Brazil has put significant resourcesinto developing its higher education system over the pastthree decades. As a result, a system has evolved in whichsome institutions have achieved recognizable excellence inteaching and research, while, more generally, the majorityof institutions have struggled to provide relevant, qualityeducation at reasonable cost. As a whole, the system has anumber of large challenges to overcome. Brazil has a lowenrolment rate in higher education. Rigidities in fundingand regulation create strong disincentives forcost-efficiency or quality. The quality of instruction andthe relevance of the curriculum are below desirablestandards. The Government of Brazil has a three-prongedstrategy for improving higher education: a) to change thelegal framework for the sector; b) to change to aperformance-based funding system that supports (Ministerioda Educacao e do Esporto's (MEC) policy goals ofimproved access, quality, and efficiency; and c) to improvecapacity for evaluating quality of instruction andperformance of institutions. The challenge is to focusattention on those changes that will promote the greatestprogress in equitable access, quality, relevance, andefficiency. In the last section, the report recommends waysto improve access, quality, and efficiency.
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