Tuesday, May 7, 2019

What is Unique about Russian Poor is the Government’s Neglect of Them, Inozemtsev Says


Paul Goble

            Staunton, May 6 – Russia is far from unique in having a large number of poor people, Vladislav Inozemtsev says. In modern societies, those without higher educations have been falling behind those who have gone to university. But it is unique in that its government in contrast to others neglects the poor and doesn’t work to compensate for the actions of the market.

            In a Gazeta commentary, the Moscow economist says that the share of people in Russia living in poverty is not radically different than the share doing so in other countries, although the standard of living of poor in Russia is much lower than that in the United States or France, for example (gazeta.ru/column/vladislav_inozemcev/12326545.shtml).

            But what sets Russia apart, Inozemtsev continues, is that Western governments provide various forms of tax relief and subsidies to the poor to help them cope with their situation while the Russian government shows “a surprising neglect of the needs of its least well-off citizens.” As a result, they suffer far more than would otherwise be the case. 

            Washington spends more on SNAP (what used to be called “food stamps”) to help the poorest Americans than Russia spends on defense, and it provides even more assistance via Medicare and Medicaid to the elderly who often fall into poverty because of medical needs and the poor more generally. 

            Russia has only three percent fewer pensioners than does the US – 46.5 million compared to 47.8 million, despite its population being less than half as large – provides only four percent as much assistance to the elderly than does the United States government, the Russian economist continues.

            Western government spending on the poor is “a unique form of the payment by society for social peace and stability” as well as “a most important means of supporting public solidarity and banal humanism.” It is even profitable for society and the state because it boosts the purchasing power of the population and promotes medical and other innovations.

            “Russian poverty is distinguished from its American and European counterparts above all by the fact that its ‘primary’ and ‘secondary’ types are not different from one another” but have the same sources and are not addressed by the state as they are in the West, the economist argues with conviction.

            “I cannot agree with the opinion of the head of Chuvashia according to whom people live poorly in Russia because the work poorly or too little. In fact, the majority of them live poorly because they cannot call on the state to fulfill its obligation” to help them cope with the situation they find themselves in.

             There is no question that “Russia cannot permit itself to secure for its least well-off citizens a standard of living equivalent to that achieved in the West,” Inzoetmsev says. “But no one would prevent us from focusing on it” taking the level of Russian economic development into account.

            Russia could reduce the suffering of the poor significantly and help the economy as well by providing massive assistance to the poor as Western governments do. Unfortunately, the attitudes of the Russian state and the experiences of the Russian people hold out little hope that this will happen anytime soon.

            In the West, politicians and officials expect to be evaluated on the basis of how well society as a whole is doing. Those who fail to help the poor will in many cases fail to keep their jobs. But in Russia, politicians and officials are not dependent on public approval but only on the approval of those above more interested in self-aggrandizement than in spreading the wealth.

            Russians, even the Russian poor, still accept this as a natural and universal state of affairs. It isn’t. And it is time for everyone to acknowledge that “poverty in Russia is not a vice but a state of existence,” one unlikely to be overcome despite Kremlin promises until both state and society recognize that they can and should do something about it.

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