Report - UNDP Russia

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can be used for calculations at national andregional level. Adjusted net savings include awider range of human developmentassessments, and energy and environmentalfactors compared with traditionalmacroeconomic indexes. In particular, they takeaccount of depletion of natural resources,which, in Russia’s case, leads to an overallnegative net value for the Adjusted Net SavingsIndex, even for the period since 2000, whenGDP was growing.The Chapter also describes experienceand potential for adapting and applying energyindicators at national and regional levels. Suchindicators need to be included in Russian statestatistics at regional and national level, so thatthey can be more widely used in decisionmakingprocesses.12 National Human Development Report in the Russian Federation 2009
Chapter 1The Energy Sector,the Economy and the Crisis1.1. The energy sectorand human developmentHuman development is only possible ifenergy needs are met to a sufficient extent. Sothe acute problems, which the internationalenergy industry is facing today, must be ofconcern to the global community. Russia has aspecial role to play in this context, because it hasboth enormous human potential and vast energyresources. The country’s comparative wealth innatural resources has made it one of the world’sleading suppliers of energy. This role also hasspecific impact on human development trendsinside Russia.It is a characteristic feature of the worldenergy system at its current stage ofdevelopment that centers of production andconsumption do not coincide geographically.Formation of energy markets in the 20 th centuryboth at the level of macro-regions and on aglobal level played an important role in theeconomic growth of developed countries and ofsome developing countries. The formation ofglobal markets greatly reduced the limitations,which developed countries would face, if theyhad to meet their huge energy requirementsfrom their own resources.Functioning of energy markets mightcause a move towards an optimum in terms of aglobal economic equilibrium, but this has led toa number of externalities, which have complexand often unforeseen implications forsustainable development of the world economyand for human development.Firstly, disproportions in global energyconsumption promote global inequality. At thebeginning of the third millennium developedcountries produce less than one third of theworld’s primary energy, while consuming almosthalf of it. In 1991–2008 average per capitaconsumption of primary energy in OECDcountries was three times higher than the worldaverage, and that gap had widened incomparison with the preceding two decades.The economies of power supplyingcountries are accordingly becoming more andmore specialized in the world division of labor.Experience shows that such orientation slowsdown diversification of national economies andcan lead to a slowdown of economic growth inthe long run. The mechanisms of this ‘paradox ofabundance’ or ‘resource curse’ are describedfurther on, and they can have impact on humandevelopment by reducing motivation forinvestments in human resources, raising socialtension, and holding back real growth ofpersonal incomes.Secondly, there are even more seriousimbalances in production and consumption ofhydrocarbons. The problem of energy poverty isnot being dealt with quickly enough. Supply ofenergy (fuels and energy infrastructure) to lowincomecountries remains unsatisfactory, stallingindustrial development and therefore hinderinggrowth of real personal incomes. Africa remains anet exporter of energy resources even thoughper capita energy consumption on the continentis extremely low (three times lower than theworld average). Lack of available energy reducesthe quality and quantity of collective goods,including education and health care.Thirdly, existence of low-cost energyresources (compared with alternative energytechnologies), which do not carry additionalcosts associated with environmental and healthhazards, postpones technology breakthroughs inthe world energy industry, as was seen in1986–2002. This preserves the socially nonoptimalstructure of energy consumption and, asa consequence, non-optimum production andconsumption of goods and services. Scientificprogress and its commercial application toenergy saving are slowed down as a result.Fourthly, both exporters and importers ofenergy face large-scale problems associated withenergy security. Fuel importing countries dependon supplies from regions of the world, whichsometimes lack political stability. Delivery routesbecome longer. Large-scale energy pricedeviations create serious problems for exporters(for their sustainability, well-being andinvestments). These factors create a threat oftemporary external shocks for developed13
Page 1 and 2: National Human Development Reportin
Page 3 and 4: National Human Development Reportin
Page 5 and 6: ACKNOWLEDGEMENTSThe authors express
Page 7 and 8: Dear Reader,You have before you the
Page 9 and 10: PREFACEThis is the 13 th National H
Page 11 and 12: country’s fuel & energy regions r
Page 13: environmental degradation and enhan
Page 17 and 18: By 2008 Russia had increased its sh
Page 19 and 20: the share of energy in the national
Page 21 and 22: exported, increased. However, this
Page 23 and 24: elimination of structural and terri
Page 25 and 26: • Establishment of competitive me
Page 27 and 28: number of developed countries, incl
Page 29 and 30: Although the United Nations Climate
Page 31 and 32: industrial region of the Urals - Sv
Page 33 and 34: 2.2. Budget capacityand structure o
Page 35 and 36: (the Federal State Statistics Servi
Page 37 and 38: Immigration by young and highly ski
Page 39 and 40: energy regions exacerbate the incom
Page 41 and 42: Khanty-Mansi and Yamal-Nenets Auton
Page 43 and 44: the Ministry for Regional Developme
Page 45 and 46: various other long-term problems in
Page 47 and 48: is also associated with the fuel an
Page 49 and 50: Republic of Mordovia 8051 0.732 68.
Page 51 and 52: Legislative control of impact audit
Page 53 and 54: Chapter 3Personal Incomes, the Ener
Page 55 and 56: than any other sources of income -
Page 57 and 58: Are wages now the main instrument f
Page 59 and 60: comparison of month-on-month develo
Page 61 and 62: • The unemployed, people who aree
Page 63 and 64: Employment in the energy sector acc
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The share of household expenditures
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subsidization practices in the regi
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in power use between regions now de
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Electricity prices for households h
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• Steady decrease in the percenta
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1. The number of graduates with eng
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As well as requiring better fuelcom
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Box 4.1. The village of Kolvain Uss
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continue to use solid fuel for a lo
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Box 4.3. Ambient air pollution andp
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either by large power generating fa
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Box 4.6. A city at riskNovocherkass
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In order to assess impact of thesee
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generation facilities through safer
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achieved in developed countries. So
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equires 2-6 times more capital inve
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government) should set targets and
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networks. In 2007 government budget
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enhancement is also important. Ener
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energy efficiency of the transport
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Box 5.1. Programme of the Ministry
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educational and informational suppo
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mechanism for using national quota
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Figure 6.2Share of electricity gene
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One of the major benefits of renewa
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odies; outdoor air; rocks and soil;
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Design and construction of geotherm
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Box 6.3. Prospects for nuclear powe
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consists of out-dated equipment at
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ConclusionThe world’s nuclear pow
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7.1. Impact of the fuel& energy sec
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Table 7.5Solid waste from productio
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Table 7.7Areas of disturbed and rec
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nature of the impact (atmospheric e
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Further, the economic cost ofenviro
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trends continued the damage would a
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What the government needs to do ino
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Figure 7.2.1Specific atmospheric em
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money value of industrial output) c
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Figure 7.2.4Trends in specific atmo
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Chapter 8The Energy Industry and Su
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eing equal) it only reflects that p
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(MDGs), issued by the UN in 2000. T
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8.4. The energy factorin integral i
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Canada, the USA and Great Britain h
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Box 8.2. Energy efficiencyindicator
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Box 8.4. Energy efficiency rating o
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41 Penza Region 116.0 -35.2 -4.542
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Appendix to Chapter 1Table 1.1. GDP
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Attachment to Chapter 4Table 4.1Rus
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Attachment to Chapter 4Volga Federa
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Attachment to Chapter 4Belovo Belov
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The previous National Human Develop
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Report - UNDP Russia

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