Russian prime minister to reduce income gap

In 30 years, there will be an equal number of pensioners and working people in Russia.
Prime Minister Fradkov promises to minimize existing income gap among Russians.

One can clearly see a “major income differentiation among the population” in Russia. The difference between most wealthy and most poor people in Russia reaches 14-15 times. At the same time, noted Fradkov, “psychologically, such difference is twice as huge,” stated the prime minister during his meeting with members of the Chamber of Commerce, reports RIA “Novosti”.

According to him, such social issues are of major importance nowadays and seek immediate solutions. Huge income gap between well-to-do people and those whose income is way beyond the living wage constitutes the key problem these days. In Russia, such difference reaches 14-15 times. In Japanese corporations, for instance, difference between a top-manager and a regular employee constitutes 5 times, informs AK&M.

That is why, according to the prime-minister, Russian government faces an important task these days. Its main agenda will be to diminish the existing income gap between the rich and the poor in the country (from 15 to at least 10), reports Prime-TASS.

“The time has finally come for the government to offer a real substantial social package to the public instead of mere promises,” remarked Fradkov. The package includes various social benefits, medicare and housing.

According to Fradkov, the government should pass certain legislation, enabling future development of competitive services in the social sphere of housing and communal management as well as education and medicare.

Russian small and average businesses in turn should play an important role in this plan. According to Mikhail Fradkov, small and average businesses in Russia should become one of the major factors contributing to the overall increase of economic competitiveness, reports RIA “Novosti.”

“Up until recently, government failed to engage in a dialogue with these second-degree companies (i.e. average/small businesses). However, these small businesses begin making their own weather in the country’s economy,” stated Fradkov.

According to him, up to 60% of all products of manufacturing industry are currently being produced by average size companies. “In case we do not wish our economy to be solely dependent on the outer factors, we should liquidate weaknesses by developing small and average size business in the country,” stated the prime minister.

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Author`s name Andrey Mikhailov