СЭГ РБ / Практикум / Материалы к практическим занятиям по СЭГ РБ / СНГ 15 лет / 015-040

Transition to market relations in the CIS countries was accompanied by sharp narrowing of real sector of economy during the first four years: in 1992-1995 industrial output decreased every year on average by 14%, agricultural output -by 8%, cargo transportation by 25%. In 1996-2000 production in industry became stable and there was observed average annual growth by 1,8%, in agriculture average annual decrease of production by 1,2% continued, cargo transportation - by 4,3%.

After financial crisis which took place in August 1998 and narrowed the opportunities of imported production inflow on domestic market of the CIS countries, the positive tendencies in economy became more stronger. In 2001-2005 average annual growth rates of industrial output made up 6,8 % on average for the Commonwealth countries, agricultural output - 4,1%, cargo transportation - 5,6%.

Industrial output in 2005 in comparison with 1991 decreased by 16 % on average for the Commonwealth. The level of 1991 is exceeded in Uzbekistan (in 1,8 times), Belarus (in 1,5 times) practically achieved in Ukraine (99%). In Kazakhstan it amounts to 93%, Armenia – 85%, Russia and Tajikistan – respectively 74% and 73%, Moldova – 64%, Azerbaijan - 57%, Kyrgyzstan – 42%, Georgia – 36%.

For the last five years almost in all countries of the Commonwealth (except Kyrgyzstan) considerable growth of industrial output was observed: in Azerbaijan, Kazakhstan and Ukraine - in 1,6 times, Armenia, Belarus, Georgia and Uzbekistan - in 1,5, in Moldova and Tajikistan in 1,7, Russia - in 1,3 times.

Considerable changes occurred in the structure of industrial production for the past fifteen years. Practically in all countries the share of energy producing materials production and metallurgical production increased. The share of other branches of manufacturing industry (production of machinery and equipment, chemical production, processing of wood and articles of wood production, pulp and paper production, production of other non-metallic mineral products, textile and sewing production) decreased. The share of food products in Armenia, Georgia, Moldova, Russia, Tajikistan and Uzbekistan increased and reached the level of 1991; in Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan and Ukraine - decreased.

In 2005 the level of 1991 for production of the most important kinds of industrial output was exceeded by the Commonwealth countries. In particular, in Belarus rolled ferrous metals (finished), mineral fertilizers, TV-sets, refrigerators were produced more than in 1991, in Kyrgyzstan - electric energy, Russia - passengers cars, mineral fertilizers, TV-sets, in Ukraine - passengers cars. In Kazakhstan maximum volume of petroleum and gas production was achieved.

During the last years the stable growth of petroleum production was observed in Azerbaijan and Russia, lorries - in Belarus, Russia and Ukraine, cement - in all countries of the Commonwealth, refrigerators - in Russia, washing machines - in Kazakhstan and Russia, dairy products - in Azerbaijan, Armenia, Belarus, Kazakhstan and Russia, vegetable oil - in Belarus, Kazakhstan, Kyrgyzstan, Russia and Ukraine.

At the same time in 2005 in comparison with 1991 in all countries the volumes of coal production, production of metal cutting lathes, tractors, fabrics, footwear and meat considerably decreased. The output of chemical fibre and threads was stopped in Armenia, refrigerators - in Moldova, washing machines - in Armenia and Kyrgyzstan.

Transformations of types of ownership in the CIS countries, intensive allotment of land space to owners of personal subsidiary plots of households, gardens and kitchen-gardens resulted in change of the structure of agricultural producers in direction of individual sector extend. In 2005 personal plots of households and peasant (private) farms of Azerbaijan, Armenia, Georgia, Kyrgyzstan, and Tajikistan produced 85-97% of total volume of agricultural output, Belarus, Kazakhstan, Moldova, Russia and Ukraine - 40-76%.

However, low material and technical and financial resources supplies of agricultural producers, maintaining disparity in prices on industrial and agricultural output restrain the development of this economic sector. In 2005 in comparison with 1991 total area of arable lands decreased on average for the CIS countries by 14%, sowing area of cereals – by a quarter. Besides that, yield of cereals depends to a considerable extent upon agro-meteorological conditions. As a result of unfavourable weather conditions in 1995,1996, 1998-2000 output of grain made up from 92 to 119 million tons. For fifteen years population of cattle decreased by 56% of which cows – by 45%, pigs – by 59%, sheep and goats – by 57%. Considerable decrease of the number of cattle influenced the level of production of animal products. Production of cattle and poultry for slaughter (in slaughtering weight) made up during this time by 49% less, milk – by 34%, eggs – by 21%.

