Financing Quality Higher Education: Cross-National Analysis of the Financial Sustainability of Higher Education Institutions in LMICs

Group Submission Type: Formal Panel Session

Proposal

Although literature has well established the key roles higher education institutions (HEIs) play in the development of human capital and economy across the world (Altbach & Salmi, 2011; Bok, 2003; Etzkowitz et al., 2000; Gumport, 2000; Marginson, 2016), much less is known about the financial sustainability of HEIs that enables HEIs to be able to play these roles, especially in the context of low- and middle-income countries (LMICs). Financial sustainability of HEIs refers to a university’s ability to maintain its financial capacity “to produce desired outcomes over time” (USAID 2021, 146) and it is directly linked to the performance of HEIs in their ability to provide quality education and to grow. However, many HEIs in LMICs struggle to maintain quality of education due to a variety of factors, including a rapidly growing demand and insufficient budgets in a context of structurally under-financed higher education sectors (Jalmi, 2017). Moreover, the financial sustainability of HEIs is also linked to HEIs’ ability to address access issues for marginalized and underrepresented groups, who often face monetary barriers especially in LMIC contexts, highlighting the importance of financial sustainability to a more inclusive higher education.

As part of the USAID-funded Supporting Holistic and Actionable Research in Education (SHARE) activity in LMICs, the Higher Education Institutions Generating Holistic and Transformative Solutions (HEIGHTS) – Financial Sustainability (FS) multi-country research study aims to address this knowledge gap by producing empirical evidence on various factors related to the financial sustainability of HEIs in three LMICs: Indonesia, Kenya, and the Philippines. Specifically, each of the three country-specific studies analyzes HEI financial mechanisms, operations, and strategies by situating HEI financing within the larger enabling environment of policy, regulation, and funding. The three main types of HEIs included in the samples for the study are public, private, and Technical and Vocational Education and Training (TVET) institutions. The FS multi-country study utilizes a mixed-methods approach to analyze both primary and secondary data (e.g., Key Informant Interviews with relevant stakeholders, HEIs’ audited financial statements, surveys, etc.) to generate cross-national evidence on the financing models and operations of HEIs as well as their risk management strategies employed to strengthen their financial sustainability in the three countries. It also provides an analysis of the ways in which governments and HEIs mobilize public and private resources. The findings from this study inform evidence-based strategies for sustainably improving the financing of HEIs in LMICs.

This panel will provide an overview of the HEIGHTS-FS multi-country study and present findings from each of the three country-specific studies. In short, the panel will present 1) an overview of the HEIGHTS-FS multi-country study and a synthesis of cross-national findings and 2) country-specific findings within each country’s political economy, highlighting parallels or contrasts between public, private, and technical-vocational HEIs. The panel will present recommendations for next steps in improving the financial sustainability of HEIs and implications for policy and practice in each of the three countries and LMICs more broadly.

Sub Unit

• Higher Education SIG

Chair

• HyoJung Jang, University of Notre Dame

Individual Presentations

• HEIGHTS multi-country study on financial sustainability of HEIs in LMICs - HyoJung Jang, University of Notre Dame

• Financial Sustainability of HEIs: Evidence from Indonesia - Ahmad Gamal, Smart City Universitas Indonesia

• Financial Sustainability of HEIs: Evidence from Kenya - Peterson Obara Magutu, University of Nairobi