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Books by Grigory Yavlinsky
NIZHNI NOVGOROD PROLOGUE
Economics and Politics in Russia
The Center for Economic and Political Research (EPIcenter)
Nizhni Novgorod-Moscow, 1992
 
SECTION TWO
NIZHNI NOVGOROD - THE FIRST STEP
CHAPTER 4. EXPERIENCE AND PRACTICE

4.2. SOCIAL SPHERE

4.2.3 Adjustment of the Population Monetary Incomes

 

Stages

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The first stage. Preparation of the methodical basis.

First of all, we mean the use of specific methods to estimate the consumer price index in terms of its representativeness and ability to reflect the area's specific features. The development of a method of calculation of the subsistence minimum and its regular calculation plays a major role. To determine the income and expenditure structure, we need to rotate the budget network and a number of goal-oriented selective surveys to find out the specific features of social security of specific population groups, above all, the most vulnerable ones.

The second stage. The formation of a respective legislative base.

It can be based on federal laws, if they exist. They should be qualified and complemented with the decisions of the local authorities. Other topical problems include the introduction of income declarations in the region's territory.

The third stage. Technical preparation for regular adjustments.

The introduction of a system of regular income adjustments presupposes that they are promptly recalculated, fixed and passed on to the recipient. Otherwise they will quickly be devalued by inflation and produce no effect. Consequently, the regional social security system must be computerised and a single network must be created.

The fourth stage. Resources supply. This is the most important issue in the preparation of an income adjustment system. All sources of social sphere financing in the region, including non-budget funds, profits of enterprises, insurance funds, etc. should be revised. A programme is made on the basis of an assessment of all possibilities. It may begin with the most vulnerable population groups or with small additional sums to people's cash incomes. The plan of action is chosen specifically for each case and depends on the regional situation. The sequence of the stages largely depends on the degree of development of methods and norms, and the financing of technical support and the launching phase of the income- adjustment measures.

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