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By Irina Podsushnaya
The Russian economy has grown steadily over the last six years, illustrated by a 7% average annual GDP growth rate. The country needs a well-educated population to contribute to its success and global competitiveness. The Russian Far East, the easternmost area of the country, is rich in natural resources and requires an educated workforce to sustain its average growth rate of 7%. The U.S. is the most popular destination among RFE students for both undergraduate and graduate study programs abroad. The recent devaluation of the dollar has contributed to this popularity.
Opportunities exist in the RFE for U.S. companies to cooperate with local post-secondary educational institutions to introduce Western teaching methods and programs, provide financial loans and scholarships necessary to bring Russian students to the U.S., and to establish partnerships with recruiting agencies.
Market overview
The Russian Far East totals 6 million square kilometers and lies on the Pacific Coast. It reaches north to the Arctic Ocean and is bordered by China on the south. It includes eight administrative regions with a total population of approximately seven million people concentrated in the cities of Vladivostok, Kharbarovsk and Komsomolsk-na-Amure. The area is rich in natural resources and depends upon the oil and gas, timber and shipping industries for economic growth. More than 36 universities and technical institutes focus on engineering, mining, marine, shipping, construction, and ecological programs. Russian and Western employers in the region indicate that the demand for qualified workers in these industries exceeds the number of available workers. There is also a general lack of MBA graduates, medium and high-level managers, and marketing specialists.
Russian educational system
The Russian system of education includes 11-year secondary school programs, two and four-year programs in secondary professional colleges, and five to six-year university programs.
Post-secondary education or graduate degree programs offer evening, weekend, distance, or online learning programs for 2 to 3 years. Secondary school graduates employed full time can also find correspondence study programs that may take longer to complete.
Secondary school system
Secondary education remains free of charge, but there are also private schools that offer smaller classrooms (5-9 students compared to 20-30 at public schools), better trained teachers, a wider range of extra-curricular activities, and several foreign languages. Monthly school fees run from RR 3 000 to RR 10 000 (approx. USD 111 to USD 370). Private schools must be state accredited and licensed. English is mandatory for study in secondary schools starting in grade four and some schools offer Chinese or Korean.
Secondary schools, especially in rural areas, face a lack of teaching materials, equipment, well-trained teachers, as well as a poorly developed general infrastructure. The Russian government and local administration are trying to improve this situation through a national project focused on bringing broadband Internet connection and modern computer equipment into schools.
High school students can study for two years at specialized colleges run by universities, offering programs in mathematics, programming, economics, marketing, etc. Final exams are often used as admission tests to university programs and successful students can enter them free of charge.
University system
All public and private educational institutions must be accredited by the Russian Ministry of Science and Education. The federal government offers some funding for the brightest students, but most students must pay their own tuition, ranging from RUR 16 000 to RUR 58 000 (approx. USD 580 to USD 2 080) per year.
There are 3 levels of higher education in the Russian system. Levels I and II correlate to the U.S. system of bachelors and masters programs. There are around 50 fields of concentration in bachelors programs and 200 in masters programs. The doctoral program has 2 levels starting with a candidate of science, roughly equivalent to the U.S. doctorate, and a higher, professorial doctorate degree.
There are 37 public and 16 private universities and institutes in the Russian Far East with approximately 500 000 students. The following is a list of public universities for each territory/region.
Primorsky territory universities
The largest urban areas in the RFE are located in the Primorsky and Khabarovsk territories. These are considered to be the educational centers of the overall region. The following is a list of public universities in the Primorsky territory:
Medical State University
Vladivostok State University of Economics and Service
Far Eastern State Academy of Arts
Far Eastern State Fishery University
Far Eastern State Technical University (FESTU)
Far Eastern State (National) University (FENU)
Marine State University
Primorsky State Agricultural Academy
Pacific State Economic University
Ussuriysk State Pedagogical Institute
Pacific State Navy Institute
Far Eastern National University (FENU) is the major and oldest educational institution in the region. It offers 358 fields of study in sciences and humanities. FENU has partnerships with 80 universities throughout Asia and the U.S., and offices in Seattle and Anchorage. It has a joint Russian-American School of International Economic Relations and Management with the University of Maryland and represents Russia in the Association of Pacific Rim Universities.
Far Eastern State Technical University (FESTU) is also one of the oldest and largest universities in the RFE. It is a large scientific and educational center with an outstanding reputation as a higher education institution offering more than 100 degrees. The most popular and demanded concentrations include: shipbuilding, mining engineering, civil and construction engineering, radio electronics, architecture, and mechanical engineering, as well as oil and gas majors.
