Addressing Inequality Amidst Economic Growth in Russia

Abstract

The paper examines the complexities surrounding the expansion of highly profitable industries in Russia, shedding light on the nuanced relationship between economic growth, poverty alleviation, and income inequality. Contrary to conventional wisdom, the study reveals that the rapid growth of these industries has not translated into a reduction in the poverty rate nor has it effectively addressed economic inequality within the country. By examining the temporal dependencies of poverty rates in relation to the subsistence level and growth trajectories of natural monopolies, the research uncovers significant challenges in achieving inclusive growth and socioeconomic development. Moreover, the paper incorporates expert opinions on the impact of poverty on access to critical social services such as education, healthcare, nutrition, housing, and recreational opportunities. The findings underscore the need for a multifaceted approach to address the complex interplay between economic growth, poverty, and inequality in Russia. While the expansion of highly profitable industries holds promise for driving overall economic prosperity, it is imperative to ensure that the benefits are distributed equitably across society. Efforts to mitigate poverty and reduce inequality must be prioritized, with targeted interventions aimed at improving access to essential services and opportunities for the most vulnerable segments of the population. Additionally, the study highlights the importance of policy measures that promote inclusive growth and social equity, including measures to enhance social safety nets, improve labor market conditions, and foster equitable access to education and healthcare. By addressing the root causes of poverty and inequality and fostering an environment of shared prosperity, Russia can chart a path towards sustainable and inclusive development that benefits all segments of society.