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111. Participation in a Decentralized Housing Allowance Program in a Transition Economy

Author:
Tatiana Lykova, Sergei Sivaev, Raymond J. Struyk, and Ekaterina Petrova
Publication Date:
05-2003
Content Type:
Working Paper
Institution:
Urban Institute
Abstract:
When Russia's housing allowance program, the country's first means-tested program, was introduced in 1994, it was truly innovative. But there were difficulties from the start, many arising from the division of authority for setting program parameters among different levels of government and the potential for variation in the treatment of similar households in different cities. In 1996, the program's original simple basis for benefit determination was seriously impaired by the introduction of different principles for very low-income households. Moreover, local governments have exhibited a willingness to vary benefits from year-to-year, depending on political and budgetary considerations. The analysis presented here documents the impact of these variations on participation rates in a sample of Russian cities. Large inequities are obviously present in the treatment of similar households from city to city. Indeed, it is questionable whether the program as currently configured is fulfilling the social safety net function envisioned for it in the original legislation.
Topic:
Development, Government, and Human Welfare
Political Geography:
Russia, Europe, and Asia

112. Russia's Winter Woes: Tariff Setting for Local Utilities in a Transition Economy

Author:
Sergei Sivaev, Raymond J. Struyk, Valentin Andrianov, and Emin Askerov
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
Urban Institute
Abstract:
During the past two winters, breakdowns in district heating services in Russia have grabbed international headlines. In Russia these services and water and sewerage services are the responsibility of municipal governments; these governments set the tariffs for these services. This article examines the tariff-setting process during 1997–2001 for these two services with particular emphasis on the decision process for considering tariff increases. We find that little progress has been made during the transition period in developing the legal base for rational tariff-setting procedures. Overall, tariff increases have been substantially less than the rate of inflation. Statistical analysis confirms that decisionmaking is highly politicized and that in times of extreme inflation tariff increases lag even further behind inflation, with the sector being used as a kind of shock absorber to cushion the full impacts of inflation on the population. There is an obvious acute need for leadership at the national level to address these problems.
Topic:
Development, Energy Policy, and Government
Political Geography:
Russia, Europe, and Asia

113. Democratic Transformation of the Security Sector in Russia: A Sad Saga of Failure

Author:
Yuri Federov
Publication Date:
10-2002
Content Type:
Working Paper
Institution:
Geneva Centre for Security Sector Governance (DCAF)
Abstract:
The motto "Yet who could guard the guards themselves?" used as the epigraph is often quoted in academic and political literature on civil-military relations. Indeed, it consists of two questions in one; both of which related to the essence of democratic transformation of the security sector in post-totalitarian societies: firstly, whether civil institutions are able to "guard the guards", in fact to control military and law-enforcement agencies, and, secondly, whether these institutions are democratically formed or they are of authoritarian or totalitarian nature.
Topic:
Security, Democratization, and Development
Political Geography:
Russia, Europe, and Asia

114. Divergence and dispersion in the Russian economy

Author:
Per Botolf Maurseth
Publication Date:
12-2002
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
In the Soviet Union, one result of central planning was geographical decentralisation of economic activity to a large set of remote peripheral regions. For Russian post-Soviet regions an important question is whether centripetal market forces may alter the pre-existing industrial location. This paper addresses some aspects of regional economic development in Russia. The Russian economic landscape differs from what is common in market economies. Peripheral regions are generally richer than the average. During the 1990s, differences in gross regional product increased. These developments have also meant less spatial concentration of economic activity. During the last half of the 1990s, economic growth was higher in central regions than in the peripheries. If these trends continue, the Russian economic landscape will alter significantly in the future, with income per capita, total income and population being concentrated in economic central regions.
Topic:
Development, Economics, and Industrial Policy
Political Geography:
Russia and Soviet Union

