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RIA Novosti
The MoscowTimes
CDI



November 9, 2005
What should Russia do to improve living standards?
Gazeta

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Excerpt from Debate re Russia 

Russian Citizens Trust The State More Than Their Own Strength

Author: Liudmila Novikova

Summary prepared by Hayk Sargsyan of CDI

A nationwide poll done in October by the ROMIR Monitoring agency, with 1,600 respondents in over a hundred locations, shows less than a third of respondents believing that their living standards could be improved by developing small and medium business in Russia; most respondents cling to old habits and rely on assistance from the state.

Only 13% of respondents say that support and development of small and medium-sized business is the top-priority task for the purpose of raising living standards. Only one respondent in ten (11%) believes that the people's prosperity can be improved by means of tax cuts; this opinion is most commonly found among residents of major cities (24%), high income earners (24%), and people aged 18-24 (25%). Meanwhile, a fifth of respondents (20%) say that raising living standards primarily depends on the social policy of the authorities. The older the respondents, the more likely they are to rely on social welfare guarantees. For example, 48% of respondents over pensionable age say that their living standards depend directly on increases in pensions and other social welfare payments; a quarter of middle-aged respondents say it is necessary to raise the wages of state-sector workers.

A further 11% of respondents say the state should order more products from industrial enterprises; 6% say that Stabilization Fund money should be distributed to those most in need; and 5% say living standards could be raised by attracting more Western investment. Analysts describe these poll results as understandable.

Igor Nikolayev, director of the strategic analysis department at FBK: "The dependency mindset is still very strong in our country. It can't be disregarded - after all, we're all the products of socialism. If the state is able to do so - and at present it is - it ought to strengthen its social policy. After all, raising the wages of state-sector workers will also prompt private sector employers to raise wages for their workers." However, Nikolayev says that socialist principles will fade away over time. "Entrepreneurs who succeed through their own efforts will always serve as vivid examples to others."

Translated by Ewgeniya Ryzhikova



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