Transforming Kazakhstan's Public Universities through the Implementation of a Corporate Governance Approach

: Insights from Elite Interviews

Abstract

Since joining the Bologna Process in 2010, public universities in Kazakhstan have been undergoing constant governance reforms. These changes aimed to improve the governance of public universities by adopting a corporate approach that guarantees more autonomy, independence, and transparency. Despite their intentions, the reforms have faced significant challenges that have impaired their effectiveness and created concerns within these institutions. This study explores the adoption of corporate governance within this new framework, focusing on the perspectives of various stakeholders, the challenges encountered, and the outcomes of these reforms.
The research is conducted through a qualitative study and it examines the experiences and perspectives of 30 interviewees from three public universities, including university leaders, members of governing boards, government officials, and experts in higher education (HE). New insights into university governance were gained by applying theoretical framework namely stakeholder theory, which advocates for a shift from a shareholder-centric approach to a stakeholder-oriented approach. This framework emphasises the recognition and integration of broader community interests, including those of industry and business sectors, into university governance.
The findings indicate that governance reforms have experienced a 'triple failure', with governance bodies failing to obtain functional autonomy, establish clear roles, and manage effectively. The establishment of Boards of Trustees and Supervisory Boards, among other initial attempts, was hindered by unclear role definitions and excessive state control. The transition in 2019 to a legal framework where universities operate as non-profit joint-stock companies was intended to provide greater autonomy and facilitate better governance practices. However, as the findings demonstrate, state-centralised control persists and legal uncertainties regarding the status of non-profit joint-stock companies continue to impede the implementation of these objectives. Significant legal and operational challenges persist, particularly the problematic blending of corporate governance principles within the public university context, which is further compromised by the Ministry's dominant influence over university boards. This often results in conflicts of interest and undermines governance autonomy and integrity.
The findings suggest that successful governance reforms require a reduction in state interference, a clearer definition of the legal status of universities, and an alignment of corporate governance practices with the unique demands of the public university sector. Recommendations for policy and practice include elevating financial autonomy for universities, fostering industry collaborations, and offering incentives such as tax preferences for philanthropists. By implementing these measures, public universities could significantly improve the integration of effective corporate governance, enabling them to operate as autonomous entities while fulfilling their educational and research missions. Moreover, improving the status and autonomy of board members and governing boards is crucial for improving governance efficiency.
This study is a significant addition to the current literature by providing the first empirical examination of Kazakhstan's transition from state-owned enterprises to non-profit joint-stock companies in the HE sector. The study's timely and significant policy implications highlight its importance, revealing critical insights that can assist in the development of more effective governance structures in HE. These findings are especially relevant to policymakers and educational leaders in Kazakhstan and could be used to guide governance reforms in other post-Soviet countries.

Date of Award	13 May 2025
Original language	English
Awarding Institution	University of Bristol
Supervisor	Lisa Lucas (Supervisor) & Vicente Jr Reyes (Supervisor)