Business | Economy
Kremlin says it will move to protect its middle class during slowdown
Russia must move decisively to protect the emerging middle classes from poverty in the economic slowdown brought about by the econ-omic crisis, Kremlin first deputy chief of staff Vlad-islav Surkov said on Friday.
- Reuters
- Published: 23:31 November 29, 2008
Moscow: Russia must move decisively to protect the emerging middle classes from poverty in the economic slowdown brought about by the econ-omic crisis, Kremlin first deputy chief of staff Vlad-islav Surkov said on Friday.
The crisis has hammered confidence in Russian stocks, bonds and the national currency and raised concerns about stability in the world's biggest producer of natural resources.
The Kremlin is trying to prevent the deepening crisis from stalling the longest Russian economic boom in a generation that led to soaring living standards for many sections of society.
One of the biggest questions for Russian observers is how the Russian middle classes, whose political apathy is the stuff of legend in Moscow, will react to the crisis.
"If the 1980s were the times of the intellectuals and the 1990s were the times of the oligarchs then the 00s can be seen as the epoch of the middle classes," Surkov said in a speech published on the Web site of the ruling United Russia party.
"The main task of the state during the slump must become the preservation of the middle class, the defence of the middle class from the waves of poverty and confusion that are coming from the West," he said in the speech.
Soaring consumption
The comments indicate the concern at the top of the Kremlin about the impact of the crisis now that the shine has come off the Russian economy, which boomed over the past 10 years on the back of high prices for raw materials and soaring consumption.
Surkov, who rarely appears in public and who is credited with helping to manage the transition of power from former president Vladimir Putin to Dmitry Medvedev, is one of the Kremlin's most influential officials.
"The slowdown of the economy demands decisive steps from the state ... to help the middle class survive next year without serious losses, to support levels of employment and consumption," Surkov said.
Surkov said the most important task was to convince the middle class that Russia was their state.
"We need to look after them - Russia is their country," Surkov said.
"Their leaders are Med-vedev and Putin - they will not allow the middle classes to be offended."
While president, Putin, 56, presided over a jump in annual nominal gross domestic product to $1.3 trillion in 2007 from $300 billion in 2000, the year he was elected president.
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