Russian Economy Guzzling Itself
Wage racing will not be good in view of the nowadays low labour productivity in the country.
VLADIVOSTOK. March 31. VOSTOK MEDIA – The government of Russia has recently released new forecasts about Russia’s economic development.
According to the concept of the Russian Ministry of Economic Development and Trade (MEDT) the national average wage will rise up to $2700 by 2020 since the present $500, the Smena newspaper reports.
Alarming voices argue that wage racing will not be good in view of the nowadays low labour productivity in Russia. President Putin repeatedly announced that labour productivity in the United States is four times higher than in Russia. The unbalance is still not notable but can play negative role in the nearest future.
According to a research made by a Russian auditing company that analyzed the national "wage capacity"– a ratio of the summed wages of employed population and the GDP – reached the record level of 35 %. This means one third of a GDP ruble is used for paying wages. By this index Russia has outrun many European countries long time ago. The trend can eventually lead to not to increase of the population’s income but to its reduction as the national economy guzzles itself.
Taking into account the MEDT forecasts the growth of wages will not be limited till 2020. In this case Russia will have to make its best to lift the national labour productivity. Countering ineffective management, inefficient administration and outdated technologies shall affect the labour productivity so that the rise of income will reflect the real economic growth but not just favorable positions at the world’s oil market.
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