The fourth regular round table discussion, organized by the George Russell Centre for Corporate Competitiveness (GRCCC) within the framework of the open discussion "The Future of Russia: Developing Global Competitiveness" took place on July 11, 2003 in the Moscow Centre of the EastWest Institute. The theme of the round table was: "VAT Administration: Is Reform Necessary?". Leading Russian experts, largely members of the George Russell Centre expert group, participated in the discussion.
Topic:
Development, Economics, and International Trade and Finance
On June 26, 2003 the third regular round - table discussion within open discussion “Future of Russia: Global Competitiveness Development” took place in the Moscow Center of the EastWest Institute. The topic under discussion was: When is it time for competitiveness development strategy for companies?”
On June 11, 2003 the second regular round - table discussion within open discussion “Future of Russia: Global Competitiveness Development” took place in the Moscow Center of the EastWest Institute. The topic under discussion was: ”Financial System of Russia: Threats and challenges of the 21st century”.
Improvement of the financial relations between the Federation and the regions still remains quite an urgent problem. The Concept of Reforming Inter budgetary Relations in the Russian Federation in 1999 — 2000 is being implemented; Russia's Finance Ministry has developed the Concept of Reforming Budget Federalism in the Russian Federation to 2005, which will soon be approved by the Government; a special section on interbudgetary relations has been included in the Main Long- Term Trends of Socio-Economic Policy of the Russian Federation Government program, drafted by the Strategic Research Center.
Topic:
Economics, International Trade and Finance, and Political Economy
This paper analyses regional data on inequality and poverty in Russia during 1994-2000 using published series from the regionally representative Household Budget Survey. The paper finds that the share of inequality in Russia coming from the between-regions component is large (close to a third of the total inequality), growing, and accounts for most of the increase in national inequality over 1994-2000. The paper demonstrates an absence of interregional convergence in incomes across Russian regions using various techniques. On the other hand, the paper finds evidence of convergence in inequality within regions, trended towards an internationally high level. Based on these two findings, the paper projects dynamics of inequality and poverty in Russia over a ten-year time horizon. The projections show that if the observed trend continues, by 2010 the absolute majority of Russia's poor will be concentrated in a few permanently impoverished regions, while relatively more affluent regions will become virtually free of poverty. Finally, the paper relates fluctuations in inequality within regions to a set of factors classified into four broad categories: endowments and initial conditions, preferences, policies, and shocks. Among these factors short-run fluctuations of the unemployment rate are revealed as significant and strong signals of inequality.
Michael Förster, David Jesuit, and Timothy Smeeding
Publication Date:
09-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper reports levels of income inequality and poverty in four Central and Eastern European countries: the Czech Republic, Hungary, Poland and Russia. Unlike many previous researchers who examine transition economies, we aggregate the detailed individual-level income surveys made available through the efforts of the Luxembourg Income Study at the regional level of analysis. Although national-level investigations have contributed much to our understanding of the income distribution dynamics, these studies mask intracountry variance in levels of income inequality and thus may not capture the true distribution of household income and accurately reflect individual wellbeing. Accordingly, we compute summary measures of inequality and relative poverty rates, using both local and national relative poverty lines, for the most recent waves of data available. We offer comparisons between regional and national median incomes and assess levels of inter- and intraregional income inequality. In addition, we make comparisons to regions within Western European countries and find that, contrary to what is often asserted, interregional disparities in Central and Eastern Europe countries are not as large as those found in some Western European countries.
Topic:
Development and Poverty
Political Geography:
Russia, Europe, Eastern Europe, Poland, Hungary, Czech Republic, and Luxembourg
The interplay of a differentiated indirect tax structure and the variation in expenditure patterns across households, leads to a possibly unequal distribution of indirect tax liabilities across the population. This paper uses the ninth round of the RLMS survey to assess the distributional consequences of the two major components of the indirect tax system: VAT and excise taxes. The global indirect system can be considered to be progressive overall, according to the Kakwani index. Decomposition into constituent terms shows that this is due not only to a progressive VAT structure, but also to progressive excise taxes. This surprising result is mainly explained by the progressivity of the excise tax on car fuel, but might also be sensitive to peculiarities in the data about alcohol consumption.
We argue that the conflicts in the Caucasus are the result of the abrogation by the elite of the earlier, Soviet era, social contract. This process was accompanied by the collapse of the formal economy; evidenced by huge national income compression, falling public goods provision, and growing inequality and poverty. In the absence of state provision of basic amenities and governance, ordinary people are compelled to fall back on kinship ties. Declining standards of governance facilitate state-sponsored corruption and criminality in a setting where the shadow economic activity is increasingly important to individual survival strategies. Oil pipelines and the right to control the transit of goods both legal and illegal also underlie conflict in the region. Criminality has replaced ethnicity as the major motivation for conflict and conflict per se has become a lucrative source of income.
North Caucasus Weekly (formerly Chechnya Weekly), The Jamestown Foundation
Abstract:
Did the U.S. and Russian governments both know that, when Russian commandos stormed Moscow's Dubrovka theater in October of 2002, the Chechen terrorists inside it had already agreed to release several of their hostages, including U.S. citizen Sandy Booker? Booker's fiance, Svetlana Gubareva, says that the answer is Yes. Booker and Gubareva's 13-year-old daughter, Sasha, both died in the tragedy; Gubareva was also taken hostage but survived.
North Caucasus Weekly (formerly Chechnya Weekly), The Jamestown Foundation
Abstract:
The recent upheavals in the Kremlin, including the resignation of Aleksandr Voloshin as President Vladimir Putinís chief of staff, could portend major changes in the Kremlinís policies on Chechnya. Voloshin was known as a key architect of those policies and especially as a political ally of Akhmad Kadyrov, whose inauguration he attended in person last month. Conversely, the so-called ìsilovikiîó—the hard-liners of the military and secret police establishment, widely seen as the winners in the latest Kremlin faction fightó—have often been hostile to Kadyrov, whom they see as unreliable.