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PAINFUL ADAPTATION THE SOCIAL CONSEQUENCES OF THE CRISIS IN RUSSIA Jan Strzelecki 60

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Page 1: Painful adaPtationaei.pitt.edu/84482/1/prace_60_ang_painful-adaptation_net.pdf1 Затяжной спад в экономике. Что предпринимают потребители

Painful adaPtationThe social consequences of The crisisin russia

Jan strzelecki

60

Page 2: Painful adaPtationaei.pitt.edu/84482/1/prace_60_ang_painful-adaptation_net.pdf1 Затяжной спад в экономике. Что предпринимают потребители

Painful adaPtationThe social consequences of The crisis in russia

Jan strzelecki

nuMBer 60WarsaWJanuarY 2017

Page 3: Painful adaPtationaei.pitt.edu/84482/1/prace_60_ang_painful-adaptation_net.pdf1 Затяжной спад в экономике. Что предпринимают потребители

© copyright by ośrodek studiów Wschodnichim. Marka Karpia / centre for eastern studies

conTenT ediToradam eberhardt, Marek Menkiszak

ediTorKatarzyna Kazimierska

co-oPeraTionMałgorzata Zarębska, anna Łabuszewska

TranslaTionMagdalena Klimowicz

co-oPeraTionnicholas furnival

GraPhic desiGn Para-Buch

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PuBlisherośrodek Studiów Wschodnich im. Marka Karpia centre for eastern studiesul. Koszykowa 6a, Warsaw, PolandPhone + 48 /22/ 525 80 00fax: + 48 /22/ 525 80 40osw.waw.pl

isBn 978-83-62936-94-6

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Contents

Theses /5

InTroduCTIon /6

I. The fInanCIal sITuaTIon of russIan soCIeTy durIng The CrIsIs /7

II. soCIeTy and The CrIsIs /12

III. soCIeTy and The governmenT: The poTenTIal for proTesT /16

IV. ouTlook /24

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Theses

•TheRussianeconomyhasexperiencedwhathasproventobethemostpain-fulcrisisforsocietysince2000,orwhenVladimirPutinbecamePresidentof the Russian Federation for the first time. The crisis has worsened thefinancialsituationofpeopleinRussiamainlyduetothehighinflationrateandapersistentanddeepdecreaseinrealwageswhichprimarilyaffectedpoorpeople,largefamiliesandresidentsofbigcities.Atthesametime,theunemployment rate is low, which is due to the nature of the Russian jobmarketinwhichinformalemploymentandemploymentinthepublicsec-torhavealargeshare.Assuch,itremainstosomeextentisolatedfromtheconsequencesofthecrisis.

•Duringthiscrisis,societyisembarkingonastrategyofpassiveadaptationas people focus on individual survival strategies. The dominant strategypursuedbyallsocialclassesinvolvesseekingopportunitiestosavemoneyby limiting expenses and modifying the hitherto applied model of con-sumption.Forsomesocialgroups,theirmethodforweatheringthecrisisalso involves seeking additional employment opportunities in the greyeconomy (the so called ‘garage economy’) and spending the savings theymadeinpreviousyears.ThecrisishasalsocontributedtoamajordropineconomicmigrationtoRussia.

•Thecrisishastriggeredadeclineinthesocialmood.Thisdeclinedoesnottranslate intoadropindeclaredapprovalratingsforPresidentVladimirPutin,norhasitmanifesteditselfinmassprotests.Protestshappenrarely,theyareusuallyisolatedandfocusonspecificlocaldemands.Theprotest-ersavoidreferringtopoliticalslogans,whichmakestheirdemonstrationsdistantfromanyformofprotestagainsttheKremlin.

•Thegovernmentistryingtominimisethelikelihoodofanoutbreakofpro-testsrelatedtotheprolongedcrisisbymakingeffortstobuilduptheimageofPresidentVladimirPutinandtomaintainhishighapprovalrating.Othermethodsinclude:postponingunpopulardecisionsandshiftingtherespon-sibilityforproblemsontolowerlevelsofgovernmentorexternalenemies,andsteppinguptherepressivenatureofthesystem.Duetolimitationsontheoperationofinstitutionswhichareindependentofthegovernment,inthepresentsituationtherearenoleaderswhocouldbecomemouthpiecesforsocialdiscontent.

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InTroducTIon

TheeconomiccrisisinRussiahasmainlybeenbroughtaboutbyadramaticfall inthepriceofoilonglobalmarkets.RevenuesfromoilexportsusedtoaccountforhalfoftheRussianstatebudget’stotalrevenue.Thecrisisiscaus-ingmountingnegativeconsequencesforsociety.Thepresentcrisisdiffersfromthe1998recessionandtheeconomicslumpobservedin2008–2009inthatitislong-lasting(realincomesearnedbyRussianshavedroppedforthethirdyearinarow).Thishasbeenthefirstsuchpersistentdeclineinthestandardofliv-ingsince2000,whichwaswhenVladimirPutintookoverthepresidencyfromBorisYeltsin.Thispublicationisanattempttodescribethescaleofthecrisisanditssocialconsequences.ThefirstpartdiscussestheconditionofRussiansocietyduringthecrisis,theconsequencesoftherecessionforthestandardoflivingofRussianpeople,andthestrategiessocietyisadoptingtosurvivetheeconomiccrisis.ThesecondpartcontainsananalysisoftheshiftinsocialmoodanditsimpactonthestabilityofthepoliticalsysteminRussia.Thefinalpartisanattempttopredictthepossibleconsequencesofthepresentcrisis.

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I. The fInancIal sITuaTIon of russIan socIeTy durIng The crIsIs

Theongoingeconomiccrisisiscausingnegativeconsequencesforamajorpor-tionofRussiansociety.Inmid-2016,astaggering78%ofRussiansclaimedtohavebeenpersonallyaffectedbytheseconsequences1.Theinitialdeteriorationofsociety’sfinancialsituationwasrecordedinthefirstmonthsof2015.ThesituationofthepopulationdeterioratedmainlyasaresultofthehighinflationratecausedbyadropinthevalueoftheRussiancurrency.ThisinturnhadbeencausedbyaslumpinthepriceofoilandthesanctionsimposedbytheWestafterRussia’sannexationofCrimeaandcommencementofthewarintheDonbas(betweenthebeginningof2014andthebeginningof2015theroublefellbynearly50%againsttheUSdollar).TherapidpriceincreasehasalsobeenaresultoftheembargoontheimportoffoodstuffsfromtheWestwhichRussiaintroducedinAugust2014inresponsetosanctionsimposedonit.Thisembargohasbackfired,though,andhasmainlyaffectedtheRussianeconomywhichistoalargeextentdependentontheimportofagriculturalproduceandfoodstuffs.Duetothis,in2014theinflationratewas11.4%,whilein2015itwas12.9%.Thiswasthehighestraterecordedsince2008.

