Rating of socio-economic development of the regions

вестник 07.04.2016

Russia is extremely heterogeneous country: whatever parameter is used at comparing of its regions, they will all be different from each other. The territory, climatic conditions, ethnic composition, economic potential and level of social development - all these parameters are different.

However, there is a need to understand the specificity of each subject of the federation, in determining the amount of the investment, demographic and consumer potential, the degree of business representation. For these purposes the Information agency Credinform has prepared a "Rating of socio-economic development of the regions".

The statistical data collected by our experts are quite different in each region, due to the heterogeneity of the territories. Bringing them to the standardized indicators (points) helps to get the generalized result, which will give an objective picture of regional development and allow comparison of the republic, territory, region, autonomous regions, and federal cities with each other.

The bases of the rating consist of 15 indicators best reflecting the current socio-economic situation in each of the 85 Russian regions. This is information on the demographics, level of wages, incomes of regional budgets and size of the GRP (gross regional product) per capita, inflation, investments, retail turnover, number of legal entities and individual entrepreneurs, etc. (see Table 1).

Table 1. Indicators used to compile the rating of the regions; minimum and maximum values.

IndicatorMinimum points (1) Maximum points (85)
1 Population on January 1, 2016 The lowest population The highest population
2 Rate of natural population growth, 2015 The lowest value The highest value
3 Relative increase (decrease) of population, 2015 The lowest relative growth / decrease in population The highest relative growth of the population
4 Life expectancy at birth (both sexes, the entire population), 2014 The lowest life expectancy The highest life expectancy
5 Unemployment rate in average for the year, 2015 The highest level of unemployment The lowest level of unemployment
6 Volume of gross regional product (GRP) per capita of the RF subject, 2014 The lowest GRP per capita The highest GRP per capita
7 Average monthly nominal wage of employees on a full range of organizations, January-December 2015 The lowest wage The highest wage
8 Investments in fixed capital per capita, 2014 The lowest investments per capita The highest investments per capita
9 Retail trade turnover per capita, 2014 The lowest retail trade turnover per capita The highest retail trade turnover per capita
10 Revenues of the Russian Federation subject budget (excluding non-repayable income) per capita of the subject of the Russian Federation, 2014 The lowest revenues of the budget per capita The highest revenues of the budget per capita
11 Turnover of public catering per capita, 2014 г. The lowest turnover of public catering per capita The highest turnover of public catering per capita
12 Basic consumer price index in December 2015 to December 2014 The highest price index (inflation rate) The lowest price index (inflation rate)
13 Index of industrial production, 2015 The lowest increase in the index of industrial production The highest increase in the index of industrial production
14 The number of individual entrepreneurs on March 1, 2016 The lowest number of individual entrepreneurs The highest number of individual entrepreneurs
15 The number of legal entities on March 1, 2016 The lowest number of legal entities The highest number of legal entities

To assign the region of a numerical point for each of the 15 indicators, the data were ranked by decrease / increase of their numeric values. For example, the inflation rate was ranked from the lowest to the highest value, while the index of industrial production - from the highest to the lowest.

The total index of socio-economic development of the Russian Federation subjects was calculated by summing up the points for all indicators.

Eventually three groups of territories under the following conditional names were drawn: "Regions of the first group" (from the 1st to 30th place), "Regions of the second group" (from 31st to 60th place) and "Regions of the third group"(from 61st on the 85th place).

Expectedly, the "Regions of the first group" are areas with the major sectors of the Russian economy: oil and gas, mining, agriculture, as well as the capital cities (Moscow and Saint-Petersburg). The level of social and economic development in these regions is higher than the average around the country.

The first place in the national rating is taken by Moscow (1091 points). With the exception of high inflation and the reduction of the index of industrial production, the capital shows the great potential both in demographics (ongoing growth of the population, high life expectancy), and in the development of the regional economy in general. The highest number of legal entities and individual entrepreneurs, the highest budget revenues per capita, the lowest unemployment level in the country are recorded in the capital.

The Republic of Tatarstan takes the second place (1046 points) having high values of all 15 assessment indicators.

Saint Petersburg is on the third place (1027 points), and as well as Moscow, is lagging behind in terms of higher inflation and lower industrial production index.

