The rental nature of the Russian economy as a risk factor in the welfare state development in the Russian Federation

The study analyzes the impact of the Russian rental economy on the establishment of the welfare state. Russian welfare state has emerged from a global social and economic crisis in the 1990s rather than against a background of its long historical development. This has led to its chaotic evolution caused by the need to meet rapid changes in the external environment instead of a common strategy. Russian economy is of a rental nature since the state budget is mainly based on the natural resources extracted by a small group of people, and it does not involve any human labor investment. Since small groups of people generate much of the country’s revenue, modern society faces a cluster of social, technological, political, and economic risks. The research analyzes the risks affecting the welfare state development. One should avoid creating the welfare state model that fails to consider people as equal partners and treats them as supplicants in need of any resources to avert social unrest. It is impossible for this model to affect the emerging social processes because of a flawed communication with society and its over-society nature.