№ 12/2017

Fìnansi Ukr. 2017 (12): 95–121

INTERNATIONAL FINANCES

PETRAKOV Jaroslav ¹

¹Chernihiv National University of Technology
OrcID ID : https://orcid.org/0000-0001-9123-0642

higher education funding models in Europe and the world

Externalities, together with the announced higher education reform in Ukraine, have increased material demand on HE funding mechanism revision. Despite several recent attempts to analyze the patterns and drivers of higher education funding model (HEFM) evolution in Ukraine and a good pool of best practices’ cases among the EU, there is a need in generalization and specification of existing (inter)national experience in this field. The purpose of the research is the aggregation of foreign experience in various national HEFM design and development with a focus on drivers, patterns, and industry-specific features. Our hypothesis assumes that HEFM as a function of the national HE system is institutionally and organizationally connected with society and business, thus is rather external-driven and needs a mix of motivation tools to shift stakeholder’s behavior. Thus, transformation drivers could be an effective educational market and performance-based budgeting. We have identified amongst others 5 key external trends that impact HES – globalization, digitalization, Industry 4.0, project-cycle management and performance-budgeting. We’ve discovered that HEFM evolutionary cycle combines three stages: bureaucratic (negotiations with the principal-agent dilemma), collegial (with limited autonomy) and market (stakeholder-engaged). So, there is a combination of two approaches – regulatory/market and input-output dominated, where HEIs shift from program- and university-oriented funding models to student-centered. We agree with Jongbloed and Lepori arguments on the patterns of such HEFM modernization, based on HE marketization in the last two decades, enhanced and enforced autonomy, resource and administrative capacity. As a result, the European and American HE funding models face convergence, particularly in the areas of assessment, metrics, formula-based finance and deeper integration in the global value chains, including innovation and research. We suggest that nowadays the developed countries are at the HEFM fifth evolutionary stage started after 2010 that will last until 2020 with strong emphasis on effectiveness, impact and spill-over effects that need complementary financial sources, gradual continued structural reforms and fine-tuned combination of policy instruments in the financial area, being the key competitive advantage for HEIs on the world map.

Keywords:higher education, funding models, national higher education system, evolution

JEL: H52, I21, I22

PETRAKOV J. . higher education funding models in Europe and the world / J. . PETRAKOV // Фінанси України. - 2017. - № 12. - C. 95-121.

Article original in Ukrainian (pp. 95 - 121)