Table 2. "Regions of the first group". Top-10 of the RF subjects with the best level of socio-economic development

Place in the ratingSubject of the Russian Federation Total points
1 Moscow 1091
2 The Republic of Tatarstan 1046
3 Saint-Petersburg 1027
4 Khanty-Mansi autonomous okrug - Yugra 993
5 Moscow region 987
6 Tyumen region (excluding AO) 986
7 Krasnodar territory 961
8 Yamal-Nenets autonomous okrug 932
9 The Republic of Sakha (Yakutia) 929
10 Krasnoyarsk territory 910

The "Regions of the second group" are subjects, demonstrating the best values of one indicators and unsatisfactory of other.

For example, the Chukotka autonomous okrug (595 points) has one of the lowest levels of inflation in the country, the highest level of wages paid, high budget revenues and volume of the GRP per capita, in the background of "catastrophic" demographic processes: Chukotka has one of the worst indicators of life expectancy, total population, and the relative increase in population. Thus, high income today does not make this harsh land attractive for living, as it was in the Soviet period. The romance of the northern territories development has gone.

On the contrary, the Republic of Dagestan (697 points) with a relatively low level of economic development shows good demographic data, including for life expectancy, which is typical for the whole Caucasus.

The "Regions of the third group" are entities of Russia with the worst values of the general index of socio-economic development. New regions of the Republic of Crimea (468 points) and Sevastopol (390 points) were also included in this group.

It is interesting, that last year Sevastopol showed the highest relative increase in population among all the regions of Russia, but poor economic figures has not yet allowed this region to rise above the 75th place of the rating.

The Republic of Crimea has low values of the GRP and budget revenues per capita. Also, the highest value of core inflation dynamics is recorded. All these put the Republic on the 69th place of the national rating.

Kurgan region (298 points) closes the final table with the smallest composite index. The region scored the minimum points on all key indicators.

Table 3. "Regions of the third group". Top-10 of the RF subjects with the worst level of socio-economic development

Place in the ratingSubject of the Russian Federation Total points
75 Sevastopol 390
76 Oryol region 379
77 Republic of North Ossetia-Alania 378
78 Kostroma region 367
79 Jewish autonomous region 364
80 Ivanovo region 357
81 Republic of Ingushetia 343
82 Republic of Kalmykia 339
83 Pskov region 321
84 Karachai-Cherkessian Republic 309
85 Kurgan region 298

The presented rating largely explains the budget, migration and investment attractiveness of the Russian regions, and their image ("bad" - "good") among the population. Migratory and financial flows go to the conditionally "promising" areas to the development prejudice of other regions of the Russian Federation.

This situation is associated with the policy of level equalization of budget financing through intergovernmental transfers, subsidies, grants. Such actions lead to two paradoxical results: the Federation accumulates tax revenues in a single center, and the regions in their turn expect the budget funds inflow without efforts to their own socio-economic development. Hence, there is a significant predominance of the recipient regions over the donor regions. The same applies to the local authorities, which on paper are endowed with a wide list of powers, but there is often no funds for their implementation. Excessive centralization leads to obvious distortions in the development of the country in general. The government should seek to balance the interests of the regions by providing them more autonomy and financial resources without compromising the integrity.

Appendix. Rating of socio-economic development of the region

Table 4. "Regions of the first group". The first 30 subjects of the Russian Federation in terms of socio-economic development

