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Thus, two key factors - labor and housing tend to become constrains of the mobility in the present-day Russia.

According to the official statistical data, the scale of the internal migration in Russia since early 1990es reduced by 2.2 times: from 4.2 million of relocations in 1990 to 1.88 million in 2011. (Fig. 13). In 2010, a slight increase of the number of internal relocations was recorded.

It should be noted that the analyzed data describe the migration that is accompanied by the change of registration at the place of residence without due account for numerous temporary relocations in the process of registration at the place of residence or without any registration at all. According to the Center of Migration Studies, based on the results of the surveys in various types of settlements in 2000-2001, 3 million of people5 participated in the internal A. Zyuzyaev. It is time to cancel registration (an interview with V. I. Mukomel)//Komsomolskaya Pravda, June 16, 2010.

State contract Development of a model of organization of employment in other locations of citizens looking for jobs, by the government authorities, Leader M. B. Denisenko M. B. Denisenko, L. B. Karachurina, N. V. Mkrtchyan. Are Russian unemployed ready to move to find a job // Demoscope Weekly. 2010. No 445-446. http: demoscope.ru/weekly/2010/0445/index.php According to the generally accepted Garnie-Rosset, classification, countries/regions with 16th-18th share of population in the age of 60 and older are referred to the high level of demographic aging. In 2009, in Russia this indicator was 17.8%. // Demographic yearbook of Russia 2010. Rosstat, 2010.

Migration of population. Issue 2: Labor migration in Russia. Supplement to Journal Migration in Russia M., 2001, p.21.

RUSSIAN ECONOMY IN trends and outlooks temporary labor migration; this figure is comparable to the scale of labor migration to Russia from the CIS countries.

Internal migration in the developed countries is an important regulator of regional and local labor markets; as a rule, the larger is the territory of a country, the more significant is internal migration. Thus, in the USA, according to the current survey data in 2008-2009, 21 inhabitants per 1,000 made inter-district moves in the same state, and 19 inhabitants out of each thousand moved to another state. For the same period in Australia, 17 thousand of people were involved in inter-regional migration, while in Canada 9.5 thousand.

2010.* preliminary data.

Source: Demographic yearbook of Russia 2010. Rosstat, 2010.

Fig 13. Migration across Russia in 19892010, in thousands of people Similar estimates for Russia suggest 12,000 13,000 persons for each thousand (including 6.67.2 thousand in intra-regional relocations and another 5.45.8 between the regions) which may be compared with intensity of internal migration in such European countries as Spain (comparable in terms of the area to Khanty-Mansysk Autonomous District), Italy (Tomsk region), Czechia (Krasnodar Krai or Nizhny Novgorod region) 1.

When the crisis broke out, efforts were made to migrate citizens from the so-called monocities more actively, e.g. from Togliatti to Tikhvin 2. Agency for Restructuring of Mortgage and Housing Loans (ARIZhK) is a developer of the program of relocation of residents of the mono-cities to other regions. The relocation scheme is as follows: a person agrees his/her. B. Denisenko, L. B. Karachurina, N. V. Mkrtchyan. Are Russian unemployed ready to move to find a job // Demoscope Weekly. 2010. No 445446. http: demoscope.ru/weekly/2010/0445/index.php Relocation of AutoVAZ//Vedomosti, January 28, 2010.

In thousand people 2010* Section 5.

Social Sphere move with the Agency, then moves to a new city and is granted a hostel for a time being;

he/she finds a job and looks for a new housing. ARIZhK evaluates and pledges his/her previous housing space, and against this collateral issues a two-year loan at 2/3 of the Central Bank refinancing rate. The loan amount will be equal to the cost of the housing less the interest accrued for the two years. The migrant using the loan is expected to buy a new housing, and if the loan sum is not enough, a bank will give a mortgage loan to the migrant. Within the two years the migrant can sell his previous housing or assign the right thereto to the Agency. How this scheme works practically and whether it will be efficient, is unclear yet. The very idea of administrative regulation of internal relocations seems doubtful. In case of Togliatti and Tikhvin, the scheme does not seem to be workable: the change of a large (in the Russian perspective) city of Togliatti (hit by the crisis) located on the south (720,000 residents) for a small (about 60,000 people) city of Tikhvin that has a lot of problems in terms of development of industrial sectors, unemployment and some social issues will hardly be attractive to a large number of people.

