Social & Economic Policies of Putin's Fourth Term and Implications for Korea - Think Asia
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July 5, 2018 Vol. 8 No. 19 ISSN -2233-9140
Social & Economic Policies of Putin’s
Fourth Term and Implications for Korea
PARK Joungho Director of New Northern Policy Department (jounghopark@kiep.go.kr)
MIN Jiyoung Senior Researcher, Russia and Eurasia Team, New Northern Policy Department (jymin@kiep.go.kr)
KIM Chorong, Researcher, Russia and Eurasia Team, New Northern Policy Department (crkim@kiep.go.kr)
I. Introduction It is necessary for the Korean government to
consider the overall social and economic poli-
On March 18, 2018 Vladimir Putin was re-
cies of Russia when preparing future coopera-
elected to a fourth term as president of the tion plans with Russia. This is particularly true
Russian Federation. On May 7, 2018 his for the regional development sector, as it in-
fourth term officially started. Mr. Putin has cludes the railway, port and Arctic route with-
managed to establish a solid base for govern- in the “9-bridges” cooperation plan proposed
ment administration during his fourth term, by President Moon Jae-In during his visit to
and has effectively dealt with criticism regard- the 2017 International Economic Forum held
ing his long-term rule. However, several criti- in Vladivostok, thus raising hopes for coopera-
cal issues remain unresolved, mostly related to tion in housing and infrastructure construction
the post-Putin political order, domestic policy, projects.
macroeconomic stability, and other issues.
During his fourth term, Mr. Putin is likely to II. Major Social Policies
focus on domestic social and economic issues.
His plans for the next six years are stated in 1. Health & Medicine
the “List of Instructions for the Implementa-
tion of the President’s Message to Federal As- As for the Health & Medicine sector, the Rus-
sembly” dated March 16, 2018 and Presiden- sian government adopted the State Program on
tial Decree No. 204 "On national goals and Healthcare Development up to 2025 on De-
strategic tasks of the development of the Rus- cember 2017. This program covers, among
sian Federation for the period until 2024" of others, death rate issues, problems related to
May 7, 2018. These two documents cover the providing medical service in remote areas, and
areas of medicine, education, environment, R&D issues. The government in cooperation
social welfare, regional development, trans- with the Ministry of Healthcare plans to spend
portation, advanced technology, R&D, and around 34 trillion rubles over 2018‒2025. Ma-
other related economic issues. jor goals of this program include reducing theJuly 5, 2018
death rate, improving medical service accessi- government adopted the State Program on Na-
bility, introducing new medical technologies, tional Education Development up to 2025 on
and reducing incidence of cardiovascular dis- December 2017. This Program is aimed at im-
eases and malignant tumor. proving the quality of education, improving
the accessibility of education, and developing
Table 1. State Program of Russia on online education platforms. The government
“Healthcare development up to 2025” and Ministry of Education plan to spend
- Reducing death rate around 31 trillion rubles during the period of
- Improving medical service 2018 to 2025. This State Program covers all
accessibility
Major Goals
- Developing new technologies level of education, from kindergarten to uni-
- Reducing cardiovascular and versity degree and extra-curricular education,
malignant tumor
- Improvement of disease
including culture and art courses. The Russian
prevention and medical government aims to have 100 million online
service
- Expansion of rehabilitation
students enrolled by 2025 and 10 Russian uni-
and nursing facility versities ranked in the world top-100 level.
