1. 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

2. 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

3. 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?

4. 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

5. 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

6. 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

7. 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

8. THANK YOU!