Another idea of internal migrations in Russia is to relocate from problematic (in terms of unemployment) regions of the Northern Caucuses about 30,000 40,000 people annually to other regions of the country via Agency for Labor Migration; this idea was outlined in the approved Strategy for Social and Economic Development of the Northern-Caucuses Federal District till 2025 1 and looks doubtful in terms of its possible implementation.

5.4. Russian Education Basic Development Trends in 2000 5.4.1. Russian Education within a Global Context The Russian Federation is regarded as a country whose population has a formally high level of education.

In 2009, the population with higher (including postgraduate) and secondary vocational education accounted for 28.2% and 27.1% of the total employed population, respectively.

Hence a share of the population with higher and secondary vocational education reached 55.3% of the total employed population. Russia is ranked number four worldwide in this indicator after Norway, USA and the Netherlands2.

Having 523 higher education students per 10,000 persons of the population, Russia is ranked number two worldwide after the United States. By adding students of SVE institutions (tertiary education according to the international classification) to this figure, Russia would have 673 students per 10,000 persons of the population and world lead in this indicator.

However, Russia was ranked number 65 worldwide in the list of 169 countries in under the Human Development Index4 (HDI) which is estimated as part of the UNDP. Table shows four countries with the highest Human Development Index, namely Norway, Australia, Order of the RF Government of September 6, 2010, No 1485-r On the approval of the Strategy for Social and Economic Development of the Northern-Caucuses Federal District till 2025.

Educational Indices. Statistic Year Book. M.: HSE-NRI (Higher School of Economics of the National Research University).

Report on Human Development 2010. http://hdr.undp.org/ en/reports/global/ru/.

The Human Development Index (HDI) is an integral indicator which is estimated annually to make crosscountry comparison and measure living standards, literacy, level of education and life expectancy as the key features of human development in the surveyed area. HDI is a tool which is used to making a general comparison of living standards at different countries and regions.

RUSSIAN ECONOMY IN trends and outlooks New Zealand and the United States of America, as well as the BRIC countries, which included most dynamically developed countries prior to the global economic recession in 2008.

Furthermore, the Table includes the Russias nearest HDI neighbor-countries ranked numbers 60 to 70, including Kazakhstan, one of the former republics of the Soviet Union, which carried out radical reforms in its educational system and was ranked number 66 in HDI in the UNDP rating.

Table Human development index in specific countries in Average dura- Gross national Estimated Estimated life tion of educa- income (GNI) HDI rating of Human devel- duration of Country expectancy at tion for adult per capita the countries opment index education birth (years) population (PPP in USD, (years) (years) 2008) Norway 1 0,938 81,0 12,6 17,3 58 Australia 2 0,937 81,9 12,0 20,5 38 New Zealand 3 0,907 80,6 12,5 19,7 25 USA 4 0,902 79,6 12,4 15,7 47 Serbia 60 0,735 74,4 9,5 13,5 10 Belarus 61 0,732 69,6 9,3 14,6 12 Costa Rica 62 0,725 79,1 8,3 11,7 10 Peru 63 0,723 73,7 9,6 13,8 8 Albania 64 0,719 76,9 10,4 11,3 7 Russian Federation 65 0,719 67,2 8,8 14,1 15 Kazakhstan 66 0,714 65,4 10,3 15,1 10 Azerbaijan 67 0,713 70,8 10,2 13,0 8 Bosnia and Herzegovina 68 0,710 75,5 8,7 13,0 8 Ukraine 69 0,710 68,6 11,3 14,6 6 Iran (Islamic Republic) 70 0,702 71,9 7,2 14,0 11 Brazil 73 0,699 72,9 7,2 13,8 10 China 89 0,663 73,5 7,5 11,4 7 India 119 0,519 64,4 4,4 10,3 3 Source : UNDP. Human Development Report 2010.

With regard to education, Russia fall far behind the leading countries in average duration of education for adult population as well as estimated duration of education. Had it not been for a lower GNP per capita, Kazakhstan would have left Russia behind in this rating, though it fall behind Russia in terms of life expectancy. The leading countries comprise not only countries with economically high living standards (per capita GNP), but also those with long terms of education of the working population, which in many ways makes their development dynamic.

With regard to Brazil, China and India, though these countries fall behind Russia in terms of educational and per capita GNP, they leave Russia behind in public health indicators expressed in estimated life expectancy at birth (save for India, where this indicator is lower than in Russia). This conclusion is true for the Russias HDI neighbor-countries, most of which leave Russia behind in public health indicators and average duration of education for adult population, because most of them transited to the 12-year school education.

