Financing Higher Education in the 21st Century

Introduction

An important aspect that must be taken into account to speak of higher education related to the development of nations, is that development must be seen in an integral way, it cannot be valued only from the economic aspect, but from the social point of view, cultural, environmental, etc.

The general statistics on education at all levels presented by UNESCO, ranging from primary to university education, are quite worrying, especially those of the underdeveloped countries. As much as the need for a dignified and cultured life for all human beings on earth is written and raised by some international organizations, it is still not possible to reach even remotely what it aspires to achieve.

The second objective of the millennium, which is to achieve universal education, will not be achieved as long as the national states do nothing about increasing the Human Development Index (HDI).

Precisely the objective of this work is to make an analysis of how higher education is behaving in the world and its implication in the development of the countries. It must be clear that one cannot speak of higher education without taking into account a good base of primary, secondary and pre-university education.

It is necessary to adjust a new program of education, which begins in the school of first letters and ends in a brilliant, useful university, in accordance with the times, state and aspirations of the countries in which it teaches »José Martí

There are three types of education: formal, non-formal and informal. Formal Education is the learning normally offered in areas of schools, institutes, universities, modules, that is, an education or training center, with a structured nature (according to didactic objectives, duration or support) and which concludes with a certification. It is intentional from the student's perspective. Knowledge and job qualifications are generally acquired through this education.

The formal education is divided into:

Infant education

Primary education

Secondary education

Higher education

Informal Education is the learning that is received fundamentally in the social spheres, since it is the education that is acquired progressively throughout life. It is obtained in activities related to work, family or leisure. It is not structured (in teaching objectives, duration or support) and does not normally lead to certification. Informal learning can be intentional but, in most cases, it is not (it is accidental or random). A certain number of skills, both personal and social, are acquired through this education.

While Non-Formal Education is not offered by an education or training center and does not normally lead to certification. Refers to courses, academies, and institutions, which are not governed by a particular study curriculum. However, it is structured (in teaching objectives, duration or support). This learning is intentional from the student's perspective. It makes it possible to acquire an aptitude for living and attitudes based on an integral system of values.

Public Education is part of the educational system of each country. In general, it includes the planning, supervision and direct execution of school education at various academic levels, considering them compulsory according to the existing legal norm. Primary education is the most used in this category. Regularly the public education is in charge of the government, which provides the physical plant, teacher and didactic materials, for the realization of the studies. For this reason, there are public administration entities in charge of this issue. The objective of public education is the accessibility of the entire population to education, and to generate desirable levels of instruction. This model offers the advantage of fulfilling the right of every man to education in each country.

While Private Education is taught by private individuals or entities. It does not depend on an organ of the public power, even if it receives financial aid from it. It operates under the authority of a non-governmental body or entity. It meets the needs of the highest income sectors. In some countries, Higher Education shows the opposite trend, since many private universities offer cheaper services, but do not guarantee quality. Some disadvantages that this model usually shows is the fact of wanting to obtain a higher income at low costs, which can result in poor service (at the teaching level and even work teams), not to mention that not all enrollments are always accessible to Great part of the population.

Education constitutes a key factor in the economic development of the countries, since it contributes to the increase in labor productivity and therefore to economic growth, primary education is the basis of the subsequent knowledge of the individual in his adult stage, hence the importance of the first stage of life.

Investing in scientific infrastructure and human resources are the two primary steps to obtain optimal results in society. Lack of attention to the latter aspect manifests itself in developing countries, where scarce public resources are spent on investment for professional preparation.

An example of the above is what happens with public universities in Latin America, which few of these institutions are of high international level.

Financing education is a social sacrifice that has to be done in the most rational way possible and according to needs. For there to be education, money is needed, which is obtained from work, so it does not cost all families the same. This results in inequality of educational opportunities.

Education expenses depend on:

a) The economic growth rate b) The% of income and resources allocated to education c) The costs of education per student d) In underdeveloped countries, they also depend on the volume of educational assistance received from external sources e) The priority given to education by both the population and the country's leaders.

The profitability of education is a productive system that produces academic degrees and trains the population, in addition to other services. The work factor is made up of 4 groups: teachers, students, administrators and researchers.

Thus in the education sector there is a supply and a demand. In the offer it is necessary to distinguish:

Global offer (number of degrees that a system can produce according to the number of places), Real offer (number of degrees that it could give in a specific year, according to the number of occupied places) Effective offer (number of degrees that are actually produced, according to the number of students who have passed).

In the demand there are:

Global demand (needs and desires of the population regarding education), Real demand (number of individuals in school), Effective demand (number of students who obtain degrees).

There are differences between the education sector and other public sectors, since it must be borne in mind that education resources are acquired in the market and are publicly financed. In the case of private education, it is sold in the market according to the law of supply and demand. But public education is a public service and is not subject to the law of supply and demand. Its production cycle is longer, consuming part of its own production. Public education is not exploited as a profit maximizer.

In the World Declaration on Higher Education in the XXI Century: Vision and Action, held on October 9, 1998, several very important aspects were raised, highlighting the missions and functions of higher education, which contains several articles.

