Higher Education Policy in the U.S. Case Study for International Conference on Higher Education

1. Higher Education Policy in the U.S.Case Study for International Conference on Higher Education Maureen McLaughlin World Bank November 2005 Ankara, Turkey

2. “Brains Business” • Economist Magazine special issue on higher education • “Mass higher education is forcing universities to become more diverse, more global and much more competitive. • A more market-oriented system of higher education can do much better than state-dominated model.” • Challenge • How to balance increased access and diversity of choices with quality and equity • How to take the advantages of market mechanisms while avoiding the pitfalls

3. Higher Education in the U.S.A Market System • Is it a “system”? • Large, diverse, open, competitive • 16 million students—all ages • Total tertiary institutions—4200 • Mixed public/private • 1700 public; 2500 private • More than 70% of students in public institutions • Significant public and private sector funding • Heavy reliance on student and family contributions • Tuition and fees at private college--$17,000; • At public community college--$1500 • Diversity of choices • Flexible pathways

4. Limited but Important Role of Government • National level – • Equity agenda—support for students to pay costs • Incentive programs for change • Quality assurance framework • Research funding • State level-- 50 different models • Guide and oversee public institutions • License programs • Fund public institutions • Ensure quality and accountability • Support economic development • Turkey, like many countries, combines these two government roles into one

5. High Degree of Autonomy for Institutions and Students • For institutions • Academic Autonomy--yes • Administrative Autonomy--yes • Financial Autonomy—yes • Boards of Trustees for all institutions—public as well as private • Public models most relevant for Turkey • Different models for how boards are constituted and operate--www.sheeo.org • Association of Governing Boards leading major study now on public governance—www.agb.org • For students • Choice, ability to change studies, transfer between institutions, flexible pathways, 2nd chances, lifelong learning • Different admissions requirements, set by each institution—for ex, open admission, highly selective admissions, use of SSAT test, grades, extracurricular activities

6. Wide Diversity in Missions • Wide diversity of missions for institutions— • Teaching, research, service, local community development • For example, elite universities, state universities and colleges, junior and community colleges, shorter term vocational-technical schools, etc • Research mission heavily concentrated—about 100 institutions • Public and private funding of research • Public funding—highly competitive, peer review • Four year liberal arts colleges • Heavy emphasis on high quality teaching • Local community colleges—multiple roles • Open access institutions, preparation for 4yr colleges, ties with local businesses to train workers • Options for students to transfer across institutions • California state system— • Clear differentiation among missions of public institutions • Coordination across the system--articulation agreements to move among institutions and transfer courses

7. Quality Assurance and Accountability • Role of government—both national and state in US • Set up the framework and institutions; • Ensure accurate and transparent information; • Monitor performance of institutions. • Accreditation—internal and external review • Independent agencies--Regional and specialized agencies • Accredit institutions or programs • National role—recognize accrediting agencies • Set standards for recognition • Emphasize outputs and outcomes in addition to inputs • Information—powerful tool for students, society, institutions, government • For ex, Graduation rates, job placement rates, student loan default rates, pass rates on teacher licensing rates • Required to be collected and published; also accountability • US News and World Report--independent

8. Public Funding • State funding of public institutions varies widely in U.S.— • High tuition, high aid models; low tuition, low aid models • Funds provided to public institutions in many ways: • Lump sum, funding formulae, per-student basis, performance-based funding, etc • Many states are now experimenting with different approaches designed to encourage and reward performance • Set up funding system to support and encourage desired results • Support for students—grants and student loans—largely subsidized at federal level and for students at public and private institutions

9. Closing • You are in the middle of these challenges and opportunities now but you are not alone • Every country in world is dealing with tertiary education challenges • Different countries at different points in the change process • Learn and share with each other as you have in this conference • Learn from those further along in the process—learn from their mistakes, use their successes • Adapt the solutions to Turkey’s own country circumstances • Get the incentives right • “The best is yet to come” • Economist