Volume 03 Issue 05-2023
6
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
ISSUE
05
Pages:
06-14
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
ABSTRACT
This article discusses the challenges and opportunities involved in transitioning state universities in Uzbekistan to a
decentralized corporate governance model. Drawing on international experiences and local context, the article
examines the importance of reducing state funding, providing support for universities, and developing new forms of
accountability and transparency. The article also highlights the potential benefits of decentralized governance,
including greater efficiency and innovation. The article concludes by emphasizing the need for careful planning and
effective support mechanisms to facilitate a successful transition.
KEYWORDS
Decentralized university governance, state universities, Uzbekistan, transition, accountability, transparency,
innovation, funding, support.
INTRODUCTION
Uzbekistan has been undergoing a series of higher
education reforms since 2016, aimed at modernizing its
higher education system and ensuring state
universities are better equipped to meet the needs of
the 21st century (UNESCO, 2021). One of the key
components of these reforms has been the granting of
financial and academic autonomy to 40 state
universities (Decrees of the President of the Republic
of Uzbekistan, 2021). This transition to decentralized
university governance is part of the higher education
reforms aimed at improving the sustainability and
Research Article
NAVIGATING THE TRANSITION TO A DECENTRALIZED GOVERNANCE
MODEL FOR STATE UNIVERSITIES IN UZBEKISTAN
Submission Date:
May 05, 2023,
Accepted Date:
May 10, 2023,
Published Date:
May 15, 2023
Crossref doi:
https://doi.org/10.37547/ijmef/Volume03Issue05-02
Alisher Khasanov
Adjunct Professor At Webster University In Tashkent, Uzbekistan
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 03 Issue 05-2023
7
International Journal Of Management And Economics Fundamental
(ISSN
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2771-2257)
VOLUME
03
ISSUE
05
Pages:
06-14
SJIF
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MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
quality of education in Uzbekistan and making state
universities more competitive on the global arena.
However, successfully transitioning from a centralized
state governance model to a decentralized university
governance model in Uzbekistan will require
overcoming several obstacles. These challenges
include issues related to institutional capacity,
bureaucratic inertia, and resistance to change (World
Bank, 2020).
Decentralized corporate governance models have
been gaining popularity in the higher education sector
in recent years, as they offer several advantages over
centralized models, such as greater efficiency,
innovation, and responsiveness to stakeholders' needs
(Gulbrandsen, 2019). In Uzbekistan, the government
has initiated a series of reforms aimed at transitioning
state universities to a higher level of autonomy, which
involves a shift towards a decentralized corporate
governance model (Khasanov, 2023a).
Decentralized
governance
models
give
more
autonomy to academic departments, faculties, and
other units, allowing them to make decisions that are
more responsive to local needs and priorities. This
approach to governance is seen as a way to promote
academic freedom, innovation, and excellence, and to
improve the overall quality of education and research
(Marginson, 2012; Tsai & Yang, 2018).
The importance of this topic is underscored by the fact
that higher education institutions play a critical role in
driving economic growth and development, creating
new knowledge and technologies, and training the
next generation of leaders. As such, it is essential to
ensure that these institutions are well-governed and
effectively managed. However, the transition to a
decentralized corporate governance model is a
complex process that requires careful planning,
effective communication, and support mechanisms.
In this article, we will examine the challenges and
opportunities
involved
in
transitioning
state
universities in Uzbekistan to a decentralized corporate
governance model. We will begin by providing an
overview of the benefits of such a model, including
greater efficiency, innovation, and responsiveness to
stakeholders' needs. We will then discuss the
challenges involved in the transition, such as reducing
state funding, developing new forms of accountability
and transparency, and adapting to new legal and
regulatory requirements.
Drawing on international experiences, we will provide
examples of successful transitions to a decentralized
corporate governance model in other countries
(Gulbrandsen, 2019) and highlight the lessons that can
be learned from these experiences. We will also
examine the specific context of Uzbekistan and the
challenges and opportunities that exist in this context
(Khasanov, 2023a).
Overall, this article aims to contribute to the growing
div of literature on decentralized corporate
governance models in higher education and to provide
practical
insights
and
recommendations
for
Volume 03 Issue 05-2023
8
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
ISSUE
05
Pages:
06-14
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
policymakers, university administrators, and other
stakeholders involved in the transition process. By
doing so, we hope to help facilitate a successful
transition to a decentralized corporate governance
model that will ultimately improve the quality and
efficiency of higher education institutions in
Uzbekistan.
Decentralized University Governance
Decentralized university governance refers to a model
of governance in which decision-making authority is
distributed across various academic units, rather than
being centralized in a single administrative div. This
approach to governance is based on the principle that
academic units are best positioned to make decisions
that are responsive to local needs and priorities, and
that this autonomy can promote academic freedom,
innovation, and excellence (Marginson, 2012).
