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Revista  
de la  
Universidad  
del Zulia  
Fundada en 1947  
por el Dr. Jesús Enrique Lossada  
Ciencias  
Sociales  
y Arte  
Año 12 N° 34  
Septiembre - Diciembre 2021  
Tercera Época  
Maracaibo-Venezuela  
REVISTA DE LA UNIVERSIDAD DEL ZULIA. 3ª época. Año 12 N° 34, 2021  
Zyukin Danil Alekseevich et al// Poverty in Russia as the main threat to economic security … 261-281  
DOI: http://dx.doi.org/10.46925//rdluz.34.16  
Poverty in Russia: economic and social implications  
Zyukin Danil Alekseevich *  
Alexey Anatolievich Golovin **  
Ruslan Yakovlevich Vakulenko ***  
Olga Vladimirovna Pigoreva ****  
Elena Nikolaevna Nozdracheva *****  
Khorlyakova Olga Viktorovna ******  
ABSTRACT  
The purpose of the research is to analyze of poverty in Russia as the most important social problem  
of our time. The methodology of the study includes an assessment of the dynamics of socio-economic  
indicators in Russia in the period 2015-2020, as well as a comparison with European countries. It is  
shown that the problem of poverty is still one of the most pressing and urgent for modern Russia.  
Despite the outlined positive dynamics in the poverty level of the country's population in 2018-2019,  
there was a decline again in 2020, due to the deterioration of the socio-economic situation against  
the backdrop of the Coronavirus pandemic. As a result, the effectiveness of the earlier measures in  
the framework of social policy has practically disappeared, and the poverty level has practically  
reached 13%. The systemic lack of financial support for such critical sectors as education and health  
care has contributed to a series of cuts in order to save limited resources. A comparative analysis of  
the main socio-economic indicators in Russia and European countries made it possible to reveal the  
presence of significant differentiation, since Russia occupies the last positions among the compared  
countries in terms of basic social indicators.  
KEY WORDS: social policy; standard of living; poverty alleviation; income; wealth.  
*
Senior Researcher, Kursk State Agricultural Academy named after I.I. Ivanov. ORCID:  
https://orcid.org/0000-0001-8118-2907. E-mail: nightingale46@rambler.ru  
*
* Associate Professor, Head of the Department of Economic Theory, Regional Studies and Legal Regulation  
of the Economy, Kursk Academy of State and Municipal Service. ORCID: https://orcid.org/0000-0003-4962-  
2022. E-mail: dr.golovin2013@yandex.ru  
*
** Associate Professor, Head of the Department World Economy and Informatics Nizhny Novgorod State  
Linguistic University named after N. A. Dobrolyubov. ORCID: https://orcid.org/0000-0002-1483-9734. E-  
mail: vakulenko_r@rambler.ru  
*
*** Professor of the Department of Economics, Management and Humanities, Kursk State Agricultural  
Academy named after I.I. Ivanov. ORCID: https://orcid.org/0000-0003-3565-1746. E-mail:  
ovpigoreva@yandex.ru  
*
****Associate Professor in Economics, Associate Professor of the Department of Economics and Accounting  
Kursk State University. ORCID: https://orcid.org/0000-0002-0783-9453. E-mail: nen.kgu@mail.ru  
*
*****Candidate of Pharmaceutical Sciences, Associate Professor of the Department of Biological Chemistry,  
Kursk State Medical University of the Ministry of Health of Russia. ORCID: https://orcid.org/0000-0001-  
918-7606. E-mail: khorlykova@mail.ru  
8
Recibido: 14/06/2021  
Aceptado: 03/08/2021  
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REVISTA DE LA UNIVERSIDAD DEL ZULIA. 3ª época. Año 12 N° 34, 2021  
Zyukin Danil Alekseevich et al// Poverty in Russia as the main threat to economic security … 261-281  
DOI: http://dx.doi.org/10.46925//rdluz.34.16  
La pobreza en Rusia: implicaciones económicas y sociales  
RESUMEN  
El propósito de la investigación es analizar la pobreza en Rusia como el problema social más  
importante de nuestro tiempo. La metodología del estudio incluye una evaluación de la  
dinámica de los indicadores socioeconómicos en Rusia en el período 2015-2020, así como una  
comparación con los países europeos. Se demuestra que el problema de la pobreza sigue  
siendo uno de los más apremiantes y urgentes para la Rusia moderna. A pesar de la dinámica  
positiva delineada en el nivel de pobreza de la población del país en 2018-2019, hubo una  
disminución nuevamente en 2020, debido al deterioro de la situación socioeconómica en el  
contexto de la pandemia de coronavirus. Como resultado, la efectividad de las medidas  
anteriores en el marco de la política social prácticamente ha desaparecido y el nivel de  
pobreza prácticamente ha alcanzado el 13%. La falta sistémica de apoyo financiero para  
sectores tan críticos como la educación y la salud ha contribuido a una serie de recortes para  
ahorrar recursos limitados. Un análisis comparativo de los principales indicadores  
socioeconómicos de Rusia y los países europeos permitió revelar la presencia de una  
diferenciación significativa, ya que Rusia ocupa las últimas posiciones entre los países  
comparados en términos de indicadores sociales básicos.  
