1. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS being in the bulls eye Higher Education in Latin America …is the playing field level

2. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS Who am I  Mag.scient. in biology University of Aarhus  Employments  1993-2005 Lead Higher Education Specialist, World Bank  1986-1993 Rector at Danish Research Academy  1979-1981 Professor at P. Universidad Católica, Quito  1975-1986 Asc. Prof. at Dpt. of Botany, Aarhus Universitet  1972-1975 Ass. Prof. At Dpt. Of Botany, Aarhus Universitet  Publications  Aprox. 135 two thirds in botany  Memberships  National Research Foundation, White Paper Commision, Council for Development Research, National Science Foundation, Nordic Academy for Advanced Study

3. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS

4. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS

5. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS

6. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS

7. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 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

8. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 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

9. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS Global trends

10. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS Composition of the global market for goods

11. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS Global innovation hubs Source: Hillner (2000) and UNDP (2001)

12. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS Internet Hosts (pr 10,000 people, 2000)

13. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS Higher Education Enrollment Ratio

14. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS Internationalization of Higher Education

15. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 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

16. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS Key developments in tertiary education in Latin America

17. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS Returns by level of education Brazil (1982=100) Source: Blom; Holm-Nielsen and Verner (2001)

18. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS Large increase in tertiary enrollment Source: WDI 2003

19. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 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)

20. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 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

21. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 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.

22. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 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

23. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 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

24. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 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)

25. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 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

26. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 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

27. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 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

28. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 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

29. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 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)

30. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 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

31. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 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

32. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 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

33. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 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, 1999 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% USA Chile Colombia OECD Brazil Argentina Mexico % of GDP Public subsidiesPrivate sourcesTotal

34. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 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

35. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS Global market for advanced human capital

36. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS Foreign Students enrollment, source OECD 2003

37. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS Internationalisation (students)

38. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS Brain drain or brain circulation?

39. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS Effects of mobility among the highly educated CHALLENGESPOSSIBILITIES SENDING COUNTRY  Brain drain  Waste of public resources  Reduced growth  Limited academic freedom  Money transfers, trade and investment  Increases entrepreneurship and flow of knowledge  Enlarges competency areas RECIEVING COUNTRY  Unemployment among locals  Occupies scarce educational resourceses  Decreases growth in salaries  Highly qualified labour  Diversity in academia  Boost of research and development  Increased effectivity and revenues  Creates new jobs Source: Anthony P. D’Costa, ”The International Mobility of Technical Talent” (2006)

40. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS Brain Drain Source: Wodon (2003)

41. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 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

42. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS Balance in International Mobility?  Foreign trained physicians: US-- 27%, Australia -- 21.4%, Canada -- 20%, Switzerland 19.1%, 12.6% UK  Overseas trained nurses per year in UK: 1998 -- 3,621, 1999 -- 5945……., 2004 -- 15,064

43. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 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

44. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS Goal: Increased mobility among students and researchers

45. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS Universities in the bulls eye thanks for the invitation rektor@au.dk

46. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS

47. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS The World Bank

48. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS 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

49. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS 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

50. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS 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)

51. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS 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)

52. Lauritz B. Holm-Nielsen, Rector Ulandslære, 7. marts, 2007 THE UNIVERSITY OF AARHUS 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