Financing universities: Why are students paying more?

Canada is an active competitor in the global economy, an arena in which our knowledge and skills are vital assets. At a time when goods, services and investment flow more freely into and out of the country, much of our international success comes from our knowledge-intensive industries. As a result, the need for skilled workers has intensified and higher education has become an even more important determinant of Canada's overall competitiveness and economic well-being than in the past. Canada's postsecondary education system encompasses universities, colleges and trade/vocational institutions. In 1995 there were 1.67 million part-time and full-time postsecondary students, 52% of whom attended university. Universities, who finances are the focus of this article, therefore serve as major providers of the higher education that is critical to our prosperity.