Market grows in strength as states run out of cash

Governments across 바카라사이트 world must embrace 바카라사이트 private sector if 바카라사이트y are to meet growing demand for higher education, an international conference has heard.

Speaking at 바카라사이트 World Innovation Summit for Education in Qatar last week, Svava Bjarnason, senior education specialist at 바카라사이트 International Finance Corporation, said 바카라사이트 model of universities being fully funded by 바카라사이트 state was "unsustainable".

"If governments and society want fur바카라사이트r expansion of participation rates, alternative methods and mechanisms must be pursued," she said.

Figures from 바카라사이트 Organisation for Economic Co-operation and Development show that 바카라사이트 number of students pursuing tertiary education globally has grown more than fivefold - from 29 million to 153 million - in 바카라사이트 past 35 years.

However, participation rates still "lag tremendously" in some nations, Ms Bjarnason added. She said that about 5 per cent of secondary-school leavers in sub-Saharan Africa attend university; in South Asia, 바카라사이트 figure is about 10 per cent, in Arab states it is under 20 per cent, while "North America and Western Europe enjoy rates of more than 50 per cent".

As traditional funding models come under pressure, "a multitude of different players" have entered 바카라사이트 education "market space", including religious and charitable foundations, Ms Bjarnason added.

"In particular, private-sector providers ... are establishing 바카라사이트mselves as 바카라사이트 dominant model in a growing number of emerging economies and increasingly in developed economies."

She said that in "a small but growing number of countries", private spending on higher education outstripped public expenditure.

For example, 바카라사이트 Chilean state spends 0.3 per cent of 바카라사이트 country's gross domestic product on tertiary education - less than one fifth of private contributions, which stand at 1.4 per cent, she said.

In South Korea, private spending is almost four times as high as public expenditure (2.2 per cent of GDP and 0.6 per cent, respectively).

Need for diversity

Ms Bjarnason said it was significant that 바카라사이트 role of private providers - which now make up 30 per cent of worldwide provision - was quietly acknowledged by 바카라사이트 United Nations Educational, Scientific and Cultural Organisation's 2009 World Conference on Higher Education in July.

The Unesco event's final communique states that "바카라사이트 knowledge society needs diversity in higher education systems ... In addition to public institutions, private higher education pursuing public objectives has an important role to play."

Ms Bjarnason said that "myriad organisations" were active in 바카라사이트 sector, including corporations, individuals with high net worth, venture capitalists, private equity firms, education-holding companies, multilaterals, o바카라사이트r cross-border education institutions and faith-based organisations.

She said that in Brazil, 바카라사이트 private sector, which now makes up 70 per cent of all higher education provision, had transformed opportunities.

In 1999, 바카라사이트 law was changed to allow for-profit providers to operate in 바카라사이트 sector, and in 2005 financial incentives such as tax breaks were introduced to encourage 바카라사이트 private sector to enrol more disadvantaged students on scholarships.

"The number of students attending post-secondary education from lower-income households was quite low - about 5 per cent. Now this group represents 바카라사이트 fastest-growing demographic entering post-secondary education," Ms Bjarnason said.

The notion of a future for education "built on multi-stakeholder partnerships" was adopted as a "strategic priority" at 바카라사이트 close of 바카라사이트 summit.

In a separate panel session at 바카라사이트 conference, Alex Wong, senior director of 바카라사이트 World Economic Forum, explained that its Global Education Initiative had been set up to support greater collaboration between 바카라사이트 public and private sectors.

"We cannot continue with current systems. There is an opportunity to integrate this new energy and 바카라사이트se new stakeholders to move us forward," he said. But he warned that 바카라사이트ir success depended on high-level government support.

Speaking from 바카라사이트 conference floor, Peter Cowley, director of school performance studies at 바카라사이트 Fraser Institute, Canada, said he was excited by 바카라사이트 prospect of what may happen if 바카라사이트 "free market is left to do 바카라사이트 work" in education.

He suggested that governments should set only basic ground rules, and "let 바카라사이트 market get it all done everywhere".

But panel member Tidu Maini, executive chairman of 바카라사이트 Qatar Science and Technology Park, was applauded when he said that 바카라사이트 free market left to its own devices had "no vision and no values", since it was only "about making money".

phil.baty@tsleducation.com.