Social Security, Labour Market and Restructuring: Current Situation and Expected Outcomes of Reforms

The paper focuses on the social safety nets in Russian Federation and Ukraine in the view of changes on the labour market since the beginning of economic transition. We showed that many past phenomena (e.g. restructuring of the economy, wage and pension arrears, new groups at-risk-of-poverty, demographic transition) caused a need to change an old type social safety net (SSN) into the new one, better adapted to emerging more liberal economy problems. Additionally, we analysed some gender specific issues related to social security that are caused mainly by inequalities in the labour market. Differences of earnings between men and women in Russia caused by sector segregation account for seem to be more important than the gap between gender earnings attributed to the position. In Ukraine the main contributors to gross gender differential of log earnings (that equals to 32%) explained by our model are sector segregation and occupation. We also pointed out to future policy challenges in the area of social security systems in both countries. The retirement reforms introduced recently are a step in the right direction, although their impact will not be felt for a number of years. Other reforms, with more immediate results, are necessary. Social safety nets should be made more efficient and social benefits should be better targeted

The Savings of the Population and Domestic Sources of Economic Growth in Russia: Results of Experimental Studies.

This article presents the results of an academic project carried out by order and with the financial support of the Central Bank of the Russian Federation.>sup>1>/sup> The project is devoted to a broad-scale study of the savings of the Russian population to obtain information that existing state statistical bodies do not possess, either in the area of state accounting or in the area of selective observations. The project was made necessary, on the one hand, by the growing significance of the multi-dimensional problems of the savings of the population, and on the other, by the >i>de facto>/i> absence of sufficiently complete and adequate information in this area.>sup>2>/sup> This research was done to clarify just what is happening with the income and accumulations of the population, and to show a way out of the seeming contradiction whereby the real standard of living of ordinary people is clearly and invariably declining even while the purchase of automobiles and currency and the construction of private residences (especially around Moscow) seem to be increasing.

A Key Problem of the Transition Period

The development of the national economy in the past year shows that the nation's economy is in a difficult state and that no improvement is as yet in sight. Many key indicators for nine months of 1989 rose insignificantly compared with the same period in the preceding year (gross national productby 3.6 percent; produced national income2.4 percent; productivity of social labor2.2 percent; industrial output2.2 percent), while some even declined (new housing, freight shipment).

The System of Pension Security

The history of the pension system in our country began with the victory of the Great October Socialist Revolution, which opened the way for the creation of such a truly democratic state institution as social security for those who are unable to work.

Everything for People?

For the sake of justice it must be said that the slogan "Everything for People" is now heard less often than in years past, because we are becoming accustomed to the truth and life to date has been such that these words almost always lack real content. But at congresses of people's deputies and sessions of the new parliament, at meetings, especially during the recent strikes, there were increasingly loud and insistent demands from people who are tired of waiting for the promised goods, who are tired of struggling for a better life, and who want to feel changes for the better now, not in the distant future. These sentiments are also clearly discernible in the editors' mail.

Distributive Relations and Social Development

Two seemingly totally unrelated problems relating to various aspects of development of social relations under socialism are named here. But they are intentionally presented under the same heading since in reality they form an integral whole.

The Structure of Personal and Social Consumption in Socialist Countries

A characteristic feature of developed socialist society is that it deals with a broad range of socioeconomic problems relating to the improvement of the people's well-being. Of great importance in this connection are studies of the structure of the population's needs and consumption, the mechanism underlying their formation, and the dynamics of their development, which are necessary in order to determine the initial positions of five-year national economic plans, since the improvement of the people's well-being and the formation and development of the socialist way of life based on high rates of development of production are the key target of the socioeconomic policy of the socialist state.

Using Mathematical Models and Electronic Computers in Economic Planning Calculations for Wages Income, and Consumption

A vast program for raising the people's living standards is being implemented in our country. Within the Seven-Year Plan period (1959 to 1965) the consumption fund in the national income of the USSR will increase by approximately 60 billion rubles. Grants and benefits to be paid from the state budget and the funds of enterprises will increase by 14.5 billion rubles. Additional expenditures connected with reducing the length of the working day as well as adjusting wages and raising their minimums will exceed 10 billion rubles, and the sum to be gained by workers and employees from the abolition of taxes will amount, if calculated for 1966, to 7.4 billion rubles a year.

On Improving State Assistance to Families with Children

A more efficacious social policy, including state assistance to families in the material support and rearing of children, has become very urgent in connection with the necessity of accelerating economic and social development.