Chapter 9 Human Development Index in the Regions of Russia stimates of the Human Development Index for 2003 of Russia – Ingushetia and Tyva – are comparable to E and 2004 are given in Tables 9.1 and 9.2. The Index Mongolia, Guatemala and Tajikistan. The immense gap rose over this period in the vast majority of subjects of between the regions of Russia with regard to the level the Russian Federation, but dynamics varied consider of human development are slowing down the pace of ably from region to region. The fastest HDI growth was development of the country as a whole. in regions with large resources of raw materials and Analysis of regional HDI dynamics in 2002–2004 exportoriented economies, where the HDI was pushed shows that distinctions between regions are increas higher by growth of per capita GRP (this is especially true ing. The pace of Index growth in regions with higher in oilproducing regions). A slight drop in the Index in sev indicators was notably faster than in regions with lower eral depopulating regions of the Central Federal District is indicators, with the exception of the 2 or 3 weakest related to reduction in the number school pupils due to regions, which received the largest amounts of federal small size of the generation reaching school age. Another support (Figure 9.1). Calculations by the Independent reason for HDI volatility is peculiarities of tax treatment Institute for Social Policy show that increase in regional and transfer of legal addresses of large companies, which distinctions during the period of economic growth has have major impact on per capita GRP indicators in certain been most marked with respects to precisely those HDI regions. This explains the shortterm growth and subse components, in which Russia is lagging behind devel quent drop in the indicators for Chukotka Autonomous oped countries – per capita GRP and life expectancy. District and Magadan Region (the same occurred ear The gaps between economic and social development lier in the Republic of Kalmykia). In 2004 Omsk Region levels of subjects of the Russian Federation are wid and Republic of Mordovia also enjoyed shortterm GRP ening despite increased redistribution of budgetary growth due to the same causes. resources. The conclusion must be that efficiency of the Comparison of this indicator in different regions and redistribution policy is diminishing while slow rates of countries is highly conditional but very indicative in the improvement of social indicators in most regions point case of Russia. Moscow is in this respect comparable to to low quality of economic growth. Czech Republic and Malta, Tyumen region – to Hungary Levels of differentiation can also be evaluated by and Poland, St Petersburg and Tatarstan – to Bulgaria, considering shares of the Russian population who live although the "second capital" of Russia is lagging sig in regions with various HDI levels (Figure 9.2). Such nificantly behind the Baltic states. The weakest regions comparison is notional due to income inequality inside 112 Human Development Report 2006/2007 for the Russian Federation Figure 9.1. Human Development Index in subjects of the Russian Federation in 20022004 0.90 2002 2003 0.85 2004 0.80 HDI 0.75 0.70 0.65 ry ion elia ion yatia ation ar egion tarstan epublic Moscow Territo Ta eder t R rm Region er Region yol Region zan Region luga Region ar Republic Tula RegTv rad Region Omsk Region Or Pe a halin Region Samara RegionKomi Republicroslavl Region Ry Ka Irkutsk Reg Altai Republic Ya Sak Moscow Region Balk Mari El Republic Udmurasnodar Novgorod R alining Russian F Kr Republic of K Republic K of Bur Republic of Dagestan Republic of Republic of Ingushetia abardino K the regions, but it gives a general picture of the per a distribution of roles and responsibilities requires revi centage of people in Russia who enjoy or lack neces sion of the redistributive mechanisms of social policy sary regional conditions for development of human financing and, most of all, creation of mechanisms for potential. Over a quarter of Russia’s population lives in real reforms in regional and local labour markets, for regions where the HDI is above the national average, economic restructuring and diversification, for social and 15% of the population live in the most affluent innovation, and for modernisation of both public admin subjects of the Russian Federation (Moscow, Tyumen istration and selfgovernance. Federal government poli region with its autonomous districts, St. Petersburg cies in this direction still lack consistency. Mechanisms and Tatarstan), whose human development