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Linking Higher Education and Economic Development

Pundy Pillay · 2012

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About this book

Author
Pundy Pillay
Language
English
Published
2012
Length
46,262 words · about 3 h 14 min
Sections
8 reader sections
Text
Digital text
Rights
CC BY 4.0 · repository export licence (OAPEN)

 

Contents (8)

Continue:

Chapter 1: Synthesis

Synthesis of the Finland case study 3 Synthesis of the South Korea case study 10 Synthesis of the North Carolina case study 16 The role of higher education in economic development 21 Common threads and differences 25 Some possible implications for African countries 26

Chapter 2: Finland

Education and the economy 33 The higher education system 35 Research and development 38 The regional role of higher education 41 Higher education and the innovation system 43 Higher education-industry linkages 45 Higher education and quality 48 Higher education-labour market linkages 50 Financing higher education 51 Recent changes in the Finnish system 52

Concluding observations and implications for African countries 53

Chapter 3: North Carolina

The higher education system 55 The North Carolina Community College System 57 University-industry linkages: The case of NCSU 59 Identifying future challenges in higher education:

The UNC Tomorrow Commission 63 Concluding observations and implications for African countries 68

Chapter 4: South Korea

South Korean economic development 71 Education and economic development 73 Education financing 77 The higher education system 79 Higher education challenges 81 University-industry linkages 87 Concluding observations and implications for African countries 88 References 97 Appendix 1: List of interviewees 98

List of tables and boxes

TABLES Table 1:

Table 3: Table 4:

Table 5: Table 6:

BOXES Box 1:

Box 2: Box 3: Box 4: Box 5: Box 6:

Box 7: Box 8:

Some socio-economic indicators - Finland, South Korea and the Unired States (2006-2008)

Higher education and economic development in Finland, South Korea and North Carolina - common threads and differences

State R&D expenditure by institution type, Finland

Comparative GDP per capita: South Korea, sub-Saharan Africa, OECD (USD)

Gross enrolment ratios by gender, South Korea (2005)

Ratio of private to national/public institutions, South Korea (2005)

Enrolment ratio of private to national/public institutions, South Korea (2005)

Number of institutions and students by type of institution, South Korea (2004)

Types of collaboration between industry and academia in South Korea

Key implications for African countries

Nokia - a case study

The Finland experience: Possible implications for Africa

Major findings of the Tomorrow Commission

The North Carolina experience: Possible implications for Africa

Korea Research Institute for Vocational Education and Training (KRIVET)

Brain Korea 21

The South Korean experience: Possible implications for Africa

30 47 54 64 69

82 92 95 vi

List of acronyms and abbreviations

BK21 CESR CHET EUR GDP GNP HEMA HERANA ICT KAIST KEDI KRIVET MoE MoEE NCCCS NCRC NCSU NURI OECD PISA PRI POSTECH R&D SBTDC SCI Tekes TIMSS UNC UNCGA USD VTT

Brain Korea 21

Center for Efficient, Secure and Reliable Computing Centre for Higher Education Transformation

Euro

gross domestic product

gross national product

Higher Education Masters in Africa

Higher Education Research and Advocacy Network in Africa information and communication technology

Korea Advanced Institute of Science and Technology Korea Education Development Institute

Korea Research Institute for Vocational Education and Training Ministry of Education

Ministry of Employment and the Economy

North Carolina Community College System

Non-woven Cooperative Research Center

North Carolina State University

New University for Regional Innovation

Organisation for Economic Co-operation and Development Programme for International Student Assessment

public research institution

Pohang University of Science and Technology

research and development

Small Business Technology Development Centre (North Carolina) Science Citation Index

National Funding Agency (Finland)

Trends in International Mathematics and Science Study University of North Carolina

US dollars

Technical Research Centre of Finland

Preamble

The Higher Education Research and Advocacy Network in Africa (HERANA) was established in 2007. The Network is co-ordinated by the Centre for Higher Education Transformation in Cape Town, South Africa. Key partners include the University of the Western Cape (South Africa), Makerere University (Uganda) and the University of Oslo (Norway). The research component of HERANA is investigating the complex relationships between higher education and development in the African context, with a specific focus on economic development and democracy. A second research area is exploring the use of research in policy-making. Alongside the research component is an advocacy strategy that aims to disseminate the findings of the research projects, better co-ordinate existing sources of information on higher education in Africa, develop a media strategy, and put in place a policy dialogue series (via seminars and information technology) that facilitates interactions between researchers, institutional leaders and decision-makers. The capacity building component of HERANA is the Higher Education Masters in Africa (HEMA) Programme which is run jointly between the key partners. The main objective of the HEMA Programme is to contribute to the strengthening of higher education in Africa through building capacity with respect to expertise on African higher education.

