Funding Tertiary Level Education: An Evaluation of the Economic Sustainability and Performance of the Dollar for Dollar (DfD) Programme in Trinidad & Tobago

• Author: Bhoendradatt Tewari/Roger Hosein
• Pages: 260-297

Chapter 10

Funding Tertiary Level Education:

An Evaluation of the Economic

Sustainability and Performance of the

Dollar for Dollar (DfD) Programme in

Trinidad & Tobago1

This chapter assesses whether the T&T economy is in a suitable

macroeconomic position to continue funding the Dollar for Dollar

programme and employs a sample survey to determine if the DfD

programme itself was instrumental in benefiting a wider cross section of

students from the lower socio-economic income groups. The paper

concludes that the T&T government in the context of a number of recent

changes in the pivotal hydrocarbon sector is well set to experience

sustained economic growth during the medium term period and thus

would be able to continue assisting tertiary level graduates financially.

The paper also finds that the DfD subsidy was utilized by higher income

groups to increase their consumption rather than for the investment

purpose for which it was designed. The study suggests that the DfD

programme be continued but that an appropriate means test be designed

to cater for a 100% tertiary level education subsidy for lower income

qualified students.

This article was first published in the Research and Working Paper

Series of the Faculty of Social Sciences, The University of the West

Indies, St. Augustine in 2004.

1 The authors would like to acknowledge the research assistance of Rishi Singh and

Gerard Boodram. The Dollar for Dollar programme was introduced in 2001 by the

Government of T&T to increase the tertiary level participation rate. Government agreed

to pay 50% of tuition if a student was registered at an accredited institution as a full-time

student, provided that the student paid the first 50%.

Funding Tertiary Education 261

10.1 INTRODUCTION

It is now an undisputed fact that the key contributors to sustainable

development are education, scientific research, innovation and

technological advancement.2 Given the present characteristics of the

local tertiary education sector, urgent and considerable attention to policy

development and implementation is needed, if Trinidad and Tobago is to

develop the human resource capacity to effectively respond to social and

economic development priorities.

One of the main objectives of developing countries, in this era should be

to facilitate the formation of innovation-driven industries, which are

intellectually spawned and which adhere to principles of sustainability.3

Trinidad and Tobago, (T&T) a small twin island independent nation,

must recognize the imperatives of changing its approach to intellectual

capacity formation. It must hasten the improvement of its human capital

base. In a recent study undertaken by the World Economic Forum,

Trinidad and Tobago was ranked 75th out of a possible eighty (80) for

tertiary level education penetration.

The democratization of tertiary education is a goal which needs to be

seen as a key element of any country achieving developed country status.

Therefore, marked improvements in the education system, to prepare

citizens for lifelong education and tertiary education as well as the

workplace is urgently needed. Government must provide the leadership

in this regard by establishing the required framework that will enable the

public and private sectors to play a meaningful role.

Increasing the access of tertiary level education to a wider segment of the

population is critical for the social and economic progress of any nation

and the overall development of its people. The sustained development of

any country heavily depends on the capacity of the country to raise the

educational standing of its entire people. For Trinidad and Tobago this

should become a prime objective that no group of its student body be

exempted from attaining tertiary level education because of the inability

to pay all or part of the required expenses. As it stands, however, with a

mere ten percent of the population participating in tertiary level

education from the age cohort 16-24 years, it would imply, without

doubt, that access to tertiary level education is an issue to be addressed in

T&T.

2Sustainable development refers planning today which does not compromise the

prospects of future generations.

3 Innovation refers to the introduction of new products or processes.

Trade, Investment & Development

262

In creating a society which is knowledge-based and in which science and

technology play important and central roles, it will be necessary to

design a targeted strategy founded upon human resource development.

But in the development of such an approach, it is necessary for both the

private and public sector to participate. As concerns public sector

participation in T&T, in September 2001, the government introduced the

Dollar for Dollar (DfD) Programme to facilitate an expansion of its

tertiary level enrolment to 20% by the year 2005. This paper assesses

whether the T&T economy is in a suitable macroeconomic position to

continue the DfD programme and employs a sample survey to determine

if the DfD programme itself was instrumental in benefiting a wider cross

section of students from the lower socio economic income groups and

whether the removal of the DfD programme would significantly affect

the enrolment of lower income students.

10.2 THE MECHANICS OF THE DOLLAR FOR

DOLLAR PROGRAMME IN THE EDUCATION

SECTOR OF T&T

The Dollar for Dollar (DfD) Programme pays one half of the tuition fees

of students enrolled in specific tertiary level institutions in T&T. The

programme was envisaged as a means for increasing the extent of tertiary

level participation and the overall intellectual capacity of the Trinidad

and Tobago public. It was designed in response to a CARICOM mandate

to increase the level of tertiary level enrolment to 15% by the year 2005.

The objectives of the (DfD) programme were clearly listed in T&T’s

Cabinet Minute No. 9754, and included:

xTo make tertiary education affordable to a wider income bracket of

students;

xTo reach a target of 20% tertiary level enrolment by 2005;

xTo build and strengthen the national tertiary education sector

xTo establish and strengthen a National Accreditation System, that

will ensure that citizens have access to the highest quality of tertiary

education at institutions in Trinidad and Tobago.

4 Cabinet Minute No. 975, July 25th 2001. Furthermore, Cabinet by Minutes Nos. 1562

and 1770 dated October 31st December 5th 2001 respectively detailed the staffing

proposals for the (DfD) Policy Administration Secretariat and the funding for the

establishment of the Secretariat.