In countries throughout the world, there are increasing pressures to reduce the
government share of costs for goods and services with high payoffs to
individuals so that the limited available
public funds can be used for other needs. This paper suggests several
strategies for reducing government
expenditures on higher education, including direct cost recovery, grants from
and contracts with external
agencies, income-producing enterprises, private contributions, and expansion
of the private sector. Policy
implications and examples (e.g., student access and financial aid, tax
status of revenues from enterprises,
deferred cost recovery) are presented for both developing and developed
countries.
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