Ensuring Financial Stability in Non-State Higher Education Institutions: Theoretical and Practical Foundations of A Mandatory Reinvestment Policy

This article analyzes a newly proposed regulatory framework aimed at ensuring the financial stability of non-state (private) higher education institutions through a mechanism of mandatory reinvestment of a specified share of net profit. According to the proposed system, institutions are required to reinvest at least 80 percent of their net profit during the initial five-year period, and no less than 50 percent in subsequent years, back into their core educational activities. The study evaluates the institutional foundations, economic efficiency, and impact of this policy on financial sustainability using theoretical approaches and economic modeling. In addition, a comparative analysis with international practices is conducted to identify the strengths and potential limitations of the proposed mechanism.