The Institutional Impacts of Financial Inadequacy and Financial Inefficiency of Public Universities in Ethiopia: the Case of Bahir Dar 44 University

Kibrom Mengistu Feleke

Abstract


Over the last ten to fifteen years, there have been significant increases in the number of universities and student enrollments in Ethiopia. The numerical gains have increased access to universities and diversified fields of studies. This rapid expansion has not been, however, accompanied by commensurate funding increases. This article briefly presents the financial context (resource allocation, financial adequacy and efficiency) under which public universities operate in Ethiopia. The study employed a qualitative case study approach and used data from a single public university (Bahir Dar University) as a case university to assess and analyze how financial constraints and inefficient use of available resources have been affecting the core institutional missions and operations. Data were gathered using semi-structured interview and document analysis. Overall, the study found that there have been significant financial constraints for the key institutional activities in the case university. On top of this, the institution was poor in its financial management system and as a result unable to efficiently utilize the available resources and the existing degree of financial autonomy. Consequently, the major institutional activities, the quality of teaching learning and research work were seriously affected. Of all, research work was, however, found to be the single most seriously affected mission of the university.

Keywords


Ethiopia; financial efficiency; funding; higher education; public university

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References


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