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United Nations in Russia Resident Coordinator’s Annual Report 2007 and Workplan 2008 Key aspects Office of the UN Resident Coordinator in the Russian Federation January 2008 UN Resident Coordinator’s Annual Report 2007 for Russia _contents A B C D E Context for UN operations Progress in UN reform Highlights of 2007 joint efforts Key Aspects of the 2008 Workplan Recommendations a. Context for UN operations Russia continues to experience an investment boom and improvement s population incomes The economic growth in Russia remained robust in 2007, with full-year GDP growth of over 7 %, buoyant household consumption (over 9 % growth) and business investment (over 20 %). In general, according to World Bank assessment1, the country continues to experience an investment boom, significant improvements in productivity and population incomes. According to Rosstat, average real wage and disposable income increased by 16.2 and 12.9 percent, respectively during the first nine months of the year. This figure reflects a longer-term trend of rising relative prosperity over the past 5 years (see Box 1). As the growth continues to be largely based on soaring oil and gas export revenues, and structural reforms (except for the one in the electricity sector) have stagnated or stopped, the economy remains internationally uncompetitive2, and increasingly exposed to inflationary pressures. The latter, exacerbated by rising world prices, led, in 2007, to a noticeable surge (averaging over 20%) in food prices – making the 3-year high inflation rate of 11,5% felt by the poorest and most vulnerable in society. Box 1. Average monthly wage 2003-07, USD 497 Box 2. Registered labor migrants in Russia , thousands 1200 1014 1000 395 800 702 302 600 237 460 179 360 378 400 200 211 213 284 0 2003 2007 2004 2005 2006 Source: Federal Statistics Service (latest available data) Situation of jobless, poorly educated and unhealthy behaving youth put the country’s future at risk 1999 2000 2001 2002 2003 2004 2005 2006 Source: Federal Migration Service Social vulnerability and unequal access to the benefits of economic growth are widely seen as key challenges Russia is facing. While poverty levels decrease, incomes of budgetary sector workers, pensioners and younger people, particularly outside large metropolitan areas, remain too close to subsistence level. In addition, the quality of social services differs significantly 1 World Bank Russian Economic Report No 15. November 2007 58th position in the 2007-2008 Global Competitiveness Index Ranking published by the World Economic Forum 2 2 UN Resident Coordinator’s Annual Report 2007 for Russia across Russia, and unresolved and often unnoticed issues of jobless, poorly educated and unhealthy behaving youth3 put the country’s future at risk. Young people are also disproportionately affected by alcoholism, tobacco use and spread of infectious deceases, including TB and HIV. The country is undergoing a demographic transition marked by shrinking and rapid aging population Marginalization of the first post-Soviet generations is one of the factors of low fertility and high mortality rates that define the emerging demographic crisis4. As a recently published World Bank report5 argues – after the political and economic transition, Russia, like other Eastern European and CIS countries, is undergoing a demographic transition marked by shrinking and rapid aging population. The report estimates that by 2025, one person in every five may be over the age of 65, while Russia’s working-age population is expected to decline by 10 % in the next two decades and is also aging rapidly. A declining and aging population poses two key challenges: sustaining economic growth with a shrinking labor supply and managing fiscal costs associated with aging. In this context the issues of attracting labor migrants, regulating their status and ensuring their integration in the society remain highly topical, and yet largely unattended by public policy debate and action. As demonstrated by Box 2, the number of officially registered labor migrants has seen a dramatic 5-fold increase since 1999. This trend demonstrates both growing demand for migrant labor, and its increased legalization. Nonetheless, prohibitive administrative barriers, widespread corruption and xenophobic tendencies make it difficult for Russia to know how many migrants it actually receives, to create incentives for them to legalize and to take full benefit from their activity, while protecting their basic human rights. Key political developments of 2007 include the parliamentary elections, as a result of which the United Russia party won the constitutional majority in the State Duma and nomination of the likely successor for the presidential seat. The year was also characterized by formalization of state control over several sectors of the economy (through state corporations) and pressure on increasingly vocal opposition. National Projects will be come longerterm and more comprehensive state programs in 2008 The National Priority Projects brought first visible results in 2007, such as new equipment in schools and hospitals, computerization of the rural school network and increased access of small farmers to agricultural credit. At the same time, as the National Projects are expected to be transformed into longer-term comprehensive state programs during the next presidency, the need for more profound structural changes