Powerpoint on the Risks of HE Privatisation. Read accompanying speech at: http://anthonycamilleri.innovationpros.net/higher-education/financing/the-risks-of-privatisation-of-higher-education-2
1. Anthony F. Camilleri
SSU Higher Education Conference 2008
Rogaska Slatina, Slovenia 05th Dec 2008
2.
3. Privatisation of funding sources
Privatisation of higher education
institutions
4.
5. Target GDP spend on HE in Europe: 2% GDP
Current GDP spend on HE in Europe (2004):
1.3% GDP
Direct Public Funding on HE in Europe (2004):
0.95% GDP
GDP spend on HE in US (2004) 2.5% GDP
Direct Public Funding on HE in US (2004):
0.54% GDP
10. The EU Public financing model is producing
results
‘Cost-sharing’ on its own is by definition
inequitable
Systems to introduce equity in cost-sharing
models are difficult to implement
11. Private management is more effective
than public management
Privatisation leads to competition
Private sector is more user-oriented
12. Maintain the bottom line
Increase shareholder value
Improve market share
13. Legal standing
Its own assets
The capacity to contract
The ability to hire staff and set their pay
levels
The freedom to set budgets
The freedom to develop policies of every kind
Higher Aspirations: An agenda for reforming European Universities
Bruegel think-tank, 2008
14. Public Private
Stakeholder participation is Stakeholder participation
the rule common
Autonomy possible Autonomy is the rule
Shareholder interest is private
Shareholder interest is public
interest – which can
interest
potentially be private interest
15. Public Private
Lump funding discourages
Competition for funding, students
competition – formula funding
and staff is the rule
encourages it
Competition for prestige is Competition for prestige is
increasing increasing
Competition is accessory for survival
Competition is necessary for
but necessary for improvement – it
survival – it is an end in itself
is a means to an end
16. In a mixed system – how do you guarantee
public responsibility?
How do we prevent parasitic mission creep?
◦ Mission creep: the process of a university taking the
mission of another
What does this means for the definition of a
university?
What does this mean in terms of barriers to
the public sector?
Can a university be run purely as a profit-
making entity?