Our Own Private Romania

ilieni-dinu-lazar

Wages in Russia Catch Up to Wages in Romania
Anastasia Manuylova
Kommersant
July 23, 2018

Wages in Russia are higher than those in the other CIS (Commonwealth of Independent States) countries and comparable with those in Central and Eastern European countries. Those are the findings of the experts at the Higher School of Economics (HSE) who have issued the report “Wage Comparisons among Countries in 2011–2017.” They used purchasing power parity (PPP) indicators to do their calculations.

As 2017 came to a close, Russia was the leader in terms of wages among the CIS countries. Taking PPP into account, the average monthly wage in Russia last year amounted to $671. Kazakhstan lagged behind this benchmark less than the other CIS countries. Its average monthly wage in 2016–2017 was $459 and thus lower than the average wage in Russia by 30–40%. Tajikistan was the farthest behind, with an average monthly wage of $147. The study’s authors note the wage gap between Russia and the other CIS countries has continued to widen since 2011. In particular, this has been due to a deterioration of economic conditions in Azerbaijan, Belarus, and Kazakhstan in  2015–2017.

However, Russia’s position looks less attractive when compared with other groups of countries. Thus, among the countries of Central Europe, the level of wages in Russia is comparable only with Romania ($678 a month) and Bulgaria ($602 a month). The average monthly wages in Czech Republic and Croatia, for example, are considerably higher than the average monthly wage in Russia (by 80–90%), despite a downward trend in wages that has been observed since 2011. There is also a considerable gap between wages in Russia and wages in Poland and Hungary. In 2017, they outpaced Russia by 60–70%.

Among the BRICS countries, Russia exceeds the same indicator for Brazil by 5%. This gap has been narrowing in recent years, however. Wages in China outpaced wages in Russia as early as 2014, and the gap between the two countries is now almost 30%. In the long term, as the HSE’s Svetlana Biryukova, the report’s co-author, explains, if the current wage trends in all the countries, including Russia, continue, Russia would retain its leadership only among the CIS countries, but would find itself in last place among Central and Eastern European countries.

Translated by the Russian Reader. Photo courtesy of romaniatourism.com

2 thoughts on “Our Own Private Romania

  1. A wage by itself doesn’t mean that much. What matters is how much said wage can buy. Prices of essential goods, services, and so on compared to an average wage. Countries with lower wages also tend to have lower prices, what’s nasty is when a country has low average wages and high costs of living. Free services/privileges (like in the USSR) might also contribute to the overall picture.

    1. Apparently, the concept of “purchasing power parity,” mentioned in the very first paragraph and linked, by me, to a Wikipedia article explaining what it means, means nothing to you. Neither, apparently, do you live in Russia, or you wouldn’t have made the strange claim that “countries with lower wages also tend to have lower prices.” Russia’s major cities, especially Moscow and Petersburg are every bit as expensive as major cities in Europe and North America. “Free services” went out the window with the Soviet Union, and what free services are left are usually so miserable that only the extremely poor and aged try to access them, usually to their own bitter regret.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s