The modern approaches to financing of education

The paper presents global trends associated with changes in approaches to financing higher education system. The author describes the modern mechanisms of state funds allocation, the forms of attracting resources from extra-budgetary sources. The paper describes theadvantages and disadvantages of the traditional model of higher education funding and indirect financing model based on demand. The studyis based on data from the OECD report about the education expenditure in different countries. According to the study the author concludes that the combination of different financing tools is an important condition for the development of higher education in the world.

reform of budget financing, higher education, direct financing ofhigher education, indirect financingofhigher education