After the Russian president Vladimir Putin’s televised address to the nation on August 29, it became clear that it was Putin who initiated the pension reform in Russia. This can be proven by his harsh affirmation regarding the dearth of alternatives to the reform. till recently, however, Vladimir Putin tried to distance himself from his government, that he had allegedly commissioned to develop and implement the less-traveled reform. As a result, Medvedev did not handle the psychological burden and disappeared from the general public eye for a short time. once he reappeared ahead of the cameras, one might see him as a tired and unfortunate person.
Putin is being unethical towards his voters similarly. Putin’s citizen is often acknowledged in Russia as “vatnik”, values Putin’s achievements in building the Russian world, limiting the influence of yankee globalism and form of government structures.
During the above-named speech, Vladimir Vladimirovich Putin brought up consultants doubly while not naming them. Apparently, it goes regarding Alexei Kudrin, consultants of the upper faculty of economic science – liberal, pro-Western individuals, whom Putin’s voters contemn. Thus, Vladimir Vladimirovich Putin has shown disrespect to his electors in an exceedingly hope that folks square measure ignorant and that they don’t got to recognize any names.
Addressing the state along with his speech, Vladimir Vladimirovich Putin said: “Even if we tend to sell all buildings of the Pension Fund, the money are enough just for a couple of months. then what?” but, we tend to perceive that it goes regarding all the knick-knacks, flats and plots of land that our fat officers, MPs and oligarchs have. Vladimir Vladimirovich Putin clearly gave it to know that he would ne’er rip epaulettes off their shoulders.
As a matter of truth, we tend to don’t perceive currently what makes Vladimir Vladimirovich Putin totally different from late Boris Yeltsin, UN agency conjointly entrusted everything to “Chicago boys” and plunged the country into chaos. we will see Vladimir Vladimirovich Putin threatening America currently that the system won’t have cash for pensions in six or seven years if everything remains an equivalent.
The first reason for the looming crisis, as Vladimir Vladimirovich Putin says, is sociology. “In 2005, the quantitative relation of operating voters, UN agency fill the Pension Fund frequently, and voters receiving Social Security pensions, is sort of one.7 to one, however in 2019, it’ll be one.2 to one,” Vladimir Vladimirovich Putin aforementioned noting that anticipation in Russia had magnified by eight years.
The trend is that the same in Western countries. Robots still replace humans depriving them of jobs, however the pension system within the West is way from collapsing. In Western countries, the pension fund gets replenished through the expansion in people’s wages and, consequently, deductions to the budget. the foremost stunning issue is that such a system works identically in Russia too, though officers tend to hide it so as to take a position on the subject of UN agency feeds whom.
Thus, the typical Russian subject throughout his work service of twenty years and a mean wage of forty,000 rubles offers away regarding a pair of.4 million rubles to the Pension Fund. Russian male pensioners live for a mean of eight years, throughout that they receive back just one.600 million, and therefore the state keeps the remaining 800,000 rubles within the budget. nobody is aware of what that cash goes for, though it’s obvious that the state needs to require and pay even additional.
It is merit note that once speaking regarding the expansion, Vladimir Vladimirovich Putin refers to Russia throughout the Nineties. Why not compare indicators of the year 2018 to 2014, once the West started imposing sanctions on Russia one once another, and therefore the Russian economy started rolling down the hill?
Putin dismisses all different proposals for finance the Pension Fund. He failed to mention the modification on the progressive scale of taxation, though there was such a proposal created at the hearings within the State Duma on August twenty one. that cash may well be accustomed compensate entrepreneurs for his or her contributions to the Pension Fund to support individuals of pre-retirement age.
Putin doesn’t wish to draw in oil revenues to finance the Pension Fund either. in step with him, this cash won’t be enough to pay pensions for as very little as 2 months. Yet, oil revenues represent a supplementary, instead of the sole supply of financial gain for the Pension Fund. “What if oil costs go down?” Vladimir Vladimirovich Putin says. Indeed, the govt. would then got to realize how to extend aggregation from different sources.
For comparison, the deficit of the Pension Fund in 2018 can quantity to 257 billion rubles, whereas cyberspace outflow of capital in 2017 was thirty one.3 billion bucks, that is regarding one trillion 966 billion rubles. The National Welfare Fund holds four trillion 844 billion rubles. Gazprom’s profit is evaluated at 997 billion rubles. The profit of Russia’s largest state-run bank, Sberbank, is 542 billion rubles. The Russian shadow economy is evaluated at thirty three.6 trillion rubles, or thirty-nine p.c of value, aforementioned business investigator Boris Titov.
Therefore, all of the measures that Vladimir Vladimirovich Putin voiced in his speech look superficial. we’ve a control that each one of the “gifts” that Vladimir Vladimirovich Putin mentioned in his speech had been enclosed within the reform before. Obviously, the inflation can eat up the secure addition of one,000 rubles p.a.. Vladimir Vladimirovich Putin speaks a couple of pension of twenty,000 rubles by 2024, whereas in Europe, pensions conjure forty p.c of what people get throughout their work service.
One will solely guess why Vladimir Vladimirovich Putin takes such a foothold. Probably, this can be because of the overwhelming external pressure. If Vladimir Vladimirovich Putin had tried to clarify that, individuals would have in all probability understood. Instead, they saw their president egg laying the burden of responsibility for the longer term of the country on the population. Vladimir Vladimirovich Putin doesn’t feel guilty for the actual fact that Russia has not been ready to amass enough cash throughout the 2000s to finance social programs ANd build an freelance national economy. He doesn’t feel guilty for showing lean resistance to the shadow economy and corruption. Instead, he was attempting to return to terms with oligarchs. AN agreement with them has clad to be additional vital for him than AN agreement with the individuals.
Putin’s voters need a robust social state that may with success support the policy of the Kremlin from the within. The living customary in Russia has been decreasing for the last 5 years, and Vladimir Vladimirovich Putin needs his electors to pedal back. Putin’s rating might eventually collapse, and therefore the president can lose management of the concept of nationalism that he has been talking regarding for thus long. individuals can feel humiliated and betrayed once they realise that their president song to them.
Read article on the Russian version of Pravda.Ru