Russian Federation 2003
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United Nations Development Programme in the Russian Federation HUMAN DEVELOPMENT REPORT Ostozhenka, 28, Moscow, 119034 Tel: +7(905) 7872100 RUSSIAN FEDERATION Fax: +7(905) 7872101 UNDP 2002/2003 http://www.undp.ru [email protected] The Role of the State in Economic Growth and Socioeconomic Reform 2002/2003 • RUSSIAN FEDERATION RUSSIAN FEDERATION • HUMAN DEVELOPMENT REPORT Human Development Report 2002/2003 for the Russian Federation has been prepared by a team of Russian experts and consultants. The Report expresses the views of its authors, and not of the institutions where they are employed. CHIEF AUTHOR: V.M. Zakharov, Dr.Sc. (Biology), Director Prof. Sergei N.Bobylev, Dr.Sc. (Economics), of the Centre for Russian Environmental Department of Economics at Moscow State Policy (Chapter 9) University BOX CONTRIBUTORS: CHAPTER AUTHORS: Prof. S.N. Bobylev, Dr.Sc. (Economics), L.S. Demidova, Ph.D. (Economics), Leading Department of Economics at Moscow State Researcher at the Institute for World University (Box, Chapter 1) Economy and International Relations of the N.V. Zubarevich, Dr.Sc. (Geography), Russian Academy of Sciences (Chapter 1) Associate Professor, Department of Geography L.M. Grigoriev, Ph.D. (Economics), Deputy at Moscow State University (Box, Chapter 1) Director of Expert Institute under Russian I.V. Kolosnitsyn, Ph.D. (Economics), Senior Union of Entrepreneurs and Industrialists, Manager at the Bureau of Economic Leading Fellow of Institute for World Analysis (Box, Chapter 2) Economy and International Relations at the L.N. Ovcharova, Ph.D. (Economics), Russian Academy of Sciences (Chapter 2) Research Programme Director at the A.E. Sourinov, Dr.Sc. (Economics), First Independent Institute for Social Policy, Deputy Chairman of the State Committee of Laboratory Head at the Institute for Socio the Russian Federation on Statistics economic Population Studies of the Russian (Chapter 3) Academy of Sciences (Box, Chapter 3) T.Ya. Chetvernina, Dr.Sc. (Economics), V.Ya. Snegovsky, EditorinChief of the Head of the Centre of Labour Market journal “Street Children” (Box, Chapter 4) Studies at the Institute of Economics at the Prof. I.A. Rozhdestvenskaya, Dr.Sc. Russian Academy of Sciences (Chapter 3) (Economics), Leading Researcher and E.M. Andreyev, Ph.D. (Physics and Programme Coordinator “Reform of the Mathematics), Head of the Laboratory for Education System” at the National Training Analysis and Prognosis of Population Foundation of Employees (Box, Chapter 5) Mortality, Center for Demography and S. Sharp, M.A. (Economics), UNDP Human Ecology, Institute of Economic Assistant Resident Representative in the Forecasting at the Russian Academy of Russian Federation (Box, Chapter 6) Sciences (Chapter 4) S.N. Miroshnikov, Ph.D. (Physics and Prof. N.S. Grigorieva, Dr.Sc. (Political Mathematics), Senior Lecturer, Deputy Sciences), School of Public Administration Chief of the Local Governance Department at Moscow State University (Chapter 5) at the Ministry of Economic Development N.V. Zubarevich, Dr.Sc. (Geography), and Trade (Box, Chapter 6) Associate Professor, Department of Prof. A.G. Barabashev, Dr.Sc. (Philosophy), Geography at Moscow State University Deputy Dean of the Public Administration (Chapter 6) Department at Moscow State University L.I. Jakobson, Dr.Sc. (Economics), First (Box, Chapter 7) Deputy Rector at State University — Higher School of Economics (Chapter 7) MAPS: Prof. A.A. Auzan, Dr.Sc. (Economics), V.V. Petrov, Department of Geography at Department of Economics at Moscow Moscow State University State University, President of the Social Contract National Project Institute COVER ILLUSTRATION: (Chapter 8) I.D. Zakharov, OOO “ART SOKHO” Human Development Report 2002/2003 for the Russian Federation/Ed. by Prof. S.N.Bobylev; translation from Russian by D.Dynin, ed. in english by Ben W. Hooson — VES MIR Publishers, Moscow, 2003. 120 pp., incl. tables, figures, boxes and maps. This is the eighth annual Human Development Report for the Russian Federation. National reports are produced at the initiative of the United Nations Development Programme (UNDP) and national partners in 135 countries across the world. Global and Regional Human Development Reports by leading independent experts addressing international perspectives are also published annually with support from UNDP. The main focus for 2002/2003 is “The Role of the State in Economic Growth and Socio economic Reform.” Strategic factors of social development (e.g. the accumulation of knowl edge and skills, the level and quality of educational attainment, the physical condition and cul tural characteristics of the population) are influenced to a large extent by the State. It is intended for public administrators, political