The research and advocacy components of HERANA are funded by the Carnegie Corporation of New York, the Ford Foundation, the Rockefeller Foundation and the Kresge Foundation. The HEMA programme is funded by NOMA (Nordic Masters in Africa).

The project on which this book is based forms part of a broader study on Universities and Economic Development in Africa, the aims of which include the following:

e At the national level, to explore the relationship between economic policy and development, on the one hand, and higher education system development, on the other; and

e = At the institutional/project level, to understand the ways in which selected universities in Africa are responding to calls for a stronger engagement with the socio-economic development of their country and surrounding regions, with a specific emphasis on the role of the university in development, the strength of the academic core, and the institutionalisation of development projects.

The point of departure for the national component was to undertake a review of the international literature on the relationship between higher education and economic development, as well as in-depth case studies of three systems which have successfully linked their economic development and higher education policy and planning. The aim of these case studies would be to identify and distil the key characteristics of the ways in which higher education and economic development are linked in order to provide a framework for the collection and analysis of data in the eight African countries in the broader project (Botswana, Ghana, Kenya, Mauritius, Mozambique, South Africa, Tanzania and Uganda).

vii

Vlll LINKING HIGHER EDUCATION AND ECONOMIC DEVELOPMENT

The three successful systems selected for inclusion in the study were Finland, South Korea and the state of North Carolina in the United States. The rationale for this selection is outlined in the introduction to Chapter 1. The research team visited the three systems between March and September 2008 and conducted interviews with individuals from a wide range of higher education institutions and government agencies. (See Appendix 1 for the full list of interviewees.) Additional information was gleaned from institutional documents and other reports.

This book presents the findings of this project. In Chapter 1, the key findings from the three case studies are synthesised. The detailed individual case studies of the three systems are presented in Chapters 2, 3 and 4.

Acknowledgements

This study would not have been possible without the support and participation of the following organisations and individuals:

Funding The Carnegie Corporation of New York, the Ford Foundation, the Rockefeller Foundation and the Kresge Foundation.

Senior researchers Dr Pundy Pillay and Dr Nico Cloete (Centre for Higher Education Transformation, South Africa).

Researchers Dr James Nkata (Makerere University, Uganda) and Mr Romulo Pinheiro (University of Oslo, Norway).

Project manager Tracy Bailey (Centre for Higher Education Transformation, South Africa).

Interview respondents

Professors Seppo Hölttä and Timo Aarrevaara (University of Tampere); Dr Paulla Nybergh (Head of Innovation Division, Ministry of Employment and the Economy); Dr Rita Asplund (Research Director, The Research Institute of the Finnish Economy); Dr Antii Moisio, Ms Tanja Kirjavainen and Dr Roope Uusitalo (Government Institute for Economic Research); Mr Ossi Tuomi (Director of Development, University of Helsinki and former Secretary General, Finnish Higher Education Evaluation Council); Dr Esko-Olavi Sepphala (Secretary General, Ministry of Education, Science and Technology Policy Council); and, Professor Wim Naude (Senior Research Fellow, World Institute for Development Economics Research).

Dr Alan Mabe (Vice-President, Academic Planning and University-School Programmes, University of North Carolina System); Ms Willa Dickens (Vice-President, Economic Workforce Development, North Carolina Community College System); Dr James Zuiches (Vice-Chancellor, Office of Extension, Engagement and Economic Development, North Carolina State University); Professor Helen Ladd (Professor of Social Policy, Terry Sanford Public Policy Institute, Duke University); Professor Carol Kasworm (Head, Department of Adult and Higher Education, North Carolina State University); Professor Charles Clotfelter (Professor of Public Policy, Terry Sanford Institute, Duke University).

