CASE STUDY Education Within Reach of All UNIMINUTO: Bringing Entrepreneurship, Innovation and Jobs to Marginalized Communities in Colombia through Tertiary Education April 2015 ABOUT IFC IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on leveraging the power of the private sector to tackle the world’s most pressing development challenges. Working with private enterprises in more than 100 countries, IFC uses its capital, expertise and influence to help eliminate extreme poverty and promote shared prosperity. ABOUT THE CASE STUDY Expanding access to quality and affordable education is a central element to eliminate poverty and reduce inequality. In developing countries, private education providers play a critical role in the delivery of education, skills, and training that is affordable and relevant to the needs of the labor markets. The IFC education practice is developing four case studies that showcase success stories in the IFC education portfolio around scale, skills, affordability, and innovation. The case studies highlight how IFC clients have contributed to meeting IFC’s strategic goals in education of: (1) developing skills and enhancing employability of graduates and trainees and (2) increasing reach and impact at all levels of education.  WRITTEN BY This case study was written by Ann M. Casanova with input from Salah-Eddine Kandri, Mohammed Ali Khan and Carolina Valenzuela.  ACKNOWLEDGEMENTS A special note of appreciation is extended to UNIMINUTO for sharing details of their experience particularly: Leonidas Lopez Herrán, Rector General, Sonia Durán Martínez, Director of Planning and Development and Andrés Mosquera, Coordinator of Business Intelligence and Statistics, Astrid González Haddad, Manager of COOP-UNIMINUTO and José Vicente Bernal, Advisor of the General Administrative and Financial Vice Rectory.  The author is grateful for the many insights provided by Santiago Descarrega and IFC and World Bank colleagues who participated in the interviews.  Special thanks to Irina Sarchenko who facilitated the publication process.  DISCLAIMER The findings, interpretations, views and conclusions expressed herein are those of the author and do not necessarily reflect the views of the Executive Directors of the International Finance Corporation (IFC) or of the World Bank or the governments they represent.  While IFC believes that the information provided is accurate, the information is provided on a strictly “as-is” basis, without assurance or representation of any kind.  IFC may not require all or any of the described practices in its own investments, and in its sole discretion may not agree to finance or assist companies or projects that adhere to those practices.  Any such practices or proposed practices would be evaluated by IFC on a case-by-case basis with due regard for the particular circumstances of the project. RIGHTS AND PERMISSIONS © International Finance Corporation 2015. All rights reserved. The material in this work is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. Design: The Word Express, Inc. Table of Contents UNIMINUTO: Changing Lives 1 Country Context 7 Humble Beginnings in the Outskirts of Bogota 9 A Flexible Business Model Is Also a Successful Business Model 13 Impressive Growth: The Business Trajectory and Key Milestones 19 Focus on Selected Innovations that Laid the Foundations for Impressive Growth 23 The Role of IFC 29 The Future for UNIMINUTO 33 Replicability in Other Markets 35 Conclusion 39 Questions for Discussion 41 Annexes 45 iv | Education Within Reach of All UNIMINUTO: Changing Lives Jairo Alexander was 35 years old with limited prospects for well compensated employment. He found an opportunity to obtain a quality, low cost, university education at UNIMINUTO that changed his life. Even on his low wages, he paid his monthly tuition, on occasion with post-dated checks, and he was ultimately able to pay his university education over 6 years. After graduation, he worked as an auxiliary engineer and went on to successfully create a construction business that includes a sustainable financial plan, a social development component and high quality buildings. The first building he constructed on his own was a 400m2 building situated on UNIMINUTO’s campus. He went on to grow his business to an average construction size of 10,000m2 per year, generating new quality employment opportunities in his community.1 How did UNIMINUTO help Jairo, and thousands like him facing adversity, access quality tertiary education and thus transform their Jairo Alexander supervises lives? Ana Matilde, a professor at one of the Regional Centers for Tertiary Education (CERES), explains: “We are preparing students an employee at a to have an entrepreneurial mindset so that they can create, innovate construction site. and generate new sources of jobs.”2 UNIMINUTO is a private, non-profit, Catholic university in Colombia that welcomes students from all walks of life. It is a part of the broader “Minute of God Organization” which, through its “Comprehensive Development” philosophy, facilitates increased human dignity by improving the spiritual and living conditions of people living in vulnerable situations. The University offers more than 100 academic programs at different levels, ranging from technical to post-graduate. It has been successful in its mission to reach students who find it difficult to access tertiary education because of financial or geographical constraints and it has achieved its mission in a financially sustainable way. Main Campus: The San Juan In only 22 years, UNIMINUTO has expanded to 56 physical campuses Eudes Building in Bogota and it provides nationwide coverage through its distance programs. (See Figure 1). By mid-2014, 85 percent of UNIMINUTO’s students was financed by IFC. were outside Bogota. As a result of its bricks and clicks delivery channels, UNIMINUTO is now the largest University in Colombia. Between 1992 and 2014, UNIMINUTO experienced record breaking enrollment growth from 221 to 102,014 students. In the last five years, UNIMINUTO has grown at an annual growth rate of 24 percent, substantially above the 5 percent average growth rate of other universities in Colombia. IFC played a catalytic role in the rapid growth of UNIMINUTO with a loan in 2009 that helped expand infrastructure, upgrade technology and maintain high quality. 1  UNIMINUTO video. Changing Lives. https://www.youtube.com/watch?v=kHwnosdoANo&feature=youtu.be 2  Id. Education Within Reach of All | 1 FIGURE 1. MAP OF UNIMINUTO’S NATIONAL FOOTPRINT * Higher Education Institution Partner 2 | Education Within Reach of All Through an innovative approach that is flexible, high quality, affordable and is partnership driven, UNIMINUTO has helped low income students access tertiary education by eliminating the barriers that would otherwise have made it unattainable. • Flexible: UNIMINUTO brings education to where students live, ranging from major cities to rugged, remote parts of Colombia, in jungles, mountains and along the coast. They offer a diversified range of academic offerings at different levels: technical, technological, undergraduate, postgraduate and continuing education. UNIMINUTO offers a “blended learning model,” through its distance program, so that students with busy schedules can take virtual courses and can fit in periodic face to face classes in the evenings and on weekends.3 • High Quality: The University equips students with an “integral,’’ or a well-rounded education, that combines theory and practice and imbues students with a moral compass that is grounded in a strong sense of social responsibility. They have designed academic programs that are highly relevant to the needs of the region and are geared towards finding rapid employment after graduation. UNIMINUTO has developed a method to ensure that a high level of academic and administrative quality is deployed consistently across the entire university network, while preserving sufficient flexibility to address the specific needs of local communities. They bring value to the degrees students Students receiving earn through a high quality brand. The Ministry of Education financial aid advice at has certified eight academic programs as having achieved high COOP-UNIMINUTO. quality status (and the University expects to achieve high quality institutional accreditation in 2015). • Affordable: The University helps students pay with a wide range of options. It provides highly competitive tuition rates that are adapted, through different discounts, to the economic capacity of each region, taking into consideration the earning capacity of students to pay tuition in each location. In addition, tuition for specific academic programs are also discounted differently on a regional basis. It provides academic and need based scholarships. The student loan program consists of short term loans through a unique “Co-operative” that is affiliated with the University. The Co-operative also offers students a monthly payment option to pay down the loan while students are enrolled. Long term loans are offered by the federal government and through private banks. As a result of these financial aid options, UNIMINUTO helps solve the problem of how to pay for a university education. Between 2007 and 2014, 43 percent of students received student loans from the Co-operative with an average loan of US$1,100 per student per year. The average cost of tuition is US$1,431 per year. • Partnerships: UNIMINUTO leverages regional and national partnerships to achieve its goals. The support of public and private sector partners has been invaluable in multiple ways such as: sharing space for classes, developing the curriculum to increase employability in the productive sector, financing tuition and even incentivizing academic staff. 