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Budgetary institutions also exist in entrepreneurial sector and during 2004 their number rather increased due to a new wave of restructuring of federal public unitary enterprises network. Many of those institutions did not want to be privatized because they feared that their activity pro file would be changed and thus preferred to get a status of budgetary institution.

In 2003 RF Goskomstat for the first time submitted data on distribu tion of organizations are engaged in research and development by or ganizational and legal forms. It turned out that in the overall number of organizations these institutions (which comprise but were not sepa rated out) constitute 43.3 per cent30.

This data can only be taken into account because there is no exact information on distribution of organizations with different organizational and legal forms by sectors of science, each of which has its own specif ics of budgetary institution performance, which influences the choice of scenario of reformation of scientific organizations network.

Academic scientific organizations are in the majority among scien tific organizations with budgetary institution status. In this connection, it makes sense to analyze the situation of RAS and institutions, which are in jurisdiction of the Presidium of RAS in greater detail.

According to its Statute and the Federal law УOn Science and State Scientific and Technological PolicyФ the Russian Academy of Sciences represents a unique organizational and legal form, which in its essence RussiaТs science in numbers: 2003. Statistical collection. Мoscow. TSISS, 2003, p. 21.

is closest to the form of an institution. Academies are public autono mous organizations with their own statutes, which do not fully corre spond current legislation (in particular, Budgetary and Civil Codes.) They distribute funds among research and development institutes.

Moreover, they can do it arbitrarily.

According to provisions of the Federal law УOn Science and State Scientific and Technological PolicyФ academies of sciences are non profit public organizations (institutions), although the civil legislation does not define such notion. On the basis of features defined in law, typical public academy can be defined as public institution. This is de fined in RAS Statute. Russian Academy of Sciences has preferential treatment regarding budget funds allocation: a separate budget line. In 1997 RAS received legal entity status and accreditation with the Minis try of Science and Technology as a scientific organization.

Main difference of RAS from other public institutions consists in its autonomy. Russian Academy of Sciences has two highest collective administrative bodies - general meeting of RAS and Presidium of RAS.

They are, in particular, authorized to discuss core budgetary financing (core public funding does not include additional sources of financing of RAS - all such incomings are in direct jurisdiction of the President of RAS.) Thereby, at present RAS is a legal entity of a special type. Its legal status is not clearly defined in civil legislation.

Inventory of scientific organizations In 2002Ц2003 Ministry of Industry and Science started to carry out inventory of scientific organizations. It resulted in the fact that for the first time data became available regarding performance of scientific organizations depending on their organizational and legal form. Data of nonrecurrent survey of the organizations with a status of scientific insti tution provide state of condition of scientific and technological complex of the country and are incomparable with the official statistics data.

All in all the register included 3,180 scientific organizations from all sectors of science. In this sampling the share of institutions was a little lower (42.4 per cent against 43.3 per cent) than the share of research and development organizations. Goskomstat annually collects and generalizes information of the latter.

A conclusion was that during passed decade the number of institu tions in the sphere of science increased 1.5 fold31 mainly because of academic organizations and organizations in jurisdiction of federal min istries and agencies.

Regarding personnel employed by scientific institutions its number as a whole during passed decade contracted by half. At the same time, in RAS organizations and other public academies as well as in scientific organizations in jurisdiction of regional administrations such reduction was not so dramatic. The number of researchers is continuing to fall.

Their number per 10,000 economically active population fell at present to the lowest level for the last eight years. At the same time, the number of researchers in public sector of science went up. Aging of personnel was continuing.

According to the inventory findings, public unitary enterprises re ceive the highest share (58.5 per cent) in the overall volume of alloca tions for scientific organizations having the right for economic activity.

They are followed by open end joint stock societies OAO (26.3 per cent) and institutions (9.1 per cent.) At the same time, major part of public funding falls on federal public unitary enterprises and not on sci entific budget institutions. This testifies to the fact about emergency of reformation of federal public unitary enterprises in the sphere of sci ence along with restructuring of public institutions network.

The level of salaries is an important indicator among cost indicators.

In institutions it turned out to be the lowest, which is explained by cur rent salary and wage rates distribution. At the same time, other income earned by researchers is recorded not always (in addition to secondary employment we mean research done in the framework of individual grants, consulting services, provision of expert services.) 1.3.2. Financing of science from the federal budget and other sources According to provisions of the Federal law УOn Science and State Scientific and Technological PolicyФ financing of scientific and (or) sci entific and technological activity is carried out from the federal budget funds, budgets of the subjects of the Russian Federation, extra budget Report on the finings of inventory of scientific organizations in Russian Federation. Min istry of industry, science and technologies. Мoscow. 2003.

ary sources, and other sources in accordance with the Russian legisla tion.

