/SELM2_wk3_Conclusions

The difficult puzzle of the sustainable financing of higher education discussed at a Seminar hosted by the Marseille Centre for Mediterranean Integration (January 24-25) Higher education, worldwide, is faced with three main challenges: providing young people with the skills required by the job market, improving access to high quality services, and seeking out new sources of financing to cope with the growing student demand. Although most countries in the world are facing these issues, the problem is particularly acute in the Middle East and North Africa (MENA) region, where student numbers have risen dramatically in the past ten years -average enrolments climbed from 20 to 30 percent between 2000 and 2008.

In addition to the increasing stress on education quality, this rapid expansion has increased the pressure on already scarce public finances, especially in light of the global economic crisis. In relative terms, MENA countries dedicate on average more of their GDP to education than other developing countries at similar levels of per capita income. Yet, when taking per student expenditures into account, the education system in MENA appears underfunded. To give but one example, Egypt spends about 8 percent of its GDP on education (compared to 6 percent on average in OECD countries) and this represents only about 23 percent of GDP per student, taking into account purchasing power parity (compared to 36 percent on average in OECD countries and even 55 percent in lower middle income countries). Finally, in addition to the quantity of public spending, the quality of resource allocations can also be improved.

Seeking out alternative sources of financing – looking at solutions already implemented in other countries – could be an effective way to find better alternatives from an economic and social perspective. The Marseille Center for Mediterranean Integration (CMI) which aims to “be a platform for professionals to share the tools that they have” as Mats Karlsson, Director of the CMI, puts it, hosted a seminar on How to reach financial sustainability while providing high quality standards on January 24 and 25. The meeting gathered ministers, government officials and experts from MENA and beyond. The discussions focused on four key areas: (i) How to use resources more effectively; (ii) How to compensate for limited public resources; (iii) How to introduce more flexibility and diversity in higher education; and (iv) How to innovate and adapt in the context of technological change and the knowledge economy. Even though “there is no magic bullet” with “complex challenges requiring complex solutions” as stated by Mourad Ezzine, Education Sector Manager at the World Bank, this meeting was an opportunity for participants to share their knowledge, learn from their respective experiences, and discuss practices from around the globe.

The seminar provided material for the forthcoming joint World Bank - French Development Agency (AFD) report on identifying sustainable financing strategies for higher education in the MENA region. The document, which the team intends to publish in the second half of 2011, will combine a benchmarking exercise with a presentation of the policy tools available to increase and improve higher education financing. It will also present a series of policy recommendations and questions to further stimulate the ongoing debate among decision-makers.