Russia feeds the people and reduced poverty

For the first time since 2004, the proportion of the most economically disadvantaged Russians who are unable to afford basic foodstuffs has reached zero. The data in question were provided by Rosstat. It has been determined that all Russian families have sufficient financial resources to purchase food. What strategies enabled Russia to achieve such success? It is important to note that this does not yet signify a complete victory over poverty.
In 2023, for the first time since 2004, Russian households reported having sufficient funds for food, with 0.1% of families indicating otherwise. This represents a significant improvement from 20 years ago, when 4.4% of families reported lacking the necessary resources. The initial data set presented in the Rosstat study dates back to 2004.

The proportion of the population in the second poverty category has also declined. This includes individuals who have sufficient income to purchase food but face challenges in affording clothing and housing costs, according to Olga Belenkaya, head of the macroeconomic analysis department at the Financial Group Finam.

In 2023, 11.2% of such households were recorded, representing a decrease from 12.9% a year earlier. This figure contrasts with the 37% share observed 20 years ago and the 20.5% recorded in 2012.
The number of households with sufficient funds to purchase all desired items increased to 3.4% from 2.7% a year earlier. The proportion of families who lacked the financial means to purchase a vehicle, residential property or holiday home increased by two percentage points in 2023, reaching 36.6%.

The proportion of individuals unable to afford durable goods fell from 49.7% to 48.7%. Concurrently, approximately 0.1% of Russian families encountered difficulties in evaluating their financial position.
The data indicates a decrease in the level of extreme poverty in the country. This correlates with Rosstat data on reducing the poverty level in 2023 to 8.5% from 9% in 2022. Furthermore, 20 years ago this level reached 17.6%. Ms. Belenkaya attributes the reduction in poverty to two factors: the achievement of maximum employment and increased growth in wages. The unemployment rate is currently at a historical low of 2.6%, and there is an acute shortage of labour resources. In 2023, the average nominal salary increased by 14.6%, while the real increase was 8.2%. In sectors associated with the military-industrial complex and import substitution, wage growth has been more pronounced.
Other contributing factors to the reduction in extreme poverty include the increase in income over the past 20 years and social policy measures, such as the rise in the minimum wage and benefits linked to it, maternity capital, the indexation of pensions for non-working pensioners, social benefits, particularly for low-income families with children, payments to SVO participants and their families.

It is important to highlight the overall growth of the Russian economy, which has led to an increase in the well-being of the country's residents. Since 1989, the country's GDP growth has reached 30%. This contrasts starkly with the main period of poverty for Russia, which was observed precisely in the 1990s. Pensioners have consistently represented the most vulnerable demographic with low incomes. Since 1998, the lowest point in the economic downturn, pensions have increased by 2.7 times in real terms, and by 2.3 times since 2004. "The growth in well-being made it possible to satisfy the primary needs of the population," states Ilya Fedorov, Chief Economist at BCS World of Investments.
It is also noteworthy that the Russian authorities have identified food security as a key priority for the country's development. As a result, certain agricultural sectors have received substantial government support in the form of preferential loans, subsidies and benefits, with the objective of raising agricultural production to a qualitatively new level, ensuring self-sufficiency in food. It is not sufficient to simply cultivate a crop; it is also necessary to ensure its delivery to the consumer, maintaining the range, prices and quality.
The current figure is 44%, which is below the required 60% of domestic production. At the beginning of 2023, the country was provided with grain by 185.5%, vegetable oil by 221.1%, fish by 153.2%, sugar by 103.2%, meat by 101.6%, and dairy products by 85.7%. These figures were noted by Olga Lebedinskaya, associate professor of the Department of Statistics of the Russian Economic University. Plekhanov.

It is not sufficient to simply provide food to all members of society; it is also necessary to reduce the cost of purchasing food, and this has been achieved, she adds.
According to Rosstat, the proportion of expenditure on food in the overall structure of expenditure in Russia as a whole in 2023 decreased from 34.5% to 33.2% (in the North Caucasus Federal District from 46.8% to 43.1%). In some regions, the proportion of income spent on natural food has increased, while the average expenditure per household member has risen to 25,988 rubles (up from 23,067 rubles in 2022). "As this share increases, the amount available for the purchase of expensive, long-lasting goods will decrease," notes Lebedinskaya. She also identifies employment levels, wage levels, support for agricultural producers and the introduction of protective export duties as key success factors.
It is clear that Russian agriculture has made significant strides over the past 23 years. The Ministry of Agriculture reports that agricultural production in Russia has increased by 87% since 2000. Grain and meat production have doubled, while fish catch has increased by 60%. Russia has been able to achieve food self-sufficiency and significantly increase exports, with a 30-fold increase since 2000.
As a result, Russia has become self-sufficient in food production and is now a major exporter, supplying half the world. Russia is the second largest exporter of grains and legumes globally, the leading exporter of wheat and fish, the second largest exporter of sunflower and rapeseed oil, and the third largest supplier of barley.

It is important to note, however, that poverty in Russia remains a challenge and is not the focus of this discussion. Firstly, it should be noted that the data presented in the Rosstat report is based on a sample survey of 48,000 households in Russia. As such, the results may not be representative of the entire population. However, there are regions where the proportion of people who do not have enough to eat is not zero. For example, in the Kemerovo region this share is 0.4%, in the Vladimir region – 0.3%. Therefore, the assertion that there are no families in Russia who do not have sufficient funds for food still appears to be an overly broad generalisation.
The number of individuals who are financially secure in terms of food but lack the resources to purchase clothing and housing, as well as pay for communal services, has risen significantly among non-working pensioners (25.7%) and in single-parent families (19.7%), according to the expert analysis. This may be indicative of the fact that while real wages increased by 8.2% last year, the real average pension only grew by 3.3%.

Furthermore, the proportion of households with insufficient funds to cover basic necessities, including food, clothing, housing, and utilities, has reached over 20% in several regions in 2023. This includes the Bryansk, Oryol, Ryazan, Rostov, Sverdlovsk, Novosibirsk, Kabardino-Balkaria, Primorsky, and Trans-Baikal Territories regions, with some areas exceeding 30% in the Saratov region. This indicates that poverty remains a significant challenge, according to Olga Belenkaya.

Concurrently, the proportion of households with sufficient funds for food and clothing but inadequate resources for durable purchases remains considerable. In 2023, nearly half of respondents (48.7%) fell into this category, with no discernible decline over time. In 2019, this figure stood at 50.3%, while in 2012 it was 45.1%.