Tertiary Education

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					Tertiary Education in Latin America


          Norway-WB Seminar, Washington
                          May 14, 2004

                         Lauritz B. Holm-Nielsen
                    Lholmnielsen@worldbank.org
   Why should the Bank be
involved in tertiary education?
   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
                             World Bank Education
                               Portfolio in LAC
          LCSHD Portfolio: FY98-03 Commitments



                                                     Strong focus on
                          Primary      Vocational
                                                      primary education
                           59%            2%         Sizeable commitments
                                        Secondary
                                          10%
                                                      were made to tertiary
                                       S&T
                                                      education in FY98,
                            Tertiary   14%            FY99 and FY03
                             15%


Source: World Bank 2004
Key developments that mark
 tertiary education in Latin
         America….
                                             Large increase in tertiary
                                           enrollment in recent decades
                                      60


                                      50
     Tertiary gross enrollment rate




                                      40


                                      30


                                      20

                                      10


                                      0
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                                                                             1965   1975    1985      1995      2000
Source: WDI 2003
               Growth in private provision and
               non-university tertiary education
                                         Percent of total enrollment
                        Year               75%-40%                     40%-30%                      30%-20%       20%-10%      Less than
                                                                                                                               10%


                        1985               Brazil                      Chile                        Argentina     Costa Rica   Bolivia
                                           Colombia                    El Salvador                  Guatemala     Ecuador      Panama
                                           Dom.                        Peru                         Paraguay      Honduras     Uruguay
                                           Republic                                                               Mexico       Cuba
                                                                                                                  Nicaragua
                                                                                                                  Venezuela


                        2002*              Brazil                      Venezuela                    Costa Rica    Honduras     Bolivia
                                           Colombia                                                 Ecuador                    Panama
                                           Chile                                                    Argentina                  Uruguay
                                           Dom.                                                     Guatemala                  Cuba
                                           Republic                                                 Mexico
                                           El Salvador
                                           Nicaragua
                                           Paraguay
                                           Peru

Source: Schwartzman (2002); World Bank (2002c and 2003); Zúñiga (2003); OECD (2002a) and García Gaudilla (1998)
What are the sector issues?
                                  Inequitable participation
 100%

   90%

   80%
                                                                                                TE largely elitist
   70%                                                                                           with the majority
   60%                                                                                           of students coming
   50%                                                                                           from the wealthiest
   40%
                                                                                                 segments of society
   30%
                                                                                                Very inadequate
   20%
                                                                                                 student aid for poor
                                                                                                 students
   10%
                                                                                                Not enough TE in
     0%
                 Brazil           Mexico           Colombia        Chile   Argentina   Spain
                                                                                                 regions
                                               Q1/2           Q3   Q4      Q5
Source: World Bank (2002); Del Bello (2002) and Delannoy (2000)
              WB responses:
 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
               Weak market for tertiary education
                                Investments in tertiary
                                   education, 1999
               2.5%


               2.0%                                                        High reliance on public
                                                                            subsidies and de facto
    % of GDP




               1.5%
                                                                            state support of the
               1.0%                                                         affluent
               0.5%
                                                                           The market for higher
                                                                            education is not
               0.0%
                                                                            sufficiently transparent
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                Public subsidies               Private sources    Total
Source: OECD (2002) and World Bank (2002)
                WB responses:
   Boost investments through additional private
    contributions (tuition coupled with sustainable
    student financial aid programs) while advising
    clients to use public resources strategically

   Create a transparent market for tertiary education,
    e.g. by supporting accreditation and the collection
    of data on labor market outcomes
1,400,000
                                                 Ineficiency
                                                                                    1,193,003
1,200,000                                                     Alumnos declarados

                                                                                                    High drop-out
1,000,000
                                                                                                     rates, repetition,
 800,000
                                                                                        765,066      low graduation and
                                                               1ó+ Materias
                                                                                                     extended cycles
                                                                                        616,669
                                                              Aprobadas en t-1
 600,000                                                                                            Few financial
                                                              2ó+ Materias Aprobadas
                                                                 en t-1 (Regulares)                  incentives to
 400,000
                                                                                        286,488      improve learning
 200,000                     Ingresantes declarados                                                  outcomes and
                                                          Egresados
                                                                                        47,413       efficiency
       0
            1982

