This issue continues the series of quarterly informationbulletins on RFNC-VNIIEF international cooperation and conditions for conversion,economic and social situation development in the city of Sarov.

Some sections of the present bulletin continue the topicof the first issue and the other sections being new expand the range ofthe problems considered in these materials.

The work has been done under the contract between theAnalytical Center for Non-proliferation at RFNC-VNIIEF and the U.S. Departmentof Energy under the auspices of the Nuclear Cities Initiative.

       InternationalCooperation of RFNC-VNIIEF

In the second quarter of 2000 RFNC-VNIIEF was visitedby 21 foreign delegations that included 101 persons.

In the second quarter of 2000 58 delegations from RFNC-VNIIEFundertook business trips abroad. 145 persons were the members of thosedelegations.
 
 

As of July 1, 2000 the number of inhabitantsin the city of Sarov was 85,345. As compared with the first half-year of1999, the number of inhabitants capable of working increased by 2.4% andmade up 52,878.
 
 

As compared with the first half-yearof 1999, the population distribution according to the age groups stillhad a tendency toward increase in the number of inhabitants capable ofworking and being of pension age and decrease in the number of childrenunder 15. The portion of the inhabitants capable of working increased from61% (1999) to 62% of the total population of Sarov. It is determined bythe following factors. The population migration was still increasing, andin the first half-year of 2000 467 persons moved to live in Sarov (in thefirst half-year of 1999 – 313 persons). Besides, the young people bornwhen the birth rate was two times as higher as at present joined this agegroup.

In the first half-year of 2000 thenumber of births in Sarov was 277, the number of deaths was 462. Thus,a natural decrease in the city population was 185 persons. As comparedwith the corresponding period of 1999, the number of born people reducedby 56 (16.8%) and the number of those who died increased by 8 persons (1.8%).A natural population decrease increased by 64 persons. For each thousandof the city inhabitants in the first six months of 2000 there were 3.2births and 5.4 deaths (in the first half-year of 1999 there were 3.9 birthsand 5.4 deaths, respectively). Due to the natural decrease the city populationreduced by 0.2%.

Of the total number of the deceasedmen comprised 58.3%, among them 40.5% of men were capable of working. Thesimilar figure for the women who deceased was 12.3%.

The analysis of death causes showsthat the main diseases that resulted in deaths were blood circulation systemdiseases. Oncological diseases and external causes (traumas, poisoning,murders, suicides) came next.

Migration processes produce an activeeffect upon increase in the city population. The number of people who movedto live in Sarov in the first half-year of 2000 was higher by more thana factor of three as compared with the number of those who left the city(196 persons left, 647 persons arrived). Therefore, the absolute increasein the city population number in the first half-year of 2000 was 282 personsor 0.3% of the total population of Sarov.

In the first half-year of 2000 thenumber of registered marriages made up 290 and the number of divorces was248.

96.4% families of the total numberof those that broke up had children. For 10 new marriages there were 8.5divorces.
 
 

The Employment department of Sarovthrough the Coordination employment assistance committee organizes implementationof the "Program of assisting employment of the population of the closedcity of Sarov in 2000". Some results of these activities are as follows.

• The average unemployment level registeredin the first half of 2000 was 1.8% (the planned year level was 2.0%).
• 807 citizens who applied to the Employmentdepartment were rendered help and placed in jobs in the first half of 2000(the planned year number was 1650).
• 276 new jobs were created and 1893 jobswere preserved (the planned year numbers were 550 and 3000 jobs, respectively)including 99 jobs that were created and 24 jobs that were preserved atthe expense of the employment fund (the planned year numbers were 200 and50 jobs, respectively).
• 119 persons took part in public work (theplanned year number was 250).
• 175 unemployed people were sent to theVocational Training Center of the Employment department for vocationaltraining (the planned year number was 300 persons).

To fulfill the program section called"Creation and preservation of jobs", RFNC-VNIIEF spent 113 million rubles(3.98 million dollars). This includes the funds of RFNC-VNIIEF (63.55 millionrubles), the means of a special fund of the Ministry for Atomic Energyof the Russian Federation (33.81 million rubles), the federal budget funds(8.14 million rubles), the investment zone funds (7.5 million rubles).