- Promotion of international
cooperation in healthcare and
Sub-programs
medicine Table 2. State Program of Russia on “National
- Implementation ICT Education Development up to 2025”
technology to healthcare
system - Improving the quality of
- Improvement national education
compulsory medical - Improving access to
insurance system Major Goals
education
- Promoting public awareness - Developing Internet
about self-healthcare via Education
continuous education
- Implementation of
- Opening primary medical professional educational
institutions in 33 federal programs
districts by 2022
- Development of preschool
- Developing human resources and general education
Primary Tasks in healthcare and medicine
- Development of extra-
- Promotion of Russian medical Sub-programs
curricular education for
technology and medical children
tourism of Russia
- Improving the management of
- Tightening medical the education system
regulations
- Promotion of the Russian
- Improving medical service via language
digitalization
- Developing and distributing of
innovation technologies to
Recently as the importance of cancer treat- secondary vocational and
higher education
ment is growing, the Ministry of Healthcare of - Developing modern
mechanisms and
Russia is developing the Cancer Treatment technologies of general
R&D Strategy up to 2030. This strategy is ex- education
- Implementing measures on
pected to encompass the modernization of Primary Tasks
development of the scientific,
cancer centers, early stage cancer diagnosis, educational and creative
environment in educational
and the development of new cancer treatment organizations
technologies. - Creating the system of extra-
curricular education for
2. Education & Culture children
- Providing an infrastructure for
training human resources
In the Education & Culture sector, the Russian
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Social & Economic Policies of Putin’s Fourth Term and Implications for KoreaJuly 5, 2018
- Protection of Lake Baikal
In his presidential address to the Federal As- - Creating an effective system
sembly, Mr. Putin mentioned plans to create of state regulation and
management of
additional museum complexes, implement environmental protection
professional bachelor’s degree programs, and - Stimulating business to
cooperate in ecological
to simplify the Russian citizenship acquisition modernization
procedure for professionals, but there has been - Creating conditions for the
development and
no further discussion regarding these agendas. implementation of
Further specific measures regarding the im- Expected Results
environmentally efficient
innovative technologies
plementation of these tasks are expected to be - Developing the market of
published in October 2018 in the form of a Eco-friendly goods and
services
new State Program on Culture Development. - Creation of environmentally
safe and comfortable
3. Environment environment in urban areas
- Reducing regional differences
in protection of rare and
As for the Environment sector, the govern- endangered species of the
ment adopted the State Program on Protecting flora and fauna of Russia
Environment on December 2014. This Pro-
gram covers the period of 2012‒2020 and the In addition, 69% of all Russian thermal power
state budget for this Program amounts to 270 plants were built during the period of
billion rubles over eight years. In addition, the 1964‒1988. The serious pollution resulting
Russian government announced 2017 as the from these plants and the need to procure a
Year of Environment. At the ECOTEX-2017 secure energy supply has prompted the Rus-
forum held in Moscow in December 2017, sian Ministry of Energy to engage in a mod-
various talks were held in regard to joint re- ernization program since 2014. This program
search with business partners on ways to de- will is expected to cost around 95 billion ru-
crease industrial waste, protecting endangered bles.
species with international organizations, creat- 4. Population & Welfare
ing 24 specially protected regions throughout
Russia, etc. These issues were announced the In the Population & Welfare sector, the gov-
core results of the Year of Environment. ernment adopted the State Program on Social
Support to Citizens up to 2020 on December
Table 3. State Program of Russia on “Protect- 2014. The initial budget of this Program was
ing Environment up to 2020”
13 trillion rubles for the period of 2013‒2020.
- Increasing the level of
Major Goals environmental safety
- Preserving environment Table 4. State Program of Russia on “Social
- Regulation of environmental Support to Citizens up to 2020”
quality
- Prevention of biological - Increasing the accessibility of
diversity of Russia social service for citizens
- Managing hydro - Creating conditions for the
meteorological and Major Goals growth of welfare of citizens,
Sub-programs who are the beneficiaries of
environmental monitoring
- Organization of scientific social support measures,
research in the Arctic and state social guarantees
Antarctic - Improvement of social
- Elimination of accumulated support for certain categories
Sub-programs
environmental damage of citizens
- Modernization and
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Social & Economic Policies of Putin’s Fourth Term and Implications for KoreaJuly 5, 2018
development of social Concept of the Regional Development Strate-
services for citizens
- Provision of state support to gy of the Russian Federation for the period up
families with children
to 2025. This document is currently under re-
- Improvement of effectiveness
of state support for socially- view by the Federation of the Federal Assem-
oriented non-profit
organizations
bly of Russia.
