Higher Education Funding Research Articles

Higher Education Funding Policy and Research Productivity of Universities in Georgia

This research study explores the existing funding systems of higher education in Georgia and their influence on universities’ research productivity. The research used Harman’s (2007) typology of research funding— institutional, project, and special program—to analyze each approach’s effect on universities’ research productivity. The research revealed that these funding models did not substantially affect the development of scholarly and research capacity. Major barriers to the development of higher education and research are largely related to the amount and financing models. Analysis of the higher education financing policy showed that per capita financing does not allow sufficient research activities at HEI, and targeted financing programs oriented toward developing specific scientific directions or improving scientific infrastructure do not promote research productivity. Based on research findings, the author argues that immediate changes in funding policy are required for the institutional development of university-based research in higher education of Georgia.

Tendencies and prerequisites of higher education image formation of institutions in the modern market environment

Analysis of the current situation. Higher education institutions in Ukraine are in a competitive environment, and in a constant struggle for the best students, researchers, grants, and other budgetary and extra-budgetary funding. After all, funding for higher education in Ukraine is much lower than in European countries. Currently, due to the war in the country, many Ukrainians have gained access to education in the European Union, so more and more HEIs are developing a scientific component as an alternative source of replacing the loss of applicants, including foreign ones, who were lost due to the war in the country. This approach of science to educational institutions is in line with the 4th UN Sustainable Development Goal, namely subparagraph 4.4 - to improve the quality of higher education and ensure its close connection with science, and to promote the formation of cities of education and science in the country. However, these processes necessitate competition that is limited by financial resources. In recent years, Ukrainian educational institutions have been working more and more actively to enter national and global rankings of higher education institutions, trying to improve their positions in the rankings and formulate an opinion about their success among applicants, partners, entrepreneurs, local authorities, etc. Stakeholder engagement and maintaining the quality of education and research are key to ensuring compliance with labor market needs and attracting investment. The reorientation towards a socially responsible university reflects global trends and contributes to the formation of a positive image among the main stakeholders of the HEI. Adapting to these trends allows HEIs to successfully position themselves in the market, attracting students, teachers, and investors. The war in Ukraine restricts the full development and formation of a positive image of higher education institutions and leads to an outflow of intellectual capital from the country. The results of the study show that in terms of the "Brain Drain" indicator, Ukraine ranks among the worst in the world with an index of 8.9 out of 10, with only Samoa and Jamaica being worse off. The dynamics of entering the world rankings of universities, the number of students graduating by year, both domestic and foreign, are studied. The necessity of creating and promoting a positive image of higher education institutions in the modern competitive market environment, the need to position universities in the international globalized environment is substantiated.

ФІНАНСОВЕ ЗАБЕЗПЕЧЕННЯ ЗАКЛАДІВ ВИЩОЇ ОСВІТИ: ЗАРУБІЖНИЙ ДОСВІД

The competitiveness of the national economy in the modern system of the world economy depends on the level of development of national science. Therefore, a sufficient level of appropriations for science is one of the main conditions for the effective use of scientific potential as a leading factor of economic development. In the knowledge economy, public funding of science is seen as an investment in the future, which will ultimately bring high dividends to society as a whole. In order to function successfully, the field of education needs to be provided with sufficient amounts of financial resources. Education finance is a system of monetary relations regarding the formation, distribution and use of various financial resources or funds of funds. As a result of the implementation of these relations in educational activity, various funds of financial resources are formed, the purpose of which is to ensure the effective functioning of institutions of the education system. In recent decades, the financing of higher education has undergone significant changes throughout the world. In general, these changes are caused by the fact that the costs of financial support for higher education increase every year, and the rate of growth of higher education costs does not provide an opportunity to meet all needs. Accordingly, the majority of higher education institutions in the world began to face the problem of lack of financial resources for the implementation of educational activities. The main problem turned out to be that the needs for resources were growing rapidly, while the financial support of the state remained unchanged or even decreased. The article examines the peculiarities of financial provision of higher education in economically developed countries. The interdependence of the financial provision of higher education and the level of economic development of the state is substantiated. The problems of financing higher education in Ukraine and the countries of the world were studied; ways of diversifying sources of financial resources of higher educational institutions; state and trends of expenditures on higher education in the countries of the world. Proposals for improving the financial provision of higher education institutions in Ukraine have been submitted.

