The motives for privatization in Iranian higher education and the incentive s for private higher education institutions in the world

This article represents a comparative analysis of privatization in higher education, explains the fundamental differences between the pattern of privatization of higher education in Ira:11 and in other countries, and emphasizes on giving the state institutions of higher education increased incentives to cover a part of their expenditure from the sale of their services. An analysis of higher education from comparative perspective shows that in Iran private institutions account for 40 percent of enrollment in higher education. Furthermore, the private higher education enrollment ratio continues to rank among the highest in the world. The author points out that although in Japan the proportion of private institutions is in the upper part of the rank order, the share of its educational exrenditures constitutes only a half of the overall educational budget. The expansion of higher education is considered to be more appropriate for an enlarging Iranian student population. The rationale for state support of higher education which rests mainly on the national, economic, and social needs requires a broad increase in higher education budget. This is especially important in the case of severe funding problems because the financial pressures on higher education will become even more serious. The author emphasizes on new policy directions for state universities and for state universities to be viewed somewhat differently by asking students to make some contributions towards the cost of their own public higher education.