Volume 04 Issue 10-2024
39
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
04
ISSUE
10
P
AGES
:
39-46
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
ABSTRACT
The development of each country is directly related to the quality education system implemented in this country.
Therefore, almost all developed countries create the necessary measures and legal framework for the development
of the education system, support the activities of international universities, and create opportunities for the
population to receive quality education. In recent years, our country has implemented large-scale reforms in this
regard. The purpose of this research work is to promote comprehensive reforms implemented in the country by
analysing the experience of advanced foreign countries. For this reason, the experience of countries with developed
education system in the world was analysed, the possibilities of its use were analysed and relevant proposals were
developed.
KEYWORDS
Education, higher education, state budget, GDP, extra-budgetary funds, student contract funds, commercialisation,
investment.
INTRODUCTION
Research Article
POSSIBILITIES OF EFFECTIVE USE OF FOREIGN COUNTRIES'
EXPERIENCE IN FINANCING UNIVERSITIES
Submission Date:
October 09, 2024,
Accepted Date:
October 14, 2024,
Published Date:
October 19, 2024
Crossref doi:
https://doi.org/10.37547/ijmef/Volume04Issue10-05
Alisher Bakberganovich Sherov
Professor at Mamun University, PhD, Uzbekistan
ORCID: 0000-0001-7383-6229
Journal
Website:
https://theusajournals.
com/index.php/ijmef
Copyright:
Original
content from this work
may be used under the
terms of the creative
commons
attributes
4.0 licence.
Volume 04 Issue 10-2024
40
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
04
ISSUE
10
P
AGES
:
39-46
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
In all economically developed countries, the education
system, including higher education, is recognised as
the main factor of socio-economic development. In all
developed countries, the main source of funding for
higher education institutions is budgetary funds, i.e.
state budget funds or federal and regional budgets.
One more important point should be noted here: the
fact is that the use of econometric methods in scientific
research by Western economists has allowed us to
draw the following conclusion, i.e. in the periods
preceding economic growth, which countries had a
significant amount of budget funds invested in the
education system, these countries had high rates of
economic growth. Thus, it is proved that there is a
direct
relationship
between
the
growth
of
expenditures on education and science, sustainable
economic development and competitiveness of the
economy.
Some common concepts and approaches to the
funding of higher education institutions have been
incorporated into the practice of EU countries. In this
regard, it should be noted that most researchers have
recognised that blended funding is relatively more
efficient than public or private funding itself. At the
same time, mixed financing provides for the possibility
of using budgetary and extra-budgetary resources not
only in public HEIs, but also in private HEIs. This is due
to the fact that higher education is of great importance
for society in the form of accelerating economic
growth, increasing the flexibility of the labour market,
transferring scientific knowledge to the next
generation, accelerating scientific and technological
progress, and fulfilling important tasks. economic and
social functions. All this, in turn, justifies the growth of
state allocations for higher education.
METHODOLOGY
A number of methods were used in the preparation of
this article, the main ones being financial analysis,
analysis and synthesis, and statistical analysis.
RESULT & DISCUSSION
The practice shows that in economically developed
countries the state budget funds have priority in
financing higher education institutions. For example,
currently in Germany, Austria, Italy, France, Norway,
Denmark and Sweden budget allocations account for
90 per cent of the sources of funding for higher
education institutions. The level of this indicator is 80%
in the UK, Portugal, Finland, the Netherlands and
Spain, which indicates the active policy of the above
countries in the field of higher education.
At the moment, the approach to this issue is different
in transition countries, in particular, in the Russian
Federation. The reform of the higher education
system, which has been implemented in our country
since the 1990s, is manifested in the constant reduction
of the state's contribution to the financing of higher
education. Despite the fact that according to the
legislation at least 3 per cent of federal budget
expenditures should be allocated annually to financing
higher education, this norm is not observed. Thus,
Volume 04 Issue 10-2024
41
International Journal Of Management And Economics Fundamental
(ISSN
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2771-2257)
VOLUME
04
ISSUE
10
P
AGES
:
39-46
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
more than 50 per cent of expenditures related to the
financing of higher education institutions in this
country are covered by the revenues from their
entrepreneurial activities and other income-generating
activities.
