The restructuring of the distributive relations as necessary condition of socio-economic development of Russian regions

Abstract

The problems of inequality and poverty in the population dynamics are reviewed. Advantages and disadvantages of poverty indicators used in the statistics of the Russian Federation - in comparison with those in the statistics of the Soviet Union and the EU - are analyzed. A curve of income distribution in Russia in comparison with European standards is proposed. Particular attention is paid to the mechanisms of formation and redistribution of income from which only the rich layers of the population are currently benefiting. For the dynamics of income of the poorest layers of the population, a tendency to reduce is characteristic. To change the situation, institutional reforms in the sphere of distribution relations are required, as some groups have institutional advantages in comparison with others. I.e. it is necessary to change the view of backward and forward linkages of social inequality and socio-economic growth. For this purpose, we introduce the concept of the functional boundaries of income for different kinds of economic, social and demographic behavior of the population. Accordingly, the inequality should be divided into normal and excessive, in terms of the feasibility of human capabilities. Excessive inequality, in turn, can be surmounted by the introduction of progressive taxation.