Director-General
Attention: Ms Nolitha Linda
Department of Education
Private Bag X895
PRETORIA
0001
Chapter 1 - Challenges, vision and principles
Chapter 2 - Structure and growth
Chapter 3 - Governance
Chapter 4 - Funding
This Draft White Paper on higher education is published for comment, alongside the Draft Higher Education Bill.
In May 1997, the Department of Education will invite representatives of the higher education stakeholders to a series of consultations on both documents.
After taking into account all the advice received from the higher education sector and the interested public, the Draft White Paper and the Draft Bill will both be revised and submitted to Cabinet in June 1997 by the Minister of Education, Professor SME Bengu.
The White Paper will then be published as a formal statement of the government's policy on higher education transformation, and the Bill will be prepared for introduction in Parliament during this session. The Bill will then be the subject of public hearings by the Education Committees of the National Assembly and the National Council of Provinces, debated, amended, and hopefully passed.
The entire South African higher education sector will then, for the first time in its history, be governed and developed in terms of a single national law.
Thus will conclude a process which the Minister of Education began with his first White Paper in March 1995, in which he stated that:
"The Ministry...has a responsibility to advise the government on whether this vast infrastructure of intellectual and professional endeavour, substantially supported by public funds, is yielding a good return to the nation, and how it might be assisted to do better."
A Framework for Transformation: The National Commission on Higher Education Report, was submitted to the President by the Chairperson, Professor Jairam Reddy, in August 1996. The Ministry's first response was published in the form of the Green Paper on Higher Education Transformation in December 1996.
The Department of Education then undertook two interlinked series of consultations with higher education stakeholders at centres around the country and meetings in Pretoria, which were designed to advise the drafting processes for the White Paper and the Bill. In addition, over 100 written submissions on the Green Paper were received.
Both written and oral advice on the Green Paper have been evaluated and workshopped in the course of preparing the two draft documents which are now published.
On behalf of all officers of the Department of Education, particularly in the Higher Education Branch, and the Department's legislative drafting team led by Adv Eberhard Bertelsmann SC, I express deep appreciation for the quality of the written and oral advice we have received. The criticisms and suggestions have been valued as much as the impressive measure of support which greeted the policy approach and main proposals in the Green Paper. The Department wishes to thank all who have participated so generously in this intensive and exceptionally important period of policy and legislative preparation.
We again request the assistance of all concerned in improving these documents for the last time before they are prepared for submission to Cabinet by Minister Sibusiso Benqu.
NC MANGANYI
DIRECTOR-GENERAL
Department of Education
Pretoria
16 April 1997
1. South Africa's transition from minority rule and apartheid to a democratically elected government requires that all existing practices, institutions and values are viewed anew and rethought in terms of their fitness for the new era. Higher education is a vitally important activity in any modern society. In South Africa today the challenge is to ensure that it can succeed in stimulating, directing and using the creative and intellectual energies of the entire population. This White Paper outlines a comprehensive set of initiatives for the transformation of higher education through new planning, governing and funding arrangements.
1.2 Higher education has several related purposes:
1.3 Assessing the current state of higher education in South Africa against the yardstick of these four general purposes, the Ministry finds reason for concern and an imperative for transformation. Despite acknowledged achievements and strengths, the present system of higher education is limited in its ability to meet the moral, social and economic demands of the new South Africa.
1.4 The present system perpetuates patterns of inequitable access and participation; it does produce sufficient graduates in crucial fields; it has not succeeded in laying the foundations of a critical civil society with a culture of tolerance and debate; and it remains characterised by teaching and research policies which favour academic insularity and closed-system disciplinary approaches.
1.5 Yet this country possesses the most developed and best-resourced system of education and training in Africa, and some higher education institutions have developed internationally competitive research and teaching capacities. Their academic expertise and infrastructure are national assets. It would be detrimental to the national interest and the future provision of quality higher education if the valuable features and achievements of the existing system were not identified, retained and used in the restructuring process.
The policy challenges of transition and globalisation
1.6 The transformation of higher education is part of the broader process of South Africa's political, social and economic transition. That broader process includes political democratisation, economic development and reconstruction, and redistributive social policies aimed at equity. This national agenda, is being pursued within a distinctive set of pressures and demands characteristic of the late twentieth century, often typified as globalisation. This refers to the intensification of world-wide social relations and to multiple changes in the economy, culture and communications of advanced economies. The associated 'knowledge society' has particular implications for the higher education system. In the context of higher education, in particular, developments in information technology are breaking down national boundaries and those between institutions. Access to higher education is no longer necessarily determined by physical space and location.
The South African economy
1.7 Segregation and apartheid have shaped patterns of ownership, wealth distribution, employment practices and educational arrangements in the South African economy. A core economy has emerged with relatively sophisticated mining, manufacturing and service sectors, a developed technological infrastructure, a relatively skilled labour force and an advanced financial system. Certain features of this core economy affect the challenges to higher education. The performance of the economy has been relatively poor, with per capita income lagging behind the average for middle-income economies world-wide, accompanied by low investment rates. Income distribution in South Africa is among the most unequal in the world. Even when the core economy grew at its fastest, its record in job creation and income distribution was inadequate. South Africa has one of the world's highest unemployment rates. Within the formal employment sector there is an increasing shift towards those with skills developed through education and training, a trend conforming to industrialising and industrialised economies elsewhere.
1.8 These features of the economy create an agenda for higher education policy. Prominent items on this agenda are:
Globalisation
1.9 The South African economy is confronted with the formidable challenge of integrating itself into the competitive arena of international production and finance with new computer and communication technologies transforming the way people work and consume. As South Africa locates itself in this network, higher education will have to produce the skills and technological innovations necessary for successful economic participation. It must also socialise a new generation with the requisite cultural values and communication competencies to become citizens of an international community.
Transition and transformation
1.10 Higher education policy in South Africa confronts two sets of challenges simultaneously:
1.11 In meeting these challenges, the transformation of higher education in South Africa has three central features:
1.12 The Ministry's vision is of a transformed system of higher education that will:
1.13 This vision for higher education is located within the Government's broader view of a future where all South Africans will enjoy an improved and sustainable quality of life; participate in a competitive economy and share in a democratic culture. This vision has been articulated in the Government's Reconstruction and Development Programme (RDP), the Growth and Development Strategy (GDS) and most recently in the macroeconomic framework (GEAR). The Ministry's higher education programme also aligns with and reinforces the National System of Innovation (NSI) as outlined in the 1996 White Paper on Science and Technology.
