The report may be good news for those who believe that the only chance to better the country’s isolated educational system is sharp reform, including private financing and tuition fees. The shortage of specialists on the labor market has been a consistent complaint from Czech companies trying to meet the demand for skilled employees resulting from high foreign direct investment (FDI). Businesses have expressed frustration about the poor quality of training and graduates who aren’t prepared to enter the work force (see Q&A). These companies seem to have found their advocate in Matějů.

It may, however, be an uphill battle. “Sooner or later, such a system [of tuition fees covered by students] will be necessary. These are global trends we can’t stand against ... in the meantime we are able to survive without it,” said Václav Hampl, rector at Charles University.

Matějů will use the Nov. 24 OECD report to bolster his argument and influence those who resist radical reforms.

The need to compete

Among the recommendations that the OCED report makes is introducing stipends for students in need, creating tax incentives to encourage companies to invest more in education, and establishing a loan system that would provide the option to borrow funds to a broader range of students who will be expected to contribute to the costs of tertiary education.

Matějů said that rectors shouldn’t fear the risk of lower financing because even if a tuition fee is introduced, it doesn’t imply that the current university budgets will change.

According to Matějů, universities may gain more financial autonomy and could focus on research or better pay for instructors. However, those gains would mean that universities would also need to be competitive in order to attract students.

“Universities are afraid of competition and prefer to hold out their hand and wait for public money, instead of doing something to get it by themselves. It’s been easier this way,” he said.

Matějů rejected the idea that tuition fees may boost social inequalities. Instead, he said he believes that tuition fees are the only way that the Czech Republic can increase the number of students who pursue higher education.

The number of students in the Czech Republic is below the European average. “At the moment, the entry rate for Czech people into tertiary education is only 34 percent, while the OECD average is 54 percent,” Matějů said.

“It’s unrealistic to believe we can support this increase [in students] from the public budget,” Matějů said.

Another major proposal will increase the power of a university’s board of trustees, appointed nonacademic specialists who serve in an advisory capacity. Under the new law, trustees could elect rectors and would require annual progress reports, and allow boards to assess and control curricula to better prepare graduates for the “real world.”

Whether perceived as bad news or good news, reforming the laws on education can only be accomplished if the Czech Republic succeeds in building a reform-driven government, Matějů said. If the ministry gets the necessary support to promote sharp reforms, the new law could be in effect as early as 2008.