Among other contributors to this programsection implementation the following expenses should be mentioned:

• Avangard plant - 9.0 million rubles;
• investment zone fund - 17.1 million rubles;
• local budget - 0.95 million rubles;
• employment fund 1.7 million rubles.

The main part of vacancies come tothe Employment department from such branches of economy as civil engineering,public catering and trade.

The Employment department providesprofessional training for those citizens who are at the risk of being fired.They master the professions which are demanded at their enterprises.

In the reporting period 63 employeesfrom RFNC-VNIIEF liable to be displaced were sent to the Training centerof the Employment department for forestalling training. 24 of them havealready finished retraining courses in "automation of design planning"and "operation of personal computers" specialties. 39 employees proceedwith their training, 17 of them are mastering such specialties as "gas-fitter","maintenance and operation of gas equipment".

By decision of the city Coordinationemployment assistance committee, the financial aid was allocated from theemployment department on the competition basis. An application from anenterprise or a private businessman and a submitted business plan describingthe proposed project on creation of additional jobs were the grounds forparticipation in the competition.

In the first half-year of 2000 10,821thousand rubles (381 thousand dollars) were allocated for social needsfrom the Fund of social population support. As compared with the correspondingperiod of the last year, the expenditures for these purposes went up bya factor of 5.2 (in the first half-year of 1999 they made up 2090 thousandrubles), which is mainly explained by additional charges to pensions ofnon-working pensioners.

In the reporting period 189 veteransunderwent a course of medical treatment and rested in sanatoria, boarding-housesand preventive clinics of the city. Vouchers to the total sum of 362 thousandrubles (177 persons, 185 thousand rubles in the first half-year of 1999)were acquired for them. In the first half-year of 2000 401 persons usedthe services of permanent day establishments including 379 pensioners.33% of them rested and underwent a cure free of charge.

The center of social aid renders socialservices to aged and sick people at home. As of July 1, 2000 117 personsuse these services. In the first six months of this year the departmentof urgent social service rendered aid to 10,204 citizens (3870 of themare pensioners, 2728 are disabled persons, 3606 belong to other categories).In the reporting period 6924 persons (35% women, 25% men, 40% teenagers)applied to the urgent psychological aid department ("Telephone for confidentialconversations").
 
 

Below the values for exchange rateof Russian ruble to U.S. dollar in the second quarter of 2000 are givenbased on the exchange rate of the Central Bank of the Russian Federation.The exchange rate month-averaged values, as well as the maximum and minimumexchange rate values during each month are presented.

The average value of the ruble exchange rate inthe second quarter of 2000 was 28.38 rubles for one U.S. dollar, whichis 0.1% lower than that in the first quarter of 2000.

The average value of the exchange ratein the first half-year of 2000 was 28.4 rubles for one U.S. dollar, whichis 20% higher than that in the first half-year of 1999.
 
 

The average monthly wage in Sarov inthe first half-year of 2000 was 2694 rubles, which is 1028 rubles (or 61.7%)higher than the corresponding level of 1999. In accordance with the exchangerate established by the Central Bank of the Russian Federation, the dollarequivalent of the average wage in Sarov in the first half-year of 2000was 94.85 dollars as compared with 70.45 dollars in the first half-yearof 1999 (the rise is 34.7%).

From 16 branches given in the tableonly 5 have average monthly wages exceeding the average monthly wage levelin Sarov. The same situation was in the first half-year of 1999.

The monthly wages of employees at communicationsenterprises remain the lowest (1635 rubles).

The difference between the maximumand minimum average wages according to the branches has somewhat reduced.In the first half-year of 1999 the maximum average wages (in the sphereof banks and insurance) exceeded the average level by a factor of 1.93,while in the first half-year of 2000 they were 1.7 times as much. At thesame time, the minimum wages (at communications enterprises) in the firsthalf-year of 1999 made up 58.2% of the average level, while in the firsthalf-year of 2000 they made up 60.6%.

The real wages of employees calculatedwith regard for the rise in the index of consumer prices were 2264 rublesin the first half-year of 2000, which corresponds to 84% of the nominalaverage wages.
 
