Brazil wants to open up universities to private money

A couple of months after announcing severe budget cuts to the federal education system, Brazil’s Education Ministry announced an ambitious plan to increase sources of revenue and budget flexibility for federal universities. The project is called “Future-se” (“Future yourself”) and provides incentives to attract private funding to universities. In addition to government capital—which covers approximately 90 percent of the universities’ costs—private funds would be used to invest in innovation, entrepreneurship, research, and the expansion of education.

The project will remain open to public input through an online forum until August 9. After that, it will be presented to Congress for approval. The attempt to attract private investment comes amidst extensive budget cuts in education; university funding will be reduced by 54 percent in some cases. The academic community has been highly critical of the project, arguing that public universities should not be influenced by private capital.

The dean of the Federal University of Ceará called the bill the “biggest attack” on public education. On the other hand, the Education Minister Abraham Weintraub—known for his attacks on what he calls ‘leftist indoctrination’ in schools—has claimed the proposal represents the “liberation of federal universities.”

What does the government propose?

The bill seeks to attract private investment through a series of initiatives that are similar to those adopted by major American universities, such as Harvard. An endowment fund would be created, welcoming donations from both alumni and businesses. Moreover, it establishes naming-rights for properties, allowing major donors to have university buildings named after them.

Separately, the Economy Ministry donated BRL 50 billion-worth in real estate to the Education Ministry, which will be used to generate revenue through leases or sales.

The bill also hopes to modernize and expand libraries and...