Abstract

Relevance. The study examines higher education financing systems in OECD countries and Kazakhstan, analyzing the contributions of different funding sources. This is relevant as education funding impacts access, quality, and economic development.

Purpose. The main goal of the study is to determine the share of participation of the state, the private sector and other entities in financing the higher education system in the OECD countries in comparison with the Republic of Kazakhstan.

Methodology. The research used economic and statistical methods, comparative analysis, and expert evaluation. Data was gathered from OECD, World Bank, UNESCO, and Kazakhstan government reports and statistics.

Results. The study found four main models of higher education financing among OECD countries, varying in tuition costs and student support. Most OECD countries spend over 1.5% of GDP on higher education, with the public sector as the main funder in European countries. Kazakhstan spends only 0.3% of GDP on higher education, with 70% of students self-funding their education.

Conclusions. Kazakhstan's higher education financing system provides limited government support and low tuition fees, resembling the fourth OECD model. To improve competitiveness, Kazakhstan needs to increase investment in higher education and human capital development, expanding funding sources and mechanisms based on OECD country experiences. The current grant allocation system is not equitable for low-income students and needs reform.

Keywords: higher education; state funding; private sector; state budget expenditures

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