At the same time during the last years the tendency to improvement of situation in agriculture was marked in some countries. For the last five years sowing areas under cereals and leguminous crops increased by 2%.In 2005 in the Commonwealth countries there were threshed 148 million tons of grain, that is by 29% more that in 2000, sunflower seed – by 53%, production of potatoes was by 7% more, vegetables – by 27%,sugar beet – by 36%, fruit and berries – by 16% more.

In some countries the situation in cattle preserving somewhat improved. As of 1 January 2006 in comparison with 1 January 2001 the number of cattle increased in Azerbaijan, Armenia, Georgia, Kazakhstan, Kyrgyzstan and Tajikistan; pigs - in Belarus, Georgia, Kazakhstan and Moldova; sheep and goats - in Azerbaijan, Armenia, Georgia, Kazakhstan, Kyrgyzstan, Russia and Tajikistan. For the last five yeas production of meat increased by 9%, milk - by 5%, eggs - by 18% on average for the CIS countries.

In spite of the fact that since 2000 growth rates of capital investments began to outstrip the rates of production increase, their volume was not sufficient yet for considerable renovation of obsolete and worn out fixed assets the degree of wear and tear of which continues to increase. For fifteen years volume of investment in fixed capital decreased by 41% on average for the Commonwealth countries.

Production of fuel and energy resources, electroenergetics, transport ant communication remain the most priority directions of investment. Investment in metallurgical production became more active in Armenia, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Ukraine as well as in production of food products - in Belarus, Georgia, Kyrgyzstan, Moldova, Tajikistan and Ukraine. Investment in agriculture and the majority of manufacturing industry branches remains at low level in many CIS countries.

In the 90-ties functioning of transport was determined by economic situation of the Commonwealth countries. Considerable slowing down of the volume of cargo transportation was caused, from one hand, by production recession, from the other hand - optimization of transport flows, which was manifested in particular, in practically full exclusion of irrational and oncoming transportation. For the past five years growth of cargo flows caused by activization of production and external trade activities were observed in the Commonwealth countries. In 2005 in comparison with 2000 volume of cargo transportation by transport enterprises (excluding pipe-lines) on average for the CIS countries increased by 31%, in Azerbaijan, Armenia, Georgia, Kazakhstan and Tajikistan - in 1,5 - 2 times, Belarus, Moldova and Ukraine - by 27 - 44%, Kyrgyzstan and Russia - respectively by 6% and 16%.

Transportation of petroleum and petroleum products by main pipe-lines for five years on average for the Commonwealth increased by 38%, in Kazakhstan - 2,3 times, Russia - in 1,5 times, Belarus - by 18%; in Ukraine - decreased by 30%. Gas pumping over increased on average by 13%, in Azerbaijan - in 2,1 times, Belarus - in 1,5 times, Russia - by 11%, Ukraine - by 9%.

By the beginning of 2006 transport network of general use in the CIS countries made up more than 141 thousand kilometres of rail ways, 1,1 million kilometres of motor roads, 234 thousand kilometres of gas mains, 81 thousand kilometres of petroleum pipelines and petroleum products pipelines, 111 thousand kilometres of internal water ways.

New kinds of communication developed dynamically: radio communication with mobile units and data transmission by computer networks. By the beginning of 2006 in Armenia the number of connected subscriber's units of mobile connection made up 678,8 thousands and increased for five years in 39 times, in Belarus - respectively 4,1 millions and in 81 times, Kazakhstan - 5,4 millions and in 61 times, Moldova - 1,1 millions and in 10 times, Russia – 123,5 millions and in 37 times. High growth rates of mobile connection were resulted in many respects in decrease of tariffs for services and prices for mobile phones. Competition between operators forced them to offer more and more services and different tariff plans for users which allowed to widen sharply subscriber base and to pass to mass connection of population to mobile network.

Decrease in sales of goods in constant prices, which was characteristic of the first half of 90-ties was suspended in the Commonwealth countries in 1996. In the following period (1997-1999) retail turnover increased with different intensity and since 2000 practically everywhere its rather high annual growth rates in physical terms were established. As a whole for ten years (1996-2005) real volumes of turnover increased in Moldova, Russia and Tajikistan in 1,5-1,9 times, Kyrgyzstan, Uzbekistan, Ukraine - in 2,2-2,5 times, Azerbaijan, Armenia, Georgia - in 2,8 - 3,1 times, Kazakhstan - in 4,3 times, Belarus - in 5,1 times. In 2005 in many countries of the Commonwealth volumes of retail turnover in constant prices exceeded the level of 1991.

Development of retail turnover during the last years was in conditions of sustainable provision of consumer market with commodity resources. In some countries imported production predominated in their structure in other - domestic production. Thus, for instance, as of the beginning of 2005 in Armenia imported production (by estimate) made up approximately 60% in the volume of consumer goods intended for domestic consumption, and for poultry, animal and vegetable fats, sugar, bakery products - from 75% to 100%. In Tajikistan 65% fell on imports. In Belarus, Kyrgyzstan and Russia the resources of consumer goods, on the contrary, were formed by domestic output and amounted to 55-70%. At the same time in Belarus and Kyrgyzstan imported production of the CIS countries predominated (respectively 58% and 52%) and in Armenia and Russia - production of other countries of the world (more than 75%).

