Al Alt Econ Lit Review Presentation


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Review of literature related to the financing of higher education worldwide and national in the US.

Published in: Business, Economy & Finance
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Al Alt Econ Lit Review Presentation

  1. 1. Presented by: Al Alt June 4, 2010
  2. 2. <ul><li>Knowledge economy is driving the world </li></ul><ul><ul><li>Despite knowledge economy, education is in “crisis” due to fiscal stress (World Bank, 1994) </li></ul></ul><ul><li>Despite knowledge economy, education worldwide is in crisis (World Bank, 1994) </li></ul><ul><li>Fiscal stress due to demands on public funds driving fiscal stress </li></ul>June 4, 2010
  3. 3. <ul><li>All major industrialized nations are grappling with the issue of financing education </li></ul><ul><li>There are several reasons contributing to a worldwide struggle to fund higher education: </li></ul><ul><ul><li>Taxation </li></ul></ul><ul><ul><li>Supply and Demand </li></ul></ul><ul><ul><li>Opportunity Cost </li></ul></ul>June 4, 2010
  4. 4. <ul><li>All major nations fund a portion of higher education through taxation </li></ul><ul><ul><li>Even developing countries contribute significant public funds to higher education </li></ul></ul><ul><li>In major developed nations, taxation cannot keep pace with the rising cost of higher education </li></ul><ul><li>In developing nations, taxation is not efficient enough or sufficiently developed </li></ul>June 4, 2010
  5. 5. <ul><li>Supply of higher education is greater than ever </li></ul><ul><li>Demand pressure is greater than supply </li></ul><ul><ul><li>Increase in college aged population </li></ul></ul><ul><ul><li>Increase in people desirous of higher education </li></ul></ul><ul><li>Students are informed consumers, the knowledge economy is driving the world </li></ul>June 4, 2010
  6. 6. <ul><li>Constrained public dollars are creating competition and foregone opportunities for public dollars </li></ul><ul><li>There are severe unmet needs of other choices dominate the funding of higher education </li></ul><ul><ul><li>Infrastructure </li></ul></ul><ul><ul><li>Public health </li></ul></ul><ul><ul><li>Compulsory education </li></ul></ul><ul><ul><li>Transportation </li></ul></ul>June 4, 2010
  7. 7. <ul><li>National Trends follow worldwide trends </li></ul><ul><li>Rising unemployment is driving demand for higher education </li></ul><ul><li>78 million baby boomers are preparing for retirement </li></ul><ul><ul><li>largest and best educated generation in the nation’s history </li></ul></ul><ul><ul><li>state spending on higher education will have to increase faster than state spending in other areas </li></ul></ul>June 4, 2010
  8. 8. <ul><li>Efficiency </li></ul><ul><ul><li>Become more client responsive </li></ul></ul><ul><ul><li>Higher education as a business </li></ul></ul><ul><li>Public vs. Private </li></ul><ul><ul><li>Notion of private being more efficient </li></ul></ul><ul><ul><li>Diversification of offerings </li></ul></ul><ul><li>Cost sharing </li></ul><ul><ul><li>Additional fees and tuition borne by student </li></ul></ul><ul><ul><li>Loans and grants </li></ul></ul><ul><li>Supplementing governmental funds </li></ul><ul><ul><li>Philanthropy and entrepreneurship </li></ul></ul>June 4, 2010
  9. 9. <ul><li>Higher education worldwide in “fiscal stress” </li></ul><ul><ul><li>High demand on public dollars </li></ul></ul><ul><ul><li>Opportunity cost related to other public programs </li></ul></ul><ul><ul><li>Taxation cannot keep pace </li></ul></ul><ul><ul><li>Demand for higher education is extreme </li></ul></ul><ul><li>National and worldwide solutions are uniform </li></ul><ul><ul><li>Efficiency </li></ul></ul><ul><ul><li>Cost Sharing </li></ul></ul><ul><ul><li>Public vs. Private </li></ul></ul><ul><ul><li>Philanthropy and entrepreneurship </li></ul></ul><ul><li>Reform is being driven by knowledge economy and excess demand </li></ul>June 4, 2010
  10. 10. Presented by: Al Alt June 4, 2010