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Class Six – Year Five – Fall 2012
           Spring 2013
     Life in Modern Russia
   Adjunct Professor – Joe
          Boisvert
   Gulf Coast State College
       Encore Program
Russia on Dangerous Course
• As long as corruption exists on the scale that it does in
  Russia today, there is the real and present danger of
  weakening the Russian state with many dangerous
  potential outcomes.
• Those outcomes range losing control of Russia’s resource
  rich eastern region to having Russia’s nuclear arsenal fall
  in the hands of unsavory, rogue regimes.
• In other words, while the threat of reverting to Soviet
  Union is diminishing with the graying dividing line, there
  is a real possibility of losing Russia to something far more
  pernicious because of internal Russian weakness. This is
  crossing the dangerous red line.
Russian Mafia 2012
           A World History
           Documentary on The
           Russian Mafia. Details
           from the start of the
           Russian Mafia till now. In
           1995, from the start of
           Russian Mafia over 3
           million people were Killed
           including Mafia gangs,
           politician, Business men
           and ever journalist who
           figure them out
In 1994, Russia's Interior
Minister, Mikhail Yegorov,
estimated that the
number of organized
crime groups had grown
from 785 during
Gorbachev's reign to over
5,000. By 1996, the
number had grown to
almost 8,000. Today, no
one is really sure what the
number has grown to.
Russian Mafia Car
Here is just a simple comparison of prices
in Moscow and two other Russian cities as
                   of today:
 • Real Estate in Moscow (center): new one-
   room apartment is approximately
   $1,400,000.00.
   Real Estate in Moscow (suburbs): new one-
   room apartment is approximately
   $600,000.00.
   Real Estate in Samara (center): new one-room
   apartment is approximately $75,000.00.
   Real Estate in Kazan (center): new one-room
   apartment is approximately $60,000.00.
High Costs of Real Estate in Russian
                 Cities
• The city which has the most expensive
  housing in Russia is its capital.
  Actually, Moscow takes the 3rd place
  among the cities that have the most
  expensive real estate in the world.
  Prices for accommodation in Moscow
  suburbs are lower than in the center,
  but still much higher than in the rest
  of the country.
Deeply Divided Society
• Even a cursory examination of the social situation in
  modern Russia reveals a deeply divided society. An array of
  statistics documents the reality of two different worlds that
  hardly come into contact with one another. One—the
  world of wealth and luxury—is inhabited by an insignificant
  minority. The other—the world of social decline and an
  arduous struggle for life’s necessities—is inhabited by
  millions upon millions.
• Figures showing the distribution of wealth reveal the
  glaring nature of this social polarization. According to
  government data, the incomes of the very richest members
  of Russian society are 15 times those of the poorest—one
  of the highest levels of social inequality to be found among
  the world’s leading countries. In Moscow, this difference is
  53-fold.
Below the poverty line
•
  According to figures published by the World Bank at the
  end of last year, 20 percent of the Russian population
  lives below the poverty line, which is defined as a
  monthly income of 1,000 rubles (less than 30 Euros, or
  $38).
• The great majority of Russian families are teetering on
  the edge of poverty. The World Bank has calculated that
  an average decrease in income of 10 percent would
  produce a 50 percent rise in the poverty rate. The
  majority of the poor in Russia are to be found among
  working families headed by adults with average technical
  professional training, and in families with children
Average Income
• At the end of 2003, average monthly income was
  calculated at 2,121 rubles (60 Euros/$77 a month),
  with those who are employed receiving 2,300
  rubles (65 Euros/$83) and pensioners receiving
  1,600 rubles (45 Euros/$58). (range 58 to 830
• Those whose income falls below these levels are
  defined as poor.
• A second category, those who are badly off, includes
  families where per-capita income lies between
  2,121 and 4,400 rubles (60-126 Euros/$77-$161). A
  significant section of the population can be found in
  these two categories. Family Range (77-161)
Die Early
• The average Russian man can
  presently expect to live only to 58.
  That means married women, on
  average, are widowed for 15 years.
  This is due both to women’s greater
  life expectancy and to the younger
  age at which women marry.
•
    The wealthy end of the spectrum
  Then there is the other Russia. It finds its personification in
  figures like Roman Abramovich, governor of the remote
  region of Chukotka (just across the Bering Strait from
  Alaska) and owner of a controlling interest in the Russian
  oil giant Sibneft.
• He is considered the richest man in Britain, where he now
  resides. Two years ago, he acquired the English soccer club
  Chelsea for an astronomical sum.
• Russia is ranked third in the world for the number of
  billionaires, and thirteenth for having the largest
  enterprises.
• Taken as a whole, the fortunes of Russia’s billionaires
  amount to nearly half as much as the total value of the
  largest Russian enterprises. By comparison, in the US, this
  sum amounts to 6 percent.
Oil Executive Salaries