in the social services sector is becoming evident. Among issues of top concern are: affordable housing, development of preventive healthcare, improved quality of secondary and professional education, as well as ensuring the National Projects benefit the most vulnerable, including children without parental care and persons with disabilities. In addition, given the degree of differentiation in levels of development, particular focus of many of the emerging national policies will be on remote and poor areas of the country, such as the Arctic zone and the Far East. In this context, the UN assistance remains relevant and is increasingly geared towards supporting national and sub-national initiatives that help transform the social fabric, find sustainable infrastructure solutions and develop comprehensive approaches to policy, with reliance on local human resources and local funding. 3 As reference see the recent UNFPA report by Yael Ohana Generation Russia: An International Perspective on Youth Policy in the Context of Russian State and Nation Building (unpublished, Jan 2008) 4 For details see the UNCT publication “Demographic policy in Russia: from ideas to action” 5 “From Red to Gray: The Third Transition of Aging Populations in Eastern Europe and the Former Soviet Union” (2007) 3 UN Resident Coordinator’s Annual Report 2007 for Russia b. Progress in UN reform New themes for joint advocacy & action emerged including rights of disabled and development of the Arctic The key focus of the Resident Coordinator work in 2007 was on ensuring that UN programs are better aligned with national development plans. To this end several new, flexible coordination mechanisms were created as new themes for joint advocacy and action emerged including the rights of persons with disabilities, the development of the Arctic and the demographic policy – all reflecting UN’s attention to areas which the Government sees as among its priorities. The Theme Group on Poverty was discontinued, while the TG on HIV/AIDS was transformed into the Joint Team on AIDS. With the closure of OCHA office, UN work in the North Caucasus almost fully focuses on recovery and development Following an explicit request from the Government and reflecting the relative stabilization of the situation in the region, the Inter-Agency Transitional Workplan, for the North Caucasus was discontinued in 2007. The last update of the Workplan prepared in summer 2007 in a consultative UNCT effort outlined several key areas of UN assistance in 2008-2009 as well as a new coordination mechanism. The latter includes the Theme Group on North Caucasus established in November 2007 and replacing the Humanitarian Coordination Group. With the closure of OCHA office, which took place, as planned in December 2007, UN work in the North Caucasus almost fully focuses on recovery and development, in line with the key national priorities. UN House renovation is in its final stage As in previous years, UN contribution in the area of support to national efforts in preparation of MDG-based development strategies is limited by the scale of the country, complexity of its policy agenda as well as insignificance of financial resources brought in by international actors, as compared to available national resources. Nonetheless, UN through a joint analytical exercise, based on local expertise, has been able to prepare a publication on demographic issues that contributes to analysis and advocacy of synergetic policy measures, linking healthcare, socio-political, demographic and sociological aspects of the problem. The publication will be published and launched in 2008. In addition, several joint advocacy activities focusing on human rights, in including rights of disabled and of young people, were carried out. Highlights of joint efforts in 2007 is given in the table below. Last but not least, the renovation of the future UN House started and progressed significantly in 2007, while UNCT has been able to ensure optimum timeframe and costing arrangements. The move into the new common premises that will accommodate 9 UN agencies is planned for late summer 2008. c. Highlights of 2007 joint efforts Area of support Strategically supporting national efforts to address the demographic crisis Supporting outreach activities at sub-national level with focus on rights of the National Partners Moscow State University; Research Institute of the Ministry of Health Russian Guild of Film Makers; Administrations of Novgorod and North Ossetia UN Team UNFPA, UNICEF, UNDP, UNESCO, ILO, WHO, UNHCR, UNAIDS, WFP UNFPA, ILO UNHCR, UNDP, UNICEF, UNESCO, Key Results A thought-provoking publication is ready for print right at the time when Government sets out the implementation of its new demographic policy concept Two high-profile film festivals focused on rights of the youth organized in 2 regions, accompanied by training for regional media. 