3 UNIMINUTO Development Plan 2013–2019, pg 86. 4 As of December 31, 2014, there were 88,467 students enrolled in technical professional, technological, undergraduate and postgraduate programs. The graduation rate refers to this pool of students. 5 Labor Observatory for Education 2001–2013. Ministry of National Education http://redes.colombiaaprende.edu.co/ntg/men/Observatorio/index.htm. Education Within Reach of All | 3 These key elements have led UNIMINUTO’s 22,000 alumni4 to enjoy an employment rate of 82 percent within 6 months of graduation, above the 79 percent average for national universities.5 Quite a remarkable feat, when taking into consideration that 98 percent of the student population comes from the lowest three strata (out of six) of the Colombian socio-economic classification system.6,7 In many cases, the students are the first in their families to attend university. As further evidence of their inclusive business model, an impressive 70 percent of UNIMINUTO students are female. As of 2013, approximately 2 million students were enrolled in the 286 institutions of higher education in Colombia.8 However, with a population of 4.3 million between the ages of 12–21,9 the demand for tertiary education is much greater. “Current estimates indicate that 3.2 million secondary-school graduates do not go on to tertiary education—not for lack of ability, but for lack of opportunity.”10 UNIMINUTO has successfully developed a formula for the private sector to service pent up demand for increased economic opportunities in neglected communities. Without UNIMINUTO, 100,000 students11 would not have had the opportunity to pursue a tertiary education degree, a vocational education certificate or a diploma of extension course. UNIMINUTO has achieved these outcomes through a financially sustainable model and today manages a healthy surplus, proving that it is financially feasible to provide tertiary education services to Colombians at the Base of the Pyramid (BoP). 6  The Colombian government manages an official socio-economic classification for households based on location, the quality of housing characteristics and its surrounding environment. This stratification is used as a proxy for income and yields certain financial benefits for lower levels or social responsibilities for higher levels. There are 6 levels: 1) Low–Low, 2) Low, 3) Middle–Low, 4) Middle, 5) Middle–High, 6) High. For additional information see: https://www. dane.gov.co/index.php/estratificacion-socioeconomica/generalidades 7 UNIMINUTO Report to IFC. July 2014. 8 SNIES. Ministry of Education. Higher Education Statistics, Sector Development Office. December 31, 2013. 9 Id. Quoting SNIES and DANE. (based on the 2005 Census). 10 Wharton. “Education in Colombia: Is There a Role for the Private Sector?” January 2, 2013. http://knowledge.wharton.upenn.edu/article/education-in- colombia-is-there-a-role-for-the-private-sector/. 11 This figure includes technical, technological, undergraduate, postgraduate, continuing education and “articulation”—technical preparatory courses for high school students. 4 | Education Within Reach of All 6 | Education Within Reach of All Country Context Colombia is an upper middle income country in South America and is the third largest economy in Latin America, following Mexico and Brazil. It has a population of 49 million (2014) and a GDP of US$378 billion (2013).12 Modern day Colombian history has been marked by four decades of armed conflict, fueled largely by political violence and drug cartels controlling remote parts of Colombia. The government has made substantial progress in reclaiming territory and peace talks are yielding increased security and hope for Colombia, allowing for greater economic productivity. UNIMINUTO serves students from densely In 2013, the labor force was 24 million, of which 42 percent were populated cities to remote represented by women. 66 percent of the population was in the villages on the edge of the economically active range between ages 15 and 64. The unemployment Amazon. rate reached a low of 7.7 percent in November 2014, down from a peak of 17.9 percent in January 2002. Notwithstanding the downward trend in the unemployment rate, the National Development Plan for 2011–2014 estimated that in 2009, 60 percent of workers were in the informal sector, where income rates are lower and taxes are rarely paid.13 Although poverty has been reduced, Colombia has a Gini coefficient of 0.578, placing the country’s inequality gap on par with Haiti, Angola and South Africa, even though the Colombian GDP per capita is substantially higher.14 As of 2011, total education expenditure in Colombia was 7.6 percent of GDP of which 2 percent was allocated to financing public tertiary education.15 Comparatively, Colombia has invested more in total education and tertiary education in 2008 (7 percent and 1.9 percent, respectively) than the OECD average (5.9 percent and 1.5 percent) and in most Latin American (5.6 percent and 1.3 percent) countries.16 75 percent of the population lives in urban centers and this dynamic contributes to the high national literacy rate which was at 94 percent in 2011. Literacy rates are higher in urban areas where quality education is better but in rural Colombia, illiteracy rates can be as high as 20 percent. UNIMINUTO goes beyond the major cities and provides services to rural populations, where public tertiary education is sometimes non-existent. Thus, the government sees UNIMINUTO as a strategic partner for achieving national coverage goals with quality. 12 World Bank country data. http://data.worldbank.org/country/colombia#cp_wdi. 13 OECD/International Bank for Reconstruction and Development/The World Bank (2012), Reviews of National Policies for Education: Tertiary Education in Colombia 2012, OECD Publishing. http://dx.doi.org/ 10.1787/9789264180697-en pg 23. 14 Id at pg 23. 15 Id at pg 262. 16 Id at pg 262. Education Within Reach of All | 7 “We want to offer the country a university where the next generation of youth in Colombia are formed, who are prepared to guide the country through the causes of honesty, progress and work that it needs” — Rafael García Herreros 8 | Education Within Reach of All Humble Beginnings in the Outskirts of Bogota Father Rafael García-Herreros, a Catholic priest of the Eudist religious order, began a radio program in 1946 called “La Hora de Father Rafael García Dios” (“The Hour of God”). By 1955, television was becoming an Herreros promoted important communication medium and he invented a one minute national broadcast where he spoke about God, humankind and “comprehensive country. The TV program, titled “Minute of God,” has been running development” in the Minute continuously for 60 years. As a result of the broadcasts, “Minute of God neighborhood. of God” became a nationally recognized brand that is well known by the majority of Colombians. Father Rafael García-Herreros was committed to the teachings of Pope Paul VI that promoted the “Comprehensive Development” of human beings and thus he sought to transform the lives of people living in less dignified human conditions, to help them rise from poverty and transition to more dignified human conditions.17 This vocation led him to found the Minute of God Organization in 1958.18 Today, the organization encompasses 9 different entities, including UNIMINUTO, all of which seek the “Comprehensive Development” of people living in vulnerable conditions. Today, Father Diego Jaramillo is the President and also the Chairman of the Council of Founders of UNIMINUTO. In the mid 1950’s, Father Rafael García-Herreros began his works of charity by building low income housing in the impoverished neighborhoods of Bogota. He wanted to bring dignity to people’s lives and founded the “Barrio Minuto de Dios” (“Minute of God Neighborhood”), which over time incorporated a church, day care, schools from primary through high school, health services, microenterprise development support and job training for entrepreneurs in the productive sector. The neighborhood concept was so successful that it was considered a model for the eradication of poverty by the Inter-American Development Bank.19 When the first students in the neighborhood finished primary school in 1962, there was talk about the need to establish a University in the neighborhood. It took 30 years to realize that dream. In 1989, Father Rafael García-Herreros shared his vision of the future University on his national television program: “El Minuto de Dios” when he told the Colombian nation: “It will be a different University with great purposes, with philosophical and scientific methods, that is the synthesis of modern thinking about the future city ... We are going to mold the young dreamers of Colombia, who will be capable of bringing an entirely new direction to 17 “Encyclical of Pope Paul VI on the Development of Peoples,” Populorum Progressio, March 26, 1967. Note that comprehensive development is related to economic conditions but involves additional variables such as: changing mentality, tradition, environment and socio-economic conditions. 