Ukraine Smart State: why Ukrainian higher education should become a global project
06.02.2025
Ruslan Shostak, President of TERWIN
Ukraine Smart State
I keep asking myself: What can Ukraine offer the world today? What projects, requiring minimal investment, could attract global attention?
One such project is higher education.
Right now, I’m watching as the most successful figure in Ukraine’s education market, Tymofiy Mylovanov, struggles against the rigid state system that prevents him from modernizing and making higher education relevant. This confirms that the state is not interested in transformation. A recent discussion with Tymofiy only reinforced my conclusions.
Over the past 100 years, Ukraine’s educational infrastructure has produced many outstanding scientists and specialists. However, since gaining independence, it has not only failed to improve but has significantly deteriorated. Every new minister only deepens the crisis in higher education.
What is higher education in Ukraine today?
- Every year, ₴18 billion ($500 million) in budget funds are spent on maintaining 170 state universities.
- Assets include university buildings, millions of square meters of dormitories, pools, sports facilities, thousands of hectares of landscaped parks, and student campuses worth tens of billions of euros.
- Around 200,000 graduates per year.
The problem? Most of these graduates will never work in their fields. Their professions are outdated and do not meet the demands of either the Ukrainian or global job markets. Ukrainian diplomas are barely recognized abroad, and 99% of state universities are absent from international rankings. Moreover, the system is plagued by corruption and scandals.
The result? The state spends billions on students who will not contribute to the economy because their professions are irrelevant.
Another fact: Ukrainian universities employ around 100,000 professors with an average salary of $400, while the total number of students is about 1 million. However, due to the war, enrollment has halved and will continue to decline over the next 3–5 years. If the trend persists, by 2027, Ukraine will have only 300,000–400,000 students.
The question is: do we need such an oversized education system if it serves only the domestic market?
Clearly, no.
But we have a unique opportunity to transform Ukrainian higher education and make it attractive to international students.
Our proposal: launch the Ukraine Smart State program
Why is this possible?
- There are 250 million students worldwide.
- The premium and mid-range segments of the education market are saturated, but there is a gap in the budget sector.
- If we offer international students tuition in Ukraine at half or a third of the price of Western competitors, aligning with their budget expectations, we can capture a share of the market.
- Few countries offer high-quality yet affordable higher education. We can attract students from India, Arab countries, Africa, and Asia, where high birth rates and low incomes make it difficult to develop a large-scale education system.
How can we do it?
- Find strategic partners in the U.S. or Europe – universities and colleges willing to expand their geographical reach.
- Lease them to Ukrainian universities for $1 for 100 years – with no right to change their profile or sell assets. These partners will establish education processes aligned with European standards and issue internationally recognized diplomas. They will also invest in updating programs and improving teaching quality.
If we don’t act now, our entire university infrastructure will be divided among rectors and politicians, leaving Ukraine with nothing.
What will this achieve?
- Attracting 150+ strategic partners – major European and American universities and colleges.
- Giving Ukraine access to modern education trends, research, and data.
- Increasing competition among universities, driving up education quality.
- Raising faculty salaries significantly.
- Bringing in new talent – graduates who may choose to stay in Ukraine.
- Boosting the economy through education exports, a €10–20 billion market per year.
- Issuing international certificates to students.
- Positioning Ukraine as a global education hub – a smart state.
Conclusion
Today, we have a chance to make a strategic decision that will shape Ukraine’s future.
Those who think long-term, not just short-term gains, will see this project as an opportunity to turn Ukraine into an intellectual powerhouse that produces not just service workers, but scientists, engineers, doctors, creative professionals, and innovators.
If we miss this chance, we risk losing our position in education and science forever.
But if we seize it, we can elevate Ukraine to a new level and make it a magnet for talent from around the world.