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Higher Education Reform Efforts in Egypt: A focus on Governance Finance

Contents. Higher Education System in Egypt and Reform EffortsSize of the Higher Education Sector and Reform EffortsGovernance and Financial structures on the National LevelHow the Egyptian system of governance operate, the financial structure and funding resources characterizedGovernance and F

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Higher Education Reform Efforts in Egypt: A focus on Governance Finance

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    1. Higher Education Reform Efforts in Egypt: A focus on Governance & Finance By Dr. MOHSEN ELMAHDY SAID Executive Director, Projects Management Unit (PMU), Ministry of Higher Education (MOHE), Cairo – Egypt 1 November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said

    2. Contents Higher Education System in Egypt and Reform Efforts Size of the Higher Education Sector and Reform Efforts Governance and Financial structures on the National Level How the Egyptian system of governance operate, the financial structure and funding resources characterized Governance and Financial Structure on the Higher Education Level How MOHE perceive governance and finance of the Egyptian higher education system Lessons Learned and the Road Ahead Review of key lessons learned and some insights on the Road Ahead Concluding Remarks November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 2

    3. November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 3

    4. Size of the Egyptian Higher Education system 2007-2008 17 public universities (six branches will become independent) 16 private universities 8 Technical Colleges (used to be 45 MTIs) 2,542,739 undergraduates; 210,022 graduates (2006-2007) Over 80,966 faculty and assistants (Universities, TCs, HEIs) 28% of the age group18-23 years old in higher education 77.45% of university students in humanities and social sciences 8.35 billion Egyptian pounds budget for Higher Education November 19, 2008 MOHE/NCS Fulbright 4 Dr. Mohsen Elmahdy Said

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    6. Overall Reform Program SWOT analysis performed for the overall Egyptian higher education system A comprehensive strategic reform plan developed and translated into 25 projects Six priority areas for reform were selected Revisit the strategic reform plan to introduce R&D as well as students activities to cover all complete the requirements for accreditation November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 6

    7. November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 7

    8. Documentation and Information

    9. November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 9

    10. Governance Structure in Egypt The system of Governance in Egypt entail three main authorities: Executive Authority chaired by President of Egypt administered by Cabinet of Ministers Legal Authority Legislative Authority Peoples Assembly Shoura Council November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 10

    11. GOE Funding Structure Eight parts/categories constitute the GOE Financial Structure: (categories of direct concern to H.E. numbered in red) Salaries and Compensations (entirely MOF controlled) Running Expenditures (procurement of goods and services) Interests (paid directly through MOF) Subsidies, Grants and Social Benefits Other Expenditures (diversified running costs) Investments (non-financial assets, infrastructure, equipment – budget determined by MOP and funds raised through MOF) Acquisition of Assets Loan Repayment (local and foreign) November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 11

    12. November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 12

    13. Operating Laws Governing Higher Education in Egypt The Egyptian Higher Education System Currently Functions Under Six different laws: Previous and Currently Prevailing Laws: The public universities (act # 49/1972) – two amendments introduced The private universities (act # 101/1992) The private higher institutions (act # 52/1970) Outcome of the Reform Efforts: The technical colleges (act # 528/2003) The education development fund (act # 290/2004) NAQAAE (Presidential Decree # 82/2006) Future Plans (Mandatory for the Stability of the H.E. System) A new Unified Law to govern the entire higher education system November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 13

    14. November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 14 Current and Proposed Roles & Responsibilities of Concerned H.E. Governing Bodies (A Study made by MOHE/SPU) Concerned H.E. Governing Bodies: Ministries (MOHE, MOE, MOF, MOP, MOIC) Supreme Councils (SCU, SCPU, SCTC, CHEI) Concerned Bodies (NAQAAE, EDF, Civil Society, Other Stakeholders) H.E. Institutions (Public & Private Univ., H.E. Inst., ETCs) Roles & Responsibilities Entail: Planning Policy Making Implementation of Plans and Policies on National & Inst. Levels Offering Educational & Research Services on the Institutional Level Monitoring, Evaluation and accountability

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    25. Decision-making Process Under HEEP Involves all Concerned Stakeholders: Supreme Council of Universities (SCU) PMU/MOHE Board of Directors Directors of HEEP Six Priority Projects National Committees corresponding to the six priority projects with representatives from each University & selected experts Universities/Higher Education Institutions Faculties/Departments/Centers/Units University Projects Management Units (UPMUs) Principal Investigators of Projects implemented in Universities November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 25

