B. Johnstone Worldwide Challenges and Policy Trends in Higher Education Finance and Accessibility Accessibility of Higher Education: challenges for Transition Countries Moscow, June 29-30, 2004

Bruce Johnstone State University of New York at Buffalo Professor of Higher and Comparative Education Professor of Higher and Comparative Education Director Center for Comparative and Global Studies in Education Director Center for Comparative and Global Studies in Education Director, International Comparative Higher Education Finance ands Accessibility Project Director, International Comparative Higher Education Finance ands Accessibility Project Former Chancellor. State University of New York system and President, State University of New York College at Buffalo. Former Chancellor. State University of New York system and President, State University of New York College at Buffalo.

Policy Goals for Higher Education, Worldwide 1. Quality 2. Responsiveness / Appropriateness to social Needs 3. Accessibility

1. Quality As measured by: 1. Internationally recognized scholarship 2. Internationally attractive / competitive programs for students 3. A national sense of satisfaction / pride by Leaders Leaders Students Students faculty faculty

2. Responsiveness / Appropriateness: a proper mix or diversity of: Institutions by: research research teaching teachingPrograms: Content Content Length Length Standards and academic rigor Standards and academic rigor

3. Accessibility: or degree to which: 1. Higher education diminishes intergenerational transmission of privilege; 2. Higher education generally mirrors secondary school demographics in terms of: Class Class Ethnicity Ethnicity Language Language Gender Gender

Challenges to (Problems of) Higher Education Worldwide 1. Austerity 2. Insufficient contribution to social equity 3. Inadequate teaching and learning 4. Insufficient responsiveness / mix of institutions and programs

Challenges / Problems Worldwide … 1. Austerity Natural trajectory of costs exceeding that of revenues. Natural trajectory of costs exceeding that of revenues. Resistence of universities to concepts and practices of efficiency and productivity. Resistence of universities to concepts and practices of efficiency and productivity. Insufficient Governmental Revenue due to: Insufficient Governmental Revenue due to: a) Increasing difficulty of taxation b) Increasing difficulty of deficit financing c) Increasing competition / public needs.

Challenges / Problems Worldwide … 2.Insufficient contribution of higher education to social equity Universal correlation of academic preparedness & interest with social class (and ethnicity, etc) Universal correlation of academic preparedness & interest with social class (and ethnicity, etc) Most measures to enhance equality need to occur long before higher education Most measures to enhance equality need to occur long before higher education

Challenges / Problems Worldwide … 3. Inadequate teaching and learning Tradition of academic freedom (to teach poorly) Tradition of academic freedom (to teach poorly) Absence of universally-recognized superior instructional methodology Absence of universally-recognized superior instructional methodology Perverse incentives (primacy of research) Perverse incentives (primacy of research)

Challenges / Problems Worldwide … 4. Insufficient responsiveness / mix of institutions and programs Universal resistance of any organization to change Universal resistance of any organization to change Insufficient incentives on (public) institutions to change Insufficient incentives on (public) institutions to change

Conventional Worldwide Higher Educational Reform Agenda: Revenue diversification (including faculty entrepreneurship & cost-sharing) Revenue diversification (including faculty entrepreneurship & cost-sharing) Means-tested grants and available loans Means-tested grants and available loans Sector diversification Sector diversification Enhancement of institutional autonomy Enhancement of institutional autonomy Encouragement of private sector Encouragement of private sector Measures to enhance accountability Measures to enhance accountability Enhancement of middle & secondary participation Enhancement of middle & secondary participation

Special Challenges for Russia & Other Transitional Countries 1. Inefficiency: high per-student costs 2. Extreme limitations on government revenue 3. Extreme Resistence to cost Sharing 4. Falling student populations 5. Tendency to perpetuate or even to exacerbate inequalities 6. Corruption

Special Challenges Russia & Transitional … 1. Inefficiency: high per-student costs Traditionally low student-faculty ratios Traditionally low student-faculty ratios Inefficient size of institutions Inefficient size of institutions

Special Challenges Russia & Transitional … 2. Limitations on Governmental Revenue Loss of traditional form of taxation Loss of traditional form of taxation Lack of tax compliance culture Lack of tax compliance culture Lack of market value of taxable property Lack of market value of taxable property Lack of inexpensive governmental access to private capital Lack of inexpensive governmental access to private capital

Special Challenges Russia & Transitional … 3. Resistence to Universal Cost- Sharing (tuition fees) 3. Resistence to Universal Cost- Sharing (tuition fees) Traditional European resistence Traditional European resistence Public expectation of entitlements Public expectation of entitlements Constitutional / Framework Law Constraint Constitutional / Framework Law Constraint Easy compromise with dual tuition fees Easy compromise with dual tuition fees

Special Challenges Russia & Transitional … 4. Falling student populations (demographics) May relieve national / system financial problem May relieve national / system financial problem May exacerbate institutional financial problem May exacerbate institutional financial problem

Special Challenges Russia & Transitional … 5. Higher Educations perpetuation of inequality Official refusal to recognize problem Official refusal to recognize problem Tradition of equity by single example Tradition of equity by single example De facto cost-sharing without: De facto cost-sharing without: Effective means-tested assistance Effective means-tested assistance Generally available loans Generally available loans

Special Challenges Russia & Transitional … 6. Corruption Extreme impoverishment of institutions & individuals Extreme impoverishment of institutions & individuals Unformed or unclear rules / guidelines Unformed or unclear rules / guidelines Tradition of deviation from official rules Tradition of deviation from official rules

Some Issues and Questions for this Conference 1. Russia and most European Transitional Countries already have de facto cost- sharing in dual track tuition fees: How can this revenue be made more substantial and predictable to benefit the institutions? How can this revenue be made more substantial and predictable to benefit the institutions? How can the inevitable cost-sharing be made equitable and less of a barrier to accessibility? How can the inevitable cost-sharing be made equitable and less of a barrier to accessibility?

Some Issues and Questions … 2. Considering the goal of increasing accessibilitywith special attention to rural, low income, and ethnically & linguistically minority youth: How can universities help -- with little or no additional money? How can universities help -- with little or no additional money? How can government help --also with little or no additional money)? How can government help --also with little or no additional money)?

Some Issues and Questions … 3. Considering: (a) the higher educational austerity that today exists, (b) the great unlikelihood of substantial additional governmental revenue; and (3) the limitations on non-governmental revenue: How can institutions themselves, through measures of efficiency, contribute more than they already have to the needed additional (a) quality and (b) accessibility? How can institutions themselves, through measures of efficiency, contribute more than they already have to the needed additional (a) quality and (b) accessibility?