TherapidpriceincreasestartedbackinDecember2014.Itcoveredmainlyne-cessitiessuchasfood–in2015thepriceoffoodstuffswentupbymorethan20%onaverageandinsomeoftheproductcategoriesthepricesincreasedbymorethan40%.Amajorpriceincreasewasalsorecordedincategoriessuchashouseholdgoods,medicinesandselectedservices(inparticularthoseconnectedwithforeigntourismandthehousingindustry).Asaconsequence,lessafflu-entsocialgroupsweremoreseverelyaffectedbythecrisisbecausethecostsofpurchaseofnecessitiesandbasicservicesgrewfasterthanothergoods.Despiteadropintheinflationratein2016,societyconsidersinflationtobethemostperceptiblemanifestationofthecrisis.Theinflationandshortagesofcertaingoodsalongsidetheinternationalpoliticalsituationhavecontinuedtotoptheso-called‘fearindex’identifyingphenomenawhichworryRussiansthemost,compiledbytheAll-RussianPublicOpinionResearchCentre(VCIOM)2.

1 Затяжнойспадвэкономике.ЧтопредпринимаютпотребителиибизнесвРоссии?,PWC, 16 June 2016, http://www.pwc.ru/ru/press-releases/2016/consumer-business-re-port.html

2 “Fearindex”bytheAll-RussianPublicOpinionResearchCentre(WCIOM),http://wciom.ru/news/ratings/indeks_straxov/

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The crisis has had a limited impact on the job market. Unlike in the case of the 2008–2009 crisis, adaptation to the altered conditions is progressing slowly and includes a long-term decrease in real wages and real incomes. WagestagnationwasinitiallyobservedinJanuary2014,andinNovember2014wagesbegantofall.In2015,thefallinrealwagesamountedto9.5%year-on-year,whileintheperiodbetweenJanuaryandAugust2016itwas0.3%whencomparedwiththecorrespondingperiodin20153.However,whenconvertedtoUSdollars,thewagesearnedbyRussiansfellby40%–fromUS$936in2013toUS$558in20154.ThishasaffectedtheRussianmiddleclasswhichusesforeigngoodsandservicesmorefrequentlythanothergroups.Russiansocietyhasbeenaffectedbythisdramaticanddurabledropinwagesforthefirsttimesince1998.Moreover,theofficialwagestatisticstakeintoaccountsolelylargeandmedium-sizedcompanieswhichemployaround46%ofthetotalworkforce.Accordingtoeconomists,thelargerpartofthejobmarketwhichisomittedfromofficialsta-tistics,hasrecordedamoresignificantdropinrealwagesamountingto10–15%.

RealincomesearnedbyRussianscontinuedtofallataslowerpacethanrealwages.ThiswasinpartcausedbythefactthatRussianpeoplegraduallyspenttheirforeigncurrenciessavings5(in2015realincomesfellby6.3%,whilerealwagesfellbyasmuchas9.6%).Duetothecrisis,theshareofincomefromeco-nomicactivityinthetotalincomeoftheRussianpopulation(earned,forexam-ple,frompettytrade)hasbeenonthewane–in2015itwasthelowestsincethefalloftheSovietUnionandamountedto7.3%.

Despitethecrisis,theunemploymentrateremainedpracticallyunchangedandamountedto5.4%inOctober20166.ThenumberofindividualsregisteredwithRussianjobcentresasunemployedwasmorethanfourtimeslower,whichislargelyduetothefactthatRussianpeopleareratherunwillingtoreporttheyareunemployedtostateinstitutionsdealingwithemploymentbecausetheseareinefficient.ThereasonsbehindthelowunemploymentrateduringthecrisisshouldbetracedmainlytotheuniquenatureoftheRussianjobmarket.Firstly,theshareofindividualsworkinginthegreyeconomyinRussiahasbeenonthe

3 WagedynamicsdatacompiledbytheCentralBank,http://www.gks.ru/bgd/free/B00_24/IssWWW.exe/Stg/d000/i000050r.htm

4 Мониторинг социально-экономического положения и социального самочувствиянаселения.May2016,ed.Л.Овчарова2016,goo.gl/exEWsW

5 Accordingtoofficialstatistics,incomeearnedfromthesaleofforeigncurrencysavingsisincludedintotalincome.

6 DatabyRosstataccordingtomethodologyadoptedbytheInternationalLabourOrganisation.

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risesince2011andatpresentitisover18%7,whichisnearly9millionpeople.Theongoingeconomiccrisishasnothaltedtheupwardtrendregardinginfor-malemployment.AccordingtoestimatesbytheHigherSchoolofEconomics,theaverageshareofunregisteredremunerationintotalwagesisaround25%,whichgeneratesimmenselossesforthestatebudget.However,thegreyecono-myformsabufferprotectingthepopulationfromtheconsequencesofthecrisisandofferingopportunitiestofindsupplementaryemployment.

Secondly,maintainingalowunemploymentrateisalsopossibleduetoanin-creaseinthenumberofindividualsinpart-timeemploymentandtothereduc-tionofsalariesinmanysectorsoftheeconomy.Inresponsetothecrisis,theem-ployerstendtolowerthesalariesorreducefull-timeemploymenttopart-time.Duringthecrisistheemployers’backlogsofpaymentbegantoslowlyrise,butthetotalamountisstilllowerthaninthe1990s.AccordingtoestimatesbytheHigherSchoolofEconomics,inQ1201624%ofRussianfamilieswereaffectedbysalaryreductions,19%bydelayedpaymentsofremunerationand9%byforcedunpaidleave,dismissalorreductionoffull-timeemploymenttopart-time8.Duetohighcostsoflay-offstheemployersprefertokeepthelevelofemploymentunchangeddespitethelowerdemandforstaff.

