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Financing Higher Education in Africa Public Disclosure Authorized Public Disclosure Authorized FHEA I-Xx.Qxd 4/7/10 2:46 PM Page I Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Human Development DIRECTIONS INDEVELOPMENT Higher Education Financing Financing in Africa FHEA_i-xx.qxd 4/7/10 2:46 PM Page i Financing Higher Education in Africa FHEA_i-xx.qxd 4/7/10 2:46 PM Page ii FHEA_i-xx.qxd 4/7/10 2:46 PM Page iii Financing Higher Education in Africa FHEA_i-xx.qxd 4/7/10 2:46 PM Page iv © 2010 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org E-mail: [email protected] All rights reserved 1 2 3 4 13 12 11 10 This volume is a product of the staff of the International Bank for Reconstruction and Development / The World Bank. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgement on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development / The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Internet: www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW,Washington, DC 20433, USA; fax: 202-522-2422; e-mail: [email protected]. ISBN-13: 978-0-8213-8334-6 eISBN: 978-0-8213-8337-7 DOI: 10.1596/978-0-8213-8334-6 Cataloging-in-publication data has been requested Library of Congress Control Number: 2010926044 Cover photo by Dino Merotto Cover design by Quantum Think FHEA_i-xx.qxd 4/7/10 2:46 PM Page v Contents Foreword xiii Acknowledgments xvii Abbreviations xix Chapter 1 Introduction 1 Rising Social Demand and Sustainable Financing 1 Main Features of Current Funding Policies and Practices 3 Tools for Financially Sustainable Policies 6 The Implementation of Financing Reforms 9 Purpose and Organization of the Study 10 Chapter 2 Rising Social Demand and the Challenge of Sustainable Financing 13 Current Demand for Higher Education and Government Funding Capacity 16 Public Resources per Student and Efforts to Raise Quality 20 v FHEA_i-xx.qxd 4/7/10 2:46 PM Page vi vi Contents Projected Demand for Higher Education and Public Financing 27 Notes 35 References 37 Chapter 3 Main Features of Current Funding Policies and Practices 39 Operating Budget Allocation Practices 39 Investment Budget Allocation Practices 47 Budget Management Practices and the Optimal Use of Available Resources 49 Private Funding for Tertiary Education 55 Student Financial Assistance 74 Loan Programs 77 External Assistance to Higher Education 94 Foundation Support 105 External Aid for Research and Development 106 Notes 110 References 112 Chapter 4 Tools for Financially Sustainable Tertiary Education Policies 119 Improving the Management of Public Financing 120 Managing the Trends in Student Flows 131 Developing Distance Education 136 Mobilizing Private Resources 136 Streamlining Student Support Services 144 Promoting the Private Sector 147 Rethinking Research Funding 150 Combining Tools for Financially Sustainable Tertiary Education Policies 151 Notes 153 References 153 Chapter 5 Ensuring the Successful Implementation of Financing Reforms 157 Addressing the Political Feasibility of Reforms 158 Putting in Place Favorable Governance Arrangements 163 FHEA_i-xx.qxd 4/7/10 2:46 PM Page vii Contents vii Strengthening Planning and Management Capacity 166 Assessing Policy Options to Anticipate Possible Consequences 168 References 170 Boxes 3.1 Budget Allocation Practices in Mali 40 3.2 Line Item Budgeting in Uganda 43 3.3 Normative Input-based Budgeting in Nigeria 44 3.4 Formula Funding in South Africa 46 3.5 Research Funding in Nigeria 55 3.6 Research Funding for Agriculture 56 3.7 A Financial Revolution: Makerere University in Uganda 64 3.8 Tuition Fees in Public Higher Education Institutions in Benin 66 3.9 The Cost of Studies Abroad: The Case of Mauritius 73 3.10 The Nature of Direct and Indirect Aid to Higher Education 97 3.11 Building ICT Capacities in Africa 100 3.12 Support for Higher Education 101 3.13 How Many African Students Return to Their Country of Origin after Completing Their Studies? 