Report - UNDP Russia

energy regions exacerbate the income gapbetween different groups of the population. Theratio of incomes of the wealthiest 10% of peopleto incomes of the poorest 10% in theautonomous districts of Tyumen Region and inthe Nenets Autonomous District is 19-22 times,in Samara Region it is 19 times, and in Perm andKrasnoyarsk Territories, Komi Republic andBashkortostan it is 18 times (the national averageis less than 17 times). Of the 15 regions with thebiggest income gap, 10 specialize in fuelextraction. However, all of them are far behindMoscow where the ratio is 41 times.Large wage differences between sectorsand high cost of living in many fuel and energyorientedregions create special difficulties forlow-income groups. High cost of living makes itnecessary to divert more budget resources tosupport people on low incomes. Single-parentfamilies, families with many children, householdswith handicapped members, the unemployed,and some other groups are particularly at risk.Retirees are vulnerable to poverty in northernand eastern territories, where the averagepension lags 10-25% behind the minimumsubsistence level. The problem was partiallyresolved by pension increases in the past fewyears, but in some Far Eastern regions theaverage pension was lower than the subsistencelevel even in 2007 (by 9% in Sakhalin Region andby 6% in Sakha (Yakutia)). Indigenouspopulations in Russia’s northern territories alsoreceive low incomes, especially those living inrural areas. The problem is less acute furthersouth due to lower subsistence levels, particularlyin the Republics of Tatarstan and Bashkortostan,where the agricultural sector is better developedand receives funding from the budget.Negative impact of polarization ofincomes is compensated by large-scale socialpolicy. A very low poverty rate (6-7% in 2007) inthe autonomous districts of Tyumen Region isnot only due to high personal incomes. It is alsodue to per capita social expenditures of localbudgets, which are 1.6-2 times higher than thenational average (adjusted for differences in thecost of living). Rapid economic growth alsocontributes to reduction of poverty rates.Regions where new oil & gas fields are beingdeveloped (Nenets Autonomous District andSakhalin) have seen rapid growth of budgetrevenues, leading to a sharp reduction of thepoverty rate (by 3-6 times). In Tatarstan, the effectof rising budget revenues in reducing povertywas assisted by a low subsistence level.Nevertheless, in half of fuel & energy producingFigure 2.5Unemployment rate (ILO definition) as % of economically active population181998 2000 2002 2004 2006 2007 20081614121086420Samara RegionRepublic of TatarstanRepublic of BashkortostanYamal-Nenets Autonomous DistrictKhanty-Mansi Autonomous DistrictRF national averageKemerovo RegionKrasnoyarsk TerritoryKomi RepublicNenets Autonomous DistrictTomsk RegionOrenburg RegionPerm TerritorySakhalin RegionAstrakhan Region37