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Financial Aspects of Higher Education in Europe


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Financial Aspects of Higher Education in Europe

  1. 1. The State of Higher Education in Europe Anush Chubaryan University of South Carolina Globalisation: Challenges, opportunities, outcomes
  2. 2. Summary <ul><li>Impact of Globalisation on Higher Education </li></ul><ul><ul><li>Internationalisation & Competition </li></ul></ul><ul><ul><li>Globalisation of Higher Education </li></ul></ul><ul><li>Challenges and Opportunities </li></ul>
  3. 3. Impact on Higher Education <ul><li>Massification </li></ul><ul><li>Bologna Process and the Lisbon Agenda </li></ul><ul><li>Funding </li></ul><ul><li>Governance </li></ul>Internationalisation & Competition
  4. 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. 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. 6. European situation and HE (1999) <ul><li>Public investment did not match the increase in number of students </li></ul><ul><li>Low eficency of the HE system in Europe </li></ul><ul><ul><li>Long over duration of studies </li></ul></ul><ul><ul><li>High drop out rates </li></ul></ul><ul><ul><li>Lack of flexibility of study programmes </li></ul></ul><ul><ul><li>Recognition problems even within Europe </li></ul></ul>
  7. 7. Bologna Process <ul><li>Restructuration of HE into a system of two/three cycles, combined with a credit system for accumulation and transfer. </li></ul><ul><li>Teacher centered into student centered approach to teaching and learning. </li></ul><ul><li>Increase the mobility of students, staff and graduates across Europe. </li></ul><ul><li>Creation of the European Higher Education Area </li></ul>
  8. 8. European situation and Economics (2002) <ul><li>Increasing social needs of an ageing population </li></ul><ul><li>Adverse demography </li></ul><ul><li>Slow down of economic performance </li></ul><ul><li>Increasing competitiveness of new rapidly growing economies </li></ul>A European model of economic development to be based on knowledge and innovation.
  9. 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. 10. Expectations (2010) <ul><li>An early entry in the labour market of a highly skilled work force. </li></ul><ul><li>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. </li></ul><ul><li>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. </li></ul>
  11. 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. <ul><li>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. </li></ul><ul><li>Need to increase the number of doctoral level holders to enhance knowledge transfer and foster innovation and creativity. </li></ul><ul><li>The link between Higher Education and research is a central feature of the European Universities. </li></ul>
  12. 12. <ul><li>The Good News-Universities are responding </li></ul><ul><li>Internationalisation of teaching and learning </li></ul><ul><li>Educational alliances and cooperation </li></ul><ul><li>Research partnerships (Universities, Industry and business) </li></ul><ul><li>Reform of doctoral education </li></ul>Response to the Challenges
  13. 13. <ul><ul><li>1.Outside employment geared, including interdisciplinary training, development of transferable skills and operating within three to four years full-time as a rule. </li></ul></ul><ul><ul><li>2.Geographical as well as inter-sectoral mobility and international collaboration. Cooperation between universities and other partners. </li></ul></ul><ul><ul><li>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. </li></ul></ul>Doctoral Programmes
  14. 14. Once Free of Charge: Now Quite Expensive
  15. 15. <ul><li>Tertiary fee is expensive per students: </li></ul><ul><li>The Lisbon objectives and rising number of students require additional funds </li></ul><ul><li>Demographic change places burden on a public sector </li></ul>
  16. 16. <ul><li>Students choose lucrative professions </li></ul><ul><li>Students as customers can demand more of the universities </li></ul>
  17. 17. <ul><li>Education is receives by the well-of </li></ul><ul><li>Individual rate of return for education investment is higher than the social rate of return </li></ul><ul><li>Public spending increases the private rate of return in relation to the social rate of return </li></ul><ul><li>Those who benefit should bear the costs </li></ul>
  18. 18. <ul><li>If students are able to pay for their education they study harder and graduate faster </li></ul><ul><li>When education was free, it was seen as of lesser value </li></ul>
