Tag Archives: Russian economic miracle

Another BRIC in the Wall: The Russian Economic Miracle Continues

More news from the ongoing Russian economic miracle:

Russia is the poorest performer within the BRICS group, with the government showing significant weaknesses in the area of steering capability. The country lags in terms of central government strategic planning capacity, effective interministerial coordination and implementation capacity. Given the prevalence of political patronage and clientelism, the lack of involvement of independent experts and other stakeholders, and frequent contradi[c]tions in the communication of policies, forward-looking policy-making in the sense of sustainable government is practically impossible in today’s Russia. Even the medium term holds little hope of improvement, as the Russian Federation is also the worst performer in the “organizational reform capacity” criterion which examines institutional self-monitoring and reform capabilities. In comparing structures for the involvement and participation of civil society, only China fares worse.

Full study at www.sgi-network.org/brics

Hence the need for all those “defense of traditional values” (i.e., fascist) sideshows.

Thanks to Nikolaus von Twickel for the heads-up.

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The (Continuing) Russian Economic Miracle

June 2, 2011
Alexandra Bayazitova & Maria Zhebit
The Average Russian’s Diet Is No Better Than a Soldier’s Wartime Rations

Starting tomorrow, the minimum [monthly] wage in Russia will be increased by 6.5% to 4,611 rubles [approximately 11o euros]. It will thus be higher than the current cost of the consumer basket: this minimum selection of basic foodstuffs is now priced at just over three thousand rubles in Moscow. True, the contents of the basket have remained unchanged since 2006 and, despite assurances by the authorities that living standards have grown over the past six years, the diet of the average Russian looks no better than that of a German POW in 1941.

In the last ten years, the minimum wage has grown thirty-two times. Under current law, the minimum wage should not be less than the subsistence minimum, i.e., the value of the consumer basket. Its content has remained unchanged since 2006.

The average Russian citizen, according to the authorities, should eat 366 grams of bread or pasta per day. At the same time, in 1941, the rations for a German prisoner of war, whether in a prison camp or in transit, was almost twice as much — 600 grams. In daily terms, the Germans received three times more fish, a bit more vegetables, and four times more “salt, tea and spices.”

On the other hand, the minimum rations of Russians now include fruit (63 grams per day), eggs and milk, which German POWs were cheated out of. Russians are also supposed to have twice as much meat; Muscovites, almost three times more. We can rejoice in the fact that the Russians should receive, according to the authorities, 40 grams more sweets than German POWs during the war, and consume 16 grams more vegetable oil. Although, in contrast to the Russia-wide basket, the rations of the Germans also included flour, tomato puree, and during the best periods, peas, beans, dried fruit, and coffee.

[Title: Food Norms in the Consumer Basket and the Prison Camp Rations of a German POW
Headings: Muscovite’s Basket (2011) // A Russian’s Basket (2011) // Ration of German POW (1941)
All quantities given in grams.
List of food types: Bread and pasta; vegetables and potatoes; meat; fish; sweets; vegetable oil; salt, tea, and spices
Sources: Federal Russian Law No. 332 from December 8, 2010;  NKVD, Directorate for War Prisoners and Interned Persons, Guidelines Bulletin No. 25/6519; Law “On the Consumer Basket in the City of Moscow, 2011-2012]

Editor’s Note. Thanks to the members of the Chto Delat mailing list for pointing out this eye-opening article. In this connection, one of them writes:

It should be added that the income of 13% of the [Russian] population (according to Wikipedia) is lower than the minimum wage (below the poverty line). That is, it is not the “average” Russian we’re talking about here. According to official statistics, “average” Russians have a monthly income of 24 thousand rubles [i.e., approximately 575 euros]. Official statistics have nothing to say about what remains of this average if we deduct from the total income of the population the share earned by the thirteen percent of Russians who are wealthy.


The Guardian
13 September 2011
Tom Parfitt
From Russia with lovage – Moscow leads gastro revolution
Middle-class Muscovites embrace food festivals and organic ingredients as city’s top chefs plan to expand into London

There was roast venison, ice cream made from black bread and beetroot, and a bar selling pints of pale ale. Such temptations, plus the promise of cooking tips from a slew of professional chefs, brought almost 12,000 people to Moscow’s Festival of Food last month.

The size of the crowds – three times the expected number – was testament to one thing: Russia is undergoing a gastronomic revolution.

“People are getting really sophisticated when it comes to food,” said Alexei Zimin, the festival’s organiser, in an interview this week. “When Russians go out these days they don’t only talk about cars and money, they talk about what they are eating.

“Fifteen years ago, 1,000th of 1% of the population regularly bought olive oil. Now it’s 1%. People are travelling abroad more, they know when a spaghetti carbonara is bad because they’ve eaten it at seven different restaurants and made it at home.”

The gastro-boom also involves the growth in the number of mid-market restaurants, a trend towards eating locally sourced produce, and the imminent expansion of “new Russian” cuisine into the west.

Zimin is editor of Afisha Eda, a slick food magazine which has become something of a bible for discerning Muscovites since its launch three years ago. At the festival in Gorky Park, a mile down the Moscow river from the Kremlin, Zimin held a masterclass on how to prepare shrimps with rosemary.

