through healthcare, the built environment, teaching, policing, agricultural innovations, law or the creative economy, the future talent pipeline to address these missions depends, in large part, on the success of these providers. However, the current funding landscape does little to protect and support them.

    The image of the large generalist, research-intensive traditional higher education institution is the model on which the funding and regulatory system in the UK is based. This model has become the DNA of our systems, which rely on assumptions about the sector as a whole: its strategic missions, delivery mechanisms and capacity. These assumptions naturally impact the incentives and levers that are built into policy frameworks.

    Policies often fail to recognise those that fall outside that image, so that smaller, specialist, and non-traditional institutions face increasing threats to their viability. Sector consolidation and investment in the historically-established HE model, as seen in other settings across the world such as Australia and the US, could undermine our global reputation, agility and responsiveness to diverse students and industries.

    Challenging these systems, and the methodologies on which they are built, will require the government to embrace innovative models of practice across education, skills and research, even if it comes with some associated risk. Indeed, it will require a brave examination of the effectiveness of the very regulatory and funding systems which are encouraging a level of homogenisation across the sector that could spell its own doom.

    To that end, we propose an approach to spending in the next period that focuses on reforms to encourage investment and rethinking the system to make it work smarter.

    Invest in the talent pipeline and protect student choice

    As part of this government’s vision to expand opportunity, we have seen the beginnings of multiple new strategies and administrative initiatives, including proposals for a new Industrial Strategy, a Get Britain Working strategy, a new ten-year plan for the NHS, reform of higher education and the introduction of Skills England. These new arrivals aim to improve economic growth, encourage efficiency in public services, produce a future skills pipeline and build an investment environment for UK business.

    Higher education drives the transformative forces required to raise levels of productivity and improve economic growth. Institutions do this by stimulating the higher-level skills needed in industry, providing lifelong opportunities to retrain and upskill, and expanding opportunities for all to do so. They also do it by cultivating ideas and new knowledge; a cornerstone of productivity and growth.

    Alongside these contributions, we need to protect student choice by preserving a variety of institutional types and locations across the country. Doing so is vital to ensuring the widest range of students can access the transformative power of higher education; a power that yields both individual improvements in life chances and direct improvements to employability, our public services and our economy. Furthermore, a system that boasts a diverse range of institutions and provision types is a healthy one that can deliver to local economies and communities across the country and thereby demonstrate ways in which higher education institutions are vital to those beyond us.

    Balancing government growth and skills priorities with student choice is not mutually exclusive. Models of higher education that prioritise industry practice, employer needs, innovation impacts and workplace experience can achieve these priorities. The capability to develop high-level specialist skills dynamically in a way which also builds the social resilience required to respond effectively to new, advancing technologies is quickly becoming a standard requirement of our graduates. We need reformed spending to achieve it.

    Do things differently, get different results

    Minister of State for Skills Jacqui Smith has said that the government is ready to review the education system and develop a way forward that “challenges the status quo.” To genuinely fulfil this ambition, we need fundamental change to the foundational regulatory and funding systems so that diversity in terms of institution, student, and pedagogical approach can survive into the future. If this government is serious about its ambitions to grow and future-proof education and skills, the following reforms are needed.

    Reform teaching funding to support priorities

    Government should establish funding streams for specific outreach programmes in priority subject areas like creative arts, teaching, healthcare, construction and agriculture. Doing so would acknowledge failures in the prevailing market ideology that implied industrial need for qualified graduates would shape applications into relevant programmes. Identified subject areas required by both our industrial sectors and broader society could provide a clearer rationale for funding allocations than student numbers across current Office for Students bandings.

    The Strategic Priorities Grant for 2024–25 has been used to support “work on high-cost subjects, student mental health, degree apprenticeships, equality of opportunity, technical qualifications and a range of other priorities.” It is hard to see how smaller and smaller block grant funding allocations have delivered to myriad priorities and we have yet to see an evaluation of the effectiveness of that funding to support them.

    Given the existing financial pressures within the sector, which some suggest should be addressed by increasing tuition fees (presumably within the same funding methodologies), we suggest a more ambitious review of the funding system is needed to drive support to where it is most needed to preserve a healthy, dynamic and diverse sector that can deliver to a wide range of students across a wide range of locations, especially where there are limited routes into and through higher education.

