Powerpoint on the Risks of HE Privatisation. Read accompanying speech at: http://anthonycamilleri.innovationpros.net/higher-education/financing/the-risks-of-privatisation-of-higher-education-2

1. Anthony F. Camilleri
SSU Higher Education Conference 2008
Rogaska Slatina, Slovenia 05th Dec 2008

3.  Privatisation of funding sources
 Privatisation of higher education
institutions

5. Target GDP spend on HE in Europe: 2% GDP

Current GDP spend on HE in Europe (2004):

1.3% GDP
Direct Public Funding on HE in Europe (2004):

0.95% GDP
GDP spend on HE in US (2004) 2.5% GDP

Direct Public Funding on HE in US (2004):

0.54% GDP

9. The Iron Triangle
Survey of attitudes of presidents of
US Community Colleges (2006)

10. The EU Public financing model is producing

results
‘Cost-sharing’ on its own is by definition

inequitable
Systems to introduce equity in cost-sharing

models are difficult to implement

11. Private management is more effective

than public management
 Privatisation leads to competition
 Private sector is more user-oriented

12.  Maintain the bottom line
 Increase shareholder value
 Improve market share

13. Legal standing

Its own assets

The capacity to contract

The ability to hire staff and set their pay

levels
The freedom to set budgets

The freedom to develop policies of every kind

Higher Aspirations: An agenda for reforming European Universities
Bruegel think-tank, 2008

14. Public Private
Stakeholder participation is Stakeholder participation
the rule common
Autonomy possible Autonomy is the rule
Shareholder interest is private
Shareholder interest is public
interest – which can
interest
potentially be private interest

15. Public Private
Lump funding discourages
Competition for funding, students
competition – formula funding
and staff is the rule
encourages it
Competition for prestige is Competition for prestige is
increasing increasing
Competition is accessory for survival
Competition is necessary for
but necessary for improvement – it
survival – it is an end in itself
is a means to an end

16. In a mixed system – how do you guarantee

public responsibility?
How do we prevent parasitic mission creep?

◦ Mission creep: the process of a university taking the
mission of another
What does this means for the definition of a

university?
What does this mean in terms of barriers to

the public sector?
Can a university be run purely as a profit-

making entity?

17. Is the risk
worth it?

18. Continue the discussion on:
http://anthonycamilleri.innovationpros.net
SSU Higher Education Conference 2008
Rogaska Slatina, Slovenia 05th Dec 2008