The Article 14 entitled Financing of higher education as a public service, states that funding of higher education requires both public and private resources. The State maintains an essential function in this financing. It also argues that public support for higher education and research remains essential to ensure that educational and social missions are carried out in a balanced way.

In subsection b of that article, it states that society as a whole should support education at all levels, including higher education, given the role it plays in promoting sustainable economic, social and cultural development. Mobilization for this purpose depends on the awareness and participation of the public, the public and private sectors of the economy, parliaments, the media, governmental and non-governmental organizations, students and establishments., families and all the social agents involved in higher education.

As is logical in underdeveloped countries there are more problems than in developed countries for financing education. Below are some fundamental problems in the financing of Higher Education in underdeveloped and developed countries:

Underdeveloped:

One of the fundamental factors in financing is the economic situation of the countries Lack of medium-term state policies for financing Higher Education, Science and Technology Public investment in education focuses primarily on primary and secondary education. Higher Education is not a priority in most governments given the need to invest public resources in priority social areas or more profitable in the short term. Society attributes little importance to Higher Education or perceives it as a matter of elites. economic poverty limits the State's collection capacity and a low purchasing power of the population that hinders the direct contribution of families in financing Higher Education.Lack of effectiveness and efficiency in the management of public resources allocated, lack of models for allocating resources, lack of transparency and control. Uncontrolled growth of private initiative in Higher Education, mostly of low quality and with real enrollment costs that make it difficult Access. The World Bank does not give sufficient priority to Higher Education as a resource for development. (Consideration imposed on the governments of developing regions as part of the Stabilization and Structural Adjustment Programs.) The World Bank and the International Monetary Fund do not sufficiently support the development of science and the training of professionals in poor countries that may stay in their countries of origin and contribute to their growth.Lack of resource allocation models, lack of transparency and control. Uncontrolled growth of private initiative in Higher Education, mostly of low quality and real enrollment costs that make access difficult. The World Bank does not give sufficient priority to Higher Education as a resource for development. (Consideration imposed on the governments of developing regions as part of the Stabilization and Structural Adjustment Programs.) The World Bank and the International Monetary Fund do not sufficiently support the development of science and the training of professionals in poor countries that may stay in their countries of origin and contribute to their growth.Lack of models for resource allocation, lack of transparency and control. Uncontrolled growth of private initiative in Higher Education, mostly of low quality and real enrollment costs that make access difficult. The World Bank does not give sufficient priority to Higher Education as a resource for development. (Consideration imposed on the governments of developing regions as part of the Stabilization and Structural Adjustment Programs.) The World Bank and the International Monetary Fund do not sufficiently support the development of science and the training of professionals in poor countries that may stay in their countries of origin and contribute to their growth.Uncontrolled growth of private initiative in Higher Education, mostly of low quality and with real enrollment costs that make access difficult. The World Bank does not give higher priority to Higher Education as a resource for development. (Consideration imposed on the governments of developing regions as part of the Stabilization and Structural Adjustment Programs.) The World Bank and the International Monetary Fund do not sufficiently support the development of science and the training of professionals in poor countries that may stay in their countries of origin and contribute to their growth.Uncontrolled growth of private initiative in Higher Education, mostly of low quality and with real enrollment costs that make access difficult. The World Bank does not give higher priority to Higher Education as a resource for development. (Consideration imposed on the governments of developing regions as part of the Stabilization and Structural Adjustment Programs.) The World Bank and the International Monetary Fund do not sufficiently support the development of science and the training of professionals in poor countries that may stay in their countries of origin and contribute to their growth.(Consideration imposed on the governments of developing regions as part of the Stabilization and Structural Adjustment Programs.) The World Bank and the International Monetary Fund do not sufficiently support the development of science and the training of professionals in poor countries that may stay in their countries of origin and contribute to their growth.(Consideration imposed on the governments of developing regions as part of the Stabilization and Structural Adjustment Programs.) The World Bank and the International Monetary Fund do not sufficiently support the development of science and the training of professionals in poor countries that may stay in their countries of origin and contribute to their growth.

Developed:

Existence of other political priorities, as there is little commitment from the authorities to education and research. Inadequacy of the responses of public systems to social needs. Little control and accountability of society's public systems. Limited autonomy of Public universities, which hinders the capacity for self-financing and the resources of the universities, which translates into excessive control by the authorities. Social reluctance to incorporate private sources to finance public higher education. Resources Publics cannot take on more investment without increasing tax systems.

To date and generally in the world, little has been done to finance Higher Education, since many governments have not been sufficiently aware of the importance of this. Today, education is more in danger than ever, since the impact of the international financial crisis has made itself felt very strongly in this area. Above all, the poorest countries in the world have suffered a serious deterioration in their education system in this regard.

Account must also be taken of the impact of slowing economic growth on education financing in the poorest developing countries. The education systems of many of the world's poorest countries are now suffering the consequences of a crisis that has arisen in the financial systems of developed countries, with a setback, due to the increase in poverty, the economic slowdown and the pressure that this exerts on government budgets.

