[home page][map of the server][news of the server][forums][publications][Yabloko's Views]

The Guardian (UK), June 1, 2004

Russia's poorest face huge cuts in benefits
System supporting veterans, disabled people and pensioners to be swept away as Moscow reforms aim to cap compensation

Nick Paton Walsh in Moscow

Sixty years ago this month, a mine ripped through the righthand side of 19-year-old Yuli Fayershtein's body as he fought the Finnish on the Karelian front. Today the shrapnel from that blast still floats in his lung and arm.

Less than a year later, he was hit in both hands while liberating Vienna. Unable to shoot a gun - or even sign his name - he returned to Moscow a hero but unemployable.

For six decades, Mr Fayershtein has relied upon generous benefits: half-rent for his flat, free basic medicines and public transport travel, and discounts on food and telephone calls.

But last week, the Kremlin announced an end to this benefits system. Instead the estimated 102 million Russians who receive some form of privileges from the state, including the poor, veterans, pensioners and disabled people, will have these slowly converted to financial compensation. A total of 170bn roubles ($3.2bn) was put aside to plug this gaping hole in the state budget.

Yet Mr Fayershtein knows this will never be enough. He can calculate the cash cost of some of the things he now gets free, and this, he estimates, comes to 2,830 roubles ($53) a month. Then there is the cheaper food, the free annual holiday, train and plane journey, and the discounted utility bills. In exchange for these benefits, the Kremlin will give him 2,000 roubles a month.

"During the hardest time for Russia, immediately after the war, the metro was free for veterans," he said. "And now the state says it is wealthy from oil, and even has a budget surplus, [yet] they ask us to pay."

Asked how he will get by, he replies: "I do not know. There are some veterans I know who collect empty beer bottles just to get the deposit back. What will they do?"

Today, aged 79, he still has a job: working for the veterans committee, which is campaigning against the Kremlin's plan and on Thursday demonstrated near the Kremlin. "If I had enough money, would I still be working? No, I would spend my days sat on the grass."

The system of Soviet benefits - or privileges - is perhaps the last benevolent legacy of the Communist era. But to today's Kremlin it is a huge burden on state resources and the antithesis of the privatised Russia it wants to create.

From next year, between 14 and 17 million of the 102 million people receiving benefits will instead be given financial compensation. Preliminary figures show this will rarely exceed 3,000 roubles a month, and there are fears it will not be index-linked.

Galina Mihaleva, director of the Centre for Modern Politics Research, said: "Putin and the government declare the fight with poverty [is] their priority. But in reality they are pursu ing the social policies of the extreme right, depriving the most vulnerable elements of society of the minimal benefits they still have."

She added: "These measures hit the disabled, veterans and pensioners hardest, because in reality the privileges they have today are much bigger than the compensation the government is offering."

Viktor Tulkin, a hardline Communist MP, said: "These reforms are a new and tragic step in the road towards the state's refusal of its social commitments. Today's pensions do not even reach 60% of the Soviet average in 1989."

But Russia's bureaucrats, the million-strong army tasked with implementing the Putin reforms, will keep their privileges. A senior official can expect a $7,000 salary to be boosted by $3,500 in medical treatment, a chauffeured car and mobile phone bills to the tune of $1,000.

 

See also:

Social Policies

The Guardian (UK), June 1, 2004

[home page][map of the server][news of the server][forums][publications][Yabloko's Views]

english@yabloko.ru
Project Director: Vyacheslav Erohin e-mail: admin@yabloko.ru Director: Olga Radayeva, e-mail: english@yabloko.ru
Administrator: Vlad Smirnov, e-mail: vladislav.smirnov@yabloko.ru