DIY budgeting: The self-financing experiment in Uzbekistan's universities begins

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Further to my December 2019 post, An Uzbek experiment, the new do-it-yourself funding model for 10 of the country’s higher education institutions (HEIs) has now come into force. All 10 will be under the watchful eye of the Ministry of Higher and Secondary Specialized Education to ensure that prices don’t jump too high, too fast and that standards don’t slip – and most importantly, as one news agency points out, to prevent corruption slipping in.

If cats could account for themselves…

So, as of January 1, 2020, the HEIs, a mix of universities and specialized institutes, are now able to:

  • Set their own tuition fees
  • Introduce new Bachelor’s and Master’s degrees
  • Continue to receive state funding for some students
  • Decide how their institutional budget will be split

This last point is one of the most important, although not getting as much press attention as the excitement generated by the possibility of new courses / fear that fees will be hiked.

Why? Because until now, all HEIs in Uzbekistan had to conform to the rigid model imposed by the government: 46.8% on salaries, 33.1% on scholarships, 11.5% on budget deductions (i.e. retained by the government) and 8.6% on other expenses. So now, if one of the 10 DIY-HEIs wants to increase faculty salaries, buy more computers or offer more student funding, it can do so.

Next door in Tajikistan, where I have been doing interviews with university-based researchers, this self-financing model and the flexibility it provides to set your own budget is seen as a very positive move for the woefully underpaid academics still committed to the academic cause. In Tajikistan (as in some other former Soviet countries), self-financing is offered to universities that obtain ‘national’ status. So far only one university of 35 in Tajikistan has this, but there are others that are keen to upgrade both for reputational purposes and financial flexibility.

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