 

The retailing network of Sarov consistsof the enterprises having different property forms. The federal unitaryenterprise "Obespechenie RFNC-VNIIEF" ("Provision of RFNC-VNIIEF") is thecity’s largest trade enterprise. Currently, it has 12 stores including2 twenty-four-hour stores.

The joint-stock company "Gorodskayatorgovlya" ("City trade") is a large mixed property trade enterprise. Itconsists of 23 trade enterprises, 15 of them are permanent, 6 are temporaryand 2 are cafes. There are also 2 twenty-four-hour stores in the "Citytrade".

The street trade goes on developing.There are more than 200 small-retail trade points functioning in the city.

The analysis of the retail trade showsthat this branch of economy is developing in a stable way. There was nostoppage in sales of essential foodstuffs and nonfoods during the firsthalf-year of 2000. The product line has a steady tendency for expansion.

In the first half-year of 2000 The"City trade" underwent reorganization in the retail trade network structure.Four private stores became independent of this company. This was one ofthe reasons for the great increase in the turnover of private trade enterprises.

Analyzing the data on the retail turnover,it can be noted that the main portion of the total turnover volume is formedby the turnover of the federal unitary enterprise "Provision of RFNC-VNIIEF",which makes up 43.4%.

It can be seen that in the first half-yearof 2000 the turnover portion of foodstuffs in the total turnover increasedgreatly as compared with the first half-year of 1999.

The number of catering enterprisesin the city remained at the level of 1999 and their turnover in the firsthalf-year of 2000 was 58 million rubles.

To derive more detailed informationabout the consumer market conditions, additional counts on the latent turnoverand small enterprises having been not included in the statistic accountswere made. Based on the data of selective inspections, the retail turnoverof the city market trade was obtained.

Paid services in the city are renderedby 72 enterprises having different property forms. 22 of them render publicservices to the population. Besides, more than 180 individual businessmenrender paid services to the population including more than 160 individualbusinessmen rendering public services.

Reception and service rendering stationsare arranged at more than 100 city points.

As can be seen, these are mainly municipalenterprises that render services to the city population.

In the first half-year of 2000 thecity population was rendered services to the sum of 77.25 million rubles.The volume of services related to the volume of the corresponding lastyear period in the ruling prices was 165.2% and in the dollar equivalentit was 137.3%.

Housing and communal services havethe greatest portion in the total volume of services (43%).

The services (in thousands of rubles)are classified below according to the property forms of the enterprisesrendering services. The data on various public services rendered to thepopulation of Sarov are also presented.

It can be noted that municipal enterprisesrender the main portion of services (47.5%).

In the first half-year of 2000 thevolumes of the main types of rendered services were higher as comparedwith the corresponding period of the previous year. It can be explainedmainly by increased prices and tariffs.

Situation in Russia estimatedupon the average

The number of school children havingleft schools and entered higher educational institutions increased in theabsolute value from 254,684 persons in 1987 to 433,366 persons in 1999,that is it increased by a factor of 1.7. In terms of percentage to thenumber of school-graduates, it increased from 28.3% to 35.6%. At the sametime the number of those who entered higher educational institutions, buthad left schools in previous years reduced steadily from 92,527 in 1987to 57,127 in 1999, that is it decreased by a factor of 1.62. In terms ofpercentage (to the number of those who were admitted to higher educationalinstitutions), such students made up 25.2% in 1987 and 10.6% in 1999.

The portion of students having leftschools in the current year increased relative to those admitted to highereducational institutions from 69.4% in 1987 to ~ 80% in 1999.

The total number of persons admittedto higher educational institutions in 1999 was 539,129. Of this number227,610 persons entered higher educational institutions of Moscow and St.Petersburg, which made up 42.2%. 29.2% and 13% persons from the total numberof the admitted students entered higher educational institutions in Moscowand St. Petersburg, respectively.