In general, it should be emphasised that in recent
decades in the practice of developed foreign countries
of the world there have been cardinal changes in the
relationship between the state and higher education
institutions in matters of financial support and
strengthening of higher education institutions. . The
new policy of states in this respect is based, on the one
hand, on the desire to increase the responsibility of
higher education institutions and, on the other hand,
on the desire to effectively use financial resources for
their own purposes. recycling.
Many leading experts in higher education now
recognise that it is impossible to maintain the same old
attitudes towards higher education institutions in
terms of accountability. Because higher education
institutions need to take into account the needs of
society, the economy and the demands of the state.
And the state, in turn, needs to be concerned about the
professional development of teachers, their ability to
develop and use technology, all of which will ultimately
serve to further increase the productive forces and
economic power of the state.
According to experts, education, especially higher
education, is becoming the main component of the
national investment strategy of every developed
country. In the context of globalisation of the world
economy and the development of international
competition, increased investment in higher education
to train highly qualified and experienced professionals
is becoming one of the vital conditions for future
economic growth. In their opinion, if such a large
amount of investment is not channelled into higher
education, the competitiveness status of industrialised
countries may suffer in the coming years.
The higher education system increasingly determines
the international competitiveness of countries in
modern industrialised societies. Realising this, many
foreign countries with developed higher education
systems are adopting a new strategy for assessing the
performance of higher education institutions. The
main changes in the new strategy are related to the
development and implementation of a mechanism for
assessing the performance of higher education
institutions and the results of funding. In this sense, the
new strategy for higher education in these countries is
aimed at developing human capital and research,
which remains a prerequisite for strengthening the
competitive position of individual countries.
In accordance with the new tasks facing higher
education institutions, the methods of administrative
management of higher education are changing - these
processes are becoming more democratised, the
number of practical regulations is decreasing, and at
the same time, the systems of evaluation and control
Volume 04 Issue 10-2024
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International Journal Of Management And Economics Fundamental
(ISSN
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OCLC
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1121105677
Publisher:
Oscar Publishing Services
Servi
of activity are decreasing. higher education institutions
are developing.
In our opinion, the increased interest of public
authorities in the results of higher education
institutions' activities in developed foreign countries is
determined by the presence of at least the following
two factors: a) high-speed development of the field of
higher education; b) limitation of public expenditures
intended to finance the expenditures of higher
education institutions.
According to some experts, the rapid growth of higher
education in industrialised countries is one of the best
developments of the past twentieth century. When
such growth rates were achieved, government policies
aimed at developing human capital helped to ensure
economic growth, which, in turn, led to increased
investment in higher education. As a result, in the
following years the number of students increased by
70 per cent in the USA compared to 1970, by 30-33 per
cent in Western European countries compared to 1980,
and by 70 per cent compared to 1985 in Greece, France
and France. UK. The age structure of university
students is also changing, with an increasing
proportion of students aged 25 and over.
Expansion of higher education in conditions of limited
state funds threatens to reduce the quality of teaching
as a result of increasing the number of students in
groups, decreasing attention of teachers to a part of
students, deterioration of the quality of teaching.
relationships between students and teachers. All this
ultimately affects the deterioration of higher
education institutions' performance.
In industrialised foreign countries, macroeconomic
conditions in recent years, as well as voter resistance
to tax increases, have forced their governments to
reduce public spending on higher education. This
development is in some cases interpreted as increasing
the efficiency of higher education institutions and
forcing them to take better account of social needs.
As a result, on the one hand, by reducing public
expenditures
on
financing
higher
education
institutions, on the other hand, the amount of fees
charged to students increases. In addition, the
reduction in public funding occurs at a higher rate of
inflation compared to the increase in expenditure on
higher education.
