RUSSIA HIGHER PROFESSIONAL EDUCATION DEVELOPMENT

IN TRANSITION (1991-2001)

Russia Higher Education National Report for the Workshop “Central Asia Higher Education in Transition: 10 Years Later - Experience, Lessons and Future Strategy”
(16-18 September 2002, Kazakhstan, Almaty)

1. General Information

1.1 Introduction

During the period of reforms (1990-2001) Russian scientific-pedagogic community undertook every effort to retain all positive features of the FSU higher education system as well as to reform the sub-sector in compliance with the development objectives, realities and expectations.

Today Russian education sector includes about 140 thousand education institutions of different levels and types, nearly 1,5 thousand scientific organizations, innovations centers and technoparks where about 39 million people work and study.

The ratio of students to 10,000 citizens in Russia is 280. That’s the highest ratio for the whole history of national higher education development.

Goals and objectives of Russian higher education of the last decade should be considered in context of the reforms and implementation of the state education policy that is revised according to changes of social and economy situation in the country.

1.2 Major Directions of the State Education Policy

Russia implementing its reforms tried to retain basic achievements, traditions and cultural legacy of the FSU. The process of formulation and implementation of national policy directed at reform and development of the education system and can be divided into a few phases.

Pedagogic community of the FSU realized the necessity of the reform in the 1980s already. New education development goals and objectives were formulated in 1989 at a Congress of Russia’s Teachers. The goals and objectives provided for radical reform and national economy, normative and legal mechanisms of social life. The social and political system, communist party and the state apparatus of that era hampered the reform process.

In August of 1991 the main obstacles were removed. The first statute issued by President Eltsin was the Decree on Primary Measures Aimed at Russia Education System Reform. The victory of Russian democrats initiated fruitful activity. That period was characterized by intensive elaboration of the Federal Law on Education that came into force in July of 1992. The Law defined main goals, objectives and the reform directions, laid foundation of the state education policy. The adoption of the Law eliminated one of the stagnation period causes that was the moral and ideologically outdated normative and legal education system basis. Adoption of the Law completed the 1st phase of the reform aimed at goals and objectives identification.

Principles of the state policy formulated in the Law on Education (1992) and amendments to this Law adopted by the Russian Parliament in January of 1996 identified the following new values of the education system:

- humanitarian approach to education, priority of common to all mankind values, human life and personality free development. Children should be educated in the spirit of patriotism, diligence, respect to law and human rights, love to nature, motherland and family;
- preservation of the common federal cultural and education legacy. The education system is supposed to develop and retain the culture of Russian peoples, regional, cultural traditions and originality of the multi-national state;
- broad access to education, adaptation of the education system to training levels, individual features and interests of students;
- secular education at public and municipal education institutions;
- freedom of choice and pluralism of education opportunities;
- democratic, public and social character of education management, autonomy of education institutions and some other values.

In addition to the norm providing obligatory study of Russian as the state language in all Russian Federation education institutions accredited by the state “all citizens have the right to general secondary education in their mother tongue”. Thus the devotion to goals of poly-cultural education was obvious.

In late 1992 and early 1993 Russian education entered the second –‘technological” phase of the reform that had the following key aspects:

- establishment of sub-legislative education normative base;
- design of federal education development program as an organizational basis of the state policy;
- implementation of innovations designed by scientists and pedagogues;

In 1992 the National Report on Education Development defined ideology basics of the reform and formulated the following two basic principal of the reform:

- formation of new society provides revision of the ideology, content and education methods;
- education is a leading factor of human development as well as determining condition of social development and a vehicle of all reforms at all stages of life.

The following three major directions were identified based on these principles:

- refusal from dogmatic approach to education and training hindering development process;
- identification of new education ideal, transfer from direct administration to flexible facilitating management, design of efficient education methods and corresponding technical opportunities, new textbooks and academic staff training/retraining at restructured training system in particular;
- creation of necessary social and economy conditions facilitating transfer to new education ideal;

Implementation of these principles identified main vector of the reform development that is devotion to humane values and satisfaction of each student’s needs.

In 1994 the government approved the Education Development Federal Program, clauses of which formulated the content of the 2nd phase of the reform. The implementation of this phase in 1994-1999 laid a foundation for a large-scale reform of the education sector and main objectives of the state education policy were achieved.

Adoption of the National Education Doctrine that defined objectives and main directions of education development up to 2025 as well as revision of the Education Development Federal Program up to 2005 and its adoption as a Law commenced the 3rd phase implementation.

The Governmental Decree dated 29 December 2001 endorsed the Concept of Education Sector Reform up to 2010 designed by the MOE. The concept developed basic principles of Russian education policy stated in the Law on Education, the Federal Law on Higher and Post-Higher Professional Education and explained in the Education Development Federal Program for2000-2005.

The Concept is interrelated with the Russian Federation long-term basic directions of social and economy policy and identifies priorities and measures of education sector reform during next decade.

1.3 Design of Education Legal Base

Changes in the state political, social and economy structure of Russia over the last decade pointed at necessity to protect the Constitutional right to education, strengthen national common education system, enhance quality and access to education services offered by the education institutions.

Today the Code of Legislative Acts regulating education consists of 462 legal documents.

In addition to the Federal Legislative Acts the federation’s subjects (autonomous republic, okrugs, krais) regulate education where their own education laws have been adopted. Municipal normative and legislative base is being designed. Important documents regulating legal relations in the federative state include agreements and contracts on division of authorities in education sector that is a new form of interaction between the federal administration body and executive authorities of the Russian Federation subjects.

Common clauses of the agreements enable to implement flexible education policy as well as to maintain common poly-cultural and education system of Russia. Agreements play important role in solution of administration democratization and decentralization problems since they present the initial link in construction of new education management system at all levels (i.e. federal, regional, municipal ones).

The State Education Standards are critical normative and legal documents providing guarantees of education quality. They are defined in accordance with Clause 7 of the Law on Education.

The Russian Federation presented by its federal bodies of the state administration establish federal components of the state education standards for all education levels identifying obligatory minimum of new education programs content, maximum education load on students and requirements to qualification of graduates within their competence. Procedure of design, approval and introduction of the state education standards is established by the government of the Russian Federation. The state education standards are the basis of graduates’ qualification evaluation regardless modes of education.