Higher Education funding, Justice and Equity - Critical Perspectives

How governments choose to fund students in higher education (HE) is inextricably linked to the sector’s sustainability and efforts to achieve a just and equitable HE experience and outcomes for all students. The way funding mechanisms are structured and subsequently enacted within the university, has far-reaching consequences, with the implications reaching far beyond the walls of the institution (Shermer, 2021). In the context of austerity, marketisation, credentialisation and related neoliberal conceptions of education and society, student funding models have greatly transformed the sector and its role in enabling or hindering efforts to achieve a more just and equitable society (Quinlan, 2014). However, despite well-intentioned global and national-level policy commitments to achieving justice and equity in and through HE, the persistent effects of geography, race, wealth, gender, and class-based disparities in patterns of access, participation and attainment rates have undermined the idea of HE as a vehicle for just and equitable futures and transformation (Boliver, 2017). Higher education institutions globally find themselves at a crossroads of trying to maintain their core purpose as a public good on the one hand and compliance with global neoliberal policies, which are foundational to the modern university on the other. The tension between these contested and seemingly contradicting paradigms is made visible in how universities respond to issues of inclusion, equity and in how and what they choose to fund.

Funding higher education as a strategic good of a nation

In this paper, we propose that higher education should be seen as a strategic good of nations. We argue that higher education is neither a private, nor a public good, and that its facilitation by governments, and its attainment of citizens is critically required for the wellbeing of a nation. We also use the partnership funding model of higher education as a framework to facilitate the strategic investment in higher education by economically capable governments. We used enrollment and funding data from Al Ain University, UAE as a case to examine the percentage of students who were able to secure government funding to pay their tuition fees. The result from this paper shows that higher education is considered as a strategic good in the UAE, and that all willing and able citizens can benefit from the availability of tuition free higher education at three publicly-funded academic institutions. In addition, the UAE Government is providing funding to almost half of the students who choose to attend other tuition-based colleges and universities.

INTERNATIONALIZATION OF HIGHER EDUCATION IN THE CONTEXT OF RECOVERY OF UKRAINE: GOALS AND CHALLENGES

The goal of the study is the analysis of Recovery Plan of Ukraine (draft) on the topic of internationalisation of higher education, its goals and their fulfilment. Goal 4 Internationalization of higher education of Ukraine includes the following steps: introduction of online admission of foreigners to Ukrainian universities on a regular basis; determination of priority measures for learning English; bringing the list of fields of knowledge into compliance with ISCED (stage 1: June 2022 – the end of 2022). To achieve the above goal, several methods have been used, including an internet search, analysis, systematization of evident information. It was found that Ministry of Education and Science of Ukraine provides the regulatory framework for fulfilling goals of the first stage. At the same time it is stated that it is necessary to: approve electronic invitation form; register (registration and issuance by HEIs) electronic invitations using the means of a single interdepartmental electronic platform; interact regarding the approval of electronic invitations; keep records of electronic invitations; introduce the Law of Ukraine «On Employment of the Population» regarding the work of foreigners and stateless persons pursuing higher education in Ukraine; ratify the Global Convention on the Recognition of Qualifications concerning Higher Education (2019). The increase in the volume of state funding of higher education in Ukraine in the conditions of recovery from the consequences of the war with russia compared to the pre-war period is not realistic. The number of Ukrainian and foreign applicants to HEIs will decrease.

CLUSTERIZATION OF UNIVERSITIES AND JUSTIFICATION OF THE ECONOMIC MODEL OF THEIR DEVELOPMENT

The destruction of infrastructure, migration of teachers, students and potential applicants abroad, chaotic and unpredictable decisions on further cooperation with higher education institutions (HEIs), and cuts in budget funding for higher education are factors that make universities vulnerable. Understanding the real sustainability potential of universities and the key components of the economic model of development is a tool for making management decisions to ensure their sustainability. The purpose of the article is to substantiate the methodological tools and test the methods of clustering universities to identify the key components and indicators of the economic model of development. In the course of the study, on the basis of a panel sample of 35 HEIs, using a dynamic approach, three groups of indicators for building clusters were calculated: scale indicators determined by changes in the contingent; financial indicators characterizing university revenues and expenditures in relation to other indicators; indicators of external competitiveness assessment. The clustering of universities was carried out in the RapidMiner Studio software product using the Auto Model tool, employing the k-Means method, which made it possible to combine universities into relatively homogeneous groups according to the selected indicators and the rates of their changes. Main scientific results are as follows: methodological tools for clustering universities and substantiating economic development models have been identified; clustering of universities by scale, financial indicators and external competitiveness assessment has been carried out; models of university development have been identified and substantiated depending on the value of key indicators; the main components (enrollment, income and expenditures) and indicators of the economic model of their development are identified, the change of which is decisive for assignment to a particular cluster and is a tool for making management decisions to ensure the sustainability potential of HEIs.