FESTU has partnerships with leading technical Russian universities. The University has partnerships with many foreign universities and technical schools including San Diego New Architectural School and California State University in Sacramento.
The most Westernized university in the region is Vladivostok State University of Economics and Service, with the most developed infrastructure among local universities, including modern classrooms, electronic libraries, a medical center, a modern theater, etc. The University offers more than 60 majors as well as an MBA joint program with the College of Business Administration of California State Polytechnic University Pomona and the College of Business and Economics of the California State University Hayward. In 2008, Vladivostok State University signed an agreement with East Carolina University on implementing a mutual Global Understanding Course designed for students to study other cultures from their home campus.
Khabarovsk territory universities
The leaders in Khabarovsky krai are: Khabarovsky State Transport University and Komsomolsk-na-Amure State Technical University. As a result of the development of the regions marine industry, RFE universities prepare specialists in marine engineering, logistics, navigation, and fishing.
Far Eastern State Academy of Public Service
Far Eastern Academy of Sports
Far Eastern State Humanitarian University
Far Eastern State Medical University
Far Eastern State Transport University
Far Eastern State Law Institute
Khabarovsky State Institute of Arts
Khabarovsky State Boundary Institute of Federal Security Service (FSB)
Komsomolsk-na-Amure State Pedagogical University
Komsomolsk-na-Amure State Technical University (KNATSU)
Far Eastern State Transport University offers 60 degrees in engineering, technology, business, science, humanities, arts, and law and is part of the Russian railroad transportation industry educational network. The University has partnerships with several universities in Asia and the U.S. In 1994, it formed a non-profit Russian-American Educational Scientific Center with the University of Alaska, Anchorage to offer short-term business training and internships for local businessmen at the University of Alaska. The school also offers a Business Administration in Logistics Management degree with the University of Alaska in Anchorage. Komsomolsk-na-Amure State Technical University (KNASTU) offers more than 80 majors in fields like electrical engineering, shipbuilding, aircraft building, computer technologies, economics and management, etc. Internationally, KNASTU partners with universities from the U.S., Asia, and Germany. The University signed agreements in education and research areas with Universities of Texas, Alaska, and California, as well as with several Asian universities.
Other regional universities
Amur region (Amurskaya oblast):
Amurskaya State Medical Academy
Amursky State University
Blagoveschensky State Pedagogical University
Far Eastern State Agrarian University
Far Eastern State Humanitarian Academy
Kamchatka region (Kamchatskaya oblast):
Kamchatka State University
Kamchatka State Technical University
Magadan Region (Magadanskaya Oblast)
Severny (Northern) International University
Yakutia (Sakha) republic:
Arctic State Institute of Arts
State Institute of Music
Yakutsk State Agricultural Academy
Yakutsk State University
Sakha State Pedagogical Academy
State Engineering Technical Institute
Yakutsk Institute of Distance Learning
MBA programs
Business education is a rapidly developing industry in Russia due to the growing economy and the lack of educated managers. Employers are willing to invest money in the training programs. While Russian companies are not always willing to pay higher salaries to MBA graduates, those graduates have more opportunities for career growth. There are approximately 85 MBA programs in Russia, 60 training companies located mainly in Moscow, and several foreign government sponsored business training programs. However, the variety of western-style business education programs is still relatively limited in the Russian Far East.
The only RFE university offering an MBA program is Vladivostok State University of Economics and Service. It is offered jointly with the College of Business Administration of California State Polytechnic University at Pomona and College of Business and Economics of California State University at Hayward.
The Russian School of Management, a private business school that opened in Vladivostok in 2007, offers mini-MBA executive programs. These corporate programs are designed for senior and mid-level managers. The course consists of 7 modules focused on personal efficiency, time management, general and strategic management, marketing, finance, HR management, project management and investment planning. The 7-month course costs USD 4 800.
A Russian public business school, the International Institute of Management LINK (Learning International Network) is headquartered in the Moscow region and has 94 centers throughout Russia, including RFE. It offers traditional, distance, and online business education programs in management, economics, English, and business.
IREX (International Research and Exchange Board) offers the Edmund S. Muskie graduate fellowship program and the British Council, which has 11 offices throughout Russia, offers MBA programs at UK universities.
E-Iearning
E-learning has become a vital part of many higher education institutions in Russia, but is hampered in the RFE by the lack of telecommunications infrastructure overall, particularly in rural areas.
