1 / 22

a review of innovative allocation mechanisms

Dive into key financing questions and resource allocation strategies in tertiary education, exploring diverse models like the Colorado and Brazil initiatives. Learn about effective mechanisms and international experiences in enhancing access, equity, and efficiency in education financing.

Download Presentation

a review of innovative allocation mechanisms

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. a review of innovative allocation mechanisms Jamil Salmi and Art Hauptman International Conference Economics of Education: Major Contributions and Future Directions Dijon, 20-23 June 2006

  2. key financing questions • resource mobilization • how much should be spent on tertiary education? (macro-level) • income generation at institutional level • who should pay, and what share? • when and how? • is it affordable? (student aid)

  3. key financing questions • resource utilization • how should public resources be allocated? • how efficient and effective are institutions?

  4. outline of the presentation • typology of allocation mechanisms • which mechanism is more effective? • preliminary lessons from international experiences

  5. outline of the presentation • typology of allocation mechanisms

  6. allocation mechanisms from untied funding to performance-based funding

  7. performance-based funding • output-based formula funding • competitive funds • performance contracts

  8. allocation mechanisms from direct funding to indirect funding

  9. Colorado funding model Old Model Direct Government Funding Tuition New Model Indirect Gov’t Funding via Stipends Tuition & Stipends

  10. Colorado experience • voucher for an undergraduate education at eligible universities; no cash in students’ hands. • $2,400 per year at public institutions • $1,200 per year for low-income students attending private institutions • degree-seeking, non-degree, and teacher licensure undergraduate students eligible • age, income and financial aid eligibility are irrelevant to qualify

  11. Brazil ProUni • State purchases seats in private universities • offered to top students from low-income families who don’t get a seat in a public university • no actual payment, but tax exemption

  12. Antioquia “access with equity” • partnership among local government, private firms and private universities • low-income students who don’t get a seat in a public university get financial aid to enter a private university • 75% scholarship and 25% subsidized loan

  13. outline of the presentation • typology of allocation mechanisms • which mechanism is more effective?

  14. Alice in Wonderland Lewis Carroll Alice Would you please tell me which way I ought to go from here? Cheshire Cat That depends on where you want to get to.

  15. policy objectives pursued • improving access and equity • improving external efficiency • improving internal efficiency and sustainability

  16. improving external efficiency • improving quality • competitive funds • merit-based scholarships • increasing relevance • formula with differential weights for high priority fields • competitive funds • grants and scholarships in priority fields • student loans in priority fields • loan forgiveness for students in public service jobs

  17. outline of the presentation • typology of allocation mechanisms • which mechanism is more effective • preliminary lessons from international experience

  18. themes • principles of an appropriate mechanism • country context • link to quality assurance • political economy dimensions

  19. principles of an appropriate allocation instrument • linked to performance / policy objectives • transparent • flexibility • compatibility

  20. which allocation instrument is better? • local circumstances • reform for what? • time dimension

  21. link to quality assurance • pro: powerful incentive • con: punitive, rewards stronger institutions • link at the margin?

  22. political economy dimensions • controversial topics • tuition fees instead of “free” education • targeted scholarships instead of universal • student loans instead of scholarships • private institutions alongside public institutions • dealing with the politics • not an excuse to avoid reforms

More Related