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Rich-poor gap widening in Russia
Russia Journal ^ | November 03, 2004

Posted on 11/05/2004 2:22:58 PM PST by jb6

MOSCOW - According to the Federal Statistics Service of the Russian Federation, the gap between the rich and the poor has been widening in Russia over the past 6 months, the Novye Izvestia newspaper reported. This could lead to a rise in social tension, which concerns businessmen.

In the estimation of the Financial Ministry, cash incomes of the upper 10 percent of Russia’s rich men are almost 15.2 times higher than incomes of the bottom 10 percent of the country’s poor. This is above the threshold level beyond which social discontent grows (15 percent). It is alarming that social inequality grows every year. In 2001, the rich were 10 times as rich as the poor; in 2002, they were 13 times richer, and 2003 – 14 times. According to the Federal Statistics Service, the upper 10 percent of Russia’s rich account for 29.8 percent of the country’s total personal incomes, while the bottom 10 percent of the poor account for 2 percent.

According to the Federal Statistics Service, the percentage of incomes earned by the rich in Russia’s total personal incomes increased 0.2 percent, and the percentage of incomes earned by the poor dropped 0.1 percent. 13.6 percent of Russians live below the subsistence level.

UN experts offered their recommendations on how developing countries should fight against poverty. In their opinion, the development of the private sector in Russia will reduce poverty through job creation and wage increases. In view of this, the government should facilitate entry into the market, especially for small businesses, eradicate corruption and boost confidence of businesses in the government, the newspaper says.

But Russian analysts disagree. In their opinion, businesses are doing their best to eradicate poverty. The situation in Russia, they say, is different from the situation in other developing countries. There are four major groups of the poor in Russia: pensioners, public sector employees, rural residents and students – in other words, those who are financed from the budget. As for other developing countries, such people are not the poorest there.

According to the World Bank, 19.6 percent of Russia’s population is poor. The UN ranked Russia 57th in terms of living standards. Meanwhile, the Russian government expects real disposable personal incomes to increase 35-40 percent by 2007.

The Cabinet set itself the task of reducing the number of people living below the subsistence level by half over the next 3-4 years – from 30m people to 10-15m people. Government officials say Russia’s poverty rate dropped to 20.8 percent in the first half of 2004. In January-June 2003, the level of poverty was 23.5 percent. The number of those living below subsistence level, dropped from 33.7m people to 29.8m people.


TOPICS: Business/Economy; Foreign Affairs; Government; Miscellaneous; Russia
KEYWORDS: capitalism; poverty; russia; wealth
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1 posted on 11/05/2004 2:23:00 PM PST by jb6
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To: jb6

Moscow is really beautiful, but if you drive just a few miles out... You'll see dirt roads, beat up little houses, old ladies/children selling flowers by the road...


2 posted on 11/05/2004 2:26:17 PM PST by BrooklynGOP (www.logicandsanity.com)
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To: jb6

Damn, I didn't know Putin was a republican. I'll bet homelessness has risen too. Hunger now has a real presence too I'm sure.

Sorry, couldn't help it.


3 posted on 11/05/2004 2:27:18 PM PST by DoughtyOne (US socialist liberalism would be dead without the help of politicians who claim to be conservatives)
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To: jb6

Yup......Rich-poor gap widening in Russia
......Yup.....The rich are moving to the U.S.A......that's a gap!


4 posted on 11/05/2004 2:28:46 PM PST by maestro
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To: jb6

I personally would say that now there are more rich people than poor people than there were in Russia in 1986.
Also I would say that there are more people in Russia today.


5 posted on 11/05/2004 2:29:11 PM PST by rocksblues (No more Kerry, no more polls!)
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To: BrooklynGOP
Depends which way you drive, you can drive 15 km outside the belt way in Moscow and see the $250K houses for sale, with whole neighborhoods going up. And I'm not talking about the crap plywood construction we've got here.

Reality is: some people will always be poor: pensioners, well it's a pitty but most have their families to help them. Students, those are university students, they have careers ahead of them. Alcoholics and bums: well life's a bitch.

6 posted on 11/05/2004 2:29:49 PM PST by jb6 (Truth = Christ)
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To: rocksblues

Yup, that's something they are not harping about: the size of the growing and growing in wealth, middle class. Even the neutral newspapers get a bit left. It's like a virus.


7 posted on 11/05/2004 2:31:10 PM PST by jb6 (Truth = Christ)
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To: jb6

Gee I guess they need to bring back Stalin.


8 posted on 11/05/2004 2:32:50 PM PST by dfwgator (It's sad that the news media treats Michael Jackson better than our military.)
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To: jb6
It's like a virus.

And we must never waver in trying to find the cure.

9 posted on 11/05/2004 2:35:22 PM PST by rocksblues (No more Kerry, no more polls!)
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To: jb6; struwwelpeter
Yea, I've seen those gated mansions by Desna, but here's a photo I took in June, just outside of Moscow:

I am hoping those are dachas and not regular houses.

10 posted on 11/05/2004 2:39:08 PM PST by BrooklynGOP (www.logicandsanity.com)
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To: BrooklynGOP

Hehehe, that's not bad looking, come on down to NC, I'll take you around the Fayetville/Ft. Bragg area, the run down trailer parks with next door instant garbage dumps are coozy. Then we can cover the space between Fayetville south to Atlanta, one little crappola at a time. Of course there is alway Appalachia, now that's a whole nother set of issues.


11 posted on 11/05/2004 2:45:31 PM PST by jb6 (Truth = Christ)
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To: jb6

Rich poor gap is part of capitalism. Means they aren't stealing money from those with ambition to give to those who sit on their butts.


12 posted on 11/05/2004 2:49:55 PM PST by graycamel
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To: jb6

Obviously time to raise communism from the dead, in the Gulag all pigs were equal.


13 posted on 11/05/2004 2:51:32 PM PST by jwalsh07
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To: BrooklynGOP

"Moscow is really beautiful,..."

I guess you've never hung out around the Slavanskya Train Station. It's not very beautiful down there. And the Moscow river is digusting.

But to be fair, there are some pretty areas of Moscow and I have a thing for Russian women.


14 posted on 11/05/2004 3:33:01 PM PST by RatSlayer
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To: RatSlayer

Don't recall slavyanskaya... I wasn't too impressed by the market at Izmailovo.. But most of the city is very pretty.. Lot's of trees, unlike NYC.


15 posted on 11/05/2004 4:21:32 PM PST by BrooklynGOP (www.logicandsanity.com)
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To: RatSlayer; BrooklynGOP

Village life rulez ;-)

16 posted on 11/05/2004 6:39:49 PM PST by struwwelpeter
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To: struwwelpeter

You child molester! :P


17 posted on 11/05/2004 7:10:49 PM PST by BrooklynGOP (www.logicandsanity.com)
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To: jb6

It must have been so much better when there was no gap and everyone was just poor. 4 families to an apartment and breadlines, god, how they must log for those days.


18 posted on 11/05/2004 7:12:25 PM PST by riri
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To: BrooklynGOP

I was just waiting for my ride!

19 posted on 11/05/2004 7:49:09 PM PST by struwwelpeter
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To: rocksblues

Sorry, but you're wrong on your second point. Russia is undergoing severe population collapse. It's population could be halved within fifty years. Disease (including a massive AIDS infection rate), alcoholism and abortion are killing them off much quicker than replacement rate--average age at death for a Russian male is somewhere in the fifties. Russia is a demographic disaster in the making.


20 posted on 11/05/2004 10:01:03 PM PST by stiga bey
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