HIgher education in Mauritius: an analysis of future financial sustainability

This research analyses the financial sustainability of the higher education system in Mauritius against a background of ever-rising demand. The purpose of the research is to identify an efficient and sustainable funding system for higher education. It explores alternative ways to mobilise additional funds to supplement government funding and the possibility of cost sharing among stakeholders. The methodology used includes a review and analysis of existing funding mechanisms; a comparative study with selected countries and a survey and interviews to determine the willingness and capacity of Mauritians to pay for higher education. The current target is that the enrolment rate will increase from the present level of 12% to 30% by 2010. With the present policy of government funding almost the totality of higher education the amount of funds allocated to higher education as a percentage of the total expenditure on education would have to increase from 15% to 46 %. As a percentage of GNP it will have to increase from 0.53% to 1.47%. It would be very difficult for the government to sustain such an increase and hence the financial sustainability of the system itself is open to question. The funding model developed from the research proposes that higher education is increasingly being regarded as a `private good' and full public funding can therefore no longer be the expected norm. The direct beneficiaries are gradually being called upon to pay in many countries for Higher Education. It is argued here that Mauritius will have no choice but to accept this new 'paradigm' of HE funding. The share of contribution of the students, in terms of tuition fees, proposed in the model is based on the fact that Mauritians are already spending a substantial amount of their income on education in terms of private tuition at the pre higher education level and on the findings of the survey and interviews. The share of government funding has been arrived at after considering the share of government expenditure in selected comparator countries. With the proposed model the amount of funds to be allocated to higher education as a percentage of the total expenditure on education would increase from the present level of 15% to 25 % in 2010. As a percentage of GNP it will increase from 0.53% to 0.82%. Proposals are also made for a student loan scheme and a transparent method of resource allocation to the higher education institutions.