Natalielg10

The funding of higher education is contingent on the internal resources and policies enacted within the country of study. The Organization for Economic Co-Operation and Development (OECD) uses knowledge gathered by the Higher Education Policy Team to compare the funding of higher education in the 38 countries that are affiliated with this international organization. In accordance to the Higher Education Resources Policy Survey conducted by OECD there are four main channels that contribute to higher education resource funding: Student Support, Institutional Funding, Resource Governance and Coordination, and Human Resources.

External funding is an alternative method for funding higher education that results from the globalization of higher education. Some countries are able to consistently secure external funding from other countries as a competitive for prestige of higher education systems. A case study in Israel shows exceptional achievement in securing grant funding from the European Research Council (ERC) achieved through a regulated funding system that rewards performance in order to attract external funding in the form of research grants. However, performance based funding policies are associated with the marketization of higher education which encourages higher education institutions to embrace neoliberal behaviors that are market-oriented.