Russia's Poverty

Russia's elite likes to take pride in the new riches of Moscow. They claim that Moscow is comparable to Paris and London and New York. However, the true indicator of Russia's success (or lack of success) is the status of its villages. Moscow millionaires drive around in their Mercedes, but the main form of transportation in distant Russian villages are horse-drawn carriages.

In the research I conducted in the Komi Republic, the inequalities of Russian society are glaring. There is no natural gas and most homes are heated with wood burning stoves. Likewise, wells provide water and for most a cow or a goat ensured survival when salaries were not paid. Moscow might as well be in another country.

This reality is overlooked by the elites in Moscow. One GAZPROM commercial that was airing when I was in the Komi Republic features a wood burning fire heating some boiling water, replaced by coal and finally replaced by natural gas. The voice over informs viewers that GAZPROM is the future. However, this commercial overlooks the fact that much of Russia has no natural gas, even in regions that produce the natural gas and contribute to Russia's wealth. If anything, GAZPROM does not have much interest in ensuring that more Russians have access to natural gas for heating their homes: it is increasingly difficult for GAZPROM to meet the needs of all its clients both inside the country and outside. It is better for GAZPROM if rurual villages do not have access to natural gas as this leaves more gas for export to Europe.

The BBC features an in-depth piece that examines the two Russia's: the Russia of the oligarchs and the urban elite and the other Russia living in poverty.

To cite the article:

An hour and a half further on, off the main road and down a puddle-strewn bumpy track which nearly maroons the taxi on a mudbank, we arrive at the tiny village of Fedotova.

At first glance, it looks abandoned.

Some wooden houses have collapsed in on themselves. Others are sloping dangerously, and many have neither roof nor glass in the windows.

In the distance, we see two old people lugging plastic buckets to a well: clearly there is no running water.

It turns out that 20 years ago, this used to be a thriving village with two shops, a club and 85 families.

But when the collective farm went bust, all the jobs went.

Now just 12 houses are inhabited and the only regular link with the outside world is a weekly bread van.

Otherwise the villagers, who live on their own produce, chickens and goats and by selling honey and berries at the market, have to walk the 4km to the road on foot.

This is not the exception, rather it is typical of most of Russia including the Komi Republic. Little wealth is reaching villages and the poor. The main improvement in recent years is the fact that pensions are paid on time. Quite often, a pension is the only source of cash for families. Too often, rural villages are marked by unemployment and alcoholism.