View Research by Author - Sergei Sivaev

Citation URL: http://www.urban.org/SergeiSivaev

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. 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. 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.

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. There is an obvious acute need for leadership at the national level to address these problems.

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