South Korea Dr Kang Byung-Woon (Director, Research Institute for Higher Education), Dr Dong Kwang Kim (Director, Department of External Relations) and Ms Sarah Han (Researcher,

Department of External Relations) at the Korean Council for University Education; Professor Se-Jung Oh (Dean, College of Natural Sciences), Professor Young Kuk (Vice- President, Research Affairs / Head, Industry-Academic Cooperation Foundation / Chief Executive Officer, SNU Industry Foundation), Professor Keouk (Korbil) Kim (Department of Education and Graduate Students) and Professor Suk Ho Chung (Director, School of Mechanical Engineering and Aerospace Engineering) at the Seoul National University; Dr Ji-Seong Ryu (Senior Research Fellow, Human Resources Management Department), Ms Wuran Kang (Chief Researcher, HRM Department) and Dr Hyungmin Jung (Research Fellow, Macroeconomics) at the Samsung Economic Research Institute; Professor Ju Ho Lee (Education and Labour Market Economist, KDI-School); Dr Mi-Sug Jin (Director, Department of Human Resources Research, Korea Research Institute for Vocational Education and Training); and, Dr Jung Yoon Choi (Korea Education Development Institute).

Critical readers

Professor David Dill and Dr Jim Sadler (University of North Carolina at Chapel Hill, United States), Dr Misug Jin (Korea Research Institute for Vocational Education and Training, South Korea) and Prof Timo Aarrevaara (University of Helsinki, Finland).

Chapter 1

This is a synthesis of the findings from three international case studies on the relationship between higher education and economic development. The three case studies are Finland, South Korea, and the state of North Carolina in the United States.

This sample of country case studies was chosen for several reasons. First, all of them reflect, to a greater or lesser degree, examples of well developed higher education systems comprising different types of institutions with varying impacts on development. Second, the higher education system in Finland and South Korea, but to a lesser extent in North Carolina, is characterised by high levels of participation — in fact, the highest in the world. Third, there is, in all three cases in higher education, evidence of a strong and close relationship between education and economic development in general, and higher education and economic development in particular. In all three systems a rethink of the major economic policies were accompanied by a deliberate attempt to link higher education to economic development.

Notwithstanding the fact that all three systems are located in the developed country Organisation for Economic Co-operation and Development (OECD) industrialised context, the purpose of this research has been to flesh out the common themes around higher education and economic development, and to distil possible implications for African policy-makers.

Table 1 provides some socio-economic indicators for Finland, South Korea and the United States. In this table, socio-economic data are shown for the United e r,

The purpose of this research has been to

States rather than for North Carolina because of th flesh out the common absence of comparable data for the latter. Howeve the United States figures may be an appropriate themes around

proxy for the state of North Carolina. North Carolina higher education and could at best be regarded as an ‘average’ state, and economic development, at worst just slightly below average. and to distil possible implications for African policy-makers ee | |NKNG HIGHER EDUCATION AND ECONOMIC DEVELOPMENT

Table 1 Some socio-economic indicators - Finland, South Korea and the United States (2006-2008)

Indicator Finland South Korea United States Population (m) 5 49 302 GDP per capita (USD) 44 400 19 690 46 040 Human Development Index

Index 0.952 0.921 0.951 Expenditure on education (% of GDP) 6.4 4.2 5.6 Participation rates (gross enrolment ratio) 88 85 83 Combined GER for primary, secondary, tertiary 101 96 93 Tertiary education expenditure as % of education budget 33 13 Not available InetitutionalitypoloEy E — almost e eal T colleges,

entirely public colleges — public and other colleges — (mainly) private public and private

GDP = gross domestic product; GER = gross enrolment ratio Sources: World Bank (2008); UNDP (2008)

A common thread that runs through all three case studies is the acceptance, at the present time, of the knowledge economy. In all three cases there has been a close link historically between developments in education and in the economy. In the case of Finland and South Korea, education planning, specifically higher education, has been closely linked to changes in the pattern of economic development, initially from the production of primary commodities, through dominance by the manufacturing sector, to the services sector and particularly today, the knowledge-based

economy. In North Carolina, on the other hand, little

formal state planning takes place either for economic A common thread

or educational development. Nevertheless, the close that runs through all linkages between the state education system, the three case studies is private sector and higher education institutions have

enabled the state to address the higher education the acceptance of the challenges of industrial transformation towards the knowledge economy knowledge economy.

The next three sections describe the higher education

systems and findings from the analysis of the case studies respectively in Finland, South Korea and North Carolina. The concluding section, has three parts: (a) findings relating specifically to the relationship between higher education and economic development; (b) a summary of the common features and differences in the three regions; and (c) possible implications for African countries.

