Challenges of Financial Management of the Higher EducationInstitutions in Georgia

Abstract

The funding of the higher education institutions and its efficient management
affects the functioning of the whole system. The level of development of an
education and science has an important role in the economic development of
the country. Georgia has enough potential to achieve economic development
by intellectual and educated human resources. Despite the reforms
implemented in the recent years, there are still many shortcomings and
challenges left in the education system that are hindering the creation of welleducated
and competitive human resources. Without strengthening the
education system, it is impossible to participate in a global competition. The
increasing of financing of the education system over the years does not mean
raising the quality of education. Developing the correct strategy and tactics of
the reform and adequate and efficient distribution of financial resources is
crucial. The aim of the paper is to study impact of the existing funding policy
on higher education system in Georgia. The structure and dynamics of the
funding of the higher education institutions, the nature and importance of the
already funded projects are examined in the study. The issue of promotion of
development of education through the reforms implemented in the education
system is also discussed and analyzed in it. The study is based on the
qualitative and quantitative analyses. The recommendations issued within
the framework of the study will support stakeholders to overcome the current challenges and improve financial management policy of higher education institutions.