Another significant category of provisions is the Standard Regulations on Education Institutions by Type endorsed by the Ministry of Education (MOE) they regulate content and organizational structure of education institutions. Today operation of all education institutions is regulated by its clauses. Establishment of essential education legislative and legal base is in progress.

2. HIGHER PROFESSIONAL EDUCATION SECTOR REVIEW

2.1. General Description of the Higher Education Sub-sector

In 2000 in Russia there were 1,260 civil HEIs including 562 federal public HEIs, 36 public HEIs reportable to the subjects of the Russian Federation, 662 licensed private HEIs 203 of which had non-public accreditation.

Additional possibilities to exercise the citizens’ right to education is provided by 1,636 affiliations of HEIs including 1,013 public and municipal HEIs. About half of these affiliations are located in Siberia and the Far East to correct the disproportion of HEIs distribution on the territory of the Russian Federation.

Admission to first cycle of public HEIs grew from 391,6 thousand people in 1995 to 587,6 thousand in 2000 (or by 50% for the last 5 years) including increase from 351,6 thousand people to 390 thousands (by 10,9%) in admission to full-time category.

Number of applicants to HEIs is still growing. In 2000 average rate of applicants to student places was 300:100. In 1999 it was 268:100, in 1998 256:100 and in 1997 228:100). The trend of increase in proportion of applicants to technical HEIs and faculties remains.

Total admission to public HEIs by specialty groups is as follows: engineering and technology (31%), economy (26%), humanities (19%), pedagogy (8%), natural sciences (6%), medicine (3%), agriculture (4%), culture and arts (2%).

The system of public HEIs is composed of 277 universities with total enrolment of 2,5 million students, 163 academies (727 thousand students), 158 institutes (516 thousand students). The universities have the biggest student enrolment: over 2,5 million including 1,1 million students of technical specialties, 465 thousands of natural and humanitarian specialties and 478 thousand students of pedagogic universities. The academies enroll 727 thousand students including 223,6 thousands of technical specialties and 173 thousands students studying agriculture. The enrolment of institutes is 516 thousand students including 277,5 thousands of technical specialties, 157,2 young people trained in pedagogy and 38,2 thousands studying natural sciences and humanities. Thus enrolment of technical specialties students is the biggest one (1,6 millions). The next one is students of pedagogy specialties (637,2 thousands) and the third one – students trained in natural sciences and humanities (540,8 thousands).
Student Enrolment
Total enrolment of HEIs and their affiliations is over 4 million students including more than 345 thousands studying in private HEIs. Tuition fees of over 1 million students (27,3%) are 100% reimbursed. The ratio of students to 10,000 citizens in Russia is 280 that is the highest ratio during the history of higher education of the country.

Academic Staff

Despite the social and economy crisis the number of full-time academic staff of HEIs started to grow since 1994. In 1999 full-time academic staff of public HEIs was 255,9 thousand people against 239,2 thousands in 1995. Increase in number of doctors of sciences from 20,1 thousands in 1995 to 25,9 thousands in 1999 is a positive trend. Their proportion in total number of academic staff also increased from 8,3% in 1995 to 10,1% in 1999. Number of PhDs grew from 117,4 thousands in 1995 to 122,2 thousands in 1999 but their proportion in total number of academic staff decreased by 1,4%.

In 2000-2001 much attention was paid to establishment of university complexes. The following was undertaken to gain the goal:

- a study of universities activity was carried out and proposals on establishment of university complexes were reviewed;
- legislative and executive bodies of the Russian Federation sent Rectors’ Councils of HEIs a letter informing them about formation of university complexes;
- first draft project of Governmental Decree on Approval of Standard Regulation on University Complexes was designed;
- proposals on formation of education-scientific-pedagogic complexes of continuous pedagogic education were prepared;
- problems of university complexes formation were discussed at a meeting of Rectors in Moscow (27 October 2000) at a meeting of the Far East HEIs’ Rectors in Vladivostok (15 November, 2000), at the All-Russian Meeting of Tectnical HEIs’ Deans in Barnaul city (22 November 2000), at the MOE Collegium meeting on Experience of University Complexes Formation in Tatarstan and Mordovia (18 December 2000) at the All-Russia Scientific Conference called Integration as Efficient Way of University Complexes Formation in Nalchik city (22 December 2000).

Draft Decree on Approval of Standard Regulation on Establishment of Higher Professional Education (HEI) was designed and submitted to consideration of the government.

The network of HEIs was developed. In 2000 169 affiliations of HEIs reportable to the MOE were established. 65 proposals on establishment of HEIs affiliations from federal bodies were considered. HEIs admission quotas were established for graduates of general secondary schools from the Chechen Republic, the Ingush Republic, the Northen Osetia- Alanis, the Tuva, the Sakha-Yakutia and others, the Evenk, Chukotka, Khanty-Mansi autonomous okrugs and for such ethnic groups as Kurds and Kozak young people of Stavropolski krai).

Two new HEIs were established: the Russian State University of Innovation Technologies (Moscow) and the Orenburg State Institute of Management.
24 proposals on established of new HEIs from the Sakha State Pedagogy Institute, the St.-Petersburg Military Institute, the Volzhski State Institute of Service (Tolyaty city), the Tolyati State University, the Kemerov Agriculture Institute, the Yugorski State University (Khanty-Mansiysk city) and some other HEIs were considered.

A draft Governmental Decree on Reorganization of the Moscow State Engineering and Physics Institute and the Tomsk Polytechnic University Reorganization and Establishment of three new HEIs reportable to the Ministry of Atom Energy and the MOE was prepared.

Some measures directed at restoration of higher education system in the Chechen republic were undertaken.

Proposals on participation of some reportable to different departments HEIs in the Federal Designated Program called Social Security to the Disabled for 2000-2005 were prepared.

Affiliations of HEIs were established in Sukhe-Bator city, Ulan-Bator city (Mongolia), Vanadzore city (Armenia) under the program of cooperation strengthening between the member-states of the CIS and development of Russian HEIs participation in international activity. A request from Leninabad city (Tajikistan) on establishment of admission quotas was considered.

3. HIGHER EDUCATION MAIN INDICATORS

3.1 Higher Education Finance

In 2000 education institutions’ debt for utilities supplied in 1997-1998 was repaid due to close cooperation between the MOE, the government and the Ministry of Finance.