1.14 The Ministry regards the following as fundamental principles that should guide the process of transformation: equity and redress, democratisation, development, quality, effectiveness and efficiency, academic freedom and institutional autonomy, and public accountability.
Equity and redress
1.15 A major mechanism to attain equity in the higher education system is redress, which constitutes one of the most significant components of the transformation agenda. Applying the principle of equity implies, on the one hand, a critical identification of existing inequalities, and on the other a programme of transformation with a view to redress. Such transformation includes not only abolishing all existing forms of unjust differentiation, but also measures of empowerment to bring about equal opportunity for individuals and institutions.
Democratisation
1.16 The principle of democratisation requires that governance of the system of higher education and of individual institutions should be participatory. Structures and procedures should ensure that those affected by decisions have a say in making them. It requires that decision-making processes are transparent, and that those taking and implementing decisions are accountable for the manner in which they perform their duties and use resources.
Diversity
1.17 The principle of diversity is important in enabling choice and in developing responsiveness to varying needs and circumstances. A co-ordinated national system of higher education does not imply uniformity. Rather, the Ministry wishes to see institutions developing distinctive missions and being innovative in teaching, research and the delivery of services.
Development
1.18 The principle of development means that conditions must be created to facilitate the adaptation and improvement of the higher education system to enable it to contribute to the common good of society through the production and application of knowledge, the building of human capacity, and the provision of lifelong learning opportunities.
Quality
1.19 The pursuit of the principle of quality means maintaining and applying academic and educational standards, both in the sense of specific expectations and requirements that should be complied with and in the sense of ideals of excellence that should be aimed at. These expectations and ideals can differ from context to context, partly depending on the specific purposes pursued. Applying the principle of quality entails evaluating services and products against set standards, with a view to improvement, renewal or progress.
Effectiveness and efficiency
1.20 The principles of effectiveness and efficiency are related though distinct. An effective system or institution functions in such a way that it leads to desired outcomes or achieves desired objectives. It does the right things in terms of a given framework of expectations. An efficient system or institution is one which works well, without unnecessary duplication or waste, and within the bounds of affordability and sustainability. It does things correctly in terms of making optimal use of available means.
Academic freedom and institutional autonomy
1.21 The principles of academic freedom and institutional autonomy are related though distinct. Academic freedom implies the absence of outside interference, censure or obstacles in the pursuit and practice of academic work. It is regarded as a precondition for critical, experimental and creative thought and therefore for the advancement of intellectual inquiry and knowledge. Institutional autonomy refers to a high degree of self regulation and administrative independence with respect to student admissions, curriculum, methods of teaching and assessment, research, establishment of academic regulations and the internal management of resources generated from private and public sources.
Public accountability
1.22 The principle of public accountability bears upon decision-making, the spending of funds and the achievement of results. Firstly, it requires that individuals or institutions should demonstrate responsible actions to one or more constituencies. Secondly, it requires that individuals or institutions receiving public funds should be able to report how, and how well, money has been spent. Thirdly, it requires that institutions should demonstrate the results they achieve with the resources at their disposal.
2.1 The Ministry believes that if the legacy of the past is to be overcome and the challenges of reconstruction and development addressed, the higher education system must be planned, governed and funded as a single national coordinated system.
2.2 The single coordinated system will be predicated on a programme-based (as opposed to institution-based) definition of higher education consisting of:
All learning programmes leading to qualifications higher than the proposed Further Education Certificate or the current Standard 10 certificate.
This recognises that the provision of higher education can and does take place in a multiplicity of institutions, sites and media.
2.3 A higher education system that is planned, governed and funded as a single, coherent national system will:
2.4 There is a need for the expansion of the higher education system if it is to meet the imperatives of equity, redress and development. This will require expanding enrolments to accommodate increased student demand and to cater for a far more diverse student body, including mature students in pursuit of multi-skilling and reskilling in the context of lifelong learning. It will also require diversifying the mix of institutional missions and the range of programmes to address the skills needs which are critical to social and economic development.
2.5 The Ministry is committed to the expansion of the system and believes that the twin goals of equity and development can be achieved through:
2.6 The focus on science, engineering and technology programmes is necessary to correct present imbalances, in particular, the shortage of trained personnel in these fields. However, the expansion and growth of programmes in science, engineering and technology will not occur at the expense of programmes in the social sciences and humanities. Aside from the fact that the social sciences and humanities contribute to knowledge production, in particular, to the understanding of social and human development, they also play an important role in career-oriented training in a range of fields such as education, law, private and public sector management, social development and the arts. In addition, in the context of the communications and information revolution, the social sciences and humanities must contribute to the development of the analytic, intellectual, cultural and ethical skills and competencies necessary for participation in the knowledge society.
2.7 The expansion of the higher education system must be responsibly managed and planned on the basis of affordability and sustainability. The Council on Higher Education will be expected to advise the Ministry on the development of a three-year rolling national higher education plan which will establish indicative targets for the size and shape of the system, overall growth and participation rates and institutional and programme mixes.
2.8 The development of three-year rolling institutional plans will be a key element in the planning process. The institutional plans will include institutional missions, including programme mixes and enrolment levels, race and gender equity targets and developmental plans for new programmes. They will also include plans for academic development, research development and infrastructural development.
Equity and redress
2.9 The Ministry's commitment to changing the composition of the student body will be effected through the targeted redistribution of the public subsidy to higher education. The relative proportion of public funding used to support academically able but disadvantaged students must be increased.
2.10 In addition, in the present context of limited real growth in public expenditure, making progress in achieving equity and redress goals will require institutions, in turn, to mobilise greater private resources as well as to reallocate their operating grants internally. This is already happening at many institutions in response to the recent rapid increases in Black student enrolments.
2.11 The Ministry will require institutions to develop their own equity goals and plans for achieving them. In formulating equity targets, institutions should employ indicative targets for distributing publicly subsidised places rather than apply firm quotas.
