What are the Infrastructure policies of Russia?

During the Putin era 2000 - 2008, investment in infrastructure has been arbitrary and there has not been a clear policy regarding spending on schools, hospitals, roads or housing.

Early in 2000 there was discussion to start the so called "National Projects". These were useful projects aimed at developing the country's health care, housing and road infrastructure problems amongst others. However compared to what the government could have really spend taking into account the large oil revenues of the period, the amount was insignificant.

For comparison, in 2006, 6 billion dollars was allocated for the realisation of national projects (Natzproekt). In 2007 10 billion and 2008 12 billion. However the government paid Abramovich a total of more than all 3 amounts combined in order to buy Sibneft.

The total allocation from the federal budget that is being spent on health has decreased since 2006.

The administration of the funds also seems inneffective, for example the Natzproekt "Zdoroviye" (Health) has been the largest by allocation of funds. Out of 10 billion dollars allocated to all Natzporekts, 5 billion was allocated to "Zdoroviye". However data collected by the Levada Centre, suggests that only 14% or Russians were satisfied with the healthcare system while 72% thought it had remained the same or became worse. Even more evidence that "Zdoroviye" has been ineffective is the fact that Russian mortality rates have continued ot increase.

Another example is the Natzproekt "Dostupnoye Jilye" (Affordable Housing). In 2005 the cost of a standard 54 m 2 flat was equal to approximately the income of a family of 3 people over 4.3 years, in 2008 this had risen to 5.3 years. One of the reasons for the increase in prices of housing has been the real estate bubble and corruption in the real estate business.

These are only 2 examples but they give a grim outlook on the state of Russia's infrastructure policies. The policies do exist however they are underfunded and when the funds are used, they are often used ineffectively and do not deliver the required results.

Source: Independent Expert Report "Putin. Itogi" Boris Nemtsov & Vladimir Milov

Translated from Russian by Andrei Grigorian