Despite the fact that governments around the world constantly reiterate their commitment to equal educational opportunities, it is not carried out in reality. International human rights conventions compel them to act in accordance with that commitment.

According to the follow-up report "Education for All" in the world, it states that having the possibility of receiving a useful education is a fundamental right of every human being, and the offer of that possibility is an essential condition for progressing social justice. People who are left out of education face the prospect of seeing their chances of coping with life diminished in many other areas, for example in employment, health and participation in political processes that interest them. Furthermore, the limitation of opportunities in education is one of the most powerful factors for transmitting poverty from generation to generation.

A new instrument has been created in 2010 that provides an idea of marginalization within countries and of the social composition of marginalized groups. This instrument is called: Education Deprivation and Marginalization in Education (PEME). Despite the efforts made in the last decade, what is called the absolute shortage of education continues to be kept at an extraordinarily high level. For this reason, it is argued that at any global scale, the fact of having completed less than four years of studies - the minimum time to acquire the basic knowledge of reading, writing and elementary calculus - constitutes a sign of extreme disadvantage. The PEME data set defines this duration of studies as a benchmark indicator of "shortage of education" and the duration of studies of less than two years as an indicator of "extreme shortage of education".

The findings of a review of the situation in sixty-three developing countries show the following:

Education dearth. In twenty-two countries, 30% or more of young people aged seventeen to twenty-two have completed less than four years of study. This percentage rises to 50%, or more, in eleven countries in Sub-Saharan Africa.

Extreme dearth of education. In twenty-six countries 20% or more of young people aged 17-22 have been in school for less than two years, and in some countries such as Burkina Faso and Somalia that proportion is estimated at 50% or more.

The PEME dataset helps to identify not only the extreme shortage of education, but also some of the essential characteristics of those who are marginalized. Based on surveys, this data set is used to identify the quintile of the population of a country that has completed fewer years of school studies.

The results show the great influence that social circumstances have on life opportunities, circumstances over which children have no power. They also draw attention to the existence of unacceptable levels of inequality.

Inequality in the degree of wealth means that, when you are born into a poor family, the probability of being part of the 20% of the most disadvantaged in education is doubled in a whole series of countries, ranging from India to the Philippines, passing for Vietnam. The differences between regions mean, for example, that living in rural areas of Upper Egypt, Northern Cameroon or Western Turkey considerably increases the possibilities of being part of the 20% of the most disadvantaged in education.

Sex, poverty, language and culture often come together to dramatically increase the risk of being left far behind. In Turkey, 43% of Kurdish-language girls from the poorest families complete less than two years of schooling, while the national average of people who have only been in school for that time is 6%. In Nigeria, 97% of poor Hausa language girls complete less than two years of education.

In the European Union as a whole, 15% of young people aged 18 to 24 leave the classroom after having only completed secondary education. In Spain, that percentage rises to 30%. The income level of families has an important relationship with school achievement. In England (United Kingdom), students exempt from paying school lunches - an important indicator of social indigence - score on math tests, on average, 29% lower than the national average.

Final thoughts

Something that is directly proportional to the escape from poverty is support for the progress of education, but if governments do not support the development of education in their countries with their budgets, they will hardly be able to achieve sufficient economic growth and development, since technical and professional preparation is based on what the State has been able to invest in human resources so that in this way it reverts to the economy and society of each country.

It is suggested by some UN reports that the international community has not responded effectively to the problems presented by the poorest countries regarding Higher Education. Rich country governments and successive G-20 and G-8 summits have shifted immense financial resources to stabilize their banking systems, but have only provided very modest aid to the world's most vulnerable populations. Reporting has also exaggerated the amounts of international aid to low-income countries.

Rich countries have truly lacked the political will to implement a partnership that changes the world situation.

National budgets have a key role to play in trying to prevent financial crises from degenerating into a long-lasting human development crisis. As underdeveloped countries are most in need of development assistance, aid is urgently required to deal with the crisis and maintain their spending plans on higher education.

We must ensure greater access to Higher Education with equity, thus guaranteeing a better response to social needs. Higher Education must have public funds as the main source of financing.

Bibliography Consulted

Monitoring Report on Education for All in the World. UNESCO 2009 Monitoring Report on Education for All in the World. UNESCO 2010.CEPAL, United Nations: ¨ Higher Education and Economic Development in Latin America¨. Juan Carlos Moreno and Pablo Ruiz-Nápoles. United Nations publication, ISSN electronic version 1684-0364. Year 2009Education and Economic Development: The role of International Cooperation in the development of the Third World. Neira, Isabel, Faculty of Economics, University of Santiago de Compostela. (In Spain), Year 2000. Is the financing of Higher Education sustainable? Cristina Escrigas Páez. Global University Network for Innovation, Year 2009. Economy, Society and Education: Marcelo Fabián Vitarelli, EUMED.NET Group Editions Malaga-Spain, Year 2010

UNESCO (2004) "The universal conclusion of primary education in Latin America: Are we really that close ?, Regional Report on the Millennium Development Goals linked to Education. UNESCO (2005)" Links between the Global Initiatives in Education ".

Annexed