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From the Vice-Chancellor: Funding challenges in education

Vice-Chancellor

I recently had the opportunity to spend some time in Asia and the United States of America, culminating in a meeting of the International Association of University Presidents in New York. It caused me to reflect on the similarities and differences between universities around the world.

American universities include some magnificent institutions with a historical reliance on philanthropy which, although flowing at a reduced level, is still breathtaking compared to what we see in Australia. The institutions range from community colleges to research universities and embrace both public and private institutions (profit and not for profit). What is evident, however, is that they are suffering the pressures of the Global Financial Crisis which has diminished their confidence and weakened their structures.

The story in Europe is not dissimilar, although without the great diversity of institutions. Universities are largely state funded and, as a consequence, in England and Wales we see them struggling with annual student fees now rising to as much as £9,000 ($14,300 AUD) amidst the prospect of entire universities failing.

In much of Asia, by contrast, we see enormous public funding being pumped into universities while private philanthropy continues to grow and indeed is being aggressively promoted by most governments. They display a genuine belief in the power and value of education as both a private and a public good. As a consequence the growth and development of institutions and the increasing level of participation is truly startling.

So where does Australia sit in all of this?

Participation rates have been comparatively low but the government is currently addressing this issue. Facilities are a bit run down and student services are stretched although there is genuine commitment to a student focussed education. Funding is very marginal and only viable because of large international student intakes. Interestingly, this may in itself be an incentive for governments to keep funding low so as not to risk the lucrative educational services export market.

What of our belief in education? Do we accept it to be a game changer and just how large a sacrifice would we make to see children educated?

From all of this some things are clear. Firstly, Asia is fast developing its university system and is relying on the universities to build their economies and to provide social benefits. Europe and the US are examples of how the relationship between the economy and education is two-way; with weakened economies resulting in weakened universities. Of more concern is the potential medium and long-term damage to those economies and to social well being.

In Australia, you get the impression we are still somewhat undecided, and I don't just mean the Government - I include the wider community. We seem to wonder whether we can get the benefits of higher education without paying the price. Or perhaps if we just wait, an easy solution will appear. Maybe we don't need to educate so many people or maybe education is just not that valuable.

My conclusion is simple. Education is valuable both in itself as a driver of social well being and as the major contributor to economic development. Let's take up the call for education and let's not just demand more but show a willingness to give more.

PROFESSOR JAMES A. McWHA
Vice-Chancellor and President