The Influence of Governmental Policies and Global Competition in the Diversification of Higher Education in Taiwan

Abstract

Diversity has been identified as one of the factors promoting the development of higher education system. The internal forces and external environments shape the horizontal and vertical diversity of the higher education system of each nation. The example of Taiwan is used to investigate the effects of government policies and global competition on diversity and diversification in the higher education system. In order to better understand the patterns of diversification of higher education in Taiwan, this chapter applies new institutional theory to form an analytical framework, considering institutions embedded in an open social environment, by which their structures and practices could be shaped and changed. In addition, two macro environmental perspectives were adopted to examine the changes involved in the diversification of higher education system, including governmental policies and global environment. A total of 164 higher educational institutes (HEIs) in Taiwan were investigated to determine the extent and dynamics of diversification of the higher education system. Results revealed that the local environmental factor of governmental policies changed the level of diversification, but the external pressure from global competition drove HEIs to pursue higher ranking and enhanced vertical stratification. During the diversification process, the Taiwanese government reduced control and empowered the HEIs to have more autonomy in administration and finance, and favored market-oriented changes. However, these changes were unable to lead to marketization. Challenges emerge in self-financing, market-led management, and reduction in state provision. Furthermore, the governance and diversification of higher education in Taiwan are unable to be fully explained by the triangle coordination of Clark (The higher education system. University of California Press, Los Angeles, CA, 1983). Public opinion as a fourth force is of increasing importance in the process.