Any changes in the financing of higher education and material support to students require a political decision. This decision should be based on accurate information about the target group, otherwise one can doubt the effectiveness of the use of the financial resources. Financial effectiveness (ratio between investment and result) should not be mixed up with an excessive economy, which may affect the quality of education (Altbach & Johnstone, 1993: 8). Effective-ness of financial investments in education does not mean maximizing the profit, but contributing to the public good. The public goal of student support policy should be clear from the very beginning, otherwise it
29In the tender process to issue state-guaranteed student loans, the winner was Hansabanka, which offered the average six months RIGIBOR rate plus 0.87%. It is approximately 7.68% per year (FM, 2001).
will be difficult to establish whether the implemented system attains the set goals (Woodhall, 1987).
This article offers only some possible ways to pro-mote equal access to higher education. Experience of other countries proves that there is no perfect model.
However, the difficulties of the present situation should not be tolerated, but should be overcome by way of designing other policies.
At present Latvia is experiencing growth in the number of students and tuition fees in the higher edu-cation institutions, while the number of state financed study slots remains almost unchanged. Nothing sug-gests that the situation will change in this respect.
However, social stratification in Latvia is becoming more pronounced.30 The financial support program for students in Latvia is still based on the approach of those times when higher education was entirely financed by the state, all successful students received scholarships and the existence of poor and rich in society was not recognized. The current system of stu-dent loans does not fill the gap between the wealthy and the needy young people to acquire higher edu-cation. This problem, if not addressed, will create new problems and social tensions.
It can be expected that changes in the principles governing the granting of loans to students will cause anxiety in a certain part of the population who might be concerned about the fact that students from rela-tively wealthy families will not get the public scholar-ships, and that these resources will be redistributed to needy students. Any change will be unpopular in some part of the society. But from the investment point of view, the small public scholarship budget could be distributed more effectively, taking into con-sideration the needs of the poor students.
Further, more effective investment of public funds could be achieved by changing the entire procedure for financing the study slots. Instead of distributing public funds among the higher education institutions, which then accept students in state-financed study, scholarships should be directly granted to students to
cover the costs of one study year. Students should apply for the scholarship each consecutive year. The state could set specific criteria for granting the schol-arship, thus implementing both social policy, as well as state order in the higher education.
If scholarships and loans were to flow directly to individual students, public expenditures would be uti-lized more effectively, since the students would have higher individual responsibility for their academic achievements. The data on rotation of highly success-ful and less successsuccess-ful students in the University of Latvia show that, many of those who have been included in the budget groups are not able to remain among the best and continue their studies in the budget groups (Prse, 2002). This means that the higher education institutions, which do not provide for student rotation, do not spend the public resources for the education of the very best students. Conse-quently, investment of public resources does not yield the maximum result.
However, to implement the changes described above, the public policy on financing the higher edu-cation should be radically changed. Resistance might be expected from certain parts of the society and pub-lic higher education institutions. And no matter how effective the anticipated reforms are, they cannot sub-stitute the lack of funds for higher education31. Accord-ing to the research data, lack of financial resources may cause the failure of the reform itself (Reimers &
McGinn, 1997: 67).
However, from the perspective of purposeful investment of public (tax-payer’s) resources, it is worthwhile to answer the question what exactly the state is financing and why, when it allocates funding to the higher education. If the only criterion is student academic achievement, then it is necessary to find out whether the outcome corresponds to the investment.
Perhaps changing the principles governing the provi-sion of material support to students could improve the outcome of the public investment and promote equal access to higher education.
30It is proved by the increase of Gini coefficient in Latvia (Programma, 1998).
31From 1995 to 2000 the ratio of higher education financing in the gross domestic product decreased (IZM, 2001b).
References
Altbach, P. G, Johnstone, D. G. (Eds.) (1993). The Funding of Higher Education: International Perspectives. New York:
Garland Publishing, Inc.
