Higher Education Financing: Challenges for Small Independent States in the Caribbean



Author Information

Zameer Mohammed, The University of Trinidad and Tobago, Trinidad and Tobago

Abstract

This paper examines the critical and persistent challenges confronting the financing of higher education (HE) systems within the Small Independent States (SIS) of the Caribbean. The Caribbean states face a unique nexus of structural, fiscal, and environmental vulnerabilities that compromise the long-term sustainability and equitable access of tertiary institutions, notably the University of Trinidad and Tobago (UTT), the University of the West Indies (UWI), and other national Caribbean colleges. The overarching challenges lie in the trilemma of small states: high operating costs due to limited economies of scale, inelastic public revenues, and disproportionate exposure to exogenous shocks, particularly escalating climate change-induced disasters. This financial volatility leads to HE systems being severely underfunded, characterized by reliance on diminishing government subventions, increasing tuition burdens on low-income populations, and underdeveloped private-sector investment. Furthermore, the limited administrative capacity of many SISs impedes their ability to navigate complex multilateral funding mechanisms and diversify revenue streams, thereby compounding their debt vulnerability. This paper argues that current financing models, often based solely on per capita Gross National Income (GNI), fail to account for the acute, multidimensional vulnerability of Caribbean SIS. Sustainable HE financing requires a change in basic assumptions, advocating for industry regional collaboration on shared resources and the adoption of vulnerability-adjusted metrics, such as the proposed Multidimensional Vulnerability Index (MVI), to unlock predictable, concessional development finance dedicated to building resilient educational infrastructure and fostering future human capital.


Paper Information

Conference: SEACE2026
Stream: Higher education

This paper is part of the SEACE2026 Conference Proceedings (View)
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Posted by James Alexander Gordon