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Forms and methods of state regulation of the sphere of higher education

Mykola Koretskiy
National University of Water Management and Nature, Rivne, Ukraine

Field: Public Administration
Title: Forms and methods of state regulation of the sphere of higher education
Paper Type: Research Paper
City, Country: Rivne, Ukraine
Authors: M. Koretskiy
State educational policy
Modernization
Regulatory instruments
Reform

The "form" of functioning of higher education is defined. Changes of emphasis in public administration of the educational sphere are grounded. Administrative methods used by the state in the sphere of higher education are researched. Thus, observing changes and trends that take place in the sphere of higher education, and evaluating approaches and methods of administration of this sphere, we have obvious discrepancy of form and content. In terms of philosophical concepts, if form hinders the development of content that is attached to it, then at some stage this form will be "broken" and the new one will come on its place. However, if the form is transformed according to changes in content, then a normal evolutionary process takes place. Today the situation with the development of higher education is that the state, regulating all aspects of the educational process, determines the "shape" of functioning of higher education. Administrative methods used by the state in higher education not only do not meet the challenges of time, but also inhibit the development of this strategic sector. Evident is the need to not only to reform and modernize the higher education, but reform and modernize the administration and regulation of this sphere. Only this will enable national high school to gradually become a factor of Ukraine's competitiveness in the global arena.

1. Butenko A., Sarajevo I., Merhut A. (2003). Problems and directions of development in the field of education. Odessa: Institute of Market Problems and Economic-Ecological Research NAS of Ukraine.
2. Dolishniy M., Kutsenko V. (2006). Entrepreneurship in the social sector as a prerequisite for the formation of export-oriented economic policy. Journal Economy of Ukraine, № 8, 10-18.
3. Emelyanova I. (2005). University functions at the modern stage of high school development. Journal Alma Mater (Herald High society school), № 10, 14-38.
4. Kuzhel O. (2004). The role of small businesses in the regional socioeconomic development. Bulletin of Economic Sciences of Ukraine, № 2, 69.
5. Lotman Y. (2004). University, teacher, STR (conversation with professor of University of Tartu). Journal Alma Mater (Herald High society school), № 8, 27-30.
6. Matviyiv M. (2003) Strategic priorities for education in Ukraine. Bulletin TANG, № 5/1, 196-199.
7. Nyyazova M. (2003). Problems of assessing the effectiveness of entrepreneurial activities of budgetary universities. Resource document. Management of University. Practice and analysis № 3 (26). Http://www.ecsocman.edu.ru/univman. Daily access to the journal.
8. Sylkyna N., Sylkyn R. (2006). Trends of development and problems of reforming higher education. Journal Economy education, № 2, 18-24.
9. Tylak J. (2005). Global trends and financing higher education. Journal Alma Mater (Herald High society school), № 2, 5-7.
10. Wynston G. (2006). Subsidies, market power and the learning environment: Features Economy Education. Translation from English Kovaleva A. Journal Questions of Education, № 8, 87.
11. Zubko V, Korsak C. (1999). Problem of higher education – funding. Journal Education and management, Vol.3. № 2, 11-20.

1. Introduction
Comprehensive development of the higher educational institutions needs more attention from the state in the process of modernization of higher education. Nowadays the dependence of the performance of the higher educational institutions on economic factors increases, resource capacity of study and research increases too. On the one hand, state amounts of financing are not able to cover increasing needs of the higher educational institutions, on the other hand, it is necessary to elaborate effective and transparent mechanisms of regulation of their activities outside the budget (incomes). Thus, the social nature of relations in the sphere of higher education and growing dependence of higher educational institutions on economic factors require the formation of mechanisms of state regulation that are adequate to market conditions and the development of a new regulatory state education policy, which would have directed the efforts of higher education on the consistent improvement of its competitiveness.

2. Analysis of recent research
Known scientists G. Becker (1964), J. Kendrick (1976) and T. Schultz (1968) paid attention to the problems of state regulation of the education sphere in the overall context of the development of the knowledge economy. In the works of native scholars L. I. Antoshkina (2005), A. I. Butenko (1985), B. M. Danylyshyn (2005), V. G. Kremen (2000), V. I. Kutsenko (2005) and others specific organizational and economic problems of functioning of the higher education system are highlighted. However, market conditions of functioning of the higher education require the elaboration of new mechanisms of the regulatory activity of the state in the sphere of its administration.

3. Statement of research objectives
– to define the “form” of functioning of higher education;
– to justify the changes of emphasis in the state administration of educational sphere;
– to examine the administrative methods used by the state in higher education.