Apinis M. (2002, 02.06.). Vald¥ba pagaidÇm neplÇno budÏeta groz¥jumus pa‰vald¥bu aizdevuma limita
palielinÇ-‰anai.R¥ga: LETA.
Augstskolu likums (1995, 17.11.). Likums “Augstskolu likums”. Latvijas Vïstnesis, R¥ga.
Barr, N. (2001). The Welfare State as a Piggy Bank. Infor-mation, Risk, Uncertainty and the Role of the State.New York: Oxford University Press.
Cauce D. (2002, 06.02.). Nodok∫u mÇkonim sudraba mali¿a.
Diena, R¥ga.
CSP (1996). Izgl¥t¥bas iestÇdes LatvijÇ 1995./1996. mÇc¥bu gada sÇkumÇ.R¥ga: CentrÇlÇ statistikas pÇrvalde.
CSP (1997). Izgl¥t¥bas iestÇdes LatvijÇ 1996./1997. mÇc¥bu gada sÇkumÇ.R¥ga: CentrÇlÇ statistikas pÇrvalde.
CSP (1998). Izgl¥t¥bas iestÇdes LatvijÇ 1997./1998. mÇc¥bu gada sÇkumÇ.R¥ga: CentrÇlÇ statistikas pÇrvalde.
CSP (1999). Izgl¥t¥bas iestÇdes LatvijÇ 1998./1999. mÇc¥bu gada sÇkumÇ. R¥ga: CentrÇlÇ statistikas pÇrvalde.
CSP (2000). Izgl¥t¥bas iestÇdes LatvijÇ 1999./2000. mÇc¥bu gada sÇkumÇ. R¥ga: CentrÇlÇ statistikas pÇrvalde.
CSP (2001a).Dz¥ves apstÇk∫i LatvijÇ 1999. gadÇ. R¥ga: Cen-trÇlÇ statistikas pÇrvalde.
CSP (2001b). MÇjsaimniec¥bu budÏets 2000. gadÇ. R¥ga:
CentrÇlÇ statistikas pÇrvalde.
CSP (2002). CentrÇlÇs statistikas pÇrvaldes informÇcija.
R¥ga (unpublished).
Daugavpils dome (2001). Pa‰vald¥bas stipendiju pie‰˙ir‰a-nas nolikums. Daugavpils: Daugavpils dome (unpublished).
Diena (2002, 23.08.). Jaunie startï ar V¥tolu fonda stipendi-jÇm. Diena, R¥ga.
FM (2001). LR Finansu ministrijas informÇcija. R¥ga (unpub-lished).
FM (2002). LR Finansu ministrijas informÇcija. R¥ga (unpub-lished).
Gr¥numa I. (2002a, 03.04.). Studentu kred¥tus lgs atsvabinÇt no galvotÇjiem. Diena, R¥ga.
Gr¥numa I. (2002b, 23.06.). LU studenti gatavojas rotï‰anai.
Diena, R¥ga.
Gr¥numa I. (2002c, 31.08.). Kvalitat¥vas studijas balsta ar¥
uz¿ïmumi. Diena, R¥ga.
GSE (2002). Database “Student-Parent Costs by Country”, http://www.gse.buffalo.edu/org/inthigheredfinance/index.ht ml (retrieved May, 2002).
Hansabanka (2002). “Hansabankas” informÇcija. R¥ga (unpublished).
IenÇkuma nodok∫a likums (1993, 06.10.). Likums “Par iedz¥-votÇju ienÇkuma nodokli”. Zi¿otÇjs, R¥ga.
Izgl¥t¥bas fonds (2002). Latvijas Izgl¥t¥bas fonda informÇcija.
R¥ga (unpublished).
Izgl¥t¥bas likums (1991, 15.08.). Izgl¥t¥bas likums. Zi¿otÇjs, nr. 31, 1991.
IZM (2001a). Izgl¥t¥bas un zinÇtnes ministrijas informÇcija.