    Revise funding for skills, research and innovation to drive growth

    The Growth and Skills Levy needs reforming. It needs to better support SMEs, which comprise 99 per cent of all UK employers and account for 61 per cent of total employment. SMEs are critical to most sectors, but they make up the majority of some identified as crucial sectors in the government’s Industrial Strategy, including life sciences, advanced manufacturing and the creative industries. Data from the Department for Culture, Media and Sport suggests that the vast majority of businesses in the creative industries are micro-businesses. To meet the government’s own industrial ambitions, it must not only reconsider how funding can be delivered through and to those SMEs, but also how investment in training could be flexed.

    Recent announcements by the government indicating plans to defund all Level 7 apprenticeships feel tone-deaf for those working in construction, healthcare, engineering and data science fields. To our minds, more technical skills training in fields meant to drive economic growth, which includes a wide range of skills at different levels, is not only a good thing, but is a necessary investment if those ambitions are to be realised. This is not to say we should fund L7 at the expense of lower level apprenticeships. Rather, we are advocating for investment in apprenticeships at all levels indicated as necessary by employers in those sectors where critical skills shortages have been identified as key barriers to economic growth and improvements in our public services.

    But it’s not just about skills training via apprenticeships. It’s also about generating new ideas and innovations to help us work more productively and unlock our abilities to deliver more with fewer tangible resources. To deliver that ambition, both research and innovation funding streams need reform. Higher Education Innovation Fund (HEIF) thresholds should be lowered to remove systemic biases that disadvantage smaller and specialist institutions. Research funding should be adjusted to provide reasonable minimum levels of allocation to all institutions where excellent research is being generated. Doing so would dramatically broaden the UK’s research base rather than deepen it by funnelling greater levels of funding to points where research is already established, thereby expanding research and development capabilities by widening the pool of contributors.

    Doing so would support a regional growth strategy. It would spread money to areas where infrastructure still needs development and could provide incentives in geographical areas where ERDF funding has been lost. Local authorities in non-mayoral regions should also have a clear role in shaping research and innovation policies, with greater collaboration and knowledge-sharing between them and MCA regions to create a more balanced and inclusive approach to regional development.

    A call for an inclusive funding model

    Higher education in the UK is built on a long history of tradition, prestige, and excellence. However, in a time of economic uncertainty and shifting international alliances, we must now innovate to maintain our position on the world stage. While large, generalist institutions continue to play a critical role in advancing knowledge and global competitiveness, they are just one part of the type of healthy higher education ecosystem needed to support 21st century democracies to deliver economically and socially for their citizens. Smaller-scale, specialist and non-traditional institutions with expertise in vocational, professional programmes are equally vital.

    The government has already acknowledged the importance of skills development, regional growth, and public sector workforce expansion in words, but these priorities must be reflected in its spending decisions, policy frameworks and implementation plans. The coming fiscal choices will contribute to whether the UK’s higher education system remains diverse, dynamic, and globally competitive—or whether it risks stagnation.

    Policymakers face a critical choice: will they promote a more balanced and inclusive approach to funding that embraces risk to boost excellence in research, innovation, and skills development? The future of our sector, the UK’s ability to meet its domestic goals, and the growing need for clear, strong and sustainable geopolitical values, depend on it.

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  • What’s driving low levels of full economic cost recovery in research?

    What’s driving low levels of full economic cost recovery in research?

    Media attention has emphasised that the financial issues facing universities continue to worsen. While research is a cornerstone and strength of the sector, it is often regarded as a cost, which leads to scrutiny as part of institutional savings targets. Despite calls to acknowledge the value of research, the focus understandably remains on research costs.

    The focus of universities on the volume and cost of unfunded research, or more accurately, internally funded research, is a question that must be addressed. Institutions are reflecting on and revising internal research allowances as part of their efforts to achieve a more sustainable financial position, as the cross-subsidy from international student fees is no longer as viable as it once was.

    The question of funded research, however, is a different matter. For quite some time, there have been questions about what constitutes the full economic cost (FEC) and how these costs are recovered when projects are funded. Both issues have once again come to the forefront in the current climate, especially as institutions are failing to recover the eligible costs of funded projects.

