Economical crisis might turn political
The unfolding financial crisis will have grave consequences for the Russian political system, researcher Nikolay Petrov writes in a newspaper comment. The crisis reveals the shortcomings of the existing regime, he maintains.
“The crisis is so severe that economic measures alone will not be enough to combat it. The crisis is spilling over into the political and administrative spheres, compounding the shortcomings of the existing system”, the researcher writes in the Moscow Times. He does not exclude that the crisis might result in early presidential elections and Vladimir Putin’s return to the Kremlin. He also points at the hectic activities initiated by government-loyal party United Russia ahead of the March 2009 regional elections. “These measures will not accomplish much”, Petrov concludes, indicating that the party now might face a major crisis as people’s confidence decline. The researcher also believes that the promised hike in salaries is now putting additional pressure on regional authorities. “A decision to raise state employees’ salaries by 30 percent effective Dec. 1 puts regional authorities in a bind: Either they grant those pay hikes at a time when budget shortfalls are causing layoffs of government bureaucrats, or they must reduce the existing salaries of some employees to pay for the pay increases. To make matters worse, the minimum wage is scheduled to double in January. Instead of increasing incomes, this additional burden on businesses is likely to result in an increase in unemployment in many regions”, he writes.
