Abstract
This paper arises from the experiences in five countries (Denmark, the Netherlands, Norway, Sweden and the United Kingdom) in developing and using performance indicators in government-institutional relationships. The role of performance indicators in higher education depends on the political culture, the educational funding system and the quality assessment procedures that determine the optimal allocation of resources in a particular country. The political culture of education can be geared, on the one hand, to equivalence in the provision of educational opportunities and, on the other, to variety in the educational system. The funding system can be incremental or differential. Quality assessment can aim at quality across the system or at comparative quality judgements. Ten lessons for government and intermediate funding agencies are drawn, which are believed to facilitate the debate on the development and the use of indicators in government-institutional relations.
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