This brief policy note reviewsexperience so far with the implementation of a new financingscheme for general education (based on the principle of'money follows the student') in the RussianFederation. The policy note, which also briefly discussesthe lessons of international experience in the field, maybe relevant to other countries that are in the process ofmoving to a system of per capita financing of educationservices. Of the four major issues facing the educationsector in Russia - resource mobilization and efficiency,quality and output measurement, market linkages and equityand access - the first is central: other reforms will bedifficult to implement without an improvement inmobilization and allocation of resources. Two key sets ofissues are discussed: 1) those issues that have affectedthe smooth introduction of per capita financing to date inRussia; and 2) perceived problems in relation to budgetflexibility and school autonomy because of the introductionof the Treasury system and the Budget Code.
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