115. The Twain Shall Meet: The Prospect for Russia - West Relations

Author:
Charles Grant, Christopher J. Makins, Sergey Rogov, Christoph Bertram, and Robert Nurick
Publication Date:
09-2002
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
The integration of Russia into the West will be one of the most important, and most difficult, tasks facing the United States and Europe during the next decade. Yet a closer relationship with the West will be key to the development of Russian prosperity, democracy, and stability – achievements that will benefit the West as well as Russia. The attacks on September 11 and the resulting campaign against terrorism have given a decisive push to this effort, providing the political will for closer cooperation between Russia and the West.
Topic:
Development
Political Geography:
Russia, United States, Europe, and Asia

116. Towards Linguistic Diversity Management in the Baltic States

Author:
Vadim Poleshchuk
Publication Date:
05-2002
Content Type:
Working Paper
Institution:
European Centre for Minority Issues
Abstract:
Different foreign rulers have controlled Estonia and Latvia for 700 years. In 1920, both countries attained independence from Bolshevik Russia. However, the period of the countries' first independence was short: Estonia and Latvia were incorporated into the USSR in 1940.
Topic:
Civil Society, Development, and Regional Cooperation
Political Geography:
Russia, Eastern Europe, Estonia, and Latvia

117. Mortgage Default Insurance in the U.S.: Implications for Russia

Author:
Raymond Struyk and Douglas E. Whiteley
Publication Date:
03-2002
Content Type:
Working Paper
Institution:
Urban Institute
Abstract:
The objective of this paper is to introduce the concept of mortgage default insurance as developed in the United States into the context of Russian mortgage lending. The first part of the paper discusses the broad principles and operations of mortgage default insurance offered by private companies as it works in the United States. The pricing of this product and the preconditions for offering such insurance are highlighted. The second section outlines the operation of the U.S. government-supported default insurance offered by the Federal Housing Administration (FHA). The final part applies the foregoing information to the situation in Russia today and concludes that the conditions necessary for launching mortgage default insurance do not currently exist in the country. Nevertheless, there are a number of essential actions that can and should be taken over the next several months to put Russia on the road to establishing such insurance in a few years. The paper finishes with a possible action plan for the next two years.
Topic:
Development, Government, and International Trade and Finance
Political Geography:
Russia, United States, Europe, and Asia

118. At the Crossroads of Post-Communist Modernisation: Russia and China in Comparative Perspective

Author:
Linda Jakobson and Christer Pursiainen
Publication Date:
02-2001
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
“Modernity ends when words like progress, advance, development, emancipation, liberation, growth, accumulation, enlightenment, embetterment, avant-garde, lose their attraction and their function as guides to social action.” By this definition, Russia and China are both still undertaking extensive modernisation – though by very different means. Why have Russia and China chosen such different paths for their post-communist transitions? How do their strategies differ, and how are they interrelated? When – at what junctures - were the crucial choices made?
Topic:
Development, Economics, and Politics
Political Geography:
Russia, China, Europe, and Asia

119. Two Reluctant Regionalizers? The European Union and Russia in Europe's North

Author:
Hiski Haukkala
Publication Date:
01-2001
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
It has become something of a cliché to argue that the break-up of the Soviet Union in 1991 resulted in dramatic changes in the unfolding of political space in the 1990s. Yet this was especially true in the case of the then European Community (EC) and its relations with the Soviet Union/Russian Federation. During the Cold War, the relations between the EC and the USSR were practically non-existent. The ascension of Mikhail Gorbachev and the period of perestroika and glasnost resulted, however, in a gradual rapprochement between the two parties. The creation of these new ties was formalized in the signing of a Trade and Cooperation Agreement (TCA) between the EC and the USSR, which was, however, in effect signed with an already crumbling Soviet Union as it took place as late as 21 December 1989.
Topic:
Democratization, Development, Economics, and Regional Cooperation
Political Geography:
Russia, Europe, Asia, and Soviet Union