CHAPTER 1 | SYNTHESIS: FINLAND mum

Synthesis of the Finland case study

Finland was chosen as a case study for this project for several reasons. First, it has a well-known reputation for having one of the best education systems in the world in terms of access and quality. Second, there is a very high participation rate in higher education. Third, there is substantial evidence of a close link between education and economic development. Fourth, the development of the higher education system has occurred in a political milieu in which equity in all its dimensions is regarded as being of paramount importance.

A feature of the education and economic systems in Finland is also the predominant role of the state, particularly with regard to education financing, planning in both sectors, and creating an environment in which all sectors (public, private and higher education institutions) can flourish in addressing the needs of the knowledge economy.

There are several features of the Finnish political economy that are crucial to an understanding of the relationship between higher education and economic development. Foremost amongst these factors is a long-standing and unshakeable commitment to equity in all its forms (gender, region, socio-economic status). Second, as a strong proponent of the Nordic welfare state model, the role of the Finnish government in higher education is all-embracing and reflected, inter alia, in the high levels of resourcing for the sector and in the commitment to both the education and research roles of higher education. Third, there is a strong commitment to consensus-building in general on the part of all the social partners (government, private business and civil society).

Education and the economy

Finland’s economy was dramatically diversified during the past two decades, especially in the period following the collapse of the Soviet Union, an event that triggered a severe economic crisis as a consequence of the close economic relationship between the two countries. In the face of this economic crisis, the government took two important policy decisions: first, to further develop the Nordic welfare model; and second, to invest substantially in the development of the knowledge economy. In line with this economic policy decision, the role of higher education assumed much greater importance in the 1990s.

The state’s investment in education generally, and in higher education in particular, is relatively high in both international and OECD terms. In addition, the state invests substantially in research and development (R&D) spending.

Finland’s national objective is ‘sustainable and balanced social and economic development’. High employment, productivity and competitiveness are key factors. A high-quality higher education system as well as measures to increase research and technological development play a significant part in attempts to attain the country’s national development goals.

The main characteristics of the higher education system include the following: a comprehensive, dual-sector comprising 20 universities and 29 polytechnics spread over the whole country; a high participation rate; and the public nature of the system including extensive state funding.

The dual structure has several special characteristics:

e The two higher education sub-sectors are fundamentally different. The polytechnics are seen as institutions which prepare their students for practical work, while the mission of universities is more academic and has a theoretical and research orientation.

e The degrees and degree programmes are different in polytechnics and universities.

The universities have a two-cycle degree structure (Bachelor-Master) while the

polytechnics have so far had only one level of degrees (Bachelor). A three-year pilot

of postgraduate polytechnic degrees was launched in 2002.

e The model of administration is different in the universities and the polytechnics.

The universities are maintained by the state, while the polytechnics are run by

municipalities, joint municipal bodies and foundations.

e The administrative structure and staff categories of universities are largely geared to support research, while polytechnics are mainly institutes of teaching, with fewer research-related tenures.

e The funding systems are geared to support the special mission of each sector. In universities, external funding is largely targeted toward research. At first, polytechnics obtained funds for the development of their basic operations and later for teaching and the regional service functions.

Research and development There are three prominent features in the R&D landscape:

e High levels of public and private spending

e Appropriate institutional arrangements for the distribution of resources, and for strategic policy development and coordination, and

e An overwhelming sense of collaboration between and consensus amongst the various stakeholders, including government, higher education institutions, public research institutes, public funding agencies, and the private business sector.

There is a strong emphasis on R&D and the universities, as well as the polytechnics to a lesser extent, have an important role in the R&D function.

In 2003, R&D expenditure was EUR5 billion, equivalent to 3.5% of GDP. Higher education sector expenditure (universities, polytechnics and university central hospitals) in this regard was EUR976 million, or about 19% of overall expenditure. The business sector accounted for 70% and the public sector (mainly state research institutes) 10%. At 1% of GDP, public R&D funding is amongst the highest in the world (the European Union's average is 0.77%).

CHAPTER 1 | SYNTHESIS: FINLAND mum

State R&D funding flows largely to the Ministry of Education (MoE) and the Ministry of Employment and the Economy (MoEE) after consensus on national priorities and direction has been reached in the Science and Technology Policy Council, which is chaired by the Prime Minister. Higher education institutions receive core research funding but may also access funds from the Academy of Finland (MoE) on a competitive basis for basic research, and from the National Funding Agency (Tekes) (MoEE) for technological research.

