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Financial Aspects of Higher Education in Europe

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This is a power point presentation on Financial Aspects of Higher Education in Europe

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  • 1. The State of Higher Education in Europe Anush Chubaryan University of South Carolina Globalisation: Challenges, opportunities, outcomes
  • 2. Summary
    • Impact of Globalisation on Higher Education
      • Internationalisation & Competition
      • Globalisation of Higher Education
    • Challenges and Opportunities
  • 3. Impact on Higher Education
    • Massification
    • Bologna Process and the Lisbon Agenda
    • Funding
    • Governance
    Internationalisation & Competition
  • 4. Massification ( a market driven phenomenon) The welfare of the nations is suported by educated people Massification of Higher Education The most ubiquitous global influence of the past half century. ( Philip Altbach) Higher Education at the level of the individual translate into the expectation of higher salary and social improvement
  • 5. Internationalisation ( a market driven phenomenon) The welfare of the nations is suported by educated people Internationalisation of Higher Education Higher Education operates as a positional good
  • 6. European situation and HE (1999)
    • Public investment did not match the increase in number of students
    • Low eficency of the HE system in Europe
      • Long over duration of studies
      • High drop out rates
      • Lack of flexibility of study programmes
      • Recognition problems even within Europe
  • 7. Bologna Process
    • Restructuration of HE into a system of two/three cycles, combined with a credit system for accumulation and transfer.
    • Teacher centered into student centered approach to teaching and learning.
    • Increase the mobility of students, staff and graduates across Europe.
    • Creation of the European Higher Education Area
  • 8. European situation and Economics (2002)
    • Increasing social needs of an ageing population
    • Adverse demography
    • Slow down of economic performance
    • Increasing competitiveness of new rapidly growing economies
    A European model of economic development to be based on knowledge and innovation.
  • 9. Link between EHEA and ERA Graduates at all levels must have been exposed to a research environment and to research-based training in order to meet the needs of Europe as a knowledge society Ministers recognise the doctoral level as the third cycle in the Bologna Process.
  • 10. Expectations (2010)
    • An early entry in the labour market of a highly skilled work force.
    • Individuals prepared for problem solving at different levels and for learning throughout life, currently using ICT and able to work in any European Nation or anywhere in the world.
    • Europe as the most dynamic economy based on knowledge, meeting the challenges of an ageing population and competition from other developed economies in the world.
  • 11. Europe’s response to the globalisation The Bologna process and the Lisbon Agenda are Europe’s response to the globalisation force field. Universities are key players.
    • Higher Education is a major driver of the global knowledge-based economy, since economic competitiveness depends, on the long run, on the quality of human resources.
    • Need to increase the number of doctoral level holders to enhance knowledge transfer and foster innovation and creativity.
    • The link between Higher Education and research is a central feature of the European Universities.
  • 12.
    • The Good News-Universities are responding
    • Internationalisation of teaching and learning
    • Educational alliances and cooperation
    • Research partnerships (Universities, Industry and business)
    • Reform of doctoral education
    Response to the Challenges
  • 13.
      • 1.Outside employment geared, including interdisciplinary training, development of transferable skills and operating within three to four years full-time as a rule.
      • 2.Geographical as well as inter-sectoral mobility and international collaboration. Cooperation between universities and other partners.
      • 3. Internationalisation strategy of the universities, attracting the best doctoral candidates from all over the world, encouraging mobility within doctoral programmes and supporting European and international joint doctoral programmes and co-tutelle arrangements.
    Doctoral Programmes
  • 14. Once Free of Charge: Now Quite Expensive
  • 15.
    • Tertiary fee is expensive per students:
    • The Lisbon objectives and rising number of students require additional funds
    • Demographic change places burden on a public sector
  • 16.
    • Students choose lucrative professions
    • Students as customers can demand more of the universities
  • 17.
    • Education is receives by the well-of
    • Individual rate of return for education investment is higher than the social rate of return
    • Public spending increases the private rate of return in relation to the social rate of return
    • Those who benefit should bear the costs
  • 18.
