Financial Journal №4(38) July-August 2017
V. S. Nazarov, N. A. Avxentyev
Healthcare in Russia: Problems and Perspectives
There is an evidence that today health spending efficiency in Russia is low: comparing Russia to foreign countries shows that, considering current expenditures, a number of medico-social variables reflecting healthcare effectiveness, e.g. life expectancy, mortality and equity in access to healthcare, can be improved. The article examines causes that deteriorate health spending efficiency: imbalance in Program of state guarantees in health, structural disproportion in health spending sources, the lack of universal outpatient drug provision program and inadequate motivation of health professionals. The authors also examined possible measures aiming to solve stated problems.
Keywords: health reform, program of state guarantees in health, compulsory health insurance, voluntary health insurance, drug provision
R. G. Yemtsov, Ye. I. Andreeva, M. A. Nagernyak, A. Posarac, D. G. Bychkov
Fostering of Dependency or Protection? Social Assistance Programs and Work Incentives
The paper introduces the methods of assessing the effects of social assistance on work incentives, using representative Rosstat survey data as illustration. It also demonstrates the key steps of testing the hypothesis of the social benefits effect on work incentives, as well as the need for conducting multi-factor analysis coupled with impact evaluation methods. The key finding from descriptive analysis is that an average household that has recipients of social benefits among its members cannot rely on social benefits as a significant source of means of subsistence, therefore social transfers do not produce a sizeable effect on work behavior. Nevertheless, the authors propose a hypothesis that there are certain groups of social transfers beneficiaries whose work behavior may be strongly affected by social transfers. Firstly, this refers to recipients of social transfers, the size of which is comparable to the anticipated wage size. In such cases, social transfers can produce a negative employment effect. Secondly, this could refer to recipients, whose eligibility to social transfers is related to their belonging to a certain professional group. In this case, in all likelihood, social transfers create economic incentives to stay in these professional groups, reducing labor mobility. The testing and analysis of these hypothesis will be presented in forthcoming papers by the authors.
Keywords: programs of social assistance, employment, labor market, families with children, work incentives, efficiency of social support
S. S. Lazaryan, M. A. Chernotalova
Global Risk of Rising Inequality
This article addresses the problem of rising income inequality in developed countries. According to the latest research, although inequality can influence economic growth both positively and negatively and existence of both channels has been confirmed empirically, currently negative impact of income inequality on growth dominates. During the last 25 years technological progress and, to a lesser extent, global integration have been shaping a global trend of rising income inequality. Empirical evidence suggests that impact of these processes on income inequality has been uneven across various countries, and in 50 % of developed countries we do not find significant increase in income inequality during the last 25 years. At the same time, given that technological progress, automatization, trade and financial integration will probably gather pace, we should expect a more pronounced increase in income inequality in most of countries over the medium term. Improving quality of institutions and providing equal opportunities to all members of society should be the key components of policy response to this global risk of rising income inequality.
Keywords: income distribution, inequality, Gini index, technological progress, globalization
E. E. Grishina
The Material Deprivation Rate for Households with Children in Russia and European Countries
The article analyzes the material deprivation rate for households with children in Russia and European countries. Different dimensions of material deprivation for Russian and European households with children in general, as well as, for households with three and more children and single person with children are considered by the author. The analysis shows that, comparing to European countries, households with children in Russia on average have higher rates of material deprivation and severe material deprivation. That indicates the need to strengthen social support to vulnerable households with children in Russia in order to reduce their deprivation.
Keywords: households with children, material deprivation, severe material deprivation, poverty
JEL: I31, I32
A. А. Bokarev, O. V. Bogacheva, O. V. Smorodinov
Methodology Development of Efficiency Evaluation of Public Infrastructure Investment Management
The article deals with the methodology improvement of efficiency evaluation of public infrastructure investment management after 2000. The authors claim that after the global financial crisis of 2007-2008 the traditional approach for evaluation and assessment of public investments efficiency in economic and social infrastructure based on results of each project has given a way to several new and more complex approaches. Developed by multinational corporations and multilateral organizations (World Bank, IMF, McKinsey Global Institute, etc.), such methodological approaches took into account the whole project life cycle, integration of public infrastructure investments into the budget cycle, and formation of national indices (ratings) of public investment management efficiency. The latter methodology allows to compare various countries’ public infrastructure investment management efficiency. The most recent efficiency evaluation methodology was developed and published by McKinsey Global Institute in June 2016. This is, in fact, assessment of public infrastructure investment efficiency as an integral part of public management quality evaluation of infrastructure as a whole. The authors also claim that methodologies developed by the World Bank and IMF could be applied to self-evaluation of efficiency of public infrastructure investments in the Russian Federation. It could help Russian economy to identify and overcome “bottlenecks” on the way to sustainable economic development.
