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National Interests: Priorities and Security
 

Institutionalization of poverty in Russia: Is it possible to curtail the process?

Vol. 12, Iss. 3, MARCH 2016

PDF  Article PDF Version

Received: 23 November 2015

Received in revised form: 23 December 2015

Accepted: 11 January 2016

Available online: 29 March 2016

Subject Heading: ECONOMIC POLICY OF THE STATE

JEL Classification: A13, A14, D03, E03

Pages: 67-78

Shakhovskaya L.S. Volgograd State Technical University, Volgograd, Russian Federation
mamol4k@yandex.ru

Klimkova K.O. Volgograd State Technical University, Volgograd, Russian Federation
klimkova-ksenia@mail.ru

Importance Poverty plays a prevailing role in the Russian economy not only as a social disease, but also as the population behavior example and factor impacting many important indicators of the country. This article considers the notion of poverty in terms of an institutional approach.
Objectives We conduct our own comprehensive research into the institutionalization of poverty in Russia; elaborate an absolutely new strategy for socio-economic development, which will be oriented at poverty prevention and countering its reasons in the Russian Federation.
Methods The research involves methods of logic and statistical analysis.
Results The Volgograd oblast counters the poverty in an unsatisfactory manner, insufficiently using the region's opportunities for improving the population's living standards. The formation of the anti-poverty institutional mechanism in Russia and the Volgograd oblast, in particular, mainly focuses on the activities of public associations, foundations, banks' microfinance for businesses, provision of student loans, assistance in the youth employment and professional retraining as part of employers' social responsibility.
Conclusions and Relevance As an absolutely new strategy for socio-economic development is elaborated, the main anti-poverty mechanisms and aspects should pursue legalizing shadow markets, formation of the middle class in terms of ownership, development of individual entrepreneurship; growing the strong civil society in regions.

Keywords: poverty, institution, society, income, poverty level

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