Distance learning
Distance learning programs in the RFE are available in various forms correspondence study, CDs, DVDs, Internet and videoconferencing and are offered via a number of local universities. Students usually combine on-campus and online learning, tests, case studies and papers. Final tests are conducted in a classroom. A few technical universities in Moscow offer remote students the ability to download tutorials and textbooks, participate in online forums, and return papers and tests via e-mail.
Market trends
The Russian government recognizes the need to upgrade its educational system, and, in 2005, it identified quality education as one of four National Projects. (Other National Projects included agriculture, housing, and healthcare.) The Ministry of Education and Science was tasked with putting programs in place to upgrade infrastructure, add modern equipment, improve teacher qualification and establish centers of excellence. National Projects have been slow to show results, but the recognition of education as a priority has created momentum for local and regional improvements.
Reasonably priced summer language programs, undergraduate, graduate and postgraduate programs in American colleges and universities remain the top choices for local students and professionals wishing to continue their study abroad. Russians prefer U.S. educational programs because they consider them superior to those available in other countries. A favorable exchange rate for the U.S. dollar is a factor as well.
English language learning in the U.S., U.K., Australia, and New Zealand is also becoming more common among secondary school students and office workers. English language proficiency has become an important tool for professionals and is required in order to be competitive in the workplace.
Additional trends include:
Students seeking admission to U.S. universities finance their studies through savings, family support, loans, grants, and scholarships.
Demand for specially trained professionals is prompting an increase in the number of graduate programs.
U.S. study programs are gaining market share in the foreign education segment.
The U.S. is by far the leading destination for Russian students due to its good reputation for quality programs and a favorable exchange rate.
Local universities can sign cooperative agreements directly with foreign universities for exchange programs, enabling them to offer Russian students higher value diplomas.
Work and travel programs for junior students are becoming more popular. Students have a chance to experience the work environment in the U.S., as well as travel around the country.
Because of their proximity, Chinese, Korean, and Japanese universities actively cooperate with RFE education institutions in student exchange programs. A Japanese Center in Vladivostok, created in 1996 under a technical assistance program to the former Soviet Union, offers free Japanese language courses and short 4-day seminars on marketing, management, finances, IT technologies, hospitality, healthcare, and more to local businesses that have connections with Japan to get acquainted with Japanese best business practices. All seminars are conducted by Japanese businessmen and consultants. Upon completing the courses, participants have an opportunity to go to Japan on a short-term (usually 18 days) fellowship program. All expenses except airfare are covered by the Japanese Center. The Center also provides information on language schools and universities in Japan. Another Japanese university, Ritsumeikan Asia Pacific University, offers various graduate and MBA programs both in Japanese and English and offers scholarships to gifted students.
New Zealand, Australian, and Canadian universities aggressively promote their undergraduate and graduate programs through educational fairs held in the RFE.
Open University (U.K.) offers online education through its Russian partner LINK. Although the University does not have any formal affiliations with local institutions, LINK does have a local study center in Yuzhno-Sakhalinsk where students can take exams.
Central European University (CEU) located in Hungary cooperates with RFE education institutions to promote business and doctoral programs. Tuition for a masters program is approx. USD 1 300 and approx. USD 18 000 for PhD programs. CEU provides financial assistance to the majority of its students.
English First, a private school headquartered in Switzerland, offers intensive language courses for children and adults in classrooms, online and abroad in the U.S., Canada, New Zealand, Australia and other countries. Secondary school graduates and corporate clients can enroll in fundamental and pre-MBA programs, to enter successfully graduate and post-graduate programs in universities and business schools in Australia, Great Britain, New Zealand, Canada and U.S. For example, they offer an 11-month MBA program with Hult International Business School in Boston.
The Study Group (U.K.) has an office Vladivostok. It offers undergraduate and graduate fundamental programs and English language study in language centers, high schools, colleges and universities in New Zealand, Great Britain, Canada, and the U.S. In the U.S., Study Group owns and operates Embassy CES language training centers and Embassy CES Summer Schools, as well as a placement organization for students attending partner secondary schools, universities, and postgraduate institutions. Partner universities and colleges of Study Group in the U.S. give a discount of USD 2 000 USD 7 000 to overseas students.
In addition to the American Councils for International Education (ACTR), the Fulbright Program and IREX programs, the German Academic Exchange Service (DAAD) actively promotes its scholarships for students, post-graduates, academics and researchers at their universities.
The British Council has 11 offices throughout Russia. They offer English language courses in Russia or the U.K.; professional short-term courses; undergraduate, graduate, MBA and post-graduate programs; and merit-based scholarships sponsored by various funds, banks and the British government for gifted students to study at their universities.
