THE PUBLIC GOOD, THE MARKET, AND ACADEMIC CAPITALISM: U.S. CROSS-BORDER HIGHER EDUCATION IN PANAMA by LISETTE MONTOTO (Under the Direction of Sheila Slaughter) ABSTRACT In recent years, U.S. colleges and universities have begun to extend their international presence through different models of cross-border higher education. This research explores three models of U.S. higher education in Panama City, Panama: a branch campus, a franchise model and merger/acquisition models. Using a qualitative approach, this study included a year of document analysis, classroom observations, interviews, and focus groups. Using the lens of academic capitalism, the findings place the different models along a continuum of neoliberalism and the public good. INDEX WORDS: higher education, Panama, cross-border, academic capitalism, neoliberalism, public good, branch campus, franchise, merger/acquisition, for-profit higher education, Florida State University-Panama (FSU- Panama), Quality Leadership University (QLU), Laureate Inc., Whitney International University Systems, Universidad Latinoamericana de Ciencia y Tecnología (ULACIT), Universidad Interamericana (UIP), Universidad del Istmo (UDI). THE PUBLIC GOOD, THE MARKET, AND ACADEMIC CAPITALISM: U.S. CROSS-BORDER HIGHER EDUCATION IN PANAMA by LISETTE MONTOTO BA, Florida State University, 2003 BS, Florida State University, 2003 MA, Florida State University, 2005 A Dissertation Submitted to the Graduate Faculty of The University of Georgia in Partial Fulfillment of the Requirements for the Degree DOCTOR OF PHILOSOPHY ATHENS, GEORGIA 2013 © 2013 Lisette Montoto All Rights Reserved THE PUBLIC GOOD, THE MARKET, AND ACADEMIC CAPITALISM: U.S. CROSS-BORDER HIGHER EDUCATION IN PANAMA by LISETTE MONTOTO Major Professor: Sheila Slaughter Committee: James C. Hearn Erik C. Ness Electronic Version Approved: Maureen Grasso Dean of the Graduate School The University of Georgia May 2013 iv DEDICATION This dissertation is dedicated in loving memory of Professor J. Douglas Toma. v ACKNOWLEDGEMENTS This research was funded by a Dissertation Completion Award from the Graduate School at the University of Georgia. This funding was critical to the completion of this research. I also owe a huge debt of gratitude to many professors, past and present, from the Institute of Higher Education: Christopher Morphew, for teaching me the value of revisions; Thomas Dyer, for introducing me to the field of comparative and international higher education and encouraging me to pursue my research in this area; Sheila Slaughter, for agreeing to serve as my major professor and exercising extreme patience with me; and J. Douglas Toma, for believing in me and serving as my mentor until his untimely passing. In Panama, the Instituto de Estudios Nacionales (IDEN) at the University of Panama provided support during this research. I am also grateful to Etilvia Arjona and Nanette Svenson for their expertise on Panamanian higher education. Their insight proved invaluable. Thank you to my colleagues at International Studies Abroad who have supported me during the completion of this dissertation. A sincere thank you to all my loved ones that have supported me through this journey, especially the Scott family, the del Mazo family, Mary Daniels and Jason Wilbur. I am grateful for my grandmother, Zoila del Mazo, who instilled in me the importance of a higher education and that no one can take it away. And finally, the biggest appreciation of all goes to my parents. During my move to Athens to begin the doctoral program, my parents suffered a near fatal car accident. From their hospital beds in the trauma unit they insisted I begin the program. This unfailing support throughout my entire education is vi the reason this achievement was possible. But it is not my achievement alone, and I share this accomplishment with them both. vii TABLE OF CONTENTS Page ACKNOWLEDGEMENTS .............................................................................................................v LIST OF TABLES ......................................................................................................................... xi CHAPTER 1 INTRODUCTION .........................................................................................................1 Overview ..................................................................................................................1 Statement of the Problem .........................................................................................4 Purpose of the Study ................................................................................................5 Outline......................................................................................................................6 2 LITERATURE REVIEW ............................................................................................14 Globalization and Neoliberalism ...........................................................................14 Globalization, Trade, and Higher Education .........................................................16 Globalization and Internationalization ...................................................................18 Motivations for Internationalization ......................................................................19 Transnational Cross-Border Off-Shore Higher Education ....................................21 Branch Campuses...................................................................................................25 For-Profits ..............................................................................................................27 Partnerships ............................................................................................................31 Knowledge Hubs ....................................................................................................32 Latin American Higher Education .........................................................................35 viii Panama ...................................................................................................................39 Panamanian Higher Education ...............................................................................43 Conclusion .............................................................................................................48 3 THEORETICAL FRAMEWORK ...............................................................................52 Neoliberalism/Market Economics, the Public Good, and Academic Capitalism ..52 Neoliberalism: History ...........................................................................................53 Neoliberalism: Current Interpretations ..................................................................57 Neoliberalism and Higher Education .....................................................................61 Public Good Historical Debates .............................................................................65 Neoliberalism and the Public Good .......................................................................66 Access Concerns ....................................................................................................67 Economic Definition ..............................................................................................69 Education and the Market Model ...........................................................................71 The Public Good is Trust .......................................................................................75 The Shift from Public to Private Good ..................................................................76 Recent Trends ........................................................................................................80 Academic Capitalism: Definition ..........................................................................81 Neoliberal Influences .............................................................................................82 New Circuits of Knowledge ...................................................................................83 Faculty and New Professionals ..............................................................................85 Students ..................................................................................................................86 Globalization ..........................................................................................................89 Conclusion .............................................................................................................91 ix 4 METHODOLOGY ......................................................................................................93 Data Collection Strategies......................................................................................95 Data Collection ......................................................................................................97 5 A BRANCH CAMPUS IN PANAMA ......................................................................116 Branch Campus Model ........................................................................................116 History..................................................................................................................119 Florida State University - Panama .......................................................................125 Themes .................................................................................................................133 Other Themes .......................................................................................................143