Some features of the crisis of 2014-2015

Many authors define the current economic conditions in Russia as a developing structural crisis. However, the crisis of 2014 - 2015 is not confined to economic relations alone. In this regard, the social sphere is more critical, since it is already seriously affected by the economic downturn. The decline in real wages accounted for almost 10 percent relative to 2014, significant reduction of pensions, rising unemployment, concealed unemployment, in particular. 22 million Russian citizens have incomes below the poverty line. Opportunities for private households to self-sustain also reduced. Self-employed informal trading ("shuttle business") vanished, unable to compete with retail chains. Private subsidiary farming in the suburbs was largely replaced by country cottages. City markets are being pushed out. Many small businesses closed due to the increase of taxation. Officials claim that the Russian economy bottomed out in autumn 2015. However, the problems that caused the crisis were not resolved. Improving the growth rate is insufficient. The current conditions require growth at a completely new level that will overcome structural disparities. The Russian economy remains resource-based, and this trait has become more apparent lately. Labor productivity is low and its growth rates are dropping. State companies inflate the prices. Capital consumption has reached 50 percent. Retirement burden is constantly rising and this trend will remain. Consequently, the current crisis is not only a structural crisis, but also a crisis of the Russian social and economic system. It can be stated that government actions are currently ineffective. It is unable to renew our economy and solve social problems. The current system prevents great masses of population from participating in public and political life. This leads to a growing distrust in economic and political power at different levels. The most severe consequence caused by the current system is the apathy of the people. In our opinion, it is for this reason the strike movement is diminishing despite the aggravating economic and social situation of workers. This set of problems should include the falling voter turnout at the federal, regional and municipal elections. Another problem is emigration from Russia. The concern is that emigrants are fulfilled, highly qualified and young. The number of emigrants is increasing.

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