PROSPECTS

, 41:157 | Cite as

International trends in the public and private financing of higher education

Trends/Cases

Abstract

Beginning by analyzing the major qualitative and quantitative changes in higher education around the world, this article examines international trends in their financial implications. It then demonstrates the state’s inability to bear the entire rising financial burden, and explores the role of self-financing, and of the non-profit and for-profit private sectors, in sharing the enrolment and the cost burden. Examples of cost-sharing from around the world are given, with an analysis of the complexities and ambiguities of the meanings of public and private in reference to financing higher educational institutions. A discussion of private–public partnerships follows, and of the role that non-profit and for-profit cross-border higher education plays in financing. The conclusion offers eight policy themes for coping with the underlying situation of financial strategy and the simultaneous need to supplement scarce public revenues with private revenues, meanwhile increasing access to and participation in higher education for those not yet benefiting from it.

Keywords

Higher education finance Resource allocation Cost sharing Private higher education Privatization of public higher education Cross-border higher education Student financial assistance 

References

  1. Arimoto, A. (2006). Structure and functions of financing Asian higher education. In Global University Network for Innovation (GUNI) (Ed.), Higher education in the world: The financing of universities. Basingstoke and New York: Palgrave Macmillan.Google Scholar
  2. Bashir, S. (2007). Trends in international trade in higher education: Implications and options for developing countries. Education Working Paper Series. Washington, DC: World Bank.Google Scholar
  3. Bjarnason, S., Cheng, K.-M., Fielden, J., Lemaitre, M. J., Levy, D., & Varghese, N. V. (Eds.) (2009). A new dynamic: Private higher education. Background document prepared for the World Conference on Higher Education. Paris: UNESCO.Google Scholar
  4. Blöndal, S., Field, S., & Girouard, N. (2002). Investment in human capital through upper-secondary and tertiary education. OECD Economic Studies. Paris: OECD. http://www.oecd.org/dataoecd/0/52/2640202.pdf.
  5. Cheng, K.-M. (2009). Public-private partnership. In S. Bjarnason, K.-M. Cheng, J. Fielden, M. J. Lemaitre, D. Levy, & N. V. Varghese (Eds.), A new dynamic: Private higher education. Background document prepared for the World Conference on Higher Education. Paris: UNESCO.Google Scholar
  6. Garrett, R. (2007). For-profit higher education internationally: Trends and issues. Paper presented at the CHEA (Council for Higher Education Accreditation) International Meeting, February 1, 2007, Washington, DC.Google Scholar
  7. Johnstone, D. B. (1986). Sharing the costs of higher education: Student financial assistance in the United Kingdom, the Federal Republic of Germany, France, Sweden, and the United States. New York: College Entrance Examination Board.Google Scholar
  8. Johnstone, D. B. (2004). The economics and politics of cost-sharing in higher education: Comparative perspectives. Economics of Education Review, 23(4), 403–410.CrossRefGoogle Scholar
  9. Johnstone, D. B. (2006a). Financing higher education: Cost-sharing in international perspective. Boston/Rotterdam: Boston College Center for International Higher Education/Sense Publishers.Google Scholar
  10. Johnstone, D. B. (2006b). Higher education accessibility and financial viability: The role of student loans. In Global University Network for Innovation (GUNI) (Ed.), Higher education in the world: The financing of universities. Basingstoke and New York: Palgrave Macmillan.Google Scholar
  11. Johnstone, D. B., & Marcucci, P. (2010). Financing higher education in international perspective: Who pays? Who should pay?. Baltimore: The Johns Hopkins University Press.Google Scholar
  12. Knight, J. (2006). Commercial cross-border education: Implications for financing higher education. In Global University Network for Innovation (GUNI) (Ed.), Higher education in the world: The financing of universities. Basingstoke and New York: Palgrave Macmillan.Google Scholar
