The United Nations Development Program (UNDP) is a global UN development network aimed at positively changing human life through provision to participating countries of access to knowledge, experience and resources. National Human Development Report for the Russian Federation, 2011 Modernization and Human Development Moscow 2011 Chief Authors: Prof. Alexander A. Auzan, Prof. Sergei N. Bobylev, Dr.Sc. (Economics) Dr.Sc. (Economics) Member of the RF Presidential Commission for Professor, Faculty of Economics, Modernization and Technological Development of the Lomonosov Moscow State University, Economy; Head of the Consulting Group Honored Scientist of the Russian Federation National Human Development Report 2011 for the Russian Federation /Edited by Prof. Alexander Auzan and Prof. Sergey Bobylev. M., UNDP in Russia / editing in English by Ben W. Hooson/ Design, prepress and printing by LLC Samolet Design Project. – M., 2011 - 142 pages, tables, figures, boxes. Readers are invited to inspect and read the latest Human Development Report for the Russian Federation. National reports such as this are published on the initiative of the United Nations Development Program (UNDP) in many countries of the world. Global Reports are also brought out annually. The reports are prepared by teams of independent experts. The main goal of the 2011 Report is to study Russia’s modernization goals in the context of human development, and to show the necessity of modernizing the economy and social life, and of improving many public institutions in Russia. This approach to aspects of modernization is a logical development of previous Human Development Reports for Russia. The present Report identifies basic modernization components, main parameters of a post-crisis economy, Russia’s social issues, development of social and institutional infrastructure, and analyzes what human development in a ‘new’ economy should be. The Report is intended use by for senior managers, political scientists, scientific researchers, teachers and high school students. The United Nations Development Programme in the Russian Federation expresses its sincere gratitude to the sponsor of the 2011 National Human Development Report for the Russian Federation: United Nations Population Fund (UNFPA) The authors express their gratitude to the senior personnel and staff of the Faculty of Economics at Lomonosov Moscow State University, particularly: Prof. Vasiliy P. Kolesov, Dean and National Project Director; Vladimir J. Echenique, Deputy Dean; and also to senior personnel of the Department for International Organizations at the Ministry of Foreign Affairs of the Russian Federation: Vladimir N. Sergeev, Department Director; Victor I. Zagrekov, Deputy Department Director; as well as to the management and staff of the UNDP Russia Team: Elena A. Armand, Head of Office; Natalia V. Voronkova, Project Coordinator; and Elena. E. Ovchinnikova, Project Associate. The authors also thank the Federal State Statistics Service, the Ministry of Health and Social Development of the Russian Federation and other ministries for data provided for the Report; as well as the World Bank, other UN Agencies in Russia and participants of the Public Hearing on the Report draft for their constructive comments. 2 The 2011 National Human Development Report (NHDR) for the Russian Federation has been prepared by a team of Russian experts and consultants. The analysis and policy recommendations in this Report do not necessarily reflect the views of the UN systems and other institutions by which the experts and consultants are employed. Authors: Introduction: Chapter 3. Box. Modernization in the Welfare of Russian Russia’s Demographic Russian Context Households as a Marker of Development: Trends, Prof. Alexander A. Auzan, Modernization Potential Problems, Solutions Dr.Sc. (Economics) Lilia N. Ovcharova, Valeriy Elizarov, Member of the RF Presidential Commission Ph.D. (Economics) Ph. D. (Economics) for Modernization and Technological Research Director, Independent Institute for Head of Centеr for Population Studies, Development of the Economy; Social Policy; Faculty of Economics, Lomonosov Moscow Head of the Consulting Group Head of Laboratory of Distributive Relations, State University; Institute of Social and Economic Studies of Professor of Chair of Sociology, Moscow Professor Vitaly L. Tambovtsev, Population, Russian Academy of Sciences University of the Humanities; Dr.Sc. (Economics) Member of Working Group of Presidential Head of Laboratory for Institutional Analysis, Chapter 4. Commission for Implementing Priority Faculty of Economics, Lomonosov Moscow The Russian Labour Market: National Projects and Demographic Policy State University; Efficient Employment or Scientific Supervisor of the ‘Social