nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2013‒05‒05
seven papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Migration Processes in Russia in 2011 By Lilia Karachurina
  2. What We Expect from the New Government By Alexei Kudrin
  4. The Influence of Oil and Gas Revenues on Russia’s Monetary and Credit Policy By Alexei Kudrin
  5. How market-based water allocation can improve water use efficiency in the Aral Sea basin? By Bekchanov, Maksud; Bhaduri, Anik; Ringler, Claudia
  6. How safe is it, to Confuse Defense with Care? By Konstantin Yanovsky; Ilia Zatcovetzky; Georgy Syunyaev
  7. Economic adjustment in the Baltic Countries By Ardo Hansson; Martti Randveer

  1. By: Lilia Karachurina (National Research University-Higher School of Economics, Gaidar Institute for Economic Policy)
    Abstract: This paper deals with a scope of issues related to migration process taking place in the Russian Federation. The author focuses on the issues of labor migration and domestic migration. New legislative initiatives in the area of migration were reviewed.
    Keywords: Labor migration, international migration, Russian economy, Russian demography
    JEL: F22 J11 J61 J62
    Date: 2012
  2. By: Alexei Kudrin (Gaidar Institute for Economic Policy)
    Abstract: This paper deals with a scope of issues related to the formation of the new government of the Russian Federation after the election of the new president in 2012.
    Keywords: Russian economy, economic policy
    JEL: P22
    Date: 2012
  3. By: Vladimir Mau (Russian Presidential Academy of National Economy); Konstantin Yanovsky (Samuel Neaman Institute for Advanced Studies in Science and Technology, Technion (Israel))
    Abstract: The last decade’s Reforms in post-communist countries demonstrated, the aid proved to be most efficient in the countries where due to a timely schedule and consistency in reform implementation, governments can easily do without it. In case of Russia both the reformists and officials of international financial institutions have failed to race through the “window of opportunity”, while their vision of its necessary and sufficient qualities were likely to be inaccurate.
    Keywords: demand for institutions, electoral support to reforms; political factors of assistance programs efficiency, window of opportunity for reforms & for assistance program
    JEL: D72 F59 N14 N44 P16 P33
    Date: 2013
  4. By: Alexei Kudrin (Gaidar Institute for Economic Policy)
    Abstract: This article examines the problems of implementing monetary and credit policy when there is significant flow of currency revenues from the export of raw materials. It argues that, given a strong balance of payments, the Central Bank has to accept either a strengthening of the rouble or inflation. Only the RF Government has the power to prevent an appreciation of the currency whilst at the same time controlling inflation. This dual task can be achieved by saving, when external economic conditions are favourable, a share of the revenues from oil and gas in reserve funds. Such a policy can create the foundations for macroeconomic stability and a favourable investment climate.
    Keywords: monetary and credit policy, oil and gas dependency “Dutch disease”, reserve fund, inflation
    JEL: E52 E58 E61
    Date: 2013
  5. By: Bekchanov, Maksud; Bhaduri, Anik; Ringler, Claudia
    Abstract: Increasing water demand due to population growth and economic development under the mounted investment costs for developing new water sources calls for efficient, equitable and sustainable management of water resources in many developing countries. This is more essential in the Aral Sea basin where the tremendous development in irrigation since the 1960s combined with unbalanced water resources management led to the destruction of the ecosystems in the delta zone and the gradual desiccation of the Aral Sea, once the fourth biggest lake of the world with a surface area of 68,000 km2 and total water volume of 1,100 km3. Disintegration of the Central Asian states after the collapse of the Soviet Union also increased the tensions among up- and downstream users over sharing water resources. Insufficient investments in irrigation infrastructure, lack of economic incentives to adopt water-wise approaches, and inefficient water governance and institutions have been the main reasons of decreased water use efficiency in the post-Soviet period. Market-based water allocation is tested to deal with aggravating water conflicts in the Aral Sea basin. Aggregated integrated hydro-economic model is constructed to analyze the water market mechanism as an alternative option to the traditional administrative water allocation. Water users are allowed to trading their water use rights and increasing their benefits under this decentralized water management system. The analyses show the availability of additional gains amounted to US$ 373 to 476 million under inter-catchment water trading depending on the level of water availability. Similarly, additional gains of US$ 259 to 339 million are estimated under intra-catchment water trading. Furthermore, increased trend of additional gains from water trading along with decreased water availability are found. However, transaction costs of introducing tradable water rights are essential to judge the effectiveness of water market reforms and initiate appropriate institutional changes. According to our estimations, transaction costs of more than 5 ¢/m3 of traded water use rights eliminate the potential benefits of the water trading option. Friendly relationships among the riparian countries and infrastructural improvements are suggested as a means of developing low cost enforcement of water trading contracts.
    Keywords: water trading, transaction costs, environmental flow, hydro-economic model, Agribusiness, Agricultural Finance, Community/Rural/Urban Development, Crop Production/Industries, Environmental Economics and Policy, Land Economics/Use,
    Date: 2013–04
  6. By: Konstantin Yanovsky (Gaidar Institute for Economic Policy); Ilia Zatcovetzky (Samuel Neaman Institute for Advanced Studies in Science and Technology, Technion (Israel)); Georgy Syunyaev (National Research University – Higher School of Economics)
    Abstract: The correlation of state spending on pure and mixed public goods reflects the making of fundamental choices about state functions.
    Keywords: Budget Spending structure, pure public goods, mixed public goods, universal suffrage, military justice, military spending
    JEL: D72 D74 H11 H41 N40
    Date: 2013
  7. By: Ardo Hansson; Martti Randveer
    Abstract: Estonia, Latvia and Lithuania stand out for their rapid economic adjustment after the outbreak of the global financial crisis. The reduction of imbalances and vulnerabilities in the Baltic countries has been much faster than that in the euro area countries most affected by the debt crisis. Our analysis seeks to explain these developments by addressing the following questions. First, what explains the recent cyclical pattern of the Baltic economies? Second, what are the similarities and differences between the economic adjustment in the Baltics and that in the euro area countries most affected by the recent debt crisis? And, finally, how successful has the strategy of adjustment been in the Baltic countries? We argue that the primary driving force of the cyclical developments in the Baltic economies has been the change in capital flows. A comparison of the economic adjustment in the Baltic countries with that in the three euro area countries strongly affected by the debt crisis – Ireland, Greece and Portugal – suggests that the main determinant of the speed of adjustment has been the ability of the countries to mitigate the impact of the sudden stop in private sector capital flows. Looking at the pros and cons of rapid and gradual adjustment, we conclude that in the case of the Baltic countries, the strategy of rapid adjustment has overall been a successful response to a very difficult situation
    Keywords: business cycles, economic adjustment, financial crisis, Baltic economies
    JEL: E32 G01 P52
    Date: 2013–04–23

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