The regional role of higher education

An important feature of Finnish development is the commitment to equitable regional development policies to ensure balanced national development. Higher education was appropriately decentralised in line with the evolving politically decentralised framework comprising regional councils.

The higher education system of 20 universities and An important feature of 29 polytechnics covers the whole country. Higher Finnish development gaucanon has been developed as a aual system, is the commitment

in which each sector has a profile of its own. The t itabl , | universities are charged with academic research o equitable regiona and education based on it and the polytechnics with development policies to higher education geared to the world of work, and ensure balanced national R&D which serves education, the world of work and development regional development.

The university system grew into the present regionally comprehensive network during the 1960s and 1970s. The present 20 universities are based in 11 cities and towns, providing degree education in over 20 different localities. The aim of the regionally decentralised network is to make full use of the talent of the entire country and to produce a highly educated workforce for the needs of the growing public and business sectors.

In the 1980s, universities were increasingly seen as engines of regional development. This trend gained impetus from the improved possibilities for universities and the private sector to develop research cooperation. In the 1990s, the focus in university development was on quality. At that time the polytechnic system was also being created.

Polytechnic education is currently being developed in two dimensions: as a network of degree education and as a service network providing extension education (e.g. adult education) and other services. The aim is to build a network in which all the degree education units are large enough to provide high quality education and to conduct high quality R&D in support of their regions. The structure and provision of polytechnics will be developed to enable them to become key factors in their regions, supporting local municipalities, businesses and work communities, and catering for local residents’ selfdevelopment aspirations.

The activities of the decentralised higher education network are underpinned by the universities’ and polytechnics’ mutually complementary knowledge production, which in turn is based on their respective strengths. Collaboration and structural development promote the emergence of sufficiently large and diverse units needed to ensure the quality of education and research.

Higher education and the innovation system

The higher education system forms the basis for a regionally comprehensive innovation system. The system is being developed as an entity which is both internationally competitive and responsive to regional needs.

At present universities and polytechnics are seen to be key components in the national and regional innovation systems, in which they operate in close interaction with business and industry, and other regional players. As a result of the current technological advances and knowledge-intensive operations, economic and social development is increasingly built on human capital. This means that the higher education institutions have a growing role in producing new knowledge and diffusing knowledge and know-how in an increasingly globalised and knowledge-based economy.

The challenge for Finnish higher education institutions is to strike a balance between being Universities are internationally competitive in terms of teaching and responsible for scientific research, and being oie i the education and research and education. research needs of their local regions. :

Polytechnics conduct

In the division of labour between universities and R&D which caters for polytechnics in research, universities are responsible working-life needs,

for scientific research and education based on serves teaching,

it, including researcher training. Doctorates are supports industrial awarded only by universities. Polytechnics mainly life and regional conduct R&D which caters for working-life needs, ; serves teaching, supports industrial life and regional development, and IS A development, and is based on the industrial structure based on the industrial of the region. Universities also maintain most of structure of the region the scientific and research infrastructure, which is

funded through the university budget.

Key success factors in the development of the innovation system include the following:

e The high quality of education at all levels

e Economic factors, especially high economic growth and the commitment to a knowledge economy

e High commitment to public and private financing of R&D

e Excellent cooperation between public and private sectors, between government departments, between higher education institutions, and between higher education institutions and the private sector

e Incentives provided by Tekes, the national funding agency (e.g. providing matching grants to the private sector and insisting that university research must be relevant)

CHAPTER 1 | SYNTHESIS: FINLAND mum e Political consensus and citizens’ support for R&D, and e Mutual trust between science, technology and innovation players.

Higher education-industry linkages

Tekes funding has played a prominent role in promoting co-operation between higher education institutions and the private sector. Tekes aims to enhance the competitiveness of manufacturing and service industries by financing and activating product development and R&D projects conducted by companies and by universities, polytechnics and research institutes. Tekes has financed the development of the technological knowledge base of universities and polytechnics and their cooperation with business and industry.

The ‘Centres of Expertise’ programme administered by the Ministry of Interior encourages the regions to utilise their top expertise in order to strengthen the competitiveness of the region. There are 22 centres of expertise. The programme seeks to enhance the innovation environments in regions by improving cooperation between the research sector and local business and industry. The centres of expertise are mostly run by the local science/technology park. Technology/science parks also implement the TULI (from research to business) programme financed by Tekes, which seeks to identify researchbusiness ideas — especially in universities, polytechnics and research institutes — and offers expert services to research teams and researchers in commercialising ideas.

