MES Working on New Model of Higher Education Financing

Giorgi Amilakhvari, the Minister of Education and Science of Georgia met with HEIs representatives to discuss the performance-based model (PBF) of higher education financing.

The performance-based model for higher education financing has been developed with the World Bank’s support within the I2Q Project. It is in line with the national goals and strategic priorities of higher education.

The development of the PBF model was preceded by the diagnostic studies conducted by the international consultant company with the involvement of the MES and HEIs. As a result of the studies, the challenges have been outlined in the existing financing system and defined the requirement to reflect national strategic goals and accountability mechanisms in the financing model.
The meeting participants discussed the PBF model, administrative mechanisms of financing with the use of blockchain technologies, and the KPIs catalog. The KPI catalog is used for individual agreement with each HEI, which, taking into account the principle of autonomy of institutions, serves to keep a balance between national goals and public accountability and strategic decision-making and responsibility at the institutional level.

Each HEI can choose indicators and goals from the KPIs catalog corresponding to their mission, strength, and profile according to their national goal. It will allow each institution to contribute to achieving its agreed national goals and receive finances from the state. This kind of approach reflects the diversity among institutions in mission, academic programs, emphasis on teaching and research, etc.

Implementing the PBF model and piloting the blockchain model in its administrative mechanisms is scheduled by 2025.