4. Results
The peculiarity of entrepreneurship in modern conditions is, in particular, that it extends from the sphere of material production to education, science, and culture. Nowadays higher educational institutions are gradually transformed into entrepreneurial structures of public sector. As, on the one hand, their activities include satisfaction of public needs on the basis of outside budget funding (in whole or in part), and, on the other hand, higher educational institutions may be considered as commercial enterprises that offer services to individuals, who use education with a personal purpose with the intention of obtaining additional revenue in the future. Such variant has some advantages in the transitional economic conditions: focus on customer satisfaction, participation in market competition, desire for efficient use of resources.
Numerous allegations of researchers in this field testify for the benefit of that education, market and business are currently closely intertwined with each other, including:
• “Today education is just the same sphere of market relations as industry, construction, finance and credit, and other systems” (Butenko 2003); “In modern society, education is a big business, means of entering the global labor market …” (Matviyiv 2003);
• “Higher education is a business: in this sphere educational services are produced and provided by a certain price and necessary for such activity factors of production are purchased. Manufacturing activity is determined by technological constraints. Costs and revenues stipulate decision making and determine the viability of the higher educational institutions in the long run” (Wynston 2006);
• “governments of many countries are increasingly moving to the position of neoliberal philosophy, emphasizing the role of the market in all spheres of society. In particular, support for private universities, most of which can be interpreted as entrepreneurial organizations, increases” (Tylak 2005);
• “in Ukraine present difficulties motivate in one way or another to use a lot of means of expansion of the number of sources of financing higher education and improvement of the efficiency of resource use – savings and reductions, permission for a number of areas of entrepreneurship of state higher education institutions, the expansion of paid services and all sectors of paid education, etc.” (Zubko 1999).
The entrepreneurial function is inherent not only to the subjects of education market, which are registered as business entities. If we look at private higher educational institution, it is entrepreneurial organization that operates in the market of educational services. However, state higher educational institutions, in which paid services have become widespread, carry out entrepreneurial activities under market conditions. Under the entrepreneurial activity of the state higher educational institution we should understand the initiative, independent, risky activity that brings profit to the higher educational institution and is directed to address its statutory objectives. Niyazova (2003) believes that entrepreneurial activity of the higher educational institution is relatively independent, provided by the charter of the higher educational institution activity, which complies with the legislation on education, in order to obtain results in the form of profit to ensure educational process (Nyyazova 2003). According to M. Dolishniy and V. Kutsenko, entrepreneurship in education in general and in higher education in particular is innovative economic activity aimed at improving its effectiveness in the conditions of limited capacity of resource support from the state (Dolishniy 2006).
Analysis of existing views on entrepreneurship in education allowed to formulate own definition. Entrepreneurial activity of the higher educational institution (according to the content) can be defined as innovation-oriented statutory activity in the market conditions, which aims at improving efficiency of the educational process and quality of educational services through motivation of educational institutions for constant improvement and optimization of the use of material and human resources.
Not only private higher educational institutions (as governed by the Laws of Ukraine “On Education” and “On Higher Education” and the Law of Ukraine “On Entrepreneurship”) and universities, but also other educational institutions may realize an entrepreneurial function.
Entrepreneurship of the state higher educational institution is the type of economic activity of state higher educational institution, which aims to generate revenue from the provision of educational, scientific services and other activities under the current legislation to cover rising costs, with the aim of increasing the competitiveness of higher educational institutions in the educational services market and its graduates in the labor market. Educational entrepreneurship is a special form of entrepreneurship. As a form of economic activity of educational institutions on the educational services market within the legislative field this type of entrepreneurship is aimed at reception of incomes through meeting the demand of target groups of consumers on the basis of independence, responsibility and innovation. In the exercise of the educational entrepreneurship the combination of individual and social benefits occurs. Moreover, priority should be given to the latter.
At this stage of reforming the education system fundamentally new functions – an innovative and entrepreneurial ones – emerge at the universities along with the traditional functions (teaching, research, professional, educational), which necessitates a continuous search for ideas that allow the universities retaining their status, get a new impulse for development (Emelyanova 2005).
Internal university culture by its nature is defined as non-profit, which is characterized by the fundamentality of knowledge, “scholasticism” of teaching, traditions of scientific schools. The knowledge gained by a student at the University can not be restricted to a particular fixed amount; the value is not this size, but the ability to work with information. We agree with Y. Lotman that “the development mechanism” of an individual is laid during the university studies (Lotman 2004). However, this mechanism has to get space for its operation by the state. The state should regulate the primary labor market so that young professionals would be given the opportunity for self-realization and self-actualization.
Actualization of the entrepreneurial function in the activity led to the concept of entrepreneurial university, which features are:
– constant movement, organizational flexibility, adaptability, dynamic, interactive attitude to society (efforts to best respond to the changing needs of the society);
– competence in both academic and administrative spheres;
– the addition of classical tasks (research and training) with such tasks as technology transfer, postgraduate education, higher educational institution’s adaptation to the needs of the labor market;
– continuous improvement of the system of management in the areas such as research and teaching personnel, production of new knowledge is a condition of effectiveness, as well as improvement of the competence of both students and workers of the university.
The authors conclude that the defining feature of the entrepreneurial university is a combination of the educational mission with entrepreneurial management in the system of university governance.
Russian scientists talk about innovation and entrepreneurial model of university, in which the university “actually turns into a scientific and educational-industrial complex with academic core and interdisciplinary design-oriented peripherals consisting of many online innovation and high-tech structures and small businesses that actively deal with orders of local authorities, industry, business and society at large” (Sylkyna 2006).
Higher educational institution, gradually acquiring features of a business entity, must generate a specific infrastructure for entrepreneurial activity. Higher educational institution by providing educational and scientific services incurs expenses to be reimbursed. However, the main purpose of higher educational institution’s operation is not profit, which distinguishes them from purely business entities (enterprises, companies, etc.), for which this goal is crucial.
The Ukrainian legislation also treats profit as the main goal of business activity. However, according to O. Kuzhel this definition “does not fully reflect all the diversity of socio-economic and spiritual nature” of entrepreneurship, but displays only “transformation, the initial state of this economic sector and even contradicts the modern theory of the firm” (Kuzhel 2004). As a result of its activity the subject of entrepreneurship receives not only material gain, but also moral and psychological satisfaction, sense of professional and human self-realization.
O.Kuzhel (2004) quotes American economist, Nobel Prize winner H. Simon in the work “Administrative behavior”, who identified the company as an adaptive system, formulated a theoretical principle that firms set themselves the goal of not so much maximization of profits, but of making optimal management decisions in the market conditions.
To determine the possible directions of entrepreneurial activity of higher educational institution let us outline the main activity directions of higher educational institution under the market conditions (under paragraph 1 of Article 44 of the Law of Ukraine “On Education”):
– preparation, in accordance with state procurement and contracting relationships with legal and physical persons, of highly qualified specialists of different educational and qualification levels for the national economy, science and sphere of education;
– preparation of scientific and technical personnel of higher qualification – candidates and doctors of sciences;
– qualification upgrading of teaching staff of educational institutions, training and qualification upgrading of other specialists of different industries;
– conducting research and activities related to implementation of their results;
– cultural, educational, methodical, publishing, financial, economic, industrial and commercial activity;
– implementation of external relations.

