Editorial - 23-6

Canada's research-intensive universities are somewhat schizophrenic places these days. From a financial perspective, many have taken a pounding with the recession slicing billions off the books as endowments shrink in value. On the other hand, new money is set to flow onto campuses from coast to coast as the federal government moves quickly to dispense stimulus funding.

With $1.4 billion over two years (to be matched by the provinces), our universities' research infrastructure will be in significantly better shape than before. The government should be commended for getting the money into the system quickly. Whether it helps to attract those top-flight scientists everyone appears to be chasing is debatable, given the increasing concern over cuts to operating dollars.

University finances are another matter entirely although the impact of dwindling resources may not be as severe as some have predicted. Canadian universities are not the only ones sideswiped by the collapse of the markets. Institutions in the US and elsewhere have also watched their investments crumble and many — including some of the US Ivy League schools — have placed a freeze on hiring.

That may help to allay the fears of university officials over the potential for losing key research talent. Indeed, as one informed insider has noted, the hiring freeze south of the border may be the chief obstacle to a nasty eruption of brain drain.

The best course of action is for universities to wait out the recession and protect themselves as best they can. Unless the capitalist system as we know it collapses entirely, endowment values will return.