PALABRAS CLAVE: política social; estándar de vida; mitigación de la pobreza; ingresos;  
riqueza.  
Introduction  
Ensuring sustainable socio-economic development is one of the most important tasks  
facing each state at the present stage. The key problem that has become more acute in recent  
years in Russia has been the growing poverty of the population. This phenomenon is  
complex, because it is determined by both economic and social reasons, and also carries a  
wide range of consequences of different nature. Given the fundamental impact on the state  
of society and the harmonious development of the economy, the problem of poverty becomes  
the main threat to the economic security of the country. The consequences of the decline in  
the real income level of Russians and the progress in increasing the share of low-income  
citizens are of significant importance for the stability of the current political system of the  
country before the elections to the "State Duma".  
The importance of creating a favorable social environment is to reduce social tension  
among the population, as well as to increase the attractiveness of a particular area for living  
262  
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Zyukin Danil Alekseevich et al// Poverty in Russia as the main threat to economic security … 261-281  
DOI: http://dx.doi.org/10.46925//rdluz.34.16  
and the flow of investment (Gnangnon, 2021). The global socio-economic situation in recent  
years is developing unfavorably: a series of economic crises, political and military conflicts,  
as well as a worsening epidemiological situation and the coronavirus pandemic have dealt a  
significant economic blow, inevitably provoking a deterioration in the social situation of the  
population (Hussain et al., 2021; Datt et al, 2020). As a result, there has been an increase in  
socio-economic differentiation both between countries and within them, which has  
actualized the task of maintaining an optimal level of well-being of the population.  
In the context of acute political processes within the country against the background  
of elections and relations with the world society against the background of sanctions, as well  
as the characteristic consequences for the economy and society as a result of the  
impoverishment of the population, we define poverty as the main threat to Russia's economic  
security. Therefore, the purpose of the study was to assess the indicators that characterize  
poverty as a socio-economic phenomenon.  
1
. Materials and methods  
In the course of the study, using data from the statistical collection “Russia in  
Numbers” (2021), the main indicators of the standard of living of the population in Russia in  
the period 2015-2020 are considered. The number and proportion of the poor were selected  
as the main criteria for assessing the level of poverty, which makes it possible to assess the  
change not only in the absolute number of people living below the poverty line, but also  
makes it possible to assess the overall effectiveness of social policy aimed at reducing the level  
of poverty in the country. Also, an assessment of the dynamics of the average per capita  
income of the Russian population, reflecting the nominal growth in welfare, is given, and the  
change in real disposable income, expressed as a percentage of the previous year, is  
considered, which makes it possible to assess the real trends in the change in the population's  
income in the period under study, not related to inflationary processes in the economy.  
Based on the data of the analytical report for the Central Bank of the Russian  
Federation "Measurement of inflation expectations and consumer sentiment based on public  
opinion polls" (June 2021), an assessment of the position of the population regarding the  
change in its financial situation and the rise in prices in the economy was carried out in the  
period from January 2019 to April 2021 quarterly. The exception is the period April-July 2020,  
263  
REVISTA DE LA UNIVERSIDAD DEL ZULIA. 3ª época. Año 12 N° 34, 2021  
Zyukin Danil Alekseevich et al// Poverty in Russia as the main threat to economic security … 261-281  
DOI: http://dx.doi.org/10.46925//rdluz.34.16  
when, due to the deteriorating epidemiological situation, surveys were not carried out, in  
connection with which the data for March and August 2020 were considered. The survey  
was conducted on a sample of 2,021 adults living in 55 regions of the Russian Federation. The  
interview was conducted at the place of residence in the “face-to-face” mode, while the  
statistical error of the results was within 3.3%. The study of the position of the population  
regarding their own financial situation and the level of prices in the economy makes it  
possible to assess personal feelings about the changes in the level and cost of living in recent  
years.  
The assessment of the state of the social sphere in Russia was carried out on the basis  
of the dynamics of the development of the health care system and education. In the field of  
health care, the dynamics of the number and provision of the population with outpatient and  
inpatient medical organizations has been analyzed, which makes it possible to assess the  
level of accessibility of medical care for the population at each stage of medical care. In the  
field of education, the assessment was made in the context of the dynamics of the number of  
educational institutions of different levels - schools, organizations of secondary vocational  
and higher education in total and in the context of forms of ownership. The results of the  
study make it possible to assess the development of the most important areas of the social  
sphere, which reflects the level of accessibility of social infrastructure and the quality of life  
of the population as a whole.  
The study also provides a comparative analysis of the standard of living in Russia and  
9
European countries as of 2020 based on a number of indicators. The following were selected  
as key indicators: the size of the subsistence minimum, the size of the minimum and average  
wages per month, expressed in US dollars; unemployment and poverty rates as a percentage;  
and quality of life and human development indices. Evaluation of the selected indicators in  
Russia in comparison with European countries makes it possible to comprehensively assess  
the existing standard of living in the country in the context of the problem of poverty. The  
study of the level of poverty in Russia as a social problem of our time was carried out on the  
basis of a number of methods and approaches, including analysis of dynamics, comparative  
and logical analysis.  
