Foreign Degree Programs in the Czech Republic

Jana Ruckerova

September 2011



Summary

Foreign degree programs have become very popular in the Czech Republic, with major focus on business and economics sectors. As MBA programs have been by far the most demanded, a large number of foreign schools introduced their programs in the Czech market, and the MBA market is currently very competitive. There are a few niche areas with good prospects for U.S. universities’ programs.

Although the offer of MBA courses is very wide, especially in Prague, the quality of the programs offered varies as reflected by the varied prices. Very liberal Czech system allowed a large number of foreign universities to introduce their programs to the Czech market to satisfy the huge demand in the late 1990s and early 2000s. As the rules for establishing the presence in the market were not strict enough, many foreign schools of variable quality and reputation entered the market. Until recently, employers seeking employees with MBA titles haven’t paid much attention to the type of school granting the titles. As the quality of some of the MBA programs offered on the market has been widely discussed recently, both students and employers are beginning to pay more attention to the name of the school granting the master title, its quality, and accreditation. As this tendency is expected to continue, and quality and reputation of the schools will be gaining more importance, this will create opportunities for top-quality university programs to enter the Czech market.

Another niche market is a focus on subjects other than business, administration, and economics, which have been the most demanded, by far. Recently, some schools have introduced other programs that proved to be successful, and the demand in these areas is expected to rise. Subjects of rising interest include, but are not limited to, humanities and social sciences, international relations and diplomacy, arts and culture, journalism, media, architecture, law, politics, public policy, environment, communication and public relations, psychology, and religion.

Although the foreign degree programs offer is broad in Prague, it is very limited in other regions of the Czech Republic. Opportunities exist in other tier one and tier two cities throughout the country, especially cities like Brno, Ostrava, Plzen, Olomouc, Hradec Kralove, and Ceske Budejovice.

Vast opportunities for U.S. degree programs exist via cooperation with Czech universities, introducing common programs, and study exchange programs, which are highly attractive.

Czech Republic also provides opportunities for U.S. schools to offer their foreign degree programs to European students.The Czech Republic attracts a growing number of university students from Central and Easter European countries, including Slovakia, Russia, Ukraine, and the Balkan states, for its proximity, language similarities, price afordability, and the quality of life.

Market Overview


A total of 37 foreign universities offer foreign degree programs in the Czech Republic through 33 institutions based in the country. The vast majority of the universities are of U.S. or U.K. origin, and together they account for 65% of universities in the Czech market. The Czech market size of foreign degree programs is estimated at 7,000 students, which represents 3.2% of the entire Czech university students and 25% of the Czech private university students. 64% of the students at the foreign degree programs in the Czech Republic are Czech citizens.

English is the standard second language in the Czech Republic and is taught in schools from the 3rd grade onwards. Approximately half of the Czech population speaks a foreign language. While younger people tend to speak English, there is widespread knowledge of German or Russian among the older generation. A recent government decision that will make English language study mandatory for primary school students should improve the ability of Czech students to study at U.S. universities and colleges. Currently 27% of all Czechs speak some level of English and 10% are reported to be fluent. The Czech Republic is the leader amongst Central European countries (and most of Eastern European as well) in the percentage of population speaking English as a foreign language, however, it still lags behind the Netherlands and the Scandinavian countries where over 50 percent of the population speaks English.

MBA programs experienced a boom starting in the year 2000. U.S. programs are seen as high quality and prestigious. They are, however, also viewed as being highly priced. Some employers used to offer MBA studies as part of their benefits package.

Market Data

The Czech Republic’s strategic location, well-developed infrastructure, and skilled labor force has allowed this small nation of 10.5 million citizens to “punch above its weight” and become an important regional and international manufacturing hub and consumer market.

Economic growth is largely based on inflows of FDI and growth in exports. With about 80% of GDP linked to export orders, particularly to Germany, the economic health of the Czech Republic relies heavily on the strength of its neighbors. After experiencing robust growth of 6% from 2005-7, the Czech Republic felt the impact of the global economic slowdown in 2009 as growth dropped to -4.2%. Though unemployment figures still hover around 9%, 2010 saw an economic rebound for the country as export orders of industrial goods to Western Europe increased, and GDP growth was reported as 2.5% in 2010 (Ministry of Finance). The most recent estimate for 2011 is 2.5%, which is expected to hold steady in 2012 (Ministry of Finance). However, the 2.5% growth estimates do not account for repeated announcements of tax increases and the unending news about the debt crisis in the EU.