- "The older generation"
- Fulfilling state obligations on Housing and mortgage issues are administrat-
social support to certain
categories of citizens ed under the Priority Project of the Ministry of
- Increase in the proportion of Transportation and Ministry of Construction
social service institutions
based on other forms of on Mortgage and Leasing launched in October
ownership 2016. This Priority Project aims at improving
- Increasing by 2018 the
average salary of social the living conditions of Russian citizens and
workers to 100 percent of the stimulating demands for housing.
average monthly income
Expected Results
- Federal fertility rate growth
- Increasing proportion of Table 5. Priority Project of Ministry of Con-
orphans and children left
without parental care, struction, Ministry of Transportation of Russia
transferred to families; on “Mortgage and Leasing”
- Increasing the volume of
social services provided by - Improving housing conditions
socially-oriented non-profit of Russian citizens
Major Goals
organizations - Stimulating demand for new
- Improving the material and hosing
social status of the elderly - Construction of high-quality,
comfortable and affordable
housing,
Apart from the State Program, the govern- - Improvement of mortgage
Sub-programs loans for citizens and
ment has implemented a subsidy system since reducing financial risks
2007, through which it aims to alleviate the - Implementation of pilot
projects for construction of
population problem. Childcare allowance is specialized rental housing,
paid out of the Federal Pension Fund, from - Using more than 13,500
hectares of federal land in
government budget, when Russians give birth cities with population of over
to or adopt a second child, and can only be 250,000 for housing
- Supplying of 21.2 million
used for the purpose of housing improvement, ㎡ of housing
child education, insurance, and treatment of - Issuing mortgage securities
more than 40% of total of
disabled children. The Russian government Expected Results securities issued over 2017-
also enacted the Low-Rate Mortgage Loan Act 2020
- Providing mortgage and
on January 1, 2018 in response to how 92% of leasing online
the childcare allowance was used mainly for - A large-scale rental housing
and apartment building
housing needs. project might be implemented
by mutual funds, of 65 billion
rubles till 2020
II. Major Economic Policies
1. Regional Development & Infrastruc-
Another Priority Project related to regional
ture development and Infrastructure is the Safe and
Good Quality Roads project, which falls under
To deal with Regional Development concerns, the jurisdiction of the Ministry of Transporta-
the Russian government has prepared the tion. This Priority Project started in 2017 and
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Social & Economic Policies of Putin’s Fourth Term and Implications for KoreaJuly 5, 2018
will continue up to 2025. cember 2016. The main goals of this Strategy
are to improve human resource management
Table 6. Priority Project of Ministry of Trans- in science and technology, create research-
portation of Russia on “Safe and Good Quality friendly environments, and promote interna-
Roads” tional cooperation.
- Creating normative road
condition in urban The Ministry of Education also adopted the
agglomerations (in 2018 -
50%, in 2025 - 85%); State Program on Scientific and Technological
- Reducing the number of Development of Russia in April 2014. This
Major Goals traffic accidents (in 2018 - by
50% of the level of 2016, in State Program covers the period of 2013 to
2025 - by 85%); 2020, and has been allocated a budget of 145
- Optimizing traffic flows
- Increasing the efficiency of billion rubles. Recently, a new State Program
spending road funds on Scientific and Technological Development
- Implementation of programs
for integrated development of is being prepared. The new version will cover
transport infrastructure of the period from 2018 to 2025. The aims of the
urban agglomerations aimed
at eliminating accidents spots new Program are likely to center on the devel-
and doing restoration work opment of intellectual potential, scientific,
- Adoption of legal acts aimed
at improving traffic and technical and intellectual support to structural
Step I
optimizing traffic flows, changes in the economy, and the effective or-
(~2018)
- Management of information
resource on road funds usage ganization of scientific, technical and innova-
efficiency tive activities.
