**Graph 2. Public subsidies for tertiary education in Chile, 1990-2003**

<!-- Start of picture text --> 160<br>AFD<br>140<br>120<br>Student Financial Assistance<br>100<br>80<br>60<br>MECESUP<br>40<br>AFI<br>20<br>FDI<br>0<br>1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003<br>Source: MINEDUC (2004)<br>One of the most contentious issues regarding tertiary education in Chile is the direct<br>financial support given to the 16 public and 9 private universities that existed before tertiary<br>education was reformed in the early 1980s. AFD comprises about 50 percent of total public<br>spending on tertiary education. Yet, Chile’s 38 non-traditional private universities, 51<br>professional institutes and 115 technical training centers have no access to AFD.<br>95 percent of AFD is allocated to universities based on historical precedence and a process<br>of political negotiation without systematic reference to obtained results. This allocation<br>process maintains a highly uneven distribution of AFD funds between traditional<br>institutions. As revealed in Graph 3, per student AFD funds vary from more than 1,400<br>USD per student for the University of Talca to about 150 USD per student for the Catholic<br>Graph 3. Direct public support per student and distribution of results-based funding, 2003<br>1,500 16%<br>1,400<br>1,300 14%<br>1,200<br>1,100 12%<br>1,000<br>900 10%<br>800<br>8%<br>700<br>600 6%<br>500<br>400 5% results-based funding 4%<br>300<br>200 2%<br>100<br>0 0%<br>AFD (95%) per student Performance-based allocations relative to AFD<br>Million $US (constant 2003)<br>% of AFD<br>$US per student<br>U. de Talca U. de Chile P.U. Católica de Chile U. Catolica del Norte U. Austral U. de Concepción U Téc. Federico Sta. Maria U. de Tarapacá U. Metropolitana U. Católica de Valparaíso U. de Antofagasta U. de Magallanes U. de Santiago U. de Atacama U. de Los Lagos U. de Valparaíso U. de la Serena U. de La Frontera U. de Bio Bio U. Arturo Prat U. Tecnológica Metropolitana U. Católica de Maule U. C. de la Sant Concepción U. de Playa Ancha U. Católica de Temuco<br><!-- End of picture text -->

# **Direct public support**

One of the most contentious issues regarding tertiary education in Chile is the direct financial support given to the 16 public and 9 private universities that existed before tertiary education was reformed in the early 1980s. AFD comprises about 50 percent of total public spending on tertiary education. Yet, Chile’s 38 non-traditional private universities, 51 professional institutes and 115 technical training centers have no access to AFD.

95 percent of AFD is allocated to universities based on historical precedence and a process of political negotiation without systematic reference to obtained results. This allocation process maintains a highly uneven distribution of AFD funds between traditional institutions. As revealed in Graph 3, per student AFD funds vary from more than 1,400 USD per student for the University of Talca to about 150 USD per student for the Catholic University of Temuco.

**Graph 3. Direct public support per student and distribution of results-based funding, 2003**

_Source: Universidad de la Frontera (2004)_

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