While looking at options for higher education, Latvia’s Ministry of Education and Science (IZM) mentioned the option of terminating budget and paid spots in higher education institutions. Instead the ministry considers implementing a co-payment system for most students, the ministry reports.
To promote accessibility, quality and development of higher education in the country, IZM has developed a conceptual report on higher education financing.
The ministry claims that it will offer a more socially fair model. This model provides partial state support for all students of higher education institutions instead of budget and paid spots. The ministry also suggests fully financing higher education from the state budget based on social criteria and STEM, healthcare and graduates of pedagogy.
IZM’s proposal is for a gradual, seven to ten year period of time, transitioning to a fully state-financed higher education. During this transition period there will be partially state-financed (co-payment) financing system.
The ministry notes that analysis from local organisations and international experts indicate that, despite certain accomplishments, Latvia chronically does not use the potential of its higher education.
If this potential remains unrealised, Latvia will fall behind other countries due to insufficient human capital. The existing situation also contributed to socio-economic inequality, which will promote social fragmentation in a long-term perspective. Latvia already has a high level of inequality. Without using education as the engine driving national economy and an element of a far-sighted social policy, the country’s development cannot reach its full potential, which affects the quality of life of all residents.
To reduce these risks and promote Latvia’s economic and social development, IZM believe it is necessary to implement complex structural solutions in higher education focused on three directions: management, funding appropriate for goals of this police, and human resources.
The ministry reports that until now there have been reforms aimed at internal management of higher education institutions, science financing, a new model for doctorates is in the works. On top of that, officials are also working on a new academic career model.
In order to successfully reform the higher education sector and change it in accordance with goals of state development and international competitiveness, it is necessary to improve the higher education financing system, which will help promote education quality, accessibility, as well as effective use of resources, the ministry believes.
In order to do this, the ministry proposes developing the existing three-pillar model, improving its strong sides and correcting the weak parts. The primary goal is improving the system’s quality through resource availability and change the focus from process to results.
IZM proposes introducing social budget spots for low-income students, guaranteeing anyone with this status free studies at state higher education institutions.
As for STEM, both full and part-time students could be provided with state-guaranteed co-financing. The co-payment from students would be EUR 600 per school year. The state may cover this expense if the student graduates.
IZM’s proposed concept plans that contributions from employers who finance their employees’ studies or pay a stipend will no longer be applied with PIT.
This way IZM expects employers would be more interested in investing into higher education and new students would be able to consider the quality of different education programmes based on the readiness of employers to pay for them. Already PIT is no longer applied to payments for employees’ education courses. This means it is necessary to introduce unified principles.
The new higher education financing model provides for the state doubling investments into higher education by increasing state financing per student and increasing the funding available to higher education institutions.
One of the planned support actions to help enhance excellence is the participation of Latvian higher education institutions in European Universities Initiative.
IZM plans to start implementing the plan starting with 2023/2024 school year.