Report - UNDP Russia

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Box 2.1. Human Development IndexIn 2007 over a quarter of Russia’s regions (22out of 80) 1 were rated as ‘developed’ in terms of theHuman Development Index (HDI). The cut-off point forthis group is a score of 0.800 (Table 2.1.1). In 2006 onlyhalf as many regions (12) were rated as developed.Russia’s leading group of regions moved up therankings due to the income index, whose contributionto the HDI became even greater. Almost half of thisgroup consists of fuel & energy extraction regions(italicized). If regions specializing in crude oilprocessing are added, more than half of the group arefuel & energy regions. But fuel & energy industries arenot alone in boosting regional HDI levels: regions thatspecialize in metallurgy enjoy the same advantages.Moscow remains the runaway leader withHDI exceeding 0.900, far in advance of all otherregions. Tyumen Region can no longer compete withthe capital as it used to in the early 2000s, despitehaving highest per capita Gross Regional Product(GRP) thanks to its autonomous districts, which are thebiggest oil & gas producers in Russia. The reason forthis is that the formula for HDI calculation limits theFigure 2.1.1Regional HDI ratings0.9500.9000.850maximum income level: after reaching USD 40,000 atPurchasing Power Parity (PPP) the income indexbecomes 1.00 and stops growing. Per capita indicatorsof GRP are much higher in Tyumen Region, but theydo not add advantages, while the region is far behindMoscow by other HDI components. HDI ofSt.Petersburg is even farther back because its percapita GRP is twice smaller than Moscow. As wasexplained above, Moscow obtains these advantagesbecause it hosts the head offices of Russia’s largestcorporations, primarily oil & gas corporations. Somebig corporations are starting to relocate toSt.Petersburg, which will definitely increase theincome index in Russia’s northern capital. Factually,though, the two federal cities are redistributing oilrent for their benefit.Besides the growing number of high HDIregions there is also an encouraging trend of risingHDI in the most underdeveloped regions, especiallyin the republics of the North Caucasus (Figure 2.1.1).Even among the outsiders, there is no longer anyregion with HDI lower than 0.700. This positive trend20022004200620070.800HDI0.7500.7000.6500.600MoscowTyumen Region.St.PetersburgRepublic of TatarstanBelgorod Region.Tomsk RegionSakhalin RegionKrasnoyarsk TerritoryRussian FederationSverdlovsk RegionChelyabinsk RegionOrenburg RegionSamara RegionLipetsk RegionKomi RepublicVologda RegionRepublic of BashkortostanRepublic of Sakha (Yakutia)Arkhangelsk RegionNovosibirsk RegionOmsk RegionYaroslavl RegionRepublic of UdmurtiaVolgograd RegionKrasnodar TerritoryMurmansk RegionRepublic of North Ossetia-AlaniaKursk RegionMoscow RegionOrel RegionPerm TerritoryIrkutsk RegionNizhny Novgorod RegionMagadan RegionSaratov RegionRostov RegionRepublic of ChuvashiaRepublic of MordoviaVoronezh RegionKaliningrad RegionKemerovo RegionRepublic of KhakassiaTambov RegionRepublic of KareliaRepublic of DagestanAstrakhan RegionKhabarovsk TerritoryKaluga RegionPenza RegionUlyanovsk RegionKamchatka TerritoryRyazan RegionRepublic of Karachaevo-CherkessiaTula RegionStavropol TerritoryKostroma RegionAltai TerritoryNovgorod RegionSmolensk RegionLeningrad RegionKirov RegionKurgan RegionVladimir RegionPrimorskiy TerritoryRepublic of Mari ElRepublic of BuryatiaTver RegionBryansk RegionRepublic of Kabardino-BalkariaAmur RegionRepublic of AdygeyaChukotka Autonomous DistrictRepublic of KalmykiaIvanovo RegionPskov RegionTrans-Baikal TerritoryRepublic of ChechnyaJewish Autonomous DistrictRepublic of IngushetiaRepublic of AltaiRepublic of Tuva1Except the Chukotka Autonomous District. The index is not calculated for other districts as they are included in the data for otherregions.44
