1. Higher Education in Latin America …is the playing field level
being in the bulls eye
Higher Education in Latin America …is the playing field level
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2. 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
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3. 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
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4. Global trends
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5. Composition of the global market for goods
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6. Global innovation hubs
Source: Hillner (2000) and UNDP (2001)
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7. Internet Hosts (pr 10,000 people, 2000)
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8. Higher Education Enrollment Ratio
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9. 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
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10. Internationalization of Higher Education
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11. 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
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12. Key developments in tertiary education in Latin America
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13. Returns by level of education Brazil (1982=100) Source: Blom; Holm-Nielsen and Verner (2001)
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14. Large increase in tertiary enrollment
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Source: WDI 2003

15. 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
Honduras
Bolivia
Panama
Uruguay
Cuba
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Source: Schwartzman (2002); World Bank (2002c and 2003); Zúñiga (2003); OECD (2002a) and García Gaudilla (1998)

16. 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
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17. Weak systems and institutional management
Private
Universities
Public
Short Cycle
Tertiary institutions
Private Sector
International networks
R&D
Institutes
Tertiary
Education
System
Government,
MINEDUC, etc.
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
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18. 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
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19. Short cycle tertiary education
Lack of cohesion
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
Skill level
University
Educational dead-end
Short cycle tertiary education
Learning gap
Low quality
Secondary
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20. 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)
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21. 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
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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

22. 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
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23. Inefficiency (Argentina)
High drop-out rates, repetition, low graduation and extended cycles
Few financial incentives to improve learning outcomes and efficiency
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24. 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
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25. 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
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Source: Brunner (2002), World Bank (2002); UK Higher Education Statistics Agency Individualized Staff Record 2001/02; García Gaudilla (1998) and Schwartzman and Balbachevsky (1996)

26. 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
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27. 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
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Source: IMD World Competitiveness Yearbook 2003

28. 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
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29. Financing tertiary education
Investments in tertiary
2.5%
education, 1999
Strong market for tertiary education
Comparatively low level of public funding
Risk of volatility and inadequate attention to public priorities and national needs
2.0%
1.5%
% of GDP
1.0%
0.5%
0.0%
USA
Chile
OECD
Brazil
Mexico
Colombia
Argentina
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Public subsidies
Private sources
Total
Source: OECD (2002) and World Bank (2002)

30. 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
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31. Foreign Students enrollment, source OECD 2003
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32. Foreign Students % of enrollment, Source OECD 2003
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33. Brain Drain Source: Wodon (2003)
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34. 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
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35. 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
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36. The World Bank
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37. the World Bank’s role
mission -- to assist client countries reduce poverty and improve living standards through sustainable growth and investment in people.
experience -- from projects in infrastructure, health, agriculture, education and S&T
strategy – to include investments in advanced human capital in CAS’ and CPS’ as fundamental for sustainability and competitiveness
actions -- efforts to promote international best funding practice in Agriculture, Health, HE and S&T systems
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38. Why should the Bank be involved in Advanced Human Capital?
Key driver for social mobility
Competitiveness: Supports the transition to knowledge-based economies
Generates externalities that underpin the Bank’s work in other sectors
Associated with market failures
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39. Operations in tertiary education
Argentina: Higher Education Reform Project (P034091)
Chile: Higher Education Improvement Project (P055481)
Colombia: Improved Access to Higher Education (P074138)
Mexico: Higher Education Financing Project (P049895)
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40. Operations in S&T
Brazil: Science and Technology Reform Support (P038947)
Chile: Science for the Knowledge Economy (P077282)
Mexico: Knowledge and Innovation Project (P044531)
Venezuela: Millennium Science Initiative (P066749)
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41. New program FY05-06
Mexico: Tertiary Education Student Assistance Project
Chile: Higher Education Finance and Curricula Reform
Mexico: Science, Technology and Innovation Project
Argentina: Higher Education Reform Project
Uruguay: Competitiveness project
Venezuela: Technology Fund
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42. thanks for the invitation rektor@au.dk
Universities
in the bulls eye
thanks for the invitation
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