COVID-19 Pandemic as a Threat to Russia's Food and Economic Security

Abstract

The presented study examines the effect of the COVID-19 pandemic on the macro- and microeconomic environment of the Russian Federation and the state of the country’s food and economic security. Aim. The study aims to assess the impact of the pandemic and the associated socio-economic environmental factors on the deterioration of the country’s food and economic security. Tasks. The authors examine the key factors that have a destabilizing effect on the economy in the context of the modern COVID-19 pandemic; analyze the issue of ensuring food security under modern conditions; substantiate the correlation between food security deterioration, the growth of unemployment, and increasing share of financially disadvantaged citizens in the context of falling effective demand. Methods. This study is based on an interdisciplinary approach, analysis of scientific works of the Market Economy Institute of the RAS in the field of the country’s food and economic security, and information from public sources. The authors use analytical, statistical, and econometric research methods to examine the specific features of ensuring the country’s food and economic security. Results. The pandemic is shown to have a destabilizing effect on the economy due to a number of direct and indirect factors. Among the obvious factors are the decline in trade and industrial production, closure of service enterprises, and dismissal of employees, which leads to an increase in unemployment. Direct factors include a decline in personal income and effective demand and direct costs of measures to combat the pandemic. Indirect factors include the growth of welfare payments, financial support for enterprises, a decline in tax and other budget revenues due to the falling oil price. It is substantiated that increased unemployment and falling effective demand of the share of financially disadvantaged citizens have a direct negative effect on the food and economic security of the population. The problem of growing and selling products of private farms is shown to be crucial for ensuring food security. Conclusions. The consequences of the pandemic have a devastating impact on the economy and negatively affect food security. Therefore, it might take many moths or even years for the economy to return to its normal state.