There is a a 16.8-fold gap between the richest 10 percent of the Russian population and the poorest 10 percent. The sign reads "Give dough for booze."
Photo: Vasily Shaposhnikov
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Economic Growth Favors the Rich
The income gap is growing in Russia, in spite of higher government social spending. New data released by Rosstat, the state statistics service, for 2007 show a 16.8-fold gap between the richest 10 percent of the Russian population and the poorest 10 percent. That is the highest level in three years. Experts note that non-earned income, such as dividends, interest and income from real estate, which is growing much faster than salaries and is taxed at a lower rate, is playing a more important part in the income structure of Russia's super-rich.
Rosstat recently recalculated the income gap in 2006 and raised it from 15.3 to 16 percent. There was some good news in 2007 as well. The portion of the population with incomes of less than 3500 rubles per month, which was 23.3 percent in 2005, dropped from 16.1 percent in 2006 and to 11 percent in 2007. The gap between the 10 percent of highest-paid workers and the 10 percent of the lowest shrank from 25.3 times in 2006 to 22.1 times in 2007.
Pensions grew by 3.8 percent in 2007, compared to 5.1 percent in 2006.
Natalia Tikhonov of the Russian Academy of Sciences Institute of Sociology says that the comparisons being made are too board for Russia. Those in the top 10 percent may still economize on such items as meat, she says, adding that the picture derived from the comparison of the top and bottom 5-percent incomes groups is even more extreme.
www.kommersant.com
All the Article in Russian as of Feb. 12, 2008
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