Higher Educational Policy and its role in OECD countries -Comparative Analysis of financial perspective in Covid-19 economic uncertainty-

• In Event: Higher Education Policy and Finance

Proposal

1. Introduction
In 2020, financial situations and policies for higher educations had dramatically
changed to cope with the Covid-19 pandemic in the OECD countries. Central
governmental policy of each OECD nation is shifting their educational standard to
cover the gaps between the Covid-19 status qua and after Codid-19 economic
uncertainty rapidly.
Economic growth is expected to down to -2.9%:US, -4.7%:UK, -1.6: Japan, and
-5.9%: Euro area (Haver Analytics, % changes on previous year, The Economic
Intelligence Unit estimate 2020).

This research was based on higher educational policy analysis of OECD countries from the year
2010-2018 for the development of Human Capital. 2010 is a starting point of
EHEA (European Higher Education Area), and I had selected US, UK, Germany,
Norway and Japan as research core nations based on the theory that those higher
educational policies are extremely specific for Globalization and financial support is
categorized as public goods in the global market recently.
But, from early February in 2020, we are facing the Covod-19 pandemic situations
around the world severely. Each government have a problem of the lock-down of
national and local government activity and coping with the shutdown of higher
educational institutions even in primary and secondary education and proving for the
students and social benefiters by financing national budgets.
To examine the comparative study of each governmental educational policy to Covid-19
economic uncertainly from 2020 to expected recovery situations for the continuing
process of financial assistance to the Higher Education is my primary concern in the
equilibrium market mechanism.
The tuition, subsidiaries, and the free charges for those who suffered by the disadvantage
to keep on study at higher education are mainly examined by governmental policy.
Before Covid-19 pandemic circumstances, US and UK are exporting those sophisticated
higher educational tools for international students, so the number of international
students are tremendously high compare with other OECD countries. Germany and Japan
are second position for accepting students from foreign countries as exporting higher
education in the world.

2. Theoretical Analysis on Demand-Supply Research on Quantity and price of Education in Japan from 2019-2020 academic year

In fiscal year of 2019-2020 in Japan, under the Covid-19 economic uncertainty, Japanese
Government faced huge supplemental fiscal budgets and made incentive and effective
economic packages for Higher Educational Institutions and university students.
From late of January 2020, Japanese economy had faced severe damages and unexpected
economic prosperity and growth. Based on this situations, Japanese economy had an
unexpected experiences on huge Demand shortages on consuming on commodity goods,
transfers on plane, train and seas, people mobilities, productions on heavy goods, and
consumptions on educations.
Especially, in Higher Educations, Japanese university faced the sudden demand shortages
for supporting fees, tuition, and scholarship nation-wide.
So, the Japanese Government triggered stimulus packages for students and institutions by proving urgent scholarship, tuition, and admission fees exemptions for supporting the
declined demand of higher educational attendance.

National budgets for higher education students FY2020
(MEXT, Fiscal Budget Statistics, March 2020)
Total figures of Fiscal Budget for enrollment support for higher education is 582.251billion yen that increased 478.318 billion yen from FY2019.

3. Significant relevant contribution and remarks

In market theory, the equilibrium point (crossing-point) was decided by relations
between demand and supply of quantity of goods and price. We founf that Japanese university market has following drivers to intervene the demand-supply mechanism of higher education.

1.The Japanese Government financial support to the university higher institutions and
students are very tight on the capacity of quantity, so the supply curve is not flexible
to the change of subsidiary to the institution.
2.Supplier’s surplus is very vulnerable to government decision of subsidiary and the
shortages of tuitions and admission fees form the student based on the financial
conditions of households.
3.University institutions has very variety and unique tuition and exemptions systems for the contribution to keep the high price of education in the market.
4.Student’s surplus is influenced by the scholarship both government and university
institutions, his or her expected surplus is expanded based on the financial
conditions.
5.In the theory, expected student’s surplus is same as the supplier’s surplus in the market, his beneficial higher education is gained at low price.
6.In the equilibrium market which controlled by Japanese Government, the demand-supply curve was totally managed by the capacity control system and rather tight tuition system decided by the university, national university market system is systematically supported by center-controlled educational policy.
7.The educational policy is decided by the ministry of education, sport, and culture (MEXT), and controlled by central.

3.1 Related remarks on Higher Education Policy; US , UK, Germany and Norway in OECD.

US has very sophisticated higher educational system in State, public, and private
level. Higher Education is one of large exporting industries in the US., so Government
had a large amount of financial support to Universities though NSF and several
departments of US.

UK, Germany, and Norway are introducing Bologna Process for keeping Higher education qualified. Based on this, we have approached to the comparison of financial support system and globalization as accepting the large number of international students. And higher standard of H.E is the core in the global market, central governments are seeking European Higher Educational Area as huge trading area.

Author

• Masaru Fujikawa, Kagawa University