Quasimarkets in the public sector economy

Abstract

The article explores the special features of the functioning of quasimarket systems in the education sector and in the domain of health care in the UK. Interest in this institution is motivated by the necessity of reforms in the social sphere of the Russian economy. The chronic lack of funds and their inefficient use, the drain of skilled workforce, outdated facilities, and the low quality of provided services are all consequences of insufficient funding and the outdated structure of the education and health care sectors in Russia. In these circumstances, a change in the economical structure of these sectors can be considered only as a short-term solution. In the long run, the authorities face the problem of forming new institutions that will be able to create economic incentives both for the successful development of the education sector and for the emergence of affordable health care that would comply to modern standards of quality.