The debt of reportable HEIs for thermal heat and electric power supply for the amount of over 1820,0 million rubles was repaid. Total debt of the HEIs for utilities was paid off in the end of 1999 and early 2000 exceeded 2570,0 million rubles.

In the second half of the year the MOE and the Ministry of Finance regulated the debt for utilities as of 1 January 2000 amounting to 1812,0 million rubles.

In December of current year the government allocated additional funds from the federal budget to the MOE to repay the debt of 270 million rubles for utilities as of 1 January to the EES Russia Company.

In 2000 most debts of education institutions were paid off. In particular in September of current year the MOE checked the debts for utilities supplied in 2000 with daughter companies and companies reportable to the RAO ES of Russia. As a result in October-December 2000 the government allocated additional funds for the amount of 860,0 million rubles to the MOE to pay off the debt for the utilizes. That decreased the tension between education institutions and the suppliers in 2000/2001.

In December 2000 additional funds for the amount of 300 million rubles were allocated to the MOE for current utility bills payment.

The Federal Budget for 2001 provides more allocations to the education sector compared with 2000.

In 2001 the Federal Budget for education will amount to 48,8 billion rubles including 34,4 billion to the MOE that 1,52 times more than in 2000 and 3,5 more than in 1998.

Government spending on education will increase as a percentage to GDP from 0,49% in 2000 to 0,63% in 2001. The proportion of spending on education will increase in the federal budget from 3,75% to 3,99% accordingly.

The draft budget for 2001 provides growth in allocations for purchase of foods for state budgeted students, health prophylaxis measures, library stocks replenishment, education and practical work of students, equipment, renovations and payment for utilities.

The Federal budget for 2001 provides allocation of 1 billion rubles for purchase of PCs for rural schools under the Federal Education Development Program and some funds for implementation of the Government Action Plan in area of social policy and economy restructure and federal pilot sites for 2000-2001

The budget for 2001 provides allocation of funds for the following:

- education sector employees wages indexation by 1,2 times on average from 1 January 2001 as reintroduction of the Unified Tariff System (UTS) that was effective before 1 April 1999. Besides the government provides increase in salary for state budgeted sectors in 2001 due to additional state revenues;
- increase in salary up to minimum wages for employees of state budgeted sectors (from 1 to 6 categories), total allocation for these purposes will amount to 306 million rubles);
- indexation of military men wages from 1 April 2001 by 1,1 times;
- increase in scholarship by 1,2 times (200 rubles);
- increase in extras paid for academic degrees (doctor of sciences and PhD) 500 rubles and 300 rubles accordingly.

The Budget for 2001 provided allocations of such education process components as:

- 402,2 million rubles (80-90% of HEIs need) for organization of education and practical work of students;
- 400,0 million rubles for HEIs library stock replenishment;
- 5 times increase in allocations for health prophylaxis.

But the problem of additional finance sources generation remains. Lately education institutions of non-public sector intensified their activity. They pay for utilities, purchase equipment, pay salary and allowances to their employees from the revenues for education services.

According to some estimates revenues of education institutions reportable to the MOE will amount to 15 billion rubles in 2000 compared to 11,5 billions in 1999 (or 46,7% of the allocations provided by the Budget).

The Fund of Support to Education was established to develop mechanism of education institutions funding and attraction of non-budgetary funds. The main goal of the fund was concentration and centralization of non-budgetary funds allocated by Russian and foreign companies, organizations and individuals, their targeted use in compliances with objectives of the MOE in education sector and participation in programs implemented by the MOE.

Today measures directed at introduction of the state order (projection) for specialists, new system of student scholarship, governmental commitments, funding of HEIs investment projects, establishment of minimum budgetary funding of education standards at federal and local levels are designed. Respective documents have been prepared for these issues in accordance with the Governmental Action Plan. Issues of student scholarship, state order for specialists, investment projects and state finance sources were considered and approved by the Economy Council of the MOE. The issue of new scholarship system introduction was considered by the MOE Collegium which endorsed represented documents.

Expenditures on Education Provided by the Federal Budget

3.2 The Labor Market Supply and Demand

3.2.1 Short Description

The situation at the labor market changed after the financial crisis of 17 August 1998. Many Russian and foreign companies became bankrupts and left the market. Private sector responded to crisis by mass discharge of human resources. Reductions of personnel were aimed at decrease of huge expenses generated by the crisis in the economy. The reduction did not provide retaining of professionals and in 199 employers faced the necessity to recruit new personnel.

The changes affected the human resources market that new for Russian economy. According to some experts high demand in specialists of trade and finance sectors, before the crisis, defined low qualification of recruited the employees and their relative cost and mobility. Now employee becomes more dependant on the employer and it is difficult to find another job to improve his welfare.

The crisis forced employees to upgrade their qualifications. Gradually the situation at the labor market stabilized but unemployment was still high and segmentation of the labor market enhanced.

These trends in the labor market indicated certain adaptation of employers and employees to current situation and revealed their mutual interest. For employers replacement of current staff for experienced and cheaper specialists seemed attractive. Demand in highly qualified personnel arose again. The structure of the demand in mass professions didn’t change much compared with the pre-crisis period - sales managers, secretaries, chief accountants, finance analysts still were in high demand.

In early 1999 there was much call for specialists in finance, customer relations, advertisement, services and commodities promotion, cargo transportation, warehouses management, housing and communal management, consumer service, social security, healthcare, industrial technologies consulting and lawyers.

On the whole the demand in highly qualified specialists grew up especially at big trade and industrial enterprises of powerful financial and industrial groups (military-industrial complexes, metallurgy, food and light industries, motor-car construction, household chemical goods production, construction material manufacture, fuel and energy complexes, railway and marine transport, banks).

In late 1999 there was growth in demand for qualified specialists in footwear, furniture, construction materials sales.

The following economy problems slowed down the development of the labor market due the insufficient reform of the whole labor sector that didn’t meet needs of social and economy development:

- slow growth in creation of jobs;
- retaining of huge number of inefficient and low paid jobs;
- excessive supply of human resources by occupation;
- highly qualified specialists drain to shadow economy.
In this context state regulation of the market becomes critical since it includes the spectrum of economy, juridical, social and psychology factors that define the labor market.
Such regulation can be implemented via creation of new jobs, employment provision system providing a broad network of employment agencies, databases for vacancies, state training/retraining programs, enterprises’ targeted training/retraining programs.

