Report No: AUS0003389 Cambodia REIMAGINING HIGHER EDUCATION IN CAMBODIA: MODERNIZING GOVERNANCE FOR IMPROVED ACCESS AND RELEVANCE . March 2024 . . Document of the World Bank © 2024 The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved This work is a product of the staff of The World Bank. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Attribution—Please cite the work as follows: Bhatta, S.D., J. Salmi, S. Katwal, L. Pynnonen, and S. Heng. 2024. Reimagining Higher Education in Cambodia: Modernizing Governance for Improved Access and Relevance. Washington, DC: World Bank. All queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org. ii Table of contents Acknowledgment ...................................................................................................................................... viii Abbreviations ............................................................................................................................................. ix Executive Summary .................................................................................................................................. xii 1. Introduction .......................................................................................................................................... 1 1.1 Background ................................................................................................................................... 1 1.1.1 Importance of Tertiary Education for Cambodia’s Development ................................................ 1 1.1.2 Government Development Agenda and Tertiary Education Policy ............................................. 1 1.1.3 Overview of Past World Bank Projects in Support of Higher Education .................................... 2 1.1.4 Overview of the Cambodian Tertiary Education System............................................................. 5 1.2 Objectives of the Report ..................................................................................................................... 8 1.3 Methodology ....................................................................................................................................... 9 1.4 Structure of the Report ...................................................................................................................... 10 2. Equity and Inclusion in the Cambodian Tertiary Education System .............................................. 11 2.1 Overview of the Present Situation .................................................................................................... 11 2.1.1 Trend and Disparities in Access................................................................................................. 11 2.1.2 Determinants of Tertiary Education Participation and Attainment ............................................ 15 2.1.3 Supply of and Demand for Tertiary education ........................................................................... 16 2.2 Government Policies to Promote Equity........................................................................................... 21 2.3 Options for Accelerating Progress Toward Equity and Inclusion .................................................... 21 2.4 Summary of Findings and Recommendations .................................................................................. 23 3. Quality and Relevance of Tertiary Education Programs ............................................................... 25 3.1 Quality .............................................................................................................................................. 25 3.1.1 Overview of Quality in Cambodian Higher Education .............................................................. 25 3.1.2 Preparedness of Incoming Students ........................................................................................... 26 3.1.3 Qualifications of Teaching Staff ................................................................................................ 27 3.1.4 Program Delivery and Assessment ............................................................................................ 27 3.1.5 Learning Environment and Infrastructure .................................................................................. 28 3.2 Relevance .......................................................................................................................................... 29 3.2.1 Job Market for Tertiary Education Graduates ............................................................................ 29 3.2.2 Differences in Wage across Education Levels, Genders, and Locations ................................... 33 3.2.3 Returns to Education .................................................................................................................. 35 3.2.4 Tracer Studies Results on the Relevance of Higher Education .................................................. 39 iii 3.3 Green Skills....................................................................................................................................... 41 3.3.1 Prevalence of Green Jobs in Cambodia ..................................................................................... 42 3.3.2 Characteristics of Green Workers: Gender and Education ........................................................ 43 3.3.3 Training the Green Workforce: Green Skills in University Curricula ....................................... 49 3.4 Options to Improve the Quality and Relevance of Cambodian Higher Education Institutions ........ 53 3.4.1 Foundation Courses to Prepare Incoming Students ................................................................... 53 3.4.2 Curriculum Modernization to Align Programs with Labor Market Needs ................................ 54 3.4.3 Innovative Pedagogical Approaches .......................................................................................... 61 3.4.4 Aligned Assessment Methods .................................................................................................... 65 3.5 Summary Findings and Recommendations....................................................................................... 69 4. Research and Innovation ...................................................................................................................... 70 4.1 Research Outputs and Impact ........................................................................................................... 70 4.2 Knowledge and Technology Transfer ............................................................................................... 71 4.3 Recommendations to Improve the Research and Innovation Contribution of Cambodian Universities ............................................................................................................................................. 74 4.3.1 Alignment of the University Research Agenda with National Priorities ................................... 74 4.3.2 Increased Research Funding ...................................................................................................... 76 4.3.3 Building a Critical Mass of Researchers .................................................................................... 78 4.3.4 Strengthening Research Links between Universities and Industry ............................................ 79 4.4 Summary Findings and Recommendations....................................................................................... 84 5. Governance and Financing .................................................................................................................. 85 5.1 Governance of the Tertiary Education System and Institutions........................................................ 85 5.1.1 System-wide Governance .......................................................................................................... 86 5.1.2 Institutional Autonomy and Accountability ............................................................................... 87 5.2 Financing of Tertiary Education in Cambodia.................................................................................. 91 5.2.1 Public Funding ........................................................................................................................... 91 5.2.2 Household Expenditures on Tertiary Education ........................................................................ 92 5.3 Options for Modern Governance and Sustainable Financing ........................................................... 94 5.3.1 Governance ................................................................................................................................ 94 5.3.2 Financing.................................................................................................................................. 112 5.4 Summary of Findings and Recommendations ................................................................................ 128 6. References ............................................................................................................................................ 130 7. Annexes ................................................................................................................................................ 136 iv Annex 1: Top Ranked Universities in Southeast Asia .......................................................................... 136 Annex 2: Green Occupations Based on the Narrow Definition of Greenness ...................................... 139 Annex 3: Universities and Programs with Green Courses .................................................................... 140 Annex 4: Resource Diversification Matrix ........................................................................................... 143 List of Tables Table E.1 - Sequencing of policy options ................................................................................................ xxiv Table E.2 - Implementation difficulty of policy options......................................................................... xxvii Table E.3 - Distribution of implementation responsibilities .................................................................... xxxi Table 1.1 - World Bank past and ongoing higher education projects ........................................................... 4 Table 1.2 - Distribution of enrollment in 2022 ............................................................................................. 6 Table 1.3 - Educational rates of return by region (%)................................................................................... 8 Table 2.1 - Determinants of higher education attendance and attainment .................................................. 16 Table 2.2 - Number of higher education graduates by education level....................................................... 20 Table 3.1 - Top 71 universities in Southeast Asia (2023) ........................................................................... 26 Table 3.2 - Qualifications of faculty members (%)..................................................................................... 27 Table 3.3 - Rates of return to schooling (2019), % ..................................................................................... 36 Table 3.4 - Determinants of wages using OLS and quantile regressions (2019) ........................................ 38 Table 3.5 - Determinants of participation in green jobs (for workers with tertiary education) .................. 49 Table 3.6 - Examples of green related programs in major Cambodian universities ................................... 50 Table 4.1 - Research output of Cambodia and selected comparator countries (2010 and 2021) ................ 70 Table 4.2 - Innovation capacity and output of Cambodia and selected comparator countries.................... 71 Table 4.3 - Distribution of graduates by degree in Cambodia (2015–2022), % ......................................... 72 Table 4.4 - Global innovation index, higher education, and R&D ranking (2022)..................................... 73 Table 4.5 - Allocation of research funding in Cambodia ............................................................................ 78 Table 4.6 - Matrix of knowledge- and technology-transfer mechanisms ................................................... 81 Table 5.1 - Degree of institutional autonomy of HEIs in Cambodia .......................................................... 88 Table 5.2 - Main governance features......................................................................................................... 90 Table 5.3 - Per-student public subsidy in a sample of universities (2016) ................................................. 91 Table 5.4 - Distribution of income by source in selected institutions (%) .................................................. 92 Table 5.5 - Examples of comprehensive MIS for higher education ........................................................... 98 Table 5.6 - Measures of academic performance ....................................................................................... 109 Table 5.7 - Principal instruments of accountability .................................................................................. 111 Table 5.8 - Financing and provision of higher education ......................................................................... 113 Table 5.9 - Public-private partnerships in higher education ..................................................................... 116 Table 5.10 - Alignment of the Cambodian funding framework with international good practices .......... 122 Table 5. 11 - Advantages and disadvantages of internal allocation methods ........................................... 126 List of Figures Figure 1.1 - Gross enrollment rates in Southeast Asia (%) ........................................................................... 7 v Figure 2.1 - Trend in tertiary gross enrollment rate .................................................................................... 12 Figure 2.2 - Gross enrollment rate by gender (2004–2019) ........................................................................ 12 Figure 2.3 - Gross enrollment rate by socioeconomic status (2004–2019)................................................. 13 Figure 2.4 - Gross enrollment rate by geographical location (2004-2019) ................................................. 14 Figure 2.5 - Profile of tertiary education enrollees ..................................................................................... 15 Figure 2.6 - Number of higher education institutions ................................................................................. 17 Figure 2.7 - Student enrollment (in thousands), 2015–2022 ....................................................................... 18 Figure 2.8 - Distribution of students enrolled in higher education by program, 2022 ................................ 19 Figure 2.9 - Gender distribution of high school graduates, 2014–2022...................................................... 20 Figure 3.1 - Employment rate by education level ....................................................................................... 29 Figure 3.2 - Employment rate by education level ....................................................................................... 30 Figure 3.3 - Share of workers (with tertiary education) across industry sectors by gender ........................ 30 Figure 3.4 - Share of workers across occupation categories by education level ......................................... 31 Figure 3.5 - Share of workers (with tertiary education) across occupation categories by gender .............. 32 Figure 3.6 - Share of workers across skill categories by education level ................................................... 33 Figure 3.7 - Share of workers (with tertiary education) across skill categories by gender ......................... 33 Figure 3.8 - Mean and median monthly wage (KHR, in thousands) by education level, 2019 .................. 34 Figure 3.9 - Mean monthly wage (KHR, in thousands) by education level and gender, 2019 ................... 35 Figure 3.10 - Mean monthly wage (KHR, in thousands) by education level and location, 2019 ............... 35 Figure 3.11 - Labor market outcomes for recent graduates ........................................................................ 40 Figure 3.12 - Share of green jobs in Cambodian economy ......................................................................... 43 Figure 3.13 - Gender distribution of green jobs in Cambodia .................................................................... 44 Figure 3.14 - Educational background of workers in green and non-green jobs ........................................ 44 Figure 3.15 - Distribution of workers across green and non-green jobs by worker education level .......... 45 Figure 3.16 - Distribution of workers with tertiary education across green vs. non-green jobs ................. 46 Figure 3.17 - Distribution of working-age population with tertiary education across fields of study ........ 46 Figure 3.18 - Distribution of working-age population with tertiary education by fields of study .............. 47 Figure 3.19 - Distribution of workers with tertiary education across green and brown jobs by field of study ............................................................................................................................................................ 48 Figure 3.20 - Distribution of workers with tertiary education across green and brown jobs by field of study and gender ......................................................................................................................................... 48 Figure 4.1 - Number of scientific and technical journal articles per billion PPP$ GDP for Cambodia and comparator countries (2022) ....................................................................................................................... 71 Figure 4.2 - Number of PhD graduates (2015–2022) ................................................................................. 72 Figure 4.3 - Gross expenditure on R&D as a percentage of GDP (2020) ................................................... 76 Figure 4.4 - Instruments for building the technology capability of firms ................................................... 79 Figure 5.1 - Tertiary Education Governance Framework ........................................................................... 85 Figure 5.2 - Household and individual tertiary education expenditure (median) over the years ................ 92 Figure 5.3 - Median annual tertiary education expenditure by HEI type, location, and household wealth 93 Figure 5.4 - Shares of different types of annual tertiary educational expenditures .................................... 94 Figure 5.5 - Features of an aligned QA system......................................................................................... 101 Figure 5.6 - Indicators used in funding formulas in Europe ..................................................................... 123 vi List of Boxes: Box 3.1 - The promise of predictive analytics ............................................................................................ 54 Box 3.2 - Good practices of employer engagement for curriculum improvement purposes ...................... 55 Box 3.3 - Close collaboration between Korean universities and firms ....................................................... 56 Box 3.4 - The future of engineering education ........................................................................................... 56 Box 3.5 - Incorporating humanities, arts, crafts, and design into curricula makes better scientists ........... 58 Box 3.6 - Lessons from cooperative programs ........................................................................................... 60 Box 3.7 - Twilight of the lecture: “active learning” overthrowing the style of teaching that has ruled universities for 600 years ............................................................................................................................ 61 Box 3.8 - Teaching excellence in the UK ................................................................................................... 65 Box 3.9 - Competency-based assessment best practices ............................................................................. 67 Box 4.1 - A new research agenda in Australia ............................................................................................ 75 Box 4.2 - Universities as innovation clusters .............................................................................................. 80 Box 4.3 - Lessons from Singapore’s experience in building a strong research base .................................. 81 Box 4.4 - Promotion criteria at the University of Manchester, England..................................................... 83 Box 5.1 - Effectiveness and performance review of university boards .................................................... 104 Box 5.2 - Appointment of the new rector at the University of Helsinki ................................................... 105 Box 5.3 - Advertisement in the Economist for the International Recruitment of the Rector of a Public University in Portugal ............................................................................................................................... 106 Box 5.4 - Internal restructuring at two German universities ..................................................................... 107 Box 5.5 - An innovative new polytechnic University in Morocco ........................................................... 115 Box 5.6 - The gift of a lifetime ................................................................................................................. 118 Box 5.7 - Lessons from fund-raising efforts in Europe ............................................................................ 119 Box 5.8 - The Stanley Ho challenge ......................................................................................................... 120 vii Acknowledgment This report was authored by a team led by Saurav Dev Bhatta (Senior Economist and Task Team Leader, HEAED) and comprising Jamil Salmi (Tertiary Education Expert, Consultant, HEAED) Saurav Katwal (Economist, Consultant, HEAED), Lauri Pynonnen (Senior Education Specialist, HEAED), and Somphospheak Heng (Consultant, HEAED). The extended team for the study included Simeth Beng (Senior Education Specialist, HEAED), Fata No (Education specialist, HEAED), and Vutha Ros (Consultant, HEAED), The study was conducted under the guidance of Mariam Sherman (Country Director for Myanmar, Cambodia, and Lao PDR), Daniel Dulitzky (Regional Director, HEADR), Maryam Salim (Country Manager for Cambodia), Toby Linden (Practice Manager, HEAED), and Cristian Aedo (Practice Manager, HEAED). The peer reviewers for this study were Yoko Nagashima (Senior Education Specialist, HSAED), Roberta Malee Bassett (Senior Education Specialist, HAEE2), and Nina Arnhold (Lead Education Specialist, HSAED). The team would like to thank the peer reviewers as well as Serdar Yilmaz (Lead Public Sector Specialist, EAG1) and Sokbunthoeun So (Senior Public Sector Specialist), for their helpful feedback and suggestions, and Maly Prak (Program Assistant, EACSF) and Mary Dowling (Program Assistant, HEAED) for providing administrative and coordination support for the study. Finally, we want to express our thanks to H.E. Mak Ngoy, Director General of Higher Education DHE) and his team, as well as officials from different public and private universities for participating in consultations for the study and providing feedback on the preliminary findings of the report. viii Abbreviations ADB Asian Development Bank ASEAN Association of Southeast Asian Nations AUPP American University of Phnom Penh BOT Build-Operate-Transfer CESSP Cambodia Education Sector Support Project CHEA Council of Higher Education Accreditation CLFS Cambodia Labor Force Survey CLSMS Cambodia Living Standards Measurement Study-Plus COPAES Council for Accreditation in Higher Education in Mexico CSES Cambodia Socio-Economic Survey DHE Department of Higher Education ERA Excellence in Research for Australia EUA European University Association FITT Foundation for Innovation and Technology Transfer GDP Gross Domestic Product GER Gross Enrollment Rate GII Global Innovation Index GOC Government of Cambodia GSU Georgia State University HACD Humanities, Arts, Crafts, and Design HEI Higher Education Institution HEIP Higher Education Improvement Project HEMIS Higher Education Management Information System HEQCIP Higher Education Quality and Capacity Improvement Project HR Human Resources ICT Information and Communication Technology IIT Indian Institute of Technology INSEAD Institut Européen d'Administration des Affaires ISCO International Standard Classification of Occupations IT Information Technology ITC Institute of Technology of Cambodia IUK Infrastructure University Kuala Lumpur KAIST Korea Advanced Institute of Science and Technology KHR Cambodian Riel KIT Kirirom Institute of Technology KPI Key Performance Indicator LFS Labor Force Survey LMIC Lower-Middle-Income Country MEF Ministry of Economy and Finance ix MIS Management Information System MIT Massachusetts Institute of Technology MISTI Ministry of Industry, Science, Technology, and Innovation MMU Multimedia University MoEYS Ministry of Education, Youth and Sport MOOC Massive Open Online Course MoU Memorandum of Understanding NAC National Accreditation Committee NEASC New England Association of Schools and Colleges NEET New Engineering Education Transformation NGO Nongovernmental Organization NMC New Media Consortium NSSE National Survey of Student Engagement NUBB National University of Battambang OCP Moroccan Phosphates Company OECD Organisation for Economic Co-operation and Development OLS Ordinary Least Squares PAI Public Administrative Institute PBL Problem-Based Learning PISA Programme for International Student Assessment PIU Paragon International University PPIU Phnom Penh International University PPP Public-Private Partnership QA Quality Assurance R&D Research and Development REF Research Excellence Framework RUA Royal University of Agriculture RUPP Royal University of Phnom Penh SAT Scholastic Aptitude Test SDG Sustainable Development Goal SEA Southeast Asia SLP Social Learning Platform SME Small and Medium Enterprise SNCE Supreme National Council of Education SNU Seoul National University SRU Svay Rieng University STEAM Science, Technology, Engineering, Arts and Mathematics STEM Science, Technology, Engineering, and Mathematics STEMM Science, Technology, Engineering, Mathematics, and Medicine STI Science, Technology, and Innovation TIMMS Trends in International Mathematics and Science Study x TVET Technical and Vocational Education and Training WACE World Association for Cooperative Education WGU Western Governors University WIPO World Intellectual Property Organization UAS Osnabrück University of Applied Sciences UME University of Management and Economics UMP6 Mohammed VI Polytechnic University UNESCO United Nations Educational, Scientific and Cultural Organization USM University of Southern Mississippi UTP Universiti Teknologi Petronas xi Executive Summary Introduction Cambodia is aware that investing in tertiary education is indispensable to building dynamic economies and cohesive societies driven by innovation and technology. Tertiary education supports knowledge-driven economic growth and poverty reduction strategies by (a) training a qualified and adaptable labor force, including high-level scientists, professionals, technicians, basic and secondary education teachers, and future government, civil service, and business leaders; (b) generating new knowledge through basic and applied research; and (c) providing a platform for accessing existing stores of global knowledge and adapting this knowledge to local use. The Education 2030 Roadmap, published in 2019, maps out the vision, objectives, and plans of the Cambodian government to make rapid progress toward achieving the fourth Sustainable Development Goal (SDG-4). It sets two main objectives for higher education development. The first one is to enhance access and improve the quality of higher education programs. The second objective is to put in place a governance and management system that can make the country’s higher education institutions (HEIs) fully autonomous. Cambodia has made rapid progress in expanding access to tertiary education during the past two- and a half decades. The number of HEIs increased fifteen-fold from just 8 in 1997 to 128 in 2021. Much of the growth in the subsector came from private HEIs, which are by now greater in number than public HEIs. Despite this impressive growth, Cambodia’s tertiary enrollment rate of 15 percent puts it behind most of the other countries in Southeast Asia (SEA), except Lao PDR. There is also evidence of disparities in access to tertiary education across income groups, geographical location, and gender. The Cambodian tertiary education system also faces challenges in quality and relevance of existing programs, with a mismatch between the needs of the labor market and what HEIs actually offer. Further, most HEIs are teaching institutions mainly, without the scientific capacity to carry out research and technology transfer functions. Many of the problems affecting the tertiary education system are due, to a large extent, to the low level of public investment in higher education and a governance and management set up in need of strengthening. The rapid expansion of the past two decades has happened in an uncoordinated manner without a long-term vision and strategic policy interventions. Against this background, the main objective of this study is to assess the performance of Cambodia’s tertiary education system in terms of equitable access, labor market relevance, and research output, and to provide policy recommendations to the government and all stakeholders in the tertiary education sector. This will inform priority reforms and investments to strengthen the sector overall and, specifically, improve coverage, relevance, research, and governance. The report is principally informed by consultations with key stakeholders and visits to a small sample of universities in December 2022 and May 2023. The report also draws on the findings of a literature review of existing documents. The report is divided into four parts. The first part examines access and equity in the Cambodian higher education sector. The second part looks at quality and relevance, with a special focus on skills for the green economy. The third chapter analyzes the research and technology transfer xii results of Cambodian universities. The last part assesses how the governance and funding approaches can be modernized to enhance the performance of the higher education system. Equity and Inclusion in the Cambodian Tertiary Education System Overview of the Present Situation Among the total tertiary student population in 2019, only 4 percent came from the poorest income quintile, while 46 percent originated from the wealthiest quintile. 1 Geographical disparities in access are also stark, with a gross enrollment rate (GER) of only 10 percent in rural areas. The corresponding GERs for males and females were 16.5 percent and 13.8 percent, respectively. Moreover, females comprise less than 30 percent of the students enrolled in the science faculties. The above findings on disparities in access are largely supported by regression analyses of the determinants of tertiary education participation. The probability of tertiary education attainment for older age groups is influenced by various individual and household characteristics. Socioeconomic factors, including household wealth, being in a female-headed household, and household head’s years of education are positively associated with the likelihood of tertiary education attainment. Cambodia has witnessed a worrisome trend of declining student enrollment in higher education in recent years, shrinking from 183,000 students in 2015 to 176,000 in 2022. This is partly a result of the COVID pandemic, and partly due to less favorable high school exam results. There has also been a sharper decline of female students enrolled in graduate programs (both master’s and PhD levels). In terms of disciplinary fields, the largest share of students (41 percent) is enrolled in business and management programs, which is not a common feature in other countries of the Association of Southeast Asian Nations (ASEAN), where there is a higher concentration of students in science, technology, engineering, and mathematics (STEM) programs. Options for Accelerating Progress Toward Equity and Inclusion Cambodia’s Policy on Higher Education 2030 places a significant emphasis on equity as one of its key objectives. To achieve this goal, the government has implemented a national scholarship program aimed at promoting access to higher education for qualified students, including those from disadvantaged backgrounds. The target groups in this scholarship scheme include: (a) outstanding students, (b) orphan students, (c) minority students from indigenous family, and (d) poor students. In these four categories, women are prioritized. These scholarships are available mostly for students enrolled in public HEIs. Considering the extensive social and private benefits that higher education generates, ensuring inclusive access and success is indispensable to achieve social justice and economic efficiency. Since equity is a key pillar of the Government of Cambodia’s (GOC) higher education strategy, the Ministry of Education could enhance its current efforts by formulating a full vision for its equity agenda. This would start by recognizing formally the main equity target groups 1 This gap in access, on the basis of wealth, is comparable to some of the other lower-middle-income countries (LMICs). For instance, in Viet Nam, the corresponding shares are 5 percent and 42 percent, respectively (Parajuli et al. 2020). xiii (economically disadvantaged, ethnic minorities, students with disabilities, women in STEM programs) who need to be considered in the context of the reality of Cambodian society. The next step would be setting clear quantitative targets for greater access rates of disadvantaged students from these groups with the 2030 horizon in mind. This would be followed by the preparation of an adequately financed implementation plan and financing mechanisms to complement the existing scholarship scheme. To meet its equity targets, Cambodia needs to design a comprehensive support system to better prepare disadvantaged upper-secondary graduates for higher education and to help needy university students complete their studies. Recent research shows that the most effective equity promotion policies to increase tertiary education opportunities for underrepresented students are those that combine both financial (scholarships, student loans, tuition waivers) and non-monetary measures (outreach, affirmative action, retention). Finally, it is important to emphasize that the success of the government’s equity promotion policies would be enhanced by the establishment of a comprehensive management information system (MIS) to monitor the scope and evolution of disparities in tertiary education and the effectiveness of the various equity promotion programs. Quality and Relevance of Tertiary Education Programs The tertiary education system faces challenges in terms of the quality and relevance of existing programs, with elements of mismatch between the needs of the labor market and what tertiary education institutions actually offer. In spite of the serious limitations with respect to hard data on these aspects, available evidence and anecdotal information reveal shortcomings that adversely affect the quality and relevance of tertiary education. Overview of Quality in the Cambodian Tertiary Education System In the absence of direct measures of learning outcomes, the global university rankings can be used as a useful proxy to assess the quality of tertiary education in Cambodia from an international viewpoint. In spite of their methodological limitations, international rankings help identify which universities tend to offer high-quality teaching with innovative curricula and teaching methods, produce graduates who excel in the global labor market, and significantly contribute to progress in knowledge through their cutting-edge research. Unfortunately, neither the Shanghai Academic Ranking of World Universities nor the Times Higher Education World University Ranking feature any Cambodian university in their list of top 800 institutions. From a regional perspective, 71 universities from Southeast Asia appear in the 2023 Times Higher Education Ranking. However, not a single Cambodian university makes it among these top institutions. To understand the reasons that may adversely affect the quality of higher education programs in Cambodia, it is useful to look at (a) the preparedness of incoming students, (b) the qualifications of faculty members, and (c) the quality of the learning environment and infrastructure. Disparities in the quality of high school education affect the preparation of incoming university students. The most commonly identified differences are the limited opportunities to acquire independent or collaborative learning abilities in high school, the lack of educational resources, and traditional pedagogical approaches emphasizing rote learning. Further, the shortage of basic learning resources and instructional materials remains a significant problem in many high schools, particularly in rural and remote areas. xiv The academic qualifications of faculty members are an important determinant of the quality of the educational experience of students. Despite the progress achieved in recent years, only 9 percent of full-time academics have a PhD. Full-time academics working at private universities appear to be slightly better qualified than their peers in public universities. Reports reveal significant disparities in the quality of the online education experience between urban and rural students during the pandemic as a result of poor internet connection, lack of appropriate teaching tools and methodology for the use of e-learning platforms, and the perception that online classes are less effective than in-person classes. However, a few universities have distinguished themselves as pioneers in introducing educational innovations. The Institute of Technology of Cambodia (ITC), in particular, has thoroughly revised its programs and pedagogies to make the curriculum more practical and adopt an active learning approach relying on project- based learning. In response to the growing number of students, the government has made laudable efforts to provide sufficient equipment for teaching and learning in the last decade. To promote digital education, the government has worked to improve the reach and effectiveness of the internet in the provinces and rural areas. However, despite the progress made, scientific equipment and the basic physical and technological infrastructure have not kept up with the needs of HEIs. Overview of Relevance Analyses based on the 2019 labor force survey data show that the working-age population with tertiary education have better employment prospects than those with lower levels of education. The services sector is the primary employer of tertiary education holders, encompassing approximately 82 percent of the employed workers in this group. Approximately 49 percent of workers with tertiary education are employed in high-skill occupations, while the remaining 51 percent work in medium- or low-skill occupations. In stark contrast, the proportion of workers in high-skill occupations is significantly smaller for those with lower levels of education. Furthermore, there is a gender difference in favor of males in the distribution of high-skill occupations among workers with tertiary education. Among males, 52 percent are employed in high-skill occupations, while for females, this figure is only 46 percent. The average wage earned by workers with a specific level of education can provide some insights on the relevance of education level in the labor market. Higher average wage for individuals with a particular education level reflects how much employers value the skills and knowledge acquired at that level. Higher levels of education are indeed closely associated with higher earnings in the labor market in Cambodia. Workers with a university education experience a significant leap in average wages, earning approximately KHR 1,536,000, which is 32 percent higher than the earnings of high school graduates. Urban workers consistently earn higher wages compared to their rural counterparts, with the wage gap widening as the level of education increases. These findings underscore the value of higher education in securing higher-paying jobs. The results of recent tracer studies show that the employment rate of recent graduates is notably high, with approximately 76 percent of graduates currently employed. This figure closely aligns with the data from the Cambodia Labor Force Survey (CLFS), which reports a 72 percent employment rate among the working-age population with tertiary education. The majority of employed graduates are able to secure jobs promptly after completing their studies. Specifically, around 25 percent of graduates report finding employment within three months of graduation. xv Green Skills Cambodia’s ability to build a thriving economy that is resilient to climate change will depend to a great extent on the skills, technical capacities, and adaptive mindset of its people, backed by an effective scientific research system. In this context, the tertiary education sector’s contribution to the green and circular economy involves five complementary aspects: (a) Environmental education for society: Inculcating young people with basic scientific knowledge about climate change and positive values toward the environment. (b) Skills development for the green economy: Educating and training individuals who can work in the green economy or in economic and social sectors affected by climate change and the resulting environmental challenges. (c) Capacity building for guiding the green economy: Helping strengthen public agencies and institutions that support the development of the green economy and that operate in sectors negatively affected by climate change. (d) Research for the green economy: Conducting relevant research to address the main challenges arising from global climate change. (e) Engagement with the green economy: Building on the above-mentioned research to undertake technology transfer (at the university level) to support innovations leading to the development of the green/circular economy and the adaptation of other economic and social sectors that are adversely affected. In addition, it is essential to transform existing HEI facilities into green campuses by adapting the physical infrastructure and operation modalities of all training centers, institutes, and universities and to make sure that they are environmentally friendly. A relatively large share of the jobs in Cambodia can be classified as green if a broad definition of occupation greenness is used, and prevalence of green jobs is much greater in rural areas. About 58 percent of the jobs in Cambodia can be considered green. Females are underrepresented in jobs that can be classified as green, with a 10 percent gap compared to male employees. As in the overall economy, the majority of green job workers have low educational qualifications, and only a small minority have received tertiary education. Of the total jobs in the Cambodian economy, 52 percent is held by workers with primary education or no education at all and 6 percent is held by workers with tertiary level education. The academic backgrounds of only a small share of workers with tertiary level education are related to the green economy. The vast majority of adults with tertiary education (73 percent) have backgrounds in business administration, health, education, languages, and law—all non-green potential fields. However, having a green potential tertiary academic background increases the likelihood of having a green job as opposed to a non-green job. At present, relatively few universities are offering programs directly related to climate change and the construction of the green economies. The main ones are the Institute of Technology of Cambodia (ITC), the Royal University of Phnom Penh (RUPP), the Royal University of Agriculture (RUA), and the National University of Battambang (NUBB). A set of interviews with faculty members of key Cambodian universities revealed that the integration of green programs presents a unique set of opportunities and challenges. The opportunities lie in the potential for a comprehensive, university-wide curriculum change that xvi would incorporate climate change and environmental issues across all programs. One of the key opportunities is the adoption of a more hands-on and active learning approach. However, the integration of green programs is not without its challenges. One of the primary obstacles is the lack of facilities and human resources. This shortage of qualified technical personnel tends to hinder the effective integration of environmentally sustainable components into diverse programs. Additionally, the lack of funding and support, particularly in linking graduates/students with industry, is seen as a limiting factor for the practical application of the knowledge gained from these programs. Another challenge is the need for a clear framework for integrating climate change and environmental issues into the syllabus. Greening the curriculum will require Cambodian tertiary education institutions to assess which of their existing programs must be transformed or further updated to respond to the needs of the green economy and what types of curricular adjustments should be considered. It is expected that a wide range of programs will be affected by the need to align their contents and the competencies with the evolution of job requirements for the green economy. Options to Improve the Quality and Relevance of Cambodian Higher Education Institutions To improve the quality and responsiveness of tertiary education programs, the Ministry of Education, Youth and Sport (MoEYS) has focused in recent years on the promotion of teachers’ professional qualifications and the introduction of incentives to recognize the performance of faculty members, as well as on increasing autonomy, accountability, and the quality of leadership in the management of higher education services. The government has established a higher education quality assurance system, even though it recognizes that the implementation of internal quality assurance within tertiary education institutions still needs a lot of improvement. Moving forward, MoEYS could consider the following areas of intervention to further improve the quality and relevance of higher education program: (a) better preparation of incoming students, (b) programs aligned with labor market needs, (c) innovative pedagogical practices, and (d) aligned assessment methods. First, it is important to pay more attention to the learning needs of incoming high school graduates who are not well prepared academically and are not trained to study in an autonomous manner. Second, it is essential to align the programs of Cambodian HEIs with the country’s development strategy and with the needs of employers. Strengthening links with the productive sectors is the most effective way of increasing the relevance of tertiary education programs. A variety of mechanisms can be used for that purpose, including internships for undergraduate students, in- company placements of research students and academics, and engagement of practitioners from industry as visiting lecturers. Third, it is important to undertake pedagogical reforms aiming at making delivery more effective to facilitate a stimulating learning experience for the students. This would require the majority of Cambodian HEIs to move away from traditional teaching methods and make teaching and learning more interactive, collaborative, and experiential. In that respect, problem-based learning (PBL), a student-focused method in which students learn about a topic and acquire competences by working in groups to solve open-ended problems, has shown great results. Finally, the leaders of Cambodian HEIs must bear in mind that curricular and pedagogical innovations can transform learning in an effective way only if the assessment criteria and processes are fully aligned with the educational experience of the students. Therefore, to support students’ xvii acquisition of 21st century skills, universities need to implement assessment strategies that are substantially different from the ranking and classifying practices that are commonly applied. Two innovative practices have emerged in recent years in the design and use of assessment in university settings. The first one is a progressive shift toward a competency-based education model, in contrast to the traditional content-based model of course design and delivery. The second one, triggered by the increasing reliance on competency-based evaluation, is the move away from high- stakes summative evaluations to a formative assessment model. Research and Innovation Research Outputs and Impact Despite substantial progress made in the quantity of research output over the last decade, with a 173 percent increase between 2010 and 2021, Cambodia remains at the bottom of comparator countries in Southeast Asia. In terms of quality and impact of research, as measured by the H- indicator, Cambodia ranks second from the bottom of the list, doing just a little bit better than Lao PDR. Cambodia’s performance looks better when measuring its scientific production in relation to the country’s gross domestic product (GDP), which gives a fair notion of research productivity relative to economic wealth. Cambodia is doing significantly better than Indonesia, Lao PDR, and the Philippines, which is a reasonably positive result in relation to the country’s wealth. It is useful to look at the measures of technology transfer to capture the contribution of a country’s universities to the national innovation system. Unfortunately, data for Cambodia’s patent production are not available, most likely because the numbers are very low. An indirect way of assessing the innovation capacity and output is to look at the ranking of Cambodia in the Global Innovation Index. While the country has clearly improved its position since 2008, it is undoubtedly less satisfactory than that of most comparators. Preparing the next generations of young researchers is still work in progress. The distribution of graduates by degree level clearly reveals that, in spite of rapid progress in the past few years, Cambodian tertiary education institutions cater mainly to undergraduate students, with less than 9 percent of the yearly batch of graduates being master’s or PhD students. Many areas of improvement identified with respect to quality also explain the limited development of research and technology transfer in the Cambodian tertiary education system. The high student- teacher ratio and the low proportion of academics with a PhD translate into high teaching loads, little time for research, and poor supervision of graduate students. Many doctoral students spend up to six years to complete their studies. The poor state of infrastructure applies also to the research facilities and equipment. Few universities have a clear strategy and the resources to turn the situation around. Improving the Research and Innovation Contribution of Cambodian Universities Considering the limited impact that the Cambodian universities have on the economy, it is important to build up their research and innovation capacity. For that purpose, the GOC could work on four key aspects at the national level: (a) build a strong research agenda aligned with the country’s priorities, (b) increase research funding in support of that development agenda and introduce innovative funding schemes, (c) provide incentives for high-performing researchers, and (d) strengthen links with industry and global research networks. xviii Committed to integrating science and technology into the core economic sectors, the GOC adopted the National Policy on Science, Technology, and Innovation (STI) 2020–2030 in 2019. This policy places a strong emphasis on the role of human capital development, the creation of an innovative ecosystem, and investment to minimize the science and technology skills gap with other countries in the region. The national policy targets five main pillars, namely, (a) enhancing the governance of the STI system, (b) building human capital in STI, (c) strengthening research capacity and quality of research, (d) increasing collaboration and networking opportunities between STI stakeholders, and (e) fostering an enabling ecosystem for building absorptive capacities in firms and attracting investment in STI. In this respect, it is important for Cambodia to define a strong research agenda that includes the most research-intensive universities of the country as important players. To achieve this purpose, the government needs to determine how many research-intensive universities the country should have and can afford, to which the government would commit adequate funding over the long run. It is important to underscore that the success of the research capacity-building efforts is highly dependent on the Cambodian government’s ability to significantly increase the research budget, protect the funding allocation process from political considerations and interferences, and maintain stable funding levels over the years. Cambodia needs to accelerate its efforts toward forming a critical mass of high-level researchers. In the short run, the universities can introduce policies and incentives to bring top-quality faculty from the Cambodian diaspora and foreign universities, and also consider introducing a tenure track for promising young academic staff. In the medium- and long-term, a talent development policy would require (a) revamping graduate schools to attract high-quality domestic and international PhD students and producing a good pipeline of doctoral and postdoctoral students and (b) designing and implementing a comprehensive talent management system, including fast-track opportunities for young, promising faculty, transparent professional development plans, and financing mechanisms for training staff in highly ranked universities. The government’s STI Strategy for the 2020–2030 period emphasizes the need for closer and enhanced links between university-based research and industry-based demand for innovation. Specific instruments to foster firm-university partnerships include (a) matching grants for collaborative STI projects involving universities and firms working together, (b) incentives to encourage university researchers to rotate into firms, (c) innovation vouchers to allow small and medium enterprises (SMEs) to buy services from universities to assist on innovation projects, (d) industrial training opportunities for master’s and doctoral students, and (e) mutual board membership opportunities whereby universities invite industry members and vice versa. Finally, it is important to offer appropriate incentives within Cambodian universities to encourage academics and researchers to work closely with the economic sectors and with the local communities. This can be done by recognizing their contributions to knowledge and technology transfer activities (third mission of the University) in the yearly evaluations that should become standard practice, as well as in the criteria for promotion. Governance and Financing The principal problems faced by the Cambodian higher education system—insufficient expansion, persisting disparities, inadequate quality and relevance, limited research and technology transfer— xix are due, to a large extent, to the lack of modern governance and management and the low level of public investment in tertiary education. Governance of the Tertiary Education System and Institutions The governance of tertiary education systems, which can be defined as the structures, processes, and activities that are involved in the planning and direction of the institutions and people working in tertiary education, covers two key dimensions: system-wide governance and institutional governance. The rapid expansion in the past two decades has happened in an unplanned and uncoordinated manner without a long-term vision and with few strategic policy interventions. A large number of government ministries and agencies are involved in supervising and providing higher education