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Friday, October 28, 2016

“New poor” in Russia were a time bomb

“All happy families resemble one another, each unhappy family is unhappy in its own way”. This is the first phrase of the great world classic novel by Leo Tolstoy “Anna Karenina”. It is relevant to this day. But in the current Russian realities it is possible to reinterpret in a modern way: “the Crisis — is exactly the kind of unhappiness that everyone feels differently.

photo: Natalia Gubernatorova

In Russia since the crisis started nearly 5 million new poor people. This was stated on the eve of the last meeting of the Presidium of the Economic Council under the President assistant to the President Andrey Belousov. “The number of citizens with incomes below the poverty level is 13%. Before the crisis was 10%,” — said Putin aide.

Indeed, on the one hand, in may the Ministry of economic development (Andrei Belousov, as you know, recently led) has warned that the growing number of poor will rise from 13.1% in 2015 to 13.7% by the end of 2017.

A peak of 13.9 percent — the poverty rate will reach in 2018. The real incomes of our fellow citizens, in the expectations of the Ministry Alexei Ulyukayev, can return to the level of 2015 only in 2019.

Let me remind you: the cost of living in March 2016 is set at 10,187 thousand rubles per month for able-bodied population. It’s a penny. However, as acknowledged by high-ranking officials, in Russia there were 5 million new poor.

On the other hand, the crisis did not prevent in 2015 to increase the profits of Russian companies 50.2%.

This is the face of today’s Russian crisis. In the crisis of 2009, our reserve funds were full, and then managed to retouch the social consequences of the crisis. Today the reserves are depleted. And here it is, the crisis is unvarnished, beating first at the weakest.

This is the challenge facing the state. It was his responsibility to protect those who himself can not protect. Characteristically, all the calls to curb the income gap between the upper and lower level at least in the public sector are damped each time to no avail, but officials are already publicly stating that it is necessary to deprive of pensions those who, in their opinion, had to provide for themselves in old age.

On the one hand, social support, and it is possible to equate pensions, should be targeted. On the other — when the state withdraws from its obligations, which seemed to be immutable, it responds with distrust of the state. A bomb that could explode. Besides, it will be interesting to reread those pension exclusion, which officials will leave for yourself, loved ones and not the poor.

A crisis is a test which must pass not only the economy, but the government. Back to his portrait. Where did half the profits of companies in a crisis? Primarily from exports and not just commodity. The ruble has fallen made a bargain everything that is exported, and there is the competitiveness of the whole Russian has grown — simply because it was cheaper. But in parallel with the net profit falling investment. Why? This is again a question for the government.

First, because the business climate is improved only on the reports. In fact, if you believe the business community, entrepreneurs before the trial began to be planted more often. Them, as once declared Vladimir Putin, law enforcement is still happy to put, pressed, taking away from their business, and then making your “business”, you can throw away to freedom. The latter, however, is not necessary. This is common practice. It can break only the power of an independent court, which is not. And it is also the responsibility of the state.

Secondly, because the state itself does not implement major and need the economy investment projects.

Only no need to cannibalize. It is necessary that profit has become a investment. Moreover, in Russian.

The state must fulfill its constitutional duty. First and foremost, to remember the human dimension of the crisis.

Otherwise, based on the statistics, almost 7 million “new poor” will appear in Russia every day.

Rising prices and a falling ruble. Chronicle of events

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