indices for stimulating reform must start to play a larger role in are comparable to those of developed countries. Such regional development policy in the near future, ending regions have sufficient means and resources to develop overdependence on accumulation of resources in the their human potential alone. Meanwhile, 6% of the federal budget and their redistribution. Russian population live in regions with the worst indica tors (below 0.730). These are regions, which can not develop without largescale and longterm Figure 9.2. Share of people living in Russian regions with various federal support. HDI levels, % Calculation of the numbers of Russians liv 6% ing in regions with various HDI levels shows that 15% the key requirement for sustainable growth of human potential in Russia is improvement in the group of regions with indicators below the Russian average but above the critical level. Two thirds of the country’s people live in these regions, 11% where economic resources are still insufficient for social development, but federal aid could not suffice to support the majority of the population Developed (above 0.800) in conditions of a market economy. These regions need to stimulate growth of their own economic Above average resources and more energetic social development Below average policy by their administrations, supported by fed Critical (below 0.730) eral assistance in key areas of social development 68% and improvement of institutional structures. Such 113 Chapter 9. Human Development Index in the Regions of Russia Table 9.1 Human potential development index in 2004 GDP per Life expec Life Enrolment Income Education capita, tancy at Expectancy Literacy, % in Education, HDI Ranking Index Index US $ birth, years Index age 7–24, % Russian 9922 0.767 65.3 0.671 99.0 73.7 0.906 0.781 Federation Moscow 17091 0.858 70.8 0.763 99.8 100.0 0.999 0.873 1 Tyumen Region 44775 1.000 66.6 0.694 99.2 73.5 0.906 0.867 2 St.Petersburg 10133 0.771 67.3 0.706 99.8 93.1 0.976 0.817 3 Republic of 12325 0.804 67.7 0.711 99.0 78.5 0.922 0.812 4 Tatarstan Tomsk Region 12512 0.806 65.4 0.673 98.9 77.7 0.918 0.799 5 Lipetsk Region 13732 0.822 65.7 0.678 98.4 71.4 0.894 0.798 6 Оmsk Region 11945 0.798 65.7 0.678 98.7 74.5 0.906 0.794 7 Republic of 11680 0.795 64.2 0.654 99.0 78.4 0.921 0.790 8 Sakha (Yakutia) Belgorod 8464 0.741 68.2 0.720 98.6 74.1 0.904 0.788 9 Region Samara Region 9795 0.765 65.7 0.678 99.2 77.2 0.919 0.787 10 Republic of 9664 0.763 66.3 0.688 98.8 74.3 0.906 0.786 11 Bashkortostan Vologda 13864 0.823 62.8 0.630 98.8 70.8 0.895 0.783 12 Region Krasnoyarsk 11466 0.791 63.6 0.643 99.0 72.4 0.901 0.779 13 Territory Orenburg 9445 0.759 65.4 0.673 98.9 72.7 0.902 0.778 14 Region Komi Republic 11723 0.795 62.2 0.620 99.2 73.2 0.905 0.774 15 Novosibirsk 7519 0.721 65.6 0.676 98.8 79.3 0.923 0.773 16 Region Chelyabinsk 9131 0.753 64.6 0.661 99.1 73.4 0.905 0.773 17 Region Yaroslavl 9857 0.766 63.8 0.646 99.2 71.5 0.900 0.771 18 Region Republic of 6555 0.698 66.6 0.693 97.9 80.2 0.920 0.770 19 Mordovia 114 Human Development Report 2006/2007 for the Russian Federation GDP per Life expec Life Enrolment in Income Education capita, tancy at Expectancy Literacy, % Education, HDI Ranking Index Index US $ birth, years Index age 7–24, % Arkhangelsk 10870 0.783 62.3 0.622 99.2 71.4 0.899 0.768 20 Region Oryol Region 7144 0.713 65.0 0.667 98.9 79.4 0.924 0.768 21 Sverdlovsk 8369 0.739 64.4 0.657 99.2 73.3 0.906 0.767 22 Region Kursk Region 7047 0.710 65.0 0.666 98.5 80.0 0.923 0.766 23 Udmurt Republic 7793 0.727 64.2 0.653 99.0 77.1 0.917 0.766 24 Volgograd 6864 0.706 66.9 0.699 98.9 69.1 0.890 0.765 25 Region Magadan Region 9384 0.758 62.4 0.624 99.6 74.5 0.912 0.765 26 Krasnodar 6469 0.696 67.5 0.709 99.0 67.0 0.883 0.763 27 Territory Murmansk 9573 0.761 63.6 0.643 99.6 65.4 0.882 0.762 28 Region Chuvash 5577 0.671 66.3 0.689 99.0 78.9 0.923 0.761 29 Republic Perm Territory 9282 0.756 62.5 0.625 98.9 71.5 0.898 0.760 30 Saratov Region 6288 0.691 65.6 0.677 99.2 74.5 0.910 0.759 31 Astrakhan 7078 0.711 65.3 0.672 98.6 70.2 0.891 0.758 32 Region Ryazan Region 7190 0.714 64.1 0.652 98.7 74.7 0.907 0.758 33 Nizhny 7664 0.724 63.8 0.646 98.9 72.7 0.902 0.757 34 Novgorod Region Kemerovo 9400 0.758 62.2 0.621 98.9 69.2 0.890 0.756 35 Region Sakhalin Region 10357 0.774 61.5 0.608 99.4 66.3 0.884 0.755 36 Voronezh Region 5454 0.667 66.1 0.686 98.3 77.1 0.912 0.755 37 Rostov Region 5505 0.669 66.7 0.696 99.1 71.4 0.899 0.754 38 Moscow Region 7670 0.724 65.6 0.676 99.6 59.1 0.861 0.754 39 Tambov Region 5977 0.683 65.6 0.676 98.1 72.6 0.896 0.752 40 115 Chapter 9.