The fall in real wages and the increase in prices during the crisis have contributed to an increase in the number of individuals affected by pov-erty and extreme poverty by3.1millionin20159.AccordingtoestimatesbytheRussianstatisticalofficeRosstat,in201513.3%ofRussianslivedbelowthesubsistencelevel10.Thishasbeentheworstresultsince2008,butnottheworstinRussia’smodernhistory,as–accordingtoofficialstatistics–backin199928.4%ofRussianslivedbelowthisstandard.Accordingtoresearchers,groupsparticularlyatriskofexperiencingthenegativeconsequencesofthecrisisin-cludepeopleraisingchildren(in2015,morethan21%ofthemlivedinpoverty11)

7 Ежемесячныймониторингсоциально–экономическогоположенияисамочувствиянаселения 2015 – март 2016, ed. Т. М. Малева, March 2016, http://www.ranepa.ru/im-ages/docs/monitoring/ek-monitoring/monitoring-march-2016.pdf

8 Мониторинг социально–экономического положения и самочувствия населения.Май2016,ed.Л.Овчарова,2016,goo.gl/aCy6L5

9 Человеческийкапиталкакфакторсоциально-экономическогоразвития,ed.Я.Кузь-минов,Л.Овчарова,Л.Якобсон,Moscow2016,goo.gl/LciPvo

10 Data by Rosstat, http://www.gks.ru/wps/wcm/connect/rosstat_main/rosstat/ru/statistics/population/level/#

11 Человеческийкапиталкакфактор…,op. cit.

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andlowearners12.ThehigherproportionofnegativeopinionsexpressedbytheindividualssurveyedregardingtheirfinancialsituationisfurtherproofofthedeterioratingfinancialsituationofpeopleinRussia.In2015,thegroupwhichin-cludes(self-declared)poorandextremelypoorpeople,increasedalmosttwofoldacrossvarioussurveys13.Meanwhile,betweentheendof2015andAugust2016thenumberofindividualswhodeclarethattheyhavetoolittlemoneytobuyenoughfoodandthosewhocannotaffordtobuyclothesremainedstableandamountedtoaround40%intotal14.Amongthosewhoclaimedtobelongtothisgroupare:familieswithchildren,residentsofruralareas,peoplewithoutuni-versityeducation,pensioners,andindividualslivinginone-personhouseholds.

The social consequences of the crisis vary considerably between individual regions, in part due to the diminishing transfers of funds from the federal budget to regional budgets(duringthe2009crisisthetransfersoffundstotheregionsrosebyaroundathirdonaverage,whereasin2015theydecreasedby3%,andinthefirsthalfof2016byanother12%).Thisistoalargeextentre-flectedinexpensestheauthoritieshaveplannedforwhatisbroadlyunderstoodaswelfarepolicy.Thisformsamajorportionofexpensesinnearlyallterritorialunits.InthemajorityofregionsoftheRussianFederation,2015sawareductioninspendingonthehousingsector,cultureandeducation.Thishashadanega-tiveimpactonthequalityofservicesofferedinthesesectors.Accordingtoes-timatesbytheCivilInitiativesCommitteeheadedbyeconomistAlexeiKudrin,acollaboratoroftheKremlin,regionswiththeworsteconomicsituationdur-ingthepresentcrisisinclude:Moscow,theRepublicofMordoviaandtheMariElRepublic,andalsotheKemerovo,Kurgan,Novosibirsk,NizhnyNovgorod,Penza,Pskov,Samara,SverdlovskoblastsandtheJewishAutonomousOblast15.Thecrisishasrelativelyheavilyaffectedthoseregionsinwhichlargeindustrialplantsoftheautomotiveandmachinebuildingsectorsarelocated,inparticularindustrialcities,includingtheso-calledmonocities(citiesbuiltaroundasinglelargeindustrialplant).AccordingtoestimatesbytheFederalGuardServiceoftheRussianFederation(FSO),60%ofresidentsofmonocitiesconsiderthe

12 Население России в 2016 году: доходы, расходы и социальное самочувствие. Мо-ниторингНИУВШЕ,ed.Л.Овчарова,goo.gl/jZIUEc

13 Individualswhodeclaredthattheycannotaffordtocaterfortheirbasicneedsregardingfoodandclothing.

14 НаселениеРоссиив2016году…,op. cit.15 https://komitetgi.ru/projects/2901/

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situationintheareawheretheylive“hardtobear”or“unbearable”16.However,duetotheresidents’strongdependenceononedominantindustrialplant,thismoodrarelytranslatesintomassprotests.Thecrisishaslessseverelyaffectedtheregionswhichfocusonsuchbranchesoftheeconomyas:agriculture,theminingindustryandthearmamentsindustry.

The ongoing economic crisis has contributed to a deterioration of the situ-ation of all social classes and, in the case of many groups, to permanent degradation caused by inflation and lower wages. Althoughsofartherehasbeennosignificantincreaseinthescaleofsocialinequalities,thecrisisiscaus-ingshortagesofgoodsandservicesofthesamequalityashithertooffered(forexamplebasicmedicalservicesandmedicines,education).Thismainlyaffectsthelowerclassesofsociety.

16 TheFSOisaspecialserviceresponsibleforprotectingthestate’stopofficials,italsopre-paresanalysesregardingthesituationinspecificregions,seehttp://rusrand.ru/response/opros-ot-fso-v-monogorodah-usilivajutsja-depressivnye-nastroenija

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II. socIeTy and The crIsIs

Russiansareawareofthedeterioratingeconomicsituation.Accordingtore-search by the Levada Centre, in August 2016 a staggering 80% of RussiansagreedwiththestatementthataneconomiccrisisisongoinginRussia17.Theperceptionofthepresentcrisishaschangedovertime.Theinitialhopeswithinsocietythatthecrisiswouldbetemporary,boostedbyoptimisticmessagesfromtheauthorities,arenowgivingwaytobeliefsthatthecrisisislikelytodragon18.Atpresent,theproportionofindividualswhoholdpessimisticviewsastotheprospectsforthedevelopmentoftheeconomicsituationisaround50%.ThecrisisisgeneratingfearamongRussiansrelatingmainlytopossiblefurtherpriceincreasesandthelossofsavings.Toaconsiderablylesserextentthesefearsfocusonpossiblejobandincomelosses(however,thefearoflosingone’sincomeisfrequentlyreportedbybusinesspeople).Alongsidethis,thetraumaassociatedwiththe1990scrisisandthesuspendedpaymentofsalariesmakesRussiansfearpaymentdelays.Manybelievethatthelawisbeingviolatedonalargescale(accordingtoresearchbytheInstituteofSociologyoftheRussianAcademyofSciences,inOctober2015amere8%ofRussianswereconvincedthatthelabourlawwasbeingobserved19).