Before 1999 in all countries as a result of price growth for goods price factor noticeably influenced the development of retail turnover, opposite tendency was formed in the following years. Thus, in 2005 in Moldova price factor dominated in volume of value increase of turnover the share of which amounted to 72% and only 28% fell on increase of sales of goods in physical terms, in Uzbekistan – respectively 60% and 40%. In Georgia and Russia these ratios amounted approximately to 50% each. And in other countries from 55% to 92% of value growth of turnover were received by increase in sales of goods.

Currently in the conditions of full denationalization of trade in the CIS countries from 84% to 99,95% of retail turnover is forming by non-state sector.

Situation on the market of market services rendered to population at the beginning of the nineties was determined to a considerable extent by influence of high price and tariffs level and respectively - decrease of purchasing power and demand of population for their numerous kinds. Values of market services increased sharply in all countries and simultaneously their volumes decreased in 1995 in comparison with 1991 when they amounted to less than 30% on average for the Commonwealth countries.

The revival in the sphere of market services in 1996 in the majority of the CIS countries became the beginning of their growth in the following years. At the same time, the dynamics of market services growth for some countries noticeably differed.

During the last years active replacement of a part of free educational and medical services by paid ones takes place. If in 1990 in the Commonwealth countries the share of medical services made up 0,4-1,6%, at the beginning of 2005 - 1,2 - 4,8% of total volume of market services, educational services - respectively 0,4 - 2,4% and 3,5-11,7%.

The character of external trade relations with foreign states changed considerably. First years were unfavourable for external trade of many Commonwealth countries and were characterized by curtailing of trade relations, especially, between CIS countries, which before 1992 were very intensive. Then later the radical reorientation of external trade transactions of the CIS countries to the markets of other countries of the world occurred. It was as a result of conjunctural interests of trade on international markets in comparison with CIS markets and currency earnining to the countries. The share of mutual trade in 1995 made up 34% of total volume of export and import transactions of the Commonwealth countries in 2000 - 28% and in 2005 - 23%. In 2005 in comparison with 1995 value of mutual trade (in current prices) on average for the CIS states increased by 93% or on average for a year by 6,8%, of which exports - respectively by 97% or by 7%; imports - by 89% and 6,6% on average for a year. On the whole mutual trade of the CIS countries for this period increased and the highest growth rates were observed in 2000, 2003 and 2004.

For the indicated period increase in export and import transactions with the CIS countries was observed in all states: in Azerbaijan - in 4,6 times, Armenia - in 1,4, Belarus - in 2,7, Georgia - in 5,6, Kazakhstan - in 2,2, Kyrgyzstan - in 1,6, Moldova - in 1,4, Russia - in 1,8, Tajikistan - in 1,4 and Ukraine - in 1,6 times. Increase in value of mutual trade of the Commonwealth countries for this period occurred to a considerable extent as a result of average price growth. Growth of export prices in mutual trade and their approximation to world prices was the general conformity with a law and inevitable result of external trade liberalization.

In 2005 as in 1995 the greatest share in mutual trade was in Russia (in 1995 - 46% of total volume, in 2005 - 44%), in Ukraine (respectively - 28% and 24%), in Belarus (11% and 15%) and Kazakhstan (9% and 10%).

In 1996 -2005 total volume of exports on average for the Commonwealth states increased by 12,2% per year, which resulted in its growth in 3,1 times for these years; total volume of imports - respectively by 9,2% or in 2,4 times. During this period the highest growth rates of external trade turnover from 17,5% to 20,7% for a year were in Azerbaijan, Georgia and Kazakhstan from 10,6% to 12,2% - in Armenia, Belarus and Russia, from 3,7% to 9,4% - in Kyrgyzstan, Moldova, Tajikistan and Ukraine. The highest growth rates of total volume of export and import transactions were observed in the countries since 1999. The excess of total exports on average for the Commonwealth over imports was the sustainable tendency of the development of external trade, which secured active trade balance in the examined period. The level of cover of imports by exports in 1995 on average for the Commonwealth countries made up 138%, in 2000 - 208% and in 2005 - 175%.

In 1996 - 2005 total exports of the Commonwealth states to other countries of the world increased on average for a year in 3,6 times or by 13,7%, imports - in 2,8 times or by 10,8%. Priority orientation of the Commonwealth countries to the foreign market concerned mainly raw materials branches. For the countries having fuel and energy resources the most preferable are their supplies to other countries of the world. Thus, in 1995 the share of mineral products in total volume of exports of Azerbaijan to other countries of the world made up 56%, in 2005 - 91%, Belarus respectively 8% and 59%, Kazakhstan - 22% and 77%, Russia – 40% and 67%.

