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Romania

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Ministry of Education, Research and Youth Higher Education funding as a strategic tool Sorin Gabriel Popescu General Director responsible for Higher Education Funding ... – PowerPoint PPT presentation

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Title: Romania


1
Higher Education fundingas a strategic
toolSorin Gabriel PopescuGeneral Director
responsible for Higher Education Funding
Management
  • Romania
  • Ministry of Education, Research and Youth

2
Presentation objectives
  • Starting from a structured description of the
    Romanian higher education funding system, the
    presentation intends to focus on
  • the role that funding has in the development of
    higher education and universities performance,
    in the EU and national strategic framework
  • the Romanian higher education funding dynamic in
    the last 4 years (2005-2008)
  • the main domains and directions for strategic
    interventions connected with the funding of
    higher education
  • the already undertaken, current and intended
    measures of the Romanian Ministry of Education
    Research and Youth in the mentioned domains and
    directions
  • the ways in which this strategic interventions
    and measures could be sustained by EU structural
    funds.

3
The industrial and knowledge economy/society
Industrial economy / society
In the past two centuries, only labor and capital
have been considered to be production factors and
sources of development.
4
The industrial and knowledge economy/society
Knowledge economy / society
Industrial economy / society
In the past decades, knowledge, associated with
technology, has become the third, and for the
developed economies the main production factor.
5
The industrial and knowledge economy/society
Knowledge economy / society
In the past decades, knowledge, associated with
technology, has become the third, and for the
developed economies the main production factor.
In such a society, knowledge in the form of
competence offers to the individuals access to
welfare, and, on the national level, together
with technological progress, forms the basis for
economical growth.
6
The University in the knowledge-based society
  • In this context
  • universities, as main sources of knowledge within
    society, become key factors of its wellbeing
  • for Romania, as for any modern country,
    investment in Higher education should ensure
    maximum benefits in the long term, as it is one
    of the most efficient mechanisms of
    sustainability in the global competition for
    resources and development.
  • The mission statement of universities should be
    re-written for the knowledge-based society like
    this
  • To contribute to the economical development and
    to the wellbeing of the society by transferring
    knowledge towards individuals and the
    socio-economic environment that it serves

7
Relationship between funding and performance
  • There is a proven correlation between the funding
    and the performances of universities.
  • The Report entitled An Agenda for Reforming
    European Universities, prepared and published in
    July 2008 by a group of international experts
    (professors of economics from universities as
    Harvard, Stanford, Oxford and Université Libre de
    Bruxelles) for the Bruegel Foundation determines
    the influencing factors of the research
    performance of European universities (the
    Shanghai Index)
  • average level of the expenditure per student
  • financial autonomy of universities and the
    entrepreneurial behavior of the universities
    leaders
  • the methodology for the distribution and
    allocation of funds encouraging a minimal
    standard (equal distribution for all
    universities) or the orientation towards
    excellence (preferential financing of
    universities with relevant potential)
  • international mobility of students, but
    especially the mobility of teaching and research
    staff.

8
Relationship between funding and performance

The average yearly expenditure/student in the EU
is 8700 EUR, with most of the countries grouped
around the same funding-performance index. The
champions are Sweden and Switzerland, while the
countries in Eastern Europe have worse positions
in this graph. Romania has in 2008 about 4000 EUR
as level of expenditure/student from public funds
and it is present with any university in the
Shanghai 500 ranking.
9
Romania HE funding framework
REGULATORY, STRATEGIC AND STEERING FRAMEWORK
EU regulations
EU Strategic and Steering Documents
National Regulations Programs
National Strategic Steering Documents
SOURCES
ALLOCATION
MANAGEMENT
PERFORMANCE
NEED-REQs.
IDENTIFICATION
Public funds exp.
Instit. capability
National SE Env.
Methodology
National Budget
Entrepreneurial skills behavior of
universities leaders
Economic Env.
End beneficiaries
Univ. regulations
Processes
Direct contract
Individuals-Fees
NationalEurop. Academic Env.
MEASUREMENT
EU regulations
Products
Grant/Project
Structural Funds
SATISFACTION EFFICIENCY
10
Romania HE funding framework
The national socio-economic environment is the
main beneficiary of the HE system education
(bachelor/master/doctoral/life long learning),
scientific research results and direct assistance
(consultancy and professional services).
The individual/end beneficiaries are persons
(students) who want to study to gain competences
and recognition and their requirements range from
the study program characteristics and its
international recognition, to the accommodation
and transport facilities offered by universities.
NEED-REQs.
IDENTIFICATION
National SE environment
The members of the national and European academic
environment express needs/requirements that are
specific to their level from the institutional
level (e.g. compatibility) to the individual
level (e.g. opportunities and funding of
mobilities).
Endbeneficiaries
NationalEuropAcademic Env.
These needs and requirements have to be
identified both at the entire HE system level and
at the individual components (universities) level.
MEASUREMENT
SATISFACTION EFFICIENCY
11
Romania HE funding framework
REGULATORY, STRATEGIC AND STEERING FRAMEWORK
EU regulations
EU Strategic and Steering documents
National Regulations Programs
National Strategic Steering documents
  • The regulatory, strategic and steering framework
  • assembles the regulations, strategies, and plans
    both at the EU and National levels and
  • provides the reference framework for the HE
    system and for its funding.
  • Its functions are
  • system planning establishing policies,
    priorities, objectives, measures, resources,
    responsibilities for medium and long term
  • system control regulations that have as aim to
    put in practice these instruments at different
    action levels.

