scholarly journals The Market Distortion Effect of Government Intervention in Higher Education

2021 ◽  
Vol 9 (1) ◽  
pp. 123-131
Author(s):  
Jezyl Cutamora ◽  

In the Philippines, a mixture of public and private higher education institutions (HEIs) exists. Because of the government subsidy among the public HEIs, the major concern of the private sector is the “uneven playing field”. This study hopes to eliminate this unhealthy competition and market distortion in the educational landscape. This study utilizes the quantitative non-experimental retrospective explanatory design. Results show that regardless of the extent of state intervention, the market can be distorted. Hence, assigning specific programs to be offered based on the type of HEI is a good alternative. The programs to be fully subsidized and offered by the government are agriculture, sciences, engineering, manufacturing and construction, and humanities and arts (HA) while services, health and welfare, education and social sciences, business and law programs will be for private sector service providers. This stimulates healthy competition among the HEIs leading to a better quality of education.

2014 ◽  
pp. 11-12 ◽  
Author(s):  
Steve Woofield

Private providers are becoming more visible in an increasingly heterogeneous UK higher education landscape. Policy changes in England have stimulated rapid enrolment growth in the private sector, and the government is currently facing the challenge of regulating and ensuring quality in this dynamic and complex part of the HE sector in the absence appropriate primary legislation. Currently very little is known about the UK’s ‘alternative’ HE providers and many myths surround this part of the sector that do not reflect reality.


2019 ◽  
Vol 34 (5) ◽  
pp. 1041-1053
Author(s):  
Brian Low

Purpose This paper aims to examine how a combination of legitimacy needs and actions (LNAs) can shed light on the legitimacy behaviour of private higher education institutions (PHEIs) operating in an institutional business environment that is witnessing significant public–private sector role reversal. The legitimacy process is promoted as an exemplar to inform the increasing number of public–private sector role reversals in the utility, transportation, health and telecommunication sectors. Design/methodology/approach Based on empirical evidence, this paper triangulates data from archival policy announcements, retrospective case studies and face-to-face interviews. A replication logic methodology was used to establish LNAs and categorized themes. Findings The findings show that market, relational, investment, alliance and social legitimacy needs are crucial drivers for PHEIs when hybridizing their legitimacy practices, especially during critical phases of institutional reform. The proposed conceptual framework demonstrates how the legitimacy construction process is the result of internal development and external validation. Research limitations/implications In providing some empirical descriptions and generalizations, the model makes limited attempt to determine with any specificity how PHEIs interact with their institutional environment, beyond a process of data triangulation. Practical implications The proposed LNA framework is especially relevant in industries where the government has historically been a major institutional stakeholder, but where market liberalization is leading to increasingly active participation by the private sector. Findings can help PHEIs deal with reform policies by establishing deep and varied expertise inside their organizations and through links with international universities, industries and government agencies enable knowledge exchange, transfer, partnerships and the development of alliance capitalism. Originality/value This study provides a more comprehensive approach for theorizing the interrelatedness and embeddedness of organizations with common business and institutional demand factors and linkages and their changing roles, particularly the multi-scale impacts of LNAs on legitimacy sustainability.


Author(s):  
Tilahun Gidey ◽  
Pedro Teixeira

Over the last decade, Ethiopia has seen a major leap in education enrollment. The private sector has provided a significant contribution to this expansion, notably in higher education. The expansion of higher education has been accompanied by an attempt on the part of the government to establish at least one university in each regional state. Regional diversification and the quality evaluation process are the coning issues, which will certainly feature increasing tension between the private sector and the government.


2017 ◽  
pp. 24
Author(s):  
José Janguiê Bezerra ◽  
Celso Niskier ◽  
Lioudmila Batourina

The Brazilian private education sector is one of the largest in the world. Today there are more than 6 million students enrolled in private higher education institutions, which represents more than 75 percent of all university students. Brazilian higher education started expanding in 1996, when the government, according to the National Education Plan, introduced a fund allowing young people to take up students loans. From 1996 to 2010, the government took a number of actions, addressing the problem of social inclusion and supplying the country with educated, middle class workers. The Brazilian Association of Private Universities (ABMES—Associação Brasileira de Mantenedoras de Ensino Superior) is pushing the government to keep investing in the scholarships in spite of the economic crisis, and working together on finding alternative funding mechanisms to provide society with access opportunities to higher education, and to sustain economic growth.


Author(s):  
Chika Sehoole

This article makes case of how South Africa has been able to use its laws and policies to achieve its objectives of regulating private higher education. This happened in the context of an ascendancy of neo-liberal policies which favoured deregulation and the rolling back of the state. Through these policies the government was able to protect the public even during the global financial crisis as it had registered credible and financially sound institutions which could weather off the financial crises which affected many private companies worldwide.


2018 ◽  
Vol 7 (5) ◽  
pp. 44
Author(s):  
Pilar Preciousa Berse

Education is in the heart of Southeast Asia’s quest for equitable human development throughout the region. This has never been more pronounced than when the Association of Southeast Asian Nations (ASEAN) formed the ASEAN Socio-Cultural Community (ASCC) in 2003, ushering in a number of regional directives and initiatives to harmonize higher education among ASEAN member states. Yet, the process has not been easy due to fundamental differences in higher education structure, quality, and processes among member countries. In light of this, the study traced the institutional arrangements and policy responses that have taken place at both regional and national levels in pursuit of integrating higher education in the region. First, it reviewed the key mechanisms that ASEAN has established to foster harmonization. It then discussed the experience of the Philippines in relation to the three components of harmonization, namely, qualifications framework, quality assurance, and credit transfer.  It showed that while the government has shown sufficient response to its regional obligations through legislation and administrative issuances, it needs to do much more to show its commitment and ensure involvement of all higher education institutions in the integration process.  


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