From financial autonomy to performance-based funding for sustainable development financing of higher education institutions in Uzbekistan

Abstract

The expansion of HEIs in Uzbekistan has generated a new finance problem: universities must expand access, develop research capacity and modernise infrastructure with still-constrained public budgets. This paper presents a policy-oriented model relating financial autonomy to sustainable development funding of HEIs during Uzbekistan's shift from cost-based to rating-linked performance funding. The study presents the Financial Autonomy and Development Capacity Index (FADCI), combining revenue autonomy, expenditure flexibility, research financing, infrastructure capacity and governance readiness, corroborated by expert AHP weighting and piloted on six HEIs. The analysis suggests that performance-based funding from 2027 is likely to promote sustainable development financing only if autonomy is combined with transparent data, equalisation, internal audit capacity and mission-sensitive metrics. The methodology can be replicated by emerging higher education systems moving from budget dependence to accountable financial autonomy.