AlthoughthedropinGDPissmallerduringthepresentcrisisthanitwasin2009(around-4%in2015comparedwith-7.8%in2009),duetoitspersistenceitishavingastrongerimpactontheshiftineconomicbehaviourwithinsociety.Especiallyintheinitialstageofthecrisis,manyhouseholdsdecidedtoselltheirforeigncurrencysavings.However, the basic strategy for weathering the crisis involves limiting one’s expenses by: buying cheaper products and refraining from buying certain goods. Duringthepresentcrisis,Russianpeople,forthefirsttimesince2008,arespendingonaverageover50%oftheir

17 AsurveybytheLevadaCentreonhowthecrisisisperceived,26September2016,http://www.levada.ru/2016/09/26/krizis-i-ozhidaniya-uvolnenij/

18 AccordingtotheLevadaCentre,inDecember201431%oftherespondentsclaimedthatthecrisisisunlikelytolastformorethanayearandahalf,and23%oftherespondentssaidthatitwouldbetwoormoreyears.InDecember201537%oftherespondentssaidthatthecrisisinunlikelytolastformorethanayearandahalf,and44%saidthatitwouldbetwoormore years, http://www.levada.ru/2016/02/12/monitoring-vospriyatiya-ekonomicheskoj-situatsii-v-strane-dekabr-2015-yanvar-2016/ThesurveyorganisedbyPWCrevealedmorepessimisticopinionstheRussianshaveregardingthelikelihoodofthecrisisending,seehttp://www.pwc.ru/ru/press-releases/2016/consumer-business-report.html

19 Н.Тихонова,СтратификациявРоссии:спецификамоделиивекторизменений,goo.gl/XbZyxt

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householdbudgetonfood,cigarettesandalcohol20.Thishasbeenaconsequenceoftheincreaseinthepriceoffoodstuffsontheonehand,andontheother,oflimitingtheexpensesonothergoodsandservices.Economistssuggestthatpeo-plechoosetoadopta‘survival’strategywhichinvolveslimitingtheirexpenses.48%ofthesurveyedfamiliessaidthatentertainmentexpensesareamongthosewhicharebeingcut(forexampletheexpensesoncultureandtravel).45%ad-mittedthattheyweretryingtolimitspendingonclothingandshoes,and45%limitarelimitingtheirfoodexpenses.

Duringthecrisisitisevidentthatpeoplenotonlytrytosavetheirmoney,butalsolookforopportunitiestoearnextraincome.AccordingtoestimatesbytheHigherSchoolofEconomics,8.3%ofRussiansareseekinganextrajob,butthejobmarkethaslimitedabsorptioncapability,asaconsequenceofwhichtheproportionofindividualswithanextrasourceofincomehasnotchangedasaresultofthecrisis.However, the level of informal employment, which is a manifestation of the phenomenon referred to in Russia as the ‘garage economy’, has been on the rise.Thistermreferstoinformalactivityofsmall(oftenone-person)workshopsdealingwithproductionandservicesonaminorscale(forexampletaxidriversandautomotiveservicesproviders).Thepricerisehasalsotriggeredincreaseduseofresidentialgardens–especiallyinruralregionsRussianshavebeenusingthesegardenstogrowvegetablesandfruitforindividualconsumption.IncreaseduseofresidentialgardensintheperiodfromFebruaryuntilApril2016wasindicatedby15%oftherespondentssurveyedbytheHigherSchoolofEconomics21.Thescaleofthe‘garageeconomy’isextremelydifficulttoestimate,oneofthereasonsbeingthatitisdifferentinindividualregions.Accordingtosomeresearchers,itoffersmoney-makingopportunitiestoasmuchasathirdoftheworkingagepopulation.Forlessaffluentcitizens,informaleconomicactivityandtheuseofsmallfarmsandhomegardenshavebecomeamethodforsurvivingandescapingfromextremepoverty.Similarly,thetraditionalinter-generationsolidarity,typicalofRussiansocietyandwhichmanifestsitselfduringcrisesinincreasedmutualsupportwithinfamilies,hasplayedaroleinalleviatingtheconsequencesofthecrisis.

20 For comparison, in Poland these categories cover around 25% of household spending, intheUSAaround10%.Cf.Н.Райбман,Впервыезавосемьлетрасходыроссияннаедупревысили остальные расходы, 19 April 2016, http://www.vedomosti.ru/economics/articles/2016/04/19/638228-rashodi-edu

21 С.Салтанова,Какроссиянеборютсяскризисом,https://iq.hse.ru/news/185897751.html

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Inthecaseofwell-educatedculturedindividuals,theeconomiccrisiscombinedwiththemountingrepressivenatureofthesystemcontributestoalimitationoftheavailabilityofspecificcareerpaths.Thiscausesa boost in the so-called ‘brain drain’– a phenomenon which involves well-educated individuals emigrating from Russia to more developed economies.Inabsolutenumbersthisphenomenondoesnotcoveralargenumberofpeopleandisextremelydif-ficulttomeasurebecausemostoftheindividualsinvolveddonotreporttheirde-parturetoRussianinstitutions.However,theavailableEurostatdatafor2014in-dicateasignificantincreaseintheproportionofRussianswhohavebeengrantedapermanentresidencepermitinanEUcountryforthefirsttime22.In2014,thenumberofsuchindividualswasover22%higherthanin2009.Theoutflowofthequalifiedworkforcehasbeenlesssignificantthanintheearly1990s,butitwilllikelyposeaseriousdevelopmentproblemforRussiainthefuture.

Alongsidethis,in connection with the economic crisis and the drop in the value of the Russian currency, a sharp downward trend regarding eco-nomic migration to Russia can be observed.Thisformsauniquebufferre-ducingthenegativeconsequencesofthecrisisonthejobmarketforRussiansociety.Theintroductionatthebeginningof2015ofamendedlawsontakingupajobintheRussianFederationalongsidethedeteriorationofthesituationontheRussianjobmarket,whichusedtoabsorbeconomicmigrantsfromtheformerSovietrepublics,ledtonumerousimmigrantsleavingRussia.Accord-ingtoofficialstatisticsbytheFederalMigrationService,in2015thenumberofimmigrantslivinginRussiafellbyaround10%,andthedatacompiledbytheCentralBanksuggestthatremittancesfromRussiatotheCIScountriesshrankbyover50%23.Despitethis,theRussianjobmarketcontinuestodependonamigrantworkforcetoacertainextent.MigrantstakeupjobswhichethnicRussiansfindlessattractive(especiallyinthesectoroflow-paidservices),whichiswhythedatafor2016indicateacertainreversalofthetrendandanincreaseineconomicmigrationtoRussia.

