Public and private financing of higher education

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News analysts often discuss the private and public finance sectors. Despite most individuals having a general idea of what the two terms mean, a much deeper understanding of what they entail and their differences is important. The public sector comprises of all the government owned organizations, all agencies and state offices. The private sector on the other hand refers to all the privately owned businesses, companies, partnerships and the profit and non-profit corporations. This article will discuss in depth the meaning and differences of both private and public finance.

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A new era for higher education in Brazil

Public and private financing of higher education

A new era for higher education in Brazil

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Private Financing Grows to Become Global Phenomenon in Funding Rising Costs of Higher Education

Public spending on education includes direct expenditure on educational institutions as well as educational-related public subsidies given to households and administered by educational institutions. This indicator is shown as a percentage of GDP, divided by primary, primary to post-secondary non-tertiary and tertiary levels. Public entities include ministries other than ministries of education, local and regional governments, and other public agencies.

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In most countries basic education is nowadays perceived not only as a right, but also as a duty — governments are typically expected to ensure access to basic education, while citizens are often required by law to attain education up to a certain basic level. Data from this early period shows that government funds to finance the expansion of education came from a number of different sources, but specifically taxes at the local level played a crucial role. The historical role of local funding for public schools is important to help us understand changes — or persistence— in regional inequalities. The second half of the 20th century marked the beginning of education expansion as a global phenomenon. Available data shows that by government spending on education as a share of national income in many developing countries was already close to the average observed in developed countries.

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