Starting in the middle 90s, educationhas been playing an important role in spiritual life of young people. Thisfact is supported by the data of sociological investigations carried outin July and August of 1997 by the Scientific Research Institute attachedto the Institute of Young People and by the Center of Sociological Investigationsof Moscow State University. According to these data, the dominant aims(they are stimulated by the associated demands) are money, education, profession,business carrier and amusement. For many young people the values are drawnup in the following hierarchy:

• scientific carrier (the possibility forcarrying on scientific research, defense of theses, participation in scientificconferences);
• dwelling (if this problem is solved, theurgency of the third problem such as money will be mitigated);

• future opportunity for remuneration inmoney (guaranteed fixed wages as a fact of demand for a high-skilled youngspecialist, scientist);
• possibility for getting pleasure fromlife (tourist trips including travel abroad).

Below comparison characteristics ofthe persons admitted to colleges from Sarov and those in Russia on theaverage are given. The relative numbers of the school-graduates from Sarov(about 70%) and those in Russia as a whole (about 35%) show that the numberof college entrants from Sarov is two times as high per one secondary school–leaveras in the country as a whole.

The number of persons from Sarov whoentered colleges in Moscow and St. Petersburg in 1997-1999 was classifiedaccording to the specialty types and is as follows:

• 45%-50% entered technical and physics-mathematicsdepartments;
• 15%-20% entered economic departments;
• 15%-20% entered the humanities departments.

Before 1989 the average entrance percentagefor Sarov school-graduates was 30-35%, that is it was close to the averagecountry percentage. Starting in 1989 (the year when "Phystech-Tutor" wasset up), the average entrance percentage was increasing steadily. For afew years it kept at the level of 50-55% and in recent 5 years it was ashigh as 70%. Since 1994 "Phystech-Tutor" has been providing a purposefultraining of school-graduates for the mechanics and mathematics departmentof Moscow State University whereto 20-25 persons are admitted every year.Since 1995 "Phystech-Tutor" has been providing a purposeful training ofschool-graduates for the physics department of Moscow State University.Starting in 1996 "Phystech-Tutor" has been making purposeful efforts fortraining those who are going to enter N.I. Lobachevsky Nizhni NovgorodState University. Since that time no less than 25 persons from Sarov school-graduatesenter physics and mathematics departments of NNSU every year.

The work plan of the city educationboard for the first half-year of 2000 has been fulfilled completely.

In 1999-2000 school-year 16 schoolsproviding general education, secondary boarding school ?1providing general education, subsidiary boarding school ?9,the secondary evening (shift) school providing general education and additionaleducation institutions were parts of the city education board.

At the end of the school-year 11,992persons studied at all the schools providing general education. Based onthe school-year studies results, 141 persons or 1.2% were kept for a secondyear.

In 1999-2000 school-year 1375 personsfinished 9-year studies. Among the persons who had left schools after 11-yearstudies 23 were awarded gold medals and 36 were awarded silver medals.

Certification of teachers was arranged.From 247 persons having applied for certification 24 teachers were giventhe highest category, 104 were given the first category and 94 were giventhe second category.

The conditions necessary for rest andimproving health of school children were created: in the summer of 20002275 persons spent their holidays in school camps.
 
 

RFNC-VNIIEF scientists have developedunique technologies the considerable part of which is still to be applied.In recent years they have been making efforts in the interests of civilbranches of the national economy including those aimed at ensuring safetyof nuclear power reactors, fulfilling orders of the gas and oil industry,studying ecological problems, making models of medical equipment, alternativeenergy sources, computer facilities, microelectronics.

To solve all these problems, not onlyold principles and approaches to reproduction of the high-skilled personnelpotential should be preserved, but also new ones should be created sincethese are high-skilled specialists who are to determine the present andthe future of RFNC-VNIIEF.

In this case of great importance isthe fact that the most serious consideration both in RFNC-VNIIEF and inthe whole industry has been always given to the personnel policy. Duringmany years the system of selecting the most gifted graduating studentsof the best colleges in the country was the basis for providing personnelfor the industry. Besides, since 1952 a new system of professional trainingand retraining of specialists that was unique for those times started forming.The network of educational complexes that involved higher and secondaryspecial institutions forming an integrated system with Moscow EngineeringPhysics Institute (MIFI) was its basis. Thus, MIFI Departments appearedfor the first time in the closed cities. Though at first these collegesprovided evening education and training, they had been highly integratedwith the leading scientific and production organizations of the Ministryof middle machine building even since their advent. It was MIFI’s department?4 (MIFI-4)in Sarov. Now it is Sarov Physics and Technology Institute of MIFI (SarFTI).

