According to Maxim Mironov, professor of finance at IE Business School in Madrid, greed of the government is the main problem in Russia. Apparently, the officials are reluctant to use the finances accumulated in the Stabilization Fund.
During the coronavirus lockdown the issue of economic crisis remains acute in Russia. Many people do not have enough means of subsistence to survive it. Workers are not getting compensations during the quarantine. Self-employed entrepreneurs, in turn, cannot pay salaries in the absence of revenues. However, everyone has to buy food and pay utility bills.
According to Maxim Mironov, professor of finance at IE Business School in Madrid, greed of the government is the main problem in Russia. Apparently, the officials are not going to take any monies from the Stabilization Fund. Mironov believes that 85% Russians do not have any savings. If any, they will most likely keep people going for one month. These calculations make it clear that people are unable to stay home under the quarantine for two months living a normal life.
In an interview with the Echo of Moscow radio, Dr. Mironov said that the Russian state could provide financial aid to its citizens during the pandemic.
“Russia sufficient reserves to help 140 mln residents who are suffering from the epidemic,” said Mironov. “Moreover, the country is able to help people for a month or even two, three or four months. In other words, the government could easily feed the people for four months.
“Indeed, the greed of the authorities claiming that there is no money might play havoc on them. The explanation is very simple: if you impose self-isolation on the residents without any financial assistance, they will definitely violate it. And it will not be their fault, because people have to survive somehow. Judging by the number of cases during the recent days, the self-isolation regulations are not working.
In other countries, the restrictive measures already produced results after two weeks. Why is self-isolation so inefficient in Russia then? The reason might be that the government is greedy for money, and it happens not because Russia is a poor country. Let's take the poorer Argentina as an example. People there got from 20,000 to 30,000 rubles ($ 280 to $ 422) per family at the current exchange rate. Businesses were given money to be able to pay salaries, the opportunity to lend at zero percent, and so on. And Argentina has a really small budget.”