A New Dynamic: Private Higher Education

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Financial consideration2• The market conditions are favourable due to the large numbers of qualifiedapplicants unable to gain admission to a state-funded institution. As long as thefees are below those charged to international students in countries such asAustralia, the United Kingdom and the United States, the providers can pricetheir courses to generate good surpluses.• The cost base of private providers is lower than the state sector, since manyacademic staff is part time and staff expectations as to research facilities are notso high. However, full-time academic staff can be paid at a higher rate than publicsector staff partly to compensate for the lack of benefits, such as staff housing.• There is usually little or no provision for making awards and scholarships to highcalibre students from poor families, in contrast with the state sector.• The private providers are more cost efficient with their funding as compared withthe public sector.Companies pay tax on their declared profits and the main concern of accountants onthe one side and tax inspectors on the other is the costs that are charged againstincome before profits are declared. In countries such as Bangladesh, where there is littleregulation and no law on private sector universities, there is a public suspicion that thefounders of universities pay themselves large salaries. As Box 2.3 shows, the publishedaccounts of two universities in 2002/2003 demonstrated very different outcomes.Some countries have barred for-profit institutions from operating in higher education,but this does not prevent the founder and family from benefiting in some way. Thesebenefits can be in the form of generous management fees or by 'indirect, perhapsethically questionable, means of obtaining a return on investment, such as employmentof family members, awarding concessions for the canteen, bookstore and other auxiliaryservices to friends or relatives', as in the Philippines. (Gonzalez, 1999).Governments can threaten the profitability of the private sector by demanding theadoption of policies of access; India's draft legislation on PHE, for example, requiresprivate institutions to offer subsidized or free places to bright students from poorfamilies, rural provinces or disadvantaged tribes or castes. In the United Republic ofTanzania, the regulatory body expects private institutions to research and provideconsultancy before they achieve final university status.36
Financial consideration2Box 2.3. Surpluses in BRAC University and the Independent Universityof BangladeshBangladesh has over 50 private universities; some such as BRAC University are notfor-profit- being an arm of the well known large non-governmental organization(NGO) - while most of them are like the Independent University of Bangladesh (IUB)and are profit making. The Annual Reports of both institutions for 2002-03 illustratesome of the financial differences. All figures are in millions of taka.Income BRAC IUBTuition and other fees 82 241Interest from deposits 10 30Total income 92 271ExpenditureAcademic salaries and benefits 39 59Personnel, management 28Rent 21 12Depreciation 11 10Maintenance of premises and services 7 8Other 14 24Student accommodation 5 -Total expenditure 97 141Surplus or (Deficit) (4) 130IUB had accumulated similarly large surpluses in the years preceding 2003 and these werebeing used to finance the construction of a new campus as required by the government.In 2009 the tuition fees in both institutions are similar, at between 4,000 and 4,500 takaper semester credit; however, fees for access to the computing centre and the library areextra in both cases.37
Page 3 and 4: The editors and authors are respons
Page 5 and 6: Table of ContentsTable of ContentsA
Page 8: Authorbiographies
Page 11 and 12: List of acronymsACRONYMACUANTRIEPAP
Page 13 and 14: List of tables, figures and boxesBo
Page 15 and 16: Introduction1IntroductionSvava Bjar
Page 17 and 18: Introduction1time, it is coming und
Page 19 and 20: Introduction1The role of private pr
Page 21 and 22: Growth and typology1Growth and typo
Page 23 and 24: Growth and typology1Asia, the world
Page 25 and 26: Growth and typology1Although Latin
Page 27 and 28: Growth and typology1in 'private', p
Page 29 and 30: Growth and typology1The dominant ty
Page 31 and 32: Growth and typology1movements in th
Page 33 and 34: Growth and typology1Komensky Univer
Page 35 and 36: Growth and typology1They are tuitio
Page 37 and 38: Growth and typology1are identifiabl
Page 39 and 40: Growth and typology1Franck, Egon an
Page 41 and 42: Growth and typology1Suspitsin, Dmit
Page 43 and 44: Financial consideration2Financial c
Page 45 and 46: Financial consideration2with pump-p
Page 47 and 48: Financial consideration2education p
Page 49: Financial consideration2Table 2.1.P
Page 53 and 54: Financial consideration2Possibly th
Page 55 and 56: Financial consideration2Box 2.6.The
Page 57 and 58: Financial consideration2In wealthy
Page 59 and 60: Financial consideration2backgrounds
Page 61 and 62: Financial consideration2United King
Page 63 and 64: Financial consideration2ReferencesC
Page 65 and 66: Public-private partnerships3Public-
Page 67 and 68: Public-private partnerships3Second,
Page 69 and 70: Public-private partnerships3elite p
Page 71 and 72: Public-private partnerships37. Priv
Page 73 and 74: Public-private partnerships3Box 3.9
Page 75 and 76: Public-private partnerships3Box 3.1
Page 77 and 78: Public-private partnerships3• As
Page 79 and 80: Public-private partnerships33. Adop
Page 81 and 82: Public-private partnerships3Conclus
Page 83 and 84: Public-private partnerships3Univers
Page 85 and 86: Regulatory issues4Regulatory issues
Page 87 and 88: Regulatory issues4process will dete
Page 89 and 90: Regulatory issues4regulatory and mo
Page 91 and 92: Regulatory issues4Box 4.2. A three-
Page 93 and 94: Regulatory issues4The routine monit
Page 95 and 96: Regulatory issues4• Grants toward
Page 97 and 98: Regulatory issues4• As the exampl
Page 99 and 100: Regulatory issues4accredited, how c
Page 101 and 102:
Regulatory issues4Private sector pa
Page 103 and 104:
Regulatory issues4Eaton, J. S. and
Page 105 and 106:
Quality assurance for private highe
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A New Dynamic: Private Higher Education

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