NEED-REQs.
IDENTIFICATION
National SE environment
End beneficiaries
NationalEurop. Academic Env.
MEASUREMENT
SATISFACTION EFFICIENCY
12
Romania HE funding framework
  • The State budget provides two main components
  • Basic funding current expenditure (staff and
    operating costs) - 70 provided according to the
    equivalent number of students and 30 based on
    the quality indicators (2008)
  • Complementary funding investments and repairs,
    students scholarhsips, eating/accomodation/transp
    ort subsidies, special programs, cultural and
    scientific events, scientific research (by
    competition).

Funds from private organisations and persons
coming mainly in return for services such as
training, consultancy or research. These funds
are based on service or study contracts with
economic agents or institutions. A very small
percentage is constituted in present from
sponsorships, donations and private scholarships.
ALLOCATION
SOURCES
Methodology
National Budget
Economic Env.
Entrepreneurship
Direct contract
Individuals-Fees
European and international funds allocated as
grants for projects obtained through competition
in accordance with strategic priorities.
Grant/Project
Structural Funds
The entrepreneurial skills and behaviour of
universities leaders are key elements in
identifying and attracting extrabudgetary funds.
13
Romania HE funding framework
  • Universities are autonomous in deciding how they
    manage and spend funds
  • Autonomy has to be integrated to the national and
    European legal and regulatory framework
  • Universities may also add internal regulations
  • The leadership s entrepreneurial skills and
    behaviour plays an important role in motivating
    people and in the efficient spending of funds and
    the generation of performances according to the
    spent resources.

SOURCES
MANAGEMENT
PERFORMANCE
ALLOCATION
Public funds exp.
Instit. capability
Methodology
National Budget
Economic Env.
Entrepreneurial skills behavior of
universities leaders
Univ. regulations
Processes
Direct contract
Individuals-Fees
EU regulations
Products
Grant/Project
Structural Funds
14
Data regarding HE financing dynamics in Romania
2008 compared to 2000 7.2 times increase
2008 compared to 2004 cca. 3.5 times increase
15
Data regarding HE financing dynamics in Romania
2008 compared to 2000 - 7.2 times increase 2008
compared to 2004 - 2.3 times increase
16
Data regarding HE financing dynamics in Romania
2008 compared to 2000-2004 average - 23 times
increase
17
Data regarding HE financing dynamics in Romania
18
Data regarding HE financing dynamics in Romania
19
Systemic overview of the national HE system
PROCESSES Develop processes needed by the
generation of educational products Main
education, research, consultancy Managerial
strategic/quality/ human resource/financial/
management Support maintenance, investment,
procurement etc.
NEEDS-REQUIREMENTS The leading axis, defining the
independent variable of the entire academic
demarche Needs for knowledge competence,
innovation, assistance in solving problems of the
socio-economic environment
SYSTEM AND INSTITUTIONAL COMPONENTS Institutional
capability for answering to the need-requirements
Structure, rules, managerial paradigm, human
resources/ infrastructure/financial resources
etc.
PRODUCTS Develop products in accordance with the
needs-requirements Study programs, Research
projects, Assistance contracts
Quality is resulting from the measure in which
the entire system and its institutional entities
(universities, Ministry, national agencies /
councils etc.) answer to specific
needs/requirements.
20
Romanian HE system Vision building
Two possible visions, that must be merged
Satisfy the need for education of people and for
competent specialists of the socio-economic
environment. The overall performance of the HE
system is given by the sum of the performances of
individual universities and the quality
orientation is to assure the minimal standard for
each of these institutions.
Generate new knowledge through research and
innovation, pertaining to top technologies, and
develop international prestige. The overall
performance of the HE system is given mainly by
the top results of some universities, with focus
on excellence.
21
Romanian HE system Vision building
A possible vision for the Romanian HE system
  • Competitive and capable to contribute to the
    economical growth and countrys welfare,
    generating and transferring knowledge towards the
    socio-economic environment
  • Socially equitable, offering accessibility to
    everyone who wishes to study, independent of
    background
  • Presents an attractive and diversified
    educational offer oriented towards the medium and
    long term needs of the country
  • Participant in the European HE Area reform
    process and an integral part of the HE
    internationalisation process
  • Accountable to the citizen (tax-payer), ensuring
    a transparent and justified usage of funds.
  • Strategic project Quality and leadership in
    Romanian Higher Education - 2025 Vision
  • and strategic recommendations for 2009-2013 .
  • International partners Fraunhofer Inst. for
    Systems and Innovation Research, Institute
  • for prospective Technological Studies, UNESCO-
    European Centre for High. Educ., EUA.

