New Zealand’s universities will need to demonstrate improvements in their completion rates, the earnings of their graduates and industry uptake of their research to mount compelling arguments for government funding, under arrangements outlined in a new education strategy.

Participation by “underserved groups”, increases in international education earnings and growth in cross-sector partnerships will also be “key success measures” for universities’ compliance with the country’s new (TES), announced on 2 December.

The strategy, in force until 2030, will drive the government’s budget priorities, influence policy and regulatory settings and guide “investment decisions” by the Tertiary Education Commission (TEC).

Its release marks a renewed emphasis on achievement and jobs – unlike the preceding strategy’s orientation around equity groups – together with a shift from processes to outcomes.

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“This strategy’s focus on economic growth is intentional and unapologetic,” the document says. “Our tertiary education system is performing well in many areas but needs to be more focussed on contributing to economic growth, productivity and innovation.”

The new strategy boasts five priority areas, like its predecessor, but the lead priorities – “achievement” and “economic impact and innovation” – are primarily about careers, skills and bankable research.

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The earlier strategy focused primarily on placing “learners at the centre” and providing “barrier free access”, free from “racism, discrimination and bullying” and with “great education…within reach for every learner”.

While the new strategy also lists “access and participation” as a priority, universities minister Shane Reti said it represented a “refocus on what matters most” for learners and the country.

“The previous government’s strategy lacked sufficient emphasis on employment outcomes, career development and the skills and research capabilities needed for a productive, future-focused economy,” Reti said in a . “This government is putting results at the centre.”

However, the document acknowledges the need to “strengthen” most of the metrics that will be used to gauge the results. For example, completion rates must be fortified with “distance travelled” measures that “better capture the progress individuals make relative to their starting points…especially those with lower prior achievement”.

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The new strategy exemplifies the sorts of processes in store for universities across the Tasman Sea, where adherence to mission-based compacts – oriented around national priorities – will govern the funding decisions of the forthcoming Australian Tertiary Education Commission.

While New Zealand’s strategy “does not override” tertiary institutions’ broader statutory missions, it will guide resource allocation. “All providers seeking TEC funding are expected to show how their plans, activities and investments will contribute to the government’s priorities,” the document says.

The TEC said guidance documents to be published in March would explain how the new strategy would govern funding decisions from 2027. “Providers…seeking 2027 funding will need to show how they will deliver these priorities. This includes demonstrating alignment with labour market needs, improving outcomes for disadvantaged students and trainees and strengthening research and industry partnerships.”

A source described tertiary education strategies as a “shuffling of buzzwords” that influenced the language used by universities but had little impact on their activities. “Everyone in the tertiary education sector anywhere in the world can write a funding application to meet a stated goal,” the source said.

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john.ross@timeshighereducation.com