The present paper focuses on identification of relative “poverty line” and a threshold of high poverty risks. The paper also studies key poverty factors in contemporary Russia. It demonstrates that the relative approach to poverty which is widely used in Western countries is applicable in Russia too. However, the relative poverty thresholds set at 0.5 and 0.75 medians per capita family income identify quite different groups of the poor. The threshold of 0.5 median income indicates deep poverty happened mostly to the unemployed workforce. The rel ative poverty threshold equal to 0.75 median income identifies the poverty of the elderly who are not considered as the poor by the absolute approach because pensions of Russians has been recently equalized to the subsistence level. Above all, the paper provides econometric estimates of socioeconomic determinants of both absolute and relative poverty. It was revealed that the relative deep poverty of the working population was primarily caused by the “bad jobs” rather than “bad” human capital. Absolute poverty of workers is more or less determined by both factors.
This article analyzes state-owned companies and their place in the structure of market interactions in the context of modern approaches to the study of government failures and market failures, as well as the conditions of the system of private property rights rooting. Besides the general theoretical consideration of the costs of functioning of state-owned companies, the authors refer to the specific experience of the Russian economy, consistently analyzing the opportunities and palliatives of the current privatization policy, the experience of establishment and the risks of functioning of state corporations. Particular attention is paid to the problem of limited motivation to improve the institutional environment in general and, on the contrary, the expansion of the practice of direct government intervention in order to solve the problems of economic development. The authors also consider specific areas where there is a restriction of private property rights in connection with the expansion of the public sector, de jure and de facto.
The Russian system of state support for small and medium-sized businesses in its scope, forms and methods has reached the level of developed countries. This system set up the basis for the new wave of small businesses foundation, ongoing since 2008. But the continuing increase in the amount of small businesses is going along with reduction in the volume of their activities. The support offsets the lack of space for expansion of SMEs business operations. Zoom, forms and methods of support for SMEs is not adequate structure and institutional framework of the Russian economy.
The article analyzes the focus and effects of the main tools to support industrial enterprises in Russia: direct budget financing, tax relief, support of state development institutions. Based on the analysis of empirical data at the micro-level, we consider a typical “portrait” of the company — the recipient of state support. The main effects in the activities of companies that have received it are analyzed. We demonstrate that, on the one hand, resources are being allocated to innovative companies, exporting companies. On the other hand, there is a bias of state support to large companies, state-controlled firms, companies, oriented at the public sector. The latter may result from the less innovative activity of private companies (which, most likely, is a consequence of the worsened business climate), as well as to their caution in using state support due to the associated risks. All tools of state support contribute to the growth of company revenue, but at the regional level, support is more related to the task of stabilizing employment and preserving the output of products purchased by the state. We have revealed the most positive changes in companies that have received support from state development institutions. Tax incentives are a tool opened to “young” firms, for companies introducing innovative products that are new to the world — in this sense, they are complementary to other instruments and are essential for the formation of a holistic ecosystem.
This article seeks to answer the question whether Russian Arbitrazh (Commercial) courts tend to decide cases in favor of defendant versus plaintiff or state versus business. It was found that courts favors business entities in civil cases, while in administrative cases courts take decisions in favor of governmental bodies other things being equal. In addition, the plaintiff bias persists regardless of the type of the process. However, the plaintiff bias decreases with the rise of the case complexity. The article is based on the regression analysis of a random sample of 10 000 cases decided by the Russian Arbitrazh (commercial) courts in 2007—2011.
The paper is devoted to modeling the subject field of academic discipline basing on the case of accounting. It is shown that interdisciplinary approach, interpretative and critical studies, constructivist paradigm are now popular in accounting studies. In addition to traditional financial and organizational aspects, accounting, in the new interdisciplinary framework, is also studied as a socio-economic institution.
The article examines the features of the newest stage of the demographic evolution of Russia against the backdrop of other countries at similar stages of the demographic transition. It is shown that until recently, long-term demographic trends favored Russia's economic development, but now the country is entering a long period of unfavorable demographic changes for its economy. The cessation of the growth of the Russian population, the reduction in the working-age population and its aging, the increase in the dependency ratio will have a deterrent effect on the economic development and at the same time will make it more difficult to solve social problems. In particular, they will create greater problems for the pension system for people older than working age. The issue of using the migration resource to mitigate the negative consequences of demographic changes is being discussed.
The results of a rural survey in two Russian regions demonstrate that agriculture is no longer the main source of income for rural families. They are diversifiers, earning non-agricultural income through both non-agricultural wage employment and non-farm self-employment. The rural population is risk-averse, preferring relative security of wage employment to individual entrepreneurship. Although all respondents would like to earn more, they are reluctant to consider the option of changing their place of work and are afraid of losing their current job. It may be difficult for new profit-oriented employers to offer equitable solutions to all segments of the rural population without properly designed government support programs which furthermore should be targeted at the labor force of the future, i.e., the Russian youth.
Using different cross-country data sets and simple econometric techniques we study public attitudes towards the police. More positive attitudes are more likely to emerge in the countries that have better functioning democratic institutions, less prone to corruption but enjoy more transparent and accountable police activity. This has a stronger impact on the public opinion (trust and attitudes) than objective crime rates or density of policemen. Citizens tend to trust more in those (policemen) with whom they share common values and can have some control over. The latter is a function of democracy. In authoritarian countries — “police states” — this tendency may not work directly. When we move from semi-authoritarian countries to openly authoritarian ones the trust in the police measured by surveys can also rise. As a result, the trust appears to be U-shaped along the quality of government axis. This phenomenon can be explained with two simple facts. First, publicly spread information concerning police activity in authoritarian countries is strongly controlled; second, the police itself is better controlled by authoritarian regimes which are afraid of dangerous (for them) erosion of this institution.