in Cambodia, which makes it difficult to move the system forward in a coordinated way, to strengthen and coordinate quality assurance, to collect and use data to make informed policy decisions, and to avoid administrative overlap and costly duplication across providers. In total, no fewer than 16 ministries are involved in managing some part of the tertiary education system, including the Ministry of Finance that plays a significant role because of its supervisory responsibilities over the universities that have received the status of ‘Public Administrative Institutes’. There is a need, in particular, to strengthen the higher education management information system (HEMIS) to provide relevant information about a rapidly expanding system driven by the growth of the private subsector. At present, one of the limiting factors for proper analysis of the performance of the Cambodian tertiary education system to inform policy making is the lack of a comprehensive MIS. It is difficult and sometimes impossible to find relevant, reliable, and up-to- date data on the most basic operational aspects of tertiary education institutions, such as enrollment, graduates, income and expenditures, internal efficiency, research production, transfer of technology results, and so on. One of the most glaring omissions is the lack of detailed and regular information about the labor market outcomes of graduates. The Cambodian authorities rely on a centralized supervision and management approach in relation to HEIs, which leaves them with limited autonomy to operate. This restricts the ability of public HEIs to manage their financial and human resources in a flexible and efficient way, and to provide incentives to stimulate the performance of their academics. In the past seven years, the General Directorate for Higher Education has led concerted efforts to transform the tertiary education system. MoEYS formulated the first long-term plan for higher education in 2016 and started its implementation through the Higher Education Quality and Capacity Improvement Project (HEQCIP) supported by the World Bank. More recently, it has leveraged the second World Bank-supported project (Higher Education Improvement Project – HIEP) to promote educational innovations, strengthen research capacity, and consolidate management structures and processes within HEIs. An important achievement has been the definition of a comprehensive quality assurance framework and the establishment of clear mechanisms to implement it. This framework includes guidelines for curriculum development, teaching standards, research quality, and management processes. The National Accreditation Committee (NAC) is responsible for evaluating and accrediting tertiary education institutions and programs. While the government recognizes the need for greater institutional autonomy, Cambodian public HEIs are still subject to many controls and regulations and are sometimes subject to political xx interference. One positive change in recent years has been the possibility for some HEIs to be classified as PAIs, a status that gives them more autonomy than regular public universities. Comparing the three types of HEIs operating in Cambodia (regular public universities, public administrative institutions, private universities) helps identify areas where more flexibility and freedom could be given to HEIs, especially with respect to financial and human resources management. This would allow them to respond in an innovative way to the changing requirements of the labor market, especially in the context of the transition to the green economy that Cambodia has undertaken. Financing of Tertiary Education in Cambodia Estimates indicate that the GOC dedicates less than 0.4 percent of GDP to the subsector, resulting in very modest per-student expenditure levels, and certainly the lowest level among ASEAN countries. By comparison, Thailand spends 0.7 percent and Malaysia 1.1 percent. There is a sense that the youngest, regional public universities receive less resources than the older, established universities in Phnom Penh. Disparities in funding levels among public HEIs are due to the fact that budgets are allocated on the basis of history, without any transparent mechanism linked to objective criteria such as student and teacher numbers or some measure of performance. The cost of tertiary education, both at the household and individual levels, has increased substantially over the past decade. Analyzing the period between 2010 and 2019, household expenditures on tertiary education surged by 47 percent in real terms. During the same time frame, the individual annual cost of tertiary education witnessed a substantial increase of 62 percent. These findings underscore the considerable financial burden associated with pursuing tertiary education, highlighting the growing challenges faced by households and individuals in meeting the expenses involved. Options for Modern Governance and Sustainable Financing International experience indicates that it is unlikely that efforts to improve the quality of teaching and learning and raise the research output in the Cambodian universities could succeed without the modernization of governance structures and processes. Setting up a new governance framework that is adapted to the 21st century challenges must be guided by several key principles. Under the ‘state-supervisory’ model, the most important role of the State in tertiary education is to (a) set a vision for the future and elaborate a strategy to transform the vision into reality, (b) formulate the legal and regulatory framework that clarifies the powers of the agency responsible for tertiary education policy and defines the terms of institutional autonomy—including the responsibilities of the governing bodies of autonomous universities—and accountability, and (c) negotiate the overall budget for tertiary education with the Ministry of Finance and put in place the financial instruments and incentives to encourage tertiary education to innovate and improve their performance. The growing size of the private sector in the Cambodian tertiary education system makes it even more important to adopt a steering and supervisory governance philosophy rather than a centrally controlled system. To improve the governance of tertiary education at the national level, the GOC should clearly indicate that MoEYS has the primary responsibility for coordinating the work of all the ministries and public bodies involved in steering, managing, and monitoring HEIs operating in Cambodia. This important move, which should be accompanied by actual empowerment decisions, would xxi help ensure that all policy and funding decisions are fully aligned and serve the development of the various higher education subsectors in a complementary manner. As part of its coordination and policy stewardship role, MoEYS would oversee the elaboration of the vision for the future of higher education, seek ways of harmonizing resource levels across the subsectors, and have the power to grant institutional autonomy to all public HEIs operating in Cambodia. MoEYS would have two important responsibilities in that respect. First, to design and implement a capacity-building program for the leaders of both public and private HEIs. Such a program, tailored to address the unique challenges and opportunities that university presidents face in their roles, would serve to enhance their leadership, managerial, strategic, and interpersonal skills to effectively lead and manage their HEIs. The second key responsibility would be to oversee the design and implementation of a comprehensive MIS that would serve the information, monitoring, and evaluation needs of the entire tertiary education system. One of the important elements of the HEMIS would be a labor market observatory tasked with collecting and analyzing the employment results of all graduates. One of the priorities for NAC will be to build the professional capacity and provide the resources to undertake all the tasks involved in quality assurance (QA) compliance and enhancement in an efficient and effective manner. In parallel, the Cambodian government should consolidate existing QA mechanisms and align their delivery capacity with the rhythm of creation of new institutions and programs. In addition to strengthening the official QA mechanisms, the Cambodian government should also consider offering incentives for the establishment and/or consolidation of internal QA units in all HEIs, which are essential for the development of a genuine and effective QA culture. MoEYS has embraced the worldwide tendency to grant more autonomy to tertiary education institutions, reflecting the observation that HEIs can perform more effectively when they enjoy the flexibility needed for innovative behaviors and swift transformation in a rapidly changing landscape. Institutional autonomy is a key element in the successful transformation of public tertiary education institutions. Tertiary education institutions must therefore be in a position to exercise meaningful control over the principal factors affecting the quality and costs of their programs. This applies to organizational autonomy, financial autonomy, human resources management, and academic autonomy. Increased institutional autonomy would need to be accompanied by a well-defined accountability framework for all public institutions. International experience indicates that good accountability practices involve at least two types of yearly reports at the very minimum: (a) an independent financial audit report according to private practice law and international accounting standards and (b) an annual performance report showing progress against each university’s own strategic objectives and yearly plan. Elaborating a sustainable funding strategy for the Cambodian tertiary education system would involve careful consideration of the following two elements: • Resource mobilization options: how can public and private funding sources be mobilized in the most effective manner? • Resource allocation approaches: what are adequate mechanisms to distribute public resources in a manner that encourages innovation and rewards good performance? xxii To successfully pursue its economic growth and diversification agenda, Cambodia needs to invest more on tertiary education to produce a greater quantity and quality of skills and conduct the research needed to promote innovation and higher productivity in all economic sectors. Notwithstanding the budgetary constraints faced by the government, the country should try to progressively double the share of public funding invested in tertiary education, from the current 0.4 percent of GDP to at least 0.8 percent of GDP by 2030, excluding tuition fees paid out-of- pocket. To complement these efforts, the GOC could envisage to provide financial incentives to accredited private providers that could encourage further growth of the supply of higher education places. In the field of higher education, a growing number of countries have relied on public-private partnerships (PPPs) to fund investments. This is an approach that the GOC could explore as a way of mobilizing additional resources from the private sector and complementing public investment in tertiary education. At the institutional level, the Cambodian universities should not count only on the government’s financial support. To complement the operational and investment resources provided by the public purse, they should pursue an active income diversification strategy. This would require systematically looking at opportunities to tap the following principal funding modalities: (a) tuition fees, (b) contract research and consultations, (c) sale of goods and services, and (d) donations from fund raising. Based on the lessons arising from the evolution of funding mechanisms in countries of the Organisation for Economic Co-operation and Development (OECD) in the past decade, the allocation of public funds for tertiary education in Cambodia would be well served to reflect the following eight guiding principles that reflect good international practices: (a) closer alignment with national priorities, (b) explicit link to performance, (c) equity among all population groups, (d) consistency and compatibility among the various financing instruments, (e) objectivity and transparency in the allocation process and criteria, (f) stability over time, (g) allocation as a block grant, and (h) institutional autonomy and accountability. With these guiding principles in mind, the GOC could introduce a combination of performance- based budget allocation mechanisms that would provide financial incentives for improved institutional results and better alignment with national policy goals. The Ministry of Finance and the Ministry of Education, working together, may consider the following three types of innovative allocation mechanisms, separately or combined, to achieve this purpose: (a) funding formulas, (b) performance contracts, and (c) competitive grants. In many universities throughout the world, faculty members, administrative staff, and students view the internal budget process as a black box without sufficient information about the rules and mechanisms underlying allocation decisions. In recent years, however, a growing number of institutions have explored alternative approaches to formulate and implement their operating budgets in a rational way while, at the same time, providing more transparency and accountability. The principal motivation behind the shift has been to make strategic allocation decisions in times of diminished public resources and to offer effective incentives for generating new or additional sources of revenue. As Cambodian universities seek to balance various needs and priorities to ensure that they fulfill their missions effectively, they must keep the following considerations in mind: xxiii • Strategic Planning: Align resource allocation with the priorities established in the strategic plan that outlines the university’s mission, goals, and priorities. The strategic plan should be informed by a benchmarking exercise comparing resource allocation practices with peer institutions to identify good practices and areas for improvement. • Performance Metrics: Define and use performance metrics and key performance indicators (KPIs) to evaluate the effectiveness and efficiency of various programs and units. Allocate resources to programs that demonstrate positive outcomes. • Sustainability: Assess the long-term sustainability of resource allocation decisions and avoid short-term fixes that may lead to financial instability in the future. • Risk Management: Evaluate potential risks and uncertainties when allocating resources. Maintain contingency funds to address unforeseen challenges and emergencies. • Flexibility: Maintain flexibility in resource allocation to adapt to changing circumstances that may necessitate adjustments in allocation strategies. • Equity and Inclusion: Ensure that resource allocation is equitable and supports diversity and inclusion. Address disparities in funding, faculty recruitment, and student support services to promote a more inclusive learning environment. • Communication and Transparency: Maintain open and transparent communication with all stakeholders about the resource allocation process. This helps build trust and understanding of the decisions made. Implementation of Policy Measures To help the national authorities with the planning and sequencing of possible reforms, the following tables present the complete list of measures proposed in this report categorized on the basis of three complementary filters. The first table organizes the measures in terms of sequencing, from short term to medium term, to long term. The second table assesses the technical, financial, and political cost of each measure. Finally, the third table presents a possible distribution of responsibilities among the main entities that would be involved in the design and implementation of the proposed measures. In the first instance, it appears that, while some measures are so important that they should start immediately and continue for a long time over the medium and long term, most measures could be carried out in a relatively short horizon (short and/or medium term). The information from Table E.1 can help the Government assess the time dimensions of the necessary reforms and prioritize its actions. Table E.1 - Sequencing of policy options Short- Medium- Long- Policy Measures Term Term Term A. Increasing Coverage and Improving Equity Formulate vision and strategy for expanding higher education access and defining the future size and institutional configuration of the √ system Implement a plan to diversify the tertiary education system √ √ Elaborate a vison and strategy for equity promotion √ √ √ xxiv Short- Medium- Long- Policy Measures Term Term Term Put in place a comprehensive financial aid support system through √ √ scholarships and student loans Set up incentives for non-monetary equity promotion measures √ √ (outreach and retention) Include equity-related criteria in quality assurance system √ Design and implement institutional equity promotion plan √ √ B. Improving Quality and Relevance Better Preparation of Incoming Students Offer remedial courses to incoming high school graduates √ √ Use predictive analytics to identify at risk students and reduce dropout √ rates Curriculum Innovations to Align Programs with Labor Market Needs Strengthen links with productive sectors (for example, co-design of programs, internships, in-company placements, engagement of √ √ practitioners from industry) Introduce more multidisciplinary programs √ Build effective labor market feedback mechanisms √ Introduce more flexibility in the curriculum by allowing more √ √ electives Establish and strengthen career advisory centers within each HEI √ √ Establish cooperative learning programs that alternate campus √ √ learning periods and regular in-firm internships Incorporate training for entrepreneurship into programs offered by √ most HEIs Innovative Pedagogical Practices Shift to interactive, collaborative, and experiential learning √ √ Reward teaching excellence on par with outstanding research through √ √ grants Remodel the physical infrastructure and environment of universities to √ √ promote active and interactive learning Build capacity of instructors to support innovative pedagogical √ √ approaches Alignment of Assessment Methods with Innovative Curriculum and Pedagogy Adopt a competency-based education model and organize assessment √ √ accordingly Shift from high-stake summative evaluation to formative assessment √ √ model Promotion of Green Skills Programs Establish a task force comprised of government officials, HEI representatives, and industry experts to develop a comprehensive √ √ strategy for promoting green skills programs xxv Short- Medium- Long- Policy Measures Term Term Term Implement a clear framework for integrating climate change and √ √ environmental issues into the curriculum Integrate green programs that adopt hands on and active learning √ √ approach Establish specialized centers or institutes dedicated to green skills training and research, collaborating with industry partners to ensure √ √ alignment with emerging market needs Implement a monitoring and evaluation framework to assess the effectiveness and impact of green skills programs in meeting the needs √ √ of the green economy C. Strengthening Research and Innovation Alignment of University Research Agenda with National Priorities Define a strong research agenda and identify the number of research- √ intensive universities to be supported Formulate policies and define incentives to attract top-quality faculty √ from the diaspora Increased Research Funding Mobilize additional resources to fund the country’s research agenda √ √ √ Put in place adequate research funding allocation mechanisms √ Provide funding for doctoral students and postdocs √ √ √ Building a Critical Mass of Researchers Design and implement an effective talent management system (fast- track tenure track for promising young academics, professional √ √ √ development plans) Revamp graduate schools to attract high-quality domestic and √ √ international PhD students Build up the scientific infrastructure of universities √ √ Strengthening Research Links between Universities and Industry Provide matching grants for collaborative STI projects involving √ √ universities and firms working together Offer incentives to encourage university researchers to rotate into √ √ √ firms Provide innovation vouchers to allow SMEs to buy services from √ √ universities to support innovation projects Offer industrial training opportunities for master’s and doctoral √ √ √ students Provide incentives within universities to encourage researchers to √ √ √ work with economic sectors and local communities D. Modernizing Governance and Increasing Financing Governance Improve MoEYS coordination and stewardship at national level √ Design and implement a capacity building program for leaders of both √ √ public and private HEIs xxvi Short- Medium- Long- Policy Measures Term Term Term Design and implement a comprehensive MIS √ √ Strengthen the official QA mechanisms √ Provide incentives for the establishment and consolidation of internal √ √ QA units in all HEIs Design measures to increase autonomy and accountability of HEIs √ Implement measures to increase autonomy and accountability of HEIs √ √ Financing Increase the share of public funding invested in tertiary education √ √ Introduce an adequate combination of performance-based budget allocation mechanisms (that is, funding formulas, performance √ √ contracts, and competitive grants) Provide financial incentives to accredited private providers to increase √ supply of HEIs Mobilize resources through PPPs √ √ √ Implement income diversification strategy at HEIs √ √ Set up a matching fund to promote fund-raising at HEIs √ √ The second table is perhaps the most important of all three. It offers a panorama of the degree of difficulty of each proposed measure. The first element has to do with the technical design of the reforms. Here, the national authorities can learn from experience in other parts of the planet to implement the most adequate approach in relation to Cambodia’s specific characteristics and needs. The second dimension is the financial cost of the planned measures. With all the good will in the world, the Government of Cambodia cannot finance only the higher education sector. Instead, it must balance competing demands on the national budget, taking the level of priority of each reform measure under consideration. Finally, it is important to acknowledge the political difficulty involved in some of the measures that the Government could be implementing. One of the most difficult tasks faced by political leaders intent on launching tertiary education reform is to generate sufficient support in favor of the proposed changes. Garnering the necessary political and legal support involves three important phases: (i) a social assessment of the proposed change to understand the needs and preoccupations of all major stakeholders, (ii) consensus building through a wide consultation process to inform all stakeholders and build confidence about the potential benefits of the proposed policy measures, and (iii) appropriate incentives. Designing and implementing a sustainable financing strategy for higher education, for example, is one of the most complex tasks for any government in the world, even in wealthy countries, because of the technical complexity, the high financial cost in terms of public investment, and the political challenge of getting sensitive measures approved and accepted. xxvii Table E.2 - Implementation difficulty of policy options Technical Financial Political Policy Measures Complexity Cost Sensitivity A. Increasing Coverage and Improving Equity Formulate vision and strategy for expanding higher education access and defining the future size and institutional configuration ++ + + of the system Implement a plan to diversify the tertiary education system ++ ++ + Elaborate a vison and strategy for equity promotion + + + Put in place a comprehensive financial aid support system through +++ ++ + scholarships and student loans Set up incentives for non-monetary equity promotion measures ++ + + (outreach and retention) Include equity-related criteria in quality assurance system + + + Design and implement institutional equity promotion plan ++ + + B. Improving Quality and Relevance Better Preparation of Incoming Students Offer remedial courses to incoming high school graduates + + + Use predictive analytics to identify at risk students and reduce ++ + + dropout rates Curriculum Innovations to Align Programs with Labor Market Needs Strengthen links with productive sectors (for example, co-design of programs, internships, in-company placements, engagement of + + + practitioners from industry) Introduce more multidisciplinary programs ++ + + Build effective labor market feedback mechanisms + + + Introducing more flexibility in the curriculum by allowing more + + + electives Establish and strengthen career advisory centers within each HEI ++ + + Establish cooperative learning programs that alternate campus ++ + + learning periods and regular in-firm internships Incorporate training for entrepreneurship into programs offered by + + + most HEIs Innovative Pedagogical Practices Shift to interactive, collaborative, and experiential learning ++ + + Reward teaching excellence on par with outstanding research + + ++ through grants Remodel the physical infrastructure and environment of + ++ + universities to promote active and interactive learning Build capacity of instructors to support innovative pedagogical ++ + + approaches Alignment of Assessment Methods with Innovative Curriculum and Pedagogy xxviii Technical Financial Political Policy Measures Complexity Cost Sensitivity Adopt a competency-based education model and organize +++ + + assessment accordingly Shift from high-stake summative evaluation to formative ++ + + assessment model Promotion of Green Skills Programs Establish a task force comprised of government officials, HEI representatives, and industry experts to develop a comprehensive ++ + + strategy for promoting green skills programs Implement a clear framework for integrating climate change and + + + environmental issues into the curriculum Integrate green programs that adopt hands on and active learning ++ + + approach Establish specialized centers or institutes dedicated to green skills training and research, collaborating with industry partners to ensure ++ + + alignment with emerging market needs Implement a monitoring and evaluation framework to assess the effectiveness and impact of green skills programs in meeting the ++ + + needs of the green economy C. Strengthening Research and Innovation Alignment of University Research Agenda with National Priorities Define a strong research agenda and identify the number of ++ + + research-intensive universities to be supported Formulate policies and define incentives to attract top-quality ++ + + faculty from the diaspora Increased Research Funding Mobilize additional resources to fund the country’s research agenda + +++ +++ Put in place adequate research funding allocation mechanisms ++ + ++ Provide funding for doctoral students and postdocs + ++ + Building a Critical Mass of Researchers Design and implement an effective talent management system (fast-track tenure track for promising young academics, ++ + + professional development plans) Revamp graduate schools to attract high-quality domestic and ++ ++ + international PhD students Build up the scientific infrastructure of universities + +++ + Strengthening Research Links between Universities and Industry Provide matching grants for collaborative STI projects involving ++ ++ + universities and firms working together Offer incentives to encourage university researchers to rotate into + + + firms Provide innovation vouchers to allow SMEs to buy services from ++ ++ + universities to support innovation projects xxix Technical Financial Political Policy Measures Complexity Cost Sensitivity Offer industrial training opportunities for master’s and doctoral + + + students Provide incentives within universities to encourage researchers to + + + work with economic sectors and local communities D. Modernizing Governance and Increasing Financing Governance Improve MoEYS coordination and stewardship at national level + + ++ Design and implement a capacity building program for leaders of + + + both public and private HEIs Design and implement a comprehensive MIS ++ + ++ Strengthen the official QA mechanisms + + + Provide incentives for the establishment and consolidation of + + ++ internal QA units in all HEIs Design measures to increase autonomy and accountability of HEIs ++ + + Implement measures to increase autonomy and accountability of + + ++ HEIs Financing Increase the share of public funding invested in tertiary education + ++ ++ Introduce an adequate combination of performance-based budget allocation mechanisms (that is, funding formulas, performance ++ ++ ++ contracts, and competitive grants) Provide financial incentives to accredited private providers to ++ + ++ increase supply of HE places Mobilize resources through PPPs + + + Implement income diversification strategy at HEIs ++ + + Set up a matching fund to promote fund-raising at HEIs + ++ + Note: (-) neutral; (+) low; (++) medium; (+++) high. The third table seeks to show who would be expected to take the lead in designing and/or implementing the proposed measures, with a focus on the respective roles of national-level government agencies, such as the Ministry of Education, the Ministry of Finance, and the Ministry in charge of civil service administration, and the higher education institutions themselves. The table clearly indicates that the implementation of most of the proposed reforms is a shared responsibility. It would be a challenge for higher education institutions to transform themselves without a favorable authorizing environment. Conversely, the Government may take many positive measures that would have limited results if the HEIs do not play a proactive role in introducing innovations and working hard at improving the relevance of their programs and the quality of delivery. xxx Table E.3 - Distribution of implementation responsibilities Government Policy Measures HEIs Agencies A. Increasing Coverage and Improving Equity Formulate vision and strategy for expanding higher education access and defining the future size and institutional configuration √ of the system Implement a plan to diversify the tertiary education system √ Elaborate a vison and strategy for equity promotion √ Put in place a comprehensive financial aid support system through √ scholarships and student loans Set up incentives for non-monetary equity promotion measures √ (outreach and retention) Include equity-related criteria in quality assurance system √ Design and implement institutional equity promotion plan √ B. Improving Quality and Relevance Better Preparation of Incoming Students Offer remedial courses to incoming high school graduates √ Use predictive analytics to identify at risk students and reduce √ dropout rates Curriculum Innovations to Align Programs with Labor Market Needs Strengthen links with productive sectors (for example, co-design of programs, internships, in-company placements, engagement of √ practitioners from industry) Introduce more multidisciplinary programs √ Build effective labor market feedback mechanisms √ Introducing more flexibility in the curriculum by allowing more √ electives Establish and strengthen career advisory centers within each HEI √ Establish cooperative learning programs that alternate campus √ learning periods and regular in-firm internships Incorporate training for entrepreneurship into programs offered by √ most HEIs Innovative Pedagogical Practices Shift to interactive, collaborative, and experiential learning √ Reward teaching excellence on par with outstanding research √ through grants Remodel the physical infrastructure and environment of √ universities to promote active and interactive learning Build capacity of instructors to support innovative pedagogical √ approaches Align Assessment Methods with Innovative Curriculum and Pedagogy xxxi Government Policy Measures HEIs Agencies Adopt a competency-based education model and organize √ assessment accordingly Shift from high-stake summative evaluation to formative √ assessment model Promote Green Skills Programs Establish a task force comprised of government officials, HEI representatives, and industry experts to develop a comprehensive √ strategy for promoting green skills programs Implement a clear framework for integrating climate change and √ environmental issues into the curriculum Integrate green programs that adopt hands on and active learning √ approach Establish specialized centers or institutes dedicated to green skills training and research, collaborating with industry partners to ensure √ alignment with emerging market needs Implement a monitoring and evaluation framework to assess the effectiveness and impact of green skills programs in meeting the √ needs of the green economy C. Strengthening Research and Innovation Alignment of University Research Agenda with National Priorities Define a strong research agenda and identify the number of √ research-intensive universities to be supported Formulate policies and define incentives to attract top-quality √ faculty from the diaspora Increased Research Funding Mobilize additional resources to fund the country’s research agenda √ Put in place adequate research funding allocation mechanisms √ Provide funding for doctoral students and postdocs √ Building a Critical Mass of Researchers Design and implement an effective talent management system √ (fast-track tenure track for promising young academics, professional development plans) Revamp graduate schools to attract high-quality domestic and √ international PhD students Build up the scientific infrastructure of universities √ Strengthening Research Links between Universities and Industry Provide matching grants for collaborative STI projects involving √ universities and firms working together Offer incentives to encourage university researchers to rotate into √ firms Provide innovation vouchers to allow SMEs to buy services from √ universities to support innovation projects xxxii Government Policy Measures HEIs Agencies Offer industrial training opportunities for master’s and doctoral √ students Provide incentives within universities to encourage researchers to √ work with economic sectors and local communities D. Modernizing Governance and Increasing Financing Governance Improve MoEYS coordination and stewardship at national level √ Design and implement a capacity building program for leaders of √ both public and private HEIs Design and implement a comprehensive MIS √ Strengthen the official QA mechanisms √ Provide incentives for the establishment and consolidation of √ internal QA units in all HEIs Design measures to increase autonomy and accountability of HEIs √ Implement measures to increase autonomy and accountability of √ HEIs Financing Increasing the share of public funding invested in tertiary education √ Introduce an adequate combination of performance-based budget √ allocation mechanisms (that is, funding formulas, performance contracts, and competitive grants) Provide financial incentives to accredited private providers to √ increase supply of HEIs Mobilize resources through PPPs √ √ Implement income diversification strategy at HEIs √ Set up a matching fund to promote fund-raising at HEIs √ The three tables, especially the first two, must be carefully analyzed together as they provide different but complementary information to guide the development and reform efforts of the Government of Cambodia. For example, while the national authorities may wish to implement some important measures, such as the proposed governance and financing reforms, as rapidly as possible, the financial cost or political difficulty associated with these measures must be taken into consideration in a realistic manner before launching them. xxxiii 1. Introduction “The quality of their learning experiences and the environment in which students learn will shape the future development of our society.” Hunt Report, Ireland, 2011 1.1 Background 1.1.1 Importance of Tertiary Education for Cambodia’s Development The 2021 World Bank strategy for tertiary education reaffirms that, today more than ever, tertiary education systems are at the heart of the substantial social and economic transformations that are required as the world seeks to achieve green and equitable development in the wake of the COVID- 19 pandemic. All the countries on the planet—from the poorest to the wealthiest—need strategically designed and effectively implemented investments in tertiary education to develop their talent and leadership pool; generate and apply knowledge to resolve local, regional, and planetary challenges; and participate actively in the global knowledge economy (Arnhold and Bassett 2021). Cambodia is aware that investing in tertiary education is indispensable to building dynamic economies and cohesive societies driven by innovation and technology. Tertiary education supports knowledge-driven economic growth and poverty reduction strategies by (a) training a qualified and adaptable labor force, including high-level scientists, professionals, technicians, basic and secondary education teachers, and future government, civil service, and business leaders; (b) generating new knowledge through basic and applied research; and (c) providing a platform for accessing existing stores of global knowledge and adapting this knowledge to local use. Universities are unique in their ability to integrate and create synergy among these three dimensions (Salmi 2017). 1.1.2 Government Development Agenda and Tertiary Education Policy The Rectangle Strategy Phase IV, published in 2018, is the blueprint guiding Cambodia’s development for the next five years and laying the foundations for the country’s journey toward the goals of Cambodia Vision 2030 and 2050. It focuses on four strategic goals: (a) ensuring economic growth of around 7 percent per year; (b) creating more jobs, in terms of both quality and quantity aspects; (c) achieving the poverty reduction target of below 10 percent; and (d) further strengthening capacity and governance of public institutions. In line with these four strategic goals, the Government of Cambodia (GOC) identified four priorities, namely human resource (HR) development, economic diversifications, promotion of private sector, and inclusive and sustainable development. 2 The Education 2030 Roadmap, published in 2019, is Cambodia’s official education strategy document to implement the HR development mentioned above. It maps out the vision, objectives, and plans to make rapid progress toward achieving the fourth Sustainable Development Goal 2 Royal Government of Cambodia. 2018. “Rectangle Strategy Phase IV.” https://data.opendevelopmentcambodia.net/laws_record/rectangular-strategy-phrase-4-of-the-royal-government-of- cambodia/resource/5ca9f6f8-8bac-4223-a177-b162c3c4012b (SDG-4) (MoEYS 2019a). 3 As Cambodia seeks to transition from a lower-middle-income to an upper-middle-income country by 2030, the government recognizes that HR development is indispensable to provide all citizens with the knowledge, entrepreneurship and innovation spirit, and ethical values to promote sustainable and inclusive economic growth and diversification, and increase the competitiveness of the national economy. Improving the quality of education and strengthening science and technology capacities is one of the four pillars of the country’s human development strategy. In this context, the Roadmap offers a comprehensive framework for providing equitable quality and inclusive lifelong learning opportunities for the entire Cambodian nation. In its diagnosis of the higher education situation, the Roadmap acknowledges that the sector has been relatively neglected over the past two decades as far as policy focus and public funding are concerned (MoEYS 2019a). The Education Strategic Plan 2019–2023, formulated for implementing reforms and establishing a robust base for education in 2030 and beyond, identifies two main objectives for higher education development. The first objective is to enhance access and improve the quality of higher education programs toward national and international accreditation. To this end, the government focuses on increasing result-based investment and research, higher education partnership, and the number of full-time academic staff with PhD qualifications. Additionally, to accomplish the second objective—developing a governance and management system to support HEIs to become fully autonomous—the government focuses on strengthening financial and human resources management systems and quality assurance systems (MoEYS 2019b). The Higher Education Sub-Sector Strategy 2021–2030, published in March 2021, serves as a guideline for higher education institutions (HEIs) to align their missions and strategies with the government’s visions and policies. One of the two key priorities identified is to establish confidence in higher education by producing quality graduates, enhancing the quality of teaching and research, and ensuring financial transparency in the allocation and use of resources. Another priority is to develop programs that address the labor market needs and contribute to national development through their emphasis on investment and institutional capacity. 1.1.3 Overview of Past World Bank Projects in Support of Higher Education The World Bank has been supporting the higher education system in Cambodia since 2005. The Cambodia Education Sector Support Project (CESSP: 2005–2010) intended to enhance access to educational services by addressing supply, demand, quality, and efficiency constraints, with special focus on the poor and underserved communes. Through this IDA-financed project, the World Bank (a) expanded educational facilities in poor and underserved areas, (b) provided targeted scholarships to disadvantaged children, (c) strengthened decentralized quality education service delivery and established a national assessment system, (d) supported strengthening the capacity of the Department of Higher Education (DHE) and Accreditation Committee in Cambodia (ACC), and (e) expanded of the library of the Royal University of Phnom Penh (RUPP). From 2010 to 2017, the Higher Education Quality and Capacity Improvement Project (HEQCIP) responded to the growing concerns that the rapid increase in higher education enrollments had not been accompanied by changes in educational or institutional quality. The 3 SDG-4 aims to “ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.” 2 project development objectives (PDOs) of HEQCIP were to (a) improve the quality of teaching, management, and research in project-supported entities and (b) pilot the targeting of disadvantaged students for enhanced retention. The project (a) piloted a poverty-focused scholarship program to increase equitable access to higher education, (b) improved HEI research capability through a pilot research grant program, (c) improved the quality and relevance of higher education provision through fellowship programs as well as a series of training sessions, (d) strengthened institutional management capacity of a target HEI, and (e) supported the completion of the Vision 2030 and the Higher Education Roadmap and development of the Higher Education Management Information System (HEMIS). The ongoing IDA-financed Higher Education Improvement Project (HEIP) 4 is built on the achievements of HEQCIP 5, with a strong focus on producing graduates with relevant skills for the labor market in science, technology, engineering, and mathematics (STEM) and agriculture, and a sectoral governance reform. The PDO of HEIP is to improve the quality and relevance of higher education and research mainly in STEM and agriculture at targeted HEIs, and to improve governance in the sector. The HEIP project (a) supports improving teaching and learning capacity via forming partnership between target HEIs and overseas HEIs and improving the internal and external accountability of the target HEIs; (b) provides research grants to improve the quality and relevance of research in STEM and agriculture; and (c) supports strengthening sectoral governance through the improvement of quality assurance mechanisms, expansion of information systems, and support the development of legislation for autonomous HEIs. The proposed IDA Second Higher Education Improvement Project II (HEIP2) is designed to expand from the achievements of the current HIEP and the previous HEQCIP. It is currently in the pipeline and will advance the World Bank’s engagement in the subsector by continuing to implement the HEIP activities at another level and proposing new activities, with a strong focus on increasing the quality of HEI’s academic programs to meet national or international standards and to strengthen the link between HEIs and industry. HEQCIP and HEIP have also built a strong foundation for sectoral capacity development and have created a healthy policy environment to advance to a larger investment in selected HEIs and support sectoral strengthening. Table 1.1 summarizes the key features of these past and ongoing higher education projects. 4 HEIP was approved on April 26, 2018, became effective on September 17, 2018, and will close on June 30, 2024. However, the project may extend its closing date to accommodate the construction completion. 3 Table 1.1 - World Bank past and ongoing higher education projects Project CESSP (2005–2010) HEQCIP (2010–2017) HEIP (2018–2024) Key Issues • Gender disparities • Making institutional • Shortages of human • Disparities in education management more resources in STEM participation rates across systematic and • Low enrollment in higher different income groups transparent education • Poor efficiency rates at • Procedures and policies • HEI research and primary and lower for staff development development (R&D) secondary education • Bringing ACC to a level capacity levels of good international • Access and equity in • Low quality of education practice tertiary education service delivery • Procedures and policies on teaching and research • Scholarships for the poor and incentives to study in priority fields Approaches • Expanding educational • Building the basic • Upgrading of curriculum facilities in poor and foundations for sector and faculty qualification underserved areas. governance in target programs and • Providing targeted • Piloting institutional establishing new scholarships to management capacity graduate programs disadvantaged children. development program at • Constructing and • Strengthening a target HEI rehabilitating university decentralized quality • Improving the quality and buildings, classrooms education service delivery relevance of higher • Strengthening links with • Establishing a national education provision industries assessment system. through fellowship • Improving institutional • Strengthening the programs as well as a capacity institutional capacity of series of training sessions • Supporting private HEIs the DHE • Piloting a poverty to upgrade curriculum • Strengthening the ACC focused scholarship and improve institutional program to increase capacity • Constructing an extension equitable access to higher • Improving research in of library at RUPP education STEM and agriculture • Improving HEI research • Supporting legislation capability through a pilot for autonomous HEIs research grant program. • Improving quality assurance • Expanding information system Results • Increased overall net • Improved the overall • Target HEIs benefited enrollment rate for lower development, from partnership with secondary and improved management, overseas HEIs in gender parity coordination, and increasing the quality of • Increased primary governance of the higher their academic programs education completion education subsector and faculty members rates with a range of • Upgraded the capacity of • Increased access and teacher training for eligible HEIs to conduct equity in higher primary teachers research and generate education • Improved learning innovation outputs • Research projects linked outcome in Khmer and • Established an efficient with industry Math and sustainable • Target HEIs built the 4 Project CESSP (2005–2010) HEQCIP (2010–2017) HEIP (2018–2024) • Increased number of competitive mechanism systems to improve the participants in Basic for managing research institutional governance Education Teacher grant awards to HEIs for ensuring their Training course • Enhanced the retention autonomy and • Developed teacher rates of project-supported accountability standards which was scholarship recipients • Developed the subsector approved by the MoEYS • Strengthened ACC and strategy and other • Awarded scholarships to institutionalized the ACC policies including poor sixth grade students standards internal quality • Schools and provinces • Higher Education assurance, research received support to work Governance and Finance management system, with the Children Friendly policy paper adopted by human resources, School policy the MoEYS HEMIS, and others • Expanded the leadership • Higher Education Vision • Extended financial programs by almost four and Strategy 2030 support to six private times adopted by the MoEYS HEIs to improve their academic programs and • Established a national • HEMIS developed and institutional governance assessment through the piloted with at least four creation of an Education HEIs Quality Assurance Department within the MoEYS • Published and disseminated the HEI accreditation standards • Constructed an extension of the library at RUPP Gaps • Shortcoming in • Limited peer partnerships • Programs need construction target by and networks of HEIs accreditation to ensure 15.3 percent • Coordination between their quality and gain • Not achieving the DHE and ACC for recognition from adoption of higher quality assurance employers and overseas education vision within • Linking research HEIs. the time frame activities to the Industrial • Digitalizing subsector • A downward trend in the Development Policy operation transition rate from • Expanding the national primary to secondary scholarship program education • Measuring quality of HEI • Limited improvement in programs through student student-teacher ratio in tracer studies lower secondary 1.1.4 Overview of the Cambodian Tertiary Education System Cambodia’s tertiary education system comprises universities, technical institutes, and a Royal Academy. The various institutions offer associate degrees, bachelor’s degrees, master’s degrees, and doctoral degrees. These institutions operate under the authority of different government ministries/agencies. The Cambodian higher education system had only one HEI in 1979, and until 1997, all HEIs were public. Following policy changes allowing the establishment of private tertiary education institutions, there has been rapid growth of branch/offshore campuses associated with both public and private universities, resulting in 132 HEIs by 2022 (Table 1.2). 5 Table 1.2 - Distribution of enrollment in 2022 Number of Student Type of Institutions Institutions Enrollments Public Universities 48 62,991 (35.8%) Private universities 84 112,971 (64.2%) Grand Total 132 175,962 (100%) Source: Ministry of Education, Youth and Sport. Cambodia has made rapid progress in expanding access to tertiary education during the past two and a half decades. The number of HEIs increased fifteen-fold from just 8 in 1997 to 23 in 2000 to 128 in 2021, with a corresponding increase in faculty and staff from 2,400 in 2000 to 16,700 in 2020 (Sok and Burny 2021). This growth in HEIs has been accompanied by a dramatic increase in tertiary student enrollment: the number of HEI students increased by over 500 percent from 28,000 in 2000 to 175,962 in 2022. Much of the growth in the subsector came from private HEIs, which are by now greater in number than public HEIs (World Bank 2018). Despite this impressive growth, Cambodia is still far behind most of the other countries in Southeast Asia (SEA) in terms of access (Figure 1.1). Among the 10 SEA countries, apart from Lao People’s Democratic Republic, all others have higher gross enrollment rates (GERs) than Cambodia, and six of them have GERs that are over 31 percent. 6 There is also evidence of significant disparities in access to tertiary education across income groups, geographical location, and gender. 6 GER is defined as the number of students enrolled at a given level of education at any time during the reference academic year, regardless of age, expressed as a percentage of the official school-age population corresponding to the same level of education. For the tertiary level, the population used is the 7-year age group starting from the official secondary school graduation age (16–22 years). 6 Figure 1.1 - Gross enrollment rates in Southeast Asia (%) 100% 91.1 Gross enrollment rate (%) 80% 60% 49.1 43.2 37.9 40% 31.4 31.2 20.4 17.6 20% 14.7 13.8 0% Source: World Development Indicators for all countries except Cambodia (data for all countries for 2019 except for Myanmar [2018] and Timor Leste [2010]). GER for Cambodia is based on authors’ calculations using CLSMS (2019). The Cambodian tertiary education system also faces serious issues in terms of quality and relevance of existing programs, with a large mismatch between the needs of the labor market and what HEIs actually offer. Further, most HEIs are teaching institutions, without the scientific capacity to carry out research and technology transfer functions. The COVID-19 pandemic confirmed the insufficient preparedness and lack of resilience of the Cambodian tertiary education system. In addition to the digital divide and internet connection challenges experienced by many students and academics, universities in Cambodia have struggled to rapidly launch quality distance learning programs. Many lack experienced instructional designers, sufficient educational resources, an adequate grasp of the specifics and nuances of online education, and strong institutional capacity to deliver it. Many of the problems affecting the tertiary education system are due, to a large extent, to the low level of public investment in higher education and the lack of modern governance and management. The rapid expansion of the past two decades has happened in an unplanned and uncoordinated manner without a long-term vision and strategic policy interventions. In summary, with a tertiary GER of 14.7 percent—one of the lowest in Southeast Asia—serious issues of low quality and relevance, and an embryonic research capacity, Cambodian universities and other tertiary education institutions have not yet demonstrated the capacity to become engines of development. At the same time, however, tertiary education graduates in East Asia continue to achieve high rates of return on investment in their education (Table 1.3). This reflects the high demand for advanced skills and inadequate supply in the region. 7 Table 1.3 - Educational rates of return by region (%) Region Primary Secondary Tertiary Countries Sub-Saharan Africa 14.4 10.6 21.0 33 South Asia 6.0 5.0 17.3 7 Latin America and the Caribbean 7.8 5.4 15.9 23 East Asia 13.6 5.3 14.8 13 Middle East and North Africa 15.0 4.5 10.5 10 Europe and Central Asia 13.9 4.7 10.3 20 All Countries 11.5 6.8 14.6 130 Source: Montenegro and Patrinos 2014. Note: These estimates are based on the most recent data available for each country in 2014. While most countries (above 75 percent) had estimates for years ranging from 2005 to 2012, some other countries’ estimates were based on relatively older data going as far back as 1992. 1.2 Objectives of the Report The main objective of this study is to assess the performance of Cambodia’s tertiary education system in terms of equitable access, labor market relevance, and research output, and to provide policy recommendations to the government and all stakeholders in the tertiary education sector. This will inform priority reforms and investments to strengthen the sector overall and, specifically, improve coverage, relevance, research, and governance. Building on the latest analytical work carried out in 2017 ahead of the preparation of an ongoing higher education operation supported by the World Bank, the study is an important step toward overcoming knowledge gaps about the main drivers of the results of the Cambodian tertiary education system and institutions. It will shed light, in particular, on the factors explaining disparities in access, the mismatch between higher education programs and labor market needs, the capacity of higher education to train the specialists and technicians needed for the green economy, and shortcomings in the governance set up and processes that impede both public and private HEIs from operating in a flexible and efficient manner. The findings of the report will significantly add to the evidence base for identifying policy options to improve equity, relevance, and governance at both the national and institutional levels. Specifically, the report seeks to answer the following research questions: Access and Disparities • What is the state of access to tertiary education, and what are the main trends in access? • How does access to tertiary education vary across genders, locations, and income groups? • What are the main factors explaining existing disparities? Relevance • How is higher education valued by the market as reflected in returns to education, and how do the returns vary across different population groups based on their educational background and socioeconomic characteristics? 