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

THE UNIVERSITY OF AARHUS

Lauritz B. Holm-Nielsen, RectorUlandslære, 7. marts, 2007

being in the bulls eye

Higher Education in Latin America

…is the playing field level



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



Economic and social developmentare increasingly driven by the advancement and application of

knowledgeEducation in general — and tertiary education and S&T in particular — are

fundamental to the construction of knowledge economies



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



Global trends



Composition of the global market for goods1980

Varios1%

Otros productos primarios

34%

Con base en

recursos11%

Baja tecnología

21%

Media tecnología

22%

Alta tecnología

11% 2000

Low technology

18%

Resource based11%

Other primary

products13%

Miscellaneous4%

Medium technology

32%

High technology

22%



Global innovation hubs

Source: Hillner (2000) and UNDP (2001)



Internet Hosts (pr 10,000 people, 2000)



Higher Education Enrollment Ratio



Internationalization of Higher Education



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



Key developments in tertiary education in Latin America



Returns by level of education Brazil (1982=100) Source: Blom; Holm-Nielsen and Verner (2001)

60

70

80

90

100

110

120

130

1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Tertiary Upper secondary Primary Lower secondary



Large increase in tertiary enrollment

0

10

20

30

40

50

60

OECDChil

e

Argen

tina

Urugua

yPeru

Colombia

Mex

ico

El Salv

ador

Brazil

Hondur

as

Ter

tiar

y gr

oss

enro

llm

ent r

ate

1965 1975 1985 1995 2000

Source: WDI 2003



Growth in private provision

Percent of total enrollment

Year 75%-40% 40%-30% 30%-20% 20%-10% Less than 10%

1985 BrazilColombiaDom. Republic

ChileEl SalvadorPeru

ArgentinaGuatemalaParaguay

Costa RicaEcuadorHondurasMexicoNicaraguaVenezuela

BoliviaPanamaUruguayCuba

2002* BrazilColombiaChileDom. RepublicEl SalvadorNicaraguaParaguayPeru

Venezuela

Costa RicaEcuadorArgentinaGuatemalaMexico

Honduras BoliviaPanamaUruguayCuba

Source: Schwartzman (2002); World Bank (2002c and 2003); Zúñiga (2003); OECD (2002a) and García Gaudilla (1998)



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



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

PrivateUniversities

PublicUniversities

Short CycleTertiary institutions

Private Sector

International networks

R&D Institutes

TertiaryEducation

System

Government,MINEDUC, etc.



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



Learning gap

Lack of cohesion

Skill level

Short cycle tertiary

education

Educational dead-end

Low qualitySecondary

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



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)



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

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q1/2 Q3 Q4 Q5



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



Inefficiency (Argentina)

High drop-out rates, repetition, low graduation and extended cycles

Few financial incentives to improve learning outcomes and efficiency

1,193,003

765.066

616.669

286,488

47.413

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.00019

82

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

1ó+ Materias Aprobadas en t-1

2ó+ Materias Aprobadasen t-1 (Regulares)

Egresados

Ingresantes declarados

Alumnos declarados



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



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

Professors with PhDs

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Source: Brunner (2002), World Bank (2002); UK Higher Education Statistics Agency Individualized Staff Record 2001/02; García Gaudilla (1998) and Schwartzman and Balbachevsky (1996)



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



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

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

Mexico Venezuela Brazil Argentina Colombia Chile Sw eden Australia Finland



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



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%

USAChil

e

Colom

bia

OECDBra

zil

Argen

tina

Mex

ico

% o

f G

DP

Public subsidies Private sources Total



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



Global market for advanced human capital



Foreign Studentsenrollment, source OECD 2003

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000



Share of foreign students in tertiary education in selected countries

0

2

4

6

8

10

12

14

16

18

Source: OECD. Table C3.1. Education at a glance 2006

%

Internationalisation (students)



Brain drain or brain circulation?



Effects of mobility among the highly educated

CHALLENGES POSSIBILITIES

SENDING COUNTRY

Brain drainWaste of public resourcesReduced growthLimited academic freedom

Money transfers, trade and investmentIncreases entrepreneurship and flow of knowledge Enlarges competency areas

RECIEVING COUNTRY

Unemployment among localsOccupies scarce educational resourcesesDecreases growth in salaries

Highly qualified labourDiversity in academiaBoost of research and developmentIncreased effectivity and revenuesCreates new jobs

Source: Anthony P. D’Costa, ”The International Mobility of Technical Talent” (2006)



Brain DrainSource: Wodon (2003)

0% 5% 10% 15% 20% 25% 30% 35% 40%

Brazil

Chile

South America

Central America

Secondary Tertiary



Country.shpNot available1 - 34 - 89 - 1920 - 83

Source: see Annex 1, Secretariat calculations based on Cohen and Soto (2001) for highly skilled stocks in countries of origin.

Map 1. Percentage of expatriates to OECD countries among all highly skilled born in the country

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



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



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



Goal: Increased mobility among students and researchers



Universities in the bulls eye

thanks for the [email protected]



The World Bank



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



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



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

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 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

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