Session 1: The Role of University Grant Committee

Presenter: Dr. Richard T. Armour, Secretary-GeneralUniversity Grants Committee

Venue: RM206, Runme Shaw Building, The University of Hong Kong

Date: 31 May, 2016

The University Grants Committee (UGC)

  • The University Grants Committee (UGC) of Hong Kong is a non-statutory advisory committee responsible for advising the Government of the Special Administrative Region (SAR) of the People's Republic of China on the development and funding needs of higher education institutions in the SAR.

Ideas behind the UGC

  • Academic freedom
  • Institutional autonomy
  • Public accountability: ensuring value for money for taxpayers
  • Policy driven initiatives:
  • Value for money:

Mission statement

  • Help advise government to maintain academic freedom

UGC structure

  • UGC has twomajor committees:
  • Research Grants Committee (RGC); and
  • Quality Assurance Committee (QAC)
  • Subgroups deal with strategy, research policy matters, general administration
  • UGC members:
  • Appointed by Chief Executive
  • Comprise of high profile experts including local academics, non-local academics, local lay members (see
  • They are appointed in a personal capacity and shouldnot represent any interest groups e.g., political parties

UGC secretariat:

  • Civic servant

UGC Funding

  • By triennium, 3 years cycle
  • Emphasis on intuitional autonomy
  • Recurrent grant cycle
  • High levels of funding when compared internationally

Current policy priorities of UGC

  • Teaching and learning
  • Internationalization and China
  • Institutional governance: for substantial monitoring and management

The sister bodies of the UGC are the 1) Quality Assurance Committee (QAC) and the 2) Research Grants Council (RGC)

Quality Assurance Committee (QAC)

  • Quality assurance
  • Degree or above
  • QAC audit: “fitness for purpose”, checksand balance, publish on website

Research Grant Council (RGC)

  • Founded in 1991
  • Funding body, not an advisory body
  • Council member comprise of local academics, non-local academics, and local professionals e.g., doctors and lawyers with technical expertise
  • Invite and receive applications for research grants which are evaluated by peer review (acceptance rate of 30-35 percent)
  • Research endowment fund valued at HK$ 23 billion in 2012
  • Research fund allocation largely on humanities and social sciences

Discussion Session

Question and Answer

Question: How arethe 8 vice-chancellors selected? What are the reasons whythere are three Quality Assurance Committees?

  • Answer: Vice-Chancellors are appointed by University Council. They will setup the selection committee. The committee members form different parties. The proposed committee will meet with students and faculty and to gain feedback.The selection committee may propose one or more than one name candidate. UC would make the final decision.
  • Original idea, one QAC will operate two arms to monitor both public and private university. The further is for sub-degree and below.

Question: The 3”I”s strategy: interdisciplinarity, internationalization and innovation are viewed as important in education in Hong Kong. How about research of interdisciplinary operated by RGC in Hong Kong? Any expectancy of increasing the research expenditure in GDP as it is relatively low.

  • Answer. The research expenditure is internationally low and is determined by the government. UGC has argued with government for the research funding. However, it is still low. There is no history of commercial sponsorship in research in Hong Kong. Collaboration with the Mainland is a way to get finding in the future. Even though there is no panel for inter-disciplinary, we ensure that individuals with different subject expertise sit together to settle interdisciplinary research.
  • Supplement information: Hong Kong is a free market. UGC settles the procedure in research funding. UGC is an advice body but not statutory body. The government will talk with UGC about the policy direction. UGC in Hong Kong is a buffer between control and freedom. Every University is governed by the Ordinance.

Question: In order to replicate the ideas of UGC in Vietnam, what we need to do? What is the arrangement of the funds?

  • Answer: RGC funds bachelor, master, PhD degrees and some Associate degrees. Most of the subsidization is targeted for bachelor degrees.
  • How to talk with minister? UGC should be independent from government to provide different voices andpromote balance. First important is finding a right person to interact with government.

Question: Why is the research funding in three year cycles? How about if some research may need more time?