• The president of Lukoil gets $1.5
  million. If the business achieves
  certain goals, he enjoys a bonus
  of $2.2 million. The vice president
  gets $800,000 annually, with up
  to $1.1 million in bonuses.
The “New Russians,”
• The “new Russians,” as they are sometimes called,
  often live abroad, where they can be found in the
  most expensive hotels, clubs and restaurants.
• They possess racehorses, yachts and mansions.
  Practically every billionaire has his own yacht and
  airplane.
• They particularly enjoy buying expensive antiques
  and jewelry, as well as purchasing real estate in
  the most expensive areas of Europe’s capitals. A
  special attraction for them is London.
Skolkovo is a modern Russian center of
 research and development and new
            industrial zone,
Russian GDP
American Advertising
Modern Russian City
Poor Live Differently
Typical Russian Dinner
New Russia
What to Fear
• This fear is not principally founded in the economic or
  even the military power that this RSU might assert
  globally. The fear is founded in another important but
  more subtle lessons from the Cold War: Namely, RSU
  might once again become an ideological competitor
  and attempt to thwart Western values of democracy
  and capitalism.
  Modern Russia is a good place. Russians today enjoy
  the highest standards of living that they have ever
  experienced. Consumer goods and food are plentiful;
  barring the strain that rampant corruption puts on the
  system, the current economic system is capitalistic.
  There is also more political freedom and civic society
  empowerment than ever before.
Averages do          • However true these observations
                       may be, they are statements
Not Tell the Whole     about "averages." For example,
                       imagine three people who on
Truth                  average earn $100,000 per year.
                     • We can imagine this to be a
                       happy group based on averages,
                       but we can easily imagine one of
                       those three earning $300,000 per
                       year while the other two are
                       abjectly poor and earn nothing.
                       The point is that averages
                       sometimes yield useful
                       information but often deceive.
                       So, while - on average - Russians
                       have better lives than ever
                       before, the situation is not
                       universally true for every
                       Russian.
Young Have Different • .
Ideas Than Old

Younger Russians either do not
know the Soviet Union or spent
so little time there that its
existence does not registry with
them meaningfully.

They are used to having open
access to good, seeing Bentleys
and BMWs cruise the streets,
and their peers become wealthy
international tennis stars by
virtue of their talent and work
Alcohol Big
Problem
Problem with the Young
New Diversity of Religion in
Russia
New Diversity of Religion
Problems With the Elderly
Not Enough Aid for Wounded Warriors
New Russia to Much Like Old Russia

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Russian class 6 year 5 life in modern russia