105 3.14 The National Research Fund and Modalities of Funding in Mozambique 108 3.15 Methodological Note 109 4.1 Ghana Education Trust Fund 123 4.2 Emergency Universities Program in Côte d’Ivoire 124 4.3 Mozambique’s Competitive Fund for Tertiary Education 128 4.4 International Experience with Competitive Funds 129 4.5 A Plan for Streamlining Higher Education in Côte d’Ivoire 130 4.6 Selective Admission into Higher Education 134 4.7 A Distance Education Experiment 138 4.8 Phasing the Introduction of Cost Sharing: The Case of Tanzania 140 4.9 Some Rules for Avoiding Budget Overruns Resulting from Grants or Scholarships 145 FHEA_i-xx.qxd 4/7/10 2:46 PM Page viii viii Contents 4.10 An Alternative to Scholarships Abroad: Building and Offering Quality Local Education 146 4.11 Examples of the State’s Disengagement from Housing, Catering, and Other Nonacademic Services Provided to Students 148 4.12 Development of Private Higher Education in Some African Countries 149 5.1 Consensus Building and Cost Sharing in Northern Mexico 160 5.2 Autonomy and Excellence at Work: The National School of Business Administration 165 Figures 2.1 Share of Higher Education in Current Public Expenditure on Education in African Countries, 2006 (or Closest Year) 15 2.2 Public Expenditure on Higher Education and the Form of the Education Pyramid in African Countries, 2006 (or Closest Year) 16 2.3 Change in the Number of Higher Education Students and Expenditure on Higher Education in Two Groups of African Countries, 1991–2006 18 2.4 Ratio between the Change in the Number of Higher Education Students and the Amount of Public Resources Allocated to Current Expenditure on Higher Education in African Countries, 1991–2006 19 2.5 Annual Current Public Expenditure per Student in African Countries, 2006 (or Closest Year) 23 2.6 Public Expenditure per Student and Ratio of the Number of Students to the Current Level of Public Expenditure on Higher Education in Select African Countries, 2006 24 2.7 Student-Teacher Ratio in Higher Education in Select African Countries, Public and Private Sectors Combined, 2006 (or Closest Year) 25 2.8 Change in the Number of Higher Education Students in Africa, 1982–2006 and Projected through 2015 28 2.9 Number of Students Expected in 2015 in African Countries on the Basis of Current Trends in Higher Education Growth 29 FHEA_i-xx.qxd 4/7/10 2:46 PM Page ix Contents ix 2.10 Current Expenditure on Higher Education and Public Expenditure Required to Expand Higher Education in Africa at Current Rates and Unit Costs, 2004–15 31 3.1 Share of Households in National Expenditure on Higher Education in Select African Countries, 2004 (or Closest Year) 57 3.2 Average Share of Households in National Expenditure on Education in 18 African Countries, by Level of Instruction, 2004 (or Closest Year) 58 3.3 Breakdown of Current Public Expenditure on Higher Education in Select African Countries 70 3.4 Trade-off between Social and Wage Expenditure within the Public Higher Education Budget in Select African Countries 71 3.5 Proportion of African Students Enrolled in Private Institutions, 35 Countries, 2006 (or Closest Year) 75 3.6 Distribution of Aid to Higher Education, by Region, 2002–06 Average (Commitments) 95 3.7 Aid to Education in Sub-Saharan Africa, by Level of Education, 2002–06 Average 96 3.8 Total Aid to Africa for Higher Education, Commitments, 2002–06 97 3.9 Direct Aid to Higher Education in Select African Countries, Annual Average Commitments, 2001–06 98 3.10 Direct Aid to Higher Education per Student in Select African Countries, Annual Average Commitments, 2001–06 99 3.11 Assistance from the Partnership for Higher Education in Africa, 2000–08 106 4.1 Estimated Number of Higher Education Students in Mali, Assuming Current Trends and Regulations in Secondary Education, 2005–16 133 4.2 Number of Students as a Function of Length of Studies 135 4.3 Estimated Number of Higher Education Students in Mali, Assuming Current Trends and Various Flow Management Measures, 2005–16 137 4.4 Number of Foreign Students Studying in Morocco and Number of Moroccan Students Studying Abroad, 2003–06 146 FHEA_i-xx.qxd 4/7/10 2:46 PM Page x xContents Tables 2.1 Public Expenditure on Higher Education as a Percentage of GDP, by Country Group, 1990 and 2006 14 2.2 Share of Higher Education in Current Public Expenditure on Education, by Country Group, 1990 and 2006 14 2.3 Ratio between the Increase in the Number of Higher Education Students and the Increase in Public Resources Allocated to Current Expenditure
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