The major objectives of the labor market regulation are state in such normative and legal documents as the Structural Reform and Economy Growth for 1997-2000 Governmental Program, the Social Reforms for 1996-2000 Program, the Complex Program for Creation and Preservation of Jobs for 1996-2000 and the Federal Targeted Program of Support to Employment for 1998-2000. The new agreement between the Ministry of Education and the Ministry of Labor provides new measures directed at development of employment and continuous training including training in education institutions and at enterprises.

Anyway, so far the adopted statutes failed to stop negative trends of the labor market what can be explained, among other reasons, by too global approach to formulation of the market needs based on data of macro-economy study. Today international practice shows transfer from analysis of national labor market needs to review of regional and local markets and even demand in professions, specialties and qualifications at enterprises since labor market is formed by concrete needs of regions, areas and enterprises, citizens and their families in performance of some definite professional activity. In this line careful attention should be paid to design of labor market study mechanisms that would enable to use such analysis results for development of professional education programs what will enhance efficiency of the state labor market regulation.

During development of such analytical mechanisms it can be advisable to refer to the methodology called Scenarios of Professional Education and Training Development successfully tested in some countries of the Central and the East Europe.

3.2.2 The Labor Market Development Prospects

According to major long-term directions of social and economy policy of the government growth of real sector is a top priority of enterprises restructure and reform policy. In this line development of science intensive enterprises possessing technology potential become of high priority since they can ensure sustainable growth of competitive production for internal and external markets.

Reform of the state administration system and development of market mechanisms can result in growth of jobs in sectors interrelated with market infrastructure, tax and budget area, insurance, human resources management, statistics bodies, law enforcement, juridical system and in reduction of jobs in no demand sectors. Besides growth of jobs in private sector, small and medium businesses, is also expected.

It obvious that highly qualified specialists will be in high demand. Besides new professions and specialties will appear due to intensive development of information, communication and other technologies.

In this line it is necessary to carry out a complex study aimed at identification of demand in new specialties and professions and forecast design for specialties and professions that would gradually die out. The experience and the approaches stated in CEDEFOP reports «European Trends in the Development of Occupations and Qualifications» and «Anticipation of Occupation and Qualification Trends in the European Union» can be rather helpful for professional education and training system development planning.

3.2.3 Social Partnership

The Ministry of Labor and Social Development is rather efficient in activity directed at initiation and development of social partnership. Presently the Ministry designs a draft Laws on Associations of Employers, on Social Partnership, on Professional Orientation and Psychological Support to the Population, the Concept and Program of Vocational Orientation and Psychological Support to the Population, normative and legal base for licensing of activity directed at vocational orientation psychological support to population.

Trilateral and sectoral agreements as well as collective contracts are efficient forms of social partnership aimed at prevention of mass unemployment at regions.

Today the government plans to establish trilateral regional commissions in all subjects of the Russian Federation to regulate social and labor relations and design of information and methodology program that aims to provide assistance in solution of regional problems regarding social partnership, social and labor relations and attraction of big finance and industrial groups and other commercial associations in negotiations.

On the whole the institute of social partnership and the culture of social dialog as a new system of relations between interested parties are still being formed in Russia.

To ensure social partnership in the area of professional education it is necessary to decide issues of institutional status of social partnership, its normative and legal base, major directions of social dialog development, mechanisms to attract employers to professional training (for instance, introduction of tax breaks, attraction of enterprises specialists to teaching in professional education institutions etc.), re-establishing of relations between enterprises and education institutions via intensive marketing among other methods.

Inclusion of such issues as standards design, attraction of social partners to professional orientation activity into competence of professional education can facilitate its development. These issues should be included in the agenda of the Trilateral and respective commissions at regional levels.

Besides it is necessary to enhance access to information regarding existing forms, functions, components of social partnership and dialog for all interested parties via Internet, publications, consultations and other services that could be initiated and provided by the National Observatory of the Russian Federation in association with the European Education Fund. All that would help to start up an efficient social dialog in Russia.

3.2.4. Employment Policy and Directions of Its Development

In 1999 there was a growth of the population economic activity that made up 74,0 million people in the end of the year and exceeded the rate of 1998 per 1,0 million people.

In 1999 for the first time over the last decade employment grew up from 63,3 million to 64,9 million people or by 1,6 millions (2,5%) compared with 1998.

Most part of the employed (41,9 million people or 65%) worked at big and medium enterprises and companies.

Just like in 1998 the number of employees discharged from big and medium enterprises exceeded the number of newly recruited staff. Anyway this exceeding reduced significantly. In 1998 negative balance of human resources turnover made up 1,2 million people and in 1999 it amounted to 145,4 thousand people.

In 1999 the number of the discharged personnel was 10,3 million people (21% of the average employment).

In 1999 the number of personnel recruited by big and medium enterprises totaled over 10,1 million people (24,2% of the average employment). The total number of staff recruited for new jobs didn’t change much (539,3 thousand people compared with 528,5 thousands in 1998). The most significant proportion of staff (41,9% of their average number) was recruited by organizations specialized in labor market operation (employment agencies, broker firms etc.), real estate sales companies (40,5%), civil construction companies (40,3%). Housing and communal organizations (37,3%) and trade companies (35%). The lowest proportion of human resources was recruited by organizations specialized in finance, loans, insurance, science and education.

The most number of vacancies were at big and medium enterprises of housing and communal sector, healthcare, physical culture and sports, social security sector. The least vacancies were available in organizations and enterprises of agriculture, trade, catering, industry and civil construction sectors.

Over 7,1 million people (11% of total employment) in 1999 worked on contract basis in small ventures. 0,9 million people were employed by small joint ventures or foreign ones. About 13 million citizens (20%) worked on their kitchen gardens, households and were engaged in individual labor activity etc.

In 1999 the presence of foreign human resources at Russian labor market reduced. During that year 211,4 thousand foreigners had employment in Russia via the migration service (i.e. 12,8% less tan in 1998).

On the whole for the last years redistribution of the employed between public and private economy sector took place in favor of the last one as a result of intensive growth of employment in private sector, small business development, significant growth of self-employment, enhancement of part-time and secondary employment.

