20182 Higher Education in February 2000 Developing Countries Peril and Promise THE TASK FORCE ON HIGHER EDUCATION AND SOCIETY Higher Education in Developing Countries Peril and Promise Higher Education in Developing Countries Peril and Promise THE TASK FORCE ON HIGHER EDUCATION AND SOCIETY ©2000 The International Bank for Reconstruction and Development / THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All rights reserved Manufactured in the United States of America First printing February 2000 The material in this publication is copyrighted. The World Bank encourages dissemination of its work and will normally grant permission promptly. Permission to photocopy items for internal or personal use, for the internal or personal use of specific clients, or for educational classroom use, is granted by the World Bank, provided that the appropriate fee is paid directly to the Copyright Clearance Center, Inc. 222 Rosewood Drive, Danvers, MfA 01923, U.S.A., telephone 978-750-8400, fax 978-750-4470. Please contact the Copyright Clearance Center before photocopying items. For permission to reprint individual articles or chapters, please fax you request with complete information to the Republication Department, Copyrighlt Clearantce Cente-r, fax 978-750-4470. All other queries on the rights and licenses should be addressed to the World Bank at the address above or faxed to 202-522-2422. Book design by Naylor Design, Inc. ISBN: 0-8213-4630-X Library of Congress Cataloging-in-Publication Data is in process Published for the Task Force on Higher Education and Society by the World Bank 1818 H Street, NW Washington, DC 20433, USA Telephone: 202-477-1234 Facsimile: 202-477-6391 Telex: MCI 64145WORLDBANK MCI 248423WORLDBANK World Wide Web: http://www.worldbank.org E-mail: books@worldbank.org Contents Acknowledgments 5 Overview 9 The Task Force 9 Peril and Promise 9 WiderFocus 10 System Focus 10 Practical Solutions 11 The Way Forward 14 Introduction 1 5 New Realities 16 The Knowledge Revolution 17 Structure of the Report 20 Chapter 1. Longstanding Problems and New Realities 23 The Current Situationt 23 Expansion of Higher Education Systems 26 Differentiation of Higher Education Institutions 28 Knowledge Acceleration 32 Characteristics of the Revolution 33 Implications forDeveloping Countries 34 Implications for Higher Education 35 Conclusions 36 Chapter 2. Higher Education and the Public Interest 37 The Public Interest 37 The Influence of Rate-of-Return Analysis 39 Access to Higher Education 39 Research and the Public Interest 42 Higher Education and Democratic Vlalues 44 Conclusions 45 Chapter 3. Systems of Higher Education 46 Outline of a Higher Education System 46 Higher Education Institutions 48 Desirable Features of a Higher Education System 50 Role of the State 53 Financing a Higher Fducation System 54 Conclusions 58 Chapter 4. Governance 59 Major Principles of Good Governance 59 The Actual Situation 62 Tools for Achieving Good Governance 64 Conclusions 68 Chapter 5. Science and Technology 69 A Worldwide Issue 69 Background 69 Physical and Technical Resources 71 Human Resources 73 Local, Regional, and International Cooperation 77 Reforn of the International Intellectual Property Rights Regime 78 Strategies for Scientific Development 79 University-Industry Cooperation 80 Conclusions 81 Chapter 6. The Importance of General Education 83 What Is a General or Liberal Education? 83 Who Should Receive a Liberal Education? 87 Why Is General Education Relevant for Developing Countries? 87 What Are the Obstacles? 88 Conclusions 89 Conclusions 91 How Higher Education Supports Development 92 The Major Obstacles 93 What to Do? 94 The Bottom Line 97 Statistical Appendix 98 I: International Data 98 II. Selected Definitions 132 III: Primary Data Sources 134 2 Boxes, Figures, and Tables Boxes Box 1: Into the Heart of the Matter-The Travails of Higher Education in the Democratic Republic of the Congo (DRC) 18 Box 2: What If You Are Very Small? 34 Box 3: The Basics of Rate-of-Return Analysis 40 Box 4: Makerere University in Uganda 54 Box 5: A Double-Edged Sword 70 Box 6: When Students Study Overseas 74 Box 7: African Science Moves Forward 75 Box 8: Gender Agenda 76 Box 9: Home-Grown and Breaking New Ground: Another BRAC Initiative 85 Box 10: Singapore's Curriculum Renewal for National Goals 90 Figures Figure 1: Tertiary Enrollment Ratios, 1995 12 Figure 2: Average Primary Gross Enrollment Ratios by National Income, 1965 and 1995 26 Figure 3: Average Tertiary Gross Enrollment Ratios by National Income, 1965 and 1995 28 Figure 4: Percentage Share of Enrollment in Private Higher Education 30 Figure 5: Schematic Representation of a Differentiated Higher Education System 47 3 Tables Table 1: Ten Largest Distance-Learning Institutions 31 Table 2: Assigning Responsibility for Higher Education 56 Statistical Appendix Tables Table A: Gross Enrollment Ratios 104 Table B: Tertiary Enrollment Data 108 Table C: Attainment Rates (Percentage of Population over 25) 112 Table D: Public Expenditure on Education as a Whole 116 Table E: Expenditures on Tertiary Education 120 Table F: Other Educational Data 124 Table G: Other Data 128 4 Acknowledgments The Task Force on Higher Education in Developing Countries Vas convened by the World Bank and The United Nations Educational, Scientific and Cul- tural Organization (UNESCO). Task Force Members Mamphela Ramphele (South Africa) Vice-Chancellor, University of Cape Town (Co-chair and Steering Committee) Henry Rosovsky (United States) Former Dean of the Faculty of Arts & Sciences and Geyser University Professor Emeritus, Harvard University (Co-chair and Steering Committee) Kenneth Prewitt (United States) Director, US Bureau of the Census (Vice-chair and Steering Committee) Babar Ali (Pakistan) Pro-Chancellor, Lahore Universitv of Management Sciences Hanan Ashrawi (Palestine) Former Minister for Higher Education Jose Joaquin Brunner (Chile) Director, Education Program, Fundaci6n Chile and former Minister Secretary General Lone Dybkjaer (Denmark) Member, European Parliament and former Minister for the Environment Jose Goldemberg (Brazil) Professor, Universitv of Sao Paulo and former Minister of Education Georges Haddad (France) Professor, University of Paris/ Pantheon-Sorbonne Motoo Kaji (Japan) Vice-President, University of the Air Jajah Koswara (Indonesia) Director, Research and Community Service Development, Directorate General of Higher Education Narciso Matos (Mozambique) Secretarv-General, Association of African Universities Manmohan Singh (India) Member of Parliament and former Minister of Finance Carl Tham (Sweden) Secretary General, Olof Palme International Center and former Minister of Education and Science 5 Study Co-Directors Kamal Ahmad (United States) Attorney, Fried, Frank, Harris, Shriver & Jacobson (Steering Committee) David E. Bloom (United States) Professor, Harvard University (Steering Committee and Head of Task Force Secretariat) Not all members of the Task Force attended every meeting or commented on every draft. Individual differences concerning specific points may remain, but the document represents the consensus of all Task Force members. The principal drafters of this report were David Bloom and Henry Rosovsky. Task Force Supporters In preparing this report, the Task Force was greatly assisted by numerous individuals, whose support we would particularly like to acknowledge. Those who made substantive contributions, either verbally or in writing: Berhanu Abegaz; Dennis Aigner; Gregory Armstrong; Michael Aronson; Roberto Arni da; Saleem Badat;Jorge Balan; Charles Beirne; David Bell; Lakshmi Reddy Bloom; Derek Bok; Carolina Bori; Lewis Branscombe; Harvey Brooks; David Canning; Hernan Chaimovich; Richard Chait; Muhamed Ibn Chambas; The Civic Education Project; Joel Cohen; David Court; Veena Das; Satish Dhavan; Ronald Dore; Eunice Durham; Eva Egron-Polak; Donald Ekong; Ahmed Fssop; William Experton; Anna Maria Fanelli; Brian Figaji; Malcolm Gillis; Merle Goldman; Xabier Gorostiaga, SJ; Ada Pellegrini Grinover; G6ran Grosskopf; Wadi Haddad; Emily Hannum; Chester Haskell; Ruth Hayhoe; Robert Herdt; Werner Hirsch; Lauritz Holm-Nielsen; Gerald Holton; Adam Jaffe; Dimandja Kasongo; Shamsh Kassim-Lakha; Tom Kessinger; Ria7 Khan; Miryam Krasilchik; Suzanne Grant Lewis; Gustavo Lopez Ospina; William Loxley; Jacob Mamabolo; Jacques Markovich; Noel McGinn; G. A. Miana; Daniel Morales-Gomez; Jose Ignacio Moreno Le6n; Claudio de Moura Castro; Saralh Newberry; Dorothy Njeuna; Berit Olsson; Maris O'Rourke; Solomea Pavlychko; Vicky Phillips; Pasuk Phongpaichit; Luis Piazz6n; Colin Power; Sivraj Ramaseshan; Amulya Reddy; Fran- cisco Rivera-Batiz;Jeffrey Sachs; Sarah Sievers;Jan Sadlak; William Saint;Jamil Salmi; Komlavi F. Seddoh; Patrick Seyon; Khalid Hamid Sheikh; Jim Shute; Zillur Rahman Siddiqui; Andrew Sillen; S. Frederick Starr; Rolf Stumpf; Simon Schwartzman; Jamsheer Talati; Lewis Tyler; Emily 'Vargas-Baron; Hebe Vessuri; Louis Wells; Francis Wilson; Nan Yeld; and Harriet Zuckerman. 6 The Task Force also wishes to warmly recognize the generous financial support it received from the following organizations: The Canadian International Development Agency The Ford Foundation The Norwegian Agency for Development Cooperation The Novartis Foundation for Sustainable Development The Rockefeller Foundation The Swedish International Development Agency The Tetra Laval Group The William and Flora Hewlett Foundation The World Bank The support of one donor, who wishes to remain anonymous, is also gratefully ac- knowledged. Special Thanks The Task Force would particularly like to thank the following for their outstanding efforts on its behalf: Ismail Serageldin, who (along with Kamal Ahmad) recognized early on the need for an independent examination of higher education in the context of international development and whose efforts resulted in the establishment and initial funding of the Task ForceJoan Mlartin-Brown, who also provided enormously practical encour- agement and assistance in these efforts; Larry Rosenberg, whose substantive and administrative contributions to every aspect of the Task Force were truly exceptional; Philip Altbach, who served as a special consultalnL to the Steering Committee of the Task Force and whose extensive comments and suggestions are reflected throughout this report; Ava Cheloff, who performed the Herculean task of organizing the statis- tical appendix; Ruth Kagia, who did a magnificentjob moving the Task Force report from manuscript to publication; and River Path Associates, which did an extraordi- naryjob of editing the manuscript and aiding the Task Force in expressing its ideas as clearly and cogently as possible. In-Kind Contributions Several important in-kind contributions facilitated the work of the Task Force, which would like to express its gratitude to: The Aga Khan Development Network The Aga Khan University The Harvard Institute for International Development The Harvard School of Public Health The law firm of Fried, Frank, Harris, Shriver &Jacobson The Social Science Research Council UNESCO The University of Cape Town The University of Sao Paulo The World Bank 7 Research Assistants The following individuals, who are warmly thanked by the Task Force, provided out- standing research assistance to the Task Force Secretariat: Xiaonan Cao; Bryan Graham; Amar Hamoudi; Richard Hopper; Erin Kleindorfer; Stefanie Koch; Andrew Mellinger; Atif Rizni; and Carolyn Wood. Administrative Support Strong administrative support was crucial to the work of the Task Force, which would like to register its appreciation to: Ida Cooper; Rula Dajani; Jeanne Damlamian; Alice Dowsett; Anders Falk; Laura Fusaro; Helen Goodman; Sarwat Hussain; VivianJackson; AminaJacobs; Nancyjuskin; Gail Kovach; Brett Kravitz; Ellen Lee; Sarah Newberry; Maria Papadopoulos; Enid Sinequan; and Vera Helena Vieira. Seminar Participants Helpful comments on earlier versions of this report were received from participants in seminars and symposia conducted at: The Aga Khan University The Goddard Space Flight Center Harvard University Gradu]ate School of Education National Academy of Sciences and Humanities,Jerusalem The National University of Singapore UNESCO Gcncral Confercncc Seminar Hosts Further thanks go to the gracious hosts of the various meetings of the Task Force: The World Bank (Washington, D.C., United States, October 1997) The University of Cape Town (Cape Town, South Africa, February 1998) The Aga Khan Development Network (Geneva, Switzerland, September 1998) The University of Sao Paulo (Sao Paulo, Brazil, January 1999) The Social Science Research Council (New York, United States, July 1999) And finally... There are always a large number of other people and organizations who provide, in different ways, support, encouragement, and ideas during such a far-reaching and ambitious project. It is, of course, impossible to thank them all by name, but their help is much appreciated. The Task Force website is www.tfhe.net, where clectronic copies of the report can be searched and downloaded. The Task Force can be contacted at info4tfhe.net. 8 Overview Human history becomes more and more a race between education and catastrophe. H.G. Wells, The Outline of History The Task Force * the issue of how focusing on higher educa- tion as a system will yield the benefits of The Task Force on Higher Education and planned diversification; Society was convened by the WVorld Bank and UNESCO to bring together experts from 13 * the need to improve standards of gover- countries for the purpose of exploring the nance; future of higher education in the developing * the particularly acute requirement for bet- world. ter science and technology education; and Based on research and intensive discussion and hearings conducted over a two-year pe- * a call to develop imaginative general edu- riod, the Task Force has concluded that, with- cation curricula for certain students. out more and better higher education, devel- oping countries will find it increasingly difficult to benefit from the global knowledge- Peril and Promise based economy. The Task Force has attempted to clarif> the The world economy is changing as knowledge arguments for higher education development, supplants physical capital as the source of especially from the standpoint of public present (and future) wealth. Technology is policymakers and the international commui- driving much of this process, with informa- nity. It has also diagnosed specific problems tion technology, biotechnology, and other that are common across the developing innovations leading to remarkable changes in world-home to more than 80 percent of the the way we live and work. world's population-and suggested potential As knowledge becomes more important, so solutions. HigherEducation in Developing Coun- does higher education. Countries need to tries: Peril and Promise is split into six chapters, educate more of their young people to a which address: higher standard-a degree is now a basic qualification for many skilledjobs. The qual- * highereducation'slong-standingproblems ity of knowledge generated within higher and the new realities it faces; education institutions, and its availability to * the nature of the public interest in higher the wider economy, is becoming increasingly education; critical to national competitiveness. 