1. The Impact of the Financial Crisis on Tertiary Education Institutions
Jamil Salmi
OECD Conference
29-30 June 2009
Air France, Air Astana, Austrian Air “35,000 feet above the ground there is a gourmet restaurant flying by”

2. Ferrari and Fiat 500

4. impact of the crisis how resource flows are affected
responses of tertiary education institutions
scenarios for the tertiary education sector
implications for governments
opportunities

5. resources flows
reduced government funding for teaching, research and student aid
reduced resources for institutions as demand falls (new domestic and foreign students, dropouts)

6. resource flows (II)
fewer resources from private sector (donations, contracts)
fall in stock market values reduces value of endowments and pension funds

7. differential effects scope of crisis
business model and financing strategy
how endowment resources are used
balance among various sources of income
country and type of institution
Endowments had increased a lot, for many back where they were three years ago

8. response of tertiary education institutions
budget cutting measures
revenue generation

9. budget cutting measures
employment-related
programs and academic organization
students (number, teacher/student ratio)
efficiency measures

10. revenue generation strategies
demand-linked measures
financial measures

11. strengthening financial planning and management
information and monitoring
fund-raising strategy and team
investment strategy
contingency planning

12. scenarios for the tertiary education sector
graduate unemployment
shifting demand (from long to for shorter duration programs, private to public, foreign to domestic)
increased inequality
deteriorating quality (with fewer resources)

13. implications for governments
increase scholarships and establish / strengthen student loan programs
include tertiary education in economic stimulus plans
R&D
capacity building
entrepreneurship for innovation
Finland experience

14. opportunities innovations and startups attracting foreign students
developing domestic private sector
philanthropy

15. opportunities efficiency gains and no-frill options
implementing structural reforms
strategic focus
new academic model
new business model

16. conclusion
differential effects depending on context and strategic positioning
short term reactions vs. long term realignment