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2 Order of the RF Ministry of Defense of 29 January 2007 No 33 On increasing the size of some types of money allowances of the military personnel of the Armed Forces of the Russian Federation and payments to the civilian personnel of the Armed Forces of the Russian Federation.


Table 1 demonstrates the size of money allowances as stated in official documents. However, some steps are currently being taken in order to increase their MAs1. But even in spite of these efforts, the future system of money allowances to the military still retains the principal flaw that characterized all its predecessors: a fundamentally different attitude to the rights and living standards of the people serving in the army under conscription and under contract2. At the same time, in Germany the size of the money allowance for a conscript is from 600 to 700 euro3, or 25.5 to 29.7 thousand rubles. In the US army4 a private, after having served for two years, will receive about 16 thousand USD per annum (or 40 thousand rubles per month), in addition to other payments which may be higher than the basic money allowance. After four years of service the salary will amount to approximately 25 thousand USD (or 62.5 thousand rubles per month), and after six years approximately 31 thousand USD (or 77,5 thousand rubles per month), which is more than the average salary of a civilian professional.

When comparing the sums required to cover the MA to be paid to officers, contractees and conscripts, it can be seen that the lions share of the expenditures allocated to the money allowances will go to officers (15 % of the total number of the army personnel). The upkeep of all the officer per annum will amount to 128 billion rubles (see Table 1), which constitutes almost 70 % of the sum required to cover the cost of all the money allowance of the whole army. And less than 2 % (or 3.billion rubles) of the total sum is allocated to all the RF Armed Forces conscripts, who constitute 70 % of the total number of the army personnel. That this principle to the distribution of money allowances in the RF Armed Forces Russia can actually be applied in the 21st century appears astonishing and we believe it to be entirely useless. In absence of any underlying ideology (that is, a cause that makes it worthwhile to suffer privations), fair distribution of money allowances between military personnel becomes of critical importance if we wish to improve the armys combat potential and to maintain it at a high level.

The clumsy attempts of the RF Ministry of Defense to increase the size of money allowances only for part of the military personnel, while keeping all the others at the former low level of endowment, is by no means conducive to making service in the army more attractive. According to Head of the General Staff N. Makarov, in 2010 out of a total of 150 thousand officers remaining in the army after the cuts in the number of military personnel made in 2009, the bonuses paid in under Order No 4005 will be received by approximately 52 thousand persons, or every third officer6.

Thus, for a second year in a row Order No 400 will be dividing military personnel into the rich and the poor. Order No 1157 has similar flaws, being conducive to arbitrary acts and irresponsibility of the officer corps. The conscience of the leaders of the staff and brigadiers can by no means always be relied upon8. Officers quarrel and file suits to courts of justice concerning fair distribution of money awards, while conscripts are deprived even of the right to demand a decent money allowance for themselves.

Besides, the structure of the presently existing MA system gives rise to some other questions. As stated by Minister of Defense A. Serdiukov, by now all the military units of the RF Armed Forces 1 Speaking at the round-table meeting held at the Higher School of Economics, Head of the Main Administration for Education of the RF AC A. Bashlakov said that today the money allowance of conscripts amounts on the average to 718 rubles. We also believe that such a sum cannot be attractive for young people, even if the food, and transport endowment is taken into consideration. (Bozheva O. Rodina-mat perestala zvat [The Motherland calls no more] // Moskovskii komsomolets. http://www.mk.ru/politics/article/2009/11/27/393005-rodinamat-perestala-zvat.html) 2 Trofimova E. O structure i pokazateliakh denezhnogo dovolstvia voennosluzhashchikh Vooruzhennykh sil RF [On the structure and effectiveness indices of the money allowances of the military personnel of the RF Armed Forces // Ekonomiko - politicheskaia situatsia v Rossii. [The economic and political situation in Russia]. 2009. No 9. . 8488.

3 Bozheva O. Rodina-mat perestala zvat [The Motherland calls no more] // Moskovskii komsomolets.. http:// www.mk.ru/politics/article/2009/11/27/393005-rodinamat-perestala-zvat.html 4 V pogone za rekrutami. [In pursuit of recruits] // Krasnaia zvezda [The Red Star]. 16 December 2008.

5 Order of the RF Ministry of Defense of 2 August 2008, No 400, On the payment of money awards to officers of the Armed Forces of the Russian Federation.

6 Poletaev V. Pravo pervogo udara. [The right of a first strike] // Rossiiskaia gazeta [The Russian Newspaper]. December 2009.

7 Order of the RF Ministry of Defense of 28 2009, No 115 On additional measures designed to increase the effectiveness of the use of the money allowance fund for the servicemen of the RF Armed Forces and the wage fund for the civilian personnel thereof.

8 Baranets V. Obshchak millionerov [Millioners money pool] // Komsomolskaya pravda. 20 January 2010.

RUSSIAN ECONOMY: TRENDS AND PERSPECTIVES have been transferred to the category of permanent readiness. At the same time, in accordance with Article 123 of The procedure for endowing the military personnel of the RF Armed Forces with money allowances, to the military personnel serving under contract in formations and military units of permanent readiness a monthly The bonus for the special conditions of combat training is due in the amount of 2,700 to 3,300 rubles, depending on a specific post. Does this mean than now all PNCO contractees will be receiving this bonus as the personnel of units of permanent readiness As for ensuring the necessary number of the personnel serving in the new-type RF Armed Forces, the prospects are by no means rosy. In addition to the 700 thousand of young able-bodies men of the conscription age needed by the RF Armed Forces, there also exist the needs of the other power structure. As estimated by the IET1, after 2009 it will become impossible to provide the army with this number of servicemen. And there are few possible solutions to this problem. The first one would be to decrease the size of the RF Armed Forces and to preserve conscription, that is, to enroll the maximum possible number of conscripts. No additional money will be required to support this solution. He second one would be to abolish conscription and to switch over to manning the RF Armed Forces only on a contractual basis. In this case, the overall number of NCOs and other ranks can indeed be decreased, because the combat potential of a contractee is significantly higher than that of a conscript who undergoes combat training only for one year. This solution will require some additional money but will totally eliminate all the corruption currently associated with conscription.