18 Today, the Minute of God Organization, through its various entities provides a wide range of social services such as: housing opportunities, preschool, primary, secondary and tertiary education and education for work and human development, promoting and spreading the Gospel through the charismatic renewal, research, development and technology transfer for sustainable agriculture, comprehensive training and technological development to enhance the industrial capacity of the country, financing services, fundraising, television services to spread the Christian message and comprehensive care to people affected by HIV/AIDS. 19 Padre Rafael García Herreros Biography. http://www.minutodedios.org/index.php/quienes-somos pg. 4. Education Within Reach of All | 9 the country, to guide the Republic on the new roads she craves and needs ... We want to offer the country a university where the next UNIMINUTO’s inclusive generation of youth in Colombia are formed, who are prepared to model welcomes everyone. guide the country through the causes of honesty, progress and work that it needs.”20 In 1989, Corporación Universitaria Minuto de Dios (“Minute of God University Corporation”) (“UNIMINUTO”) was founded as a non-profit corporation21 with a mission that is inspired by the social beliefs of the Church and the charisma of the “Minute of God” brand. Its mission statement establishes the following objectives: “Provide tertiary education of an excellent quality that is relevant, with a preferential option for those who do not have opportunities to access it, through an innovative, comprehensive and flexible model; Form excellent human beings, competent professionals, ethically oriented and committed to social transformation and sustainable development; Contribute, with our commitment and our testimony, to building a society that is fraternal, just, has reconciled the past and is at peace.” “Words to Colombia” from Father Rafael Garcia Herreros “El Minuto de Dios” television segment September 2, 1989. 20  On August 31, 1989, the Corporation El Minuto de Dios, the charismatic Minuto de Dios Center and the Congregation of Jesus and Mary, CJM, incorporated 21  the Minuto de Dios University Corporation. 10 | Education Within Reach of All 12 | Education Within Reach of All A Flexible Business Model Is Also a Successful Business Model In the late 1990’s, Colombia was facing a financial crisis and hundreds of people lost their homes including parents of students and partners A student living in a remote of UNIMINUTO. This crisis led to a grave situation with students withdrawing from the institution and staff facing financial problems. mountainous region of 1999 was the only year in the university’s history that there was a drop Colombia leverages the in student enrollment. During these difficult times, UNIMINUTO’s distance program to access challenge was to broaden coverage, at low prices and with guaranteed tertiary education. quality. UNIMINUTO was operating at a breakeven level and the model was not sustainable over the long term. The crisis was a major turning point for the University and a new financial model was adopted that emphasized austerity and that controlled fixed costs and investment expenses related to student enrollment. Today, UNIMINUTO’s financial position is strong with cumulative revenues increasing annually. Growth is attributed to the enrollment of 24,014 new students between June 2013 and June 2014. As of June 2014, UNIMINUTO had liquid assets valued at US$53 million. It has no outstanding debt other than roughly US$4 million due to IFC. As a non-profit, it is constantly reinvesting proceeds. EBITDA22 and profit margins are at the top end of IFC’s portfolio, above its comparables in developed countries and above its peers in emerging markets. UNIMINUTO’s income arises primarily from student tuition. UNIMINUTO’s price structure is reverse engineered for each campus. A study is conducted that assesses the local community’s ability to pay and is balanced against operating cost requirements to establish a tuition rate that is unique to that community. As a result, tuition rates vary between academic programs and campuses, with higher rates at the principal campus in Bogota where student earning potential is higher. The higher tuition in the larger cities cross-subsidizes lower tuition rates in rural areas, thus facilitating access. Tuition for the distance and virtual program is lower than the face to face program at the regional campuses. Thanks to technology and public-private partnerships that facilitate the use of low cost EBITDA is an acronym for Earnings before Interest, Taxes, Depreciation and Amortization. It is a measure of a company’s cash flow and allows investors 22  to see how much money a company is making before its deductions. Education Within Reach of All | 13 infrastructure, operating costs for the distance program are lower. The distance program has allowed UNIMINUTO to operate a low cost, high volume business which has driven its rapid growth. (See Figure 2.) FIGURE 2.  GROWTH OF STUDENT POPULATION – FACE TO FACE AND DISTANCE PROGRAMS (1992–Q2 2014) 120,000 100% 102,014 90% 85,462 100,000 80% 72,079 70% 80,000 60% 52,433 60,000 50% 42,014 36,558 40% 31,116 40,000 24,287 30% 15,978 20% 11,573 20,000 7,477 5,580 3,529 2,453 10% 1997 1,444 1999 1,507 2000 1,747 1998 1,537 1996 1,314 1995 1,215 1994 969 1993 684 1992 221 0 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Estudiantes % Distancia Source: UNIMINUTO Plan de Desarrollo 2013–2019. In Q2 2014, 59,168 of enrolled students were distance students. The figures include technical education courses open to high school students and continuing education. In 2014, the average cost of tuition at UNIMINUTO was US$1,431 per year, significantly lower when compared to other Colombian universities which cost an average of US$5,000 per year.23,24 Table 1 provides average tuition rates for 2014 broken down by academic program and by campus for 2014. TABLE 1. AVERAGE ANNUAL TUITION RATES FOR 2014 Tuition Tuition Principal Campus Tuition Distance and Virtual Academic Program (Bogota) Regional Campuses Campus Technical n/a US$610 US$636 Technological US$1,638 US$722 US$628 Undergraduate US$1,858 US$816 US$882 Post-Graduate US$3,144 US$2,238 US$2,570 Source: UNIMINUTO Report to IFC. July 2014. 23  http://www.dinero.com/empresas/articulo/la-educacion-costos/179896. 24  The exchange rate was 2,240 on December 3, 2014. www.oanda.com. 14 | Education Within Reach of All UNIMINUTO has carefully managed labor costs, which by year end 2013 represented 43.5 percent of gross revenues and 57.6 percent of net revenues. The difference between gross and net revenues is made up by subsidies, discounts and scholarships granted to students.25 Focusing on fundamentals, 73 percent of staff was academic while 27 percent was administrative. UNIMINUTO relied on a cadre of 3,924 professors system-wide to teach technical, technological, undergraduate, postgraduate and continuing education programs. Of the total number of instructors 22 percent were full time, 29 percent were half time and 49 percent were part time.26 While faculty and administrative compensation has increased to improve the quality of their services, it has been controlled to generate efficiencies. Leveraging partnerships has also proven cost effective to improve the UNIMINUTO co-shares quality of the cadre of professors, a key factor in obtaining high quality space at existing school institutional accreditation. UNIMINUTO wanted to have a larger facilities in remote locations number of professors with postgraduate degrees and partnered with to manage costs. leading private universities to provide full scholarships to UNIMINUTO professors pursuing a Master’s degree. Partnerships began initially with Universidad de los Andes and Universidad del Rosario in Bogota. The program has been expanded to include several international universities, such as Instituto Tecnológico de Monterrey in Mexico and Nova Southeastern University in the United States that have offered support through discounts or partial scholarships. This arrangement has proved to be a popular incentive for retaining professors. As of August 2014, 31 percent of full time professors hold a Master’s degree and 333 professors were participating in the program. UNIMINUTO is very cost conscious and is skilled at leveraging additional resources from other sources. To quickly roll out its national expansion economically, UNIMINUTO reached agreements with local partners to lease or borrow space at existing school facilities for use during off peak hours such as evenings and weekends. This innovative model has facilitated rapid expansion and avoids incurring high infrastructure costs in remote communities, particularly where the revenue model is untested. UNIMINUTO has developed a series of measures aimed at preventing drop outs, thus providing academic success for students and greater financial stability to the University’s revenue stream. It has been successful in reducing the dropout rate from 34 percent at its peak in 2004 to 15 percent by the end of 2013, marginally lower than the national dropout rate.27 It offers remedial support to address academic deficiencies, particularly for students in regions where the quality of secondary programs may not robustly prepare students for the rigors of tertiary education. Support covers basic competencies such as mathematics, reading comprehension, effective study techniques, 25 UNIMINUTO General Administrative and Financial Vice Rectory. 26 UNIMINUTO Development Plan, pg 100. 