Select Page

Russia Breaking News – President Vladimir Putin and Prime Minister Dmitry Medvedev have played the game of bad cop and good cop in their efforts to explain the essence of the pension reform to the people of Russia. Putin’s behaviour in relation to the prime minister looks unethical, just as it looks wrong in relation to his electors. It appears that Putin may eventually lose control of the patriotic idea – the only idea that still helps him stay in his office.

 

After the president’s televised address to the nation on August 29, it became clear that it was Putin who initiated the pension reform in Russia. This is evidenced by his harsh affirmation about the lack of alternatives to the reform. Until recently, however, Putin tried to distance himself from his government, which he had allegedly commissioned to develop and implement the unpopular reform. As a result, Medvedev failed to handle the psychological burden and disappeared from the public eye for a while. When he reappeared in front of the cameras, one could see him as a tired and sick person. Putin is being unethical towards his voters as well. Putin’s voter is commonly known in Russia as “vatnik”, who values Putin’s achievements in building the Russian world, limiting the influence of American globalism and oligarchic structures. During the above-mentioned speech, Putin referred to experts twice without naming them. Apparently, it goes about Alexei Kudrin, experts of the Higher School of Economics – liberal, pro-Western people, whom Putin’s voters despise. Thus, Putin has shown disrespect to his electors in a hope that people are ignorant and they do not need to know any names.

Addressing the nation with his speech, Putin said: “Even if we sell all buildings of the Pension Fund, the money will be enough only for a few months. And then what?” However, we understand that it goes about all the knick-knacks, apartments and plots of land that our fat officials, MPs and oligarchs have. Putin clearly gave it to understand that he would never rip epaulettes off their shoulders. As a matter of fact, we do not understand now what makes Putin different from late Boris Yeltsin, who also entrusted everything to “Chicago boys” and plunged the country into chaos. We can see Putin threatening us now that the system will not have money for pensions in six or seven years if everything remains the same. The first reason for the looming crisis, as Putin says, is demography. “In 2005, the ratio of working citizens, who replenish the Pension Fund regularly, and citizens receiving old-age insurance pensions, is nearly 1.7 to one, but in 2019,  it will be 1.2 to one,” Putin said noting that life expectancy in Russia had increased by eight years.

The trend is the same in Western countries. Robots continue to replace humans depriving them of jobs, but the pension system in the West is far from collapsing. In Western countries, the pension fund gets replenished through the growth in people’s wages and, accordingly, deductions to the budget. The most surprising thing is that such a system works identically in Russia too, although officials tend to conceal it in order to speculate on the topic of who feeds whom. Thus, the average Russian citizen during his work service of 20 years and an average salary of 40,000 rubles gives away about 2.4 million rubles to the Pension Fund. Russian male pensioners live for an average of eight years, during which they receive back only 1.600 million, and the state keeps the remaining 800,000 rubles in the budget. No one knows what that money goes for, although it is obvious that the state wants to take and spend even more….Read more