D. Tuition fees were scrapped in the name of access for all. But ever-rising student numbers then met ever-shrinking budgets, so the reforms backfired. Today the number of college drop-outs is among the highest in the rich world, making tertiary education an elite activity: only 22% of young Germans obtain a degree, compared with 31% in Britain and 39% in America. German universities come low in world rankings, so good students often go abroad.
E. In the 1980s it was hoped that private universities might make a difference. Witten-Herdecke University, founded in 1980, was the first. Teaching at IUB, which will change its name to Jacobs University soon, began in 2001. Today, there are 69 private institutions of higher learning, up from 24 a decade ago. There is growing competition, particularly among business schools.
F. At the same time the states have been introducing private enterprise into higher education. In 2003 Lower Saxony turned five universities into foundations, with more autonomy. Others have won more control over their own budgets. Some states have also started to charge tuition fees. And in October a jury announced the winners of the first round of the excellence initiativea national competition among universities for extra cash.
G. Yet all this has led to only small improvements. Private universities educate only 3% of Germanys 2m-odd students, which may be why they find it hard to raise money. It also explains why many focus on lucrative subjects, such as the Bucerius Law School in Hamburg. Others have come to depend on public money. Only recently have rich individuals foundations made big investments, as at IUB or at the Hertie School of Governance in Berlin.
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