Table Structure of internal costs on research and salaries by financing sources (in %) 1996 1997 1998 1999 2000 2001 2002 2003* Total 100 100 100 100 100 100 100 Budget funds 60.7 59.6 52.2 49.9 53.7 56.2 57.3 57.Funds of organizations of busi15.3 15.5 17.3 15.7 18.7 19.6 20.7 20.ness sector Funds of private non-profit or0.5 0.8 0.9 0.04 0.04 0.2 0.09 0.ganizations Proper funds of scientific organi11.5 10.5 13.7 10.4 9.0 10.1 9.6 9.zations Means of extra budgetary funds 6.2 6.0 5.5 6.9 6.5 5.2 4.1 4.Funds of higher education estab0.1 0.1 0.1 0.2 0.08 0.1 0.1 0.lishments Funds from foreign sources 5.6 7.4 10.3 16.9 12.0 8.6 8.0 7.* Preliminary data.

Source: RF Goskomstat.

It should be noted that it is not feasible to determine which part of budgetary bunds is allocated just to the budgetary scientific institutions (on the basis of estimate of expenditure and revenue).

Major part of budgetary expenditure on the civil science is entered in section 06 of the budget>

There is a peculiarity in the budget>

Regarding distribution of financing by main directions of expendi tures in section 06 then the highest share of financing falls on acad emies of science with public status.

Table Main lines of federal budget expenditures by section 06 УFundamental research and promotion of scientific and technological progress,Ф in per cent Title 2001 2002 (plan) Ministries and agencies 30.4 30.7 32.0 27.Academies of science with public status 39.9 43.0 40.5 42.Target budgetary funds 8.1 8.2 6.9 7.Priority directions of science and technology 21.6 18.1 20.6 23.development Of which Financing of research and development of fed10.2 8.8 8.4 12.eral target programs Source: RF Finance Ministry.

Budgetary allocation on Russian Academy of Sciences and carrying out of research and development activities were growing at the highest rates.

Functional budgetary>

Distribution of funding by economic>

In Russian Academy of Sciences, which comprises the overwhelm ing majority of public institutions, the share of allocations by section constitutes 84 per cent of the overall public funds allocated to it (of which 86.5 per cent is spent on research and development activities (line Фother research and development activitiesФ). From remaining per cent of public funds 34 per cent (627,700 thousand rubles in budget) is spent on capital investments. At the same time, the line Уother research and development activitiesФ includes both estimated expenses on the maintenance of institutions and on financing of re search and development activities of departments and Presidium of RAS carried out on a competitive basis. To estimate the ration between shares distributed by УprogramФ and estimate ways is possible only ap proximately with the help of data submitted annually at the General meetings of RAS. According to the available information for 2003 Уpro gramФ share of RAS budget constitutes at present about ten per cent32.

Current public financing of scientific and other research institutions does not cover all their needs. By admitting this fact the government permitted institutions to receive additional income by renting their facili ties and by doing paid work for other organizations. True information of the value and composition of property, which can serve as extra budg etary source of financing and on the volume of additional revenues is unavailable.

At present there are no scientific institutions financed only from the state budget. For example, in higher education establishments financ ing of science from extra budgetary sources on average surpasses public funding 2Ц3 fold. At present over half of research and develop ment costs are financed from the state budget, which is considerably more that in the majority of developed countries where extra budgetary Report by Chief Scientific Secretary of the Presidium of RAS, V. Kostyuk, given at the General meeting of RAS on 25 May 2004.

sources cover more up to 78 per cent of the overall volume of internal expenses on research and development. For example, the budget share in internal research and development costs constitute according to 2002 data 57.3 per cent, which constitutes growth by about 4 per cent in comparison with 200033. Funds of the business sector and extra budgetary funds constitute less than 25 per cent, which is a rather small number. In developed countries the share of business sector in funding science constitutes 50 per cent (Great Britain, France) and 73 per cent (Japan).

At the same time, there is a tendency to a reduction if funding by foreign organizations and foundations. Scientific community mainly be lieves in foreign financing because in latest years at the expense of for eign funds they modernized scientific equipment, purchased reagents and laboratory materials, went on business trips and participated in conferences. In such circumstances the role of public funding can only grow.

1.3.3. Conclusions At present organizational structure of Russian science is divided into three sectors: public (including organizations of public academies), business (entrepreneurial) and higher education sector. Scientific or ganization regardless of its organizational and legal form (institution or enterprise) remains the main recording entity. That is why, revealing features of public scientific institutions operation, directions and ways of spending public funds is possible only on the basis of estimated evaluations and by case studies.

Major share of budgetary scientific institutions is concentrated in the public sector and in higher education sector. Academic scientific or ganizations are in the majority among scientific organizations with pub lic status.

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