Issues Encountered by Higher Education Funding - Essay Example

Funding Higher Education Introduction: Considering the context of higher education, fund raising has always been a significant matter of concern. Higher education and its funding have enabled colleges and universities to achieve greater success for the organizations and their students. In the earlier times, fund raising used to be achieved through dissertations that were focused on a limited number of higher education institutions. The continuation of such dissertations and fund raising process was never guaranteed. Gradually with time, there has been significant development and initiations of different organizations influencing and contributing to the process of funding higher education (Lasater 2006). In the present times, corporate organizations are known to support the funding of higher education all across the world. Such organizations make investments in educational research that prove to be beneficial for their own operations. The budgets of such organizations are spent on educational institutions in their own countries also sending their workers for training and development. The post secondary education has been observed to have become highly intangible for students across different countries. The primary reasons behind such a scenario include the cost and the unavailability of adequate spaces for educations. In such a midst of necessity for high quality of higher education for students across different countries in the world, it can be said that corporate organizations are the ones who would benefit the most from investing and contributing in the process of funding of higher education (Ehidiamen n.d.). The present study focuses on the issues of funding higher education and tries to determine how such issues may be resolved by actions of organizations, considering two different organizations for the study. The organizations that have been selected for the study include Microsoft Corporation in the United States, and the Russell Group in the United Kingdom. The study considers the actions of these two organizations in regard to the funding of higher education and hence makes a comparative study on them trying to determine the effects of the actions of these organizations on issues encountered by higher education funding. Funding Higher Education: Funding of higher education is directly associated to a certain number of places providing study opportunities to students. According to the Law on Institutions of Higher Education “The number of study places to be financed from the funds of the State budget in an institution of higher education shall be determined by the Minister for Education and Science on the basis of a proposal of the Council of Higher Education. The number of study places in institutions of higher education founded by local governments and other legal persons and natural persons shall be determined by the founder of these institutions of higher education” (Juris et al 2006). According to the Law on Institutions of Higher Education, “the Higher Education Council has extensive competence and functions, including issues of funding the higher education” (Juris et al 2006). It constitutes the power of planning schemes for the development of higher education and the fees for the study, thus offering an outlook to the Minister for Education and Science and the Cabinet in regard to the outline of the State budget for the funding of institutions of higher education. “Membership of the Higher Education Council is confirmed by Parliament – Saeima. The Higher Education Council’s resources to realize its mandate are limited, however” (Juris et al 2006). With significant decrease in the expenditures made by the public on higher education, a crisis has been observed across the world affecting the process of development. Several countries across the world have imposed severe decreases in public budgets for higher education. Such measures had to be done due to many of the policies of economic reforms of the countries or influenced by the underlying principle for the condensed responsibility of the state in funding higher education. This is a common trend in many countries in areas like “total public expenditure on higher education, per student expenditures, public higher education expenditure’s share in relation to a particular country’s national income or total government budget expenditure, and allocations in absolute and relative terms to important programs that include research, scholarships, and so on” (Tilak 2006). The decrease in funding is not restricted to countries that are developing, although it is more widespread in developing countries as against the developed countries (Tilak 2006). Along with the decrease in public expenditure, there have been significant efforts greater than before in regard to the recovery of costs through introduction of tuition fees in countries where earlier there was no charge needed for accompanied by rising rates of fees in other areas where fees were applicable earlier as well. Free higher education used to be provided by many countries. However in the recent times the scenario has altered and except a few countries like Brazil, Sri Lanka and others, most other countries charge students for higher education. In some cases, the charges might be nominal, while in other cases, they reflect significantly large amounts. In certain countries like China and Britain fees for tuitions were charged since 1998. In Austria this action was prevalent since 2001. In other countries like Sweden and Finland, no tuition fees were charged as the national constitution did not allow fees on higher education. “Some countries (e.g., India) have also hiked tuition fees selectively to equal the costs, while providing free or subsidized higher education to some or many students. This dual track system of tuition fees is becoming common now in many countries” (Tilak 2006). With societies becoming knowledge-based, higher education has proved its practicability over the years, and more in the present times, and hence reflected its ability to make significant progress in the society. However, challenges are encountered by higher education almost