TheintentiontocuthouseholdexpenditureandtherelatedreductionofthelivingstandardareelementsofRussiansociety’sdominantstrategyforweath-eringthecrisis.AccordingtoresearchbytheLevadaCentre,whendescribingtheirfinancialsituation58%ofRussiansusethesimplephrase:“itisdifficult

22 DatabyEurostat,http://ec.europa.eu/eurostat/statistics-explained/index.php/Residence_permits_statistics#Source_data_for_tables_and_figures_.28MS_Excel.29

23 DatabytheCentralBankofRussia,http://www.cbr.ru/statistics/?Prtid=svs&ch=TGO_sp_post#CheckedItem

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tolive,butwecanbearit”.This suggests that Russian society is undergoing a change in how it functions during the crisis – from a consumer society to a ‘shortage society’ which focuses on physical survival in a situation of shortages and deficiency24.ThisapproachofwaitingpatientlyforthedifficulttimestobeoverisdeeplyrootedinRussia’shistory,thereforeitisunlikelythattheplantoabandontheprosperitypolicywillposeathreattothecountry’spresentleadership.

24 Л. Гудков, Мечты о прошлом. Почему кризисы приводят к реанимации советскихпредставлений,Republic,14August2016,https://slon.ru/posts/66665

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III. socIeTy and The governmenT: The poTenTIal for proTesT

TheeconomiccrisisequatestoacompletewithdrawalfromtheuniquesocialaccordwhichusedtobeoneofthefoundationsofPutin’s‘epoch’.Inexchangeforincreasingprosperityandrelativestability,whichhadbeenabsentfromtheturbulent1990s,thegovernmentgainedapprovalandsocietywithdrewfromitssupervisionofpoliticalprocesses.Despitethis,thepresenteconomiccrisishashadaminorimpactonRussianpeople’sattitudetowardsthegovern-ment.The increasingly negative assessments of the economic situation and the related drop in expectations regarding the financial situation have had only a marginal impact on the level of support for the govern-ment. Moreover, the drop in approval rating does not relate to President Putin. Anumberoffactorsseemtoreducethelikelihoodofthefeelingofdep-rivationpresentwithinsocietybeingtranslatedintosocialactivitieswhichwouldbeunfavourablefromthepointofviewofthegovernment,suchas:pro-tests,asignificantboostinsupportfortheopposition,andopencriticismofthegovernment.ThesefactorsincludetherelativelyhighlevelofdependencewhichRussianpeoplehaveonthestate,thewidespreadconvictionthatthereisnoalternativeforthepresentleadership,andtherelativelyweakbridgingsocialcapital(standardsofcooperationandnetworksbetweenpeoplestem-mingfromvarioussocialgroups),whichmanifestsitselfinthelowlevelofconfidenceinindividualsfromoutsideone’simmediatecircleandinsociety’slowdegreeofself-organisation.

It seems, however, that the number of protests has been on the rise dur-ing the crisis. The main issues which encouraged people to attend protests included: cases of the violation of employees’ rights25, problems with access to services which emerged as a result of spending cuts introduced by the government (for example combining several hospitals into one, closing small schools, liquidating the post of school doctors), and the subsequent rises of various public levies (for example regulated rent). Only extremely rarely do the protests have a supra-local reach.Theralliesarenotusuallypolitically-motivated,theyareisolatedanddonotfocusonthemostcommon

25 AccordingtotheindependentCentreforSocialandEmployees’Rights,inRussiathenum-berofemployeeprotestsincreasedsignificantlyin2015(bynearly40%),andtheupwardtrendwasmaintainedalsoinseveralmonthsof2016.Themostimportantproblemswhichinspiredtheprotestsincludeddelayedpaymentsofsalaries,thepolicypursuedbytheman-agementsofcompanies(forexamplerestructuring)andlayoffs,http://trudprava.ru/news/protestnews/1589

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problems.ThefewexceptionstothisrulewereprotestswhichspreadtothecapitalcitiesofthemajorityofRussia’sregions:theprotestbyemployeesoftheemergencyambulanceserviceorganisedinlate2014andtheprotestbytruckdriversagainsttheintroductionofroadusagefeeswhichstartedinNovember2015(seeboxbelow).Thefeelingwithinsocietyisthatthelikelihoodofnewprotestsbeingorganisedisinsignificant.Thishasbeenconfirmedinsurveys–inDecember201521%oftherespondentssurveyedbytheLevadaCentrecon-sideredeconomically-motivatedprotestslikely,whereasduringthe1998–1999crisisastaggering48%ofRussiansconsideredprotestslikely.Similarly,thelevelofreadinesstotakepartinprotestswasfoundtobeconsiderablylower–inDecember201513%oftherespondentsdeclaredtheywerepreparedtotakepartinaprotestfocusedoneconomicdemands(comparedtoasmuchas33%oftherespondentsin1998)26.

The anatomy of strike – the ‘platon’ system

The mechanisms used by the authorities involving the control of society and diverting people’s attention from the problems of daily life sometimes fail. In late autumn 2015 in several regions of Russia protests by truck drivers broke out against the introduction of the ‘Platon’ system and col-lection of tolls for the use of national roads. According to the drivers, the fees for using federal roads were excessively high, which made their eco-nomic activity unprofitable. The protesters’ anger was stoked by the fact that the revenue from the toll collection system was earned mainly by the system operator, a company owned by the Rotenberg brothers – friends of Vladimir Putin. In a short time, the protests covered the whole of Russia and became some of the biggest economically-motivated protests organised in recent years (they covered 24 of the total 83 regions27). The protest by truck drivers enjoyed support from society. According to estimates by the Levada Centre, in December 2015 63% of Russians and a staggering 72% of Moscow residents supported the actions by the drivers28.

26 ДенисВолков,Кризисвумах:стоитлиждатьмассовыхпротестов,Forbes,18February2016,http://www.forbes.ru/mneniya-column/protesty/313135-krizis-v-umakh-stoit-li-zh-dat-massovykh-protestov

27 ExcludingCrimeaandSevastopol.28 A survey by the Levada Centre regarding protests by truck drivers, http://www.levada.

ru/2015/12/30/protesty-dalnobojshhikov-i-gotovnost-protestovat-sredi-naseleniya/,accessed2November2016.

