Higher education in Asian countries and the role of international ...

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primary education (Banya & Elu, 2001). As a result, until early 1990s the Bank did not give due
attention towards higher education sub-sector: the funding was too little, too slow, and too
narrow. But later on with the advancement of theories in economics of education, the rate of
return was studied profoundly. The research on the rate of return conducted during the 1960s and
1970s showed that primary education had higher social and private return as compared to tertiary
education (Psacharopoulos, 1994). These scientific evidences and other factors provided
sufficient ground for the support of primary education consequently states and international
organizations reduced their attention and resources for higher education. Perhaps in the wake of
these studies, the World Bank criticized the investment in higher education and emphasized on
redirection of resources to primary education during 1970s and early 1980s (Banya & Elu,
2001). Consequently, during and after the structural adjustment period, financial and other
resources for higher education were reduced in many countries. A review of 31 poverty
reduction strategy papers indicated that only three governments considered higher education as a
way of reducing poverty, and only two of them increased their funding for higher education
(Varghese N. , 2010).
Summary
International Bank for Reconstruction and Development (IBRD) and the International
Development Association (IDA) are collectively called the World Bank. These IGOs are two of
the five institutions of the World Bank Group. The Bank was founded on 27 December 1945
after the ratification of the Bretton Woods agreements. Earlier the Bank was consisted of IBRD
only and later on in 1960 IDA was created. The Bank has a presence in 187 countries. The
principal mission of this IGO was to help Europe and Japan in the reconstruction and
development process. Later on, in 1952, the Bank started supporting other regions also through
financial assistance in the form of lending. But loans were given to only those projects, which
had economic productivity in order to ensure repayment of loan and to secure its investment. In
1963 the Bank changed its lending policy and started investing in social services and other
sectors as well, including education sector. With the passage of time, the Bank reframed its aims;
now it works to reduce poverty in middle-income and creditworthy poorer countries by
promoting sustainable development. The Bank is providing lending and technical assistance to
its member economies in a variety of activities that ranges from policy guidelines to