CURRENT PROBLEMS OF FINANCIAL ADMINISTRATION MANAGEMENT SYSTEMS IN THE FIELD OF EDUCATIONAL SERVICES

Author

, PhD in Economics, Associate Professor, Kharkiv, Marshal Bazhanov, 17
ORCID ID: 0000‑0002‑5034‑8959

In heading

Economic theory;

Signed print

23.11.2018

Issues number

2018 - № 4 (35)

Page

65-80

Type of articles

Scientific article

Code UDK

338.22:378.31

ISSN print

2411-5584

Abstract

Problem setting. Today, higher education institutions in Ukraine are experiencing an acute shortage of funding. The state funds allocated from the budget and grants received from various funds are not enough to fully support the educational process, especially if this process involves costly research and experiments. In the developed countries of the West, the largest universities live at the expense of both state support and endowment funds formed by private donations. However, in Ukraine, for various reasons, neither individuals nor companies invest in the education system. Therefore, for universities, the problem of increasing competitiveness in the educational services market, finding sources of financing, attracting investors and creating trust funds is coming to the fore.
Recent research and publication analysis. The work of Ukrainian and foreign authors is devoted to the topic of financing the higher education system and its optimization in modern conditions. Savchenko I. G. and Chumak O. V. in their studies are concerned with the modernization of state financing of universities. The works Bogolib TM, Shevchenko L. S., Varnaliy Z . S. and Krasilnik O. V. touch upon the problems of financial provision of education and determining the optimal sources of funding for educational institutions. Lars M. Sondergaard and other scientists consider the policy of Ukraine in the field of education, the level of spending on education in different countries of the world.
Paper objective. The purpose of the article is to analyze the competitive positions of universities in the educational services market and to establish, based on the analysis carried out, the best balance between public and private funding of higher education institutions.
Paper main body. Although since 2010 the number of universities in Ukraine has decreased by almost a quarter, and the number of students has decreased by 40 %, government spending on higher education in the country is very significant. As a percentage of GDP, they are among the highest among Ukraine’s closest neighbors, and even against the background of such developed countries as Germany and the USA. Despite this, Ukraine occupies the last place in the world rankings of education and global competitiveness of universities. In this regard, higher education institutions face the challenge of developing and improving competitiveness in the educational services market, which, in turn, will attract private investors to them.
In order to choose a development strategy, it is necessary to assess the competitiveness of an educational institution, the quality of personnel and the services provided. In assessing competitiveness, a number of factors are taken into account: the importance of education for the population, the universality of education, the applicability of the knowledge gained in professional activities, the cost of education, the quotation of a particular university in Ukraine and abroad, and others. When assessing the quality of staff and the services provided, such parameters as the level of training, the level of academic performance and student learning, the degree of satisfaction of teachers and students with the interaction with the university, the degree of use of information technology, the staff’s desire to improve their skills are important.
The evaluation stage is followed by the choice of a university development strategy based on the data collected. In modern Ukrainian realities, five strategies appear most appropriate: passively maintaining the status quo; updating of educational programs in major specialties; association (merger) with other universities; discovery of new specialties; training specialists in two directions at once.
From the choice of strategy depends on the definition of the source of funding. Universities that prefer to maintain the status quo or plan to merge with other educational institutions require government support. When opening new specialties and training specialists with double diplomas, private investment can be attracted. For educational institutions that have chosen the path of updating educational programs, it is appropriate to rely on mixed funding.
Conclusions. To determine the optimal development strategy that will improve the competitiveness of the university, the level of training of teaching staff and students and attract funding, university management should work in several areas:
1) Monitoring the labor market, identifying the most promising specialties in the market.
2) Providing high quality education at the expense of competent staff.
3) Effective marketing to attract applicants.
4) Activation of interaction with business, cooperation of universities and enterprises of various sectors of the national economy.
5) Managing sources of funding.
The implementation of these tasks will not only give impetus to the development of the university, but will also allow the state to optimize education costs, improve the country’s image on the international market of educational services.
Short abstract for an article
Abstract. The article deals with modern problems of the education system, in particular, the lack of state financial support for educational programs. Involving private investors creates dependency of universities on them. Therefore, the author suggests using mixed funding, in which the share of private and public investment in educational services is determined on the basis of the analysis of the competitiveness of Ukrainian universities.

Keywords

educational services, state financing, university target capital, competitiveness.

Reviewer

External reviewer

Article in PDF

65-80

Bibliography

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20.11.2018