Transport Strategies for the Russian Federation [antikvár]

Foreword Russia's transport system, developed for a command economy, will require substantial restructuring to meet the needs of a markét economy. The structure of the industrial and transport sectors, coupled with low energy prices, have led to a far more intensive use of transport in Russia than in other economies: almost six times as high as the United States and four-and-one-half times as China. Intensifying the need for basic restructuring are problems stemming from the present economic situation and the breakup of the USSR. Lower output reduced the demand for many transport services; and the dissolution of the USSR has had a deleterious effect on the supply of vehicles and spare parts for all modes of transport, particularly for the railway system. The sector's performance is declining as a result and the government is increasingly called on to cover operating losses and fináncé investments. The government recognizes the need to restructure the transport sector. It has begun privatizing many transport operations and has taken steps toward freeing prices. But the vertically integrated, centralized and monopolistic structure of the sector has made achievement of reforms more difficult than anticipated. At the same time, the lack of knowledge of how much the coming economic rationalization of the energy and industrial sectors will require changes by the transport sector has led to pressure to return to the old system. This means that until Russia's economy is restructured and the true level of demand based on an unsubsidized cost structure becomes clear, careful analysis will be required to ensure that proposed transport investments are justified on economic or social grounds. The downturn of the economy, along with the shift from transporting raw materials and industrial goods to transporting lower-density generál freight, will keep transport levels below their peak of 1988 for years. Furthermore, a shift from rail to road transport is inevitable, particularly for time-sensitive shipments and short-haul traffic. This report on Russia's transport sector reviews the issues and assesses alternatives for improving the efficiency of transport operations and making them more market-oriented. The report also assesses the effect transport reforms and investments will have on economic recovery and of the fiscal impact that transport enterprises may have on the government's budget. The study is intended for policymakers and their advisers in the Russian Federation and other republics of the former USSR. All those interested in transport, in distribution systems, in fiscal reform issues, and in the critical role that privatized transport operators can play in facilitating economic recovery should find this study useful. Russell J. Cheetham Director Country Department III Europe and Central Asia Region