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Russian Federation

How to bring discussion about financial issues into the classroom

Ivor Beazley's picture
The 2008 financial crisis was a “wake up” call to many teachers in the United States and Canada. As families lost their homes and parents lost jobs, they began to appreciate the importance of kids leaving school with some knowledge of the world of finance – especially about how personal decisions are made about finance and how financial decisions taken by government directly affect their lives and future prospects. 

A study group from Moscow and five regions of Russia recently visited Canada and the US to learn more about initiatives in those two countries and to bring discussion about financial issues into the classroom – with the idea of turning today’s students into active and responsible citizens of the future, able to make well-informed personal financial decisions and to engage in discussions about public finances on behalf of themselves and their communities.

What's next for Russia?

Donato De Rosa's picture
Whereas everybody agrees that Russia would benefit from a more diversified economic structure to sustain higher growth rates and living standards, the question is how to achieve it.

In the previous decade the government opted for interventionist policies aiming to develop an industrial base and jumpstart a knowledge economy. More recently, as a reaction to declining oil prices and economic sanctions, the Anti-Crisis Plan launched by the Government in January 2015 fleshes out an active import substitution strategy to replace imports with domestic production. So far, 19 roadmaps have been adopted to promote import substitution in a number of priority sectors, including metallurgy, agriculture, machine-building, chemicals, light industry, as well as the medical and pharmaceutical industries.

Why low oil prices are also bad news for the poor in Central Asia

Aurelien Kruse's picture
Trade & remittancesThe conventional wisdom is that low world prices for oil only hurt rich exporting countries, while generating a windfall for poor net importer economies.

However, in Central Asia, the story is more complicated. This is because the region’s poorer countries, Tajikistan and Kyrgyzstan, depend critically on Russia through trade and remittances.

Falling remittances, reflecting the weakness of the Russian Ruble

According to just-released Russian Central Bank data, outward remittances from Russia fell sharply in the first half of the year, in USD terms. In the first six months of 2015 (relative to the same time in 2014) private transfers from Russia to Tajikistan and Kyrgyzstan are reported to have fallen by over 45% and 30% respectively. While less exposed, Uzbekistan has experienced a loss of even greater magnitude: -48%.

How can Russia grow out of recession?

Birgit Hansl's picture

Russia’s economic woes continue: the recession deepened in the first half of 2015, severely impacting households, while the economy continued to adjust to the 2014 terms-of-trade shock, which saw oil prices being halved within a few months. In addition, investment demand has contracted for a third consecutive year.

Economic policy uncertainty, arising from an unpredictable geopolitical situation and the ongoing sanctions, caused private investment to decline rapidly as capital costs rose and consumer demand evaporated.

The record drop in consumer demand was driven by a sharp contraction in real wages, which fell by an average of 8.5% in the first six months of 2015 - illustrating the severity of the recession. The erosion of real incomes significantly increased the poverty rate and exacerbated the vulnerability of households in the lower 40% of the income distribution.

So, if oil prices remain low, how can Russia grow out of its recession?

Did we get the ‘old-age dependency’ of aging countries all wrong?

Johannes Koettl's picture
Photo by Brookings

We have all seen the numbers before: Over the coming decades, many countries in the developed and developing world alike will significantly age. One particular number to describe this development is the “old-age dependency ratio.” It measures the number of those aged above 65 years (currently defined as old age) as a share of those between 15 to 64 years (currently defined as working age). In other words, this ratio tells us how many retired people a potential worker has to sustain. With global aging, it will deteriorate dramatically in most countries over the coming decades. This raises serious concerns about the sustainability of pension systems.

Why do students and scholars need budget literacy?

John Ivor Beazley's picture
After one and a half days of intense discussions in Moscow with a group of experts from four continents, I have come away excited and energized by the possibilities of making students more aware of the business of government and becoming more active and responsible citizens. 
In most developed countries, anywhere from one-third to half of all national income is managed by the government - but how much does the average person really understand about the budget or the difficult choices and trade-offs being made by governments every day?
Should taxes be raised or lowered?
Should they spend on schools? Better hospitals? Pensions?
Is it better to run a deficit and let future taxpayers settle the bills or save today to pay down the debt? 
Why is this barely discussed in schools?  
To help address this basic question, the Russian Ministry of Finance, helped by the World Bank, is piloting an initiative designed to encourage responsible citizenship and greater engagement in the budget process. The idea is that high school seniors will debate and discuss these issues, using real life cases and information from government budgets. 

Part of the #Youthbiz movement? Share your story!

Valerie Lorena's picture

Also available in: Français | العربية

A boat trip from Port Elizabeth to Kingstown, in the Caribbean country of Saint Vincent and the Grenadines, is a one-hour trip that locals take several times a day. It was during one of these journeys that the boat of Kamara Jerome, a young Vincentian fisherman, ran out of gas six miles from Bequia City in what is termed locally as the "Bequia Channel." While waiting for help with strong wind gusts and the sun on his head, the idea of developing a boat that would run with wind and solar energy was born. Soon after, the idea became a prototype; a boat using green technology was on the water making 20-year-old Jerome a winner of international innovation competitions and a role model to other Caribbean youth. 
In Mexico, young engineer Daniel Gomez runs a multimillion bio-diesel company originally conceived as a research project for his high school chemistry class. Gomez and his partners - Guillermo Colunga, Antonio Lopez, and Mauricio Pareja - founded SOLBEN (Solutions in bio-energy in Spanish) in their early twenties. 
Although Daniel and Kamara have different educational backgrounds, they do share one important skill, the ability to identify a problem, develop an innovative solution, and take it to the market. In other words, being an entrepreneur, an alternative to be economically active, that seems to work and not only for a few.

Residential sector reform: Ukraine at the crossroads

Grzegorz Gajda's picture
Reform of the residential and utilities sector in Ukraine is now imminent, as much as the modernization of law enforcement or reform of the public health care system. In fact, Ukrainians deal with these areas on a daily basis and, historically, reforms in the residential sector were usually postponed until better times. First, it is important to explain why Ukraine finds itself in this situation. After gaining independence, Ukraine received, among other things, a tremendous amount of state-owned residential property.

Russia's recovery? In the long term, it depends on structural reforms

Birgit Hansl's picture
2015 is set to be a year of recession for Russia – with economic growth likely to come out somewhere between -2 and -4 percent.

The latest World Bank forecast for June projects a 2.7 percent contraction (based on an oil price of US$ 58 per barrel), which has been revised up from 3.8 percent (based on US$ 53 per barrel).

Ebola: $1 billion so far for a recovery plan for Guinea, Liberia, and Sierra Leone

Donna Barne's picture

With the Ebola outbreak waning but not yet over, the three most affected countries must now find ways to rebuild their economies and strengthen their health systems to try to prevent another health crisis in the future.

To that end, the presidents of Guinea, Liberia, and Sierra Leone came to the World Bank on April 17 to ask for help funding an $8 billion, 10-year recovery plan for the three countries, with $4 billion needed over the next four years to accelerate recovery. More than $1 billion was pledged by the end of a high-level meeting at the start of the World Bank Group -IMF Spring Meetings – including $650 million from the World Bank Group.