In many countries pressures of globalisation have led to major changes in relationships between the State, the market and higher education. These changes have consequences for the roles and organisation of higher education, and of universities in particular (Butera, 2000; Cowen, 2000; Fulton, 2002, 2003; Zajda, 2005, 2006; Henry et al., 2001; Schugurensky, 1999). This chapter explores aspects of higher education reform in the Netherlands and England, with a particular focus on market regulation. It is clear to everyone that in several OECD countries there has been a shift to market-framing of higher education (Clark, 1998; Jongbloed, 2003). Various governments have taken the view that institutional autonomy should be increased and that higher education institutions would become more effective and efficient, more responsive to economic imperatives, more productive and better managed if institutions are urged to compete more directly within a market (Goedegebuure & Westerheijden, 1991; Williams, 1992; Dill, 1997; Weiler, 2000; King, 2004; Kogan & Hanney, 2000; McNay, 1999; Slaughter & Rhoades, 2004). Market-framing is also expected to lead to particular kinds of innovation and adaptation to ‘customers’, such as students and companies.
However, market-framing not only refers to linking higher education closer to business and industry, but also to organising higher education institutions themselves as a business (Cowen, 1991). It involves large changes in the funding and management of higher education. Government initiatives to frame higher education institutions within markets have included deregulation of financial autonomy, the introduction of performance-based models of resource allocation, an urge for institutions to attract external funding and encouragement of competition between (and within) institutions. In a number of countries higher education institutions now operate in several markets: there are markets for students, teaching and research staff, research council grants, funding and company training. Higher education institutions have to compete for external funding, which leads to more market-related activities. Institutions also increasingly have to compete for state funding. The formulae for state funding send a powerful message about what is (and what is not) considered to be important in the higher education system. The markets in which higher education has been framed are not free markets because the Government intervenes in several ways by setting the rules and boundaries of the market (see also Williams, 1997).
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Becker, R.F. (2009). States, Markets and Higher Education Reform: The Netherlands and England. In: Zajda, J., Rust, V. (eds) Globalisation, Policy and Comparative Research. Globalisation, Comparative Education and Policy Research, vol 5. Springer, Dordrecht. https://doi.org/10.1007/978-1-4020-9547-4_11
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