Abstract
In Russia, in 2020, the pandemic led to a remarkable decentralization in the power distribution from the federal government to the regional authorities, which were free to choose restrictive measures and, in general, to implement strategies to deal with the pandemic and its consequences. Based on an analysis of legal regulations and statistical data, the chapter examines how policy measures varied among Russian regions and how they reflected the trade-off between spread of the disease, economic well-being, and political priorities, all highly dependent on the regional context. We conclude that although regional authorities acquired responsibility for the situation, during the pandemic they often had a lack of relevant resources to deal with its economic consequences. Crises primarily affected the market services sector, for example, hotels, catering, culture and leisure enterprises, and B2B services. The resulting unemployment rates varied highly among regions partly because of the initial differences in the sectoral structure of labor markets, but also due to the effectiveness of policy measures adopted by regional and local governments. The case of St. Petersburg, which recorded the highest death rates from COVID-19 in Russia, shows the incompleteness and contradictions in official statistics that complicated the adoption of governmental decisions. Inadequate regional and municipal budget planning and implementation undermined an effective policy response to the pandemic in the city.
This chapter is the product of a collective effort by all six authors; however, primary responsibility for the different sections is as follows: Maria Zotova: Sect. 21.1; Olga Glezer: Sects. 21.2 and 21.3.1; Sergey Safronov: Sect. 21.3.2; Evgeny Antonov, Alexander Sheludkov: Sect. 21.3.3; Kirill Strakhov: Sect. 21.3.4.
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Notes
- 1.
The database of legal acts of the ConsultantPlus Reference Legal System “Consolidated Regional Legislation” as of April 20, 2021, was used.
- 2.
Decree of the Mayor of Moscow of March 5, 2020, no. 12-UM, On the Introduction of a High Alert Regime.
- 3.
Federal Law no. 68-FZ of December 21, 1994, On Protection of the Population and Territories from Natural and Man-Made Emergencies.
- 4.
However, the orders of regional and municipal departments and organizations regulated their own work regime and the behavior of their employees at work and in the performance of official duties.
- 5.
For a little more than a year of the pandemic, in some regions, acts were changed less than ten times; in most, dozens of times; and in some, more than a hundred. Obviously, such a spread cannot correspond to either the dynamism of the epidemiological situation or the particulars of legal adjustment to the situation; it can be explained only subjectively.
- 6.
According to (Obshchestvo… 2020), wearing masks was mandatory in 81 (out of 85) federal subjects; self-isolation has been introduced in 71 regions; a pass system, in 47; restrictions on movement between individual municipalities, in 20; administrative liability for violation of the regime, in 15; quarantine, in 10; partial suspension of transport links, in 8; restrictions on entry into a region, in 5.
- 7.
Numerous social and political events (in 2020 and early 2021, they abound) significant for the entire country or for individual regions and municipalities were used by the authorities to weaken or strengthen restrictive measures. In turn, the measures were widely used to regulate the political agenda: e.g., restrictions on holding mass events served as a permanent basis for prohibiting protests, but they did not interfere with the organization of pro-government or official state actions with an incomparably larger number of participants. The most recent example is the sudden, but not justified by the epidemiological situation, reduction in the permissible number of those present at meetings by a subsequent (49th in a row) amendment to the Decree of the Governor of Novgorod oblast of March 6, 2020, no. 97, On the Introduction of a High Alert Regime 4 days before the start of the All-Russian Congress of Independent Municipal Deputies, which the authorities frowned upon (Zemsky Congress in Novgorod does not fit, Kommersant, May 22, 2021. https://www.kommersant.ru/doc/4818642. Accessed May 23, 2021).
- 8.
Federal Law of April 1, 2020, no. 98-FZ, On Amendments to Certain Legislative Acts of the Russian Federation on the Prevention and Elimination of Emergencies.
- 9.
For example, it was in the framework of 68-FZ (according to the preamble of the Decree of the Mayor of Moscow of March 5, 2020, no. 12-UM) that a universal self-isolation regime was introduced in Moscow from the end of March 2020, forbidding to leave one’s place of residence with a few exceptions for urgent reasons. By the morning of March 31, another 25 regions had introduced a self-isolation regime, and the day before, such a request had come from the federal level, the prime minister.
- 10.
With all the ambiguity, inconsistency, and lack of developed measures, which often led to organizational misunderstanding and excesses, especially regarding the rights of citizens (e.g., reduced fares on Moscow public transport were blocked on the social cards of schoolchildren, students, and those aged 65 or older).
- 11.
Decree of the Government of the Russian Federation of April 2, 2020, no. 417, On Approval of Rules of Conduct Mandatory for Citizens and Organizations, When a High Alert or Emergency Regime Is Introduced.
- 12.