8 • To what extent do tertiary education programs in Cambodia respond to labor market needs as reflected in student enrollment patterns across faculties, and the placement of graduates in jobs that are aligned with their education backgrounds? How satisfied are employers with the quality and performance of graduates? • To what extent and in what way are HEIs collaborating with industry? • Are tertiary education institutions preparing young Cambodians for future jobs in the green economy? Governance • What are the system-wide governance challenges faced by the tertiary education sector in terms of sector coordination, policy making, quality assurance, autonomy of institutions, and allocation of public financing? • What are the institution-level challenges related to organizational structures, financing, staffing, and academic autonomy? • What can Cambodia do to modernize governance to enhance access to and improve the market relevance of higher education? • How can HEIs and industry be brought closer to improve the relevance of programs and strengthen research capacity? 1.3 Methodology Consultations. This report was principally informed by consultations with key stakeholders and visits to a small sample of universities in December 2022 and May 2023. The consultations included, among others, officials of the Ministry of Education, Youth and Sports (MoEYS), leaders, faculty members, and students from different universities (both public and private), representatives of firms, and independent researchers working on higher education. The analysis of governance challenges, in particular, relies on the information gathered from these consultations. In conjunction with the findings from a review of the international literature, this analysis—which looks at issues related to sector coordination, policy making, quality assurance, allocation of public financing, and organizational, financial, staffing, and academic autonomy within institutions—helps to identify opportunities for governance reforms to improve performance and their political feasibility. Literature review. The report also draws on the findings of a literature review of existing documents focused primarily on three areas: (a) approaches to and findings from studies on analyzing returns to education and alignment of higher education with labor market needs, (b) international experience with enhancing university-industry links for putting in place relevant curricula and promoting experiential learning linked to the world of work, and (c) the experience of Cambodia as well as other relevant countries in designing and implementing governance reforms. The findings from the review inform the overall framework and methodology used for the study and the policy recommendations. The following categories of sources were consulted during the literature review: • Official publications and policy documents of the Cambodian government, as well as regional reports (Asian Development Bank - ADB, United Nations Educational, Scientific 9 and Cultural Organization - UNESCO) and relevant studies produced by the Organization for Economic Co-operation and Development (OECD) and the World Bank. • Recent academic works on tertiary education reforms in OECD countries and Cambodia. • National, regional, and international statistics on various dimensions of tertiary education performance in Cambodia and Southeast Asia. Statistical data analysis. The analysis of the state of access, including trends and disparities in access, is based primarily on two types of secondary data: (a) household survey data and (b) administrative data on HEIs. The household survey data analyzed are from the Cambodia Living Standards Measurement Study-Plus (CLSMS) 2019–20 and the Cambodia Socio-Economic Survey (CSES 2004, 2010, and 2019) implemented by the National Institute of Statistics (Ministry of Planning). Regression methods are used to analyze the determinants of participation in higher education. The administrative data on HEIs are used to analyze the supply side of the sector using simple descriptive statistics. The analysis of relevance is primarily based on secondary data from the following sources: (a) Cambodia Labor Force Survey (CLFS) data and (b) data from tracer studies of graduates from institutions supported by the World Bank financed HEIP. Estimates of returns to higher education, which reflect how much the labor market values higher education, are obtained using the extended Mincerian model on the household survey data. In addition, supplemental findings from quantile regressions are presented to provide a more comprehensive picture of the effects of higher education attainment on different parts of the wage distribution. The HEI administrative data provide information on student enrollment patterns across higher education programs, which, together with data from the tracer studies, give useful indications on the alignment of tertiary education programs with labor market needs. Findings from the HEI administrative data and consultations with employers on the links between the HEI system and industries were helpful in proposing ways of bringing tertiary education institutions and industry closer to improve the relevance of programs. The analysis of governance challenges relies on the information gathered from the different consultations and focus group discussions described above. In conjunction with the findings from the review of the international literature, this analysis—which looks at issues related to sector coordination, policy making, quality assurance, allocation of public financing, and organizational, financial, staffing, and academic autonomy within institutions—helps with the identification of opportunities for governance reforms to improve performance and their political feasibility. Benchmarking. Whenever possible, the diagnosis takes into consideration benchmarking data that put the evolution of the performance and the main characteristics of the Cambodian tertiary education system in a regional and international perspective. Similarly, the policy options considered in this report are based on careful consideration of relevant international experience from countries facing similar challenges to those encountered today in Cambodia. 1.4 Structure of the Report The report is divided into four parts. The first part examines access and equity in the Cambodian higher education sector. The second part looks at quality and relevance, with a special focus on skills for the green economy. The third chapter analyzes the research and technology transfer results of Cambodian universities. The last part assesses how the governance and funding approaches can be modernized to enhance the performance of the higher education system. 10 2. Equity and Inclusion in the Cambodian Tertiary Education System 2.1 Overview of the Present Situation There is evidence of significant disparities in access to higher education across income groups, geographical location, and gender. The distribution of tertiary students enrolled showed striking disparities in socioeconomic backgrounds. Among the total tertiary education student population in 2019, only 16 percent came from the poorest two quintiles of the wealth distribution, while a substantial 46 percent originated from the wealthiest quintile. Geographical disparities in access are also stark—in particular, the GER in the urban region was 30 percent, compared to a mere 10 percent in rural areas, meaning that students living in rural regions are three times less likely to participate in higher education. The GER gender parity index in 2019 was 0.84, reflecting greater access in favor of males, in spite of the existence of scholarships exclusively available to female students, accounting for 15 percent of the total number of scholarships given out by the government (McNamara and Hayden 2022). The corresponding GERs for males and females were 16.5 percent and 13.8 percent, respectively. Moreover, the gender imbalance in favor of males is particularly severe in STEM subjects, with females comprising less than 30 percent of the students enrolled in the science faculties in 2016 (World Bank 2018). Subsection 2.1.1 examines the trends and disparities in access and presents the profile of higher education students in more detail. The trend and disparity question focuses on the long run and presents the GER for three specific years, 2004, 2010, and 2019. Complementing this discussion on disparities, the subsection 2.1.2 presents the regression results on the determinants of higher education participation and attainment. Finally, subsection 2.1.3 delves into the supply of and demand for tertiary education. 2.1.1 Trend and Disparities in Access The analysis of the tertiary GER between 2004 and 2019 using household survey data provides valuable insights into the evolving landscape of tertiary education participation. In 2004, the GER stood at 6 percent, indicating a relatively low level of enrollment (Figure 2.1). However, over the next decade, there was a noticeable upward trend in tertiary education enrollment. By 2010, the GER had increased to 11 percent, reflecting a significant growth in the number of individuals accessing higher education. This positive trajectory continued through 2019, with the GER reaching 15 percent, indicating a further expansion in tertiary education enrollment. These figures demonstrate a substantial and sustained improvement in tertiary education participation during the past two decades. The consistent increase in the GER signifies the efforts made by stakeholders to enhance access to higher education in Cambodia. It reflects the growing recognition of the importance of tertiary education in fostering individual development, addressing skill gaps, and driving economic progress. 11 Figure 2.1 - Trend in tertiary gross enrollment rate 20% 15 11 10% 6 0% 2004 2010 2019 Source: Authors’ calculations using CSES (2004 and 2010) and CLSMS (2019). Men have historically enjoyed better access to tertiary education compared to women in Cambodia. However, the gender gap in enrollment rate has decreased in recent years. As shown in Figure 2.2, the GER for men in 2019 was almost 20 percent higher than that for women. Although this gap is substantial, it represents a significant reduction from 2004 and 2010, when the GER was higher for men by 90 percent and 83 percent, respectively. Moreover, there has been a faster decline in the gender gap between 2010 and 2019 compared to 2004 and 2010. 7 This indicates a notable improvement in reducing the disparity in tertiary education enrollment between men and women, with a higher rate of progress observed in the more recent period. Figure 2.2 - Gross enrollment rate by gender (2004–2019) 20% 16.5 16% 14.1 13.8 12% 7.6 7.7 8% 4.0 4% 0% 2004 2010 2019 Male Female Source: Authors’ calculations using CSES (2004 and 2010) and CLSMS (2019). The disparity in tertiary education enrollment rates between individuals from different wealth quintiles is also substantial. In 2019, the GER for the top and bottom wealth quintiles were 45 7 Between 2004 and 2010, the annualized decrease in the enrollment gender gap was approximately 2 percent per year. However, between 2010 and 2019, the corresponding decline accelerated to around 7 percent per year. 12 percent and 3 percent, respectively. The 42-percentage-point gap—between the richest and the poorest—in access rate observed in Cambodia is higher than the gaps observed in most of the other lower-middle-income countries (LMICs). 8 While there has been an improvement in enrollment rates across all wealth groups over time, the gap between the top and bottom quintiles remains significant (Figure 2.3). Though the percent difference in GER between the two groups is lower in 2019 than in 2004, the gap has widened over time in absolute terms, that is, on a percentage-point basis. More specifically, while the gap stood at 22 percentage points in 2004, it rose to 34 percentage points in 2010, and further increased to 42 percentage points in 2019. Figure 2.3 - Gross enrollment rate by socioeconomic status (2004–2019) 50% 44.8 40% 35.4 30% 22.2 20% 10% 1.5 2.5 0.2 0% 2004 2010 2019 Bottom Wealth Quintile Top Wealth Quintile Source: Authors’ calculations using CSES (2004 and 2010) and CLSMS (2019). The population in urban areas have much better access to tertiary education compared to the rural population. In 2004, the GER for urban areas stood at 19 percent, significantly higher than a meager 2 percent observed in rural areas (Figure 2.4). Access to tertiary education increased substantially in both urban and rural areas over the following years, with urban GER rising to 33 percent and rural GER growing to 5 percent in 2010. However, in 2019, the urban GER declined slightly to 30 percent, while the rural GER exhibited a jump, reaching 10 percent, suggesting that the rural-urban gap may be declining. The findings underscore the persistent gap between urban and rural areas in tertiary education enrollment. The substantial difference in GERs in 2004 emphasizes the significant advantage enjoyed by urban areas in the past. However, the subsequent years witnessed notable progress in both urban and rural enrollment rates, albeit at different rates. Despite improvements, urban areas consistently maintained a higher GER, albeit with a slight decline in 2019. The convergence of rural and urban GERs indicates a positive trend toward bridging the gap in tertiary education enrollment (Figure 2.4). 8 The corresponding gaps in Lao PDR, Indonesia, Thailand, the Philippines, and Viet Nam are 30, 30, 35, 37, and 43 percentage points, respectively (Parajuli et al. 2020; UNESCO 2022b). 13 Figure 2.4 - Gross enrollment rate by geographical location (2004-2019) 50% 40% 33.3 30.3 30% 19.0 20% 9.6 10% 4.9 1.7 0% 2004 2010 2019 Urban Rural Source: Authors’ calculations using CSES (2004 and 2010) and CLSMS (2019). Profile of higher education students The student profile in higher education mirrors the disparities observed in GER across various demographic and socioeconomic groups and between urban and rural areas. Males comprise the majority of the enrolled students, accounting for 55 percent of the student body, while females make up 45 percent (Figure 2.5). When considering the distribution across wealth quintiles, a significant disparity becomes apparent. Merely 16 percent of tertiary education students originate from the bottom two quintiles, highlighting the limited access for individuals in the lower socioeconomic brackets. In contrast, a remarkable 46 percent of students come from the wealthiest quintile, underscoring the unequal representation across wealth groups. Although the disparity between urban and rural students may seem relatively small, with a mere 6-percentage-point difference, it assumes greater significance in the context of the wider population. Considering that almost three-quarters of the population resides in rural areas, the representation of rural students at 47 percent is notably low and reflects the urban-rural disparity in GER discussed above. These findings on gender imbalances, socioeconomic disparities, and locational differences point to a need for targeted efforts to bridge the gap in accessing tertiary education between rural and urban areas. 14 Figure 2.5 - Profile of tertiary education enrollees 80% 60% 55 53 45 46 47 40% 34 20% 12 4 3 0% Female Male Bottom 2nd 3rd 4th Top Rural Urban quintile quintile quintile quintile quintile Gender Wealth quintile Location Source: Authors’ calculations using CLSMS (2019). 2.1.2 Determinants of Tertiary Education Participation and Attainment The above findings on disparities in access are largely supported by regression analyses of the determinants of tertiary education participation (Table 2.1, models 1 and 2). The regression results show that, on average, 18- to 22-year-olds from wealthier families are significantly more likely to attend tertiary education. Compared to their peers from urban areas, individuals from rural areas are significantly less likely to attend higher education. This urban-rural disparity is observed among both males and females, indicating that urban males have a higher likelihood of attending higher education than rural males, and the same pattern applies to females. The evidence on gender disparity in access, however, is weak. The analyses show that females, especially from rural areas, have a lower likelihood of participating in tertiary education compared to males; however, this relationship is not statistically significant. Another statistically significant determinant of tertiary education participation is the individual’s marital status: being married is significantly negatively associated with attending tertiary education, a finding that is consistent with results from other studies in the literature. Marriage can introduce additional responsibilities and time commitments, making it more challenging for individuals to pursue full-time education (Lundberg and Rose 2000). The presence of children can further complicate the decision to pursue higher education while being married. Further insights into disparities in access to tertiary education can be gained by analyzing the determinants of educational attainment of adults in the 25–49-year age range. As shown by models (3) and (4), the probability of tertiary education attainment for this older age group is influenced by various individual and household characteristics. Socioeconomic factors, including household wealth, being in a female-headed household, and household head’s years of education are positively associated with the likelihood of tertiary education attainment. On the other hand, females are significantly less likely to have received higher education compared to males, reflecting the relatively lower access experienced by females of this older generation. Additionally, there is a negative association between age and tertiary education attainment, indicating an 15 improvement in access to tertiary education in recent years. As in the analysis of determinants of tertiary education attendance, being married reduces the likelihood of higher education attainment. Table 2.1 - Determinants of higher education attendance and attainment Higher education Higher education Attainment (25–49-year- Attendance (10–22-year-old) old) Model 1 Model 2 Model 3 Model 4 Female −0.0630 −0.0001 −0.4575*** −0.2912* (0.2201) (0.3151) (0.1392) (0.1764) Rural −0.5719** −0.5247* −0.1707 −0.0168 (0.2358) (0.2908) (0.1409) (0.1754) Female * Rural −0.1119 −0.3861 (0.4367) (0.2903) Age −0.1060 −0.1067 −0.0600*** −0.0606*** (0.0831) (0.0831) (0.0119) (0.0119) Marital status −1.5735*** −1.5898*** −0.5634*** −0.5637*** (0.5001) (0.4988) (0.1711) (0.1733) Wealth index 0.3188*** 0.3189*** 0.3397*** 0.3414*** (0.0911) (0.0907) (0.0538) (0.0535) Is female-headed household 0.0662 0.0650 0.3821** 0.3818** (0.2762) (0.2770) (0.1838) (0.1842) Household head's year of education 0.0143 0.0142 0.1422*** 0.1419*** (0.0312) (0.0311) (0.0209) (0.0210) Household size −0.0331 −0.0347 0.0409 0.0384 (0.0684) (0.0680) (0.0404) (0.0406) Number of observations 331 331 1,818 1,818 Pseudo R-squared 0.30 0.30 0.40 0.40 Source: Authors’ calculations using CLSMS (2019). Note: *** p<0.01, ** p<0.05, * p<0.10; Probit model: dependent variables are higher education attendance and attainment (1 if attending (Models 1 and 2) or attained (Models 3 and 4) and 0 otherwise); standard errors in parentheses. 2.1.3 Supply of and Demand for Tertiary education As of 2022, there were a total of 132 HEIs in the country, 84 (approximately 64 percent) of which were privately operated, while the rest (48) were public institutions (Figure 2.6). As noted in Section 1, the number of private HEIs has shown consistent growth over time, while the number of public institutions has remained relatively stable. Specifically, between 2015 and 2022, the number of private HEIs increased from 73 to 84, highlighting the expanding role of the private sector in the Cambodian higher education landscape and the evolving dynamics of the educational system. 16 Figure 2.6 - Number of higher education institutions (a) Number of HEIs (b) Percentage of HEIs 140 100% 120 80% 100 84 60 63 64 73 80 80 60% 60 40% 40 48 48 48 20% 40 38 36 20 0 0% 2015 2019 2022 2015 2019 2022 Public Private Public Private Source: Ministry of Education, Youth, and Sport (2023). The GER has exhibited an upward trend over the long term, as evidenced by Figures 2.1–2.4. However, a closer analysis of the more recent short-term data on the actual number of enrolled students presents a contrasting picture. Student enrollment in higher education has been declining in recent years. Specifically, total enrollment declined from 183,000 in 2015 to 179,000 in 2019 and further dropped to 176,000 in 2022 (Figure 2.7). While the reasons for the drop in enrollment between 2015 and 2019 are not clear, the decline in enrollment between 2019 and 2022 can be mainly attributed to the COVID-19 pandemic. In particular, there was a significant decline in the number of students in graduate programs, perhaps because master’s degrees were no longer considered critical when families needed to save money in response to the COVID crisis. However, further research is needed to understand the actual impact of the pandemic on student enrollment in HEIs. Disaggregating the data by gender shows that female enrollments remained relatively stable during this period, while there was a noticeable decline in male enrollments. It is also worth noting that there was a significant decrease in enrollment in public institutions, while private institution enrollments experienced a notable increase. Between 2015 and 2022, the number of students enrolled in public institutions decreased by approximately 25,000, whereas the number of students in private institutions increased by approximately 18,000. This observation aligns with the growing number of private HEIs in the country. 17 Figure 2.7 - Student enrollment (in thousands), 2015–2022 183 Total enrollment 179 176 84 Student gender Female 91 85 99 Male 88 91 88 Public 86 63 HEI type 95 Private 94 113 0 50 100 150 200 2015 2019 2022 Source: Department of Higher Education (administrative data). Among the students enrolled in higher education, the largest share by far is represented by those enrolled in business and management programs. In 2022, approximately 41 percent of all tertiary education students were pursuing studies in this field (Figure 2.8). Other significant program areas included information technology (IT) and languages, each accounting for 10 percent of the student body. Following closely behind were programs in social sciences and arts, as well as engineering, comprising 8 percent each of the total enrollment. The total share of students enrolled in STEM programs—including IT, engineering, sciences, medical sciences, and agriculture—was around 31 percent. 9 While these enrollment figures are a result of interactions between the supply and demand sides of the sector, they suggest that most of the demand for tertiary education is in non- STEM fields in general. The large share of enrollment in business and management studies is an unusual feature. With respect to STEM enrollments, many Asian countries tend to have a relatively higher share than Cambodia. In 2021, the proportion of STEM students was close to 60 percent and 50 percent in China and India, respectively. 9 According to World Bank (2018), the shares of students in IT, engineering and related technology, natural and physical sciences, and agriculture and environmental sciences in 2015–16 were 7 percent, 3 percent, 5 percent, and 4 percent, respectively, suggesting that the share of STEM enrollment has increased between 2015–2016 and 2022. 18 Figure 2.8 - Distribution of students enrolled in higher education by program, 2022 Source: Ministry of Education, Youth, and Sport (2023). The demand for tertiary education is largely related to the number of students who graduate from high school each year. There has been a significant growth in the number of students graduating from high school between 2014 and 2022, with a steady increase from 2014 to 2019, followed by a slight decline in 2021 and a continuation of the upward trajectory in 2022. Over the eight-year period between 2014 and 2022, the total number of high school graduates rose almost threefold, from approximately 34,000 to about 91,000, representing a remarkable 168 percent increase. This growth in the number of high school graduates has likely contributed to the increase in student enrollment rates in the last decade. As shown in Figure 2.9, the number of both male and female high school graduates increased substantially between 2014 and 2022. However, the pattern of growth in the number of graduates, though similar for both genders until 2018, diverged significantly after that year, leading to increasingly larger gender gaps in the number of graduates in subsequent years. While female students consistently constituted a higher proportion of the graduating cohort compared to males, the gender gap widened significantly over time, expanding from a 6-percentage-point difference in 2014 (47 percent for males and 53 percent for females) to a 16-percentage-point gap (42 percent males and 58 percent females) in 2022. The reasons behind this gender disparity and its implications merit further investigation to ensure equitable educational opportunities for all students. 19 Figure 2.9 - Gender distribution of high school graduates, 2014–2022 (a) Number of males and females (b) Share of males and females Source: Ministry of Education, Youth, and Sport (2023). The trend in the number of students graduating from higher education aligns with the overall declining tertiary enrollment observed in recent years (Figure 2.7). The total count of higher education graduates, which reached approximately 52,000 in 2015, experienced a 30 percent decrease to around 37,000 in 2022 (Table 2.2). This decline occurred for both genders. Analyzing the data by degree programs reveals similar downward trends among both male and female graduates with bachelor's degrees. However, the patterns diverge when considering master’s and doctoral degree holders. Between 2015 and 2019, there was a notable increase in the number of both male and female master’s graduates. However, between 2019 and 2022, there was a sharp decline in female master’s graduates while the number of male master’s graduates remained stable. As a result, the overall trend indicates a negative trajectory for female master’s graduates, while the number of male graduates in 2022 surpassed that of 2015. It is noteworthy that the trend for doctoral degree holders showed an upward trajectory for both men and women between 2015 and 2022. Table 2.2 - Number of higher education graduates by education level 2015 2019 2022 Higher education graduates 52,278 43,342 36,829 (All) Female 23,187 19,010 16,125 Male 29,091 24,332 20,704 BA graduates (total) 49,254 38,709 33,248 Female 22,487 17,754 15,975 Male 26,767 20,955 17,273 Master’s graduates (total) 3,013 4,613 3,489 Female 700 1,255 131 Male 2,313 3,358 3,358 PhD graduates (total) 11 20 92 Female 0 1 19 Male 11 19 73 Source: Ministry of Education, Youth, and Sport (2017, 2021, and 2023). 20 2.2 Government Policies to Promote Equity Cambodia’s Policy on Higher Education 2030 places a significant emphasis on equity as one of the key objectives. In terms of using financial instruments, the government has implemented a national scholarship program aimed at promoting access to higher education for qualified students, including those from disadvantaged backgrounds such as the poor, women, remote-area residents, and students with disabilities. Sub-decree No. 174 on Provision of Scholarship to Students in Public Institute, approved in May 2014, aims at providing scholarship and stipend for higher education students. The target groups in this scholarship scheme include (1) outstanding students, (2) orphan students, (3) minority students from indigenous family, (4) and poor students. Among these four categories, women are prioritized. MoEYS has implemented a fully funded scholarship program through the provision of free tuition by HEIs. The scholarship program is directed at entry-level students in higher education. The program's selection criteria encompass a range of factors, including income, gender, geographic location, and academic achievement. As a general rule, 20 percent of the scholarships are awarded to poor students, 15 percent given to female students, 5 percent given to students from disadvantaged areas. In addition, there are also scholarships for enrollment in priority majors (that is, science, technology, engineering, arts, and mathematics [STEAM] fields). 10 In the Education Strategic Plan 2019–2023, the government also plans to build more dormitories to enhance access and equity in higher education. In the last 10 years, the number of dormitories increased by 36 buildings, 11 in public universities and 25 in private ones; as a result, the number of resident students grew by 2,386 persons. In Academic Year 2022–2023, there were 88 dormitories, 39 public and 49 private, with the capacity to accommodate 5,493 students. Currently, these students are distributed as follows: 1,857 female students, 2,708 male students, and 672 academics. 11 2.3 Options for Accelerating Progress Toward Equity and Inclusion Considering the extensive social and private benefits that higher education generates, ensuring inclusive access and success is indispensable to achieve social justice and economic efficiency. From a human rights perspective, encouraging the realization of the full potential of all people is intrinsic to the SDG-4, which aims to “ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.” The private benefits of attending tertiary education include improved health outcomes, increased earning potential, and greater life satisfaction. On a broader systemic level, the public and societal benefits accrued by having higher levels of education in the workforce and among citizens include lower unemployment rates, increased tax revenues, greater intergenerational mobility, deeper civic and volunteer participation, and lessened dependency on social services (Salmi 2017). 10 MoEYS (Ministry of Education, Youth and Sport). 2016. “Mid-term Review Report in 2016 of the Education Strategic Plan 2014-2018 and Projection to 2020.” https://www.globalpartnership.org/sites/default/files/2016-11-cambodia-mid-term-review-education-sector-plan.pdf 11 MoEYS. 2023. “Education Congress: The Education, Youth and Sport Performance in the Academic Year 2021- 2022 and Goals for the Academic Year 2022-2023.” http://MoEYS.gov.kh/wp- content/uploads/2023/05/CRC_01_Final_Draft_EC_Report_2023_in_English_04042023-1.pdf 21 Furthermore, a talented, low-income and/or minority high school graduate who is denied entry into higher education represents an absolute loss of human capital and potential contributions to knowledge generation and the development of the arts and culture, not only for the individual person but for society as a whole. The lack of opportunities for access and success in tertiary education leads to underdeveloped human resources and a resulting shortfall in the capacity to generate and capture economic and social benefits (Bowen and Bok 1998; Harbison 1961). Since equity is a key pillar of the GOC’s higher education strategy, the MoEYS could enhance its current efforts by formulating a full vision for its equity agenda. This would start by recognizing formally the main equity target groups (economically disadvantaged, ethnic minorities, students with disabilities, women in STEM programs) who need to be considered in the context of the reality of Cambodian society. The next step would be setting clear quantitative targets for greater access rates of disadvantaged students from these groups with the 2030 horizon in mind. This would be followed by the preparation of an adequately financed implementation plan and financing mechanisms to complement the existing scholarship scheme. To meet its equity targets, Cambodia could consider designing a comprehensive support system, including both financial and non-financial incentives, to better prepare disadvantaged upper- secondary graduates for higher education and to help needy university students complete their studies. Recent research shows that the most effective equity promotion policies to increase tertiary education opportunities for underrepresented students are those that combine financial and non- monetary measures (Salmi 2019). In the first instance, there is strong evidence that well-targeted and efficiently managed financial aid can be instrumental in reducing financial barriers to tertiary education (see further discussion in the Financing section). Second, many countries and institutions have designed and implemented policies (a) to increase access through outreach and bridging programs (information campaigns and counseling services), reformed selection procedures and/or preferential admission programs, special institutions and programs targeting underprivileged groups and (b) to improve completion rates through effective retention programs that offer a holistic set of services combining financial, psychological, and academic interventions. In recent years, a growing number of universities, for example in Australia, Canada, and the United States, have harnessed the power of artificial intelligence (AI), big data, and predictive analytics to identify at-risk students early on rather than when they are about to drop out, and accompany them with adequate support measures throughout their studies. The purpose of many of these non-financial interventions is to offer meaningful support to at-risk students and students in difficulty, using relevant lessons from behavioral sciences. Applying a behavioral lens to improve access and success for students from traditionally underrepresented groups can help identify and test innovative interventions to address underlying challenges at the student level. Evidence from recent field trials carried out in the United States, for example, reveals the importance of targeting the psychological barriers that lead vulnerable students to self-exclude themselves from higher education opportunities or to drop out before graduating. Localized interventions giving psychological support to at-risk students can improve student outcomes with a much higher degree of cost-effectiveness than traditional interventions. Interventions range from simple measures such as SMS reminders to more sophisticated activities to stimulate a ‘growth mindset’ among disadvantaged students (Castelman and Page 2013; Paunesku et al. 2015). A set of recent case studies carried out around the world stress the importance of developing a sense of ‘belonging’ to improve the academic performance of minority students (Salmi 2023). 22 At the same time, it is important for a country like Cambodia to foster a more diversified tertiary education system—with good quality non-university sector institutions, alternative learning options, and flexible pathways taking up more important roles to allow students from all economic welfare groups and academic readiness spectrum to enjoy a greater variety of options to attend and complete tertiary education. Cambodia could follow the example of the growing number of countries where the quality assurance systems have begun to include equity-related criteria for evaluation and/or accreditation purposes to ensure that tertiary education institutions pay appropriate attention to the inclusion and success of students from underrepresented groups. The accreditation status of universities and other institutions is often used as an eligibility criterion for access to financial aid for students from vulnerable groups. Finally, the government’s equity promotion policies would be facilitated and enhanced by the establishment of a comprehensive management information system to monitor the scope and evolution of disparities in tertiary education and the effectiveness of the various equity promotion programs. To achieve progress at the institutional level, the GOC could encourage each HEI to design its own equity promotion plan with clear targets and a set of measures to increase access of students from traditionally underrepresented groups and improve the retention and success of all incoming students along the lines mentioned above. 2.4 Summary of Findings and Recommendations Main Findings • Cambodia has made rapid progress in expanding access to tertiary education during the past two and a half decades, with the tertiary GER increasing from 6 percent in 2006 to 15 percent in 2019. • Despite this impressive growth, however, Cambodia’s is still far behind most of the other countries in Southeast Asia, except Lao PDR. • There is evidence of significant disparities in access to tertiary education across income groups, geographical location, and gender. Only 4 percent of students come from the poorest quintile, while 46 percent originated from the wealthiest quintile. • Cambodia has witnessed a worrisome trend of declining student enrollment in higher education in recent years, shrinking from 183,000 students in 2015 to 176,000 in 2022. This is partly a result of the COVID pandemic, and partly due to less favorable high school exam results. • Cambodia’s equity policy relies on a national scholarship program and the construction of dormitories to promote access to higher education for qualified students, including those from disadvantaged backgrounds such as the poor, women, remote-area residents, and students with disabilities. Main Recommendations • Increased efforts to promote equity policies for ensuring inclusive access and success in tertiary education are indispensable to achieve social justice and economic efficiency. 23 • The Ministry of Education could enhance its current efforts by formulating a vision for its equity agenda, including the official recognition of the main equity target groups (economically disadvantaged, ethnic minorities, students with disabilities, women in STEM programs), clear quantitative targets for greater access rates of disadvantaged students from these groups, and an adequately financed implementation plan. • There is strong evidence that well-targeted and efficiently managed financial aid can be instrumental in reducing financial barriers to tertiary education. • Equally important are complementary measures to (i) increase access through outreach and bridging programs, preferential admission programs, special institutions and programs targeting underprivileged groups and (ii) improve completion rates through effective retention programs. • Having a more diversified tertiary education system, with good quality non-university institutions, alternative learning options, and flexible pathways, would allow students from all socioeconomic groups to enjoy a greater variety of options to access and complete tertiary education. • The government’s equity promotion policies would be more successful if they are informed by a comprehensive management information system to monitor the scope and evolution of disparities in tertiary education and the effectiveness of the various equity promotion programs. 24 3. Quality and Relevance of Tertiary Education Programs The tertiary education system faces serious issues in the quality and relevance of existing programs, with elements of mismatch between the needs of the labor market and what tertiary education institutions actually offer. In spite of the serious limitations with respect to hard data on these aspects, available evidence and anecdotal information reveal worrisome shortcomings that adversely affect the quality and relevance of tertiary education. To cover these issues, this chapter reviews the main determinants of quality, analyzes available information about relevance, and explores how well the main Cambodian universities are able to address the skill needs of the green economy. 3.1 Quality 3.1.1 Overview of Quality in Cambodian Higher Education Assessing the quality of the education and training experience received by students is one of the most difficult areas to measure anywhere. Unlike what happens at lower levels of education, where ministries of education use widely accepted metrics such as Trends in International Mathematics and Science Study (TIMSS) or Programme for International Student Assessment (PISA) to assess learning outcomes from an international perspective, no such instrument exists for tertiary education yet, despite promising developments in recent years. 12 In the absence of direct measures of learning outcomes, the global university rankings can be used as a useful proxy to assess the quality of tertiary education in Cambodia from an international viewpoint. In spite of their methodological limitations, international rankings help identify which universities tend to offer high-quality teaching with innovative curricula and teaching methods, produce graduates who excel in the global labor market, and significantly contribute to progress in knowledge through their cutting-edge research. Unfortunately, neither the Shanghai Academic Ranking of World Universities nor the Times Higher Education World University Ranking feature any Cambodian university in their list of top 800 institutions (Annex 1). From a regional perspective, 71 universities from Southeast Asia appear in the 2023 Times Higher Education Ranking. However, not a single Cambodian university makes it among these top institutions (Table 3.1). Lao PDR and Myanmar are the only other countries from the region whose universities do not achieve international recognition. 12 The OECD elaborated tests to measure the acquisition of generic competencies and professional skills in the areas of economics and engineering, which were piloted in 2012 in the context of the AHELO project (Assessment of Higher Education Learning Outcomes). In the United States, a growing number of institutions have been using one of three assessment instruments to measure added value at the undergraduate level: the ACT Collegiate Assessment of Academic Proficiency (CAAP), the ETS Proficiency Profile (EPP), and the Collegiate Learning Assessment (CLA). Similar instruments have been in use in other OECD countries, such as Australia’s Graduate Skills Assessment. A few Latin American countries—Brazil, Colombia, and Mexico—have also been pioneers in that respect, as Jordan has been in the Middle East. 25 Table 3.1 - Top 71 universities in Southeast Asia (2023) Rank of the Best Country Number of Universities University from Each Country Singapore 2 1 Brunei Darussalam 1 3 Malaysia 22 4 Philippines 4 6 Viet Nam 6 7 Thailand 18 15 Indonesia 18 22 Source: https://www.timeshighereducation.com/world-university-rankings/2023/regional- ranking#!/length/25/sort_by/rank/sort_order/asc/cols/stats. Similarly, Cambodia does not appear in the ranking of national higher education systems prepared every year by the University 21 consortium between 2012 and 2019. The last edition of that ranking, published in 2019, included the following Asian middle-income countries among the 50 nations assessed: Indonesia (50), Thailand (46), Malaysia (28), China (27). To understand the reasons that may adversely affect the quality of higher education programs in Cambodia, it is useful to look at (a) the preparedness of incoming students, (b) the qualifications of faculty members, and (c) the quality of the learning environment and infrastructure. 3.1.2 Preparedness of Incoming Students Disparities in the quality of high school education affect the preparation of incoming university students, many of whom experience a large gap between their prior high school experience and what is expected of university students. The most commonly identified differences were the limited opportunities to acquire independent or collaborative learning abilities in high school, the lack of educational resources, and traditional pedagogical approaches emphasizing rote learning. 13 Furthermore, the shortage of basic learning resources and instructional materials remains a significant problem in many high schools, particularly in rural and remote areas. 14 By contrast, reports show that first-year university students experienced a learning environment shock as the curriculum promoted teamwork and relied on critical thinking skills along with hands- on practice, research, and laboratory work while they were used to having to memorize long texts to advance to the next year level in high school. For many students with inadequate preparation, these different pedagogies and learning styles often require substantial adaptation efforts to avoid falling behind. The lack of information about career options and academic prerequisites may also 13 Un, L., et al. 2014. “Upper Secondary School Curriculum Reform in Cambodia: Relevance for Employment and Tertiary Education.” https://www.academia.edu/24309537/Upper_Secondary_School_Curriculum_Reform_in_Cambodia_Relevance_for _Employment_and_Tertiary_Education_Table_of_Contents 14 Heng, K., and K. Sol. 2022. “Education: Key to Making Cambodia Great Again.” Cambodia Development Center 4 (3). https://www.cd-center.org/wp-content/uploads/2022/12/P124_V4IS3_20220621_EN.pdf. 26 affect their decision-making when it comes to choosing their major, especially in STEM programs. 15 3.1.3 Qualifications of Teaching Staff The academic qualifications of faculty members are an important determinant of the quality of the educational experience of students. They are a good proxy for content mastery, even if they do not guarantee that the instructors have good pedagogical skills. Table 3.2 shows the progress achieved between 2019 and 2022. Table 3.2 - Qualifications of faculty members (%) Faculty Qualifications 2019 2022 Less than master’s 27 24 Master’s degree 65 68 PhD degree 8 9 Total 100 100 Source: MoEYS. Full-time academics working at private universities appear to be slightly better qualified than their peers in public universities. The proportion of faculty members with at least a master’s degree was 79 percent in the former compared to 72 percent in the latter type of institutions. 3.1.4 Program Delivery and Assessment In 2018, MoEYS adopted a policy on the use of Information and Communication Technology (ICT) in education to facilitate the integration of advanced technology in the teaching and learning process. 16 The paradigm shift from traditional face-to-face mode of delivery to online education has been accelerated due to COVID-19 as Cambodian tertiary education institutions were forced to switch rapidly to online teaching and learning to prevent learning loss during the pandemic. Reports on what happened during the pandemic have revealed significant disparities in the quality of the online education experience between urban and rural students as a result of poor internet connection, lack of appropriate teaching tools and methodology for the use of e-learning platforms, and the perception that online classes are less effective than in-person classes. 17 To improve the situation, the government established the Cambodian Cyber University Network, but it seems that low technical capacity has undermined its operation. 18 A few universities have distinguished themselves as pioneers in introducing educational innovations. The Institute of Technology of Cambodia (ITC), in particular, has thoroughly revised its programs and pedagogies to make the curriculum more practical and adopt an active learning 15 Sorn, V., and M. Suon. 2022. “Motivating Cambodian High School Students to Pursue Higher Education in Science and Health Science Majors: Issues and Suggestions.” Cambodian Education Forum, June 12, 2022. https://cefcambodia.com/2022/06/12/motivating-cambodian-high-school-students-to-pursue-higher-education-in- science-and-health-science-majors-issues-and-suggestions/ 16 MoEYS. 2018. “Policy and Strategy on Information and Communication Technology (ICT) in Education.” http://MoEYS.gov.kh/wp-content/uploads/2022/09/Policy-and-Strategy-for-ICT-in-Education.pdf 17 ASEAN. 2021. Human Resources Development Readiness in ASEAN: Cambodia Country Report. https://asean.org/wp-content/uploads/2021/10/Cambodia-HRD-Country-Report-final-V6.pdf 18 MoEYS. 2023. “Education Congress: The Education, Youth and Sport Performance in the Academic Year 2021- 2022 and Goals for the Academic Year 2022-2023.” http://MoEYS.gov.kh/wp- content/uploads/2023/05/CRC_01_Final_Draft_EC_Report_2023_in_English_04042023-1.pdf 27 approach relying on project-based learning. To strengthen the links between the curriculum and the needs of industry, the institute has set up a mentorship system whereby the students are paired with a professional from companies willing to support the ITC. 19 Similarly, Paragon International University, one of the leading private institutions, has carried out a curriculum mapping exercise in collaboration with industry to improve the relevance of its programs. 20 However, these positive initiatives are the exception rather than the rule. The quality of higher education programs remains a major concern in many institutions. 21 The absence of quality assessment methods has resulted in numerous universities providing substandard education. 22 3.1.5 Learning Environment and Infrastructure In response to the growing number of students, the government has made substantial efforts to provide sufficient equipment for teaching and learning in the last decade. Between the academic years 2013–2014 and 2022–2023, the number of laboratories rose to 102 and the number of libraries of HEIs increased from 89 to 109. 23 To promote digital education, the government has worked to improve the reach and effectiveness of the internet in the provinces and rural areas. As a result, 84 percent of HEIs have been able to increase their internet speed. 24 The Ministry of Posts and Telecommunications has also signed a memorandum of understanding (MoU) with 11 HEIs across the country for the development of digital infrastructure and internet connectivity and the launch of digital technology systems. 25 Despite the progress made, the government has acknowledged that scientific equipment and the basic physical and technological infrastructure had not kept up with the needs of HEIs. 26 For instance, libraries, experimentation equipment, and labs, all require further improvement, according to MoEYS. 27 Furthermore, while Cambodia has moved fast to use technology in education due to COVID-19, digital infrastructure needs to be developed and maintained. There is 19 Representative from ITC, May 5, 2023. Wrap up meeting on technical consultation meeting on “Reimagining Higher Education in Cambodia: Modernizing Governance for Improved Access and Relevance.” 20 Representative from Paragon International University (PIU), May 5, 2023. Wrap up meeting on technical consultation meeting on “Reimagining Higher Education in Cambodia: Modernizing Governance for Improved Access and Relevance.” 21 Nhem, D. 2022. “Quality in Higher Education: What Do Students in Cambodia Perceive?” Tertiary Education and Management 28: 43–59. https://doi.org/10.1007/s11233-021-09084-2 22 Doeur, B. 2022. “Promoting Higher Education Reforms in Cambodia: Challenges and the Way Forward.” Cambodia Journal of Educational Research, 2: 116–128. https://cefcambodia.com/2023/01/21/promoting-higher-education- reforms-in-cambodia-challenges-and-the-way-forward/ 23 MoEYS. 2023. “Education Congress: The Education, Youth and Sport Performance in the Academic Year 2021- 2022 and Goals for the Academic Year 2022-2023.” http://MoEYS.gov.kh/wp- content/uploads/2023/05/CRC_01_Final_Draft_EC_Report_2023_in_English_04042023-1.pdf 24 MoEYS. 2023. “Education Congress: The Education, Youth and Sport Performance in the Academic Year 2021- 2022 and Goals for the Academic Year 2022-2023.” http://MoEYS.gov.kh/wp- content/uploads/2023/05/CRC_01_Final_Draft_EC_Report_2023_in_English_04042023-1.pdf 25 Ministry of Post and Telecommunication, May 22, 2023. Announcement on the signing of the MoU on the launch of digital technology system verify.gov.kh and the development of infrastructure and internet connectivity. https://mptc.gov.kh/news/31498/ 26 MoEYS. 2023. “Education Congress: The Education, Youth and Sport Performance in the Academic Year 2021- 2022 and Goals for the Academic Year 2022-2023.” http://MoEYS.gov.kh/wp- content/uploads/2023/05/CRC_01_Final_Draft_EC_Report_2023_in_English_04042023-1.pdf 27 Phnom Penh Post, October 21, 2022. “Education Ministry Urges Higher-Institutional Research Investment.” https://www.phnompenhpost.com/national/education-ministry-urges-higher-institutional-research-investment 28 a great need to expand access to appropriate digital devices and high-speed internet connection, enhance the current e-learning platforms, and develop digital infrastructure in most HEIs. 28 3.2 Relevance 3.2.1 Job Market for Tertiary Education Graduates Analyses based on the 2019 labor force survey (LFS) data show that the working-age population with tertiary education have better employment prospects than those with lower levels of education. 29 For instance, individuals with higher education have a significantly higher employment rate 30 of 72 percent compared to those with no education or below primary level of education, whose employment rate is 58 percent, and those with secondary education, whose employment rate is 66 percent (Figure 3.1). Interestingly, individuals with primary education also have a relatively high employment rate, which is only slightly lower than that of the working-age population with higher education. Figure 3.1 - Employment rate by education level Source: Authors’ calculations using CLFS (2019). The services sector is the primary employer of tertiary education holders, encompassing approximately 82 percent of the employed workers in this group. Of the 82 percent, 16 percent are involved in the retail/wholesale trade subsector and 66 percent are employed in other service- related areas (Figure 3.2). The sector with the smallest share of workers with tertiary education is agriculture (3 percent). In contrast, workers with lower levels of education tend to be concentrated in the agriculture, construction, and manufacturing sectors. The concentration of workers with tertiary education in the services sector is a phenomenon common to both males and females (Figure 3.3). However, compared to males, larger shares of 28 Sol, K. 2021. “Rethinking Higher Education in Cambodia.” Journal of International Education 27: 46–60. https://www.jstage.jst.go.jp/article/jies/27/0/27_46/_pdf 29 Individuals ages 15 years and older are considered to be the working- age population. 30 The International Labour Organization (ILO) defines employment rate as the proportion of the working-age population (usually defined as those ages 15 years and older) who are employed, expressed as a percentage of the total working-age population. Working-age population includes work-eligible individuals, that is, those 15 years or older who are either in or outside the labor force. 29 females are employed in wholesale and retail trade as well as manufacturing. Conversely, the construction sector employs a significantly larger share of male workers. Figure 3.2 - Employment rate by education level Source: Authors’ calculations using CLFS (2019). Figure 3.3 - Share of workers (with tertiary education) across industry sectors by gender Source: Authors’ calculations using CLFS (2019). Most of the workers with tertiary education are employed in one of three main occupations: professionals, services and sales workers, and technicians and associate professionals. Collectively, these three occupations make up more than two-thirds (68 percent) of this group of workers with professionals accounting for 26 percent, services and sales workers accounting for 24 percent, and technicians and associate professionals accounting for 18 percent of workers with tertiary education (Figure 3.4). This is in stark contrast to the occupational distribution of workers with lower levels of education. For example, only 7 percent of workers with secondary education 30 are employed as professionals, and only 5 percent are employed as technicians and associate professionals. As expected, the shares of these high-skilled occupations are negligible for those with primary or lower levels of education. Although the prevalence of workers with tertiary education in these three occupations is common to both males and females, there are notable differences in their relative shares across gender (Figure 3.5). About 66 percent of males and 62 percent of females with tertiary education are engaged in one of these occupations. However, the shares of professionals, and services and sales workers are higher among females than males by 7 and 8 percentage points, respectively. Conversely, the share of technicians and associate professionals is higher among males than females by 9 percentage points. Additionally, the share of managers is significantly higher among males (7 percent) than females (3 percent). Figure 3.4 - Share of workers across occupation categories by education level Source: Authors’ calculations using CLFS (2019). 