9 This poses a serious challenge to the devel- * produce a body of students with a general oping world. Since the 1980s, many national education that encourages flexibility and governments and international donors have innovation, thus allowing the continual re- assigned higher education a relatively low pri- newal of economic and social structures rel- ority. Narrow-and, in our view, misleading- evant to a fast-changing world; economic analysis has contributed to the view tateach students not just what is currently that public investment in universities and col- knowsn, but also how to keep their knowl- leges brings meager returns compared to edge up to date, so that they will be able to investment in primary and secondary schools, refresh their skills as the economic environ- and that higher education magnifies income metcaesan inequality. ~~~~~ment changes; and inequality. t As a result, higher education systems in * increase the amount and quality of in-coun- developing countries are under great strain. try research, thus allowing the developing They are chronically underfunded, but face world to select, absorb, and create new escalating demand-approximately half of knowledge more efficiently and rapidly today's higher education students live in the than it currently does. dearelopin g world. Faculty are often under- The Task Force recognizes that there are many qualified, lack motivation, and are poorly re- difficulties in achieving these aims, including warded. Students are poorly taught and cur- the plethora of competing demands for pub- ricula underdeveloped. Developed countries, lic money. Action, therefore, will need creativ- meanwhile, are constantly raising the stakes. A new vision of what ity and persistence. Anwvso fwa Quite simply, many developing countries will higher education can achieve is required, need to work much harder just to maintain combined with better planning and higher their position, let alone catch up. There are standards of management. The strengths of notable exceptions, but currently, across most of~~~~~~~~~ ~ th.eeoigwrd,teptnilo all players-public and private-must be used, of the developing world, the potenitial of highe educati toprmotedevewith the international community at last hing redation to promoe. d emerging to provide strong and coordinated being realized only marginally. .. . support and leadership in this critical area. Wider Focus System Focus The Task Force is united in the belief that The Task Force recommends that each devel- urgent action to expand the quantity and improve the quality of higher education in n i developing countries should be a top devel- debate and determine what it can realistically opment priority. Developing countries need expect its higher education system to deliver. The debate must be informed by historical higJher education to: higher education to: and comparative knowledge about the con- * provide increasing numbers of students, tribution of higher education to social, eco- especially those from disadvantaged back- nomic, and political development-but also grounds, with specialized skills, because should take clear account of the challenges specialists are increasingly in demand in all the future will bring. It should establish for sectors of the world economy; each higher education system clear goals that policymakers can use to view the higher edu- 10 cation system as a whole, determining what On its own, the market will certainly not de- each part can contribute to the public good. vise this kind of system. Markets require profit This kind of holistic analysis of higher edu- and this can crowd out important educational cation systems has rarely been attempted. It duties and opportunities. Basic sciences and does not mean reverting to centrally planned the humanities, for example, are essential for systems-far from it. Instead, it offers the abil- national development. They are likely to be ity to balance strategic direction with the di- underfunded, unless they are actively encour- versity now found in higher education systems aged by leaders in education who have the across the developing world. This diversifica- resources to realize this vision. tion-a reaction to increased demand-has Governments need to develop a new role brought new providers (especially from the as supervisors, rather than directors, of higher private sector) into the system and encour- education. They should concentrate on estab- aged new types of institutions to emerge. It lishing the parameters within which success promises increased competition and, ulti- can be achieved, while allowing specific solu- mately, improved quality. tions to emerge from the creativity of higher Unfortunately, this promise will not be de- education professionals. livered if diversification continues to be cha- otic and unplanned. Players, new and old, will thrive only in higher education systems that Practical Solutions develop core qualities. These qualities in- clude: The Task Force has identified a number of * sufficient autonomy, with governments pro- areas where immediate, practical action is .. . '. . ~~~~~needed. These include: viding clear supervision, while avoiding day- to-day management; * funding-the Task Force suggests a mixed .. explicit stratification allowing insfunding model to maximize the financial -' exlctsrtfcto, aloigisiuin input of the private sector, philanthropic to play to their strengths and serve differ- inputlo the pivatetetio, phiant hropi individuals and institutions, and students. ent needs, while competing for funding, It also calls for more consistent and pro- faculty, and students; ductive public funding mechanisms. * cooperation as well as competition, resources-theTaskForcemakespractical whereby human and physical capital, as well suggestions for the more effective use of as knowledge and ideas, can be profitably . ° ' . s ~~~~phvsical and huinaD capital, including an shared within the system, creating, for ex- urgent plea for access to the new technolo- ample, a "learning commons" where facili- ties-computers, libraries, and laborato- g'snee ocnetdvlpn on ties-aomputens, to raluens; andlab tries to the global intellectual mainstream. ries-are open to all students; and * increased openness, encouraging higher governance-the Task Force proposes a set education institutions to develop knowl- of principles of good governance (acknowl- edged by many as the central problem fac- bsess (and tdevepe thei diaou with ing higher education in developing coun- usocinet that d to strongther democrue ac tries) and discusses tools that promote their society that will lead to stronger democracy ipeetto;btc aaeetwl implementation; better management wil and more resilient nation states. lead to the more effective deployment of limited resources. 11 -.0~~~~~~~~~~~~~~~~~~~~~~~~~-M 1 >5% and ~~~~~~~~~~~~~~~~~~~~~~~~~ 15%~~~~~~~Ci mor deeloed conmialdly0 ar oelkl- ob noldi ihreuain eetees hr r lorgoa rns anehdo numrou cuntie hae iffret erolmet atis hanmiht e xpete onth baisof ercaptaincme 1 2oDta_ Ak~~~~Ae Nige, a -f i V;o l 'Cbcd S.d.n - u'><"pfnm 'w r eoCumbodbo Pfbpprno Nigerio Ethiopio -Centool Ao toko a. tgo Comeroora' - Sumatie - Mooyro.o- - ''''- 'oogo Uganda r ooit Rwondog Kenyc DCo.Rop.of Burn di Congo - Tcnzonio Comoroms I lesb Pcpuo New Gojno o,/ j = XErm \ 14nr ran Angolo Zowio Mloowi a d;ii Zcmbic 4nf Fij lgotso r .d i 4-# IBRD 30716 JANUARY 2000 13 * curriculum development, especially in two The Way Forward contrasting areas, science and technology, and general education-the Task Force be- Higher Education in Developing Countries: Peril lieves that, in the knowledge economy, and Promise does not offer a universal blue- highly trained specialists and broadly edu- print for reforming higher education systems, cated generalists will be at a premium, and but it does provide a starting point for action. both will need to be educated more flex- The greatest desire of the Task Force is to cata- ibly so that they continue to learn as their lyze dialogue in countries around the world. environment develops. WThile the benefits of higher education con- tinue to rise, the costs of being left behind are also growing. Higher education is no longer a luxury: it is essential to national so- cial and economic development. 14 Introduction Today, more than ever before in human history, the wealth-or poverty-of nations depends on the quality of higher education. Those with a larger repertoire of skills and a greater capacity for learninlg can look forward to lifetimes of unprecedented economic fulfllment. But in the comzing decades the poorly educatedface little better than the dreary prospects of lives of quiet desperation. Malcolm Gillis, President of Rice University, 12 February 1999 Today, global wealth is concentrated less and skills required for the twenty-first century? less in factories, land, tools, and machinery. This challenge is well understood by most resi- The knowledge, skills, and resourcefulness of dents of the developing world. President Ben- people are increasingly critical to the world jamin W. Mkapa of Tanzania, for example, is economy. Human capital in the United States concerned that higher education in Africa is is now estimated to be at least three times becoming increasingly obsolete. "Our univer- more important than physical capital. A cen- sities," he says, "must produce men and tury ago, this would not have been the case. women willing to fight an intellectual battle The developed world is reacting quickly, for self-confidence and self-assertion as equal with education a major political priority. High- players in the emerging globalized world." quality human capital is developed in high- In light of these concerns, this report asks quality education systems, with tertiary edu- the following three questions: cation providing the advanced skills that W command a premium in today's workplace. porat is tan enhigher education in sup- Most developed countries have seen a substan- portmig and enhancilng the process of eco- tial rise in the proportion of their young people receiving higher education. Lifelong * What are the major obstacles that higher learning is also being used to help workers education faces in developing countries? adjust to rapidly chaniging economies. adjust torapidlychangingconomi* How canl these obstacles best be overcome? And what about developing countries?' Will they be able to compete in the knowl- Some readers will be surprised that we spend edge economy or do they face a future of this time reiterating arguments for the impor- increasing exclusion, unable to develop the tance of higher education. After all, educa- "Developing country" is not a precise term, although more socially, and economically. However, we are confident that than 80 percent of the world's population lives in a devel- general principles exist and have focused on issues that oping country, as conventionally defined by the World Bank arise most frequently, drawing conclusions that can be on the basis of income per capita. Our overview includes applied in many different countries. Exceptions do exist of Africa, much of Asia, nearly all of Latin America, and large course, and some readers will feel that certain points do parts of the former Soviet Union. Clearly, the developing not apply in their country. We hope this reaction will be world exhibits tremendous variation culturally, politically, rare. 15 tion is associated with better skills, higher pro- higher education has been forced to confront ductivity, and enhanced human capacity to what we refer to as the "new realities": expan- improve the quality of life. Education at all sion, differentiation, and the knowledge revolution. levels is needed if economies are to climb from These are changing higher education and the subsistence farming, through an economy environment in which it exists. All are now based on manufacturing, to participation in powerful influences in developing countries, the global knowledge econom,v. challenging policymakers to look afresh at During the past two or three decades, how- their systems of higher education and think ever, attention has focused on primary edu- creatively about what they can achieve. cation, especially for girls. This has led to a Expansion is a result of the tremendous in- neglect of secondary and tertiarv education, crease in the number of students. In the 1940s with higher education in a perilous state in and l950s, higher education in devcloping many, if not most, developing countries. With countries was characterized by few students a few notable exceptions, it is underfunded and graduates, with the students frequently by governments and donors. As a result, qual- in training for either the (colonial) civil ser- ity is low and often deteriorating, while access vice or a few professions. Today, however, remains limited. Higher education institu- there has been a dramatic shift from class to tions (and whole systems) are politicized, mass, with half of the world's students of poorly regulated, and sometimes corrupt. higher education living in developing coun- We believe that a more balanced approach tries. As more and more children complete to e(lucation at all levels is needed. The focus their primary and secondarv education, many on primary education is important, but an wish to continue to gain a degree. Develop- approach that pursues primary education ing countries have also seen real incomes ris- alone will leave societies dangerously unpre- ing, bringing further education within the pared for survival in tomorrow's world. reach of an increasing number of families. Expansion has produced a variety of con- sequences. In many instances, existing insti- New Realities tutions have grown in size, transforming them- selves into mega-universities; in other cases, Within a few decades of the end of World WAar traditional institutions have been replicated II, thte major colonial empires had disinte- by public or private means. An even more cre- grated. Initially, newly independent countries, ative response has been seen in differentiation, and poorer countries more generally, looked a process whereby new types of institutions are to their higher education systems to deliver born and new providers enter the sector. De- support for national efforts to raise standards veloping countries now have a tremendous of living and alleviate poverty. They also at- variety of colleges and universities, instead of tempted to widen access to higher education the small number of homogeneous institu- and, in some cases, there was a belief that tions existing 50 vears ago. Private institutions higher education could help make societies have joined public ones,2 while a range of more democratic, while strengthening human rights. 2 The terms "public" and "private" are frequently used in this report to describe institutons of higher education. No countrv can claim complete success in "Private," in particular, requires cautious application. Some achieving these traditional "nation-building" private schools are philanthropic entities and are not for profit. Generating surpluses is not the dominant motive of goals, but in most countries some progress has these organizations, and in that sense they resemble state been nmade on all three fronts. Since the 1960s, schools. 16 vocational and professional schools now combining imported technology from ad- complement the traditional universities. vanced countries with relatively cheap labor, Expansion has caused the average quality and by nmoving labor from low- to high-pro- of education to decline in many countries as ductivitv sectors. In this traditionial pattern of resources are stretched increasingly thin. De- development, an educated (and healthy) la- veloping countries now need to clarify the bor force is a great advantage, but the empha- national benefit they receive from education sis is on basic literacy and numeracy skills, and systems and to explore the results that a dif- the capacity to learn new tasks. ferentiated (and usually unplanned) system This pattern is still valid, but the late twen- delivers. Private institutions are currently tieth century saw the growth of a knowledge- growing most quickly, and there is an espe- centered, as opposed to a manufacturing-cen- cially urgent need to explore what the private tered, economy. The "knowledge revolution" sector can and cannot deliver. Policymakers has seen exponential and continuing in- can then plan for the orderly development of creases in knowledge in advanced countries a hiiglher educationi systeiim; establish meclha- since Wrorld XAar II. Many indicators confirm nisms to maintain quality; and, most impor- this, including the number of new patents, tantly, nurture areas for which private funds databases, andjournals, as well as research and are unlikely to be available. These include development expenditures. Nearly all indus- basic scientific research, support for the hu- tries have bcen affected, from biotechnology manities, and scholarship support to increase to financial services, with the nature of eco- access for underrepresented groups. nomic growth changing since "tinkerers" and craftsmen guided the early technology of the industrial revolution. Systematic knowledge The Knowledge Revolution has gradually replaced experience in further- ing technology, with sophisticated and theo- We live in a period of major str-uctural change. retical knowledge now the predominant path The classic industrial revolution that started for technical progress. The world's Silicon in the United Kingdom at the end of the eigh- Valleys are pushing the technological enve- teenth century spread gradually and unevenly lope: they are doing so by building on a thor- to Europe and beyond. By the end of the twen- ough understanding of the underlying sci- tieth century, a number of so-called follower ence. countries had joined the ranks of industrial Advances in information technology, mean- nationis, and today industrial countries are while, have made this ever-incr-easilng volumlle found throughout the world. Some have nar- of knowledge more accessible, effective, and rowed, and even closed, the gap between rich powerful. Networked computers and new and poor, with the East Asian countries being forms of telecommunications spread informa- a good example. Average incomes have tion around the world with dazzling speed. tended to increase across the world (except The Internet, in particular, means that more in Sub-Saharan Africa) in the past 20 years, knowledge than ever is in circulation. Those altlhouglh one-quartei of the world's popula- who have the skills to use it have access to an tion still lives in abject poverty. extraordinarily valuable (and sustainable) In a predominantly industrial economy, the resource. economic processes involved in catch-up are Participation in the knowledge economy well understood. Levels of agricultural and requires a new set of human skills. People manufacturing productivity must be raised by need to hiave higher qualifications and to be 17 capable of greater intellectual independence. zation and isolation. The result will be con- They must be flexible and be able to continue tinuing, if not rising, poverty. learning well beyond the traditional age for As Knowledge for Development, the 1998-99 schooling. Without improved human capital, Wtorld Development Report, puts it: "Knowledge countries will inevitably fall behind and expe- is like light. Weightless and intangible, it can rience intellectual and economic marginali- easily travel the world, enlightening the lives Like rnost developing0countries, the RC fa es pow- Pu l ivhasa r 2,500freshmen erful pressures to expandithiger educatsec- pceasing a blscieces And tor. After achieving indepen from Belm in a rigtseto bem psians, 1960, what is now: thehi la Afia c give tRo r with a current populatioo47illnh only two 1 ibita. 