At the beginning of April 2020, the Moscow mayor had an odd message, that it was wrong to pay everyone, because “the budgets have cracks” and even the healthcare system could not be provided for (https://www.rbc.ru/society/03/04/2020/5e874f352ae596dd7c9fe4ae (accessed March 23, 2021).
- 13.
Decree of the Government of the Russian Federation of May 21, 2007, no. 304 (as amended on December 20, 2019), On the Classification of Natural and Man-Made Emergencies.
- 14.
In the section, quantitative values are given according to official data presented on coronavirusstat.ru
- 15.
“An emergency situation is a situation in a certain territory that has developed as a result of an accident, a dangerous natural phenomenon, a catastrophe, spread of disease posing a danger to others, a natural or other disaster that may or has resulted in loss of life, damage to human health or the environment, significant material loss, and violation of people’s living conditions” (68-FZ as amended on April 1, 2020, Article 1).
- 16.
http://www.kremlin.ru/events/president/news/63061 (accessed March 23, 2021).
- 17.
http://prezident.org/tekst/stenogramma-obraschenija-putina-k-grazhdanam-rossii-02-04-2020.html (accessed March 23, 2021).
- 18.
Decree of the President of the Russian Federation of April 2, 2020, no. 239, On Measures to Ensure the Sanitary and Epidemiological Well-Being of the Population in the Territory of the Russian Federation in Relation to the Spread of New Coronavirus Infection (COVID-19).
- 19.
Conversely, in Germany, e.g., Angela Merkel stated that if the states do not take necessary restrictive measures, then they can be adopted by federal law (Merkel fordert härteren Kurs der Länder. https://www.tagesschau.de/inland/innenpolitik/merkel-annewill-corona-101.html (accessed March 28, 2021)).
- 20.
An enterprise whose products or services are important for the vital activity of a particular territory or functioning of a particular industry or socioeconomic system of a region.
- 21.
- 22.
According to Sobyanin at this meeting, “to close industrial plants, construction plants, construction industry, metalworking, and the production of building materials…would be improper.”
- 23.
The Governor of Moscow oblast also addressed this at the meeting.
- 24.
A significant problem that arises in analyzing tax revenues by branches of material production and transport is tax refunds complexly “smeared” throughout the year, primarily VAT and excise. As a result, the amount of actually collected taxes decreases, which significantly reduces the accuracy of assessing economic activity for a given period. However, data for the tertiary sector, with the exception of transport, are least affected by this drawback.
- 25.
The hours worked by the main personnel at medium and large enterprises are taken into account.
- 26.
SMEs include legal entities with no more than 250 employees and sole proprietorships officially registered and listed in the SME registry.
- 27.
For example, a prerequisite for subsidizing wages in April–May 2020 at the minimum wage level was to maintain 90% of the number of employed in March. Repeated provision of such support in October–November was discussed in the Federation Council Committee on Economic Policy.
- 28.
- 29.
- 30.
- 31.
- 32.
Decree of the President of the Russian Federation of March 25, 2020, no. 206, On Declaration of Nonworking Days in the Russian Federation; Decree of the President of the Russian Federation of April 2, 2020, no. 239, On Measures to Ensure the Sanitary and Epidemiological Well-being of the Population in the Russian Federation in Relation to the Spread of New Coronavirus Infection (COVID-19), and Decree of the President of the Russian Federation of April 28, 2020, no. 294, On the Extension of Measures to Ensure the Sanitary and Epidemiological Well-being of the Population in the Russian Federation in Relation to the Spread of New Coronavirus Infection (COVID-19).
- 33.
A generalized summary of federal support measures for 2020 and plans for 2021 is contained in the National Action Plan to Ensure the Restoration of Employment and Household Incomes, Economic Growth, and Long-Term Structural Changes in the Economy (approved by the Government of the Russian Federation on September 23, 2020, Protocol no. 36, section VII) (No. П13-60855 dated October 2, 2020).
- 34.
According to a special federal list approved by the RF Government Decree of April 3, 2020, no. 434, On Approval of the List of Sectors of the Russian Economy Most Affected by Exacerbation of the Situation as a Result of the Spreading of New Coronavirus Infection (with amendments and additions).
- 35.
“This will be a very sad year.” The demographer calculated the real mortality rates from coronavirus in Russia. https://www.fontanka.ru/2020/11/15/69547148/ (accessed January 16, 2021).
- 36.
Calculated by the author based on data from the Official Internet Resource for Informing the Population on the Coronavirus (COVID-19). https://stopkoronavirus.rf/information (accessed January 7, 2021). Hereinafter, we used data for the periods available at the time of the study.
- 37.
https://stopkoronavirus.rf/information (accessed January 7, 2021).
- 38.