Since 1995 up to 2005 trade balance with other countries of the world on average for the Commonwealth remained positive.

Financial situation of the Commonwealth countries in the 90-ties was hard and unstable. State budget almost in all Commonwealth countries was executed, as a rule, with deficit. Inflation influenced negatively the real dynamics of profit of economic entities, many enterprises were unprofitable, scales of crediting of real sector of economy remained small and at the same time it was of short-term character. Domestic and external debt reached considerable amount.

Budgetary potential varied in respect of GDP from 14 % (Azerbaijan) up to 26-29 % (Belarus, Russia). The share of tax earnings in budget reached 70-91 % in total budget revenue.

Practically in all countries of the Commonwealth during 1994-2001 both receivable and payable accounts of economic entities increased continuously. The share of arrears in receivable accounts in 2000 varied from 8% (Armenia) to 40% and more (Russia, Belarus and Ukraine), in payable - from 18-20% (Armenia, Kazakhstan and Kyrgyzstan) to 45% (Belarus, Russia and Ukraine).

Financial market was formed in very unfavourable economic conditions. Russia was the first country, which organized the issue of securities (1991, still in the framework of USSR), in 1992 this process concerned Belarus, then in 1993-1996 - Tajikistan, Kazakhstan, Uzbekistan, Moldova, Armenia and Kyrgyzstan. State securities became the instrument of budget deficit financing. At the same time when the volumes of state securities increased, state debt increased too. Servicing of public debt became excessive and was the main reason of monetary crisis in Russia in 1998.

After monetary crisis of 1998 which struck first of all economy of Russia the governments of many countries of the CIS became more careful in their loans, the time of debt repayment increased and profitability decreased.

Since the end of 90-ties and the beginning of 2000-th there were positive tendencies of stabilization of financial situation of the CIS countries. Beginning from 1999 in Russia as well as in some other countries of the CIS state budget began to be executed with proficit.

For the past five years the share of tax earnings in revenue part of budgets of the CIS countries increased considerably. In 2005 the share varied from 73% in Ukraine to 95% in Kazakhstan. Budget expenditure for socio-cultural needs continued to grow in all countries of the Commonwealth. In 2005 in Kyrgyzstan and Moldova expenditure for education amounted to approximately a quarter of state budget, in Uzbekistan - about 30% and in Armenia, Belarus, Kazakhstan and Russia - 13-15%; for health care - in Ukraine and Moldova - 11-12% of budget, and in Azerbaijan, Armenia and Tajikistan - 5-7%.

In spite of the fact that in some CIS countries the share of money is cash (money aggregate M₀) in aggregate money supply (M₂) decreased, it continued to be high, in Azerbaijan and Armenia it made up to 70%, in Georgia and Kyrgyzstan - over 70% and in Belarus, Kazakhstan, Moldova, Russia and Ukraine its value varied from 24% to 42%. In economically developed countries the share of money in cash in aggregate money supply is considerably lower (from 4,8% in Australia and Netherlands to 10,5% in Italy).

Financial situation of many economic entities in real sector of economy continued to be unstable. In spite of the growth of nominal amount of profit, in 2005 the number of unprofitable enterprises increased in Azerbaijan, Kazakhstan, Moldova and Ukraine by 5-26%. However. it should be noted that in comparison with 2000 the share of unprofitable enterprises in total number of enterprises decreased almost in all countries of the Commonwealth.

For the past fifteen years in the Commonwealth countries the process of national monetary systems formation took place. In 1992 introduced into circulation were russian rouble and ukrainian carbovanets, in 1993 - armenian dram, belorussian rouble, georgian coupon, kazakh tenge, kyrgyz som, moldavian lei, turkmen manat and uzbek sum - coupon, in 1994 - azerbaijan manat and uzbek sum, in 1995 - georgian lari and tajik rouble, in 1996 - ukrainian grivna, in 2000 - tajik somoni, which were announced as single means of payment of a country.

During 1992-1999 the decline in exchange rates of national currencies against US dollar was the common tendency.

In August 1998 the great fall in exchange rate of russian rouble against US dollar (by 26,7% in comparison with the previous month) took place. As of the end of December in comparison with August 1998 the decline of exchange rate of russian rouble against US dollar made up 2,6 times. Financial crisis in Russia influenced the situation on currency markets practically of all countries of the Commonwealth.

During 1999 in some countries of the CIS the decline of exchange rates of national currencies against US dollar continued. In 2000 the situation on currency markets of the majority of the Commonwealth countries was rather stable but insignificant fluctuations of exchange rates of national currencies against US dollar and russian rouble were observed. During 2000 average exchange rate of russian rouble against US dollar at insignificant fluctuations practically remained at the level of 28,13 roubles per 1 US dollar.