According to surveys carried out in five cities of the Russian Federation in 1998 there was the following distribution of full-time employed population:

Public sector: 25,20%
Private sector: 26,60%
Self-employment: 1,90%
State budgetary sector: 27,90%

The survey of households and labor records identified the following distribution of employment:

Public sector: 80,70%
New private sector: 15,70%
Self-employment: 3,60%

Employment in industry (processing one, first of all) and science is decreasing whereas it grows in trade, housing and communal sector, consumer service, healthcare and education.

For a few last years hidden unemployment is typical. Latent forms of employment also exist. At macro-level hidden unemployment is a buffer between efficient employment and official unemployment. It hinders growth of the last form and tension upsurge in society. Insignificant forced part-time employment is a result of this trend.

Thus in 1998 the number of forcedly part-time employed population was 4,7 millions (or 11% of total employment). Part-time employment was typical for transportation sector (29,6%) including railway transport (51,2%), industry (19,9%), scientific institutions (14,8%), civil construction and computing sectors (10,2%).

What should be noted is that in 1999 there was reduction in forced part-time employment by 1,6 million people (36,7%) and the number of employees who were sent to vacations decreased by 1,4 millions (29,9%).

Enormous part-time unemployment, overdue wages, difficulties to find employment resulted in secondary or informal employment. According to the Institute of Macro-economy Research under the Ministry of Economy Development about 8 million people had two jobs; employment in informal sector made up about 25 million people and for 7,5 this is the only income source. According to the State Board of Revenue 3-40% of adult population had two jobs. According to the State Statistics Committee about 1% of employable population had two jobs in 1998. These data differ between official agencies: the VTZIOM (15-20%), the ISITO (17,5%) of 15-22 year old population that’s more probable.

Significant part of secondary employment is not seen. In 2/3 cases secondary employment looks like informal one and as a survival strategy for most competitive and adaptive groups of population. Mainly it exists in new sectors of economy.

Some experts consider that most qualified specialists found employment in shadow sector of economy that exceeded 20% of GDP according to last estimates of the State Statistics Committee.

Mass employment in informal sector misrepresents data of the population actual incomes, living standards, stratification of the society, labor force supply and demand and rate of unemployment. Informal employment complicates identification of small income citizens who need social support from the government. That can engender problems at distribution of state subsidies in professional education system.

Major Directions of Social and Economy Policy Program provides a set of measures to develop employment that is an integral component of social development. Anyway these measures prove efficient if they are implemented as instruments of employment policy not as measures to prevent unemployment.

Presently a new Law on Employment of Population of the Russian Federation is being worked out. It will identify responsibilities and authorities of executive federal and regional bodies regarding labor market and mechanisms of its operation.

So it is necessary to undertake the following:

• to work out efficient employment policy aimed at maintaining of balance between economy and social priorities of the labor market;
• to design and implement efficient training/retraining system for unemployed based on international experience of training models design and financing;
• to attract qualified human resources from informal sector and eliminate contradictions between labor force supply and demand and actual unemployment level.

3.2.5. Unemployment

In 1999 unemployment grew up due to changes in the labor market. The number of unemployed and looking for job people is classified as jobless according to methodology of the ILO totaled 9-12 million citizens in 1999 (10-12%). Over 80% of unemployed people had higher education.

According to the Ministry of Education employment of vocational education institutions graduates is 80% for primary vocational institutions, (2/3 find jobs not complying with their specialties) and 20% for secondary vocational institutions. Official unemployment was decreasing and made up 1,26 million people (1,7% of employable population) by the end of 1999 mainly due to inability of the government to pay doles in time and seasonal (summertime) reduction of applications to employment centers and expiration of the 1st period of doles payment.

Women’s unemployment prevailed and there was also growth in jobless graduates of vocational schools. Unemployment mainly affected 18-24 year old population.

Official unemployment of 1999 registered by public employment service:

- Total unemployment: 1,963 thousand people
- Women’s unemployment: 880,0 thousands

In 1999 4,3 million people (90,1% of 1998 level) applied to territorial bodies of the Labor Ministry for job. Proportion of jobless women amounted to 54%. Young people at the age of 16-29 accounted for over 56% of the unemployment. Over 3,07 millions of 10 million applicants (17,7% more than in 1998) found jobs via the public employment service.

Unemployment registered in centers of the public employment service in 1998 (‘000 people):

Graduates of primary vocational education institutions: 48,5
Graduates of higher and secondary professional education institutions: 55,0
Graduates of general secondary schools: 37,8

Average period of job quest reduced from 10 months in May to 9,4 months in August 1999. Proportion of those who sought employment over 12 months decreased from 49,4% in May to 44,6% in August of 1999. Average period of job quest made up 7,6 months.

Average age of unemployed was 38,7 years. Proportion of jobless men exceeded 51%. Women’s unemployment amounted to 48% and 16-29 year old people accounted for 38% of the unemployment.

Number of vacancies available in public unemployment service from the start of 1999 doubled and reached 600 thousands.

Most people became jobless due to shutdown of companies and reduction of personnel (41,5%) that’s less than in May1999 (45,1%).

Unemployed of 1998 by educational level:

- higher education: 215,3 thousands including 145,2 thousands of women
- secondary vocational education: : 457,2 thousands including 352,6 thousands of women
- complete secondary education: 616,8 thousands including 386,8 thousands of women
- incomplete general secondary education: 279,2 thousands including 139,7 thousands of women

Tension coefficient of the labor market changed from 6,6 applicants for 1 vacancy to 2,5:1 in late 1999. Lowest rates were registered in Moscow (2 vacancies per 1 applicant); Volgograd and Nizhegorod oblasts (1). Highest rates were noted in Aginski Buryatski autonomous okrug (2,250); Ingushetia (968); Evenkia (107); Altayaskaya Republic (30); Nenetz autonomous okrug (48); Karelia (12).

Unemployment of 1998 by age group:

Younger than 18: 43,5 thousands
18-24 year olds: 356,9 thousands
25-29 year olds: 215,4 thousands
Pre-pension age: 129,6 thousands

Vocational Training of Jobless Population

It is not a secret that to retrain a jobless person is cheaper than to pay him a dole. In 1999 vocational education services were provided to over 5 million people.

