National Interests: Priorities and Security

Socio-economic disparities as a result of imperfect redistribution processes

Vol. 14, Iss. 7, JULY 2018

Received: 30 March 2018

Received in revised form: 22 April 2018

Accepted: 14 May 2018

Available online: 16 July 2018


JEL Classification: Е24, Е25, Е59, Е62, О11

Pages: 1235–1250

Ermakova E.R. National Research Mordovia State University, Saransk, Republic of Mordovia, Russian Federation

ORCID id: not available

Importance The article discusses economic relationships as part of redistribution of wealth and income that caused the socio-economic disparity nationwide.
Objectives The research traces the trade-off between the socio-economic disparity of Russia and distinctions of the redistribution process in terms of cross-country comparison.
Methods The research is based on analysis, synthesis, induction, deduction, methods of grouping, analogy, comparison and expert assessment, and comprehensive and systems approaches.
Results I perused proceedings by the Russian and foreign scholars on the socio-economic disparity in different countries. I found factors and causes that fueled the high disparity in Russia, determined the specifics of wealth and income redistribution in Russia at different milestones of historical development. The main focus is put on the current situation, when the existing disparity hampers the priority development nationwide and technological advancement and new industrialization of economy. Based on official statistics from Russia and Europe, data of the World Bank and Euromonitor International, I made a cross-country comparison by socio-economic disparity.
Conclusions The redistribution policy of Russia needs to be adjusted, thus requiring a progressive scale of taxation, incentives for higher labor productivity, pay increase within GDP, manufacturing enterprises in regions with high unemployment rates, investment in professional training, etc.

Keywords: socio-economic disparity, redistribution policy, new industrialization


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