22
Romania HE funding framework
REGULATORY, STRATEGIC AND STEERING FRAMEWORK
EU regulations
EU Strategic and Steering Documents
National Regulations Programs
National Strategic Steering Documents
SOURCES
ALLOCATION
MANAGEMENT
PERFORMANCE
NEED-REQs.
IDENTIFICATION
Public funds exp.
Instit. capability
National SE Env.
Methodology
National Budget
Entrepreneurial skills behavior of
universities leaders
Economic Env.
End beneficiaries
Univ. regulations
Processes
Direct contract
Individuals-Fees
NationalEurop. Academic Env.
MEASUREMENT
EU regulations
Products
Grant/Project
Structural Funds
SATISFACTION EFFICIENCY
23
Directions for strategic intervention Sources
  • Objective Increase Romanian HE financing towards
    levels comparable
  • to the European average of 8700 EUR/student
  • Budgetary financing
  • In 2008, the total budget for education has
    reached 6 of GDP, with HE financing arround 4000
    EUR/student. In the context of the current
    economic crisis, a slower rate of GDP increase is
    to be expected.
  • Possible future measures for increasing the
    budgetary component
  • The restructuring of the budget for education,
    allocating a larger part for HE
  • The increase of the research budget up to 1 from
    GDP by 2010 from 0,7 in 2008.

National Budget
24
Directions for strategic intervention Sources
  • Objective Attraction of private capital in HE
    institutions (from individual participants and
    companies)
  • Current and evisioned measures
  • Improving the antreprenorial abilities and
    behavior of the universities leadership
  • Creating financial attractiveness for investments
    in HE within public-private partnerships
  • Encouraging organizations to invest in the
    development of their own human resources (1.5 of
    the total salaries invested in training or
    collected as tax)
  • Increasing the revenues from individual fees by
    attracting international students outside the EU.

Economic Env.
Individuals-Fees
Current ESF strategic project Improving
universities management managerial training of
the universities leadership in partnership with
Institute of Education London Univ. Set-up of
the Agency for Internationalization of HE
(working group created in June 2008 aimed to
develop the strategic and regulatory framework, a
strategic project for financing intended to be
launched in 2009, International partners ACA and
British Council).
25
Directions for strategic intervention
Expenditure
  • Objective Encouraging performance of
    universities
  • Current and evisioned measures
  • Introduction within the funding framework of new
    fund for institutional development, addressed to
    a reduced number of universities, that can prove
    relevant academic and research performances,
    according to international ranking systems
  • Encouraging concentration of resources within
    consortiums of universities, student campuses and
    common research units
  • Improving financing framework based on existing
    quality criteria and indicators (30 of base
    financing)
  • Improving the quality of education provided by
    universities within all Bologna cycles.