- Formation of a database of
photo and video materials on
traffic rule violations Along with the Strategy and State Program on
- Management of public
monitoring of roads. Scientific and Technological Development,
- Implementation of programs the government of Russia adopted another
for integrated development of
transport infrastructure of State Program in July 2017 on the Digital
urban agglomerations aimed Economy. This program aims at creating new
at improving the system of
traffic management and digital contents, in which the data in digital
optimizing traffic flows, form is the key factor of production in all
Step II
synchronizing the
(2019-2021) spheres of social and economic activity, thus
development of transport
infrastructure and all types of ensuring effective interactions across borders
transport
- Introduction in urban and throughout the business, scientific and
agglomerations an digital educational communities, and between the
traffic management systems
and transport infrastructure state and citizens.
- Completion of integrated
Step III development of transport
(2022-2025) infrastructure of urban Table 7. State Program of Russia on “National
agglomerations. Education Development up to 2025”
2. Scientific & Technical Development - Development of intellectual
potential of the nation
- Improving the quality of life
Scientific & Technical Development is ad- Major Goals
and strengthening national
security
dressed by the government’s adoption of the - Effective organization of
Strategy on Scientific and Technological De- scientific, technical and
innovation activities
velopment of the Russian Federation on De- Sub-programs - Development of young talents
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Social & Economic Policies of Putin’s Fourth Term and Implications for KoreaJuly 5, 2018
and professionals seemingly in line with the third term.
- Performance of fundamental
long-term scientific research
- Forming wide range scientific, Beginning from as early as 2016, the govern-
technological and innovative
development ment has announced the need for new policies
- Doing research, development on healthcare and medicine, housing, educa-
and innovation for
implementing government tion, environment, digital economy, and eco-
priorities nomic growth.
- Forming Infrastructure for
scientific, technical and
innovative activities The Korean government needs to consider all
- Forming an integrated system
of sustainable development of the abovementioned policies currently ongo-
scientific, engineering and ing within Russia. The healthcare, medicine
entrepreneurial personnel
- Obtaining new fundamental and education sectors are not included in the
results “nine bridges” cooperation plan proposed by
- Producing of new science-
Expected Results intensive products(goods, the Korean government, but they are regarded
services) as the most promising areas for cooperation
- Locating large international
scientific projects between the two countries. The environment
- Reducing costs for sector is seen as a particularly promising new
organization scientific,
technical and innovation cooperation area between Korea and Russia,
activities and this cooperation will be expanded through
projects such as joint research on environmen-
Additional proposals on the Comprehensive tal monitoring systems and sharing know-how
Action Plan for the Government of the Rus- on waste management. The regional develop-
sian Federation for 2017-2025 are still in pro- ment sector includes the railway, port, and
cess. The prior deadline, May 30, 2017, has Arctic route of the “Nine Bridges”1 suggested
been extended at the behest of the Government. by the Korean government. When considering
the policy direction of Russia, the construction
of housing and infrastructure will be a particu-
IV. Conclusion
larly promising area to strengthen cooperation
Coming into the fourth term of Putin's presi- between the two economies.
dency, it is expected that the previous regional
development policy, which focused on infra-
In addition, both Korea and Russia emphasize
the importance of policies to support the
structure construction, and the rest of the so-
growth of SMEs, meaning it should be possi-
cio-economic policy platform will continue in
ble to seek new avenues of cooperation be-
a similar direction as his third term.
tween SMEs in the two countries.
The construction of housing and infrastructure
for regional development is mentioned at the
beginning of the List of Instructions for the
Implementation of the President’s Message to
Federal Assembly, dated March 16, 2018, and
the concepts, strategies and programs related 1 The concept presented by Korean President Moon Jae-
to regional development are being developed In during the 3rd Eastern Economic Forum, which repre-
sents 9 bridges (shipbuilding, harbor, Arctic route, gas,
in accordance with this List. Other policies are railway, energy, agriculture, fishery, job) connecting Ko-
rea with northern countries.
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