Currently, SarFTI is training specialistsof secondary professional education (5 specialties), higher professionaleducation (13 specialties), supplementary education (post-graduate training,courses of retraining and raising the professional skill level).

The educational process involves:

• 154 teachers on the staff and teachersholding more than one office. About 30 of them are doctors of sciencesand professors and more than 70 are candidates of sciences and assistantprofessors;
• 380 are members of part-time staff, scientistsand specialists from RFNC-VNIIEF.

• secondary professional education - about300 students;
• higher professional education:
• day-time studies - about 850 students;
• evening-time studies - about 400 students;
• distant studies - about 470 students;
• second higher education - about 150 students;>
• post-graduate education:
• post-graduate training - about 100 personsa year;
• supplementary education:
• courses for training of school children– about 400 persons a year;
• courses for training and retraining ofspecialists - about 200 persons a year.

In the late 1980s the institute structurestarted changing. Some facts contributed into this process.

First, the flow of young specialistscoming to VNIIEF started to reduce. There appeared the threat of losingsome scientific and scientific-production directions in the continuoustechnological chain of VNIIEF developments.

Second, a class of radically new taskscame into existence. Cessation of nuclear weapon tests put a new challengingtask such as a change-over to a new stage in physical and mathematicalsimulation of nuclear weapon processes on the agenda. To solve this problem,not only computers of a new generation such as multiprocessor computers,but also mathematicians and physicists of a new generation were requiredwho could provide the simulation technology for the most complicated physicalprocesses. Nowadays these problems are highly topical, but too little timeis spent on their solution.

That is why in the late 1980s the administrationof RFNC-VNIIEF and SarFTI started taking active measures aimed at radicaltransforming of the entire professional education system in Sarov. Maximuminvolving of the scientific and technical potential of RFNC-VNIIEF in educationwas used as the basis for these measures.

The previously gained experience ofinteraction allowed SarFTI and RFNC-VNIIEF a unique scientific and educationaldepartment to be created at SarFTI in 1991. The leading scientists andsupervisors from SarFTI and RFNC-VNIIEF such as R.I. Ilkaev, Ye.A. Negin,I.D. Sofronov, V.N. Mokhov, the rector Yu.P. Shcherbak, the dean V.V. Shkarubskyinitiated the establishment and development of the physics faculty.

The physics faculty was set up to provideindividual training of the most gifted students so that they could workin the basic scientific-theoretical and experimental departments of thenuclear center.

The physics faculty is a scientificand educational complex having seven chairs as its parts. Each chair ofthe faculty represents a corresponding scientific school. Now more than300 students are studying at the faculty. More than 20 doctors of sciencesand 50 candidates of sciences from RFNC-VNIIEF have been involved in theeducational process. The famous scientists, doctors of physics and mathematicssuch as R.I. Ilkaev, I.D. Sofronov, V.N. Mokhov, G.A. Kirillov, S.A. Novikov,V.I. Karelin, A.I. Astaikin are at the head of the special faculty chairs.A greatly improved training level of specialists for RFNC-VNIIEF departmentsis the result of SarFTI and RFCN-VNIIF integration.

At the end of 1999 the industry facednew problems of both defense and conversion character. This made the personnelissue be put in the foreground again. Work with the specialists formingthe personnel elite who could draw young talented people in the industry,train them and thus bring up a worthy young generation was admitted asone of the most important tasks of Minatom.

Taking into account the increased scopeof tasks and areas related to training of specialists, SarFTI started toorganize the Educational and Scientific Center of Minatom (ESC of Minatom)in 1998. Besides conventional training areas for those who specializedin physics, mathematics, information science, a new direction such as mortgagecrediting of house-building was organized within the ESC of Minatom.

The Sarov model of mortgage house-buildingcrediting (the "Effect" system) has been recognized as one of the bestin the country. Now it is being implemented in 20 large regions of thecountry including the closed cities of Minatom. Physicists and mathematiciansof SarFTI and RFNC-VNIIEF have managed to solve a socially important problem.Scientific research in this field, development of curricula, courses, manualsis the sphere of activities of the chair of new technologies. A specialinternational scientific and educational center "Economics of regionaldevelopment" has been created in Sarov. Based on it, a great number (about140 persons in 1999 alone) of administration leaders and leaders of buildingcompanies almost from all the regions of Russia are being educated herefor the first time in Russia.

