Problems of poverty in Russia

The authors of the article consider the prerequisites and methods of combating poverty in modern Russia.

Keywords: poverty, GDP, society.

Introduction

The relevance of the topic is due to the fact that in modern Russia, the percentage of people who can relate to the middle class is decreasing every year. As a result of various problems, most of the population approaches the border of poverty, and most of the money is concentrated in a small circle of people, which gives reason for reflection, and the appearance of the coronavirus has only worsened the socio-economic situation in the country. Thus, the study of the reasons for such a strong stratification of Russia can contribute to the study of the topic and the promotion of measures to prevent such negative dynamics.

The relevance and degree of development of the problem determine the choice of the object, subject, goals and objectives of the work.

The object of the study is the phenomenon of poverty in modern Russia.

The subject of the study is the causes of poverty in Russia.

The aim of the work is to study the causes of poverty in modern Russia and to find ways to overcome it.

In accordance with this goal, the following tasks are solved in the work:

1. Describe poverty in Russia as a phenomenon;
2. Determine the reasons for the growth of the poverty rate in Russia;
3. Analyze the actions of the state that affect the economic situation in the country;
4. Identify the consequences of the unresolved problem of poverty;
5. Consider measures that can lead to a reduction in the level of poverty in Russia.

The theoretical and methodological basis of the study was the works of researchers in the field of studying the socio-economic aspects of modern Russia, as well as open Internet sources.

Article on the topic «Problems of poverty in Russia» consists of an introduction, the main part, the conclusion, as well as a list of references.

The phenomenon of poverty in modern Russia

In modern Russia, the problem of poverty has become the most relevant topic for discussion, which is in the focus of attention of state bodies. According to the Rosstat data indicated in the article, this aspect not only remains relevant, but also continues to worsen due to the lack of effective measures aimed at preventing the impoverishment of the Russian population, and the growth is observed both in the number and in the percentage ratio. Also, based on the study, it can be concluded that the number of people with an income below the subsistence minimum, according to statistics for 2016, is 19.8 million people, which is more than thirteen percent of the total population of Russia, this only confirms the thesis about the seriousness of the situation.

According to the definition of relative poverty by Eurostat, this category includes people who have an income that is less than 60 percent of the national average income, that is, the value below and above which the same number of citizens receive income. If we apply this standard to the study of the Russian population, then poverty in Russia in 2015 was significantly higher than the Rosstat research-about 25 percent.

Let's turn to the minimum wage indicators in Russia. The analysis shows that the minimum wage, despite the steady increase, which, at first glance, may indicate an improvement in life in the country, does not lead to an increase in purchasing power, it is also worth noting a significant gap between the minimum wage and the minimum wage. In 2018, this problem was considered by the Government, it was decided to eliminate the difference in indicators, but this decision led to the expenditure of significant funds from the budget, while there was a risk of rising prices and an increase in the number of entrepreneurs who switched to the shadow economy. These consequences can outweigh the positive effect that the decision of the Government of the Russian Federation could bring.

Reasons for the growing poverty of the Russian population

First of all, the continued increase in the number of poor people in Russia can lead to a pronounced conflict between classes, this is due to several reasons:

1. Trends in economic development from the 90s of the twentieth century to the present suggest that the upper class has become isolated from other social groups;
2. Poverty began to absorb those segments of the population that until recently were considered well-established representatives of the middle class and were sufficiently skilled workers;
3. The growth of the population whose income level is below the poverty line affects the stability of the Russian social structure as a whole and the ratio of different strata of society;
4. The problem of the growth of the population belonging to the lower class has begun to take on a hereditary character, and migration to other countries has become much more complicated.

So what were the main reasons for such a large-scale problem for Russia? Let's list some of the most striking factors:

1. The privatization of enterprises led to the fact that several percent of the Russian population became owners of former state-owned enterprises and, as a result, huge incomes. On the other hand, 60–65 percent of the population did not receive any economic benefits as support from the state and were at risk, leading to gradual impoverishment [1];
2. There was a sharp decline in the level of wages in the country, which is associated with a fall in its share of GDP, as well as a double reduction in the volume of GNP;
3. The price liberalization carried out by the state led to a decrease in the total income of citizens, and bank deposits were devalued by hyperinflation;
4. The percentage of unemployed among the working-age population may be much higher than the stated 5.7 % due to hidden unemployment;
5. The ever-widening income gap between the top ten percent of Russia's wealthiest and poorest families. If in 2007 it increased fourfold, then by 2018 this difference was already 30 times;
6. Uneven distribution of the inflationary burden among different population groups.

It is also worth noting that today Russia lags behind the leading Western countries in terms of income is about fifteen times, and in such important areas as education — more than 30 times.

A separate reason for discussion is that pensioners are included in the group of poor people. The formula derived in Russia for the share of retired people and their average age allow us to calculate the amount of pension replacement. Thus, this figure is 29–30 % and is 20 % lower than the norm established by the WTO. If we compare the current Russian pensions and the size of the subsistence minimum, we will find that the ratio of the first value to the second is 76.4 %, that is, significantly lower than the value that is necessary for a stable existence.

In my opinion, the following tools can be used to overcome the problem of poverty in modern Russia:

1. It is necessary to move to a more even distribution of income, which will lead to the consolidation of a fair level of wages for the majority of the population;
2. Toughening the fight against corruption in the country, as well as informing the citizens of Russia what benefits they will derive from paying taxes in good faith;
3. Introduction of a progressive scale of taxation, with tax exemption for persons with incomes below the subsistence level;
4. Increasing the availability of education to overcome the limitations of rationality.

Conclusion

Based on the above information, we can draw a conclusion about the relevance and complexity of the issue of population poverty in Russia. However, many studies suggest that at present the state does not pay enough attention to this problem, and the measures already taken are of a dual nature and cannot significantly reduce the number of poor people. In my opinion, the absence of decisive measures to increase the real incomes of the lower and middle class while limiting the enrichment of the upper class will inevitably lead to a catastrophe on a national scale. Thus, it is necessary to develop a set of consistent measures that can really help in overcoming the problem of poverty of the Russian population.

References:

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