27 UNIMINUTO Report to IFC – July 2014. The methodology used by the Ministry of Education and UNIMINUTO is based on the percent of students that dropped out after one semester. Education Within Reach of All | 15 career management, planning for life and other aspects that contribute to academic success.28 Further, UNIMINUTO provides psychological counseling to students who need extra support in balancing their academic pursuits and managing domestic challenges at home. UNIMINUTO’s unique business model has given the university a competitive advantage that is essentially unchallenged in terms of geographic reach, scale, relevant courses, quality and cost. As a result of UNIMINUTO’s pioneering activities, it has established a first-mover advantage and has captured a significant share of the untapped market. Although they face strong competition from other institutions in many places, they welcome it and have supported the expansion activities of other Universities in the region (Cali and Popayán). Nevertheless, the reality is that there is little significant competition in many regions. While they have successfully cornered the market for providing education to the base of the pyramid, the hope is that other institutions will see similar potential opportunities in providing education to marginalized communities. 28  Regionalization in UNIMINUTO. Headquarters, Regional Centers and CERES. 2012. 16 | Education Within Reach of All 18 | Education Within Reach of All Impressive Growth: The Business Trajectory and Key Milestones In the early years, between 1992 and 2000, UNIMINUTO was in an “incubation period” and was focused on establishing the young university that started with 220 students in the small Minute of God neighborhood in the outskirts of Bogota. During its first eight years of operations, average annual growth was a moderate 194 new students. During this period, UNIMINUTO began piloting the technical and technological programs at the regional level and began to experiment with what would later become the distance program. It went on to launch the regional program with the opening of three regional campuses. The last 13 years have marked a period of extraordinarily rapid growth for UNIMINUTO. Between 2001 and 2014, there were three major growth periods that represented a total growth of nearly one hundred thousand new students. The three periods can be separated by key milestones that contributed to the rapid growth: (1) “the foundational period” occurred between 2001–2004 when student Mercedes, a student attending enrollment grew by an average of 1,432 students per year; (2) “the classes at a CERES campus, expansion and consolidation period” occurred between 2005–2010 is conducting research on when student enrollment grew by an average of 5,757 students per medicinal plants used by year; and (3) “the sustainable maturity period” occurred between indigenous peoples to reclaim 2011–2014 when growth was exceptional, averaging 15,000 new lost ancestral knowledge students per year. (See Annex 1). This exponential growth trajectory and pass it on to future exceeded IFC’s most optimistic forecasts as well. generations. During the “foundational period” (2001–2004) two milestones established a solid basis for future growth: (1) the establishment of the Co-operative for short term loans and (2) the launch of regional CERES campuses, which complemented UNIMINUTO’s regional campuses. CERES are federally sponsored education centers in the regions that are operated by different universities. The program was launched by the Ministry of Education for promoting access to underserved regions, expanding coverage and improving equality. UNIMINUTO became a partner with the Government in supporting the implementation of tertiary education programs in the country. The “expansion and consolidation period” (2005–2010) was characterized by: (1) the opening of three regional campuses and operations centers, (2) the high quality accreditation for several of its programs, (3) the formal launch of the Virtual and Distance unit, (4) the approval of the US$ 8 million IFC loan to expand the physical infrastructure at three campuses, improve technology and quality and (5) the formal transformation into a multi-campus university system. A major administrative reorganization took place to manage Education Within Reach of All | 19 rapid growth, thus ensuring that high quality standards were maintained consistently across the network and that services would be delivered consistently and efficiently. This was also complemented in March 2008 with the re-launch of the government long term student loans program (ICETEX).29 The third major growth era, “the sustainable maturity period” (2011–2014) was characterized by the following milestones: (1) a change of leadership as Mr. Leonidas Lopez Herrán was appointed Rector General, (2) six operations centers were opened, (3) the virtual and distance program grew rapidly (by the first half of 2014, 58 percent of the student population was enrolled in distance programs), (4) the pilot for replication of their educational model in West Africa was launched, (5) the application for high quality institutional accreditation was submitted to the Ministry of Education, and (6) UNIMINUTO was recognized internationally for its efforts on inclusion. The University won five awards: IFC Inclusive Business Leader Award (2011, 2012 and 2013), G20 and IFC Winner G20 Challenge on Inclusive Business Innovation (2012) and Financial Times and IFC Sustainable Finance for Achievement in Inclusive Business (2013). The transformation that UNIMINUTO experienced with its record breaking growth during the 22 year trajectory, allowed it to morph itself from a small neighborhood college to a major, multi-campus university system that has enabled it to become the largest university in Colombia today and allows it to provide opportunities for those who never had them before. The Colombian Institute for Higher Education and Technical Studies Abroad (“ICETEX”) is the government agency that provides medium to long term 29  student loans. They received a US$300 million loan from the World Bank. 20 | Education Within Reach of All 22 | Education Within Reach of All Focus on Selected Innovations that Laid the Foundations for Impressive Growth 1. THE EDUCATIONAL MODEL: VALUES-BASED TERTIARY EDUCATION A hallmark of Father García-Herreros’ philosophy, UNIMINUTO adopted a “praxeological” education model that seeks the integral, comprehensive formation of the person that ensures the harmonious development of all dimensions of the individual. This is achieved by integrating theory and “praxis,”30 or action, so that each student can become a well-rounded individual ready to contribute to Colombian society.31 The foundations of this design are threefold: human development, social responsibility and professional competencies. These three focal points stimulate the process of personal fulfillment, cognitive development and permanent learning.32 (See Figure 3) Unlike many traditional brick and mortar institutions that focus predominantly on the development of professional competencies, UNIMINUTO focuses on the student as a whole, leading to a more profound, lifelong impact. FIGURE 3.  UNIMINUTO EDUCATIONAL MODEL Professional Main focus of traditional, bricks and mortar institutions Competencies Cognitive Research Process Process Comprehensive Students Human Development Human Social This is where the spiritual Development Process of Personal Fulfillment Responsibility footprint of Uniminuto is relevant Source: UNIMINUTO and IFC MAS Knowledge Forum. With the aim of carefully molding a new, values based Colombian society, UNIMINUTO established three innovative programs: (1) “Cátedra Minuto de Dios,” (“Minute of God Professorship”) that trains faculty and employees on UNIMINUTO values and methods, (2) “Leadership with Values,” and (3) “Life Project” that helps students chart a course of life goals that are both career and personally oriented, which they prepare during their first year.  It has a heavy emphasis on social responsibility. A second element of cultivating a society with strong values emanates from the emphasis on community service. With a view towards contributing to a lasting and stable peace, UNIMINUTO sought to form active citizens 30 Praxis is the application or use of knowledge and skills. 31 http://www.uniminuto.edu/modelo-educativo1. 32 Id. Education Within Reach of All | 23 through service. This concept of service to the community became a focal point of the UNIMINUTO educational model and students Community service also in all programs, including technical and technological, participate provides hands on learning in a mandatory “learning based on service” program for 16 weeks of community service. opportunities. Students engage with less fortunate communities in activities related to their fields of study, which are part of a long term organized service that is sponsored by the University. For example, under the guidance of their professors, civil engineering students will provide on-site electrical and plumbing services to low income households. Psychology or social work students collaborate with primary schools to provide support to children encountering domestic violence. In the spirit of providing flexible access, UNIMINUTO utilizes a “blended learning model.” The University leverages technology through the distance program such that students that work part time or have family obligations can take virtual courses at off-hours. They combine these virtual classes with face to face lessons scheduled around work commitments—in the evenings and on weekends. This allows students to experience the collaborative atmosphere of the classroom and receive support from professors, yet take advantage of technology to maximize their work, study and family time. In contrast, traditional universities prefer to do business in large cities, where it is easier to reach a greater number of students, establish infrastructure, hire adequate faculty and establish their brand. 