Public Investment in the Field of Higher Education in Bulgaria. Optimization of the Financial Policies Concerning the Education System in the Country
Public Investment in the Field of Higher Education in Bulgaria. Optimization of the Financial Policies Concerning the Education System in the Country

Author(s): Darina Neycheva
Subject(s): Politics / Political Sciences, Politics, Social Sciences, Economy, Education, National Economy, Higher Education , Public Finances, Fiscal Politics / Budgeting, Human Resources in Economy, Socio-Economic Research
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: higher education; subsidization; positive externalities
Summary/Abstract: Education is believed to be the most important factor for achieving sustainable economic development, which underlines the significance of market mechanisms fundamental for financing higher education. The subsidy of the higher education in state universities in Bulgaria is provided as a compensation given by the society in advance for the future benefits expected by the students. However, the current model of financing has resulted in a surplus of specialists in some areas and shortage of such in others. It is also crucial to consider the inefficiency arising from the fact the majority of people who benefit from the subsidies, and who after graduation decide to leave the country, or to work something completely different from the field of the specialty acquired. There are, of course, some measures taken by the state, as well as other approaches yet to be considered. For instance, optimization of subsidization models, as well as involving the business deeper in the higher education system, which will attract more funds, career opportunities, orientation towards the needs of the job market, and it will also guarantee practicality. Withal, the tuition fees and financial policies should be optimized to foster our economic growth, our social progress and competitiveness, as well.

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