in every country across the world with respect to funding, impartiality of conditions for access to the study courses and materials, need and development of enhanced workforce, training based on skills, improvement and safeguarding of excellence in education, research and services, significance of the study courses and programs, employment of graduates, setting up of competent collaboration conformities and reasonable admittance to the benefits of worldwide support (World Declaration of Higher Education for the Twenty-first Century: Vision and Action 1998). Also, the changes and advancement in the uses of technology creates challenges for higher education. With all these challenge being considered, and realizing the significance of higher education in the present world, the UNESCO has emphasized its measures and policies on the development of higher education. Actions have also been considered at the worldwide level spreading problem solving measures for funding and effectiveness of higher education (World Declaration of Higher Education for the Twenty-first Century: Vision and Action 1998). Thus the importance of higher education can be said to have been taken sincere concern of across the world that has its focus on the funding of higher education as well. The Role of Organizations in Solving Issues of Funding of Higher Education: Microsoft Corporation (U.S.) and The Russell Group (U.K.): Funding of Higher Education and Microsoft Corporation (in the United States): Microsoft Corporation offers its customers with software that can be used by them for creation of creative solutions to business problems as well as for developing new ideas related to businesses and hence remain connected to issues that are important for them. The corporation’s business is divided into eight divisions that include: interactive entertainment business, Microsoft business solutions, Microsoft Office division, online services division, Server and Tools division, Skype, Windows and Windows Live division, and Windows phone division. The company is committed to helping their customers through their services. The company constantly keeps evolving in order to develop itself with the advancement of new technologies and hence perform better for their customers (Our Commitment to Our Customers 2013). In regard to education and higher educational challenges encountered by educational institutions, Microsoft Corporation has taken significant measures in order to assist in funding of higher education. Microsoft has its approach towards assisting educational institutions to meet the requirements of higher education in the 21st century. Certain programs like Live@edu planned by the Microsoft Corporation have been known to assist universities to be open to the demands of the current technologies and methods of education influencing higher education across the world. Microsoft Partners have been taking sincere participations in the learning initiatives such that educational institutions may be encouraged to focus on innovation bringing transformation in higher education. The primary intentions of Microsoft Partners in Learning were to provide support to the educational institutions. The company not only focuses on contributing through their technological advances, but also with funding, innovative ideas on knowledge and education, and contributes through their expertise being shared with the educational institutions (Morrison and Salcito 2008). In the year 2004, Microsoft had undertaken the task of surveying the prospect of work based on scenario planning. This was associated with understanding the necessity and power of higher education and the ways the organizations could take part in funding of higher education. The uncertainties that were mostly concerned in such scenario planning included the power of globalization and the management principle of the world as either based on a chain of commands or based on complex set of connections. The different scenarios included in this planning include the following (Rasmus n.d.): Scenario 1: The Proud Tower: Through this scenario, a prospect is explained where activities like mergers and acquisitions have shown the approach to a huge, central, vertically incorporated corporations that have considered several roles and responsibilities of governments, together with education and the progress of local infrastructure (Rasmus n.d.). Scenario 2: Continental Drift: This scenario visualizes a reduction of expenditure from globalization, conceivably on grounds of ruinous financial conditions, an outbreak, or geopolitical apprehensions, building a world of viable nations and states or local communities (Rasmus n.d.). Scenario 3: Frontier Friction: This scenario has been materialized subsequent to a brutal alarm to the economic system across the world, possibly resulting from condensed information in the financial sector followed by a computer-generated assault (Rasmus n.d.). Scenario 4: Freelance Planet: This scenario represents a global environment being altered by “bottom-up networks and mass collaboration on a global scale” (Rasmus n.d.). These scenarios may not have a direct association with higher education. However Microsoft has discovered significant applications of these scenarios in higher education and its funding, with the education being included in these scenarios as one of the major uncertainties (Rasmus n.d.). Some of the education programs have been initiated by the Microsoft Corporation helping in the funding of higher education along with contributing in the preparation of the students for their future (Education Programs 2013). Some of the programs that have been planned by the company include Imagine Cup which is a student’s technology competition (Imagine Cup 2012); Microsoft Students to Business preparing students for careers in technology (Microsoft Students to Business 2009); Elevate America enabling individuals to have access to skills necessary for higher education and jobs (Corporate Citizenship 2013); DigiGirlz providing opportunities to high school girls to involve in higher education and plan their careers (DigiGirlz 2013); Shape the Future helping the governments to attain the technologies and funding