2. INNOVATIVE FINANCIAL SCHEMES During the foundational period, students had been pressuring the Rector General for some time for help with financial aid. In response, UNIMINUTO approached Banco Caja Social, a local commercial bank that donated US$ 44,86033 of bad debts in their portfolio. UNIMINUTO established a mini call-center for collecting the bad debts. The University employed the students Students can access part time and they were able to recover 50 percent of the outstanding up to the full value of debt that was used to jump start the endowment of the UNIMINUTO tuition per semester from Cooperative (COOP-UNIMINUTO). This was a creative approach to fund raising and created job opportunities. COOP-UNIMINUTO COOP-UNIMINUTO is a separate legal entity from the University. With funding from its own resources, UNIMINUTO and the Government, COOP-UNIMINUTO provides student loans as well as personal finance loans to members. Members can be students, family members or faculty. Students can access up to the full value of the tuition per semester with a repayment period of six months for undergraduate programs and 12 months for post graduate programs at low interest rates. Students may make monthly payments on their tuition loan while they are enrolled in school. 33  The donation was COP$100 million. The exchange rate on December 31, 2000 was 2,229.18. 34  UNIMINUTO Cooperative. Annual Report 2013. XIII General Regular Assembly. Bogota. 20 March 2014. Pg 8. 24 | Education Within Reach of All By year end 2013, COOP-UNIMINUTO had a base of 56,105 associates and a physical presence in 65 locations across the nation. 2013 was the best year on record during which COOP-UNIMINUTO extended over 11 thousand loans, valued at US$4.5 million34 per semester, or an average loan of US$500 per semester per member, equivalent to nearly half the semester tuition fees. 3. INSTITUTIONAL EFFICIENCIES With a multi-campus model that manages 56 sites across the nation, ensuring the consistent application of the educational model is of critical importance to maintain high quality and protect the reputation of the brand. Notwithstanding the location, whether a small village on the Amazon or the main campus, students can be assured that the consistent quality of the educational program is maintained. National coverage with a regional emphasis is achieved through a bi-directional hub and spoke model. Inputs were received from hundreds of stakeholders across the entire university system, through a consultative process that included local communities and partners. The process culminated in the Development Plan 2013–2019. The “General Rectory” then centralized strategy definition, policy making and curriculum development and pushed it out to the regions, providing support with implementation. The “Rectories and Vice Rectories” were responsible for local implementation. Through this model, professors have sufficient autonomy to respond to local needs, with the backing of the institution. “Integrated services” provides cross cutting back office support to the entire university system in 3 areas: academics, finance and administration and the pastoral mission. At UNIMINUTO “Comprehensive Quality” encompasses: talent management, academic excellence, quality in administration and, a vocational call for serving others. The focus of the talent management prong is to consolidate a cadre of highly qualified faculty and employees that are committed to the mission. The second prong, academic excellence is focused on obtaining program and institutional accreditation, curriculum standardization, pleasant teaching environment and better integration of technology. The third prong, quality in administration ensures quality management through implementation of ISO 9001 certified processes and greater efficiencies in information systems (SAP, Banner).  The fourth prong, responds to the mission driven mandate for service to the community of UNIMINUTO that inspires and embeds all of the institutional activity (it includes but goes beyond client service). FIGURE 4. COMPREHENSIVE QUALITY AT UNIMINUTO Development Plan Comprehensive Quality includes: i. Talent Management ii. Academic Excellence Client Self regulation iii. Administrative Excellence Services Self evaluation iv. A vocation of service Comprehensive Quality It is implemented through 5 key initatives that UNIMINUTO is pursuing. Comprehensive Human Quality Development Processes Source: UNIMINUTO. Education Within Reach of All | 25 4. REGIONALIZATION, DIVERSIFICATION OF THE ACADEMIC OFFER AND RELEVANCE TO EMPLOYERS Andrés, an agricultural To avoid a massive displacement of human capital from rural areas to business administrator, cities and to assure the socio-economic viability of those populations, recounts: “UNIMINUTO UNIMINUTO wanted to bring superior education to the regions gave us the chance to study of Colombia. UNIMINUTO began piloting regionalization in 1998 with the opening of the Bello campus with 67 students. The regional during the weekends. The program began to grow organically responding to requests from University has been very community leaders. open to us helping with the academic program, offering Through the regional work, it became apparent that it was not feasible specializations, providing for all students to pursue professional degrees, given limited financial the scientific backing and means, need for employment and family obligations; however, students still sought training to become more competitive. UNIMINUTO giving us the ability to needed to offer courses that were relevant for employers and in make flexible payment demand in the labor market. This led to three new programs: (1) the arrangements.” diversification of the educational offer to include 2–3 year technical and technological programs as a first level of competency, (2) the “Education for Employment,” program in partnership with the coffee, rice and banana agricultural associations, and (3) the Virtual and Distance program. The Education for Employment program, supported by the national and local government, is a key value proposition that distinguishes UNIMINUTO from other universities since it designs courses, in partnership with productive sector associations that are relevant to the hiring needs of the local community, thereby addressing the skills gap upfront. The associations were so pleased to be approached that they continue to contribute enthusiastically to the technical curriculum development through a joint committee comprised of local sector specialists, who have expertise in production techniques and technology and are up to date on future trends and UNIMINUTO staff, who provide the baseline curriculum that is common across many sectors and is then tailored to specific industry needs. (See Annex 2). The result is a win-win solution: employers know that students are getting training in specific areas that are in demand and students are employable with higher caliber skill sets that are more directly relevant to the needs of the market. This approach makes it easier and faster to place UNIMINUTO graduates in jobs. The growth of UNIMINUTO’s regional program is notable. By mid-2014, 85 percent of the student population was located in the regions. Students were enrolled in a diverse range of 72 programs out of the 111 programs offered by the University. Regional students participated in 38 different technical and technological programs of 26 | Education Within Reach of All which 8 were offered through distance modality. Three of these courses have achieved high quality accreditation. By 2014, UNIMINUTO operated 32 CERES, 7 of which have been recognized and accredited by the Ministry of Education for excellence. In 2014, 64 percent of graduating students were from the regions. Table 2 provides additional information on the breakdown of the academic program by delivery channel. TABLE 2. ENROLLED STUDENTS BY DELIVERY CHANNEL 2014–1st Semester Program Face to Face Distance Traditional Distance Virtual Total Technical Professional 251 251 Technological 7,392 339 110 7,841 Undergraduate 25,860 52,959 78,819 Specialization 207 2,338 33 2,578 Masters 12 302 314 Continuing Education 2,971 2,971 High School/“Articulación” 9,240 9,240 Total 36,693 55,636 9,685 102,014 Source: UNIMINUTO. Dec 2014. 