120. Russia in the International System

Publication Date:
06-2001
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
Russia's Foreign Policy Russian foreign policy in the coming years will be characterized by weakness; frustration--primarily with the United States as the world's preeminent power--over Russia's diminished status; generally cautious international behavior; and a drive to resubjugate, though not reintegrate, the other former Soviet states. The international situation affords Russia time to concentrate on domestic reforms because, for the first time in its history, it does not face significant external threats. But rather than use the breathing space for domestic reforms, Putin is as much--if not more--focused on restoring Russia's self-defined rightful role abroad and seeking to mold the CIS into a counterweight to NATO and the European Union. The Outside World's Views of Russia Russia does not have any genuine allies. Some countries are interested in good relations with Russia, but only as a means to another end. For example, China sees Russia as a counterweight to the United States but values more highly its ties with the United States. Some countries see Russia as a vital arms supplier but resent Russia also selling arms to their rivals (China-India, Iran-Iraq). Pro-Russia business lobbies exist in Germany, Italy, Turkey, and Israel (one-fifth of whose population now consists of Soviet émigres), but they do not single-handedly determine national policies. Europe is the only region that would like to integrate Russia into a security system, but it is divided over national priorities and institutional arrangements as well as put off by some Russian behavior. Most CIS governments do not trust their colossal neighbor, which continues to show an unsettling readiness to intervene in their internal affairs, though they know Russia well and are to a considerable degree comfortable in dealing with it. Turkey has developed an improved dialogue and an unprecedented number of economic ties with Russia during the post-Cold War period, but this more positive pattern of relations has not fully taken root, and Ankara remains suspicious of Moscow's intentions. Since the collapse of the Soviet Union, Moscow's role in the Middle East has been reduced, but Israel, Syria, Egypt, Libya, and Iraq all favor good relations with Russia. Mutual interests also override disagreements in Russian-Iranian relations, but Tehran is wary of Russian behavior, particularly toward Saddam Hussein. India still trusts Russia--a sentiment that is perhaps a residue of the genuine friendship of Cold War days--but clearly not in the same way it once did, and New Delhi fears that weakness will propel Russia into doing things that could drive India further away. In East Asia, the most substantial breakthrough has been the resurrected relationship between Russia and China, one that entails significant longer-term risk for Russia. Other countries in the region value their links with Moscow as a means to balance a more powerful China, or as a useful component of their larger political and economic strategies, but Russia's role in East Asia--as elsewhere--remains constrained by the decline in its political, military, and economic power over the last decade. Russia's Weakness Russia's weakness stems from long-term secular trends and from its domestic structure. In essence, the old nomenklatura and a few newcomers have transformed power into property on the basis of personal networks and created an equilibrium resting on insider dealings. These insiders may jockey for position but have a vested interest in preserving the system. The public does not like the system but is resigned to it and gives priority to the preservation of order. As for the economy, it is divided into a profitable, internationally integrated sector run by oligarchs and a much larger, insulated, low-productivity, old-style paternalistic sector that locks Russia into low growth. No solace will be forthcoming from the international business and energy worlds. They do not expect the poor commercial climate to improve greatly and will not increase investments much beyond current levels until it does. Militarily, Russia will also remain weak. Its nuclear arsenal is of little utility, and Moscow has neither the will nor the means to reform and strengthen its conventional forces. Hope for the Future? The best hope for change in Russia lies with the younger generation. Several participants reported that under-25 Russians have much more in common with their US counterparts, including use of the Internet, than with older Soviet generations. But there was some question over whether the new generation would change the system or adapt to it. Others placed some hope in international institutions, for instance the World Trade Organization, eventually forcing Russia to adapt to the modern world. Dissenting Views Some participants dissented from the overall forecast of depressing continuity. The keynote speaker, James Billington, stated that Russia would not be forever weak and that the current confusion would end in a few years either through the adoption of authoritarian nationalism or federated democracy. One scholar felt the Chechen war was feeding ethnic discord in other areas of the Federation to which Moscow would respond with increased authoritarianism, not necessarily successfully. Finally, a historian observed that the patience of Russians is legendary but not infinite, meaning that we should not be overly deterministic.
Topic:
International Relations, Foreign Policy, and Development
Political Geography:
Russia, United States, China, Middle East, and Israel