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Table Dynamics of Budgetary Expenditure on General Education, Including per a Pupil, in 20002000 2001 2002 2003 2004 2005 2006 Expenditure, mln Rb. 107931 143972.8 215261.2 236600 298100 356084.7 475900 398750.Number of pupils, thousand. 20073.8 19429.1 18439.7 17322.9 16168 15185.1 14362,3 13670.Expenses per a pupil, Rb. 5377 7410 11673 13658 18438 23450 33135 40851.Growth of expenses per a pupil in 37.8 57.5 17 35 27.2 41.3 23.relation to the previous year, in % Inflation level, in % 18.6 15.1 12 11.7 10.9 9 11.Source: Ministry of Education and Science, the Rosstat.

Taking into account the inflation, dynamics of budgetary expenditure per a pupil in the system of higher education is presented in Fig. 7.

Thus, real growth of budgetary expenditure per a pupil in the system of general education was practically half of the nominal one.

In 2008 expenditure of the federal budget on education went up by 20.9% in comparison with 2007. At the same time, expenditure on the higher vocational education constituted in 2008 263.2 bn Rb., thus increasing in comparison with 2007 by 22.9%.

Section Social Sphere 2000 2001 2002 2003 2004 2005 2006 Expenses per a pupil Expenses per a pupil with inflation in mind Source: Russian Ministry of education and science Fig. 7. Dynamics of Nominal and Real Budgetary Expenditure per a Pupil in the System of General Education in 2000Inasmuch as the budget quota in 2006-2008 grew slower than budgetary expenses on higher education, this resulted in the fact that budgetary expenses have grown significantly per a budget student in the state higher educational institutions (Table 16).

Table Average Budgetary Expenditure per a Budget Student in Higher Education in 2004 2004 2005 2006 2007 Budgetary expenses per a student in higher education, thousand Rb. 25.6 41.9 56.8 81.1 100.Rate of growth, in % 63.7 35.6 42.8 23.Source: Russian Ministry of Finance, the Rosstat, authors calculation.

At the remaining levels of the educational system budgetary expenses per a student in 20042008 has also increased appreciably (Table 17).

Table Dynamics of Average Budgetary Expenses per a Pupil According to Levels of Educational System (without higher vocational education) in 2004 2004 2005 2006 2007 Budgetary expenses per a pupil in preschool institution, thousands Rb. 20.8 25.1 30.9 39.5 52.Growth rates of budgetary expenses, in % 20.5 23.1 27.8 33.Budgetary expenses per a pupil in general education school, thousands Rb. 18.4 23.4 33.1 43.7 55.Growth rates of budgetary expenses, in % 27.2 41.3 31.9 25.Budgetary expenses per a pupil in PVE institutions, thousands Rb. 22.3 26.3 33.9 44.3 54.Growth rates of budgetary expenses, in % 18.1 28.9 30.9 23.Budgetary expenses per a pupil in SVE institutions 30.3 42.2 53.1 66.8 87.Growth rates of budgetary expenses, in % 39.3 25.8 25.8 31.Source: the RF Ministry of Finance, the Rosstat, authors calculation.


RUSSIAN ECONOMY IN trends and outlooks As can be readily appreciated from Table 16 and 17, budgetary expenses per a pupil for the last 5 years were skyrocketing by more than 20% annually. The highest growth rates of budgetary expenses per a pupil in state higher educational institutions were recorded in 2005 when they went up by 63.7%.

All recent years the structure of extrabudgetary expenditure on education remains unchanged: 25% of extrabudgetary funds are allocated on preschool, general and basic vocational education, another 25% are allocated in secondary vocational training and 50% - on higher.

In 2006-2008 the structure of extrabudgetary expenses of higher educational institutions were subjected to major changes (Fig. 8).

Source: IRO SU-HSE data.

Fig. 8. Structure of Extrabudgetary Expenses on Higher Educational Institutions, under the Russian Agency of Education, in 20062008.

