Russian Federation

Russian education functions under the jurisdiction of the federal (central), republic, regional, and local (municipal) administrative organs. Among other responsibilities, their competence includes the realization of federal and international programs, accreditation of institutions, attestation of staff members, direct financing and control of educational activities. The Law on Education regulates the distribution of powers between administrative organs of different levels. The competence of the federal organs includes the development and implementation of the educational policy, establishment, reorganization, and elimination of institutions, setting up educational standards, and formation of educational infrastructure. Republic, regional, and municipal organs make decisions relating to their territory, whereas federal powers have the right to control their activities.

Previously the system of administration consisted of specialized organs: Ministry of Education, Ministry of Higher and Secondary Specialized Education, and the State Committee of Vocational Technical Training. It reflected the necessity to regulate specific areas, but at the same time brought about a number of negative consequences. The educational process was torn between different agencies; schools were separated from VUZs and the network of secondary professional training. The Academy of Pedagogical Sciences was subordinated to the Ministry of Education; as a consequence, areas headed by other agencies were not adequately embraced by the research. The administration of VUZs was distributed between 70 ministries, which brought about disproportion in staffing, location of facilities, financing, and equipment. By the year 2000 the functions of different agencies had been combined under the jurisdiction of the Ministry of Education of the Russian Federation. The main features of the administrative reform were: democratization; elimination of the state monopoly in managing the system; decentralization through giving more powers to regional and municipal organs; more independence granted to institutions; multiple forms of property; and self-determination of national schools.

The educational sphere is financed as part of the national and municipal budget. In 1992 the share of expenses on education from the federal budget was 5.65 percent, in 1998 it dropped to 3.45 percent. Further data reflect some positive tendencies: 3.63 percent in 1999 to 3.75 percent in 2000. Yet, only one-fourth of the need for financing throughout the country was satisfied from the budget. Monetary problems included chronic nonpayment of salaries to school teachers, disconnection of educational institutions from electricity and heat, and lack of funds for maintenance of buildings and other facilities. One of the government's goals was to develop mechanisms, which would provide multichannel financing of education, both from the state and private sources. Educational institutions were exempt from all kinds of taxes. Other taxation benefits encouraged sponsorship, investments in the sphere of education, and renting buildings to educational institutions.

The Doctrine on Education, adopted in 2000, established three stages of gradual change in the financing: First stage (until 2004): the tempos of growth of the financing of the educational sphere will be faster than the general expenditure from the budget; additional funds will be received from non-budget sources and fees paid by families. In the Second stage (until 2010) financing will grow in accordance with the increase of the gross internal product, with additional funds coming from family budgets and enterprises. For the third stage (until 2025): the tempos of growth of the budget financing will be preserved; there will be a significant increase of funding from non-budget sources.