A prominent academic has raised critical concerns about the current funding model for tertiary education in Fiji, stating that while it demonstrates a commendable level of investment, it risks becoming inefficient and lacking in accountability without pressing reforms. Dr. Mahendra Reddy, a Senior Fellow at the Graduate School of Business at the University of the South Pacific, emphasized that education is essential for Fiji, especially in a small island economy where human capital is pivotal for productivity and social mobility.
Dr. Reddy pointed out that Fiji’s approach combines operational and capital grants along with tuition scholarships for both public and private educational institutions. However, he warned that this structure creates potential inefficiencies that could lead to poor value for money from public investment. He noted, “If these issues are not addressed promptly, Fiji risks spending large and growing sums of public money while its own universities remain underutilised.”
He raised a significant question regarding the effectiveness of operational grants when government funding already subsidizes students’ tuition. The concern extends to private institutions receiving both full tuition subsidies and operational grants, which Dr. Reddy argues may lead to unregulated financial surpluses, thus raising questions about the accountability and utility of public funds.
Moreover, Dr. Reddy pointed out a notable inefficiency in students enrolling in private institutions for programs already offered by public universities, which are not fully utilized. This dual funding leads to increased costs for the government and results in allocative inefficiency.
He emphasized that discussions surrounding education financing should not frame the issue as a public versus private debate but focus on aligning funding models with public objectives to ensure accountability and efficiency. Dr. Reddy called for stricter funding regulations and transparency in how grants are allocated and used.
A well-structured tertiary funding system, he argued, would prevent duplication of payments for the same outcomes, safeguard public infrastructure, and provide better educational value for every dollar spent. With proactive reforms, Fiji can enhance its educational landscape, fostering a more productive and skilled workforce that is essential for the nation’s growth and development.
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