2.12 Ensuring equity of access must be complemented by a concern for equity of outcomes. Increased access must not lead to a 'revolving door' syndrome for Black students, with high failure and drop-out rates. In this respect, the Ministry is committed to ensuring that public funds earmarked for achieving redress and equity must be linked to measurable progress toward improving quality and reducing the high drop-out and repetition rates.
2.13 This highlights the need to attend to the articulation gap between the demands of higher education programmes and the preparedness of school leavers for academic study. The chronic under funding of Black education during the apartheid era has had deleterious effects on the preparedness of talented Black students for higher education. The Government has launched an ambitious programme to transform the school system in the medium to long term intended to remedy the previous deficiencies and to improve the quality of school education.
2.14 In the short term, the higher education system is required to respond systematically to the articulation gap to improve equity of outcomes. The Ministry believes that this requires change at the institutional level with respect to learning, teaching, curriculum and the structure of degree and diploma programmes. It also requires the development and provision of student support services, including career guidance, counselling and financial aid.
2.15 The institutional level changes should be underpinned through establishing and strengthening academic development structures at all higher education institutions to promote quality teaching and learning through staff, curriculum and materials development. In addition, the shift in academic development from a narrow focus on access and bridging courses to integrating academic development approaches in mainstream programmes should be supported.
2.16 The Ministry will ensure that academic development programmes and extended curricula which enhance student access by providing a sound foundation of knowledge, concepts and academic skills as a basis for further study, are funded through the new funding formula for higher education. Such programmes will be given due weight and status as integral elements of a higher education system committed to improving the quality of learning and teaching.
2.17 The Ministry, in conjunction with the CHE, will initiate a thorough review of the structure and duration of all degree, diploma and certificate programmes to ensure a more appropriate fit between the school and higher education systems.
INSTITUTIONAL RESTRUCTURING AND DIVERSIFICATION
2.18 The key challenge in relation to the organisational form and institutional landscape of a single coordinated system is to ensure diversity and to offset pressures for homogenisation.
2.19 The programme-based approach through ensuring greater articulation between the different tiers of the higher education system, promoting flexibility and diversification in the range of programmes offered and fostering cooperation between institutions will result in structural changes and a reconfiguration of the institutional landscape in the medium to long-term.
2.20 In this regard, the Ministry seeks to encourage the development of regional consortia and partnerships involving a range of institutions in the development and delivery of programmes that have emerged recently. This will reduce overlap and duplication in programme provision; help build academic and administrative capacity in Historically Black Institutions (HBIs), refocus the institutional culture and missions of Historically White Institutions (HWIs), and enhance responsiveness to regional and national needs. The real import of such regional collaboration is that insofar as it transcends the current divides in the system, it is a potential harbinger of new institutional and organisational forms.
2.21 The Ministry will provide incentives to encourage and facilitate regional planning and coordination.
2.22 In addition, the Ministry believes that it is necessary to assess the optimal number and type of institutions needed to meet the goals of a transformed higher education system. There are many institutions which either require consolidation or retooling for new missions and goals, and narrow self-interest cannot be allowed to preclude planning which may lead to institutional mergers and closures and the development of new institutional forms where these are necessary. The new governance and planning systems will enable the Ministry to take purposeful decisions in this regard after the necessary investigations and consultations.
The college sector
2.23 The Ministry is committed to developing a large, efficient and viable college sector which is polytechnic in nature - offering a range of programmes across the full spectrum of the education and training system, and characterised by excellence in teaching and scholarship.
2.24 The expansion of the college sector will not only increase access to higher education through offering higher education programmes in targeted fields, in particular, access and foundation programmes, but will also encourage career-oriented training that is more relevant to the changing structure of employment. In addition, the flexibility provided by the NQF will ensure that students choosing the college route will not be precluded from pursuing more advanced study leading to degrees.
2.25 In terms of the constitutional provision (Schedule 4 of the Constitution of the Republic of South Africa, 1996, Act No. 108) that tertiary education is a national competence, the Ministry is advised that all colleges which offer higher education programmes such as colleges of education, nursing and agriculture, fall under the jurisdiction of the Ministry of Education and will be planned, governed and funded as part of the single coordinated higher education system.
2.26 In the case of those colleges such as technical colleges which primarily offer post-compulsory education programmes, these constitute part of the core of the proposed further education sector whose institutional configuration, governance, funding and programme base is presently under investigation by the National Committee on Further Education. They presently offer, and will continue in the future to offer, higher education programmes in targeted fields which will be planned and funded as part of the higher education system.
2.27 It is not necessary to transfer immediately all colleges which offer higher education programmes from other ministries to the Ministry of Education. In the interim, they will continue to be administered, controlled and funded by the departments under whose jurisdiction they presently fall. This will ensure stability while their future location is decided. The Ministry has opened discussions with the affected line ministries at both the national and provincial levels and will institute a comprehensive review of the college sector to determine their future role and location.
2.28 The Minister of Education will, however, discharge his constitutional responsibility to determine and monitor national policy with regard to all colleges that offer higher education programmes, and in particular to ensure that the necessary accreditation and quality assurance mechanisms are in place.
2.29 In the case of colleges of education, these are now a national competence and their transfer to the national level is the subject of preliminary discussions with the provincial ministries. The Ministry will establish a Task Team under the auspices of the Heads of Education Departments Committee (HEDCOM) to take this matter forward.
2.30 The Ministry is committed to ensuring that the integration of colleges of education into the higher education system will allow a range of organisational models to evolve based on regional and national needs.
Private institutions
2.31 There is a relatively well-developed private higher education sector in South Africa offering programmes under franchise from professional institutes or from local and international universities and in some cases, under their own auspices.
2.32 The Ministry believes that private provision should be encouraged as part of a broader policy to increase access and labour market responsiveness, as well as to stimulate quality improvement. The key challenge in expanding the role of private institutions is to create an environment which neither suffocates educationally sound and sustainable private institutions with state over-regulation, nor allows a plethora of poor quality, unsustainable 'fly by night' operators into the higher education market.
2.33 The Draft Higher Education Bill establishes a regulatory framework to ensure that private institutions providing higher education programmes have the necessary infrastructure and resources to provide quality programmes that are sustainable and to encourage them to offer programmes accredited through procedures established by the South African Qualifications Authority (SAQA) as part of the NQF.