Transitioning to higher levels of independence in
university governance by granting greater autonomy
to universities enables them to better respond to the
needs of their students and stakeholders. This shift in
governance allows universities to be more flexible and
innovative in their academic and administrative
practices and to develop programs that are more
relevant to the needs of the labor market (World Bank,
2020). Moreover, academic autonomy allows
universities to become more research-oriented,
promoting knowledge creation and dissemination,
which can help to develop a more dynamic and
responsive higher education system that can adapt to
the rapidly changing needs of the global economy
(Khasanov, 2023a).
In addition to these benefits, granting autonomy to
universities can also improve the quality of education
within the country. Universities will be able to establish
their own admission requirements, academic staff
qualifications and standards, which can help to ensure
that students receive a higher quality education.
Furthermore, financial autonomy can encourage
universities to become more self-sufficient, allowing
them to generate their revenue and allocate resources
more efficiently. This, in turn, can help to reduce the
burden on the government and create a more
sustainable higher education system in Uzbekistan.
Examples of universities that have successfully
implemented decentralized governance models
include the University of British Columbia (UBC) in
Canada, the University of California, Berkeley in the
United States, and the University of Melbourne in
Australia. At UBC, for example, the university has
implemented a model of governance that gives
faculties a greater degree of autonomy to make
decisions related to academic programming, research
priorities, and resource allocation. This approach has
been credited with promoting innovation and
excellence in research and teaching, and with
improving the overall quality of education at the
university (UBC, n.d.).
Volume 03 Issue 05-2023
9
International Journal Of Management And Economics Fundamental
(ISSN
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2771-2257)
VOLUME
03
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05
Pages:
06-14
SJIF
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FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
The benefits of decentralized governance are many. By
giving academic units a greater degree of autonomy,
universities can promote academic freedom and
innovation. This approach can also help to ensure that
decisions are made in a more timely and responsive
manner, as academic units are better positioned to
respond to local needs and priorities. Additionally,
decentralized governance can help to promote a sense
of ownership and accountability among faculty and
staff, as they are more directly involved in decision-
making processes (Clark, 1983).
However, while there are numerous benefits to
decentralized university governance, transitioning to
this model can also present challenges. One of the
main challenges is related to accountability. With
decision-making authority distributed across various
academic units, it can be difficult to ensure that
decisions are being made in a way that is consistent
with the overall goals and priorities of the university.
Additionally, communication can be a challenge, as
academic units may have different priorities and
perspectives that can make it difficult to reach
consensus on important decisions. Finally, resource
allocation can also be a challenge, as academic units
may have different needs and priorities that can make
it difficult to allocate resources in a fair and equitable
manner (Marginson, 2012).
Despite these challenges, many universities around the
world have successfully implemented decentralized
governance models and have seen significant benefits
as a result. In the next section, we will examine some
of the challenges that universities may face in
transitioning to a decentralized governance model and
will discuss some strategies for addressing these
challenges.
Challenges of transition
Transitioning to a decentralized corporate governance
model for state universities in Uzbekistan may face
significant challenges, including resistance to change,
lack of understanding of the role of the corporate
div, power struggles between stakeholders, lack of
resources, and compliance with legislative and
regulatory requirements.
Resistance to change is a common challenge when
implementing organizational changes, even minor
changes can cause significant difficulties, and major
changes can be met with active resistance (Kotter &
Schlesinger, 2008). Stakeholders most affected by the
reforms will experience a higher level of stress, which
may cause feelings of insecurity and enhance the effect
of rejection and subsequent resistance to change.
Some stakeholders will actively resist the changes,
seeing in the new corporate governance model their
fears, disbelief, and inability to cope with the tasks set
and achieve the strategic goals (Kotter & Schlesinger,
2008).
Additionally, a lack of understanding of the role and
tasks of the corporate div can reduce the
effectiveness of the work of university supervisory
boards (Chowdhury & Lang, 2016). This can slow down
Volume 03 Issue 05-2023
10
International Journal Of Management And Economics Fundamental
(ISSN
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VOLUME
03
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SJIF
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(2021:
5.
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)
(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
their activity, and discredit new management models
of state universities.
Transitioning to decentralized management may lead
to a power struggle between different stakeholders,
resulting in conflicts and a lack of coordination in the
management model (Hillman & Dalziel, 2003). During
the reforms, there is a break in existing processes and
connections, which will be the next challenge in
conducting reforms. Decentralized management can
lead to disruption of communication between various
management bodies and stakeholders, historically
formed in state unitary management. This can lead to
confusion and a lack of clarity regarding decision-
making processes, which in turn will result in delays in
decision-making.