15hountry cniu to universities, ba combinedenoletwsaon2,0stdns enoldihihreuaincoprdtotrd- Five years lat i oreover moste new schools tion-as a pro f t letrepitra inedicine, tech- rep: the ages mrost rele od io s o speciali edutn remain rare. barely moeavzr(as The Dike many developing countries, faces percent ave oe of responding to increasing demand Bothe gn aons h whtin vide a quality education. The have attemptw curenrely difficult. Most universi- government e adaga ist:i-n es l privte, lack the necessary funds to tutes essigned tpr c ndary scol teach- provide basic educational infrastructure-sufficiently ers. Continuin access to higr educa- spacious classrooms, laboratories, equipped teach- tion has also l tetlishment of several pri- ing hospitals, libraries, computers, and Internet ac- vate three-year tes, as well as a few private cess. In general, students have no textbooks, and universities offering, among them, degrees in medi- professors must dictate their notes or copy them onto cine, the sciences, economics, international relations, a blac a The majority of schools have no library, law, politics, communications, humanities, and phi- no telehone, and not a single' cnomputer that stu- losophy. dents can use. Despitetheseinitiatives,demandcontinuest8out 0- Shools in the SDRCshare a 0number of serious strip capacity. Acute shortages are evident in tech- problems. The DRC as a whole lacks sufficient re- nology, the sciences, and edicine-fields i4n which sources to provide adequate support to faculty. Many training i's particularly expensive to provide. The num- professors therefore choose either to teach at sev- ber of requests forenro e in these fields is so eral universities t6 make ends meet, to move to cor- high that durng teA acadm ye15-,the potions, or simp ly to relocate to a developed coun- 18 of people everywhere. Yet billions of people portant to the future of the developing world still live in the darkness of povertyv-unneces- as it is right now. It cannot guarantee rapid sarily." In part, at least, people live in poverty economic development-but sustained because they cannot reach the switch to turn progress is impossible without it. on the light, and that switch is called educa- As the World Bank recognizes, the further tion. Higher education has never been as im- developing countries fall behind, the more dif- Box I continued try for higher pay. Several factors help to foment Public universities in the DRC also need the res- corruption and undermine professors' willingness to toration of managerial and financial autonomy (which evaluate students even-handedly, including low pay they lost in 1972). Autonomy could promote quality for faculty and salary payment delays lasting sev- education by stimulating competition, as was for- eral months. The current evaluation system is highly merly the case between Universite Lovanium, subjective and leaves students at the mercy of pro- Universit6 Officielle du Congo, and Universite Libre fessors who themselves often need to be evaluated. de Kisangani. Government will still need to play an Another critical issue is the shortage of faculty active role, overseeing the system and setting poli- with graduate-level training. Mostfacultyaretrained cies, standards, and regulations. In summary, the in overseas universities. The current scarcity of gov- DRC is a textbook example of systemic problems ernment resources and international scholarships for that are fundamentally undermining the country's overseas universities makes it difficult to plan any ability to capture the benefits of higher education. significanttraining of future faculty to expand higher Higher education involves more than teaching education. A plausible solution might begin with the relevant skills to students. Theoretical and applied establishment of a few graduate schools, in a vari- knowledge in a multitude of fields is created in uni- ety of disciplines, through cooperation with inter- versities, which also teach people how to access and national universities and foreign donors. use the world's knowledge. Developing countries Another problem with higher education in the DRC need strong universities not only to carry out their is that it is rarely possible to study part-time. In the own research, but also to select and absorb knowl- current official system, all students are registered for edge from all over the world. Undoubtedly other full-time attendance. Failing to pass any course auto- "green revolutions" will take place, and they are matically cancels all grades obtained that year, even likely to be even more complicated and knowledge- for courses that a student has passed. This practice intensive in their nature and application. Given the discourages working people from improving their skills international setting of higher education-the world- and contributing to the nation's development. A rare wide community of scholars, study and training, and exception is the American University of Kinshasa research reaching across borders-universities are (Universit6 Franco-Am6ricaine de Kinshasa), a private ideally suited for the tasks of selection and absorp- university that since 1994 has pioneered a credit-based tion of knowledge. system that also allows students to program their courses around a work schedule. 19 ficulties they face. They are, it says, pursuing * the wider political community, especially a moving target, as the high-income countries ministers of the economy and ministers of constantly push the knowvledge frontier out- industry, as well as business leaders whose ward and pull away from the rest. At one time support is vital to enabling higher educa- the rich countries might have viewed this fu- tion to reach its goals; ture with indifference, confident that they higher education professionals, such as were insulated from third-world misery. To- presidents, rectors, vice-chancellors, deans, day, with memories of the contagion that ac- and professors who are responsible for en- companied the first global financial crisis still acting reforms and creating institutions that fresh in people's minds, miserv has become pr-ovide a Inigh-quality and efficierit service; an infectious disease. The new realities do not supersede the tra- v lenders and donors, who must decide how ditioinal goals of hiigher education, however. they can best support the enhancement of Indeed, there are many overlaps. Democracy, higher education in the developing coun- for instance, has spread at the same time as tries; and the knowledge revolution has gathered pace. the general public (including students), It is founded both on well understood and whose understanding and support are ab- widely practiced standards of civic virtue, and solutelv necessary, given the quantity of on the knowledge that allows widespread par- ticipation in the running of a society, values that can be examined and propagated in higher education. higher education institutions more effectively The report helps guide these audiences than they currently are. through both the older problems and new Taken together, the new realities and tradi- realities faced by higher education. It avoids tional goals provide a powerful public-inter- treating in detail topics that have been fully cst argument for developing higher educa- and frequently examined by others, such as tion. The Task Force believes that the social financing and the use of new technologies in returns to investment are substantial and ex- education,3 and concentrates instead on ar- ceed private returns by a wider margin than eas that have received little consideration, es- was previously believed. pecially those that reflect new pressures on the system. Expansion, differentiation, and the knowledge revolution are discussed in Structure of the Report I On financing see, for example, D. Bruce Johnstone, "The Higher Education in Developing Countries: Financing and Management of Higher Education: A Status Peril and Promise is aimed at five key ReportonWorldwide Reforms," a papersupportedbythe World Bank in connection with the UNESCO World Con- audiences: ference on Higher Education, Paris, October 5-9, 1998; World Bank, HigherEducation: The Lessons of Experience, higher education policvymakers, including 1994; and A. Ziderman and D. Albrecht, Financing Univer- education ministers, members of govern- sities in Developing Countries, Washington, D.C./London: The Falmer Press, 1995. On technology see, for example, ing boards, and others, who need to under- John S. Daniel, Mega-Universities and Knowledge Media: stand the special needs and opportunities Technology Strategies for Higher Education, London: Kogan Page, 1996; and World Bank, World Development that higher education faces in the new cen- Report 1998-99: Knowledge for Devatoper', te tury; Oxford University Press, 1999. 20 detail, as are neglected topics of considerable ful. Each chapter directs attention to a major current importance, such as the governance issue in higher edutcation, starting a dialogue of higher education, the need to consider from which we hope more specific policy rec- higher education as a system, and the public ommendations will emerge. We have not at- interest in higher education. We also include tempted comprehensive studies of individual substantial discussions on improving science countries, or even of specific continents, but and technology research and instruction in have instead addressed problems that affect institutions of higher education, and on the many countries, cultures, histories, and tradi- nature and importance of general education. tions. WAe hope that each developing country, The report proceeds by reasoned argu- and each higher education institution, will ment, relying heavily on experience and be- find fresh insights in our work-and translate lief. Some empirical support is provided from them into new ways of working in their own case studies and statistical analysis, although context. further data analysis would certainly be use- 21 Longstanding Problems and New Realities T his chapter examines the current state of Faculty Quality higher education in developing coun- tries, and considers the new realities these A well-qualified and highly motivated faculty countries face and how they are reshaping is critical to the quality of higher education their response to ongoing challenges. In the insitutieons Unfortunately, even at flagship past decades, developing countries have wit- universities in developing countries many nessed a rapid expansion of higher education, faculty members have little, if any, graduate- the simultaneous differentiation of higher level training. This limits the level of knowl- education institutions into new forms, and the edge imparted to students and restricts the increasing importance of knowledge for so- students' ability to access existing knowledge cial and economic development.4 We focus and generate new ideas. on issues affecting most developing coun- Teaching methods are often outmoded. tries-exceptions exist, but should not affect Rote learning is common, with instructors the main thrust of our argument. In subsequent doing little more in the classroom than copy- chapters, we explore the strategies and initia- ing their notes onto a blackboard. The stu- tives that are needed to meet these challenges. dents, who are frequently unable to afford a textbook, must then transcribe the notes into a notebook, and those students who regurgi- tate a credible portion of their notes from The Current Situation memory achieve exam success. These passive Higher education institutions clearly need approaches to teaching have little value in a well-designed academic programs and a clear world where creativity and flexibility are at a mission. Most important to their success, how- premium. A more enlightened view of learn- ever, are high-quality faculty, committed and ing is urgently needed, emphasizing active well-prepared students, and sufficient re- intellectual engagement, participation, and sources. Despite notable exceptions, most discovery, rather than the passive absorption higher education institutions in developing of facts. countries suffer severe deficiencies in each of Improving the quality of faculty is made these areas. As a result, few perform to a con- more difficult by the ill-conceived incentive sistently high standard, structures found in many developing coun- tries. Faculty pay is generally very low in rela- We realize that the differentiation of higher education in- tion to that offered by alternative professional stitutions is not a new phenomenon, as different types of occupations. Pay increases are governed by colleges and universities have existed for centuries. What bureaucratic personnel systems that reward is new, however, is the strength of the forces driving differ- long service rather than success in teaching entiation, the pace at which it is occurring, and the variety of institutions being created. or research. Market forces, which attempt to 23 reward good performance, are seldom used which they are affiliated. With wages so low, it to determine pay in the higher education is difficult to condemn such behavior. sector. While pay disparities make it difficult to Problems Faced by Students attract talented individuals, recruitment pro- cedures are often found to hinder intellectual In many institutions, students face difficult growth. Some developing countries have been conditions for study. Severely overcrowded slow to develop traditions of academic free- classes, inadequate library and laboratory fa- dom and independent scholarship. Bureau- cilities, distracting living conditions, and few, cracy and corruption are common, affecting if any, student services are the norm. The fi- the selection and treatment of both students nancial strains currently faced by most uni- and faculty (see Chapter 4). Favoritism and versities are making conditions even worse. patronage contribute to academic inbreeding Many students start their studies academi- that denies universities the benefit of intel- cally unprepared for higher education. Poor lectual cross-fertilization. These problems basic and secondary education, combined arise most commonly in politicized academic with a lack of selection in the academic svs- settings, where power rather than merit tem, lie at the root of this problem. Yet rarely weighs most heavily in the making of impor- does an institution respond by creating reme- tant decisions. dial programs for inadequately prepared stu- Politicization can also have a wider impact dents. on the atmosphere of a system. While politi- Cultural traditions and infrastructure limi- cal activity on campuses throughout the world tations also frequently cause students to study has helped address injustices and promote de- subjects, such as humanities and the arts, that mocracy, in many instances it has also inap- offer limited job opportunities and lead to propriately disrupted campus life. Research, "educated unemployment." At the same time, teaching, and learning are extremely difficult there is often unmet demand for qualified when a few faculty members, students, and science graduates (see Chapter 5), while in student groups take up positions as combat- many societies women study subjects that con- ive agents of rival political factions. form to their traditional roles, rather than Higher education institutions rely on the courses that will maximize their opportuni- commitment of their faculty. Their consistent ties in the labor market. Better information presence and availability to students and col- on the labor market is needed, combined with leagues have an enormous influence in creat- policies that promote economic growth and ing an atmosphere that encourages learning. labor absorption. Also, many educated people Yet few institutions