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Higher Education Financing

The experience of Kosovo

Prof. Dr. Naim Hasani-Director of Higher Education Department Qamile Sinanaj-Head of NARIC Kosova, Higher Education Department Ministry of Education, Science and Technology Kosovo
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Higher Education Financing: Kosovo


CURRENT MODEL EXPLAINED
Up to 2009Budget of the public institution (University of Prishtina) was planed under the overall MEST budge. Faculties University MEST MEF

In 2009 different approach to finances. Faculties University MEF

The change came as a result of MEST commitment to increase the autonomy of the University.
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Higher Education Financing: Kosovo


Universitys administration invited the faculties to submit the budget proposals for the upcoming year and discussed the priorities. The last years faculty budget was taken as the basis. There were only slight changes from year to year. The Universitys central administration has not applied any formula for the budget allocation within the University. The overall budget proposal went to the Ministry of Finance and Economy. Public money was not available to private institutions.
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Higher Education Financing: Kosovo


New Law on Higher Education

A new Law on Higher Education (nr. 04/L-037) has entered into force on 15 September 2011. Under the new Law, public money would be made available on the basis of: Agreement between MEST and institutions about their strategic plans for the period with these agreements to extend for a longer period of time. A performance agreement between MEST and institutions, which is monitored annually, and allocations will be made by MEST only on the basis of satisfactory institutional performance.

New Low on Higher Education-two aspects of founding

Funding institutions either from public funds (i.e. taxation) from private sources (including students and their families/employers via fees).

Providing student support. Student support can come in the form of either grants or loans.

The new Law gives a general power to the Ministry to make such arrangements.

Higher Education Finance: KOSOVO


Challenges:
Expenditure on HE and R&D in Kosovo is low. The economy is still
weak, considerable weaker than in other countries in the west Balkans and far removed from Western European conditions. (Hllinger, 2010)

% GDP spent on HE, 2008 Kosovo Croatia Serbia Montenegro Slovenia OECD mean 0.60 0.72 0.90 1.10 1.26 1.30

Higher Education Financing: Kosovo


Reform goals: There is increased budget and improved efficiency in execution of the budget in line with the new Law on Higher Education. A major task of MEST is to issue the Administrative Instruction on Financing of the Higher Education Institutions whereby specifying the performance-based budgeting methodology and criteria used in this budgeting system. The Administrative Instruction should specify the reporting and accountability measures associated with the financing. Financing shall be based on a 3-5 year Performance Agreement between the Government and the individual Universities as well as University Strategic Plans that are based on the principles of the performance agreement. Following a one year preparation, MEST shall functionalize this methodology in cooperation with the Ministry of Finance and Universities.

Establish a Higher Education Management Information System the system may provide relevant information on the higher education institutions in Kosovo needed for evidence-based policy making. the system will be useful for planning student quotas in future as well as for financial planning purposes and system and institutional performance measurement and benchmarking.

Study Programs in line with labor market needs Central authorities, through MEST, may ensure the labor market needs are assessed while Universities revise their study programs accordingly as well as develop news ones as needed and possible. The labor market needs assessment may particularly be of use for the eventual development of post-secondary vocational training that new law on higher education enables. Kosovo Accreditation Agency shall use the labor market needs when assessing the quality of programs in terms of relevance of the respective programs. Support is needed in financing the needs assessment, including developing a process and instruments for this to happen on a continuous basis. (MEST Strategic Plan 2005-2015; revised March 2012)

Higher Education Finance: KOSOVO


Concluding thoughts, questions, comments Sharing goals between MEST and institutions, ensuring quality, relevance and innovation Getting the balance right between institutional autonomy and MEST supervision Maintaining public and international donor support for HE development in Kosovo and, above all, Securing more resources for higher education
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Higher Education Financing: Kosovo

World Bank has financed the new Law on Higher Education and is continuing to support its implementation. MEST sees World Bank as a very important partner in improving Kosovos Higher Education Sector and appreciates a lot its commitment.

Thank you for your attention!


Contact: Naim.hasani@rks-gov.net Qamile.sinanaj@rks-gov.net 10

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