is also associated with the fuel and energy sector. Highoil & gas prices enriched the federal budget, whichcould therefore afford to increase funding of the leastdeveloped regions. It is doubtful that increasingfinancial transfers have been used efficiently andapproaches to solving many social problems areclearly unsatisfactory, but growing GRP has enabledthe outsider regions to increase their HDI ratings, atleast nominally.Rating of the regions is inadequate forevaluating human development potential, becauseRussia’s regions vary tremendously in population,from 10.5 million down to 50,000 people. Populationdistribution across regions with different HDI ratingsgives a more accurate picture (Figure 2.1.2). This formof assessment shows Russia’s HDI progress even moreclearly: in 2007 one third of Russia’s population lived inhigh HDI regions, while the share just one year earlierwas below 25%. In five years the number of peopleliving in regions with low HDI (between 0.700 and0.750) has decreased by 10 times and there are nolonger any regions with ultra-low HDI (less than 0.700).Overall 2007 was a successful year forhuman development in Russia. But it should beremembered that improvements were mainly due toincreasing incomes, associated with pricemovements on international fuel and metal markets.The crisis that began in 2008 could upset this trend,due to falling prices on world markets. Lifeexpectancy indicators also grew in 2007, particularlyin the most problematic eastern regions, wherelongevity has been particularly low. More federalfunding for health care, including implementation ofthe ‘Health’ national project, helped to improve thesituation. However, from 2009 the financing systemhas been changed and responsibility forimplementation of national projects has beentransferred to regional administrations. Their fiscalcapabilities are not equal to the task, particularly inthe post-crisis environment.Forecasts in an unstable environment are notreliable, but it is very likely that the sustained growthof regional HDI ratings seen in 2007 will not continue.That growth smelt too strongly of oil.Figure 2.1.2Breakdown of Russia’s population between regions with different HDI ratings, %70605464 65582004200520062007Share of the population, %50403020291815 17 2233101 1 0637 70Less than 0.700 0.700-0.750 0.750-0.800 0.800-0.900 More than 0.900Human Development Index (HDI)45
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 and 14: environmental degradation and enhan
Page 15 and 16: Chapter 1The Energy Sector,the Econ
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: various other long-term problems in
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
Page 65 and 66: The share of household expenditures
Page 67 and 68: subsidization practices in the regi
Page 69 and 70: in power use between regions now de
Page 71 and 72: Electricity prices for households h
Page 73 and 74: • Steady decrease in the percenta
Page 75 and 76: 1. The number of graduates with eng
Page 77 and 78: As well as requiring better fuelcom
Page 79 and 80: Box 4.1. The village of Kolvain Uss
Page 81 and 82: continue to use solid fuel for a lo
Page 83 and 84: Box 4.3. Ambient air pollution andp
Page 85 and 86: either by large power generating fa
Page 87 and 88: Box 4.6. A city at riskNovocherkass
Page 89 and 90: In order to assess impact of thesee
Page 91 and 92: generation facilities through safer
Page 93 and 94: achieved in developed countries. So
Page 95 and 96: equires 2-6 times more capital inve
Page 97 and 98:
government) should set targets and
Page 99 and 100:
networks. In 2007 government budget
Page 101 and 102:
enhancement is also important. Ener
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energy efficiency of the transport
Page 105 and 106:
Box 5.1. Programme of the Ministry
Page 107 and 108:
educational and informational suppo
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mechanism for using national quota
Page 111 and 112:
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;
Page 117 and 118:
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
Page 133 and 134:
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
Page 139 and 140:
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
Page 155 and 156:
Box 8.2. Energy efficiencyindicator
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Box 8.4. Energy efficiency rating o
Page 159 and 160:
41 Penza Region 116.0 -35.2 -4.542
Page 161 and 162:
Appendix to Chapter 1Table 1.1. GDP
Page 163 and 164:
Attachment to Chapter 4Table 4.1Rus
Page 165 and 166:
Attachment to Chapter 4Volga Federa
Page 167 and 168:
Attachment to Chapter 4Belovo Belov
Page 169 and 170:
The previous National Human Develop
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Report - UNDP Russia

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