1 Higher Education in Global Perspective: The U.S. Model vs. the Successful Model National Press Foundation New York City October, 2006 Stephen P. Heyneman Professor, International Education Policy Vanderbilt University

2 The American Model of Higher Education: What is it? Diversity in price, function and quality High access High equity

3 Recent Higher Education changes outside the U.S. Access Quality Managerial innovation Transparency Accountability Equity

4 Ranking of University-Based Industry Income in China (2003) As of 12/31/2003Unit 1,000 RMB* Institution Name Gross Profit ($US) 1Peking University729,914 (91m) 2Qinghua(Tsinghua) University474,324 (59m) 3Shanghai Jiaotong University203,690 (26m) 4Xian Jiaotong University170,432 (21m) 5Zhejiang University129,154 (16m) 6Fudan University120,271 (15m) 7Tongji University101,009 (13m) 8Dongbei University99,064 (12m) 9Harbin Industrial University94,351 (11m) 10Wuhan University93,437 (11m) *$US 1 = 8 Ren Min Bi Source: Chinese Ministry of Education Center for Education Technology Development

5 Public University Research-Based Industry Income In China ( ) Year# of Companies Net Income Gross ProfitNet ProfitTax Revenue (Unit—RMB)Million Million ($US million) ,8123,5432,8031,879 ( 235) ,7753,1542,3982,009 (251) ,9082,5371,8632,592 (324) ,8072,7611,4732,940 (368) ,6784,0982,3863,848 (481) Source: Chinese Ministry of Education Center for Education Technology Development

6 Universities in China: Funding from Non-Governmental Sources (2000) Institution Name Proportion of Funds from Non-Govt. Sources (%) Beijing (Peking) University41.7 Qinghua(Tsinghua) University33.6 Fudan University44.9 Jiaotong U.45.9 Nanjing University27.5 Zhejiang University 38.0 Source: Chinese Ministry of Education Center for Education Technology Development

7 More people are completing upper secondary and tertiary education than ever before… …in some countries, growth has been spectacular… …but others have fallen behind.

8 Growth in baseline qualifications Approximated by the percentage of persons with uppersecondary qualifications in the age groups 55-64, 45-55, and years (2002)

9 Growth in university-level qualifications Approximated by the percentage of persons with ISCED 5A/6 qualfication in the age groups 55-64, 45-55, and years (2002)

10 In many countries, the expansion was accompanied by massive financial investments …while in others student numbers grew faster than expenditure

11 Expenditure on educational institutions as a percentage of GDP (2001) All levels of education

12 Expenditure on educational institutions as a percentage of GDP (2001) Tertiary education

13 Share of private expenditure on educational institutions (1995, 2001) Tertiary education

14 Annual expenditure per student on educational institutions, in equivalent US dollars, converted using PPPs

15 Changes in spending per student in tertiary education (1995=100, 2001 constant prices )

16 Public subsidies for education in tertiary education (2001) Country mean

17 The earnings advantage of tertiary education (2002) Relative earnings of year-old tertiary graduates (upper secondary education=100)

18 Current entry rates suggest that the growth will continue Sum of net entry rates for single year of age in University (2002) Today’s entry rates in universities suggest that the strive for higher qualifications will continue… Half of an age cohort now enter university, and in Australia, Finland, Iceland, Poland and Sweden 70% or more University-entry in the USA is at 64% just after this group of countries …but not everyone completes with a degree At 34% drop-out rate in US higher than the average (30%) %

19 Academic Ratings of Universities Shanghai Jiao Tong University

Top 100 World Universities World Rank InstitutionCountry Total Score Score on Alumni Score on Award Score on HiCi Score on N&S Score on SCI Score on Size 1Harvard UnivUSA Stanford UnivUSA Univ CambridgeUK Univ California - BerkeleyUSA Massachusetts Inst Tech (MIT)USA California Inst TechUSA Princeton UnivUSA Univ OxfordUK Columbia UnivUSA Univ ChicagoUSA Yale UnivUSA Cornell UnivUSA Univ California - San DiegoUSA Tokyo UnivJapan Univ PennsylvaniaUSA Univ California - Los AngelesUSA Univ California - San FranciscoUSA Univ Wisconsin - MadisonUSA Univ Michigan - Ann ArborUSA Univ Washington - SeattleUSA Kyoto UnivJapan Johns Hopkins UnivUSA Imperial Coll LondonUK Univ TorontoCanada Univ Coll LondonUK

Rankings by Country CountryNumber of Universities in Top 100Top Rank USA521 UK83 Germany845 Japan514 Sweden446 Canada424 France441 Switzerland327 Netherlands239 Australia227 Finland172 Russia166 Norway168 Israel190 Austria186 Denmark159 Finland172 Italy193

22 Asia’s Best Universities 2000 Asiaweek

Ranking of Asian Universities by Size of Bandwidth RankMulti-Disciplinary SchoolsInternet bandwidth per student (kbps) Overall Rank Sun Yat-sen University (Taiwan) Kyungpook National University Chungnam National University Australian National University Taiwan Normal University* Seoul National University Tsing Hua University (Taiwan)* Kyoto University Chonnam National University Tohoku University (Japan) Tianjin University (China) Xi'an Jiaotong University (China) National University of Singapore University of Wollongong University of Adelaide Nagoya University Central University (Taiwan)* University of Melbourne Kasetsart University Chao Toung University (Taiwan)* Rank Multi-Disciplinary Schools Internet bandwidth per student (kbps) Overall Rank Monash University Chonbuk National University Taiwan University* Pusan National University City University of Hong Kong Hokkaido University Southeast University (China) Chung Hsing University (Taiwan)* Keio University* Hanyang University University of Western Australia Sungkyunkwan University Ewha Womans University Macquarie University Ritsumeikan University Waseda University Chinese University of Hong Kong University of Hong Kong Korea University Cheng Kung University (Taiwan)* 1.616

24 Legend: 05.A. Primary Education Services 05.B. Secondary Education Services 05.C. Higher Education Services 05.D. Adult Education 05.E.Other Education Service Source:WTO Secretariat WTO: SPECIFIC COMMITMENTS to EDUCATION SERVICES

25 Distribution of Foreign Students by Host Country/Territory, 2002/2003

26 International Students in the U.S.: Place of Origin

27 International Students in U.S.: Field of Study

28 U.S. Study Abroad Students: 1985/1986 – 1999/2000 SOURCE: Open Doors International, /8687/8889/9091/9293/9494/9595/9696/9797/9898/9999/ ,000 40,000 60,000 80, , , ,000

29 Education Cost Affordability Rankings

30 Total Cost Affordability Rankings

31 The Loan/Grant Mix in Sixteen Jurisdictions

32 The Role of Grants, Loans & Tax Expenditures in Reducing Total Costs

33 Innovations in Transparency and Accountability: Research assessment exercise Exit tests from undergraduate education

34 The American Model of Higher Education vs. the Successful Model: What does the future hold? Universal Objectives :  Higher quality  Greater access  Increased equity Current public resources:  Insufficient Additional Resources: New Sources of RevenueCopyrights on inventions New efficiency Faculty-based salaries Greater revenues from Contract overheads traditional sources RetrenchmentDomestic science

35 Summary Only one successful model of higher education: the one which succeeds in helping finance its own objectives The U.S. higher education has traditionally led the way All nations have to respond to the same set of dilemmas and challenges In the future the U.S will have many higher education rivals