  • Answer: Triennium funding  3-year funding could satisfythe budget arrangements of the government e.g., 5-year Prime Minister/party election. Some funding projects are funded for a longer period of up to nine years. The funding would be reviewed phase-by-phase.

Question: How about the appointment of UGC members?

  • Answer: There is no fixed pattern of appointment of UGC members. The appointment of UGC members is a matrix. They may be local teachers, judge, medical professors etc.

Question: How could the UGC practically respondto the needs of research funding?

  • Answer: UGC follows the practice of US and UK. There is a system of grant application, which is open to all to apply.

Question: There are only 8 UGC-funded universities. Why is the number so few?

  • Answer: HK has limited universities when compared with other international places such as Beijing, Shanghai, London, New York, and Boston. When you look at the demographics (i.e., low birth rate), the number is enough. However, if you want to promote international influence, more universities are desirable.
  • We welcome the establishment of self-financed programmes and private universities e.g., HKSYU.

Question: Any start-up funds for universities?

  • Answer: All universities provide start-funds for faculty, students and applied research. The UGC has a fund for research. There is about 40% research funding forthe applied field and business field. Other government departments such as the innovation and technology office would provide start-up funds.

Question: Interested in structure of UGC. UGC has both RGC and QAC. How does it work?

  • Answer: UGC doesn’t combine RGC and QAC. The RGC and UGC are two separate committees.

Question: Are there any non-local UGC member?

  • Answer: We have non-local UGC members which are from other places and not limited to the Mainland.

Question: Would the political factors affect appoint of UGC member? How are schoolteachers appointed for UGC member? If the UGC members have different political views, how is this resolved?

  • Answer: Such as school teachers, a suggestion list isprovided from the Education Bureau. Communication is a way to make the agreement. Committee members are appointed in a personal capacity and do not express political views.

Question: What is the size of the UGC?

  • Answer: About 90 staff.

Question: What is the reason behind the changes tosubsidies to taught postgraduate degrees?

  • Answer: The change of subsidy was a decision of the government.

Session 2: Discussion of higher education governance and finance

Summer Institute participants

Moderator: Dr. Molly Lee

Venue: RM206, Runme Shaw Building, The University of Hong Kong.

Date: 31 May 2015 (11:00am - 12:30pm)

Abbreviation:

HEIsHigher Education Institutions

MOEMinistry of Education

MECSMinistry of Education, Culture and Science, Mongolia

MOEYSMinistry of Education, Youth and Sport, Cambodia

MOESMinistry of Education and Sports, Lao PDR

MECMinistry of Education and Culture, Argentina

FMEFederal Ministry of Education, Nigeria

MOFMinistry of Finance

QAQuality Assurance

Small group discussion: Mongolia, Cambodia, Lao PDR, Argentina, Ethiopia and Nigeria.

Governance

1. What is the organization that oversees higher education in your system?

  • Mongolia: Directly by MECS.
  • Cambodia: MOEYS
  • Lao PDR: MOES. Most HEIs are public. Development under National-Socio Economic plan.
  • Argentina: MEC
  • Ethiopia: Ministry of Education (3 layers: for general education, for higher education, for vocational)
  • Nigeria: Federal level: National Universities Commission (NUC) under the Federal Ministry of Education (FME). State level: State Ministry of Education

2. Who makes policies for higher education development?

  • Mongolia: The Department of Higher Education under MECS, and Advisory Council under the MECS, plus working group.
  • Cambodia: By the ministry. Policy in expansion: in 1990 there are 10 HEIs, in 1997 increased to 180 public and private HEIs (mainly because of the rise of private HEIs)
  • Lao PDR: 6 main strategies under Department of Higher Education, MOES.
  • Argentina: Subsecretaria de Politicas Universitarias (University Policies Sub-Secretariat)
  • Ethiopia: Decided by MOE, announced by the Council of Ministry.
  • Nigeria: National Council on Education, which monitor Nigeria’s national education policies. It consists of government officials, by political appointment.