    • If students are able to pay for their education they study harder and graduate faster
    • When education was free, it was seen as of lesser value
  • 19.
    • Upfront fees
    • Loans
    • Graduate tax
  • 20.
    • Relation to costs
    • Relation to income
    • Relation to duration of studies
    • Time and mode of payment
  • 21.
    • The proportion of actual costs
    • Bearing full costs
    • Bearing partial costs
    • What costs should be covered?
    • Teaching/Teaching and research
    • Differences between disciplines and universities
  • 22.
    • Same fees for all
    • Lower/subsidized fees for low income groups
    • Local/Foreign students
    • Full time/Part time students
    • HE/Open HE
  • 23.
    • Equal fee for all years of study
    • On the basis of costs the fee rises as the studies progress
    • To hasten graduation the fee rises as the studies progress
  • 24.
    • Time
    • Upfront
    • After graduation
    • Mode
    • Payment according to costs
    • Payment according to income
    • Paying the loan
    • Paying tax
  • 25.
    • Partial fees introduced or raised in many European countries (e.g. UK, Germany, Austria, etc.)
    • Nordic countries are influenced as well
  • 26.
    • Tuition fee for non-EEA students in Denmark
    • Swedish social-democrats are in favor of tuition fees for foreign students
    • Recurring discussion in Finland
  • 27.
    • Education as a right
    • Investment in the future of society
    • Equal Opportunities
    • Fees hinder the internationalization
  • 28. Funding. Further Challenges
    • The Bad News
    • The European public purse is already streched.
    • Bologna requires more and not less funding.
    • Health and social support compete with HE for public funds.
    • Funding gap cannot be bridged by tuition fees alone.
  • 29. Collaboration & Competition
    • Universities need to diversify sources of income. Research contracts, consultancy, knowledge tranfer and fund raising.
    • Compete , nationally and internationally for funds, with other universities and industry
    • &
    • Collaborate with other universities and industry.
    • Compete for brains. The potential of income trough research depends on attracting the good and retain the best.
  • 30. The main issue of Governance If Europe is to be a leader in the global Knowledge economy- and if unversities are to produce the top-level research needed to achieve this- comprehensive reform of higher education is the order of the day. What matters for good performance is money and good governance. (Bruegel policy brief)
  • 31. All over Europe there have a movement to modernize university governance and management. Making institutions more responsive. Models of governence alike the ones used in the corporate industry are becoming common. Leadership is what matters Leadership
  • 32.
    • Globalisation of Higher Education
    Expansion and openness of HE. Nearly 3 million students studying abroad. Thousands of visiting scholars and posdocs across the borders. Global circulation of other professionals. Integration of HE across the world. Devellopment of cross-border projects, programmes, offshore campuses, instructional programmes and professional degrees.
  • 33. Higher Education as Business Internationalisation is changing the world of higher education, and globalisation is changing the world of internationalisation. (Jane Knight)
  • 34. Migratory Flows
    • Imbalance between educational need and educational capacity.
    • For the sending countries there is an externalization of the benefits and an internalisation of the costs. For the world as a whole there is an enlargement of the gap between the very rich and the very poor countries, resulting in an increased inequality
    • Established universities should build the capacity of universities in the develloping countries.
  • 35.
    • Universities must be responsive and responsible.
    • Receptive to what society expects from them.
    • Markets shape course content and research agenda.
    • Serve as critics of society and sustaining society cultural heritage.
    Responsive and Responsible
  • 36. Joint together with governments and industry in order to secure long-term prosperity and stability of humankind.
  • 37. Universities long viewed as ivory towers are increasingly recognized as oil wells of the new economy. (David Ward)
  • 38. IVORY TOWER University, the Palace of Paradox OIL WELL WATCH TOWER
  • 39. References:
    • Articles and Papers: Europe-Institute of International Education
    • Bologna Process: European Higher Education Area
    • Demographic Trends and Risks for European Higher Education
    • EDULINK Program: ACP-EU Partnership in Higher Education
    • ENQA and the Bologna Process
    • Europe’s Agenda on Global Competition
    • European Internalization Programs
    • Henttonen, A. (2010), Tuition Fees