31 Figure 3.5 - Share of workers (with tertiary education) across occupation categories by gender Source: Authors’ calculations using CLFS (2019). Approximately 49 percent of workers with tertiary education are employed in high-skill occupations, while the remaining 51 percent work in medium or low-skill occupations (Figure 3.6). 31 In stark contrast, the proportion of workers in high-skill occupations is significantly lower for those with lower levels of education, with only 15 percent of workers with secondary education, 5 percent with primary education, and merely 3 percent with below primary or no formal education found in high-skill occupations. Furthermore, there is a gender difference in favor of males in the distribution of high-skill occupations among workers with tertiary education. Among males, 52 percent are employed in high-skill occupations, while for females, this figure is only 46 percent (Figure 3.7). 31 According to the ILO’s International Standard Classification of Occupations (ISCO), the 10 major groups of occupations can be classified as high-skill, medium-skill, and low-skill as follows: high-skill occupations— managers, professionals, and technicians and associate professionals; medium-skill occupations—clerical support workers, services and sales workers, skilled agriculture, forestry, and fishery workers, craft and related trades workers, and plant and machinery operators and assemblers; and low-skill occupations—elementary occupations (ILO 2023). 32 Figure 3.6 - Share of workers across skill categories by education level Source: Authors’ calculations using CLFS (2019). Figure 3.7 - Share of workers (with tertiary education) across skill categories by gender Source: Authors’ calculations using CLFS (2019).++ 3.2.2 Differences in Wage across Education Levels, Genders, and Locations The average wage earned by workers with a specific level of education can provide some insights into how relevant that education level is in the labor market. Higher average wage for individuals with a particular education level reflects how much employers value the skills and knowledge acquired at that level. As demonstrated in Figure 3.8, higher levels of education are indeed closely associated with higher earnings in the labor market in Cambodia. In 2019, the average monthly wage for a worker was KHR 1,065,000 (approximately US$258). Examining the wages by educational attainment shows that workers with less than a primary school education earned an average wage of KHR 877,000, while high school graduates earned KHR 1,167,000. Notably, workers with a university education experienced a significant leap in average wages, earning approximately KHR 1,536,000, which is 32 percent higher than the earnings of high school 33 graduates. A similar pattern is observed for the median wage rate, which represents the midpoint of the wage distribution. 32 These findings underscore the value of higher education in securing higher-paying job opportunities. Figure 3.8 - Mean and median monthly wage (KHR, in thousands) by education level, 2019 2000 1,536 1600 1,300 1,167 1200 1,065 1,019 1,000 900 877 930 880 849 814 770 800 680 400 0 Overall Never Below Primary Middle High Tertiary attended primary Mean Median Source: Authors’ calculations using CLFS (2019). While the above relationship between education level and wage rate is observed for both male and females, men consistently earn higher wages than women across all levels of education (Figure 3.9). However, the gender wage gap does not follow a clear pattern across education levels. Notably, the wage gap is more pronounced among middle school graduates (15 percent higher for men) and tertiary education graduates (15 percent higher for men) compared to those with primary education (7 percent higher for men) and high school education (8 percent higher for men). It is worth noting that men with below primary education have an even greater wage advantage, with their wages being up to 26 percent higher than those of women with similar educational backgrounds. 32 The median wage rate is consistently lower than the average wage rate across all levels of educational attainment, indicating that the majority of workers earn less than the median wage for their respective level of education. 34 Figure 3.9 - Mean monthly wage (KHR, in thousands) by education level and gender, 2019 2000 1600 1200 800 400 0 Never Below Primary Middle High Tertiary attended primary Male Female Source: Authors’ calculations using CLFS (2019). The significantly higher wage rates associated with tertiary education are common to both urban and rural areas. However, urban workers consistently earn higher wages compared to their rural counterparts, with the wage gap widening as the level of education increases. Notably, urban workers with primary education have a 10 percent wage advantage over rural workers with the same educational attainment (Figure 3.10). As education levels progress to middle school, high school, and tertiary education, urban workers experience an increasing wage advantage of 17 percent, 22 percent, and 27 percent, respectively. Figure 3.10 - Mean monthly wage (KHR, in thousands) by education level and location, 2019 2000 1600 1200 800 400 0 Never Below Primary Middle High Tertiary attended primary Urban Rural Source: Authors’ calculations using CLFS (2019). 3.2.3 Returns to Education Analyzing the private returns to education provides further insights into the relevance of tertiary education in the labor market. The results of the analysis, which utilizes the Mincerian and extended Mincerian earnings functions commonly used in the literature, are summarized in Table 35 3.3. 33 They show that the overall private rate of return for an additional year of education in Cambodia, based on the standard Mincerian function, is 4.7 percent. It is important to note that this estimate is considerably lower than the global average of approximately 10 percent (Montenegro and Patrinos 2014; Psacharopoulos and Patrinos 2018). Furthermore, the returns to education have remained largely stable in the past decade, with an additional year of schooling resulting in a 4.3 percent increase in returns in 2008 (Montenegro and Patrinos 2014). Table 3.3 - Rates of return to schooling (2019), % All Male Female Urban Rural Rate of return to each additional year in school* 4.7 4.6 4.0 5.1 3.3 Rate of return by education level completed** Primary (vs. None or below primary) 17.0 14.2 11.5 9.5 13.8 Secondary (vs. None or below primary) 38.0 34.0 30.8 30.3 30.7 Tertiary (vs. None or below primary) 68.0 67.2 56.7 61.3 53.7 Secondary (vs. primary education) 21.0 19.8 19.2 20.7 16.9 Tertiary (vs. secondary education) 30.0 33.2 26.0 31.1 23.0 Annualized rate of return by education level completed** Primary (vs. None or below primary) 5.7 4.7 3.8 3.2 4.6 Secondary (vs. primary education) 3.5 3.3 3.2 3.5 2.8 Tertiary (vs. secondary education) 7.5 8.3 6.5 7.8 5.7 Source: Authors’ calculations using CLFS (2019). Note: * Standard Mincerian estimates. ** Extended Mincerian estimates. The private rates of return exhibit an upward trend with each progressive level of education, as demonstrated by the extended Mincerian regression estimates in the table. They reflect the earnings advantages linked to each successive level of education, such as the transition from secondary schooling to college or university education. On average, individuals with secondary education earn wages approximately 21 percent higher than those with primary education. Moreover, workers with tertiary education experience an even more substantial increase, with earnings approximately 30 percent higher than those of individuals with secondary education. This notable surge in returns for tertiary education aligns with the previously observed sharp rise in wage rates among individuals holding tertiary degrees. These results highlight the increasing value and potential financial benefits associated with higher levels of education attainment in general, and tertiary education in particular. 33 In the standard Mincerian approach, the logarithm of wages is regressed on years of schooling, labor market experience, and its square. The coefficient attributed to years of education represents the average private rate of return for each additional year of schooling. Although critics argue that the Mincerian method may introduce bias due to omitted variables, studies indicate that the bias is relatively minor (Griliches 1977; Psacharopoulos and Patrinos 2018). Consequently, it remains one of the most widely used approaches to estimate private returns to education. The extended Mincerian regression simply replaces the years of education variable in the standard Mincerian function with dummy variables for education levels. 36 There is evidence indicating a decline in the private returns to tertiary education in Cambodia over time. Montenegro and Patrinos (2014) reported an annualized return of 20.7 percent for tertiary education in Cambodia in 2008, a figure substantially higher than the 7.5 percent observed in 2019. This trend could imply that over the past decade, the supply of higher education graduates may have exceeded the industry's demand for these graduates. However, it is important to consider that the lower returns observed in 2019 could also be attributed to the peculiar labor market dynamics that year, and not necessarily a long-term trend. The rate of return to schooling in Cambodia shows a similar pattern for both men and women, with a slight advantage observed for men. This finding diverges from the global evidence, which has historically demonstrated higher returns for women (Montenegro and Patrinos 2014; Psacharopoulos and Patrinos 2018). For instance, men with tertiary education enjoy a wage premium of 33 percent compared to men with only secondary education, while women experience a slightly lower premium of 26 percent. These findings indicate that while both genders benefit from investing in education, men tend to realize slightly higher returns, suggesting the presence of gender-based disparities in the labor market. Consistent with the findings for wage rates, there is also a significant disparity in returns to education between urban and rural residents, with urban dwellers generally experiencing higher returns. Urban residents earn a 5.1 percent higher wage for each additional year of schooling, while the corresponding figure for rural residents is 3.3 percent. Moreover, the wage premiums associated with secondary and tertiary education are significantly larger for urban residents, particularly in the case of tertiary education. The urban-rural gap in returns for secondary education is 4 percentage points and widens to 8 percentage points for tertiary education. Results from regression analyses of the determinants of wages in the labor market are consistent with the above findings on returns and wage rates. As shown in Table 3.4, Ordinary Least Squares (OLS) regression analysis reveals that individuals with primary, secondary, and tertiary education earn progressively higher wage premiums of 4 percent, 16 percent, and 36 percent, respectively, compared to those with no formal education or below primary education. It is important to note that these figures are smaller than the returns summarized in Table 3.3, because this regression model take into account a number of additional explanatory factors related to wage rates. Supplementing the above analysis, the quantile regression results in Table 3.4 provide insights into the consistency of education returns across different segments of the wage distribution. The impact of primary education is particularly significant in the middle quantiles (q=0.25, 0.50, and 0.75), indicating its influence on individuals earning medium wages. Conversely, the returns to secondary and tertiary education are more pronounced among individuals earning higher wages. In particular, while tertiary education holders belonging to the lowest wage decile (q=0.10) experience a return of 32 percent, those in the highest decile (q=0.90) experience a return of 44 percent. 37 Table 3.4 - Determinants of wages using OLS and quantile regressions (2019) Quantile Regressions OLS q=0.10 q=0.25 q=0.50 q=0.75 q=0.90 Education level (reference group: No formal education) Primary education 0.0421* 0.0060 0.0425* 0.0708*** 0.0905*** 0.0504 (0.0197) (0.0332) (0.0169) (0.0160) (0.0191) (0.0257) Secondary education 0.1596*** 0.0918** 0.1468*** 0.1477*** 0.1634*** 0.2051*** (0.0215) (0.0319) (0.0161) (0.0221) (0.0268) (0.0400) Tertiary education 0.3647*** 0.3209*** 0.3164*** 0.2799*** 0.3533*** 0.4441*** (0.0279) (0.0356) (0.0317) (0.0249) (0.0367) (0.0460) Years of experience 0.0175*** 0.0233*** 0.0190*** 0.0111*** 0.0109*** 0.0154*** (0.0012) (0.0018) (0.0015) (0.0009) (0.0012) (0.0022) Experience squared −0.0004*** −0.0006*** −0.0004*** −0.0002*** −0.0002*** −0.0003*** (0.0000) (0.0000) (0.0000) (0.0000) (0.0000) (0.0001) Female −0.1092*** −0.0833*** −0.0787*** −0.0759*** −0.0959*** −0.1275*** (0.0118) (0.0192) (0.0121) (0.0078) (0.0081) (0.0165) Employment sector (Reference group: Private sector) Employment sector - Public 0.1569*** 0.1326*** 0.1890*** 0.1833*** 0.1169*** 0.2131*** (0.0221) (0.0283) (0.0180) (0.0213) (0.0220) (0.0414) Employment sector -Other −0.0702* −0.0469 −0.0738** −0.0732** −0.0774*** −0.0441 (0.0313) (0.0322) (0.0233) (0.0237) (0.0191) (0.0467) Rural −0.0214 −0.0377* −0.0000 −0.0037 −0.0226 −0.0433 (0.0179) (0.0147) (0.0107) (0.0071) (0.0164) (0.0276) Industry/sector (Reference group: Agriculture sector) Manufacturing 0.2595*** 0.2991*** 0.3027*** 0.2987*** 0.2376*** 0.1914*** (0.0238) (0.0274) (0.0297) (0.0201) (0.0210) (0.0367) Construction 0.1865*** 0.2438*** 0.2294*** 0.2327*** 0.1602*** 0.1175** (0.0207) (0.0282) (0.0230) (0.0200) (0.0198) (0.0366) Wholesale/retail trade 0.1040** −0.0034 0.0536 0.1068** 0.1557*** 0.1755** (0.0287) (0.0410) (0.0410) (0.0386) (0.0373) (0.0600) Services - excluding trade 0.1841*** 0.0243 0.1345*** 0.2337*** 0.2594*** 0.3095*** (0.0228) (0.0338) (0.0274) (0.0259) (0.0226) (0.0444) Occupation High-skill occupation 0.1305*** 0.1715*** 0.1777*** 0.1441*** 0.1114*** 0.1447*** (0.0221) (0.0278) (0.0171) (0.0160) (0.0178) (0.0415) Constant 13.1941*** 12.9033*** 12.9857*** 13.1578*** 13.3456*** 13.6000*** (0.0295) (0.0536) (0.0403) (0.0360) (0.0324) (0.0572) Province dummy Yes Yes Yes Yes Yes Yes Observations 9,377 9,377 9,377 9,377 9,377 9,377 R-squared 0.23 0.16 0.17 0.17 0.14 0.16 Source: Authors’ calculations using CLFS (2019). Note: *** p<0.01, ** p<0.05, * p<0. The regression analyses also show that Cambodia's labor market exhibits substantial wage disparities across gender groups, even after accounting for factors such as education levels, 38 employment sectors (private/public), employment industries, occupations, and geographical variations (urban/rural and provinces). These gender gaps persist consistently across quantiles, with the largest disparities at the top of the wage distribution. Women, on average, earn 10–13 percent less than men at the higher end of the wage distribution (quantiles 0.75 and 0.90). Moreover, rural workers in the lower end of the wage distribution experience approximately 4 percent lower wages compared to their urban counterparts. Notably, the urban-rural wage differential loses significance among workers earning higher wages. 3.2.4 Tracer Studies Results on the Relevance of Higher Education This subsection examines the labor market outcomes for recent graduates of Cambodia’s public and private HEIs. The results presented here are based on the analysis of tracer studies survey 34 data for 11 universities, 5 public 35 and 6 private 36. The sample constituted of 3,269 graduates from these universities whose graduation year ranged from 2018 to 2022. This is a relatively small share of the graduates, as the total number of graduates in 2022 alone was about 42,000. Gender disaggregated results for six labor market indicators are presented. The six indicators of labor market outcomes examined are as follows: (a) employment rate, (b) full-time/part-time status of employment, (c) duration to find job after graduation, (d) employment sector, (e) employment level, and (f) employment relevance. The employment rate of recent graduates is notably high, with approximately 76 percent of graduates currently employed. This figure closely aligns with the data from the CLFS, which reports a 72 percent employment rate among the working-age population with tertiary education. While the employment rate is higher among males, the difference between males and females is relatively small, amounting to only 3 percentage points. Additionally, among those who are employed, a significant majority, around 92 percent, hold full-time positions, while only 8 percent work part-time (Figure 3.11). These proportions remain consistent across gender. The majority of employed graduates are able to secure jobs promptly after completing their studies. Specifically, around 25 percent of graduates report finding employment within three months of graduation. For 11 percent of graduates, it took between three to six months to secure a job, while for the remaining 14 percent, the job search extended beyond six months. In terms of sectors, approximately two-thirds of graduates are employed in the private sector, while roughly a quarter of them work in the public sector. Notably, there is minimal disparity across genders in terms of sectoral distribution. 34 The tracer studies were conducted by these universities using online surveys (with most using Google Forms). It should be noted that the number of HEIs included in sample was small (only 11 out of the 132 HEIs were included) and these institutions were not necessarily representative of the larger population of HEIs in the country. Furthermore, the response rates for some of the institutions were quite low, and ranged from 17 percent to 85 percent across the 11 universities. These limitations suggest that the study's findings may not be generalizable to the country as a whole and should be interpreted with caution. 35 National Meanchey University (NMU), National University of CheaSim Kamchaymea (NUCK), RUA, RUPP, and University of Heng Samrin Thbongkhmum (UHST). 36 Kirirom Institute of Technology (KIT), Paragon International University, Phnom Penh International University (PPIU), University of Management and Economics (UME), University of South-east Asia (USEA), and Western University. 39 Figure 3.11 - Labor market outcomes for recent graduates (a) Employment rate (b) Full-time-part-time status (c) Duration to find job (d) Employment sector (e) Employment level (f) Employment relevance Source: Authors’ calculations using Tracer studies data (2018–2022). 40 The majority of employed graduates work in general staff positions. Specifically, approximately 75 percent of graduates were hired at this level, while the remaining 25 percent secured management positions. Disaggregating the results by gender indicates that males are more likely to be hired in management position than females: while 28 percent of male graduates were able to secure management-level jobs, a relatively smaller proportion of female graduates, 22 percent, were able to do the same. Overall, around two-thirds of graduates found employment that aligned with their college major or the skills they acquired during their studies. It is worth noting that there appears to be a slight advantage for males in this regard, as 71 percent of male graduates reported that their jobs were relevant, compared to 65 percent of female graduates. 3.3 Green Skills Cambodia’s ability to build a thriving economy that is resilient to climate change will depend to a great extent on the skills, technical capacities, and adaptive mindset of its people, backed by an effective scientific research system. In this context, the tertiary education sector’s contribution to the green and circular economy involves five complementary aspects: (a) Environmental education for society: inculcating young people with basic scientific knowledge about climate change and positive values toward the environment; (b) Skills development for the green economy: educating and training individuals who can work in the green economy or in economic and social sectors affected by climate change and the resulting environmental challenges; (c) Capacity building for guiding the green economy: helping to strengthen public agencies and institutions that support the development of the green economy and that operate in sectors negatively affected by climate change. (d) Research for the green economy: conducting relevant research to address the main challenges arising from global climate change. (e) Engagement with the green economy: building on the above-mentioned research to undertake technology transfer (at the university level) to support innovations leading to the development of the green/circular economy and the adaptation of other economic and social sectors that are adversely affected. In addition, it is essential to transform existing facilities into green campuses by adapting the physical infrastructure and operation modalities of training centers and HEIs to make sure that they are environmentally friendly. Within this framework, this subsection focuses on the second pillar, namely, educating and training individuals for the green economy. Starting with a brief look at the prevalence of green jobs in the Cambodian economy, it examines the relationship between educational attainment of workers and the green labor market by analyzing the extent to which green jobs employ workers with different levels of education. It then attempts to provide an understanding of the links between the fields of study of the workers and the green economy by looking at the labor market outcomes of workers who have academic backgrounds that can been classified as green. Finally, to provide a glimpse of what the Cambodian tertiary education system is doing to prepare workers for the green economy, it presents a brief qualitative summary of the course content of tertiary education programs that cover themes that are related to the environment. 41 3.3.1 Prevalence of Green Jobs in Cambodia Green skills are skills required to adapt processes, services and products to climate change and the related environmental rules. They include the competencies, values, and attitudes required to live in, develop, and support a sustainable and resource-efficient society. Green skills contribute to preserving or restoring environmental quality for a sustainable future and include jobs that protect ecosystems and biodiversity, reduce energy, and minimize waste and pollution. 37 In the discussion below, following the task content approach proposed by Granata and Posadas (2022) and adapted for Cambodia by Safir and Mckenna (2023), green jobs are defined as jobs in occupations which perform at least one green task. 38 Using this approach, there are 20 occupations that can be classified as green if a narrow dictionary of green terms is used to classify tasks as green or not green (Annex 2). If a broad dictionary is used to classify tasks that includes both green as well as potentially green terms, then 90 occupations are classified as green. 39 The analysis presented below, which is based on data from CLFS 2019, uses this task content-based job classification approach. A relatively large share of the jobs in Cambodia can be classified as green if the broad definition of occupation greenness is used, and prevalence of green jobs is much greater in rural areas. As shown in Figure 3.12a, under the broad definition, which includes occupations that have the potential to be green, 58 percent of the jobs in Cambodia can be considered green. As might be expected, the share of green jobs—as represented by the share of employed workers—is significantly lower (3 percent) if the narrow definition of greenness is used. Disaggregating the jobs by location, the vast majority of green jobs (79 percent) under the broad definition is concentrated in rural areas (Figure 3.12b). This is in contrast to non-green jobs which are distributed equally across urban and rural areas. When the narrow definition of job greenness is used, however, there is no difference between green and non-green occupations in the distribution of jobs across rural and urban areas. 37 https://www.oecd.org/cfe/leed/Greener%20skills_Highlights%20WEB.pdf. 38 Focused on workers and tasks, this approach asks whether the job involves specific tasks that contribute to reducing the negative environmental impacts of the activity. Using the ISCO-08 classification, all jobs in the world can be classified into 433 four-digit level occupations, and each occupation can include up to 14 tasks. A green task is one that involves developing or using green technologies. 39 Granata and Posadas (2022) distinguish green and green potential The former can be considered strictly environmentally friendly. The latter may be considered green only depending on the country context. 42 Figure 3.12a - Share of green jobs in Figure 3.12b - Distribution of green jobs across urban and Cambodian economy rural areas 100% 3 Non-green jobs 51 49 Broad 80% Share of workers (%) 58 Green jobs Job classification 21 79 60% 97 Non-green jobs 34 66 Narrow 40% Green jobs 34 66 20% 42 jobs All 34 66 0% Broad Narrow 0% 20% 40% 60% 80% 100% Job classification Share of workers (%) Non-green jobs Green jobs Urban Rural Source: Authors’ calculations using CLFS 2019. 3.3.2 Characteristics of Green Workers: Gender and Education Females are underrepresented in jobs that can be classified as green. As shown in Figure 3.13, in the economy as a whole, the gender difference in the share of jobs is relatively small though there are more males than females holding jobs (52 percent males versus 48 percent females). The share of green jobs held by females is, however, much lower than the share held by males. The gender gap is particularly large (64 percentage points) when the narrow definition of greenness is used to classify jobs—compared to a share of 82 percent for males, the share of green jobs held by females is only 18 percent. When the broad definition of greenness is used, the corresponding gender gap is smaller but remains significant (10 percentage points). In the case of non-green occupations, on the other hand, the gender gap in the share of jobs is relatively small regardless of the definition of greenness used. However, when the broad definition of greenness is used, the share of non- green jobs flips in favor of females. 43 Figure 3.13 - Gender distribution of green jobs in Cambodia Non-green jobs 48 52 Broad Job classification Green jobs 55 45 Narrow Non-green jobs 51 49 Green jobs 82 18 jobs All 52 48 0% 20% 40% 60% 80% 100% Share of workers (%) Male Female Source: Authors’ calculations using CLFS 2019. As iIn the overall economy, the majority of green job workers have low educational qualifications and only a small minority have tertiary education. Of the total jobs in the Cambodian economy, 52 percent is held by workers with primary education or no education at all, and 6 percent is held by workers with tertiary level education (Figure 3.14). The pattern for green jobs is similar, though the share of workers with primary education or less is starkly higher (62 percent) and the share of workers with tertiary education is significantly lower (2 percent) when using the broad definition of job greenness. It is interesting to note that there is a much larger share of workers with tertiary education in the non-green occupations than in the green occupations, suggesting that the green economy is dominated by low-skill jobs. Figure 3.14 - Educational background of workers in green and non-green jobs 100% 2 0 6 4 6 12 1 Share of workers for each education level 12 1 12 1 1 16 15 80% 20 24 25 29 25 60% 26 40% 44 39 38 38 31 (%) 20% 18 14 16 14 10 0% Non-green jobs Green jobs Non-green jobs Green jobs Broad Narrow All Jobs Job classification None Primary school Middle school High school Diploma University or higher Source: Authors’ calculations using CLFS 2019. 44 The distribution of workers across job types by worker educational background provides further evidence on the domination of the green economy by low-skill jobs. When the broad definition of occupational greenness is used, the share of green jobs becomes progressively lower for workers with higher levels of education (Figure 3.15a). For example, while around 72 percent of the workers without any education are engaged in green jobs, the corresponding figures for workers with high school and university education are only 46 percent and 16 percent, respectively. This pattern of progressive decline in the share of green jobs among the more educated workers is not seen when the narrow definition of job greenness is used, mainly because the overall share of green jobs using this classification approach is very small, resulting in little perceivable difference across education levels. Figure 3.15 - Distribution of workers across green and non-green jobs by worker education level (a) Using broad classification (b) Using narrow classification None 28 72 None 97 3 Education levels of workers Education levels of workers Primary school 34 66 Primary school 97 3 Middle school 44 56 Middle school 97 3 High school 54 46 High school 98 2 Diploma 67 33 Diploma 97 3 University or higher 84 16 University or higher 98 2 Overall 42 58 Overall 97 3 0% 20% 40% 60% 80%100% 0% 20% 40% 60% 80% 100% Shares of workers in brown vs green jobs (%) Shares of workers in brwon vs. green jobs (%) Non-green jobs Green jobs Non-green jobs Green jobs Source: Authors’ calculations using CLFS 2019. Among workers with tertiary education, there is little difference between males and females in the likelihood of getting green jobs over non-green jobs. When the broad definition of job greenness is used, it is seen that around 18 percent of the employed male workers with tertiary education have green jobs, which is not much different from the share for female workers (15 percent) (Figure 3.16). While the share of green jobs among employed workers is much smaller when the narrow definition of job greenness is used, the pattern of limited difference between males and females is similar. 45 Figure 3.16 - Distribution of workers with tertiary education across green vs. non-green jobs (a) Using broad classification (b) Using narrow classification Gender of workers Male Gender of workers 82 18 Male 97 3 Female 85 15 Female 99 1 All 84 16 All 98 2 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% Share of workers with tertiary Share of workers with tertiary eduation (%) eduation (%) Non-green jobs Green jobs Non-green jobs Green jobs Source: Authors’ calculations using CLFS 2019. The academic backgrounds of only a small share of workers with tertiary level education are related to the green economy. There are altogether 24 fields of study recorded in the CLFS, among which 11 can be classified as fields that are potentially green, that is, fields where environment- related courses are likely to be included (Figure 3.17). The vast majority of adults with tertiary education (73 percent) have backgrounds in business administration, health, education, languages, and law—all non-green potential fields. The share of workers with academic training in potentially green fields, on the other hand, is 19 percent. Among these fields, the ones with the largest share of workers are ICT, engineering, architecture and civil works, and agriculture. Figure 3.17 - Distribution of working-age population with tertiary education across fields of study Business and Administration 45.9 7.5 Education 6.9 6.5 Law 6.0 5.4 Engineering 4.1 3.8 Architecture and Civil work 3.3 1.6 Physics 1.6 1.0 Biology 0.8 0.7 Humanities 0.6 0.4 Security 0.4 0.4 Veterinary science 0.3 0.2 Transportation 0.2 0.1 Forestry 0.1 0% 10% 20% 30% 40% 50% Source: Authors’ calculations using CLFS 2019. Note: Potentially green fields are represented by green bars. 46 Most individuals with green potential academic backgrounds are male and work primarily in urban areas. Grouping together individuals with tertiary academic backgrounds in all green potential fields, it is seen that 75 percent of them are male, and the majority (74 percent) work in urban areas (Figure 3.18). In comparison, among individuals with non-green academic backgrounds, the gender distribution is a lot more even—52 percent male and 48 percent female. Notably, there are no significant differences between individuals in green and non-green fields of study in terms of location. Figure 3.18 - Distribution of working-age population with tertiary education by fields of study (a) Gender (b) Location 100% 100% Share of population with tertiary Share of population with 25 26 29 28 tertiary education (%) 80% 48 43 80% 60% 60% education (%) 40% 75 40% 74 71 72 52 57 20% 20% 0% 0% Green Other All Green Other All potential potential Fields of study Fields of study Male Female Urban Rural Source: Authors’ calculations using CLFS 2019. Individuals with green potential tertiary education backgrounds are equally likely to be employed as other workers. The rate of employment for both groups is quite high. About 85 percent of the working-age population with tertiary education are employed while 15 percent are either unemployed or inactive (out of labor force). Having a green potential tertiary academic background increases the likelihood of having a green job as opposed to a non-green job. As shown in Figure 3.19a, among employed workers with tertiary education, 15 percent are engaged in jobs classified as green using the broad definition. The corresponding share for workers with non-green potential academic training is 13 percent. On the other hand, 22 percent of the workers with green potential academic backgrounds have green jobs, suggesting that studying in programs that have green related courses increases the likelihood of getting a green job. This finding—that workers with green potential academic backgrounds have a greater chance of getting a green a job than worker with non-green backgrounds—is even more pronounced when the narrow definition of occupation greenness is used (Figure 3.19b): 6 percent of workers with green potential backgrounds have green jobs compared to only 1 percent of workers with other academic backgrounds. 47 Figure 3.19 - Distribution of workers with tertiary education across green and brown jobs by field of study (a) Broad classification (b) Narrow classification Green potential Green potential Fields of study of workers Fields of study of workers 78 22 94 6 Other 87 13 Other 99 1 All fields 85 15 All fields 98 2 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% Shares of workers in non-green Shares of workers in non-green vs. green jobs (%) vs. green jobs (%) Non-green jobs Green jobs Non-green jobs Green jobs Source: Authors’ calculations using CLFS 2019. However, the likelihood of having a green job as opposed to a non-green job is greater for male workers having a green potential tertiary academic background. In fact, when using the broad definition of occupation greenness, it is seen that female workers with green potential academic backgrounds are significantly less likely to obtain green jobs than female workers with other backgrounds (Figure 3.20). In contrast, depending on the definition of occupational greenness used, the share of male workers with green potential academic backgrounds who have green jobs is two to three times greater than the share of workers with other backgrounds. This points to a potential segmentation of the labor market with the better jobs (green economy, digital transition) likely to be taken over by male graduates. Figure 3.20 - Distribution of workers with tertiary education across green and brown jobs by field of study and gender (a) Broad classification (b) Narrow classification Green potential Green potential Male 73 27 Male 94 6 Fields of study of workers Fields of study of workers Female 94 6 Female 97 3 Male 86 14 Male 98 2 Other Other Female 88 12 Female 99 1 Overall Overall 85 15 98 2 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% Share of workers in non-green vs. green jobs Share of workers in non-green vs. green jobs Non-green jobs Green jobs Non-green jobs Green jobs Source: Authors’ calculations using CLFS 2019. The positive association between having a green-related academic background and the likelihood of obtaining a green job is further supported by regression analysis. Table 3.5 presents the results 48 of a Probit regression model that focuses on workers with tertiary education and examines the determinants of green employment. The findings indicate that, after controlling for other potential factors influencing employment, individuals with tertiary academic training in fields related to sustainability and environmentalism are significantly more likely to secure green jobs compared to those without such training. However, this relationship is observed primarily among men, as women with training in green fields actually appear to have a lower likelihood of obtaining green jobs. Moreover, the results highlight a broader pattern: women, in general, are significantly less likely than men to be employed in green jobs. Other key factors that determine green employment (among those with tertiary education) include location and skill level of workers. Rural workers are more likely to be employed in green jobs under the broad classification than urban workers. Skilled workers are less likely to be employed in green jobs than unskilled workers. However, this association between skill level and green job participation is only observed when using the broad classification. Table 3.5 - Determinants of participation in green jobs (for workers with tertiary education) Broad classification Narrow classification Model 1 Model 2 Model 3 Model 4 Female −0.2709** −0.1598 −0.2610 −0.2467 (0.1212) (0.1299) (0.2197) (0.2477) Green-related fields of study 0.4296*** 0.5710*** 0.5789*** 0.5895*** (0.1399) (0.1582) (0.1939) (0.2193) Female × Green-related fields of study −0.7794* −0.0530 (0.4678) (0.5428) Age −0.0053 −0.0039 −0.0035 −0.0033 (0.0076) (0.0076) (0.0126) (0.0124) Rural 0.3424*** 0.3702*** −0.1538 −0.1511 (0.1177) (0.1197) (0.2102) (0.2147) Skilled occupationsa −1.2426*** −1.2324*** −0.0419 −0.0413 (0.1305) (0.1312) (0.1913) (0.1920) Number of observations 959 959 959 959 Pseudo R-squared 0.18 0.18 0.06 0.06 Source: Authors’ estimates based on CLFS 2019. Note: a. Skilled occupations are occupations with skill levels 3 or 4 (and not armed forces occupations) according to ILO’s ISCO-08 classification. These include managers, professionals, and technicians and associate professionals and exclude all other occupations. *** p<0.01, ** p<0.05, * p<0.1; Probit model; dependent variable is participation in green job (1 if engaged in green job and 0 otherwise); coefficients represent marginal effects; standard errors in parentheses. 3.3.3 Training the Green Workforce: Green Skills in University Curricula This subsection seeks to provide a broad understanding of what the Cambodian tertiary education system is doing to prepare workers for the green economy. Using information gathered from publicly accessible websites of tertiary institutions in the country, it presents examples of course content of key programs that cover themes related to the environment. Additionally, it also presents some insights obtained from faculty interviews that shed light on the opportunities and challenges associated with green programs in Cambodian universities. 49 The results of the survey of university websites indicate that relatively few universities are offering programs directly related to climate change and the construction of the green economies. The main ones are the Institute of Technology of Cambodia (ITC), the Royal University of Phnom Penh (RUPP), the Royal University of Agriculture (RUA), and the National University of Battambang (NUBB). Examples of green related programs in the major Cambodian universities are summarized in Table 3.6. The programs are grouped into four categories based on their relevance to the development of general skills that potentially complement green activities. 40 These groups are: (a) Engineering and technical skills, which are the practical abilities related to the creation, building, and evaluation of technology; (b) Science skills, which are derived from extensive and fundamental knowledge crucial for innovative endeavors; (c) Operation management skills, which involve the expertise necessary for transforming organizational structures to facilitate green initiatives; (d) Monitoring skills, which encompass the technical and regulatory dimensions of these activities (Auktor 2020). Though all these programs have a green content, the environment or the green economy is not the primary focus of most of them. Hence, it is unclear to what extent they delve into the green topics that are included in their curriculum. Table 3.6 - Examples of green related programs in major Cambodian universities Program Green Content Description 1. Engineering and technical skills Master of Water and The program is dedicated to identifying and addressing environmental challenges such as Environmental the impacts of global change, water scarcity, water provision and sanitation, methods of Engineering (ITC) treating and disposing of wastewater, air pollution control, management of solid and hazardous waste, reduction of waste production, and the conducting of environmental assessments and audits. This program offers three specializations: (a) Water Resources Engineering, (b) Urban Water and Sanitation Engineering, and (c) Environmental Engineering and Management. 41 Bachelor of Science The overall program aims to assist in overcoming the environmental problems facing in Environmental Cambodia and it includes topics such as environment and sustainable development, Science (RUPP) environmental impact assessment, urban environment, solid waste management, biodiversity conservation, water resource management, and pollution and public health. This program offers two specialized streams: (a) Pollution and Urban Environmental Studies and (b) Natural Resources Management. 42 Bachelor of The overall program provides students with knowledge of the latest research trends in Construction construction management. Students learn how to organize and manage the construction Management (PIU) process with a focus on safety and sustainability. It includes topics such as techniques, materials, equipment, scheduling, and cost estimation, and bill of quantities that equip graduates with the ability to provide environmentally sustainable planning and design solutions. 43 2. Science skills Bachelor of Science The overall program gives students theoretical knowledge and practical skills related to in Physics (RUPP) Physics in daily life. It includes green-skill related topics such as renewable energy and electricity generation and renewable energy systems. 44 Bachelor of The program is dedicated to identifying and addressing environmental challenges such as Agronomy and Soil the impacts of global change, water scarcity, water provision and sanitation, methods of Science (RUA) treating and disposing of wastewater, air pollution control, management of solid and 40 This grouping is based on the approach used by Vona et al. (2015) to develop Green General Skill (GGS) index. The index identifies the four groups of work tasks as especially important for green occupations. 41 https://itc.edu.kh/master-and-phd-degree-hre/ 42 http://www.rupp.edu.kh/fs/environmental_science/?page=Curriculum 43 https://paragoniu.edu.kh/prospective-students/undergraduate/construction-management/ 44 http://www.rupp.edu.kh/fs/physics/?page=Curriculum 50 Program Green Content Description hazardous waste, reduction of waste production, and the conducting of environmental assessments and audits. Bachelor of Food The program is designed to address complex challenges in farming systems, agricultural Processing (NUBB) food processing, and agribusiness, catering to both local markets and export needs. It encompasses training and education in sustainable agricultural practices, aiming to enhance Cambodia's agricultural sustainability through a synergy of private sector innovation and public sector advancements. 45 3. Operation management skills Bachelor of The overall program offers students a broad, analytical and integrated study of business International processes specifically geared to global issues such as international strategy and cross- Business cultural management. It includes green-skill related topics such as business and economic Management environment, green innovation in business conduct, corporate social responsibilities, and (RUPP) so on. 46 Master of Tourism The overall program places a strong emphasis on building knowledge of industry and Resource dynamics, best practices of cultural and natural resource management, work practices, and Management research. It includes topics such as environmental impact assessment, co-auditing, (RUPP) environmental management systems, sustainable enterprises, ecotourism and natural resource management for tourism, and so on. 47 Bachelor of Science At the Rural Development program, students are trained to collaborate with various in Rural stakeholders to enhance agricultural output, sustainability, and inclusivity, thereby Development (SRU) contributing to a healthier and more environmentally friendly Cambodia. 48 Bachelor of Tourism The overall program promotes an understanding of successful management and leadership Management (KIT) practice in tourism and hospitality contexts and produces leaders who are adept in addressing the industry, community, environmental and ecological challenges. It includes topics such as travel agency and tour operation, visitor attraction management, and ecotourism and sustainable development. 49 4. Monitoring skills Bachelor of The aim is to nurture skilled professionals in the domains of architecture (which includes Architectural planning, surveying, renovation, and design) and engineering (focusing on calculation and Engineering (ITC) construction), equipping them with the necessary expertise to excel in their respective fields. 50 Bachelor of Natural The overall program focuses on the management of natural resources to ensure sustainable Resources use of resources. This program offers two specializations: (a) Fisheries and (b) Forestry Management Reservation. The fisheries curriculum includes topics such as fisheries environmental (UME) impact assessment, fisheries community and development and management, and fisheries law. 51 The forestry reservation curriculum includes topics such as crop protection, forest tourism management, agricultural law and forestry law. 52 Bachelor of Public The overall program equips students with knowledge related to the monarchy, the Administration legislature, the executive, the judiciary at all levels, the public administration, the public (PPIU) 45 https://nubb.edu.kh/en/study-with-us/faculty-of-agriculture-and-food-processing/ 46 http://www.rupp.edu.kh/fssh/ibm/?page=Curriculum 47 http://www.rupp.edu.kh/graduate/tourism/?page=Course%20Description 48 https://sru.edu.kh/academic/university-programmes/bachelors/ 49 https://kit.edu.kh/digital-brochure 50 https://itc.edu.kh/department-of-architectural-engineering/ 51 https://www.ume.edu.kh/Fishery.php 52 https://www.ume.edu.kh/Forestry%20Reservation.php 51 Program Green Content Description economy, the system of administration, public service administration, service administration. One of its core courses is energy and environmental law. 53 Bachelor of Law The overarching goal of the program is to develop students' abilities in legal analysis, (AUPP) critical thinking, and problem-solving. This preparation is intended to serve them well in a variety of career paths, including but not limited to the legal field, business sectors, government roles, and other professional arenas. 54 A set of interviews with faculty members of key Cambodian universities revealed that the integration of green programs presents a unique set of opportunities and challenges. The opportunities lie in the potential for university-wide curriculum change that would incorporate climate change and environmental issues across relevant programs. This would not only enhance the relevance of the curriculum but also equip students with the necessary knowledge and skills to address these pressing global issues. One of the key opportunities is the adoption of a more hands-on and active learning approach. For instance, fieldwork and internships within projects undertaken by faculty members can provide students with real-world experience and engagement. This approach can be particularly beneficial in courses related to ecology and environmental management, where students can work on practical problems such as minimizing landscape damage, dealing with flash floods, and removing arsenic from water without releasing more CO2 into the environment. However, the integration of green programs is not without its challenges. One of the primary obstacles is the severe lack of facilities and human resources. This shortage of qualified technical personnel tends to hinder the effective integration of environmentally sustainable components into diverse programs. Additionally, the lack of funding and support, particularly in linking graduates/students with industry, is seen as a limiting factor for the practical application of the knowledge gained from these programs. Another significant challenge is the need for a clear framework for integrating climate change and environmental issues into the syllabus. Without such a framework, teaching these concepts effectively and in depth to students continues to be difficult. Furthermore, the existing learning and research facilities are not up-to-date, and the existing farm stations at universities such as the RUA keep getting flooded, which negatively affects research and learning. Despite these challenges, the potential for greening the curriculum in Cambodian higher education is immense. With the right support at the administrative level, such as diversified funding and investment, and the implementation of a result-based curriculum that is practical and product- oriented, Cambodian universities can play a pivotal role in preparing their students for a green economy. Greening the curriculum will require Cambodian tertiary education institutions to assess which of their existing programs must be transformed or further updated to respond to the needs of the green economy and what types of curricular adjustments should be considered. It is expected that a wide range of programs will be affected by the need to align their contents and the competencies with the evolution of job requirements for the green economy. These include, among others, engineering, architecture, urban planning, basic sciences, agriculture, economics, business administration, law and political science. The following four examples are presented as 53 https://www.ppiu.edu.kh/public/index/page/view/6353006980320 54 https://www.aupp.edu.kh/bachelor-of-arts-in-law/ 52 illustrations of the kind of concrete changes likely to take place in the programs offered by Cambodian tertiary education institutions: • The curriculum of architecture and civil engineering programs must now put more emphasis on designing energy-efficient buildings and using adequate material for that purpose, for both residential and office buildings. • Urban planners must be trained with a new mindset that caters to the design and implementation of smart, green cities. • Automotive engineers and technicians must be ready to build and service hybrid and electric cars. • Medical doctors and staff need to learn about the new pathologies directly linked to contamination and extreme weather and how to treat them. 3.4 Options to Improve the Quality and Relevance of Cambodian Higher Education Institutions To improve the quality and responsiveness of tertiary education programs, MoEYS has focused in recent years on the promotion of teachers’ professional qualifications and the introduction of incentives to recognize the performance of faculty members, as well as on increasing autonomy, accountability, and the quality of leadership in the management of higher education services. 55 The government has established a higher education quality assurance system, even though it recognizes that the implementation of internal quality assurance (IQA) within tertiary education institutions still needs a lot of improvement. 56 Moving forward, MoEYS could consider the following areas of intervention to further improve the quality and relevance of higher education program: • Better preparation of incoming students, • Programs aligned with labor market needs, • Innovative pedagogical practices, and • Aligned assessment methods. 3.4.1 Foundation Courses to Prepare Incoming Students Upstream from the initiatives that the Cambodian HEIs may introduce to transform the teaching and learning experience of their students, it is important to pay more attention to the learning needs of incoming high school graduates who are not well prepared academically and are not trained to study in an autonomous manner, including by using internet-based resources for educational purposes. This would allow incoming students to catch up on subjects for which their academic preparation is insufficient. In this context, Cambodian universities could embrace predictive analytics as a promising avenue for identifying at-risk students and reducing dropout rates, especially among first generation 55 MoEYS. 2023. “Education Congress: The Education, Youth and Sport Performance in the Academic Year 2021- 2022 and Goals for the Academic Year 2022-2023.” http://MoEYS.gov.kh/wp- content/uploads/2023/05/CRC_01_Final_Draft_EC_Report_2023_in_English_04042023-1.pdf 56 MoEYS. 2023. “Education Congress: The Education, Youth and Sport Performance in the Academic Year 2021- 2022 and Goals for the Academic Year 2022-2023.” http://MoEYS.gov.kh/wp- content/uploads/2023/05/CRC_01_Final_Draft_EC_Report_2023_in_English_04042023-1.pdf 53 students (Box 3.1). A survey found that about 40 percent of US universities have experimented with novel data analysis methods to follow the digital footprint of their students and detect, very early on, behavioral changes associated with potential academic difficulties (Ekowo and Palmer 2016). Administrators and professors can use digital dashboards and ‘heat maps’ that highlight who might be in academic trouble. Ball State University in Indiana monitors not only the academic engagement of students but also their social activities to identify unexpected shifts in patterns that may reflect study difficulties. Retention specialists immediately contact the students to offer academic or psychological support as needed. Special attention is given to low-income students through a mobile app. Arizona State University’s eAdvisor system, which flags students at risk of lagging, is credited with a significant increase in completion rates for students from vulnerable groups, from 26 percent in 2007—the year of its establishment—to 41 percent in 2019. Box 3.1 - The promise of predictive analytics The experience of Georgia State University (GSU) in Atlanta is perhaps the most telling example of the use of predictive analytics in the United States. GSU, whose students are 60 percent nonwhite, and many are from first generation families, uses predictive analytics to advise students on which majors they are most likely to succeed in, based on their grades in prior courses. It relies on an early warning system built on the analysis of 2.5 million course grades received by students over 10 years to identify the critical factors that reduce the chances to graduate. For example, an academic adviser will get a red flag if a student does not receive a satisfactory grade in a course needed in their major or does not take a required course within the recommended time, or signs up for a class not relevant to their major. The university has obtained impressive results: by 2020, graduation rates were up 6 percentage points compared to 2013; to get their degree, graduates were spending on average a semester less than before, saving an estimated US$12 million in tuition; and low-income, first-generation, and minority students had closed the graduation rate gap, even in challenging STEM majors. Source: Salmi and Orjuela 2020. 