MODERNIZATION OF THE HIGHER EDUCATION SYSTEM IN UKRAINE IN THE CONTEXT OF IMPLEMENTING AUTONOMY OF HIGHER EDUCATION INSTITUTIONS

B a c k g r ou nd . The essence of autonomy of higher education institutions has been considered, and an overview and analysis of the problems that have accumulated in the domestic higher education system have been conducted. Overcoming these problems has shown positive results, and certain recommendations have been provided regarding the formation of university autonomy as a means of addressing systemic issues in domestic higher education. An overview and analysis of the problems that have accumulated in the domestic higher education system have been conducted. It is noted that these problems can be overcome through the modernization of higher education in the direction of autonomy. It is empha- sized that positive results can be achieved by ensuring greater freedom in university governance, implementing principles of transpar- ency, openness, and social responsibility. The purpose of the article is to investigate the state of implementing autonomy in domestic higher education institutions in the pro- cess of modernizing the higher education system in Ukraine. Re su lt s . Building a modern higher education system that can compete with global systems requires the introduction of innovative approaches, flexible training programs, and the promotion of students' creativity and self-realization. In addition, it is important to provide adequate support and funding for higher education to ensure quality infrastructure development, modern technologies, research, and support for talented scientists. C onc lu si on s . So, here's the deal, modernization of higher education in Ukraine towards autonomy is a complex and long-term process that requires careful analysis, planning, and involvement of all stakeholders. It is important to create effective governance mechanisms, ensure openness and transparency of processes, and engage the general public in dialogue and decision-making.

Higher Education Expansion and Population Mobility

China has implemented a higher education expansion policy since 1999, increasing the number of higher education institutions and increasing the number of expansions. This paper uses panel data and intensity double difference method for 31 provinces in China from 1996 to 2020 for the analysis. It is found that the higher education expansion policy has increased the level of population mobility, especially for the southeastern coastal and economically developed regions. Further mechanism tests show that after the implementation of higher education expansion policy, regions increase investment in education and enrich education resources, but also widen the economic gap between regions, triggering factor endowment and neoclassical growth mechanisms, which affect population mobility. This paper suggests increasing funding for higher education in regions with weaker economic development, slowing down the expansion of higher education in economically developed regions, and strengthening inter-university cooperation.

ОБЗОР МОДЕЛЕЙ ФИНАНСИРОВАНИЯ ВЫСШЕГО ОБРАЗОВАНИЯ: МЕХАНИЗМЫ ДОВЕДЕНИЯ СРЕДСТВ И РОЛЬ ГОСУДАРСТВА

The paper considers the higher education financing models used in different countries. The funding mechanisms, as well as the role of the state in financial resources allocation, are discussed. An analysis of a wide range of research papers shows that there are two key financing models in accordance with a typology of budgetary financing approaches: institutional and demand-based. In the institutional model of higher education funding, the object of financial flows is represented by universities, while in the demand-based model it is students. The models may include different sets of mechanisms to fund. Each mechanism, in addition to the conditions for obtaining budget funds, contains an institutional framework which determines the procedure for spending funds for the needs of the university. The results of the analysis demonstrate that the format of the higher education budgetary financing system is a derived element from the institutional landscape of the state and the form of public finance management. At the same time, the role of the state is largely determined by policy aspects related to the structure of funding and the level of universities autonomy.

Reforming higher education to sustain planetary health

Reforming higher education to sustain planetary health

Funding the Higher Education System: International Experience and Russian Practice

Relevance. Education is a significant factor in economic growth. However, the discussion about the principles for distributing higher education funding is still open, and the cases of individual countries are not sufficiently covered in research literature. Research objective. The study aims to determine the principles of financing based on the case studies of Russian universities. Foreign financing mechanisms are analyzed and compared with Russian practice that has similar foundations. Financing mechanisms are classified according to their distribution principle. Data and methods. The statistical base for the study is the data of a large-scale higher education monitoring project of 2019-2021. The study was conducted in more than 650 Russian universities. In order to determine the principles of financing, a correlation analysis is carried out to identify the correlation between the indicators. Universities are grouped by regions with different socio-economic characteristics, subgroups of universities within the regional division were identified. Results. The distribution of funding among Russian universities is based on the principles of quasi-competition and equalization. Universities located in regions with low indicators of socio-economic development are mainly financed to achieve equalization of educational activities, and, as the socio-economic situation in the region improves, funding is channeled into equalization of research activities. Another more obvious conclusion is that research activities of universities that participate in state programs are funded based on competition, while other universities have lower correlation between indicators, which leads us to the assumption that other universities’ research activities are funded based on the principles of equalization. Conclusions. The novelty of the study is the results that enrich the understanding of the principles for funding distribution in the Russian higher education system. Contrary to most studies of the concentration of resources around a limited number of institutions, the study concludes that resources and funding are distributed based on equalization, supporting the less competitive units of the system, and directing funding to regions with less stable socio-economic characteristics.

