№ 2/2021

Fìnansi Ukr. 2021 (2): 98–112https://doi.org/10.33763/finukr2021.02.098

FINANCE OF EDUCATION AND SCIENCE

BILINETS Maryna ¹, BURIACHENKO Andrii ², PAIENTKO Tetiana ³

¹Kyiv National Economic University named after Vadym Hetman
OrcID ID : https://orcid.org/0000-0001-5816-0080
²Kyiv National Economic University named after Vadym Hetman
OrcID ID : https://orcid.org/0000-0002-7354-7491
³Berlin University of Applied Sciences of Economics and Techniques (HTW)
OrcID ID : https://orcid.org/0000-0002-2962-308X

Financing higher education in Ukraine in the 21st century: challenges and prospects for overcoming them

The development of higher education is characterized by new priorities, which necessitates the adjustment of higher education funding mechanisms in response to new challenges. The purpose of this article is to identify these key challenges in Ukraine and justify the possibilities to face them. The analysis of funding of higher education was conducted based on macroeconomic indicators for 2005 to 2020. It is also reviewed that financing of higher education in Ukraine is characterized by decentralization and diversification, which are characterized by an increase in the share of local budgets in the structure of higher education funding in Ukraine and the use of extra-budgetary sources of funding, in the form of tuition fees. The analysis has revealed the following key challenges of financing higher education: massification of higher education, which is characterized by the triad of "high availability - low price - low quality"; change in approaches to educational activities and decrease in the number of students as a result of the COVID-19 pandemic; inefficient model of financing higher education, which results in producing specialists with higher education that do not meet the needs and demands of the labor market. Overcoming the identified challenges can be achieved through reforming higher education models by aligning the structure, scope and quality of training with the needs of the economy and labour market, and its financing, through changing the cost-based approach to financing by results. This, in turn, would help align budget funding with institutional efficiency and curriculum effectiveness, and reduce the number of unclaimed specialists with higher education.

Keywords:higher education institutions, financing of higher education, budget financing, sources of financing

JEL: H52, I22

Bilinets M. . Financing higher education in Ukraine in the 21st century: challenges and prospects for overcoming them / M. Bilinets , A. . BURIACHENKO, T. . PAIENTKO // Фінанси України. - 2021. - № 2. - C. 98-112.

Article original in Ukrainian (pp. 98 - 112)

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