Question

Discuss the role of the government in higher education with reference to the higher education system in the UK.

Answer 1

Note: This discussion is based on a research paper by Milton Friedman (1995 ) and reports of various universities based in UK.

Given the changing dynamics of State and the kind of activities it engages in Education is one such area which has a general consensus built overtime by policymakers, stakeholders citizens etc. that the State should intervene in.Furthermore as higher education degrees such as graduate,post graduate degrees helps in building advanced skill set it creates a pool of expertise within the economy.  In context of economics, education is a merit good as it has significant neighborhood effects and State should earmark expenditure from its budget exclusively to be spent on education.Some may argue that is an unnecessary extension of the State's responsibility.

However below are reasons for defending State intervention in higher education system.

a. Just like Food which is a necessary good comes with a specific standard so education must have a standards made and monitored by the State to meet minimum quality.

b. As there exists families which may be burdened to meet the entire financial burden of children State must provide subsidy to ensure education for all.Moreover it must also promote higher education among students as this effectively utilizes the youth energy for constructive purposes rather than in drugs, other crimes etc.

c. A level of trust exists for public goods as compared to private entities providing education.

d. Private sector must act as intermediary funding bodies.

e. Set up Higher education authority that checks accreditation of universities safeguard the character and autonomy of institutions.

f. Setting up Quality assurance agency to monitor quality standards.

g. Set up Teacher training centers that track performance standards.

h. To correct market distortions that result in shortage of seats in a particular higher education sector or correct surplus seats by allowing international students to take up courses.

i. Creating awareness among students about advantages of higher education and making them realize and pay for costs involved in imparting education.

Even though State intervention is necessary in reality government plays a delegated role rather than a hands down approach in higher education.For example in UK, the independence, responsiveness and effectiveness of higher education institutions is due to government distancing itself from institutions and entrusting the high-level administration of the public finance to reputed independent bodies such as the Funding Councils. While the government can attach general conditions to the funding it provides, it may not attach conditions to the funding of individual institutions. This is to ensure an arm’s length relationship exists between government and the higher education system to secure the autonomy of institutions within a broad framework of public policy.
Moreover Institutional diversity is a major strength of the UK higher education system, so the State's role here is to maintain proper relationship between society and institutions. This is handled with sensitivity to institutional differences so that it does not lead to an loss of diversity.

Government should concern itself with higher education, as it has so strongly in the past. It will intervene if it considers that the level of participation in higher education in the United Kingdom is falling behind its main competitors. It will be concerned about the effectiveness and value for money spent in education sector, its standards and standing in the world, the way it is able to relate to society as a whole and its contribution to the nation’s research and development effort. At the local and regional level, higher education is assuming greater importance to cultural and economic life, pointing to a progressive strengthening of regional ties, including the regional aim of government.