Abstract

This study presents a starting point in examining the issue of poverty in Russia as related to social strata. Since the Soviet Union’s breakdown Russian Federation has undergone its own unique political, social, and economic transition process. So, to learn by experience all pros and cons of almost quarter of a century old Russian transition economy outcome very important is scholar's engaging in research to introduce stratums of the population in aspect of the economic inequalities. Mainly, the term «inequality» means that people have unequal access to scarce and valued resources in society which might be economic or political. Because, the stratification might refer to the hierarchical arrangement of people in a society both on economic and on sociologic points of view. Inequality and social classes became important analytical concepts for explaining and solving the problems of Russian society after the 1990s. In order to find the ways out from the existing problems first needed to define socioeconomic status and social class in Russia. But in the time of global economics new challenges appear and they set new standards for sustainable development and eradication of poverty

Highlights

  • Even Karl Marx (1887) in his famous fundamental work «Capital» declared that «My standpoint, from which the evolution of the economic formation of society is viewed as a process of natural history, can less than any other make the individual responsible for relations whose creature he socially remains, much he may subjectively raise himself above them» [Marx K. (1995), p. 7]

  • Thereby, the globalization of economic relationships in which RF has been practically incorporated and the systemic transformations which have been started in Russia on 1992, like in the other postcommunist countries, are two interlacing processes and a mark of the turn of the century. Even in his fundamental work «Inquiry into the nature and causes of the wealth of nations», known as well with short name of this scientific research as «The Wealth of Nations», and which have been published in 1776, Adam Smith set the paradigm about demand and supply as a basic invisible mechanism of the self-regulation of free market economy to define prices on goods and services

  • It is beyond dispute that in a market economy, prices adjust to changes in demand and supply [Sysoev N.A. et al (2012); Rittenberg L. et al (2012);]

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Summary

Introduction

Even Karl Marx (1887) in his famous fundamental work «Capital» declared that «My standpoint, from which the evolution of the economic formation of society is viewed as a process of natural history, can less than any other make the individual responsible for relations whose creature he socially remains, much he may subjectively raise himself above them» [Marx K. (1995), p. 7]. Some experts underlined that for the Russian population changing of existing political policy and associated with it economic system transition like in the other postcommunist countries which tried to put in place the institutions of a market capitalist economy was a rather painful process [Abalkin L.I.

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