DISTANCE EDUCATION AND RESOURCE-BASED LEARNING
2.34 The Ministry believes that distance education based on the principles of open learning and resource-based learning, has a crucial role to play in meeting the challenge of greater access and enhanced quality in a context of resource constraints and a diverse student body. It enables learning to take place in different contexts, at a multiplicity of sites, through a variety of mechanisms and learning and teaching approaches.
2.35 In addition, it also results in the quality and success of teaching not being dependent upon staff levels rising in tandem with increased enrolments, and it makes better use of physical and human resources.
2.36 Distance and resource-based learning are well placed for expansion given the current distance/correspondence infrastructure in both the public and private sectors. However, the Ministry is concerned about the efficiency, appropriateness and effectiveness of much current distance education provision.
2.37 The Ministry supports the development of a national network of regional centres of innovation in course design and development as this would enable the development and franchising of well-designed, quality and cost-effective learning resources and courses building on the expertise and experience of top quality educators in different parts of the country.
2.38 The Ministry will also encourage contact and distance education institutions to provide effective learning environments on a continuum of educational provision in which contact, distance, mixed-mode and dual-mode educational opportunities are in principle available to all learners. This development, together with a regional network of learning centres, will not only broaden access, but also facilitate and enhance quality education especially in rural areas and less well-endowed institutions.
2.39 The Ministry recognises that if distance education is to fulfill its potential for integrating lifelong learning into the basic shape and structure of higher education, the viability of establishing a coherent framework for distance education and resource-based learning needs to be investigated, including a comprehensive audit of existing distance education institutions and programmes. The Ministry will, in collaboration with the CHE, institute a Task Team to undertake this investigation.
2.40 The Ministry will also promote, via its proposed technology enhanced learning initiative (TELI) a cost-effective and co-ordinated method of developing a nation-wide infrastructure to support the introduction and use of appropriate technologies in higher education, and in particular to underpin the enhanced role of distance education and resource-based learning.
A QUALIFICATIONS FRAMEWORK FOR HIGHER EDUCATION
2.41 The establishment of SAQA with the full and active participation of higher education providers is a milestone and puts the evolution of the NQF in South Africa in the forefront of such systems world-wide.
2.42 The precise modalities of integrating higher education qualifications into the NQF, that is, through unit standards or whole qualifications or otherwise, are being analysed and discussed within the higher education sector and SAQA structures.
A QUALITY ASSURANCE SYSTEM FOR HIGHER EDUCATION
2.43 The Ministry considers that the primary responsibility for quality assurance rests with higher education institutions. However, there is a role for an umbrella national quality promotion and assurance authority within the sector.
2.44 Accordingly, the Draft Higher Education Bill provides for the coordination of quality assurance in higher education through a Higher Education Quality Committee (HEQC) which will be established as a permanent committee of the CHE. The establishment of the HEQC, its registration with SAQA and its modus operandi will be determined by the CHE within the framework and procedural guidelines developed by SAQA..
2.45 The functions of the HEQC will include programme accreditation and institutional auditing. It should operate within an agreed framework underpinned by:
ADMISSION AND SELECTION PROCEDURES
2.46 The Ministry is committed to ensuring that:
2.47 The Ministry recognises that establishing a national service of this sort will pose considerable problems of design and implementation, and it is therefore unlikely to be in operation in the short term. Accordingly, the Ministry favours regional initiatives that will serve as pilot programmes for a national service.
2.48 In the period prior to the full operationalisation of the NQF and the introduction of the FEC, the existing matriculation requirements will remain in force.
EXPANSION, COSTS AND RESOURCES
2.49 The transformation of the higher education system to meet growth, equity and quality objectives will involve additional costs. The obvious question is: how are these costs to be met when significant real increases in public expenditure on higher education are unlikely to greatly exceed the real rate of economic growth?
2.50 The Department is presently engaged in detailed analyses of costs and financing options. However, it seems clear that neither the more efficient use of public funds nor increasing the flow of private financing are likely in the short term to generate the resources that will be required to increase access and improve quality and efficiency, especially in the historically disadvantaged institutions. A radical shift in budgetary distribution to address the restructuring priorities will result in an unacceptably sharp reduction in operating funds in some institutions and could damage their long-term sustainability.
2.51 Consequently, additional resources will need to be mobilised to facilitate the implementation of the transformation strategy.
2.52 In addition, there is substantial scope to improve the internal efficiency of the higher education system but this will not necessarily lead to savings in the short term. Internal measures include, for example:
2.53 The Ministry believes that there is a case to be made for maintaining the current levels of public expenditure on higher education as a proportion of GDP. As economic growth rates rise this would result in significant real increases in expenditure. This is necessary if the goals of expansion, transformation and redress are to be met.
2.54 While it is possible to achieve rapid enrolment growth without extra expenditure, the penalties for doing so are harsh. In Africa and other developing regions, expansion without new investment has resulted in overcrowded facilities, low morale of academic staff, poor quality programmes, a fall in research output and quality, and, ultimately, a loss of confidence by students, employers and funders in the devalued products of higher education .
2.55 Despite national fiscal constraints, and the government's commitment to fiscal discipline, the central role of higher education in developing high-level skills and competencies essential for social and economic development requires sustained financial investment in the higher education system.
3.1. The Ministry adopts a model of cooperative governance for higher education in South Africa which is grounded in the context of autonomous institutions working cooperatively with a proactive government and in a range of partnerships. Academic freedom and institutional autonomy are key conditions for a vibrant higher education system. Both will be exercised within the new configuration of functions and responsibilities provided by the proposed model of governance.
3.2 Cooperative governance assumes a proactive, guiding and constructive role for government. It also assumes a co-operative relationship between the state and higher education institutions. One implication of this is, for example, that institutional autonomy is to be exercised in tandem with public accountability. Another is that the Ministry's oversight role does not involve responsibility for the micro-management of institutions. The Ministry will drive the transformation of the higher education system through policies and strategies that are guided by this view of the role of the government and its relationship to institutions of higher education.