Calculated by the author based on Rosstat data. https://rosstat.gov.ru/storage/mediabank/LmfEjEzy/edn10-2020.htm (accessed March 15, 2021).
- 39.
Calculated by the author based on: https://stopkoronavirus.rf/information (accessed January 7, 2021).
- 40.
Calculated by the author based on Information for Countering the COVID-19 Epidemic in St. Petersburg as of December 28, 2020, including the results of the 52nd week. https://www.gov.spb.ru/press/government/204362/ (accessed January 7, 2021).
- 41.
Petersburg stated the conditions for compulsory hospitalization of patients with coronavirus, Petersburg Journal, 2020, December 16. https://spbdnevnik.ru/news/2020-12-16/v-peterburge-nazvali-usloviya-dlya-obyazatelnoy-gospitalizatsii-bolnyh-koronavirusom (accessed December 20, 2020).
- 42.
The first case of coronavirus was recorded in St. Petersburg. https://www.rbc.ru/spb_sz/05/03/2020/5e60c5df9a79472cf2d08846 (accessed December 20, 2020).
- 43.
The WHO has announced the onset of the COVID-19 pandemic. https://www.euro.who.int/ru/health-topics/health-emergencies /coronavirus-COVID-19/news/news/2020/3/who-announces-COVID-19-outbreak-a-pandemic (accessed December 20, 2020).
- 44.
On Measures to Counter the Spread of New Coronavirus Infection (COVID-19) in St. Petersburg: Resolution of the Government of St. Petersburg, no. 121 of March 13, 2020. https://www.gov.spb.ru/law/d?nd=564437085 (accessed December 20, 2020).
- 45.
Hereinafter, budgetary reporting based on Federal Treasury data is used: Consolidated budget of the Russian Federation and budgets of state extra-budgetary funds. https://roskazna.gov.ru/ispolnenie-byudzhetov/konsolidirovannyj-byudzhet (accessed December 20, 2020).
- 46.
RUB 63.97 per dollar at the exchange rate of the Central Bank of the Russian Federation as of November 27, 2019; the amplitude of exchange rate fluctuations in 2020 was about 33% (from RUB 60.95 on January 14, 2020, to RUB 80.88 on March 24, 2020). As of December 31, 2020, the exchange rate was fixed at RUB 73.88 to the dollar.
- 47.
On the forecast of socioeconomic development of St. Petersburg for the period up to 2035: Resolution of the Government of St. Petersburg, no. 90, of February 14, 2017 (amended as of January 20, 2020). http://docs.cntd.ru/document/456043899 (accessed December 20, 2020).
- 48.
Ratio of Planned Expenditures as of January 1, 2021.
- 49.
On the Terms of Submission of Monthly and Quarterly Consolidated Budgetary and Financial Statements: Order of the St. Petersburg Finance Committee, no. 97-r of December 17, 2019. http://docs.cntd.ru/document/564066492 (accessed December 20, 2020).
- 50.
Letter of the St. Petersburg Finance Committee, ref. no. 03-39-27503/20-0-1 of December 11, 2020.
- 51.
Consolidated budget of the Russian Federation and budgets of state extra-budgetary funds. https://roskazna.gov.ru/ispolnenie-byudzhetov/konsolidirovannyj-byudzhet (accessed April 20, 2021).
- 52.
Local budget expenditures were approved based on a unified classification, from which, due to lack of authority, the items “National Defense,” “Healthcare,” and “Interbudgetary Transfers” were excluded.
- 53.
An initiative group of professors of the Russian Academy of Sciences Department of Social Sciences held a round table discussion on “Russian Society and Global Challenges.” http://www.ras.ru/news/shownews.aspx?id=e1fb719e-05ff-473f-9ac7-1adbd6afa99d#content (accessed March 23, 2021).
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Acknowledgments
The chapter was prepared under the state task of the Institute of Geography, Russian Academy of Sciences “Problems and Prospects of Russia’s Territorial Development under Conditions of Its Unevenness and Global Instability,” no. AA-A19-119022190170-1 (FMGE-2019-0008), by O. Glezer, E. Antonov, A. Sheludkov, and M. Zotova, and the state budgetary research topic of the Faculty of Geography, Moscow State University “Modern Dynamics and Factors of Socioeconomic Development of Regions and Cities of Russia and Countries of the Near Abroad,” no. 1.17, by S. Safronov.
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Glezer, O., Antonov, E., Safronov, S., Sheludkov, A., Strakhov, K., Zotova, M. (2022). The Role of Regional and Local Governance in Dealing with the Socioeconomic Consequences of the COVID-19 Pandemic in Russia. In: Nunes Silva, C. (eds) Local Government and the COVID-19 Pandemic. Local and Urban Governance. Springer, Cham. https://doi.org/10.1007/978-3-030-91112-6_21
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