4 UN Resident Coordinator’s Annual Report 2007 for Russia youth UNIC Facilitating public debate on the rights of persons with disabilities Ministry of Communications; Ministry of Education, NGOs UNIC, UNESCO, UNDP, World Bank, WHO, ILO Raising awareness on HIV/AIDS epidemic Completing the transitional stage of UN’s assistance to the North Caucasus RIA-Novosti news agency, Federal Service on Surveillance Ministry of Foreign Affairs, Government of the North Caucasus republics Joint Team on AIDS UNHCR, WFP, UNICEF, FAO, UNDP, OCHA, WHO, UNDSS UN in Russia website was adapted to become fully accessible for persons with disabilities. Several high-profile expert discussions on the topics of e-accessibility and social integration of the disabled were organized. A highly successful online conference on the topic “Living with HIV in Russia” organized to mark the World AIDS Day The update to 2007 Transitional Workplan outlined the strategy of UN assistance in 2008-2009, and was agreed upon with the Government in a breakthrough consultation meeting d. Key Aspects of the 2008 Workplan In 2008, the Resident Coordinator function will continue to support all joint UN initiatives in the spirit of the Millennium Declaration and UNDG Action Plan on the Development Outcome of the World Summit, as well as facilitate internal coordination mechanisms, contributing to increased coherence and effectiveness of UNCT work. Continued effort will be made to focus UN joint efforts work on areas of high relevance and added-value. The bulk of such effort will be undertaken by the renewed UN theme/working groups, such as the ones on Gender, HIV/AIDS, North Caucasus, Youth, Human Trafficking, to which the Office of the RC will provide on-demand support. At the same time several key areas that require follow-up or support at the initiation stage will be the main focus of the RC work during the year. The “what” and “how” of this work is summarized below: Focusing the MDG+ advocacy on one acute issue, one region and one vulnerable group WHAT? Joint efforts will focus on MD/MDG issues relevant for Russia, where several UN agencies can contribute, and where gaps exist in properly understanding, planning or implementing the necessary mix of national policy measures. This will include, inter alia: Following up on MD / MDG+ agenda for Russia Planned Activity .most acute issue Supporting national efforts to address the demographic crisis (continuation of 2007 initiative) .regional focus Supporting national efforts to ensure sustainable and equitable development of the Russian Arctic Focus / Theme Analysis of synergetic policy measures, linking healthcare, socio-political, demographic and sociological aspects of the problem [Ad-hoc WG on demography] Advocacy contributing to enhanced understanding of the development opportunities and risks associated with the exploration of the Arctic, as well as promoting responsible private investment in the region [WG on the Arctic] National Partners Ministry of Health and Social Development; Administration of the President Ministry of Foreign Affairs. Environment; Administrations of the Arctic regions; Russian Union of Industrialists and 5 UN Resident Coordinator’s Annual Report 2007 for Russia .vulnerable group Supporting national efforts on ratification and implementation of the UN Convention on the rights of persons with disabilities Partnership with private sector and youth participation as emerging tools Supporting multi-stakeholder dialogue to sensitize decision makers and the public on the implications the ratification of Convention [Informal WG on rights of disabled] Entrepreneurs Ministries of Health and Social Development, Information Technologies, Education, MFA, etc. Special attention will be also paid to marking the 60th anniversary of the Universal Declaration of Human Rights. In addition, depending on availability of resources, UNCT may envisage additional advocacy activities within the framework of the International Year of Sanitation. HOW? In implementing the above activities, the UNCT will continue to rely on cross-sectoral partnerships involving government, NGOs and media. Special attention will be paid in 2008 to building practical yet principled alliances with the private sector (using Global Compact as a framework). In addition, effort will be made to involve active young people in formulation and realization of UN initiatives, promoting youth participation as an important element of the emerging civil society. Finally, the human-rights based approach will remain at the core of the UN’s joint activities, thus also constituting an important topic for joint advocacy and communications. 6 UN Resident Coordinator’s Annual Report 2007 for Russia e. Recommendations It is noted with disappointment that practically none of the recommendations provided in the previous year RC report and in many similar documents were taken into consideration. It means that: Financial contributions remain barely sufficient to cover staffing costs; No mechanism of regularized allocation of funding for UN coordination from Ex-Com agencies was created at HQ level; Expectations from UNCTs formulated in the RC report / workplan templates are still too broad and only lead to dispersion of limited funding available. In essence, all of the above, no matter how much justified by institutional and donor relationship constraints undermine the leveraging potential of the Resident Coordinator function. Another issue of concern for UNCT in Russia is the legal uncertainty of the status of the UN in Russia. The umbrella agreement between UN and the Russian Federation signed in 1993 and amended in 1995 has not been ratified to date. This jeopardizes the normal operation, makes application of certain privileges and immunities discretionary, leaves UN staff largely unprotected. While talks seem to have taken place with regard to a renewed agreement, a firm and official legal advice and support from HQ would be more than appreciated, so that the issue of UN’s legal status in the country could be resolved without delay. 7