  13. Mountbatten-Windsor, C. (HRH the Prince of Wales) (2009). Facing the future. The Richard Dimbleby Lecture, July 8, 2009, London. http://www.princeofwales.gov.uk/speechesandarticles/the_richard_dimbleby_lecture_titled_facing_the_future_as_del_573388579.html.
  14. NIIT Limited (2009). Annual report 20082009. Gurgaon, India: NIIT. http://www.nit.com/investorrelations/consolidated%20Results/Report08-09pdf.
  15. OECD [Organisation for Economic Cooperation and Development] (2004). Education at a glance, 2004: OECD indicators. Paris: OECD. http://www.oecd.org/document/7/0,3746,en_2649_201185_33712135_1_1_1_1,00.html.
  16. Salmi, J., & Hauptman, A. W. (2006). Resource allocation mechanisms in tertiary education: A typology and an assessment. In Global University Network for Innovation (GUNI) (Ed.), Higher education in the world: The financing of universities. Basingstoke and New York: Palgrave Macmillan.Google Scholar
  17. Sanyal, B. C. (1995). Innovations in university management. Paris: UNESCO IIEP.Google Scholar
  18. Sanyal, B. C. (1998). Diversification of sources and the role of privatisation in financing higher education in the Arab region. Paper presented at the Regional Conference on Higher Education for the Arab Region, Beirut, 2–5 March, 1998. Paris: UNESCO IIEP.Google Scholar
  19. Sanyal, B. C. (2008). Globalisation and higher education: Implications for India. In: Convocation address delivered on the occasion of the conferment of Doctor of Science (Honoris Causa), 21st convocation, University of Kalyani, India.Google Scholar
  20. Sanyal, B. C., & Martin, M. (1998). New strategies for the management of finance in universities. Prospects, 38(3), 429–441.CrossRefGoogle Scholar
  21. Sanyal, B. C., & Martin, M. (2006). Financing higher education: International perspectives. In Global University Network for Innovation (GUNI) (Ed.), Higher education in the world: The financing of universities. Basingstoke and New York: Palgrave Macmillan.Google Scholar
  22. SLBA [Student Loan Borrower Assistance] (2010). For-profit higher education by the numbers. http://www.studentloanborrowerassistance.org/blogs/wp-content/www.studentloanborrowerassistance.org/uploads/2007/03/BytheNumbersJan2010.pdf.
  23. Smith, M. (2010). College, Inc. [Program on WGBH television series Frontline]. http://www.pbs.org/wgbh/pages/frontline/collegeinc/view/.
  24. SUMFOLIO (2009). China casts smart bet on for-profit education in China. http://sumfolio.com/chinacasts -smart-bet-on-for-profit-education-in-china-076.
  25. UIS [UNESCO Institute for Statistics] (2006). Global education digest. Montreal: UIS.Google Scholar
  26. UIS [UNESCO Institute for Statistics] (2010). Data centre, Predefined tables, education. Montreal: UIS. http://stats.uis.unesco.org/unesco/ReportFolders/ReportFolders.aspx.
  27. UNESCO (2004). Final report of the meeting of higher education partners at World Conference on Higher Education +5. Paris: UNESCO. http://unesdoc.unesco.org/images/0013/001352/135213e.pdf.
  28. UNESCO (2010). EFA global monitoring report 2010: Reaching the marginalized. Paris: UNESCO.Google Scholar
  29. Varghese, N. V. (2010). Higher education and the global economic crisis. IAU Horizons, 16(1), 12–13.Google Scholar
  30. Venter, J. C. (2007). A DNA driven world. The Richard Dimbleby Lecture, December 4, 2007, London. http://www.bbc.co.uk/pressoffice/pressreleases/stories/2007/12_december/05/dimbleby.shtml.
  31. Vossensteyn, H. (2004). Fiscal stress: Worldwide trends in higher education finance. NASFAA Journal of Student Financial Aid, 34(1), 39–55.Google Scholar
  32. World Bank (2010). Financing higher education in Africa. Washington DC: The World Bank.CrossRefGoogle Scholar
  33. Zaiem, M. H. (2005). Current situation and prospects for higher education funding in Tunisia. IAU Horizons, 11(1), 8.Google Scholar

Copyright information

© UNESCO IBE 2011

Authors and Affiliations

  1. 1.UNESCO International Institute for Capacity Building in Africa (IICBA)ParisFrance
  2. 2.State University of New York at BuffaloBuffaloUSA

Personalised recommendations