Download

Downloads :579

1. Stadny`j, Ye. (2015). Finance of national universities. CEDOS. Retrieved from cedos.org.ua/uk/osvita/finansy-natsionalnykh-universytetiv [in Ukrainian].
2. Erfort, O. Yu. (2013). Model of higher education financing in the context of the strategy for improving the quality of human resources in Ukraine. Economics of industry, 1-2 (61-62). Retrieved from econindustry.org/arhiv/html/2013/st_36_61-62.pdf [in Russian].
3. Kharlamova, H. (2017). British model of higher education financing: lessons for Ukraine. Bulletin of Taras Shevchenko National University of Kyiv, 194, 58–66. Retrieved from www.library.univ.kiev.ua/ukr/host/10.23.10.100/db/ftp/visnyk/ekonom_194_2017.pdf [in Ukrainian].
4. Jongbloed, B. et al. (2010). Progress in higher education reform across Europe. Funding Reform (Vol. 1). Enschede: CHEPS. Retrieved from ris.utwente.nl/ws/portalfiles/portal/5141288.
5. Seeber, M., Lepori, B. (2017). Budgeting practices in European Universities. Retrieved from www.researchgate.net/publication/318824154.
6. Ziegele, F. (2013). European Trends in Performance-Oriented Funding. In S. Bergan, E. Egron-Polak, J. Kohler, L. Purser (Eds.). Leadership and Governance in Higher Education – Handbook for Decisionmakers and Administrators (pp. 71–88). Berlin: Raabe.
7. Lepori, B. (2007). Funding models of Universities of Applied Sciences. International experiences and options for the Swiss case. Retrieved from www.researchgate.net/publication/254236118.
8. Jongbloed, B. (2003, April). Marketisation in Higher Education, Clark’s Triangle and the Essential Ingredients of Markets. Higher Education Quarterly, Vol. 57, No. 2, 106–131. Retrieved from www.researchgate.net/publication/229792682_Marketisation_in_Higher_Education_Clark's_Triangle_and_the_Essential_Ingredients_of_Markets.
9. Pranevičienė, B., Pūraitė, A. (2010). The Financing Methods of Higher Education System. Jurisprudence, 4 (122), 335–356. Retrieved from www.mruni.eu/upload/iblock/a2d/18_Praneviciene.pdf.
10. Jongbloed, B., Lepori, B. (2015). The Funding of Research in Higher Education: Mixed Models and Mixed Results. In J. Huisman, H. de Boer, D. D. Dill, M. Souto-Otero (Eds.). The Palgrave International Handbook of Higher Education Policy and Governance (pp. 439–462). Palgrave Macmillan UK. Retrieved from www.researchgate.net/publication/307817461_The_Funding_of_Research_in_Higher_Education_Mixed_Models_and_Mixed_Results.
11. Jongbloed, B. (2004). Funding higher education: options, trade-offs and dilemmas. New Trends in Higher Education. Retrieved from www.researchgate.net/publication/254243789.
12. de Boer, H. F., Jongbloed, B. W. A., Enders, J., & File, J. M. (2013). Progress in higher education reform across Europe, Governance reform (Vol. 2). Enschede: CHEPS. Retrieved from novebojeznanja.hr/UserDocsImages/Dokumenti%20i%20publikacije/–Dokumen ti%20i%20publikacije%20referirani%20u%20SOZT-u%20(popis%201)/109a%20Progress%20in%20higher%20education%20reform%20across%20Europe,%20Governance%20and%20%20Funding%20Reform,%20Vol.%202.pdf.
13. Estermann, T., Nokkala, T. & Steinel, M. (2011). University Autonomy in Europe II. The Scorecard. Brussels: European University Association. Retrieved from www.eua.be/Libraries/publications/University_Autonomy_in_Europe_II_-_The_Scorecard.pdf?sfvrsn=2.
14. EACEA. (2011). Modernisation of Higher Education in Europe: Funding and the Social Dimension. Brussels. Retrieved from www.finhed.org/media/files/12-131EN.pdf.
15. Eurostat. (2017). Retrieved from ec.europa.eu/eurostat.
16. UNESCO. (2017). Data base. Retrieved from data.uis.unesco.org/.
17. Jongbloed, B., Vossensteyn, H. (2002). Financiering masters: Argumenten en Arrangementen. (Studie in opdracht van de Werkgroep Financiering Masters). Ministerie van OC&W. Retrieved from ris.utwente.nl/ws/portalfiles/portal/5153270.
18. European Commission. (2006). Delivering on the Modernisation Agenda for Universities: Education, Research and Innovation. Communication from the Commission to the Council and the European Parliament. Brussels: Author. Retrieved from eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2006:0208:FIN:en:PDF.
19. European Commission. (2011). Supporting growth and jobs – an agenda for the modernisation of Europe’s higher education systems. Communication from the Commission to the Council and the European Parliament. Brussels: Author. Retrieved from ec.europa.eu/dgs/education_culture/repository/education/library/policy/modernisation_en.pdf.
20. European Commission. (2013). Funding of Education in Europe 2000–2012: The Impact of the Economic Crisis: Eurydice Report. Luxembourg: Publications Office of the European Union. Retrieved from eacea.ec.europa.eu/education/eurydice/documents/thematic_reports/147EN.pdf.
21. Estermann, T., Bennetot Pruvot, E. & Claeys-Kulik, A-L. (2013, December). Designing strategies for efficient funding of higher education in Europe: define interim report. Brussels: European University Association. Retrieved from www.eua.be/Libraries/publication/DEFINE_final.
22. OECD. (2014). Promoting Research Excellence: New Approaches to Funding. OECD Publishing. Retrieved from dx.doi.org/10.1787/9789264207462-en.
23. European Commission. (2016). Denmark – Creating University Centres of Excellence: the UNIK-initiative. Luxembourg: Publications Office of the European Union. Retrieved from ris.utwente.nl/ws/portalfiles/portal/5135207.
24. Palonen, M., Halonen, T. (2015). Higher education in Finland: Presentation. Retrieved from www.arene.fi/sites/default/files/PDF/2015/Chile%20Visit/Tomi_Halonen_Maarit_Palonen_%20HE%20in%20Finland.pdf.
25. Compton, B. (2011, August). Essays in the Political Economy of Higher Education Funding. In Clemson University Tiger Prints. All Dissertations (pp. 77–80). Retrieved from tigerprints.clemson.edu/cgi/viewcontent.cgi?article=1799&context=all_dissertations.