Future Prospects in St. Petersburg

St. Petersburg was founded as the capital of Russia and as a window on Europe. It fulfilled these functions for over 200 years, but during the communist period lost its political and international roles to Moscow. The new political situation in Russia has given mote autonomy to the city, which is consciously developing its historical role as a gateway between Russia and western Europe. To this end major investments in infrastructure are being made or planned. At the same time, however, industrial production, investment, real incomes and many social services have collapsed, and to most inhabitants of the city the economic reforms started in 1992 have meant only a lower standard of living and insecurity. The economic policy of the Russian government has certainly created new opportunities for many, but since poverty has increased dramatically social tensions are also mounting. There is as yet no sign in Russia of the economic turnaround that has already occurred in some transition