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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Spatial Disparities in Russia Economic & Social Trends

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.