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Compelling evidence for investment in universities
25 April 2009
A powerful work was completed for ‘Universities Australia’ this week. At a time when we are in the throes of an economic recession, it has even more significance.
The independent report examines the ways in which the implementation of reforms to the sector, as recommended in the Bradley Report, will impact on Australian recovery and growth.
In particular, it examines issues like future skills, productivity, exports and GDP.
The conclusions are clear in that there will be huge benefits from investing in universities at this time.
If the Bradley recommendations are pursued, it is stated that real GDP would increase by $1.6 billion annually initially, accelerating to $38 billion more annually in the 2020’s and $96 billion more in the 2030’s.
This is a return on investment of 14-15 percent, over double the benchmark set for good investment of long-term bonds of 6-7 percent.
The CEO of Universities Australia has stated that the funding of higher education reforms is how we can pay for the pensions, health care, environmental improvements and the defence budget of the future, with these sums of financial return on investments.
The independent consultants themselves, in one of the most thorough reports of its kind ever conducted on the value of university education, show that any net upfront burden is modest and the downstream payoff is unusually large. A sector that represents 1.6 percent of the economy can grow living standards by over 5 percent - no mean feat.
Here is demonstrably clear modelling that evidences the value of a university education, and the compelling case for investment at this time.
Professor Paul Thomas AM is Vice-Chancellor and President at the University of the Sunshine Coast.