On the Strategy for Development of Moscow up to 2025

In May 2007, the Moscow City Administration approved the decree of the Moscow City Administration “On Strategy for Development of the City of Moscow up to 2025”. The aim of the Strategy is to gradually increase the welfare and improve the living standards and security of Muscovites on the basis of sustainable social and economic development of the city. The Strategy is designed as a plan of joint activities of the city community, business, and the executive power of Moscow required for fulfilling these long-term objectives.

This important and large-scale job is performed under the auspices of the Moscow City Administration. Based on the results of a tender, the government contract was awarded to the Institute of Economics of the Russian Academy of Sciences. Within a year after conclusion of the contract, in close cooperation with the Moscow City Administration, the developer will perform a detailed analysis of the prospects for the development of different branches of the city economy to determine the branches that will be further developed in the city and those that do not have perspectives for the for the future.

The Strategy is based on the concept of the four-tier development of Moscow, namely, as a city with its specific interests and problems, as the capital of Russia, as the center of Moscow agglomeration and interregional interactions, and as a world city. Moscow’s advantages and disadvantages and potential risks will be considered. The research will clearly show Moscow’s potential in different areas, including economic, intellectual, political, material, environmental, informational, scientific, personnel, administrative, social, and territorial aspects. Available human resources, competitiveness of the city economy, and many other related issues will be studied.

Consumption of electric energy and energy saving issues make a priority segment of the Strategy. According to the plan of the long-term development of power industry in the Moscow regions, which was developed by RAO United Energy System of Russia, the price of electricity will be gradually increasing to the European level; this will change the structure of one kilowatt-hour of electricity and create new pricing mechanisms. By 2011, the gas prices may be liberalized and pegged to average European rates so that the Moscow City Administration considers the option to switch to solid fuels including coal. However, combustion of coal negatively affects the environment; in Europe, the coal-burning plants are equipped with pollution control facilities. Coal provides 40 — 45% of the energy consumed in Europe and Moscow may employ this experience using cutting-edge technologies. The energy strategy of Moscow up to 2025 will be developed.

Development of small and medium businesses and, primarily those dealing with high-tech is a priority area in developing the strategy. The city administration is now conducting negotiations with major Western companies regarding establishment of technology parks.

Implementation of the Housing Code in Moscow including provision of social housing for low-income residents and capital renovation of dilapidated houses is an issue of no less importance.

The city’s transport infrastructure is constantly developing and the territories adjacent to Moscow are transforming in line with this development. In the future, new thoroughfares, a highway connecting Moscow and St. Petersburg, a northern bypass route around Odintsovo, the Don highway, and a highway to Noginsk will be constructed.

The program for the development of community transport will resolve the problems related to the throughput capacity of railways. By 2009, this indicator will more than double from 700 mln to 1,600 mln passengers a year. A new regime of train motion and significantly higher speeds will be needed to this end. The solution of the problem will also require an upgrade of the railway infrastructure, automation of the control of trains, and an increase in the amount of rolling stock.

According to the strategic development plan, a world financial center will be created in Russia; the Moscow infrastructure should match this goal. Russia intends to have financial and stock markets of its own. Since Moscow is Russia’s main trading site, the Russian capital will remain the financial center of the Russian Federation. By improving the regulatory framework and tax mechanisms that currently control activities on financial markets, Moscow comes closer to the status of a key link in the world financial system.

All stages of the Strategy will be widely discussed at the Council for the Strategic Development of Moscow under the Moscow Mayor. The Council comprises officials of the Moscow City Administration and representatives of universities, business, and the Moscow City Duma. The results of the Council’s activities will be discussed in the media and with Moscow residents at press conferences, seminars, and international events. After the development of the Strategy will have been completed, an international forum will be convened in Moscow to which mayors of major cities will be invited to share their experience and best practices.

In terms of international relations, Moscow is an emerging world capital. Owing to its nowadays state and status, Moscow needs to comply with the requirements for cities of this rank. Many world cities have developed a long-term plan of activities in the form of strategies extending up to 2020 or even 2030.

The main goal of the strategy is to ensure improvements in the living standards and security of Muscovites. Federal agencies should be involved in the development of the Strategy. Moscow is the capital of Russia and the development of the city should be integrated into national programs. The project, which costs about $ 3 mln, caused interest of the international community and attracted attanetion of investors to the city economy of the Russian capital.