university acquisition

Mergers and acquisitions in Kazakhstan’s universities

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mergersIn an expected but still noteworthy move, the Kazakh-British Technical University (KBTU) in Almaty, Kazakhstan has now officially been merged with Satpayev Kazakh National Research Technical University (known by its Russian acronym as KazNITU). Announced in 2015, the merger is the brainchild of Kazakh President Nursultan Nazarbayev [ru] that aims to strengthen the engineering and technical specialties found in both institutions. To smooth the acquisition from the side of the junior partner (KBTU), the President has appointed Iskander Beisembetov – formerly Rector of KBTU – as the Rector of the newly enlarged institution.

Other than a short story covering the merger in Forbes Kazakhstan [ru] in April 2017, there is very little outward evidence of the change. The only mention I could find on the universities’ websites about the merger was a small link to KBTU’s website next to KazNITU’s on the latter’s homepage, and the story noted above from November 2016 about the appointment of the Rector.

Both institutions have interesting histories. KBTU was an early initiative of President Nazarbayev in higher education, being founded in 2000 by agreement with Tony Blair, then Prime Minister of the United Kingdom (as an aside, this helps set into perspective the longer-term working relationship maintained by the two leaders, which has been reported on rather incredulously from the West as if it was something more recent). KBTU has always been a specialist science and technology university and leads national rankings in these areas.

In contrast to KBTU’s positioning as being part of a ‘new generation’ of universities, KazNITU in its various iterations is one of the oldest higher education institutions in Kazakhstan, with a history dating back to 1934. Founded as the Kazakh Mining and Metallurgical Institute, it now has a mission much like KBTU’s, namely, to be a leading provider of high quality teaching and research specialising in technological education.

For the two institutions, it looks like – for the moment, at least – very little will change. But for the higher education system in Kazakhstan, this represents an important moment. Mergers reflect a change in the way institutions are governed and the context within which they operate. In the late 20th and early 21st centuries, mergers are often symbolic of a shift towards a managerial logic in higher education. Out are the old practices of academic collegiality and the pursuit of knowledge for its own sake (and at whatever cost), ushering in instead governance by tuition fee in a (pseudo-)market environment.

The good governance of universities is critical to their effective running, and there are doubtless cases where the introduction of new forms of governance (that may include mergers and acquisitions, as well as the closure of institutions) has helped universities and the system they operate in. Yet there are also concerns that the imposition of externally driven reorganizations may reduce institutional autonomy and differentiation or damage academic morale. And whether they improve the university’s core ‘business’ of teaching and research is, as well-known British higher education scholar Michael Shattock has argued, unproven.

 

Reference

Shattock, M. (2006). Managing good governance in higher education. Open University Press.