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1998

1999

2000

Consumer Price Index – TOTAL

202.5

134.5

117.5

Including:

Foodstuffs

206.8

133.1

115.3

Other than food stuffs

216.8

127.4

115.0

Manufacturing Industries PriceIndex

153.4

151.9

127.7

Sold Farm Products ManufacturersPrice Index

123.7

209.7

110.9

Cargo Transportation TariffsIndex

147.8

125.2

247.2

The average number of those employed in theeconomy of Kaliningrad Oblast fell from 435,300 people in 1990 down to401,100in 2000 (Table10).

The total number of those qualifying as theunemployed under the International Labor Organization standards was 75,600people, while the number of those officially registered with the employmentagency was 6,600. The level of statistically controllable unemployment came to1.4%, or 1.2 times higher than in 1992. At the same time, over the last fouryears the registered unemployment levels have been decreasing, with the peak of5.1% reached in 1995.

Table 10

Basic Employment and UnemploymentIndicators (thousand people)

1998

1999

2000

Total ofEconomically Active Population, thous. People

480.9

476.6

476.7

Including:




Employed

399.6

401.1

401.1

Unemployed

81.3

75.5

75.6

Officiallyregistered unemployed

13.4

7.1

6.6

GeneralUnemployment Level, %

16.9

15.8

15.9

RegisteredUnemployment Level, %

2.8

1.5

1.4

As regards the level of development of smallbusinesses, Kaliningrad Oblast is one the leading regions in Russia, surpassedonly by Moscow and St.-Petersburg (see Table 11).

Table 11

Main Small Business Development Indicatorsin Kaliningrad Oblast and Russian Federation as a whole in 1999

KaliningradOblast

Russian Federation

Number ofregistered small businesses per 10,000 people as of 1 January, 2000

103.3

61

Share of activepopulation employed in small businesses, without secondary employment,%

18.7

12.8

As of 1 January, 2000 the population ofsmall businesses (SE’s) registered in Kaliningrad Oblast was 9,800, of which 60% weretrading companies. This figure is substantially higher than the share ofSE’s inRussia’s economy as awhole. As few as 17% of SE’s operate in the manufacturing sector, while a mere 13% is engagedin the construction business. All this has to do with the specific environmentof the SEZ operating in the region.

Table 12reflects households' living standards in KaliningradOblast.

The ongoing decline in real incomes in thehands of elderly people remains a serious source of concern. Separation fromfamily members living in the main territory of Russia forces senior citizens torely fully on the welfare system provided by the state.

Table 12

Households’ Incomes


1998

1999

2000

Per capita monthly cashincome, RUR

708.6

1063

1670.4

Real cash incomes, % ofpreceding year

89

82

128

Average nominal monthlysalary accrued, RUR

834,7

1 241,6

1985,2

Real monthly salaryaccrued, % of preceding year

86

81

112

Average nominal monthlypensions, RUR

377.5

487.9

416

Real monthly pensions,% of preceding year

55

96

Minimum of subsistence,RUR

428.7

783.9

919.3

Chart 4

The demographic situation in Kaliningradoblast has been characterized by a higher death rate and irregular birth ratelately, with the resulting replacement level going up and reaching as many as6,100 people in 2000 (Table13). The death rate in working age remains veryhigh.

A high immigration induced increment inpopulation is characteristic of the demographic situation in KaliningradOblast. The ratio of immigration induced population growth was a mere3.8people per 1,000 of population in 1999 (the RF average was 1.1), whereas in2000 the ratio grew 39.5%. The peak of immigration induced population growthfell on 1994 with as many as 20 people per 1,000 of population.

Table 13

Basic Demographic Indicators


1998

1999

2000

Resident population (asof year end), thous. people

951.3

948.5

946.7

Born, thous. people

7.6

8.4

7.9

Deceased, thous.people

12.6

15.7

14

Natural populationgrowth, thous. people

-5

-7.3

-6.1

Natural populationgrowth rate, people per 1,000

-5.3

-6.8

-7.3

Immigration inducedpopulation growth rate, people per 1,000

13.7

3.8

5.3

Kaliningrad oblast holds the 45th position among the other regions ofthe Russian Federation with49.5% of children covered by pre-school institutions, and the 66th position in terms of provision of childrenwith seats in those institutions.

The number of physicians per 10,000inhabitants dropped from 37.7 doctors in 1992 down to 34 in 1999 (57th place in Russia), the paramedic stafffell from 109.1 down to 101.1 specialist per 10,000 inhabitants, leavingKaliningrad oblast with the 69th position, thenumber of hospital bed decreased from 135.9 to 119.9, or the 45th position in Russia.

Disease incidence figures in KaliningradOblast are way in excess of those in Russia on the average and in neighboringcountries, Lithuania and Poland, across a wide range of diseases. Incidence of Tuberculosishas been on the rise, with the region’sstatistics exceeding the RF average and amounting to 91.5 people per 100,000 of population;infantile disease incidenceis registered at the level of 69.6 children per 100,000. HIV-infection hasreached epidemic proportions in the region. Cancer cases are on the rise, too. Drug addicts are alsogrowing in number. Allthese factors make I necessary to improve the health care system from the material and logistical point of view.

Per capita share of public expenditures,reckoning in the cost of living, is still lower than the RF average. Also belowaverage figures are the shares of public expenditures spent on education, culture andarts, health care and physical training, mass media, social policy, and also the housingsector. The per capita share of capital investments in the region hardly reaches26% of Russia’saverage.

Table 14

Regional Consolidated Budget of KaliningradOblast:
Revenues and Expenditures (M,RUR)

1998

1999

2000

Own revenues

658.9

936.1

1373

Shared revenues

720.7

1310.9

1910.4

Including:

Corporate Profits Tax

234.9

626.8

817.6

Personal Income Tax

322.6

421.2

644.2

VAT

140.3

194.0

258.1

Excise taxes

22.9

68.9

190.5

Government-to-government transfers(under fiscal federalism arrangements)

164.8

284.7

532.2

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