/SELM2_wk3_Helal

Dr. Hany Helal Minister of Higher Education and Scientific Research

- There is massive expansion of higher education in all -

-

countries No corresponding expansion of government finance Emergence of the concept of Cost-sharing Cost-sharing makes people ask for “Value for Money�

The GATS makes higher education a tradable commodity with a market pricing function.

Financing Higher Education in Egypt; a Perspective Total number of students enrolled = 2.5 million

Number of universities : Public 19 + Al- Azhar University Private 19 Technical Colleges 4 ( are being restructured) Higher Institutions 86

Government Allocations (2010/2011) for state H.E.I’s = L.E. billion 11.1

Financing Higher Education in Egypt; a Perspective continued Average current education cost per student: Medicine L.E. 26,000 Engineering L.E. 16,000 Economics, Law L.E. 4800

Public and Private finance of higher education in The (OECD) Countries:

Country Australia (Since 2000)

Germany Brazil Ireland Jordan India Indonesia

Government Tuition Other private financing* financing** 65% 30% 5%

97% 43% 64% 46.5% 78% 60%

*Government finance including Federal and State financing ** including student loans, ROI, and self-generating revenue

3% 30% ?

28% 10.5% 40%

27% 36% 25.5% 11.5%

Case of EGYPT Type of Institution

Public Higher Education Institutions (Free Education) Private Higher Education Institutions (private Funding) Public Institutions’ Special Programs (Cost - Sharing )

Government Tuition Funding And Fees 97% 3%

------

50%

Remarks No Tuition , Fees Only

100%

50 e.g. Programs in special Languages

Public Expenditures on Higher Education Source: Ministry of Higher Education, Master plan for Higher Education in Egypt (2007-2022), 2007, p.26.

Years

HE Expenditures as % of GDP

2002

1.43

2003

1.35

2004

1.33

2005

1.26

2006

1.26

2007

1.24

Financing Higher Education in Egypt; a Perspective: continued Funding for Higher Education Enhancement Projects: 1st phase 2003-2008 = L.E. Million 700 2nd phase 2009-2012 = L.E. Million 1300 ( For CIQAP and Technical Institutions)

All Financed By the Egyptian government

Financing Higher Education in Egypt; a Perspective: continued Challenges in financing Higher education in Egypt: Funds estimated for the implementation of the HE’s Strategic plan:

2011-2017 ~ L.E. billion 100 state funding 45 private funding

2.Constraints on securing funds: Education is free by constitution Student Loans need change of culture Private business sector is still new and not assuming the alleged role in financing education Endowments are usually directed toward religious purposes

Financing Higher Education in Egypt; a Perspective: continued

Efforts made in financing Higher education in Egypt: 1) Introducing optional additional new paid education programs 2) Attracting expatriates from the region for higher education in

Egypt 3) Building new international Joint universities (e.g. E-JUST, and EIU) to educate for tuition 4) Contributions from The Business Sector and involving them in

Boards and counsels of Higher Education Institutions.

5) Receiving in-kind donations for different institutions 6) Cooperation with international donors through agreements 7) Using the PPP approach for expansions, constructions, and replacements

Financing Higher Education in Egypt; a Perspective: continued Ideas for more financing include: - Student Investment Bond - Student Bank - Voluntary donation for brother/sister admission in the

same school

Funding Formula for Public Higher Education Institutions ; Philosophy and Concepts  Enhance quality of teaching, research and related  

 



activities in each university.

Increase opportunities for all students for higher education.

Motivate competition for excellence in teaching and research HE institutions cooperation with business and community.

Efficiency in the use of public funding.

Stability in funding from year to year.

Models for funding formula: ď‚— Current Funding formula in Egypt is Per institution (As a Function of Faculty members and employees) ď‚— Target Funding Formula is based on Per

student in each field*

* Minimum budget for the institution

Proposed Areas of funding (Variables of the Formula):  Quality teaching fund

 Widening participation  Maintaining valuable properties and

equipment  Producing knowledge via HQ research  Interaction with community

Thank you for Listening