3. Who does the administration of the higher education system?

  • Mongolia: Directly by MECS, regulated by law, for all public and private HEIs. At university level: Board of trustees allows more autonomy by law. The appointment of individual HEI trustee boards has changed from MECS to university level. This new law was started a month ago. Before the board comprised of 51% appointed by MECS and 49% appointed by university. Now this is around 30% from government, 30% from (staff and) students, others from independent person in the public. Possible challenges: how to find those type of business / independent people? Will they be accepted as legitimate representatives and be accepted by the public? However, the overall change is a big positive move.
  • Cambodia: MOYES or HEIs can be granted a public administrative institutions (PAIs) status to allow itself administered by its own governing board.
  • Lao PDR: MOES and Department of Higher education at national level.
  • Argentina: 24 provinces, by Subsecretaria de Politicas Universitarias
  • Ethiopia: No specific committees. QA agency oversees the quality of programme and university. The agency has a branch in each university. They have the power to report to MOE.
  • Nigeria: At federal and state level.

4. If there is any committee on higher education, who are the members? How are they appointed?

  • Mongolia: Working group / project steering committees consist of stakeholder on higher education policies. These groups / committees have representatives from researchers, faculty members, employers, entrepreneurs or graduates.
  • Cambodia: Higher Education Technical Working Group, chaired by minister of higher education, provides comments / solutions to higher education issues. The group consists of development partners (foreign and local people who fund on scholarships / research, eg. funding from Japan), employer (those who employ graduates). Public HEIs committee board members are appointed by government, private HEIs committee appointed by HEIs, with a guideline for constitutions.
  • Lao PDR: At institutional level, HEIs were grouped under National University of Laos (NUOL), with a university council.
  • Argentina: National Commission for University Evaluation and Accreditation (CONEAU)
  • Ethiopia: Higher Education Relevance and Quality Agency (HERQA)
  • Nigeria: National Universities Commission (NUC)

5. What are the responsibilities and powers of that committee?

  • Mongolia: The HEI’s Strategy Development Committee formulates strategies on academic, research etc.
  • Cambodia:
  • Lao PDR: to carry out the 6 strategies from the government plan.
  • Argentina: CONEAU decides on QA matters, which degrees are legal, which HEIs can provide legal diploma.
  • Ethiopia: In the internal quality audit system, university governance bodies reports to central governance bodies.
  • Nigeria: To provide grants and monitor the progress. Consists of academic and professional members, civil servants appointed by the President. Accreditation of university programmes, power to open or close down programme and university. QA and granting of fund.

Finance

6. Who controls the budget of the entire higher education system?

  • Mongolia: The budget is approved by the government board. Budget on higher education is planned within the national annual budget. ~70% of HEIs income come from tuition, highly depends on tuition. ~30% of total income come from government.
  • Cambodia: MOF. Public HEIs receive funding directly from MOF by writing a proposal submitted to and be approved by MOF. HEIs are autonomous in financing, except they follow the government salary scheme. Rely on tuition income to run programmes.
  • Lao PDR: MOF looks at 2 levels: MOE budget (for National University of Laos) and Province budget (for other universities).
  • Argentina: MEC allocates budget to pay salary, maintenance.
  • Ethiopia: MOF. Students sign a contract with government to pay back when they work.
  • Nigeria: At federal level

7. What are the factors that affect the higher education budget?

  • Mongolia: Economics is the reasons for budget cut from government, and HEIs are very dependent on tuition, which is affected by household income. The number of high school students places a bigger effect on private HEIs (the selective / premium universities in Mongolia are public) and social factors (demand for skill).
  • Cambodia: 180 HEIs so competitions are very fierce in student recruitment. Private HEIs are affected a lot - most of them recruit students with lower scores in public exam. The government is on hold with regards to the policy of increasing numbers of HEI, and on other hand to improve quality through QA. The government plan is to create at least 1 university in every province. Location can affect the funding. Institutional reputation is also important to attract students. (students refer to social media such as facebook to evaluate HEIs)
  • Lao PDR: Social and Economic Development Plan
  • Argentina: Political and economic
  • Ethiopia: Economics. Student enter universities by national exam, with quota decided by MOE.
  • Nigeria: Enrolment, first generation universities (older and more traditional) are more powerful and receive more attention from the government, follow by the second and third generation.

