Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS being in the bulls eye Higher Education in Latin America …is the playing field level

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Economic and social development are increasingly driven by the advancement and application of knowledge Education in general — and tertiary education and S&T in particular — are fundamental to the construction of knowledge economies

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS However, S&T systems in developing and transition countries face persistent problems of finance, efficiency, equity, quality and governance New challenges linked to rapid changes in technology, communication and the globalization of trade and labor markets have amplified the traditional problems of tertiary education and research and development and S&T

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Global trends

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Composition of the global market for goods

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Global innovation hubs Source: Hillner (2000) and UNDP (2001)

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Internet Hosts (pr 10,000 people, 2000)

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Higher Education Enrollment Ratio

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Some European countries, ad especially the Caribbean and Africa, face significant emigration rates of their elites (sometimes exceeding 50%) Source: OECD, Trends in International Migrations 2004

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Internationalization of Higher Education

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Internationalization has important implications for inserting future leaders and knowledge workers in the global community and gaining equal access to the rapidly increasing pool of knowledge and know-how

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Key developments in tertiary education in Latin America

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Returns by level of education Brazil (1982=100) Source: Blom; Holm-Nielsen and Verner (2001)

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Large increase in tertiary enrollment Source: WDI 2003

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Growth in private provision Percent of total enrollment Year 75%-40%40%-30%30%-20%20%-10%Less than 10% 1985 Brazil Colombia Dom. Republic Chile El Salvador Peru Argentina Guatemala Paraguay Costa Rica Ecuador Honduras Mexico Nicaragua Venezuela Bolivia Panama Uruguay Cuba 2002* Brazil Colombia Chile Dom. Republic El Salvador Nicaragua Paraguay Peru Venezuela Costa Rica Ecuador Argentina Guatemala Mexico HondurasBolivia Panama Uruguay Cuba Source: Schwartzman (2002); World Bank (2002c and 2003); Zúñiga (2003); OECD (2002a) and García Gaudilla (1998)

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS What are the issues?  Weak systems and institutional management  Lack of cohesion  Inequitable participation  Inefficiency  Low quality and relevance  Weak national innovation systems  Balance in financing tertiary education  Brain Drain

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Weak systems and institutional management  Low access to reliable and relevant information  Lack of accountability in use of public subsidies  Weak university management and governance structures  Insufficient capacity in MoEs for sector oversight and strategy  Inadequate systemic coherence Private Universities Public Universities Short Cycle Tertiary institutions Private Sector International networks R&D Institutes Tertiary Education System Government, MINEDUC, etc.

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Potential actions  Build transparent management information systems in order to provide a solid basis for decision-making  Consolidate capacity for real autonomy with accountability by strengthening institutional governance and professional management, and manage by results  Procure technical assistance to ministries of education to consolidate adequate policy framework for tertiary education, strengthen long-term evaluation and planning, and manage by results

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Learning gap Lack of cohesion Skill level Short cycle tertiary education Educational dead-end Low quality Secondary University Secondary and tertiary institutions are not working together to bridge gaps in tertiary opportunities Weak linkages between universities and non-university tertiary institutions No systems for the transfer of academic credits

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Potential actions  Motivate and enable poor and socially excluded students to complete secondary education and achieve academic excellence  Strengthen linkages between university and non-university sub-systems by bridging between short and long cycle programs  Support mechanisms for the transfer of academic credits, e.g. by promoting module- based curricula design (Bologna like process)

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Inequitable participation  TE still elitist with the majority of students coming from the wealthiest segments of society  Inadequate student aid for poor students  Not enough opportunities in regions Source: World Bank (2002); ADB (2003); Del Bello (2002); Delannoy (2000); US Census Bureau (2002) and Chronicle of Higher Education (2003) Note: Calculations for the United States are based on the characteristics of freshmen at 4-year colleges in fall 2002

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Potential actions  Making student loans available to academically bright, but financially needy students while promoting performance in cost-recovery and administrative efficiency  Using income-contingent loan schemes to help low- income families to overcome the lack of collateral and fear of defaulting on traditional ‘mortgage-style’ student loan debt  Supporting tertiary education in regions with links to local needs and as stepping stone towards advanced education

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Inefficiency ( Argentina)  High drop-out rates, repetition, low graduation and extended cycles  Few financial incentives to improve learning outcomes and efficiency

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Potential actions  Consolidate monitoring and evaluation systems and ensure reliable statistical data  Support for degree structure and curricular redesign  Link public resource allocation with objective performance and outcome criteria through performance contacts and competitive funding

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Low quality and relevance  Insufficient qualifications and mobility of university professors  Too little innovation of teaching methodologies and curriculum  University graduates do not meet the skills needs in the economy Source: Brunner (2002), World Bank (2002); UK Higher Education Statistics Agency Individualized Staff Record 2001/02; García Gaudilla (1998) and Schwartzman and Balbachevsky (1996)

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Potential actions Promote the use of quality assurance mechanisms with external peer-review Strengthen graduate programs, and establish financial and promotional incentives for teachers to perform Establish institutional strategies for staff renewal Upgrade teaching facilities, learning materials and research equipment Develop competency-based curricula emphasizing ‘learning to learn’ methodologies

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Weak national innovation systems  Low production and mobility of PhDs and post-docs  Inward orientation of university researchers  Lack of incentives to commercialize research and solve real-life problems  Red tape impeding partnerships and cross-sectoral mobility Source: IMD World Competitiveness Yearbook 2003

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Potential actions  Improve graduate education in areas of high importance to the economy  Establish programs for the insertion of doctoral students and young researchers into industry  Strengthen ties between universities and industry by promoting cooperative research  Provide incentives for universities to commercialize innovations  Promote the participation in international knowledge and research networks

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Financing tertiary education  Strong market for tertiary education  Comparatively low level of public funding  Risk of volatility and inadequate attention to public priorities and national needs Source: OECD (2002) and World Bank (2002) Investments in tertiary education, % 0.5% 1.0% 1.5% 2.0% 2.5% USA Chile Colombia OECD Brazil Argentina Mexico % of GDP Public subsidiesPrivate sourcesTotal

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Potential actions  Create a transparent market for tertiary education, e.g. by supporting accreditation, the collection of data on labor market outcomes, and monitoring & evaluation  Link public resource allocation directly with objective performance and outcome criteria through performance based funding agreements (contracts) for core budget  Competitive grants for investment and innovation allocations

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Foreign Students enrollment, source OECD 2003

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Foreign Students % of enrollment, Source OECD 2003

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Brain Drain Source: Wodon (2003)

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Balance in International Mobility?  Foreign trained physicians: US-- 27%, Australia %, Canada -- 20%, Switzerland 19.1%, 12.6% UK  Overseas trained nurses per year in UK: ,621, ……., ,064

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Potential actions  prioritize internationalization at the political agenda, and develop a proactive internationalization agenda  aim at balance in exchange of students and knowledge workers by attracting foreign students or skilled nationals from abroad, including from within the region  develop adequate strategies for LA countries to reap the full benefits of the GATS

Lauritz B. Holm-Nielsen, Rector ERASMUS MUNDUS group, August 29, 2006 THE UNIVERSITY OF AARHUS Universities in the bulls eye thanks for the invitation