3.4.2 Curriculum Modernization to Align Programs with Labor Market Needs There is perhaps no better strategy to guide curriculum modernization than attempting to align the programs of Cambodian HEIs with the country’s development strategy and with the needs of employers. A good example of successful transformation in that respect took place in Finland, where the young University of Oulu has become one of the best universities in the Nordic countries despite being located in a remote area close to the Arctic Circle. The small rural community of Oulu was transformed into a high-technology zone where, today, winning companies (led by Nokia), science parks dedicated to applied research in electronics, medicine, and biotechnology, and the 13,000-student strong university are operating in symbiosis. Strengthening links with the productive sectors is the most effective way of increasing the relevance of tertiary education programs. A variety of mechanisms can be used for that purpose, including internships for undergraduate students, in-company placements of research students and academics, and engagement of practitioners from industry as visiting lecturers. Box 3.2 summarizes the experience of UK universities in making employer engagement a core dimension of their curriculum development practice, while Box 3.3 shows an example from South Korea. 54 Box 3.2 - Good practices of employer engagement for curriculum improvement purposes A recent study in the United Kingdom has identified four main categories of employer engagement in tertiary education provision (course development and delivery): • Giving accurate and up-to-date information, advice, and guidance to students about the knowledge and skills needed to enter particular industries and professions; • Facilitating and supporting work placements and internships to provide students with valuable work experience; • Developing curricula, pedagogy, learning materials, and learning-related research projects; and • Establishing bespoke learning and teaching facilities aimed at providing students with the specialist skills they need in the workplace, often with financial support from firms. Experience shows that successful and sustainable partnerships require specialist staff, ongoing relationship management, and significant development time. Typically, this engagement will take place with companies in close proximity to the university. While research and knowledge transfer activities are often administered centrally and are thus highly visible in universities, employer engagement activities tend to be managed at faculty level or below. The five case studies documented in the report yielded the following findings: • Collaborations should be designed to respond to a strategic need recognized by all partners. This need will often be a shortage of graduates with the skills required by a particular company or group of companies, but it may encompass areas of research, particularly in advanced manufacturing or engineering. There may also be more specific needs such as identifying innovative delivery methods. • Collaborations require strong leadership from the senior teams of all the organizations involved, including the recognition that developing and implementing projects of this kind will be time-consuming and that engagement will need to be sustained indefinitely to keep curricula current. • Co-location of staff and joint appointments can support the culture change required to work together effectively and speed-up decision-making. • External funding streams can be important to give initial impetus to the partnership and give all organizations the confidence to release their own funds. • Benefits to business can include the availability of graduates with relevant skills, recruitment efficiencies, and access to other university/business services. Benefits to universities include the development of an up-to-date and relevant curriculum, which will increase student recruitment and progression outcomes and enhance the university’s reputation. Source: UK University Alliance 2015. 55 Box 3.3 - Close collaboration between Korean universities and firms Yonsei and Korea universities, along with other universities in South Korea, are rushing to open new departments in cooperation with Samsung Electronics or SK Hynix to groom future engineers in the field of system semiconductors. The move comes amid a serious unemployment crisis in tandem with a feared brain drain in the industry. It is also in line with the Korean government's plan to nurture 3,400 professional personnel in the sector through four-year undergraduate programs by the end of 2030, amid a growing need for chipmakers to expand their presence in the non-memory chip market. Sungkyunkwan University has already operated a similar course in cooperation with Samsung Electronics since 2006, enjoying great popularity among students and parents. During the 2019 admission period at the university, 1,387 students applied to the department that would select just 55 students. Seoul National University (SNU) and the Korea Advanced Institute of Science and Technology (KAIST) are also discussing opening their own departments. At Yonsei University, 50 students who major in system chips were hired by Samsung Electronics, while 30 who studied at Korea University were recruited by SK Hynix. The chipmakers will also award scholarships to students of the new departments and cover the operating expenses of the university departments. Source: Jun 2019. The Massachusetts Institute of Technology (MIT) recently published the findings of a major study looking at the evolution of engineering education, which could help the Cambodian universities with a strong engineering education focus think about relevant innovations in their own technology programs that could help make the education experience of their students more experiential (Box 3.4). Box 3.4 - The future of engineering education The trend is a move toward socially relevant and outward-facing engineering curricula. Such curricula emphasize student choice, multidisciplinary learning, and societal impact, coupled with a breadth of student experience outside the classroom, outside traditional engineering disciplines and across the world. While many of these educational features appear within engineering programs at the ‘current leader’ institutions, they are often ‘bolt- on activities’ and are isolated within the curriculum. As a result, much of the benefit of these experiences remains unexploited because they are unconnected with other curricular components and students are not encouraged to reflect upon and apply what they have learned in other areas of the degree program. In contrast to the ‘current leaders’, many institutions identified as ‘emerging leaders’ in engineering education typically deliver distinctive, student-centered curricular experiences within an integrated and unified educational approach. In most cases, their curricula were designed from a blank slate or were the result of a recent systemic reform. Experiences such as work-based learning and societally relevant design projects are embedded into the programs in a way that provides a solid platform for student self-reflection and a pathway for students to both contextualize and apply the knowledge and skills they have gained elsewhere in the curriculum. However, many of these ‘emerging leader’ exemplars—such as at Olin College of Engineering and Iron Range Engineering—cater to relatively small cohort sizes. The key innovations that are likely to define the next chapter for engineering education are the mechanisms by which such features can be integrated across the curriculum at scale: delivered to large student cohorts under constrained budgets. Source: Graham 2018, iii and iv. 56 As a result of this study, MIT has put in place a new interdepartmental, project-based program called NEET (New Engineering Education Transformation) that gives students the opportunity to select explicitly multidisciplinary projects during the four years of their degree while still learning the fundamentals in departmentally offered subjects. The four key objectives of the program are to (a) focus the curriculum on the machines and systems of the future rather than of the past, (b) prepare students to become discoverers or makers, (c) organize the educational experience around the way students best learn, and (d) teach them to think and learn independently. Students can enroll in one of the following four thematic threads: advanced materials machines, autonomous machines, living machines, and low carbon energy systems. The trend toward increased multidisciplinarity goes beyond hard science and touches social sciences as well. As early as 1990, Japan’s private Keio University established a separate entity, the Shonan Fujisawa Campus, to provide multidisciplinary programs in policy management, environmental information, and nursing and medical care. At the time, this program was regarded as revolutionary in the Japanese context because its graduates were well received by leading Japanese multinational enterprises, which until then had preferred graduates of pure social science disciplines. 57 In the United States, some of the best-known liberal arts programs of a multidisciplinary nature are offered by Emory University, Wheaton College, and Seattle University. 58 Other universities have begun to emulate this trend. Ten years ago, the University of Amsterdam and Free University of Amsterdam joined forces to establish Amsterdam University College, a new program offering the students a strong focus on the natural sciences combined with a robust footing in the social sciences, following the example of many liberal arts colleges in the United States. In Ghana, Asheshi University has received international recognition for its innovative multidisciplinary curriculum aimed at developing critical thinking, leadership skills, ethical reasoning, and effective communication skills. 59 Forman Christian College in Lahore (Pakistan) is one of the few liberal arts institutions in South Asia. 60 In addition, multidisciplinarity should cut across the traditional divide between hard sciences and social sciences. This observation is particularly important for the Cambodian universities because of the national strategy seeking to give priority to STEM programs, which runs the risk of painting the humanities and the social sciences as second-class programs. A more nuanced approach may be warranted, taking international trends into consideration. The US National Academies of Sciences, Engineering and Medicine published a report in May 2018 advocating that humanities, arts, crafts, and design (HACD) be more closely associated with science, technology, engineering, mathematics, and medicine (STEMM) in undergraduate and graduate programs (National Academies 2018). Their study was prompted by a growing preoccupation about the increasing gap between professionally oriented specializations and liberal arts curricula, at a time when “many employers—even, and, in fact, especially in ‘high tech’ areas—have emphasized that learning outcomes associated with integrated education, such as critical thinking, communication, teamwork, and abilities for lifelong learning, are more, not less, desirable.” The report went on to 57 See “Keio University Shonan-Fujisawa Campus.” http://www.sfc.keio.ac.jp/english/welcome/glance.html. 58 https://www.bestcolleges.com/features/top-integrative-studies-programs/ 59 http://www.ashesi.edu.gh/academics/the-ashesi-education.html 60 http://www.fccollege.edu.pk/ 57 explain that, while they could not recommend any one methodology to address this challenge, there was sufficient evidence pointing to the necessity of integrating HACD aspects into STEMM curricula to improve the performance of graduates. Box 3.5 illustrates how this issue is playing out. Box 3.5 - Incorporating humanities, arts, crafts, and design into curricula makes better scientists If you have ever had a medical procedure, chances are you benefited from the arts. The stethoscope was invented by a French flautist/physician named René Laennec who recorded his first observations of heart sounds in musical notation. The suturing techniques used for organ transplants were adapted from lacemaking by another Frenchman, Nobel laureate Alexis Carrel. The methods and some of the tools required to perform the first open-heart surgeries were invented by an African American innovator named Vivien Thomas, whose formal training was as a master carpenter. But perhaps you are more of a technology lover. The idea of instantaneous electronic communication was the invention of one of America’s most famous artists, Samuel Morse, who built his first telegraph on a canvas stretcher. Actress Hedy Lamarr collaborated with the avant-garde composer George Antheil to invent modern encryption of electronic messages. Even the electronic chips that run our phones and computers are fabricated using artistic inventions: etching, silk-screen printing, and photolithography. STEMM professionals with avocations such as wood- and metalworking, printmaking, painting, and music composition are more likely to file and license patents and to found companies than those who lack such experience. Likewise, authors that publish high- impact papers are more likely to paint, sculpt, act, engage in wood- or metalworking, or pursue creative writing. Members of the US National Academies of Sciences and Engineering are about three to five times more likely to have a lifelong avocation involving arts, crafts, theater, or some type of creative writing than are average scientists, and Nobel Prize winners engage in such activities at 15 to 25 times the rate of average scientists. In 2013, my colleagues and I conducted a survey of 225 scientists and engineers and found that more than 60 percent could cite a direct impact of their HACD activities on their STEMM work, and over 80 percent recommended that HACD be a required part of STEMM education. Integration occurs best through the building of conceptual or methodological ‘bridges’ between disciplines for the purpose of addressing well-defined multi- or transdisciplinary problems. Integration is not a goal in and of itself, but rather a skill that needs to be developed to respond to the connectedness of the real world. The late Charles M. Vest, president emeritus of the National Academy of Engineering and president emeritus of MIT, concurred: “[Engineering] systems cannot be wisely envisioned, designed, or deployed without an understanding of society, culture, politics, economics, and communications—in other words, the very stuff of the liberal arts and also of the social sciences.” Source: National Academies 2018. Effective labor market feedback mechanisms, such as tracer surveys and regular consultations with employers and alumni, are indispensable for adjusting curricula to meet the changing needs of the economy. All HEIs could benefit greatly from setting up a unit that is responsible for systematically monitoring the labor market trajectories of their graduates. MoEYS could also guide the Cambodian HEIs in the use of data analytics to map out future labor market needs and influence the shaping of the curriculum, following the example of the city of 58 Manchester, which has tried to chart the competencies, skills, and attributes in demand in the Greater Manchester area by analyzing 600,000 LinkedIn profiles of people working in the region. The British Council recently supported a project to use big data for the same purpose in Africa. A pilot survey of graduates of pharmacy programs at the Universities of Ghana, Lagos, and Western Cape was successfully conducted to test the potential of mobile phones for the collection of labor market results data (Yeld 2018). Most academics met during the field visits conducted for the current study recognize the need for introducing more flexibility in the curriculum. One way of achieving this goal would be to allow for more electives, which would help break the disciplinary silos within the Cambodian HEIs and promote cross-enrollment of students among the various schools and faculties. At present, hardly any Cambodian university offers joint programs delivered by two or more faculties. The Cambodian HEIs could be encouraged to place academic staff in industry to enhance their knowledge of the productive world. It is also important to establish or strengthen career advisory centers within each HEI to better inform students about career prospects and coordinate internships for students, as well as in-firm placement of academics. Finally, some HEIs may consider establishing cooperative learning programs that alternate on- campus learning periods and regular in-firm internships (Box 3.6). 59 Box 3.6 - Lessons from cooperative programs Cooperative education is a model that alternates academic studies with relevant work experience in a field directly related to a student's academic or career goals. This model has considerable advantages: it allows students to gain relevant work experience, apply theoretical knowledge gained in the classroom and clarify career plans. It also helps students to build contacts with employers and establish networks to facilitate finding employment upon graduation. Working as part of the studies program helps finance education; it is also useful for learning how to behave on the job and in general to develop the skills which employers want. The advantages for employers are also significant since they have “access to well-prepared short-term workers, flexibility to address HR needs, cost-effective long-term recruitment and retention, partnerships with Schools, and cost-effective productivity” (The National Commission for Cooperative Education, USA). 61 Waterloo University in Ontario, Canada, is home to the world’s largest co-op program—15,800 undergraduate co-op students (more than 56 percent of the full- time undergraduate population at the university and more than twice as many students as the next largest program in the world) and 3,500 partner employers around the world. A co-op student at Waterloo graduates with the same number of study/academic terms as a non-co-op student, plus up to two years of work experience in different professional areas. The student has four to six work terms (each, usually, four months long), to try out a variety of careers to find out his/her interests before graduating. On average, by the time the student graduates, he/she has already earned from US$25,000 to US$74,000, resulting in smaller student loans than other students and a greater capacity at paying them back. Graduates of Waterloo's co-op programs earn about 15 percent more upon graduation than graduates of non-co-op programs. Furthermore, Waterloo University offers the Enterprise Co-Op program where students obtain support (advice of experienced professionals and in some cases economic resources) to develop their own business. Source: The World Association for Cooperative Education (WACE); The National Commission for Cooperative Education; StudyinCanada.com; University of Waterloo, Canada. 62 It is often assumed that efforts to bring universities closer to industry apply only to engineering and applied science programs, not to the social sciences and humanities. But in reality, it is more a matter of mindset than academic discipline. A cooperative program could be set up for a history degree, for instance, whereby students would alternate between formal periods of learning at the university and periods of study/research while attached to a museum or a cultural center, or a company in the creative industries. Finally, incorporating training for entrepreneurship into the programs offered by most HEIs could help bring them closer to the productive sectors and boost their ability to nurture young entrepreneurs. 61 The National Commission for Cooperative Education (NCCE) is dedicated to advancing cooperative education throughout the United States. http://www.co-op.edu/aboutcoop2.html 62 University of Waterloo, Canada. “Co-op at Waterloo.” http://findoutmore.uwaterloo.ca/coop/. StudyinCanada.com. ‘University of Waterloo’. http://www.studyincanada.com/english/schools/profile.asp?SchoolCode=uwatl08&ProfileType=University&URL=i ndex. https://waceinc.org/ 60 A 2019 report prepared by the European University Association (EUA) explains that the key factors to promote entrepreneurships in universities are collaboration, knowledge sharing, and allowing students to show initiative (Reichert 2019). "It is about interdisciplinarity in the classroom, project-based learning, teamwork, and developing soft skills. But it is also outside the classroom, allowing students to develop student-led activities" (Boyer King 2019). Besides the well-known examples of universities that have traditionally been successful in developing entrepreneurship mindsets and skills among its students, such as MIT or Stanford University, a number of young institutions have also distinguished themselves in recent years, among them KU Leuven in Belgium, Aalto University in Finland, and Haifa Institute of Technology in Israel. 3.4.3 Innovative Pedagogical Approaches The focus of pedagogical reforms should be on making delivery more effective to facilitate a stimulating learning experience for the students, thereby increasing learning efficiency. It would be important for the majority of Cambodian HEIs to move away from traditional teaching methods and make teaching and learning more interactive, collaborative, and experiential. Today’s cohorts of young students—often described as the e-generation or Renaissance kids—have grown up with the internet and been learning since their young age from computer screens, websites, and visual media. Traditional ways of teaching have been found to be increasingly counter-productive in engaging and motivating the e-generation. Mounting evidence provided by the cognitive and learning sciences indicates that interactive pedagogical approaches facilitate an effective learning experience. Box 3.7 illustrates an innovative approach based on peer learning, pioneered by Professor Eric Mazur, Dean of Applied Physics at Harvard University. Box 3.7 - Twilight of the lecture: “active learning” overthrowing the style of teaching that has ruled universities for 600 years In 1990, after seven years of teaching at Harvard, Eric Mazur was delivering clear, polished lectures and demonstrations and getting high student evaluations for his introductory Physics 11 course, populated mainly by pre-med and engineering students who were successfully solving complicated problems. Then he discovered that his success as a teacher “was a complete illusion, a house of cards.” The epiphany came via an article in the American Journal of Physics by Arizona State University (ASU) professor David Hestenes. He had devised a very simple test, couched in everyday language, to check students’ understanding of one of the most fundamental concepts of physics—force—and had administered it to thousands of undergraduates in the southwestern United States. Astonishingly, the test showed that their introductory courses had taught them “next to nothing,” says Mazur: “After a semester of physics, they still held the same misconceptions as they had at the beginning of the term.” Mazur tried the test on his own students. To Mazur’s consternation, the simple test of conceptual understanding showed that his students had not grasped the basic ideas of his physics course: two- thirds of them were modern Aristotelians. “The students did well on textbook-style problems,” he explains. “They had a bag of tricks, formulas to apply. But that was solving problems by rote. They floundered on the simple word problems, which demanded a real understanding of the concepts behind the formulas.” Some soul-searching followed. “Was I not such a good teacher after all? Maybe I have dumb students in my class. There’s something wrong with the test! How hard it is to accept that the blame lies with yourself.” 61 Serendipity provided the breakthrough he needed. Reviewing the test of conceptual understanding, Mazur twice tried to explain one of its questions to the class, but the students remained obstinately confused. “Then I did something I had never done in my teaching career,” he recalls. “I said, ‘Why don’t you discuss it with each other?’” Immediately, the lecture hall was abuzz as 150 students started talking to each other in one-on-one conversations about the puzzling question. “It was complete chaos,” says Mazur. “But within three minutes, they had figured it out. That was very surprising to me—I had just spent 10 minutes trying to explain this. But the class said, “OK, We’ve got it, let’s move on.” “Here’s what happened,” he continues. “First, when one student has the right answer and the other doesn’t, the first one is more likely to convince the second—it’s hard to talk someone into the wrong answer when they have the right one. More important, a fellow student is more likely to reach them than Professor Mazur—and this is the crux of the method. You’re a student and you’ve only recently learned this, so you still know where you got hung up, because it’s not that long ago that you were hung up on that very same thing. Whereas Professor Mazur got hung up on this point when he was 17, and he no longer remembers how difficult it was back then. He has lost the ability to understand what a beginning learner faces.” This innovative style of learning grew into ‘peer instruction’ or ‘interactive learning’, a pedagogical method that has spread far beyond physics and taken root on campuses nationally. Every year, Mazur gives nearly 100 lectures on the subject at venues all around the world. Interactive learning triples students’ gains in knowledge as measured by the kinds of conceptual tests that had once deflated Mazur’s spirits. “In a traditional physics course, two months after taking the final exam, people are back to where they were before taking the course,” Mazur notes. “It’s shocking.” Peer-instructed students who’ve actively argued for and explained their understanding of scientific concepts hold onto their knowledge longer. Such pedagogical invention isn’t just a trial-and-error endeavor. Rigorous evaluations using statistical analysis can help distinguish the most promising innovations. For his part, Mazur has collected reams of data on his students’ results. End-of-semester course evaluations he dismisses as nothing more than ‘popularity contests’ that ought to be abolished. “There is zero correlation between course evaluations and the amount learned,” he says. “Award-winning teachers with the highest evaluations can produce the same results as teachers who are getting fired.” He asserts that he is “far more interested in learning than teaching,” and envisions a shift from “teaching” to “helping students learn.” The focus moves away from the lectern and toward the physical and imaginative activity of each student in class. Source: Lambert, C. 2012. Harvard Crimson. March-April 2012. Problem-based learning (PBL), a student-focused method in which students learn about a topic and acquire competences by working in groups to solve open-ended problems, has shown great results. The rationale of this approach is that it raises students’ motivation by challenging them to solve a problem, thereby making the learning experience more stimulating and effective. As they are confronted with a new problem, the students must take stock of the information and tools they need to learn to be able to find a solution. PBL is generally organized as a group activity. Business schools were perhaps the first institutions using some kind of problem-based approach through the case studies written up as a platform for simulating real life situations and getting the students to learn by analyzing and resolving real problems. In the past decades, a growing number of universities have adopted PBL as their main educational approach, especially in medical and engineering education. McMaster University and Sherbrooke University in Canada were among the first ones to apply PBL to train medical doctors, followed by Maastricht in the Netherlands and Roskilde University in Denmark. Established in 1974, Maastricht University rapidly expanded the problem-based approach from medical education to all fields taught at the University, including 62 economics and business, law, psychology and neuroscience, humanities, natural sciences, arts, and social sciences. Franklin W. Olin College of Engineering, a young private university located in Wellesley, just South of Boston in Massachusetts, operates a comprehensive design-based educational model. It is perhaps one of the best examples of an institution embodying the radical transformation that interactive, collaborative, and experiential learning calls for. Olin College opened its doors in 1999 with an audacious charter: offering an experimental laboratory for remaking engineering education. Starting from the observation that STEM education is in crisis in the United States because it fails to attract the right students, because it is teaching the wrong curriculum and using methods that are known to be largely ineffective, the main purpose of Olin is to train the engineer of the 21st century, “a person who envisions what has never been and does whatever it takes to make it happen” (Buderi 2014). Olin College operates with several innovative features. To identify future innovators and leaders, it recruits its students not primarily on the basis of their test scores and grades but through face-to- face interviews in multiple settings, including team exercises. Learning is primarily organized around project-based and design-based activities performed by students working in teams. Olin College has no academic departments and does not offer tenure to its faculty members, resulting in an academic culture emphasizing interdisciplinary learning and educational innovation. A typical program will involve several teachers from different disciplines providing integrated courses with interdisciplinary material. The curriculum combines engineering, entrepreneurship, and humanities in a unique way. Every Olin student must start and run a business to graduate and must complete a year-long senior design project sponsored by industry. The students are also expected to acquire leadership and ethical competencies through social sciences and humanities courses. For that purpose, Olin students cross-enroll at Babson College and Wellesley College for entrepreneurships and humanities courses, respectively. To ensure that all Olin graduates are successful at communication in a professional setting, every student is required to present some aspect of their academic work in a public setting at the end of every semester. Fifteen years after the project was launched, Olin College can boast impressive results. In 2014, Forbes Magazine ranked Olin eighth in the United States for the highest Scholastic Aptitude Test (SAT) scores of incoming students. Based on a survey of 130,000 students, Princeton Review placed Olin in the top 20 in 15 categories, including number three for students studying the most, and number 19 for the happiest students in the nation. The testimony of a typical Olin student reflecting on the learning culture of the College would be, “I’ve never worked this hard in my life and there’s nothing else I’d rather be doing” (Buderi 2014). Olin has been particularly successful in attracting young women into engineering education. While the proportion of women in engineering education is about 20 percent in the United States, it ranges from 40 to 50 percent at Olin. Olin graduates have outstanding career opportunities. According to a recent survey, 97 percent of Olin alumni were either employed—in a company or in a business they started themselves—or attending graduate school (22 percent of those at Harvard, Stanford, or MIT). Companies sponsoring senior year projects often recruit the students involved as permanent employees after they graduate. Second, it is important to offer appropriate incentives that reward teaching excellence on par with outstanding research. Professors must also be allowed the necessary time to work on improving their teaching performance. Finally, early integration of teaching and research is a powerful way of making the educational experience more stimulating and effective. 63 The introduction of innovative teaching and learning practices that promote interactive and collaborative learning also imply remodeling the physical infrastructure and environment of universities. From the flipped classroom, where the professor does not teach but essentially guides and facilitates self-learning and peer learning, to studios and open space classrooms designed to support design-based learning in teams, the new learning facilities represent a flexible learning environment that breaks away from the traditional classroom and lecture hall (Salmi and Orjuela 2020). In the past decade, MoEYS has encouraged all HEIs to set up Teaching and Learning Units. Their potential role is essential to support pedagogical innovations that enable active learning under various modalities, such as design-based or problem-based learning, serious gaming, simulations, role-playing, peer-to-peer learning, artificial intelligence software for independent learning, and so on. These units can rely on a range of training activities, including capacity-building workshops and mentoring, to support the development of innovative pedagogical approaches among the teaching staff. This evolution should happen throughout the tertiary education system. The work of Teaching and Learning Units merits to get more visibility and resources, and they should work in an integrated manner with all faculties and schools within each university. Good practices should be analyzed, assessed, and disseminated across all institutions and across the entire tertiary education system. At the national level, MoEYS could continue to play an active guidance and promotion role, following the example of the few countries that have set up a specialized agency dedicated to the promotion of good teaching and learning practices. Australia’s Office for Learning and Teaching, established in 2011 under the authority of the Ministry of Education, is a relevant example in that respect. It operates with an annual budget of about US$12 million; its main activity consists in offering competitive grants to academics interested in exploring and implementing innovative teaching practices. The Office also contributes to policy and dissemination work on the topic, as well as managing awards to recognize teaching excellence throughout the Australian tertiary education system. The United Kingdom’s recent teaching excellence initiative also aims at encouraging universities to introduce innovative teaching and learning approaches. France, Germany, and Taiwan (China) are additional examples of countries that have included concrete measures and incentives to encourage innovative teaching and learning approaches as part of their excellence initiatives (Salmi 2017). These teaching excellence initiatives consist in making financial resources available to HEIs and individual faculty members in the form of seed grants. Such grants can be used to experiment with new curricular and pedagogical approaches. In Cambodia, such a scheme could help build capacity for faculty members, and motivate them to move away from traditional pedagogical practices and adopt new, innovative practices (Box 3.8). 64 Box 3.8 - Teaching excellence in the UK The Teaching Excellence Framework (TEF) has been introduced by the UK Government since 2016 to recognize and encourage excellent teaching in UK universities and colleges. It is intended to help would- be students make the right choice of where to study and be informed of the quality of teaching provision in each program offered by British universities and colleges. This Framework is also bound with the level of incremental increase in tuition fees that tertiary education institutions can make. Along with the TEF, which recognizes teaching excellence at the program and institution levels, the UK Government also introduced Teaching Excellence Awards to individuals and teams who make outstanding impact in teaching or support learning in UK higher education. The awards consist of two schemes, the National Teaching Fellowship Scheme (NTFS) and the Collaborative Award for Teaching Excellence (CATE). The schemes are aimed not only to recognize individual success but also to provide a platform to share innovations from their practices and facilitate professional learning among faculty members in all institutions. Source: https://www.ucas.com/undergraduate/what-and-where-study/choosing-course/teaching- excellence-framework-tef-what-you-need-know 3.4.4 Aligned Assessment Methods The leadership teams of Cambodian HEIs must bear in mind that curricular and pedagogical innovations can transform learning in an effective way only if the assessment criteria and processes are fully aligned with the educational experience of the students. For instance, traditional end-of- semester exams are not an adequate manner of evaluating the learning outcomes of students who participated in problem-based courses organized around group work and peer learning. Similarly, during the COVID-19 pandemic, it became clear that online teaching and learning required new assessment approaches emphasizing more continuous assessment than one-off exams. Therefore, to support students’ acquisition of 21st century skills, universities need to implement assessment strategies that are substantially different from the ranking and classifying practices that are commonly applied. Two innovative practices have emerged in recent years in the design and use of assessment in university settings. The first one is a progressive shift toward a competency- based education model, in contrast to the traditional content-based model of course design and delivery (Henri, Johnson, and Nepal 2017). The second one, triggered by the increasing reliance on competency-based evaluation, is the move away from high-stakes summative evaluations to a formative assessment model (Gomez-Garibello and Young 2018). Assessments are formative when the information that they generate is used to adapt the instruction process to student needs. Advanced technological tools, such as artificial intelligence and social learning platforms (SLPs), allow students to obtain immediate feedback from the formative assessment conducted by the instructor. The massive open online course (MOOC) provider Coursera, for example, uses software that alerts the instructor when a large proportion of students submit wrong answers to homework assignments and provides students with hints to get at the correct answer. This type of system helps to fill in the gaps in explanation that can occur in courses and helps to ensure that all students are building the same conceptual foundation. Rather than waiting to hear back from the professor, students get immediate feedback that helps them to understand a concept and remember how to do it correctly the next time around (TeachThought 2016. 65 As illustrated in Box 3.9, formative assessments provide a meaningful learning experience for students while equipping educators with rich information to provide targeted support to students (Pearson Education 2016). Competency-based assessment can take a variety of formats, including objectively scored assessments (for example, those with multiple-choice or true-false questions), performance-based assessments (for example, those including essays, group projects, or simulated environments), and real-world observations (for example, by teachers in the classroom). Good practice research in designing competency-based assessments reveals that programs should achieve the following results: • Clearly define program competencies, • Provide an explicit link between the skills measured by the assessments and those competencies, • Demonstrate that student behaviors or thought processes during testing reflect the competencies, • Relate performance on competency assessments with other measures of the same competencies, and • Document the empirical relationship between assessment scores and future outcomes such as success in the workplace or attainment of a more advanced competency (McClarty and Gaertner 2015). 66 Box 3.9 - Competency-based assessment best practices Higher education institutions with competency-based education programs demonstrate good practices in developing and implementing competency-based assessments across each step in the process: Define program competencies: • Western Governors University (WGU) defines domains and subdomains for each competency- based degree. These subdomains outline the specific competencies that students must demonstrate. An example of an accounting subdomain would be that the student understands the need for and uses of internal control systems. • Alverno College surveys faculty to capture critical learning outcomes for individual courses and academic departments. In addition to defining specific competencies for each course, the institution lists eight competencies required of all students—communication, analysis, problem solving, value in decision-making, social interaction, development of a global perspective, effective citizenship, and aesthetic engagement. Each program defines specific, measurable descriptions for those competencies in the subject matter context. • Lipscomb University licensed the Polaris business competency framework, which lists 41 competencies. Lipscomb received feedback from local business and industry stakeholders to focus on 17 of those competencies for its undergraduate degree and focuses on those competencies in its program. Link assessments with competencies: Southern New Hampshire University’s competency-based assessment includes authentic project tasks. Students select from multiple simple projects that assess one competency at a time or a single complex project that assesses multiple competencies. For example, a simple project can assess a student’s ability to write a paragraph about a recent purchase––specifically about the purpose of the item purchased and why it was selected over other items. A more complex project would involve writing a memo to a manager evaluating two vending machine companies and recommending one over the other. This project assesses five competencies: (a) using logic and reasoning to address a problem, (b) business writing for a memo, (c) using a spreadsheet to perform calculations, (d) synthesizing material, and (e) critical evaluation of sources. Build in formative assessment: ASU’s adaptive courseware captures data as students work on formative assessments throughout each course. The course building team ensures that assessment items align with the defined course competencies, and students engage with the material until they can pass through associated formative assessment items. Information provided to instructors enables targeted intervention for struggling students. Demonstrate that thought processes reflect the competencies: Excelsior College’s nursing program employs a computer-based exam to assess nursing theory, but critical thinking and clinical reasoning are measured through simulated clinical experiences and actual performance in a lab setting. The assessment rubric outlines how adequate or insufficient reasoning skills are demonstrated in these exercises. Relate assessments and other measures of competency: The Iron Range Engineering bachelor’s in engineering program, a collaboration between Itasca Community College in Grand Rapids, MN, Minnesota State University, and the Iron Range industry in northeastern Minnesota, is centered on a three- part competency framework: technical skills, professional skills, and project management skills. Students work in industry during the program and develop projects that enable them to demonstrate the competencies required for the degree. The student must develop a portfolio that demonstrates each competency, serving as a self-assessment that requires students to articulate the learning outcomes and how they acquired them. Students must also take part in oral exams with faculty to discuss the portfolios and how they have met the competencies. Document the relationship between assessment scores and future outcomes: • Lipscomb University students, who are employed as they engage with their competency-based program, are rated by their employers at the beginning and end of the program. These ratings can be correlated with assessment scores, providing evidence of the predictive value of these assessments. 67 • WGU reports that 94 percent of employers felt that graduates from its competency-based program performed at least as well as graduates from other institutions, while 53 percent of employers reported higher performance from WGU graduates. • Graduates from Excelsior College’s competency-based nursing program pass the nursing licensure exam at rates comparable to the national average. Source: McClarty and Gaertner 2015. The main types of social learning platforms (SLPs) that support the use of formative assessment are student response systems, online student peer-review systems, and online teamwork feedback systems. As demonstrated by the disrupting effects of generative artificial intelligence platforms such as ChatGPT, AI has the potential of revolutionizing teaching, learning, and assessment. To begin with, it can unburden faculty members from routine academic tasks. Grading software for multiple choice examinations are used in many universities. The Technical University of Berlin, for instance, has developed ‘chatbots’—computer programs using natural language to conduct a conversation through auditory or textual methods—capable of grading assignments and responding to questions from students on a variety of topics, including how to plan their course of studies. Of greater potential impact are adaptive learning virtual assistants and cognitive tutors that can teach students independently and guide them through more personalized learning. Carnegie Mellon University has been a pioneer in this area. Through its Open Learning Initiative, it has developed AI-based cognitive tutors that leverage AI algorithms to deliver content adapted to student needs based on their performance and engagement with the subject matter. Its statistical course, for example, which is conducted with minimal contact with a human instructor, achieved comparable learning outcomes for students requiring fewer hours of study to master course content. In one course at the Georgia Institute of Technology, students could not tell the difference between feedback from a human being and a chatbot. AI tutors can be used in pursuit of greater personalization in tertiary education. Providing thorough feedback on writing assignments, for example, is an extensive and time-consuming process for instructors; virtual tutors can transcend checking for surface-level errors to analyze meaning, themes, and arguments to provide granular feedback to students. In online classrooms, the tutors can interrupt video lectures to ask questions directly to learners, replaying snippets of the video if it is clear the student is struggling to understand specific subject matter. This kind of omnipresent support and mentoring can fill in gaps, particularly for large introductory courses where it is challenging for instructors to give their pupils one-on-one attention. Researchers at the National School of Engineers of Sousse in Tunisia are investigating an AI tutoring system that recognizes facial expressions as students engage in science experiments in remote and virtual labs (NMC 2017, p. 47). From a psychological and motivational viewpoint, interacting with AI-based software makes it easier for students to learn by trial and error without fear of failure. It helps them experiment and learn in a judgment-free environment, rather than running the risk of failing in front of the other students and the teacher. Artificial intelligence does not criticize the students but makes suggestions on how to improve and learn better. At the same time, it is important to consider the philosophical, psychological, and ethical questions about human reactions, behaviors, and 68 incentives that arise from increased reliance on AI, including the risk of academic dishonesty in the form of cheating and plagiarism. 3.5 Summary Findings and Recommendations Main Findings • The absence of Cambodian universities from international university rankings highlights the relatively low quality of tertiary education in the country. • Disparities in the quality of high school education in Cambodia result in unprepared university students who struggle to adapt to the more hands-on and critical thinking- focused learning environment, particularly affecting career choices in STEM fields. • The adoption of ICT in Cambodian education, accelerated by the pandemic, has revealed disparities in online education quality, with only a few institutions having the capacity to improve program quality and relevance in collaboration with industry. • The Cambodian government has made substantial progress in improving the infrastructure for higher education, including laboratories, libraries, and internet connectivity, but challenges persist in meeting the evolving needs of institutions, particularly regarding digital infrastructure and access to the internet. • The employment rate for tertiary education graduates is relatively high, with a significant majority finding employment primarily within the services sector. • Although the returns on tertiary education are higher compared to lower education levels, a declining trend in these returns over time hints at a potential oversupply of higher education graduates relative to the industry's demand in the past decade. • Using the task content approach, it appears that merely 3 percent of all jobs in Cambodia can be categorized as green jobs, with a vast majority of these roles being filled by men. • Few Cambodian universities offer programs directly related to climate change and the green economy, with notable exceptions being the ITC, RUPP, RUA, and the NUBB. Main Recommendations • Offering remedial courses to incoming high school graduates would better prepare them to be successful students at the tertiary level. • To align college programs with labor market needs, it is vital to strengthen links with the productive sectors through measures such as co-design of programs, internships, in- company placements, and engagement of practitioners from industry. • Shifting from high-stake summative evaluation to formative assessment model would help align assessment methods with innovative curriculum and pedagogy. • There is a need to implement a clear framework for integrating climate change and environmental issues into the curriculum to promote green skills programs. • It would also be important to develop green programs that adopt hands-on and active learning approach. 69 4. Research and Innovation 4.1 Research Outputs and Impact To assess the research output of Cambodia in a comparative perspective, it is useful to study the evolution of the number of citable documents relative to the population between 2010 and 2017, corresponding to the quantitative dimension of research production, and the H-index, which measures the quality and impact of that research. 63 Despite substantial progress made in the quantity of research output over the last decade, with a 173 percent increase between 2010 and 2021, Cambodia remains at the bottom of the benchmarking country list in the East Asia region, slightly below Lao PDR (Table 4.1). In terms of quality and impact as measured by the H-indicator, Cambodia ranks second from the bottom of the list, doing just a little bit better than Lao PDR. Table 4.1 - Research output of Cambodia and selected comparator countries (2010 and 2021) Citable Citable Documents per 1 Documents per 1 Increase from Country H-Index (2021) Million Million 2010 to 2021 (%) Inhabitants (2010) Inhabitants (2021) China 250 594 138 1210 Cambodia 13 34 173 132 Indonesia 11 187 1598 288 Japan 964 1086 13 1236 Lao PDR 19 44 133 112 Malaysia 540 1193 121 450 Philippines 13 57 351 302 Singapore 2841 4061 43 746 Thailand 140 335 139 418 Viet Nam 24 179 650 282 Source: SCImago. SJR - SCImago Journal and Country Rank https://www.scimagojr.com/countryrank.php Another useful filter to look at the research performance of Cambodia consists in measuring its scientific production in relation to the country’s gross domestic product (GDP), which gives a fair notion of research productivity relative to economic wealth (Figure 4.1). Cambodia is doing better than Indonesia, Lao PDR, and the Philippines, which is a reasonably positive result in relation to the country’s wealth. 63 The H-index is a bibliometric index calculated as the maximum number of publications for which each publication is cited at least that many times. The H-index is considered better than many other bibliometric measures as it considers both productivity and impact (Usher 2012). 70 Figure 4.1 - Number of scientific and technical journal articles per billion PPP$ GDP for Cambodia and comparator countries (2022) Vietnam 9.8 Thailand 11.1 South Korea 31.6 Singapore 27.8 Philippines 2.5 Malaysia 18.0 Laos 4.1 Japan 17.6 Indonesia 2.0 Cambodia 5.1 China 23.1 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Source: GII 2022 https://www.globalinnovationindex.org/ 4.2 Knowledge and Technology Transfer Measures of technology transfer are useful for to capturing the contribution of a country’s universities to the national innovation system. Unfortunately, data for Cambodia’s patent production are not available, most likely because the numbers are very low, as they are in the case of Lao PDR. An indirect way of assessing the innovation capacity and output is to look at Cambodia’s ranking in the Global Innovation Index (GII). While the country has clearly improved its position since 2008, it is undoubtedly lagging most comparators, except Lao PDR. Table 4.2 - Innovation capacity and output of Cambodia and selected comparator countries Global Innovation Index Number of Patents Per Million Population Ranking Country (2021) 2008 2022 China 488 37 11 Cambodia n.a. 117 97 Indonesia 25 49 75 Japan 1476 9 14 Lao PDR n.a. n.a. 112 Malaysia 206 25 36 Philippines 13 63 59 Singapore 1095 5 7 Thailand 42 44 43 Viet Nam 38 64 48 Source: World Intellectual Property Indicators 2021 for patents. https://www.wipo.int/publications/en/details.jsp?id=4571GII GII https://www.globalinnovationindex.org/Home for innovation rankings. 71 To understand Cambodia’s low results, it is important to underline that most HEIs are essentially teaching institutions with limited capacity to carry out research and even less able to contribute to technology transfer. As established earlier, a significant proportion of faculty members are neither qualified nor adequately trained for advanced research and innovation, and universities have limited scientific infrastructure and equipment for leading edge research. Preparing the next generations of young researchers is still work in progress. Table 4.3, which shows the distribution of graduates by degree level, clearly reveals that, in spite of rapid progress in the past few years, Cambodian tertiary education institutions cater mainly to undergraduate students, with less than 9 percent of the graduates being master’s or PhD students. Table 4.3 - Distribution of graduates by degree in Cambodia (2015–2022), % Level of Studies 2015 2019 2022 Proportion of Undergraduate Students 82.17 75.13 78.68 Proportion of Master’s Students 5.03 8.95 8.26 Proportion of PhD Students 0.02 0.04 0.22 Source: MoEYS. Many areas of improvement identified in the previous chapter on quality also explain the limited development of research and technology transfer in the Cambodian tertiary education system. The high student-teacher ratio and the low proportion of academics with a PhD translate into high teaching loads, little time for research, and poor supervision of graduate students. Many doctoral students spend up to six years to complete their studies. The poor state of infrastructure applies also to the research facilities and equipment. Few universities have a clear strategy and the resources to turn the situation around. While the annual production of PhD graduates has increased in an exponential manner in the past years, the numbers remain low, as shown by Figure 4.2. Figure 4.2 - Number of PhD graduates (2015–2022) 100 92 80 55 60 40 31 17 17 15 20 20 11 0 2015 2016 2017 2018 2019 2020 2021 2022 Source: Education Congress Reports for 2022 and 2023. 