FINANCING OPEN AND DISTANCE LEARNING

Dr. Jessica N. Aguti

Structure of presentation

Introduction Setting in which ODL operatesWhy is ODL assumed to be cheaperCost elements in ODLFunding ODLFinancing for quality ODL

Introduction

One of the major attractions for ODL is its potential to be more cost effective

Most institutions adopt ODL because it is assumed that it is a cheaper option of providing education

To discuss financing of ODL, we need to understand the stage in which ODL is being acted out

We also need to understand WHAT is being financed

Setting in which ODL operates

State funding of

higher education is diminished

Demand for higher education is growing & UPE

& USE are creating a huge

bulge

35% of Ugandans live

below the poverty line –

affordability of higher

education therefore a challenge

ODL is relatively young in Uganda

& is not very well understood,

very little political will to

support it

Why is ODL assumed to be cheaper?

No need for all the physical infrastructure a traditional University needs -classrooms, halls of residenceThe institution does not need a full academic staff establishmentPotential for sharing of resources – staff, classroomsStudy materials developed can be used again and again

Cost elements in ODL

According to Rumble (2001:73) the following affect cost of ODLThe number of students enrolled

The number of courses presented

The frequency with which course materials are remade

Cost elements in ODL…

The media (text, audio, video, computer-based, face-to-face) and technology employed

The cost structure of the chosen media/technology

The quality of the materials produced (print quality, video formats, etc.)

The number of students enrolled

ODL can be used to reach huge student numbers – Sir Daniel talks about mega UniversitiesRunning ODL programmes with very small numbers is likely to be more costly

Cost of study materials productionSome staff costsAdministrative costs…

However, for certain services, more students might imply higher the costs

Student numbers & cost in ODL

Cost

Student Numbers

Mega UniversitiesRank Institution Location Founded Affiliation Enrollment

1Indira Gandhi National Open University

New Delhi, India

1985 Public 3,500,000

2Allama Iqbal Open University

Islamabad, Pakistan

1974 Public 1,806,214

3Islamic Azad University

Tehran, Iran 1982 Private 1,500,000

4Anadolu University

Eskisehir, Turkey

1958 Public 1,041,180

5Bangladesh National University

Gazipur, Bangladesh

1992 Public 800,000

Mega UniversitiesRank Institution Location Founded Affiliation Enrollment

6Universitas Terbuka

Jakarta, Indonesia

1984 Public 646,467

7Bangladesh Open University

Gazipur, Bangladesh

1992 Public 600,000

8Ramkhamhaeng University

Bangkok, Thailand

1971 Public 525,000

9Tribhuvan University

Kirtipur, Nepal

1959 Public 500,000

10University of Pune

Pune, India 1948 Public 496,531

26 University of South Africa

Pretoria, South Africa 1873 Public 250,000

The number of courses presented

In every programme, each course would require study materials, student support, administration, assessmentThe more courses being run, the more costs to be metThe situation is made worse if the options are many and student numbers in each option small

Study materials being used

How are the study materials being produced?

Use of teams Vs editor/authorFull time staff/ hired staff developing the materials or is used

Type of study materials Guidelines wrapped around a text bookSelf contained especially designed materialsPublished/UnpublishedWays of distribution of study materials

Media & technology

Choice of technology being usedRole it plays in provision of study materials, learner support & administrationHow often the technology will need to be replacedStaff required to run, maintain and service the technologySupport infrastructure for the technology

Media & technology

“Although there are those who believe that it takes less hours on average to

support an online student, the consensus seems to be that online

teaching is more labour intensive…” (Rumble 2001:177)

HIGH COST

LOW COST

HIGH TECHNOLOGY

LOW TECHNOLOGY

HIGH INTERACTION

LOW INTERACTION

Media, technology & Costs

Source: Aguti 2003:48

Cost elements in ODL…

ODL can be cheaper BUT IN THE LONG RUN

ODL demands upfront investment in:Study materialsLearner supportManagement & administrationTechnology & other basic infrastructure

How can ODL be funded?

“The major crisis of public universities is lack of sufficient funds to finance their activities

… (Kasozi 2009:200)

How can ODL be funded?

“… in underdeveloped countries, the market can only supplement but not replace government subventions” (Kasozi 2009:2001)

How can ODL be funded?

At Makerere University, ODL has been funded from two main sources:

State – through salaries ..Tuition fees - All investments in ODL are from tuition fees Day to day running of the programmes from tuitionCEES receives 66% of tuition fee paidBulk of the money goes to staff costs

Sources of funding higher education

Kasozi (2009:2006) recommends:Government – Ghana levies an Education tax as part of VATEducation insurance fund (by parents)National education lottery Philanthropic organizationsIncome generating activities EndowmentsHouseholdsPrivate sector

Funding ODL at Makerere

GovernmentTuition fees – but the percentage remitted to CEES would have to change drasticallyLobby government for tax exemptionResearch funds Donations – alumniCEES would also need to revisit how funds generated is spent – continuous focus on staff costs will mean poor ODL model

Financing for Quality ODL

Poor & inadequate learning materials means dependence on face to face

‘… quality of the course is related to the level of investment in its design”

Poor learner support is likely to compromise quality of ODL programme

Financing for Quality ODL

“Distance education institutions can be more cost-effective than conventional institutions when they offer high-quality learning materials and tutorial support for students..”

Food for thought

Education is the investment our generation makes in the

future. Mitt Romney (Presidential candidate)

References

Kasozi ABK (2009) Financing Uganda’s Public Universities: An Obstacle to Serving the Public Good. Fountain Publishers KampalaRumble G. (Ed) (2004) Papers and Debates on the Economics and Costs of Distance and Online Learning. BIS OldenburgUganda: Country Profile http://www.tulane.edu/~internut/Countries/Uganda/ugandaxx.htmlSAIDE (2004) Financing Distance Education in south African Higher Education