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Alternative development options for the Russian education in the medium term under various resource provision

2008
Department: Centre for Financial and Economic Decisions in Education

Over recent years, the government has increased financing earmarked for education. For instance, the federal budget expenditure for education rose by 7.5 times in volume terms in 2000-2007. However, the background for the most efficient use of these funds has not been ensured. The objective of this work is to define and compare development alternatives (depending on resource provision) of Russian education in the medium term.

The information base of the research consisted of statistical data that characterize the state of the Russian education and its funding from the state budget and other sources, budget laws, documents determining the areas of development of the Russian education system and socio-economic development of Russia, demographic forecast, education economics monitoring data, academic publications, expert estimates, the results of international comparative studies. 

The research confirmed the main hypothesis of the study claiming that it is possible to find a development option of the Russian education system that would ensure a high realization level of the main areas of this transformation, on the one hand, and be acceptable in terms of its financial requirements, on the other hand.

During the research, we have:

  • Described the main areas of modernization of the Russian education system based on analysis of regulatory documents, academic publications and foreign experience.
  • Characterized the amount and structure of the financing of the education system from various sources in 2000-2007;
  • Developed a model that ensures mutual relationships among development options of the education system in the medium term and their financial provision;
  • Analyzed the experience and lessons of the Russian education reform at the turn of the century. We have analyzed options for ensuring the competitive ability of Russian education for the innovation economy.
  • Proposed methods to evaluate some indicators characterizing some expenditure items for higher vocation education in Russia. We have recovered the data missing from the official statistics regarding the volume of administered fixed assets in physical units in education system in general and calculated estimates of unit cost of commissioned floor-space.
  • Calculated wages that would attract young promising professors into higher education facilities and would permit existing professors to focus on their main activity, abandoning side jobs that are not directly related to their academic work.
  • Analyzed short-term forecasts of federal budget expenses for education, comparing the results of financial modeling of the measures aimed at education development with the planned budget expenses for education.
  • Described the calculation methods for requirements in budget education financing, estimated the required budget expenses for current financing of the education system obtained by application of these methods.