2
. Results  
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Zyukin Danil Alekseevich et al// Poverty in Russia as the main threat to economic security … 261-281  
DOI: http://dx.doi.org/10.46925//rdluz.34.16  
The total population below the poverty line in Russia at the beginning of the period  
under review was 19.5 million people, which is equal to 13.3% of the total population in the  
country. In the period 2016-2019, there is a steady trend towards a decrease in both the  
number and the share of the poor population in the country. At the same time, the trend has  
been increasing since 2018, when the number of poor people amounted to 18.4 million people,  
which is equal to 12.6%. The lowest value of the indicators can be identified in 2019, when  
the number of people below the poverty line fell to 18.1 million. people, and their share is up  
to 12.3%, which is more than 7% higher than the data of 2015. At the same time, in 2020,  
associated with the beginning of the coronavirus pandemic, there was an increase in the  
number of poor people in the Russian Federation to 18.8 million people, which is equal to  
1
2.9% of the total population in the country. The increase in indicators compared to the level  
of the previous year was 3.9% and 4.9%, respectively, due to the deterioration of the economic  
situation in the country, as a result of which there was a decrease in the income of the  
population (Figure 1).  
1
1
3.3  
9.5  
13.3  
19.5  
2
0
13.2  
13.5  
12  
1
1
2.9  
8.8  
1
9.3  
1
1
2.6  
8.4  
1
1
2.3  
8.1  
1
8.5  
17  
10.5  
2015  
2016  
2017  
2018  
2019  
2020  
Population with monetary incomes below the subsistence level, mln.  
Poverty rate, %  
Source: compiled by the authors on the basis of data from Russia in numbers (2021).  
Figure 1. Dynamics of the number and share of the poor population in Russia in 2015-  
2020.  
The average per capita income of the population in national currency is steadily  
growing in the period under study, reaching 35.7 thousand rubles by 2020, which is 17%  
higher than the level of 2015, when the indicator was 30.5 thousand rubles. At the same time,  
the highest rates of growth in the average per capita income of the population of the Russian  
265  
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Zyukin Danil Alekseevich et al// Poverty in Russia as the main threat to economic security … 261-281  
DOI: http://dx.doi.org/10.46925//rdluz.34.16  
Federation have been observed in recent years, starting in 2018, when the indicator reached  
3
3.3 thousand rubles. Despite the nominal stable growth of average per capita income, the  
assessment of the dynamics of real per capita income showed a wavelike character of the  
change in the indicator. In the period 2015-2017, the increase in average per capita income  
had a negative trend, as evidenced by the value of the indicator not exceeding 100%. At the  
same time, the largest decline can be noted in 2016 and it is 5.8%. In 2018-2019. there was a  
positive trend, as a result of which in 2018 the increase in average per capita income was  
0
.4%, and amounted to 1% in 2019. In 2020, there is again a decrease in the average per capita  
income of the population by 3% compared to the level of the previous year, which is  
associated with the deterioration of the economic situation in the country during the  
pandemic (Figure 2).  
1
01  
38  
33  
28  
100.4  
102  
95  
9
3
8.8  
1.4  
3
5.7  
9
3
5.3  
9
3
6.8  
0.5  
7
3
3.3  
9
3
4.2  
0.7  
88  
2015  
2016  
2017  
2018  
2019  
2020  
Average per capita monetary incomes of the population (per month), thousand rubles  
Real disposable cash income, % of the previous year  
Source: compiled by the authors on the basis of data from Russia in numbers (2021).  
Figure 2. Dynamics of average per capita money income and real disposable income of  
the population in Russia in 2015-2020.  
According to the results of a sociological survey, the material situation of the majority  
of the country's population (more than 50%) has not changed since January 2019, however,  
this indicator varied within 52-59% in the period from January 2019 to March 2020, and  
decreased to 51% already in August 2020. Despite the positive dynamics of growth in the  
share of the population with the same income level in October 2020 - January 2021, its share  
decreased to 51-50% in April-June 2021, which is the lowest value. At the same time, there is  
an increase in the proportion of the population whose financial situation decreased in the  
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Zyukin Danil Alekseevich et al// Poverty in Russia as the main threat to economic security … 261-281  
DOI: http://dx.doi.org/10.46925//rdluz.34.16  
study period, especially in August 2020, when the proportion of such a population increased  
to 39%. Despite the improvement in the situation in October 2020 and January 2021, the  
share of the population increased again with a deterioration in the financial situation to 38%.  
in April 2021. In turn, the proportion of the population, whose financial situation has  
improved, varied from January 2019 to March 2020, being in the range of 11-14%. However,  
there is a decrease in this indicator to 9% already in August 2020, and to 10% already in  
August 2020. As a result, it can be concluded that the situation with the material situation  
of the population was more stable in the period until August 2020, and in recent periods, due  
to the coronavirus pandemic, there was a general deterioration in the material situation of  
the population; at the same time, the variation by quarters increased due to the general socio-  
economic instability (Figure 3).  