In 2001-2005 the conjuncture of the currency market was stable and was not subjected to considerable changes.

State of environment and nature protective activities was determined mainly by common economic situation.

In the first half of the 90-ties in the majority of the Commonwealth countries the scales of use of natural resources decreased which resulted in some reduction of negative influence of production activities the environment. Common tendency of harmful exposure decrease to ecology was restrained by slow substitution of obsolete and worn out equipment, curtailment of nature protective construction, high level of emergency, which results in wide scale consequences for environment and human ecology.

Population of the Commonwealth of Independent States lives on the territory occupying 22 million square kilometres (approximately 1,6 part of land) and amounts to 279,5 million people (in 1991 - 281 millions) as of the beginning of 2006.

Change in the number of population is formed to a great extent under the influence of natural increase of population and its components - birth and death rates. Annual excess of level of birth over level of death resulted in growth of total number of population in Azerbaijan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. This fact caused also the increase of the number of persons of able-bodies age approximately by one third (conditionally aged of 15-64) in these states in comparison with 1991. In other Commonwealth countries since 90-ties the reduction of total number of population took place, at the same time the reduction of the number of able-bodies persons was observed in Georgia more than by 10%, in Moldova - approximately by 8% and Ukraine - approximately by 5% in comparison with 1991.

The characteristic feature of the majority of the Commonwealth countries is the growth of the share of persons of old ages and reduction of the share of children in total population. At the same time in all countries of the CIS noticeable improving of demographic structure of population, from the position of reproduction of population, occurred as a result of increase in the number of persons of fertile age (15-49 years) born in 1983-1987 (period of higher birth rate). This fact creates certain prerequisites for birth of the greater number of infants especially in conditions when the state policy will stimulate the birth rate. However a half of population still lives in the countries where even simple reproduction of population is not secured, i.e. the value of this indicator does not exceed the level of 2,1 births per one female and makes up: in Armenia - 1,38 (2004), Belarus - 1,21 (2005), Georgia - 1,44 (2004), Moldova - 1,22 (2005), Russia - 1,34 (2004), Ukraine - 1,19 (2003-2004). On average for the CIS countries the value of this indicator is estimated at 1,9 birth per one female (at the beginning of the 90-ties it made up 2,3 births).

The growth of birth rate observed in some countries during the last years as a result of high level of death rate could not greatly influence the change in natural increase of population and bring it nearer the level of the beginning of the 90-ties. High level of death rate is explained in many respects by aging of population, bad state of health, not high material living standards, ecological situation which became worse, growth of road-transport accidents and criminality.

For fifteen years on average for the CIS countries the number of grave and especially grave crimes against person (deliberate murders, cases of deliberate grave injuring, rapes) increased in 1,2 times, crimes against property (thefts, cases of robbery and swindle) - in 1,4 times, cases of bribery - in 3,7 times, crimes connected with narcotics - in 6,3 rimes, hooliganism - in 1,3 times.

During the last years in the Commonwealth countries the tendency to reduction of some kinds of crimes was outlined: crimes against person - in Azerbaijan, Armenia, Kyrgyzstan, Moldova, Tajikistan and Ukraine; crimes against property – in Azerbaijan, Armenia, Kyrgyzstan, Moldova, Tajikistan and Ukraine; crimes connected with narcotics - in Azerbaijan, Kazakhstan, Kyrgyzstan and Russia; hooliganism -in Armenia, Moldova and Ukraine.

For many years high level of morbidity with selected chronical and infectious diseases remains and as a result of this the number of persons newly registered as invalids increases in the majority of the CIS countries.

The impact of migration movements of population on change in its number and structure does not weaken. But if in the first half of the 90-ties they were to a great extent of ethnic character, then beginning from the second half of the 90-ties economic factors predominate.

More than 90% of total number of inmigrants arrived in all CIS countries to change their place of residence fall on Belarus, Kazakhstan, Russia and Ukraine. If Belarus and Russia for a long time were the single countries having positive balance of migration, in 2004 Kazakhstan joined them. The number of inmigrants in Kazakhstan exceeded the number of outmigrants by 2,8 thousand persons and for 2005 - respectively by 23 thousands. In 2005 Ukraine where migration growth made up 4,6 thousand persons, joined the states having positive balance of migration.

Negative balance of migration was formed in other countries of the Commonwealth during the last year. Emigration of population abroad continues. Germany, Israel and USA receive the main part of emigrants - more than 90%.

Persons of able-bodied age are subjected to a greater extent to migration, their share makes up 80%. The main part of all migrants includes persons who change residence within the limits of their country: 94-95% of migrants in Belarus, Russia and Ukraine; 90% - in Azerbaijan, 69-83% - in Kazakhstan, Kyrgyzstan, Tajikistan; 62% - in Armenia. Intrastate migration influences the structure of urban and rural population.

