Journal of Entrepreneurship Education (Print ISSN: 1098-8394; Online ISSN: 1528-2651)

Abstract

Public Private Partnerships in Education: Modes of Governance in Developing Economy

Author(s): Gulmira K Issayeva, Anar A Abdikadirova, Zhanna T Aliyeva, Marzhan T Kalmenova, Zarema A Bigeldiyeva, Ainura N Aitymbetova, Zamira U Kudaibergenova, Altyn M Yessirkepova

High schools and their product–a human capital–can be regarded as one of the most important sectors affecting the socio-economic development of the country. The key role here belongs to a public-private partnership of the state and business structures with educational institutions. The relevance of this issue for developing economy is caused by the fact that in terms of financial and economic instability and insufficient amounts of budget funds, attracted for implementation of social projects and programs, there is need to form motivational incentives and create opportunities to attract extra-budgetary sources of funding. As the role of the state in the public-private partnership is not limited by the partner’s role in the interaction, this makes it necessary to analyse tasks and functions of the interrelated parties, as well as their benefits from participation in the public-private partnership projects using the dual education. This paper considers the economic essence of the partnership in terms of harmonizing the interests of the state and business. The public-private partnership in the sphere of higher education is defined as a system of mutually beneficial long-term relations between the state and business with a view of efficient allocation of roles between the partners in the sphere of higher education to improve competitiveness of high schools. The authors used the mathematical theory of games in order to estimate all possible strategies of investment and use of funds both for the state and business associations. Applying the minimal costs criterion, it is possible to develop the decision set matrix in the given interaction structure of the state and business organizations.