Factors that Influence the Organizational Performance in Private Universities: A Review of Literature

This paper presents a review literature of the factors that influence organisational performance in organisations in private universities. This study focuses on internal control variables, budgeting processes and organisational characteristics as moderating variables. Many private universities in Indonesia are closed or no longer operating due to a lack of internal control in managing universities and inadequate budgeting processes. So, the universities lack funds to carry out their operational activities. The characteristics of higher education leaders are less professional in managing higher education institutions. He/she carried out his leadership so that many universities went bankrupt. Finally, these universities had to be closed due to a shortage of students as the main source of higher education funding. From previous research, many researchers are still researching profit organisations, which is rarely done for non-profit organisations. Besides that, the previous research on organisational performance was measured only from the financial part, while for finance, it was still rare to investigate as a benchmark for organisational performance.

Loans and Scholarships in Africa’s Higher Education Finance: A Comparative Analysis of Capitation, Policy and Recoveries in Eleven Countries

This article is a comparative analysis on financing of higher education in eleven African countries; Botswana, Ghana, Kenya, Lesotho, Malawi, Namibia, Rwanda, South Africa, Tanzania, Uganda, and Zambia. Existing trends and practices on loans and scholarships in relation to capitation, policy and recoveries were compared in the eleven countries that were also member state countries to the Association of the African Higher Education Financing Agencies (AAHEFA). Data was collected at the 2019 AAHEFA conference held in Lusaka, Zambia, where eleven chief executive officials or their representatives from country loans and scholarship related institutions shared comprehensive reports related to funding of higher education in the eleven countries. The data collected was analysed thematically. The article shows that the eleven African countries shared several similarities and differences ranging from management structures, education prioritization, capitation, recovery methods and policies. High demand for student funding against limited resources and loan recovery methods were among the emerging similarities. The differences included variations in funding patterns, policy differences among funding agencies and nebulous management structures. It argues that since most of these loans boards are in their infancy, they needed to learn very fast on how to manage granting and recovery of loans.

Mechanism of private funding of higher education in OECD countries and Ukraine

The mechanisms of higher education funding in the OECD countries and in Ukraine is considered in the paper. An analysis of the sources of higher education funding was carried out and separate indicators of higher education funding in OECD countries were considered. The mechanism of financial support for obtaining highereducation in countries, where public and private higher education funding prevails, is characterized. The peculiarities of higher education funding in Ukraine at the expense of private sources and the experience of using state loans are analyzed.

Institutional Engagement in Internationalisation in Finnish Higher Education

In this paper, we discuss motivations for internationalisation and the rationalities of higher education institutions based on the APIKS survey. There are two higher education sectors in Finland. Universities of applied sciences emphasise teaching and have a close connection with regional research, development, and the innovation system. Universities emphasise research and academic competition for research resources, as well as teaching based on research. Therefore, the conditions for internationalisation in these two higher education sectors are based on different sets of factors. There are also significant differences between individual institutions within both sectors. Individuals’ career paths depend on factors related to higher education sectors and institutional strategies. International academic activities determine the factors on which career paths are built in these two higher education sectors. Both pathways lead to internationalising institutions but in different ways.

A STUDY OF SOCIAL SUCCESS FACTORS OF KM FOR CREATION OF NEW KNOWLEDGE IN HIGHER EDUCATION

Dearing report by Higher Education Funding Council for England, 2006, suggested that in the times of intensified global competition, high- level skills and knowledge would become pertinent and indispensable for the country’s economic success. The SECI model of knowledge conversion given by Nonaka and his colleagues, is extensively used across industries and nations to explore the knowledge creation dimension of knowledge management. Areas of KM such as creation of novel knowledge and knowledge as intellectual capital require a lot of work and consideration from both theoretical as well as applied perspectives. With this in mind, the present study seeks to explore the social enablers or success factors contributing to knowledge creation in the higher education institutions in India. The findings suggest that the social success factors in the study significantly impact the process of knowledge creation. Moreover, different social enablers contribute significantly to different modes of the process of conversion and creation of new knowledge. The pragmatic implication of the present study could guide institutions to assess the prevalence of knowledge creation practices and success factors to be emphasized more to increase knowledge conversion and creation with respect to their organization.

