Source Pravda.Ru

Russia's stability ranking falls

Russia's state stability shifted back downward in January, according to the Lehman Brothers Eurasia Group Stability Index (LEGSI) released this week. The rating dipped to 59, back into the Moderate Stability range, down from last month's high of 61. The Security and Economy components of stability, both of which shifted downward by four points, showed the most movement. The Government, Society, Security, and Economy components were 62, 66, 54, and 52, respectively. Russia's overall rating has fluctuated very little within a small band at the high end of the Moderate Stability range (40-60) over the past three years. December's score of 61 was the highest it has received since LEGSI data began being collected, in January 2000. The Eurasia Group report pointed to the slowing pace of structural reformЧnotably reform of the power sector, the gas sector, and the staggered introduction of jury trialsЧas the primary reason for the decline in the Economy score. "As with other reform areas, judicial reform is moving forward, but less quickly than had been hoped," the report said adding that these developments "called into question the pace of reform of the so-called natural monopolies," the Russia Journal wrote.

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