8. Do elections affect the higher education budget?

  • Mongolia: Ruling party (and National President) are elected every 4 years. Parliament consists of members chosen by election – resulted in regular changes in the government.
  • Cambodia: Yes. Government concern for the quality of education and support to students. Government reform on national exam, curriculum, new assessment method etc. The government works closely with the World bank, UNESCO, UNICEF for these reforms.
  • Lao PDR:
  • Argentina: Electionsare closely related because politics affect higher education a lot.
  • Ethiopia: No. There are 64 politics party and education is at the top agenda of the country.
  • Nigeria: The higher education has a fixed budget.

9. How is funding distributed among institutions?

  • Mongolia: The 3 funding types are: MCES allocation (investment, maintenance), State education fund (to students, as tuition or allowance). Science and technology fund (research grant).
  • Cambodia: Public HEIs financed by government. Private HEIs: minimal funding.
  • Lao PDR: depends on the 6 strategies
  • Argentina: Only public universities receive budget.
  • Ethiopia: MOF looks at funding and decides funding for each HEIs. Universities are given a block grant and university distribute the money internally among colleges.
  • Nigeria:

10. Who decides the budget for each institution?

  • Mongolia: The budget allocation is based on negotiation between MECS and HEIs
  • Cambodia: MOEYS submits proposal to MOF, decision made by the governmental annual budget plan. USD 500 millions for education this year. Government is putting more on education
  • Lao PDR: Top-down (6 strategies), and bottom-up (from donors etc), and Personnel Management of MOES.
  • Argentina: Universities can decide how to use them.
  • Ethiopia: Federal level, through parliament. Institutional level: Senate.
  • Nigeria: The university council. Submit budget to finance.

11. Who audits the financial situation of each institution?

  • Mongolia: National Audit Office -Financial audit (annually) and Internal Audit on performance audit (every 3-5 years).
  • Cambodia: Not easy, the auditing system is not mature yet. There are lot of bodies to conduct the audit, even auditors to auditors. The audit is done by MOEYS, MOF.
  • Lao PDR: National Audit Authority
  • Argentina: Both internal and national audit. MEC audits its own funding for the university.
  • Ethiopia: University internal audit responsible for president, president responsible for the university board. There is federal audit.
  • Nigeria:

Jamil Salmi’s summary

Approximate numbers for comparison:

Population (in million) / No. of HEIs
Mongolia / 3 / 96
Cambodia / 16 / 118
Lao PDR / 6 / 4+1
Argentina / 44 / 47+
Ethiopia / 102 / 135
Nigeria / 180 / 60+
  • Quality, resources allocation and student-teacher’s ratios is related to the ratio of population and HEIs number.
  • Main area of concerns in on governance: autonomy, quality, access and equity
  • Governance structures are very different across countries. The common form for the above countries is: MOE + other committees / bodies at university level
  • Who appoints the committee and board member is a key question. It is either moving from political appointment to democratic election (e.g., in Argentina).
  • Top-down structure is common for socialist countries.
  • How to provide information to student and employment? By QA, accreditation, information regarding graduate’s employment. For example, Columbia provide information for students to choose HEIs and for employer to hire graduates.
  • Australia reform on innovation in higher education.
  • Intuitional autonomy: by government or government agent?
  • Funding structure varies. Granted to student and/or research. Autonomy debate on formula to allocate resource: some government has detailed budget line eg. The fund is only for payment electricity, salary. While some gives a big sum for university to allocate on its own.
  • How to monitor the use of public funding? In what extend this monitor shall take place? There is a tendency moving to stricter audit. However, micro management can become a problem. E.g., limit on hotel type, conference room size, car type and number of staff on trip.

Session 3: Innovation and Entrepreneurship –

Why is it important to higher education?

Presenter: Professor Paul Cheung

Venue: RM206, Runme Shaw Building, The University of Hong Kong