in developing countries come from wealthier backgrounds and are have strictures against moonlighting and ex- able to resist takingjobs in locations they con- cessive absenteeism. Many faculty work part- sider to be undesirable. Promoting an entre- time at several institutions, devote little atten- preneurial culture will encourage the creation tion to research or to improving their of more productivejobs. teaching, and play little or no role in the life Students also face the widespread require- of the institutions employing them. Faculty ment to choose their area of specialization members are often more interested in teach- early in their course, in some cases ahead of ing another course-often atan AmaccreditecX matriculation. Once a choice is made, change school-than in increasing their presence and is frequently difficult or even impossible. Such commitment to the main institution with inflexibility closes off options, with students 24 unable to sample courses in different academic In addition, capital and operating budgets areas. Early specialization can prevent costly in- are poorly coordinated. Often, major new fa- decisiveness, but systems that are unforgiving cilities are built, but then are left with no funds of early "mistakes" do not develop and unleash for operation and maintenance. The devel- the true potential of many students. oping world is littered with deteriorating buildings, inadequate libraries, computer Insufficient Resources and Autonomy laboratories that are rarelv open, and scien- tific equipment that cannot be used for want Many of the problems involving higher edu- of supplies and parts. It is often impossible to cation are rooted in a lack of resources. For carry over unspent funds for use in later years, examplc, developing countries spcnd far less and difficult to win a budget that is higher than developed countries on each student. than the previous year's actual expenditure. But finding new funds is not easy. Although This creates a "use-it-or-lose-it environment," absolute spending is low, developing countries resulting in overspending and misspent re- are already spending a higher proportion of sources. their (smaller) incomes than the developed Research universities face an array of espe- wvorld on higher education, with public spend- cially serious problems. Their role derives ing for education growing more quickly than from a unique capacity to combine the gen- income or total government spending. Higher eration of new knowledge with the transmis- education is clearly placing greater demands sion of existing knowledge. Recent pressures on public budgets,' with the private sector and to expand higher education, discussed at international donors taking up only some of length below, have in many cases diverted such the slack. Redirecting money from primary or universities from pursuing research, and their secondary education is rarely an option, with financial situation is further diminishing their spending per student on higher education research capabilities. Public universities in already considerably higher than is common Africa and Asia often devote up to 80 percent at other levels of the education system. of their budgets to personnel and student Most public universities are highly depen- maintenance costs, leaving few resources for dent on central governments for their finan- infrastructure maintenance, libraries, equip- cial resources. Tuition fees a-e ofteni egligible inent, or supplies-all key ingredients in or nonexistent, and attempts to increase their maintaining a research establishment. level encounter major resistance. Even when The disappearance of a research agenda tuition fees are collected, the funds often by- from these universities has serious conse- pass the university and go directly into the quences. The inability to pursue research iso- coffers of ministries of finance or central rcv- latcs the nation's elite scholars and scientists, enue departments. Budgets must typically be leaving them unable to keep up with devel- approved by government officials, who may opments in their own fields. As research uni- have little understanding of higher education versities lose their ability to act as reference in general, of the goals and capabilities of a points for the rest of the education system, particular university, or of the local context countries quickly find it harder to make key in wvhich it operates. decisions about the international issues affect- ing them. In addition to being severely underfunded, A lack of data on education costs prevents inferences about whether these increased expenditures imply quality soIIietimiies despite tleii best efforts, mainy changes. higher education institutions in developing 25 countries lack the authority to make key aca- Precursors demic, financial, and personnel decisions. They Over the past 50 years educational develop- can also be slow to devolve responsibility for decisionmaking to constituent departments. m Poor governance, in other words, dilutes their primary education. Starting from a low base, ability to spend what money they have, the results have been extraordinary. In 1965, less than half the adult population of devel- oping countries was literate-less than one- third in Sub-Saharan Africa and South Asia. Expansion of By 1995, however, 70 percent of adults liv- Higher Education Systems ing in developing countries were literate, with literacy levels above 50 percent even in Problems of quality and lack of resources are SbShrnArc.Pia sho nol compounded by the new realities faced by ry ments have skyrocketed, with variations in higher education, the first of which is expan- performane betwee rich van rioun- sion, as higher education institutions battle to tesfsrink a (see Figur 2). cope with ever-increasing student numbers. Re- As inc ing numbers(of stude com sponding to this demand without further dilut- pe priascol demn f access to ing quality is an especially daunting challenge. 0 :0S0V 1965 1995 Countries by Income rn Low m Middle _ High] Note: Countries are shown according to income groups as defined by the Worid Bank. The gross enrollrnent ratio can exceed 100 percent. See definition in Statistical Appendix. Source: Robert Barro and Jong-Wha Lee, Data Set for a Panel of 138 Countries, 1994; UNESCO, Division of Statistics, http://unescostat.unesco.org, March, April, and May, 1999; United Nations, World Population Prospects 1950-2050, electronic data set: Demographic Indicators 1950-2050,1996. 26 secondary education rises. In recent decades, by a factor of roughly 2.5 between 1975 and secondary enrollment ratios have increased 1990. In 1995 more than 47 million students significantly, and fuirther expansion is almost were enrolled in higher education in the de- certain. For example, between 1965 and 1995 veloping world, up from nearly 28 million in the secondary gross enrollment ratio6 in- 1980. For most developing countries, higher creased from 16 to 47 percent in Brazil, from education enrollments are growing faster than 5 to 32 percent in Nigeria, and from 12 to 30 their populations, a trend that will continue percent in Pakistan. This has a double impact for at least another decade. on higher education. More secondary stu- This continued expansion of higher edu- dents would mean more people entering cation is clearly necessary to meet increased higher education, even if the proportion pro- demand. However, it has brought with it some gressing remained constant. However, the new problems. For example China, India, In- proportion who do want to graduate to higher donesia, the Philippines, and Russia now have education is increasing substantially, as glo- systems of higher education serving 2 million balization makes skilled workers more valu- or more students. A further seven developing able and the international market for ideas, countries-Argentina, Brazil, Egypt, Iran, top faculty, and promising students continues Mexico, Thailand, and Ukraine-enroll be- to develop. tween 1 and 2 million students. To accommo- The substantial widening of access to pri- date so many students, some institutions have mary and secondary education has combined had to stretch their organizational boundaries with two other factors to impel the expansion severely, giving birth to "mega-universities" of the higher education system: (i) a rapid such as the National University of Mexico and increase in the number of people at the tradi- the University of Buenos Aires in Argentina, tional ages for attending higher education each of which has an enrollment of more than institutions,7 and (ii) a higher proportion of 200,000 students. secondary school graduates progressing to Expansion, both public and private, has higher education. Demographic change, in- been unbridled, unplanned, and often cha- come growth, urbanization, and the growing otic. The results-deterioration in average economic importance of knowledge and skills quality, continuing interregional, intercoun- have combined to ensure that, in most devel- try, and intracountry inequities, and increased oping countries, higher education is no longer for-profit provision of higher education- a small cultural enterprise for the elite. Rather, could all have serious consequences. it has become vital to nearly every nation's plans for development. Imbalances As a result, higher education is indisputably the new frontier of educational development Although higher education enrollment rose in a growing number of countries (Figure 3). sharply between 1980 and 1995 in both indus- The number of adults in developing countries trial and developing countries, the enrollment with at least some higher education increased rate in industrial countries has remaincd roughly five to six times that of developing See Statistical Appendix, Part 11, Selected Definitions, for definition. Within countries there are major imbal- There is nothing ephemeral about this trend. Demographic ances between urban and rural areas, rich and projections show that the number of 20- to 24-year-olds poor households, men and women, and will continue to increase rapid y in many developing coun- tries over the next decade. among ethnic groups. We know of no coun- 27 o 45 0.40 C-' 0.35 c0.30 E -~0.25 c LU ,, 0.20 0 4Xf o 0.1_5: 0.05 0 00 ~~ Low Middle Hg Note: Countries are shown according to income groups as defined by the World Bank. The gross enrollment ratio can exceed 100 percent. See definition in Statistical Appendix. Source: Robert Barro and Jong-Wha Lee, Data Set for a Panel of 138 Countries, 1994; UNESCO, Division of Statistics, http://unescostat.unesco.org, March, April, and May, 1999; United Nations, World Population Prospects 1950-2050, electronic data set: Demographic Indicators 1950-2050,1996. try in which high-income groups are not cent. Female enrollment is driving nearly half heavily over-represented in tertiary enroll- of the increased demand for higher educa- merits. For example, in Latin America, even tion, and will presumably promote greater thotugh the technical and professional strata gender equality. But at present, outside the account for no more than 15 percent of the industrial countries only Latin America and general population, their children account for the countries in transition have achieved over- nearly half the total enrollment in higher edu- all gender balance. cation, and still more in some of the best pub- lic universities such as the University of Sao Paulo and the University of Campinas in Bra- Differentiation of Higher zil, the Sim6n Bolivar University in Venezu- Education Institutions ela, and the National University of Bogota in Colombia. Not only have higher education systems ex- Between 1965 and 1995, the female share panded worldwide, the nature of the institu- of enrollment in higher education in the de- tions within these systems has also been shift- veloping world increased from 32 to 45 per- ing, through a process of differentiation. 28 Differentiation can occur vertically as the types is difficult to determine, the number of pri- of institutions proliferate, with the traditional vate institutions increased dramatically in research university being joined by polytech- many parts of Asia and Africa from the 1980s nics, professional schools, institutions that onwards-a process that started much earlier grant degrees but do not conduct research, in Latin America, where institutions with reli- and community colleges. Differentiation can gious affiliations are strong. also occur horizontally by the creation of new China now has more than 800 private institutions operated by private providers, higher education institutions, although the such as for-profit entities, philanthropic and Ministry of Education officially recognizes other nonprofit organizations, and religious only a handful of them. Nearly 60 percent of groups. The spread of distance-learning op- Brazil's tertiary-level students are currently en- erations is an increasingly important example rolled in private institutions, which comprise of differentiation and has both vertical and nearly 80 percent of the country's higher edu- horizontal features. cation system. At independence in 1945 In- Private education in developing countries donesia had only 1,000 tertiary-level students. has been growing since the 1960s. Not all of It now has 57 public universities and more this growth has been in for-profit institutions: than 1,200 private universities, with more than private philanthropic institutions have also 60 percent of the student body enrolled in been expanding. These are not-for-profit in- private institutions. In South Africa, roughly stitutions that rely on a combination of gifts half of the country's students are enrolled in and fees. Philanthropic institutions have private institutions (see Figure 4). played a particularly significant role in pro- This trend seems certain to continue. De- viding high-quality education, although nar- regulation in many countries is loosening the rowly defined and strongly rooted objectives state's grip on the founding and operation of can limit the extent to wvhich many of these private institutioins. WA7here demanid hias built institutions are able to advance the wider pub- up, growth is likely to be especially strong. A lic interest. Philanthropic institutions gener- growing private sector does not necessarily ally fall somewhere betveen public and for- lead to increased diversity, as new universities profit institutions, sharing some of the may simply imitate the curricular offerings of strengths, weaknesses, and objectives of each. the public universities (as has tended to hap- In many contexts the distinction between for- pen in Latin America). In general, though, profit and not-for-profit private institutions is new private institutions are likely to be soine- of greater practical significance than the more what innovative, if only because they do not traditional division between public and pri- have an institutional history to overcome. The vate institutions, since not-for-profit private ability to respond to the market and greater institutions frequently resemble public insti- legal freedom may also be important. Private tutions in terms of their mission and their universities in South Asia, for example, have structure. introduced innovations in the form of the se- mester system, standardized examinations, Horizontal Differentiation and credit systems. The creation of new universities by religious The growth of private higher education insti- organizations is a particularly important phe- tutions, especially for-profit institutions, is the nomenon. For example, the United Method- most striking manifestation of differentiation. ist Church established the African University Although the exact scale of private expansion in Zimbabwe, with department heads selected 29 . E ll m e r~~~~~~~~1 lEn }gr Ed:ucation PhilpP :00 00 0 ;0 0Ko eat;f\\.. japan indonea Co oc d0Bangladesh Pru Ecuador Zair Neal .L'\-ESu\"u\t':SS 2,G--., \ -\\:-v- \ Cu0 4100000-0'\0;0000\0 60 80 S O Note: I Japan and P tua fw W E e c : by th state w hich00 subsdize bot puli and prvt hihreuainisiuin.Suc:W rdBn,Hge Un0SVft002'ited Stetee 00 Ed\uction: E Th Lessons of Exerene 1994. 0f ff0 0 ' 30f :f i uatemala Tha0Do iliand:-0 0: S ::: Et,fd Salvador 0000ff 00 f,\ 00 '00 Mexic'\:foff': : I Vene'zuelaff:..... 