Bodies of the employment service covered about 350 thousand jobless citizens with training (at 300 ths. projected). 92% of them found jobs.

To implement training of the jobless population the employment service used about 3,000 education institutions.
Training at Enterprises

Vocational training was implemented right at enterprises at their own cost. About 4 million people passed that training.

Proportion of trainees at public enterprises made up 26%, 24% were trained at new private ventures, 15% took training at privatized enterprises and 18% trained at self-employed ones.

Big finance and insurance companies, exchange stocks, education institutions, medical institutions, enterprises that use rare qualification specialists, joint ventures, market research institutions undertook staff development. New private enterprises mainly used in-service training for their staff development. That mainly regards to working specialties utilized in trade, civil construction, consumer service and catering.

On 13 January 2000 the Ministry of Labor and the Ministry of Education adopted joint Resolution on Approval of Regulation on Vocational Training and Retraining of Jobless Population.

Much importance is given now to advanced education that provides training before expiration of contract between employer and employee. Advanced training is aimed at alleviation of social tension at territorial labor market and reduction of unemployment level.

On 17 February 2000 the Ministry of Labor issued its Resolution on Approval of Operation Procedure of Territorial Bodies Reportable to the Ministry of Labor. The resolution regulated issues of unemployment and assistance to employers in advanced training of unemployed population.

The resolution provided full or partial compensation of employers’ expenditures for implementation of advanced training.

Employment and Adaptation of Young People to the Labor Market

Employment and adaptation of young people to the labor market is another problem. The Ministry of Education and the Ministry of Labor signed an agreement on cooperation that aims to give new impulse to interaction between vocational education and the labor market in area of young people training and employment.

In 1999 employment bodies provided assistance to employed young people including graduates of general secondary schools who had no profession or specialty through placement to vocational education institutions to get respective education and start labor activity.

This assistance was provided to over 150 thousand young people (compare with 120 ths. in 1998). The Program Practice for Young People was directed at placement of general secondary school graduates. In 1999 this program covered over 30 thousand young people and employment was found for 40% of them. 11,6 thousands of them (38,5%) were graduates of rural secondary vocational education institutions; 8,3 thousands (27,5%) graduates of primary vocational education institutions; 4,6 thousands (15,3%) graduates of HEIs.

Another program called Temporary Employment for Minors was also implemented. It covered 14-18 year olds and provided 875,3 thousand minor with temporary employment. Mainly this program was implemented in summertime and 89% of its participants found jobs.

Placement to quota jobs is one of the state policy directions regulating the labor market that is aimed at provision of employment to young people. In 1999 99,8 thousand young people were placed on quota jobs (22% more than in 1998) 25,5 thousands of them were under 18 and 11,4 thousands were handicapped.

3.3 International Cooperation

Today a system of international relations is being established in education area. The top priority directions are:

- integration with international education community; conclusion and implementation of international agreements on recognition of qualifications, academic degrees and awards;
- enhancement of international academic mobility and participation of Russia in training of high qualification specialists for oversea countries;
- development of regional and HEIs centers for international cooperation and academic mobility, establishment of training, retraining for personnel of international services of Russian education institutions.
Large-scale activity is implemented on design of norms and procedures system for recognition of education qualifications, academic degrees and awards. Some measures directed at development of the state system of education certificates, academic degrees and awards acknowledgement have been undertaken.

The Ministry of Education initiated adoption of the following statutes in 2000:

- The Law on Ratification of the Convention on Recognition of Qualifications Concerning Higher Education in the European Region, dated 4 May 2000;
- Three Governmental Decrees were adopted on Conclusion of Agreement between the Government of Russia and the Government of Chad on Mutual Recognition of Education Qualifications and Academic Degrees, on Conclusion of Agreement between the Government of Russia and the Cabinet of Ministers of Ukraine on Mutual Recognition of Education Qualifications and Academic Degrees, on Conclusion of Agreement between the Government of Russia and the Government of Albania on Mutual Recognition of Education Qualifications and Academic Degrees, on Conclusion of Agreement between the Government of Russia and the Government of Romania on Mutual Recognition of Education Qualifications and Academic Degrees in 2000.

The most important documents are:

- The Convention on Recognition of Qualifications Concerning Higher Education in the European Region since it is a multilateral long-term agreement identifying approaches to recognition of education certificates;
- The Agreement signed with Ukraine on prospects of cooperation between our countries that facilitates academic and professional mobility of the two countries’ citizens.

The other three international agreements aim at expansion of education services range offered by Russia.

Besides draft agreements on recognition of qualifications, academic degrees and awards have been prepared and submitted to other countries that traditionally had academic and professional relations with Russia: Austria, Argentina, Armenia, Bulgaria, Greece, Italy, Mongolia, Tajikistan. Negotiations with the Netherlands were carried out and the Program on Bilateral Activity on Recognition of Education Certificates for 2001-2002 was prepared.

Experts of the USA and Russia started to work on problems of recognition of qualifications, academic degrees and education certificates under the Organization and Conduction of Russian-American Conference on Recognition of Education Certificates funded by the Open Society Institute. Both parties agreed that the program could be considered as a breakthrough in relations’ development and the start of cooperation, alleviation of academic and professional mobility between the two countries.

Materials for publication of the second edition of the book titled Mutual Recognition of Qualifications: the Russian Federation and the Other European Countries have been prepared and submitted to CEPES/UNESCO. The book contains description of Russian education system, copies of all state standard education certificates issued in Russia since 1992 and a guidebook on recognition of qualifications between Russia and other European countries adopted in Helsinki in 1997. The second edition is published in Internet on CEPES/UNESCO website.

A set of measures directed at development of international cooperation via the system of regional and inter-HEIs centers of international cooperation and academic mobility was implemented to provide participation of Russia education institutions at the world market of education services and support to efficient interaction and authorities distribution in regions between the Ministry of Education and education bodies of the Russian Federation’s subjects and education institutions. In 2000 three new centers were established and introduced in this system.

Production of specialists for foreign countries is a top priority direction of the education system international activity. The Russian government grants up to 4 thousands scholarships to foreign students, aspirants and teachers to get complete education and post-graduate training and retraining. In 2000 the admission to such education and training was 4,5 people compared with 4 thousands in 1999. Training of specialists for oversea countries on contract basis also was developed as a component of international cooperation. Today annual enrolment of foreign students in Russia makes up 60 thousands and about 90% of them are contract students.

