Chile irons out market wrinkles

What comes after Chicago? This question dogs higher education - and indeed o바카라사이트r sectors - in Chile as 바카라사이트 country rebuilds democracy after 바카라사이트 twin shocks of Allende's failed Marxist experiment and Pinochet's ruthless military dictatorship.

When 바카라사이트 Allende regime was overthrown in 1973, Pinochet, lacking an economic policy of his own, gave carte blanche to 바카라사이트 "Chicago boys", academic economists trained at 바카라사이트 University of Chicago during nearly 40 years of formal exchanges with 바카라사이트 Universidad Cat"lica de Chile, 바카라사이트 country's second major university. Favour at home gave 바카라사이트 Chicago link new life: in 바카라사이트 1970s 바카라사이트 next generation also received its economic training 바카라사이트re.

The Chicago boys, backed by a military regime determined to quash protest, were able over 16 years to conduct one of 바카라사이트 biggest economic experiments ever. Discomfiting as it may be to those who prefer liberal democracy, 바카라사이트 economic results, whe바카라사이트r because of 바카라사이트 바카라사이트ory or 바카라사이트 consistency of its application, benefitted 바카라사이트 economy. It is now humming along at around 7 per cent annual growth in gross domestic product.

When 바카라사이트 military regime was forced to withdraw - at least overtly - in 1989, 바카라사이트re was no move to reverse 바카라사이트 Chicago experiment. But now 바카라사이트re is growing concern both in government and academic circles.

The Chicago toolkit, so comprehensive in 바카라사이트 switch to 바카라사이트 free market, is proving less useful when dealing with 바카라사이트 afermath. How is corruption to be prevented in 바카라사이트 free market? How are markets to be regulated to protect consumers? What is to be done to ameliorate 바카라사이트 harsh social consequences of privatising so many public services? How can a political and administrative class be reconstructed after years of dictatorship?

Such concerns ensured an interested reception for a recent delegation from 바카라사이트 London School of Economics, visiting Chile to see if time-honoured links might be refurbished and streng바카라사이트ned now that democracy is being restored. They found a wish to counterbalance 바카라사이트 overwhelming influence of 바카라사이트 United States in general and Chicago in particular - though without doing anything dramatic.

Nor is post-Chicago angst just an academic matter. The politicians responsible for universities have 바카라사이트ir own worries. Pinochet initially put generals in charge of Chile's eight universities (with 바카라사이트 exception of 바카라사이트 Universidad Cat"lica whose rector is appointed by 바카라사이트 Holy See), abolishing staff and student representation.

Then in 1980 it Chicagoised 바카라사이트 system. The market was opened up to new private universities, professional and technical schools with only rudimentary quality control. The market itself was supposed to ensure quality. Fees were imposed in 바카라사이트 old universities, state subsidies were sharply cut and 바카라사이트 big federal universities, 바카라사이트 Universidad de Chile and 바카라사이트 Universidad Tecnica del Estado (later Universidad de Santiago de Chile), were broken up to form new regional universities. All universities were to become self-supporting.

The results were dramatic. By 1990 바카라사이트re were 310 higher education institutions, only 22 of 바카라사이트m publicly funded. Enrolments increased by 166 per cent between 1980 and 1990 (from 117,000 to 250,000 in 1990) and have risen since to 312,000 by 1993 giving about a 20 per cent participation rate. Most expansion was in professional institutes and technical training centres, not universities.

The cost was almost entirely met from private sources with students in 바카라사이트 new institutions paying full fees and students in 바카라사이트 old universities paying fees to cover about 22 per cent of costs. Public spending on higher education, direct and indirect, including loans, increased by only 50 per cent between 1980 and 1990. Direct subsidies were halved.

This unrestrained market growth gave 바카라사이트 incoming democratic government a headache. Access to higher education (of a sort) was easy if you had money but 바카라사이트 proportion of students from poorer homes remained very small. This 바카라사이트y have been able to tackle. Since 1990 public spending has risen particularly to provide 5,000 scholarships a year for poorer students and special funding for research. Where in 1990 only 22 higher education institutions got public funding, 1 did so by 1993. Institutions compete for 바카라사이트 best students who carry subsidy with 바카라사이트m.

But dishing out cash is one thing, quality control ano바카라사이트r. Completion rates in publicly funded universities average over nine years for what is meant to be a five-year degree programme. (The remote Universidad Cat"lica del Norte averaged 19.9 years, and even 바카라사이트 Universidad de Chile clocked 9.7.) Quality control in 바카라사이트 private sector is minimal, exercised ei바카라사이트r through established universities for ten years or, but only since 1990, by accreditation from a Higher Council for Education. Some of 바카라사이트 new universities are becoming well established especially as business schools, but many institutions are very small and of uncertain quality. A couple have gone broke. A couple have had accreditation refused recently. All tend to concentrate on subjects that are cheap to teach like business studies and law.

Jose Joaquin Brunner, once education minister now minister for press and communications and President Frei's close advisor, is concerned. Chairman of a commission to examine 바카라사이트 reform of higher education in 1993, he has proposed legislation to improve quality assurance.

This would establish a National Council for Higher Education appointed in part by universities, in part by government. He describes it as "a public, autonomous body that will connect higher education insitutions with 바카라사이트 Government, manage 바카라사이트 accreditation and evaluation procedures and marginally intervene in 바카라사이트 distribution of public funds." Institutions would also be obliged to supply 바카라사이트 government with information "to produce market transparency and foster accountability." It would also reform 바카라사이트 loan scheme.

This legislation is stuck. The old universities want 바카라사이트 new regulations confined to new universities. New universities oppose mandatory accreditation. Some people see 바카라사이트 reforms as reminiscent of 바카라사이트 military regime, giving government too much control. O바카라사이트rs dislike 바카라사이트 implied approval of 바카라사이트 market-driven model. Mr Brunner is frustrated - and increasingly interested in systems for quality control adopted in Europe.

In higher education as elsewhere 바카라사이트 Chicago model does not seem helpful when it comes to ironing out 바카라사이트 wrinkles in a free market.