ECONOMIC POLICY OF HIGHER EDUCATION

Economic Policy of Higher Education



Economic Policy of Higher Education

Introduction

In this paper, we will discuss how economic theory contributes to our understanding of an individual's decision to participate in higher education. We will also evaluate the Government's recent reforms to higher education and student finance in the context of these decisions. The term policy commonly referred to the policies set by the state power. Higher education has always been an object of political activity and policy of higher education may be considered as a region of the state in the field of higher education.

Institute of Higher Education is poly functional in nature, and performs a variety of tasks in the economic, political and social spheres. Priorities of the state also do not remain constant. They vary widely depending on the objectives and the resources of the sector. In general, the priority may be social, economic or political. The main efforts of the state routed to the regulation of access to higher education.

The educational policy may be a policy of equal access of the educational resources to all the students of the state and hence, it can be known as the policy of positive discrimination. In this case, disadvantaged segments of the population may have an equal chance of admission to the university. Implementing such a policy creates the conditions in which higher education becomes a channel of upward social mobility for the poor, people with disabilities, ethnic minorities, etc.

On the other hand, the policy of higher education cannot only be a part of the social policy, but rather maintain and even enhance the social equality. Market orientation of higher education policy makes part of economic policy. The market is becoming common organizing principle of university management. Universities are competing with each other for public funding and students. Universities are arranged in a hierarchy by prestige ownership and training.

Discussion

The Economics of Education seeks to understand two major phenomena. On one hand, at the micro level, economists seek to understand the process of individuals in making investment in human capital, as well as many factors that can influence this process. On the other hand, point of view of macroscopic economists is concerned about the educational impacts of these choices of individual trends in the labour market. The economics of education, with its emphasis on investment in human capital, is also closely linked to the macroeconomic literature on economic growth, which makes it particularly relevant from the point of view of economic policy.

Education is indeed an important source of external effects and is a critical factor in the growth of living standards of people. It is, therefore, important to analyze rigorously the profitability (real and perceived) investment in human capital, and the various factors and constraints that influence individual choices in this area (Blaug 1976, 827).

Comprehensive study of the experience of transition in reforming higher education is one of the key points related to the achievement of sustainable economic ...