1. THE PUBLIC RESPONSIBILITY FOR HIGHER EDUCATION: THE CASE OF FINANCE Sjur Bergan Council of Europe Novi Sad, October 28 – 30, 2005

2. PURPOSES OF HIGHER EDUCATION  Preparation for the labor market (sustainable employment)  Preparation for life as active citizens in democratic societies  Personal development  Development and maintenance of a broad, advanced knowledge base

3. AN ULTIMATE GOAL  Individuals: –Equal access to quality higher education for all those qualified  Society: –Make full use of a society’s talent pool

4. POLICY INSTRUMENTS  Legislation  Finance –incentives –punishment  [Staff appointments]  Developing attitudes  Public pressure  Private pressure  Personal relationships

5. FROM ALL PUBLIC TO MIXED FINANCING  Can institutions live on public funds alone? –If not, what is the alternative?  Project funds (public and private)  Student funding  Private funding from donors  Non-public funding –Additional to public funding? –Substitute for public funding?

6. PUBLIC RESPONSIBILITY FOR FUNDING  Legal framework  Control vs. encouragement  Transparency and information  Equity/equal opportunities  How much funding?

7. SOME ISSUES  Who funds the less “market friendly” programs?  Funding according to results: does anyone cheat?  Financial support: to students, institutions or both?  Private funding: complement or substitute?

8. FURTHER ISSUES  Public funds: from whom to whom? –Ordinary and “special” budgets –Public project funds –Lump sum or itemized appropriations?  Autonomy and accountability –Political responsibility –Financial responsibility –“Freedom within limits”