Higher Education Policy Note Pakistan An Assessment of the Medium-Term Development Framework Report No. 37247 Higher Education Policy Note Pakistan: An Assessment of the Medium-Term Development Framework June 28

Proposal # 8: Improving the Regulatory Environment for the Public HE Sector

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Proposal # 8: Improving the Regulatory Environment for the Public HE Sector

235 Increasing PPPs is not simply a matter of adjusting policies that directly affect the private sector. Linkages between the public and private sectors mean that policies affecting the public sector also have an impact on the private sector. A number of changes to policies affecting the public HE sector would improve the scope for PPPs. These include:

introduce greater performance accountability for academic staff at public HEIs, including the effective implementation of the ‘tenure track’ policy; and
reform governance arrangements at, and provide more management flexibility to, public HEIs so they can better organize themselves to meet the needs of the modern world.

236 An additional option that would improve efficiency and equity in public higher education would be to increase private responsibility for the costs of HE at public HEIs. This increased cost-sharing could be across the board or targeted at particular schools or programs that are deemed to be more market oriented (e.g., business, IT, engineering). Any increase in cost-sharing could be accompanied by the introduction of needs-based scholarships, to ensure that equity goals are met. Public HEIs do charge a nominal fee, although newer public HEIs do charge higher fees than more established public HEIs. In many cases, public institutions have moved toward charging fees for market oriented courses. For example, the Arid University charges higher fees in its IT and business schools.
237 Tuition fees already play an important role in financing HEIs. Institutions that wished to increase private responsibility for the costs of HE could be required to set aside a certain proportion of their revenue to offer needs-based scholarships to ensure equity outcomes. The HEC could introduce a system of (limited) matching grants to encourage HEIs to increase private revenues. This would provide both HEIs and students with some assurance that fee revenue represented additional revenues above government funding.
238 There is a range of possible ways of introducing cost-sharing in the higher education sector – some more limited in scope and controversy. These include the introduction of small ‘earmarked’ fees for examinations or registration, the introduction of fees for only certain types of institutions or programs and the full introduction of tuition fees across the higher education sector (see Box 2).

Box 2: Approaches to cost-sharing in higher education
Type of Cost-sharing	Examples
Small earmarked fees (eg. registration, examinations).	India, Egypt, most African countries
The ‘freezing’ (lessening of the ‘real’ value) of student grants.	USA, Russia, other post Communist countries, most African countries
The cutting or elimination of some student support grants.	UK, New Zealand, most African countries
The encouragement and even revenue support of tuition dependent private sector.	Philippines, Japan, Korea, New Zealand, Brasil, Russia Kenya, Tanzania, Uganda, Ghana
The introduction of fees for lodging and food.	Most OECD countries, China, Vietnam, Mongolia, most African countries
The introduction of tuition only for students not admitted to ‘free’ slots: dual or parallel track.	Russia, Czech Republic, Poland, Hungary, Kenya, Tanzania, Uganda, Ethiopia
The introduction of tuition only for certain public institutions or programs.	Mexico, Nigeria
The introduction of tuition in the form mainly of deferred contributions	Australia New Zealand, Philippines, UK, Scotland, Scotland, Wales
The introduction of “up front” tuition fees at all public institutions	Britain, Netherlands, Austria, China, Mongolia, New Zealand, Vietnam, South Africa, Mozambique
Enhancing recovery on student loans	South Africa, Ghana
Large increases (beyond the rate of unit cost increases) in tuition: increase in percentage of costs recovered.	USA
Source: Johnstone, D Bruce (2003.) Higher Education Finance and Accessibility: Tuition Fees and Student Loans in Sub Saharan Africa, p. 5.

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