5. THE SOCIAL INNOVATION SCIENTIFIC PARK The ability to conduct cutting edge research often defines a University but this is not the reason why UNIMINUTO opened the doors to the Social Innovation Scientific Park. Rather, their mission was to find concrete solutions to global problems that frequently have a disproportionate and devastating impact on the population at the base of the pyramid. The Social Innovation Scientific Park was launched in 2012 and is focused on three key areas of research: (1) peace, conflict and the social dynamic, (2) environmental habitat and agro-ecology, and (3) technology, education and culture. The Park consolidates the experience of all the entities of the Minute of God Organization, private sector and government partners, as well as through international alliances to provide 5 services: (1) a platform for investigation for social innovation, (2) an incubator for social innovation projects directly in communities, (3) an observatory that monitors and analyzes social needs, (4) a community of practice network, and (5) an agent of dissemination. The park shares costs with external sources of funding and between 2012 and 2014, 11 projects have been funded that are valued at US$10.2 million. Education Within Reach of All | 27 28 | Education Within Reach of All The Role of IFC By 2005, enrollment had reached 11,573 students. The pace of growth was unsustainable without additional measures to expand UNIMINUTO complements infrastructure thus external financing was necessary. At a conference in Peru where then Rector General Father Camilo Bernal was a classroom lectures with on speaker, he met Mr. Luis Funcia, a regional representative of IFC. the job training to bridge Interest was strong on both sides but the opportunity was not yet the skills gap and facilitate financially ripe. Recovering from the financial crisis and growing rapid employment. simultaneously had strained UNIMINUTO’s retained earnings that reached a low of 0.6 percent in 2003. The University adopted a strict financial regime and retained earnings grew to 6.6 percent in 2007. They were now ready for the IFC due diligence process and the loan. By 2008, IFC was keen to do business with UNIMINUTO as it shared a similar developmental ethos that was consistent with IFC priorities in education such as: (1) widening access to quality education to underserved communities in frontier regions, (2) facilitating access through affordable tuition fees complemented by a robust financial support system, and (3) preparing students with relevant skills that were in demand in the local marketplace in order to facilitate rapid employment upon graduation. The IFC team saw the many strengths in UNIMINUTO such as: attractive long term growth potential, a successful and scalable business model, with stable margins and focused on the BoP, effective and dedicated professional leadership with vision, planning and proven execution capacity, highly committed sponsors, buy-in from key partners ranging from governments at all levels to the business community and close alignment with public policy and long-term national development goals. All these factors contributed to the approval of the loan. The purpose of the loan was to expand the physical infrastructure to increase student capacity in three key locations: Bogota, Soacha and Girardot, upgrade technology infrastructure and reinforce quality and efficiency throughout the system. An US$8 million loan was approved in May 2009 and disbursed in local currency on Christmas Eve. Even before UNIMINUTO became a client, IFC imparted value to the prospective client, providing guidance on how to reinforce financial discipline and improve its long term financial strategy and sustainability. As UNIMINUTO became a client, IFC brought additional value to the client by helping to improve the quality and management of Environmental and Social impacts during the construction of the educational facilities and providing guidance in Education Within Reach of All | 29 improving insurance coverage. UNIMINUTO went on to adopt these standards in the construction of additional sites. IFC’s investment UNIMINUTO is transferring enabled catalytic growth and soon after the expansion was completed, its educational model to student enrollment skyrocketed beyond all expectations. students in Africa. UNIMINUTO’s relationship with IFC is strategically important for them, far beyond the transactional aspects of the loan agreement. The financial position is sufficiently strong such that it could completely prepay the loan back to IFC at any time but maintaining the relationship with IFC is a key seal of approval, a type of “financial accreditation.”35 UNIMINUTO is currently leveraging IFC advisory services to implement an “Evaluation to Measure the Impact of Affordable Higher Education on Graduates from UNIMINUTO—A Pilot”. The objectives of the evaluation are two-fold: (i) to assess the impacts on the quality of life and well-being of their graduates, and (ii) to gather evidence to improve their service delivery. The international recognition UNIMINUTO gained by being showcased as recipients of several IFC, G20 and Financial Times awards has positioned UNIMINUTO as a strategic partner for development. 36 In the first effort to replicate UNIMINUTO’s model internationally, IFC has provided advisory support with a feasibility study for initial expansion efforts beginning in Côte d’Ivoire and Benin. The first cohort of students is targeted between late 2015 and early 2016. This opportunity will provide valuable experience on how to continue expanding and replicating the model internationally. 35  UNIMINUTO: Comprehensive Education within Reach of All. (Commemorative 20 year anniversary book). pg 58. 36  Statistical Memories 2013, pg 14. 30 | Education Within Reach of All 32 | Education Within Reach of All The Future for UNIMINUTO To achieve the goals established in the Development Plan 2013–201937 (emphasizing quality, community development, coverage, sustainability, social innovation and internationalization) and following the guidelines established by the Ministry of Education, UNIMINUTO formally launched the process of seeking institutional accreditation in 2011. Building a culture of excellence has required the collective team effort of administrators, professors, students, families, employers and peer university evaluators. The process of achieving institutional accreditation involved the entire university community, 5,000 employees strong, to adopt a culture of excellence focused on providing comprehensive quality. This process is expected to conclude in 2015 and UNIMINUTO will be accredited by the Ministry of Education as a “top quality” institution that covers all its locations and program offerings. The “MEGA” of the Development Plan is as follows: “By 2019, UNIMINUTO is recognized nationally and internationally, as an institution of tertiary education, 37  which through its educational model that it’s inspired by Christian humanism, forms robust persons who are competent professionals and entrepreneurs that are open to finding God and the service of humankind, who contribute to the development of their communities and an equitable society. UNIMINUTO is characterized as an inclusive and sustainable institution, supported by a culture of high quality, with a broad educational offer and a relevant educational program, wide geographical coverage, easy access, new technologies, that promotes social innovation and cooperation initiatives for development.” Education Within Reach of All | 33 34 | Education Within Reach of All Replicability in Other Markets How can others replicate the successes of UNIMINUTO such that the base of the pyramid can be impacted globally and exponentially? The UNIMINUTO experience would suggest several tips as highlighted in Table 5 below. TABLE 5. UNIMINUTO REPLICABILITY TIPS IN A NUTSHELL Mission • Include in the organizational mission a philosophy that supports comprehensive human development, inclusive of high academic standards, values and social responsibility that pro- vides “educational inclusion” for the base of the pyramid. • Seek to transform people’s lives from less to more dignified conditions. • Remain committed to the mission. Leadership • Recruit leaders with entrepreneurial spirits who are driven by the social and academic mis- sion to transform lives of the BoP, who have outstanding capabilities in terms of leadership, vision, ethics and general management skills to implement goals, while inspiring others to buy-into the mission. Educational • Adopt a comprehensive educational model that molds students for life. Model • Provide opportunities to put theory into practice (praxeology). • Diversify the academic offer for all levels of academic formation. • Go to where the students are and leverage distance programs, especially in locations where the student population has not had access. • Work closely with communities as co-creators of social solutions. • Make the educational offer relevant to the local labor market and address the skills gap so that students are quickly employable and can make a rapid return on their academic invest- ment. • Establish an effective retention program that provides academic and psychological support to students to prevent drop outs. • Consider research for development as a tool to overcome poverty, addressing sustainable human and social development and social innovation. Partnerships • View partnerships with government, the business community and academic institutions as an essential component to achieve organizational goals. • Build partnerships with all levels of government. • Work with the federal government to design strategies and implement policies that improve access to tertiary education for underserved communities in distant locations. Partner with the government to strengthen student loan programs. • At the state and local level, partner with governments to leverage space sharing arrange- ments with local schools to use existing classroom and help upgrade technological infra- structure. • At the local level, leverage partnerships with the business community and industry asso- ciations to manage the skills gap by identifying employer’s needs and reverse engineer the curriculum content to meet that demand. Ensure alignment of technical and technological programs with the labor market to facilitate rapid insertion into the