Northern Restructuring Project

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The Northern Restructuring Project for the Russian Federation aims to test a set of actions that will allow participating municipalities in the Russia North to realize the benefits of economic restructuring and facilitate the implementation of sustainable municipal policies; and thereby to assist the Government in developing a national strategy for restructuring the economy of the northern areas. These actions include: 1) voluntary out-migration assistance schemes for people whose economic prospects are limited; and 2) measures that will allow municipalities to realize potential economic benefits resulting from a decreased population. Beside a project management component, there are four main components: 1) The Migration Assistance Component facilitates the out-migration of specific groups of population in the participating regions. Allowances are given for housing and transport of household belongings and plane/train tickets. 2) The Local Restructuring Support Component provides technical assistance to help participating municipalities to reduce their dilapidated and unused housing stock, and implements reforms in housing and utility services management. 3) The Monitoring and Evaluation Component monitors the process, and evaluates the economic outcomes of restructuring, social aspects of out-migration, and the evaluation and dissemination of project outcomes. 4) The Federal Component helps introduce regulatory procedures aimed at gradually deregulating the Northern economy.