Reduced funding from the state and rapid growth of
expenditures lead to rapid obsolescence of equipment
and buildings of higher education institutions and the
stock of educational library, lower requirements for
the qualification of teaching staff, lack of advanced
scientific equipment and teaching materials, etc. In this
context, many countries around the world have tried
to follow the example of the USA and use their
experience of expanding the financing of higher
education institutions at the expense of students or
interested individuals, organisations and firms. These
changes in the funding structure have led to dramatic
differences in tuition fees in the rest of the developed
world.
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International Journal Of Management And Economics Fundamental
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04
ISSUE
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39-46
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
At the same time, the state norms on the responsibility
of higher education institutions for the results of their
work were tightened. The system of evaluation of
higher education institutions and monitoring of the
fulfilment of their objectives made it possible to link
the financing of individual higher education institutions
to the results of their activities. In line with the results
achieved in this respect, the policy of planning and
distribution of financial resources among higher
education institutions plays a key role in financing their
activities for the next ten years.
It should also be noted that there is an increasing
realisation of the need to reform higher education in
the countries of the European continent following the
model implemented in the USA and the UK. Therefore,
many European countries are taking appropriate
measures in this direction. For example, as early as
1997, Finland introduced a model of education
financing that takes into account the results of higher
education institutions' activities. Approximately 3 per
cent of the total budgetary funding of higher
education institutions was allocated on the basis of the
results of the assessment of results and achievements.
The performance of higher education institutions was
compared in five areas: the ability of higher education
institutions to attract foreign funding; the position of
higher education institutions in the ranking on the
replacement of students and teaching staff; the
efficiency of adult education services; the demand for
higher education graduates on the labour market; the
success of higher education institutions in terms of the
quality of teaching and research.
As in the UK, governments in Finland and other
European countries are trying to find a balance
between institutional autonomy policies for higher
education institutions and performance assessment
policies. Universities in Germany, Sweden, Denmark
and Austria have been given greater financial
autonomy over the funding of programmes and grants
in exchange for tighter monitoring of results. And the
Netherlands has introduced a special mechanism for
research funding, which is assessed on a special scale.
At the end of the 1990s, a funding mechanism for
higher education institutions based on the assessment
of quality and performance was introduced in two
Canadian provinces, Alberta and Ontario. This is, on the
one hand, the result of the influence of the experience
of the USA and Western European countries, and, on
the other hand, the consequence of budget cuts and
the expansion of the higher education sector.
The Alberta assessment system includes ratings for
quality, research, and effectiveness. Universities that
rank highly in the relevant ratings receive funding of
2.75 percent or $6.05 million, with the potential for an
increase up to this amount. In the province of Ontario,
the government decided that starting in 2000, higher
education institutions would allocate more than 6% of
their annual funding based on performance
evaluations according to the following three criteria:
normative requirements for graduates; employment
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OCLC
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1121105677
Publisher:
Oscar Publishing Services
Servi
rules for graduates; and meeting the needs of
graduates and employers.
Under the new funding scheme, approximately $16.5
million is planned to be distributed among universities.
Thus, the Government of Canada aims to direct
universities toward the country's economic needs and
increase their accountability for their performance.
CONCLUSIONS
In conclusion, it should be noted that the experience of
using the system of financing higher education
institutions based on the assessment of their
performance is characterized by the following two
general trends in the above-mentioned countries of
the Organization for Economic Cooperation and
Development:
- firstly, the new financing system leads to tension in
relations between the state, on the one hand, and the
university administration and teachers, on the other.
The state gives priority to indicators measuring
institutional efficiency, the degree of satisfaction of
society's need for personnel, employment of
graduates and use of resources. In turn, the university
administration and teachers support evaluation
methods that reflect the specifics of their experience
and the mission of specific higher education
institutions;
- secondly, the relationship between the state and
higher education institutions is changing, universities
are participating in making financial and economic
decisions. This is a huge change. Some higher
education institutions are given greater rights to
control their programs and budgets, while the state
reserves the right to directly intervene in the higher
education system in order to improve economic
efficiency, the quality of personnel training, the level of
public education, and the responsibility of the
management of higher education institutions.
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Publisher:
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