By now a complex of educational andscientific cycles related to subject matters of scientific research carriedon by the following SarFTI departments has been formed at the ESC of Minatom:

• the chair of applied mathematics;
• the chair of computation and informationengineering;
• the chair of experimental physics;
• the chair of quantum electronics;
• the chair of general physics;
• the chair of theoretical physics;
• the chair of theoretical and experimentalmechanics;
• the chair of general engineering;
• the chair of new financial technologies;
• the international scientific and educationalcenter.

• "ESC of Minatom", the scientific supervisoris the rector of SarFTI Yu.P. Shcherbak;
• "Regional ESC", the scientific supervisoris the head of the special department professor A.I. Astaikin;
• "Regional ESC", the scientific supervisoris the head of the special department professor S.A. Novikov.

All the projects of the Federal program"Integration" have been implemented successfully.

Within the framework of the Presidentialprogram supporting the leading scientific schools of Russia two leadingscientific schools of Russia have been working at SarFTI for four years:

• school of mathematics and numerical modeling;
• school of engineering and technology.

Besides, SarFTI won seven grants fromthe program "Russian Fund of Basic Research".

The subprogram "Creation of the scientificand educational center" was included in the purposeful Program of socialand economic development of Sarov in 1998-2000. This is a remarkable effectof SarFTI and RFNC-VNIIEF integration. The Program was worked out in accordancewith the decree of the Government of the Russian Federation "On approvalof the Federal comprehensive program for development of small and medium-sizedcities of the Russian Federation under economic reform conditions." Thedecree provided for making a separate subprogram in 1997-1998 "Developmentof small and medium-sized closed administrative territorial communities".

The program is aimed at preservingand developing the scientific-production and personnel potential of Sarov,at improving the level of higher education.

The objective of the subprogram "Creationof the scientific and educational center" is integration of science, educationand enterprising. By integrating the scientific and educational potentialof VNIIEF, SarFTI and other educational institutions of the city this Centeropens up fresh opportunities for development of higher education.

As a result of active joint activitiesin integration of higher education and the basic science having been financiallysupported both by RFNC-VNIIEF and by the federal program "Integration",more than 600 leading research workers and specialists from RFNC-VNIIEFhave joined in the educational process. A lot of physical facilities ofRFNC-VNIIEF are being used in the educational process. About 20 educationaland research laboratories have been created.

In the first half-year of 2000 86,201persons applied to the medical institutions of Sarov.

The greatest part of these visits wasconnected with respiratory apparatus diseases (32,372 persons), blood circulationsystem diseases (8610 persons), eye diseases (8254 persons), digestiveapparatus diseases (7331 persons).

In the first half-year about 10,000persons underwent a course of medical treatment in the city hospital.

According to the plan of the stateguarantees program, 29.33 million rubles were transferred from the Fundof compulsory medical insurance to the Medical and Sanitary Center-50.

According to the program of high-technologytypes of treatment, the transferred means made up 2.5 million rubles.

According to the program of givingfree medicines and medicines having reduced prices, 4.83 million rubleswere transferred from the city budget to the Medical and Sanitary Center-50.

The decision was taken in Sarov toorganize the nursing department. For this purpose it is planned to place20 beds on the first floor of the former maternity hospital. To organizethis department, 23.5 wage rates are necessary for the nursing staff thatwill work for twenty-four hours. The inpatient facility will cost 1082thousand rubles. 700 thousand rubles of them will be spent every year onthe staff wages. The stay in the inpatient hospital will be limited tothree months. Elderly people (aged 70-80) will be its patients. Beforeputting the basic building into operation, one of the functioning MSC-50units will be used for the nursing department.

On April 6 "The territorial programof the state guarantees for providing Sarov citizens with free medicalservice in 2000" was adopted by the City Duma.

The first section of the program specifiesthe list of medical care and service.

The second section of the program isdevoted to the territorial program of compulsory medical insurance (CMI).

