World Bank recommends GMI to reduce the poverty rate in Russia

by | Mar 26, 2021 | News

In Russia, as in many other countries, social benefits do not always reach those who need them. The problem has existed for a long time, and during the pandemic the number of poor people has only increased.

In an article on 11 February 2021 in Forbes Russia “A New Contract: how to reduce poverty rate in Russia”, the Director and Resident Representative of the World Bank in Russia, Mr. Renaud Seligmann, analyzes the possibilities of introducing a “minimum guaranteed income” in Russia.

“A common solution to the problem could be the implementation of a minimum income program that would combine cash payments to recipients with other tools, primarily providing motivation to work… At the same time, monthly payments should provide a living wage for each family member… Such a program, based on the income needs assessment and family assets, can be quickly deployed on a national scale.”

According to the Federal State Statistics Service, a little more than 60% of the population receive various types of social support, but about 16% of the poor are not covered by any social programs at all. These flaws are due to the archaic nature of the state social protection system, as well as extremely backward and conservative means testing mechanisms. Many citizens do not have an elementary understanding of the types of social assistance. In the age of high technologies, other acute problems are highlighted – the level of information equipment, the lack of new methods of work, the imperfection of the means testing mechanisms used, the confusion of legislation in the social sphere, as well as the level of information literacy of the population.

Today at the federal level 3.2% of GDP is spent on social benefits. The World Bank provides the results of economic modeling based on Federal State Statistics Service data on the implementation of a phased program of minimum guaranteed income of citizens. The program would cost, according to their estimates, about 250 billion rubles, or 0.3% of GDP. Its introduction in the future will improve the situation and reduce, in their opinion, the scale of poverty by about 60%.

Although this is not a ‘basic income’ according to the BIEN definition it would represent a huge step forward in social protection in Russia.

Basic income Russia Tomorrow

Full text of the article in Russian: https://ubiru.org/2021/02/12/minimalnyj-garantirovannyj-dohod-kak-snizit-uroven-bednosti-v-rossii/

Forbes Russia: https://www.forbes.ru/obshchestvo/420735-novyy-kontrakt-kak-snizit-uroven-bednosti-v-rossii?utm_source=telegram&utm_medium=social&utm_campaign=v-rossii-kak-i-vo-mn

Russia: Russian universities are embarking in UBI discussions

Russia: Russian universities are embarking in UBI discussions

by | May 1, 2019 | News

Speaking panel at the Lomonosov Moscow State University.

There is a growing interest about basic income in Russia, at least on the academic level. Leading Russian Universities have been organizing discussions around the issue, with the support and participation of the movement Basic Income Russia Tomorrow. Given the world-leading recognition Russian universities enjoy, this may be a fact of central importance for the global development of the basic income movement.

On the 18th April 2019, at the Lomonosov Moscow State University and the Dispute Club Association of the Russian Economic Think Tanks (“Economic Policy Nodes”) held a discussion entitled “Is universal basic income tribute to populism or social policy of the future?”. PhD in economics Evgeny Gontmakher and leading Scientific Associate Yury Kuznetsov held the debate, after the introduction of Alexander Solovyev, chairman of the Basic Income Russia Tomorrow group. A local video footage of the event was captured, and can be viewed here (in Russian).

Just a few days later, on the 25th April 2019, at the Plekhanov Russian University of Economics, another event took place, as a part of the International Scientific – Practical Conference IX “Abalkin`s Readings”. At this Conference, basic income was discussed in a section entitled “Mechanisms for improving the system of labour relations”, chaired by professors Vyacheslav Bobkov and Irina Soboleva.

Russia: A short-term basic income experiment starts in Russia

Russia: A short-term basic income experiment starts in Russia

by | Apr 17, 2019 | News

The Social movement “Basic Income Russia Tomorrow”, together with the charity foundation “Coordinates of Good”, were awarded the Wow Successful Awards 2019, in the Social Innovation chapter, on the 13th of March. This award means the movement will be able to make unconditional cash transfers for five recipients, for three months. The value transferred will be small – 6500 rubles/month (around 100 $/month) – and for a very short period of time, but such an amount can be significant for many Russians. The money involved in the experiment is the result of private donations.

This short-term unconditional cash transfer experiment starts now, in April 2019, and will be monitored by Vyacheslav Nikolaevich Bobkov, from the Institute of Social and Economic Studies of Population at the Russian Academy of Sciences.