R¥ga (unpublished).
IZM (2001b). PÇrskats par Latvijas augstskolu darb¥bu 2001. gadÇ. R¥ga: Izgl¥t¥bas un zinÇtnes ministrija //
www.izm.gov.lv/lv/Statistika/parskats2001/4.1nod.htm (retrieved 19.04.2002.).
IZM (2002a). Izgl¥t¥bas un zinÇtnes ministrijas informÇcija.
R¥ga (unpublished).
IZM (2002b). Par studiju un studïjo‰o kreditï‰anas pasÇ-kumu izpildes termi¿iem. R¥ga: IZM, 19.03.2002 (unpub-lished).
JaunÇ akadïmija (2002). SabiedriskÇ fonda “JaunÇ akadï-mija” informÇcija. R¥ga (unpublished).
Ka‰a R., LoÏa Z. (2001). Valsts finansïjums augstÇkajai izgl¥-t¥bai un finansu plsmas mehÇnismi. Ce∫Ç uz sociÇlo salie-dït¥bu un labklÇj¥bu. PÇrskats par izgl¥t¥bu LatvijÇ. R¥ga:
Sorosa fonds – Latvija.
Krmi¿a L. (2001, 25.09.). înu c¥¿as augstskolÇs. Mïs.
Lauku Av¥zes ielikums skolïniem un studentiem, Lauku Av¥ze, R¥ga.
LLU (2002). Latvijas Lauksaimniec¥bas universitÇtes infor-mÇcija. Jelgava: LLU (unpublished).
LSA (2001). Studentu sociÇlais stÇvoklis un dz¥ves apstÇk∫i LatvijÇ. SKDS, R¥ga, www.politika.lv (retrieved 27.02.2002.).
MK 180 (1996, 28.05.). The Cabinet Regulation No. 180
“Noteikumi par pa‰vald¥bu aiz¿ïmumiem un garantijÇm”.
Latvijas Vïstnesis, R¥ga.
MK 182 (2002, 12.06.). The Cabinet Regulation No. 182
“Noteikumi par stipendijÇm”. Latvijas Vïstnesis, R¥ga.
MK 334 (2001, 01.08.). The Cabinet Regulation No. 334
“KÇrt¥ba, kÇdÇ augstskolas tiek finansïtas no valsts budÏeta l¥dzek∫iem”. Latvijas Vïstnesis, R¥ga.
MK 336 (2001, 10.08.). The Cabinet Regulation No. 366
“Noteikumi par pa‰vald¥bu aiz¿ïmumiem un galvojumiem”.
Latvijas Vïstnesis, R¥ga.
MK 370 (1999, 05.11.). The Cabinet Regulation No. 370
“Noteikumi par brauk‰anas maksas atvieglojumiem sabiedris-kajÇ transportÇ”. Latvijas Vïstnesis, R¥ga.
NRA (2002, 14.07.). Latvijas Bïrnu fonds pie‰˙ir stipendijas daudzbïrnu Æimenïm. Neatkar¥gÇ R¥ta Av¥ze, R¥ga.
Parex (2002). “Parex” bankas informÇcija. R¥ga (unpub-lished).
Pa‰vald¥bu finansu likums (1998, 03.06.). Likums “Par pa‰-vald¥bu finansu stabilizï‰anu un pa‰pa‰-vald¥bu finansiÇlÇs darb¥-bas uzraudz¥bu”. Latvijas Vïstnesis, R¥ga.
Pa‰vald¥bu likums (1994, 24.05.). Likums “Par pa‰vald¥bÇm”.
Latvijas Vïstnesis, R¥ga.
Programma (1998, 02.12.). PasÇkumu programma demo-grÇfiskÇs situÇcijas uzlabo‰anai. Latvijas Vïstnesis, R¥ga.
Prse I. (2002, 25.09.). RotÇcija. UniversitÇtes Av¥ze, R¥ga.