The third section of the program specifiesthe list of the diseases and types of medical service rendered to the citizensat the expense of various budgets.

The fourth section of the program specifiesthe procedure of providing high-technology types of medical service whichis rendered to the population at the expense of the city budget and themeans of the compulsory medical insurance system.

The fifth section of the territorialprogram specifies the conditions for rendering medical and drug serviceto the population. In particular, it specifies that the time of waitingfor the surgery hours for the planned patients should be no more than threedays. The time of waiting for high-technology diagnostic research for suchpatients should be no more than 10 days. People who are to be hospitalizedshould wait for their turn during no more than 30 days.

The sixth section of the program specifiesthe types of medical care and conditions for rendering medical servicenot included into the territorial state guarantees program. The serviceof these types is rendered at the expense of other sources.

The seventh section of the programspecifies the norms for the scope and cost of medical care according tothe program.

The main elements of the territorialstate guarantees program for providing Sarov citizens with free medicalservice in 2000 are given below.

The territorial program is the measuretaken to provide social population protection in the field of health care.It ensures reasonable medical and drug service of the specified type, scopeand quality for all or specific categories of citizens. The program definesthe conditions for rendering medical service and the sources of its financing.

1. First aid and emergency medical care.
2. Outpatient polyclinic aid (prophylacticsincluding dispensary supervision, diagnostics of diseases, treatment ofpatients and their aftertreatment after discharging from the hospital).
3. Inpatient aid in case of acute diseasesand aggravation of chronic diseases, poisoning, burns and traumas requiringintensive therapy, twenty-four-hour medical supervision and sequestrationbased on epidemiological indications.
4. Medical service rendered inday patient facilities of all types according to order ? 438 of December9, 1999 issued by the Ministry of Public Health of the Russian Federation.

Treatment at the expense of the compulsorymedical insurance (CMI) system is received for the following types of diseases:

1. Infection, parasitic diseases.
2. Neoplasms.
3. Blood and blood formation organs.
4. Endocrine system diseases, nutritional,metabolic and immunity disorders.
5. Nervous system diseases.
6. Eye and eye apparatus diseases.
7. Ear, throat, nose diseases.
8. Blood circulation system diseases.
9. Respiratory apparatus diseases.
10. Digestive apparatus diseases.
11. Teeth and oral cavity diseases.
12. Skin and subdermal cellular tissue diseases.
13. Osteomuscular system and connective tissuediseases.
14. Urogenital system diseases.
15. Diseases of female genital organs.
16. Pregnancy, abortions, labor, postnatalperiod.
17. Newborn diseases.
18. Congenital anomalies (developmental defects),deformities and chromosome disorders of adults.
19. Traumas.
20. Burns.
21. Poisoning and other externally causedeffects.
22. Symptoms, signs, deviations from normsfound out during clinical and laboratory examination and not classifiedin other rubrics.

The city medical aid level is providedby the city medical institutions having appropriate agreements with theCMI system subjects.

The following medical institutionsof the region provide the types of clinical medical aid included in theCMI program within the framework of the State Guarantees Program:

1. N.A. Semashko Nizhni Novgorod regionalclinical hospital.
2. Nizhni Novgorod Scientific Research Instituteof traumatology and orthopedics.
3. Nizhni Novgorod specialized cardiosurgicalclinical hospital.
4. Nizhni Novgorod regional oncologic dispensary.
5. Nizhni Novgorod regional children¢s hospital.
6. Nizhni Novgorod regional diagnostic center.

Free medical service is rendered atthe expense of budget means if the following socially important diseasesare diagnosed:

1. Venereal diseases.
2. Tuberculosis.
3. Acquired immune deficiency syndrome.
4. Mental disorders.
5. Narcological diseases.
6. States of children in a perinatal period.
7. Congenital anomalies (developmental defects),deformities and chromosome disorders of children.
8. Emergency medical care for all the citizensof the Russian Federation who will apply to medical and prophylactic institutionsof the city.

The present Program guarantees freemedical service of high-technology types to the citizens of the city. Thelist of these service types is approved by the Ministry of Public Healthof the Russian Federation.

Medical service of the mentioned typesis financed both from the budgets of all levels and using the compulsorymedical insurance system funds.

