A prominent academic has raised concerns about the funding model for tertiary education in Fiji, emphasizing the need for urgent reforms to enhance efficiency and accountability. Dr. Mahendra Reddy, a Senior Fellow at the Graduate School of Business at the University of the South Pacific, acknowledged that Fiji’s public investment in education is commendable, especially when compared to many small developing nations. However, he highlighted that how funds are allocated is just as critical as the amount of funding itself.
Dr. Reddy underscored the importance of education in Fiji’s socio-economic landscape, stating, “Education is not a luxury for Fiji — it is a necessity.” He noted that in a small island economy with limited natural resources, developing human capital is essential for improving productivity, promoting diversification, and enabling social mobility.
Despite the positive aspects of the current funding approach, which includes operational grants to educational institutions, capital grants to public universities, and tuition scholarships available for both public and private educational providers, Dr. Reddy warned that these incentives could lead to inefficiencies. He voiced concerns that without addressing these issues, Fiji risks mismanagement of public money, potentially resulting in underused universities and the accumulation of privately owned assets funded by public resources.
Dr. Reddy pointed out a significant inefficiency in the current system: when students enrolled in private institutions receive both government-funded tuition assistance and operational grants. This raises questions about what the operational grants actually support if the government is already subsidizing tuition.
He further explained that while this funding model may be justifiable for public universities, it does not necessarily apply to private institutions. The dual funding may inadvertently create profit margins for private providers, with public funds converting to private infrastructure, raising serious accountability concerns.
Another issue highlighted by Dr. Reddy is the prevalence of students enrolling in private programs offered by public universities, resulting in duplication of funding where the government pays for both public university capacity and private delivery. This misuse of resources leads to increased costs across the education system.
Despite these challenges, Dr. Reddy believes the conversation should focus on aligning funding mechanisms with public goals rather than debating public versus private education. He recognizes the vital role private providers play, especially at lower qualification levels, but insists on the importance of clear funding rules and accountability measures.
To maximize educational outcomes per dollar spent, Dr. Reddy advocates for a well-structured funding model that avoids duplication, protects public infrastructure, and ensures transparency. The call for reform presents an opportunity for Fiji to refine its tertiary education funding approach, ultimately benefiting students and the broader society.