Covid-19 has revealed a crisis in Australian HE governance

Sectors such as airlines, gambling and tourism industries are in financial crisis and are asking for or have already received government bailouts. One sector that is also in crisis but has not received much support in 바카라사이트 UK, 바카라사이트 US or Australia is 바카라사이트 higher education sector.

One reason for that in Australia is that 바카라사이트 regulatory governance of 바카라사이트 sector is facing a systemic crisis. The political and economic conditions that sustained 바카라사이트 governance of 바카라사이트 sector from its reform in 바카라사이트 1980s are challenged by 바카라사이트 current impact of 바카라사이트 coronavirus pandemic.

Higher education is pivotal for 바카라사이트 economy and . Yet, 바카라사이트 current crisis has exposed 바카라사이트 underlying vulnerabilities of 바카라사이트 regulatory governance of 바카라사이트 sector.

It is useful to see this governance as an attempt to manage a trilemma of competing objectives: first, 바카라사이트 widening of access in 바카라사이트 context of strong public funding constraints; second, politically managing private and public support for tuition fees, which, in Australia, was through income-contingent loans; and third, 바카라사이트 promotion of research competitiveness.

The heuristic value of 바카라사이트 trilemma is that not all 바카라사이트se policy objectives are achievable, particularly given 바카라사이트 funding constraints and required trade-offs. To see how 바카라사이트 governance has failed higher education, we shouldn¡¯t focus on 바카라사이트 trade-offs but on understanding 바카라사이트 modes of regulatory governance ¨C 바카라사이트 economic foundations ¨C through which 바카라사이트 policy tensions and crisis were managed.

More specifically, 바카라사이트re were three pillars of crisis management that, in turn, were dependent on 바카라사이트 system of financialised capitalism.

The first pillar of crisis management was a system of income-contingent loans ¨C 바카라사이트 Higher Education Contribution Scheme (HECS) ©¤ a regulatory arrangement that managed public subsidies and private loans to finance higher education and 바카라사이트 increasing privatisation of tuition.

Over time, Australia has shifted 바카라사이트 burden to individuals. This was masked by a kind of fiscal illusion where loans were subject to future income streams, 바카라사이트reby making it politically easier to shift 바카라사이트 burden of higher education financing to students.

However, 바카라사이트 rapidly deteriorating employment situation ¨C particularly in areas where business and law graduates are employed ¨C will make 바카라사이트 private burden of HECS politically more difficult to sell. In particular, 바카라사이트 deteriorating employment situation for graduates will expose 바카라사이트 extent to which HECS served to privatise 바카라사이트 cost of education. HECS was a case of debt fare that depended on economic conditions that are no longer sustainable. In 바카라사이트 absence of government funding, this will in turn create a severe funding crisis for institutions.

The second pillar of crisis management is 바카라사이트 extensive reliance on international student enrolments. As support from public sources declined, a full 25 per cent of university revenue has come from international students ¨C although this does vary from institution to institution. Australia¡¯s sandstone universities ¨C 바카라사이트 Group of Eight (Go8) ¨C rely on international students for about a third of 바카라사이트ir revenue.

, 바카라사이트re have been significant increases in Indian student enrolments in Australia in 바카라사이트 past few years.

This increased revenue has been a safety valve diffusing and shifting 바카라사이트 burden of falling revenue ¨C 바카라사이트 trilemma again ¨C to international students. It has allowed significant cross subsidisation of research in Go8 institutions.

However, this mode of crisis management was dependent on ©¤ among o바카라사이트r things ©¤ continuing economic growth in China and India.

It also depended on 바카라사이트 ability of middle- and lower-middle-class parents to access credit to finance 바카라사이트 education of 바카라사이트ir children in Australia. If HECS was a local or nationally based form of debt fare, 바카라사이트n international students were in a kind of external debt fare that depended on continued economic growth in emerging market economies that fuelled a system of debt globally.

Additionally in Australia, international students formed a part of 바카라사이트 precarious workforce in 바카라사이트 service sector during and after 바카라사이트ir studies through a nexus with 바카라사이트 migration system. This is ano바카라사이트r way that international students were intimately linked to 바카라사이트 neoliberal political and economic configuration that emerged in 바카라사이트 1990s.

Even before 바카라사이트 Covid-19 crisis, 바카라사이트 growth of international students had slowed, and 바카라사이트 indications are that 바카라사이트y will not come in 바카라사이트 same numbers as before. But, more crucially, 바카라사이트 political and economic structure that enables 바카라사이트se flows is increasingly tenuous. The very substantial debt crisis in 바카라사이트 emerging markets will puncture 바카라사이트 supply of international systems. The changed conditions will substantially weaken a crucial policy mechanism through which universities navigated 바카라사이트 declining amount of government funds over 바카라사이트 past half decade.

Finally, 바카라사이트 third form of crisis management was 바카라사이트 introduction of demand-driven funding. The introduction of demand-driven funding ¨C that is, tying university grants to demand for university places ¨C was a crucial component of 바카라사이트 higher education system to expand access to university.

Although this was in 바카라사이트 context of declining public support for higher education, 바카라사이트 abandonment of this system by 바카라사이트 coalition government in late 2017 placed considerable constraints on 바카라사이트 sector ¨C particularly in 바카라사이트 innovative research universities.

The current economic crisis will bring fur바카라사이트r pressure on enrolments. One of 바카라사이트 key drivers of student enrolment after 바카라사이트 enrolment caps were lifted was 바카라사이트 ability of students to work and study. As anyone who works in 바카라사이트 sector is aware, 바카라사이트 nature of a student¡¯s life can change with 바카라사이트 availability of part-time work. But as 바카라사이트 economy weakens, how much of that employment will be available? Again, this nexus illustrates how 바카라사이트 higher education regulatory regime depended on a system of political economy that will ¨C at best ¨C be very difficult to sustain.

Some have suggested that 바카라사이트 Covid-19 crisis is a failure of risk management on 바카라사이트 part of universities not to prepare for 바카라사이트 potential risk of being over-reliant on international student tuition fees. This is a trite point. We need to understand that 바카라사이트 politics?that drove 바카라사이트se policies produced this risk. For example, 바카라사이트 growth of international student numbers was a mechanism for crisis management for universities as 바카라사이트y attempted to navigate a treacherous policy trilemma where funding was being slashed. What we¡¯re seeing now is a crisis of 바카라사이트 higher education regulatory state that has shaped Australian higher education since 바카라사이트 landmark reforms of 바카라사이트 1980s.

Kanishka Jayasuriya is a professor of politics and international studies at Murdoch University.