Foreign Students Enrolment in HEIs of Russia

4. Analysis of Objectives and Accumulated Experience

4.1. Expediency of Higher Education Sector Reform

Reform of higher education sector in Russia is necessitated by the following circumstances:

- new requirements to education claimed by society, state, economy (these requirements reflect objectives of education dictated by interests of state, expectations of society, necessity to ensure economy development);
- orientation to satisfaction of education needs of society that are conditioned by requests expressed by different population sections and communities, national and religious features, etc.;
- results of social and economy changes (first of all financial and economy instability);
- inner trends and processes of education sector. Traditions of Russian education on one hand and international trends, their affluence and our orientation to them on the other hand (prospect of common European education community establishment, adoption of the Lisbon Convention on Recognition of Qualifications and the Bologna Declaration in particular).

Taking into account the decade of reform it is possible to evaluate results of the implementation strategy and objectives achievement.

The primary goal of the reform is to ensure priority of personality interests and humanization of education. Major directions of the reform, principles of state education policy should be in compliance with implementation of this new priority. The education system that met interests of the totalitarian state transformed into a system satisfying interests students, their parents, various sections of population and communities.

4.2. Positive Results of the Reform Implementation

The major direction of the reform is to build up capacities for transfer from unified, monotone education to education at choice. Revision of the education content is aimed at the following:

- diversification of education content directed at capacity building for transfer to education at choice;
- standartization of education is aimed at preservation of common education system, high education level of population and quality of education;
- upgrade of traditional and initiation of new pedagogy technologies.

The reform of the education institutions network and education modes ensured the following:

- differentiation of the education institutions network, support to education institutions of new types regardless their ownership status;
- typologization of education institutions and establishment of state control mechanism to monitor level and quality of their education;
- design of normative and legal base providing equal possibilities to get education of different modes including in-service education and training, family education, self-education and external studies.

Reform of academic staff recruitment enabled the following:

- transfer to multi-level pedagogic education system;
- introduction of contract system for production of education sector specialists;
- introduction of unconventional specialties into education system;

Implementation of education economy reform was carried out via the following:

- design of scientific and methodology basics for introduction of normative financing and material and technical provision of education institutions;
- testing of education programs personified financing forms;
- creation of normative and legal conditions enabling transfer to education multi-channel funding system through attraction of additional finance sources.

Education management system reform enabled transfer to program purposeful model of education management, coordination and interaction between the federal and national-regional education development programs:

- improvement of the system to distribute competence between education departments of different levels through conclusion of agreements between the Ministry of Education and governments of the republic, administrations of krais, oblasts and autonomous okrugs of the Russian Federation;
- wide utilization of flexible mechanisms in education management and in attestation of teachers and administrators, education activity licensing, attestation and accreditation of education institutions;
- strengthening of state and public forms of education management through attraction of society to discussion of education development issues, establishment of expert councils, support to school self-management and public initiatives in education.

4.3. Problems of the Education Reform Implementation

- drain of young teachers from education sector to other economy sectors;
- increase of academic staff average age;
- reduction of education and practical work length;
- teachers training/retraining system destruction;
- decrease of students material level;
- post-graduate department efficiency reduction;
- reduction in textbooks production and problems of library stock replenishment;
- obsolescence of material and technical base and laboratories of HEIs.

4.4. Problems Faced by Higher Professional Education

- absence of equal access to leading HEIs for graduates from regions, low income families, rural parts of the country;
- a gap between learning outcomes of general secondary school graduates and requirements of admission exams;
- widespread tutoring and pay courses for preparation to HEIs;
- insufficient connection between higher education and the labor market at federal and regional levels resulting in lack of interest showed by employers to organize practical work and recruit young specialists;
- production of young specialists for rural areas low efficiency due to their reluctance to work their;
- obsolescence of laboratory and technical equipment of HEIs;
- unemployment of HEIs graduates, employment of HEIs graduates in rural areas is another critical issue;
- absence of a mechanism to introduce tuition fee breaks for students;
- absence of HEIs graduates placement service;
- insufficient cooperation between higher professional education institutions;
- insufficient integration of HEIs with scientific institutions of the Russian Academy of Science and sectoral sciences;
- lack of modern economy mechanisms in higher education system;
- lack of compliance with international higher education system required for education services export expansion.

4.5. Major Directions of the Reform

1) Refusal from dogmatic approach to education and training:

- decentralization of university management, transfer of more authorities to faculties and chairs;
- provision of chairs and faculties with more economy and finance freedoms.

2) Design of efficient teaching methods:

- transfer to “case-technology” in education that’s especially critical in delivery of humanities, social and economy disciplines;
- design of flexible curricula aimed at education process efficiency and optimization enhancement;
- use of multimedia technology in education;
- additional education development, teachers’ training and retraining courses;

3) Создание необходимых социально-экономических условий для перехода к новой системе образования:

- introduction of a system to pay academic staff for scientific publications, methodology manuals and teaching aids production;
- introduction of targeted material aid system for students;
- raise of faculty and chair funds for teachers’ activity stimulation;
- introduction of a privileges system for children of HEIs academic staff.

4.6. Higher Education Development Strategy

Higher education development strategy is aimed at attainment of such social objectives as democracy development and strengthening, national self-consciousness formation, inter-ethnical relations harmonization, social tension decrease, Russian economy development in the new conditions.

Objectives of Higher Education:

1) Revision of higher education development model, integration of education institutions with university complexes, responsibility to ministry/departments, ownership forms and finance sources. Big universities should be considered as a core of the education system.
2) Design of a testing system and common state admission exam to HEIs as a guarantee of equal access to higher education.
3) Higher education efficiency enhancement, provision of its compliance with requirements of Russian labor market.

Elimination of unfair pay education system, establishment of state finance commitments, education loans and insurance in higher education system.

4) Design and establishment of education quality provision system:
- revision of education standards and programs;
- maintenance of HEIs education laboratories;
- education and methodology provision;
- development of academic staff activity;
- efficient monitoring of academic staff and students performance;
- enhancement of graduates final attestation level.

