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Recovering the cost of public higher education in LDCs : to what extent are loan schemes an efficient instrument ?

Abstract : ln many LDCs today, the education sector is still characterized by relatively low levels of enrollment. On the other hand, however, expansion in the public provision of education is limited by constraints in the public budget. To overcome this problem, various strategies could be considered, among which is the implementation of cost recovery policies. ln this paper, we have argued that higher education would be a suitable candidate ror such policies. Cost recovery at this level of education would be helpful, not only because of its potential effect on resource mobilization, but also because it would boost efficiency and equity in the overall distribution of public resources for education. For (other) equity and political reasons, loan schemes have been favored by many authors as an appropriate instrument for implementing cost recovery at this level of education. ln this paper, we have examined their likely effectiveness in this role. Our analysis indicate that the outcome depends primarily on what is judged, in each country, to be the maximum acceptable debt burden, measured, say, in terms of duration of repayment, and proportion of a borrower's current incorne allocated to loan repayment. Our simulations indicate, however, that the terms of repayment required for full cost recovery appear to be easily bearable in Asia; similarly, in Latin America, although probably less so than in Asia. ln Francophone Africa, the terms of repayment appear to be more difficult to bear, although they are probably still manageable. ln Anglophone Africa, however, the conditions apear to be more problematic.
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https://halshs.archives-ouvertes.fr/halshs-03184142
Contributor : Bertille Theurel <>
Submitted on : Monday, March 29, 2021 - 11:31:07 AM
Last modification on : Tuesday, March 30, 2021 - 3:38:16 AM

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  • HAL Id : halshs-03184142, version 1

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Alain Mingat, Jee-Peng Tan, Monzurul Hoque. Recovering the cost of public higher education in LDCs : to what extent are loan schemes an efficient instrument ?. [Research Report] Banque Mondiale. 1984, pp.44. ⟨halshs-03184142⟩

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