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The drivers used numerous forms of protest (road blockades, demonstra-tions, driving at a slow pace through cities, petitions etc.), which made it difficult for the government to prevent them. The large scale of the protests was possible mainly due to the drivers’ networking activity. The earnings of truck drivers, who usually operate as one-man companies, have decreased significantly during the crisis. Faced with the potential loss of livelihood, the drivers proved to be a determined and independent group. The scale of the protests surprised the government, who initially offered restrained reactions, which additionally fostered the emergence of new centres of pro-test. The drivers relatively quickly decided to present their demands di-rectly to the president, which made it more difficult for the Kremlin to use the well-tested mechanism of shifting the responsibility onto the regions, but at the same time enabled Putin to play the role of the ‘good tsar’ who responds to society’s needs.

Despite the large scale of the protest against the introduction of the ‘Platon’ system, the Kremlin decided to reduce the tax imposed on the drivers only slightly and to maintain the system. The authorities granted the truck driv-ers the right to deduct the tolls paid under the ‘Platon’ system from their transport tax and reduced the fines for failure to pay them. This solution has to a certain extent reduced the burden imposed on the drivers and contrib-uted to silencing the protests. The costs of the deducted amount of tax are credited to the budgets of specific regions which used to earn revenue from the transport tax. The reaction of the government is also proof of the fact that although they fear protests and intend to cut spending, the interests of the closest circle of friends of Vladimir Putin remain carefully protected.

Russianpeople’sreluctancetobecomepoliticallyinvolvedisafactorreducingthelikelihoodofprotests.Inasituationofthemountingrepressivenatureofthesystem,refrainingfromprotestsisviewedasarationalstrategy.Russiansociol-ogistLevGudkovreferredtotheattitudewhichprevailsinsocietyas“inertiaofpassiveadaptation”29.Itisareactiontomeasurestakenbythegovernmentandtothedeterioratinglivingconditionswhichinvolvesadaptationtotheincreas-inglydifficultfinancialsituationratherthanresistancetoit.Ontheonehand,thistypeofcreepingapathyistantamounttoRussianpeopleacceptingtheag-gressivepolicypursuedbytheKremlinontheinternationalstageandcomingtotermswiththerepressivenatureofdomesticpolicy.Ontheotherhand,itspells

29 Л.Гудков,Инерцияпассивнойадаптации,http://carnegieendowment.org/files/Proet-Contra_51_20-42_all.pdf

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adiminishingpotentialforexpressingactivesupportforthepolicypursuedbythegovernment.ThehopethatanypoliticalchangemayhappeninRussiahasbeendwindlingevenincircleswhicharecriticaloftheKremlin.

An anti-system mood and actions are additionally weakened by the high level of state control of the economy, which successfully prevents any manifestations of resistance. DuringtheruleofVladimirPutinthebigshareofthepublicsectorintheeconomy30hasbroughtpeopleemployedinthissec-torrelativeprosperity31.However,theimprovementoftheirfinancialsituationhasmainlybroughtaboutachangeinconsumptionpatternsinsteadofashiftinthesystemofvaluesorthemodelofcitizens’participation.IntheRussiansituation,themiddleclass,whichissometimesreferredtoasapotentialforcestrivingfordemocratisation,doesnotformulatedemandsinvolvingpoliticalchange.Themiddleclassisinlargepartcomposedofemployeesofthestatesec-tor32.ItmainlycomprisesindividualsfromthosesocialgroupswhichimprovedtheirfinancialsituationduringthepresidencyofVladimirPutinfollowingtheperiodofsignificanteconomicdeteriorationinthe1990s.En masse, themiddleclassisinterestedinmaintainingstability;furthermore,itischaracterisedbyanimpressiveabilitytoadapttothedeterioratinglivingconditions.Despitethefactthatwhensurveyed,representativesofthisclassoftenexpresstheirconcernwiththedomesticsituation,theyconcurrentlyfeardestabilisation,whichiswhytheytreatthepresentgovernmentasthebestofallpossibleop-tions.Inthiscontext,theprotestsof2011and2012wereexceptionstotheruleandsawashortperiodofincreasedpoliticalactivityresultingmainlyfromsocialdiscontent.ThiswastriggeredbythefactthatthehopesaportionofthemiddleclassnurturedduringthepresidencyofDmitriMedvedevwereneverfulfilled.Thefailureofthoseprotestshaspermanentlydiscouragedpeoplefromthistypeofinvolvement.The present economic crisis has severely impacted the standards of living of the most politically active segments of the mid-

30 In2005,theestimatedshareofthestateintheeconomywas35%.Thisfigurewas70%in2015, http://www.rbc.ru/economics/29/09/2016/57ecd5429a794730e1479fac. According todatacompiledbyProf.NataliaZubarevich,atpresent27%oftheworkforceisemployedinthestatesector.

31 А.Соколов,И.Терентьев,ИсследованиеРБК:скольковРоссиичиновниковимноголионизарабатывают,RBK,15October2014,http://www.rbc.ru/economics/15/10/2014/543cfe56cbb20f8c4e0b98f2

32 According to estimates by sociologist Natalia Tikhonova from the Russian Academyof Sciences, nearly half of the Russian middle class is employed in the state sectors. ForamorecomprehensiveanalysisoftheRussianmiddleclassseeН.Никс,Среднийклассвсовременной России: 10 лет спустя; https://www.hse.ru/pubs/share/direct/document/172441014

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dle class residing in big cities. Alongside the repressive measures which have intensified following the 2011–2012 protests, this has significantly reduced the potential for political involvement within this group.

Despitethelackofevidentmanifestationsofanyemergingprotestmovement,thegovernmentfearstheconsequencesofthedeterioratingfinancialsitua-tionofthepopulationandhasintroducedpreventivemeasurestoavoidanyexpressionofsocialdiscontent.Eveniftheywereshort-lived,thesocialprotestsworriedthegovernmentaheadofparliamentaryelectionsheldinSeptember2016andthepresidentialelectionplannedforMarch2018.The government’s tactic aimed at minimising the likelihood of protests in connection with the persistent crisis mainly involves: stepping up the repressive nature of the system, maintaining the high level of citizens’ dependence on the state, and protecting the authority of the president at the same time shifting the responsibility onto lower levels of government.