needed for higher education in universities (Shape the Future 2013); Microsoft Dynamic Academic Alliance providing no-cost licenses to educational institutions such that they can incorporate and maintain higher education (Microsoft in Education 2013); Microsoft External Research and Programs supporting for the future and funding of higher education in the country (Microsoft Research 2013); and Microsoft Partners in Learning investing in programs and partnerships trying to encourage constructive alteration in education in the United States and throughout world with particular focus on programs and offerings for education leaders, educators, and students (U.S. Partners in Learning 2013). Funding of Higher Education and The Russell Group (in the United Kingdom): Twenty-four leading universities in the United Kingdom are represented by the Russell Group in the country. The Group has a commitment to making the best of the research trying to bring out an excellent experience of teaching and learning. With such objectives in focus, the Group has significant connections with the business world and the public sector. In the recent times, there are two major research reports that have been generated by the company, named Jewels in the Crown, and the Social Impact of Research. These researches are focused on bringing out the importance of higher education and high quality universities across the world for students (The Russell Group 2013). The Russell Group realizes the importance of higher education sector in the country and thus focuses on enhanced research in the field. The company realizes that the success of higher education in the country would eventually lead to growth of the country’s economy. However, challenges arise with the need for funding of the universities such that the economy of the country may be benefitted. In the recent years, this issue has been significantly considered thus reflecting that the support of the funding of the higher education in universities has aided them to place them on a further strong foothold after several years of under-investment (Staying on top: The challenge of sustaining world-class higher education in the UK 2010). On the other hand, universities in the country are encountered with rising pressures of cost in all aspects of their movements and additional venture will be required if they have to maintain delivery of the most excellent education guided by progressive research. Simultaneously, the competitors in the country have accepted that their economic prospect is associated with extremely experienced individuals and businesses based on the use of advanced technologies. They are driving investment into their “universities and research in order to develop the world-leading institutions which they recognize will be key to success in a global knowledge economy” (Staying on top: The challenge of sustaining world-class higher education in the UK 2010). Investment in the universities is afforded by means of a distinctive arrangement of the incomes from the public, private and charitable sector and this varied combination of funding is a major potency of the higher education sector in the UK. Consequently, the potential financial strength and power of the foremost research universities is based on satisfactory intensity of general investment for research, education and activities of modernization that are obtainable from a variety of sources. The capacity and power of the research and activities of teaching involved through the universities under the Russell Group has a significant effect upon the economy (Staying on top: The challenge of sustaining world-class higher education in the UK 2010). “Representing 12% of UK higher education institutions by number (Staying on top: The challenge of sustaining world-class higher education in the UK 2010): They have a total economic output of ?22.3bn per annum, equivalent to 40% of the total output for the sector; They are responsible for supporting 243,000 jobs UK-wide, equivalent to 36% of jobs supported by the sector; They are a major UK export industry, with overseas earnings of over ?2bn per annum, 38% of total earnings for the sector” (Staying on top: The challenge of sustaining world-class higher education in the UK 2010). The higher education sector in the UK has proved to be highly effective with students enjoying the programs and the opportunities that they are provided for setting their careers. Introducing variable fees from the year 2006 onwards has facilitated universities to place their education and teaching stipulation on a more prolonged stage. Through this the Russell Group universities have been able to empower more in an outstanding experience of the students. It is clear from the evidences that subsistence of variable fees, at the same time as endowed with required supplementary income to universities, has also held up an enhancement in contribution to the higher education (Higher Education Funding and Student Support 2010). When the variable fees were introduced in England, it was an adjunct to a development in right of entry, with rates of submission escalating from all social and economic conditions, and with predominantly noticeable advances in applications and admissions of “those from the lowest socio-economic backgrounds” (Higher Education Funding and Student Support 2010). This movement has been visible through the applications and admissions of students to the universities of the Russell Group. “The number of accepted applicants from the bottom three socio-economic groups rising by over 20% in the period between 2005/06 and 2008/09” (Higher Education Funding and Student Support 2010). Supplementary profits from variable fees have offered universities with more assets to aid dealing with the actual obstacles to admissions in higher education. These are “underachievement at school, a lack of information, advice and guidance, and consequently a lack of aspiration among potential students, and risk aversion” (Higher Education Funding and Student Support 2010). Russell Group universities have attained success at an early time by speculation of resources in extending activities of contribution but additional funding would be