64 64 Education Congress Report (2022). https://planipolis.iiep.unesco.org/sites/default/files/ressources/cambodia_education_congress_report_2021- 2022_eng.pdf Education Congress Report (2023). https://planipolis.iiep.unesco.org/sites/default/files/ressources/cambodia_education_congress_report_2022- 2023_eng.pdf 72 Furthermore, HEIs are not able to offer incentives to their academics for these functions as the remuneration conditions and evaluation practices are not adequate to reward their research and technology transfer performance. The lack of enabling working conditions leads to difficulties in attracting and retaining scientific talented researchers who can nurture student research talent and generate high-quality research themselves. The Cambodian tertiary education system cannot be relevant to the economy and society as a whole, support the national innovation system, and contribute effectively to the SDGs if the research and extension functions are not developed and well-integrated with the training mission of HEIs. Thus, Cambodia is yet to have a critical mass of high-quality research talent to have a positive impact on the overall research output, including industry-relevant research, and cross- border collaborative research. The Global Innovation Index (GII), produced by Cornell University, Institut Européen d'Administration des Affaires (INSEAD), and the World Intellectual Property Organization (WIPO), is a useful proxy to compare Cambodia’s research and innovation results with relevant countries in East Asia (Table 4.4). The Higher Education Ranking is a composite indicator measuring the enrollment rate, the proportion of graduates in science and engineering, and the inbound mobility of students. The R&D indicator is based on the number of researchers relative to the total population and the level of expenditures on research calculated as a proportion of GDP. While Cambodia has a relatively good position with respect to its Higher Education Ranking (76 in the world), its R&D indicator ranking is less positive. As of 2022, Cambodia was ranked 97 in the world, doing only better than Lao PDR in the region. Cambodia’s poor innovation rank is due, to a large extent, to low scores in terms of inputs for the R&D indicators (Table 4.4). This reflects, in particular, the relatively small number of researchers and the low level of research funding. Table 4.4 - Global innovation index, higher education, and R&D ranking (2022) Higher Education Research and Country Global Innovation Index Ranking Development Ranking China 11 92 8 Cambodia 97 76 108 Indonesia 75 93 49 Japan 14 83 4 Lao PDR 112 95 120 Malaysia 36 13 38 Philippines 59 59 63 Singapore 7 2 17 South Korea 6 18 1 Thailand 43 62 44 Viet Nam 48 90 68 Source: GII (2022) https://www.globalinnovationindex.org/. Another contributing factor to explain the present situation is the insufficient level of university- industry collaboration that takes place in Cambodia. This is the result of a low demand from the private sector as well as not enough industry-relevant research taking place at the universities. A 73 related challenge is the fact that Cambodian universities have not taken full advantage of opportunities to link with the global research frontiers, such as world-class universities and their world-class faculty in other East Asian nations, to participate in collaborative research programs and promote the internationalization of PhD programs. 4.3 Recommendations to Improve the Research and Innovation Contribution of Cambodian Universities Considering the limited impact that the Cambodian universities have on the economy, it is important to build up their research and innovation capacity. For that purpose, the GOC could work on four key aspects at the national level: (a) build a strong research agenda aligned with the country’s priorities, (b) increase research funding in support of that development agenda and introduce innovative funding schemes, (c) provide incentives for high-performing researchers, and (d) strengthen links with industry and global research networks. 4.3.1 Alignment of the University Research Agenda with National Priorities Committed to integrating science and technology into the core economic sectors, the GOC adopted the National Policy on Science, Technology, and Innovation 2020–2030 in 2019. This policy places a strong emphasis on the role of human capital development, the creation of an innovative ecosystem, and investment to minimize the science and technology skill gap with other countries in the region. To implement the new policy, the government established the Ministry of Industry, Science, Technology, and Innovation (MISTI) in 2020 to organize, manage, promote, support, and implement policies, development programs, and innovative technology in industry science, technology, and innovation at national and sub-national levels. Built on various national policies and strategic plans, Cambodia’s STI Roadmap 2030 came into existence in 2021 as a pivotal driving force for future socioeconomic development by strengthening structural transformation from a labor-intensive economy to a skill-based economy. This roadmap targets five main pillars, namely (a) enhancing the governance of the STI system, (b) building human capital in STI, (c) strengthening research capacity and quality of research, (d) increasing collaboration and networking opportunities between STI stakeholders, and (5) fostering an enabling ecosystem for building absorptive capacities in firms and attracting investment in STI. In this respect, it is important for Cambodia to define a strong research agenda that would include the most research-intensive universities of the country as important players. To achieve this purpose, the government needs to determine how many research-intensive universities the country should have and can afford, to which it would commit adequate funding over the long run. The GOC’s strategic investments in key national and regional universities would be an important first step in that direction. It would be essential to emphasize not only capital investments (scientific infrastructure) but also investment in the human and institutional capital needed to allow these universities to accelerate their march toward academic excellence. Box 4.1 shows a relevant example from Australia where the Prime Minister announced a comprehensive research promotion strategy a decade ago. 74 Box 4.1 - A new research agenda in Australia The Australian government recently announced a National Innovation and Science Agenda backed initially by A$1.1 billion (US$790 million) over four years, aimed at encouraging “smart ideas that create business growth, local jobs and global success,” signaling the start of an era of systematic ongoing— rather than stop-start—funding for science, with a permanent watchdog established at the heart of government. It will include a flexible funding stream for university research and a program to support the training of the next generation of researchers and innovators. Through the National Innovation and Science Agenda, the government will invest in four priority areas: • Culture and capital, to help businesses embrace risk and incentivize early-stage investment in startups; • Collaboration, to increase the level of engagement between businesses, universities, and the research sector to commercialize ideas and solve problems; • Talent and skills, to train Australian students for the jobs of the future and attract the world’s most innovative talent to Australia; and • Government as an exemplar, to lead by example in the way government invests in and uses technology and data to deliver better quality services. Prime Minister Malcolm Turnbull said: “The government’s National Innovation and Science Agenda will help to create a modern, dynamic, 21st century economy for Australia. Australia is falling behind on measures of commercialization and collaboration, consistently ranking last or second last among OECD countries for business-research collaboration. Our appetite for risk is lower than in comparable countries, which means Australian startups and early-stage businesses often fail to attract capital to grow. And participation in science, math and computing at high school is declining.” A government statement said while innovation is at the heart of a strong economy it is “not just about new ideas, products and business models; innovation is also about creating a culture where we embrace risk, move quickly to back good ideas and learn from mistakes.” The National Innovation and Science Agenda had therefore put forward a package of initiatives in the four key areas. “We're backing our entrepreneurs by opening up new sources of finance, embracing risk, taking on innovative ideas, and making more of our public research. We're increasing collaboration between industry and researchers to find solutions to real world problems and to create jobs and growth. We're developing and attracting world-class talent for the jobs of the future.” And the government will lead by example by “embracing innovation and agility in the way we do business.” According to the Department of Education and Training, the agenda will ensure that high-quality research drives innovation “that saves lives, answers social and environmental imperatives, improves economic productivity and growth, and creates the jobs of the future.” The Agenda includes a number of measures that will be delivered by the Education and Training portfolio: • Ongoing funding for the National Collaborative Research Infrastructure Strategy, or NCRIS, as part of a broader package of A$2.3 billion over 10 years in new, sustainable funding for national scale research infrastructure, including the A$1.5 billion for NCRIS; • A$885 million in 2017 for a new Research Support Program to Australian universities as a flexible funding stream to support the costs of research; • A$948 million in 2017 for a new Research Training Program to support the training of the next generation of researchers and innovators; • More than A$64 million to encourage young Australian students to study science, technology, and math subjects at school so as to embrace the digital age and prepare for the jobs of the future. Source: O’Malley 2015 75 4.3.2 Increased Research Funding It is important to underscore that the success of the research capacity-building efforts is highly dependent on the GOC’s ability to significantly increase the research budget, protect the funding allocation process from political considerations and interferences, and maintain stable funding levels over the years. In 2020, Cambodia’s expenditure on R&D stood at a mere 0.12 percent of its GDP. 65 This is one of the lowest proportions in the world, and substantially below research investment levels in most other East Asian countries (Figure 4.3). Figure 4.3 - Gross expenditure on R&D as a percentage of GDP (2020) 6.00 5.00 4.80 4.00 3.27 3.00 2.41 1.89 2.00 1.33 0.95 1.00 0.28 0.42 0.12 0.16 0.00 Source: Unesco Institute of Statistics database. To enhance the research performance of universities, governments around the world have relied on several types of funding allocation mechanisms to support university-based research. These comprise instances in which instruction and research are funded together, performance-based research block grants, competitive research grants, direct funding of centers of excellence, demand-side funding, and excellence initiatives. • Combined funding for teaching and research: Most countries use this common and traditional approach for financing campus-based research, where universities use publicly provided resources to conduct research and to pay for academic and institutional operations. Joint funding of instruction and research, through a negotiated budget or formula-based funding, has the strength of being the research funding method most likely to integrate teaching and research efforts. The downside is that governments have little leeway to influence the direction of research or the efficient use of resource funding. • Performance-based block grant funding: Under this mechanism, which very few countries in the world rely on, universities receive a block grant allocation for research that is not 65 https://www.adb.org/sites/default/files/publication/812946/ki2022.pdf 76 differentiated or earmarked but that is based on the past performance of institutions or academic units. Eligibility for the block grant is usually linked to institutional demonstrated capacity. Faculties have wide latitude in setting their own priorities for the use of these funds. The amount of public research funding for each university is based on a periodic peer-reviewed assessment of collective faculty capacity to conduct research in an innovative fashion. In Australia and England, for example, the ‘blue skies’ approach for allocating research funds—allowing researchers to choose their areas of investigation without being restricted by specific national areas of priority defined by government as in the case of the competitive funding available through the research councils—is based on the results of the Excellence in Research for Australia (ERA) assessment and the Research Excellence Framework (REF) in the United Kingdom, conducted every 5–7 years to measure the quality of the research produced at different universities. • Competitive research grants: This is one of the most common ways of allocating public resources for research. Faculty members apply for funding for specific research projects, which are granted based on peer reviews of proposals. By measuring the quality and potential of proposals in an objective way, the process is somewhat insulated from political pressures. Multiple agencies are usually responsible for funding peer-reviewed research projects. Funding is sometimes provided on a matching grant basis, whereby government funds are complemented by institutional or private sources. This matching grant approach is used in Singapore (three from the government to one from the private sector), Hong Kong, and New York State in the United States, for instance. The main risk with peer-reviewed projects lies in the homogeneous selection of peers, with those in the establishment excluding dissenters, which could stifle innovation, result in narrow research agendas, and detract from the quality and relevance of the projects funded. • Centers of excellence: Another way of allocating research funds through block grants is to fund centers of research excellence at institutions that often specialize in certain fields or thematic endeavors. In the US, the federal government and several states have adopted this approach to supplement the research funding embedded in their core funding. New Zealand and the Netherlands are examples of OECD countries that have funded much or all their academic research through centers of excellence. Centers of research excellence have the potential to achieve critical mass and improve the relevance of research if the focus of the centers accurately reflects national and regional needs, as demonstrated by the ongoing three African Centers of Excellence projects supported by the World Bank in Sub-Saharan Africa. • Demand-side funding: In a number of countries, university-based research is funded indirectly through the provision of scholarships, fellowships, and research assistantships in support of graduate students. Canada, the United Kingdom, and the United States are prime examples of this demand-side approach in which the multiple agencies that fund research typically have various programs of graduate student support. • Excellence initiatives: Excellence initiatives are hybrid funding mechanisms, which provide significant additional funding to a select group of universities or centers of excellence in the countries involved. With a few exceptions (that is, Thailand where 9 universities were designated as recipients of the additional funding and, more recently, Kazakhstan where the government selected 20 universities), the selection of beneficiaries is usually done on a competitive basis. 77 Table 4.5, which analyzes how Cambodia compares internationally in research allocation mechanisms, shows that it uses mainly competitive research grants. If the government is willing and able to substantially increase research funding, it could consider putting in place additional funding mechanisms that would potentially increase the impact of research activities on the national and regional innovation systems. Table 4.5 - Allocation of research funding in Cambodia Availability Research Funding Modality Comments in Cambodia Combined core funding for teaching No objective and transparent criteria to determine NO and research research funding Performance-based grants to top NO Not available from MoEYS researchers Significant room for improvement, to link grants Competitive research grants YES/Partially to results and policy objectives Centers of excellence/Chairs of Not available from MoEYS. Few Centers of NO excellence Excellence exist with donor funding. 66 Demand-side funding NO No dedicated funding for PhD students Excellence initiative NO Not available Source: Elaborated by the authors. 4.3.3 Building a Critical Mass of Researchers Cambodia needs to accelerate its efforts toward forming a critical mass of high-level researchers. In the short run, universities can introduce policies and incentives to bring top-quality faculty from the Cambodian diaspora and foreign universities, and also consider introducing a tenure track for promising young academic staff. In the medium and long term, a talent development policy would require (a) revamping graduate schools to attract high-quality domestic and international PhD students and produce a good pipeline of doctoral and postdoctoral students; and (b) designing and implementing a comprehensive talent management system, including fast-track opportunities for young, promising faculty, transparent professional development plans, and financing mechanisms for training staff in highly ranked universities. The example of Brazil is relevant in that respect. In the past three decades, the CAPES Foundation, operating as an arm of the Federal Ministry of Education, has coordinated the country’s interventions to improve the quality of Brazil’s academic staff through grants and rigorous evaluations programs. Ten years ago, the government stepped up its efforts through its Science without Frontiers initiative, which financed 25,000 annual scholarships for overseas studies at the master’s and PhD levels in high-ranked universities in OECD countries. 66 Centers of excellence exist but mainly receive funding from international partners rather than the government. For instance, the Center of Excellence on Sustainable Agricultural Intensification and Nutrition (CE SAIN) was founded by the RUA in partnership with the Sustainable Intensification Innovation Lab at Kansas State University and the various Feed the Future Innovation Labs under projects funded by the United States Agency for International Development (USAID). 78 To facilitate the insertion of young doctoral graduates into dynamic research teams, Cambodia could consider funding postdoctoral schemes. In doing this, it would be emulating government programs operating in other parts of the world, which give the opportunity to accredited universities of hiring promising young researchers paid by the government for up to two years, at no cost or little cost to the receiving institution. 4.3.4 Strengthening Research Links between Universities and Industry The government’s STI Strategy for 2020–2030 emphasizes the need for closer and enhanced links between university-based research and industry-based demand for innovation. Figure 4.4 illustrates the range of instruments that can be deployed to implement a multifaceted technology transfer and adaptation strategy to help match the demand for innovation and the supply of STI inputs from the university and Technical and Vocational Education and Training (TVET) sector (advanced human capital, digital skills, re-skilling and up-skilling, and applied research). Specific instruments to foster firm-university partnerships include (a) matching grants for collaborative STI projects involving universities and firms working together, (b) incentives to encourage university researchers to rotate into firms, (c) innovation vouchers to allow small and medium enterprises (SMEs) to buy services from universities to assist on innovation projects, (d) industrial training opportunities for master’s and doctoral students, and (e) mutual board membership opportunities whereby universities invite industry members and vice versa. Figure 4.4 - Instruments for building the technology capability of firms Source: World Bank Instrument Guide (2019). The Ministry of Industry, Science, Technology, and Innovation (MISTI) is the leading government agency in charge of coordinating the national efforts to enhance the country’s research capacity. It needs to work closely with MoEYS and the few universities that conduct research to encourage them to increase their collaboration with the productive sectors. 79 Cambodia could also bear in mind some useful lessons from other countries. Box 4.2 provides evidence of how universities in India, China, Belgium, and Mexico have become innovation clusters. In Singapore, for example, the city-state adopted a long-term view in building up its research capacity and focused on strengthening basic research as the indispensable foundation to support the nascent innovation system (Box 4.3). Box 4.2 - Universities as innovation clusters Universities’ role as centers of innovation is vital in the innovation ecosystem, whether at the national, regional, or city levels. A well-known example of successful university innovation cluster is the Silicon Valley cluster in California. But we also see emerging university innovation hubs in developing countries. In India, seven new technology parks have been established at the various Indian Institute of Technology (IIT) campuses. IIT Delhi is partnering with the Foundation for Innovation and Technology Transfer (FITT) to set up incubators, a high-end central research facility and center of excellence in smart manufacturing. In China, Peking University’s Clinical Medicine Plus X is a hub for precision medicine, health big data, and intelligence medicine, thus bringing research and innovation to the clinical health care. These examples may serve as useful lessons for Cambodian universities as they seek to build their technology hubs. KU Leuven (Catholic University of Leuven) from Belgium, ranked number 1 in innovation in Europe, is a good example where university faculty are assessed in terms of collaborative research and technology transfer outputs which are linked with government grants. This approach has produced not only a wealth of university-industry research collaborations, but as of 2017, the establishment of 124 spin-off companies that hire approximately 6,700 employees. Of the spin-off companies that were started, 99 are still active, indicating 80 percent success rate. In Mexico, the government, universities, and employers have established an ‘urban development ecosystem’ where universities train skilled labor to suit regional development needs, engage faculty and students in community-development projects, and carry out collaborative research. The program is funded under a multiple public-private partnerships (PPPs) approach that includes the issuing of a ‘Social Impact Bond’ which can be considered an innovative results-based financing tool. Source: Elaborated by the authors. 80 Box 4.3 - Lessons from Singapore’s experience in building a strong research base In a recent interview with the Irish Times, Professor Seeram Ramakrishna, one of Singapore’s foremost scientists, shared his thoughts on Singapore’s success. Maintaining a global vision and putting more money into science are essential for any country that wants to have an international impact on research and innovation. Any economy could be at risk of missing the boat if it fails to invest at a higher level and abandons basic research in favor of research that delivers short-term returns. Singapore had a slow build to reach its current research intensity. “We felt we needed to innovate so we went to the multinationals and asked what they would need, high quality manpower, access to international markets and a good environment to operate, for example power facilities and a stable financial system.” Singapore then looked to see how it might invest to build its research and innovation capacity. Higher education was an early target for funding. The country had one university through the 1970s, a second was built in the 1980s, and another in the 1990s. and now it has five, one per one million in population. Internationalization became a key theme. “We took internationalization very seriously, attracting faculty members from abroad, international students and research partnerships with universities and industries outside Singapore. We have been pursuing this for the past 10 years”. “We also kept our eye on global excellence from the start. We think we have to do things in a global way, meaning global benchmarks and global standards. And we invested quite a bit in this. Typically, we are investing 2.7 to three per cent of GDP in research and that translates into a high research intensity.” Funding poured into PhD and graduate education. The government also prioritized research, taking a whole-of-government approach with management of the national research effort set at prime minister level. “The prime minister’s office chairs the meetings at cabinet looking at all aspects of science and innovation. The idea of reducing research investment was never considered. Singapore is primarily an export economy. The view is you have to look at the long term. You have to invest more to prepare for the future,” says Professor Ramakrishna. “The national policy protects blue skies research but also supports applied and orientated research,” he says. “We provide opportunities for both. It comes down to money, but you need a broad approach.” Source: Ahlstrom (2015). Table 4.6 provides a detailed list of the various collaboration modalities for knowledge transfer and technology commercialization that leading Cambodian universities could develop to strengthen their contribution to the nation’s development, working with public agencies, private firms, and nongovernmental organizations (NGOs). It also indicates what role the national and local authorities can play to facilitate these collaborations. Table 4.6 - Matrix of knowledge- and technology-transfer mechanisms University-Industry Role of National Role of Local Comments Links Government Authorities Public space function Contacts and networking With education and Conferences, fairs, and training, this function is Develop and fund programs to create and support forums seen by firms as the most sectoral clusters and networks Publications and important contribution of dissemination of findings universities Alumni associations Human capital formation Funding and tax Priority setting and Primary role of Student participation in incentives to facilitate incentives for universities in support of firm R&D (internships and insertion of PhD establishment of new innovation co-op programs) graduates 81 University-Industry Role of National Role of Local Comments Links Government Authorities Employment of first-level programs (emerging and and master’s graduates inter-disciplinary fields) Employment of Targeted scholarships postdoctoral graduates in Mobility scholarships R&D Employment flexibility Participation of industry (sabbaticals, leave without practitioners in teaching pay) and curriculum development Joint diploma thesis or PhDs University researcher participation in firm Participation of firm employees in university training course (on-campus or on-site) Research Research contracts Increased returns at the Joint R&D projects Funding intersection of traditional Research consortia Funding (direct/ matching) Attracting ‘anchor disciplines Industry researchers Tax incentives tenants’ seconded to university labs Assessment of research Helping cluster Problem-solving and capacity of universities formation consulting Criteria for evaluating the Targeted support for Consulting contracts performance of researchers SMEs Testing, standards, Intermediary agencies prototypes, and proof of concept designs Technical infrastructure Use of university labs Funding Need for clear revenue Common lab Funding Serviced land and sharing arrangements Common use of machines infrastructure within universities (on campus or in firm) Science parks Knowledge commercialization More likely to happen in Licensing of university- Intellectual Property Rights legal framework Funding biotechnology and held patents biomedical sciences, also Incubators Financial autonomy of Technical assistance nanotechnology, new public universities materials, and IT Start-ups Spinoffs Source: Elaborated by Jamil Salmi, with material from Yusuf and Nabeshima (2007) and Agrawal and Cockburn (2002). Finally, it is important to offer appropriate incentives within Cambodian universities to encourage academics and researchers to work closely with the economic sectors and with the local communities. This can be done by recognizing their contributions to knowledge and technology 82 transfer activities (third mission of the university) in the yearly evaluations that should become standard practice, as well as in the criteria for promotion. Box 4.4 shows how the University of Manchester tries to take a balanced approach in defining the criteria for promotion of its academics. Box 4.4 - Promotion criteria at the University of Manchester, England Applicants submitting a case for academic promotions are asked to set out the key contributions they have made in the following areas, among others. For promotion to Professor • Evidence of effective research collaboration with other institutions or organizations. • A significant record of transfer of intellectual property into the wider economy. • Evidence of significant influences on the formulation of policies or of practice in organizations outside the University.
 • Research, consulting or advisory relationships with other organizations.
 • A significant record of enrichment of the wider culture through, for example, literature, the visual and performing arts. • A significant contribution to the development of academic enterprise.
 • A significant contribution to research or policy development in the field of knowledge transfer. • Evidence of effective interactions with key stakeholders, to include public and community engagement. • Exceptional contribution to developing and managing links with external organizations. For promotion to Reader • A substantial contribution to the development of academic enterprise across a broad range of enterprise or cultural activities. • Demonstrable leadership in academic enterprise, notably new academic enterprise processes designed, initiated, and managed. • A sustained record of supervision of postgraduate students on new business creation and technology or knowledge transfer projects. • High-visibility involvement in regional, national, and international enterprise bodies. For promotion to Senior Lecturer • Promoting and maintaining links with industry, business, the professions or the community that are of value to the University. • A significant contribution to the development of academic enterprise across a broad range of enterprise or cultural activities. • Significant involvement in knowledge creation and transfer in conjunction with partner organizations in industry, commerce, government, or NGOs. This could be in the form of externally funded research and/or consultancy. • Involvement in creation of and/or commercial exploitation of intellectual property. • Success in transferring research results to commercial, professional or other 
practical use. • A record of continued successful postgraduate supervision in the area of 
academic enterprise or knowledge transfer. • A significant involvement in regional, national, and international enterprise bodies. Source: Guidance Notes Criteria for Academic Promotions, University of Manchester. https://www.staffnet.manchester.ac.uk/medialibrary/agreement/appendix-e1-criteria-academic- promotions.pdf 83 4.4 Summary Findings and Recommendations Main Findings • Despite substantial progress in the quantity of research output over the last decade, with a 173 percent increase between 2010 and 2021, Cambodia remains at the bottom of comparator countries in Southeast Asia. • In terms of quality and impact of research, as measured by the H-indicator, Cambodia ranks second from the bottom of the list. • Data for Cambodia’s patent production are not available, most likely because the numbers are very low. An indirect way of assessing the innovation capacity and output is to look at the ranking of Cambodia in the GII, which has improved since 2008, but remains below that of most comparators. • Preparing the next generations of young researchers is still work in progress. Cambodian universities still cater mainly to undergraduate students, with postgraduate students accounting for less than 9 percent of graduates. • High teaching loads for most academics translate into little time for research and the supervision of doctoral students. The generally poor state of infrastructure applies also to the existing research facilities and scientific equipment. Main Recommendations • Considering the limited impact that the Cambodian universities have on the economy and innovation system, it is important to build up their research and technology transfer capacity. • Cambodia needs to define a strong research agenda that would include the most research- intensive universities of the country as essential players. For this purpose, the government must determine how many research-intensive universities the country should have and can afford. • The success of the research capacity-building efforts is highly dependent on the GOC’s ability to significantly increase the research budget, protect the funding allocation process from political considerations, and maintain stable funding levels over time. • Cambodia must accelerate its efforts toward forming a critical mass of high-level researchers. This could be achieved through policies and incentives to bring top-quality faculty from the Cambodian diaspora and foreign universities, strengthen local graduate schools within Cambodian universities, and introduce a tenure track for promising young researchers. • Specific instruments to foster firm-university partnerships include (i) matching grants for collaborative STI projects involving universities and firms working together, (ii) incentives to encourage university researchers to rotate into firms, and (iii) innovation vouchers to allow SMEs to buy services from universities to assist with innovation projects. • Within universities, it is important to offer adequate incentives to encourage academics and researchers to work closely with the economic sectors and local communities. 84 5. Governance and Financing The principal problems faced by the Cambodian higher education system—insufficient expansion, persisting disparities, inadequate quality and relevance, limited research, and technology transfer—are due, to a large extent, to the lack of modern governance and management and the low level of public investment in tertiary education. This chapter assesses the present governance and financing arrangements and makes suggestions to modernize governance and management and put in place a sustainable financing system for tertiary education. 5.1 Governance of the Tertiary Education System and Institutions The governance of tertiary education systems can be defined as “all those structures, processes and activities that are involved in the planning and direction of the institutions and people working in tertiary education.” It covers two key dimensions: system-wide governance and institutional governance (Fielden 2008). System-wide governance relates to the macro-level laws, policies, mechanisms, and processes put in place by the State with the purpose of providing a favorable context for tertiary institutions to be able to operate effectively and efficiently. These institutions are the actors that, by working in an integrated and articulated fashion, can produce the education and research outcomes that are most important to any nation. The State exercises its stewardship through its vision for the future development of tertiary education, the agencies that coordinate and make policies, the legal and regulatory framework, and the incentives available to steer tertiary education institutions. The second layer of analysis is institutional governance, which refers to the policies, structures, and practices that enable tertiary institutions to operate in an autonomous manner and make them accountable for their results. This encompasses four main areas: organizational management, human resources management, financial management, and academic management. Figure 5.1 helps visualize the dynamic elements of governance that affect the performance of the tertiary education system, as well as that of all the institutions that operate in it. Figure 5.1 - Tertiary Education Governance Framework State Accountability Vision, coordination, Autonomy regulations & incentives Tertiary Education Institutions Source: Elaborated by J. Fielden and J. Salmi. 85 5.1.1 System-wide Governance The rapid expansion of the past two decades has happened in an unplanned and uncoordinated manner without a long-term vision and with few strategic policy interventions. A large number of government ministries and agencies are involved in supervising and providing higher education in Cambodia, which makes it difficult to move the system forward in a coordinated way, to strengthen and coordinate quality assurance, to collect and use data to make informed policy decisions, and to avoid administrative overlap and costly duplication across providers. In total, no fewer than 16 ministries are involved in managing some part of the tertiary education system, including the Ministry of Finance that plays a significant role because of its supervisory responsibilities over the universities that have received the status of ‘Public Administrative Institutes’ (PAIs). The field visits in December 2022 revealed that, even among the few sectoral HEIs managed by given technical ministries, little coordination takes place. There is a strong need, in particular, to strengthen the higher education information management system (HEMIS) to provide relevant information about a rapidly expanding system driven by the growth of the private subsector. At present, one of the limiting factors for proper analysis of the performance of the Cambodian tertiary education system to inform policy making is the lack of a comprehensive management information system, which translates into the absence of detailed information and transparency on inputs, processes, and results. Information about the various segments of the tertiary education system is spread across several agencies. No one is responsible for producing a comprehensive annual statistical report covering the entire system. It is difficult and sometimes impossible to find relevant, reliable, and up-to-date data on the most basic operational aspects of tertiary education institutions, such as enrollment, graduates, income and expenditures, internal efficiency, research production, transfer of technology results, and so on. One of the most glaring omissions is the lack of detailed and regular information about the labor market outcomes of graduates. In the context of the HIEP, MoEYS invited all HEIs to conduct their own tracer studies, but the lack of standardization of the survey questionnaires and regularity in conducting the surveys makes it difficult to have a complete picture and rigorous analysis of the labor market outcomes of graduates. The Cambodian authorities rely on a centralized supervision and management approach with regard to HEIs, which leaves them with limited autonomy to operate. This restricts the ability of public HEIs to manage their financial and human resources in a flexible and efficient way and provide incentives linked to the performance of their academics. Unlike the situation in other Southeast Asian countries (Lao PDR, Malaysia, Thailand, Viet Nam), the Cambodian tertiary education system is not regulated by a specific Higher Education Law. Higher education is subsumed under the 2007 Education Law, which has been complemented in subsequent years by bylaws and specific regulations on higher education. The downside of this piecemeal approach is that the legislation is fragmented and, at times, contradictory (Mac, Sok, and Un 2019a). The 2007 Law on Education called for the establishment of the Supreme National Council of Education (SNCE) for the coordination and cross-fertilization of education development, but this has not yet materialized (Un and Sok 2018, 1–10). In the past seven years, however, the General Directorate for Higher Education has led concerted efforts to transform the tertiary education system. MoEYS formulated the first long-term plan for higher education in 2016 and started its implementation through the HEQCIP project supported by the World Bank. More recently, it has leveraged the second World Bank-supported project 86 (HIEP) to promote educational innovations, strengthen research capacity, and consolidate management structures and processes within HEIs. An important achievement has been the definition of a comprehensive quality assurance framework and the establishment of clear mechanisms to implement it. This framework includes guidelines for curriculum development, teaching standards, research quality, and management processes. It aims to ensure that HEIs and their programs meet the quality standards set up by MoEYS. The National Accreditation Committee (NAC) is responsible for evaluating and accrediting tertiary education institutions and programs. It assesses the quality of education and research, relying on periodic external reviews of institutions. MoEYS has been working on developing tools and mechanisms for quality assurance, such as program evaluation, student feedback, and institutional self-assessment. These tools are designed to help institutions identify areas for improvement and work internally to carry out quality enhancement activities. Interviews with private sector representatives indicated that the regulations put in place by MoEYS were not perceived as too constraining. The ministry was praised for setting up a one-stop window service. However, the leaders of private sector HEIs made suggestions about the need to accelerate the review and decision-making process, and to simplify the documentation requirements. The latter part could be done through digital platforms and processes. 5.1.2 Institutional Autonomy and Accountability While the government recognizes the need for increased institutional autonomy, Cambodian public HEIs are still subject to many controls and regulations and are sometimes subject to political interference (Un and Sok 2018). Two positive changes in recent years have been the establishment of university boards at all public HEIs, and the option given to some universities to be reclassified as PAIs, a status that gives them more autonomy than regular public universities. An important reform, introduced in a 2015 Royal Decree, regulates the roles and configurations of the boards of public HEIs. The decree stipulates a reasonable size of 5–11 members, which is aligned with international good practice. The boards are responsible for giving overall strategic orientations, approving institutional plans and internal regulations, and evaluating the performance of HEIs. To protect the independence of HEIs, career politicians are barred from being board members. In practice, however, not all HEIs have established a board, and some of them are chaired by politicians nominated by supervising ministries. Furthermore, the vast majority of the members of existing boards seem to be government representatives and the contributions of the boards have been uneven. University rectors are appointed by the King of Cambodia upon proposals from the relevant ministries. The ministries, in turn, rely on recommendations from ad hoc committees. In recent years, MoEYS has promoted the involvement of stakeholders in the selection of deputy rectors and deans. However, the interviews conducted during the field visits indicated that there is room for making the selection process more professional and transparent throughout the public tertiary education system. Table 5.1 seeks to compare the degree of autonomy among the main three categories of HEIs operating currently in Cambodia: regular public universities, universities enjoying the PAI status, and private HEIs. The table is set up according to the four main areas of institutional autonomy proposed by the European Association of Universities (Eastermann, Nokkala, and Steinel 2011): organizational autonomy, academic autonomy, financing autonomy, and human resources 87 autonomy. It helps to identify areas where more flexibility and freedom could be given to HEIs to allow them to respond in an innovative way to the changing requirements of the labor market, especially in the context of the transition to the green economy that Cambodia has undertaken. Table 5.1 - Degree of institutional autonomy of HEIs in Cambodia Areas of Public Administrative Institutional Public HEIs Private HEIs Institution Status Autonomy PAI HEIs have reasonable Private HEIs can prepare control over their programs Public HEIs have substantive their curriculum (with pro and curricula, but program autonomy over curriculum forma approval from revisions and updates need to design, research policy, relevant ministries), award be approved in advance by entrance standards and degrees, set admission the technical supervising admission policy, evaluation of policy, and so on. Private Academic ministry. They have almost teaching and research, teaching HEIs define their own Autonomy complete autonomy in load guidelines, degree enrollment criteria, the student admission. They can classification, and international main requirement being a determine the total number of link agreements). In principle, high school certificate for annual student intake—both curricula should be sent to the undergraduate programs or scholarship and fee-paying technical ministry for approval, a certification of Grade 12 students—and decide upon though in practice this is more completion for associate the admission criteria and for pro forma purposes. programs. requirements. PAIs are governed by a Board of Directors. The mandatory (and minimum) membership comprises a The Governing Board representative of the members of private HEIs technical supervising All public HEIs under MoEYS usually comprise ministry, the Ministry of are overseen by a Governing shareholders, a few invited Economy and Finance Board composed of 5–11 prominent figures, and few (MEF), and the Office of the members. Each Board is tasked staff and student Council of Ministers, the with the overall strategic representatives. Some rector, and the staff direction, approval of members are appointed or representative. The institutional plans and elected pro forma with Organizational rector/director is appointed regulations, supervision, and little rigor in the selection Autonomy by the King on the monitoring and evaluation of criteria and process. recommendation of the prime institutional performance. The The day-to-day minister after a proposal of a rector/director is appointed by institutional management candidate from the technical the King on the is the responsibility of supervising ministry. The recommendation of the prime hired administrators, and vice rector/deputy director minister after a proposal from (deputy) rectors/directors and dean and deputy dean are the technical supervising are selected and appointed appointed by the prime ministry. by the Board. minister on the recommendation of the technical supervising ministry after a proposal from the rector/director. 88 Areas of Public Administrative Institutional Public HEIs Private HEIs Institution Status Autonomy The annual budget plans of public HEIs need to be approved by the technical supervising ministry before the budget negotiation with the MEF. Public HEIs have The annual budget plans of significant authority to manage PAI HEIs do not need self-generated revenues mainly approval by the technical from fee-paying programs. Private HEIs have supervising ministry before They can set tuition fees for complete control over the negotiations with the their programs. They can offer financial arrangements and Financial MEF. PAIs have limited top-up salaries for civil servants expenses and personnel Autonomy control in the management of and wages for contract staff— and administrative funds from the government both academic and management with virtually and external partners, but administrative. More broadly, little meaningful oversight have significant control over they can decide how to invest from the government. self-generated revenues, their self-generated revenue, which can. can be deposited which is kept in private banks. in private bank accounts. However, they have almost no autonomy to manage buildings, premises, and immoveable properties. T hey are not entitled to borrow funds from private sources without the MEF’s approval. The appointment, promotion, and termination of academic Autonomy in staff matters staff (that is civil servants) is varies depending on whether centralized and rigid. Full-time staff are hired within the civil academic staff who are civil service framework or on servants are on the government contract. Civil servants are payroll and have life tenure secured with for life once appointed. The decision- Private HEIs have full employment and their making authority for their autonomy in HR Staffing recruitment, payment, appointment, promotion, and management of both Autonomy promotion, and dismissal are dismissal rests with the academic and determined by the technical ministries concerned. administrative staff. government. However, HEIs However, HEIs have no control have no control over the over the number of positions number of positions they can they can open. The power to open, but they have complete promote and appoint professors control over on-contract staff is in the hands of the who can be hired for teaching government. Public HEIs have and non-teaching jobs. more autonomy in procuring contract staff and civil servants to teach fee-paying programs. Source: Sok, S., and R. Bunry. 2019. “Governance in ‘Public Administrative Institution’ Universities: Towards Public Autonomous Universities in Cambodia?” In Governance in “Public Administrative Institution’ Universities, 1st ed., edited by L. Un, pp. 5–20. Routledge. 89 Even though, in theory, PAIs enjoy more autonomy than regular public universities, the field visits and interviews with university leaders have shown that, in practice, PAIs are often subject to more financial controls than non-PAIs. Finally, Table 5.2 summarizes the main governance features of the Cambodian tertiary education system, underlining elements of strength and areas for improvement. Table 5.2 - Main governance features Principal Aspects Strengths Areas for Improvement Slow implementation and lack of success in Vision and Strategic Plans regularly prepared by addressing fundamental governance and financing Planning MoEYS issues MoEYS is the main agency Fragmentation of tertiary education system. Multiple National Coordination and in charge of higher supervising authorities. Duplication of efforts and Steering education inefficient use of scarce resources. Higher Education MoEYS publishes some Lack of comprehensive HEMIS to analyze and guide Management Information information about HEIs the development of the tertiary education system System (HEMIS) Individual HEIs conduct Need for regular and reliable labor market Labor Market Information their own graduate tracer information to assess the employment results of studies graduates Fairly high level of Financial and HR management in public institutions autonomy regarding constrained by civil service regulations regarding Institutional Autonomy academic organization and salary levels, financial controls, and procurement of management goods and services Reliable financial audits Limited information/data and few accountability Accountability provided by a few mechanisms to reflect university performance and universities actual use of resources Boards are more powerful Role and Composition of Appointment of members not always based only on in PAIs and private University Boards professional considerations universities Selection of University In theory, university boards Absence of transparent process for selection of Presidents and Leadership play a leading role in presidents and leadership teams in some public and Team Members selecting university leaders private HEIs MoEYS has encouraged the Internal Quality Need for further strengthening of IQA units through creation of IQA units in all Assurance capacity building HEIs 90 5.2 Financing of Tertiary Education in Cambodia 5.2.1 Public Funding The overall investment in education was lower than 3.5 percent of GDP in 2018. While the precise numbers are not available for higher education, estimates indicate that the government dedicates less than 0.4 percent of GDP to the subsector, resulting in very modest per-student expenditure levels, and certainly the lowest level among countries of the Association of Southeast Asian Nations (ASEAN). By comparison, Thailand spends 0.7 percent and Malaysia 1.1 percent. The roadmap recognizes that the government must make a much greater financial effort in support of higher education development. Recent data on the per-student allocation received by each public HEI are not available. But there is a sense that the youngest, regional public universities receive less resources than the older, established universities in Phnom Penh. For example, while the RUA gets the equivalent of US$800 per student, the youngest established public institution, University of Heng Samrin Tboung Kmum, receives less than US$200 per student. The 2016 data illustrate the range of differences in per-student allocations for nine universities (Table 5.3). Table 5.3 - Per-student public subsidy in a sample of universities (2016) Approved Budget University Student Enrollment Per-Budget Student (US$) Royal University of Phnom Penh 908,150 12,711 71 Royal University of Fine Arts 114,875 2,036 56 Chea Sim University of 952,850 752 1,267 Kamchaymear Institute of Technology of 596,825 4,122 145 Cambodia National Institute of Education 1,445,900 908 1,592 Svay Rieng University 849,000 3,689 230 National Meanchey University 794,250 558 1,423 National University of 756,625 2,489 304 Battambang Kampong Cheuteal Institute of 154,550 127 1,217 Technology Source: Mak et al. 2019b. Disparities in funding levels among public HEIs are due to the fact that budgets are allocated on the basis of history, without any transparent mechanism linked to objective criteria such as student and teacher numbers, or some measure of performance (graduation rates, research output, and so on). A complicating factor is that annual budgets are negotiated directly between the Ministry of 91 Finance and individual HEIs, without the mediation of the Ministry of Education. This makes it difficult for MoEYS to orient the country’s higher education policies. No comprehensive information about the resource diversification efforts of Cambodian universities is available. But the few data that can be found show substantial differences across HEIs, as illustrated by the four institutions shown in Table 5.4. Table 5.4 - Distribution of income by source in selected institutions (%) Self-Generated Institution Government Budget Tuition Fees Resources Kampong Cham National School of 50 17 33 Agriculture Institute of Technology of Cambodia 27 53 20 Mean Chey University 54 46 0 Svay Rieng University 43 57 0 Source: Mak, Sok, and Un (2019b). 5.2.2 Household Expenditures on Tertiary Education The cost of tertiary education, both at the household and individual level, has experienced a significant rise over the past decade. This increase is evident even after taking the impact of inflation into account. Analyzing the period between 2010 and 2019, household expenditure on tertiary education surged by 47 percent in real terms (Figure 5.2). During the same time frame, the individual annual cost of tertiary education witnessed a substantial increase of 62 percent. These findings underscore the considerable financial burden associated with pursuing tertiary education, highlighting the growing challenges faced by households and individuals in meeting the expenses involved. Figure 5.2 - Household and individual tertiary education expenditure (median) over the years Source: Authors’ calculations using CSES (2010 and 2019). 