REA (2002). R¥gas Ekonomikas augstskolas informÇcija.
R¥ga: REA (unpublished).
Reimers, F., McGinn, N. (1997). Informed dialogue – using research to shape education policy around the world.
Praeger.
RTU (2002). R¥gas TehniskÇs universitÇtes informÇcija. R¥ga:
RTU (unpublished).
Studiju fonds (2000). PÇrskats par Izgl¥t¥bas un zinÇtnes ministrijas Studiju fonda darb¥bu 2000. gadÇ. R¥ga: Studiju fonds (unpublished).
Studiju fonds (2001a). 2001. gada publiskais pÇrskats.R¥ga:
IZM Studiju fonds, 18. lpp. (unpublished).
Studiju fonds (2001b). Studiju fonda informÇcija. R¥ga (unpublished).
Studiju fonds (2002a). PÇrskats par Studiju fonda darb¥bu 2002. gada 1. pusgadÇ. R¥ga: IZM Studiju fonds.
Studiju fonds (2002b). Studiju fonda informÇcija. R¥ga (unpublished).
Trapeniece, I., Rungule, R. (2000). Listening to the Poor – Social Assessment of Poverty in Latvia.R¥ga.
Tur¥ba (2002). Biznesa augstskolas “Tur¥ba” informÇcija.
R¥ga (unpublished).
Unibanka (2002). “Unibankas” informÇcija. R¥ga (retrieved 02.09.2002). http://www.unibanka.lv/LV/Pakalpojumi/pie-davajumi/magistrs.htm.
VeA (2002). Ventspils augstskolas informÇcija. Ventspils:
VeA (unpublished).
ViA (2002). Vidzemes augstskolas informÇcija. Valmiera: ViA (unpublished).
VSK (1992). Latvijas statistikas gadagrÇmata 1991. R¥ga:
Latvijas Republikas Valsts statistikas komiteja.
Weifang, M. (2001, Winter). Current Trends in China. Inter-national Higher Education. Vol. 22.
Woodhall, M. (1987). Establishing Student Loans in Devel-oping Countries: Some Guidelines. The World Bank, www.worldbank.org (retrieved September, 2002).
Summary
The relationship between higher education and the economy is an essential issue both for society and the individual. For an individual it is important that after graduating from university, the graduate will have a better chance to get an interesting and well-paid job.
The society’s interest, however, is that higher edu-cation foster economic development. This paper ana-lyzes the employment position of graduates a few months after graduation.
It asks whether the tasks graduates are performing in their jobs are relevant to qualifications gained at the university and whether education has been economi-cally beneficial both for graduates and society in gen-eral.
Eight months after graduation almost all graduates had a permanent job.
The number of cases when the present job of graduates could have utilized lower qualifications compared to those gained at the university were rela-tively small. These findings indicate that there is demand for specialists with higher education in the labor market.
The economic rates of return from undergraduate and graduate education are positive and relatively high compared to other countries.
Introduction
For the development of personality, education can be considered as a lifelong learning process. What are the limits of learning to be set for the human mind, skills and character? But the process of education always proceeds under definite social circumstances and regulations.
At present specialized institutions and organiza-tions are involved in education, and their activities are related to other areas of social life. The economy is one of the essential areas because the process of education aims at the development of individual skills, to be applied in practice.
Economic growth nowadays is an especially essen-tial factor and therefore it is important to maintain effi-cient links between education and the economy. Rela-tions between higher education and the economy should be efficient also because higher education plays a major role in the development of modern technology and the service industry.
A survey of graduates on their positions in the labor market is a method of how to gauge the rela-tionship between higher education and the economy, how to evaluate the current situation and to provide recommendations on how to improve the existing relations. This article is based on the survey “Dau-gavpils University as the Regional Development
Cen-from Daugavpils University
Aleksejs ·¿it¿ikovs (Soros Foundation – Latvia)