Guaranteed core funding for higher education

In December 2021, the OECD published a review report 'Resourcing Higher Education in the Flemish Community of Belgium'. This report analyses the financing of higher education in Flanders, compares it to systems of other countries and formulates policy recommendations. The independent OECD experts pointed out some issues, some of which have already been present for some time.

Need for guaranteed core funding

Following the report, the Vlor is taking a close look at the current Flemish funding system. The funding for higher education has not grown with student numbers over the past decade. Moreover, there have been allocated repeatedly less resources than originally envisioned in the 2008 funding decree. Thus, as the OECD also confirms, the basic funding of higher education is not guaranteed. Sufficient investment is however crucial to continue to guarantee its quality.

Alternative paths

In addition, the results and recommendations of the OECD report prompt further reflections on an adapted financing mechanism for Flemish higher education. Among other things, the Vlor considers it worthwhile to thoroughly explore and analyse the effect of open-ended funding, the impact and added value of the steering parameters in the funding system, and the possibilities of working out a fine-grained system for scholarships.

Scepticism for additional accountability

The OECD suggests introducing a system of institutional agreements. This would ask each institution to formulate some critical development goals for a four- or five-year period, along with specific actions and methods for assessing progress towards these goals. The Vlor considers it important that higher education institutions themselves set strategic long term goals and that an overarching higher education strategy is established. However, we see no need to switch to a system of institutional agreements. After all, this might come with disadvantages, notably an increase in accountability pressure and a threat to the freedom that higher education institutions currently have from the government within the established global framework.

Smaller adjustments current system

Finally, there are some OECD recommendations that Vlor believes could be useful, but only impact delineated parts of the current funding system. As a result, they seem relatively easier to implement. These include, for example, a simplified set of program-specific weights for professional programs, student support initiatives and tools, information on the total cost of higher education, etc.

Importance stable funding system

For Vlor, a funding mechanism should be as transparent, straightforward, fair and objective as possible. The autonomy of the institutions should be a focal point in a lump sum approach. A funding mechanism should generate stability, even in a transition phase between different mechanism.

Click here to read the recommendation in Dutch