B. Johnstone Worldwide Challenges and Policy Trends in Higher Education Finance and Accessibility Accessibility of Higher Education: challenges for Transition

B. Johnstone

Worldwide Challenges and Policy Trends in Higher

Education Finance and Accessibility

Accessibility of Higher Education: Accessibility of Higher Education: challenges for Transition Countrieschallenges for Transition Countries

Moscow, June 29-30, 2004Moscow, June 29-30, 2004

Bruce Johnstone State University of New York at Buffalo Professor of Higher and Comparative Education Professor of Higher and Comparative Education Director Center for Comparative and Global Director Center for Comparative and Global

Studies in EducationStudies in Education Director, International Comparative Higher Director, International Comparative Higher

Education Finance ands Accessibility ProjectEducation Finance ands Accessibility Project Former Chancellor. State University of New York Former Chancellor. State University of New York

system and President, State University of New system and President, State University of New York College at Buffalo. York College at Buffalo.

Policy Goals forHigher Education, Worldwide 1.1. QualityQuality

2.2. Responsiveness / Appropriateness to Responsiveness / Appropriateness to social Needssocial Needs

3.3. AccessibilityAccessibility

1. Quality

As measured by:As measured by:

1.1. Internationally recognized scholarshipInternationally recognized scholarship

2.2. Internationally attractive / competitive programs Internationally attractive / competitive programs for studentsfor students

3.3. A national sense of satisfaction / pride by”A national sense of satisfaction / pride by” LeadersLeaders StudentsStudents facultyfaculty

2. Responsiveness / Appropriateness:

a proper mix or diversity of: Institutions by:Institutions by:

researchresearch teachingteaching

Programs:Programs: ContentContent LengthLength Standards and academic rigorStandards and academic rigor

3. Accessibility:or degree to which:

1.1. Higher education Higher education diminishesdiminishes intergenerational intergenerational transmission of privilege;transmission of privilege;

2.2. Higher education generally mirrors secondary Higher education generally mirrors secondary school demographics in terms of:school demographics in terms of:

ClassClass EthnicityEthnicity LanguageLanguage GenderGender

Challenges to (Problems of) Higher Education Worldwide

1.1. AusterityAusterity

2.2. Insufficient contribution to social equityInsufficient contribution to social equity

3.3. Inadequate teaching and learningInadequate teaching and learning

4.4. Insufficient responsiveness / mix of Insufficient responsiveness / mix of institutions and programsinstitutions and programs

Challenges / Problems Worldwide …

1. Austerity1. Austerity Natural trajectory of costs exceeding that of Natural trajectory of costs exceeding that of

revenues.revenues. Resistence of universities to concepts and Resistence of universities to concepts and

practices of efficiency and productivity .practices of efficiency and productivity . Insufficient Governmental Revenue due to:Insufficient Governmental Revenue due to:a)a) Increasing difficulty of taxationIncreasing difficulty of taxationb)b) Increasing difficulty of deficit financingIncreasing difficulty of deficit financingc)c) Increasing competition / public needs.Increasing competition / public needs.


2.Insufficient contribution of higher 2.Insufficient contribution of higher education to social equityeducation to social equity

Universal correlation of academic Universal correlation of academic preparedness & interest with social class (and preparedness & interest with social class (and ethnicity, etc)ethnicity, etc)

Most measures to enhance equality need to Most measures to enhance equality need to occur occur long beforelong before higher education higher education


3. Inadequate teaching and learning3. Inadequate teaching and learning Tradition of academic freedom (to teach Tradition of academic freedom (to teach

poorly) poorly) Absence of universally-recognized superior Absence of universally-recognized superior

instructional methodologyinstructional methodology Perverse incentives (primacy of research)Perverse incentives (primacy of research)


4. Insufficient responsiveness / mix of 4. Insufficient responsiveness / mix of institutions and programsinstitutions and programs Universal resistance of any organization to Universal resistance of any organization to

changechange Insufficient incentives on (public) institutions Insufficient incentives on (public) institutions

to changeto change

Conventional Worldwide Higher Educational Reform Agenda: Revenue diversification (including faculty Revenue diversification (including faculty

entrepreneurship & cost-sharing)entrepreneurship & cost-sharing) Means-tested grants and available loansMeans-tested grants and available loans Sector diversification Sector diversification Enhancement of institutional autonomyEnhancement of institutional autonomy Encouragement of private sector Encouragement of private sector Measures to enhance accountabilityMeasures to enhance accountability Enhancement of middle & secondary participationEnhancement of middle & secondary participation