Keywords: public infrastructure investments, project life cycle, management quality assessment, national index of investment management efficiency
JEL: H54, G18
I. V. Belyakov
Monitoring and Analysis of Contingent Budget Liabilities to Financial System
The last global financial crisis has demonstrated that when contingent budget liabilities risks materialize, the resulted budget losses can be huge even in advanced economies. Thus, the importance of the topic raised due to the need to mitigate these risks. On the other hand, monitoring and analysis of contingent budget liabilities are necessary for reliability of budget forecast, which is the basis for the future budget policy. The recent surveys of the OECD (2014) and the IMF (2016) have revealed that monitoring and analysis of the budget risks of contingent liabilities generally are not well-organized in most of countries. Nevertheless, it is possible to formulate several verified recommendations and point out some of the best practices in this field. These include regular and comprehensive reporting on budget risks, application of stress-testing and probability approach, and also calculation of quantitative indicators that measure implicit budget liabilities. As an illustration, two of such indicators, based on the Russian data for 2012–2016, are calculated and considered in the article.
Keywords: budget risks, contingent liabilities, financial system, banking crisis
JEL: H63, G12, G15
M. R. Pinskaya, O. A. Alaverdyan, S. V. Bogachev, G. K. Oganyan
Methodological Approaches towards Property Taxation in Tax Systems of Russia and Armenia
In the article the authors analyze conceptual approaches towards property taxation: principles, the definition of taxation object and tax base, application of tax rates. Using the examples of the tax systems of Russia and Armenia, the authors show implementation of principles of tax fairness, subsidiarity and effective administration, when designing property tax system in both states. Moreover, the authors characterize and delineate peculiarities of Russian and Armenian tax systems of property taxation. The article also reveals pros and cons of different approaches towards valuation of immovable property: based on physical and value indicators. The authors prove that reform of property taxation in Russia and Armenia is in line with worldwide trends.
Keywords: property taxation, principles of taxation, valuation of immovable property, tax reform, cadaster value, market value
JEL: E62, E63
A. N. Deryugin, K. A. Proka
Scale Effect Consideration in the Methodologies of Equalization Grants Distribution
The article considers the issue of taking into account the scale effect in calculating the expenditure responsibilities of the regions of the Russian Federation within the methodology of equalization grants distribution to Russian regions. The author shows the presence of this factor in the administrative costs of regional budgets. On the basis of international experience, as well as approaches applied in the regions of the Russian Federation, parameters of two kinds of scale coefficients have been calculated, and a method for their implementation in the federal methodology of equalization grants distribution has been proposed in the article.
Keywords: scale effect, equalization grants, budget capacity, intergovernmental fiscal relations, index of budget expenditures
JEL: H77, H81
V. V. Vagin, S. V. Romanov
Budgeting Initiative in the BRICS Countries
The article is devoted to the practice of citizen participation in budget decisions, as well as other practices of involving citizens in the development of public infrastructure in the countries that make up the BRICS: Brazil, Russia, India, China, South Africa. A rich arsenal of these practices in the BRICS countries can serve as an effective basis for expanding the long-term cooperation of the international organization members.
Keywords: initiative budgeting, participatory budgeting, territorial development, development of public infrastructure, BRICS
JEL: H72, H76, H79
K. V. Shvandar, A. V. Glazunov
National Currencies in Foreign Trade Transactions: International Experience and Results
The article is devoted to the analysis of foreign experience of studying the factors explaining the use of international and national currencies in foreign trade. Recently, the interest in these issues has increased significantly due to the active efforts of the EAEU countries to disclose the integration potential, in particular through the expansion of settlements in national currencies to minimize costs and risks. Since the beginning of 2017 the Eurasian Economic Commission has begun preparations for the research based on a survey on the use of national currencies in settlements between the EAEU countries. In light of this process special attention is paid in this article to foreign approaches to information support for the analysis of the use of currencies in foreign trade operations, the organization of surveys, the sampling of the companies under study, and the analysis of the reasons for success research.
Keywords: national currency, settlements on foreign trade operations, currency structure of settlements, countries of the EAEU, trading partners
JEL: F10, F14, F31