Ailing Japanese economy affects SIU's Nakajo campus

CARBONDALE, Ill. --Southern Illinois University's operations in Nakajo, Japan, are feeling the pain of an ailing Japanese economy, SIU President Ted Sanders said Friday (Jan. 31).

"Quite simply, Japan's economy is in free fall," Sanders told reporters.

Poor economic conditions, led by drastic drops in real estate prices, have pushed the yen to its lowest level against the dollar in four years, Sanders said. Just since his visit in late September, the yen's worth has fallen 10 percent.

That means costs for the Japanese partners have risen 10 percent at a time when they already faced other serious economic problems.

"We are not throwing in the towel, but our negotiations have become very difficult for the contract year that begins May 16," Sanders said.

SIU learned just this week that Japanese banks will not lend the Pacific School Entity more money for short-term financing.

"We are looking hard for alternatives that will allow us to continue to do business, but recognize that changes may be necessary," Sanders said.

SIU has earned a reputation as an international powerhouse in higher education. For now, SIU expects to concentrate on efforts in the Pacific Rim--a center of economic growth and cultural activity. With that in mind, Sanders said ongoing negotiations to establish a Malaysian campus will continue.

SIU began offering classes in the small town of Nakajo on Japan's western coast nine years ago. The Japanese pay for the entire program--including $3 million to SIU this contract year. Not one Illinois tax dollar is used to deliver the program in Nakajo.

A new, $55 million, Japanese-owned campus opened about two years after classes started, and the partnership became a showcase on both sides of the Pacific.

Benefits have extended far beyond the classroom. Illinois and the Niigata prefecture have become closer trading partners, and exchanges of school children and teachers have broadened understanding between the two cultures. Official sister-city ties between Carbondale and Nakajo were established.

To date, more than 615 students have transferred to SIU's Carbondale campus after completing English studies and two years of undergraduate studies. Many have excelled, winning scholarships and academic honors.

Sanders said when the program began, Japanese students wanted to ease into American education so two years of undergraduate studies were provided on site.

"Today's students are more confident and want to come to this country sooner," Sanders said.

Regardless of what happens with the contract, Sanders says SIU remains committed to Japan.

"Our friendships extend far beyond legal contracts and will continue," Sanders said.

• Program opened on May 19, 1988, with English-as-a-second-language classes.
• Undergraduate curriculum geared up in August 1989.
• 618 students have transferred to American universities since the program began. All but three have transferred to SIUC.
• 333 of the transfer students had graduated by the end of summer 1996.
• Each semester about 15 American students go to Nakajo to study.
• The majority of students who come to Carbondale from Nakajo do excellent academic work. For example, of the 21 students from Nakajo currently enrolled in the School of Art and Design, 10 have a grade-point average of 3.0 or better.
• The Carbondale campus benefits directly from the Nakajo campus. Overhead recovery funds spent on this campus (about $17 for each student enrolled at Nakajo) benefit every student. Money buys equipment and funds various services and projects that help SIUC students campuswide.
• Students pay the the Pacific School Entity, which contracts with SIUC.
• Jared H. Dorn heads SIU's operation in Nakajo.
• 38 SIU employees work at the Nakajo campus, and 4 additional employees support the operation on the Carbondale campus.
• Classes are taught with American faculty whenever possible. So far, 200 faculty and staff have had temporary appointments in Japan.
• The late Charles B. Klasek, SIUC's former executive assistant to the chancellor for international and economic development, developed the initial exchange.
• Nakajo is a western, seaboard city, located northwest of Toyko.
• Nakajo is in the Niigata Prefecture (state). The prefecture helps fund the academic exchange.
• The campus, which includes an academic building, library, a residence hall and an auditorium, was dedicated in a two-language ceremony attended by Gov. James R. Thompson on April 13, 1990.
• In the 1980s, 32 universities (mostly American) set up academic programs in Japan. SIU and five others remain.

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