    As part of the Innovation & Research Caucus, an investment funded by UKRI, we have been investigating why the recovery of UKRI-funded research is often below the stated rates. To put it simply, if the official recovery rate is 80 per cent FEC, why is 80 per cent not being recovered on UKRI-funded projects?

    Understanding under-recovery

    We conducted a series of interviews with chief financial officers, pro vice chancellors for research, and directors of research services across mission groups, the Transparent Approach to Costing (TRAC) group, and various geographic regions. They identified several key reasons why universities are not recovering the funding to which they are entitled.

    Before exploring the causes of under-recovery on UKRI-funded projects, the project aimed to establish the extent to which TRAC data was curated and utilised. Notably, the study found that the data collected for TRAC does not exist within research organisations and would not otherwise be collected in this form if it were not for the TRAC reporting requirement.

    While scrutinising TRAC data was less of a priority when the financial situation was more stable, in many institutions, it is now of interest to the top table and serves as the basis for modelling, projections, and scenario planning. That said, such analysis did not always recognise TRAC’s limitations in terms of how it was compiled and, therefore, its comparability.

    In many of the research organisations consulted, the responsibilities for TRAC, project costing, and project delivery are distinct. Given the growing significance of TRAC data in influencing resource allocation and strategic decision-making, it is essential for research organisations to adopt a more integrated approach to compiling and utilising TRAC data to achieve improved outcomes.

    Drivers of under-recovery

    A wide range of factors explains why the cost recovered at the end of a funding grant is less than anticipated at the point of submission and award. Almost all respondents highlighted three factors as significant in low cost recovery:

    1. Equipment and facilities costs were consistently cited as a factor, including issues associated with allocating and costing overheads and estates. Several institutions highlighted the difficulty in realistically costing equipment and facilities shared between research projects or between research projects and teaching.
    1. Staff under-costing was frequently mentioned, as principal investigators (PIs) underestimated their own and their colleagues’ time commitment to projects. This ineffective practice was driven by a (mis)perception that lower costs will likely improve success rates – despite the emphasis being on value rather than cost within a specific funding envelope.
    2. Inflation has been identified as a factor affecting all cost elements – from staff costs related to pay settlements and promotions to the rising expenses associated with consumables, equipment, and energy. This reveals a growing gap in applications, delivery, and reporting.

    Beyond these top three, the report highlights the implications of the often “hidden” costs associated with supporting and administering UKRI grants, the perennial issues of match funding, and the often inevitable delays in starting and delivering projects – all of which add to the cost and increase the prospect of under-recovery.

    In addition, an array of other contributing factors were also raised. These included the impact of exchange rates, eligibility criteria, the capital intensity of projects, cost recovery for partners, recruitment challenges, lack of contingency, and no cost extensions. While not pinpointing the importance of a single factor, the interplay and cumulative effect were considered to result in under-recovery.

    Addressing under-recovery

    Universities bear the cost of under-recovery, but funders and universities can take several actions to improve under-recovery – some of which are low- or no-cost, could be implemented in the short term, and would make a real difference.

    Funders, such as UKRI, should provide clearer guidance for research organisations on how to cost facilities and equipment, as well as how to include these costs in research bids. Similarly, applicants and reviewers should receive clearer guidance regarding realistic expectations from PIs in leading projects, emphasising that value should be prioritised over cost. Another area that warrants clearer guidance is match funding, specifically for institutions regarding expectations and for reviewers on how match funding should be assessed. We are pleased to see that UKRI is already taking steps to address these points in its funding policies [editor’s note: this link will be live around 9am on Friday morning].

    In the medium term, research funders could also review their approaches to indexation, which could help mitigate the impact of inflation in driving under-recovery, although this is, of course, not without cost. Another area worth exploring by both research organisations and funders is the provision of shared infrastructures and assets, both within and across institutions – again, a longer-term project.

    We are already seeing institutions taking steps to manage and mitigate under-recovery, and there is scope to extend good practice. Perhaps the main challenge to improving cost recovery is better managing the link between project budgets – based on proposal costs – and project delivery costs. Ensuring a joined-up approach from project costing to reporting is important, but more important is developing a deeper understanding across these areas.

    A final point is the need to ensure that academics vying for funding really understand the new realities of cost and recovery. This has not always been the case, and arguably still is not the case. These skills – from clarifying the importance of realistic staff costs to accurately costing the use of facilities to effectively managing project budgets – will help close the cost recovery gap.