3.3 The White Paper on Education and Training of 1995 affirmed the Ministry's commitment to uphold 'both the tradition and the legal basis of autonomous governance' of higher education institutions. The Ministry reaffirms its commitment to the principles of academic freedom and institutional autonomy within the framework of public accountability as fundamental tenets of higher education.
3.4 To give effect to the transformation of higher education the Ministry will establish a Council on Higher Education (CHE), enhance the capacity of the Higher Education Branch of the Ministry and enable reform of the governing structures of higher education institutions. The overall purpose of these measures is to provide opportunities for organised constituencies to express their concerns and to organise their behaviour for the common good.
The Council on Higher Education
3.5 The Council on Higher Education will be a statutory body to provide independent, strategic advice to the Minister of Education on matters relating to the development of higher education in South Africa.
3.6 The CHE will be supported by its own professional secretariat and control its own operating budget. The secretariat will be headed by the Executive Officer to the CHE. The legislative provisions will allow the CHE to undertake work on its own volition as well as to respond to references given to it by the Minister.
3.7 The membership of the CHE will reflect a balance of stakeholder interests and expertise on the basis of knowledge and understanding of higher education issues.
3.8 The membership will comprise:
3.9 The CHE will establish an Executive Committee comprising the Chairperson and four other members. The Executive Committee will guide the Chairperson and the Executive Officer of the CHE on the day-to-day performance of the functions of the Councils.
3.10 The CHE will be required to provide relevant, timely and independent advice on matters concerning the condition and development of higher education. The Minister will receive advice on any other matters that the CHE deems necessary to advise about and specific matters referred by the Minister from time to time. The Ministry will be looking to the Council to play a leading strategic role in the envisaged transformation of the system, consistent with the vision and goals set out in Chapter 1.
3.11 The Minister will consult the CHE on matters involving major changes to the policy framework affecting the development of the higher education system, such as policy regarding public and private financing and provision, the level and distribution of public subsidies to higher education, forms of student financial assistance, and policy affecting the development of the higher education sub sectors. The CHE will be responsible for advising the Minister on:
3.12 The CHE will be required to prepare annually a report to the Minister on the overall condition of the higher education system. This report will be tabled by the Minister in Parliament and made publicly available at an annual consultative conference of higher education stakeholders which will be convened by the Minister and the CHE in order to discuss the health of the system or of a particular sector of higher education.
3.13 The Minister will be obliged to take the advice of the CHE into account and, under normal circumstances provide reasons in writing if he or she does not accept its advice.
3.14 The CHE will be responsible for quality assurance and promotion and will seek delegated authority from SAQA to be responsible for quality assurance and accreditation for the higher education system. (See 2.43 and 2.44 above.) The CHE will make the arrangements it deems appropriate to operate within the policy framework and procedural guidelines established by SAQA.
The Higher Education Branch of the Department of Education
3.15 The Ministry has established a new Higher Education Branch of the Department of Education headed by a Deputy Director-General. The relevant functions of the Department regarding policy development and planning, resource allocation and financing, information collection and analysis, and monitoring and reporting on higher education, have been consolidated in the Branch, supported by other branches of the Department of Education. The Branch will augment its resources by contracting out as well as by the use of secondments from the higher education sector.
3.16 With regard to the objectives of transformation, the Branch in collaboration with other branches in the Department has the following main responsibilities:
3.17 The Higher Education Branch and the Council on Higher Education will cooperate in undertaking their respective functions, sharing information and jointly participating in meetings and on projects as appropriate. The Higher Education Branch will also be actively involved in inter-departmental activities that work to improve the coherence of the Government's overall approach to social and economic development, including culture, arts, science and technology, research and development, labour supply and skills formation, health and social justice.
3.18 It is the responsibility of higher education institutions to manage their own affairs. The Ministry has no responsibility or wish to micro-manage institutions. Nor is it desirable for the Ministry to be too prescriptive in the regulatory frameworks it establishes. Diversity and flexibility are important aspects of institutional responses to varying needs and circumstances.
3.19 The Ministry supports and encourages the establishment of Broad Transformation Forums (BTFs) of institutional stakeholders as interim advisory bodies for restructuring and transformation. The composition, functions and procedures of such forums would vary according to the needs and circumstances of institutions. Where BTFs are not opted for, the Ministry strongly encourages the establishment of alternative stakeholder transformation structures.
3.20 Councils are the highest decision-making bodies of public institutions. They are responsible for the good order and governance of institutions and for their mission, financial position, performance, quality and reputation. The Ministry supports and encourages the ongoing process of institutional reviews of the composition and representativeness of councils. However, the Ministry believes that agreement on codes of conduct and dispute resolution procedures merit urgent and early action where these have not yet been established.
3.21 To sustain public confidence, councils should include a majority of at least 60% of members external to the institution. Councils ought not to be involved in the day-to-day management of institutions as that is the responsibility of their executive management, led by the Principal, who in turn is accountable to the Council. The Ministry encourages the meaningful involvement of students and staff in all permanent governance structures of the institutions including Councils. Their participation in the Broad Transformation Forum is not a substitute for membership and responsible participation in other formal governance structures of the institutions.
3.22 Consistent with the Ministry's responsibility to ensure accountability for the use of public resources and having regard to the reputation of the higher education system, the Minister will have the legal right to seek independent assessments and advice on the condition of a higher education institution when circumstances arise in an institution or institutions which warrant investigation in terms of the procedures prescribed by the Draft Higher Education Bill. An Independent Assessor will be appointed by the Minister. The CHE will prepare a panel of independent assessors from which the Minister will choose. The right to send an assessor to an institution may be exercised where the Council of an institution so requests or in exceptional circumstances that involve financial or other maladministration of a serious nature or which are seriously detrimental to the effective functioning of the institution. An independent Assessor will report to the Minister within 30 days of appointment. The report will be made available to the Council of the institution.
PUBLIC EXPENDITURE ON HIGHER EDUCATION IN SOUTH AFRICA
4.1 South Africa's present level of public expenditure on higher education is rather high by international standards and has been growing at a somewhat faster real rate than in many other countries. It is unlikely that the recent trend of public expenditure growth rates in this sector can be sustained over the next decade, given other pressing social needs. However, given projected national economic growth estimates, there would be significant real expenditure increases if current levels of public and private spending on higher education as a proportion of GDP were maintained.