In 2006-2008 proceeds from students tuition fees represented main source for the extrabudgetary revenues of the higher educational institutions of the Russian Agency of Education. At the same time, in 2007 in comparison with 2006 other revenues of higher educational institution also went up (from 21.44 to 28.04%), where proceeds from R&D represented the lions share. In 2008, on the contrary, this share went down sharply (to 13%), and the share of proceeds from paid services boomed. 2008 changes were a reaction to the onset of the global crisis when higher educational institutions got fewer orders for R&D coming from private (non-state) sector. Thus, public-private partnership in the sphere of academic research went down in volume.

Section Social Sphere By and large, this fact demonstrates certain economic instability of higher educational institutions, which are more geared to research and development in comparison with higher educational institutions which were geared to teaching paid students.

Institutional Changes in the System of Higher Education In 2009 out of all institutional reforms which were recently taking place in the system of education, major attention was attracter to the standard state examination.

Standard State Examination On February 12, 2007 the President of the Russian Federation signed a Federal aw On the Introduction in the Law of the Russian Federation On Education and the Federal Law On Higher and Postgraduate Vocational Education with Regard to Holding a Standard State Examination. According to this Law since 2009 standard state examination (SSE) has been introduced in a regular mode and has become main form for education certification of general school leavers which will serve as a basis for subsequent enrollment into higher educational institutions. Higher educational institution will accept both school leavers with high SSE grades and champions of all-Russia and international competitions.

On September 5, 2008 the Russian Ministry of Education and Sciences issued an order #256 which approved the list of specialties subject to additional entry exams of creative and/or professional nature at the enrollment to the state and municipal institution of higher vocational education for bachelor course and occupational program.

Where the SSE of the olympiads results on a par with the SSEs results is substantiated by unconventiality of a pat of entrants (correspondingly they are not to be subjected to standard approaches and procedures), then the introduction of additional exams and tests is substantiated by a higher level of a higher educational institution, by particular properties of its curricula.

It appears, that equating the results obtained at a strictly particular olympiads to the results of SSE is rather acceptable. At this point, it is only necessary stipulate the status of such olympiads. For instance, they may be Russia-wide or international olympiads with independent judging. However, they may not be different regional or republican olympiads where the level and independence of judges are difficult to verify. Introduction of additional tests and exams by a number of higher educational institutions (except of creative and professional nature), from our point of view, may seriously discredit the idea of SSE in the eyes of the population. First, it will be impossible to enter those higher educational institutions by simply sending the documents, entrants personal presence will be required which will increase the costs for entering such high-status educational institutions and will make that unattainable for the children from low income households. Second, emergence of additional barrier may breed corruption, to eradicate which the SSE was designed. By no means unimportant is the fact that corruption may breed in the most prestigious higher educational institutions, which, undoubtedly, yet again will disappoint peoples expectations. As to the SSE, its results for this part of higher educational institutions will be highly devalued. It seems that, in principle, it may undermine trust to the (and to the SSE) of school leavers and their families.

In 2008 all subjects of the Russian Federation were already subject to the SSE. However, by far all the higher educational institutions where sticking to its results at the enrollment. Part RUSSIAN ECONOMY IN trends and outlooks of higher educational institutions was taking into consideration SSE marks, but the marks got at their entrance exams were paramount.

2009 was the first year when the SSE was held in standard mode and enrollment into all higher educational institutions was exercised according to the USE results (at the same time, 24 higher educational institutions were allowed to hold additional tests in major subjects).

The 2009 standard state examination results are represented in Table 18.

