If there was ever a time when higher education needed sustained scholarly reflection on finance, it is now. The reality of globalization for higher education suggests an increase in competition competition for students, faculty, and resources. Member states of the European Union are currently making a speedy and concerted effort to harmonize their curricula and educational processes. This exercise fosters greater mobility among students and faculty. Where mobility is enhanced, competition among service providers intensifies. Technology has brought tremendous progress to distance education. Spiru Haret University in Romania boasts of its educational broadcast that covers most of Europe. University of Phoenix in the United States currently boasts of over 200,000 students spread across the world. Certainly, it is no longer business as usual in higher education. Yet there are very few books on higher education finance; and even fewer are those that attempt to treat this important subject within an international context. There is a reason for this. A colleague from Great Britain described it this way:One thing we all know is that without money we cannot do what we are doing. However, I doubt if any of us can articulate with absolute certainty how money produces effects on education outcome. The actors are constantly changing, the issues are complex, the constraints are many not to talk about the ubiquitous politics that one needs to contend with. Almost every time we try to write, events overtake our reasoning before the ink dries on the prints.With a statement like this from an invited contributor, the temptation to lay down the tools and quit was high. Still, the changes and challenges are exciting. Government s ability to control and confine education to its borders is fast eroding. With Internet and satellite systems, it will become harder to police foreign educational outreach. Yet, higher education has never been so important in the hand of government as an instrument by which to effect socio-political and economic policies. Governments must worry about brain drain, about research outcomes getting into the hands of rogue nations and terrorists (not to mention commercial competitors), about the cost of higher education, and about access for its citizenry. Finance has a significant role to play in every higher education decision, yet we know and talk little about it. Admittedly, we all complain about insufficient budgets, but serious academic analysis that is expressed to decision makers in an understandable language is rare. The primary goal of this book is to discuss how higher education is financed in participating countries. Contributors were encouraged to eliminate the jargons of economics of education and to present information that is comprehensible to higher education decision makers. Experience has shown that most higher education decision makers have little or no background in economics or finance and, frankly speaking, may not be interested in economics. Many people have thin patience for complex equations, and those equations are hardly called to mind when one is confronted with real life challenges. While some contributors may have succeeded better than others in simplifying complex concepts, it is my hope that the majority of this book s readers will find it useful, informative, and readable....
Author(s): Steve O. Michael, Mark Kretovics
Year: 2008
Language: English
Pages: 344
Editors......Page 5
Contributors......Page 7
Table of Contents......Page 11
Preface......Page 17
Introduction......Page 19
Importance of Higher Education......Page 20
General Trends......Page 27
Greater Institutional Diversification......Page 28
Greater Student Diversity......Page 29
Greater Diversification of Sources of Funding......Page 31
Greater Accountability and Control......Page 33
Greater Privatization......Page 34
Greater User-Pay......Page 35
Greater Cost Consciousness......Page 37
Commercial Ranking of Institutions......Page 38
Concluding Principles of Higher Education......Page 40
The Principle of Diversified Higher Education System......Page 41
The Principle of Autonomy......Page 42
The Principle of Responsive Higher Education System......Page 43
Funding for Excellence......Page 45
Organization of this Book......Page 46
References......Page 48
Introduction......Page 49
Higher Education Structure......Page 50
Historical Trends......Page 53
Higher Education Revenue Trends......Page 56
Government Appropriations......Page 61
Endowment Market......Page 63
Higher Education Cost Structure......Page 66
Higher Education Funding for Equity......Page 70
Addressing the Issue of Equity......Page 75
Challenges of the 21st Century......Page 79
Summary and Conclusion......Page 84
References......Page 85
Introduction......Page 87
Historical Development......Page 90
The Current Condition......Page 95
Access......Page 98
Tuition Fees, Accessibility, and Quality......Page 100
Sources of Revenue......Page 104
Tuition Fees......Page 106
Operating Grants......Page 110
Other Income......Page 112
Cost Structure......Page 115
Institutional Autonomy......Page 121
Changing Trends......Page 123
Faculty Roles and Rewards......Page 127
Infrastructure......Page 128
Financing for the 21st Century......Page 131
References......Page 134
Introduction......Page 137
Higher Education In Mexico......Page 139
Too Little, Too Much?......Page 141
The Logic of Funding in the 1970s through the 1990s......Page 143
The 1990s: Diversification of Funding......Page 148
Financial Policies and Their Impact......Page 156
Conclusions and recommendations......Page 160
References......Page 163
Introduction......Page 165
Recent Historical Development of Spanish Higher Education......Page 166
General Structure and Current Situation of the System......Page 169
Access to Higher Education and Equity-Related Finance Policies......Page 172
General Traits of the Higher Education Finance Policy......Page 175
Sources of Revenue......Page 176
Cost Structure......Page 178
Institutional Autonomy and Evaluation......Page 179
Academic Staff: Roles and Reward......Page 180
Financing for the 21st Century: The Challenges of Globalization......Page 181
Conclusions and Recommendations......Page 183
References......Page 187
Introduction......Page 189
The Fabric of Higher Education......Page 191
Free Access......Page 196
Massification......Page 197
Social-Economic Status of Students......Page 199
Student Assistance......Page 200
Institutional Autonomy......Page 204
Universities......Page 207
Fachhochschulen......Page 209
Tuition Fees......Page 210
Cost Structure......Page 212
Faculty Roles and Reward......Page 214
Higher Education Infrastructure......Page 216
Higher Education Buildings......Page 217
Other Infrastructure......Page 219
Conclusions......Page 220
References......Page 225
Introduction......Page 227
Historical Development......Page 228
Current Condition......Page 236
Earmarked funds for student financial aid......Page 241
Earmarked funds for other specific purposes......Page 242
Access In General......Page 243
Sources of Revenue......Page 245
Cost Structure......Page 248
C-Values......Page 251
K-Factors......Page 252
Institutional Autonomy......Page 256
Faculty Roles and Reward......Page 258
Higher Education Infrastructure......Page 261
Conclusion and Recommendations......Page 265
References......Page 268
Appendix A. Abbreviations Used......Page 271
Appendix B. A Simplified Breakdown of the Subsidy Formula......Page 272
Global Economic Crisis and Adjustment......Page 273
India’s Economy Under Adjustment......Page 277
Effects of Adjustment on Education......Page 281
How Does Higher Education in India Respond to Adjustment Measures?......Page 283
Decline in Budget Allocations......Page 284
Shifts in Higher Education Policy......Page 297
Student Fees......Page 299
Student Loans......Page 301
Privatization......Page 302
Concluding Observations......Page 304
References......Page 308
Introduction......Page 317
Background......Page 319
Higher Education Finance in the Context of Economic Sustainability......Page 320
Importance of Higher Education to Sustainable Economic and Social Growth......Page 323
National Education Budget......Page 325
Government Expenditure......Page 326
Educational Loans......Page 327
Private Sector Support......Page 328
Autonomy......Page 330
Stimulation of Research and Development......Page 331
Issues of Equity......Page 332
Promising Projects and Programs......Page 333
Conclusion......Page 334
References......Page 338