4.2 Substantial additional costs are associated with greater student participation, redress of current inequities, and the restructuring of existing programmes. These costs will have to be met from a strategic mix of funding sources. These will include a greater volume of private contributions, system and institutional efficiencies, and increased, redistributed and tightly targeted public sector outlays.
4.3 Free higher education for students is not an affordable or sustainable option for South Africa. The knowledge and skills acquired in the course of achieving higher education qualifications generate significant lifetime private benefits for successful students as well as long-range social benefits for the public at large. Moreover, students from middle-class and wealthy families tend to be disproportionately well-represented in higher education institutions. Accordingly, the costs of higher education should be shared equitably between public and private beneficiaries.
4.4 It is important, however, that the direct cost to students should be proportionate to their ability to pay. As the profile of student enrolment becomes increasingly representative of the general population, the proportion of eligible students from poor families is rising steeply. Financial need should not be an insuperable barrier to access and success in higher education. A realistic fee structure must therefore go hand-in-hand with a sustainable programme of student financial assistance. This is discussed in more detail at para. 4.31 below.
4.5 The strategy for improving the financing of higher education focuses on mechanisms that advance the goals of increased equity in access and outcomes, improved quality and , and more purposeful linkage between higher education activities and national and regional development needs. The goal is not to attempt to homogenise the higher education system through the funding framework. Diversity of mission, programmes and clientele is an essential feature of a thriving, integrated system. Purposeful and equitable variety in the system will be supported by the funding framework
4.6 The Ministry will adopt goal-oriented incentives as an integral part of the public funding framework. That is, explicit incentives will be used to steer the development of the higher education system in accordance with national goals. This approach will be complemented by harnessing more private resources for higher education through, for example, various forms of employer contributions, bequests and donations, better management of institutional investments, contracts and consultancies, and an expansion of properly-regulated private higher education programmes and institutions.
GOAL-ORIENTED, PERFORMANCE-RELATED PUBLIC FUNDING
4.7 The new public funding framework must be equitable, widely acceptable within the sector, and promote excellence. Over the next several years, the Ministry will establish such a framework. characterised by the following criteria:
The Ministry does not expect to depart significantly from the main approach and essential funding principles established in this chapter, but they are open to improvement and modification on the basis of experience and advice, including advice from the CHE.
4.8 Goal-oriented public funding of higher education institutions is intended to result in:
4.9 The new public funding framework will have two main elements:
4.10 The subsidy formulae for universities and technikons currently determine on average about 85% of the public funding of these institutions. The remainder comprises funds for capital works, loan servicing and other ad hoc property-related charges, and the allocation of student financial aid. The Ministry is conscious of the need for institutions to obtain an adequate level of core funding to sustain their operations. However, it is evident that the current 15% share of funds provided through non-formula funding is too low to address urgent needs and to lay the foundations of a transformed system.
4.11 The Ministry therefore intends to increase the proportion of available funds for earmarked funding for each of the budget years 1998, 1999 and 2000. For instance, the level of funding provided for student financial assistance will need to rise. A targeted programme of institutional redress is also required. Several institutions have a backlog of buildings, overcrowded residences, poorly resourced libraries, inadequate information technology and other similarly quantifiable deficiencies. A redress programme must be linked with institutional performance improvement plans and outcomes so that internal inefficiencies are not funded by the programme. Earmarked funds are also needed to drive programme-related capital development, research capacity building, postgraduate development, and information technology development.
4.12 Since earmarked funds will include funds for some areas which are currently included in formula-driven subsidies, some reduction in subsidies, or block operating grants, will be required in order to shift resources to the earmarked components. This internal redistribution supplemented by funds from the budget together with external financial support will enable additional funds for earmarked purposes to be allocated. The distribution of earmarked funds among institutions will reflect both need and performance. The new framework does not decrease the total public funding to the sector but distributes it differently. Thus the new allocation system will make the familiar calculation of a-values (or subsidy levels) redundant. The Ministry intends to terminate the use of this indicator.
4.13 The new public higher education funding framework will require goal-oriented planning at the institutional as well as at system levels. The Ministry will progressively devise and introduce a new formula for block operating grants to institutions to support their teaching and related recurrent costs. These block grants will be payable to institutions on the basis of their planned (full-time equivalent or FTE) enrolments in different fields and levels of study.
4.14 In the context of its broader public administration reforms, in particular its medium-term economic framework and new three-year budget planning, the Ministry intends to start publishing, as soon as the necessary systems are in place within the Department of Education and higher education institutions, three-year forward estimates of budget outlays by programme each fiscal year. The Minister of Education, accordingly, will issue an annual statement in the budget context that provides the estimated level of block grant funding to each higher education institution for each of the next three academic years.
4.15 Triennial plans of institutions will report all their planned FTE enrolments, whether supported by public subsidy or not. The plans will show the fields and levels of study in which institutions plan to expand or contract their enrolments according to their missions and goals and in response to changing demands.
4.16 Funding for an agreed number of publicly subsidised FTE enrolments will be announced three years in advance in order to give institutions a predictable basis for planning. The Ministry of Education will negotiate the number of publicly subsidised FTE places with institutions each year in respect of the following three years of the rolling triennium. Negotiations will take account of publicly available student demand estimates and long range labour market signals on the one hand, and institutional capacity and performance on the other hand.
4.17 Institutions will be able to enrol students in addition to the agreed number of publicly subsidised FTE student places, but they must be able to do so from funds raised by themselves, not from the government. Failure to meet FTE enrolment planning targets will make an institution liable to forfeit equivalent funds by way of reductions to its operating grants according to a publicly known procedure.
4.18 To maximise the flexibility of institutions under the new arrangements, the Government will allow institutions to determine their own tuition prices in respect of the fees they charge for subsidised student places as well as for student places outside the publicly funded quota. The basis on which fee levels are established must be transparent and subject to proper scrutiny within the institution, and must satisfy reasonable equity criteria.
4.19 Government funding rates per FTE student place will vary according to the broad field of study and level of study but will be standard for all institutions. They will be based on index-linked estimates of the relative costs of teaching. Prices per student place at research-based levels of postgraduate training, for instance, will include the costs of research supervision, infrastructure and consumables integral to research. Research projects will continue to be funded separately by the National Research Foundation on a competitive peer review basis.