Czech higher education has a long tradition lasting over six hundred years. In 1348, the Charles University in Prague was the first academic institution established in Central Europe. At present, there are many other highly prestigious public and private colleges and universities that prepare specialists in various fields. The Czech Republic is taking part in the Bologna Process. Most institutions have introduced credit systems compatible with the ECTS (European Credit Transfer System), and have adopted new degree structures to ensure the international comparability of degrees. The central governing body is the Ministry of Education, Youth and Sports. The quality of higher education is fostered by the Accreditation Commission.

Czech higher education institutions are divided into public, state and private institutions. Public and private higher education institutions come under the authority of the Ministry of Education, Youth and Sports, while state institutions are under the authority of the Ministry of Defence and the Ministry of the Interior.

In the Czech Republic there are:

26 public higher education institutions

2 state higher education institutions

45 private higher education institutions

389,231 students at higher education institutions

34,552 foreign students at higher education institutions

The Czech Republic attracts a growing number of university students from abroad. The range of programs delivered in foreign languages (mainly in English) is gradually expanding in order to cater to international students. The Czech Republic is very popular for students from Central and Easter European countries, including Slovakia, Russia, Ukraine, and the Balkan states, for its proximity, language similarities, price afordability, and the quality of life. This represents a big potential for U.S. schools to offer their foreign degree programs to European students.

The Czech Republic is in the top 10 destinations in Europe for U.S. students studying abroad, ranking in the 7th place after U.K., Italy, Spain, France, Germany, and Ireland. The number of U.S. students studying in the Czech Republic has been rising steadily, reaching 3,664 students in 2010, an increase of 7.2% from 2009.

Market Demand

Foreign degree English language programs for professional development are excellent to market in the Czech Republic as the demand for bilingual business professionals proficient in English is continually growing.

A degree from a U.S. institution is highly attractive to students in the Czech Republic as having a foreign university in the country lowers the costs and makes U.S. education more attainable to Czech students.

One-year study exchange programs are also highly attractive to Czech students. Partnering with local universities is a very effective way of entering the Czech market. The most common model of partnership is student exchange. U.S. universities should note that Czech universities might expect foreign schools to send a similar number of students to their school.

U.S. universities may also make use of the EU-funded Erasmus Mundus cooperation and mobility program. Erasmus Mundus Joint programs of outstanding academic quality are designed and implemented by a consortium of European universities from at least three different countries. Consortia may also include universities from other parts of the world, including the U.S. Scholarships are open to students and academics from all over the world.

Best Prospects

Foreign degree programs have become very popular in the Czech Republic, with major focus on business and economics sectors. As MBA programs have been by far the most demanded, a high number of foreign schools introduced their programs in the Czech market, and the MBA market is currently very competitive. There are a few niche areas with good prospects for U.S. universities’ programs.

Although the offer of MBA courses is very wide especially in Prague, the quality of the programs offered varies a lot, which is also reflected by the prices. The very liberal Czech system allowed high number of foreign universities to introduce their programs to the Czech market to satisfy the huge demand in the late 1990s and early 2000s. As the rules for establishing the presence in the market were not strict enough, many foreign schools of variable quality and reputation entered the market. Until recently, employers seeking employees with MBA titles haven’t paid much attention to the type of school granting the titles. As the quality of some of the MBA programs offered on the market has been widely discussed recently, both students and employers are beginning to pay more attention to the name of the school granting the master title, its quality, and accreditation. As this tendency is expected to continue, and quality and reputation of the schools will be gaining more importance, this will create opportunities for top-quality University programs to enter the Czech market.

Another niche market is a focus on subjects other than business, administration, and economics, which have been the most demanded, by far. Recently, some schools have introduced other programs that proved to be successful, and the demand in these areas is expected to rise. Subjects of rising interest include, but are not limited to, humanities and social sciences, international relations and diplomacy, arts and culture, journalism, media, architecture, law, politics, public policy, environment, communication and public relations, psychology, and religion.

Although the foreign degree programs offer is broad in Prague, it is very limited in other regions of the Czech Republic. Opportunities exist in other tier one and tier two cities throughout the country, especially cities like Brno, Ostrava, Plzen, Olomouc, Hradec Kralove, and Ceske Budejovice.

Vast opportunities for U.S. degree programs exist via cooperation with Czech universities, introducing common programs, and study exchange programs, which are highly attractive.

Key Suppliers

A total of 37 foreign universities offer foreign degree programs in the Czech Republic through 33 institutions based in the country. The vast majority of the universities are of U.S. or U.K. origin, and together they account for 65% of universities in the Czech market. 84% of foreign universities are from US, UK, and Wester Europe.

U.S. Universities in the Czech Republic

Anglo-American University (AAU)

Anglo-American University is the oldest private university in the Czech Republic, providing university education in English here since 1990.