Contract’ Chapter 7. National Project Institute; Limiting Unemployment? Deputy Head of the Expert Council of the Economic Modernization Russian Foundation for Basic Research Prof. Tatyana M. Maleva, and Sustainable Ph.D. (Economics), Doctor of Development Chapter 1. Business Administration (DBA) Prof. Sergei N. Bobylev, The Economy and Director of the Independent Institute for Economic Policy in the Social Policy; Dr.Sc. (Economics) Professor of the National Research University Professor, Faculty of Economics, Crisis Recovery Period Higher School of Economics Lomonosov Moscow State University; Evsey T. Gurvich, Ph. D. Honored Scientist of the Russian Federation (Physics & Mathematics) Chapter 5. Prof. Vladimir M. Zakharov, Head of Economic Expert Group People – Education – Dr. Sc. (Biology) Modernization Corresponding member of the Russian Chapter 2. Academy of Sciences; Prof. Vasiliy P. Kolesov, President of the Center for Russian The Role of Institutions in Dr.Sc. (Economics) Environmental Policy; Modernization Dean of the Faculty of Economics, Lomonosov Director of the Institute of Sustainable Moscow State University; Development of the RF Civic Chamber Prof. Alexander A. Auzan, Head of Department for International Dr.Sc. (Economics) Economics Chapter 8. Member of the RF Presidential Commission Associate Prof. Irina G. Modernization and the for Modernization and Technological Development of the Economy; Teleshova, Ph. D. (Economics) Russian Space Head of the Consulting Group Vice-Dean of the Faculty of Economics, Prof. Natalia V. Zubarevich, Lomonosov Moscow State University Professor Vitaly L. Tambovtsev, Dr.Sc. (Geoghraphy) Dr.Sc. (Economics) Chapter 6. Professor, Faculty of Geography, Lomonosov Head of Laboratory for Institutional Analysis, Modernization and Moscow State University; Faculty of Economics, Lomonosov Moscow Head of Regional Programs, Independent State University; Healthy Lifestyle Policy Institute for Social Policy Scientific Supervisor of the ‘Social Contract’ National Project Institute; Associate Prof. Marina G. Deputy Head of the Expert Council of the Kolosnitsyna, Russian Foundation for Basic Research Ph. D. (Economics) Deputy Head of the Department for Public Administration and Public Economics; Head of the Laboratory for Economic Research in the Public Sector, National Research University Higher School of Economics 3 Dear Reader, I am glad to present to you the fif- have joined forces to promote the human de- teenth annual National Human Development velopment concept in Russia. Elaboration of Report for the Russian Federation, prepared national human development reports in the by a team of leading Russian experts. Russian Federation is a principal activity of this joint project. The present Report is de- Since 1995 the United Nations Devel- voted to Modernization and Human Develop- opment Programme has promoted its proj- ment. ects in Russia by supporting the preparation and publication of a series of reports which Modernization of the economy and provide analyses of the social and economic upgrading of many institutions, as well as de- challenges facing our country. Since 2011 velopment of social infrastructure have long the Faculty of Economics of Moscow State been recognized as the necessary condi- University is the National Executive Agency of tions for overall modernization in Russia. It is the Project, having taken over this task from therefore unsurprising that the issue of mod- the Ministry of Foreign Affairs of the Russian ernization and human development, dealt Federation. with in the present Report, is a logical de- velopment of the themes of previous Human The Faculty of Economics has for many Development Reports for Russia. The issue is years conducted serious research concern- of interest because it offers a general outline ing human potential, having significantly ex- of the modernization process, Russia’s main panded its activities in this field. The Faculty economic parameters, social and institution- trains masters and post-graduates, teach- al infrastructure, as well as contributing to ers and professors of relevant disciplines, understanding of what human development including training in CIS countries. Together in a ‘new’ economy really means. with the UNDP the Faculty has published two training manuals and has created an Inter- I would like to express my gratitude net portal devoted to human development to UNDP Russia for their support in prepar- issues, which offers an interactive training ing annual Reports, which are important in- course and contains a statistical module struments for inspiring government as well with 100 indicators of social and economic as scientific and political circles to discuss development in Russia’ regions. issues, which are vitally important