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Delegation theories and a neoliberal paradox

In: Handbook on Higher Education Management and Governance

Author

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  • Alberto Amaral

Abstract

The emergence of neoliberal policies came with the increasing use of markets as instruments of public policy by governments, which made it necessary to award a substantial degree of autonomy to universities so they could compete in a market. In this model governments delegate to universities the role of providing higher education to citizens. However, this creates a problem for governments, as they need to ensure that universities will behave in compliance with governmental objectives and policies. In the principal-agent theory a principal (government or one of its agencies) delegates to an agent (university) the provision of education services. This delegation of power to autonomous institutions creates coordination difficulties for the government which uses a number of tools (e.g., quality assurance mechanisms or perform based contracts) to ensure that agents will comply with the objectives and policies defined by the principal.

Suggested Citation

  • Alberto Amaral, 2023. "Delegation theories and a neoliberal paradox," Chapters, in: Alberto Amaral & António Magalhães (ed.), Handbook on Higher Education Management and Governance, chapter 15, pages 215-231, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:20796_15
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    File URL: https://www.elgaronline.com/doi/10.4337/9781800888074.00028
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