ESU REACTION TO OECD’S EDUCATION AT A GLANCE 2007

ESU has welcomed the comprehensive focus in this year’s Education at a Glance report. It embraces conclusions on the positive effects of higher education for labour markets, economies and societies as a whole. Also, it believes that it makes a strong case for more access and equity in higher education, something that strongly supports ESU’s work in the Bologna Process. It is a positive step forwards that OECD congratulates Nordic countries on the success of its investments in public higher education. However, some of the policy directions that OECD takes in its editorial have to be questioned. Primarily, ESU questions the model of the university as an enterprise and the benefit of tuition fees for equity and social justice within the student body.

The OECD report Education at a Glance 2007 is an extensive report replete with useful information and data, which is helpful for researchers in the field of Higher Education. Although policy should always be based on facts, success depends strongly on political priorities and the correct perception of facts. The OECD study supports this assertion and shows that much of the growth in student numbers derives directly from policy-driven expansions[1]. This clearly shows that the future success of the European Higher Education Area depends strongly on the conscious policy decisions and actions taken by governments and institutions.

Strong Positive Effects of Higher Education on the Economy

The OECD study confirms the strong positive effects of Higher Education on the economy. In many countries there has been significant growth of jobs and industries in sectors dependent on a more skilled workforce. It is therefore essential for Europe's societies to put Higher Education on the political agenda. Currently this is absolutely not the case in every European country. Ignoring this evidence can have highly negative consequences for the labor market and the economy. Indeed, the report clearly shows the strong positive effect of graduates on the economy and the labor market. The average unemployment rate among those with lower secondary education only is 5 per cent higher than those whose highest level is upper secondary, and 7 per cent higher than those with tertiary education[2]. The effect is not only positive for the graduates themselves as the report shows:

All this suggests that employment prospects among the least well-educated are principally tied to growth in the economy and in general to productivity, to which an adequate supply of high- skilled labour can potentially contribute[3].

Altogether this clearly demonstrates that an investment in Higher Education is not only an investment in the graduates’ future, but also an investment that is vital for all citizens.

Focussing on Student Needs is Key

There is still a large potential for student numbers to increase. Although student enrolment numbers from secondary education to Higher Education have risen in the last decades, there are still 25% to 50% of high school graduates choosing not to enter Higher Education[4]. Policy should focus on ensuring the accessibility for every potential student with the capability and the willingness to enter Higher Education. This is a moral obligation as well as an economic necessity. This means that the Higher education systems should improve the equity and access for those groups who, due to educational disadvantages caused by personal, social, cultural or economic circumstances, need particular support to fulfil their educational potential. These groups include people with low basic skills, early school leavers, the long-term unemployed, older people, migrants, and people with disabilities. ESU believes that focusing on student needs is the only way to achieve more accessibility and to reduce drop-outs.

The demand for more and better education continues to rise and governments across Europe are aiming for higher enrolment figures in Higher Education. This clearly has an effect on the financial situation of Higher Education institutions. Governments should solve the financial concerns in a way that enhanced education as well as larger enrolment may be guaranteed. The funding gap, which is the result of the success of Higher Education, should therefore be solved without creating barriers for larger enrolment numbers.

Solving the Funding Gap

When comparing the financial situation of European universities with their counterparts in the United States, the significance of the financial problem becomes clear. The European average for spending per Higher Education student is now well below half the level of spending in the United States[5]. There are several ways in which this problem may be solved, but not all of them are compatible with the aims of better education and higher enrolment figures. The OECD appears to advocate a shift of the burden of financial provision onto students, a scenario that is clearly not compatible with the aspired increase in enrolment figures. The propagated Australian loan programs are not free of risk as the report insinuates. The fear of loans is pushing students towards paid employment in order to finance their studies. The Australian Vice-Chancellors’ Committee (AVCC) released a report detailing its findings on student finances for 2007. The report shows that 22.7 per cent of full-time students reported that they regularly missed classes or other study commitments in order to fulfil the obligations of their paid employment. Furthermore, 67.3 per cent of part-time students reported they would study full-time if their finances allowed it[6]. Reliable statistics on accessibility within the recently introduced system in Australia is lacking. However, a 2002 US congressional report evidently shows how affordability has become a grave concern in the higher education sector (in the United States) due to high tuition fees. This report demonstrates that the issue of introducing or topping-up tuition fee engenders serious access problems as well as academic difficulties. Advocates of tuition fees should take these problems seriously when discussing this topic. ESU believes that Europe should breed a knowledgeable generation with the necessary competences to be employable in the knowledge-based society and rejects the insinuation that the Australian loan programs are risk free and devoid of accessibility problems. Furthermore, ESU considers financing through general tax revenues as the most equitable way of paying for education as a social good.

Another potential source of income can be generated through cooperating closer with industry. This source of income, however, must be dealt with cautiously since it should be remembered that there is no value free money. Academic freedom and basic research should not be jeopardized by any means when seeking new sources of funding. There are, however, many good examples of private sources of funding and introducing tuition fees is not one of them. ESU believes that alternative sources of funds in combination with higher public investments should be seen as the solution to the funding gap.

Daring to Look Ahead

At the beginning of the 20th century, few would have predicted that, among OECD countries, upper secondary education would be largely universal by the end of the century. This was not an evolutionary process, but a consequence of the various governments’ decision to make secondary Higher Education universal and free. Politicians recognized that secondary education was crucial to the economic development of nations and an essential requirement for the labor market. The OECD report clearly demonstrates that Higher Education is today’s biggest necessity for our economies and the labor market. What needs to be achieved is clear: the only remaining question is if the current political leaders have the same courage as their 20^th century predecessors.