Special Challenges for Russia & Other Transitional Countries

1. Inefficiency: high per-student costs1. Inefficiency: high per-student costs

2. Extreme limitations on government revenue2. Extreme limitations on government revenue

3. Extreme Resistence to “cost Sharing”3. Extreme Resistence to “cost Sharing”

4. Falling student populations4. Falling student populations

5. Tendency to perpetuate or even to 5. Tendency to perpetuate or even to exacerbate inequalities exacerbate inequalities

6. Corruption6. Corruption

Special Challenges Russia & Transitional …

1. Inefficiency: high per-student costs1. Inefficiency: high per-student costs Traditionally low student-faculty ratios Traditionally low student-faculty ratios Inefficient size of institutionsInefficient size of institutions


2. Limitations on Governmental Revenue2. Limitations on Governmental Revenue Loss of traditional form of taxationLoss of traditional form of taxation Lack of tax compliance cultureLack of tax compliance culture Lack of market value of taxable Lack of market value of taxable

propertyproperty Lack of inexpensive governmental Lack of inexpensive governmental

access to private capital access to private capital


3. Resistence to Universal “Cost-3. Resistence to Universal “Cost-Sharing” (tuition fees) Sharing” (tuition fees) Traditional European resistenceTraditional European resistence Public expectation of entitlementsPublic expectation of entitlements Constitutional / Framework Law Constitutional / Framework Law

ConstraintConstraint Easy compromise with “dual tuition fees”Easy compromise with “dual tuition fees”


4. Falling student populations 4. Falling student populations (demographics)(demographics)

May May relieverelieve nationalnational / / systemsystem financial financial problemproblem

May May exacerbateexacerbate institutionalinstitutional financial financial problemproblem


5. Higher Education’s perpetuation of 5. Higher Education’s perpetuation of inequalityinequality

Official refusal to recognize problem Official refusal to recognize problem Tradition of “equity by single example”Tradition of “equity by single example” De facto cost-sharing De facto cost-sharing withoutwithout::

Effective means-tested assistanceEffective means-tested assistance Generally available loansGenerally available loans


6. Corruption6. Corruption Extreme impoverishment of institutions Extreme impoverishment of institutions

& individuals& individuals Unformed or unclear rules / guidelinesUnformed or unclear rules / guidelines Tradition of deviation from “official” Tradition of deviation from “official”

rulesrules

Some Issues and Questions for this Conference

1.1. Russia and most European Transitional Russia and most European Transitional Countries already have de facto cost-Countries already have de facto cost-sharing in “dual track” tuition fees:sharing in “dual track” tuition fees:

How can this revenue be made more How can this revenue be made more substantial and predictable to benefit the substantial and predictable to benefit the institutions?institutions?

How can the inevitable “cost-sharing” be How can the inevitable “cost-sharing” be made equitable and less of a barrier to made equitable and less of a barrier to accessibility?accessibility?

Some Issues and Questions …

2. Considering the goal of 2. Considering the goal of increasing increasing accessibilityaccessibility—with special attention to —with special attention to rural, low income, and ethnically & rural, low income, and ethnically & linguistically minority youth:linguistically minority youth: How can How can universitiesuniversities help -- with little or no help -- with little or no

additional money?additional money? How can How can governmentgovernment help --also with little or help --also with little or

no additional money)?no additional money)?

Some Issues and Questions …

3. Considering: (a) the higher educational austerity 3. Considering: (a) the higher educational austerity that today exists, (b) the great unlikelihood of that today exists, (b) the great unlikelihood of substantial additional governmental revenue; and substantial additional governmental revenue; and (3) the limitations on non-governmental revenue:(3) the limitations on non-governmental revenue: How can How can institutionsinstitutions themselves, through themselves, through

measures of efficiency, contribute more than measures of efficiency, contribute more than they already have to the needed additional (a) they already have to the needed additional (a) qualityquality and (b) and (b) accessibilityaccessibility? ?

Documents

B. Johnstone Worldwide Challenges and Policy Trends in Higher Education Finance and Accessibility Accessibility of Higher Education: challenges for Transition