Globalization, economic crisis and national strategies for higher education development: research papers; Research papers iiep; 2009



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Table 1.1
. Between 1990 and 2005, GER almost doubled in the Arab region, increasing 
from 11 to 21 per cent, and in South and West Asia from 6 to 11 per cent; in East Asia and the 
Paci
fi
c, GER tripled from 7 to 24 per cent. In Latin America, the increase from 17 to 29 per cent 
was moderate. However, expansion of higher education in Africa was slow – an increase from only 
3 to 5 per cent. Since higher education grew more quickly in other regions, inter-regional disparities 
increased. 
Table 1.1 Higher education enrolment in 2005
Regions
Enrolment in 
millions
Enrolment 
share
GER 1990
GER 1999
GER 2005
Arab States
6.8
4.9
11.0
19.0
21.0
Central and Eastern Europe
19.4
14.1
---
39.0
57.0
Central Asia
2.1
1.5
---
19.0
27.0
East Asia and the Paci
fi
c
41.6
30.2
5.9
13.0
24.0
Latin America and Caribbean
15.3
11.1
17.0
21.0
29.0
North America and Western Europe
33.4
24.2
35.6
61.0
70.0
South and West Asia
15.8
11.5
6.0
---
11.0
Sub-Saharan Africa
3.5
2.5
3.0
4.0
5.0
Total
137.9
100.0
13.8
18.0
24.0
--- No data available.
Source: 
UIS (2007) and UNESCO (1998).
International Institute for Educational Planning www.iiep.unesco.org


Introduction
9
Expansion of the system is due to several factors. First, there is the pressure resulting from expansion 
at the lower levels of education. While part of this expansion is in response to the voluntary demand 
for education, another part of it is in response to public action. The promulgation of laws governing 
compulsory primary education has increased national commitment and international support to 
achieve the Education for All (EFA) goals. These initiatives have generated demand for primary 
education, even from the most disadvantaged groups and from those living in remote areas. As a 
result of the expansion of the lower levels of the education system, demand for education at the 
secondary and post-secondary levels has in turn increased. The move, in many countries, towards 
the universalization of secondary education has increased the number of candidates eligible to 
enrol in higher education, thus putting additional social pressure to expand the higher education 
sector. 
Second, the rapid expansion of higher education in the recent past is also a re
fl
ection of increasing 
employment opportunities for university graduates. The public sector used to be the largest 
employer of university graduates in developing countries. Employment in the public sector has 
declined and many countries, in the context of globalization, have promoted the private sector of 
their economies. The slowdown in employment generation in the public sector has, very often, been 
offset by employment creation in the private sector. Furthermore, recognizing the changing skill 
requirements in the context of globalization, many countries not only universalized school education 
but also ‘massi
fi
ed’ their higher education systems. Now it is globally recognized that an expanded 
higher education sector has become a necessary condition for a country’s growth in the present 
environment; it is important in promoting faster technological catch-up and in improving a country’s 
ability to maximize economic output (World Bank, 2002). As noted earlier, the OECD countries are 
moving towards the universalization of tertiary education (OECD, 1998) while countries in Africa 
are taking steps to expand higher education to ‘accelerate catch-up’ (World Bank, 2009).
Third, recent trends in expansion also indicate the fast growth of private and cross-border education. 
The number of students pursuing studies in domestic and private institutions has increased and, 
in cross-border institutions, it has almost doubled to 2.7 million in the last decade. Although better 
job opportunities and higher salary expectations can be important reasons, the growth also re
fl
ects 
changes in the provision of higher education facilities. 
This paper addresses issues related to the globalization of higher education, focussing on cross-
border education – the cross-border mobility of students, of teachers and of institutions. The 
expansion of cross-border education re
fl
ects the increasing demand for domestic degrees in the 
employment market in the developed world, and for foreign degrees for migrant workers in the 
employment market in the developing world. The cross-border education market seems to have the 
propensity to attract good brains from the developing world to meet the requirements of the global 
labour market, both domestic and foreign. Private individuals are willing to pay a higher price for 
cross-border education since the returns from their investment are high. Private agencies are also 
willing to invest in cross-border education since such an investment is pro
fi
table. This paper argues 
that higher education in the context of globalization has become a market-determined process, 
replacing the near monopoly position previously enjoyed by the state. Therefore, there is a need 
to review and revise public policies for promoting higher education. The state needs to rede
fi
ne 
its role in facilitating expansion with equity and in ensuring quality. The current 
fi
nancial crisis has 
underlined the need for public intervention to regulate market processes. National strategies for 
the development of higher education need to focus on developing regulatory measures to promote 
equity and quality as the system expands. These regulations are equally or even more needed in 
the cross-border segment of higher education. 
International Institute for Educational Planning www.iiep.unesco.org


10
Introduction
The paper is organized as follows:

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