Asymmetric information, public goods and central control: a critique of the West Review's education policy

The 'West Review' (Review of Higher Education Financing and Policy, 1998) develops a policy framework for tertiary education to meet Australia's needs over the next two decades. The Review acknowledges the unification of tertiary education across universities and vocational institutions but argues that the unique identities and missions of the two sub-sectors should be preserved. However, the Review advocates a more vocational orientation in university teaching and research that blurs this distinction. The Review argues that the determination of tertiary sector education program offerings should be decentralised by basing funding on student preferences. Research activities should be centrally prioritised with access to training being also dependent on such preferences. These views are questionable. Informational asymmetries imply that student sovereignty is a poor basis for designing programs and allocating research funds. Central prioritising cannot provide the benefits achievable in liberal structures which promote diversity. The Review's endorsement of centralised university management will realise measured cost savings but at the expense of quality.

Excerpt from published abstract.

The 'West Review' (Review of Higher Education Financing and Policy, 1998) develops a policy framework for tertiary education to meet Australia's needs over the next two decades. The Review acknowledges the unification of tertiary education across universities and vocational institutions but argues that the unique identities and missions of the two sub-sectors should be preserved. However, the Review advocates a more vocational orientation in university teaching and research that blurs this distinction. The Review argues that the determination of tertiary sector education ...  [+] Show more