Effectiveness of institutional solutions for poverty reduction in the Russian Federation

The relevance of studying the problem of poverty is obvious, since poverty relief is a key socio-economic task of each state. The goal of this paper is to analyze the level of poverty and study the foundations of institutional mechanisms for overcoming it in today’s context using the example of the Russian Federation. When analyzing the effectiveness of institutional solutions to reduce poverty in Russia, the authors applied statistical and logical research methods. The paper hypothesized the importance of using effective institutional solutions to reduce poverty in Russia. The analysis of data on the population with substandard income in Russia demonstrates a downward tendency both in the absolute number and the proportion of the poorest segments of the population. To ensure the fight against poverty, the government implemented only a basic monetary approach in maintaining the institutional mechanism to support citizens but developed no institutional mechanism for combating poverty. To create an effective and qualitatively new institutional mechanism for combating poverty and its causes, the authors propose to rely on the following principles: a) development of public-private partnership (PPP) in solving the problem of poverty; b) attraction of public resources for economic development. The authors believe in the necessity of developing a universal methodology for determining the social and spiritual needs of the population adapted to the conditions and specifics of each region, which will allow for a more accurate response to the challenges of poverty in specific mesoeconomic systems of the state. The analysis of the socio-economic situation and the level of poverty in Russia allowed substantiating the need to develop an effective institutional mechanism for combating poverty adapted to modern realities. The implementation of the proposed ideas in the Russian Federation will help create the prerequisites for sustainable socio-economic development, improving the living standards of the population, and strengthening the social stability in the Russian regions.