At first glance, the higher education sector may look to have embraced the challenges and pressures of moving towards a market system. However, there remain longer term issues that must be addressed if the higher education sector is to survive and ultimately prosper. This paper examines more closely the financial and legislative reforms implemented in the Russian Higher Education sector. It outlines the institutional and structural changes that have taken place in response to these changes, and the effect of the external environment on the sector. The implications for further reform and institutional change are also discussed. These issues are analysed within a framework of the New-Institutional approach to economic organisations. JEL Classification: I20, P21.
this paper are entirely those of the authors. They do not necessarily represent the view of the World Bank, its Executive Directors, or the countries they represent. Policy Research Working Papers are available online at http://econ.worldbank.org. Buckley is at the World Bank; Cartwright and Struyk are with the Urban Institute. The latter worked with USAID in Russia between 1992 and 1998, and the former was at the World Bank when this study was done; Szymanoski is with the US Dept of Housing and Urban Development where he helped develop HUD's Reverse Annuity Mortgage Insurance Program. Email addresses are: Rbuckley@worldbank.org; Kcartwri@ui.urban.org; RStruyk@ui.urban.org ESzymanoski@OFHEO.gov. Many people gave us helpful comments on an earlier draft of this paper or helped in other ways. Without implicating them in any remaining errors or suggesting that they share our views we would like to thank: Achim Duebel, Jim Follain, Louise Fox, Lev Freinkman, Joszef Hegedus, Elena Klepikova, Andrei Markov, Ed Mills, Federico Mini, Evgeny Polyakov, Henry Pollakowski, Jim Poterba, David Powell, John Quigley, Clare Romanik, Barney Schwalberg, Margret Thalwitz, and Dimitri Vittas. Assistance from a Dutch Trust Fund for low income housing is greatly appreciated. Executive Summary The experience of the elderly in Russia during the transition has been difficult, and in many ways, they have often been among the most vulnerable and those least able to cope with all the changes that have taken place. Unlike the situation prior to reform -- when pension payments were stable and the elderly paid almost nothing for health care, housing, and transportation -- in the new economic order, they face considerable uncertainty and often have difficulty making ends meet. If they have not recently .