OPEN SPACE 2: FINANCING HIGHER EDUCATION. Berlin, Expert Meeting, March Ulrich Jahn Dr. Detlef Hanne (KfW Development Bank)

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1 OPEN SPACE 2: FINANCING HIGHER EDUCATION Berlin, Expert Meeting, March 2017 Ulrich Jahn Dr. Detlef Hanne (KfW Development Bank)

2 Process OS 2: Introducing ourselves Basics Guiding Questions Discussion / Good Practices / Conclusions

3 Basics 1: Access KfW Development Bank 3

4 Basics 1: Participation Projected Demographic Development Source: Afrikas demografische Herausforderung, Berlin Institute for Population and Development (2011) KfW Development Bank 4

5 Gross Enrolment Ratio in Education 2014 Primary 2014 Secondary 2014 Tertiary 2007 Tertiary 2014 % increase Low-Income % Lower Middle Income % Upper Middle Income % High Income % Southern-Asia % Sub-Sahara Africa % Source: GEMR 2016, Statistic Tables, UIS KfW Development Bank 5

6 Number of Tertiary Students (in millions) 2000 % of total 2014 % of total World % % Low Income % % Lower Middle Income % % Upper Middle Income % % High Income % % Southern-Asia % % Sub-Sahara Africa % % Source: GEMR 2016, UNESCO Institute for Statistics (UIS) 2020: 20 Mio.?? KfW Development Bank 6

7 Basics 2: Institutions KfW Development Bank 7

8 Players in the HE System Ministry of Higher Education Political Stakeholders Public Universities Private Universities National Research Centers International Research Centers Students & student organisations Private Companies International Research Partners, e.g. Universities Colleges TVET / post-secondary Institutions Families, Civil Society KfW Development Bank 8

9 Basics 3: Costs and Finance KfW Development Bank 9

10 Comparison of cost and financing Individual Department: Germany/Kenya Investment cost (Building, equipment) In Mio. EUR / year Operation cost (Personnel, maintenance, running cost, consumables, training, research) Germany Kenya 25 Mio. EUR 15 Mio. EUR Core funding External funding Total funding (For 20 staff members, includingcore support) Source: Own investigation KfW Development Bank 10

11 Government Expenditure on tertiary education Note: On average, governments spend around 4-5% of their GDP for education and around 20% of their education budget for higher education Per student in 2013 ppp$ Per student as % of GDP per capita World 3, % Low-Income 1, % High Income 9, % Eastern + South-eastern Asia 8, % Southern-Asia 2, % Sub-Sahara Africa 1, % Source: GEMR 2016, Statistic Tables, UIS KfW Development Bank 11

12 Financing / Funding Public Budgets Other Sources General Funds Competitive Funds Other Funds Formula-based Performance-based Special Funds Review Systems (EU etc.) Contracts (Business, Industry) Fees, Levies Donations Foundations KfW Development Bank 12

13 Cost & Financing Projection by the International Education Commission Cost per student in 2014 US$ Hier Funding: soll public+ die Tabelle Lowcountries income countries income der income Prokopf-Kosten-Projektion Lower middle Upper aus househoulds+internat. der Studie der International Commission (G. Brown) stehen. middle countries Pre-Primary Primary Secondary Post-Secondary Average* *Averages unweighted across countries, but at student levels within countries Source: Education Commission costing model (2016) KfW Development Bank 13

14 Some General Conclusions OECD countries spend high percentage of public for higher education and research Sophisticated funding models in OECD countries Poor countries do not have sufficient funding and funding instruments to compete internationally The funding models of industrialized countries cannot be simply transferred to developing countries Challenge: Quality of education and research KfW Development Bank 14

15 Guiding Questions (1) 1. What are the characteristics of the current financial situation in higher education? 2. How do higher education finance systems face the challenge of balancing quality and access? KfW Development Bank 15

16 Guiding Questions (2) 3. How do we enhance equity (e.g. through demand side financing, like stipends and student loans)? 4. What experiences have been gained with different financial instruments (public/private/individual), national budget/international partners)? Additional: How do you see the chances of ICT to reduce costs and enhance access in higher education (e-learning, MOOCs etc.)? KfW Development Bank 16

Country profile Remuneration Greece

Support for continued data collection and analysis concerning mobility patterns and career paths of researchers Country profile Remuneration Greece 1 RESEARCHER REMUNERATION IN ACADEMIA 2 1.0 Introduction