State-Market Discourses and Higher Education Financing: Addressing Equity and Sustainability

• In Event: Sustainable financing for education: why should tax justice be part of the solution

Proposal

Abstract
The higher education institutions world over are facing a phase of transformation in the financing of higher education. With expansion of higher education and therefore rising student enrollments and aspirations, the higher education system is facing a transition world over in terms of a gradual decline in public funding for tertiary education as a percentage of GDP particularly in case of many less developed and developing countries. Compared to high income countries the expenditure on tertiary education as a percentage of GDP is less as well as more fluctuating in case of lower and middle income countries. Such decline in the one hand and rising cost of higher education on the other pressurizes higher education institutions to increase the tuition fee to compensate decline in government grants post adoption of Structural Adjustment policies (SAP). The arguments for higher education as a private good prevail upon the public good argument under such circumstances as a result of market interventions in higher education decision making.
The present paper based on an empirical study of selected higher education institutions (HEIs) from several provinces of India underpins the plea of a large number of provincial HEIs in the verge of deterioration struggling for funds and sustainability with the rapidly expanding higher education system. Both primary and secondary data are used for analysis. Secondary data is collected through published sources of finance section of the selected institutions and primary data collected through structured questionnaire prepared for the students. A sample of 1090 students is collected and analysed. Focused group discussions were also conducted with students of selected colleges.
Indian higher education system is experiencing a major overhaul in recent years in its education policies which has thrown new emerging challenges for the survival of existing HEIs. The policy changes are oriented towards building up Indian HEIs self-sustainable in terms of funding to enhance quality and excellence. It is argued that such transformations would bring some of Indian HEIs in the ambit of global ranking of HEIs. Though it is yet to access the implications of recent overhaul in higher education sector, rising student fees particularly through self-self-financing courses raises issues related to equity and affordability of higher education by students from deprived sections of population who would be deterred by the cost of higher education.
The future of higher education with the trend continuing seems to move towards privatization of state funded higher education institutions. This new trend will tilt the balance in favour of access to privileged sections and deprive the opportunities of higher education to the disadvantaged groups. This clearly sends a message to the policy makers to have more inclusive measures. If such measures are not taken the future of higher education may witness a halt in the growth of enrolment. The consequences may be far reaching as institutions will also face conflict and tensions in the campuses which are on rise already. The rationale of the result that follows from the paper is to alert the policy circles to have inclusive approach in public funded institutions which are on the course to privatization per force for sustainability due to decline in public funding.

Author

• Jinusha Panigrahi, Centre for Policy Research in Higher Education (CPRHE), India