The "new" economics of education replaces the "old" economics expressed in human capital theory, which viewed education as contributing to individual enhancement and ultimately to economic betterment. The "old" economics foundered on the rising levels of youth unemployment, a result of declining productivity and…

Discusses how Russian vocational-technical education should be funded and proposes four possible scenarios. Recommends a privatization procedure in which an individual or a group of employees of a vocational school would purchase the institution from the government. (CFR)

Reports on an interview with the director of Secondary Specialized Education in Russia. Finds concern about the lack of appropriate educational funding to support changes necessary to produce students for a market economy. Calls for more training in economics, marketing, finance, and insurance. (CFR)

Discusses Russian political and economic changes and the impact on public education. Questions whether the emphasis on teaching ideas and new instructional methods is better than the work experience programs under the Soviet educational system. Concludes that the nation must maintain the labor training of students within school programs. (CFR)