Report - UNDP Russia

lifestyle needs to be upgraded, and theeducational system requires more complexdevelopment. In regions where budget andhousehold incomes are not so high, fuel andenergy orientation does not give any clearsocial development advantages.2.4. The crisis andits social aftermathin fuel & energy regionsIn the new economic crisis, which beganin the fall of 2008, specialization in the fuelindustry acted as safety net for regions onceagain, though not for all regions. Levels ofindustrial output held up best in single-industryoil extraction regions: in Khanty-MansiAutonomous District and Tomsk Regionindustrial output in H1 2009 was only 2% lowery-o-y (i.e. compared with the same period of theprevious year), while Sakhalin Region and NenetsAutonomous District showed y-o-y growth of 22-39%. These figures compare with averageshrinkage of Russian industrial production by15% y-o-y in the first half of 2009. In oil producingregions with more diversified economies severityof the crisis was partly determined by the state ofother industries: decline of industrial output wasmoderate (between 8% and 14%) inBashkortostan, Tatarstan and Orenburg Region,but problems in the machine-building industryled to a particularly acute recession (29% outputdecline) in Samara Region. The situation in thegas industry has been more difficult than in theoil industry, so recession rates in major gasproducingregions have been much higher (15%in Yamal-Nenets Autonomous District and 19% inAstrakhan Region). Kemerovo Regionexperienced the worst decline among coalminingareas (19%), but that was mainly due toproblems in the local steel industry, whichsuffered particularly badly as a result of theeconomic crisis.The social aftermath of the crisis has twovectors. The first has been a sharp decline inbudget revenues of more developed regions,regardless of acuteness of their industrial decline.Before the crisis the share of profit tax in budgetsof these regions was as high as 20-45%. Fallingprices on international markets dramaticallyreduced corporate incomes, and profit taxpayments in resource-oriented regions fell bybetween 2 and 9 times. As a result, own budgetrevenues (both tax and non-tax) in Kemerovoand Tyumen regions fell by 30-35%, revenues inKhanty-Mansi Autonomous District andKrasnoyarsk Territory were down by a quarter,and the budget of Samara Region lost 20% ofrevenues raised inside the region. A forecast byFigure 2.7Infant mortality per 1000 live births302000 2001 2002 2003 2004 2005 2006 2007 20082520151050Khanty-Mansi Autonomous DistrictRepublic of TatarstanKomi RepublicSamara RegionSakhalin RegionOrenburg RegionRF national averageAstrakhan RegionKemerovo RegionNenets Autonomous DistrictRepublic of BashkortostanKrasnoyarsk TerritoryPerm TerritoryYamal-Nenets Autonomous District40 National Human Development Report in the Russian Federation 2009