Universities and polytechnics offer several different support services relating to research and innovation. The most important services relate to the acquisition of R&D funding and contractual procedures. In addition, they offer careers and recruitment services to students and employers while some higher education institutions offer incubator services to students. Universities and polytechnics also offer different extension as well as piloting and testing services to business.

The Nokia experience, for example, shows how mutually beneficial the R&D experience has been to a range of actors including Nokia itself, other private sector companies and higher education institutions.

Higher education-labour market linkages In many respects the higher education system has met the labour market challenges with a high degree of success, especially in comparison with other OECD countries.

A distinguishing feature is the central role assigned to labour market demand in the allocation of resources Finland has a system for higher education. State-funded study places are the central resource allocated by most Ministries of Education, and in Finland these are primarily allocated of enrolment resource allocation that is not according to forecasts of labour market needs. These driven by student forecasts of labour market needs, adjusted to reflect demand, but according policy targets for the government, then become the to forecasts of labour basis for a national Development Plan, a document market demand that provides a five-year framework for education supply. The Development Plan provides the framework within which negotiations between the MoE and individual higher education institutions take place. Intake for each field of education is agreed between them, and contained in each institution’s performance agreement with the Ministry. Seen in this light, Finland has a system of enrolment resource allocation that is not driven by student demand, but according to forecasts of labour market demand.

Higher education graduates fare significantly better in labour markets than do those without tertiary qualifications. If one compares all higher education graduates to those with secondary qualifications, rates of unemployment are lower and wages higher. Polytechnic graduates occupy a middle position between secondary schooling and university graduates, both with respect to rates of unemployment and wages. And, among university graduates, the rate of unemployment diminishes, and wages increase as the level of qualification increases.

In many respects the system of higher education has connections to working life that are an international benchmark against which other systems might be judged. Those who complete a tertiary degree have high rates of employment, a significant wage premium, and private returns that compare favourably to those of graduates in other nations. This suggests that the relationship between the demand and supply of graduates is, on balance, holding up well.

Higher education and equity

The main goal of public policy has been to provide equal opportunities for students from different backgrounds (i.e. irrespective of socio-economic status, gender, place of residence). In the case of Finnish higher education, the government has sought to level out the field first and foremost by means of comprehensive basic education, but just as importantly by increasing study places in higher education with a view to equal opportunity in regional terms.

Probably the most important measure taken to promote equal opportunity has been the regional Probably the most expansion of the university sector. With regional important measure policy, efforts have been made to guarantee equal tak t t | opportunity for young people to participate in aken to promote equa university education, irrespective of their place of opportunity has been the

residence. regional expansion of the university sector

Equity has been an important factor in post-war

educational reform. The accessibility of higher

education has increased remarkably, mainly through gradual improvement of comprehensive

basic education, wide geographical distribution of university education, and strong expansion

of the polytechnic sector. One of the main arguments behind the expansion has been to

include new groups in higher education and to reduce inequalities in gender, place of

residence and social class.

CHAPTER 1 | SYNTHESIS: FINLAND

Financing higher education The role of the state in funding higher education is overwhelming. The following data reveal the extent of the state’s role in this regard:

e |n 2002 public expenditure on higher education, both on institutions and subsidies to households, comprised 2.1% of GDP, the fourth highest amongst 28 OECD countries for which data are available. Public expenditure on higher education grew 18% in real terms between 1999-2000 and 2004-2005, most of which was due to an expansion of enrolments (13%) and a modest share due to increased expenditures per student (4%).

e Finland is distinctive in its reliance on public financing for tertiary education. In 2002 more than 96% of all expenditures on higher education institutions were from public sources.

New changes in the Finnish system

A new University Act, effective from January 2010, brings about important changes to the way in which institutions are governed. In terms of the new Act, universities are required to appoint 40% of their board members from outside the institution. Three further reforms were proposed in the new legislation. First, there will be a major change to the way rectors are appointed. Like most of Europe, Finnish rectors have been elected by the professors, other staff and students. In future, the board will appoint the rector who will be answerable to that board. The appointee will not need to be a professor of the university, as is currently required.

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