1
1
1
1
1
1
1
1
1
1
1
3
0
29  
2
7
3
3
34  
3
5
35  
35  
35  
3
9
38  
56  
5
1
9
3
5
6
5
4
50  
5
1
2
2
53  
55  
52  
5
1
51  
14  
12  
14  
11  
13  
13  
9
11  
10  
Jan.  
Apr.  
Jul.  
Oct.  
Jan.  
Mar.  
2020  
worsened  
Aug.  
Oct.  
Jan.  
Apr.  
2021  
Jun.  
2
019  
improved  
remained unchanged  
find it difficult to answer  
Source: compiled by the authors on the basis of data measuring inflation expectations and  
consumer sentiment based on public opinion polls for June 2021.  
Figure 3. Assessment of changes in the material situation of the population of Russia  
based on a sociological survey%.  
At the same time, according to the population, a significant increase in prices in the  
period from January 2019 to October 2020 was noted by 45% -34%, and since January 2021  
this indicator has exceeded 50% and tends to grow to 58% by the end of the surveyed period  
with a simultaneous decrease in the proportion of the population, who have an opinion about  
a less significant increase in prices. In 2019-2020, moderate growth was noted by slightly  
more than 40% of the population, and since January there was a decrease in the indicator to  
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Zyukin Danil Alekseevich et al// Poverty in Russia as the main threat to economic security … 261-281  
DOI: http://dx.doi.org/10.46925//rdluz.34.16  
3
3%, and to 29% by the end of the period under review. At the same time, a slight increase in  
prices in 2019-2020 was highlighted by about 15% of respondents, and in 2021 the indicator  
decreased to less than 10%. As a result, it can be noted that in 2021, in the opinion of the  
population, there was an increase in the growth of prices for goods and products compared  
to previous periods, which is due to the deterioration of the economic situation (Figure 4).  
3
3
5
5
5
6
16  
4
6
14  
3
2
3
2
7
3
2
7
9
7
8
15  
6
7
14  
6
7
8
9
9
1
1
1
5
1
5
3
0
29  
3
3
4
0
5
4
3
2
4
2
4
3
0
39  
4
2
0
44  
43  
5
7
58  
5
2
4
6
34  
34  
3
9
28  
27  
Jan.  
Apr.  
Jul.  
019  
Oct.  
Jan.  
Mar.  
Aug.  
Oct.  
Jan.  
Apr.  
Jun.  
2
2020  
2021  
grew very much  
not changed  
grew up moderately  
decreased  
grew slightly  
find it difficult to answer  
Source: compiled by the authors on the basis of data measuring inflation expectations and  
consumer sentiment based on public opinion polls for June 2021.  
Figure 4. Estimation of price growth over the past month according to the opinion of  
the Russian population based on a sociological survey%.  
At the present stage, the development of the country's social sphere, mainly healthcare  
and education, is of great importance, which also largely determines the level and quality of  
life of the population. Important social indicators such as morbidity and mortality, as well as  
the health of the nation in general, depend on the efficiency of the functioning of the health  
care system. In turn, the role of the education sector is to form a high level of literacy of the  
population, which contributes, among other things, to an increase in the scientific potential  
of the country. The high level of development and effective functioning of these sectors of the  
social sphere is aimed at the formation of large human capital and is inextricably linked with  
the standard of living and well-being of the population (Zyukin et al., 2020a; Zyukin 2 et al.,  
2020b).  
An assessment of the main indicators of the development of the healthcare system in  
Russia revealed that in the last 6 years there has been a tendency for the number of outpatient  
clinics to grow by 14% to 21.2 thousand, while the number of hospitals has decreased to 5.1  
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DOI: http://dx.doi.org/10.46925//rdluz.34.16  
thousand. This is due to optimization processes in healthcare and the active development of  
primary care as the main element of the medical care system in Russia (Figure 5).  
25  
20  
15  
10  
5
0
21.2  
20.2  
20.2  
20.2  
19.1  
18.6  
5.4  
5.4  
5.3  
5.3  
5.3  
5.1  
2015  
2016  
2017  
2018 2020  
2019  
Number of hospital organizations, thous.  
Number of outpatient clinics, thous.  
Source: compiled by the authors on the basis of data from Russia in numbers (2021).  
Figure 5. Dynamics of the number of outpatient and hospital organizations in Russia in  
2015-2020.  
As a result, there is an increase in the throughput of polyclinics by more than 5% over  
the period under review, as a result of which the capacity of the outpatient polyclinic  
network of the country reached 4.1 million visits per shift in 2020, and 278 visits per shift per  
1
0 thousand population, which is the highest value for the period under review. As a result,  
we can say that primary health care has been actively developing in recent years, while the  
availability of medical care for the population on an outpatient basis has increased  
significantly, since the number of visits per shift per 10 thousand people increased by 14 units.  