Subject of the RF123456789101112131415Total points
1 Moscow 85 65 79 84 85 80 81 73 85 81 81 26 16 85 85 1091
2 The Republic of Tatarstan 78 69 67 72 80 72 56 76 78 66 66 69 39 79 79 1046
3 Saint-Petersburg 82 64 73 82 84 75 75 67 77 76 72 24 11 81 84 1027
4 Khanty-Mansi autonomous okrug - Yugra 58 80 77 74 70 83 79 83 81 80 82 8 21 61 56 993
5 Moscow region 84 45 81 62 83 65 73 59 80 70 71 6 42 83 83 987
6 Tyumen region (excluding AO) 54 74 83 50 38 76 71 78 79 79 79 31 79 53 62 986
7 Krasnodar territory 83 50 80 75 44 57 44 75 75 45 74 50 44 84 81 961
8 Yamal-Nenets autonomous okrug 14 81 4 69 81 84 84 84 83 83 84 80 64 21 16 932
9 The Republic of Sakha (Yakutia) 30 79 66 36 24 79 77 79 63 78 80 82 63 55 38 929
10 Krasnoyarsk territory 73 61 65 23 41 74 70 74 62 68 42 83 28 74 72 910
11 Sverdlovsk region 81 46 55 34 35 66 63 57 82 59 77 16 19 80 82 852
12 Novosibirsk region 71 55 70 47 31 56 50 47 59 48 46 67 46 72 80 845
13 Samara region 75 34 43 31 82 61 47 66 74 61 62 30 30 71 77 844
14 Sakhalin region 13 47 39 10 36 82 80 82 84 84 73 75 83 23 25 836
15 The Republic of Bashkortostan 79 56 51 35 43 50 41 46 73 38 55 66 47 77 75 832
16 Belgorod region 57 28 59 73 78 68 38 51 56 41 14 77 68 59 53 820
17 Perm territory 69 49 48 21 37 63 52 52 71 49 68 58 35 73 73 818
18 Nizhny Novgorod region 76 20 32 29 71 51 45 55 72 51 41 62 56 75 76 812
19 Nenets autonomous okrug 1 78 78 56 17 85 83 85 67 85 85 4 76 1 1 802
20 Rostov region 80 31 46 65 42 32 33 32 66 29 56 46 85 82 74 799
21 Khabarovsk territory 50 53 33 11 53 70 72 62 68 69 69 29 38 48 59 784
22 Murmansk region 23 48 17 40 19 71 76 71 76 72 75 42 75 22 33 760
23 Chelyabinsk region 77 42 57 32 27 42 58 36 47 39 40 81 24 76 78 756
24 Voronezh region 64 15 58 61 69 48 36 69 69 33 16 20 60 66 69 753
25 Leningrad region 59 8 62 48 57 69 66 63 49 71 44 18 29 57 48 748
26 Irkutsk region 66 63 49 4 15 64 65 58 18 62 22 53 67 70 70 746
27 Tomsk region 37 66 63 57 20 67 68 68 14 63 58 47 33 35 50 746
28 Stavropol territory 72 59 56 77 49 20 27 18 58 16 70 13 71 78 61 745
29 Magadan region 3 43 2 6 72 78 82 81 64 77 78 64 74 5 5 734
30 Omsk region 62 54 53 45 32 47 49 17 52 43 39 73 41 60 64 731

Table 5. "Regions of the second group". Subjects of the RF from 31st to 60st places in terms of socio-economic development

Subject of the RF123456789101112131415Total points
31 The Republic of Komi 26 58 6 22 28 77 74 80 70 74 67 32 48 29 31 722
32 The Republic of Udmurtia 56 60 52 42 59 44 37 27 29 44 65 71 22 52 57 717
33 Orenburg region 63 44 31 17 61 62 35 50 33 56 60 78 9 58 55 712
34 Yaroslavl region 47 19 54 55 52 49 43 45 42 65 47 14 70 46 60 708
35 Kaliningrad region 31 41 75 49 47 53 53 39 34 55 52 54 13 41 67 704
36 Primorye territory 61 38 40 18 30 59 67 44 41 57 54 57 2 64 71 703
37 Astrakhan region 34 67 37 59 23 41 40 72 54 35 53 44 72 38 29 698
38 The Republic of Dagestan 74 82 76 83 5 12 1 41 60 4 83 15 52 62 47 697
39 Lipetsk region 42 17 45 53 77 60 32 60 61 52 28 49 43 40 32 691
40 Kamchatka territory 8 62 29 12 68 73 78 53 38 73 76 43 53 9 15 690
41 Kemerovo region 70 30 35 9 21 39 51 56 20 46 36 60 54 63 65 655
42 Saratov region 67 24 41 63 62 28 22 23 19 23 20 63 58 67 63 643
43 Arkhangelsk region (excluding AO) 41 36 7 46 34 52 69 43 65 67 61 19 12 45 37 634
44 Vologda region 43 37 34 33 33 55 48 40 23 54 23 52 51 47 58 631
45 Tula region 55 2 22 30 76 38 46 33 44 60 6 34 80 54 51 631
46 Kaluga region 33 27 50 39 73 54 57 65 53 58 25 7 4 42 42 629
47 Penza region 51 16 20 68 64 25 26 28 32 21 38 72 73 51 41 626
48 Volgograd region 68 29 25 67 26 40 30 48 25 30 11 38 32 69 66 604
49 Kirov region 48 26 18 52 56 18 17 15 24 24 63 74 62 50 54 601
50 Chukotka autonomus okrug 2 72 9 2 79 81 85 77 10 82 7 84 1 2 2 595
51 The Republic of Khakassia 15 57 61 20 45 46 59 49 21 34 43 85 23 17 14 589
52 The Republic of Buryatia 32 76 68 16 11 16 55 7 37 20 64 70 55 27 30 584
53 Kursk region 39 12 64 44 75 37 28 38 40 37 17 10 65 37 36 579
54 Novgorod region 16 6 21 14 66 58 42 64 48 50 51 40 57 16 19 568
55 Amur region 24 39 19 5 46 43 64 61 55 64 49 22 5 26 24 546
56 Bryansk region 44 14 16 27 67 21 10 22 51 13 59 35 82 44 34 539
57 Tambov region 36 4 3 64 65 35 12 70 50 17 13 45 66 31 28 539
58 The Republic of Chuvashia 45 51 47 54 58 17 8 12 12 18 48 61 17 49 39 536
59 Ryazan region 40 10 23 60 63 36 39 21 36 36 26 36 18 36 45 525
60 Vladimir region 53 9 15 24 51 29 29 19 28 31 34 41 50 56 46 515

