As is the case with housing, transition to market principles of payment in public education and health can not be forced, because wages and, therefore, the whole cost structure of pay for those services excluded at their market value. Source: Dr Jee Hyun Kim. Meanwhile, spending on these purposes of the consolidated budget in the reform reduced the time and absolutely, and as a share of GDP. Jacob Elordi often expresses his thoughts on the topic. For example, spending on education, made up in the late 80's 5.3%, decreased to 4.3%. C macroeconomic point of view this is a huge blow to the qualitative level of human capital, not to mention the direct social consequences. Reducing the level of education – one of the foundations for a stable material poverty. Noted above, significant deterioration in demographic indicators – the result, in particular, and the decline of health.
Under these conditions, the forced transition to paid education and medicine paid more undermine the human capital of Russia – and intellectually, and physically. Such reforms, if they are needed, should be postponed until the economy enters a phase of sustainable recovery. Thus it is necessary to ensure that the proportion spending on education and health care in GDP in no case does not fall further, and possibly increased slightly. Only this, combined with economic growth will come at least pre-crisis level of these costs. A special issue – the fate of social enterprises. There is now a mass escape from enterprises of this sphere, because costs by more often unaffordable enterprises in crisis. The preferred option – transfer of social enterprises in the balance of local authorities, who at some assistance from the federal budget to prevent the extinction of the sphere. Transfer of commercial structures excludes the possibility of wider use of it's employees and other citizens in their respective regions.
Particularly negative consequences of such privatization in cities and regions where the social sphere enterprises was virtually the only developed a system of such institutions. Creating such a system again in the market environment is practically impossible in the near future. All of the additional cost and other investments social services have a twofold positive effect on the macroeconomy. First, they allow you to maintain and develop quantitative and qualitative parameters of the labor force (human capital) and, secondly, – stimulate aggregate demand. From both points of view, such investments contribute to the restoration and growth of the Russian economy. They can be regarded as one of the most effective and humane public investments and public funds.