Funding Mechanisms for Higher Education: Financing for Stability, Efficiency, andResponsiveness

摘要

The paper examines the mechanisms through which governments allocate resources tohigher education, particularly in developing countries, in order to establish effective means to transfer these subsidies to institutions. The authors' discussion of funding mechanisms is developed within the context of three major types of restriction which have had an important impact on institutional behavior. The most far reaching of these is the extent of government control over student enrollments. Second, governments may impose high financial dependency on universities (by forbidding revenue diversification). Third, governments may impose restrictions on the extent that institutions are able to allocate their funding as they see fit. In most developing countries, government policy in these three areas has placed institutions in a difficult position.