4.20 The establishment of a 'funding grid' of rand values against broad fields of study and levels of study requires analysis of the indicative average costs of such teaching and related activities by broad fields and levels of study. These must have academic integrity and represent real cost differences. Prices can then be set for each cell in the grid. These matters, and the relationship between fields and levels of study and the NQF and South African Post Secondary Education (SAPSE) categories, will be referred to the Council on Higher Education for early advice.
4.21 The Ministry has considered the possible inclusion of student completions and research publications in the funding grid. While there is a need to improve institutional efficiency and effectiveness, and recognise scholarly productivity, the inclusion of those variables is inappropriate at this time given the different apartheid legacies of existing institutions and the need to adopt a forward-looking approach. In view of the wide variations in need and capacity, as well as the policy objective of encouraging diversity and quality improvement within the system, the Ministry will base its negotiations with institutions on their academic plans and on the progress they are making towards achieving the performance improvement targets outlined in their strategic plans. Student progression, graduation rates and research outputs will be monitored in that context. (Financial support for research capacity is discussed at paras. 4.23, 4.43 and 4.45 below.) Regard will also be given to the assessments of quality provided by the Council on Higher Education.
4.22 The Ministry also recognises the considerable cost differentials between teaching students from inadequate educational backgrounds and teaching students from advantaged backgrounds. The Ministry accepts that foundation and extended programs should be incorporated in the funding grid as a level of study. However, incentives to encourage institutional success in improving the progression and graduation of students from disadvantaged backgrounds will be provided on a performance basis through earmarked funding. This approach is consistent with the maintenance of a simple and transparent funding system.
4.23 The Government adopts a policy of concentration and selectivity in the funding of research and research training. Negotiations on the number of places to be publicly funded at the research masters and doctoral levels will be informed by performance indicators of research capacity, competitive success and output by faculty. The Ministry will support and assist the expansion of postgraduate training in those parts of institutions (historically advantaged and historically disadvantaged alike) where there is demonstrable strength. In addition, earmarked funding will be applied to research capability development (para. 4.43), and postgraduate training in selected departments at the historically disadvantaged institutions where the research track record has been thin but where there is demonstrable potential to develop and sustain research capacity (para. 4.45).
4.24 In preparing for the introduction of the new funding formula, it is necessary to assess the extent of disparities in the current distribution of public recurrent funds among institutions. Preliminary analysis in the Department indicates that such disparities are widespread and, in many cases, extreme. Further work will involve notionally applying the new funding norms against the present profile of student enrolments and identifying aggregate variations among institutions. Where redistribution is necessary to level the field for future formula-based allocation of block grants, a combination of measures, including adjustments to the number of publicly funded places and/or top-up allocations to relatively underfunded institutions, will be applied over the medium term.
4.25 Funding formulae cannot take account of all the differences between institutions without becoming too complex and unwieldy. Nor do funding formulae lend themselves to accommodating particular needs, especially if such needs are expected to fluctuate or diminish over time. The mechanism of earmarked funding, however, readily lends itself to meeting specific and often short-term needs, and is therefore the second major component of the proposed new public funding framework.
Earmarked funds for institutional redress
4.26 There will be a programme of targeted funding to redress inequities and deficiencies experienced in particular by historically disadvantaged institutions. The function of the redress programme is to target specific needs related to access and capacity which derive from the educational deficits and other forms of deliberate disadvantage suffered by learners or institutions as a result of past government policies. As a mechanism to aid the development of institutions or programmes, it will in time become superseded by the goal-oriented subsidy process and by other categories of earmarked funding.
4.27 Institutions applying for funding under the redress programme will be required to document the specific needs for which the funds will provide relief or a remedy, and the planned outcomes. For each project for which funding is sought, institutions will need to indicate the measures they will use to evaluate their success in applying the funds to achieve stated outcomes.
4.28 Funds provided through this programme will be available to support improvements in the following areas: staff development, academic development, curriculum development, library holdings, student amenities, buildings and the development of institutional capacity.
4.29 The Ministry will conduct an audit of those institutions eligible for funding through this programme in the 1998-2000 triennium. The audit will be undertaken to establish benchmarks for comparing the relative disadvantages of institutions and reference points for monitoring progress in ameliorating deficiencies. Institutions will be required to produce:
The audit will produce:
4.30 The allocation of earmarked funds for redress purposes will be based on the needs identified in the institutional audits, the performance improvement plans of institutions and the following criteria:
Earmarked funds for student financial aid
4.31 The Ministry endorses an approach to higher education funding based on a sharing of costs between private beneficiaries (students) and the State, representing the public interest. At the same time the Ministry is aware that there are severe limits on the capacity of many students and their families to pay, particularly first generation students from poor families. To ensure that capable students are not excluded from access to higher education because of their financial means, it is essential to have in place a well functioning student financial aid scheme.
4.32 An adequate and effective programme of financial assistance for students is an essential condition of a transformed, equitable higher education system, operating on businesslike principles in a stable financial environment. Student financial aid is not an optional extra for a viable modern higher education system, but an integral part of the public and private investment in the nation's high-level human resource development. It must therefore be planned and managed professionally, and with an appropriate mechanism for accountability. Neither is student financial aid a substitute for responsible self-help by students, but a valid form of supplementary support, especially for the majority of young South Africans whose family support-systems can bear only a fraction of the cost of current higher education programmes. A sustainable system must be based on transparent and defensible criteria for eligibility, built-in incentives to encourage disciplined effort, rewards for academic success, and sanctions against failure or default.
4.33 The Department of Education has benefited by the extensive analysis and consultation on this matter which was undertaken by the National Commission on Higher Education, the advice of the group of eminent business and academic leaders appointed by the Minister to assist him to mobilise domestic and external support, and reports on current provision and future options.
4.34 It is now clear beyond doubt that the idea of a single, capitalised public endowment or trust fund, whose proceeds would support annual disbursements and which would be replenished (or even become self-supporting) through loan repayments, is not viable and cannot be supported by the government. The initial capitalisation required would be far too great for the state to contemplate. Actuarial estimates indicate that such a fund, if established, could not be self-sustaining but would require massive periodic recapitalisation if insolvency were to be avoided. That option is therefore off the table.
