Performance - based funding : the Romanian experience of the last five years : (2016–2020)

Abstract

Performance-based funding has a long experience of debates and implementation in Romania, distinguishing three main stages of refinement in its implementation, starting with 2002. The actual form is similar starting with 2016, an important share of Romanian higher education funding for teaching activities in public universities (26.5%) being distributed according to quality indicators (applied by field of study). Given that the main objective of this mechanism is to reward performance, as well as to assure a more transparent and predictable resource allocation, the aim of this paper is to identify how this allocation mechanism actually worked over the past five years. The performance-based criteria employed in the supplementary funding component cover four main categories: teaching/learning, scientific research/artistic creation, international orientation, regional orientation & social equity. According to the national funding allocation mechanism, each quality indicator is assigned a share of the total funding, with the final distribution being determined by each institutions performance score relative to the others in the same scientific field. The paper unfolds the evolution of this systems implementation in the five years since its adoption (2016–2020) and presents the main results of a preliminary analysis. We also explore the extent to which certain characteristics of universities, such as their size or their dominant field of study, impact the resulting distribution of funds. This paper results may enrich and contribute to the larger national and international debate on performance-based funding and quality assurance in higher education.