Spatial Disparities in Russia Economic & Social Trends


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Spatial Disparities in Russia

  • Economic & Social Trends


Spatial development factors work in Russia!

  • P. Krugman

  • FIRST NATURE

  • Natural resources

  • Location

  • SECOND NATURE

  • Agglomeration effect

  • Human capital

  • Institutions



Economic concentration: Share of leading regions in Russian GDP,%



Economic disparities: 40 times differentiation and vast middle zone (per capita GRP, thousand rubles)



Siberia and Far East are growing slower GRP Index, 2006 to1998,%



Regional disparities: Industrial Output Index (1990=100)



Regional disparities will grow further Investment per capita 2000-2007 (Russia average =100)



Migration rate: Center-Periphery trend



Social trends: Regions are getting more divided in terms of life expectancy at birth



Human Development Index Russia – 67th in the world (2005)

  • Life expectancy at birth (men – 60 years, women – 72 years)

  • GDP per capita – 13.700 US$ PPP in 2007 (growth from 5.200 US$ PPP in the end of 1990s)

  • Education is only positive component: literacy - 99%, 6-24 years population enrollment - 75%



Human Development Index Regional inequality is increasing



HDI comparison in Russian regions and countries

  • Russia

  • Moscow

  • Tyumen region

  • St Petersburg

  • Republics Tyva and Ingushetia



Share of the population living in the regions with different HDI, %



Economic and social disparities of Russian regions Gini coefficient



WB Report 2009: regional inequalities grow worldwide EU 15 regional disparities – the same trend



Conclusion

  • Regional inequality in Russia is a long-term phenomenon caused by objective factors and catching-up stage of economic development.

  • Regional economic disparities will grow further.

  • Social inequality is possible to be diminished if economic recourses for redistribution are high enough and social policy is effective (targeted)

  • But slow and contradictory improvement of basic social indicators in Russian regions point to low quality of economic growth and lack of effective social policy.




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