4.35 The Department of Education, in co-operation with the Department of Finance, is now focusing its attention on the alternative of a public fund similar in concept to the present scheme, based on planned annual budgetary allocations made in terms of the three-year rolling budget framework. The scale of the annual allocations needs to be computed on the basis of far better data and projections of student needs than are currently available, and must be linked to the total goal-generated public subsidy to higher education institutions. The Department is currently working on such projections.
4.36 The financial aid offices of higher education institutions, rather than a central funding agency, are best placed to identify those students who most need assistance and will benefit most from it, in terms of publicly known and reasonably uniform criteria. Allocations to institutions by the funding agency from the earmarked fund for student financial aid will need to be based on the equity profiles of institutional enrolments and have regard to their student progression and graduation rates.
4.37 A significant proportion of student financial assistance currently flows into institutional revenues as fee payments. The inter-relationship of the scale of student assistance per institution, the level of fee tariffs, the financial health and (in some cases) the viability and social stability of an institution, argue for an increase in the volume of student financial assistance from public funds.
4.38 The Ministry of Education bears no liability for debts contracted between students and their institutions or funding agencies, but accepts that a study of the scope and dynamic of student debt in relation to institutional debt and liquidity has become necessary. The Department of Education will therefore build this element into its investigation of student finance.
4.39 Annual budgetary allocations are only one element in a complex equation, and the Ministry accepts that a multifaceted approach to student financial aid is essential. A sustainable long-term scheme will include loans, scholarships, work-study agreements and other initiatives. The most suitable mechanism of collecting loan repayments is still under examination. Not enough is known about the current scale of privately-funded sponsorships and bursary programmes, both domestic and from external sources, or of student loans financed by the commercial banking sector for those who can provide the required security and are prepared to contemplate the terms of repayment. With a well considered advocacy and marketing approach, the scale of private sector investment in higher education students through loans, bursaries and sponsorships might well increase substantially.
4.40 The Department's studies, which will underpin the policies discussed in this section, are expected to be completed during 1997 or early 1998. Until an amended or a substitute scheme is in place, the Ministry will continue to operate the National Student Financial Aid Scheme (NSFAS), and has reappointed the Tertiary Education Fund of South Africa (TEFSA) to administer the allocation of loans and bursaries from government and donor funds. TEFSA operates under a Board which is extensively representative of stakeholder interests, and has achieved significant expertise in the administration of student assistance, as well as in institutional capacity-building. Without preempting the shape of the new system, the Department expects to draw on the experience of the TEFSA Board and its professional staff in developing its proposals for the future NSFAS.
Earmarked funds for other specific purposes
4.41 In addition to funding for redress and student financial aid, there is a need to encourage innovation and adaptation, and to build capacity in new areas. Institutions applying for funds through this programme will be required to relate their submissions to their strategic plans.
4.42 For the triennium 1998-2000, funding through this programme will focus on four specific purposes: research capability development, postgraduate training, capital works and management information systems development.
4.43 Research capability development. The development of research capability in South Africa's higher education institutions is of fundamental importance to national self-reliance. However, good scholarship (which should characterise all higher education academic staff) is not the same as research competence (which a minority of academic staff in the sector as a whole will either need or possess). While individual excellence in teaching is often assisted by and associated with an active research portfolio, it is not dependent on research experience. This is particularly, but not exclusively the case in the college sector of higher education, where good teaching is particularly important but research is not a common part of the college mission.
4.44 In view of the national strategic importance of research, and in order to ensure that the relatively scarce funds available for the development of research capability are well targeted, public funds for participation in research, whether basic or applied, should not be spread across all faculties or schools in all institutions but should rather be concentrated in those areas where there is demonstrable research capacity or potential. To give practical effect to this view, the Ministry will provide earmarked funds:
4.45 The Ministry recognises the need for the co-ordination of research activities and their funding in higher education. The White Paper on Science and Technology, in particular, the National System of Innovation, provides a framework for the development of a national research plan. The Ministry will engage with the Department of Arts, Culture, Science and Technology and the proposed National Research Foundation (NRF) on developing collaborative mechanisms in this regard.
4.46 Postgraduate training. The Government recognises the urgent need to increase the supply of postgraduates to the academic and general labour markets. The attrition and aging of well-qualified academic staff and the emigration of graduate labour compels attention. Current low levels of enrolment in and graduation from doctoral programmes are insufficient to satisfy future requirements. Gross race and gender inequities are obvious at the postgraduate level. Mobility of students nationally and internationally to undertake postgraduate studies is an important means of adding to the skills base. While the new block funding mechanism will support student places at research-based postgraduate levels of study in fields where institutions have demonstrable research training capacity, institutions will be able to apply for earmarked funds to enhance the infrastructure necessary to support expanded postgraduate training.
4.47 Capital works. The expansion and diversification envisaged for the higher education sector requires new capital works projects. The existing capital stock needs to be adequately managed, efficiently utilised and maintained. Funding for capital works will be contingent on institutions developing a capital management plan which describes the total floor area, its condition and usage, its replacement value, and planned expenditures for maintenance and refurbishment and cash flow requirements for new construction projects.
4.48 Management information systems development The new funding framework establishes new requirements for planning and information collection, analysis and reporting. These demand more sophisticated information systems for institutional and system management. An element of the earmarked funding programme will therefore be directed to assisting institutions to improve their technical capacity and management information systems.
4.49 The basis for improving public accountability in higher education is making public funding for institutions conditional on their Councils providing strategic plans and reporting their performance against their goals. The plans will provide a framework for continuous improvement within institutions and a reference point for quality assurance.
4.50 The provision of goal-oriented public funding is intended to result in more equitable student access, improved teaching, learning and research, increased student progression and graduation rates, and greater responsiveness to social and economic needs. Public funding will be conditional on institutions developing plans for their future development and providing evidence of the progress they are making to realise these goals. Institutions will be required to prepare a comprehensive strategic plan comprising:
4.51 The plans will contain measurable goals and target dates supported by key performance indicators. The Ministry, in consultation with the Council on Higher Education, will publish guidelines for the development of and reporting on these plans. Copies of the plans will be held by the institution, the Ministry and the Council on Higher Education.