    27. November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 27 How the Egyptian Higher Education System is Funded Government is the main funding body for H.E. universities No funding formula available depending on actual needs or on number of students admitted Universities negotiate their annual budgets directly with MOP MOP together with MOF decide upon actually allocated budgets for each university individually MOHE requests budgets for H.E. Institutions Total budget for H.E. in Egypt is about 8.5 billion L.E. (2008)

    28. November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 28 International Funding Sources The World Bank (IBRD) European Union (EU) Agency for International Development (USAID) UNESCO Ford Foundation (FF) Department for International Development (DFID) Arab Gulf Fund (AGFUND) Other Funding Agencies (ADB, JICA, GTZ, etc. …) Bilateral Agreements with Foreign Countries

    29. November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 29 Funding Sources for Phase I of HEEP Reform (2002-2007) World Bank HEEP IBRD (Concession rate over 40%) 50.0 MUS$ IDA (10 m funding units) Equivalent to about: 14.0 MUS$ GOE (Contribution of GOE in L.E. equivalent) 10.0 MUS$ DFID (In support of restructuring MTIs) 0.6 MUS$ FF (In support of establishing a National Quality Assurance and Accreditation body/mechanism) 0.4 MUS$ FF (Pathways to H.E. project to support the 300 MUS$ African Scholarships Program funded by FF) 0.8 MUS$ AGFUND (In support of training MTI faculty members) 0.5 MUS$ EU (Tempus III: years 2003 – 2004) 11.0 MUS$ USAID (In support of Faculties of Education reform project) 12.0 MUS$ Total (Approx. 480 ML.E.) 100.0 MUS$

    30. November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 30 Funding Sources for Phase II of HEEP Reform (2007-2012) Government of Egypt (GOE) CIQAP 1000 Million L.E. ETCP 1000 Million L.E. EDF (GOE) 500 Million L.E. EU (Tempus III + FP6) USAID Arab Countries (Funding Technology Clusters)

    31. November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 31 Other Potential Funding Sources for Higher Education in Egypt Sources Requiring GOE and Legislative Support: GOE remains the major source of funding H.E. (funds need to be increased) Apply and/or rationalize students fees (without violating equal opportunities/constitution) Establish an Education Development Fund (EDF) (????? ????? ???????) Establish an education Levy (tax charge) on industrial and commercial enterprises Apply education taxes on agricultural crops (implemented successfully in some African countries)

    32. November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 32 Other Potential Funding Sources for Higher Education in Egypt Expand on Private Education (Universities and H.E. Institutions) Establish non-profit universities with contributions from governmental universities (based on share holding to absorb increasing intake of students) Encourage Public-Private Partnership (PPP)

    33. November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 33 Other Potential Funding Sources for Higher Education in Egypt Sources Generated by Universities/H.E. Institutions: Establish Centers of Excellence (????? ????) (with special privileges such as tax exemptions) Expand on Offering distance & Open Learning Programs, and Part-time H.E. ( ??????? ?? ???? ??????? ??????? ????????? ??????) Offer long-life learning/training programs to the community (plenty of successful models in many countries) Expand on Establishing New Parallel Learning Programs to complement existing ones (for-degree and for-fees programs)

    34. November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 34 Other Potential Funding Sources for Higher Education in Egypt Apply fees on Postgraduate Studies (has become an acceptable practice) Expand on Endowment Funds (use Bank interest to support H.E.) Encourage Contributions and Donations from Banking Sector, Industrial and Commercial Enterprises (e.g. medical and oil Companies) Capitalize on Private Sector and NGOs contributions (major beneficiaries of the H.E. system) International Students

    35. November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 35 Other Potential Funding Sources for Higher Education in Egypt Joint collaboration programs with the Army, Military Production Facilities and the Arab Authority for Manufacturing (entities that have the financial capabilities/resources) Expand on community and environmental services Rationalize expenditure on students lodging Establish branches of universities and/or offer educational services to other universities in the Arab and African regions (an expanding trend to commercialize H.E. – Key issue is the quality of education offered)

    36. November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 36 Other Potential Funding Sources for Higher Education in Egypt Establish specialized agencies to offer diverse community services (Successful models in Australia & New Zealand) Seek support from Funding Agencies offering grants, soft loans and contributions for specific purposes (studies, training, etc…) Establish Alumni and Fund Raising Offices in each university (a good source to generate funds against specific services) Bilateral agreements between foreign countries & Egypt (to allocate/inject a handsome portion of this fund to H.E.)

