Financial Sustainable Development of Higher Education Institutions in Developing Countries

12012 Words Dec 29th, 2013 49 Pages
Research Topic: Financial Sustainable Development of Higher Education Institutions in Developing Countries

I. Introduction
Education is an economically and socially productive investment and in the majority of the both industrialised and developing countries, it is funded mainly by the government (Psacharopoulos, 1986). The expansion of education received by individuals depends both on their and governments’ fiscal resources (Barr, N., 2008). In recent years, however, the world financial-economic crises and adverse macroeconomic conditions have reduced most government’s ability to continue expanding quantity of educational institutions, improving quality of education and widening access, all subject to a fiscal constraint. At the same
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In most countries around the world, one of the principal challenges is the demand for higher education is growing far faster than the ability or willingness of countries to provide public resources that are adequate to meet this demand (Psacharopoulos, 1986). On the other hand, competing demands on public resources are growing more intense as governments around the world face challenges across the board in providing more and better public services, including health care, housing, transportation, agriculture and the full range of education (Salmi & Hauptman, 2006). In this context, higher education is often far from the highest priority for public funding in both industrial and developing countries.
Governments and institutions of higher education, in both industrialised and developing countries, have responded to the mismatch between available public resources and the growing demand for higher education in several broad ways. One related response has been to seek additional private resources through the commercialization of research, instruction and other private use of institutional facilities and staff (Sanyal & Johnstone, 2011). However, the most frequent response has been to mobilise more resources principally by introducing or increasing tuition and other fees as a way of rising cost sharing (Albrecht & Ziderman, 1995; Brown, 2001; and Johnstone, 2004). Perhaps less commonly found response as mentioned by Sam, M.

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