Compare the Salaries
National Research University – Higher School of Economics (Moscow) released the analysis of Russia’s economy for 2015. In Russian media outlets it’s being introduced by juicy and harsh headlines. The widely spread one is as follows: “Average salary in Russia has reduced reaching that of Belarus and Kazakhstan.” Russian state and political circles don’t hide that Western economic sanctions have left serious implications. Russian functionaries, surely, claim with irony that the U.S. president was mistaken, when stated in late 2014, that “Russian economy has been torn up.”
However, it’s impossible to hide real volume of economic crisis. Under about 2 times depreciation of Russian ruble Russia’s authorities went on by their hard economic policy, which transferred certain stability to the financial market. Thus, by its most direct way it seriously hit economic condition of population. During his last visit to the Crimea Russia’s Prime Minister was rather laconic regarding the issue of raising pensions. Medvedev replied, “There is no money.” And that’s all. Presently salaries in Eastern European countries—Poland, Romania, Hungary, Czech Republic, Croatia—are higher than in Russia. The Soviet Union throughout its existence was comparing its economic indices with those of Tsarist Russia (1913).
Only 40-50 years later the Soviet Union was able to exceed 1913. Currently for Russian economists 2012 is becoming an indicator, which the 1913 was for the Soviet economists. After 2012 by its salary rate Russia was a step back even from Eastern European states. In 2015 average salary in Russia comprised USD 558. From CIS member countries Kazakhstan is the closest to Russia by its USD 549 index. Azerbaijan follows it—USD 431, after which comes Belarus—USD 415. Upon latest official data of National Statistics (March 2016) average salary in Armenia comprises USD 388. If comparison with neighboring countries disappointed our reader, it’s worth comparing our average index with average qualitative salary. In Ukraine average salary comprised USD 190 in 2015. And in Russia it was possible to provide financial stability only as a result of fiscal policy, when contrary to depreciation, instead of raising salary-pension-subsidy the state even by the exchange of rubles started to shorten them in particular cases.
As a result, this year indices for Russia’s salaries were comparable to the data of China for 2011-12. Reduction of salaries is notable while observing Russia’s state salaries. This year average salary in Russia’s state structure comprised USD 2 thousand 307. Unfortunately, our statisticians don’t publish the difference of average salaries in state and private sectors. However, salaries of some state field are known and they may be introduced by comparing them to indices of Russia.
This year average salary of a RF State Duma MP comprised USD 1612. A RA MP gets similar amount—about USD 1375. Average salary of Russian Government staff is USD 2307. In fact, salary of RF Government staff is higher than that of the legislative body. The elite of Russian state structure (regarding salary volume) is considered RF presidential staff, where average salary comprises USD 3085. Strangely enough, Russia’s authorities at least are more transparent regarding wage rates. More transparent than our authorities. Salaries of the staff of the Government or the president aren’t being published. Thus, to those keen on making comparisons we offer to compare RF state salaries with that of RA president. It comprises about USD 1875.
According to the survey by National Research University – Higher School of Economics 55% of Russia’s families consider that their economic conditions have worsened throughout recent 12 months. Moreover, 38% state they aren’t able to make mandatory payments. 63% clarified that they aren’t able to repay communal expenditures. Russian economists also record that after 2012, for the first time in 2015 state structures started to postpone payment of salaries and pension-subsidies. Thus, allegations by Russia’s authorities that the process of economic decline is over, at least, are dubious.
By Ara Galoyan
