Tertiary Education in Latin AmericaTertiary Education in Latin America
Norway-WB Seminar, Washington May 14, 2004
Lauritz B. [email protected]
Why should the Bank be Why should the Bank be involved in tertiary education?involved in tertiary education?
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
World Bank Education World Bank Education Portfolio in LACPortfolio in LAC
Strong focus on primary education
Sizeable commitments were made to tertiary education in FY98, FY99 and FY03
LCSHD Portfolio: FY98-03 Commitments
Source: World Bank 2004
Primary59%
Vocational2%
Secondary10%
S&T14%Tertiary
15%
Key developments that mark Key developments that mark tertiary education in Latin tertiary education in Latin
America….America….
Large increase in tertiary Large increase in tertiary enrollment in recent decadesenrollment in recent decades
0
10
20
30
40
50
60
OECDChil
e
Argenti
na
Urugua
yPeru
Colombia
Mex
ico
El Salv
ador
Brazil
Hondura
s
Terti
ary
gros
s enr
ollm
ent r
ate
1965 1975 1985 1995 2000Source: WDI 2003
Growth in private provision and Growth in private provision and non-university tertiary educationnon-university tertiary education
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 sector issues?What are the sector issues?
Inequitable participationInequitable participation
TE largely elitist with the majority of students coming from the wealthiest segments of society
Very inadequate student aid for poor students
Not enough TE in regions0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Brazil Mexico Colombia Chile Argentina Spain
Q1/2 Q3 Q4 Q5Source: World Bank (2002); Del Bello (2002) and Delannoy (2000)
WB responses:WB responses: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
Weak market for tertiary educationWeak market for tertiary education
High reliance on public subsidies and de facto state support of the affluent
The market for higher education is not sufficiently transparent
Investments in tertiary education, 1999
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
Chile
Colombia
Brazil
Argenti
na
Mexico
% o
f GD
P
Public subsidies Private sources TotalSource: OECD (2002) and World Bank (2002)
WB responses:WB responses:
Boost investments through additional private contributions (tuition coupled with sustainable student financial aid programs) while advising clients to use public resources strategically
Create a transparent market for tertiary education, e.g. by supporting accreditation and the collection of data on labor market outcomes
IneficiencyIneficiency
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
WB ResponsesWB Responses
Link public resource allocation with objective performance and outcome criteria throgh performance contacts and competitive funding
Consolidate monitoring and evaluation systems and ensure reliable statistical data
Learning gap
Lack of cohesionLack of cohesion
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
Skill level
Short cycle tertiary
education
Educational dead-end
Low qualitySecondary
University
WB responses:WB responses:
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)
Low quality and relevanceLow quality and relevance
Insufficient qualifications of university professors
Deteriorating physical facilities, lack of equipment, obsolete instruction material and outdated curricula
University graduates does not meet the skills needs in the economy
Professors with PhDs
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
UKBraz
ilChil
e
Argenti
na
LAC avera
ge
Venezu
ela
Mex
ico
Colombia
Source: Brunner (2002), World Bank (2002); UK Higher Education Statistics Agency Individualized Staff Record 2001/02; García Gaudilla (1998) and Schwartzman and Balbachevsky (1996)
WB responses:WB responses:Promote the use of quality assurance mechanisms
with external peer-reviewStrengthen graduate programs and in-service
training of university teachers, and establish financial and promotional incentives for teachers to perform
Upgrade teaching facilities, learning materials and research equipment
Develop competency-based curricula emphasizing ‘learning to learn’ methodologies
Weak national innovation systemsWeak 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
Degree of knowledge transfer between universities and industry
0
1
2
3
4
5
6
7
8
9
10
Finlan
dIsr
ael Chile
Colombia
Argenti
naBraz
il
Venez
uela
Mexico
Source: IMD World Competitiveness Yearbook 2003
WB responses:WB responses:Improve graduate education in areas of high
importance to national economies, and establish programs for the insertion of young researchers into industry
Strengthen linkages between universities and industry by promoting matching grant schemes and cooperative research, and provide incentives for universities to commercialize innovations
Promote the participation in international knowledge and research networks
Weak system and institutional Weak system and institutional managementmanagement
Weak university management structures
Insufficient capacity in ministries of education for sector oversight and strategy
Low access to relevant management information
Regionalgovernments
PrivateUniversities
PublicUniversities
RegionalTertiary institutions
Private Sector
International networks
ScienceAgency
TertiaryEducation
System
Ministry of Education,Science and Technology
WB responses:WB responses:Strengthen tertiary institutional management, e.g.
by introducing professional management, and broaden governance structures to include representatives of industry and civil society
Provide technical assistance to ministries of education to build adequate policy frameworks for tertiary education, strengthen long-term planning and support the adoption of a sector-wide approach to education
Build transparent management information systems in order to provide a solid basis for decision-making
Operations in tertiary Operations in tertiary educationeducation
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 related Operations in S&T related to tertiary educationto tertiary education
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 operations FY05-06New operations FY05-06
Mexico: Tertiary Education Student Assistance Project
Chile: Higher Education Finance and Curricula Reform APL
Mexico: Science, Technology and Innovation Project
Argentina: Higher Education Reform Project
Tak for invitationenTak for invitationen
Lauritz B. [email protected]
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