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“Issues in the financing of USP” (Australian IDP, 1993)


During the 1970s and 1980s, there was much concern expressed by several of the Member Countries of USP that the financing of USP was not on a fair basis. I was asked by Australian IDP (CEO Bob Teasdale at the time) to examine and explain how USP was funded, and make recommendations for improvements if necessary.

The consultancy report I did pointed out that USP was not a “shop” which sold items at fixed prices to whoever wanted to buy the degrees, diplomas or certificates.  Rather there were three different components to what was essentially a “sharing formula”:

(a) 60% of USP’s bill (called “General Grant”) was paid by the countries in proportion to the numbers of students (EFTS) they sent to USP

(b) 30% of USP’s bill (called “Special Grant”) was paid by countries in proportion to how much USP spent in those territories  (supposedly to counteract the economic advantage they received by having USP facilities on their territories

(c) 10% was paid out of the Donors’ aid to USP.

The USP External Funding Formula was found to be generally fair to the countries concerned, except that (a) there should be different weights for students who enrolled in more costly courses such as science and agriculture (b) private students should be included (c) there be a better way of estimating the ETSUs.

I had overlooked posting this earlier since I no longer have the soft copy. The report is also available in the USP Library. Read more:

Issues in the Financing of The University of the South Pacific 1993

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