RuEn

Journal section "Social and economic development"

On the Issue of “New” Poverty in Russia in 2000–2023

Kormishkin E.D., Moiseeva I.V.

Volume 17, Issue 5, 2024

Kormishkin E.D., Moiseeva I.V. (2024). On the issue of “new” poverty in Russia in 2000–2023. Economic and Social Changes: Facts, Trends, Forecast, 17(5), 184–203. DOI: 10.15838/esc.2024.5.95.10

DOI: 10.15838/esc.2024.5.95.10

Abstract   |   Authors   |   References
The research topic is relevant because the phenomenon of “new” poverty has been recognized as Russia’s deep and lingering problem of the 21st century, which is accompanied by underutilization of accumulated human capital and an increased risk of a decline in the economic value of education, which hinders progressive and sustainable economic growth. The aim of the work is to concretize key qualitative features of “new” poverty and substantiate the reproduction of this phenomenon in Russia in 2000–2023, which is driven by rent-oriented behavior of the state and extreme socio-economic inequality. The methodology of the study is based on a systems approach, analysis using linear and separation methods in relation to identification, and analysis of causes, concomitant factors and consequences; we also use hierarchical classification of variables for clustering Russia’s constituent entities taking into account the spread of the phenomenon of absolute monetary poverty. We identify a fundamental condition, main causes determined by extreme socio-economic inequality, and their accompanying factors, which together explain the reproduction of “new” poverty in Russia as a major problem requiring solution at the political level. W consider key qualitative signs of “new” poverty in Russia, revealing its nature in the conditions of rent-oriented behavior of the state. They include social exclusion from the use of resources, various benefits and privileges; coverage of employees with secondary and higher professional education working in different economic sectors, downward professional and qualification mobility; expansion of the “shadow economy of survival”, etc. We conduct the clustering of Russia’s constituent entities, taking into account the spread of absolute monetary poverty in 2023. We propose some basic and fundamental measures aimed at overcoming poverty (taking into account its “new” quality) and raising Russians’ incomes

Keywords

“new” poverty, poverty line, median per capita income, rent orientation, social inequality, downward professional mobility, the “working poor” paradox, poverty alleviation policy

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