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Academy Assesses Govt. Social Policy
The Russian Academy of Science's Institute of the Socio-Economic Problems of the Population has analyzed the influence of social measures taken by the government in recent months on social stratification and concluded that the poor have been ill served by the raises in the minimum wage, pensions and salaries paid from the federal budget. The institute's report, entitled “Factors of Inequality in Economic and Demographic Dynamics and the Formation of the New Social Policy of the government” was presented to the presidium of the Academy at the beginning of the month.
In spite of the fact that raising the minimum wage to 3000 rubles per month and pensions to 3275 rubles, that is, to the poverty level, reduced the coefficient of difference between the highest- and lowest-income household from 20 time to 14 times, thus reducing the number of households living in absolute poverty to 10 percent, the effect is offset by the fact that member of households in all groups of households, and high-income households' incomes are growing much faster than those of low-income households, the report said. The effects of the government's will be unnoticeable in two to three years, it adds.
The gap between the wealthiest and poorest Russian is great and the system for the redistribution of wealth is weak, experts note. The Academy of Sciences report practically suggests that a sliding income tax replace the current flat tax. Observers point out that that will be ineffective as long as “gray” income is prominent on the Russian labor market.
www.kommersant.com
All the Article in Russian as of Nov. 12, 2007
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Photo: Ïàâåë Ñîëîâüåâ