  19. 19. <ul><li>Upfront fees </li></ul><ul><li>Loans </li></ul><ul><li>Graduate tax </li></ul>
  20. 20. <ul><li>Relation to costs </li></ul><ul><li>Relation to income </li></ul><ul><li>Relation to duration of studies </li></ul><ul><li>Time and mode of payment </li></ul>
  21. 21. <ul><li>The proportion of actual costs </li></ul><ul><li>Bearing full costs </li></ul><ul><li>Bearing partial costs </li></ul><ul><li>What costs should be covered? </li></ul><ul><li>Teaching/Teaching and research </li></ul><ul><li>Differences between disciplines and universities </li></ul>
  22. 22. <ul><li>Same fees for all </li></ul><ul><li>Lower/subsidized fees for low income groups </li></ul><ul><li>Local/Foreign students </li></ul><ul><li>Full time/Part time students </li></ul><ul><li>HE/Open HE </li></ul>
  23. 23. <ul><li>Equal fee for all years of study </li></ul><ul><li>On the basis of costs the fee rises as the studies progress </li></ul><ul><li>To hasten graduation the fee rises as the studies progress </li></ul>
  24. 24. <ul><li>Time </li></ul><ul><li>Upfront </li></ul><ul><li>After graduation </li></ul><ul><li>Mode </li></ul><ul><li>Payment according to costs </li></ul><ul><li>Payment according to income </li></ul><ul><li>Paying the loan </li></ul><ul><li>Paying tax </li></ul>
  25. 25. <ul><li>Partial fees introduced or raised in many European countries (e.g. UK, Germany, Austria, etc.) </li></ul><ul><li>Nordic countries are influenced as well </li></ul>
  26. 26. <ul><li>Tuition fee for non-EEA students in Denmark </li></ul><ul><li>Swedish social-democrats are in favor of tuition fees for foreign students </li></ul><ul><li>Recurring discussion in Finland </li></ul>
  27. 27. <ul><li>Education as a right </li></ul><ul><li>Investment in the future of society </li></ul><ul><li>Equal Opportunities </li></ul><ul><li>Fees hinder the internationalization </li></ul>
  28. 28. Funding. Further Challenges <ul><li>The Bad News </li></ul><ul><li>The European public purse is already streched. </li></ul><ul><li>Bologna requires more and not less funding. </li></ul><ul><li>Health and social support compete with HE for public funds. </li></ul><ul><li>Funding gap cannot be bridged by tuition fees alone. </li></ul>
  29. 29. Collaboration & Competition <ul><li>Universities need to diversify sources of income. Research contracts, consultancy, knowledge tranfer and fund raising. </li></ul><ul><li>Compete , nationally and internationally for funds, with other universities and industry </li></ul><ul><li>& </li></ul><ul><li>Collaborate with other universities and industry. </li></ul><ul><li>Compete for brains. The potential of income trough research depends on attracting the good and retain the best. </li></ul>
  30. 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. 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. 32. <ul><li>Globalisation of Higher Education </li></ul>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. 33. Higher Education as Business Internationalisation is changing the world of higher education, and globalisation is changing the world of internationalisation. (Jane Knight)
  34. 34. Migratory Flows <ul><li>Imbalance between educational need and educational capacity. </li></ul><ul><li>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 </li></ul><ul><li>Established universities should build the capacity of universities in the develloping countries. </li></ul>
  35. 35. <ul><li>Universities must be responsive and responsible. </li></ul><ul><li>Receptive to what society expects from them. </li></ul><ul><li>Markets shape course content and research agenda. </li></ul><ul><li>Serve as critics of society and sustaining society cultural heritage. </li></ul>Responsive and Responsible
  36. 36. Joint together with governments and industry in order to secure long-term prosperity and stability of humankind.
  37. 37. Universities long viewed as ivory towers are increasingly recognized as oil wells of the new economy. (David Ward)
  38. 38. IVORY TOWER University, the Palace of Paradox OIL WELL WATCH TOWER
  39. 39. References: <ul><li>Articles and Papers: Europe-Institute of International Education </li></ul><ul><li>Bologna Process: European Higher Education Area </li></ul><ul><li>Demographic Trends and Risks for European Higher Education </li></ul><ul><li>EDULINK Program: ACP-EU Partnership in Higher Education </li></ul><ul><li>ENQA and the Bologna Process </li></ul><ul><li>Europe’s Agenda on Global Competition </li></ul><ul><li>European Internalization Programs </li></ul><ul><li>Henttonen, A. (2010), Tuition Fees </li></ul>