0:::0 St:G ... Argen 0:00 0000:0tina204 6 0 0 Hon\0d'0f $0ff dura0s' :l. Note In apanandatefwWsenErpa onre hthv ihpooto ferlmnsi rvt Mnttton frealaeysia adteNterad) ihe dcto cniust b lotetieyfnne by the state Boichsbiieviapbi n riaehge dcto ntttin.Suc:WrdBn,Hge Education: ~~TaeLysoso xeine 94 30~~~~~~~~~~pi from among nationals of different African past two decades. Educators have long been countries. Well-established religious universi- using radio and television to reach students ties-Protestant, Catholic, and Muslim-op- in remote areas, but new satellite- and erate in Kenya, Tanzania, and Uganda. A simi- Internet-based technologies promise to ex- lar phenomenon involving Catholic tend distance-learning systems to a broader universities occurs in Latin America. group of students, ranging from those in Distance learning, in which students take sparsely populated, remote areas to those liv- classes primarily via radio, television, or the ing in dense urban agglomerations. In the Internet, has expanded enormously during United States, for example, the University of the past decade. (Both Nelson Mandela and Phoenix is vigorously promoting its online Robert Mugabe earned their degrees in this courses, while in the United Kingdom, the way, at the world's oldest distance-learning uni- publicly funded Open University has over 100 versity, the University of Sotuth Africa.) The courses that use information technology links five largest programs in the world are all based as a central part of the teaching-with 4,000 in developing countries, and all of these have students per day connecting via the Internet. been established since 1978 (see Table 1). Distance learning has greatpotential in the They claimed an aggregate enrollment of developing world, offering a powerful chan- roughly 2 million students in 1997, and ac- nel for bringing edulcation to groups that have count for about 10 percent of enrollment previously been excluded. In the future it is growth in developing countries during the almost certain to take place increasingly across Ten Largest Distance-Learning Institutions Budget Unit costb Institution Founded Students' (million US$) (percent) Anadolu University, Turkey 1982 578,000 30' 10 China TV University 1979 530,000 1d 40 Universitas Terbuka, Indonesia 1984 353,000 21 15 Indira Gandhi National Open University, India 1985 242,000 10 35 Sukhothai Thammathirat Open University, Thailand 1978 217,000 46 30 Korean National Open University 1982 211,000 79 5 National Centre for Distance Learning, France 1939 185,000 56 50 The Open University, Britain 1969 157,000 300 50 University of South Africa 1873 130,000 128 50 Payame Noor University, Iran 1987 117,000 13 25 ,Figures are for 1 994, 1995, or 1 996. b Cost per student as a percentage of average for other universities in that country. 'Open Education Faculty only. Central unit only. Note: The figures in the accompanying table are the best available, but we recognize that many uncertainties arise in dealing with these and other cross-country comparisons. Source: John S. Daniel, Mega-Universities and Knowledge Media: Technology Strategies for Higher Educa- tion, London: Kogan Page, 1996, as cited by Dennis Normile, "Schools Ponder New Global Landscape," Science, 277, July 18, 1997. 31 borders. Already over 12 percent of the United mitted to a less demanding two-year program. Kingdom's Open University students are resi- Both groups take the same classes, with less- dent outside the countrv. It is also easy to con- advanced students having to complete fewer ceive of high-quality developing country in- courses to graduate. As enrollments increase, stitutions offering educational progi-aiims and new specialties can develop, attracting the degrees in other parts of the developing critical mass of students and faculty that al- world. While a desirable development, this low institutions to set up new departments, would create a variety of problems relating to institutes, and programs. quality control and other forms of supervision. Differentiation is spurred on by the relax- ation of state regulations, but this poses seri- Vertical Differentiation ous quality problems. The argument that market forces will ensure suitable quality is While horizontal differentiation is driven by simplistic. Private institutions often receive increased demand for higher education, ver- public subsidies through tax deductions on tical differentiation is a reaction to demand financial contributions or donations of physi- for a greater diversity of graduates. In general, cal facilities from public sources, or by accept- economic development is associated with a ing students whose tuition is financed by the more refined division of labor, and higher government. To the extent that competition education institutions have an essential role is driven by cost alone, it is likely to abet the to play in imparting necessary skills. The in- provision of low-quality education. So-called creasing importance of knowledge makes this garage universities sometimes disappear as range of skills in wider demand than ever. quickly as they appeared, leaving students with Today's developing economy needs not only severe difficulties in establishing the quality civil servants, but also a whole host of other of their credentials. professionals such as industrial engineers, pharmacists, and computer scientists. Higher education institutions are adapting and new Knowledge Acceleration ones are emerging to provide training and credentials in new areas. As societies accept The expansion and differentiation of higher modern medicine, for example, they establish education is occurring at the same time as the not only medical schools, but also schools of pace of knowledge creation is dramatically pharmacy. accelerating. The categories into which new The labor market also creates a demand for knowledge falls are becoming increasingly graduates who have undergone training of specialized, and a revolution has occurred in different types and intensities. Both public people's abilitv to access knowledge quickly and private institutions have responded by and from increasingly distant locations. These creating academic programs that accommo- changes are fundamentally altering what date students with a wider range of capabili- economies produce, as well as where and how ties. Some new programs allow students to they produce it. Organizations are changing, earn lower-ranking degrees relatively quickly. as are the skills needed to run them and the In Bangladesh, some universities have two way they utilize human capital. streams of undergraduate students: oiie tlhat Industiial countries have been by far the is admitted for a standard three-year greatest contributors to, and beneficiaries of, bachelor's program, and another that is ad- this knowledge revolution. To the extent that 32 this trend continues, the income gap between 1996 industrial countries had about 20 industrial and developing countries will widen times as many personal computers per further. Higher education institutions, as the capita as middle-income countries (224 prime creators and conveyors of knowledge, versus 12 per 1,000 people) and more than must be at the forefront of efforts to narrow 100 times as many Internet hosts (203 ver- the development gap between industrial and sus approximately 2 per 10,000 people). developing counrtries. The spectacular advances in recent decades in computerization, communications, and in- Characteristic of the Revoution formation technology have greatlv enhanced Characterisfics of the Revolufion.. the ability of researchers and entrepreneurs The knowledge revolution can be described to create new knowledge, products, and ser- in a few key dimensions. vices. Developments in electronics and com- puterization in the 1950s and 1960s laid the Worldwide, the rate at which scientific pa- grouindwork for inicorporatinig imicroproces- pers are published has doubled in the past sors into a totally unanticipated array of de- two decades. In economies where scientific vices, thereby transforming old machines into capacity is expanding particularly rapidly, newtly "smart" ones, while creating new ma- such as China, Hong Kong, Singapore, chines at a breathtaking pace. New services South Korea, and Taiwan, the publication lhave pr-oliferated, transforming labor-inten- rate has more than doubled in the past sive tasks such as managing payroll and travel decade. The number of academicjournals reservation systems into technology-based ac- is now doubling roughly every five years, tivities. Factory production is increasingly with new titles reflecting increasingly nar- based on robotics and sophisticated computer row specialties. controls. Even automobile mechanics use - In both industrial and developing coun- computer-based analytical tools. tries, the number of patent applications has In recent years advances in communica- been increasing steadily. For example, in tions and information technology have taken 1996 residents of Brazil, India, and the center stage. Fax machines have turned many United States filed 42, 66, and 71 per-cent isolated offices into active nerve centers, only more patent applications, respectively, than to be superseded by electronic mail. Massive in 1986. databases have consolidated huge quantities * A country ranking of published scientific of information in one place, thereby allowing academics, entrepreneurs, and the general papers per capita during 1981-94 does not public t ntoetheneninl and rap inctid a inge dvelpin contr amngpublic to tap into them conveniently and rap- nclude a single developig countray amonlg idly. Most recently, the Internet has allowed the top 15. China and India make the ltst people to access information about an unprec- when assessed in terms of the absolute num- edented number of topics virtually instantly ber to papers pushed, buteo theis isodue and, in most cases, cheaply. One of the fac- mionly tors underlying these changes is a dramatic reduction in the cost and ease of transmitting * To a large extent the knowledge revolution data. It wAill soon be possible to transmit 100 has been driven by the use of personal com- times as much data, for approximately one- puters and the Internet. However, as of hundredth the cost, as in 1983. 33 Beyond all these advances lie revolutions Implications for in other fields. New technliques ill genetics and Developing Countries molecular biology have made possible new products, therapies, and cures, all of which The increasing importance of knowledge, in promise to transform radically the quality of conjunction with the fact that most developing life. Chemists, physicists, and engineers have countries are falling further behind in their abil- created new materials and processes, propel- itv to create, absorb, and use it, has some ma- ling plastics and ceramics into the heart of in- jor implications for developing countries. dustrial operations and adopting fiber optics . Countries that are only weakly connected as the lifeblood of international communica- to the rapidly emerging global knowledge tion. These changes are also creating formi- system will find themselves increasingly at dable new geopolitical, ethical, legal, and hu- a disadvantage. The gap between industrial man rights issues related to, for example, the and developing countries in per capita in- development of new weapons, the possibili- comes and standards of living will widen ties inherent in cloning, and the threat to pri- unless the corresponding gaps in knowl- vacy posed by centralized databases and their edge and access to knowledge are success- phenomenal reach. fully addressed. Th an0if! take time to adc;ress. scattered tt t i a a t st- -i iternational developments in distance ern ot ri ram s offer true potential to the country fes e mohwtoainter byp es citical capacity gaps. Access to inter- higer edueight higher n d a ing will be tried and closely education insstapiial off6ring courses linked t fon university programs. For this to hap- in health, e , techn tion hotel and pen, accreditation standards and entrance qualifica- catering stao , and maritime training, tions of applicants have to rise and collaborative in addition to adia ing center. They all fall assistance needs to be worked out with associated undertheur t Ma College of Higher institutions. On the whole, the Maldives is pinning Education (MacE)and each has branches in the its hopes on advanced telecommunications networks atolls.Cur n Edoes not grant degrees, but that will eventually make life-long learning inexpen- over time it einto a degree-granting insti- sive, even in remote islands. tution. The e ced by the Maldives are typi- In summary, the Maldives is experimenting with cal of'small-islst d include diseconomies education that meets local needs. The issue is not of scale, mainly d a scttered population; se- whether thea Maldives needs a traditional university, vere shorgef datedlabor to staff post- but rather how best to shape and deliver systems secondary insiu;oereiance on overseas that provideI high-quality, accredited courses to stu- edu cat tinfoalegree programs; and dents across the country. a3laca odutls se 34 * Within countries, inequality will probably Implications for rise as some individuals and groups use Higher Education their education (particularly higher educa- tion) to gain access to the knowledge sys- Knowledge has become a springboard for eco- tem and then translate that access into nomic growth and development, making the higher incomes. promotioni of a culture that supports its cre- ation and dissemination a vital task. * Rectifving this situation is critical, but not I . . Policymakers must keep a number of consid- easy. Although higher education is the tra- eration in mind ditional venue for gaining advanced knowl- edge, in many countries a large proportion * Students must learn Inot only what is known of secondary school graduates are ill pre- now, but also bow to keep their knowledge pared to continue their studies andjoin the up to date. New technologv-based tools for knowledge-centered world. Remedial pro- gathering knowledge must become central grams at some higher education institutions elements of their education, and curricula may lhelp rectify this problerm, but strenu- should be designed so that students learn oiis efforts to improve primary and second- how to learn. ary education, including an emphasis on Specialization is increasingly important. using technology to gain new knowledge, wilas e icsay Institutions of higher educafion will need to provide opportunities for in-depth study * Compared with investment in the produc- of particular fields, while also (as we argue tion of goods, investment in the produc- in Chapter 6) offering programs of general tion of new knowledge yields potentially education that can serve as a solid founda- higher economic returns, but entails higher tion for life-long learning and later special- risks. For example, designing and market- ization. in-ig the best computer-operating system in Institutional differentiation is a logical re- the world is enormously lucrative; the sec- sponsc to the increased specialization and ond- and third-best systems are far less prof- importance of knowledge. In many cases itable. This would surely not apply in the both new and reformed institutions can case of steel mills, oil refineries, or food- best serve the public interest by focusing processing plants. The winner-takes-all on a well-defined set of goals for a particu- character of investment in knowledge de- lar set of students. mands a high level of existing knowledge and skills even to enter the fray. Few devel- * Knowledge is being produccd throughout oping countries possess this knowledge. In the world, and active engagement with this way, the knowledge gap will effectively scholars in other countries is crucial for preclude many upper-middle-income devel- developing and maintaining a lively intel- oping countiies from paiticipating in, anid lectual community. Much new knowledge enjoying the benefits of, a growing and is an international public good, and its ben- highly profitable set of economic activities. efits will extend well beyond the borders of This issue is less relevant to low- and lower- the country in which it is created. Coun- middle-income countries, whose focus will tries that allow information to flow freely be on developing the capacity to access and will benefit more. assimilate new knowledge. 35 * The advances in communication and infor- to meet it with an array of new higher educa- mation technology that made such signifi- tion institutions. Rapid anxd chaotic expailsion cant contributions to the knowledge revo- is usually the result, with the public sector gen- lution mean that emphasis on these fields erally underfunded and the private (for- is likely to pay dividends in a wide variety profit) sector having problems establishing of areas. quality programs that address anything other than short-term, market-driven needs. A lack of information about institutional quality Conclusions makes it difficult for students to make choices about their education, making it hard to en- In most developing countries higlher educa- list coilsumer demand in the battle to raise tion exhibits severe deficiencies, with the ex- standards. Developing countries are left with pansion of the system an aggravating factor. a formidable task-expanding their higher Demand for increased access is likely to con- education system and improving quality, all tinue, with public and private sectors seeking within continuing budgetary constraints. 