Public funds exp.
National Budget
Current strategic projects Quality assurance
in higher education in Romania Structuring of
doctoral schools Doctorates in excellence
schools - evaluating quality of research
Doctoral scholarships
26
Description of the strategic projects
Quality assurance in Higher Education in
Romania Envisioned results Improvement of the
ARACIS (Agency for Quality Assurance in HE)
evaluation methodology Institutional evaluation
of 45 universities Transversal evaluation of
bachelor programs. International partners EUA.
Doctoral studies in Romania Structuring of
doctoral schools Envisioned results
Recommendations for establishing doctoral
schools Indicators for evaluating the quality
of doctoral programs Procedures for the
accreditation of doctoral schools. International
partners UNESCO- European Centre for High.
Educ., EUA. Doctorates in schools of
excellence evaluating quality of
research Envisioned results Methodology for
international evaluation of the quality of
scientific research in Romanian universities A
program entitled Universities of Excellence in
Romania 30 new ISI indexed journals. Internationa
l partners UNESCO- European Centre for High.
Educ. Doctoral scholarships (26 projects in
2008, 23 universities) Envisioned results 2312
PhD. students with scholarships of 500 EUR/month
while in Romania, and 1000 EUR/month for 8 months
while at a university within the EU.
27
Directions for strategic intervention
Methodology
  • Obiective Equal opportunities to access higher
    education
  • Current measures
  • Increasing the amount of funds and the program
    attractiveness for facilitating the access to HE
    of disadvantaged categories of young people (e.g.
    rroma minority, scholarships for students from
    rural areas)
  • Set-up of an Agency for students loans (World
    Bank Experts have developed possible scenarios
    and the Agency has been initiated through an
    emergency Ordinance that is awaiting approval)
  • Envisioned measures
  • Improvement of the legal framework in order to
    encourage the students financial support by
    private funding (private scholarships, private
    loans, summer employment).

Public funds exp.
Methodology
Strategic project Set-up of the Agency for
students loans with assistance from the World
Bank. In 2009, the Agency will be launched and,
for becoming operational, another year will be
needed.
28
Directions for strategic intervention Management
  • Objective Improving the entrepreneurial
    competences, skills and behavior of universities
    leaders and the development of ICT infrastructure
    for managerial support.
  • Current and evisioned measures
  • Training of the universities leaders in the next
    2 years within 6 centers with assistance from the
    Institute for Education London University. In
    these centers, there will be set up master
    programs in university management, in order to
    train the future leaders of Romanian
    universities
  • Encouraging universities to develop their own
    solution of computerized management
  • Creation of the ICT infrastructure/facilities
    for managing the educational system at national
    level.

Public funds exp.
Methodology
Entrepreneurial skills behavior of
universities leaders
Strategic project launched in May 2008
Improving universities management Students
Register
29
Directions for strategic intervention Ident.
meas.
  • Obiectiv Development of methods and tools for
    the identification of societys needs and
    requirements and for the measurement of the
    efficiency of investments in education
  • In present, the identification of the number of
    specialists needed by the national socio-economic
    environment is difficult and costly, with low
    relevance (very few companies use a strategic
    planning of their human resources)
  • A possible method for measuring the efficiency of
    the investment in higher education is to track
    graduates and to gather feedback from hiring
    organisations from different fields.

IDENTIFICATION
  • Strategic projects
  • PHARE project finalized in October 2008,
    assisted by German experts from University of
    Kassel,
  • has developed institutional and system wide
    methodologies, as well as the needed instruments,
  • for tracking graduates and feedback.
  • ESF project to be forwarded for financing in
    November 2008 by CNFIS in order to apply
  • these instruments within a pilot study for
    validation at national level and for 20
    universities.

MEASUREMENT
30
Conclusions
1. HE is a strategic priority in a knowledge
based economy and between quality and funding
there is a proven correlation. 2. Funding is the
main tool of the Ministry of Education for
managing the strategic development of the HE
system. Thereby, it has to be correlated with the
national development strategic plans and with the
domain specific vision. 3. HE funding improvement
has to be focused on its final aim answering to
the societys needs and requirements. A
structured approach addresses the funding
sources (public and private), their allocation
and distribution as well as their management and
expenditure. A measurement of the investment
efficiency is needed. 4. Although they cannot
replace other funding sources, coherent usage of
EU structural funds within the Ministrys vision
and strategy could bring a relevant contribution
to the improvement the HE structure and
capability and finally to the entire system
performance.
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