More than a half of population of Azerbaijan, Georgia and Kazakhstan and about 70% of population of Armenia, Belarus, Russia and Ukraine live in towns and settlements. In Moldova, Turkmenistan and Uzbekistan rural population predominates-almost 60% of its total number, in Kyrgyzstan and Tajikistan the share of rural population makes up 65-74%.

The share of females in total number of population makes up 54% in Russia and Ukraine, 53% - in Belarus, 52% - in Moldova, in other states - 50-51%.

The situation in the sphere of employment of population was formed under the direct influence of economic reforms and influenced considerably the course of socio-economic transformations in the CIS states.

For the past fifteen years new model of employment was practically created, it is based on somewhat different methods of use of labour potential. Commanding and administrative order in this sphere made the place for labour market, which became the main instrument of measuring labour force quality, its redundancy and deficiency, distribution between economic sectors, branches and regions.

In the first five years of the examined period the specific features of national labour markets in the Commonwealth were sharp reduction of labour force demand in state sector of economy, transference of its considerable share to private sector of economy and the sphere of informal activities, appearance of new forms of labour migration, growth of unemployment, increase of differentiation in labour remuneration.

The number of employees in state sector of economy in 1996 in comparison with 1990 decreased on average by the CIS countries by 54%; in 2000 as compared with 1995 - by 25%. This scale of employees release from state enterprises and organizations in this period of time was characteristic of all countries of the Commonwealth. In the following in years the process of labour force release from state sector began to weaken and in 2005 made up only 4% in comparison with 2000.

The number of employees in private sector of economy for fifteen years increased in Azerbaijan in 2,4 times, Armenia - in 2,6 times, Belarus - in 1,6 times, Kazakhstan - in 5,2 times, Kyrgyzstan - in 3,4 times, Moldova – in 1,4 times, Russia - in 3,3 times, Tajikistan - in 2,1 times.

The changes in the structure of employees by status in employment was characterized by decrease (in some countries - in times) of the number of employees which was predominated before perestroika and permanent growth of the number of self-employed (employers, own-account workers, members of production co-operatives, unpaid family workers).

In 2005 the share of self-employed persons in total number of employed population in Azerbaijan and Kyrgyzstan made up more than a half: in Armenia, Kazakhstan, Moldova and Tajikistan - from 40% to 50%, Ukraine - about 18%. The number of self-employed remains on low level, in Belarus - 6% and Russia - 7%. For comparison the share of such persons in USA, Norway and Swiss makes up - 7-10%, Austria, Great Britain, Germany and Finland - 12-14%, Canada, Japan - 15%, Poland - 27%, Mexico and Turkey - respectively 38% and 49%.

External labour migration have certain influence on the situation on labour market of the CIS countries. In conditions of unemployment it forms alternative form of employment and allows to provide with labour force vacancies being out of demand in receiving countries. According to special surveys among inmigrants and unemployed considerable part are youth, persons who could not find a job and other socially unstable sections of population which replenish criminal structures in unfavourable coincidence make up considerable share among inmigrants and unemployed.

Unemployment was officially recogmized in the Commonwealth countries in 1991 - 1992. Growth peak of registered unemployment in Belarus, Kazakhstan, Kyrgyzstan and Russia fell on the end of 1996; in Armenia, Moldova, Uzbekistan, Tajikistan and Ukraine - on the end of 1998-1999.

Total number of unemployed including those who were seeking the job individually not applying to employment services (in accordance with International Labour Organisation they are classified as unemployed) exceeds considerably the number of registered unemployed¹ and their share on average for the Commonwealth is estimated in 2005 at about 8% of economically active population. According to the returns of sample surveys in 2005 total number of unemployed in Kazakhstan made up 0,6 million people or 8% of the number of economically active population (in 2000 - 0,9 million people or 13%), in Moldova 104 thousand people or 7% (in 2000 - 140 thousand people or 8,5%), in Russia - 5,6 million people or 8%, (in 2000 - 7,5 million people or 9,5%), in Ukraine - 1,6 million people or 7% (in 2000 - 2,7 million people or 12%).

In 1990-2005 in connection with reduction of state sector of economy and broadening of rights of enterprises the sphere of direct influence of state on wages and salaries which resulted, first of all, in wage dynamics and increase of differentiation in labour remuneration.

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¹ Lower data on registered unemployment resulted in insufficient interest of unemployed citizens in receiving official unemployment status (small amount of benefits, delay of their payment for many months), as well as difficulties in registration and crossing of the register of unemployed citizens in some countries of the Commonwealth.