    37. November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 37 Other NGO Funding Initiatives (Limited Impact) Future Generation Foundation (FGF) (Supports under privileged graduate students to find better job opportunities through a tripartite training package in Language, ICT and communication skills over a 3 months full-time period) Saweris Scholarships Foundation (NGO) (a 55 Million L.E. endowment to provide ICT training to enhance chances for creating job opportunities, as well as scholarships for M.Sc. and Ph.D. programs)

    38. November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 38

    39. Management Commitment at All Levels To ensure Support and success of the Higher Education Reform, commitment of the main stakeholders needs to be in place at all levels: President of Egypt Peoples Assembly and Shoura Council National Democratic Party and other Political Parties Prime Minister and his Cabinet of Ministers Minister of Higher Education and his Ministry Presidents of Universities and their Vice Presidents Deans and Deputy Deans of Faculties/institutes Heads of Departments and Units/Centers, etc. Everyone has a fundamental role to play in his own capacity and responsibilities to ensure success of the reform November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 39

    40. Top-down Versus Bottom-up Approach Phase I reform focused on a top-down approach Universities were not ready to accept or deal with the change To create the critical mass to affect change To create the environment and culture for accepting the change Creating a competitive mechanism to encourage participation Phase II reform focuses on a bottom-up approach To emphasize more institutional autonomy To create a state of ownership of the reform according to institutional needs Building capacity to cope with this approach that depends primarily on taking initiatives to fulfill the needs November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 40

    41. Strategic Planning Establishing a Strategic Planning Unit (SPU/MOHE) with a mandate to: Plan ahead based on real data generated from diverse studies, as needed to develop the Road Map for Higher Education Forecast for higher education system based on past, current, and future data to better plan based on scientific methodology Develop Project Appraisal Documents (PAD) according to international norms Strategic planning on the University/Institution levels Comprehensive strategic plan that includes plans for QA and Accreditation, as well as for Capacity building and training Establish an action plan identifying priority areas Periodic revisiting of the strategic plan to meet continued and changing needs Strategic Planning on the Faculty/Department levels For Accreditation requirements To improve efficiency of the system November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 41

    42. Organizational, Legislative & Financial Measures for Sustainable H.E. Reform On the National Level NAQAAE (National Authority for Quality Assurance and Accreditation in Education) SPU (Strategic Planning Unit – MOHE) NCFLD (National Center for Faculty-Leadership Development) HEEP2 (Phase II of HEEP) EDF (Education Development Fund) November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 42

    43. Organizational, Legislative & Financial Measures for Sustainable H.E. Reform On the Institutional Level (Governmental Universities) Establishment of three Centers/Units as part of the organization structure of each university: Quality Assurance & Performance Appraisal Center (QAPAC) Faculty and Leadership Development Center (FLDC) University Projects Management Unit (UPMU) Government Funds Allocated for CIQAP (Phase II of the Higher Education Reform) November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 43

    44. Concluding Remarks November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 44

    45. November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 45 Concluding Remarks Quality measures cannot be implemented in isolation of a comprehensive H.E. reform program To prepare Egyptian higher education institutions for accreditation by NAQAAE quality requirements have to be fulfilled first Creating the environment and promoting awareness within H.E. Institutions, and the community at large, is mandatory

    46. Funding mechanisms must be in place to support developmental activities within H.E. Institutions Quality has a cost and somebody has to pay the bill (government realized this fact and allocated funds for phase II of the reform that is ten times that allocated for phase I) More Private Sector Business Community and other concerned stakeholders involvement is needed to support Egypt’s higher education reform initiatives November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 46

    47. More community awareness and public debates are needed to accept the proposed governance structure as a comprehensive framework for the reform of higher education Unified law for the Egyptian higher education system is necessary to avoid confusion and double measures Bulk funding based on a weighted funding formula will enhance financial autonomy of institutions Student Loan schemes need to be carefully introduced to ensure feasibility and graduate student’s capacity to payback under the financial scheme prevailing in Egypt November 19, 2008 MOHE/NCS Fulbright Dr. Mohsen Elmahdy Said 47

    48. December 26-27, 2002 Dr. Mohsen Elmahdy Said (PIU/MOHE - EGYPT) 48 Concluding Remarks Funding of Higher Education needs: Leadership support and government commitment to allocate funds based primarily on performance (Performance-based Budgeting) Enhanced government updated legislation Endorsed strategic plans Innovative ways and means to diversify sources of funding (thinking outside the box) Raising the awareness of all the stakeholders being the prime beneficiaries of the H.E. system Sufficient flexibility and autonomy of H.E. Institutions

    49. Thank you ????? 49

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