Mechanisms of investment in education sphere: Problems and solutions

Abstract

Investments, in the traditional meaning of this term, can be made only in the sphere of paid education services. The most promising field for them is the market of supplementary professional education. Investments in education by businessmen currently do not constitute a significant source of education funding. That has mainly to do with the legislative regulation of the education sphere. The article analyzes shortcomings of the present legislation and shows why investments are illegal under present Russian conditions, as well as describes desirable changes in particular laws. The author suggests that the new form of autonomous institution could be used to carry out private investments in education provided some minimal legislative support is extended. As a specific tool, the author suggest to use obligations issued by an education institution (for non-governmental education institutions those would be certificates of participation in providing paid education services). Keywords: Private Investments, Non-governmental Education Bodies, Autonomous Institution, paid education services.