5. PROSPECTS OF HIGHER EDUCATION DEVELOPMENT

Major long-term and medium-term goals and objectives of higher education in Russia are provided by:

- The Governmental Action Plan for Social Policy and Economy Restructure for 2000-2001 adopted 26 July 2000;
- The Federal Program for Education Development up to 2005 approved by the Federal Law on 10 April 2000;
- The National Doctrine of Education Development in the Russian Federation up to 2025 approved 4 October 2000.

Primary actions of the government in education sector will be directed at increase in spending on education, its efficiency enhancement, capacity building for education funding from non-budgetary sources.

It is planned to introduce a contest based state order for specialists production distribution system and HEIs investment projects funding procedure, new system of scholarship distribution, contract system of relations between HEIs and the government and restructure higher professional education institutions via amalgamation and establishment of university complexes that would enable to enhance efficiency of government spending on professional education.

The government has started to design measures aimed at introduction of normative per capita funding via state financial commitments, identification of minimal budgetary education standards financing principle at the federal and local levels. An independent system of attestation and education quality control also would be developed.

The Federal Education Development Program is aimed at medium-term period. Its primary goal is development of education system to meet interests of harmonically developed, socially active and creative personality, economy and social progress based on education priority declared by the government.

A set of measures directed ad attainment of this goal is interrelated with objectives of education system reform identified by the Major Directions of Long-Term Social and Economy Development.

Implementation of the Program 2000-2005 is aimed at the following:

To identify education system medium- and long-term development strategy based on a complex study and analysis of economy, political, social, demographic factors. It is planned to provide education system development to meet interests of personality, society and state, substantiate scientifically education system development prospects, study ways of education system and the labor market interaction efficiency enhancement, to define prospects of specialists production that would meet requirements of the industry, the society and the state interests, review problems of needs in teachers evaluation methodology, design of state order for their production, ground teachers attestation criteria design methodology, develop methodology of state education statistics use and education system qualitative and quantitative condition indicators as well as indicators of its components to evaluate objectives of state education policy, substantiate block-scheme of statistics flows formation, technology of information collection and processing, mechanism of qualitative and quantitative indicators of education system condition assessment, design norms and of financial, material and technical provision of education system, ground state minimal education standards, design mechanism of state education loan system, funding of education institutions reportable to various level of authorities including problems of multi-channel funding from different level budgets, design scientific concept of education law development including basic directions of legal regulation of common national education system at level of the Russian Federation’s subject and at local level, ways of federal, regional and local education management systems and interconnections improvement, taking into account national and ethnic features of peoples and ethnicities of the Russian Federation when identifying education content.

A lot of work should be done to introduce new pedagogy technologies based on modern information and telecommunication technologies to provide intensive participation of students in education process.

Respective regional programs that heed national, cultural, social and economy, ecology and demography features of a concrete region identify major goals and objectives of the Program. They are aimed at solution of education issues identified by the Legislation of the Russian Federation as competence of the Russian Federations’ subjects.

All levels of professional education are to decide issues of education quality provision and monitoring. During next years when higher professional education institutions are unlikely to afford up-to-date equipment to ensure high quality of education and scientific process it is necessary to built up new relations with industrial enterprises on contract basis as well as on respective normative and legal regulations of federal and local levels.

One of expected results of the Program implementation is revision of higher education system directions, introduction of new pedagogy technologies based on information and telecommunication progress into education process.

Expected results of the National Education Doctrine Implementation in 2005 are:

Education quality

State education policy should provide the following:

- establishment of democratic education system that guarantees necessary conditions for quality education at all levels;
- individualization of education process via diversity types and forms of education institutions and programs that take into consideration interests and abilities of personality;
- competitive education (i.e. high level of education programs content and education services quality).

Access to Education

All citizens of the Russian Federation regardless their gender, race, ethnicity, mother language, generation, place of residence, membership in voluntary organizations, health condition, social, material and employment position are provided with following:

- free higher and secondary professional education on contest basis;
- free post-graduate education on contest basis;
- accessible for all and free special education for handicapped persons.

Education Sector Staff Salary

Salary of education sector employees would increase compared with average wages in industry due to increase of government’s spending on education, independence of education institutions and stimulation of budgetary and non-budgetary funds usage.

Right at the 1st phase salary of higher professional education institutions academic staff would be around double average wages paid in the industrial sector of the Russian Federation.

Pension

Employees of education sector would be paid pensions of honorable level based on increase in salary and establishment of sectoral pension system.

The 1st phase provides establishment of sectoral pension system for pedagogues. Increased pensions for academic staff, scientists and other categories of pedagogues would be paid from the pension system and funds of education institutions. Pedagogues who have over 25 years of service length and still work in education institutions would be offered extras for the length of service instead of pension.

Social Security of Students

The following guarantees are provided for students of education institutions are guaranteed:

- life and health protection, physical education;
- scholarships and social security allowances for students from low income families and some other groups of population;
- assistance in employment of graduates;

Education System Funding

The state policy of education system funding aims at growth of spending on education and its efficiency, capacity building for education funding from non-budgetary sources.

The Doctrine provides the following levels of education system funding:

- at the 1st phase (up to 2004) growth rate of state budgetary funds would surpass growth rate of supply;
- starting from 2001 designated funds would be provided for education development and education institutions informatization;
- attraction of funds from families budgets and other sources;
- the 2nd phase (up to 2010) growth rate of education funding from the state budget would be provided in accordance GDP growth rate;
- the 3rd phase (up to 2025) growth rate of education funding from the state budget would be retained and more funds would be allocated to education sector from other sources.

Education defines position of state in today’s world and status of man in society. National education has rich historical traditions and achievements acknowledged worldwide. In 20 century Russia attained universal literacy, started space exploration, reached advanced positions in all areas of fundamental science, enriched the world science and culture.

During the last decade many gains of national education were lost. That’s why the Doctrine aims at alteration of the state education policy, strengthening of education and science image in social consciousness to be a determining factor of modern Russian society development.

Fast education development according to the Doctrine is directed to take Russia out of the crisis, ensure prosperity of the nation, well-being to each family and citizen of the country.

Annexes

SUMMARY INDICATORS OF HIGHER PROFESSIONAL EDUCATION DEVELOPMENT IN RUSSIA (1990-2000)

Student Enrolment by Category

Public HEIs Students Enrolment and Graduation (‘000 people)

Private HEIs Student Enrolment and Graduation (‘000 people)