5. Conclusions
As a result of gradual abandonment of methods of administration, new possibilities are opened to higher educational institutions, especially the budget ones, leading to their functioning as economic entities like manufacturing companies. Therefore, economic development of the higher educational institution as a process of improving quality and structural parameters of financial and economic activities of the higher educational institution reflects their ability to qualitatively improve the basic functions. Economic development of higher educational institution is impossible without increasing the share of allocations earned by it. Thus, more attention should be paid to the problems of complex economic development of higher educational institution, which is not confined only to the problems of funding, in the process of modernization of social and economic development. The state must improve the mechanisms of necessity of achievements of higher educational institution’s scientific researches; strengthen the interaction of business, science and education. Given the above, there is a need to rethink the role of educational institutions not only in ensuring economic progress, but also in forming a highly educated specialist and a strong personality, competitive in today’s world.

References
1. Butenko A., Sarajevo I., Merhut A. (2003). Problems and directions of development in the field of education. Odessa: Institute of Market Problems and Economic-Ecological Research NAS of Ukraine.
2. Dolishniy M., Kutsenko V. (2006). Entrepreneurship in the social sector as a prerequisite for the formation of export-oriented economic policy. Journal Economy of Ukraine, № 8, 10-18.
3. Emelyanova I. (2005). University functions at the modern stage of high school development. Journal Alma Mater (Herald High society school), № 10, 14-38.
4. Kuzhel O. (2004). The role of small businesses in the regional socio-economic development. Bulletin of Economic Sciences of Ukraine, № 2, 69.
5. Lotman Y. (2004). University, teacher, STR (conversation with professor of University of Tartu). Journal Alma Mater (Herald High society school), № 8, 27-30.
6. Matviyiv M. (2003) Strategic priorities for education in Ukraine. Bulletin TANG, № 5/1, 196-199.
7. Nyyazova M. (2003). Problems of assessing the effectiveness of entrepreneurial activities of budgetary universities. Resource document. Management of University. Practice and analysis № 3 (26). Http://www.ecsocman.edu.ru/univman. Daily access to the journal.
8. Sylkyna N., Sylkyn R. (2006). Trends of development and problems of reforming higher education. Journal Economy education, № 2, 18-24.
9. Tylak J. (2005). Global trends and financing higher education. Journal Alma Mater (Herald High society school), № 2, 5-7.
10. Wynston G. (2006). Subsidies, market power and the learning environment: Features Economy Education. Translation from English Kovaleva A. Journal Questions of Education, № 8, 87.
11. Zubko V, Korsak C. (1999). Problem of higher education – funding. Journal Education and management, Vol.3. № 2, 11-20.