DOI: https://doi.org/10.18371/fcaptp.v3i26.143869

THE NEW MODEL OF ECONOMIC ACTIVITY OR PRIVATIZATION OF UNIVERSITIES?

L. S. Shevchenko

Abstract


The author characterizes contradictions of the economic activity in the sphere of higher education related to renovation of a financial mechanism of the education activity and an opportunity of universities to generate own (non-budgetary) revenues. Foreign scientists treat processes concerned with growth of a share of private sources for financing education as privatization of universities. The article generalizes opinions of the scientists in the form of pre-conditions, types, and forms of these processes.   

In Ukraine, involving funds of private persons would foster development of the universities. Nevertheless, this method could not solve even current problems of the universities. Firstly, the Ukrainian higher educational institutions require large sums of money for renovation and expansion of equipment capacity, development of scientific research work and financing other extremely important needs. Only the state can cope with such expenditure. Secondly, an education environment of Ukraine contains numerous traps of private financing caused by the lack of confidence in activity of the domestic higher educational institutions on the part of consumers (payers) of educational services, employers, private investors and potential donators. Private business is the least interested in the development of university education.

The authorex plainst hatsuch distrustis caused by the fact that educational services, by nature, are credence goods: their quality can not bemeasured and evaluated during anapplication proces sand, sometimes, an education process. Applicants may only trust (or do not trust) university rankings, estimates of national agencies for quality control in education, recommendation of specialists, et al. In addition, the very market of educational services is a market with asymmetric and incomplete information. Moreover, behavior of its members may be opportunistic and unfair. The article presents the actual and statistical data to support such conclusions.

The author analyzesat tempts of corporatization of universities in certa in countries and proposes to examine experience of deprivatization of universities in Poland. The implementation of a new model of economic activity of universities requires change in the legal regulation, aswellastimetorealizethesechangesbysociety.

Keywords


highereducation; university; privatization; traps of private financing; deprivatization.

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Copyright (c) 2018 L. S. Shevchenko

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ISSN (print) 2306-4994, ISSN (on-line) 2310-8770