Table 6. "Regions of the second group". Subjects of the RF from 61st to 85st places in terms of socio-economic development

Subject of the RF123456789101112131415Total points
61 Tver region 49 3 8 15 48 30 34 34 45 47 32 51 14 43 49 502
62 Ulyanovsk region 46 22 28 51 60 26 24 30 27 25 15 21 45 39 43 502
63 Ulyanovsk region 52 85 82 78 3 3 20 11 6 3 57 11 40 28 12 491
64 Smolensk region 29 5 14 28 39 33 25 25 43 32 45 65 34 30 40 487
65 The Republic of Karelia 17 21 26 25 12 45 60 20 46 40 33 59 31 13 35 483
66 Altai territory 65 32 30 41 16 15 2 9 26 14 8 55 36 65 68 482
67 The Republic of Mordovia 25 13 44 66 74 24 19 26 7 53 9 68 15 19 18 480
68 The Republic of Marii El 20 52 38 26 54 23 18 42 11 15 35 27 78 11 21 471
69 The Republic of Crimea 60 25 71 58 25 1 21 2 5 1 5 1 81 68 44 468
70 Zabaikalye territory 38 68 27 7 7 22 62 35 22 28 50 12 27 34 20 459
71 The Republic of Adygea 10 40 69 70 13 10 15 8 57 11 19 48 61 14 10 455
72 The Republic of Tyva 7 83 72 1 2 8 54 24 2 8 4 76 77 7 4 429
73 The Republic of Kabardino-Balkaria 28 75 60 81 8 5 5 3 15 7 12 5 69 33 17 423
74 The Republic of Altai 5 77 74 8 9 13 23 37 9 10 10 39 84 6 8 412
75 Sevastopol 9 33 85 76 14 2 31 1 8 75 21 2 7 15 11 390
76 Oryol region 22 7 11 37 40 31 11 31 30 22 27 37 25 25 23 379
77 The Republic of North Ossetia - Alania 21 73 42 79 10 11 6 13 31 6 24 28 3 18 13 378
78 Kostroma region 19 18 24 43 55 27 13 10 13 26 31 33 8 20 27 367
79 Jewish autonomous region 4 35 1 3 18 34 61 29 17 42 29 79 6 3 3 364
80 Ivanovo region 35 11 12 38 50 6 7 4 35 12 30 23 10 32 52 357
81 The Republic of Ingushetia 12 84 84 85 1 4 14 5 1 2 1 3 37 4 6 343
82 The Republic of Kalmykia 6 71 13 71 6 9 3 54 3 9 3 56 20 8 7 339
83 Pskov region 18 1 10 13 29 14 9 14 39 27 37 17 59 12 22 321
84 Karachai-Cherkessian Republic 11 70 36 80 4 7 4 16 4 5 2 25 26 10 9 309
85 Kurgan region 27 23 5 19 22 19 16 6 16 19 18 9 49 24 26 298