Measuring Governance in Tertiary Education Jamil Salmi & Roberta Malee Bassett Washington, DC 28 January 2010

2 outline of the presentation what is governance; why it matters key dimensions of governance the corruption agenda benchmarking governance in tertiary education

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4 what is governance in tertiary education? governance focuses on –the rules and mechanisms by which various stakeholders influence decisions –how institutions are held accountable –to whom they are accountable

5 what is governance in tertiary education? governance encompasses the framework in which an institution pursues its goals and policies in a coherent and coordinated manner to answer the questions: ‘who is in charge, and what are the sources of legitimacy for executive decision- making?’ eacea.ec.europa.eu/ressources/eurydice/pdf/0_integral/091EN.pdf

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natural lab experiment: University Of Malaya vs. National University of Singapore early 1960s: 2 branches of University of Malaya today, stark difference: THES: NUS # 30, UoM # 180 SJTU: NUS , UoM not in top 500 7

Autonomy Academic Freedom Students Teaching Staff Researchers Leading-Edge Research Dynamic Knowledge & Technology Transfer Concentration of Talent Abundant Resources Favorable Governance Leadership Team Strategic Vision Culture of Excellence Public Budget Resources Endowment Revenues Tuition Fees Research Grants WCU Supportive Regulatory Framework Top Graduates Characteristics of a World-Class University Alignment of Key Factors Source: Elaborated by Jamil Salmi

talent UM: selection bias in favor of Bumiputras, less than 5% foreign students, no foreign professors NUS: highly selective, 43% of graduates students are foreign, many foreign professors 9 University Of Malaya vs. National University of Singapore

University Of Malaya vs. National University of Singapore (II) finance UM: $118 million, $4,053 per student NUS: $750 million endowment, $205 million, $6,300 per student 10

University Of Malaya vs. National University of Singapore (II) governance UM: restricted by government regulations and control, unable to hire top foreign professors NUS: status of a private corporation, able and eager to attract world-class foreign researchers 52% of professors (9% from Malaysia) 79% of researchers (11% from Malaysia) 11

comparing the US and Europe governance is a key determinant of world rankings research performance positively linked to degree of autonomy (budget management, hiring and firing staff, freedom to set salaries) university boards with outside representation are a necessary condition for dynamic reforms 12

13 outline of the presentation What is governance and why it matters key dimensions of governance

14 key dimensions of governance [ role and responsibilities of the state? laws, policies, declarations, charters institutional leadership autonomy vs. accountability (stakeholder voices)

15 role of the State [ from central control to steering at a distance

16 international trends general move to granting greater autonomy (Japan, Thailand, Indonesia, Germany, France) MOEs are surrendering some functions to intermediate agencies or empowering institutions Board with external representation growth in scale and intrusiveness of monitoring by governments

17 key dimensions of autonomy academic (selection of students - qualifications and number, program and curriculum development, academic freedom) staffing (recruitment / evaluation of faculty / dismissal, remuneration) financial (income generation, block-grant, ownership of infrastructure and ability to borrow)

18 extent of university autonomy in 12 OECD countries Country Own public buildings Borrow funds Spend budgets to achieve objectives Set academic structure and courses Employ and dismiss staff Set staff salaries Decide size of student enrolment MexicoYYYYY NetherlandsYYYYYY PolandYYYYYY AustraliaYYYYY IrelandYYYYY UKYYYYY DenmarkYYYY SwedenYYYY NorwayYYYY FinlandYYY AustriaYYYY RomaniaYYYYYY [

19 changing role of government (Georgia) Areas of oversight and regulation Present situation Proposed approach Formulating overall vision and setting policies YStrengthened Allocating budgetary resources based on performance and equity criteria NY Evaluating and promoting qualityLimitedStrengthened Allowing flexibility to hire and dismiss faculty NY Allowing flexibility to establish salary levels NY Imposing ex ante financial controls and audits YN Allowing flexibility in procurement rulesNY Monitoring / evaluatingLimited capacityY

20 appointment of university leader government appointment democratic election (faculty, administration, students, alumni) competitive appointment (Board, govt, electorate)

21 role of the Board in the autonomous university appoints the President and monitors his/her performance approves the mission and strategic plan, budget and performance indicators assesses performance against the strategy and plan establishes and monitors control and risk management systems

22 effective Boards Board = interface between society and universities learning to work together: university leadership and Board need for capacity building clear boundaries

24 outline of the presentation why governance matters key dimensions of governance the impact of corruption

an inventory of corrupt behaviors categories based on educational and institutional processes “protagonists” identified examples provided from around the world summary matrix on p. 33 of the report

main forms of corruption in tertiary education admission process (examination fraud, bribery, favoritism, undue influence, discrimination) academic process (cheating, plagiarism) awarding of false credentials undermining of QA (bribery, false data, accreditation mills) research misconduct (standards, falsification of results, conflicts of interest, theft of ideas)

financial fraud and mismanagement profiteering theft embezzlement financial mismanagement student loan fraud

informal payments for education

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why does corruption happen? economic dimensions corruption in tertiary education often mirror corruption in other realms low teacher and administrator salaries supply out of sync with demand

why does corruption happen? political dimensions lack of oversight and accountability managerial capacity political tolerance

negative impact contrary to basic purpose of education ethical values academic merit loss of trust in system and outputs teachers (role models) students (code of conduct) institutions (reputation ) misuse of limited resources danger to the public medical doctors with invalid accreditation

fighting corruption preventive measures (legislation, governance, procedures) detecting and monitoring (IT systems, tip lines, surveys, audits)

corruption in Kyrgyz universities

fighting corruption punitive measures (legal action, career sanctions, academic / professional sanctions, protests and violence) multiple purpose measures (accreditation, awareness, transparent reporting, integrity ranking)

38 outline of the presentation why governance matters key dimensions of governance the corruption agenda benchmarking governance in tertiary education

ranking systems in 2009 Region National and International Ranking System Eastern Europe and Central Asia Kazakhstan (A, B), Lithuania (B), Poland (C), Slovakia (B), Romania (B/C), Russia (B), Ukraine (B/C) East Asia and Pacific Australia (B), China (B, C, IB), Hong Kong (C), Japan (B, C), Korea (A), Malaysia (A), New Zealand (A), Taiwan (B, IB), Thailand (A) Latin America and the Caribbean Argentina (D), Brazil (A), Chile (C,D), Mexico (B), Peru (B) Middle East and North Africa Tunisia (A) North America Canada (B, C, B/C), United States (C, IC) South Asia India (C/D), Pakistan (A) Sub-Saharan Africa Nigeria (A) Western Europe Germany (B/C, C), Italy (C), Netherlands (A), Portugal (C), Spain (B, C, IC), Sweden (C), Switzerland (B/C), United Kingdom (A, B, IC)

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European Association of Universities 41 Study of University Autonomy in Europe (34 countries)

42 benchmarking governance in tertiary education defining key dimensions selecting indicators developing questionnaire

43 developing indicators systems governance (strategic vision, legal framework, quality assurance, resource allocation and financial incentives) autonomy (academic, staffing, financial) accountability mechanisms existence and role of Boards institutional leadership

44 data collection piloting questionnaire in the East Asia Region second pilot phase in Central America intended to expand globally after pilot-driven improvements

45 next steps collecting data analyzing findings establishing relationships with performance measures

46 University Governance Upgrade your knowledge – Govern and finance your tertiary education system! Ariel Fiszbein