In accordance with the "Program ofthe state guarantees for providing citizens of the Russian Federation withfree medical service" (it was approved by decree ¹ 1194 passed bythe RF Government on October 26, 1999), the norms for the scope of inpatientservice (in bed/days) rendered to the city citizens should be 2812.5 bed/daysper 1000 inhabitants including 1942.5 bed/days according to CMI program.In the city program for the year 2000 these figures are 3310 bed/days and2539 bed/days, respectively.

Based on the norms, the number of outpatientvisits should be 9198 and according to CMI program it should be 8458 per1000 inhabitants. In Sarov these figures are 9811 and 9375, respectively.
 
 

The comprehensive program of socialand economic development of Sarov in 1998-2000 was worked out in accordancewith decree ? 762"On approval of the Federal comprehensive program for development of smalland medium-size cities of the Russian Federation under economic reformconditions." The decree of the RF Government was passed on June 28, 1996.

This program objectives are to preserveand improve the scientific-production and personnel potential of the closedcity of Sarov, to increase the efficiency of its employment for ensuringthe defense and economic security of the country, to strengthen the resourceand financial basis and in the future to switch over to grant-free developmentof Sarov municipality.

The specific feature of the Programis its orientation not only towards meeting social and cultural needs ofthe population, but also towards solution of conversion problems of thecity-forming enterprises using the existing inner resources.

The comprehensive program of socialand economic development of Sarov in 1998-2000 includes the following areas:

1. Conversion of the city-forming enterprises.
2. Creation of the scientific and educationalcenter.
3. Development of innovation activities andenterprising.
4. Development of the social and everydayinfrastructure and improvement of conditions for the population activelife.
5. Development of life-support systems.
6. Preservation, restoration and use of buildingsand constructions of the monastery complex "Sarov hermitage".
7. Improvement of the physical protectionof the closed city.
8. Social protection of employees workingat the city-forming enterprises and the city population.

To determine the dollar ruble costequivalents, the average actual values of ruble exchange rates in 1998and 1999 were used. For the year 2000 the average exchange rate value forthe first-half-year equal to 28.4 rubles for one U.S. dollar was used thatwas almost constant in the first and second quarters of 2000.

In 1999 the average GTP value per capitain Sarov was 52.7 thousand rubles (2.14 thousand dollars according to theexchange rate). In 2000 the GTP ruble value is expected to increase bya factor of 1.3 and in dollar equivalent it is expected to be 1.13 timesas high.

Increase in the GTP ruble cost anddecrease in its dollar equivalent in 1998-1999 are first of all explainedby the financial crisis in August of 1998 that resulted in the rise ofprices and the change in the ruble exchange rate.

It is interesting to compare GTP characteristicsin Sarov with those in the neighboring areas such as Nizhni Novgorod regionand Mordovian Republic as well as with the total GTP characteristics allover the Russian Federation.

As of April 1, 2000 1641 enterprisesand 2564 private entrepreneurs were registered at the Sarov Inspectionof the Ministry for Taxes and Levies.

The main portion of enterprises-taxpayers of legal entities falls within the enterprises having a privateproperty form (80.9%). The main portion of tax payments (73.6%) falls withinthe enterprises having mixed and private property forms.

The general economic situation in thecity is governed by the fact that Sarov is a closed administrative territorialcommunity. According to article 58 of the law "On the Federal Budget forthe Year 2000" adopted on December 31, 1999, all the taxes and levies cometo the local budget.

The total amount of taxes and leviescollected in the first half-year of 2000 was 923.8 million rubles or 240.0%to the previous year level. The tax receipts from the enterprises registeredin the Investment Zone of Sarov (IZS) made up 410.8 million rubles or 44.5%of the total amount of tax receipts.

In the similar period of the previousyear the portion of payments made by the enterprises registered in theIZS was 44.7%.

The taxes collected in the local budgetmade up 802 million rubles and the taxes placed to the special Road fundaccount made up 121.8 million rubles.
 
 

In the first half-year of 2000 25.2%of the total amount of collected taxes came from the state and municipalenterprises.

In the first half-year of 2000 thelocal budget income was mainly formed by indirect taxes (value-added taxes)and revenue taxes (taxes on profits and income taxes).