In
conducting
reforms
and
transitioning
to
decentralized management, it will also lead to a power
struggle between different stakeholders. Due to the
redistribution of functions and duties of higher state
bodies, as well as the imposition of more functions on
the supervisory board, there will naturally be a
redistribution and shift of the center of power, which
in some cases can lead to conflicts and lack of
coordination in the management model (Hillman &
Dalziel, 2003). Therefore, it is crucial to understand and
control this process, not allowing it to destructively
affect the creative process of creating a new corporate
governance model.
Furthermore, the lack of resources, including financial
and technological resources, may be a significant
obstacle to the reforms. To carry out large-scale
reforms, which aim to improve resource efficiency and
provide state universities with greater self-financing
opportunities, implies a phased reduction in funding
from the state and stimulating state universities to
search for additional alternative sources of financing
for their daily and long-term activities. Given the fact
that state universities in Uzbekistan have never been in
a situation requiring them to independently search for
resources for their activities, their DNA lacks the
knowledge,
skills,
and
experience
to
be
"entrepreneurs" and take risks independently in
finding new partners and sources of additional
financing,
as
the
cornerstone
of
long-term
development and success of the university (Bennett,
2010).
Moreover, transitioning to new standards of
decentralized corporate governance may pose
challenges in understanding and complying with
legislative and regulatory requirements, particularly if
disagreements arise between corporate governance
bodies and involved parties (Chowdhury & Lang, 2016).
Therefore, it is necessary to define and approve in
regulatory legal documents the goals, functions, and
responsibilities, mechanisms for periodic assessment
of activities, and requirements for passing training
programs and professional development for all
participants of university supervisory boards.
Overall, addressing the challenges and issues discussed
in this paper is crucial to the success of transitioning to
Volume 03 Issue 05-2023
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VOLUME
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(2021:
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(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
a decentralized corporate governance model. It is
essential to redefine the role of higher state bodies,
change their functions from controlling to monitoring,
and conduct training programs, retraining, and
professional
development
of
state
div
representatives involved in the future decentralized
corporate governance model of state universities
(Bennett, 2010).
CONCLUSION
In developing a methodology for transitioning to a
decentralized corporate governance model for state
universities in Uzbekistan, it is important to understand
that as a complex process of change, it implies
probable difficulties and problems that may arise
during the transformation (Khasanov, 2023b). From
this, it can be concluded that the success of reforms to
transfer state universities to a higher level of self-
financing will depend, among other things, on the
phased reduction of funding from the state budget as
an incentive for universities to search for alternative
sources, as well as support for state universities with
professional and technological knowledge, which will
help universities more quickly acquire the necessary
experience in building partnership relations with
external stakeholders, attracting financing, and more
efficient management of their resources. It is also
essential to mention that universities worldwide are
centers for creating innovative knowledge and
technologies, which brings additional resources for
financing scientific and innovative activities and
strategic development of universities.
Transitioning to a higher level of autonomy, on the one
hand, implies a higher level of independence, however,
due to involving a larger number of stakeholders,
increasing transparency in university activities, and
providing more open information about the activities
for periods and future plans for strategic development
and expansion, this entails a transition to new forms of
accountability, not only for state authorities but also
for new participants, which will cause difficulties in the
adaptation period and developing new approaches
and forms of accountability, especially when forming
new legal and regulatory requirements in parallel and
lacking clarity regarding roles and responsibilities of
the parties.
Addressing the aforementioned issues and challenges
is part of the transformation process and the "growth"
of universities in their transition to an independent
model of decentralized corporate governance, which
will subsequently ensure increased efficiency of their
internal management structures to meet the needs of
their stakeholders and achieve their goals. As
Uzbekistan has only recently started its reforms within
the overall transition of the higher education system
towards a higher level of efficiency and university
autonomy, it can be expected that the process of
transition will take from one to two decades, as it will
require dramatic changes in the culture of university
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Publisher:
Oscar Publishing Services
Servi
autonomy and construction of a new university
governance system in Uzbekistan.
Furthermore, it is worth noting that successful
transitions to a decentralized corporate governance
model have been observed in various countries, such
as the United States, Canada, and the United Kingdom,
among others (Gulbrandsen, 2019). In these countries,
the transition was facilitated by the development of
clear
legal
and
regulatory
frameworks,
the
establishment of effective communication channels
between different stakeholders, and the availability of
financial and technical support for universities.
Therefore, Uzbekistan can learn from these
experiences and adapt them to its own context to
facilitate its transition to a decentralized corporate
governance model.
In conclusion, the transition to a decentralized
corporate governance model is a complex process that
requires careful planning, clear communication, and
effective support mechanisms. While the process may
be challenging, successful transitions in other
countries demonstrate that it is possible to achieve.
Uzbekistan can learn from these experiences and
adapt them to its own context to facilitate its own
transition to a decentralized corporate governance
model that will ultimately contribute to the efficient
management of its state universities and the
achievement of their goals.
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Oscar Publishing Services
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