necessary for such expansions. “The existing system fails to provide sufficient funding to sustain a cadre of world-leading research-intensive universities. We demonstrate the need for further investment to sustain the high quality of these institutions now and in the long-term” (Higher Education Funding and Student Support 2010). A Comparative Analysis: From the two different organizations from two different countries and two different sectors it could be realized that although higher education and its funding have been considered as significant matters of concern in the recent times, the difference in planning and implementations of the plans determine the success of the higher education funding in a country. For Microsoft’s contribution, it could be observed that the company realizes the need for higher education and has effectively planned and implemented several measures contributing to the higher education in the country. However, although these measures are focused on the issue of funding, yet most of these are associated with the technological advances that the company is itself involved into. Thus the measures are in many cases benefitting the students, as well as the effect of the businesses on the students and their careers as a whole. On the other hand the Russell Group being an organization from the education sector has its greater concerns on the investment issues in relation to higher education that in return benefits the economy of the country as a whole. Thus the actions of the group are reflected directly through the measures of increasing fees or the processes of students’ applications and admissions. Conclusion: The contrast of the two organizations lies mostly in the difference of their business sector thus reflecting differences in their missions. It can be thus said that in order to resolve the issues of funding of higher education, it would be essential for the organizations in the education sector to merge their plans and policies with companies of the other sectors who are interested in making investments for higher education. If different sectors make use of their plans along with the higher education sector across different countries, then the funding as well as the development of the higher education can be effectively supported for the successful careers of individuals. References Corporate Citizenship, 2013. Microsoft [online] [viewed 28 April 2013]. Available from: http://www.microsoft.com/about/corporatecitizenship/en-us/community-tools/job-skills/elevate-america/ DigiGirlz, 2013. Microsoft [online] [viewed 28 April 2013]. Available from: http://www.microsoft.com/en-us/diversity/programs/digigirlz/default.aspx Education Programs, 2013. Microsoft [online] [viewed 27 April 2013]. Available from: http://www.microsoft.com/education/en-us/leadership/programs/Pages/index.aspx Ehidiamen, J., n.d. Tackling the challenges of funding Higher Education and eradicating acute student poverty [online][viewed 25 April 2013]. Available from: http://youth-skills-work.tumblr.com/post/25352862648/tackling-the-challenges-of-funding-higher-education-and Higher Education Funding and Student Support, 2010. Russellgroup [online] [viewed 29 April 2013]. Available from: http://www.russellgroup.ac.uk/uploads/Russell-Group-Submission-to-Review-of-HE-Funding-Jan-2010.pdf Imagine Cup, 2012. Imaginecup [online] [viewed 28 April 2013]. Available from: http://imaginecup.com/#?fbid=6vhHRgTnNzg Juris, K. et al, 2006. Funding Systems and Their Effects on Higher Education Systems [online] [viewed 25 April 2013]. Available from: http://www.oecd.org/countries/latvia/38308028.pdf Lasater, W.D., 2006. A Descriptive Study of Select Higher Education Fund Raising Programs: Centralized, Hybrid and Decentralized. Michigan: ProQuest Microsoft in Education, 2013. Microsoft [online] [viewed 28 April 2013]. Available from: http://www.microsoft.com/education/ww/leadership/Pages/dynamics-academic-alliance.aspx Microsoft Research, 2013. Microsoft [online] [viewed 28 April 2013]. Available from: http://research.microsoft.com/en-us/collaboration/about/default.aspx Microsoft Students to Business, 2009. Microsoft [online] [viewed 25 April 2013]. Available from: http://www.microsoft.com/studentstobusiness/home/default.aspx Morrison, J.L. and A. Salcito, 2008. Microsoft support for transformation in education: An interview with Anthony Salcito [online] Microsoft. [viewed 25 April 2013]. Available from: http://www.microsoft.com/education/highered/whitepapers/transform/TransformingEducation.aspx Our Commitment to Our Customers, 2013. Microsoft [online] [viewed 25 April 2013]. Available from: http://www.microsoft.com/about/companyinformation/ourbusinesses/en/us/business.aspx Rasmus, D.W., n.d. Exploring Microsoft Future of Work Scenarios: Implications for Higher Education [online] Microsoft. [viewed 27 April 2013]. Available from: http://www.microsoft.com/education/highered/whitepapers/future/FutureWork.aspx Shape the Future, 2013. Microsoft [online] [viewed 25 April 2013]. Available from: http://www.microsoft.com/education/en-us/leadership/shape-the-future/Pages/default.aspx Staying on top: The challenge of sustaining world-class higher education in the UK, 2010. Russell Group Papers [online], 2, [viewed 29 April 2013]. Available from: http://www.russellgroup.ac.uk/uploads/Staying-on-Top-The-challenge-of-sustaining-world-class-higher-education-in-the-UK.pdf The Russell Group, 2013. Russellgroup [online] [viewed 29 April 2013]. Available from: http://www.russellgroup.ac.uk/ Tilak, J.B.G., 2006. Global Trends in Funding Higher Education. International Higher Education [online], 42 [viewed 26 April 2013]. Available from: http://www.connectedconference.org/pdf/research/Global%20Trends%20in%20Funding%20Higher%20Education-%20International%20Higher%20Education.pdf U.S. Partners in Learning, 2013. Microsoft [online] [viewed 28 April 2013]. Available from: http://www.microsoft.com/education/en-us/leadership/partners_in_learning/Pages/default.aspx World Declaration of Higher Education for the Twenty-first Century: Vision and Action, 1998. UNESCO [online] [viewed 26 April 2013]. Available from: http://www.unesco.org/education/educprog/wche/declaration_eng.htm Read More