Peer Learning Activity on Using financial instruments for steering system performance

Peer Learning Cluster or other group

Background

In modernising higher education systems, increases in HE institutional autonomy are being taken forward by governments. Notwithstanding increased overall institutional autonomy, governments continue to play a strong role in directing priorities for public investment.

This PLA focussed upon how governments can use financial instruments to steer system performance.

In preparation for the meeting, participating countries provided a brief national report covering the following issues:

• Effectiveness of different financial instruments for steering at system level,
• Use of specific instruments,
• Formula-funding,
• Non-financial instruments,
• Performance indicators,
• Effectiveness of different financial instruments for steering on system-level.

The questions below were addressed:

• How national priorities are achieved by influencing the Higher Education Institutions?
• What are the most effective combinations of targeted and generic funding?
• What are the pros and cons of the various instruments?
• How can the countries avoid the disadvantages that can arise?
• Should annual or multi-annual funding be addressed?   

Description

Key lessons from the PLA:

• Define the objectives clearly and know how you will recognise and measure success;
• Take the context (national and international) into account;
• Make sure the right people at the right level (supply or demand, national, regional, international) are steered, with the right mix of instruments;
• Involve the stakeholders to build support;
• Keep the costs and complexity down for both sides as far as possible and ensure that they are proportionate to the funding, importance and duration of the measure;
• The timescale should be appropriate – both the duration of funding and the point at which success is judged, etc.