ABSTRACT

The past two chapters have examined the scope for increased cost-recovery via fees or delayed payments such as loans as means to mobilize private resources for higher education. The potential for such broadening of resources from students is considerable in many countries and will be fundamental to reform. But there are limits to the extent that cost recovery can resolve budgetary pressures. As such, there has been a growing interest in other sources of non-government funding for higher education. This short chapter will examine the potential role of various income generation strategies: the sale of services to industry (both private and state owned); generation of endowments; commercial management of research and university assets. The potential for supply of services to the productive sectors of the economy will be compared with the demand for services.