№ 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)

Download

Downloads :110

1. Verkhovna Rada of Ukraine. (2020). About the State Budget of Ukraine for 2021
(Draft Law No. 4000, December 1). Retrieved from w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=69938 [in Ukrainian].
2. Verkhovna Rada of Ukraine. (2014). About higher education (Act No. 1556-VII, July 1). Retrieved from zakon4.rada.gov.ua/laws/show/1556-18 [in Ukrainian].
3. Bogolib, T. M. (2014). Educational and research fundraising in Ukraine. Scientific works of Donetsk National Technical University. Series: Economic, 5, 11–17 [in Ukrainian].
4. Varnalii, Z. S., Krasilnyk, O. V., & Khmelevska, L. P. (2017). Financing of state higher educational institutions of Ukraine. Kyiv: Knowledge of Ukraine [in Ukrainian].
5. Tymchenko, O. (2018). Theoretical principles and pragmatics of the program-target method of the higher education funding in Ukraine. Finance of Ukraine, 11, 7–20 [in Ukrainian].
6. Bilinets, M., Hladchenko, L., & Paientko, T. (2019). Government Financial Support of Higher Education and its Role in Economic Prosperity of a Society. Retrieved from ceur-ws.org/Vol-2393/paper_419.pdf.
7. Blankenberger, B., & Phillips, A. (2016). Performance Funding in Illinois Higher Education: The Roles of Politics, Budget Environment, and Individual Actors in the Process. Educational Policy, 30 (6), 884–915. doi.org/10.1177/0895904814556748
8. Ortagus, C., Kelchen, R., Rosinger, K., & Voorhees, N. J. (2020). Performance-Based Funding in American Higher Education: A Systematic Synthesis of the Intended and Unintended Consequences. Educational Evaluation and Policy Analysis, 42 (4), 520–550. doi.org/10.3102/0162373720953128
9. Bogue, E. G., & Johnson, B. D. (2010). Performance incentives and public college accountability in the United States: A quarter century policy audit. Higher Education Management & Policy, 22 (2), 9–30. doi.org/10.1787/hemp-22-5kmbjh05fxd3
10. Laird, F. N. (2020). Sticky Policies, Dysfunctional Systems: Path Dependency and the Problems of Government Funding for Science in the United States. Minerva, 58, 513–533. doi.org/10.1007/s11024-020-09409-2
11. Altbach, P. G., Reisberg, L., & Rumbley, L. E. (2010). Trends in Global Higher Education: Tracking an Academic Revolution. Rotterdam: Sense. doi.org/10.1007/s11024-020-09409-2
12. Altbach, P., Androushchak, G., Kuzminov, Y., Yudkevich, M., & Reisberg, L. (Eds.). (2013). The global future of higher education and the academic profession: the BRICs and the United States. New York: Palgrave Macmillan. doi.org/10.1057/9780230369795
13. Schur, M. (2020, June 6). What will be the higher education after COVID-19? In the United States and Britain, universities suffer multimillion-dollar losses. Retrieved from www.radiosvoboda.org/a/vyshcha-osvita-pislia-koronavirusu/30655858.html [in Ukrainian].
14. Mariononi, G., Land, H., & Jensen, T. (2020). The impact of COVID-19 on higher education around the world. Paris: International Association of Universities.
15. Stukalo, N., & Simakhova, A. (2020). COVID-19 Impact on Ukrainian Higher Education. Universal Journal of Educational Research, 8 (8), 3673–3678. doi.org/10.13189/ujer.2020.080846
16. Schroeder, R. (2018, September 28). Pedagogy, Andragogy, and Now Heutagogy. UPCEA. Retrieved from upcea.edu/pedagogy-andragogy-and-now-heutagogy/.
17. Nistor, S., Mera, V.-I., & Pop Silaghi, M. I. (2018). Is Education Important in Assessing the Impact of Institutions on Economic Growth in Emerging Economies? Applied Economics, 50, 34/35, 3840–3854. doi.org/10.1080/00036846.2018.1436149
18. Franco, C., & Leoncini, R. (2013). Measuring China's Innovative Capacity: A Stochastic Frontier Exercise. Economics of Innovation and New Technology, 22 (2), 199–217. doi.org/10.1080/10438599.2012.744174
19. Zhuk, Yu. (2005).You need to be able to look in the eye, or you should enter the Bologna process with Ukrainian positive experience, taking into account the realities. Education, 12, 4–5 [in Ukrainian].
20. Zyazyun, L. (2009). Academic educational values in the French education system. Higher education in Ukraine, 1, 110–115 [in Ukrainian].