The World Bank has proposed a new national plan to eliminate poverty in Russia, which will be more economical and effective.
“Many of the World Bank’s recommendations have been implemented in practice. In particular, expanding the beneficiary team, conducting a comprehensive needs assessment, distinguishing the payment amount of individual support measures, and establishing unified support rules,” RBK Press service of the Ministry of Labor and Social Protection.
When asked whether the World Bank discussed its ideas with the Russian authorities, a representative of the International Institute told reporters: “We have disclosed everything that can be made public. Keep our private communications secret.”
The World Bank stated that the Russian government has set a goal of reducing the poverty rate to 6.6% by 2030, but if current conditions continue, this goal “still cannot be achieved.” Apurva Sangi, World Bank’s chief economist in Russia, said that it is necessary to reform the aid system for the poor and achieve significant economic growth.
According to the next (semi-annual) World Bank report on the Russian economy released by the World Bank on May 26, although the current Russian social assistance system is expensive, the effect is not enough. In particular, it is pointed out that from the fact that the poor before the pandemic received only 10% of payments in all social assistance frameworks, it can be judged that providing assistance to poor countries is not a priority for the Russian state.
Rosstat reports that by the end of 2020, the poverty level is 12.1% (17.8 million people below the official poverty line). By 2020, the impact of the pandemic will be mitigated through compensatory social support measures, which will even help reduce the poverty rate from 12.3% at the end of 2019. The World Bank predicts that by 2021, based on the “cumulative effects of economic growth and changes in social support measures (assuming targeted implementation of newly announced measures), the poverty rate may drop to 11.4%.” The organization predicts that, based on its benchmark forecast, Russia’s GDP will grow by 3.2% in 2021.