The changing face of public funding of higher education, with special reference to South Africa
Stellenbosch Working Paper Series No. WP05/2007Publication date: 2007
Author(s):
[protected email address] (Institutional Planning Division, University of Stellenbosch)
Higher education displays characteristics of both private and public goods and there is a trend worldwide to expect individuals to pay more of the costs of their higher education. In South Africa public funding of higher education decreased from 0.86% of GDP in 1986 to only 0.66% in 2006. Due to the decrease in state appropriations, student tuition fees had to be increased to compensate for this loss of income. In the process staff numbers were kept relatively constant, while student numbers increased at a much faster rate. Two future scenarios, based on public higher education expenditure as a percentage of GDP and on real state allocation per WFTES, are included. Although the qualifications awarded per FTE academic staff member increased over time, the graduation rates of the higher education institutions in South Africa are worsening. High-level research, measured in publication units per FTE academic staff member, shows a disturbing decreasing trend since 1997.
JEL Classification:H52, I22, I23
Keywords:Higher education, education financing, qualifications
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Upcoming Seminars
Monday 26 May 202512:00-13:00
Prof Simon Franklin: Queen Mary University In London
Topic: "No Place Like Home? The Causal Effect of Housing Clearances in Central Addis Ababa"
12:00-13:00
Dr Dawie van Lill: South African Reserve Bank & Stellenbosch University
Topic: "TBC"
12:00-13:00
Prof Hylton Hollander: University Of Cape Town
Topic: "TBC"
BER Weekly
16 May 2025 Trade truce lifts markets, SA braces for winter load-shedding and budget reckoningThis week, data showed that South Africa’s unemployment rate rose in 2025Q1, with net job losses compared to 2024Q4. Meanwhile, mining output improved in March but declined overall for the quarter. In the US, inflation eased to a four-year low, while Germany’s economic sentiment rebounded sharply. The UK economy posted impressive growth in Q1; however,...
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