Russia’s New Problem-Poverty, sociology homework help

Russia’s New Problem—Poverty

Prior to the dissolution of the Soviet Union in 1991, most people had a place to live and food to eat ¾ for all means and purposes the system of resource distribution was working. Standards of living were below those in the West (particularly in housing) but daily life was predictable. The Soviet leadership was legitimately able to say that their form of socialism had succeeded in nearly eliminating the kind of poverty that existed in Czarist Russia.

But Russian citizens now live in different times. The country’s transformation to a more open economic system created a significant share of the population in poverty. A September 1997 census brief measured poverty in Russia as a household with income below 50 percent of the median, adjusted for household size and composition. It found that there had been an economic “free fall” during the transition from the economic system prior to 1992 in the decade that followed. For everyone, living standards fell: Within four years, real income had fallen to 60 percent of 1991’s level.

Who was hurt the most? Those with the equivalent of a high school education or less were twice as likely to be poor as those with more schooling. This finding may indicate that, in a more competitive society, levels of education become an important benchmark for economic success. Pensions, stipends for dependent children, and generally meager unemployment benefits gave the elderly some advantage over younger workers.

After 1995, signs of economic improvement began to appear. Still, the increase in poverty created a challenge that the Russian Federation continues to face even today.

Discussion Question:

1. The Russian Federation has succeeded in increasing its economic output. But, along the way, economic inequality has increased. How important is everyone being more or less equal compared to people being more unequal but with a higher overall standard of living?

In other words, what do you feel is a better society? One that has a high level of wealth and income inequality, but with a relatively high standard of living or one with a lower level of inequality but with a lower standard of living?