Overview

The need for more effective local governance in rural areas of Russia is great. Rural poverty is deep and pervasive. The incidence of poverty in rural Russia is twice that of urban areas. The share of the poor living in rural areas has doubled since the mid 90s, and about 60% of the extreme poor are rural residents (source: 2006 update to the Russia Poverty Assessment, the World Bank). Rural poverty is compounded by disempowerment and lack of employment opportunities. With 27 % of the population (about 38 million people) living in rural areas, migration is not going to solve the problem, nor is it a desired solution as it may lead to the depopulation of vast territories and compound urban poverty and dislocation.

There are some successful examples of fostering local self-governance and mobilizing public and private resources for socio-economic development. The project drew on existing models developed by NGOs and international foundations at the district and village level and engaged their expertise and capacity to implement its components.

The project also capitalized on legislative and institutional changes that occurred at the same time as implementation began.  The 2003 Federal Law 131 On the General Organizational Principles of Local Self-Government in the Russian Federation has created an opening for demand-driven local development in rural spaces. In other words, the necessary legislative framework is in place to assist rural dwellers become greater involved in public life and local development.

Legislative Opportunities

As of January 2006, every settlement or group of settlements with a population above 1000 inhabitants has the right to become a formally independent, self-governing unit, complete with an elected head of administration, elected council, and formal budget with assigned sources of revenue and responsibilities. In 2006, there was a 44% increase from 2005 in the number of rural settlements. In total, there are just over 20,000 rural settlements today (over 50% of which are newly-formed according to the law). 

An important part of the legislation concerns greater public participation in decision making. The law demands that public hearings be held before the budget is adopted and that citizens monitor the use of public resources. Although these norms have been passed, no training or capacity building programs have been created nationally or sub-nationally to train local officials in their implementation.

Download Law 131 in Russian [pdf] and English [pdf]