1. Where to go from here? Maureen McLaughlin World Bank October 2005
Tertiary Education: Quality, Financing, and Linkages with Innovation and Productivity
Where to go from here?
Maureen McLaughlin
World Bank
October 2005

2. “Brains Business” Economist Magazine special issue on higher education
“Mass higher education is forcing universities to become more diverse, more global and much more competitive.
A more market-oriented system of higher education can do much better than state-dominated model.”
Challenge
How to balance increased access with quality and equity
How to take the advantages of market mechanisms while avoiding the pitfalls

3. Transition Economies
Extra challenge: moving from closed societies and economies to open ones
You are in the middle of these challenges and opportunities now but you are not alone
Every country in world is dealing with tertiary education challenges--developed, developing, in transition
Different countries at different points in the change process
Learn and share with each others in the region and from those outside the region
Learn from those further along in the process—learn from their mistakes, use their successes
Adapt the solutions to own country circumstances
Get the incentives right
We can help in a variety of ways

4. Systemic Reforms
Systemic Reforms—develop approach and strategy; build support, sequencing of changes, political economy realities, performance indicators
Benchmarking against other countries--neighbors, EU, OECD, for ex—choose most relevant comparators
Bring together countries in subsectors of the region for more in-depth look—new EU members, candidate countries, SEE, Caucuses, Central Asia, FSU, for ex
EU8 Fiscal study done and very effective for countries
Sector-wide approaches—ex, Croatia/World Bank

5. Quality Assurance
Market system and expansion in tertiary offerings make quality assurance even more important
Role of government—
Set up the framework and institutions for QA for public and private institutions;
Ensure accurate and transparent information;
Monitor performance of institutions
Accreditation—institutional, program, technical programs
Emphasize outputs and outcomes in addition to inputs
Consider coordinated/cooperative approaches across subregions
Information—powerful tool and basic assumption for successful markets--for students, society, institutions, government
Accountability mechanisms

6. Financing Public/Private roles and responsibilities
Government, students and families, private institutions, links to business
How to split between public/private
Who pays fees? How much?
Funding of public institutions—many options: lump sum, per-capita, performance based, etc
Institutional autonomy and governance
Support for students—grants—merit and measure of at risk; student loans-for whom? How financed? Level of subsidy?
Consider coordinated/cooperative approaches across subregions
We can help to support these activities and reforms

7. Innovation
Increased ties to private sector and improved business climate
Allow and encourage risk and failure
Improve science and technical education at all levels
Restructure research – competitive, peer review, centres of excellence, aplied research only if clear link and support of private enterprise,etc
Coordinated centres across countries—for ex Balkans
Look to traditional industries as well as new technologies

8. Closing “The best is yet to come” -- Economist Keep working together.
Encourage activities across countries
We look forward to continuing to work with you.