Funding for education
In the scheme, the education financing is based on output control in the form of funding allocated on the basis of the students’ academic activity measured in terms of exams passed. Different types of rates (teaching, field practice, joint expenses and building taximeter) are combined in one education rate in the taximeter scheme.
The political objectives for increased study completion were reflected in the taximeter scheme when, in 2004, a new taximeter type was established in the form of a completion bonus for the universities which was triggered when the students completed a Bachelor programme.
In 2009, a new completion bonus was introduced which, unlike previous schemes, is conditional upon the duration of the study so that the universities are only paid the completion bonus upon the student completing his/her study programme within a specified period. Effective from 2009, the universities receive a:
- Bachelor bonus when students complete a Bachelor programme within the prescribed study period plus one year.
- Master’s bonus when students complete a Master’s programme within the prescribed study period.
Education as a global commodity
Education has become a global commodity as increased globalisation, etc. makes it attractive for students to choose to educate themselves in the country and at the university which offers the most attractive package for the individual student. At the same time, the universities have an economic incentive in attracting as many highly-qualified students as possible as this will increase the income of the university in the form of increased tuition fees or public, output-based funding.