CIAO DATE: 06/2008
February 2008
Finnish Institute for International Affairs
During recent years, transport and infrastructure development has acquired the status of a ‘topic to be mentioned by the president’ and other high-level state officials in their public appearances. The rise of transport from almost complete oblivion into the sphere of state strategic interests has been rapid, and it is a subject which is likely to maintain a high profile in the years to come.
Success in implementing the current plans for infrastructure development is considered critical in order to generate further economic growth. From the longer-term perspective, it will also be critical in ensuring the diversification of the economy and securing Russia’s place amongst the most advanced economies in the world. The modernization of the transport infrastructure is also seen as a lever with which Russia can reposition herself as a power-house in Eurasia.
In actual fact, Russia is not a bridge but the dead-end of Eurasia. The country is faced with the enormous task of modernizing its transport infrastructures and implementing structural reforms that have been postponed for years. This would pose a tremendous challenge even in the best possible external circumstances, never mind against the backdrop of inflation and uncertainty in the world markets which exists at present.
Something which has changed is that Russia now has the resources and the appropriate legislation in place to carry out these tasks. Yet, even if considerable effort has gone into defining strategic priorities, infrastructure investments are still implemented in an ad-hoc manner. The country is in dire need of massive construction projects. If the quality of the state apparatus in managing government spending does not improve – and there are few signs of that materializing – infrastructure development will become the Trojan horse of the Russian economy.
Resource link: The transport infrastructure in Russia - From modernization to development: fact and fiction [PDF] - 3.5M