The role of boards in Hungarian public interest foundation universities

Abstract

Between 2019 and 2022, 21 Hungarian public institutions were placed under the control of so-called public interest foundations (trust funds) instead of the state. As a result, the board of each foundation gained considerable power and authority over the institutions and thus paving the way for radical changes in the university management and internal governance. Although the governance reform is in line with international trends in many respects, we identified the unique characteristics of the Hungarian reform, such as the high proportion of politicians among members or their lifetime employment. Based on 38 interviews and document analysis, we examined the rationale behind the reform and the different interpretations of the role of boards. The results show that the perception of the role of boards depends on the level of trust that the board has in the institution and its management. Where boards treat universities as minors, a micro-managerial, supervisory role is more prevalent. Where, on the other hand, the university management is seen by the board as a more responsible, mature grown-up, a more empowering partnership role is possible.