Social Situation in Russia:the Social Quality Approach

Natalia S. Grigorieva

Moscow State University named after M.V.

Lomonosov

Taiwan, March, 2007

The main problems of Russia in Social Policy

The social policy measures are aimed to minimize social function of the whatever social rhetoric's are used

1. In Russian Literature is no wide discussion on the model of social policy as well as on theoretical approaches that foreign researchers are developing

2. The theme of social solidarity seems to gradually disappear from context of Russian social police

3. No tradition of social policy research in Russia in its classical western understanding

The main problems of Russia in Social Policy (contd.)

4. One of the serious flaws of modern Russia social policy theory is in fact the Soviet social policy is a definitely under research area

5. The very important issue is disintegration of the common social space

6. Over the 16 years reforms (stating from 1990), the indicators of social sphere development in Russia deteriorated

SOCIAL SITUATION IN RUSSIA

DEMOGRAPHIC CRISIS

1989-- 147,0 mln 2006 – 142,2 mln

1989-2004 (- 3,5 mln)

HIGH MORTALITY RATES (per 1000)-growing

1989 -- 10,7 2004 -- 16,0

LOW BIRTH RATES (per 1000) -decreasing

1989 -- 14, 6 2004 –10, 4

SOCIAL SITUATION IN RUSSIA (contd)

LOW LIVING STANDARDS

LOW LIFE EXPECTENCY AT BIRTH MEN — 58,89 WOMEN — 72,30 GENDER GAP – 13 years

HIGH MORTALITY RATES IN WORKING AGE (per 100 000)

1999 – 675 2004 -- 800

SOCIAL SITUATION IN RUSSIA (contd)

POVERTY – below poverty line

2004 -- 17,8 % (25,5 mln people)

1992 – 33,5 %

INCOME INEQUALITY - GINI

2004 – 0,407

1992 – 0,260

INCOME INEQUALITY –

10 th highest/ 10 th lowest = 26,4

SOCIAL SITUATION IN RUSSIA (contd)

Average monthly income

Average monthly wage before tax

Average pension

Minimum wage

Monthly child allowance untill16

Monthly child allowance 0-1,5

SHARE OF SUBSISTENCE MINIMUM, 2004 – 2,451 rub

309.2

281.9

109.6

22.3

3

21

SOCIAL SITUATION IN RUSSIA (contd)

LABOUR MARKETLOW MINIMUM WAGE2006 – 1100 rub. ($ 42)LOW WAGES (STATE EMPLOYEES)Average monthly wage before tax– 674013 % of employees in industry41 % of employees in health and social care –

subsistence min and belowUNEMPLOYMENT2004 – 8,3 % of economically active population

DO WE HAVE SOCIAL POLICY?DECREASE IN STATE PARTICIPATION

DECENTRALISATION

PERSONAL SOCIAL RESPONSIBILITY

LIBERALISATION

PRIVATISATION

FEE FOR SERVICE

SOCIAL ( WELFARE) STATE FOR THOSE WHO CAN PAY?

LACK OF SOCIAL SOLIDARITY

LOW RESISTANCE

LOW SOCIAL MOBILITY (EQUALITY OF OPPORTUNITY)

SOCIAL POLICY MYTHS

PRIVATE PROVISION IS ALWAYS BETTER THAN PUBLIC

PEOPLE (ESPECIALLY BETTER-OFF) PREFER TO PAY, EVEN MORE, THEY WANT TO PAY

FINANCING SOCIAL POLICY

BUDGET

OUT-OF–BUDGET SOCIAL FUNDS

OUT-OF-POCKET

FINANCING SOCIAL POLICY - % GDP

1997 2001 2004

BUDGET(total)

10,9 8.1 8,7

federal 2,5 2.3 2,1

regional 8,4 5,8 6.6

Social funds

10,0 7,9 8,2

13285,2

16779

21000

2945331220

2586,23428,9

4979,86159,1

6965,3

23722698,9

3539,4

4388,65463,5

214,2730

1440,3

1770,51501,8

0

5000

10000

15000

20000

25000

30000

35000

GDP Income Expensd profitsit

2003 г. 2004 г. 2005 г. 2006 г. (ожидаемое исполнение) 2007 г. (проект)

GDP and Budget in 2003 - 2007 (billion. rubles)

FINANCING SOCIAL POLICY- SOCIAL FUNDS 1993-2001

PENSION FUND

EMPLOYMENT FUND

SOCIAL INSURANCE FUNDCOMPULSORY HEALTH INSURANCE FUNDS

EMPLOYERS EMPLOYEES 28 % 1% 1,5%

none

5,4% none

3,6%

none

UNIFIED SOCIAL TAX35.6% (2001) - 26.0 % (2005)

P E N S IO N F U N D2 0 %

S O C IA L IN S U R A N C E F U N D3 ,2 %

C O M P U L S O R Y H E A L TH IN S U R A N C E F U N D S2 ,8 %

U N IF IE D S O C IA L TA X

SOCIAL POLICY-RECENT INITIATIVES

MONETARISATION OF IN-KIND BENEFITS

NATIONAL PROJECTS

National Projects

HEALTH

EDUCATION

AFFORDABLE HOUSING

AGRICULTURE COMPLEX

But, the new initiatives in social policy-- are aimed to solve acute but yet very concrete social problems

21,9 23,4

29,3

48,9

62,6

107,7

37,2

50,8

0

20

40

60

80

100

120

Agriculture Education Health Affordable Housing

Financing National Progects

2006 год 2007 год

The Future of Social Policy One of the problem is stuck with the absence of clearly defined mechanism of social standards (several legally established; minimal wage, socially guaranteed norms, of the social infrastructure and etc)

These norms are fragmented and exist outside any system

A need for Federal law able to standardize not just elements of social sphere, but a decent living standard of every citizen of the country

Broad theoretical discussion

Systematic versus fragmentary approach

Changing financing mechanisms

The work during this conference, may help us delineate our own work more clearly and may give us ideas for future work.