A Wealthy Russia and a Poor Population

Abstract

Russia has for centuries been a country rich in resources but poor in the standard of living of most of its population. This article explores some of the reasons for this historically and currently, and notes that the main reasons for continued backwardness of the economy are the organizational structure of the society, the ideological views of governing elites, and the lack of opportunity for the population to exercise its skills and engage in aspirational activities.

Keywords:

• human resources
• inequality
• poverty
• Russia
• wealth

This article is the republished version of:

A Wealthy Russia and a Poor Population

Notes

1. Russia ranks second worldwide after the South African Republic in proven gold reserves and diamond mining.

2. There is one more reason for the population’s inclination toward patience and mild forms of protest. In the historical memory of the majority of Russians, the mass protests of 1991 and 1993 are associated with political chaos and a crime orgy. The population’s natural “fear of civil unrest,” and especially of war, intensified during the Ukrainian and other foreign policy events.

3. In 2008, according to Russian Economic School calculations, the “golden million” (about 0.7 percent of the population) received 30 percent of all personal income. The estimates did not include capital gains and other income not reported in Russian statistics.