Russian Citizens' Income Level |
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We will dicsuss the actual regional evaluation of the poverty line and consumer "goods basket" actual magnitude a bit later. First, let us conduct a little research into the causes and consequences of the regional differences in the level of poverty.
So, people who live in Moscow City and Western Siberia districts, where crude oil and gas for export are produced, have the largest income. Apparently, the export orientation of the Far East primary regions, especially Yakutia, is also the major factor in the decrease in the number of the poor, though not all the regions here have high figures of prosperity. The Magadan Region and Koryak District are considered to be in the doldrums. In the main area of Russian population displacement, the official income is higher in regions with developed industrial complexes (the Kemerovo, Samara, Rostov, Chelyabinsk Regions, the Krasnoyarsk territory). Obviously, a more organized industrial proletariat and managers of large enterprises with weight in politics can "struggle" for money from the budget more effectively as well as develop closer cooperation with the consumers of their products. The regions where small businesses prevail, especially those that produce consumer goods, happen to be in the worst situation due to, but not restricted to, severe competition. In regions with textile, food and timber industries, the income per person is sufficiently lower.
The Government of the Russian Federation sets the poverty line per person on the basis of main social-demographic groups. The respective inactions are signed by the Prime Minister of the country. Now a bit of statistics beginning with the year 2004.
The poverty line for working-age population: 2004 - 2399 rubles, 2005 - 2965 rubles, 2006 - from 2970 up to 3280 rubles; for 2007 the level of poverty line is planned to be raised from 3250, up from 2590 rubles.
In 2004 in RF, 17,5% of the people had income under the poverty line. In 2005 - 14,5%, in 2007 - 10,5%. At the same time, the actual income of the population in comparison with the previous year has increased: in 2004 - to 9,4%, in 2005 - to 9%, in 2006 - to 8,1%, in 2007 the increase is planned to be up to 8,3%. The average amount of post retirement benefits will be to 5% to 6% higher than the poverty line. In general, in comparison with the year 2005, the post retirement benefits will increase only to 12%.
Now, let us move on to the realities of Russian life. So, for instance, the Moscow City Government prepared and transferred for confirmation to the City Duma a draft law regarding Moscow citizens consumer "goods basket". The consumer "goods basket" includes the essential amount of food-products and commodity goods for a period of one year and will become the basis for calculation of unemployment compensation and government welfare payments for children. So, in order not to die from starvation, a Moscow citizen will need: wheat bread - 62,8 kg, the average cost of one loaf of bread amounts to 20 rubles. Milk and kefir - 105 kg, the cost of one kg is not less than 20 rubles. Sugar - 19,6 kg at the cost of 18 rubles/kg. Beef - 12,4 kg, pork - 4,4,kg, fish - 13,3 kg at the cost of 120-150, 150-250, 100-200 rubles/kg respectively. Curds - not less than 8 kg, salt - not less than 3 kg. The average cost of the first is 120 rubles/kg, the second - 5 rubles/kg. The Russian Government also did not forget about the essential content of personal belongings: one coat for seven years, a two-piece suit for five years, a sweater for five years, sneakers for three years, a woolen woman's dress - one for five years, dressing-gown - one for five years, winter coat - one for eight years. The accommodation cost and the cost of rent in Moscow and provincial cities must be discussed separately. The average rent for a two-room apartment in a Moscow bedroom community is $450 to $600 per month. In the provinces, such an apartment will cost $150 to $350. Public transport fares in general along the country are 6-10 rubles. In Moscow - 15-18 rubles.
The figures are disappointing, but real life is not so harsh. In every country, there are people with lower incomes and the poor. What is important is that the number of poor decreases in Russia every year. To ease the price comparison, the dollar/ruble rate in the period of writing this article was twenty-six rubles for one US dollar.
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