Paulo Santiago, OECD - CMI

Allocation of public subsidies for instruction
increasingly characterised by…
- Performance-based funding:
o Allocation on the basis of results (part of formula-funding)
• Degrees awarded; graduates; credits accumulated; average study duration; student
satisfaction; labour market outcomes; equity premia
o Establishing performance contracts between government and institutions
- Greater targeting of resources
o Allocation of public funding on a targeted basis – i.e. money for a particular
purpose (e.g. modernise infrastructure; foster partnerships with the private
sector, improving teaching quality)
- Competitive procedures
o Competitive funds to stimulate e.g. greater innovation, higher quality, and
improved management of institutions