Thursday, June 1, 2017
Russia's rail and road infrastructure.
As the world's largest country, Russia faces unique challenges in developing its transport infrastructure. Fiscal constraints since 2014-15 have prevented the necessary investment, and the continuing deterioration in connectivity between regions hampers economic activity and amplifies existing social problems.
- Investing in transit corridors should strengthen Russia's position in the global supply chain.
- The two-year delay to the Moscow-Kazan high-speed railway demonstrates the difficulties of qualitative improvements.
- Underdeveloped urban and inter-city transport systems impede labour mobility and productivity.
- Initiatives to transfer road maintenance costs to final users will meet with resistance against 'taxing' a public good.