workforce. • Formalize partnerships with organizations to provide students with practical, hands on, experiential learning opportunities that provides real world job experience in the students’ specific area of study. • Barter with sister universities locally and internationally for post-graduate degrees in order to raise the caliber of faculty credentials at discounted rates. In exchange, offer other incen- tive opportunities. (continued on next page) Education Within Reach of All | 35 TABLE 5. UNIMINUTO REPLICABILITY TIPS IN A NUTSHELL (continued) Financial Aid • Make tuition costs affordable and tailor made for local communities such that lifting stu- “Cooperative” dents out of poverty can become a reality. • Provide a variable mix of financial support schemes to pay for it. • Keep to the social inclusion mission and offer student loans in locations where banks don’t. • Open membership to the entire university community such as: students, employees, gradu- ates, strategic partners and volunteers. Volume will generate seed capital through minimal membership fees. • Provide financing for short term loans with tenures linked to each semester of study. Charge competitive interest rates. • Students can opt to pre-pay without penalty based on a monthly payment plan or can pay the loan off at the end of the semester. • Consider aligning repayment periods with employer payroll and bonus cycles. • Establish efficient processes and leverage technology to facilitate delivery. Consider mobile payment platforms to facilitate student payments. • Ensure a local presence at each campus location. • Consider that a student loan may be the first step towards financial inclusion and that a Cooperative has a role to play in facilitating financial literacy. • Provide financial education and counseling to students and to help them make informed decisions. • Help students navigate and evaluate the different types of credit available from cooperative resources, university resources, federally funded and third party sources. Play the role of loan processor that helps students to file loan applications and act as a depository of student information for third parties. • Deploy a robust, multi-channel marketing plan. • Aim to be the first choice in student loans. Enabling • Support the government in establishing an enabling environment conducive to reaching the Environment BoP, such that the obligation to develop equitable access to tertiary education as provided under The United Nations International Covenant on Economic, Social and Cultural Rights can be made a reality. • Support the government strategy to implement expansion coverage. • Support mechanisms for non-traditional methods of learning. • Certify high quality accreditation and make it applicable across campuses. • Support government sponsored and private sector student financing schemes. • Leverage the Ministry of Education to facilitate private-public partnerships. Quality • Build a culture of excellence. • Enlist the support of the entire community in achieving high quality academic programs. • Work towards institutional accreditation. • Implement a Professor Development Plan with clear goals. Identify the type of profiles the institution needs as well as the corresponding financial resources necessary to attend to a diverse range of academic programs with different types, levels, and delivery channels. The Plan should also respond to a wide range of productive sector needs in the different regions. • Implement a client service model that facilitates all services to students, professors, collabo- rators, graduates and other stakeholders. • Develop a clear road map with a strategic plan that establishes an implementation plan, is measurable and provides for accountability. • Work towards maintaining quality certifications, (i.e. ISO) and increasing the number of processes to be certified. Financial • Plan for Financial Sustainability. Sustainability • For the institution: Address pent up demand, practice financial discipline and leverage inter- national cooperation resources. • For faculty and administration. Faculty will buy into the social mission but compensation should be attractive to retain quality. • Include other forms of compensation such as skills development. Infrastructure • Build some, borrow some. • Invest in technology and connectivity. 36 | Education Within Reach of All 38 | Education Within Reach of All Conclusion The UNIMINUTO experience proves it is possible to provide high quality education to the base of the pyramid in a way that is financially UNIMINUTO graduates sustainable, has a positive social impact and leads to jobs. For nearly 102,000 students, UNIMINUTO provides not only a path are prepared to be ethical, out of poverty but a strategy for improved wealth generation for productive, service- themselves and their offspring, an enriched career and a sense of oriented members of personal pride in giving back to the community. Colombian society. Father Rafael García Herrero’s dream of establishing a University that would provide a new direction to the country is becoming a reality. Throughout its history, UNIMINUTO has reached the most vulnerable and remote communities, empowering students to transform their own destiny. Through its social inclusion philosophy the University has been able to change lives of thousands of students and contribute to social and economic progress in Colombia.38 38  UNIMINUTO: Cambiando Vidas. https://www.youtube.com/watch?v=ScPInXGRF1E. Education Within Reach of All | 39 40 | Education Within Reach of All Questions for Discussion 1. Bringing last mile services such as education, utilities or health to rural areas has always been a challenge for governments and Students learning the private sector. How can the UNIMINUTO model inspire other universities to provide greater access to the Base of the photoshop. Pyramid? What role can governments and the private sector play in facilitating access to tertiary education for the BoP? 2. The UNIMINUTO educational model is broader than that of a traditional university in that it places a heavy emphasis on ethics and values. How can traditional, secular institutions that focus on professional competencies adopt this model? 3. By law, all institutions of tertiary education in Colombia may only incorporate as non-profit organizations. What different outcomes could be expected if UNIMINUTO was a for-profit entity? How would for profit status impact the University’s value proposition and mission? 4. Through its affiliation with the Minute of God organizations, UNIMINUTO has been able to place students in situations where they can gain practical experience, thus bringing additional relevance and a greater depth of skills, knowledge and experience to the academic experience. This is done at a low cost to the University with the added advantage of having a social impact. How can other institutions that are not a part of such a broad network provide opportunities to gain job experience and serve the community at the same time? 5. UNIMINUTO does not set formal targets on the number of students that it seeks to enroll nor for geographic expansion, but rather it sets higher, mission driven goals, as found in the Development Plan 2013–2019 that in turn result in higher enrollment. It is a type of “if you build it they will come” model. Is this strategy a useful model that can be replicated? What are the risks of such a model? 6. UNIMINUTO has been very successful at attracting students. Even though the drop-out rate is below the national average, what else could UNIMINUTO do to help students graduate and achieve their professional aspirations? 7. As the peace talks lead to a new era in Colombia, former guerrilla members and para militaries will need to be economically integrated into Colombian society. What role can UNIMINUTO play in retraining them for new employment possibilities and helping them become productive members of society? 8. Even though enrolling female students is an International Development Goal (IDG), access to education is a universal right for males and females alike. Should IDG’s promote access for one gender over the other when both are living in marginalized conditions? Would your opinion change if those same women become victims of domestic violence because the male spouse is unemployed? The top 10 most popular academic programs at Education Within Reach of All | 41 UNIMINUTO, with the breakdown by gender are found in Table 6. How can UNIMINUTO promote access for both genders? RANKING OF THE TOP 10 PROGRAMS IN GREATEST DEMAND BY COURSE, TABLE 6.  