ISSN 2330-717X

Russia Can Recover Only If Moscow Addresses Problems Of Middle Class And The Poor – OpEd

By

Vladimir Putin and the Russian government have acted as if they can address the impact of the pandemic on the population adequately if they come up with new programs for the poorest strata of Russians. But in fact, the economic crisis is hitting the middle class hard, and the regime must develop programs to help it as well, Yaroslav Kuzminov says.

Up to now, the rector of Moscow’s Higher School of Economics says, the government has supported production and given some aid to the very poorest groups, but it has not supported members of the middle class with new programs who in many cases have lost their sources of income (rbc.ru/economics/04/05/2021/608ab3679a79476197153417).

That failure, Kuzminov says, hits the Russian economy and society in a double way. On the one hand, it means that many of those who had been solidly middle class only a year or two ago have now fallen into poverty. And on the other, their fall eliminates one of the most important bases for innovation and economic growth.

He warns that this trend is “explosive from the point of view of politics.” These may not yet be visible, but the impoverishment of the middle class is such an important and dangerous development that the powers that be must do something about it. If they don’t, there is no way Russia will be able to boost its growth rates in ways the Kremlin talks about.

Last September, Kuzminov says, HSE researchers concluded that “as a result of the coronavirus, 6.1 percent of the working middle class has shifted to the category of the poor because of the   loss of work and the reduction of incomes.” Researchers said that 8.7 percent of middle-class Russians had lost their jobs and the incomes those provided.

According to Rosstat figures for 2020 as a whole, he continues, “the level of poverty in Russia … amounts to 12.1 percent or 17.8 million people.” That official figure is the lowest since 2014, but the reality almost certainly is different. And the situation will only get worse unless the government adopts anti-crisis policies to address the needs of the middle class.

Click here to have Eurasia Review's newsletter delivered via RSS, as an email newsletter, via mobile or on your personal news page.

Paul Goble

Paul Goble is a longtime specialist on ethnic and religious questions in Eurasia. Most recently, he was director of research and publications at the Azerbaijan Diplomatic Academy. Earlier, he served as vice dean for the social sciences and humanities at Audentes University in Tallinn and a senior research associate at the EuroCollege of the University of Tartu in Estonia. He has served in various capacities in the U.S. State Department, the Central Intelligence Agency and the International Broadcasting Bureau as well as at the Voice of America and Radio Free Europe/Radio Liberty and at the Carnegie Endowment for International Peace. Mr. Goble maintains the Window on Eurasia blog and can be contacted directly at [email protected] .

Leave a Reply

Your email address will not be published. Required fields are marked *