At the same time, the capacity of the country's hospital network providing inpatient care has  
decreased by almost 4% in 5 years. If in 2015 the country's bed capacity was more than 1.22  
million beds, then in the last 2 years the figure is at the level of 1.17 million beds. This is due  
to their reduction in the framework of resource optimization in the industry, since inpatient  
care is one of the most expensive, as well as the maintenance of one functioning bed. As a  
result of the reduction in the absolute number of beds in the country, the provision with beds  
decreased to 80 per 10 thousand of the population, while their number was 83 in 2015.  
Therefore, we can talk about a decrease in the provision of the population with beds, which  
indicates a decrease in the availability of this type of medical care.  
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DOI: http://dx.doi.org/10.46925//rdluz.34.16  
At the same time, it should be noted that not only health, but also in a number of cases,  
a person's life largely depends on the availability of inpatient medical care, since this type of  
care, in contrast to outpatient care, is characterized by the greatest functionality and allows  
you to receive high-tech medical services. Therefore, the transfer of the main load to the  
primary care cannot be considered an absolutely correct decision, which became clearly  
understood with the onset of the coronavirus pandemic. When there was an acute shortage  
of pulmonary beds in the country and difficulties in re-profiling other beds, taking into  
account the need of time, and also there was a need to expand the bed capacity in the country  
through the construction of additional capacities (Table 1).  
Table 1. Dynamics of the main indicators of the development of the healthcare system in  
Russia in 2015-2020.  
Value  
Change in  
2020 to  
Index  
2
015 2016 2017 2018 2019 2020  
2015, %  
Capacity of outpatient clinics, visits per shift:  
total, thous. 3861 3914 3967 3967 3998 4072  
per 10 thousand people  
Number of hospital beds:  
5,5  
5,3  
264  
267  
270  
270  
272  
278  
total, thous.  
per 10 thousand people  
1222  
83  
1197  
82  
1183  
81  
1183  
81  
1173  
80  
1174  
80  
-3,9  
-3,6  
Source: compiled by the authors on the basis of data from Russia in numbers (2021).  
The current state of the education sector is also characterized by a number of  
problems, primarily in the school sector. Over the past 6 years, the total number of schools  
decreased by 9% and amounted to 40.8 thousand compared to 44.8 thousand at the  
beginning of the period under review. At the same time, this reduction is due solely to the  
reduction of state and municipal schools by 9.4%, while the number of private ones is steadily  
growing and by 2020 reached 857 units, although it makes up a small share in the total  
volume of schools in the country. In the sphere of secondary vocational education, there is a  
positive dynamics of growth in the number of functioning institutions: over 6 years, their  
number increased by 13.3% and reached almost 3.3 thousand, while only 2.9 thousand of them  
are state or municipal. One of the current trends in the field of secondary vocational  
education is the active growth in the number of private organizations of this profile: in just 6  
years, their number has almost doubled and amounted to 362 units. Extremely negative  
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DOI: http://dx.doi.org/10.46925//rdluz.34.16  
trends are observed in the field of higher education, where the overall decline in the number  
of higher educational institutions has exceeded 40%. Despite the increase in the indicator in  
2016 to 1079 units, by 2020 the number of higher educational institutions decreased to 563  
units. At the same time, the reduction was most reflected in higher educational institutions  
of private ownership (-68.2%), the total number of which was only 128 by 2020, while the  
total number of state institutions was 435, which is more than 20%. belowthe base year level  
(
Table 2).  
Table 2. Dynamics of the main indicators of the development of the education system in  
Russia in 2015-2020  
Value  
2016 2017 2018  
44848 43376 42621 41958 41349 40823  
Change  
in 2020  
to 2015,  
%
Index  
2015  
2019 2020  
Schools (total), incl.:  
state and municipal  
-9,0  
4259  
3
4049  
8
4
4097  
751  
41804  
817  
41103  
855  
39966  
857  
-9,4  
14,1  
private  
783  
851  
Organizations of  
secondary vocational  
education (total), incl.:  
state and municipal  
private  
Higher education  
organizations (total),  
incl.:  
2909 2891 3278  
3316  
3311 3295  
13,3  
2665 2645 2995  
2999 2961  
317  
2933  
362  
10,1  
48,4  
244  
950  
246  
283  
840  
350  
1079  
651  
596  
563  
-40,7  
state and municipal  
private  
548  
402  
727  
352  
597  
243  
480  
171  
455  
141  
435  
128  
-20,6  
-68,2  
Source: compiled by the authors on the basis of data from Russia in numbers (2021).  
As a result, we can say that negative social trends are also noted in the education  
sector, associated with a reduction in the number of institutions at all levels of education,  
except for secondary vocational, and in the largest state and municipal forms of ownership.  