Russia was ranked number 41 (for reference, Kazakhstan is ranked number 22) in the composite index of education estimated as part of the UNDP, and 122 in the healthcare composite index in 2010. In 2007, Russia was ranked number 118 in the healthcare index, which means that situation in this field has been aggravating globally. In the meantime, the public health status in Russia, in particular high death rate of the working population, is, generally speaking, referred to the issues of quality of education.

Section 5.

Social Sphere 5.4.2. Russian Education Financing Policy Dynamics in General Expenditures on Education In the period between 2000 and 2010, expenditures on education increased from both public and private sources. Between 2000 and 2003, a share of budgetary expenditures on education in GDP increased from 2.9% to 3.8% and then gradually stabilized as absolute volumes increased. In 2009, consolidated budgetary expenditures increased by 7.1% against 2008, whereas GDP reduced by 7.9%. This resulted in growth in a share of budgetary expenditures on education in GDP up to 4.6%. In 2010, this share decreased a bit (Table 9).

In Russian statistics, private expenditures on education are referred to as The scope of paid services in the educational system with due account for hidden and informal activities.

Dynamics of the scope of paid services in the educational system tend to grow steadily, with growth rates having been comparable with growth rates of budgetary expenditures on education to date (Table 10).

Table Budgetary expenditures on education in 2004 2004 2005 2006 2007 2008 2009 Consolidated budget for education, 593,2 801,.8 1033,3 1342,3 1664,2 1783,5 1893,bln RUB, including 121,6 162,1 201,6 278,5 354,9 418, 0 442, federal budget for education consolidated budgets for educa- 471,6 628,6 831,7 1063,8 1309,3 1365,5 1450,tion of the constituent territories of the Russian Federation Expenditures of the consolidated 3,5 3,7 3,9 4,1 4,1 4,6 4,budget for education as % of GDP, including:

of the federal budget for educa- 0,7 0,8 0,8 0,8 0,8 1,1 1,tion consolidated budgets for educa- 2,8 2,9 3,1 3,3 3,3 3,5 3,tion of the constituent territories of the Russian Federation A share of expenditures on education 12,7 11,8 12,3 11,9 11,8 11,1 11,in the consolidated budget of the Russian Federation, % A share of federal budgetary expendi- 2,6 2,4 2,4 2,5 2,5 2,6 2,tures on education in the expenditures of the consolidated budget of the Russian Federation, % A share of consolidated budgetary 10,1 9,4 9,9 9,4 9,3 8,5 8,expenditures on education of the constituent territories of the Russian Federation in the expenditures of the consolidated budget of the Russian Federation, % Source : Rosstat (Federal State Statistics Service), Russia in Figures, the Federal Treasury.

RUSSIAN ECONOMY IN trends and outlooks Table Percentage of paid services in the educational system in 2000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010* Percentage of paid ser- 41,5 56 72,9 95,4 118,7 147 189,6 231,7 281,2 306,0 vices in the educational system, bln RUB as % of GDP 0,6 0,6 0,7 0,7 0,7 0,7 0,7 0,7 0,7 0,8 0,* tentative data published by Rosstat.

Source : Rosstat, Russia in Figures.

Comparative dynamics of growth in budgetary expenditures on education and paid services in this field is presented in Fig. 14.

1893,2000 160,0% 1783,135,2% 129,9% 1800 128,9% 1664,140,0% 122,2% 124,0% 120,0% 1342,100,0% 129,0% 121,4% 1400 107,2% 123,8% 106,2% 100,0% 108,8% 1033,106,5% 100,0% 1000 80,0% 801,60,0% 593,40,0% 281,231,189,118,7 20,0% 0 0,0% 2004 2005 2006 2007 2008 2009 Consolidated budget for education, bln RUB Percentage of paid services to the general public, bln RUB CBE Growth rate, % Paid services growth rate, % Source : Rosstat, Russia in Figures, the Federal Treasury.

Fig. 14. Dynamics of budgetary expenditures and paid services for education in 2004Dynamics of changes in budget financing for education and scope of paid services adjusted for inflation is shown in (Fig. 15).

As shown in Fig. 15, consolidated budget for education in real terms began to decrease since 2008, scope of paid services since 2010 (in 2009 it was equal to that in 2008 ).

The school education system, including extended education of school-aged children, accounted for about 12.5 13% of total scope of paid services. Hence according to preliminary estimates, in 2010 the population paid nearly RUB 40,2 41,8 bln for paid school services and extended education of schoolers.

Section 5.

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