Issue ? 43. April 2014

Overcoming the Poverty: An Old Challenge for the New Times

Victor I. Kovalchuk — master’s student, Ulyanovsk State University.
E-mail: vi_ko1@mail.ru

Vladislava V. Slepova — Ph.D., Associate Professor, Institute of Economics and Business, Ulyanovsk State University.
E-mail: vlada_skuratova_73@mail.ru

The article addresses poverty as a phenomenon caused by institutional imperfections of resource distribution system, which allows the concentration of resources on the basis of political, rather than social and economic expediency. It is noted that the attempt by the state to eliminate itself from the process of resource distribution increases the level of poverty. The European example shows that a more effective utilization of the economic bases of the society can be achieved not only through privatization, but also through the opposite process of deprivatization. The authors analyze the experience of the People’s Republic of China in using an active anti-poverty policy. Several proposals on solving the poverty problem in the Russian Federation are brought forward.

Keywords

Poverty, precarisation, low cost of work, deprivatization.