This is largely due to the lack of funding for the education sector, as a result of which the  
maintenance and service of some educational organizations becomes impossible, and  
therefore, measures are being taken to optimize and reorganize. In the sphere of higher  
education, such a decrease is not so critical, since this level of education is not compulsory,  
although it is becoming more and more important; however, in the sphere of general (school)  
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DOI: http://dx.doi.org/10.46925//rdluz.34.16  
education, such tendencies are extremely negative, due to the obligatoryness and importance  
of this level of education for the formation of human potential with a high level of general  
literacy. A decrease in the number of schools inevitably contributes to the overcrowding of  
the remaining ones, which negatively affects the quality of the educational process and the  
final result of training.  
In the context of the emerging budgetary educational infrastructure deficit and the  
trend towards the commercialization of education, especially higher education,  
preconditions are being formed for the active development of private educational  
organizations as a business area, similar to the healthcare sector. However, one of the main  
factors hindering the more active development of private systems of both education and  
health care today is hampered by the general low standard of living of the population and a  
decrease in real incomes, which often makes it impossible to obtain these types of services  
on a paid basis.  
This is confirmed by the results of a comparative analysis of the main indicators of the  
standard of living in Russia and individual European countries, which underlines the  
existence of significant differentiation. Today, the country's living wage is one of the lowest  
and in 2020 amounted to $ 321, which is almost equal to the level of Poland ($ 322) and  
slightly below the level of the Czech Republic ($ 359). At the same time, in the most  
developed European countries, such as the Netherlands, Great Britain, France, Italy and  
Germany, the size of the living wage of a person is more than 2 times higher than that of the  
Russian Federation.  
Also extremely lowin Russia can be noted and the minimum wage, which partly forms  
the initially low standard of living in the country. So, in 2020, the minimum wage in the  
Russian Federation amounted to $ 189 per month, while in the Netherlands this figure is $  
1
,916, in Germany - $ 1,784, Great Britain - $ 1,740, and France - $ 1,670. , which forms an  
almost tenfold gap in the country in terms of wages in comparison with the most socially and  
economically developed countries in Europe.  
The situation is similar with the average wage level: in Russia in 2020, the national  
average wage level was $ 592, while in comparable European countries this indicator exceeds  
$
1,000. At the same time, the highest wage level in 2020 was celebrated in Germany ($ 4090),  
France ($ 3923) and the Netherlands ($ 3096); more than $ 2,000 per month average wages  
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DOI: http://dx.doi.org/10.46925//rdluz.34.16  
in countries such as the UK, Spain and Italy. As a result, it can be concluded that the average  
level of wages in Russia is low and significantly differentiated from the level of European  
countries, with the gap varying from 2 to 7 times (Figure 5).  
Russia  
Germany  
France  
Italy  
Spain  
Great Britain Netherlands  
Czech  
Poland  
Portugal  
Republic  
Subsistence minimum, USD  
Minimum wage, USD  
Average salary, USD  
Source: compiled by the authors on the basis of data from Russia in numbers (2021).  
Figure 5. Comparison of the main indicators of living standards in Russia and individual  
European countries in 2020.  
Comparing the unemployment rate in Russia, which in 2020 was 5.5%, and in  
European countries, we can note the presence of a significant variation in the indicator. So,  
the lowest unemployment rate is in the Czech Republic, Poland, Germany and Great Britain,  
where the indicator does not exceed 4%. In turn, the highest level is observed in Spain, Italy  
and France, where the share of the unemployed population is more than 14%, despite the  
relatively high level of wages in them. This indicates that the problems in the labor market in  
these countries are caused by factors other than the level of wages and may be associated  
with limited labor supply.  
Considering the poverty level in the compared countries, it can also be noted that  
there is a significant variation in the indicator. Thus, the poverty level in Russia was 12.9% in  
2020, which is a fairly high value, but at the same time lower than the level of many European  
countries, such as Portugal, Poland, Spain and France. The lowest poverty rates are found in  
the Netherlands (less than 1%), Germany (1.6%), while the average is in Italy and the UK. At  
the same time, it can be noted that in some European countries, such as France and Italy,  
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despite the presence of high minimum and average wages, as well as a living wage, the  
unemployment and poverty rates are also quite high, which allows us to conclude that that  
poverty as a phenomenon is a multidimensional problem that requires an integrated  
approach. At the same time, the experience of countries such as the Netherlands and  
Germany shows that the formation of a low level of unemployment and poverty while  
ensuring high indicators of the average level of wages takes place (Figure 6).  
1
7.9%  
1
5.0%  
15.0%  
1
4.2%  
1
4.2%  
1
2.9%  
9
.6%  
5
9
.0%  
8
.5%  
7
.0%  
5
6
.7%  
.7%  
.5%  
5
.0%  
3
.9%  
3
.1%  
1
3.2%  
1
.9%  
.6%  
Russia  
Germany  
France  
Italy  
Spain  
Great Britain Netherlands  
Czech  
Poland  
Portugal  
Republic  
Unemployment rate, %  
Poverty rate,%  
Source: compiled by the authors on the basis of data from Russia in numbers (2021).  
Figure 6. Comparison of unemployment and poverty rates in Russia and selected  
European countries in 2020.  