92 The cost of tertiary education exhibits significant disparities based on the socioeconomic backgrounds of students. Among the least privileged students, representing the bottom 20 percent of the wealth index, the median annual cost of tertiary education amounts to KHR 4,165,000 (Figure 5.3). In stark contrast, students from the most affluent households, comprising the top 20 percent of the wealth distribution, face a considerably higher cost of KHR 6,856,000. This substantial difference of 65 percent underscores the magnitude of the financial gap between these two groups. Comparatively, the variations in cost based on the type of HEI (private or public) and the geographical location (urban or rural) are relatively small. Urban students experience a modest 10 percent higher tertiary education cost compared to their rural counterparts, while private HEIs have a marginally higher cost of 5 percent compared to public institutions. While it is anticipated that private education would come with higher costs, the relatively minor gap between private and public HEI costs warrants additional sources of information to validate this finding and understand the extent of the disparity between private and public institutions. Figure 5.3 - Median annual tertiary education expenditure by HEI type, location, and household wealth 8,000 6,856 6,000 4,680 4,680 4,770 4,460 4,350 4,165 4,000 2,000 - Public Private Rural Urban Bottom Top wealth wealth quintile quintile All HEI Type Location Wealth quintile Source: Authors’ calculations using CSES (2019). Compared to rural schools, urban schools are associated with substantially higher shares of total tertiary educational expenditures on tuition and fees. For rural higher education students, along with tuition and fees, accommodation makes up the largest share of total educational expenditure—42 percent for each expenditure category (Figure 5.4). Tertiary education students from wealthy households and private HEIs have a relatively higher share of expenditure on tuition and fees and relatively lower share on accommodation, compared to the poorest students and students attending public institutions, respectively. 93 Figure 5.4 - Shares of different types of annual tertiary educational expenditures 100% 9 8 8 7 11 6 10 80% 22 26 23 30 36 31 42 60% 11 10 10 9 19 13 10 40% 57 56 51 51 49 20% 43 42 0% Public Private Rural Urban Bottom Top All HEI type Household location Wealth quntile Tuition and Fees Text books and other supplies Accommodation Other Source: Authors’ calculations using CSES (2019). 5.3 Options for Modern Governance and Sustainable Financing The current higher education plan is expiring in 2023. MoEYS is currently working on the formulation of a new plan, which is likely to include substantial reforms and measures to increase access and equity, improve the quality and relevance of programs, and strengthen the research capacity of the Cambodian universities. However, while launching a new higher education development is an important step forward, it is not sufficient in itself. It is also indispensable to put in place the conditions and ‘enabling’ measures that can guarantee a sustained positive impact in the long run. Adequate governance and sustainable financing are the most important enabling conditions in that respect. 5.3.1 Governance Importance of Good Governance Comparisons of tertiary education systems across the world reveal wide variations in performance, despite often-similar funding levels and common country characteristics. They demonstrate that certain tertiary education systems consistently outperform the others in many critical areas. Among the various factors influencing the results of tertiary education systems and the performance of tertiary education institutions, recent research has identified governance as a key determinant (Aghion et al. 2009, Salmi 2009, 2011). An adequate governance structure and favorable regulatory conditions can promote innovative behavior among tertiary education institutions, enable the development of strong quality assurance systems, and facilitate the design of effective financing mechanisms, while the opposite is not usually the case. A series of recent case studies on emerging research universities indicates that institutions that are fully autonomous are not constrained by externally imposed regulations and can, as a result, manage their resources (whether financial or human) with more flexibility to respond to changes in the global marketplace for education (Altbach and Salmi 2011; Altbach et al. 2018)). Similarly, 94 in a comparative study of European and US universities, Harvard economist Philippe Aghion observed that governance was, along with funding, the main determinant of ranking results. Commenting on the poor performance of European universities in international rankings, Aghion noted that “European universities suffer from poor governance, insufficient autonomy and often perverse incentives” (Aghion et al. 2007). A subsequent paper reporting on a survey of European universities found that research performance was positively linked to the degree of autonomy of the universities in the sample, especially with regard to budget management, the ability to hire faculty and staff, and the freedom to set salaries (Aghion et al. 2009). With respect to the composition of university boards, the report concludes that “having significant outside representation on the board may be a necessary condition to ensure that dynamic reforms taking into account long-term institutional interests can be decided upon without undue delay.” Universities that are more autonomous are also more successful in attracting additional funding. Furthermore, institutional autonomy helps to improve quality, as evidenced by the results of the EUA Trends IV and Trends VI studies (Sursock and Smidt 2010). “There is clear evidence that success in improving quality within institutions is directly correlated with the degree of institutional autonomy.” Finally, it is important to observe that good governance is not only about guaranteeing institutional autonomy. Institutions cannot meaningfully operate without proper checks and balances to avoid fraudulent practices and low quality. Accountability and autonomy are the two sides of the ‘good governance’ medal. Guiding Principles International experience indicates that it is unlikely that efforts to improve the quality of teaching and learning and raise the research output in the Cambodian universities could succeed without the modernization of governance structures and processes. This modernization is needed to give the universities more flexibility and help them develop a forward-looking thinking approach that could translate into a transformational vision and a solid strategic plan to implement the vision. Higher education scholars have proposed several models of the governance relationship between the state and tertiary education institutions. Neave and van Vught (1994) describe a continuum at one end of which is the ‘state-control model’, where the government seeks to control its universities closely, and at the other end is the ‘state-supervising model’, where the state monitors and regulates them at a distance. The last two decades have witnessed significant changes in the governance of tertiary education systems and institutions. As shown by Fielden (2008), countries have moved from the control model to the supervisory model in all aspects of their relationship with their universities, given the growth in demand for tertiary education and the impracticality of a central body effectively managing day-to-day operations of all institutions. As systems become more differentiated and tertiary education institutions embrace multiple missions, attend to a more diverse student population, and rely on several funding sources, the need for autonomy and modern management practices grows. “Higher education systems are… getting more complex due to the growth in the number of public and private institutions, so that the task of managing and monitoring the sector is becoming more specialized and demanding. As a result, the old model of total control from a central ministry of education is proving 95 unsustainable in the long term and is being replaced throughout the world by other models. These alter the mode of central involvement from one of detail to that of strategy and rely on more sophisticated forms of monitoring and performance review.” (Fielden 2008) This observation is borne by the results of the 24 evaluations of tertiary education systems carried out by the OECD at the beginning of the 2000s. “The trend has been for a reduction of direct state control of tertiary education in most OECD countries, less involvement in the running of tertiary education institutions on a day-to-day basis, and the introduction of new forms of supervision and influence through accountability mechanisms. These trends have three main effects on internal institutional governance: (i) a strengthening of the power of executive authorities within institutions, increasingly being appointed for their leadership and management qualities in addition to the traditional academic leadership skills; (ii) a concomitant loss of power and influence by existing collegial bodies; and (iii) an increase in participation on governing bodies by individuals external to the institution, which has strengthened the leadership of tertiary education institutions.” (OECD 2008) As reported by the OECD, in the majority of cases reviewed, governments have granted more autonomy to public universities. In some countries—Austria, Denmark, Finland, and Japan—the public universities have even been transformed into legally independent entities not subject to civil service regulations. In a growing number of nations, the state is relying on financial incentives to steer the development of tertiary education institutions and encourage higher performance levels. A review of recent reforms in East Asian countries confirms the trend toward the ‘state-supervised’ model of governance, where governments award tertiary education institutions increased autonomy to enable them to manage their operations independently (Reza 2010). The push for decentralization of tertiary management came in the mid- and late-1990s, beginning with the Republic of Korea and followed by Indonesia and Thailand. A second wave of reforms took place in the mid-2000s, when Japan and Singapore extended autonomy to their public universities. Setting up a new governance framework that is adapted to the 21st century challenges faced by modern higher education systems must be guided by several key principles. Under the ‘state- supervisory’ model, the most important role of the State in tertiary education is to (a) set a vision for the future and elaborate a strategy to transform the vision into reality, (b) formulate the legal and regulatory framework that clarifies the powers of the agency responsible for tertiary education policy and defines the terms of institutional autonomy—including the responsibilities of the governing bodies of autonomous universities—and accountability, and (c) negotiate the overall budget for tertiary education with the Ministry of Finance and put in place the financial instruments and incentives to encourage tertiary educations to innovate and improve their performance. The growing size of the private sector in the Cambodian tertiary education system makes it even more important to adopt a steering and supervisory governance philosophy rather than a centrally controlled system. Determining the new role of the State in that context entails considering the following questions: • Overall Steering: Who coordinates and manages the higher education system? 96 • Distribution of Responsibilities: Which powers and responsibilities are retained at the national level, and which does the State devolve to the HEIs themselves? • Central Agencies: What national agencies are needed to perform the needed coordination and management functions at the national level? • Accountability of Autonomous Institutions: How are autonomous HEIs held accountable? What regulations and reporting mechanisms are required for that purpose? • Market Governance: What balance of regulations and market-based mechanisms/ incentives is appropriate to encourage fair and efficient competition among providers seeking to attract academics, students, and research income? To improve the governance of tertiary education at the national level, the GOC should clearly indicate that MoEYS has the primary responsibility for coordinating the work of all the ministries and public bodies involved in steering, managing, and monitoring HEIs operating in Cambodia. This important move, which should be accompanied by actual empowerment decisions, would help ensure that all policy and funding decisions are fully aligned and serve the development of the various higher education subsectors in a complementary manner. As part of its coordination and policy stewardship role, MoEYS would oversee the elaboration of the vision for the future of higher education, seek ways of harmonizing resource levels across the subsectors, and have the power to grant institutional autonomy to all public HEIs operating in Cambodia. MoEYS would have two important responsibilities in that respect. The first one would be to design and implement a capacity-building program for the leaders of both public and private HEIs. Such a program, tailored to address the unique challenges and opportunities that university presidents face in their roles, would serve to enhance their leadership, managerial, strategic, and interpersonal skills to effectively lead and manage their HEIs. The following list covers the key components that a capacity-building program for university presidents might entail: • Leadership and Management Skills: Leadership styles and approaches; strategic planning and execution; decision-making and problem-solving; change management and organizational development; time and stress management; conflict resolution. • Governance and Institutional Management: Understanding and navigating university governance structures; financial management and budgeting; resource allocation and fundraising strategies; risk management and legal considerations; policy development and implementation. • Academic Excellence and Innovation: Promoting academic quality and standards; fostering research and innovation; innovations in curriculum development, pedagogical approaches, and assessment; faculty development and retention; technology integration and online learning. • Stakeholder Engagement and Communication: Building coalitions and effective relationships with key stakeholders (faculty, staff, students, alumni, government, industry, and so on); effective communication strategies (public speaking, media relations, crisis communication); community engagement and outreach. • Diversity, Equity, and Inclusion: Creating a diverse and inclusive campus culture; addressing equity issues in tertiary education; designing an equity promotion plan; implementing inclusive policies and practices. 97 • Internationalization and Global Engagement: Developing international partnerships and collaborations; enhancing global education and study abroad opportunities; managing cross-cultural challenges. • Ethical and Responsible Leadership: Ethical decision-making and values-based leadership; promoting academic integrity and research ethics. • Professional Development and Networking: Access to workshops, seminars, and conferences; opportunities for peer-to-peer learning and networking; mentoring and coaching. • Case Studies and Real-World Scenarios: Analyzing real-life challenges faced by university presidents; developing practical solutions and action plans. • Self-Reflection and Personal Growth: Enhancing self-awareness and emotional intelligence; developing a leadership philosophy; balancing personal and professional responsibilities. Implementing the capacity-building activities could entail a series of workshops run by experienced university leaders from the region and a coaching/mentorship program. The second MoEYS responsibility would be to oversee the design and implementation of a comprehensive MIS that would serve the information, monitoring and evaluation needs of the entire tertiary education system. Table 5.5 shows a list of well-developed MIS for higher education, managed either by the government or by professional associations, that Cambodia could benchmark and analyze as it designs and implements its own HEMIS. Table 5.5 - Examples of comprehensive MIS for higher education Country/Region Name of Organization Website Address Australia Australian Universities https://www.australianuniversities.com.au/ Department of Education (Higher Education https://admin.heims.education.gov.au/Admin/Controller.aspx? Australia Information Management _NCE=MenuHome&_NCS=Home&_NCP=1 System - HEIMS) China Ministry of Education http://en.cqvip.com/ceis.html Ministry of Education https://www.moe.gov.my/index.php/en/korporat/jabatan-dan- Malaysia bahagian/unit-pengurusan-kpi Ministry of Education https://www.educationcounts.govt.nz/publications/tertiary_ed New Zealand (Tertiary Education ucation/annual/2531 Commission) Higher Education Philippines https://ched.gov.ph/higher-education-institutions-data/ Commission Ministry of Education https://www.moe.gov.sg/about/org-structure/research-and- Singapore management-information Department of Higher https://www.dhet.gov.za/SitePages/Higher-Education- South Africa Education and Training Management-Information-System.aspx 98 Country/Region Name of Organization Website Address South Korea Ministry of Education http://heik.academyinfo.go.kr/ Higher Education Statistics United Kingdom https://www.hesa.ac.uk/ Agency Labor Market Observatory One of the important elements of the HEMIS would be a labor market observatory tasked with collecting and analyzing the employment results of all graduates. This would provide prospective students, university leaders, and employers with relevant information about labor market trends, employment characteristics of graduates, and changes in occupations. By putting in place such an observatory, Cambodia would follow the example of the many OECD countries that have established employment observatories either at the supra-national level (European Union Employment Observatory), the national level (for example, Bureau of Labor Statistics in the USA, Destination of Leavers from Higher Education survey in the UK, survey university-based AlmaLaurea observatory in Italy), and the sub-national level (for example, Learning and Skills observatory in Wales, OREF agencies in France (regional labor market observation), Education- Employment Information system in Florida). The examples of Bulgaria, Chile, Colombia, and Italy are worth mentioning in this context. • Since 2012, the Bulgarian government has published detailed data on the labor market results of university graduates. Using data from the Registry of Tertiary Students and statistics from the National Social Security administration, the Ministry of Education is able to provide a wealth of information on the types of jobs and levels of remuneration of graduates who left university in the previous five years. The database indicates, for instance, if the graduate found a job, if the position corresponds to the field and level of study, what type of employer she/he is working with, if the graduate has a permanent or temporary job, and the level of salary based on social security contributions. • Supported by the Chilean Ministry of Education and jointly run by the School of Government of the private University Adolfo Ibánez and the University of Chile’s Department of Industrial Engineering, Futuro Laboral aims to equip youths and students with academic orientation tools. Futuro Laboral provides information on the occupational situation of graduates of hundreds of professional and technical careers that represent 75 percent of technical and professional graduates. The information available to the public includes detailed data on salaries and employment opportunities. The portal displays, for each program of every tertiary education institution, detailed information on dropout rates, average time to degree, average earnings of the graduates after four years of graduation, current tuition fees for the program, and accreditation status of the program. Employment and earnings data are not self-reported, but gathered from the database of the national tax revenue authority. Earnings are matched to the databases of graduates provided by the tertiary education institutions. The privacy of the information is maintained, as the tax service issues only the average values for each program in each institution, provided there are at least 25 individuals in each program/institution’s cohort for whom earnings data are available. 99 • Graduados Colombia - Observatorio Laboral para la Educación was launched in 2005 and is managed by the Colombian Ministry of Education. It collects and presents information on the demand and supply of graduates. Students, families, tertiary education institutions, researchers and the productive sector have access to statistics on the academic level of the graduates of technical institutes and universities, the salaries they receive, the average time for finding the first job, as well as the cities where they work. The website serves as a tool for students trying to choose a career, and it is also useful for tertiary education institutions intent on renewing and adapting the programs they offer according to labor market needs. It provides links to job offers in Colombia and in other countries as well as advice and tips on how to write and present a good resume. Visitors are able to look for the results of the graduate and employer surveys, as well as studies on specific disciplines and economic sectors. • Italy’s AlmaLaurea provides the largest database of graduates resumés (900,000 from 50 universities) and now gathers 67 percent of all Italian graduates’ profiles. AlmaLaurea was created in 1994; is currently managed by a consortium of Italian universities; and is supported by the Ministry of Education, Universities, and Research. The services offered to graduates and students include the following: online posting of graduate resumé, advice to improve resumé and option to update it regularly, access to a large bank of job offers and enterprises, and option to answer job offers online through the AlmaLaurea website. Postgraduate programs are also described to better match students’ needs for further education; alerts are sent via emails to keep the user on track and facilitate his or her proceedings. The incentives for universities to subscribe to AlmaLaurea are significant: provide more options to their students, think about new curricula and orientation, and develop internships/first job options. AlmaLaurea also provides annual information on the occupational conditions of graduates, including PhDs, gathers archives of graduate and doctorate thesis titles, validates the administrative records of graduates, and helps promote postgraduate and master’s courses through the website. Employers, on their part, have online access to the largest Italian database of graduates’ resumés and can easily purchase curriculum vitae, select the best candidates through criteria matching, announce new job offers, and describe their company to attract the best graduates. With the emergence of more powerful artificial intelligence and data analytics tools, it has become possible to use data more effectively to map out future labor market needs and influence the shaping of curriculum and pedagogy. The city of Manchester, for instance, has tried to chart the competencies, skills, and attributes in demand in the Greater Manchester area by analyzing 600,000 LinkedIn profiles of people working in the region. The British Council recently supported a project to use big data for the same purpose in Africa. A pilot survey of graduates of pharmacy programs at the Universities of Ghana, Lagos and Western Cape was successfully conducted to test the potential of mobile phones for the collection of labor market results data (Yeld 2018). Strengthening Quality Assurance Looking ahead, MoEYS should continue its efforts to consolidate its QA system and could be guided by the following seven principles proposed by the Council of Higher Education Accreditation (CHEA) International Quality Group (CHEA International Quality Council 2015): 1. Quality and higher education providers. Assuring and achieving quality in higher education is the primary responsibility of higher education providers and their staff. 100 2. Quality and students. The education provided to students must always be of high quality whatever the learning outcomes pursued. 3. Quality and society. The quality of higher education provision is judged by how well it meets the needs of the society, engenders public confidence, and sustains public trust. 4. Quality and government. Governments have a role in encouraging and supporting quality higher education. 5. Quality and accountability. It is the responsibility of higher education providers and QA and accreditation bodies to sustain a strong commitment to accountability and provide regular evidence of quality. 6. Quality and the role of QA and accreditation bodies. QA and accreditation bodies, working with higher education providers and their leadership, staff, and students, are responsible for the implementation of processes, tools, benchmarks, and measures of learning outcomes that help create a shared understanding of quality. 7. Quality and change. Quality higher education needs to be flexible, creative, and innovative, developing and evolving to meet students’ needs, to justify the confidence of society and to maintain diversity. The Cambodian authorities are fully aligned with these principles, especially the first one about the importance of combining efforts at the national and institutional levels. Figure 5.5 illustrates this complementarity, which can operate successfully only if the relationship between the State and HEIs is based on trust and transparency. Figure 5.5 - Features of an aligned QA system Source: Elaborated by Jamil Salmi. One of the priorities for NAC will be to build the professional capacity and provide the resources to undertake all the tasks involved in QA compliance and enhancement in an efficient and effective manner. In parallel, the Cambodian government should consolidate existing QA mechanisms and align their delivery capacity with the rhythm of creation of new institutions and programs. 101 It will also be important to adopt flexible approaches to take new developments in QA into consideration. In particular, the accreditation and evaluation criteria and process need to incorporate the following four aspects: (a) emergence of hybrid delivery modes, (b) rise of microcredentials and stackable degrees, (c), growing importance of the diversity/equity/inclusion agenda, and (d) societal impact of higher education (Jackson-Hammond and Salmi 2023). In the first instance, NAC must make allowance for the multiplication of mixed delivery modes (hybrid, HI flex, blended, and so on) as a result of the COVID pandemic. Second, NAC should find agile ways to work closely with professional associations and private sector employers to align standards, principles for practice, and assessment mechanisms to facilitate the integration of micro qualifications into degree structures and qualifications frameworks. Third, the QA framework should adopt diversity, equity, and inclusion criteria as an integral part of the evaluation process, following the example of the US Council of Higher Education (CHEA), which accredits all major accreditation agencies in the USA. Finally, NAC may want to consider putting more emphasis on measures of societal impact as an integral part of the performance of HEIS that are evaluated as part of the accreditation process. MoEYS and NAC may also consider the option of delegating the accreditation responsibility for specific programs to independent professional associations and organizations, following the model in place in Mexico and the USA. In this approach, the main role of the national QA agency would be to accredit the professional accreditation bodies, following the example of CHEA in the USA and the Council for Accreditation in Higher Education (Consejo para la Acreditación de la Educación Superior, COPAES) in Mexico, whose main function is to accredit the accrediting agencies. In addition to strengthening the official QA mechanisms, the Cambodian government should also consider offering incentives for the establishment and/or consolidation of internal QA units in all HEIs, which are essential for the development of a genuine and effective QA culture. An appropriate internal QA system includes the following aspects: • Information provided to students on the institution’s study programs (for example, number of students and staff involved in a program, staff to student ratio, intended learning outcomes, qualifications to be granted, teaching/learning/assessment methods, external learning opportunities such as internships, employment prospects, and accessibility and support for students with disabilities). • A good management information system that collects information about student profile (for example, age, gender, and educational and socioeconomic background) and tracer studies. • Evaluation procedures to cover, at the minimum, the quality of teaching and learning, including the learning resources (for example, libraries, computing facilities, laboratories, and workshops) and the student support services. • Structures to support such procedures, including a senior academic in charge of oversight (for example, academic deputy vice chancellor) who chairs a university committee, a centralized QA unit and QA officers in faculties, plus a unit responsible for supporting academic staff development (teaching and learning services). • Processes to ensure wide ownership and engagement in QA processes through formal participation in advisory bodies of academic and administrative staff, university and faculty 102 leadership, students, external stakeholders, and alumni. This should include formal and informal communication about the results of the internal QA processes so that everyone understands their value. Bringing together diverse, sometimes conflicting, interests requires cooperative and participative approaches that serve as a basis for effective negotiation processes at all institutional levels. Likewise, internal QA benefits from being based on a broad consensus that secures the acceptance of decisions and promotes their implementation. • Processes to ensure links with strategic management and planning through the use of key performance indicators (KPIs) and to ensure that the university and faculty leadership are informed regularly of the results of the evaluations and required to provide a response. • A systematic process for designing new study programs and improving the established ones, often with the help of external stakeholders to ensure relevance. As much as possible, such procedures should include the development of learning outcomes and their assessment. • Transparency is indispensable at all levels. The design of internal QA structures and processes must be clear to all stakeholders involved. The respective roles of all units and actors should be well defined and evident. A culture of transparency implies that processes at all stages follow an adequate level of openness. Institutional Autonomy The worldwide tendency to grant more autonomy to tertiary education institutions reflects the observation that they can perform more effectively when they enjoy the flexibility needed for innovative behaviors and swift transformation in a rapidly changing landscape. Institutional autonomy is a key element in the successful transformation of public tertiary education institutions (OECD, 2008). Tertiary education institutions must therefore be in a position to exercise meaningful control over the principal factors affecting the quality and costs of their programs. Autonomous institutions are more responsive to incentives for quality improvement, resource diversification, and efficient use of available resources. The basic principle behind institutional autonomy is that institutions operate better if they are in control of their own destiny. They have an incentive to change if they can directly benefit from their actions; they can be entrepreneurial and reap the rewards. Or they can be timid and see their competitor institutions overtake them. If a group of institutions in a university system is given autonomy to respond to national policy goals as they think fit, there is a reasonable chance that they will choose different ways of reaching the same goal and that some will be more innovative than others. Had they been centrally directed, this variety would have been unlikely (Fielden 2008). Organizational Autonomy Organizational autonomy includes, among its several dimensions, the right and freedom to organize the university and adapt its structure as needed to achieve high levels of performance. Organizational autonomy covers three aspects: (a) the role of the Board of Directors, (b) the mode of appointment of the university rector and the principal academic leaders, and (c) the organizational structure of HEIs. (a) Empowered Boards of Directors 103 This is an area where Cambodia has made a lot of progress. To consolidate progress in this area, MoEYS should make sure that the University Boards have clear decision-making responsibilities and accountabilities, including being responsible for appointing the university leader, endorsing the strategic plan, and approving the budget. Regarding the size of the board, it would be advisable to move toward the upper limit stipulated by the Cambodian law (11 members) rather than having boards that are too small, with only 5 members. Strengthened and empowered boards should also have the authority to appoint their head. Box 5.1 describes good practices for monitoring the effectiveness of Boards. Box 5.1 - Effectiveness and performance review of university boards Governing bodies should regularly monitor their own effectiveness and the performance of their institution against its planned strategies and operational targets and their primary accountabilities. Governing bodies should further review their effectiveness regularly. Not less than every five years they should undertake a formal and rigorous evaluation of their own effectiveness, and that of the committees, and ensure that a parallel review is undertaken of other internal boards and committees. The governing body shall revise its structure or processes accordingly. In reviewing its performance, the governing body shall reflect on the performance of the institution as a whole in meeting long-term strategic objectives and short-term KPIs. Any such review of performance should consider the views of the academic board, and should be reported upon appropriately within the institution and outside. Where possible, the governing body should benchmark institutional performance against the performance of other institutions (at home and abroad). In considering their own effectiveness, governing bodies may wish to engage persons independent to the institution to assist in the process. The results of effectiveness reviews, as well as of the institution’s annual performance against appropriate indicators of performance, should be published widely, including on the Internet and in its annual report. Source: Good Practice Guide for Governing Bodies of Indian Technical Institutions. World Bank- NPIU/Ministry of HR Development and State Governments of India, 2012. 67 (b) Professional selection of university leaders In recent years, a growing number of countries have transferred the responsibility to select university leaders to the university council. In this new approach, the Board conducts a competitive search to appoint, on purely professional considerations, the most suitable candidate from a pool of candidates from within and outside the institution, without any political interference (Box 5.2). 67 http://teqipgoodgovernance.in/TEQIP%20GOOD%20PRACTICE%20GUIDE%20FOR%20GOVERNING%20BO DIES_DEC%202012.pdf 104 Box 5.2 - Appointment of the new rector at the University of Helsinki The University of Helsinki's 13-strong board has reappointed its current Rector, Thomas Wilhelmsson, for another five-year period from January 2010. He is the university's first rector to be appointed under the new system in Finland. As a result of the reforms, the most extensive since the 1970s, major changes to governance include a smaller board with a higher proportion of external members, and rectors appointed by that board. Wilhelmsson was previously elected by his peers and colleagues in May 2008, in line with the age-old practice in much of Europe for selecting university leaders. His term as Helsinki's final elected rector was truncated to about 18 months because of the timing of the new Act of Parliament to regulate universities, passed in July 2009. The re-confirmed rector heads a leading multi-disciplinary research university, one of Scandinavia's largest. Helsinki has about 35,000 degree students and about 8,000 staff. It is by far Finland's best-performing university in major international university rankings. Finland's university reform will see rectors being able to exert more power than in the past, and they will have more financial responsibility. However, the incumbent is responsible to the board and must maintain the board's confidence. The rector will no longer chair the board. Five applicants responded to press advertisements toward the end of August 2009. They were identified in the media and on university websites. Applicants included Wilhelmsson, the university's dean of agriculture, professors from two other Finnish universities and a board member of Aalto University, Finland's newly merged university. Source: Dobson 2009. In recent years, some countries—Australia, Indonesia, New Zealand, Saudi Arabia, Korea, and the United Kingdom for example—have even moved to opening the position of leader of public universities to distinguished academics from other countries, instead of limiting the eligibility of candidates to academics of the recruiting university, as still happens in most countries in the world. In Portugal, for instance, the universities that have volunteered for a special autonomous status in 2007 have since then conducted an international search to recruit their rector. 105 Box 5.3 - Advertisement in the Economist for the International Recruitment of the Rector of a Public University in Portugal 106 (c) Organizational flexibility The leaders of autonomous institutions should have the freedom to reform the statutes of the university and introduce changes in its structure. This would include the flexibility to eliminate existing departments or faculties, create new ones, or merge existing structures. Part of the comprehensive reform introduced in Denmark in 2003 consisted in encouraging universities and research universities to initiate mergers. As a result of these mergers, several universities also engaged in significant restructurings internally. For example, the country’s number two university, Aarhus University, cut down the number of faculties from 9 to 4 and the number of academic departments from 55 to 26 in an attempt to increase multi-disciplinarity and achieve efficiencies in resource utilization through a new matrix structure. Box 5.4 documents the recent experience of two German universities, which modified their internal structure to achieve a better fit with their strategic orientation. Box 5.4 - Internal restructuring at two German universities The Technical University (TU) Dresden recently undertook a comprehensive internal restructuring of academic units to realize synergies in teaching, research, administration and infrastructure. As part of a broader development concept for the TU Dresden, 14 faculties have been gradually transformed into 5 schools as part of a strategic development process that started in 2012. The objectives behind this transformation are to use synergies, increase interdisciplinarity, provide units with greater autonomy, and enhance their strategic and operational scope. A particular feature of this undertaking is that the restructuring covers administrative functions more broadly. The new schools not only carry out those administrative tasks that were formerly performed by the faculties, but also receive additional responsibilities transferred from the central level administration. At the Osnabrück University of Applied Sciences (UAS), the internal restructuring of academic units has been used as a means to strengthen the role of units and at the same time promote their integration into and alignment with the university’s strategic plan. In addition to merging eight departments into four faculties, the leadership team assigned the deans of the newly established faculties to vice president positions, with responsibilities for certain transversal portfolios, for example, teaching, research, and open access. For the promotion of strategic objectives related to the portfolios, central units acting under the vice presidents have been established as well. This approach pursued two objectives: the first was to establish bigger units that would achieve economies of scale, strengthen the position of the deans, and promote their professionalization; the second objective was to give the deans direct ownership of the institutional strategy by integrating them into the institutional leadership. In this manner, the leadership team has created a stronger management board and better aligned strategies among the various units. Source: World Bank 2016. While the Board is the highest governance body, a second important governance structure is the academic council, which is the main policy-making and advisory body on all academic matters linked to a university’s teaching, learning, and research activities. It has the main responsibility for guaranteeing academic standards in admissions, teaching, assessment, and research. It is also responsible for ensuring academic freedom and integrity. It works in partnership with the university president and is accountable to the University Board. Academic councils are usually composed primarily of academics but also include student representatives, thus providing an important platform for student participation in decision-making on academic matters. The 107 governance model of the academic council is one of consultation, collegiality, and broad-based representation. Human resources management Staffing status The Cambodian government can consider two options to introduce performance elements in the personnel status of academics and researchers, which would help the universities establish themselves as dynamic institutions of teaching, research, and technology transfer. The first one would be to maintain the civil service status of academic staff but allow universities to establish benefits and rewards to recognize performance levels and contributions of individual staff. The second one would be to eliminate the civil service status of academic staff and make each university the employer of its academic and administrative staff. • Public universities in several Western European countries have brought in additional benefits to reward outstanding academic performance. In France and Germany, for example, universities benefiting from the excellence initiatives initiated special incentives to support postdoctoral researchers, create tenure tracks for talented young researchers, and offer salary supplements for senior professors. The University of Montpellier set up attractive postdoc programs, tenure tracks, and high-profile positions, combining higher incomes and dedicated research support. Heidelberg University, for instance, developed a new HR policy whereby progression is not linked directly to seniority anymore but associated with a performance-based system of bonuses that recognizes good research and teaching and successful participation in administrative tasks. • The second approach consists in removing the academic and administrative staff from the civil service status and transforming them into employees of their university, as happened in Finland for example. This means that the top public universities in Cambodia could develop and post their own criteria for recruitment and establish their own salary scale and package of benefits. Performance evaluation of academics The whole purpose of reforming the personnel status of academic staff is to put in place a transparent system that can effectively recognize and reward performance. This hinges on the availability of a solid performance evaluation mechanism. Over the past decades, many universities all over the world have adopted sophisticated metrics to measure and assess the performance of their academics, especially in research. Table 5.6 presents the most common indicators that can be used for that purpose. 108 Table 5.6 - Measures of academic performance Indicator What is Measured Comments Risk of subjectivity on behalf of Student course evaluation Quality of teaching and learning students Relevant for quality Classroom observations Quality of teaching enhancement purposes Number and amount of external research Success in competing for Does not measure quality and project external research funds impact of research Number of international research Participation in international Does not measure quality and collaborations research teams impact of research Quantitative research production No information on quality and Number of publications (Web of Science, Scopus, impact of publications Google Scholar) Number and percentage of articles in top- Good benchmarking measure by Quality of research ranked journals discipline Citations Impact of research Not easy to use in all disciplines More selective and discipline- H-index Impact of research specific Number of keynote speeches in academic Difficult to compare across Recognition in research field conferences disciplines Difficult to compare across Scientific prizes and rewards Recognition in research field disciplines Quality and impact of best Peer-assessed by committee of Research portfolio research products local/international experts Number of knowledge transfer contracts Does not measure actual impact Knowledge transfer and with external bodies (firms, public of knowledge transfer / commercialization entities, NGOs) commercialization Commercialization of research-generated Knowledge transfer and Measure of transfer of research intellectual property (number of patents, commercialization results licenses and startups) Source: Elaborated by Jamil Salmi. To encourage Cambodian universities to move toward a robust and transparent evaluation and rewards system, MoEYS could set up annual prizes to recognize the highest-performing academics along some of the dimensions outlined in Table 5.6. At the institutional level, it would be desirable that each university set up a matrix of relevant performance indicators and possible rewards (salary increase, bonus, confirmation of tenure, promotion) that would become part and parcel of the faculties and institutes’ evaluation system. Introducing the new performance evaluation system would go hand in hand with the modernization of the personnel status of academic staff. Financial autonomy HEIs must have financial autonomy, including the ability to set the level of tuition fees, establish eligibility criteria for financial assistance to needy students, and reallocate resources internally according to self-determined criteria. Financial autonomy also means the ability to keep a surplus at the end of the fiscal year, the ability to borrow money, and the ability to own buildings. In that way institutions can strengthen weak academic units, cross-subsidize programs, and fund new initiatives quickly and flexibly in response to evolving needs and priorities. 109 Most OECD countries transfer their budgetary funding in the form of a block grant. Following this example, Latvia and Lithuania have recently moved from a line-item allocation to a block grant. A growing number of countries allow their public universities to borrow from the financial markets. In Finland and France, the universities can become the owners of the buildings they occupy (Eastermann, Nokkala, and Steinel 2011). Academic autonomy Finally, academic autonomy involves the ability of each HEI to make key decisions regarding the type of students it admits and the programs it offers, besides the capacity to enjoy full academic freedom. Academic autonomy comprises the following aspects: (a) setting the institution’s own admission requirements, (b) determining the size of the student body, (c) establishing new programs and courses and terminating old ones, (d) designing the course content of degree programs, (e) choosing the language of instruction, and (f) selecting the quality assurance providers and mechanisms. For example, universities can introduce new undergraduate level programs without prior accreditation in Austria, Ireland, Luxembourg, Norway, Sweden, Switzerland, and the United Kingdom. Accountability Increased institutional autonomy would need to be accompanied by a well-defined accountability framework for all the public institutions. International experience indicates that good accountability practices involve at least two types of yearly reports at the very minimum: (a) an independent financial audit report according to private practice law and international accounting standards and (b) an annual performance report showing progress against each university’s own strategic objectives and yearly plan, which can be presented to Parliament every year, as happens in the Canadian province of Quebec. Table 5.7 presents the range of accountability instruments that MoEYS and the Cambodian HEIs could consider in relation to key policy objectives. 110 Table 5.7 - Principal instruments of accountability Effective Quality Dimensions Innovation Equity Academic Fiscal use of and Instruments integrity integrity resources relevance University-based instruments Strategic plan X X X Key performance indicators / X X X X scorecards Budget X Financial audit X X Student satisfaction surveys X X X Graduate employment surveys X Employers and alumni surveys X X Assessment of learning X X outcomes / added value Annual Report (to Parliament X X X X and public) Government-level instruments Licensing X X Accreditation/ academic audit/ X X X X evaluation Funding formula X X X X Performance contracts X X X X Scholarships/ student loans/ X X X vouchers Student engagement surveys X X X Labor market observatory X Assessment of learning X X outcomes Rankings/ benchmarking X X Source: Elaborated by Jamil Salmi. Complementing the development of NAC and the establishment of a Labor Market Observatory, as suggested earlier, another important instrument of accountability would be to introduce student engagement surveys on a regular basis. Following the example of the United States, where the first large-scale national survey of student engagement (NSSE) took place in 2000, a number of countries have developed and implemented their own version of a survey aimed at ascertaining how students assess the quality of teaching and learning in their institutions. Today, student engagement surveys are carried out regularly in Australia, Canada, Germany, Ireland, the 111 Netherlands, and the United Kingdom. Pilot surveys have also been undertaken in recent years in countries as diverse as China, South Africa, and Korea. Continuing a movement that started in the 1960s with student evaluations of their teachers, student engagement surveys include not only subjective indicators, such as the level of satisfaction of students, but also attempt to measure more objective aspects related to the degree of active engagement of students in interactive and collaborative learning activities. In countries where surveys of student engagement are conducted regularly, high school graduates tend to be better equipped to choose which college or university they would like to attend (Ramsden and Callender 2014). Student engagement surveys face two challenges (Klemencic and Chirikov 2014). First, some observers have questioned their validity and reliability with respect to the ability of students to make informed judgments when asked to report learning gains, and the selection of the key factors that are supposed to determine student learning. Second, not all stakeholders are ready to live with the kind of transparency that these surveys imply. For instance, many US universities, including top-tier universities, have not been willing to release their NSSE results publicly. This limits the usefulness of these surveys for the universities’ main stakeholders, such as employers, parents, and prospective students. 5.3.2 Financing Elaborating a sustainable funding strategy for the Cambodian tertiary education system would involve careful consideration of the following two elements: • Resource mobilization options: How can public and private funding sources be mobilized in the most effective manner? • Resource allocation approaches: What are the adequate mechanisms to distribute public resources in a manner that encourages innovation and rewards good performance? Resource Mobilization at the National Level To identify opportunities for resource mobilization, Table 5.8 presents the various options available for the provision and financing of tertiary education in Cambodia. Those indicated in bold are currently in place. The other options could be encouraged to generate additional resources that would complement public resources. 