Why is education at the forefront of the struggle for the future of our country?

Recently, I met with students of the Faculty of Finance of the Kyiv National Economic University (KNEU), perhaps the most prestigious training ground for the banking sector in Ukraine. The conversation was very interesting: future financiers asked a lot of questions. And what is nice is that they asked not about the salaries of bank employees, but about the development strategy of financial institutions during the great war and innovations in the field of compliance. I also shared with the students my recipes for success in building a career –  it was nice to remember my younger years. Later, I learned that this year, only one group is graduating with a degree in banking at KNEU. Not so long ago, 15 groups graduated a year.

At the same time, the banking system is currently facing a huge shortage of professional staff – this is discussed at most events involving bankers. Oschad has the most difficulty finding qualified specialists in such areas as front office (branches), risks, compliance, financial monitoring, law, debt restructuring, and back office. The market for specialists in these areas was already quite limited before, but now the issue of staff shortages has become even more acute.

There are several reasons for the decline in the number of banking graduates. Of course, the significant loss of prestige of the banking profession after the 2015 "bank fall" has had an impact. But the main reason for the lack of students in this and many other universities is the general demographic situation in our country, which is becoming more and more critical every year.

To illustrate: in 2008, Ukraine had 630,000 school graduates, and in 2023, there were only 360,000 in the Ukraine-controlled territory. The number of young people entering universities was hit especially hard by mass emigration after the full-scale invasion. And this trend is only getting worse over time.

These figures are usually cited in discussions about how Ukrainian higher education should change to meet the demands of the times. The idea is to reduce the number of universities – to keep the most prestigious universities and close the rest. According to the Ministry of Education, there are currently 314 higher education institutions in Ukraine, not including higher military institutions, postgraduate education institutions, colleges, etc. The same source shows that while in 2008 there were an average of 6,700 students per Ukrainian university, last year the number was almost half that – 3,500 students.

Of course, our universities need changes. However, they will not be able to cope with the challenges of the times on their own. We must not only make sure that some of the best universities receive more state funding and are able to teach our young people more effectively. It is also important that our entire education system be able to compete with the education systems of other countries, where many young Ukrainians are now forced to find themselves. And if we look ahead optimistically, we could compete with other countries not only for the education of our citizens, but also for attracting students from all over the world.

What does it mean if our educators lose or win in the competition for students with educators from other countries? If we are talking about Ukrainian applicants, this is a chance to retain or return young people to Ukraine. I believe that this is a matter of great importance, comparable to the task of protecting our country from enemy encroachments. Many people say that we should not leave this war as a legacy to future generations. But on the other hand, if these generations do not exist and they "dissolve" in the vast expanses of other countries, then what is the point of all this? The trend is currently very threatening. Some studies show that while at the beginning of 2023, 80% of emigrants planned to return to their homeland, at the moment only a third of them do.

The demographic crisis leaves no doubt that Ukraine needs additional labor. Today, experts believe that our country needs to hire at least 4.5 million additional workers in the next 5 years. What would we like these "new" Ukrainians to look like? Probably, not only people of physical labor, but also blue-collar and white-collar workers capable of driving the Ukrainian economy to international markets and winning in the competition. Will many such specialists come to us on their own? I doubt it. A good chance is to attract them at the "foundation stage" – as students of our universities. This will give a chance that promising young people will choose our country as their new homeland after graduating from Ukrainian universities – there are many examples of this. And this requires high-quality higher education.

How can the quality of Ukrainian education be improved? I will try to base my advice on this issue on an analogy with the banking sector. 

First, equal opportunities for market participants should be ensured. We need to establish fair rules of the game that will stimulate initiative, entrepreneurship and reward achievements.

Second, universities, like banks, need high-quality corporate governance. My alma mater, Kyiv National Aviation University, is currently demonstrating an interesting case, which I know is the focus of many colleagues. The Supervisory Board (not the Ministry or the staff) has elected a new head of the educational institution; for the first time in the history of Ukrainian technical universities, it is a woman, Ksenia Semenova. I am very concerned about the future of this university. Its success will prove that high-quality corporate governance in Ukrainian education is an important factor in achieving success.

The third tip is on the surface. The European Union, where we are moving towards, has clear rules for the higher education system. We should gradually implement them. We are doing the same in the banking sector, bringing our regulations step by step closer to the relevant norms of the European banking community.

As I wrote above, the efforts of universities alone, even with the assistance of the state, are not enough to realize such a large-scale task – to increase the competitiveness of Ukrainian education. Just as the entire society needs help to defeat the enemy at the front, Ukrainian universities need the assistance of all those who care. First and foremost, representatives of Ukrainian business should become such concerned individuals. There are many examples of successful cooperation between companies and universities, and Oschadbank is developing similar projects. There should be as much such cooperation as possible, as it is very important for the future of our country.