A policy paper published today reveals the growth in the number of private universities operating worldwide.
The paper, written for Universities UK by Professor Roger King, reveals that, today, more than one in three students globally is studying in the private sector.
The paper’s main findings include:
• Public funds are often the indirect source of the for-profit providers’ income
• Some of the larger US companies are looking for markets abroad
• Only in western Europe does the public sector remain relatively unchallenged
• Public providers may get caught in the middle, trying to compete on costs while maintaining, or even raising, standards
• The reach of government regulation of higher education is critical in determining the rate of growth of private provision
Professor King, the paper’s author, said: “The paper highlights the importance of both public regulation and public funding in facilitating the growth of private higher education, not least through legitimising it as an activity and in ensuring quality and broader customer assurance.
“Governmental funding, however, tends to be provided to assist student loans and grants (and thus the payment of fees and other expenses) rather than through direct operational grant provision. With increasing curbs on public expenditure around the world and the rise of student fee/student debt financing regimes in higher education, we may expect private higher education, not least the for-profit variety, to continue to expand.”
Professor Rick Trainor, President of Universities UK, said: “This discussion paper is useful for UK universities as they consider future trends and opportunities for the higher education sector. The report should help UK universities to continue to compete effectively with private providers in those areas in which these two types of institution have overlapping provision.
“There has been a real growth in private higher education around the globe over the last decade and it is something we must be aware of in the UK. It has implications for public providers in terms of how public funds are spent and also from a regulatory and quality assurance perspective.”
ENDS
Notes
1. The paper, entitled Private Universities and public funding: models and business plans, is available to download from the Universities UK website at: www.universitiesuk.ac.uk/Publications/Documents/Policy_Commentary1.pdf
For further information, contact the Universities UK press office on: 020 7419 5407 or pressunit@universitiesuk.ac.uk
2. This new series of policy commentaries published by Universities UK will provide an opportunity for invited authors to analyse and discuss major higher education policy issues, with an emphasis on future trends and opportunities. The views expressed in these publications are those of the individual authors and do not necessarily represent the views of Universities UK.
3. This paper has been prepared by Roger King, Visiting Professor, Centre for Higher Education Research and Information, the Open University; Research Associate, Centre for the Analysis of Risk and Regulation, London School of Economics and Political Science. He was formerly Vice-Chancellor of the University of Lincolnshire & Humberside (now the University of Lincoln).