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"I do not rule Russia; ten thousand clerks do." Nicholas I
ffaga@uaf.eduSellassie U In 1990 I suggected that USSR should be renamed into "Moscovia" as it was called before Ivan the Terrible. Why bother with "Russia"? The desintegration is on... Read on. Russian Play: hyperdrama & webshowIn Russian and very new! 2002GeoAlaska:
new: anti-communism + Russian Diary
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ANOTHER POPULATION DECLINE RECORDED.
Russia's population dipped by 401,000 or 0.3 percent in 1998 compared with the previous year, according to a preliminary estimate by the State Statistics Committee, ITAR-TASS reported on 4 February. In 1997, the population also fell by 0.3 percent. As of 1 January, 146 million people lived in Russia. JAC
Jan. 5, 1999 RL
That figure comes from a U.S. Information Agency- sponsored survey of more than 2,000 residents of the Russian Federation. Conducted in September-October 1998 and released last month, this poll not only helps to answer "just how bad" poverty in Russia now is but, equally important, undercuts some assumptions about how Russians are dealing with their economic difficulties. The poll's findings about subsistence farming are perhaps the most striking. More than half of all Russians -- some 55 percent--currently grow approximately half or more of their food in private gardens, at their dachas, or on other plots of land. Only 27 percent, the poll found, do not grow any of the food they consume--and that in a country whose population remains more than 70 percent urban.
But this is just one of the ways Russians are trying to cope at a time when only 50 percent of Russian adults are employed and only one in four of those who are employed are being paid on a more or less regular basis.
Not surprisingly, many Russians are turning to family and friends. Some 57 percent of those polled had borrowed money, and another 52 percent had accepted assistance of one kind or another from family or friends in the six months before the poll. But most expressed fear that this source may be drying up. Fewer than 40 percent said they believe they can count on this source of alternative income if things become even worse. Russians are not turning to two potential sources of income that many have assumed they are using to keep afloat.
As the USIA report notes, "contrary to popular accounts, the substitution of barter for wares overall is not that prevalent." And workers not paid on time are not making money "in a flourishing second economy."
With regard to barter, the survey found that in the six months before the poll, only 27 percent of those working had received goods in lieu of wages and that in half of these cases, this was only a one- or two-time event. And the survey found such wage substitutes are doing little to help those not being paid on a regular basis. Some 35 percent of workers who have either not been paid or have been paid more than a month late "never receive payment in kind," the report said.
With regard to the question of second jobs, the USIA survey failed to find much evidence that Russians are making use of them to supplement their incomes. While some may have underreported their participation in such jobs owing to concerns about taxation, 82 percent said they do not have a second job. Only 10 percent said they have a regular second job, and only 6 percent indicated they sometimes do.
Moreover, most of these jobs provide relatively little income. Forty-three percent of those with such jobs say it provides them with less than 25 percent of their income; only 16 percent say that it provides more than half. Given the assumptions many have made about the role of the second economy in Russia, the USIA survey intriguingly found that those not paid regularly are no more likely to have a second job than those who are paid on time. That lack of individual entrepreneurship in much of the Russian labor force was reflected in another finding of the USIA-sponsored poll: namely, that large majorities of working Russians were unwilling to leave their current jobs even if they are not being paid on a regular basis. Most believe that it would be difficult, if not impossible, to find an equivalent position quickly or at all. And all are aware that the government is unlikely to provide them with unemployment benefits in the interim. Indeed, two out of three unemployed Russians today have never received such benefits. Given such concerns and difficulties, Russians are turning toward subsistence, an obvious survival strategy and one that represents an unspoken call for help from the outside.
@1998-2005 Anatoly Antohin
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Ropulation: 143,782,338 (July 2004 est.)
Population growth rate: -0.45% (2004 est.)
chancery: 2650 Wisconsin Avenue NW, Washington, DC 20007
telephone: [1] (202) 298-5700, 5701, 5704, 5708
FAX: [1] (202) 298-5735
Diplomatic representation from the US:
chief of mission: Ambassador Alexander VERSHBOW
embassy: Bolshoy Devyatinskiy Pereulok No. 8, 121099 Moscow
mailing address: PSC-77, APO AE 09721
telephone: [7] (095) 728-5000
FAX: [7] (095) 728-5090
Economy - overview:
Russia ended 2003 with its fifth straight year of growth, averaging 6.5% annually since the financial crisis of 1998. Although high oil prices and a relatively cheap ruble are important drivers of this economic rebound, since 2000 investment and consumer-driven demand have played a noticeably increasing role. Real fixed capital investments have averaged gains greater than 10% over the last four years and real personal incomes have averaged increases over 12%. Russia has also improved its international financial position since the 1998 financial crisis, with its foreign debt declining from 90% of GDP to around 28%. Strong oil export earnings have allowed Russia to increase its foreign reserves from only $12 billion to some $80 billion. These achievements, along with a renewed government effort to advance structural reforms, have raised business and investor confidence in Russia's economic prospects. Nevertheless, serious problems persist. Oil, natural gas, metals, and timber account for more than 80% of exports, leaving the country vulnerable to swings in world prices. Russia's manufacturing base is dilapidated and must be replaced or modernized if the country is to achieve broad-based economic growth. Other problems include a weak banking system, a poor business climate that discourages both domestic and foreign investors, corruption, local and regional government intervention in the courts, and widespread lack of trust in institutions. In addition, a string of investigations launched against a major Russian oil company, culminating with the arrest of its CEO in the fall of 2003, have raised concerns by some observers that President PUTIN is granting more influence to forces within his government that desire to reassert state control over the economy.
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