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Higher Education in Mauritius: an Analysis of Future Financial Sustainability

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Higher Education in Mauritius: an Analysis of Future Financial Sustainability HIGHER EDUCATION IN MAURITIUS: AN ANALYSIS OF FUTURE FINANCIAL SUSTAINABILITY PRAVEEN MOHADEB A thesis submitted in partial fulfilment of the requirements of Napier University for the degree of Doctor of Philosophy May 2003 DECLARATION This is to certify that the present study is based on my original work and my indebtedness to other works/publications has been duly acknowledged. I also certify that neither this thesis nor the original work therein has been previously submitted to Napier University or any other institution for a further degree. PRAVEEN MOHADEB May 2003 ACKNOWLEDGEMENTS I would be failing in my duty if I do not acknowledgewith gratitude the inspiration, guidance and assistancegiven to me by Professor John Adams in the conduct of this study. I have highly appreciated his advice and valuable guidance provided in scrutinising eachof the chaptersof this researchwork. I would also like to thank Napier University for offering me the scholarship for this PhD and hence the opportunity to carry out this research. I also acknowledgewith thanks the advice, support and encouragementprovided to me by Dr Narud Fowdar and Professor TR Morrison in the conduct of this research work. I am very grateful to my wife, Ri and my children, Varsha, Vaneena and Praveen JR for the love, sacrifices and continuous moral support they have given to me throughout the conduct of the study. My thanks also go to the Tertiary Education Commissionfor providing me with support to carry out this research work. Praveen Mohadeb, May 2003 11 ABSTRACT This research analyses the financial sustainability of the higher education system in Mauritius against a background of ever-rising demand. The purpose of the research is to identify an efficient and sustainable funding system for higher education. It explores alternative ways to mobilise additional funds to supplement government funding and the possibility of cost sharing among stakeholders. The methodology used includes a review and analysis of existing funding mechanisms; a comparative study with selected countries and a survey and interviews to determine the willingness and capacity of Mauritians to pay for higher education. The current target is that the enrolment rate will increase from the present level of 12% to 30% by 2010. With the present policy of government funding almost the totality of higher education the amount of funds allocated to higher education as a percentage of the total expenditure on education would have to increase from 15% to 46 %. As a percentage of GNP it will have to increase from 0.53% to 1.47%. It would be very difficult for the government to sustain such an increase and hence the financial sustainability of the system itself is open to question. The funding model developed from the research proposes that higher education is increasingly being regarded as a `private good' and full public funding can therefore no longer be the expected norm. The direct beneficiaries are gradually being called upon to pay in many countries for Higher Education. It is argued here that Mauritius will have no choice but to accept this new `paradigm' of HE funding. The share of contribution of the students, in terms of tuition fees, proposed in the model is based on the fact that Mauritians are already spending a substantial amount of their income on education in terms of private tuition at the pre higher education level and on the findings of the survey and interviews. The has been share of government funding arrived at after considering the share of government expenditure in selected comparator countries. With the proposed model the amount of funds to be allocated to higher education as a percentage of the total expenditure on education would increase from the present level of 15% to 25 % in 2010. As a percentage of GNP it will increase from 0.53% to 0.82%. Proposals are also made for a student loan scheme and a transparent method of resource allocation to the higher education institutions. 111 CONTENTS DECLARATION ii ACKNOWLEDGEMENTS ABSTRACT ix LIST OF CHARTS x LIST OF TABLES xii LIST OF ABBREVIATIONS CHAPTER 1: 1 INTRODUCTION .......................................... 1 Mauritius - The Country .................................................... 1 The ChallengesAhead ...................................................... 3 Rationale for Research the ................................................ 7 Research Questions Propositions and .................................. 8 Objectives Aims Research and of the ................................... 9 ResearchMethods ........................................................ 10 Survey ........................................................................... 10 Interviews ..................................................................... 11 Analysis of Findings and Development of RelevantModels... 11 ExpectedOutcomes the Research of ................................... 11 Structure the Thesis of ...................................................... 13 Summary ....................................................................... CHAPTER 2: HIGHER EDUCATION IN 15 MAURITIUS ............... 15 The History Education in Mauritius of ................................... 16 An Analysis of the Present Education System in Mauritius........ 20 The Flow of Students in the Mauritian Education System......... 22 Participation in Higher Education ........................................ 24 The University Mauritius of ................................................ iv The Mauritius Institute Education 25 of ..................................... The Mahatma Gandhi Institute 25 ............................................ The Mauritius College the Air 25 of .......................................... The Tertiary Education Commission 26 .................................... The Polytechnics 27 ............................................................. The Technical School ManagementTrust Fund (TSMTF)......... 27 The Industrial and Vocational Training Board (IVTB) 27 ............... The Private Institutions Distance Education 28 and ..................... The University the Indian Ocean (UIO) 28 of .............................. The University Technology, Mauritius 28 of ............................... The Funding Higher Education in Mauritius 29 of ........................ Financial Management in Higher Education Institutions in Mauritius 32 ................................................................... Summary 33 ....................................................................... CHAPTER 3: LITERATURE REVIEW: AN OVERVIEW OF FUNDING SCENARIOS ................................ 36 Introduction .................................................................... 36 Who Benefits from Higher Education? 37 ........................................ Funding Higher Education: An Overview .............................. 39 Buffer Organisations ......................................................... 44 Funding Mechanisms ....................................................... 44 Government Funding Mechanisms ........:............................. 46 Public Subsidiesto Households .......................................... 61 Private Funding 65 .......................................... ..................... Institutions Fund Generators as .......................................... 70 Non-traditional Sources Revenue of .................................... 72 The Mauritian Case .......................................................... 76 Summary ....................................................................... 81 V CHAPTER 4: COMPARATIVE ANALYSIS WITH SELECTED COUNTRIES 85 ............................................... Brief Description of the Higher Education Systems and Funding 87 Comparative Analysis 93 ....................................................... Competing Funding Models 101 ............................................... Summary 109 ....................................................................... CHAPTER 5: PRIVATE PARTICIPATION IN THE OF EDUCATION 110 FINANCING ........................ Who Should Participate in the Financing of Education in Mauritius? 111 ....................................................................................... Private Participation in Education in Mauritius 112 ...................... At What Level of Education is Private Participation most Warranted? 115 ....................................................................................... Summary 118 ....................................................................... CHAPTER 6: PROJECTED DEMAND, SUPPLY AND COST OF HIGHER EDUCATION IN MAURITIUS........ 121 The Demand for Higher Education 121 ................................. The Supply Higher Education 124 of .................................... Unit Cost 128 per student ........................................................... Projected Cost of Higher Education in Mauritius in 2010......... 129 Summary 133 .................................................................. CHAPTER 7: WILLINGNESS TO PAY FOR HIGHER EDUCATION IN MAURITIUS ........................... 136 The Survey 136 ..................................................................... vi Objectives of theSurvey 136 Sampling 137 ........................................................................ Data Collection 139 ............................................................... Data Coding Entry 139 and ...................................................... Survey Analysis 139 ..............................................................
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