So, let us sum up our considerations:

1) Under the new remuneration system in the RF Armed Forces the size of the money allowance paid to the military personnel serving under conscription will remain pitiful, which will have negative effect on the attractiveness of military service in the eyes of the population. At the same time, while conscription is not abolished, all the components of the associated corruption allowing young people to avoid army service will remain in place (payments for fraudulent medical documentation, bribes to members of the conscription board, etc.);

2) An alternative to service under conscription may become service under contract as NCOs and other ranks. The money allowance for NCOs and other ranks serving under a contract, indicated in Table 1 can be considered adequate. According to our estimates, to ensure the payment of such allowances, nearly 55 billion rubles will be required, or about 28 % of the total sum of money needed by the RF Armed Forces;

3) By our estimations, after 2009 Russia may experience a shortage of young able-bodied men needed for the conscription in the army, the required number being 700 thousand persons. Thus means that the entire concept of a new image of the RF Armed Forces may appear doubtful given the requirements of the other troops, which must also be taken into account.

1 Tsymbal V. I., Trofimova E. V. Sotsialno-ekonomicheskaia znachimost peremen v voenno-kadrovoi politike Rossii. [The socioeconomic importants of changes in Russias policy with regard to military personnel ]// Rossia: tendentsii i perspektivy razvitia. [Russia: trends and outlooks of development.] A Yearbook. Issue. 4. P. II. P. 47 54.


STIMULATING OF INNOVATIONAL DEVELOPMENT IN THE CONTEXT OF ECONOMY MODERNIZATION I.Dezhina As a result of eight meetings of the Commission on Modernization and Technological Development new directions for innovative and interconnected scientific and technological policy were defined.

Among the priorities and measures suggested for stimulation and development of innovative activity the main stress is put on the intensification of research and development works in entrepreneurial sector by balancing the coercive and stimulating measures.

In 2009 the Commission on Modernization and Technological Development of Russian Economy was formed, the aims of which are the development of the state policy in the field of modernization and technological development, determination of the priority directions, forms and methods of the state regulation as well as coordination of the activity of executive bodies in this sphere. The issues of stimulation of innovations on the whole and financing of the research and development works in particular became the focus of its work, as can be concluded by the content of eight meetings, the latest of which took place in January 2010. The main problems discussed at the meetings of the Commission are represented in Table 1.

Table MAIN PROBLEMS DISCUSSED AT MEETINGS OF COMMISSION ON MODERNIZATION AND TECHNOLOGICAL DEVELOPMENT OF RUSSIAN ECONOMY Date and place of the meeting Main topic Declaration of five priority direction of technological de18.06.2009, Kaspersky Laboratory, Moscow velopment and criteria for their choice 22.07.2009, federal nuclear center AllRussian research institute of experimental Problems of development of nuclear energy industry physics, Sarov Problems of pharmacology industry and development of 31.08.2009, Vladimir oblast, Pokrov medical equipment. Discussion about creation of centers to provide for technological breakthrough 30.09.2009, Russian scientific center KurchaMeasures to increase energy efficiency of the economy tov institute, Moscow 28.10.2009, Scientific and technical associa- Projects in the sphere of telecommunication and space extion IRE-Polus, Fryazino, Moscow oblast ploration 25.11.2009, Lomonosov Moscow State Uni- Increase in efficiency of institutes of development for five versity, Moscow priority directions of technological breakthrough Possibilities for the state companies participation in the 25.12.2009, Gazprom, Moscow process of countrys economy 20.01.2010, Lipetsk Problems of technical regulation Source: http://www.kremlin.ru The following issues of the work of the Commission can be applied directly to the questions of science and innovative development: the choice of priority directions of technological breakthrough, the development of which is to be based on the fundamental and applied research in the corresponding fields of science; discussion of the issues of optimization of the work of the development institutions, as well as the state companies from the points of view of their more active involvement in innovative activity. The discussion of the instruments for stimulation of the demand for innovations, such as technical regulations, standards and certification became a separate topic.

RUSSIAN ECONOMY: TRENDS AND PERSPECTIVES At the first meeting of the Commission the President of the Russian Federation announced five directions for technological breakthrough and criteria for their choice1:

Energy efficiency and energy saving;

Nuclear technologies;

Space technologies, including the infrastructure for transfer all kinds of information;

Medical technologies, primarily diagnostic equipment and medicines;

Strategic information technologies, including the issues of creation of supercomputers and development of software.

The following was referred to as the criteria for selection of the technologies mentioned: significance of the existing state of art, possibility to get multiplying effect from the development of the technology, its connection with the needs of the state defense and provision of citizens security, social effect. Finally, an important criterion is the presence of the research results that are comparable with the world level, which are quite likely to become the basis for production that will be in demand at the markets of the near future2. Thus, the significance of the results of the scientific research as well as the existing state of art are among criteria for the selection of the direction of the technological breakthrough.

The new list of the priorities has something in common with the priorities of a number of the developed countries (the USA, the European Union). At the same time the current situation is a strange one, since at the moment in Russia there are in fact two lists of the state (federal priorities) (table 2). It should be noted that the mechanisms for the selection of the priority directions that were in effect before the declaration by the President in June 2009, are quite well-known, whereas who, how and why prepared the new choice of presidential priorities has not been clarified.

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