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 ,0 mln 2006 – 142,2 mln (- 3,5 mln) HIGH MORTALITY RATES (per 1000)- growing , ,0 LOW BIRTH RATES (per 1000) -decreasing , –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 ) 1999 –

SOCIAL SITUATION IN RUSSIA (contd) POVERTY – below poverty line ,8 % (25,5 mln people) 1992 – 33,5 % INCOME INEQUALITY - GINI 2004 – 0, – 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

SOCIAL SITUATION IN RUSSIA (contd) LABOUR MARKET LOW MINIMUM WAGE 2006 – 1100 rub. ($ 42) LOW WAGES (STATE EMPLOYEES) Average monthly wage before tax– % of employees in industry 41 % of employees in health and social care – subsistence min and below UNEMPLOYMENT 2004 – 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 BUDGET (total) 10,98.18,7 federal2,52.32,1 regional8,45,86.6 Social funds 10,07,98,2

GDP and Budget in (billion. rubles)

FINANCING SOCIAL POLICY- SOCIAL FUNDS PENSION FUND EMPLOYMENT FUND SOCIAL INSURANCE FUND COMPULSORY HEALTH INSURANCE FUNDS EMPLOYERS EMPLOYEES 28 % 1% 1,5% none 5,4% none 3,6% none

UNIFIED SOCIAL TAX 35.6% (2001) % (2005)

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

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.