Public Money for Private Higher Education

Abstract

by European Commission President Barroso, " Europe's eco-nomic future depends on having the most highly educated and trained people, with the full range of skills and the adaptabili-ty required in a 'knowledge economy.' That is why we must boost investment in higher education significantly. The com-mission is suggesting a target [investment for higher educa-tion] of 2 percent of gross domestic product by 2010. " P ublic money for private higher education is a major policy issue for governments, the general public, and of course private institutions—all the more so as the private sector has risen to roughly 30 percent of total global enrollment and is continuing to grow. Yet, a key baseline is the fact that public funding of private higher education is the exception, not the rule. This reality is often obscured by contrary examples that lead to the absurd notion that source of income does not seri-ously distinguish the two sectors of higher education. In fact, just as public higher education is overwhelmingly sustained by public money, private higher education is just as overwhelm-ingly sustained by private money. This generalization is partic-ularly strong in the developing world and the postcommunist world—the two greatest sites of private higher education expansion. Nonetheless, examples of public money for private higher education are significant and increasing. Full-Blown National Cases Probably the most-cited cases where private higher education depends on public funding, to almost the same extent as pub-lic higher education does, are found in Belgium and the Netherlands. The roots lie early in the last century, with the idea that religious and cultural groups could have their own private universities, and since all groups hold that same right the public would legitimately fund all institutions. This is