TheKremlinhasmanagedtodevisetechniquestosuccessfullymanipulatepub-licopinionandinfluenceitaccordingtospecificneeds.ThemajorityofRussianmassmediaiscontrolledbythestateorbelongtooligarchswhoareloyaltothegovernment.FortheKremlin,themassmediaisatooltopursueitsinfor-mationpolicyandinfluencesocialmood.Thepropagandamachineisefficient,andapprovalfortheKremlin’spolicyremainsconsistentlyhigh.AsaresultoftheannexationofCrimeaandthelaunchofthedisinformationcampaignregardingtheconflictinUkraine,overayearPresidentPutin’sapprovalrat-inggrewfrom61%inNovember2013to88%inOctober201433.Despiteaslightdownwardtrend,theso-called‘Crimeaeffect’andtheintensivepropagandaactivitiesregardingtheconflictinUkraineandtheinterventioninSyriahavemadeitpossibletomaintainthepresident’sapprovalrating(theso-called‘Pu-tinrating’)atalevelexceeding80%.Thisisanextremelyhighresult,althoughduetoitsmethodologicallimitationsthisindicatorshouldratherbeviewedasatouchstoneofcertaintrends.WhenanalysingquantitativedataregardingRussiansocietyitisnecessarytotakeintoaccounttheerrorresultingfromthefollowingfactors:therespondents’fearofprovidinghonestanswers34,the

33 DatabytheLevadaCentreregardingsupportforvariousgovernmentinstitutions:http://www.levada.ru/indikatory/odobrenie-organov-vlasti/

34 Inasurveyregardingthefearofprovidinghonestanswers,around50%oftherespond-entssaidthatRussiansareunwillingtorevealtheiropinionswhentakingpartinsurveys,andaround25%admittedthattheypersonallyfeartoprovideanswers,http://www.levada.ru/2016/01/22/strah-vyskazat-svoe-mnenie/

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lackofdemocratictraditions,therelativelyhighproportionofindividualswhorefusetotakepartinasurveyinspecificsocialgroups,andthelimitedaccesstherespondentshavetoindependentsourcesofinformation.Someresearch-ersclaimthatconfidenceinaspecificinstitutioninRussiaisoftenseenbytherespondentsasequivalenttorecognisingthatitplaysamajorroleinthesystem.Itisonlyafterthiscontextistakenintoaccount,thatadeeperinterpretationofthesurveydataispossible.

MaintainingahighapprovalratingforPresidentPutinisbecomingtheKrem-lin’soverridingpriorityandtheresultsofsubsequentsurveysareusedtolegitimiseall theactionsbythegovernment.Thepresidentenjoys uniqueimmunityasheplaystheroleofanarbiterdiscipliningotherinstitutionsofgovernment.Theritualwhichshowsthisstrategyinthemoststrikingman-neristheannualcarefullydirected,several-hours-longtelevisedconferenceconnectingthepresidentwiththenation.DuringthisconferencePutinsolvestheproblemsreportedbycitizens:frominternationalissues,throughcor-ruption,topotholesintheroad.Putin’spopularityistoalargeextentbuiltonhisimageasanenergetic,toughleaderwhodoesnotfearconfrontationwithotherstates.Toalargeextent,itisthepresident’sauthoritythatguar-anteesthesystem’sstabilityandpreventssocialdiscontent(whichhasbeengrowingslightlysincetheendof2015)fromtranslatingintoprotestsortheincreasedpopularityofoppositionparties.Another tactic to maintain the president’s high approval rating involves shifting the responsibility in crisis situations onto the regional level of government or onto members of government and putting the blame for the widespread deterioration of the economic situation on other countries and the international situ-ation. Themajorityofthetime,themediaassociatedwiththeKremlinpointtohostileactionsbyotherstatesandfallingoilpricesasthemaincausesoftheeconomiccrisis.BoththesefactorsarepresentedasindependentoftheactionsoftheKremlinandassuchtheydonotburdenthegovernmentwiththeresponsibilityfordeterioratinglivingstandards.UnpopulardecisionsareformallymadebythecabinetwhichenjoysmuchlowersupportamongRus-siansthanthepresident.Whentherewereprotestsagainsttheintroductionofatollsystemfortrucksusingfederalroadsorprotestsbyhealthcarework-ers,aswellasincreasinglyfrequentlocalrallies,thegovernmenttendsnottomakesignificantconcessionstowardssociety,fearingthatthiscouldbeviewedasasignofweakness.Decisionsareusuallypostponedoronlyslightlyamended.Atthesametime,duringprotests,whichfromtheKremlin’spointofviewmayreachalarmingproportions,mostfrequentlytheroleof‘scape-goat’isplayedbyregionalauthoritiesormembersofthecabinet,whichhasin

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turncontributedtoadropintheirapprovalrating35.Thestrategyinvolvingtheshiftingofcostsandresponsibilityforalleviatingtheconsequencesofthecrisishasledtoasituationinwhichthedropinrevenuestotheregions’budgetshascoincidedwiththeregions’welfarespending(mainlysocialbenefits)increasingby5–8%36.Thiswasaccompaniedbyanincreaseintheregions’budgetdeficit.

Isolatedprotestsorganisedbygroupswhoaredeterminedtoactwhenfacingathreatcanhavealarge-scalereach,asindicatedbytheprotestbytruckdriv-ers.Eveninasituationofarelativelyhighlevelofdesperation,thestrikepar-ticipantsavoidpresentingpurelypoliticaldemands.Theytendtoadoptastrat-egyofreferringtothepresident’sauthority,whichindirectlystrengthenshisposition.Asaconsequence,PresidentPutin’sapprovalratingremainshigh,despitethefactthatmostRussiansclaimthattheRussiangovernmenthasfailedtodeliveronitspledgetosociety.

Thegovernmentisfocusedonavoidingthemereriskofanoutbreakofprotests.Toachievethis,theyhavesteppeduptherepressivenatureofthesystemandpreventedtheorganisationoflegaldemonstrations.Oneofthemanifestationsoftheincreasedrepressivemeasuresweretheseveralyear-longprisonsen-tencesforparticipantsinlargedemonstrationsagainstPresidentPutinorgan-isedinBolotnayaSquareinMoscowinMay2012.Therisingnumberofcasesof incarcerationforpostingcertainmaterialsonline(forexampleonsocialmedia)isproofofaconstantincreaseoftherepressivenatureofthesystem37.Thegovernmentistryingtodisabletheorganisationoflegalprotests,forex-amplebyrefusingtograntconsentforsuchprotestsandlimitingthefreedomofoperationofnon-governmentalorganisations(forexamplelawshavebeenadoptedregardingso-called‘foreignagents’and‘unwantedorganisations’).Inthiswaytheyreducethefreedomofoperationofinstitutionswhichcouldpo-tentiallybecomeorganisersofprotests38.Moreover,thegovernmentisinvolvedinactionsaimedatintimidatingRussianelitesandthepotentialopponentsofVladimirPutin.Actionssuchastheassassinationoftheoppositionpolitician

35 DatacompiledbytheLevadaCentreregardingsupportforvariousgovernmentinstitutions:http://www.levada.ru/indikatory/odobrenie-organov-vlasti/

36 Ежемесячныймониторингсоциально–экономическогоположенияисамочувствиянаселения2015г.-май2016г.,ed.Т.М.Малева.

