[Financial Crisis and Poverty in Russia]

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Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

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ABSTRACT

In this study we try to explore the concept of financial crisis of Russia in a holistic context. The main focus of the research is on the Russian Economy and its relation with financial crisis of 1998. The research also analyzes many aspects of the Russian economy and tries to gauge its effect on the state. Finally the research describes various factors which are responsible for the financial crisis of Russian in 1998 and tries to describe the overall effect of crisis on the country's economy.

Table of Contents

ABSTRACTIV

CHAPTER 01: INTRODUCTION1

Background of the Study1

Purpose of the Study2

Problem Statement3

Objectives of the Study3

Significance of the Study3

Research Questions4

Limitations of the Study4

CHAPTER 2: LITERATURE REVIEW5

Determinants of Financial Crisis5

The New Government's Strategy to the Crisis10

Achievements of the Government Action17

Weak Financial System23

Diagnosis of the Situation and Predictable Scenarios27

CHAPTER 03: CONCLUSION36

Demonetized Economy38

The Face of Poverty41

Course on Poverty Reduction43

REFERENCES45

CHAPTER 01: INTRODUCTION

Background of the Study

Today, poverty is becoming an increasingly serious problem for those who are faced with numerous difficulties due to, for example, inadequate education, living in remote areas, and a large number of dependents. This change in specificity of the risks associated with poverty, a marked effect on social policy.

Analysis of panel survey data shows that half of Russian families in 1994-2003. Periodically provided below the poverty line, and 7% were in a state of chronic poverty. The turning point was 1998, when due to the financial crisis of poverty in Russia spread rapidly and reached unprecedented levels: by the beginning of 1999 more than 70 million people live on less than $ 4 a day in purchasing power parity. High rates of economic recovery, 1999-2002. Survived and now. As a result, during the period from 1998 to 2006, Russia's GDP increased by 57%, while real incomes - 65%. Unemployment fell from 14% in late 1998 to 8% at the end of 2003, reflecting an increase in employment of about 10 million people (almost 15% according to a survey of economic activity of the population) between 1998 and 2003. (Aghion 2000 38)

Economic recovery led to a marked decline in all poverty indicators. According to official statistics, the incidence of poverty since 1999 has consistently decreased. All-Russian monitoring of the economic situation and health of the population (RLMS) - the main alternative household survey gives a representative result on a national scale - showed that the proportion of Russian households categorized as poor indicators of per capita income and poverty level in 1992 in comparable prices fell from 38% in 1998 to approximately 10% in ...