Financing Higher Education: Insights from Global Practices
Abstract
The financing of higher education has undergone significant transformation globally, shifting from predominantly public funding to diversified sources including private contributions and endowment funds. Countries such as the USA, UK, Canada, and Australia have established models combining public and extrabudgetary resources, influencing developing nations like Uzbekistan and Kazakhstan. Despite growing interest in financing reforms, limited comparative studies exist on the structural composition and strategic integration of endowment funds and extrabudgetary mechanisms in Central Asian contexts. This study aims to analyze international best practices in higher education financing, with a focus on endowment fund structures, budget allocation models, and the applicability of these frameworks in Uzbekistan. The research reveals that countries with strong endowment systems (e.g., Harvard, Yale, Stanford) leverage alumni donations and investment returns to cover up to 35% of their budgets. In comparison, Uzbekistan is transitioning toward financial autonomy and increased engagement with international donors, introducing dual education models and entrepreneurial finance mechanisms. The novelty of the study lies in its cross-country comparative perspective, highlighting the diversification of funding mechanisms, and proposing structured endowment strategies for Uzbekistan’s higher education sector. The findings underscore the strategic role of endowment funds in sustaining university innovation, quality, and autonomy. Policymakers in Uzbekistan and similar economies can benefit from adopting legal and institutional frameworks that facilitate endowment growth and financial independence in public universities.
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