                   1984

                          1986


                                  1988

                                         1990


                                                1992


                                                       1994

                                                                  1996


                                                                         1998

                                                                                 2000

                                                                                            2002
             WB Responses

 Link public resource allocation with objective
  performance and outcome criteria throgh
  performance contacts and competitive funding
 Consolidate monitoring and evaluation systems
  and ensure reliable statistical data
                      Lack of cohesion

                                           Secondary and tertiary
Skill level
                                            institutions are not working
                                            together to bridge gaps in
     University
                   Educational dead-end     tertiary opportunities
                            Short cycle    Weak linkages between
     Learning                 tertiary
       gap                   education      universities and non-
     Low quality
                                            university tertiary
      Secondary                             institutions
                                           No systems for the transfer
                                            of academic credits
             WB responses:
 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)
                            Low quality and relevance
                             Professors with PhDs
    45%
                                                                                                                    Insufficient
    40%
                                                                                                                     qualifications of
    35%

    30%
                                                                                                                     university professors
    25%
                                                                                                                    Deteriorating physical
    20%                                                                                                              facilities, lack of
    15%                                                                                                              equipment, obsolete
    10%                                                                                                              instruction material and
     5%                                                                                                              outdated curricula
     0%
                                                                                                                    University graduates
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                                                                                                                     does not meet the skills
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                                                                                                                     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)
              WB responses:
 Promote the use of quality assurance mechanisms
  with external peer-review
 Strengthen graduate programs and in-service
  training of university teachers, and establish
  financial and promotional incentives for teachers
  to perform
 Upgrade teaching facilities, learning materials and
  research equipment
 Develop competency-based curricula emphasizing
  ‘learning to learn’ methodologies
              Weak national innovation systems

                Degree of knowledge transfer between
  10                  universities and industry                                         Low production and
    9                                                                                    mobility of PhDs and
    8                                                                                    post-docs
                                                                                        Inward orientation of
    7

    6

    5
                                                                                         university researchers
    4                                                                                   Lack of incentives to
    3                                                                                    commercialize research
    2                                                                                    and solve real-life
    1                                                                                    problems
    0
                                                                                        Red tape impeding
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                                                                                         partnerships and cross-
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                                                                                         sectoral mobility
Source: IMD World Competitiveness Yearbook 2003
             WB responses:
 Improve graduate education in areas of high
  importance to national economies, and establish
  programs for the insertion of young researchers
  into industry
 Strengthen linkages between universities and
  industry by promoting matching grant schemes
  and cooperative research, and provide incentives
  for universities to commercialize innovations
 Promote the participation in international
  knowledge and research networks
                 Weak system and institutional
                        management

       Regional
     governments

                                                                          Weak university
     Regional             Private           Public             Science
Tertiary institutions   Universities      Universities         Agency
                                                                           management structures
                                                                          Insufficient capacity in
 International
   networks
                               Tertiary
                              Education
                                                         Private
                                                         Sector
                                                                           ministries of education
                               System
                                                                           for sector oversight and
                                                                           strategy
                         Ministry of Education,

                                                                          Low access to relevant
                        Science and Technology



                                                                           management information
              WB responses:
 Strengthen tertiary institutional management, e.g.
  by introducing professional management, and
  broaden governance structures to include
  representatives of industry and civil society
 Provide technical assistance to ministries of
  education to build adequate policy frameworks
  for tertiary education, strengthen long-term
  planning and support the adoption of a sector-
  wide approach to education
 Build transparent management information
  systems in order to provide a solid basis for
  decision-making
        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)
     Operations in S&T related
       to tertiary education
 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)
      New operations FY05-06

 Mexico: Tertiary Education Student Assistance
  Project
 Chile: Higher Education Finance and Curricula
  Reform APL
 Mexico: Science, Technology and Innovation
  Project
 Argentina: Higher Education Reform Project
Tak for invitationen


                Lauritz B. Holm-Nielsen
           Lholmnielsen@worldbank.org

				
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