Policy Workshop on

Private Higher Education

Damascus

8 December 2004

some dimensions of diversity

constitutional ban

some dimensions of diversity

constitutional ban

limited private

some dimensions of diversity

constitutional ban

limited private

significant participation

some dimensions of diversity

constitutional ban

limited private

significant participation

majority enrollment

share of private higher education enrolments

Korea 75%

Indonesia 65%

Philippines 80%

Colombia 60%

Brazil 60%

proportion of private enrollment

0 10 20 30 40 50 60 70 80 90

Filipinas

Corea

J apón

Indonesia

Colombia

India

Brasil

Bangladesh

Nicaragua

Paraguay

J ordania

Perú

Ecuador

Chile

Zaire

Nepal

Estados Unidos

Guatemala

Tailandia

El Salvador

México

Venezuela

Argentina

Honduras

Ruanda

Malasia

Bolivia

Papua Nueva Guinea

Kenya

Zimbabwe

Panamá

growth of private enrollment in Latin America(1970 - 1994)

0.0%

6.0%

7.4%

3.0%

6.0%

17.4%

21.0%

0.0%

14.5%

18.0%

39.4%

10.8%

21.7%

24.8%

34.1%

55.0%

45.5%

25.7%

23.0%

0.0%

6.0%

8.4%

8.5%

12.5%

20.3%

23.2%

23.9%

25.2%

28.8%

34.2%

35.6%

35.9%

46.7%

53.7%

58.4%

64.1%

69.1%

71.2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Cuba

Uruguay

Panamá

Bolivia

Honduras

Argentina

Ecuador

Costa Rica

México

Guatemala

Nicaragua

Venezuela

Perú

Paraguay

Chile

Brasil

Colombia

El Salvador

Rep. Dom

1994

1970

some dimensions of diversity

poor quality

some dimensions of diversity

poor quality

the best show in town

outline of the presentation...

• the potential benefits of private higher education

• the risks involved

• the role of the State

outline of the presentation...

• the potential benefits of private higher education

• the risks involved

• the role of the State

potential benefits

providing opportunities in constrained environment

potential benefits

providing opportunities in constrained environment

complementing government funding

enrollment rates by region

(1970-1999)

Sub-Saharan Africa

Middle East

Latin America/Caribbean

East Asia/Oceania

Southern Asia

Eastern Europe/Central Asia

0

5

10

15

20

25

30

35

40

45

50

1970 1980 1985 1990 1995 1997 1999

Year

Enr

ollm

ent

Tertiary Level Enrollment

050

100

0 10 20 30 40 50 60 70 80 90 100

Private Share

Enrol

lmen

t Argentina

Indonesia

FranceDenmark

Colombia

Chile

Brazil

Belgium

Austria

Philippines

Norw ayNew Zealand

Japan

Netherlands

Mexico

Latvia

Korea, Rep.

USASw eden

SpainRussia

PortugalPoland

knowledge is a key factor in explaining the

difference between poverty and wealth

0

2

4

6

8

1958 1962 1966 1970 1974 1978 1982 1986 1990

Rep. of Korea

Ghana

GDP Thousands of1985 US dollars

Differenceattributed toknowledge

Difference dueto physical andhuman capital

Korea vs. Ghana

Korea 1950s:

growth of public tertiary education with tuition fees

1960s: government financial incentives to promote

private tertiary sector growth

1970s and 80s: development of science and engineering

programs

1990s: emphasis on quality assurance, R&D,

accountability, performance-based funding

Ghana vs. Korea

Ghana 1950s – 1970s

slow growth of “free” public tertiary education

1980s: initiation of reforms: quality,

financial sustainability, expansion of public tertiary education

1990s: weak application of reform

programs

Korea vs. Ghana

evolution 1960-2002 enrollment rate

Korea: 2% in 1945 to 80% Ghana: remained at 2%

private sector enrollment Korea: 75% of total Ghana: 6% of total

public expenditure per student Korea: increase from $2,700 to $4,500 Ghana: decrease from $1,200 to $850

tertiary education linkages with economy and labor market

Korea: strong Ghana: weak

potential benefits

providing opportunities in constrained environment

complementing government funding

being closer to employers needs

linkages with the productive sectors

management team

board with external representatives

practitioners as part-time professors

speed to market

potential benefits

providing opportunities in constrained environment

complementing government funding

being closer to employers needs

providing healthy stimulation through competition

healthy competition

Bolivia

healthy competition

Bolivia

Uruguay

healthy competition

Bolivia

Uruguay

Russia

healthy competition

Bolivia

Uruguay

Russia

Jordan and Lebanon

outline of the presentation...

• the potential benefits of private higher education

• the risks involved

• the role of the State

the risks involved

inadequate quality

increasing inequalities

unfair competition

the quality challenge

diploma mills

the quality challenge

diploma mills

franchise institutions

franchise universities …

franchise universities …

the quality challenge

diploma mills

franchise institutions

quality assurance for virtual institutions and e-learning

virtual universities

the equity challenge

the higher the tuition fees, the more elitist the institution

eligibility for public resources? scholarships student loans

unequal competition

“free riding” the use of public professors

beware of foreign providers!

unequal competition

corporate behavior

for-profits targeting developing world

Apollo Group (Univ of Phoenix) -- Apollo International

Sylvan Learning Systems Universidad Europea de Madrid Universidad del Valle in Mexico

Unext.com? Columbia, Chicago, Stanford,

LSE, Carnegie Mellon

changing behavior

corporate behavior

forced marriage

outline of the presentation...

• the potential benefits of private higher education

• the risks involved

• the role of the State

the role of the State

mitigating the risks

promoting the harmonious growth of private institutions

main responsibility of the State

to put in place an enabling

framework that encourages all

higher institutions to be more

innovative and responsive

role of the State

define a coherent national

strategic vision and policy

framework

is there a vision?

role of the State

define a coherent national

strategic vision and policy

framework

establish an enabling regulatory

environment

public policies to promote private

tertiary education

remove barriers

areas of regulation

• Establishment of new institution

• Authorization to issue degree

• Establishment of new program

• Quality assurance

• Financial obligations / restrictions

• Equity promotion

• Participation of public sector teachers

• Academic freedom guarantee

• Appointment of trustees

• Additional provisions for foreign providers

public policies to promote private

tertiary education

remove barriers

establish quality assurance mechanisms

quality assurance

licensing of institutions minimal requirements comprehensive requirements

accreditation entire institution program course

public policies to promote private

tertiary education

remove barriers

establish quality assurance mechanisms

make information available Provao in Brazil ICFES in Colombia Jordan

role of the State

define a coherent national strategic

vision and policy framework

establish an enabling regulatory

environment

offer appropriate financial incentives

financial support from the public budget

direct subsidy

payment of teachers

tax exemptions

scholarships

student loans

conclusion

the changing higher education landscape

The Traditional University

Differentiated System

competing in the learning society...

competing in the learning society...

competing in the learning society...

competing in the learning society...