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Higher Education and the World Bank

Higher Education and the World Bank . Richard Hopper Education Specialist The World Bank 15 April 2007. Enrollment trends. Enrollment rates by income level (1980-2001). Enrollment rates by region (1970-2001). Equity. Equity remains a problem. Mexico (2005)

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Higher Education and the World Bank

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  1. Higher Education and the World Bank Richard Hopper Education Specialist The World Bank 15 April 2007

  2. Enrollment trends

  3. Enrollment rates by income level (1980-2001)

  4. Enrollment rates by region (1970-2001)

  5. Equity

  6. Equity remains a problem • Mexico (2005) • Only 1% of 15-24 year olds from poorest quintile attend tertiary education • While 32% from richest quintile attend • USA (2005) • Only 8.3% of students from the poorest income quintile are likely to access top-ranked universities • While 50% of richest quintile are likely to attend • France (2005) • Only 6% of students from the lowest quintile are likely to attend a Grande Ecole • While 15% of the middle quintile are likely to attend

  7. Tertiary Enrollment by Quintile

  8. Quality

  9. Quality and relevance of studies increasingly important • Knowledge-driven economic growth… • Requireshigher labor productivity and an increased demand for skilled workers • Changes the education and training needs of the labor force as skills become obsolete and require updating • Aging populations and the need for updating skills means a more diverse set of clients (students) in tertiary education • lifelong learning

  10. Changes in demand for job skills 1960-1998 Source: Autor, Levy, and Murnane (2003) “TheSkill Content of Recent Technological Change: An Empirical Exploration,” Quarterly Journal of Economics.

  11. Divergence in returns to schooling by education level in Latin Americafrom Holm-Nielsen et al. (2001)

  12. Finance

  13. Tertiary education spending relative to GDP, OECD 1998

  14. Poor internal efficiency remains a waste of public resources • Proportion of enrolled students who never finish their studies: • 75% in Argentina • 60% in Morocco • 30% in Australia • Proportion of students who graduate on time: • 13% in Italy

  15. Proportion of private enrollment 2003

  16. Longstanding challenges • How can governments develop a financially sustainable tertiary education system in the face of expanding demand? • How can governments maintain or improve the quality of tertiary education under such financial pressures?

  17. Importance of Science and Technology

  18. R&D Science Development and Creation Design & Engineering Technician & Craft Skills & Capabilities Science Use, Operation and Maintenance Basic Operators Skills and Capabilities Higher levels require higher-order capacity of human resources

  19. S&T Lessons From World Bank Operations • Developing human capital is an essential pre-requisite for S&T capacity building • Sustained long-term engagement is key • Specific investment loans have better results than budget support • hands-on rather than arm’s-length • Comparative advantage is created not given • Salmon, grapes in Chile • Cut flowers in Tanzania • Electronics in Korea and Taiwan • Interventions work best when grounded in each country's own S&T and industrial strategy

  20. S&T Challenges • Ability to produce new knowledge (R&D) is important, yet absorptive capacity of enterprises and labor force must be developed – spillovers are not automatic • Few centers of excellence or competition among many institutions? • Tension between expanding the supply of skilled workers and industry demand for skilled workers • chicken and egg problem • brain drain vs. skill shortage • Vietnam • supply with limited demand • Thailand or Malaysia • demand with limited supply • Long term commitment • S&T requires long-term political engagement • >10 years for capacity to affect development

  21. Country analysis:Korea

  22. Knowledge economy

  23. EconomicRevolution Technological Revolution Knowledge Economy New Face of Higher Education Fast Connected Evolving Quality-driven Agile Slow Isolated Static Seniority-driven Rigid New Opportunities

  24. Economic Structure and Incentives Education Information Infrastructure Knowledge for Development • Tariff and non-tariff barriers • Property rights • Regulation 1 • Universal basic education enrollment and completion • Secondary enrollment, completion and quality • Tertiary enrollment, quality, system flexibility • Lifelong learning to update skills; multiple entry points 2 • Telephone capacity/capita • Computers /capita • Internet hosts /capita 3 • Researchers in R&D • Manufacturing trade as % of GDP • Scientific articles/million pop. Innovation System 4

  25. Crisis prevention vs. coherent policy • Many countries tend to be reactive • Lack of national policy debate and framework for higher education lead countries to react to problems • The World Bank helps governments avoid reactive practices by developing and implementing higher education strategies • More flexible systems and institutions • Focus on governance, finance (efficiency), quality (innovation), and equity

  26. State role in strategy development • Describing the status quo • Identifying issues, diagnosing problems • Presenting potential options • Engaging stakeholders in dialogue • Developing a shared vision • Investing in elements that improve… • Institutional agility • Education quality • Internal and external efficiency • Equity • Initiating innovative resource distribution mechanisms that focus on organizational behaviors • Engaging stakeholders in throughout the process

  27. Range of World Bank interventions and investments in higher education

  28. Governance • Move from state control to state oversight • Encourage private sector development • Ease restrictions on private providers • Develop reasonable oversight for private sector so as not to stifle innovation or growth • Maintain equal standards for public and private provision • Build institutional management capacities at public institutions in support of greater autonomy • Governing board development and training • Accountability systems (stakeholder / civil society membership) • Strategic planning exercises • Leadership training • Financial management / procurement capacity • Management information systems • Curriculum reviews and revisions • Human resources management • Modular academic programs (LMD, credit systems, lifelong learning) • Admissions reform (entrance exams, etc.) • Civil service adjustment

  29. Finance • Investment budget mechanisms • Formula funding • Bloc grants • Competitive funding • Linked to quality improvements or government priorities • Research funding • Recurrent budget mechanisms • Performance-based financing • Demand-side financing • Student loans • Vouchers, scholarships • Cost recovery mechanisms

  30. Quality • Centers of excellence • Quality assurance systems (accreditation) • Establish quality assurance systems • Reform existing quality assurance systems • Develop institution-level quality practices • Develop professional licensing capacity • Link financing to quality assurance determinations • Develop benchmarking capacity • Develop system and institution performance indicators • Develop measurements for student learning outcomes • Encourage mutual recognition systems • Faculty training and upgrading of skills to improve pedagogy, teaching methods, student learning • Develop competency frameworks

  31. Efficiency and equity • Expansion of private sector • With parallel finance innovations • Efficiency gains in public sector • Double sessions • Repetition reduction • Non-university tertiary education • Develop pathways to link technical vocational education with university education • Distance education, non-traditional learning • University partnerships and sandwich programs • Labor market observatories • Graduate tracer surveys • Support public-private partnerships between universities and industry

  32. Infrastructure • Post-conflict reconstruction • Leverage as opportunity to rethink pre-existing system • Construction of new institutions • Installation or upgrading of information technology

  33. Science and technology • Millennium Science Initiatives • Universities and research institutes • Science and technology projects • Universities, research institutes, industry • Agricultural technology investments • Private sector development investments

  34. World Bank Lending for Tertiary Education by Region, Fiscal 1990 – 2006

  35. Ten Largest Borrowers for Tertiary Education, Fiscal 1990 – 2006

  36. World Bank Lending for Tertiary Education by Region, Fiscal 2001 – 2006

  37. Ten Largest Borrowers for Tertiary Education, Fiscal 2001 – 2006

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