Evaluating the quality of life index as a summary criterion of socio-economic well-  
being in countries, it can be noted that Russia has the lowest value of 5.31, while in the  
considered European countries this indicator varies within 6.66-7.94, which forms a gap at  
the level of 25-50%. At the same time, the highest value of the quality of life index is observed  
in the Netherlands and Germany, which occupy leading positions in all considered socio-  
economic indicators. In turn, the lowest values among the EU countries are noted in Poland  
and Portugal, but, however, they significantly exceed the level formed in the Russian  
Federation. As a result, it can be concluded that today in Russia the level of quality of life is  
rather low and significantly inferior to the level of most European countries, which is due to  
the existing socio-economic problems, the main of which is poverty and the trend towards a  
decrease in real incomes of the population in recent years (Figure 7).  
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1
0.939  
0.933  
.94  
0.92  
0
.891  
0.883  
0.893  
0.888  
0.872  
0.85  
0.824  
7
8
4
7
.38  
7
.21  
7
.04  
7.01  
6
.96  
6.96  
6.92  
6
.66  
5
.31  
0
Russia  
Germany  
France  
Italy  
Spain  
Great  
Britain  
Czech  
Netherlands Republic  
Poland  
Portugal  
Quality of life index  
Human development index  
Source: compiled by the authors on the basis of data from Russia in numbers (2021).  
Figure 7. Comparison of quality of life and human development indices in Russia and  
individual European countries in 2020  
The study of the human development index in 2020 in Russia in comparison with  
European countries revealed that in all the countries under consideration, in accordance with  
the adopted methodology, the level of the human development index is high, since it exceeds  
0
.800. At the same time, it should be noted that among all the studied countries, Russia has  
the lowest indicator of 0.824, while in the most socially and economically prosperous  
Germany and the Netherlands, the indicator was 0.939 and 0.933, respectively. Also, more  
than 0.9 human development index is noted in the UK, and within 0.85-0.9 - in the remaining  
of the considered European countries. As a result, it can be concluded that the level of socio-  
economic well-being of the population existing in Russia today is rather low in comparison  
with the level of the leading European countries.  
3. Discussion  
The problem of poverty is one of the most pressing and significant for many years in  
Russia and unfavorable economic factors of recent years have contributed to an even greater  
deterioration in the material situation of the population (Klimanov, 2020), as a result of  
which the poverty level, which was already at a sufficiently high level, has returned grow  
(
Malkina, 2016). Modern Russian society is characterized by significant social stratification,  
which tends to increase, as a result of which a significant part of the population continues to  
become impoverished, while the other continues to become more and more rich (Mikheeva,  
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2020). The indices of consumer expectations and consumer confidence over the past years  
have been negative values, which indicates the predominance of negative assessments of the  
personal financial situation by the population (Shuvalova, 2018).  
In addition, it should be noted that the very method of determining the “poverty line”,  
which allows the population to be graded by income level, is rather relative and does not  
correspond to the realities in Russia (Orlova and Lavrova, 2020). Today, the key indicator is  
the subsistence minimum, determined in accordance with the consumer basket, which,  
according to many researchers (Shirov, 2021; Pasechko and Sapronov, 2017), is nominal and  
does not correspond to the price level in the economy, as well as to all the basic needs of a  
modern person. As a result, the official poverty level in the country is quite high, despite the  
fact that only the population with the lowest income is taken into account in the calculation;  
despite the fact that a significant proportion of people have incomes, although higher than  
the subsistence level, but also low enough for a comfortable life (Slobodenyuk and Anikin,  
2
018). One of the solutions to the problem is the idea of switching to an unconditional basic  
income, which is being implemented as an experiment in Finland (Stefanova and Shchukin,  
017).  
2
The current situation in Russia, according to a number of authors (Bobkov and  
Odintsova, 2020; Korovkin, 2018), is caused, among other things, by problems in the labor  
market associated with a significant imbalance between supply and demand, as well as with  
the overall low cost of human labor for market. As a result, people often lack decent  
employment opportunities with adequate wages, especially in a number of occupations that  
are less attractive (Lialina, 2021). Among the factors, the most significant risk factors for  
working income poverty were: female gender, the number of household members, work  
experience at the current place of work, the presence of disability, unwillingness to work  
additionally, even if it will bring additional income, the availability of secondary special,  
vocational and technical education (Aslayeva et al, 2021).  
The situation is such that in the regions of the country the level of remuneration is  
formed differentially and is directly dependent on the socio-economic development of the  
territory (Parkhomchuk et al., 2021; Borovitskaya et al, 2019).The situation in the labor  
market is aggravated by the presence of territorial differentiation in the level of wages, which  
activates the processes of labor migration in the economy and thereby creates a shortage of  
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personnel in less attractive regions of the country (Mkrtchyan and Florinskaya, 2018). As a  
result, there is an increase in social inequality between the regions of the country, where the  
level of wages and living in general is observed in economic centers, while in the remote  
peripheral regions of the country the level of poverty is higher (Smirnyh and Polyakova,  
2020).  
