The Finnish higher education system consists of two sectors: universities and polytechnics. There are altogether 20 universities in Finland: ten multifaculty universities, three universities of technology, three schools of economics and business administration, and four art academies. The University of Helsinki is the largest. Under the Ministry of Education there are 29 polytechnics in Finland. Most of them are multidisciplinary, regional institutions, which give particular weight to contacts with business and industry. Geographically, the network of both universities and polytechnics covers the whole country. The higher education system as a whole offers openings for 68,4 % of the relevant age group (universities 31,4 %, polytechnics 37 %). Finland is country with population of 5 million inhabitants. As a result of globalisation, Finnish higher education is in a new situation. Considerably more attention needs to be paid to the demands caused by international development when determining national quality objectives and criteria for quality assurance. Therefore in Autumn 2003 the Ministry of Education set a committee to survey the European and international developments of quality assurance of higher education and the changes central to Finland. The committee had to also analyse the present stage and development requirements for quality assurance of Finnish higher education and make recommendations for the development of Finnish higher education quality assurance and other necessary development suggestions. Before this national level discussion the quality assurance systems of the higher education institutions has been based on law. According to law the main responsibility of the quality of education lies on the higher education institutions themselves, which are also obliged to take part in outside evaluations. BACKGROUND: The aims of the Bologna process The ultimate goal of the Bologna Declaration is to create a common European Higher Education Area by 2010 with a view to improving the competitiveness and attraction of European higher education in relation to other continents. The means are : · Easily readable and comparable degrees: ECTS and the Diploma Supplement. · Uniform degree structures: mainly based on a two-cycle model. · Establishment of a system of credits - such as the ECTS system. · Increased mobility. · Promotion of European co-operation in quality assurance with a view to developing comparable criteria and methodologies. The European Network of Quality Assurance in Higher Education plays a key role in this. ENQA's secretariat is located in Finland, in the same space with FINHEEC. · Promotion of the European dimension in higher education The last ministerial follow-up meeting took place in Berlin 18 -19 September 2003 where very concrete goals were set until 2005. THE PROCESS IN FINLAND In order to strengthen the position of Finnish universities in the European Higher Education Area, Finland is reforming the degree structure and devising an international strategy for the Finnish higher education system. At present degree structures are evolving in line with the Bologna Declaration, and the Bachelor-Master structure is becoming the prevalent model. The new two-cycle degree system will be adopted by Finnish universities in August 2005. The polytechnics will most likely keep the present system. There are new polytechnic postgraduate degrees, developed very recently, and their status in the higher education system as a whole must be determined explicitly. Finnish higher education institutions use the ECTS system in international student mobility schemes. This has revealed some problems. The extent of Finnish polytechnic degrees will be determined on the basis of ECTS at the same time as the university degrees. Universities and polytechnics have a statutory duty to issue a Diploma Supplement to the student on request. Recently the Bologna process has focused on quality assurance. Based on initative by the Finnish Higher Education Evaluation Council (http://www.kka.fi/english/), in August 2003 the Ministry of Education set a large-scaled committee to develop quality assurance in Finnish higher education. The task of the committee was to survey the European and international developments of quality assurance of higher education and the changes central to Finland; analyse the present stage and development requirements for quality assurance of Finnish higher education and make recommendations for the development of Finnish higher education quality assurance and other necessary development suggestions. Above all, the committee recommends, given in February 2004- instead of starting accreditation, auditing of the quality assurance systems of Finnish universities and polytechnics. Auditing will be taken into use y. 2004-2005 and carried out periodically (e.g. in 5-6 year intervals). All quality assurance systems of the higher education institutions should be audited once by 2010. This mean a great challenge and new approach in Finnish higher education evaluation culture.