FINANCING HIGHER EDUCATION: THE PUBLIC RESPONSIBILITY Yerevan, September 8 – 9, 2011 Sjur Bergan, Council of Europe

FINANCING – TO WHOM?  Higher education institutions/providers  Research groups  Students  NGOs (e.g. Rectors’ conference, students union)  Intermediate bodies (e.g. quality assurance agency)

SOME SOURCES OF FINANCE  Public authorities –Block grants, education budget –Project and other earmarked funding –Student loans and grants  Semi-public and private non-profit –Project or other earmarked funding –Endowments  Private for profit –Project or other earmarked funding –Research contracts  Students and families –Fees –Donations by alumni  International –Project or other earmarked funding, e.g. EU funding

IN A “MIXED ECONOMY”…  … WHAT PUBLIC RESPONSIBILITY?

EUROPEAN MINISTERS  They [Ministers] supported the idea that higher education should be considered a public good and is and will remain a public responsibility (Praha 2001)  Ministers reaffirm their position that higher education is a public good and a public responsibility (Berlin 2003)

PUBLIC AUTHORITIES HAVE  the sole responsibility for the framework within which HE is given  leading responsibility for ensuring equal opportunity  substantial responsibility for financing and provision

FRAMEWORK  Public authorities establish: –The framework within which all financing – regardless of source – is provided –Rules and regulations for accounting and accountability –The institutions and programs belonging to the national higher education system –Provision for quality assurance –The qualifications framework and the qualifications belonging to it –Strategic planning of the HE system

EQUAL OPPORTUNITY  Providing everybody with fair access to quality higher education  Public authorities could (should): –stipulate that non-public financing contain equity provisions –earmark funds to encourage equal opportunities –provide student finance

FINANCING AND PROVISION  Traditional European model: –public authorities main source of finance for HE –most institutions are public, private institutions fairly similar to public (e.g. Catholic universities)  Trends: –Increasing diversification of funding and provision –Private provision, some of which for profit –Non-traditional provision, much of which not directly linked to a national education system (e.g. web based, transnational)

FINANCING AND PROVISION: SOME ISSUES  Block grants vs. earmarked funding  What role for non-public finance and on what conditions?  Public finance for non-public provision: automatic right or discretionary power?  Relationship between public finance and strategic planning

WHAT VISION FOR HIGHER EDUCATION?

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OR RATHER?

WHY HIGHER EDUCATION?  Preparation for the labor market  Preparation for life as active citizens in democratic societies  Personal development  Broad, advanced knowledge base

PUBLIC RESPONSIBILITY FOR FINANCING HIGHER EDUCATION  Provide a higher education system that: –Fulfils all major purposes of HE –Is of good quality –Defines quality not only as a limited number of institutions with excellent research –Provides equal opportunity –Gives a diversified offer –Helps develop the kind of society in which we would like to live