Government regulation of the market for higher education
This paper presents a model of strategic competition between universities that accounts for the existence of positive spillover effect from -education (peer effect). It was demonstrated that in the presence of peer effect strategic competition results in inefficient student allocation between the two universities (biased to the high-quality university) and excessive quality differentiation. The model is used to analyze the implications of government funding policies as well as admission and quality regulation. It was demonstrated that traditional schemes of institutional funding and students’ financial aid programs like tuition fee subsidy, quality investment subsidy, or total cost subsidy reduce social welfare. At the same time, an introduction of provision of tuition-free education for the best students combined with a per-student grant provided to the university improves both students’ and social welfare. It was also demonstrated that tight admission regulation is not socially desirable while the introduction of minimum quality standards makes society better off.
In this issue we present a range of papers about current issues and developments in social work and welfare in Russia. In the Soviet era official state policy did not recognise the existence of social problems so social work was ‘not needed’ in the USSR, a situation which existed to varying degrees in other countries under state socialism (Iarskaia-Smirnova, 2013). The disciplines of sociology and psychology (which could form a basis for critical thinking and professional interventions) were eliminated from university curricula, except in forms which accorded with the dominant political view, and dissent was repressed. There have been major changes in political thinking, societal attitudes and welfare developments since perestroika started in 1985, and particularly since 1991 when the Soviet Union was dissolved, Russia then became open to relationships with western powers and capitalist economic thinking. However, Russia remains a considerable independent power with a distinct history and culture. In this editorial we give a brief overview of the historical and other contextual factors which are informing the particular nature and direction of current developments, some aspects of which are described in the articles.
Since the first works on Higher Education Administration in the 1970s no comprehensive work in terms of purpose and scope of Higher Education has been published. There have been important changes in people’s aspirations vis-à-vis higher education globally. In parallel, the higher education systems, worldwide, have been undergoing constant transformation in response to these aspirations. From governments, employers and prospective students and their parents, the stakeholders in higher education system are now extremely varied paying close attention to the various aspects of higher education - from infrastructure, on-campus safety and security to administration, faculty and curricula. The present series attempts to take into account the issues of importance to all the stakeholders. Hence the series not only pays attention to the purpose and outcomes of higher education but also the economics surrounding higher education vis a vis marketization. The nitty gritty of running and maintaining a university infrastructure, impact of globalization and internationalization on delivery and demand of higher education, the commoditization of research, and changing paradigms of teaching and learning fall within the purview of the series. The increasing competition from other entities to provide degrees, certificates or other forms of credentials makes it important to have a work that brings all of the elements together to see how they actually interact and inter-relate from a systems perspective. The present series attempts to comprehensively attend to these issues and provide a complete reference resource to all those involved and interested in setting up of a Higher Education institution and its administration.
Bridging the gap between higher education research and policy making was always a challenge, but the recent calls for more evidence-based policies have opened a window of unprecedented opportunity for researchers to bring more contributions to shaping the future of the European Higher Education Area (EHEA). Encouraged by the success of the 2011 first edition, Romania and Armenia have organised a 2nd edition of the Future of Higher Education – Bologna Process Researchers’ Conference (FOHE-BPRC) in November 2014, with the support of the Italian Presidency of the European Union and as part of the official EHEA agenda. Reuniting over 170 researchers from more than 30 countries, the event was a forum to debate the trends and challenges faced by higher education today and look at the future of European cooperation in higher education. The research volumes offer unique insights regarding the state of affairs of European higher education and research, as well as forward-looking policy proposals. More than 50 articles focus on essential themes in higher education: Internationalization of higher education; Financing and governance; Excellence and the diversification of missions; Teaching, learning and student engagement; Equity and the social dimension of higher education; Education, research and innovation; Quality assurance, The impacts of the Bologna Process on the EHEA and beyond and Evidence-based policies in higher education.
The concept of sustainable development (SD) is aimed at preserving life on Earth and ensuring a decent level of life for the present and future generations. It is based on the values of conservation of natural resources, responsible consumption and ethical business practices, and confronts modern global challenges. The transition to SD implies a revision of existing values in the economics, ecology and social life of society. In this regard, education plays the most important role because it is responsible for the formation of the attitudes of the younger generation, and progress in the transformation of formal and informal institutional frameworks. In order to realize these processes, The UN has developed the global program "Education for Sustainable Development (ESD)" and formulated one of the specialized goals in the system of seventeen sustainable development goals approved by the UN for 2016-2030. Higher education plays a special role there, since it not only creates and disseminates knowledge about SD, but also influences the process of making future decisions by managers of various levels. In this context, the concept of “sustainable university” is becoming highly relevant and the experience of its practical implementation is gaining special importance. The purpose of this work is to overview the research papers of Russian and foreign authors to identify the specific features of a sustainable university as a necessary element of ESD.
The paper discusses the development of the organizational practices in a Russian university under the influence of the environment. In the latter, the key factors are legislation and regulations of the Ministry of education and science. This influence is ambiguous and varies in different aspects, so to understand combined effect one needs detailed analysis using purposebuilt tools. The paper introduces such tool based on ideas of business model canvas by Alexander Osterwalder and Yves Pigneur and organizational design theory by Henry Mintzberg. This instrument makes it possible to conduct a system analysis of the organizational design of the university, the integrity of this design and its fit to the environmental conditions. In particular, this analysis shows, how the system of restrictions and stimuli, created by the Ministry of education and science leads to the degradation of education quality in a classic university
The main reason the so-called "crisis of education" covers not only the rap-id changes in the system of knowledge and technology, but also the changes in the labor market, the prevalence of atypical employment. As a result, the univer-sity, by definition, can not train a specialist, fully satisfying the requirements of the employer. For example, the direction of "Advertising and public relations" proposes measures to resolve the existing contradictions.
In this paper, we discuss the methods of endowment management existing in the world and their applicability to the Russian university system. The endowment spending research focuses on the following issues: reinvesting endowment income; identifying the size of expendable endowment income; using the endowment body, not onlyincome; choosing endowment spending policy, rule and rate endowments, etc. We provide an overview of endowment fund financial indicators and endowment spending allocationin Russia. Based on the example of the HSE Endowment Fund, we analyze the use of endowment spending rulesand model of financial indicators for 2008–2014. The University’s Endowment Fund endowment spending policies implement the preservation principle, which may be reasonable in a stable economy. However, the viability of the principle is questionable in the crisis, the more so since the endowment is mostly in rubles. Using net asset valuation methods, the HSE Endowment Fund could provide equity betweengenerations with annual distribution of income in favor of the next and current generations.
The paper examines the structure, governance, and balance sheets of state-controlled banks in Russia, which accounted for over 55 percent of the total assets in the country's banking system in early 2012. The author offers a credible estimate of the size of the country's state banking sector by including banks that are indirectly owned by public organizations. Contrary to some predictions based on the theoretical literature on economic transition, he explains the relatively high profitability and efficiency of Russian state-controlled banks by pointing to their competitive position in such functions as acquisition and disposal of assets on behalf of the government. Also suggested in the paper is a different way of looking at market concentration in Russia (by consolidating the market shares of core state-controlled banks), which produces a picture of a more concentrated market than officially reported. Lastly, one of the author's interesting conclusions is that China provides a better benchmark than the formerly centrally planned economies of Central and Eastern Europe by which to assess the viability of state ownership of banks in Russia and to evaluate the country's banking sector.
The paper examines the principles for the supervision of financial conglomerates proposed by BCBS in the consultative document published in December 2011. Moreover, the article proposes a number of suggestions worked out by the authors within the HSE research team.