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FINANCING PUBLIC UNIVERSITIES IN KENYA AND SOUTH AFRICA: WEAKENING RESOURCE DEPENDENCE ON STATE SUPPORT. Gerald W. Ouma. School of Education University of Cape Town. October 28, 2006. Introduction. Funding Higher Education: A Global Perspective

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FINANCING PUBLIC UNIVERSITIES IN KENYA AND SOUTH AFRICA: WEAKENING RESOURCE DEPENDENCE ON STATE SUPPORT

Gerald W. Ouma.

School of Education

University of Cape Town

October 28, 2006

introduction
Introduction
  • Funding Higher Education: A Global Perspective
    • Globally, universities are faced with immiserating funding regimes.
      • Russia - HE education expenditures, adjusted for inflation, declined from an index value of 100 in 1992 to 27.9 in 1998 (Morgan, 2002).
      • Britain - higher education funding per student reduced by 36% in real terms between 1989 and 1997. planned funding for 2003-04 was still 33% below the 1989 level in real terms (OECD, 2004).
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US - funding for higher education in the 2000, adjusted for inflation, was US$ 23.4 billion below the peak reached in 1979 (Finken, 2004).

  • Britain - higher education funding per student reduced by 36% in real terms between 1989 and 1997. planned funding for 2003-04 was still 33% below the 1989 level in real terms (OECD, 2004).
  • China – China- public allocations to higher education have been reducing since 1993: from 91.8 % of the total expenditure on higher education to 67.24% in 1999 (Shen & Li, 2003).
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Uganda- between 1998 and 2003, an average of 10% of the total education budget went to the higher education sub-sector compared to the early 1990s when 19% of total recurrent education budget went to higher education (Bidemi, 2005).

    • Cutbacks leading to Institutional vulnerability
    • Economic self-determination a core concern
    • Diminished funding blamed mainly on global rise of neo-liberalism as the de facto policy framework.
public expenditure on he kenya sa 1996 2005
Public Expenditure on HE: Kenya & SA - 1996 – 2005.
  • Main Indicators
      • As Percentage of Total Government Expenditure
      • As a Percentage of State Funding of Education
      • As Percentage of GDP
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Fig. 1.1: Comparison of Funding of Kenya’s and SA’s Funding of HE as % of Total Government Expenditure

fig 1 2 comparison of funding of kenya s and sa s he as a percentage of state funding of education
Fig. 1.2: Comparison of Funding of Kenya’s and SA’s HE as a Percentage of State Funding of Education
analysis
Analysis
  • Reductions in Kenya’s case may be described as drastic; SA’s is not as extreme.
  • Allocations in SA’s case keep rising, albeit in nominal Rands.
  • SA’s funding of HE is not commensurate with the rising costs of higher education provision, and the higher education transformative agenda of the post-apartheid state.
  • The imbalance between the financial needs of SA universities and financial support from the government could be said to be a consequence of what Clark (1998) describes as “demand overload”.
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The two countries encountered globalisation differently:

  • Kenya – Imposition of SAPs- Coerced policy shifts.
  • The changes in Kenya’s higher education funding are a product of both local factors and also external forces (de-localised factors).
  • SA – Relatively strong political economy. Normatively influenced. Shift from RDP to GEAR
  • Introduction of Enrolment caps (2004):
  • … the [South African] higher education system has grown more rapidly than the available resources. The resultant short-fall in funding has put severe pressure on institutional infrastructure and personnel, thus compromising the ability of higher education institutions to discharge their teaching and research mandate (DoE, 2004: 3).
weakening resource dependence on government funding
Weakening Resource Dependence on Government Funding
  • it is no longer possible for public universities to depend on the state for their resource needs on a large scale
  • Like other organisations, universities seek stability. They abhor disequilibrium or destabilisation (Pfeffer & Salancik, 1978).
  • When resources are in a state of major flux organisational stability is threatened. Organisational vulnerability occurs.
  • Under such circumstances organisational efforts are directed at regaining stability.
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“[t]he key to organisational survival is the ability to acquire and maintain resources” (Pfeffer & Salancik, 1978: 2). The overriding long-term organisational goal is autonomy: removing dependence upon resource providers to assure continuing stability and equilibrium (Pfeffer & Salancik, 1978: 261).

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Figure 1.4: Percentage Share of Revenue from Various Sources in the Total Income of Kenyan Universities, 2001 to 2005
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Figure 1.5: Percentage Share of Revenue from Various Sources in the Total Income of South African Universities, 2001 to 2004
conclusion
Conclusion
  • There is a general shift in the patterns of higher education funding; from government sources to those that reflect a creeping market orientation.
  • Universities becoming privately funded public universities.
  • Universities are weakening resource dependence on government funding by diversifying their sources of revenue.