36 Higher Education and the Public Interest For centuries people have gained a substan- the impact of the new realities-especially tial benefit from the higher education they expansion and differentiation-on the have received-and wider society has ben- strength of the public interest. efited too. This public interest is central to the argument that collective action is needed to support, nurture, and strengthen higher The Public Interest education institutions. It also affects decisions on how much should be invested in higher Higher education simultaneously improves in- education and from what sources that invest- dividual lives and enriches wider society, indi- ment should come. cating a substantial overlap betwveen private It is good to keep in mind that international and public interests in higher education. support for higher education has passed Higher education raises wages and produc- through three overlapping phases in the past tivity, which makes both individuals and coun- half-century: tries richer. It allows people to enjoy an en- . genl s t thanced "life of the mind," offering wider v ersities;society both cultural and political benefits. versities; And it can encourage independence and mi- * an accelerated effort to establish a new type tiative, both valuable commodities in the of higher education institution, the "devel- knowledge society. opment university," focused on serving lo- The benefits of education, according to the cal development needs, especially in the Inter-American Development Bank's Facing up areas of agricultuire, liealth, and industiial to IntequazliTy in Latin ATnrwica (1999), for ex- development; and ample, are substantial. In Latin America as a * various attempts to establish centers of ex- whole, a worker with six vears of education cellence, especially in the areas of science earns 50 percent more than someone who has and technology, but only in a very select not attended school. This gap increases to 120 , but only in a veiT se percent for those with 12 years of education group of countries. (i.e., completing secondary school), and ex- These phases have had an uneven impact on ceeds 200 percent for those with 17 years of universities over the decades and have gradu- education (i.e., completing a university di- ally altered the way universities serve the pub- ploma). These benefits are "private," although lic interest. This chapter explores the precise there are also public benefits, as a better nature of the public interest in higher educa- trained workforce contributes to rising tax tion and discusses wly its inmportaince has streams, better liealthcare, impioved institu- tended to be underestimated. It also explores tional capital, and so forth. 37 The macroeconomic impact of education hard to keep up. They are becoming increas- is strong: just as individuals with better edu- ingly reliant on fee-based education and pri- cation tend to achieve greater success in the vate, for-profit providers. In this environment, labor market, so economies with higher en- education becomes more narrowly focused on rollment rates and years of schooling appear providing a skilled labor pool for the imme- to be more dynamic, competitive in global diate needs of the economy. Market forces pre- markets, and successful in terms of higher in- dominate and the public benefits of-and re- come per capita. The point is dramatically il- sponsibilities for-higher education recede lustrated by the experience of EastAsia. From from view. 1991 to 1995, East Asia experienced faster Certainly, competition within the higher growth per year than did Latin America. education sector can lead to higher standards Economists calculate that the higher educa- and to significant benefits for individual stu- tion levels of the East Asian workforce account dents. In many developing counties, however, for a full half-point of that difference. It is thus markets do not function well and this leads to in the interests of a much wider set of a serious misallocation of resources. Access, policymakers, as well as the business commu- for example, is limited by income, excluding nity, to become more actively involved in na- potentially able students and diluting the qual- tional debates about the reform and future ity of the student body. Poor market informa- of education systems. tion dilutes competition, allowing weak, ex- This chapter does not attempt to provide ploitative institutions-some of them an exhaustive catalogue of areas where there foreign-to survive and even prosper, and less- is a public return to investments in higher edu- ening the chances of dynamic new entrants. cation, above and beyond the private return. Even when markets work well and students The intention is to illustrate the public-inter- receive a quality service, private institutions est perspective as it relates to economic and may still fail to serve the public interest. For- social development, concentrating on higher profit institutions must operate as businesses, education's ability to: facing the market test and trying to maximize the return on their investment. It may not * unlock potential at all levels of society, help- mae goodrfinancialrsensesfornthemttoainves ing talented people to gain advanced train- ing whatever their background; in public-interest functions, and therefore they may underinvest in certain subjects and * create a pool of highly trained individuals types of higher education, even if these are that attains a critical size and becomes a key important to the well-being of society as a national resource; whole. The public sector thus retains a vital and, in our opinion, irreplaceable role in the * address tOpiCS whose long-term value to hue dcto etr society is thought to exceed their current h This role can take many forms. Govern- value to students and employers (for ex- . . i ments can be direct providers of higher edu- ample, the humanities); and cation, offer finance for its provision, or do * provide a space for the free and open dis- both. They can develop legal and regulatory cussion of ideas and values. institutions to promote and shape the higher education system, and regulate individual in- Developing countries are currently under o. whentheseareprivavetycha- great pressure to meet increased demand for tered and funded. higlher education, and many are finding it 38 But governments do not have an open- 1990. The World Bank drew the conclusion ended mandate in this area. Whatever their that its lending strategy should emphasize policies, they must be able to demonstrate that primary education, relegating higher educa- they are using resources in a way that offers tion to a relatively minor place on its develop- society benefits that the private sector cannot ment agenda. The World Bank's stance has supply. The public interest argument cannot been influential, and many other donors have be a cover for public sector waste, inefficiency, also emphasized primary and, to some extent, or lack of vision. secondarv education as instruments for pro- moting economic and social development. The Task Force fully supports the continu- The Influence of ation of large investment in primary and sec- Rate-of-Return Analysis ondary education, but believes that traditional economic arguments are based on a limited Although the concept of human capital dates understanding of what higher education in- to Adam Smith's Inquiry i nto the Nature and stitutions contribute. Rate-of-return studies Causes of the Wealth of Nations (1776), it is only treat educated people as valuable only within the past 50 years that labor economists through their higher earnings and the greater have seriously examined the returns to invest- tax revenues extracted by society. But edu- ment in education. By the mid-1970s tech- cated people clearly have many other effects niques focused on the difference between av- on society: educated people are well posi- erage annual earnings among people with tioned to be economic and social entrepre- different levels of educational attainment (for neurs, having a far-reaching impact on the examplc, secondary versus primary school economic and social well-being of their com- graduates). They also analyzed differences be- munities. They are also vital to creating an tween social and private rates of return, by environment in which economic development comparing the amount of public subsidy re- is possible. Good governance, strong institu- ceived by education with the amount of extra tions, and a developed infrastructure are all tax society was able to levy on resultant higher needed if business is to thrive-and none of earnings. these is possible without highly educated These techniques seemed to demonstrate people. Finally, rate-of-return analysis entirely that higher education offered lower private misses the impact of universitv-based research returns than primary education. They also on the economy-a far-reaching social ben- showed that social returns were lower and, efit that is at the heart of any argument for considering that higher education absorbs developing strong higher education systems. considerably higher investment, they demon- strated that the public interest in higher edu- cation was substantially lower than that in pri- Access to Higher Education mary education. Taken together, these results provided a powerful justification-especially An important ingredient in the public inter- for international donors and lenders-for fo- est in higher education is its role in creating a cusing public educational investment at the meritocratic society that is able to secure the primary level. Thisjustification was further re- best political leaders and civil servants, doc- inforced by the obvious gains in social equity tors and teachers, lawyers and engineers, and associated with such a strategy, as highlighted business and civic leaders. These people are and endorsed by the Jomtien Declaration in often selected from the most educated, and 39 ferent levlofeuainalwpulcoicakr221354) to judge t ch Oe bt privateand social rates of return are target difnt te euc ate t y to calculate the difference in bor econon tr constrt ngt rae-..,homuch society benefits above such estie O return.mItis this difference comparing thecaagee o n- thatpovdsan econic jus tif icationv for govern- ous stages o u a, i return exceeds the private those w hae coryu or- th l th e unfettered pperation of sus tho whaveo t, or tsw heo privarkt(ocldlaii )will not pro- eted hig w hhe point education ne ihtecmlto fscnayo iwo oit.(hsi eas rvt markets school). Atajtigodir o privatrus,whereas so- wit ;:thecrepning levls of educainlahee it hudbs itsdecisions o oia eursAso,; 0~~~~~~~~~~~~~~~~~~~~~~t eai o conbf h acththevleo a givensuoftht forhfighredction, 0+this in tr ugssta ferentials can be expressed in dassic "rates Suchdard000 analyses were undertaken, an cncluded dentsan their families. Standardreferencesonthestoppedthere, sistentlyfalingto reflect that the calculation of rates of return abound, with the lead- benefits of higher educationextend well beyond the ing collection of actual estimates reported by George incrementalearnings faccruing to those individuals an economy is less likely to develop when they to the social and economic development of a are chosen from the richest, rather than the modern society, giving benefits to the society most talented. The Task Force challenges the as a whole and not merely to those being edu- notion that public investment in higher edu- cated. In addition, higher education has acted cation is socially inequitable. This notion rests as a powerful mechanism for upward mobil- on the argument that university graduates ity in many countries, allowing the talented constitute the future elite of society, and al- to thrive irrespective of their social origins. ready have tle advantage of tending to come Broadeniing access to higlher- education is from the better-off families and are thus not an ongoing process and work still needs to be deserving of public subsidy. This argument done. This should include helping disad-can- overlooks two self-corrective tendencies. An taged groups to overcome the endemic prob- educated and skilled stratum is indispensable lems that exclude them from the system. 40 Equally important is a careful examination of lence and equity. In an ideal society, excel- ways to reform tuition and fee structures that lence is best promoted by policies that select exclude candidates from poorer backgrounds. a society's most creative and motivated mem- And finally, measures are required to stamp out bers for advanced education. But selection corruption in awarding places in universities. based on prior achievement will only reinforce a history of discrimination and underachieve- Problems Facing Women and iment. Equally, progr-ams to increase equitywill Disadvantaged Groups prove unsustainable if they are seen to under- mine the standards of excellence on which Disadvantaged groups-whether they are ra- higher education is based. Merit criteria can- cial, linguistic, or religious groups in specific not be relaxed. Awarding degrees or certifi- societies, or women almost everywhere-find cates to people who do not deserve them can- it difficult to compete for places in the higher not be in the public interest. education system. They have usually received The answer seems to be to combine toler- inadequate primary and secondary schooling, ance at points of entrance with rigor at the making further progression in the education point of exit. Proactive efforts to attract prom- system much harder to achieve. In some situ- ising members of disadvantaged groups must ations, for example with South Africa's Afri- be coupled with well-designed, consistently de- can and colored populations and India's livered remedial support. With sufficient fund- scheduled castes, the discrimination has been ing from public or philanthropic funds, this more direct, including concerted action to will clearly contribute to equity, but it has the prevent groups from reaching universities or potential to contribute to excellence as well- securing faculty appointments. with institutions drawing their intake from an Even if attitudes toward disadvantaged ever-widening pool. groups have changed, their members still face systemic discrimination. For many years, cer- T a Tuition and Fee Structures tain groups have been poorly represented in higher education. This means that the faculty is WAell-prepared and talented students face dif- likely to be unrepresentative of disadvantaged ficulties in gaining access to higher education groups,andtherewillberealorperceivedprob- when the costs of education exceed their lems of institutional discrimination. A lack of means. These costs include tuition fees, room role models can lead to groups concluding and board, books and materials, and access that higher education is "not for them." to technology, as well as income that is fore- Higher education is also reliant on the rest gone while attending school. This problem, of the education system, and those who have which is of course particularly limiting at low received little primary or secondary education income levels, is aggravated by the poor func- are clearly far less likely to progress to higher tioning of financial markets in many develop- education. A long-term solution therefore ing countries. This means that students can- requires public investment at all levels of the not secure loans at reasonable rates to finance education system, in order that larger num- their schooling. Using public funds for schol- bers of well-prepared candidates from disad- arships, fellowships, or loan schemes, thereby vantaged groups can compete for access to lowering cost barriers for talented students higher education. who would otherwise be excluded, is economi- Higher education systems need to find a cally sound and a time-honored function of way of reconciling the dual values of excel- public funds. In countries that have diversi- 41 fied systems of higher education, it is in the vate sector research institutes), but is espe- public interest to reduce cost barriers to pri- cially well suited to universities and other vate as well as to public institutions. higher education bodies. Research universi- ties-most commonly public institutions-at Corruption least in principle integrate a number of prac- tices that are highly conducive to knowledge WATith higher education offering such clear generation. These include ideological neutral- private benefits-both economic and social- ity in the selection of research topics, peer re- corruption in the awarding of university places view and scholarly publication, close links within some systems is unsurprising. Every betveen research and teaching, and the syn- higher education place awarded through cor- ergies that result from collectinlg tie full ranlge ruption gives rise to the possibility that a less of disciplines in one institution (or integrated deserving candidate has been substituted for system of institutions). a more deserving candidate. If the problem A strong research system