1. Funding and Governance of Higher Education in Norway Senior Adviser Mads Gravås Yerevan/Armenia/September 8-9 2011

2. 2 Norwegian Ministry of Education and Research Higher Education Institutions (HEIs) in Norway (2010) State sector: –8 universities –6 specialised university institutions –2 academies of the arts –21 university colleges –The Police Academy and 5 military academies (under the auspices of other Ministries) Private sector: –34 HEIs with recognised study programmes –5 accredited university colleges –3 accredited specialised university institutions –24 receive state funding –approximately 10 % of students

3. 3 Norwegian Ministry of Education and Research Structural features Decentralisation –successful in terms of access Fragmentation (figures from 2008) –state institutions have total of 55 campuses –39 campuses have less than 2000 students –17 campuses have less than 1000 students –23 institutions (3 private) have the right to award doctoral degrees (2011) Move from (partially) binary structure to hierarchy of similar institutions –university colleges increase their research ambitions and activities

4. 4 Norwegian Ministry of Education and Research Policy framework All HEIs governed by same legislation –high degree of institutional autonomy All HEIs required by law to carry out research and development work – no formal division of responsibilities between types of institutions One common set of indicators for output-based financing, including indicators for research Structure of academic positions and salaries regulated nationally – same for all institutions Possible for HEIs to be accredited in higher category – main criteria related to number of master and doctoral programmes

5. 5 Norwegian Ministry of Education and Research Steering of HEIs in Norway HEIs have extensive delegated powers and decide their own strategies The HEI landscape, i.e. the geographical distribution of institutions and campuses, is decided by the Government We govern by “hard” and “soft” incentives –the funding model is part of the overall steering of Higher education in Norway

6. 6 Norwegian Ministry of Education and Research Delegated powers of HEIs Freedom to establish new study programmes (according to institutional category) and decide on student numbers Freedom to decide internal organisation Choice between two governing models –Elected rector as president of the board –Rector appointed by board with external president

7. 7 Norwegian Ministry of Education and Research Steering of HEIs in Norway – “soft measures” Governance meetings and dialogue: –Pass on the expectations of the Government Guidance Peer pressure through statistics and analyses –All the results of all the HEIs are transparent an published

8. 8 Norwegian Ministry of Education and Research Cooperation, Division of Labour, and Concentration” (CDLC) Policy initiative to enhance quality –Stimulate autonomous institutions to develop clearer profiles –Supported by financial incentives

9. 9 Norwegian Ministry of Education and Research Steering of HEIs in Norway – “hard measures” The state budget –Result-based funding system, with an average of 30 % of the block grant funding based on results New student places allocated by the Government/the Storting (Parliament) Legislation National Curriculum Regulations Direct instruction –Rare, and only where authority is not delegated by law

10. 10 Norwegian Ministry of Education and Research Different sources of funding (2010) Directly to the HEIs 23,4 billion NOK (the funding model). To the HEIs from the Norwegian Research Council 2,2 billion NOK External funding 2,1 billion NOK EU funds 196 million NOK

11. 11 Norwegian Ministry of Education and Research The funding model (1) Introduced in 2002 to support the aims of the Quality Reform –From an activity based model to a model partly based on results –Incentives to: Increase quality in higher education and research Increase student progression Increase student exchange

12. 12 Norwegian Ministry of Education and Research The funding model (2) A Block grant with the following elements: –A long term and strategic grant (approximately 70% of the allocation) –Two elements of allocation based on performance: Education incentives, fixed per capita rate (no budget limit), (approximately 24% of the allocation) Research incentives (“zero sum game”), (approximately 6% of the allocation). The HEI board priorities within the block grant

13. 13 Norwegian Ministry of Education and Research The funding model (3) Evaluated in 2009 –The evaluation showed that the system is working according to its conditions - i.e. no major changes

14. 14 Norwegian Ministry of Education and Research Target oriented management New objectives from 2012 –From: 5 overall objectives, 16 second level objectives and 34 result parameters –To: 5 overall objectives and 13 result parameters The point here is: –A massive delegation to the HEIs to set the second level objectives –The indicators of the funding model are not part of the result objectives Remember: the funding model shall support the overall aims of higher education in Norway

15. 15 Norwegian Ministry of Education and Research Goal achievement Block grant Indirect impacts Performance-based allocations Selected indicators : Study credit points Incoming/outdoing students Scientific publication points PhDs/graduates from National Norwegian Artistic Research Fellowships Programme EU funds Resources from Research Council of Norway/regional research funds Performance-based allocations Selected indicators : Study credit points Incoming/outdoing students Scientific publication points PhDs/graduates from National Norwegian Artistic Research Fellowships Programme EU funds Resources from Research Council of Norway/regional research funds Political priorities Includes: Division of labour and academic concentration Recruitment positions Study places Buildings and equipment Decentralised education Political priorities Includes: Division of labour and academic concentration Recruitment positions Study places Buildings and equipment Decentralised education Board priorities Activities Direct impacts Incentives Impacts The funding system as part of target- oriented management External revenues

16. 16 Norwegian Ministry of Education and Research Thank you for your attention!