  • 1. Class Six – Year Five – Fall 2012 Spring 2013 Life in Modern Russia Adjunct Professor – Joe Boisvert Gulf Coast State College Encore Program
  • 2. Russia on Dangerous Course • As long as corruption exists on the scale that it does in Russia today, there is the real and present danger of weakening the Russian state with many dangerous potential outcomes. • Those outcomes range losing control of Russia’s resource rich eastern region to having Russia’s nuclear arsenal fall in the hands of unsavory, rogue regimes. • In other words, while the threat of reverting to Soviet Union is diminishing with the graying dividing line, there is a real possibility of losing Russia to something far more pernicious because of internal Russian weakness. This is crossing the dangerous red line.
  • 3. Russian Mafia 2012 A World History Documentary on The Russian Mafia. Details from the start of the Russian Mafia till now. In 1995, from the start of Russian Mafia over 3 million people were Killed including Mafia gangs, politician, Business men and ever journalist who figure them out
  • 4. In 1994, Russia's Interior Minister, Mikhail Yegorov, estimated that the number of organized crime groups had grown from 785 during Gorbachev's reign to over 5,000. By 1996, the number had grown to almost 8,000. Today, no one is really sure what the number has grown to.
  • 6. Here is just a simple comparison of prices in Moscow and two other Russian cities as of today: • Real Estate in Moscow (center): new one- room apartment is approximately $1,400,000.00. Real Estate in Moscow (suburbs): new one- room apartment is approximately $600,000.00. Real Estate in Samara (center): new one-room apartment is approximately $75,000.00. Real Estate in Kazan (center): new one-room apartment is approximately $60,000.00.
  • 7. High Costs of Real Estate in Russian Cities • The city which has the most expensive housing in Russia is its capital. Actually, Moscow takes the 3rd place among the cities that have the most expensive real estate in the world. Prices for accommodation in Moscow suburbs are lower than in the center, but still much higher than in the rest of the country.
  • 8. Deeply Divided Society • Even a cursory examination of the social situation in modern Russia reveals a deeply divided society. An array of statistics documents the reality of two different worlds that hardly come into contact with one another. One—the world of wealth and luxury—is inhabited by an insignificant minority. The other—the world of social decline and an arduous struggle for life’s necessities—is inhabited by millions upon millions. • Figures showing the distribution of wealth reveal the glaring nature of this social polarization. According to government data, the incomes of the very richest members of Russian society are 15 times those of the poorest—one of the highest levels of social inequality to be found among the world’s leading countries. In Moscow, this difference is 53-fold.
  • 9. Below the poverty line • According to figures published by the World Bank at the end of last year, 20 percent of the Russian population lives below the poverty line, which is defined as a monthly income of 1,000 rubles (less than 30 Euros, or $38). • The great majority of Russian families are teetering on the edge of poverty. The World Bank has calculated that an average decrease in income of 10 percent would produce a 50 percent rise in the poverty rate. The majority of the poor in Russia are to be found among working families headed by adults with average technical professional training, and in families with children
  • 10. Average Income • At the end of 2003, average monthly income was calculated at 2,121 rubles (60 Euros/$77 a month), with those who are employed receiving 2,300 rubles (65 Euros/$83) and pensioners receiving 1,600 rubles (45 Euros/$58). (range 58 to 830 • Those whose income falls below these levels are defined as poor. • A second category, those who are badly off, includes families where per-capita income lies between 2,121 and 4,400 rubles (60-126 Euros/$77-$161). A significant section of the population can be found in these two categories. Family Range (77-161)
  • 11. Die Early • The average Russian man can presently expect to live only to 58. That means married women, on average, are widowed for 15 years. This is due both to women’s greater life expectancy and to the younger age at which women marry.
  • 12. The wealthy end of the spectrum Then there is the other Russia. It finds its personification in figures like Roman Abramovich, governor of the remote region of Chukotka (just across the Bering Strait from Alaska) and owner of a controlling interest in the Russian oil giant Sibneft. • He is considered the richest man in Britain, where he now resides. Two years ago, he acquired the English soccer club Chelsea for an astronomical sum. • Russia is ranked third in the world for the number of billionaires, and thirteenth for having the largest enterprises. • Taken as a whole, the fortunes of Russia’s billionaires amount to nearly half as much as the total value of the largest Russian enterprises. By comparison, in the US, this sum amounts to 6 percent.
  • 13. Oil Executive Salaries • The president of Lukoil gets $1.5 million. If the business achieves certain goals, he enjoys a bonus of $2.2 million. The vice president gets $800,000 annually, with up to $1.1 million in bonuses.
  • 14. The “New Russians,” • The “new Russians,” as they are sometimes called, often live abroad, where they can be found in the most expensive hotels, clubs and restaurants. • They possess racehorses, yachts and mansions. Practically every billionaire has his own yacht and airplane. • They particularly enjoy buying expensive antiques and jewelry, as well as purchasing real estate in the most expensive areas of Europe’s capitals. A special attraction for them is London.
  • 15. Skolkovo is a modern Russian center of research and development and new industrial zone,
  • 21.
  • 23. What to Fear • This fear is not principally founded in the economic or even the military power that this RSU might assert globally. The fear is founded in another important but more subtle lessons from the Cold War: Namely, RSU might once again become an ideological competitor and attempt to thwart Western values of democracy and capitalism. Modern Russia is a good place. Russians today enjoy the highest standards of living that they have ever experienced. Consumer goods and food are plentiful; barring the strain that rampant corruption puts on the system, the current economic system is capitalistic. There is also more political freedom and civic society empowerment than ever before.
  • 24. Averages do • However true these observations may be, they are statements Not Tell the Whole about "averages." For example, imagine three people who on Truth average earn $100,000 per year. • We can imagine this to be a happy group based on averages, but we can easily imagine one of those three earning $300,000 per year while the other two are abjectly poor and earn nothing. The point is that averages sometimes yield useful information but often deceive. So, while - on average - Russians have better lives than ever before, the situation is not universally true for every Russian.
  • 25. Young Have Different • . Ideas Than Old Younger Russians either do not know the Soviet Union or spent so little time there that its existence does not registry with them meaningfully. They are used to having open access to good, seeing Bentleys and BMWs cruise the streets, and their peers become wealthy international tennis stars by virtue of their talent and work
  • 28. New Diversity of Religion in Russia
  • 29. New Diversity of Religion
  • 30. Problems With the Elderly
  • 31. Not Enough Aid for Wounded Warriors
  • 32. New Russia to Much Like Old Russia