College dropout rates in the Philippines almost doubled from 20 percent in 2019 to 41 percent in 2020, hinting at the effects of the COVID-19 pandemic on students' capacity to remain in school. Although recent country-wide data are scarce, this sharp increase is indicative of fundamental weaknesses that still exist today, a new paper by the Philippine Institute for Development Studies (PIDS) says.
The study urges the Commission on Higher Education (CHED) to implement innovative and transformative reforms to better address the sector’s needs.
The research highlights key areas that demand immediate attention, including addressing recruitment gaps, refurbishing quality assurance mechanisms, and the necessity of more robust partnerships. These shifts are imperative to enable CHED to reinforce its dual role as a regulator and a development stimulant in the industry. It also emphasizes the importance of learning from the countries around it in developing policies tailored to assist Filipino students appropriately.
Entitled "Strengthening CHED's Developmental and Regulatory Capacity", the PIDS study, written by PIDS Consultants Dr. Fernando Aldaba, Mr. Joselito Sescon, and Mr. Karl Eli Alconis presents a detailed examination of CHED's existing systems and calls on the agency to engage in more strategic and development-based practices.
"The existing Philippine higher education system is a mix of improvements and problems", the writers observed. System gaps and regional comparisons The report recognizes improvement, like the nation's gross tertiary enrollment rate of 34.89% the average for lower-middle-income nations but ongoing problems. Private school enrollment has plummeted, hitting a record low since 1945.
Government subsidies to public universities have grown, but quality gaps persist, especially between Metro Manila and other areas. Neighboring ASEAN nations, on the other hand, have made reforms that improve higher education systems. Singapore developed robust public-private partnerships, whereas Thailand enhanced quality assurance and vocational training to more closely align with labor market needs.
Likewise, Malaysia's SETARA rating system and Vietnam's institutional assessments foster international standards and transparency. Indonesia progressed decentralization to give universities more autonomy while still exercising oversight.
In contrast, the PIDS study relates that CHED's regulation-dominant approach inhibits its support for expansion. "CHED has traditionally given more emphasis to regulation than to development, resulting in inadequate assistance to higher education institutions in capacity building, research, and innovation," the researchers observed. Recurring issues are regional disparities, uneven quality of education, and low research and development investment, fields where neighboring countries are leading the pack.
CHED's capacity and reform recommendations
The research also identifies internal capacity problems within CHED itself. "The number of vacant posts in CHED is around 24% of its total authorized posts," the authors disclosed. Such staff vacancies have caused delay in decision-making and impeded monitoring of programs.
Moreover, inefficacies in the utilization of the Higher Education Development Fund (HEDF) have tainted its purpose, only using 65.2% of the budget for programs such as infrastructure and faculty improvement. Recommendation is that a strategic plan be established to ensure proper utilization of HEDF to emphasize long-term investment in capacity building, training of the faculty, and infrastructure development, particularly for underprivileged areas.
Among the suggested reforms are performance- and innovation-led incentives for top-performing institutions in teaching excellence and research. The high-performing schools might be given additional autonomy to lead innovations, but the underperforming institutions should be provided with targeted support. Strengthening industry connections to match the curriculum with industry requirements, establishing job placement systems, and establishing a strong labor market information system are also among the recommendations proposed by the study.
To further enhance its capability, CHED is urged to ramp up budgetary allocations to increase resources, undertake training for personnel, and implement digital tools for monitoring and evaluation. Local and international institution partnerships and periodic stakeholder consultations are also recommended to enhance knowledge sharing, apply best practices, and ensure responsive policies. With these reforms, Philippine higher education can transform into an actual launching pad for future-ready graduates.
