The Eurasian Knot

Livin’ on the Russian Poverty Line


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Who is leading the tandem dance? Is it Medvedev’s or Putin’s turn this week? The answer to who is at top in Kremlin Inc. is superfluous to those who live at Russia’s poverty line. Like in most places, the little guy is mostly a creature for cardboard cut out used for political rhetoric and posturing to those inhabiting the commanding heights. For the class conscious lumpen, it’s not who’s dancing that matters. It’s the dance itself. Each twirl, dip, side step, or skip is another assurance that the Russian elite will remain prosperous and the Russian prols will have to continue fighting over the scraps that trickle down.
For those living at the very bottom of Russian society, that trickle down is a fine mist. With costs of food, energy, and other staples rising that mist is leaving many Russian more and more parched. All the Russians can take comfort in is that they are not alone. With food riots in Haiti, Bangladesh and Egypt, fuel costs hitting pocket books the world wide, and a commodities bubble fueling the shebang, one can only wonder what will come next. For the Russians, its a sign that being part of the globalization block party isn’t all that it’s cracked up to be. Medvedev may pirouette and motion to West as the source for the despair all he wants. But the nature of the economy can no longer be thought of in terms of states or even regions. It’s all connected making the latest global economic crisis structural in nature.
With rising inflation in Russia (up 5.3% in the last three months), those living at the poverty line are forced to make it by with less. According to the Russian State Department of Statistics, Rosstat, the minimum subsistence level in Moscow is 62 Euros a month (or about 95 in sinking dollars terms) . This is supposed to cover food, clothes, housing utilities, and transportation in the capital. As of 2006, 21.6 million (15.3%) of Russians live below this threshold. Just to add some perspective, a recent figure says that there are 131,000 millionaires in Russia. That’s about sixteen impoverished Russians to every one millionaire. Sixteen live on what every one minigarch throws down for decent sushi. Can living in Moscow on 62 Euros a month be done? If so, how?
For answers we have to turn to Polit.ru journalist Liz Surnacheva, who recently pulled a Barbara Ehrenreich to see if the seemingly impossible is indeed possible. She chronicled her travails in a three part series on Open Democracy. The latter recently teamed up with Polit.ru to provide a bit more comprehensive coverage of the Russian scene for the English reader.
In part one, Surnacheva quickly finds that Rosstat’s statistical “shopping basket” and what is actually possible to do with it are two different things. Also, she finds that livin’ on the line is not just about cheap food, its more about what one has to do to first find it and then not getting screwed over when you get it. Kiosks are cheaper, though you run the risk of getting cheated. Prices at supermarkets are “catastrophic.” “From now on,” Surnacheva writes, “everything that saves time is out: nothing oven-read...
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The Eurasian KnotBy The Eurasian Knot

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