In the first five years of the examined period nominal wages and salaries increased annually in times and tens of times. In 1995 the growth of nominal wage in comparison with 1990 varied for the CIS countries from 335 times in Kyrgyzstan to 28 thousand times in Belarus. At the same time wages and salaries with adjustment for consumer price index decreased annually and in 1995 they made up from the level of 1990 in Azerbaijan - 14%, Armenia - 10%, Belarus - 56%, Kazakhstan - 30%, Moldova - 25%, Russia - 43%, Tajikistan - 6%, Ukraine - 35%. In 2000 in comparison with 1990 their level of varied for the CIS countries mainly within the limits of 20-43% and only in Tajikistan remained at extremely low level - 7%, and in Belarus, on the contrary - increased up to 95%.

In 1990 - 2005 (especially in the first years) established minimum of labour remuneration was used as the main regulator of wages and salaries in the conditions of inflation in the Commonwealth countries. In 1992 the frequency of revision of established minimum of wages and salaries varied for the CIS countries from 2 to 4 times, in 1993 - from 3 to 7 times. In 1996 - 2000 in the majority of the countries the minimum was revised 1-2 times during the year or remained at the level of the previous year. In 2005 the revision of established minimum of wages and salaries became more frequent again: from 2 to 4 times. And only in Kyrgyzstan minimum of labour remuneration established in January 1998 is being in force.

During fifteen years the intensification of the process of polarization of the Commonwealth countries took place. If in 1991 the difference in amounts of average monthly wages between the countries with its highest levels (Russia and Belarus) and the lowest levels (Georgia and Azerbaijan) made up on average two times, then in 2005 (in recalculation for conventional units) the difference between the countries with the highest levels of wages (Russia and Kazakhstan) and the lowest levels (Tajikistan and Kyrgyzstan) made up on average six times.

For the past five years branch differentiation of wage in the Commonwealth countries was characterised by its higher level in industry and construction than in agrarian sector, as well as in such branches as health care, education and social services. Beginning from 1991 the highest wage remains in the branch of financial and credit activities and insurance. In industry the workers engaged in production of energy producing materials were mostly highly paid. Persons engaged in manufacturing industry (especially in textile and sewing production, leather and articles thereof and footwear, in woodworking and production of wood articles) were paid considerably lower.

Delay in payment of accrued wages and salaries was one of the sharpest problems in the field of labour remuneration in the Commonwealth countries. In some countries accrued `arrears of wages exceeded monthly wage fund in 2-3 times in some periods. During the last five years of the examined period the tendency of arrears of wages reduction was observed.

During the first years of market relations formation practically in all countries of the Commonwealth the real disposable money income of population decreased sharply. Since the second half of 90-ties the decrease of real disposable money income of population stopped in the majority of the CIS countries and the tendency of their increase was shown (in comparison with very low base of 1995 year). In 2001-2005 the real disposable money income of population in Azerbaijan, Armenia and Russia increased in 1,7 times, Belarus – in 1,4, in Tajikistan - in 1,9 times.

With transition to multistructural economy the sources of money income of population broadened. Along with wage of employees, social transfers and money earnings from subsidiary plots of households the incomes of self -employed persons began to occupy considerable share in the households budgets.

According to the returns of household budget surveys in 2005 the share of wages and salaries in money income of household made up in Azerbaijan and Tajikistan – 30% and 26% respectively, in Armenia, Belarus, Moldova and Russia - 52-65%; the share of income of own – account workers (self-employed) - in Armenia, Belarus, Moldova and Russia - 3-11%, in Azerbaijan and Tajikistan -23% and 31% respectively; the share of pensions - in Belarus, Moldova and Ukraine - 20 - 25%, in Azerbaijan, Armenia and Kazakhstan - 10-14%, in Tajikistan - 3%.

To support the living standard of population the programme of social protection of population was developed. In some countries as a result consumer prices growth, the performing of indexation of wages, pensions, benefits, the rendering material support for poor section of population, the maintaining of state regulation of prices for selected socially important goods and services were on regular basis. The subsistence level was approved by legislative acts in Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia and Ukraine. The mechanisms of rendering address aid to poor sections of population, the average per capita income of whom is lower than the subsistence level (poverty line) were developed. During the last years in the majority of the Commonwealth countries the decrease of the share of population with income lower than the subsistence level (poverty line) was observed. In 2004 this share made up 16-18% in Belarus, Kazakhstan and Russia, in Ukraine - 27%, Kyrgyzstan - 43%, Georgia - 52%, Moldova - 72%.

As a result of minimum pension increase, compensation allowances payments and indexation of pensions in connection with consumer price growth as well as wage growth the average nominal amounts of designated pensions increased in all countries of the Commonwealth, but the amount of pension on average for the Commonwealth countries makes up only 1,8 thousand roubles per month (in Armenia, Georgia and Kyrgyzstan in 4-6 times lower than average value and in Tajikistan - in 12 times).

