Natalya Zubarevich: “Cure for Poverty: Growth of the Middle Class”

Today, Russian President Vladimir Putin made the major emphasis in the annual Message to the Federal Assembly on poverty reduction. He said that the state would continue to provide support to the public through social contracts and the major task of the country’s government is to track their implementation in pilot regions and scale this experience up in all constituent entities of the Federation. The major criterion of efficiency of social contracts shall be reduction of poverty in regions, the head of the state emphasized.

Methods of accomplishing the objectives set in the President’s message were at the focus of discussion that was unleashed at the 11th Gaidar Forum within the session “Inequality and poverty: On the way towards reduction”.

When opening the discussion, Tatiana Maleva, Director of the Institute of Social Analysis And Forecasts at RANEPA, noted that the struggle against low income and inequality is the global problem. The social well-being of people becomes an important factor of the economic growth and plays a key role in the long-term political agenda.

According to Dmitry Svatkovsky, Deputy of the State Duma of the Federal Assembly of the Russian Federation, a more precise portrait of the person who falls within the “poor” concept should be created, this will help to develop more effective and targeted support measures for low-income groups of population. According to the member of parliament, one of the most effective mechanisms of struggle against inequality shall be increase of education accessibility and enhancement of its quality. In his speech, Vladimir Nazarov, Director of Finance Research Institute of the Ministry of Finance of Russia,noted the methodological importance of the precise assessment of the well-being of the public and emphasized that increase in the cost of living even by 20% may seriously change the situation.

Natalia Zubarevich, Professor, Lomonosov Moscow State University and Senior Research Associate , RANEPA, believes that the prospect of poverty reduction lies in development of labor mobility. The expert is sure: “From the political and strategic point of view, the only powerful cure in the struggle against poverty is the growth of the middle class. And exactly the overall economic growth is necessary for sustainable creation of this category of the population.”

Aleksey Vovchenko, First Deputy Minister of Labor and Social Protection of the Russian Federation, said that the amount of income deficit of the population as a whole in the country is unknown, and substantial part of people who are strapped for cash are families with children. The major support measures shall be aimed at them.

According to Natalya Pochinok, Rector, the Russian State Social University, fiscal measures can be effectively use in struggle against poverty, such as change in the amount of the tax deduction and individual income tax.


Information

The 11th Gaidar Forum is “Russia and the World: Challenges of the new decade” is held at the Presidential Academy on January 15 and 16, 2020. The forum is focused on the national and global development goals and search for practical answers to the most pressing challenges of the modern times. The forum is attended by ministers of the Government of the Russian Federation, members of the Federal Assembly, governors of the Russian regions, prominent international experts, and representatives of foreign states.

The organizers of the 11th Gaidar Forum are the Russian Presidential Academy of National Economy and Public Administration, the Gaidar Institute for Economic Policy, and the Association of Innovative Regions of Russia.

The title partners of the Gaidar Forum are PJSC Gazprom and JSC Gazprombank. The strategic partners are Coca-Cola, Mastercard, Russian Railways, Pharmstandard group of companies, Johnson & Johnson, Sanofi, Novartis group of companies, MSD, AKIG group of companies, EF Education First. Partners are Prosveshchenie group of companies, EY, Huawei, RVC JSC, Russian Agricultural Bank JSC.

The title information partners of the Gaidar Forum are the Russia-24 TV channel, TASS, RBC, Business FM. The strategic information partners are Kommersant Publishing House, Interfax, Rossiyskaya Gazeta, Invest-Forsythe magazine, Federal Press Agency. The main information partners are Anews.com, Gazeta.Ru, Lenta.Ru, News.ru, Profile. International partners are RT, ThomsonReuters, Sputnik, EFE, Cision, Pan Pacific Agency. Information partners are Snob media project, AEI PRIME, RNS, Expert magazine, Parlamentskaya Gazeta, Polit.ru, Ekho Moskvy radio station, PRO Business TV channel, FINAM.RU information and analytical agency, Davydov.Index, Strategiya magazine, Ekonomika i Zhizn newspaper, Econs portal, Gosudarstvennaya Sluzhba magazine, TV BRICS.