The Transformative Power of Tertiary Education in Developing Countries

As technological advances have accelerated globally and developing economies have moved away from agriculture, the skills premium for tertiary education graduates has remained high. Tertiary education has driven innovation in developing economies by helping young people adopt technology and enabling economies to catch up with -- or even invent -- new technologies and production processes. Tertiary education has also helped community development more subtly through spillover effects on community health, improved family life, civic participation, and localized development around institutional campuses. This report argues that tertiary education faces a twin challenge in the coming two decades. First, tertiary education will expand greatly, especially in low- and middle-income countries. Policymakers will be challenged to maintain equality of opportunity as well as the relevance and quality of tertiary education. Second, policymakers will need to finance this expansion. Governments at different levels of economic development will need to find strategic ways of funding tertiary education while also balancing costs between the public purse on the one hand and families and students on the other. The report provides practical recommendations on how policymakers can address their most urgent priorities to: (1) strengthen access to tertiary education for disadvantaged youth, (2) improve the relevance and quality of tertiary education, (3) mainstream technology usage in both teaching and research at tertiary education institutions, and (4) diversify the supply of tertiary education beyond "World Class" universities.