at the national is endemic, an educated class that fails to re- level opens up the possibility that substantial flect the true distribution of aptitude and tal- additional public benefits can be realized ent in the society will develop. Even minor through international links. Not all knowledge instances of corruption are corrosive, increas- can or should be internally produced, when ing the possibility of disharmony within an a worldwide system of basic knowledge pro- institution and compromising its reputation. duction offers the classic economic benefits associated with specialization and exchange. International involvement helps countries Research and the Public Interest guard against parochialism and remain open to broader economic, intellectual, technical, One of the most powerful arguments for a and social possibilities. Institutions of higher public interest in higher education is the value education, especially research universities, are to a country of a well-developed system for particularly well equipped to facilitate the flow research and generation of knowledge. This of new knowledge and to disseminate it inter- is of inicreasinlg importance within the emnerg- nally once it is imported. Exchaniges of both ing knowledge economy, allowing a country faculty and advanced students need to be fa- not only to generate new knowledge, but also cilitated, along with participation in interna- to engage in scholarly and scientific com- tional conferences and research projects. merce with other nations. Nations must also act to remove legal restric- Privately produced and held knowledge, tions on the flow of scholars and ideas, and whether based on military secrecy or commer- ensure that there is adequate funding for this cial investment, has a role to play in society. imnportanit work. However, basic research and fundamental Publicly funded knowledge exchange also knowledge generation thrive where new find- offers an international public good. Profit- ings are widely shared and are available for based research is designed to capture and testing and refinement within an open forum. commercialize the benefits it generates, not Public support of knowledge generation is to make them universally and freely available. essential in developing countries. In large measure, academic research stands Basic, nonproprietary research can be lo- outside these commercial transactions. Inter- cated in any number of institutions (national nationally, higher education is an intellectual laboratories, government agencies, and pri- commons represented by the invisible college 42 of independent scholarship, k-nowledge pro- in economics that matches that of the intcr- duction, and scholarly training. This intellec- national donor community. Similarly, ensur- tual commons allows the world to tackle a ing the effective operation of tradeable per- number of widely recognized international mit systems to mitigate global warming challenges: emergent diseases that move eas- requires scientific competence within all the ily across national borders; invasive species nations engaged in the trade regime. Attract7 that damage sites far removed from their point ing direct foreign investment relies on the of origin; and climate fluctuations that disturb ability to negotiate successfully with interna- traditional giowirig seasons in widely scattered tional business, which is likely to be attracted parts of the globe. In addition to these prob- by a high-quality, professional workforce. It lems that migrate internationally, issues such is the educated people of a nation, even of as technology application or biodiversity pro- a poor nation, who will assert their nation's tection emerge in a variety of settings and interest in the increasingly complex web of benefit from comparative examination. global economic, cultural, and political inter- It is difficult for any single nation to justify actions. Without better higher education, investing heavily in research focused on it is hard to imagine how many poor coun- transnational problems, when other nations tries will cope. can benefit without having contributed. Cre- Improving higher education is therefore in ating this knowledge is in the public interest every country's interest, and has legitimate of all nations, but it needs supranational pub- claims on public funds. We also underscore lic investment if it is to be provided. A net- the responsibility of international donors to work of research universities and institutes is redress current imbalances in research capac- a natural mechanism for advancing the re- ity across regions, so that every region can quired research agenda. Public health and participate in international efforts to address medical schools can collaborate on designing key global challenges. Libraries are a crucial and managing a global surveillance system on resource in this effort. Their improvement emergent diseases, for example, while agricul- deserves urgent consideration, an initiative tural faculties and research institutes can do that could be greatly facilitated by advances similar work on invasive species. in information technology. International knowledge exchange relies The globalization of higher education can on each nation meeting international stan- have damaging as well as beneficial conse- dards of higher education, both formal and quences. It can lead to unregulated and poor- informal. For example, a number of profes- quality higher education, with the worldwide sions, including engineering, medicine, ac- marketing of fraudulent degrees or other so- counting, international law, and epidemiol- called higher education credentials a clear ogy, have developed performance standards example. Franchise universities have also been that are generally recognized worldwide. En- problematic, where the parent university suring that the graduates of each nation's meets quality standards set in the home coun- higher education system meet those standards try but offers a substandard education allows those graduates to compete in interna- through its franchised programs in other tional markets. It also allows nations to work countries. The sponsoring institution, mainly on a level playing field with international in the United States or Europe, often has a agencies and multinational businesses. For "prestige name" and is motivated by pecuni- example, negotiating the terms of structural ary gain, not by spreading academic excel- adjustment policies necessitates a competence lence to developing countries. 43 Higher Education and norms and attitudes crucial to democracy in Democratic Values its own students, who then become the teach- ers, lawyers, journalists, politicians, and busi- Higher education has the additional role of ness leaders whose practices should promote reflecting and promoting an open and enlightened citizenship across society. Higher meritocratic civil society. Civil societv is nei- education also contributes insofar as it dem- ther state nor market, but is a realm that links onstrates pluralism, tolerance, merit, rea- public and private purposes. Within this soned argument, and other values that are as realm, higher education promotes values that critical to democracy as they are to the educa- are more inclusive or more "public" than tional process. other civic venues, such as religious commu- The deeper values promoted through nities, households and families, or ethnic and higher education extend beyond those nec- linguistic groups. Higher education is ex- essary for the design and preservation of de- pected to embody norms of social interaction mocracy. Along with other cultural institu- such as open debate and argumentative rea- tions, universities and colleges ensure that a son; to emphasize the autonomy and self-reli- societv has a shared memory. This is impor- ance of its individual members; and to reject tant even if the memory is painful, as it is for discrimination based on gender, ethnicity, societies tryinig to escape a racially or ethni- religious belief, or social class. The best higher cally intolerant past, or a totalitarian and fear- education institution is a model and an impe- ful history. Painful national memories, as tus for creating a modern civil society. This is much as celebratory and uplifting memories, an ideal that is riot often realized, but is nev- constitute part of the culture from which the ertheless a standard againstwhich to measure future is built. Higher education is a natural national systems. home for the study and teaching of history. It More generally, a society that wishes to provides the research that in turn leads to a build or maintain a pluralistic, accounitable history and civics curriculum in primary and democracy will benefit from a strong higher secondary school. education sector in two respects: the first is In pointing out these ambitious public re- the task of research and interpretation. A sponsibilities, the Task Force is not so naive society's understanding of what form of po- as to presume that they are practiced always litical democracy will best stuit it can he ad- or everywhere. Higher education instittutions vanced on the basis of debates and research have been home to moral cowardice as well that start in universities and colleges. This is as to moral courage. A critical social science primarily the responsibility of the social sci- was sustained in despotic Latin American ences, but the humanities also have a key role countries only when its intellecttual leaders to play. Higher education in the humanities fled universities and established independent is home to the most careful reasoning about research centers. Universities in South Africa the ethical and moral values inmportant to tlat collaborated with apartheid, and universities society. Itjoins the other disciplines in its respect in Nazi Germany with anti-Semitism. Such for objectivity and for testing ideas against ob- instances of moral failure recur across time servation-with the experience of all societ- and place-not often, but often enough to ies, across history, upon which to draw. remind us that universities have to earn the Second, higher education helps to promote right of moral leadership the enlightened citizens who are necessary for Failures notrithstanding, societies have his- a democracy. It achieves this by instilling the torically looked to higher education as a venue 44 for reasoned discourse rather than partisan- ket forces reduces public benefits, a danger ship, for tolerance rather than discrimination, that may be magnified by the globalization of for a free and open search for truth rather investment opportunities, thereby introduc- than secrecy or deception. For these reasons, ing priorities at odds with long-term national univelsities are frequently the first targets of needs. However, the private beniefits, botlh to dictators. individuals and in the aggregate, are a power- To the extent that a higher education sys- ful and legitimatejustification for higher edu- tem meets these public expectations, it con- cation. No system of higher education should tributes to a set of values necessary for demo- forego the advantages of the compelling logic cratic practices to flourish. While it is, however, of private investment for private benefit. very difficult for universities and colleges to Equally, higher education must avoid be- disconnect themselves from the politics and ing captured by the short-term partisan inter- culture of their country, at best they aspire to ests of the government in power, or being sty- reflect where their societies want to be, rather mied by bureaucracy. This is not to dispute than where they are. that the state has a legitimate interest in the quality and scope of higher education. This chapter emphasizes the need for state poli- Conclusions cies to protect and promote the public inter- est in higher education. But a critical prin- All types of higher education institutions- ciple of those state policies is sufficient including those run for philanthropic and autonomy for higher education. Subordina- profit motives-can serve the public interest. tion to government pressures or short-term The system as a whole needs to benefit from political considerations will not create a sys- the vigor and interest of the market and the tem of higher education that serves the long- state. At the same time, it must not be domi- term interest of the public. nated by either. Too close a reliance on mar- 45 Systems of Higher Education T he preceding chapters have made two on education systems as a whole. Although this central points. First, societies have a pro- is a sound approach in many circumstances, found and long-term interest in their higher the nature of higher education differs funda- education institutions that extends beyond the mentally from primary and secondary educa- pecuniary and short-term interests of current tion, and confers different benefits upon so- students, faculty, and administrators. Second, ciety. An examination of higher education the current state of higher education in de- systems in their own right can help to provide veloping countries is generally quite weak. much needed guidelines for institutions re- While globalization, technological and demo- garding their roles and aspirations, to high- graphic changes, and the growing economic light society's interest in higher education, importance of knowledge are making higher and to suggest specific policy mechanisms to education reform more urgent and challeng- advance that interest. ing than in the past, some of these same fac- tors are also making such reform potentially more attainable. Outline of a This chapter explores the web of public and Higher Education System private education institutions, governing bod- ies, and individuals that form a higher educa- A higher education svstem consists of three tion system. It also examines the formal and basic elements: informal rules that hold the web together, looking for the structure underlying what can ( * the individual higher education institutions appear to be a chaotic set of activities and (public and private, whether profit or non- entities. The Task Force believes that higher profit; academic and vocational; under- education needs to be developed in a coordi- graduate and graduate; onsite and distance- nated way, guided by a clear strategic vision. based, etc., including their faculties, stu- We therefore go on to suggest guidelines for dents, physical resources, missions, and stra- reforming higher education institutions so tegic plans; that they may be integrated more effectively . the organizations that are directly involved as part of a system that efficiently meets na- in financing, managing, or operating tional goals. higher education institutions, comprising In the past, few academics or policymakers a range of both public and private bodies; adopted a systems perspective when discuss- and ing higher education, which is why we devote a whole chapter to this topic. Analysts have * the formal and informal rules that guide I ~~institutional and individual behavior and tended to focus on individual institutions or interactions among the various actors. 