THE EFFICIENCY OF INDIVIDUAL AND PUBLIC SPENDING ON HIGHER EDUCATION IN OECD COUNTRIES AND IN UKRAINE

The article is devoted to the analysis of the efficiency of higher education funding from the perspective of higher education applicants (cost of education) and from the perspective of the state (budget expenditures, investments in preparation of specialists).The article contains the main indicators of socioeconomic development of the OECD countries and Ukraine. The analysis has shown that in Ukraine the amount of higher education expenditures as a percentage of GDP has an average value compared to the OECD countries, while this amount in monetary terms is significantly lower than in other countries.The efficiency of higher education costs for the individual and expenditures for the state in the OECD countries and in Ukraine have been evaluated. The efficiency of individual costs of higher education is calculated using the discounted cash flow method, applied to the cost of education and the difference in wages between qualified and unqualified personnel. The efficiency of public spending on higher education (investment in the training of specialists) is calculated using the discounted cash flow method applied to the share of public spending on higher education and GDP growth generated by labor with better skills. The results of the calculations have shown that the efficiency of state expenditures on higher education is higher than the efficiency of individual costs.

A Foucauldian Discourse Analysis of Regional Balance in the Financing of Higher Education in Uganda: The Uganda Students’ Higher Education Financing Policy Perspective

In Uganda, there have been historically glaring disparities in access to higher education, where the majority of the students that join universities come from good secondary schools, which are mostly afforded by rich individuals. This has created a situation of ‘inherited merit’, where students from particular backgrounds and regions dominate access to HE. Because children of the poor who cannot afford to go to good schools hardly access higher education, whilst many of the students who join higher education institutions (HEIs) fail to complete their study programmes due to the failure to meet the costs involved. The Ministry of Education and Sports 2012 introduced the Uganda Students’ Higher Education Financing Policy to address the problem of inequitable access to higher education. Thus, the third objective of the policy aims to ensure ‘regional balance’ in the provision of HE through awarding of student loans. Because there are strong intra-connections between policy and language, the language used in discourse plays a critical role in the way the term Regional balance was constructed in the policy. This paper performs a Foucauldian discourse analysis perspective of the policy with the overall aim of showing signs of power imbalance through the use of language and revealing the discourses used by elite actors to retain power and sustain existing regional imbalance in access to HE in Uganda. By approaching such regional balance as political discourse rather than a pure act of equity and social justice, the paper shows how power is implicated within the guise of regional balance. As such the paper contributes to a discursive understanding of regional balance in the provision of HE in Uganda, to an appreciation of the role of power relations embedded in policy rhetoric as a form of exemplary theatrical government, and to the politics of regional balance. The findings revealed that the term ‘regional balance’ is used as a sugar-coated camouflage to sustain and perpetuate the hegemony of the Western part of the country. The paper concludes by exposing the power relations embedded within the policy and highlights gaps between the rhetoric and practice of the policy in which people from the Western part of Uganda have benefited more from this financing policy at the expense of other students from other regions of the country

Does institutional performance matter under competition-based funding for higher education in East Asia? A comparative study in Korea and Taiwan

ABSTRACT Neoliberalism was widely adopted both in South Korea and Taiwan in the mid-1990s. With governmental reforms, both countries adopted variants of competition-based funding mechanisms for higher education. This funding mechanism has been widely applied in most funding allocations for higher education in Korea from 2003 to 2017 and in Taiwan from 2004 to 2015. This study investigates whether competition-based funding is based on institutional performance rather than on traditional funding approaches such as budget history-based and student enrollment-based approaches. This study collected institutional funding data from 142 four-year universities in Korea and 100 four-year universities in Taiwan. This study found that funding is mostly contingent on the number of students, especially undergraduate students in Korea, and on prior budget history in Taiwan. This implies that although competition-based funding is widely applied in Korea and Taiwan, traditional factors such as student enrollment and budget history still influence funding decisions. However, this study also found that institutional performance is established in both countries’ government funding mechanisms. Institutional performance accounted for 27.6% in Korea in 2017, and for 16.7% in Taiwan in 2015. This study further discusses side effects brought by the funding scheme of both countries.