By Jouko Sarvi Principal Education Specialist Asian Development Bank Higher Education in Asia and the Pacific Region: Issues of Financing and Partnerships, Particularly from the Perspective of Access, Equity, Quality, and Diversity of Higher Education By Jouko Sarvi Principal Education Specialist Asian Development Bank

Outline Demand for higher education Evolution of debate on investment on HE Search for innovative financing mechanisms for HE Financing HE through PPPs and philanthropic support Diversification of HE, implications to financing Some proposed areas for capacity development

Demand for Higher Education (HE) Will double in 5 years and triple in 10 years in many developing countries in the region (ADB 2008) Equitable access, quality, and diversity of HE in the context of accelerating quantitative expansion? Various ‘demands’ can have different implications, in terms of financing options, and their linkages to improving access, equity, and quality What lessons can be learned from other subsectors in education?

Cost-sharing and financing mechanisms in HE Evolution of ‘cost-sharing’ in HE provides important lessons for the future. Search for innovative financing mechanisms: multiple sources of funding and a mix of allocation mechanisms can support access, equity and quality more effectively than single source/single mechanism -approach Longer term funding mechanism support more effectively strategic planning at HE institutions than annual funding mechanisms

Public & private partnerships in HE Governments will need more knowledge and capacity to formulate regulatory frameworks HE institutions will need more knowledge and capacity to build relationships with private sector Private sector will need more knowledge and capacity to appreciate also the broader non-monetary and socio-economic benefits, as they serve the interests of private sector also Not-for –profit organizations, such as philanthropic foundations, are increasingly able to leverage financing for HE

Financing in the context of diversified HE Diversification increases challenges and opportunities for financing partnerships, particularly as the range of HE stakeholders expands with diversification HE supporting science and technology – implications for financing partnerships Financing regional/subregional initiatives for HE development

HE financing strategies – some key areas for capacity development What works, what doesn’t, and in what circumstances in the region? System reliability issues - limitations Importance of common conceptual framework Adequate formulation of regulatory frameworks, and clear definition of roles and responsibilities of all partners Contextualization to circumstances of individual countries Coherence: technical design aspects of cost-sharing and financing mechanism, and their linkages to access, equity, quality improvement

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