46 The system is not sealed from the outside vironment in which it operates. It also has in- world: it is at least loosely bound to the over- ternational links, to regional and global all education system, for example, to second- higher education communities, as well as to ary schools that provide most of its new stu- bilateral and multilateral donors, foundations, dents. It is connected to the labor market and and nongovernmental organizations. (Figure the business community, and to various gov- 5 graphically depicts a differentiated higher ernment departments that set the policy en- education system and its place in society.) FiguLre 5 Schematic Representation of a Differentiated Higher Education System Uruversities~~~~~~~~~~inve ts W- neihhoiiK 1ountries Research universities ~~~~~~~PniC .. ,n, re'oa i. "tio_Xns....................................... Regional+ X ~~~~~~~euain canX operate-at alt tevels ~ ~ ~ ~ ~ ~ ~ 4 Higher Education Institutions in academic, financial, and personnel matters. All private institutions must cover their costs, As we have discussed, higher education across but private, for-profit institutions also have the the world is undergoing a process of differen- generation of a surplus as a core goal. These tiation. This is happening horizontally as new fiinancial requirements impose considerable providers enter the system, and vertically as limits on their activities. institutional types proliferate. A diverse sys- tem, with a varietv of institutions pursuing different goals and student audiences, is best Research Universities able to serve individual and national goals. Research universities, which stand at the apex Recognizing the nature and legitimacy of this of the educational pyramid, tend to be public diversity helps ensure that there are fewer gaps and certainly not for profit. Their overriding in what the system can provide, while prevent- goals are achieving research excellence across ing duplication of effort. It is also helpful for many fields and providing high-quality edu- halting institutional drift, where an institution cation. They pursue these goals by having rela- loses focus on its "core business," failing to tively light faculty teaching loads, emphasiz- recognize that it is already serving a particu- ing research accomplishments in recruitment lar group of students well. In the case of mid- and promotion decisions, adopting interna- level institutions, if their crucial role is not tional standards for awarding degrees, and understood they may try to gain prestige by being highly selective in the students they moving up the educational hierarchy. This is admit. They are most closely connected to unhelpful if it leaves a group of students advances in knowledge, monitoring break- poorly served and if the institutions are un- throughs in many fields and investigating ways able to function properly as they move up- to exploit important results for social and pri- stream. vate gain. Their instruction-generally for It is therefore useful to characterize the both first and post-graduate degrees-should main types of institution that arc typical within be aimed at the country's most hard-working a higher education system. From the outset, and best-prepared students. Research univer- we distinguish between public, private not-for- sities also have the capacity to offer the most profit, and private for-profit institutions. To complete programs of general education (see some extent, the objectives of these institu- Chapter 6). tions-teaching, research, and service-over- lap; so, too, does the autonomy they have to Provincial or Regional Universities pursue those objectives. However, there are also fundamental differences. Notions of the Institutions that focus predominantly on pro- public interest count more heavily in defin- ducing large numbers of graduates are an- ing the mission of public institutions than of other key component of a higher education private ones. Public institutions also tend to system. They emphasize teaching and the be subject to greater bureaucratic control, training of "job-ready" graduates, especially which limits their autonomy. On the other those who can meet local skills requirements hand, they are more buffered from market in areas such as manufacturing, business, ag- forces, giving them a greater measure of sta- ricultuire, forestry, fisheries, and mining. They bility. State regulations do affect private insti- are commonly found in both the public and tutions, but generally leave them with greater private sectors and tend to be geographically autonomy than public institutions experience dispersed so that collectively they can cater to 48 the many students who do not leave home to system, but they are not often considered a attend school. Provincial or regional univer- component of the higher education system sities often produce the majority of a country's per se. These schools, mainy of whiclh are pri- graduates and tend to lie at the heart of the vate and for-profit, play an important role in system's expansion. Some institutions offer satisfying real labor-market demands. two-year tertiary-level degrees, much like com- munity colleges in many developed countries, Virtual Universities and offering another potential channel for pro- Distance Learning viding mass higher education. Distance learning is an increasingly important Professional Schools part of the higher education system, with its ability to reach students in remote areas and Freestanding professional schools-and pro- address the higher education needs of adults. fessional faculties in universities-provide It is not in itself a new idea-the Universitv of training in fields such as law, medicine, busi- South Africa, for example, has offered aca- ness, and teaching, as well as other areas out- demic degrees through distance study for side the jurisdiction of traditional arts and decades-but is growing at an astonishing rate sciences faculties. These schools typically en- (see Chapter 1 for data on the largest distance- roll students directly from high school and learning institutions). offer study programs that focus almost exclu- Distance learning can be offered by tradi- sively on technical training in the relevant tional educational institutions or by new in- area. Most developing countries hiave an ur- stitutions that specialize in this mode of study. gent need for individuals with specialized pro- While recent developments in communica- fessional skills, so professional schools play a tion technology and computers have vastly critical rolc in national development, and of- increased the technical viability of distance ten occupy a central place within developing education, economic viability is still an issue country higher education systems. For-profit in many countries because of costly and ex- private institutions, in particular, can be di- tensive infrastructure requirements. In many rected into this area by market forces, con- parts of Africa, for example, the telephone is centrating on preparing students for careers still a luxury and long-distance calls are ex- with high private returns. Professional schools tremely expensive. Efficient distance learning commonly pay little attention to providing a will require affordable telephone and Internet general education that would serve many stu- access for this part of the world. dents (and society) well. In the past, distance learning has been seen mainly as a cost-effective means of meeting Vocational Schools demand, with policyrnakers paying inad- equate attention to ensuring that it provides Vocational schools operate in much the same comparable quality to traditional modes of way as professional schools, but at a different delivery. The Task Force believes that distance level. They endeavor to impart the practical education offers many exciting possibilities. skills needed for specific jobs in areas such as Innovative curricula can be combined with nursing, auto mechanics, bookkeeping, com- interactive, Internet-based technology, tradi- puters, electronics, and machiniing. They may tional educational media such as television be parallel to (or part of) the secondary edu- and print, written materials, and direct con- cation system, or part of the post-secondary tact with tutors. It needs, however, to be thor- 49 oughly integrated into the wider higher edu- creasingly important to economic perfor- cation system, subjected to appropriate accredi- mance, they enable a higher education sys- tation and quality standards, and linked to the tem to produce a mix of specialized and outside world. Research into how this can be broadly trained graduates. achieved-and how distance learning can fulfil Policymakers need to be more explicit its potential-needs much greater attention. about expecting different contributions from different segments of a stratified system. Ex- pressing a clear vision of the goals and struc- Desirable Features of a ture of a higher education system is funda- Higher Educaton System mental to setting an agenda for reform, while ensuring that this vision is widely shared is vi- Effective systems of higher education tend to tal to achieving practical results. have a common set of characteristics. We sus- pect that many of these are prerequisites of Adequate and Stable Long-Term Funding any system that is functioning well, and find it difficult to identify any developing countries Higher education institutions can thrive only whose higher education systems would not if their funding levels are adequate, stable benefit from an infusion of at least some of and-subject to good performance-secure the characteristics (and related specific sug- in the long term. Institutions must plan far gestions) discussed below. ahead if they are to provide consistent instruc- tion and a secure and productive work envi- Stratified Structure ronment for their faculty. In many areas, in- secure funding stifles the ability and the Higher education systems are under great incentive to carry out research. pressure to improve the quality of the educa- Governments have a crucial role to play in tion they offer-but also to educate increas- providing stability. They must finance public ing numbers of students. A stratified system is institutions on a long-term basis, not as if they a hybrid that marries the goals of excellence were part of a nonessential government sec- and mass education, allowing each to be tor with the attendant vulnerability to the va- achieved within one system and using limited garies of fluctuations in public spending. They resources. A stratified system comprises one must also help create an environment condu- tier that is oriented toward research and se- cive to the sustainable financing of private in- lectivity and another that imparts knowledge stitutions and help the whole higher educa- to large numbers of students. It cements the tion system look to the future, ensuring that distinction discussed above between research tomorrow's operating budgets will be suffi- and provincial universities, allowing each to cient to maintain and run the new infrastruc- pursue clear objectives aiid avoid the dupli- ture higher education will need. cation of effort. Stratified systems cater well to the varied nature of students' abilities and Competition interests, and also allow for faculty with dif- ferent skills to be best used. They are economi- Traditionally there has been little competition cal in terms of satisfying social needs, produc- within higher education systems, and the Task ing graduates who are able to fulfil a variety Force believes that more intense competition of roles and a generally educated citizenry. between similar institutions for faculty, stu- Finally, as specialized knowledge becomes in- dents, and resources will help improve stan- 50 dards by rewvarding merit and performance. challenging goals that arc consistent with the Competition also generally promotes benefi- needs of their societies and labor forces. In- cial innovations and overall quality improve- ternational standards are especially relevant ments. Competition is exceedingly difficult to in a globalized economy. Some standards are achieve through central decree, but requires needed for degree requiremenits wheni it a high degree of autonomy for academic in- comes to student performance, faculty quali- stitutions, allowing them to exploit their fications, and achievement. Mediocre institu- strengths and overcome weaknesses. Ad- tions are not transformed into great institu- equate market information is also essential: tions merely by announcing world-class wvithout it, institutions will continue to thrive standards: a realistic approach that concen- even when they are weak. trates on promoting achievable improvements One common indicator of competition is is needed. A culture of accountability is also faculty mobility between institutions, which essential, allowing improvement (or deteriora- tends to promote a healthy academic environ- tion) to be continually monitored and rewarded. ment through intellectual cross-fertilization. Too much competition is also possible, result- Immunity from Political Manipulation ing in excessive faculty mobility and a lack of loyalty to institutions. However, most develop- Higher education systems are effective only ing countries are a long way from experienc- when insulated from the undue influence of ing this problem. political parties, governments, or short-term political developments in educational affairs. Flexibility Success in research and education requires consistency, with academic decisions-con- Higher education systems need to be flexible cerning institutional leadership, curriculum, if they are to be most effective. They need to or the funding of research projects-made for be able to adapt quickly to changing enroll- academic reasons. Excluding partisan politi- ment levels, to the rise and fall of different cal interests from the operation of a higher fields of study, and to changes in the mix of education system helps to safeguard skills demanded in the labor market. Open meritocratic decisionmaking, one hallmark of systems are more likely to keep pace with sig- an effective higher education system. nificant external changes. Scholarly interac- tion within and between countries, frequent Well-Defined Links to Other Sectors curriculum review, and strong connections to the world stock of knowledge (through sub- A higher education system does not operate stantial investments in Internet access, for in isolation. An effective system must pay at- example) are all important. Research is also tention to a country's secondary education useful. Basic demographic data can help for- system in order to take account of student ward planning, eiiabling institutions to pre- prepar-atioin. It will also benefit primary and pare for changes in cohort size, secondary secondary education through training quali- school enrollment, and graduation rates. fied teachers and demonstrating potential educational innovations. A quality system of Well-Defined Standards higher education will also increase students' aspirations at the primary and secondary lev- Effective higher education institutions articu- els, leading to higher standards as students late clear standards and set for themselves compete for tertiary education places. 51 Strong links between a country's higher national donors, might also develop "learn- education system and other systems both in ing commons"-a combination of computing the immediate region and beyond will have centers, scientific laboratories, and libraries- many beneficial effects, including significantly accessible to students from all institutions of augmenting the resources available to an in- higher education, public and private. A learn- dividual system, helping to overcome intellec- ing commons would permit more effective use tual isolation, and allowing the achievement of outside higher education resources and of "critical mass" in a larger number of spe- permit some institutions to teach scientific cialized fields. In addition, a higher education subjects that thev would not otherwise be able system benefits from close coordination with to offer. These commons would need to be other domestic public and private entities. For located in strategic places throughout the example, advocates for higher education and country and be adequately maintained and industry can work together to ensure that staffed. They could also serve as focal points graduates have the skills that industry needs. for public information, and contribute in this Finally, advocates for higher education need way to strengthening civil society. to work comfortably with government agen- Technology is an especially important sys- cies responsible for policy setting and finance. tem-wide resource. The past few decades have seen an explosion of technological capacity Supportive Legal and Regulatory in both the industrial and developing worlds. Structure No system of higher education can hope to serve its students, or the national interest, Higher education institutions flourish in a without developing a robust technological ca- legal and regulatory environment that encour- pacity. Higher education systems need to en- ages innovation and achievement, while dis- courage all constituent institutions, both pub- couraging corruption, duplication of effort, lic and private, to incorporate advances in and exploitation of poorly informed consum- computing and communications technology ers. In many systems, initiative is stifled by into their administrative structures, their counterproductive legal constraints and cen- teaching, and their research. Integrating com- tralized decisionmaking. Higher education is puters into learning is a key task if graduates focused on people-regulation needs to fos- are to be prepared for the jobs of the future. ter, not hamper, human potential. Students can also benefit tremendously from CD-ROM-based and Web-based curricula, System-Wide Resources which have the potential to bring high-qual- ity educational materials to all parts of the Many tools for improving higher education developing world. Moreover, using the work best when developed centrally and Internet as a means for gathering knowledge shared widely. Such tools include manage- connects students and researchers to the ment information systems, standardized tests, worldwide community of scholars, an invalu- curriculum, and "knowledge banks" (reposi- able step in overcoming intellectual isolation. tories of information accessible through elec- The Task Force recognizes that acquiring tronic means). They effectively and efficiently access to such technology can be prohibitively spread the financial and technical burdens of expensive. International donors therefore have higher education development, allowing mul- aparticularty impo3vwtaxc