FINANCING HIGHER EDUCATION: THE FINANCING HIGHER EDUCATION: THE PUBLIC RESPONSIBILITYPUBLIC RESPONSIBILITY

Yerevan, September 8 – 9, 2011Yerevan, September 8 – 9, 2011Sjur Bergan, Council of EuropeSjur Bergan, Council of Europe

FINANCING – TO WHOM?FINANCING – TO WHOM? Higher education institutions/providersHigher education institutions/providers Research groupsResearch groups StudentsStudents NGOs (e.g. Rectors’ conference, students NGOs (e.g. Rectors’ conference, students

union)union) Intermediate bodies (e.g. quality assurance Intermediate bodies (e.g. quality assurance

agency)agency)

SOME SOURCES OF FINANCESOME SOURCES OF FINANCE Public authoritiesPublic authorities

– Block grants, education budgetBlock grants, education budget– Project and other earmarked fundingProject and other earmarked funding– Student loans and grantsStudent loans and grants

Semi-public and private non-profitSemi-public and private non-profit– Project or other earmarked fundingProject or other earmarked funding– EndowmentsEndowments

Private for profitPrivate for profit– Project or other earmarked fundingProject or other earmarked funding– Research contracts Research contracts

Students and familiesStudents and families– FeesFees– Donations by alumniDonations by alumni

InternationalInternational– Project or other earmarked funding, e.g. EU fundingProject or other earmarked funding, e.g. EU funding

IN A “MIXED ECONOMY”…IN A “MIXED ECONOMY”…

… … WHAT PUBLIC RESPONSIBILITY?WHAT PUBLIC RESPONSIBILITY?

EUROPEAN MINISTERSEUROPEAN MINISTERS

They [Ministers] supported the idea that They [Ministers] supported the idea that higher education should be considered a higher education should be considered a public good and is and will remain a public public good and is and will remain a public responsibility (Praha 2001)responsibility (Praha 2001)

Ministers reaffirm their position that higher Ministers reaffirm their position that higher education is a public good and a public education is a public good and a public responsibility (Berlin 2003)responsibility (Berlin 2003)

PUBLIC AUTHORITIES HAVEPUBLIC AUTHORITIES HAVE the sole responsibility for the framework the sole responsibility for the framework

within which HE is givenwithin which HE is given leading responsibility for ensuring equal leading responsibility for ensuring equal

opportunityopportunity substantial responsibility for financing and substantial responsibility for financing and

provisionprovision

FRAMEWORKFRAMEWORK Public authorities establish:Public authorities establish:

– The framework within which all financing – regardless of The framework within which all financing – regardless of source – is providedsource – is provided

– Rules and regulations for accounting and accountabilityRules and regulations for accounting and accountability– The institutions and programs belonging to the national The institutions and programs belonging to the national

higher education systemhigher education system– Provision for quality assuranceProvision for quality assurance– The qualifications framework and the qualifications The qualifications framework and the qualifications

belonging to itbelonging to it– Strategic planning of the HE systemStrategic planning of the HE system

EQUAL OPPORTUNITYEQUAL OPPORTUNITY Providing everybody with fair access to Providing everybody with fair access to

quality higher educationquality higher education Public authorities could (should): Public authorities could (should):

– stipulate that non-public financing contain equity stipulate that non-public financing contain equity provisions provisions

– earmark funds to encourage equal opportunitiesearmark funds to encourage equal opportunities– provide student financeprovide student finance

FINANCING AND PROVISIONFINANCING AND PROVISION Traditional European model: Traditional European model:

– public authorities main source of finance for HEpublic authorities main source of finance for HE– most institutions are public, private institutions fairly most institutions are public, private institutions fairly

similar to public (e.g. Catholic universities)similar to public (e.g. Catholic universities) Trends:Trends:

– Increasing diversification of funding and provisionIncreasing diversification of funding and provision– Private provision, some of which for profit Private provision, some of which for profit – Non-traditional provision, much of which not directly Non-traditional provision, much of which not directly

linked to a national education system (e.g. web based, linked to a national education system (e.g. web based, transnational)transnational)

FINANCING AND PROVISION: FINANCING AND PROVISION: SOME ISSUESSOME ISSUES

Block grants vs. earmarked fundingBlock grants vs. earmarked funding What role for non-public finance and on What role for non-public finance and on

what conditions?what conditions? Public finance for non-public provision: Public finance for non-public provision:

automatic right or discretionary power?automatic right or discretionary power? Relationship between public finance and Relationship between public finance and

strategic planningstrategic planning

WHAT VISION FOR HIGHER WHAT VISION FOR HIGHER EDUCATIONEDUCATION??

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OR RATHER?OR RATHER?

WHY HIGHER EDUCATION?WHY HIGHER EDUCATION? Preparation for the labor marketPreparation for the labor market Preparation for life as active citizens in Preparation for life as active citizens in

democratic societiesdemocratic societies Personal developmentPersonal development Broad, advanced knowledge baseBroad, advanced knowledge base

PUBLIC RESPONSIBILITY FOR PUBLIC RESPONSIBILITY FOR FINANCING HIGHER EDUCATIONFINANCING HIGHER EDUCATION

Provide a higher education system that:Provide a higher education system that:– Fulfils all major purposes of HEFulfils all major purposes of HE– Is of good qualityIs of good quality– Defines quality not only as a limited number of Defines quality not only as a limited number of

institutions with excellent researchinstitutions with excellent research– Provides equal opportunityProvides equal opportunity– Gives a diversified offerGives a diversified offer– Helps develop the kind of society in which we Helps develop the kind of society in which we

would like to livewould like to live