112 Table 5.8 - Financing and provision of higher education Private Provision Public Provision Tuition Fees Commercial Student Loans Donations Private Private Universities Commercialization of Goods and Funding Services Research Grants PPPs Scholarships Student Loans Public Universities Public Vouchers (budget, scholarships and Funding Budget Contribution research) Research Grants Source: Elaborated by Jamil Salmi. At the national level, the diagnosis presented earlier in this chapter has clearly shown that the lack of public resources is a serious constraint limiting the development of the Cambodian tertiary education system and, as a result, the entire economy. The current level of public funding on higher education is extremely low by any standard. To successfully meet its economic growth and diversification agenda, Cambodia needs to invest more on tertiary education to produce a greater quantity and quality of skills and conduct the research needed to promote innovation and higher productivity in all economic sectors. Notwithstanding the budgetary constraints faced by the government, the country should try to progressively double the share of public funding invested in tertiary education, from the current 0.4 percent of GDP to at least 0.8 percent of GDP by 2030, excluding tuition fees paid out of pocket. To complement these efforts, the GOC could envisage to provide financial incentives to accredited private providers that could encourage further growth of the supply of HEIs. In the field of higher education, a growing number of countries have relied on PPPs to fund investments. This is an approach that the GOC could explore as a way of mobilizing additional resources from the private sector and complementing public investment in tertiary education. At the lower levels of education, PPPs sometimes include the provision of education services by private institutions that receive public subsidies. But in higher education the practice of PPPs is usually restricted to the financing of infrastructure projects (construction, management, maintenance). Most major PPP-supported infrastructure investments in higher education focus on student accommodations and cafeterias developed on a build-operate-transfer (BOT) basis. This has been the case in OECD countries, such as France, the United Kingdom, and the United States, and developing countries, such as Nigeria and South Africa. “PPPs are a useful way to increase the funding available for constructing or upgrading school buildings and often yield better value for money than traditional public sector investments. In such partnerships, the government usually contracts a private company to build and/or maintain school buildings on a long-term basis, typically 25 to 30 years. In this type of PPP, the private sector supplier assumes 113 responsibility for the risk inherent in the ownership and efficient operation of the project’s facilities.” (Patrinos, Barrera-Osorio, and Guáqueta 2009) Energy production for universities is another growing dimension of PPPs, as the following example from the United States reveals. Ohio State University's 50-year contract with an energy company and an investment firm to run its utility system is the most common example of that approach. The university received US$1.1 billion at the outset, which included funding for academics as well as energy-related research and facilities. In exchange, it pays its partner annually, including a US$45 million fee adjusted to inflation, as well as other fees for operations and capital investments in the project. That trade-off helps Ohio State fulfill its academic mission while making a massive investment toward its sustainability goals. "Instead of spending (our capital) on infrastructure, we do pay it back in terms of annual fees but not in terms of our upfront capital costs.” Rob Messinger, Ohio State University spokesperson (Busta 2019) An innovative area worth exploring in this respect would be to facilitate PPPs for building renewable energy facilities to generate solar and wind power on campus, as the University of Bordeaux in France has recently started. Some universities have also created innovation hubs and industrial parks that help strengthen ties between universities and the private sector while serving as incubators for innovations developed by students, faculty, and researchers. International experience shows that, to operate successfully as a mutually beneficiary collaboration, PPPs must be carefully formulated and implemented with the following aspects in mind: • Design in close collaboration with the future users to ensure full alignment between the needs of the users and the configuration of the infrastructure built. • Award PPP contracts on the basis of a transparent competitive process, especially in countries where corruption is rife. A survey of PPPs for university housing in Nigeria revealed that the lack of transparency in bidding procedures was one of the main obstacles mentioned by private operators. • Verify that the private agency involved in the partnership has sufficient capacity and a strong track record to undertake the task at hand. • Put in place, within the counterpart public agency (usually the Ministry of Education or Higher Education), adequate capacity to monitor implementation of the PPP by the private contractor through adequate performance measures that include both positive incentives and sanctions for poor performance (Patrinos, Barrera-Osorio, and Guáqueta 2009). A variation of PPP can be found in cases where a number of public and private universities form a partnership to share services. In Medellin (Colombia), for example, the ‘Group of 8’ has brought together for many years eight public and private institutions who share their educational and scientific facilities (libraries, science labs, workshops) and hire services together (security, maintenance, and so on). Another form of collaboration can be found in South Asia, for example, Bangladesh, India, Nepal, and Sri Lanka, where private colleges operate under the umbrella of a public university responsible for offering them quality assurance and examination services. Similar arrangements exist in 114 countries as diverse as China, the Czech Republic, Germany, India, and Lithuania (Bjarnason et al. 2009). There are few examples of private universities that were created as the result of a partnership between the State and the private sector and/or individual donors, but where they exist, they represent a new trend of innovative funding. Some of the best-known cases can be found in Malaysia, where three public corporations sponsored the establishment of a private university each. The country’s oil company, Petronas, launched Universiti Teknologi Petronas (UTP) in 1997; the Infrastructure University Kuala Lumpur (IUK) was established in 1998 by the Public Works Department; and Multimedia University (MMU) was set up in 1996 at the initiative of Telekom Malaysia. In each case, the public sponsor financed all the initial investment costs and the first three years of operating expenditures. Afterwards the new universities had to function as independent private entities, without further public support except for student aid in the form of scholarships or loans. Morocco is another country worth mentioning in that respect. Al Akhawayne University, the first US style institution in North Africa, was initially funded by an investment grant from the Kings of Morocco and Saudi Arabia in 1995 but has operated since then as a private university that is fully accredited by the New England Association of Schools and Colleges (NEASC). More recently, in 2015, the Moroccan Phosphates Company (OCP), the country’s foremost public company, established Mohammed VI Polytechnic University as a private university dedicated to applied science (Box 5.5). Box 5.5 - An innovative new polytechnic University in Morocco Located in Benguerir, near Marrakech, in the heart of the new Mohammed VI Green City, Mohammed VI Polytechnic University (UMP6) has the ambition of becoming a premier university at the national, continental, and international level. It is oriented toward applied research and innovation with a focus not only on Morocco but on the entire African continent. More than just a traditional academic institution, UM6P has been designed as a platform for experimentation. Teaching in both French and English, the new university is committed to an innovative pedagogical approach which puts learning by experimentation and practice at the heart of its training and research programs, aiming to leverage the curiosity and creativity of students, professors, and partners. Owing to its Living Labs, Digital and Peer- to-Peer learning methods, UM6P wants to support its young students on their path to becoming pioneers in solving the major challenges of our time, transforming obstacles into opportunities. Students are the main players in an academic experience creating shared value at the service of the entire ecosystem. The main programs offered by UM6P are agricultural and environmental sciences; biological sciences; green technologies; science, technology and innovation; collective intelligence; computer science; architecture, planning and design; and business administration. Source: https://www.um6p.ma/en China also has an interesting experience of joint venture between the government and a private foundation that fits this pattern. Shantou University is a public university in the Guangdong province operating with funding from the State. But it was established through a donation by a Hong Kong philanthropist, Li Ka Shing, who was born in Shantou and has continued to provide 115 generous funding over the years since the University was created. Under his influence, Shantou University developed many innovative education practices (Bjarnason et al. 2009). Table 5.9 summarizes the various forms of higher education PPPs found throughout the world. Table 5.9 - Public-private partnerships in higher education Phase in Life of University Type of Partnership Country Examples Public Investment / Private Bangladesh, Malaysia, Morocco, Operation Nigeria Private Investment / Public Creation of New University China Operation Split Investment / Public Zambia Operation Private Investment / Public United States Development of Existing Public Operation University Private Investment / Private France, United States Operation Shared Facilities and Services Colombia Regular Operation of Existing University Private Operation / Public Bangladesh, India, Nepal, Sri Supervision Lanka Source: Elaborated by Jamil Salmi. Resource Mobilization at the Institutional Level At the institutional level, Cambodian universities should not count only on the government’s financial support. To complement the operational and investment resources provided by the public purse, they should pursue an active income diversification strategy. This would require systematically looking at opportunities to tap the following principal funding modalities: • Tuition fees, • Contract research and consultations, • Sale of goods and services, and • Donations from fund-raising. Tuition fees. All public HEIs should have the authority to raise fees as they see fit to match their actual costs. At the same time, they must put in place a needs-blind admission policy that would guarantee access to all qualified students without any financial barrier. Part of the income generation strategy must, therefore, be oriented toward building a resource base to offer scholarships, grants, and loans to students from disadvantaged groups that could complement the financial help provided through government scholarships. Furthermore, universities have significant opportunities of raising revenues through continuing education and executive education programs. Lifelong education has become indispensable to offer avenues for training, retraining, upskilling, and career change facilitation. This could become a substantial revenue source for many HEIs. 116 Contract research and consultations. Within the universities working hard on building their research capacity, research teams should be encouraged to apply for research grants at the national, regional, and international level. Similarly, institutions aspiring to become research-intensive universities need to put in place proper incentives to induce their most active faculty members to seek consulting opportunities with local authorities, firms, and other organizations. The main purpose would not be to generate additional income per se but to apply the results of their research work to the design of innovative solutions to address national and local economic and social development needs. Sale of goods and services. Along the same lines, the leadership teams of the leading Cambodian universities ought to encourage their faculty members to seek concrete applications to their academic work that could result in the sale of goods or services produced by their university in their areas of academic focus and strength. Working on developing the sale of goods and services requires clear rules about the distribution of resources raised among the professors directly involved, their academic unit, and the universities’ central administration. A flexible, incentives-based approach would benefit both the universities and their academic staff. Donations. Fund-raising has not been a major priority at most Cambodian universities until now, on the assumption that resources are limited throughout the economy and that philanthropy is not part of the national culture. However, international experience shows that, even in resource- constrained countries, universities can find a few rich companies and individuals—locally and among members of the diaspora—who can be convinced to make financial contributions to universities if they are approached and presented with good reasons to support the universities. Sometimes, donations can come from the most unexpected quarters, as illustrated by the poignant story of Miss McCarty in the Southern state of Mississippi in the United States (Box 5.6). 117 Box 5.6 - The gift of a lifetime Multimillion-dollar gifts to colleges and universities have become almost routine. Bill and Camille Cosby gave US$20 million to Spelman College. Henry Rowan, who runs a manufacturing business, and his wife, Betty, gave US$100 million to Glassboro State College, which was then renamed Rowan College of New Jersey. The billionaire Walter Annenberg gave US$25 million to Harvard and US$120 million to the University of Pennsylvania. So why is it noteworthy when Oseola McCarty, an elderly black woman, donates US$150,000 to the University of Southern Mississippi (USM)? In the case of Ms. McCarty, it is the heart behind the gift, and the lifetime of effort that went into it. Oseola McCarty spent her entire life making other people look nice. Day after day, for most of her 87 years, she took in bundles of dirty clothes and made them clean and neat for parties she never attended, weddings to which she was never invited, graduations she never saw. She had quit school in the sixth grade to go to work, never married, never had children, and never learned to drive because there was never any place in particular she wanted to go. All she ever had was the work, which she saw as a blessing. Too many other black people in rural Mississippi did not have even that. She spent almost nothing, living in her old family home, cutting the toes out of shoes if they did not fit right and binding her ragged Bible with Scotch tape to keep Corinthians from falling out. Over the decades, her savings—mostly dollar bills and change—grew to more than US$150,000. After taking out what she needed to maintain her modest life style, she donated US$150,000 to the university for scholarships for black students. USM was first opened to blacks only 30 years ago. Business leaders in Hattiesburg, 110 miles northeast of New Orleans, decided to match her US$150,000, said Bill Pace, the executive director of the USM Foundation, which administers donations to the school. "I've been in the business 24 years now, in private fund raising," Mr. Pace said. "And this is the first time I've experienced anything like this from an individual who simply was not affluent, did not have the resources, and yet gave substantially. In fact, she gave almost everything she has. "No one approached her from the university; she approached us. She's seen the poverty, the young people who have struggled, who need an education. She is the most unselfish individual I have ever met." Ms. McCarty, whose one major regret in life was that she never finished school after having to drop out in the sixth grade, is living proof that dignity and reward in work is what you make of it. She exemplifies donors who struggled to achieve a measure of success in one generation and then reach forward to help the next generation. In June 1996, Harvard University awarded McCarty an honorary doctorate. In 1998, one year before her death, she was awarded an honorary degree from USM, the first such degree awarded by the university. She received scores of awards and other honors recognizing her unselfish spirit, and President Bill Clinton presented her with a Presidential Citizens Medal, the nation’s second highest civilian award. Source: http://www.nytimes.com/1995/08/13/us/all-she-has-150000-is-going-to-a- university.html; http://www.nytimes.com/1995/08/16/opinion/the-gift-of-a- lifetime.html Notwithstanding the lack of philanthropic tradition in Cambodia, the potential for fund raising through donations is great. Some universities have large numbers of graduates, some of whom have become successful professionals within Cambodia or as members of the diaspora overseas. The challenge is to turn them into philanthropists keen on making generous contributions to their 118 alma mater. This makes it necessary for each HEI to build a close relationship with their alumni and instill recognition and pride among them. Appointing a dynamic manager responsible for alumni relationships and development would be an important measure in this respect. Fund-raising is not an easy task. It takes time, resources, and imagination. But the positive experience of universities in other countries where there was no tradition of giving to educational institutions, but which were successful in increasing philanthropic donations clearly shows that significant levels of financial contributions can be captured over time from alumni, their families, and philanthropists more generally. Box 5.7 summarizes the growing experience with fund-raising in Europe, where most universities are relatively new to resource diversification, with the possible exception of British universities. Box 5.7 - Lessons from fund-raising efforts in Europe A 2011 European Commission survey on the fund-raising efforts of European universities found that success was related to three main factors. The first is what is defined as institutional privilege, that is, the wealth and reputation of the university, as well as pre-existing relationships with potential donors. The second is the level of commitment of senior academic leaders and other research staff in this regard. The third and final factor has to do with the environmental of a university, namely its location and the geo-political context in which it operates. With regard to the type of donors, the survey showed that European universities raise money mostly from private corporations, while contributions from alumni are much less frequent. Experience indicates that successful fund-raising involves the following dimensions: • Commitment of management and governing bodies; • Full participation of academic staff; • Financial and human investment in fund-raising activities; • Rewards for staff successful in attracting philanthropic donations; • Production and dissemination of materials for fund-raising purposes, such as a website, leaflets, and brochures; • Use of a database to maintain and update records on interactions with donors; and • Reporting on philanthropy in universities’ annual financial reports. Source: European Commission. 2011. Giving in Evidence: Fundraising from Philanthropy in European Universities. Brussels. http://ec.europa.eu/research/era/docs/en/fundraising-from-philanthropy.pdf. Independently from fund-raising considerations, creating strong alumni associations is an important task for any university. This requires building up a list of successful graduates who live in Cambodia or overseas and organizing events to celebrate their achievements as a first step toward bringing the alumni community closer to their alma mater. Experience shows that the development of alumni identity and links is not something that any HEI should start working on just a few months before graduation but rather on the first day when new students arrive at the university. Relying on a matching fund approach can be very effective in fund-raising. A matching fund is a financing mechanism that provides financing in an amount equivalent to the funds raised from other sources. In the case of higher education, it can work at the national or regional level when governments commit to giving a co-financing share to those universities which are successful in 119 their fund-raising efforts. The same type of incentive can be used by individual universities, as illustrated by the story of the Stanley Ho challenge (Box 5.8). Box 5.8 - The Stanley Ho challenge When the University of Hong Kong started its fund-raising efforts almost 20 years ago, the team responsible for seeking philanthropic donations realized that one of the University’s graduates had become a famous casino tycoon in Macao. Upon approaching him with a request to donate to his alma mater, they were met with an unusual proposal. Stanley Ho accepted to make a large financial contribution to the University of Hong Kong on the condition that his money would be matched, dollar by dollar, by other alumni of the University. The Stanley Ho challenge proved very effective in convincing other alumni to make their own donations. The beauty of such a matching scheme was that it allowed for contributions of all sizes, small amounts from recent graduates who were beginning in their professional career, and larger amounts from well-established graduates who had left the University many years earlier and were settled in their profession. The alumni challenge campaign brought much more than was had been initially hoped for. This experience inspired Hong Kong’s University Grants Committee to adopt a similar mechanism to encourage the territory’s public universities to engage in fund-raising. Starting in 2003, the Council offered the equivalent of US$125 million to all public universities each year for matching private donations. The approach was so successful that, in turn, the British Government adopted a similar approach in the late 2000s. The matching fund has brought about a visible change in the philanthropy culture in Hong Kong. Most of the universities have seen increasing trends in donations. This has caused professors to look beyond government funding as funding sources to plan their academic undertakings. Source: Bjanerson, 2009, and interview with the first leader of the University of Hong Kong’s fund-raising efforts Annex 3 summarizes the income diversification sources that universities and colleges rely on worldwide, as a framework that the Cambodian universities can use for identifying possible funding sources and shaping its efforts to raise additional resources from those sources that make the most sense in the national context. Allocation of Public Subsidies to Higher Education Institutions Based on the lessons arising from the evolution of funding mechanisms in OECD countries in the past decade, the allocation of public funds for tertiary education in Cambodia would be well served to reflect the following eight guiding principles that reflect good international practices: (a) closer alignment with national priorities, (b) explicit link to performance, (c) equity among all population groups, (d) consistency and compatibility among the various financing instruments, (e) objectivity and transparency in the allocation process and criteria, (f) stability over time, (g) allocation as a block grant, and (h) institutional autonomy and accountability (Salmi 2017). • Link to national priorities. It is important to achieve full consistency between the national policy goals set by the government to achieve the vision for the future of tertiary education in Cambodia and the funding allocation instruments put in place to attain financial sustainability. Funding without a national strategic orientation serves no useful purpose. 120 Higher education development vision and plan without appropriate financial resources and incentives are unlikely to succeed. • Performance orientation. The level of funding that the GOC allocates to HEIs should reflect their actual performance. International experience reveals that tying the distribution of funds to institutions or students to performance measures can make a real difference in the ability of higher systems to achieve key policy goals. The main dimensions of performance should be defined by indicators reflecting their contribution to access and equity, quality and relevance, research production, and efficiency in the use of public resources. • Equity. The distribution of public resources should reflect the principle of equal opportunities for all population groups in Cambodia: income groups, females and males, minorities, and youths with special needs. This implies, in particular, that funding should respect the principle of universalism and provide all Cambodian citizens with the same opportunities when it comes to access to public funding. • Multiplicity of instruments. No funding mechanism can satisfy all the policy objectives sought by any country at the same time. It is therefore essential that Cambodia rely on a combination of instruments that are complementary, consistent, and mutually reinforcing. • Objectivity and transparency. The rules and criteria for the allocation of public funds to the tertiary education sector should be objectively defined and fully transparent. The results of each round of funding allocation should be publicly available at all times. • Stability over time. Multi-year funding allows HEIs to plan their reform programs and investment over the medium to longer term in accordance with their strategic plan. University leaders must have a long-term perspective to design and implement the development strategy of their institution, whether it comes to investing in new infrastructure (facilities and labs) or recruiting academic staff. Thus, it is important for the government to guarantee a reasonable degree of funding stability from one year to the other. This is better achieved with a multi-year budgeting process, as is the practice in Denmark, Hong Kong, or in the University of California system, for example. • Block grant. Rather than organizing the budget into rigidly defined line items, it is good practice to allocate and transfer the funding going to HEIs as a lumpsum without any strict predetermination of the use of resources by category of expenses. Table 5.10 assesses to what extent the Cambodian funding framework is aligned with these principles. It shows that the present funding framework has few dimensions of alignment. Much improvement is needed to transform the funding allocation model to make it more performance oriented, offer better guarantees of stability over time, and offer a greater diversity of instruments to meet the variety of needs of institutions that have different missions (research, general education, skills formation, and so on). 121 Table 5.10 - Alignment of the Cambodian funding framework with international good practices Cambodia’s Guiding Principles Comments Funding Model Alignment with national priorities + Weak relationship No transparent / objective funding formula and Performance orientation − no performance criteria considered Equity considerations ++ Availability of scholarships for needy students Main funding source is the direct budgetary Multiplicity of instruments + contribution, supplemented by HIEP funds Objectivity and transparency − Limited No guarantee of stability and no multi-annual Stability over time + budget No flexibility to reallocate across expenditure Block grant allocation + categories Institutional autonomy and + Insufficient accountability Source: Elaborated by authors Notes: “–” means no alignment; “+” represents weak alignment; “++” means average/reasonable alignment; “+++” is for full alignment With these guiding principles in mind, the GOC could introduce a combination of performance- based budget allocation mechanisms that would provide financial incentives for improved institutional results and better alignment with national policy goals (OECD 2008; Salmi and Hauptman 2006). The Ministry of Finance and the Ministry of Education, working together, may consider the following three types of innovative allocation mechanisms, separately or combined, to achieve this purpose: • Funding formulas, • Performance contracts, and • Competitive grants. Funding Formulas One of the most transparent and objective manners of distributing funds for recurrent expenditures is to use a mathematical formula linking the amount of resources allocated to indicators of institutional performance such as the number of graduates, the employment rate of graduates and/or the research output. Examples of countries that have built performance into their funding formulas include the following: • Denmark, which has a ‘taximeter model’ in which 30–50 percent of recurrent funds are paid in relation to the number of students who successfully pass exams every academic year; • The Netherlands, where half of recurrent funding is based on the number of degrees awarded as an incentive to improve internal efficiency; 122 • Australia, where funding for doctoral student places is based on a formula comprising graduates (40 percent), research outputs (10 percent), and research income, including competitive winnings (50 percent). A funding formula that guarantees the core funding of each institution would have two advantages. First it would give HEIs a degree of relative stability, which would facilitate medium- term planning. Second it would offer strong incentives for improved performance over the years. Figure 5.6 shows which indicators are most commonly used in European countries that rely on a funding formula. Figure 5.6 - Indicators used in funding formulas in Europe Source: Eastermann, Bennetot Pruvot, and Claeys-Kulik 2013. Performance Contracts Performance contracts are non-binding regulatory agreements, negotiated between governments and HEIs, defining a set of mutual obligations. In return for the participating universities’ commitment to meeting the performance targets established in the agreement, the government provides additional funding. The agreements may be with several or all institutions in a given higher education system, or with a single institution. All or a portion of the funding may be 123 conditional upon the participating institutions meeting the requirements in the contracts. The agreements can be prospectively funded or reviewed and acted upon retrospectively. Examples of countries or sub-national jurisdictions with performance contracts include the following: • Chile introduced ‘performance agreements’ on a pilot basis in the late 2000s, whereby four public universities volunteered to receive additional resources to implement a carefully negotiated institutional improvement plan with clear progress and outcome indicators. After a positive evaluation, the scheme has since been extended to a large number of public and private universities. • Costa Rica has issued performance contracts to promote the transformation of four of its five public universities. This is happening in the context of a large loan financed by the World Bank. It is the first time that the government is attempting to influence the behavior and performance of the public universities using financial incentives. The universities have traditionally operated in a totally independent way, receiving their budget directly from the Ministry of Finance as a set percentage of the national budget, as established by the Constitution of the country. • Denmark uses ‘development contracts’ setting long-term improvement goals for the institutions. • Finland has contracts that set out general goals for the entire tertiary education system as well as specific goals for each institution. • France has allocated about one-third of the recurrent budget through four-year performance contracts since 1989. Payments are made when the contracts are signed, with a post-evaluation to assess the degree and effectiveness of implementation. • Several US states, for example Louisiana, Maryland, Michigan, North Dakota, South Carolina, Tennessee, and Virginia, use some kinds of post-secondary education ‘compacts’. The main advantage of performance contracts is to encourage institutions interested in improving their results on a voluntary basis without central edicts that are not likely to be followed. From the government’s viewpoint, it helps align the behavior of HEIs with national policy objectives. From the institutional perspective, it brings additional resources to implement the strategic plan, provided the institution has a transformative vision and the actual will to implement it. The success of performance contracts usually depends on two factors. First, it is good practice to involve, in the negotiation of the performance agreement, someone who can be seen as neutral enough to facilitate a reasonable dialogue between the government and the university leadership. In Chile, former university vice chancellors widely respected as ‘wise persons’ played a decisive role. Second, the Ministry of Education would need to devote sufficient expertise and time to monitor the implementation of the performance contracts. Competitive Funds Competitive funds have proven their strength and value as an effective and flexible resource allocation mechanism for transformative investment purposes. With this mechanism, institutions are generally invited to formulate project proposals that are reviewed and selected by committees 124 of peers based on transparent procedures and criteria. Positive experience in countries as diverse as Chile, China, Egypt, Indonesia, and Tunisia has shown the ability of competitive funds to help improve quality and relevance, promote pedagogical innovations, and foster better management, objectives that are difficult to achieve through funding formulas. Cambodia has relied on this mechanism to allocate resources in the context of the HIEP. The actual eligibility criteria vary from country to country and depend on the specific policy changes sought. In Argentina and Indonesia, for instance, proposals could be submitted by entire universities or by individual faculties or departments. In Chile, both public and private institutions were allowed to compete. In Egypt, a fund was set up in the 1990s specifically to stimulate reforms in engineering education. One of competitive funds’ principal benefits is the practice of transparency and fair play through the establishment of clear criteria and procedures and the creation of an independent monitoring committee. An additional benefit of competitive funding mechanisms is that they encourage universities to undertake strategic planning activities, which help them formulate proposals based on a solid identification of needs and a rigorous action plan. Allocation of Resources within Higher Education Institutions In many universities throughout the world, faculty members, administrative staff, and students view the internal budget process as a black box without sufficient information about the rules and mechanisms underlying allocation decisions. The following approaches represent the most commonly used allocation models: • Incremental Budgeting: Budget decisions largely reflect funding levels of the previous year on the assumption that the institution’s fundamental goals will not change significantly from one year to the next. • Formula Budgeting: Reliance on a strong central budget model in which funding is computed by applying selected measures of unit costs in relation to selected output measures. • Zero-Based Budgeting: The budget for each unit is reset at the beginning of each budget planning period. Every campus unit must re-request funding levels and all spending must be re-justified. • Performance Budgeting: Centrally made decisions are based on policies that relate inputs such as enrollment or research output to determine funding levels. Units must meet certain expectations to receive funding. • Incentive-Based Budgeting: This model delegates significant operational authority to campus units, which allows them to prioritize their academic missions. A significant portion of the unit’s revenues, including student tuition, is retained. Each unit is assigned a portion of public support. Units are responsible for their own expenses, as well as for a portion of expenses incurred by the university’s general operations. This model allows support units to charge for their services, and some academic units can tax others for the service instruction that they provide. Table 5.11 summarizes the pros and cons of each approach. 125 Table 5. 11 - Advantages and disadvantages of internal allocation methods Allocation Method Advantages Limitations Easiest to implement, provides No incentives to innovate, be more Incremental Budgeting stability, and allows units to plan. efficient. Depoliticizes the allocation process Ineffective in incorporating quality as Formula Budgeting by using quantitatively algorithms resource allocation criterion. for distributing resources. Assumes the absence of continuing or Focuses on outcomes and results. previous commitments. Time- Zero-Based Budgeting Perceived as a rational, objective consuming, potentially volatile, and approach. subject to capricious decisions. Difficult to define performance Focuses on accomplishments and criteria and adequate measures. Risk Performance Budgeting results rather than on inputs and of measuring only what is most easily processes. measured. A more rational approach to budgeting. Operating units have Academic programs may become greater responsibility for budget budget-driven at the risk of sacrificing development and control. Academic academic performance, strategic priorities are made closer to the priorities, and innovation. Services Incentive-Based Budgeting instructional level. Tuition resources that duplicate those offered elsewhere are moved in relation to the may be expanded to generate revenue. institution’s enrollment patterns. Elaborating equitable cost algorithms There is an incentive to enhance for taxing units can be problematic. revenues and manage costs. Source: Adapted from Hanover Research (2013). In recent years, however, a growing number of institutions have explored alternative approaches to formulate and implement their operating budgets in a rational way while, at the same time, providing more transparency and accountability (Hyatt 2020). The principal motivation behind the shift has been to make strategic allocation decisions in times of diminished public resources and to offer effective incentives for generating new or additional sources of revenue. One of the pioneers in this respect has been the University of Missouri, which articulated a set of four guiding principles to organize its new budgetary process. 68 • Respect: The resource allocation model will be transparent and include components that are clearly articulated to all internal stakeholders. It will identify available resources and how they are allocated, thereby enabling all decision-makers to understand and communicate the details of their units’ revenues, costs, spending, and overall budget. It will ensure that decision-makers are accountable to all relevant stakeholders with regard to the values of the institution. Finally, it will recognize, support, and reflect the individual and intellectual diversity of the campus and the communities that it serves, encompassing the experiences and goals of students, faculty, and staff. • Responsibility: The budget must be strategically aligned with the university’s core mission and goals of teaching, research, service, and economic development, as articulated in the university’s strategic plan. This requires investment in campus-wide initiatives. The 68 Report of the University of Missouri Resource Allocation Committee, May 2019. https://provost.missouri.edu/our-new-resource-allocation-model-incentivizing-collaboration-part-i/ 126 resource allocation model will promote good financial stewardship and revenue generation that is consistent with the university’s values. Cooperation and collaboration across units are vital. • Discovery: The resource allocation model will enable the campus to make long-term plans and to seize emerging opportunities, while creating incentives to help all units identify with and work for the success of the university as a whole. The model will recognize and quantify the limited funds available for discretionary investments and ensure that the mechanisms for allocating them are consistent with other guiding principles. The incentives will also foster innovation and encourage units to be entrepreneurial. • Excellence will be achieved through data-driven decisions and the sustained commitment of campus leadership. Programs and initiatives will be supported by clearly articulating mission-driven impacts, outcomes, costs, and revenues, and reliance on data analytics. Indicators to measure their impact in support of the university’s mission will be agreed upon and regularly monitored. Because the new resource allocation model will involve a substantial change, it will need to be implemented over time. The ongoing commitment of campus leadership will be crucial for its successful implementation. As universities seek to balance various needs and priorities to ensure that the institution can fulfill its mission effectively, they must keep the following considerations in mind: • Strategic Planning: Align resource allocation with the priorities established in the strategic plan that outlines the university's mission, goals, and priorities. The strategic plan should be informed by a benchmarking exercise comparing resource allocation practices with peer institutions to identify good practices and areas for improvement. • Performance Metrics: Define and use performance metrics and KPIs to evaluate the effectiveness and efficiency of various programs and units. Allocate resources to programs that demonstrate positive outcomes. • Sustainability: Assess the long-term sustainability of resource allocation decisions and avoid short-term fixes that may lead to financial instability in the future. • Risk Management: Evaluate potential risks and uncertainties when allocating resources. Maintain contingency funds to address unforeseen challenges and emergencies. • Flexibility: Maintain flexibility in resource allocation to adapt to changing circumstances that may necessitate adjustments in allocation strategies. • Equity and Inclusion: Ensure that resource allocation is equitable and supports diversity and inclusion. Address disparities in funding, faculty recruitment, and student support services to promote a more inclusive learning environment. • Communication and Transparency: Maintain open and transparent communication with all stakeholders about the resource allocation process. This helps in building trust and understanding the decisions made. 127 5.4 Summary of Findings and Recommendations Main Findings • A large number of government ministries and agencies are involved in supervising and providing higher education in Cambodia, which makes it difficult to move the system forward in a coordinated way, strengthen and coordinate quality assurance, collect and use data to make informed policy decisions, and avoid costly duplications. • Cambodia relies on a centralized supervision and management approach. The lack of autonomy restricts the ability of public HEIs to manage their financial and human resources in a flexible and efficient way, and use incentives to stimulate the performance of their academics. • The General Directorate for Higher Education has led concerted efforts to transform the tertiary education system by formulating the first long-term plan for higher education in 2016 and starting its implementation with financial support from two successive World Bank projects. • The establishment of a comprehensive QA framework with NAC as main actor and the definition of clear mechanisms to implement it is an important achievement. • Estimates indicate that the GOC dedicates less than 0.4 percent of GDP to the subsector, resulting in modest per-student expenditure levels, and certainly the lowest level among ASEAN countries. • Disparities in funding levels among public HEIs are due to the fact that budgets are allocated on the basis of history, without any transparent mechanism linked to objective criteria such as student and teacher numbers or some measure of performance. Main Recommendations • To improve the governance of tertiary education at the national level, the GOC should clearly designate MoEYS as the primary department responsible for coordinating the work of all the ministries and public bodies involved in steering, managing, and monitoring HEIs operating in Cambodia. • As part of its coordination and policy stewardship role, MoEYS would oversee the elaboration of the vision for the future of higher education, seek ways of harmonizing resource levels across the subsectors, and have the power to grant autonomy to the public HEIs with sufficient institutional capacity. • Institutional autonomy is a key element in the successful transformation of public tertiary education institutions, which must be in a position to exercise meaningful control over the factors affecting the quality and costs of their programs. • Increased institutional autonomy goes hand in hand with a well-defined accountability framework for all the public institutions. • Elaborating a sustainable funding strategy for the Cambodian tertiary education system would involve policies to mobilize additional public and private funding sources in an effective manner and design funding allocation mechanisms that assign public resources to encourage innovation and reward good performance. 128 • Besides stepping up public investment in tertiary education, the GOC could consider PPPs as a way of mobilizing additional resources from the private sector to complement public investment in tertiary education. • At the institutional level, universities should pursue an active income diversification strategy to tap the following funding modalities: (i) tuition fees, (ii) contract research and consultations, (iii) sale of goods and services, and (iv) donations from fund-raising. 129 6. 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Annexes Annex 1: Top Ranked Universities in Southeast Asia Rank in Name of University Country World Rank Asia National University of Singapore Singapore 1 3 Nanyang Technological University, Singapore Singapore 2 5 Universiti Brunei Darussalam Brunei Darussalam 3 60 Universiti Teknologi Petronas Malaysia 4 63 University of Malaya Malaysia 5 66 Ateneo de Manila University Philippines 6 84 Ton Duc Thang University Viet Nam 7 86 Universiti Utara Malaysia Malaysia 8 99 Duy Tan University Viet Nam 9 106 Universiti Kebangsaan Malaysia Malaysia 10 149 Universiti Putra Malaysia Malaysia 11 154 Universiti Teknologi Malaysia Malaysia 12 161 Universiti Pendidikan Sultan Idris Malaysia 13 168 Universiti Sains Malaysia Malaysia 14 170 Chulalongkorn University Thailand 15 201–250 Thailand 16 King Mongkut’s University of Technology Thonburi 201–250 Mahidol University Thailand 17 201–250 Universiti Malaysia Pahang Malaysia 18 201–250 University of the Philippines Philippines 19 201–250 Sunway University Malaysia 20 201–250 Universiti Tenaga Nasional (UNITEN) Malaysia 21 201–250 University of Indonesia Indonesia 22 251–300 136 Rank in Name of University Country World Rank Asia Mae Fah Luang University Thailand 23 251–300 Universiti Tunku Abdul Rahman (UTAR) Malaysia 24 301–350 Bandung Institute of Technology (ITB) Indonesia 25 351–400 Chiang Mai University Thailand 26 351–400 Universiti Malaysia Perlis Malaysia 27 351–400 Vietnam National University, Hanoi Viet Nam 28 351–400 Universitas Airlangga Indonesia 29 401–500 BINUS University Indonesia 30 401–500 Universitas Gadjah Mada Indonesia 31 401–500 IPB University Indonesia 32 401–500 Khon Kaen University Thailand 33 401–500 Thailand 34 King Mongkut’s Institute of Technology Ladkrabang 401–500 Multimedia University Malaysia 35 401–500 Universitas Sebelas Maret Indonesia 36 401–500 State University of Malang Indonesia 37 401–500 Suranaree University of Technology Thailand 38 401–500 Universiti Malaysia Terengganu (UMT) Malaysia 39 401–500 Universiti Tun Hussein Onn Malaysia (UTHM) Malaysia 40 401–500 De La Salle University Philippines 41 501–600 Diponegoro University Indonesia 42 501–600 Hanoi University of Science and Technology Viet Nam 43 501–600 Hasanuddin University Indonesia 44 501–600 King Mongkut's University of Technology North Thailand 45 Bangkok 501–600 Universiti Kuala Lumpur Malaysia 46 501–600 Universiti Malaysia Kelantan Malaysia 47 501–600 Universiti Malaysia Sarawak (UNIMAS) Malaysia 48 501–600 Universitas Padjadjaran Indonesia 49 501–600 Universitas Pendidikan Indonesia Indonesia 50 501–600 Prince of Songkla University Thailand 51 501–600 Silpakorn University Thailand 52 501–600 Universitas Sumatera Utara Indonesia 53 501–600 Universiti Teknikal Malaysia Melaka Malaysia 54 501–600 137 Rank in Name of University Country World Rank Asia Institut Teknologi Sepuluh Nopember Indonesia 55 501–600 Telkom University Indonesia 56 501–600 Thammasat University Thailand 57 501–600 Universiti Malaysia Sabah (UMS) Malaysia 58 501–600 Vietnam National University (Ho Chi Minh City) Viet Nam 59 501–600 University of Brawijaya Indonesia 60 601+ Burapha University Thailand 61 601+ Hue University Viet Nam 62 601+ Islamic University of Indonesia Indonesia 63 601+ Kasetsart University Thailand 64 601+ Mahasarakham University Thailand 65 601+ Mapúa University Philippines 66 601+ Naresuan University Thailand 67 601+ Srinakharinwirot University Thailand 68 601+ Universiti Teknologi MARA Malaysia 69 601+ Walailak University Thailand 70 601+ Universitas Andalas Indonesia 71 601+ Source: https://www.timeshighereducation.com/world-university-rankings/2023/regional- ranking#!/length/25/sort_by/rank/sort_order/asc/cols/stats 138 Annex 2: Green Occupations Based on the Narrow Definition of Greenness Environmental protection professionals Civil engineers Plastic products machine operators Refuse sorters Farming, forestry, and fisheries Motor vehicle mechanics and advisers repairers Meteorologists Floor layers and tile setters Engineering professionals not classified elsewhere Garbage and recycling collectors Civil engineering technicians Product and garment designers Incinerator and water treatment plant Forestry and related workers Aquaculture workers operators Firefighters Protective services workers not Agricultural and forestry classified elsewhere production managers Bicycle and related repairers Power production plant operators Source: Based on Safir and Mckenna (2023). 139 Annex 3: Universities and Programs with Green Courses University Faculty Example Programs with Green Courses/Elements Faculty of Hydrology and Water • Bachelor of Water Resources Engineering and Resources Engineering Rural Infrastructure 69 • Bachelor of Water and Environmental Engineering 70 • Master of Water and Environmental Engineering 71 Faculty of Geo-resources and • Bachelor of Geotechnical Engineering Institute of Geotechnical Engineering • Bachelor of Geo-resources and Petroleum Technology of Faculty of Chemical and Food • Bachelor of Food Science and Technology 72 Cambodia (ITC) Processing • Master of Engineering in Agro-industrial Engineering 73 Faculty of Civil Engineering • Bachelor of Civil Engineering 74 • Bachelor of Transport and Infrastructure Engineering 75 • Bachelor of Architectural Engineering 76 Faculty of Science • Bachelor of Science in Biology • Bachelor of Science in Chemistry 77 • Bachelor of Science in Environmental Science 78 • Bachelor of Physics 79 Faculty of Engineering • Bachelor of Bioengineering / Biotechnology 80 • Bachelor of Environmental Engineering 81 Royal University • Bachelor of Food Technology and Engineering 82 of Phnom Penh • Bachelor of Automation and Supply Chain (RUPP) Systems 83 Faculty of Development Studies • Bachelor of Community Development 84 • Bachelor of Economic Development 85 • Bachelor of Natural Resources Management and Development 86 • Bachelor of Sustainable Planning and Development 87 69 https://itc.edu.kh/department-of-water-resources-and-rural-infrastructure/ 70 https://itc.edu.kh/department-of-water-resources-and-rural-infrastructure/ 71 https://itc.edu.kh/master-and-phd-degree-hre/ 72 https://itcgca.wixsite.com/my-site-1/copy-of-academic-program 73 https://itcgca.wixsite.com/my-site-1/copy-of-managed-it-services 74 https://gci.itc.edu.kh/programs/7e82c0bc-4444-406e-ac75-c1c5ea20eb2f 75 https://itc.edu.kh/transport-and-infrastructure-engineering/ 76 https://itc.edu.kh/transport-and-infrastructure-engineering/ 77 http://www.rupp.edu.kh/fs/chemistry/?page=Curriculum 78 http://www.rupp.edu.kh/fs/environmental_science/?page=Curriculum 79 http://www.rupp.edu.kh/fs/physics/?page=Curriculum 80 http://www.fe.rupp.edu.kh/#/department/biod/undergraduate 81 http://www.fe.rupp.edu.kh/#/department/environmental-engineering/undergraduate 82 http://www.fe.rupp.edu.kh/#/department/foodtechnology-engineering/undergraduate 83 http://www.fe.rupp.edu.kh/#/department/ascsd/undergraduate 84 http://www.rupp.edu.kh/fds/dcd/ 85 http://www.rupp.edu.kh/fds/ded/ 86 http://www.rupp.edu.kh/fds/dnrmd/?page=Introduction 87 http://www.rupp.edu.kh/fds/dsupd/ 140 University Faculty Example Programs with Green Courses/Elements Faculty of Social Sciences and • Bachelor of International Business Management 88 Humanities • Bachelor of Tourism Management 89 Faculty of Agronomy • Bachelor of Agronomy and Soil Science • Bachelor of Agronomy and Plant Production Faculty of Fisheries • Bachelor of Aquatic Biology • Bachelor of Aquaculture Royal University Faculty of Agriculture and Rural • Bachelor of Agricultural Economics of Agriculture Development • Bachelor of Agri-business (RUA) • Bachelor of Rural Development Faculty of Land Management and • Bachelor of Land Management Land Administration • Bachelor of Land Policy and Administration Faculty of Forestry Science • Bachelor of Wildlife and Biodiversity • Bachelor of Forestry and Climate Change National Faculty of Agriculture and Food • Bachelor of Horticulture University of Processing • Bachelor of Food Processing Battambang Faculty of Science and • Bachelor of Civil Engineering (NUBB) Technology • Bachelor of Information Technology Faculty of Sociology and • Bachelor of Agriculture Economics Community Development • Bachelor of Public Administration and Governance • Bachelor of Community and Regional Development Svay Rieng Faculty of Agriculture • Bachelor of Science in Agronomy 90 University • Bachelor of Science in Rural Development 91 (SRU) • Bachelor of Science in Animal Science and Veterinary 92 Kirirom Institute Department of Tourism • Bachelor of Tourism Management 93 of Technology Management (KIT) Department of Architecture • Bachelor of Architecture Paragon Faculty of Engineering • Bachelor of Architecture 94 University (PIU) • Bachelor of Architectural Engineering 95 • Bachelor of Construction Management 96 • Bachelor of Industrial Engineering 97 Phnom Penh Faculty of Business and Tourism • Bachelor of Hotel and Tourism Management 98 International Faculty of Law and Economics • Bachelor of Public Administration 99 University (PPIU) University of Faculty of Agriculture and Rural • Bachelor of Natural Resources Management Management and Development 88 http://www.rupp.edu.kh/fssh/ibm/?page=Curriculum 89 http://www.rupp.edu.kh/fssh/tourism/?page=Curriculum 90 https://sru.edu.kh/academic/faculty/faculty-of-agriculture/departments/ 91 https://sru.edu.kh/academic/faculty/faculty-of-agriculture/departments/ 92 https://sru.edu.kh/academic/faculty/faculty-of-agriculture/departments/ 93 https://kit.edu.kh/digital-brochure 94 https://paragoniu.edu.kh/prospective-students/undergraduate/architecture/ 95 https://paragoniu.edu.kh/prospective-students/undergraduate/architectural-engineering/ 96 https://paragoniu.edu.kh/prospective-students/undergraduate/construction-management/ 97 https://paragoniu.edu.kh/prospective-students/undergraduate/industrial-engineering/ 98 https://www.ppiu.edu.kh/public/index/page/view/6237497762496 99 https://www.ppiu.edu.kh/public/index/page/view/6353006980320 141 University Faculty Example Programs with Green Courses/Elements Economy • Bachelor of Agronomy 100 (UME) • Bachelor of Rural Development 101 American • Bachelor of Global Affairs 102 University of • Bachelor of Law 103 Phnom Penh • Bachelor of Business 104 (AUPP) Sources: Rapid survey of websites of Cambodian universities, 2023, conducted for this study. 100 https://www.ume.edu.kh/Agronomy%20Skill%20.php 101 https://www.ume.edu.kh/Rural%20Development.php 102 https://www.aupp.edu.kh/bachelor-of-arts-in-global-affairs/ 103 https://www.aupp.edu.kh/bachelor-of-arts-in-law/ 104 https://www.aupp.edu.kh/bachelor-of-science-in-business-aupp-ua/ 142 Annex 4: Resource Diversification Matrix Source of income Category of income Students Industry Alumni / International Government and and services philanthropists cooperation families Budgetary contribution General budget X Dedicated taxes (lottery, liquor sales, tax on X contracts, export duties) X Payroll tax Fees for instructional activities Tuition fees Degree / non-degree programs X X On-campus / distance education programs X X Advance payments X Chargeback X Other fees (registration, labs, remote labs) X Affiliation fees (colleges) X Productive activities Sale of services Consulting X X X Research X X X X Laboratory tests X X Patent royalties, share of spin-off profits, X X monetized patent royalties deal Operation of service enterprises (television, X hotel, X retirement homes, malls, parking, driving X school, internet provider, gym) X X X Financial products (endowment funds, shares) X X X X Production of goods (agricultural and industrial) X X Themed merchandises and services (smart card) Rental of facilities (land, classrooms, dormitories, X X laboratories, ballrooms, drive-through, concert halls, mortuary space, movie shooting) Sale of assets (land, residential housing, art treasures) 143 Source of income Category of income Students Industry Alumni / International Government and and services philanthropists cooperation families Fund raising Direct donations Monetary grants (immediate, deferred) X X X Equipment X X Land and buildings X X Scholarships and student loans X X X X Endowed chairs, libraries, mascot X X Challenging / matching grants X X X Religious donations (“Zakat”) X X Indirect donations (credit card, percentage of gas X X X sales, X percentage of stock exchange trade, lectures by alumni) X Tied donations (access to patents, share of spin-off profits) Concessions, franchising, licensing, sponsorships, X X partnerships (products sold on campus, names, concerts, museum showings, athletic events) Lotteries and auctions (scholarships) Loans Bank loans X X X Bond issues X X X Source: Elaborated by Jamil Salmi. 144