Table The 2009 SSE Results in General Subjects Of which, percent of the Of which, percent of past Percent of those who took current year school taking years school leavers taking SSE and got test score the SSE and getting test the SSE and getting test Number of score score Average test Subject pupils takscore ing SSE Above mini- Below mini- Above mini- Below mini- Above mini- Below minimum number mum number mum number mum number mum number mum number of points of points of points of points of points of points 1030236 96.99 3.01 97.24 2.76 94.35 5.65 56.The Russian language 976486 96.27 3.73 96.96 3.04 85.18 14.82 43.Maths 239037 93.05 6.95 93.55 6.45 88.41 11.59 47.Physics 84854 88.24 11.76 89.61 10.39 78.72 21.28 52.Chemistry 74402 87.08 12.92 87.94 12.06 76.47 23.53 55.Informatics and ICT 183792 91.01 8.99 91.25 8.75 89.29 10.71 51.Biology 208099 90.51 9.49 90.83 9.17 87.89 12.11 47.History 37495 89.06 10.94 89.20 10.80 86.96 13.04 49.Geography 83778 93.56 6.44 94.30 5.70 86.68 13.32 57.The English language 5371 88.61 11.39 89.76 10.24 79.57 20.43 43.The German language 2399 97.54 2.46 97.78 2.22 94.87 5.13 58.The French language 484377 94.33 5.67 94.52 5.48 92.15 7.85 56.Social studies 198 100.00 100.00 100.00 73.The Spanish language 63976 91.61 8.39 92.51 7.49 87.60 12.40 50.Literature Source: the Russian Federal Service of Supervision in the Sphere of Education and Science.

Due to the standard mode of operation of the standard state examination the following procedure for issuing a certificate of secondary general education has been determined. In the event a school leaver does not pass one of the two compulsory standard state examinations, in other words, has received score below the set out minimum, he/she may resit the examination once. Where he/she has not managed to score a required minimum simultaneously in two compulsory examinations (in the Russian language and Maths), then the school leaver may not resit the examinations and may attempt to pass these subjects only the next year. In this event the leaver does not receive a SSE certificate and instead a secondary school diploma he/she will get a reference of school attendance.

In the event a school leaver when taking any examination of his/her choice (not the Russian language no Maths) does not receive a mark below the minimum number of points, then he/she may resit this SSE only the next year.

Where a school leaver on two compulsory examinations scores the number of points above the set out minimum threshold and in the subject of his/her choice below the set out minimum, then he/she all the same will receive a secondary school diploma.

Section Social Sphere Thus, procedure for passing the SSE implicitly determines that in order to obtain a secondary school diploma from a Russian secondary school one has to pass two compulsory exams:

in the Russian language and Maths.1 For mastering other subjects the school actually may not be held responsible. Moreover, procedure for passing the SSE does not specify where and how school leavers who have not paused the Russian language and Maths can improve their knowledge which they failed due to various reasons to obtain. At that, it is not clear how it will be determined where it was due to poor efforts of a pupil or teachers. It also remains unclear the situation with the choice subjects, it is not determined where and how a school leaver can improve his/her knowledge in these subjects in order to able to pass them. Meanwhile, on July 24, 2007 a Law On Introduction of Amendments into Separate Legislative Acts of the Russian Federation Due to the Introduction of Compulsory General Education which holds the state responsible for delivery of educational services. Transfer of this task to pupils and their families jeopardizes first of all pupils from low income households who can not afford to get additional knowledge to prepare for the SSE on a paid basis. Correspondingly, these young people do not have roadmap for their subsequent education carrier. To be more precise, secondary school diploma is required to enroll in a secondary vocational education institution;

those who have not paused compulsory subjects may consider solely BVE institutions for their subsequent educational carrier. Those who have received secondary school diploma but had not scored required number of points in the choice subjects, most likely, will enroll in SVE institutions.

To a considerable extent, many uncertainties resulting from the introduction of the SSE led to the fact that years 2008 and 2009 can be called of the Standard state examination. Efforts against the USE were enhanced in spring-summer of 2008. Publication of 2008 SSE results to a large extent contributed to this. In 2008 23.5% of pupils failed to pass Maths and 11.2% - the Russian language. The worst results in choice subjects were posted in literature nearly 25.5% of pupils got low grade.2 This signified that nearly one third of school leavers would not have received a secondary school diploma and would not have been able to enter a higher education institution had it not been for the rule effective in 2008 plus one point according to which a higher mark in general subjects is entered into a secondary school diploma where the difference the difference between annual mark and the SSE mark amounts to one point. Taking into account the fact that getting higher education in Russia has become a social norm, such result has shocked the society not because the quality of school education has done down but due to the fact that entering a higher educational institution has again become an unattainable dream for many families. Standard examination instead of widening excess to higher education as it was always underlined during the SSE test period, in a single stroke has tuned according to public opinion into a barrier between school and higher educational institution.

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