scientists, scholars and students. ISBN 5777702856 UN Development Programme, 2003 Acknowledgements The authors express their gratitude to A.Granovsky, V.Nebenzya, V.Zagrekov and R.Khairullin, Department of International Organisations of the Ministry of Foreign Affairs of the Russian Federation. Assistance and support for the implementation of this project was also provided by UNDP representatives in the Russian Federation: Frederick Lyons, UNDP Resident Representative (until March 2003); Stefan Vassilev, UNDP Resident Representative; Eric Brunat, UNDP Deputy Resident Representative; Shombi Sharp, UNDP Assistant Resident Representative; Elena Malanova, UNDP Programme Offcer; Andrey Stetsenko, NHDR National Project Coordinator; Natalia Voronkova, NHDR Project Assistant and also Andrey Ivanov, Adviser, UNDP Regional Support Centre in Bratislava. The authors appreciate recommendations and comments provided by a range of par- ticipants at the Public Hearing of the Human Development Report in the Russian Federation. A citation for the Russian Federation NHDR The 2001 Human Development Report for the Russian Federation, which focused on the generational aspects of human development, was one of three reports chosen in the contest for the best Human Development Report in the category “Excellence in Human Development Innovations — Concepts and Measurements”. Reports to the contest were submitted from over 100 countries worldwide. The Judges Panel, which included Nobel Laureate Joseph Stiglitz, noted that the Report’s generational analysis of human develop- ment was comprehensive, important, and a truly refreshing approach to the current situa- tion in the country. We congratulate our authors for their contribution to this superb Report! To the Readers The theme of the State and its role in human development is attracting increasing attention in the world today. It has always been an important theme in Russia, but has become particularly relevant in recent years, largely due to exhaustion of the possibil ities of the existing Russian model of the State and the need for its radical renewal. Efforts of Russian presidential, government and legislative structures in the last few years have focused on the transformation of the State, based on the development of a new and effective model. Russia has only just embarked on this path, and much remains to be done, but the directions of reform have already been determined to a large extent. The individual is playing an evergreater role in the socioeconomic development of societies the world over, making a focus on human development a precondition for the healthy evolution of the State. The human factor is becoming more important than technological capacity and natural resources. Education, scientific knowledge, health, social engagement, and the freedom of choice make it possible for individuals to speed up progress significantly, and the State's primary concern should be to devel op these aspects of its human resource base. In Russia, the drafting and implementa tion of reforms must assign real priority to the country's social problems, which are still not receiving sufficient attention. However, the success of reform also depends on active support from civil society, which is why the development of civil society in Russia receives so much attention in the present Report. I would like to express my gratitude to the UNDP Representative Office in the Russian Federation for its support in the production of the annual Human Development Reports, which are an important tool for stimulating discussion in gov ernmental, scientific and political circles about problems of concern to everyone in our country. G.N. Karelova Deputy Prime Minister of the Government of the Russian Federation Dear Readers, I am pleased to offer you the eighth annual edition of the Human Development Report for the Russian Federation, prepared by a team of leading Russian experts. Conceived and supported as a joint initiative of the Government of the Russian Federation and the United Nations Development Programme, the Report provides rig orous analysis of key social, economic and environmental challenges within the framework of sustainable human development and the Millennium Development Goals. Consistent methodology across Reports facilitates the monitoring each year of the emergence of a new Russia. The present Report centres around two questions of key importance in Russia today: the role of the State in socioeconomic reform and approaches for increasing its effectiveness. The first section examines challenges in the context of economic and demographic trends, income, employment, health, and education, and presents Human Development Indices for each of the Russian regions. In the following section, the authors analyse principal stages in the process