The Master in business Administration (MBA) degree is awarded by Chapman University that carries WASC (Western Association of Schools and Colleges) institutional accreditation. The MBA program also carries the AACSB (Association to Advance Collegiate Schools of Business) professional accreditation. Moreover, the Anglo-American University, as an MBA provider, is a member of CAMBAS (Czech Association of MBA Schools).

AAU programs are also accredited by the Ministry of Education, Youth and Sports of the Czech Republic.

AAU provides undergraduate and graduate programs in Business Administration, Humanities & Social Sciences, International Relations & Diplomacy, Law, and Journalism.

www.aauni.edu

University of Pittsburgh

Pitt Business is made up of the Joseph M. Katz Graduate School of Business, the College of Business Administration which offers undergraduate business degrees, and five education and research centers.

Degree is awarded by Joseph M. Katz Graduate School of Business and College of Business Administration University of Pittsburgh

The University of Pittsburgh was one of 16 founding members of the Association to Advance Collegiate Schools of Business (AACSB). Pitt has been continuously accredited by the AACSB since 1919. The University of Pittsburgh ranks high in the international rankings, including 1st MBA overall for value for the money in the Financial Times (2009)

University of Pittsburgh offers undergraduate and graduate programs in Business Administration, Executive MBA, The Master of Science (MS) in Accounting, and PhD Program.

www.pitt.cz

University of New York in Prague (UNYP)

Degrees are granted by the University of Greenwich of U.K., and LaSalle University of the U.S.

The University of New York in Prague was founded in 1998. UNYP programs are accredited by the Czech Ministry of Education. UNYP is a member of AACSB.

UNYP offers undergraduate and graduate programs in Business administration, Master’s Degrees in International and Commercial Law, MA in European law and European Integration, MA in Clinical-Counselling Psychology, MA in Professional communications and Public Relations, and PhD by Publication.

www.unyp.cz

Prospective Buyers

The Czech market size of foreign degree programs is estimated at 7,000 students, which represents 3.2% of all Czech university students, and 25% of the Czech private university students. Sixty-four percent of students at foreign degree programs in the Czech Republic are Czech citizens.

Foreign degree programs offered in the Czech Republic attract a rising number of students from other European markets.

Market Entry

U.S. educational institutions wanting to enter the Czech market can do so either through a partnership with Czech universities, if aimed at an exchange agreement, and offer joint/double/multiple degrees taught by Czech institutions partnering foreign universities.

The Czech Republic has open access to foreign degree programs providers since 1990. MBA programs have no equivalent degree in the Czech higher education system. The activities of foreign degree programs providers are therefore not governed by the legal framework for Czech higher education as enacted by the Higher Education Act (111/1998). U.S. universities offering MBA programs can establish a subsidiary in the Czech market, and grant BMA titles that are issued by the U.S. university and do not match Czech degrees.

The U.S. Commercial Service offers a number of ways to help U.S. companies find business partners in the Czech market. These include setting up meetings with Czech companies interested in partnership, government officials and association representatives (Gold Key Service), due diligence on prospective partners (International Company Profile) and events to introduce new product lines to potential customers (Single Company Promotion). More information and contacts can be found at http://www.buyusa.gov/czechrepublic/en/

EducationUSA is a global network of State Department supported advising centers promoting U.S. higher education around the world by offering accurate, comprehensive, objective and timely information about education in the United States and guidance to qualified individuals on how to best access those opportunities. EducationUSA is represented in the Czech Republic by the Fulbright Commission.

Resources & Key Contacts

Ministry of Education, Youth and Sport – www.msmt.cz

House of Foreign Services under the Ministry of Education – www.dzs.cz

Fulbright Commission – www.fulbright.cz

Study in the Czech Republic – www.studyin.cz

National Agency for European Educations programs (including Erasmus Mundus)– www.naep.cz

National Academic Recognition Information Center (NARIC)– www.naric.cz

Czech Association of MBA Schools - www.cambas.cz

For More Information

The U.S. Commercial Service in Prague, Czech Republic can be contacted via e-mail at: Jana.Ruckerova@trade.gov; Phone: +420 257 022 310; Fax: +420 257 022 810 or visit our website:

www.export.gov/czechrepublic (en); www.buyusa.gov/czechrepublic (cz)

The U.S. Commercial Service – Your Global Business Partner
With its network of offices across the United States and in more than 80 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://www.export.gov/.

Disclaimer: The information provided in this report is intended to be of assistance to U.S. exporters. While we make every effort to ensure its accuracy, neither the United States government nor any of its employees make any representation as to the accuracy or completeness of information in this or any other United States government document. Readers are advised to independently verify any information prior to reliance thereon. The information provided in this report does not constitute legal advice.

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