Therefore, at the present stage, the central task within the framework of the strategy  
for the long-term socio-economic development of Russia is not only a qualitative increase in  
the level of well-being of the population, but also the smoothing of the emerging territorial  
interregional disparities in the level of wages (Berdiev et al., 2020). This will create a  
favorable living environment everywhere and thereby reduce poverty (Kolosnitsina and  
Filippova, 2017).  
Conclusions  
The problem of poverty is still one of the most pressing and urgent for modern Russia.  
Despite the outlined positive dynamics in the poverty level of the country's population in  
2018-2019, there was a decline again in 2020, due to the deterioration of the socio-economic  
situation against the backdrop of the coronavirus pandemic. As a result, the effectiveness of  
earlier measures within the framework of social policy has practically disappeared, and the  
poverty level has practically reached 13%, which in absolute terms amounted to 18.8 million  
people. Separately, it is worth highlighting inflation and the level of prices in the country:  
despite the systematic growth of the nominal average per capita income of the population to  
3
5.7 thousand rubles at an official low level of inflation, the situation is such that the real  
income of the population changes abruptly, and decreased by 4% in 2020 relative to the level  
of the previous year. All this indicates that there is no qualitative increase in the level of well-  
being of the Russian population, which is associated with the general unfavorable situation  
in the country. The deterioration of the financial situation is also confirmed by the results of  
sociological surveys of the population, as a result of which almost 40% of the respondents  
noticed a deterioration in their financial situation in 2020. In addition, in 2020, about 40%  
of the population noted a moderate increase in prices, and in 2021, more than 50% considered  
that prices increased significantly. Taking into account the fact that the real incomes of the  
population are decreasing, and the nominal ones are growing at a low rate, an increase in  
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DOI: http://dx.doi.org/10.46925//rdluz.34.16  
prices in the economy inevitably leads to a decrease in the level of material provision of the  
population, since there is a decrease in the volume of goods and services that can be  
purchased for a specific amount.  
In addition to negative trends in the sphere of financial support of the population,  
negative trends are also highlighted in the sphere of social policy. The systemic lack of  
financial support for such critical sectors as education and health care has contributed to a  
series of cuts in order to save limited resources. As part of the modernization program, the  
number of schools and higher educational institutions in the country has decreased, although  
the total number of secondary vocational organizations is growing. Also, one of the main  
trends at the current stage is the active development of private educational institutions,  
which is largely due to the inadequacy of the budget system to meet the needs of the  
population in educational services. At the same time, in the conditions of a decrease in real  
incomes of the population, a decline in demand for private educational services is also natural,  
due to their high cost. A comparative analysis of the main socio-economic indicators in  
Russia and European countries revealed the existence of significant differentiation. In terms  
of the subsistence minimum, the minimum wage and average wage, Russia occupies the last  
positions among the compared countries, and the differentiation in comparison with the  
most developed Germany is 2, 9 and 7 times for these indicators, respectively. The  
unemployment and poverty rates in Russia are not the highest in comparison with other  
countries, but they are higher in comparison with the most developed countries such as  
Germany and Great Britain. At the same time, it should be noted that these indicators cannot  
be considered unconditional and the only indicators for assessing the socio-economic  
situation, since in a number of countries where the level of unemployment and poverty is  
nominally higher, such as in France and Spain, the general level and quality lives are more  
auspicious. This is confirmed by a comparison of the indices of the quality of life and human  
development in the countries under consideration, where the lowest values are also noted in  
Russia. This indicates that the current socio-economic situation in the country is not  
favorable, and the standard of living remains rather low in comparison with European  
countries.  
The problem of poverty and low living standards at the current stage of the socio-  
economic development of Russia is becoming increasingly important, since the negative  
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DOI: http://dx.doi.org/10.46925//rdluz.34.16  
trends of the last year associated with the coronavirus pandemic have exacerbated the  
existing imbalances. As a result, the real incomes of the population decreased, there was a  
jump in the unemployment rate, as the pandemic dealt a significant blow to business. Under  
these circumstances, the role of the state and its participation in supporting the population  
and business is significantly increasing. However, the measures taken to date are mostly  
nominal and do not have a significant positive impact on the current situation. Support for  
the population in the form of lump-sum payments for families with children is more tangible,  
but it is practically nonexistent for business. The reduction in tax rates for the most affected  
industries, although it is a certain relaxation, is not the most necessary tool in the context of  
a crisis and the disruption of most production and economic ties, since the economy is  
inefficient and revenue is low or absent. As a result, the key task at the current stage is to  
reduce inflation and support the economy in order to ensure the rates of pre-crisis economic  
growth. The payment of benefits to the population cannot be permanent, therefore it is  
necessary to create all conditions for the formation of a favorable situation in the labor market  
and the possibility of obtaining a higher income. This, in turn, is directly dependent on the  
efficiency of business processes in the economy, in connection with which the current  
situation requires an integrated approach at the highest level, since the possibilities for  
further economic growth and development of the country depend on this.  
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