Domestically, there is competition between local universities since many of them offer duplicate programs. To succeed they need to constantly update the quality of education, improve their classrooms, laboratories, IT equipment, libraries and sports facilities, and offer new high-demanded professions.
Market issues and obstacles
Foreign universities typically do not have their own legal entity in Russia; they usually offer joint programs with their partner education institutions. However, if a U.S. education consulting agency would like to open a subsidiary or a representational office in Russia it needs to consider registration and accreditation issues, which can be time-consuming and costly.
All foreign subsidiaries or representations are to be registered at the State Inspection Office and accredited with the Ministry of Justice in Moscow. Accreditation is valid for 1-3 years.
U.S. companies are encouraged to seek legal advice before opening an office in Russia. Here is the list of necessary documents to establish an entity in Russia:
Charter
Agreement of incorporation
Notarized company registration
Board meeting minutes authorizing the establishment of the company
Board resolution nominating a company director
Statement of activities to be undertaken by the company
Letter of recommendation from the companys bank, or bank statement
Notarized power of attorney from each founder authorizing the director to act on behalf of the company
Two letters of recommendation from Russian partners
Documents on the companys location
Statement and tax identification number from the Tax Inspection Office
Student visas
Russian students going to the U.S. must ensure that they have a full and complete set of documents. Detailed information on the application process, timeframes, and costs is available from the U.S. Department of State via the U.S. Embassy and Consulate websites.
On September 11, 2002, the U.S. Department of State introduced the Interim Student and Exchange Authentication System (ISEAS), to monitor the visa adjudication process of foreign students and exchange visitors, who enter the U.S. on F, J, or M visas. Academic institutions and program sponsors must enroll all visa applications into the ISEAS database. F, J, and M visas will not be issued until the U.S. Consulate has confirmed that this data has been deposited. Holders of F, M, or J visas will not be admitted to the U.S. more than 30 days prior to the beginning of an applicants program date, or start date.
Family members (spouse and children) of students may apply for F-2 visas to accompany the principal applicant. They must meet all visa eligibility requirements, including evidence that they have sufficient funds for their support, and that they will depart the U.S. upon completion or termination of the students program.
An F-I student may not accept off-campus employment at any time during the first year of study. Under certain circumstances, the Immigration and Naturalization Service may grant permission to accept off-campus employment after one year. F-1 students may accept on-campus employment from the school without Immigration Service permission. Spouses and children of students may not accept employment at any time.
Best prospects
Demand in the RFE for educational and training services is expected to continue its steady growth in the next few years. Globalization, competitiveness in the local labor market and the increasing demand for skilled professionals are encouraging Russians to improve their level of education.
Opportunities exist for American universities to partner with Russian Far East universities in the following areas:
Joint educational programs both on campus and on-line
Internships with U.S. companies
Training for local instructors, professors and university managers
Financial programs, such as bank loans and scholarships for MBA students
Organizing English language centers staffed with U.S. professors
Programs to bring additional MBA programs in the region
Opportunities exist for computerized testing programs such as TOEFL, GRE, and GMAT. ACTR has an Educational Advising Center (EAC) in Vladivostok, which offers English languages testing.
Another potential prospect is to collaborate with local training institutes to offer on-line professional courses via a mutual web-site in Russian, and a certificate of achievement upon completion. This would be attractive for corporate training programs. E-Iearning would offer local students and professionals the benefits of U.S. education but at a substantially lower cost than if they were to travel to the U.S.
Market entry
The optimal market entry in the educational sector is through local partners. Local educational entities can provide students, instructors, facilities, content, courses, websites, teaching methodologies, brand recognition in the RFE, and perhaps most importantly, advice of local market issues and conditions.
U.S. schools should establish relations with local recruiting agencies, the main resource used by local students and parents when planning for study abroad. Recruiters normally provide a wide range of services from counseling, assistance with English language testing, advertising, and promotional events.
U.S. schools are encouraged to raise their market visibility by participating at local educational trade shows, organizing road shows and placing advertisements in school newspapers and magazines. Attractive and easy-to-visit web-sites also play a crucial role in the school selection process.
Russias largest education consulting center Students International is a recruitment agency for studies overseas. It organizes road shows twice a year (spring and fall) in major Russian cities and invite representatives from their partner universities in Australia, UK, Canada, Malta, New Zealand, Greece, Spain, and Ireland to speak about opportunities at their institutions.
Cultural departments of consulates, embassies and universities associations sometimes organize local educational exhibitions. US Consulate in Vladivostok works with other national consulates and non-profit organizations to host International Educational Week, which acquaints the local community with educational opportunities abroad.