an Eldis Resource

This paper profiles international experiences and discusses strengths and weaknesses in approaches to results-based funding of tertiary education in order to identify finance reform options for Chile.

The paper is divided into the following sections: describes the Chilean public financing system of tertiary education; discusses the need for establishing data collection structures and identifies steps involved in selecting performance criteria; outlines strengths and weaknesses of design options drawing on examples of results-based funding systems in Africa, Europe, Latin America and North America; reflections on how resources can be tied to selected indicators; discusses implementation issues when introducing a results-based funding system; the final section outlines possible finance reform options for Chilean tertiary education in light of international experiences.

The paper concludes that the critical importance of tertiary education in a knowledge-based society suggests a need for strengthening linkages between the funding of institutions and achieved results in Chilean tertiary education. First, results-based funding would provide Chilean policymakers with an opportunity to balance increased accountability with institutional improvement. Second, funding by results may increase the efficiency and transparency of the market for tertiary education in Chile. Finally, tying incentives to political priorities would serve as an effective driver for addressing key sector issues.

Adopting a model of performance funding – rather than performance informed budgeting – would mark an important change in the funding for tertiary education in Chile. Tying funding directly and tightly to performance provides transparency and predictability. Reaching agreement beforehand on a fixed macro-budget would ensure stability in the budget for tertiary education.

• Full text of document
• Publisher details
• Send to a friend