Education inRussia inthe First Decade ofthe 21st Century
Sergey Shirin


The study is based on amethodology proposed byEuropean Association for Education Law and Policy for their research conducted in2009and devoted tocommercialization, competition and corruption inEuropean education. Inthe monograph, the attempt is made toapply their methods toanalyze the commercialization, competition and corruption inRussian educational system that existed before the adoption ofnew educational legislation which came into force in2013.





Education inRussia inthe First Decade ofthe 21st Century

Commercialization, Competition and Corruption

Sergey Shirin



Sergey Shirin,2016



Reviewer Natalia Shveikina

Reviewer Irina Tiurina



Created with intellectual publishing system Ridero




Introduction


The new law On education inRussian Federation that was adopted inDecember 2012is considered bypublic opinion and bysome experts as the law on commercialization ofeducation which is directed against the excessive governmental control. Such control might result inviolation ofcompetition rights ineducational processes and relations. Under contemporary circumstances, an urgent academic issue is the question ofcompetition inRussian education system which is on the world Top-20. Does the new legislation bring any novelties into this field? Toanswer this question, we need first ofall tounderstand towhat extent Russian education had been corrupted before the new legislation started tobe workedon.

Some scholars have already done their research ofsome aspects ofthis problem. E.G. Popkova, V.V. Chashchin, and D.V. Bogdanov point out that the amplification ofthe requirements for quality and level ofeducation ofthe labor force leads tothe formation ofmodern mechanisms ofinteraction between the labor market and educational services, which is put into practice inpersonnel marketing, which fundamental task is the creation ofan attractive image ofan enterprise, as an employer, toensure its human resources activities with optimal quantity and quality. M. Esyutina, C. Fearon, and N. Leatherbarrow highlight some ofthe quality issues associated with the Bologna process and reflect on how the statements underpin quality oflearning and mobility inaEuropean higher education area context. They explore some ofthe issues raised from the documentation and examine some early experiences and challenges from aleading Russian university as part ofawider examination ofhigher education inaRussian context. M. LukIanenko, O. Polezhaev, and N. Churliaeva explain that engineering education inRussia is undergoing reforms, but the history ofthis form ofhigher education does not indicate that it will succeed inbringing it into line with current world standards, or even making it more able tocontribute at ahigh level toRussian economic growth. Some aspects ofRussian educational policy are mentioned inthe publications devoted tothe whole spectrum ofcultural policy or toforeign cultural policy ofRussia. But there are almost no works specially devoted tothe issue ofcompetition inRussian educational market yet, except some social and demographic aspects. Academic discourse providesus with no specific conclusions about the extent ofcompetition ineducational market inRussia under the circumstances ofthe former educational legislation and inthe common European context.

Meanwhile, one can find some works devoted tothe assessment ofthe level ofcommercialization insome other countries during that period oftime. Many ofthem are based on methodology proposed bythe European Association ofEducation Law and Policy (ELA). Before its annual conference in2009, this association sent out aquestionnaire concerning different aspects ofcommercialization ofeducation tointerested people inEuropean countries. The answers helped some academics who were members ofthe association tomake their conclusions relevant for different European countries. Russia was not inthat list. This monograph is an attempt toapply this method toRussia as the object ofresearch. It consists ofthe questions from ELA?s questionnaire and ofthe answers tothem.




Part 1. Competition law ineducation


1. Is providing free education acommercial service according tonational legislation?



The term educational service is found inthe Law ofthe Russian Federation (RF) On education 32661, dated 10July 1992inthe articles and clauses devoted topaid education. Only three times inthe text ofthe Law use ofthe term concerns not only paid education, but also afree one. Inpart 8, Article 19, it is stated: Educational establishments according toagreements and together with enterprises, institutions, organizations may provide training tostudents as an additional (including paid) educational service. Similarly, inpart 4, Article 50one can read that students ofall educational establishments have the right toreceive additional (including paid) educational services. Thus, paid services are only apart ofamore general notion ofeducational services. So, free education can be regarded as aservice, too, and its providing, according topart 8, Article 19, is possible with alicense (permission) tothe specified activity only. Inaddition, clauses 16and 17, Article 28place establishing the general principles offinancing ofeducational services and financing offederal government educational institutions and educational services itself among the credentials offederal bodies ofstate authority inthe field ofeducation.

It turns out that education belongs tothe sphere ofservices, rather than tothe social sphere, regardless ofbeing paid or free.

However, as the Law stipulates that educational organisations may be established inthe legal forms provided bythe civil legislation for non-profit organizations only (Article11.1ofthe RF Law On Education), commercial organizations are not allowed tocarry on educational activities and, therefore, education is not regarded as acommercial service.



2. Is providing paid education acommercial service according tonational legislation?



RF Law On education 32661dated 10July 1992stipulates the right ofeducational institutions toattract additional financial resources, within the limits ofthe procedure established byRF legislation, byselling additional educational and other services specified inthe statutes ofeducational institutions (part 8, Article 41). But the fact ofproviding paid education services does not mean their commercial nature. Tobecome commercial, they are necessary tobe provided not just for attracting additional financial resources, but for profit. According topart 2, Article 46paid educational activities are not considered as business, if the derived income is used for covering costs ofthe educational process (including salaries), its development and improvement inthe educational institution. If there is no business activity, one can not speak about commercial services.

Article 46applies only tonon-governmental educational institutions. Federal and local government agencies are not free at the disposal ofrevenues from providing paid educational services at all. Revenues may be used inaccordance with the statutory objectives only. Therefore, such institutions generally can not be considered as ones carrying out commercial activities bymeans ofpaid educational services. Their services, rather, should be recognized as non-profitable ones. Inaddition, Article 47ofthe Law On Education, which determines the list ofbusiness activities ofeducational institutions, does not include the paid educational services inthis list.



3. Please describe other activities provided byeducational institutions and their qualification as (public) services or otherwise?



Inaddition tothe purely educational activities, educational institutions inRussia carry out research and development work, library science, publishing and printing activities, they are involved inorganizing recreational activities, including theatrical shows, sporting, cultural, educational, and recreational and holiday events, etc. Educational institutions may also have non-commercial educational enterprises for students doing industrial practical work. All this kinds ofactivities are considered as non-commercial ones only if received income is reinvested inthe educational process ofthe institution, and if such activities are stipulated bythe institutions charters (clause 3, Article 47ofthe RF Law On Education).



4. Are schools allowed tohave commercial activities, and if affirmative, under what conditions?



The RF Law On Education determines that the educational institution is alegal entity. And according tothe norms ofcivil law, it may be aparty ofeconomic transactions, i.e., torun business within the limits prescribed bythe Civil Code ofRussian Federation and other Federal Laws.

These limits are listed inArticle 47ofthe Law On Education:

Educational institutions may engage inbusiness activities only stated inthe Law. There are only afew activities from the entire spectrum ofcivil transactions: the transfer ofproperty rights (lease), commercial representation (commission, agency), purchase and sale (inthe form ofretail sale), participating inparticular partnership. However, here should be added other profitable secondary operations not associated directly with the production and selling ofgoods, works and services that are mentioned inthe statute. This significantly extends the range ofpossible types ofbusiness activity.

Educational institution may only engage inthe type ofbusiness activity specifically stated inits charter. Bythis fact educational institutions significantly differ from other legal entities that have the right tocarry out any activity not prohibited bythe Federal Laws, unless it contradicts the object and purpose ofthe activities, stated inthe Charter oflegal entity.




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