ERIC Number: ED479838
Record Type: RIE
Publication Date: 2001
The Limits to Diversification of Sources of Funding in Higher Education. IIEP Contributions.
Varghese, N. V.
The economic crisis and the resulting financial squeeze of the 1980s led to reduced public funding support to education. The changing political view that continuation of public subsidies will reduce growth potentials of economies favored a market-friendly approach to development of education. The rate-of-return analysis gave currency to an argument that there was under-investment in primary education, and it provided a rationale to divert resources from higher to primary levels of education. The introduction of structural adjustment programs justified further reduction in public subsidies to higher education in many countries. The reform measures adopted by governments and institutions to overcome financial constraints included efficiency enhancing and cost-saving interventions, diversification or cost-sharing measures, income-generating activities, and privatization policies. The paper closely scrutinizes institutional capacity to initiate and sustain income-generating activities in the long run. The paper makes the case that, in the ultimate analysis, entrepreneurial universities become a desirable arrangement when the income generated by them far exceeds what could have otherwise been available from the public sources. The expectation is that recent initiatives to mobilize resources by the universities will lead to a better balance in sharing resources between public and private sources, and the sector will receive increased support from both public and private sources of funding. (Contains 21 references.) (Author/SLD)
Descriptors: Decentralization, Economic Factors, Educational Finance, Financial Support, Foreign Countries, Government Role, Higher Education, International Education, Resource Allocation
International Institute for Education Planning, 7-9 rue Eugene Delacroix, 75116 Paris, France. Tel: 33(1)45-03-77-00; Fax: 33(1)40-72-83-66; Web site: http://www.unesco.org/iiep.
Publication Type: Reports - Research; Speeches/Meeting Papers
Education Level: N/A
Authoring Institution: United Nations Educational, Scientific, and Cultural Organization, Paris (France). International Inst. for Educational Planning.
Note: Paper presented at the General Conference of the Institute of Management in Higher Education (Paris, France, September 11-13, 2000).