1. Spatial Disparities in Russia Economic & Social Trends N. Zubarevich, Moscow State University

2. Spatial development factors work in Russia! P. Krugman FIRST NATURE Natural resources Location SECOND NATURE Agglomeration effect Human capital Institutions World Bank Report 2OO9 Density Distance Division

3. Economic concentration: Share of leading regions in Russian GDP,% The biggest 10 1996200020032006 Moscow 12.221.021.123.1 Tyumen region (Siberia) 9.49.910.311.711.7 Moscow region 3.63.23.94.2 St-Petersburg 3.43.33.83.6 Tatarstan (Volga) 3.03.32.82.7 Sverdlovsk region (Urals)3.52.7 2.9 Krasnoyarsk kray (Siberia)3.03.52.42.6 Samara region (Volga)3.12.52.42.2 Bashkortostan (Volga) 2.92.62.42.3 Krasnodar kray (South) 2.32.4 2.1 10 regions totally 46.454.454.257.457.4

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

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

6. Regional disparities: Industrial Output Index (1990=100)

7. Regional disparities will grow further Investment per capita 2000-2007 (Russia average =100) Leaders to Russia average, % Outsiders to Russia average, % Oil & gas extracting regions799 Far East (without Sakhalin) 70 Moscow & St.-Peters- burg agglomerations164 Northern Caucasus republics 53 Industrial regions (row materials)110 Eastern Siberia 47 Seaport regions (West & South)109 Depression regions 43

8. Migration rate: Center-Periphery trend

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

10. Human Development Index Russia – 67 th 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%

11. Human Development Index Regional inequality is increasing

12. HDI comparison in Russian regions and countries Russia Moscow Tyumen region St Petersburg Republics Tyva and Ingushetia Belorussia, Brazil Czech Republic, Malta Hungary and Poland Bulgaria Mongolia, Guatemala and Tajikistan

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

14. Economic and social disparities of Russian regions Gini coefficient

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

16. 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.