International Trends in Governance Reforms

1. International Trends in Governance Reforms Jamil Salmi Global Tertiary Education Expert Sofia, 19 March 2012

3. natural lab experiment: U. of Malaya vs. NUS • early1960s: 2 branches of University of Malaya • today, stark difference: • THES: NUS # 34, UoM not in top 200 • SJTU: NUS 101- 151, UoM not in top 500

4. outline of the presentation... • importance of good governance • system-wide dimensions • oversight at institutional level • institutional autonomy

5. why does governance matter?

6. what do we know about good governance?

7. 2007 comparison of US and European universities • European universities suffer from • poor governance • insufficient autonomy • perverse incentives

8. U. Of Malaya vs. NUS • appointment of VC highly political in Malaysia: 10 VCs until 2008 (Prime Minister statement) • more professional in Singapore (5 VCs) • UM: restricted by government regulations and control, unable to hire top foreign professors • NUS: status of a private corporation, able to attract world-class foreign researchers • 52% of professors (9% from Malaysia) • 79% of researchers (11% from Malaysia)

9. creating the Solar Energy Institute

10. outline of the presentation... • importance of good governance • system-wide dimensions

11. role of the State from central planning to steering at a distance

12. system-wide guidance and policy-making • principal functions at national level • vision about the future of tertiary education • policy-making • regulating and monitoring

13. do we really need accountability?

14. accountability in return for increased autonomy, governments expect accountability in: • adherence to national goals and policies • maintaining academic quality • financial honesty and value for money • good governance and management

15. accountability mechanisms • legal • information • governance • funding allocation • quality assurance

16. legal mechanisms • regulatory framework • financial audits • public disclosure law • annual performance report • presentation before Parliament

17. information mechanisms • student engagement surveys • rankings • national rankings • integrity rankings • international rankings • labor market observatories

18. financial mechanisms • linking resources and performance (supply-side) • demand-side funding (grants, student loans, vouchers)

19. outline of the presentation... • importance of good governance • system-wide dimensions • oversight at institutional level

20. guidance & oversight from inward looking to outward looking

21. guidance and oversight at institutional level • composition and role of Board • independent with outside representation • selection of institutional leader • democratic or professional criteria?

22. governance in the autonomous university the Board: • appoints the U leader and monitors his/her performance • approves the mission and strategic plan, budget and performance indicators • assesses performance against the strategy and plan • establishes and monitors control and risk management systems

23. effective Boards • Board = interface between society and universities • learning to work together: U leadership and Board • need for capacity building • clear boundaries

24. code of conduct for Boards • elaborated in consensus-based mode and voluntary adherence • areas covered • role of Board • structure and processes • effectiveness and performance review • responsibilities of members • conduct of business • pioneers: Australia, Ireland, UK

25. governance mechanisms (international advisory Board) • experienced practitioners • constructive criticism and guidance

26. appointment of university leader • mode of appointment • government appointment • democratic election (faculty, administration, students, alumni) • competitive appointment (Board, govt, electorate)

27. appointment of university leader (II) • eligibility • only faculty member • only from the university • from outside • duration of appointment • one or more mandate • from 4 years to 4 ever

28. outline of the presentation... • importance of good governance • system-wide dimensions • oversight at institutional level • institutional autonomy

29. 2008 Aghion study • research performance positively linked to degree of autonomy of universities in the sample, especially with regard to: • budget management • ability to hire faculty and staff, and • freedom to set salaries

30. international trends • general move to granting greater autonomy (Denmark, Japan, Thailand, Germany, France) • freedom from civil service rules (human resources, procurement, financial management) • growth in scale and intrusiveness of monitoring by governments

31. flexibility • good feedback mechanisms • strategic planning to orient change • ability to react and adapt rapidly

32. results framework

33. effective decision-making? • possibility to consider reforms • speed in making decisions • ownership / consensus for smooth implementation

34. efficient management? • academic management • human resources management • procurement • financial management

36. conclusion

37. international trends • State devolving increased autonomy • accountability through independent Board with outside representation • selection of leadership team with professional criteria • flexibility and responsiveness with power to act

38. ?