Visitors crowded around the stage, while stylish couples and families strolled through a nearby farmers’ market selling smoked duck breasts, goat’s cheese and organic vegetables. Other visitors joined long queues at field kitchens set up next to a boating lake by well-known city restaurants. Among them were Ragout and Bulka, two of a raft of new Moscow eateries that are neither smoky dives nor “elitny” hangouts for oligarch.

For now, the proliferation is confined to Moscow and limited to Russia’s slowly expanding middle class. Zimin, who trained as a chef in London, expects it to spread as wages rise and foreign travel becomes more accessible. “There is a big trend of restaurants opening that offer interesting food for sensible money,” he said. “It’s bistronomy; like the gastropub phenomenon in England.”

Foreign cuisine such as Italian and Japanese is especially popular but native dishes are also getting a makeover.

Russian cuisine is historically a bulky north European fare with an accent on boiled meat, soups and pies. Under Soviet rule the spiciest dining options were offered by Caucasian and central Asian restaurants. Yet even some of the hardiest of Russian recipes have been enticed into the realm of haute cuisine at Varvary (Barbarians) in central Moscow.

The high-end restaurant, owned by flamboyant chef Anatoly Komm sports blood-red chairs and the walls hung with traditional Vologda lace.

Offering the Guardian his own take on borscht – four melt-in-the-mouth duck livers and a perfectly spherical, hollow ball of smetana (sour cream) dissolved in a ladleful of beetroot soup – Komm said: “”I don’t do cafeteria food. After all, Tchaikovsky didn’t promote folk dancing, he wrote opera and ballet.”

Eighteen chefs at Varvary labour all day to produce a multi-course “spectacle” for 30 guests paying 8,500 roubles (£180) each. “In the beginning all my customers were foreigners but now at least 10% are Russians and I’m very pleased about that,” said Komm.

Several top chefs are planning steps abroad. Komm is exploring options in London, while the country’s most famous restaurateur, Arkady Novikov, is set to open two restaurants and a lounge bar on Berkeley Street in Mayfair, London, this autumn. Andrei Dellos is also launching a version of his Café Pushkin in New York.

In Moscow, one more sign of Russia’s food revolution is the appearance of businesses selling organic food via the internet. Companies suchas LavkaLavka and Ferma deliver lamb, eggs, cream cheese, vegetables and other products from farms near the capital.

In the absence of certification for organic foods, LavkaLavka gives detailed descriptions of each farmer and his or her property on its site.

“This is not just about healthy food,” said co-founder Boris Akimov. “It’s about tomatoes from farmer Ivan Novichikhin or butter from Nina Kozlova. It’s about money going to good people for good produce instead of being shovelled into the firebox of transnational companies that make who-knows-what, who-knows-where.”

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The Russian Economic Miracle

Deloitte, one of the largest financial consulting companies in the world, has predicted that more than 1.2 million people in Russia will become dollar millionaires by 2020. Russia currently ranks 16th on Deloitte’s World Wealth List, with 375,000 dollar millionaires currently living in the country, and will climb to 13th place in the next decade, Deloitte forecasted. Deloitte’s survey includes the 25 countries with the world’s strongest economies.

This year, the top-ten list of countries with the largest number of millionaires includes the United States, Japan, Germany, the UK, France, Italy, Canada, China, Spain and Taiwan. The list is not likely to change much by 2020, Deloitte predicted, except Spain and Taiwan are likely to be replaced by South Korea and Australia.

In Deloitte’s research, millionaires were split into three groups: those worth up to $5 million, $5 to $30 million and more than $30 million. Russia already ranks in seventh place on the list of countries with the largest number of the “richest millionaires,” whose assets are worth $30 millions or more, behind the United States, China, Germany, the UK, India and France. Moreover, Russia’s millionaires beat out their foreign competitors by the wealth that is concentrated in their households: an average rich family here has $2.1 million, putting Russia in fifth place behind Switzerland ($4.2 million), Singapore ($4 million), the United States ($3.7 million) and Hong Kong ($2.9 million). Additionally, following the hardship of the economic crisis, Russia ranks third in the world in its number of billionaires, behind the United States and China. Moscow has become the world capital of billionaires (79 billionaires) ahead of New York City (58 billionaires).


Meanwhile, a survey conducted by the Moscow Higher School of Economics (HSE) found that 60 percent of the population in Russia has the same real income it had 20 years ago when the Soviet Union collapsed, and some even became poorer. HSE’s research found that income inequality between the late 1980s and the late 2000s in Russia has grown eight times faster than in Hungary, and is five times greater than in the Czech Republic. At present, the Gini coefficient, a statistic that determines income and wealth inequality worldwide, is twice more in Russia than in Sweden, and equivalent to those in Iran, Turkmenistan, Laos, Mali and Nigeria.

— Svetlana Kononova, “A Country of Beggars and Choosers: The Number of Millionaires in Russia Will Grow in the Next Decade, While Income Inequality Will Remain on the Level of African Countries,” Russia Profile, May 16, 2011

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