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Financial Aspects of Higher Education in Europe

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The State of Higher Education in Europe Anush Chubaryan University of South Carolina Globalisation: Challenges, Globalisation: Challenges, opportunities, outcomes opportunities, outcomes
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Page 1: Financial Aspects of Higher Education in Europe

The State of Higher Education in Europe

Anush ChubaryanUniversity of South Carolina

Globalisation: Challenges, opportunities, Globalisation: Challenges, opportunities, outcomesoutcomes

Page 2: Financial Aspects of Higher Education in Europe

Summary

Impact of Globalisation on Higher Education

Internationalisation & Competition

Globalisation of Higher Education

Challenges and Opportunities

Page 3: Financial Aspects of Higher Education in Europe

Impact on Higher Education

•Massification

•Bologna Process and the Lisbon Agenda

•Funding

•Governance

Internationalisation & Competition

Page 4: Financial Aspects of Higher Education in Europe

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

Page 5: Financial Aspects of Higher Education in Europe

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

Page 6: Financial Aspects of Higher Education in Europe

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

Page 7: Financial Aspects of Higher Education in Europe

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

Page 8: Financial Aspects of Higher Education in Europe

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.

Page 9: Financial Aspects of Higher Education in Europe

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.

Page 10: Financial Aspects of Higher Education in Europe

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.

Page 11: Financial Aspects of Higher Education in Europe

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.

Page 12: Financial Aspects of Higher Education in Europe

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

Page 13: Financial Aspects of Higher Education in Europe

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

Page 14: Financial Aspects of Higher Education in Europe

Once Free of Charge: Now Quite Expensive

Page 15: Financial Aspects of Higher Education in Europe

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

Page 16: Financial Aspects of Higher Education in Europe

Students choose lucrative professions

Students as customers can demand more of the universities

Page 17: Financial Aspects of Higher Education in Europe

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

Page 18: Financial Aspects of Higher Education in Europe

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

Page 19: Financial Aspects of Higher Education in Europe

Upfront fees

Loans

Graduate tax

Page 20: Financial Aspects of Higher Education in Europe

Relation to costs

Relation to income

Relation to duration of studies

Time and mode of payment

Page 21: Financial Aspects of Higher Education in Europe

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

Page 22: Financial Aspects of Higher Education in Europe

Same fees for all Lower/subsidized fees for low income groups Local/Foreign students Full time/Part time students HE/Open HE

Page 23: Financial Aspects of Higher Education in Europe

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

Page 24: Financial Aspects of Higher Education in Europe

Time Upfront After graduation

Mode Payment according to costs Payment according to income Paying the loan Paying tax

Page 25: Financial Aspects of Higher Education in Europe

Partial fees introduced or raised in many European countries (e.g. UK, Germany, Austria, etc.)

Nordic countries are influenced as well

Page 26: Financial Aspects of Higher Education in Europe

Tuition fee for non-EEA students in Denmark

Swedish social-democrats are in favor of tuition fees for foreign students

Recurring discussion in Finland

Page 27: Financial Aspects of Higher Education in Europe

Education as a right

Investment in the future of society

Equal Opportunities

Fees hinder the internationalization

Page 28: Financial Aspects of Higher Education in Europe

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.

Page 29: Financial Aspects of Higher Education in Europe

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.

Page 30: Financial Aspects of Higher Education in Europe

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)

Page 31: Financial Aspects of Higher Education in Europe

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

Page 32: Financial Aspects of Higher Education in Europe

•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.

Page 33: Financial Aspects of Higher Education in Europe

Higher Education as Business

Internationalisation is changing the world of higher

education, and globalisation is changing the world of

internationalisation.

(Jane Knight)

Page 34: Financial Aspects of Higher Education in Europe

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.

Page 35: Financial Aspects of Higher Education in Europe

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

Page 36: Financial Aspects of Higher Education in Europe

Joint together with governments and industry in order to secure long-term prosperity and stability of humankind.

Page 37: Financial Aspects of Higher Education in Europe

Universities long viewed as ivory towers are increasingly recognized as oil wells of the new economy.

(David Ward)

Page 38: Financial Aspects of Higher Education in Europe

IVORY TOWER

University, the Palace of Paradox

OIL WELL

WATCH TOWER

Page 39: Financial Aspects of Higher Education in Europe

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


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