1. Republic of Macedonia Ministry of Education and Science Borcho Aleksov, Deputy Head Higher Education Sector Ministry of Education and Science Republic of Macedonia 1 Higher Education Financing in the Republic of Macedonia

2. Legal Base for Financing of Higher Education Institutions Financing of the higher education activity Law on Higher Education Higher Education Program Annual financial plans of the higher education institutions Standards and criteria for financing of study programs of public interest 2

3. Financing of the scientific and research and applicative activity Law on scientific and research activity National scientific and research activity program Law on encouraging and assisting of the technological development Program for encouraging and assisting of the technological development 3

4. Competent Authorities and Bodies Financing of the higher education activity Higher education sector Higher education financing council Financing of the scientific and research and applicative activity Science and technical development sector National committee for development of the scientific and research activity and technological development Scientific and research activity council Technological development committee 4

5. Funding Sources Budget of the Republic of Macedonia Co-financing and student participation International financing sources Rendering education services Scientific and expert services Copyright revenues Gifts, legacies, wills 5

6. Distribution of the Funds From the Budget of the Republic of Macedonia in Program 4 – Higher Education Subprogram 40 – regarding new higher education bodies Subprogram 41 – Sts. Cyril and Methodius University in Skopje Subprogram 42 – St. Clement of Ohrid University in Bitola Subprogram 43 – State University in Tetovo Subprogram 44 – Goce Delchev University in Shtip Subprogram 46 – Information Technology University in Ohrid Subprogram 47 – Participation in public and private nonprofit higher education institutions 6

7. Elements in the standards and criteria that influence the amount of funds necessary for realization of the activity: Approved study programs of the higher education institution; Number of study groups, departments and courses; Number of full time students enrolled in the state quota for the first time in the study year; Qualification structure of the staff; Number of graduated students; Net useful area of the higher education institutions facilities; and Necessary managing staff. 7

8. The following items are financed within the framework of the scientific and research activities: Scientific and research programs and projects Scientific and research infrastructure International scientific cooperation Training of scientific and research staff Publishing books, magazines, scientific articles Scientific meeting in the country and abroad Co-financing of development and research projects 8

9. Weaknesses in the current method of the higher education financing The model does not fully comply to the reforms which are result of the Bologna process It does not have clearly stimulation character A new method of financing of the doctor studies has not been identified Weak initiative of the higher education institutions Incompliance of financing of the higher education and scientific and research activities Too many advisory bodies for financing of the activity Students pay too much unnecessary expenses

10. Challenges Redefining the elements (indicators) for provision of finances through quantitative elements of the activity Establishing a sustainable and functional system for data collection in the activity Strengthening of the higher education institutions competitiveness Providing additional funds apart from the Budget – animating the economy Additional modernization and adjustment of the student scolarships

11. Goals of the Upcoming Financing Reforms The new higher education financing model should provide the following: Harmonization with the reforms which are result of the introduction of the Bologna process Monitoring of the results Redefining the study programs of public interests which are being financed Strengthening of the integrative function of the university Internationalization of the higher education Promoting the diversification of the universities missions

12. Functional and socially justified student scholarships system Renewal and/or strengthening of the cooperation with the business and administrative sectors Greater inflows of funds from scientific and research activity and their socially justified purpose Capital investments increase Strengthening of the role of the universities in the local and regional development Promoting and development of the scientific excellence centers Strengthening of the reward system Strengthening of the universities competitiveness in national and international fields

13. Conclusions The existing model is a good base for establishment of the new one An original model based on positive experiences is necessary The model should provide more expedient fulfillment of the universities missions

14. Thank you for your attention. borco.aleksov@mon.gov.mk