BY GENDER – SECOND SEMESTER 2014 Top 10 – Most popular courses for female students No. Academic Course Female 1 Occupational Health Administration 17.7% 2 Degree in Childhood Education 14.7% 3 Psychology – Distance 12.1% 4 Business Administration – Distance 7.0% 5 Public Accounting 7.0% 6 Social work 4.7% 7 Psychology 4.3% 8 Technical and Technological Programsa 4.0% 9 Financial Management – Distance 3.9% 10 Business Administration 3.2% 78.6% Top 10 – Most popular courses for male students No. Academic Course Male 1 Technical and Technological Programs a 13.7% 2 Occupational Health Administration 13.1% 3 Business Administration – Distance 9.8% 4 Business Administration 5.6% 5 Civil Engineering 5.3% 6 Public Accounting 5.1% 7 Psychology – Distance 4.9% 8 Bachelor of Physical Education Recreation and Sports 4.1% 9 Social Communication – Journalism 4.0% 10 Technology in Logistics 3.9% 69.5% a Technical and Technological Programs including: technological programs in marketing management, graphic communication, costs and audit, logistics, and specific technical programs in Business Process Outsourcing (BPO), construction and agricultural productive sectors such as coffee, rice and banana comprise the majority of this line item. 42 | Education Within Reach of All 9. It has been challenging for COOP-UNIMINUTO to keep up with the rapid pace of growth at UNIMINUTO and the five institutions of tertiary education it services. In 2003, with a population of 7,000 enrolled students it was able to provide student loans to nearly 60 percent of students but by 2013, with a multi-university population of 186,87439 students the percentage of students they were able to service decreased to 38 percent. (See Figure 5) How can Coop-UNIMINUTO keep up with the pace of growth? Would becoming a savings and credit co-operative, a credit union or a deposit taking financial institution help? Could it get financing from other sources? What models would preserve the ability to continue to provide low cost loans to the base of the pyramid? FIGURE 5.  COOP-UNIMINUTO – COVERAGE OF EDUCATIONAL LOANS FOR ALL SIX PARTNER INSTITUTIONS (2003–2013) 200,000 70% 59% 60% 53% 150,000 49% 52% 50% 39% 39% 40% 39% 38% 38% 40% 100,000 37% 30% 20% 50,000 10% 0 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Nro. estudiantes Nro. Créditos % Cobertura Number of loans extended by Year Number of enrolled studentsa the cooperative Percent of coverage 2003 6,912 4,054 59% 2004 16,211 6,032 37% 2005 20,381 9,921 49% 2006 27,671 14,614 53% 2007 36,467 18,895 52% 2008 63,378 24,836 39% 2009 79,946 31,008 39% 2010 102,386 40,603 40% a UNIMINUTO has a service agreement: UNIMINUTO, Data includes all forms of credit for students enrolled in all six institutions of tertiary education with which the COOP-­ Universidad Tecnológica de Bolívar (UTB), Universidad Autónoma de Bucaramanga (UNAB), Fundación Universitaria de Popayan (FUP), Fundación Universitaria Católica Lumen Gentium, Unicatólica y Corporación Politécnico Regional de Educación Superior Ceres Lérida (CPRES). This figure represents the sum total of enrollment for all six institutions of tertiary education with which the COOP-UNIMINUTO has a service 39  agreement: UNIMINUTO, Universidad Tecnológica de Bolívar (UTB), Universidad Autónoma de Bucaramanga (UNAB), Fundación Universitaria de Popayán (FUP), Fundación Universitaria Católica Lumen Gentium, Unicatólica y Corporación Politécnico Regional de Educación Superior Ceres Lérida (CPRES). Education Within Reach of All | 43 44 | Education Within Reach of All Annexes ANNEX 1. KEY MILESTONES AND IMPACT ON STUDENT ENROLLMENT Raw Net Percent of Student Change Distance Year Milestone Population YOY Students 1992 • UM begins classes in Barrio de Dios in Bogota (Feb 22) 221 0 • Father Mario Hormaza, Director General • Father Rafael García Herreros passes away (Nov 24) 1993 684 463 1994 969 285 1995 1,215 246 1996 • First graduation 1,314 99 1997 • Father Camilo Bernal becomes Rector General 1,444 130 • 1st Strategic Planning meeting charts course 1998 • Open Bello Campus (marginalized communities of Me- 1,537 93 dellin) and Tolima with 67 students 1999 • Colombian economic crisis 1,507 (30) • Students withdrawing • New Financial Model Developed 2000 • Open Cundinamarca Campus 1,747 240 • Technical and Technological programs launched MAJOR GROWTH PERIOD #1 (average growth 1,432) 2001 • Cooperativa starts (financial aid) (with 39 students) 2,453 706 2002 • Bishop of Soacha makes request for campus 3,529 1,076 2003 • Launch CERES Partnership w/ MEN 5,580 2,051 2004 • Open Llanos Operation Center 7,477 1,897 MAJOR GROWTH PERIOD #2 (average growth 5,756) 2005 • Open Valle Campus and Bucaramanga Operations Cen- 11,573 4,096 4% ter • High quality accreditation obtained for journalism and business administration 2006 • Open S. Bogota Operations Center 15,978 4,405 5% • MEN launches program strengthening technical and technological (T&T) education to address regional pro- ductivity development (continued on next page) Education Within Reach of All | 45 ANNEX 1. KEY MILESTONES AND IMPACT ON STUDENT ENROLLMENT (continued) Raw Net Percent of Student Change Distance Year Milestone Population YOY Students 2007 • Reorganization (Establish Rectories and Regional 24,287 8,309 8% Centers. Decentralization model ensuring standardiza- tion and high quality through integrated services that provide support) • Obtained certification for T&T productive sector (dis- tance) programs, including coffee, rice, banana, and construction sectors. (2007–2010). 2008 • Create UM Virtual and Distance Unit 31,116 6,829 17% • World Bank approves US$300 million to ICETEX (student loans) (March 2008) • Global Financial Crisis (Oct 2008) • Development Plan: 2008–2012 2009 • Consolidate Integrated Services 36,558 5,442 32% • IFC – US$8 million loan approved (Bogota, Soacha, Gi- rardot), technology infrastructure upgrades and institu- tional strengthening and professional development • Disbursement Dec 24 2010 42,014 5,456 38% MAJOR GROWTH PERIOD #3 (average growth 15,000) 2011 • Leonidas López Herrán, Rector General 52,433 10,419 44% • Open 4 Operations Centers: Barranquilla, Ibagué, Neiva and Cúcuta. • IFC: Inclusive Business Leader Award (Sept 2011) 2012 • Launch Institutional Accreditation process with Ministry 72,079 19,646 51% • Open Operations Center: Buga • G20 and IFC: Winner G20 Challenge on Inclusive Busi- ness Innovation (June 2012) • IFC: Inclusive Business Leader Award (Oct 2012) 2013 • Open Operations Center: Pasto 85,462 13,383 60% • Financial Times and IFC: Sustainable Finance Awards. Achievement in Inclusive Business (June 2013) • IFC: Inclusive Business Leader Award (Oct 2013) • Development Plan: 2013–2019 • Simón Bolívar Medal. Order of the Great Teachers to Father Diego Jaramillo 2014 • Replication of the educational model to West Africa is 102,014 16,552 58% commenced • Application for high quality institutional accreditation filed with the Ministry of Education 46 | Education Within Reach of All ANNEX 2. PRODUCTIVE SECTOR PROGRAMS AND LADDERIZATION OF THE CURRICULUM SAMPLE TECHNICAL PROFESSIONAL CERTIFICATE PROGRAMS CURRICULUM (2 YEARS) Technical Certificate: Technical Certificate: Technical Certificate: Coffee Production Coffee Trade Administrative Processes Quality Management in Development of the Administrative Manage- Coffee Production Logistics Chain of Coffee ment of the Coffee Farm • Obtaining the coffee Commercialization • Diagnostic of the coffee plant • Coffee storage farm • Coffee Plantation • Trading and marketabil- • Production planning establishment ity of coffee • Implementation of • Harvesting coffee fruit • Sensory analysis of Action Plans • Ecological benefit of coffee • Monitoring and control coffee • Sustainable quality of of coffee production. • Comprehensive man- coffee • Production evaluation agement of coffee • Evaluation of the physi- • Assessment of develop- diseases cal quality of coffee ment action plans UNIMINUTO’s Baseline curriculum on employment practices, research, entrepreneurship and social practices is common across many technical programs Human Development and Social Foundations for Understanding Productive Enterprise Develop- Responsibility Communications ment • Development of citizenship and • Communication in different situ- • Information technology in the values ations coffee sector • Planning for Life Project • Mathematics a tool for Manage- • Marketing in the coffee sector • Social Responsibility—a way of ment • Innovation and creativity in en- life • Natural Sciences in the coffee terprise development • Elective context • Identification and evaluation of business ideas • Structure of a business plan 3 Year Program in Sustainable Coffee Management (or 1 year following completion of the 2 year program) Administrative Manage- Human Development Foundations for Under- Productive Enterprise ment of the Coffee Farm and Social Responsibility standing Communica- Development • Administration of coffee • (in addition to 2 yr pro- tions • Macroeconomic analysis production gram) • Internal Business com- in the coffee context • Continuous improve- • Coffee: A Colombian munications • Information Technology ment of the quality of tradition • Communication in the in the coffee sector coffee international context • Marketing in the coffee • Commercialization • Environmental manage- sector process of Colombian ment • Accounting of opera- coffee • Statistical management tions • Business process of the business • Innovation and creativi- planning for the coffee • Math: A tool for man- ty in business ventures businesses. agement • Identification and evalu- • Implementation of • Natural sciences in the ation of business ideas management and coffee context • Structure of a business controls for the coffee • Resolution of problems plan business in the coffee context • Promotion and adoption • Sustainable manage- of technological ad- ment of natural re- vances sources. • Elective Source: UNIMINUTO and Santiago Descarrega. Education Within Reach of All | 47 48 | Education Within Reach of All Education Within Reach of All | 49 For more information about IFC’s investments in education please contact: Elena Sterlin Salah-Eddine Kandri Senior Global Manager Global Head of Education Health and Education E-mail: skandri@ifc.org Email: Esterlin@ifc.org Dubai, UAE Washington, D.C., USA www.ifc.org/education www.ifc.org/education 2121 Pennsylvania Ave. NW Washington, DC 20433 Tel. 1-202-473-1000 50 | Education Within Reach of All