From The Armenian Higher Education system

This work discusses a policy maker-student relation taking into account educational standards, asymmetric information and incentives for students to study well. The problems discussed are the characteristics of developing countries. To define educational standards is not enough for an efficient educational system. Supervision is desired to minimize moral hazard and not to loose the best students. Especially in developing countries where there is no flexible loan market, the state financing of students who are studying well could be an appropriate incentive for students to study with more enthusiasm and do their best to keep their position in the University. Key words: Reduction in tuition fee, student’s Excellency, supervision of the Educational process, efficient educational syste