37 АнтиэкстремизмввиртуальнойРоссиив2014–2015годы,http://www.sova-center.ru/racism-xenophobia/publications/2016/06/d34913/

38 By the beginning of December 2016 seven foreign non-governmental organisations hadbeen considered unwanted, http://minjust.ru/ru/activity/nko/unwanted, and 148 havebeencategorisedas‘foreignagents’,http://unro.minjust.ru/NKOForeignAgent.aspx#

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BorisNemtsovinFebruary2015,inwhichofficersofthelawenforcementagen-ciescontrolledbyRamzanKadyrov,thePresidentofChechnya,wereinvolved,orthecampaignaimedatdiscreditingtheleadersofminoroppositionpartiesdecreasethechancesthatnewleaderswillemergewhocouldactasmouthpiecesofsocialdiscontent.

Thistactichasprovedsuccessfulandtheincreased repressive measures and bolstered state propaganda are contributing to a progressing atomisation of society and hampering society’s self-organisation.Thedeteriorationofso-cialmoodhasnoimpactonthelevelofsupportforthegovernmentasmeasuredinsurveys,asthisremainsveryhigh.Itseemsthattheseresultsarenotsomuchtheproductofactivesupportforthegovernmentasofthelackofalternatives.Inasituationwherethereisapotentialthreattothesystemofpower,thehighapprovalratingforthegovernmentdeclaredinsurveys,whichtheKremlinusestoconfirmitslegitimacy,wouldmostlikelyfindnoreflectioninactivesupportforthepresentregime.

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Iv. ouTlook

TheRussianeconomyhasbeenincrisisfortwoyearsnowandnothingindicatesthatitmayreturntothepathofeconomicgrowthwhichwouldbeperceptibletosociety.

Thereisafeelingwithinsocietythateconomicproblemsarenotofatemporarynature39,andthechangeinthefinancialsituation,thedeteriorationoflivingstandardsandconsumptionstandardswilllikelybedurable.Similarly,norapidchangesinthejobmarketshouldbeexpected.Accordingtoeconomists,themostlikelyscenarioforRussiainvolvesstagnationwhichwilllikelybeaccom-paniedbyacontinuationoftheformerprocessesonthejobmarket,includinginparticulartheincreasingimportanceoftheinformalemploymentsector.Duetoanumberofinstitutionalfactorswhichkeeptheunemploymentlevellow,anyrapidincreaseinthenumberoftheunemployedisunlikely.

Thegovernmentwilllikelyseekfurtherbudgetsavings.Spending cuts in the sectors of education, health care and public transportation will contribute to a further deterioration of living standards in Russia, form barriers to future development, and fuel social discontent. Itcannotberuledoutthatinthelong-termthepresenteconomiccrisiswillcauseadropinthenumberofchildrenbornperyearandhaveanimpactonthegeneralhealthofthepopula-tionduetohealthcarespendingcuts.However, it is unlikely that the deterio-ration of the financial situation and of the living standards of the Russian population will result in large-scale outbreaks of social discontent which could pose a threat to the regime. Whilefinancialresourcesaredwindlingandthepublicserviceseroding,Russianswillprobablypreferstabilityoverpoliticalchange.However,isolatedoutburstsofsociety’sfrustrationshouldbeexpectedintheformofprotestsfocusingontheintroductionofnewtaxesandfees,oncasesoftheviolationofemployees’rights,andthedeterioratingqualityofpublicservices.

Itshouldbeexpectedthatthegovernmentwillcontinuethepresentstrategy.Thesystem’sattentionwillbefocusedonpreventinganyeconomically-motivat-edrebellionandinthecaseofisolatedsocially-motivatedprotests,theKrem-linwillresorttoinsignificantconcessionsandshifttheresponsibilityforthe

39 Asurvey-basedresearchbyPWCshowsthattherespondentspointto2019astheyearinwhichthecrisisislikelytoend.Seehttp://www.pwc.ru/ru/press-releases/2016/consum-er-business-report.html

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situationontootherinstitutions.Inthecontextoftherisingconcerntheeliteshavewiththesocialsituation,therepressivenatureofthesystemwilllikelybesteppedupandthefreedomofoperationofindependentinstitutionswillbelimited.Asthepresidentialelectionplannedfor2018approaches,thenervous-nessofthegovernmentwillmostlikelyincreaseandthedefamatorycampaigntargetinginternalenemies,accompaniedbypropagandaactions,willprobablyintensify.

Although the strategy adopted by the government involving, for example,emphasisingthetemporarynatureoftheproblemsandpointingtoexternalenemieshassofarprovedsuccessfulandfosteredsocialunification,certainisolatedsymptomsofitswaningpotentialmaybeobserved.Inparticularmoreaffluentgroupsarebeginningtoassessthedirectionforwhichthecountryisheadinglesspositively;theyareobservingthedeterioratinglivingstandardswithgrowingconcern40.AlthoughtheRussianpeopleclaimtobereadytogiveupWesternproductsortravellingtoWesterncountriesinthenameofstrength-eningtheircountry’spositionintheinternationalarena,theydonotconsenttotaxrises,salaryfreezes,anincreaseintheretirementageandemploymentcuts.IfRussianpeoplebegintofeelhumiliated(forexampleasaresultofthedeterioratingqualityofpublicservices),outburstsofsocialdiscontentwillbelikely.Despiteitspoliticalapathy,Russiansocietyhassetcertainlimitsofitsconsentforreducingitslivingstandards.Goingbeyondtheselimitswillnotinstantaneously triggersocialrebellion. However,shouldtherebeapowerstrugglewithintheelite,resultingintheemergenceofanalternativetothepresentrulinggroup,thensocietywillbeunlikelytoofferactivesupporttothepresentregime41.

JAn StRzeleckI

40 Н.Тихонова,Стратификация…,op. cit.41 Onequotewhichillustratesthelackofinvolvementinshowingsupportforthegovernment

wasrecalledbysociologistAlexeiLevinsonfromtheLevadaCentreregardingVladimirPu-tinandwasoriginallyprovidedbyaparticipantinafocusgroupresearchsession:“Ithinkthathistimeisover,thatis,heiscurrentlyatthetop.Soitisinlifethatonegetstothetopandthenleavesinabeautifulfashion”.