    The real FEC of research funding

    The current project has focused on under-recovery in project delivery. The next step is to understand the real cost to research organisations of UKRI grant funding.

    This means understanding the cost of developing, preparing and submitting a UKRI grant application – whether successful or not. It means understanding the costs associated with administering and reporting on a UKRI grant during and beyond the life of a project (think ResearchFish!).

    For more information, please get in touch – or watch this space for further findings.

    The Innovation & Research Caucus report, Understanding low levels of FEC cost recovery on UKRI grants, will be published on the UKRI site later today.

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  • Florida Dreamer Tuition Policy Reversal Threatens $25 Million Economic Impact

    Florida Dreamer Tuition Policy Reversal Threatens $25 Million Economic Impact

    Education advocates and immigration policy experts are warning of significant economic, and workforce impacts following Florida’s decision to rescind in-state tuition waivers for undocumented students who graduated from Florida high schools. The policy change, signed into law by Governor Ron DeSantis, marks a significant shift in the state’s approach to higher education access for Dreamers.

    The decision is expected to cost Florida institutions approximately $25 million in tuition and fees, according to TheDream.US, a national organization supporting higher education access for Dreamers. The organization’s President and CEO, Gaby Pacheco, a long-time Miami resident, said that the impact extends beyond immediate financial consequences, potentially affecting Florida’s future workforce development and economic growth.

    “Our state is turning its back and hindering the potential of students who have succeeded throughout their K-12 education,” says Pacheco, noting that many affected students arrived in the United States at an average age of six years old. The organization has already helped more than 600 Florida-based Dreamers graduate college, with many now working as nurses, teachers, engineers, and entrepreneurs within the state.

    The Presidents’ Alliance on Higher Education and Immigration, through its Director of Policy and Strategy Diego Sánchez, points to concerning workforce implications. With Florida facing shortages in healthcare, teaching, and STEM fields, the policy change could exacerbate existing gaps in critical sectors. Sánchez, himself a former undocumented student in Florida, argues that the state risks losing bilingual, skilled professionals to other regions with more inclusive education policies.

    The impact of this policy shift could be particularly significant given Florida’s traditional role as a hub for educational and economic opportunity. Critics argue that the change contradicts the state’s historical position as a beacon of dynamism and opportunity, potentially deterring talented students from pursuing higher education in Florida.

    Advocates point out that many affected students are deeply integrated into Florida communities, having completed their entire K-12 education in the state’s public schools. The new policy, they argue, creates barriers for these students to continue their education and contribute to the state’s economy, potentially forcing them to either abandon their educational pursuits or seek opportunities in other states with more favorable policies.

    As this policy takes effect, educational institutions and advocacy groups are working to assess the full scope of its impact on Florida’s educational landscape and future workforce development. The change represents a significant shift in Florida’s approach to higher education access and raises questions about the state’s long-term economic and workforce strategy.

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  • Confessions of an Economic Hit Man (John Perkins Interview with Marc Beckman)

    Confessions of an Economic Hit Man (John Perkins Interview with Marc Beckman)

    John Perkins is THE economic hitman. A conman. Perkins arranged meetings with world leaders specifically to create debt traps. Death economies. When the world leaders failed to comply, it was made clear that Perkins had serious force behind him. He calls them his jackals: the CIA.

    John Perkins was a chief economist who leveraged the World Bank, the United Nations, and the IMF to extract valuable resources around the globe in regions like the Middle East and South America. His actions expanded wealth inequality. And as a result, there was an assassination attempt on Jon’s life. The United States has been exploiting various regions of the world for decades. Now China is following and setting debt traps across Africa, the Middle East, Russia, and beyond.

    In this episode, Marc dives deep into the life and experiences of John Perkins, the renowned author of Confessions of an Economic Hitman. John shares his eye-opening journey as a former chief economist and self-described “economic hitman,” revealing how he orchestrated debt traps to exploit nations globally. From negotiating billion-dollar deals to witnessing the devastating consequences of these actions, Perkins paints a haunting picture of the “death economy” and its enduring legacy.

    The conversation also explores China’s adoption of similar strategies, modern-day debt traps, and the technological evolution of economic warfare, including AI and drones. Perkins introduces his transformative vision of a “life economy,” offering hope for a sustainable and equitable future.

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