The share of pensioners in total number of population remains practically stable during the last years: a quarter of population of Belarus, Russia and Ukraine, the fifth part of inhabitants of Georgia, the sixth part - of Azerbaijan, Armenia, Kazakhstan and Moldova, 12% of population of Kyrgyzstan and 8 % - Tajikistan.

On average for the Commonwealth countries old age pensions are designated to – 75% of pensioners, disablement pensions - to 12 %, loss of bread winner pensions - to 8 %. Besides that, 4 % of pensioners receive social pensions which are provided to citizens on reaching pension age or disablement establishing in case when they have not needed length of service by different causes.

During the last years the growth of money income of population influenced positively the quality of nutrition of population, its caloricity: outlined was the tendency of transition from carbohydrate model of nutrition (high level of consumption of bakery products and potatoes) to increase of animal products consumption which are valuable by the content of protein (meat and meat products, milk and dairy products) as well as vegetables and fruits. In 2004 caloric content of twenty-four hours ration in Belarus, Russia and Ukraine exceeded the norm of minimum set of foodstuffs included into calculation of the amount of subsistence level by 9-38 %.

In 2000 years volumes of housing construction increased. For five years on average for the CIS countries their growth made up 148%, however in 2005 putting into operation of dwelling houses was still lower than the level of 1991 by 21 % on average for the CIS countries. The main part of dwelling stock was built by non-state investors funds. At the same time considerable share in financing of housing construction belongs to individuals. In Armenia, Kyrgyzstan and Tajikistan the share of total space of dwelling houses built by population in 2005 made up 80-93% of total dwellings put into operation, Azerbaijan, Moldova and Ukraine - 56-75%, Belarus, Kazakhstan and Russia - 37-50%.

Increase of housing construction, change of composition of families and order of their registration for obtaining state (municipal) dwelling resulted in reduction of the number of families registered to improve their living conditions.

The distribution of dwelling stock by types of ownership changed considerably. If at the end of the 90-ties somewhat more than one third of total dwelling space was in private ownership of population, then currently - from 77% in Russia to 97% in Kazakhstan.

Increase of the share of private sector in the structure of dwelling stock occurred both as a result of privatization of dwelling and individual construction and purchase of new apartments. In Armenia and Kazakhstan the transfer of apartments to ownership of population was completed mainly, in Kyrgyzstan 92% of apartments was privatized, in Ukraine - 84% and in Russia - 63% of apartments subject to privatization. Currently on average for the CIS countries 9 square metres falls on one inhabitant in Tajikistan, 13-18 - in Azerbaijan, Kazakhstan and Kyrgyzstan, 21 - 23 square metres - in Armenia, Belarus, Moldova, Russia and Ukraine.

According to the data of the last 2000 round population censuses the level of education of the Commonwealth countries is rather high. Out of thousand of population over 15 years of age 76 inhabitants of Tajikistan, 92 – of Turkmenistan, 105 - of Kyrgyzstan, 106 - of Azerbaijan, 111 –of Moldova, 126 – of Kazakhstan, 140 – of Belarus and Ukraine, 160 – of Russia, 170 – of Armenia, 224 – of Georgia have higher education. The share of person having secondary education (700-850 persons per thousand of population over 15 year of age) have secondary education. The level of literacy of adult population exeeds 99%.

Over 37 million pupils studied in day-tame general education schools of the Commonwealth countries as of the beginning of 2005/2006 academic year (as of the beginning of 1991/1992 - 43 millions). For this period the number of pupils in Kazakhstan decreased by 10%, Armenia, Belarus, Georgia, Russia and Ukraine - by 18-26%. In Azerbaijan the number of pupils increased by 15%, in Kyrgyzstan – by 18%, Tajikistan and Uzbekistan – by more than a quarter. The tendencies of birth rate influenced the change in the number of children of school age. It should be noted that the indicators characterizing the number of pupils, who receive secondary education, and computing in respect to the corresponding age group established for the given level of education, did not change considerably in comparison with 1991.

The network of gymnasium and lyceums widens. In 2005/2006 academic year in the CIS countries the number of pupils in gymnasiums and lyceums made up more than 2,9 million persons, that is more almost by 400 thousands than in 2000/2001 academic year.

As a whole in 2005/2006 academic year more than 4 million persons studied in secondary special education establishments of the CIS countries, over 11 millions - in higher education establishments. In comparison with 2000/2001 the number of pupils in secondary special education establishments increased more than by 0,4 million pupils, in higher education establishments - by 3,8 million students.

During some years in higher education establishments in the choice of future profession the leading specialities are lawyers and broad-scoped economists (finances and credit, accounting, analysis and audit) which are considered to be as advantageous and highly paid. Specialists of such types study mainly at paid departments of the state higher education establishments and at non-state (private) education establishments.

Статкомитет СНГ Statcommittee of the CIS

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