CHANGING POLICIES AND DILEMMAS IN HIGHER EDUCATION FINANCE: THE HUNGARIAN SITUATION AS COMPARED TO THAT OF OTHER EASTERN EUROPEAN COUNTRIES

Abstract

Political change and declining economies have forced the higher education systems of the countries of east and central Europe to undergo restructuring, in particular to develop new financing mechanisms and to permit the emergence of private higher education. The Hungarian experience is described with reference to the situations in Poland and Czechoslovakia. Reference is made to the “base and addition” model of higher education finance as it evolved in eastern Europe beginning in the 1950's. This model went into crisis in the 1980's because it failed to encourage institutions to search for sources of funding other than government grants. In the post‐Communist situation, new types of funding mechanisms are being explored in the three countries. Czechoslovakia has so far made the fewest fundamental changes because of the relative strength of its economy. Poland has adopted a policy of professional co‐ordination for academic survival. Hungary is experimenting with professional and market co‐ordination.