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International Labor Organisation |
"The current stage in Russia’s development could be characterized by the fact that, side by side with the social poverty that affects such traditional sections of the population as large families, families with only one parent or many dependants, and single retired persons and disabled persons, there is a growing rate of so-called economic poverty, where a low level of income prevents a great number of able-bodied people from reaching the normal living standards," said Alexander Potchinok, Minister of Labour and Social Development, while opening the three-part national Seminar on Minimum Standards of Social Security, which was held in Moscow on May 15.
Mr Potchinok noted that during the formation of Russia’s market economy salary levels have been affected most of all. More than 65% of workers in such areas as agriculture, health services, education and culture get a salary that is below the subsistance minimum. In 2000, 44 million people, or 30 % of Russia’s population, had an income below the subsistance minimum. The income gap is also growing in all the regions of the country.
As the Minister stressed, one of the main tasks of the government under current conditions is to provide a substantial increase in wages, pensions and allowances. Starting July 1, 2000, the minimum salary was raised to 132 rubles per month, and since January 1, 2001, it has been 200 rubles per month. On July 1, 2001, it will be raised to 300 rubles per month (equal to $10 USD – The UN in Russia), and as is currently planned, to 1742 rubles in 2005. This past year, real wages were increased by 22%. Mr Potchinok also spoke about the measures that were taken to raise the living standard of pensioners.
Since it concerns almost everyone, social security could be ranked among Russia’s most relevant and difficult problems. Increasing unemployment, the falling birth rate, and an increase in the number of industrial injuries are not the only consequences of Russia’s current economic situation. Today, nearly all categories of the population are vulnerable, and all of them need to be protected by the State.
It is hardly surprising therefore that the seminar attracted the attention of all the parties involved, including government officials, social security institutions, workers' and employers' organizations, specialists in social law, and the international agencies in Moscow. The seminar was organized jointly by the Russian Federation Ministry of Labour and Social Development and the International Labour Organization, with support from the Council of Europe. Besides Mr Potchinok’s address, the participants also heard speeches of Ms Gabriella Bataini-Dragoni, Director of the Social Affairs and Health of the Council of Europe, Ms Angelika Nussberger, Expert from the Max Planck Institute of International Social Law (Munich), and ILO experts.
The seminar was convened to examine Russia’s official social security policy within the context of ILO and European standards and to determine the degree to which they correspond. Other issues raised included the problems and reforms in Russia’s pension system, family allowances, social insurance, etc.
"The seminar allowed us to draw the attention of specialists and other concerned persons to the most important issues, problems and shortcomings of the social security system in Russia", noted Zinaida Suslova, Adviser to the State Duma Women, Children and Youth Affairs Committee, and one of the participants of the seminar. International standards, particularly those of the ILO, might undoubtedly become one of the most important reference points in this area. Unfortunately, this is being hindered, not only by the difficult economic situation in Russia, but also by the fact that ILO Convention No. 102 on Minimum Standards of Social Security, one of the most important of all international instruments in this area, has not yet been ratified by Russia.
"I hope that this seminar will be a step forward toward this country’s joining the Convention, and to the development of a better social security system in Russia", Zinaida Suslova stressed.
For further information on the seminar please contact Maria Evseeva, ILO Moscow Office, tel. (7 095) 933-0896,
fax 933-0820, e-mail: evseeva@ilo.ru
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ODCCP United Nations Office for Drug Control and Crime Prevention |
The volume of Russia’s illegal economy exceeds 40% of the country’s Gross National Product. The absence of fundamental laws for regulating the legalization of criminal proceeds remains the most serious obstacle in Russia’s ability to control money laundering, both internally and at the international level. The absence of anti-money laundering legislation has led the Financial Action Task Force (FATF) – an international organization established to facilitate multilateral efforts in combating financial crimes – to name Russia last year among its black list of 15 countries that were uncooperative in the international fight against money laundering.
Since then, Russia has taken a number of important steps to improve the situation, including ratification of the European (Strasburg) Convention on Money Laundering, and the State Duma Banking Committee’s approval of the anti-money laundering bill submitted to Parliament by the government last May.
Furthermore, the Russian government hosted the International
Conference on Illegal 
Economy
and Money Laundering, held in St. Petersburg on June 5-6, 2001. The forum was
organized jointly with the United Nations Office for Drug Control and Crime
Prevention (UNODCCP).
Months of preparation for the conference ended with the drawing up an agenda balanced enough to reflect both international organizations’ and experts’ concern over current trends in the development of financial markets in countries with transitional economies, and Russia’s efforts to control legalization of illicit proceeds and prevent capital outflow.
Honored guests UN Under-Secretary-General and Executive Director of the UNODCCP Pino Arlacchi, Russia’s Minister of Internal Affairs Boris Gryzlov, and Vladimir Yakovlev, the Governor of St. Petersburg welcomed the Conference’s participants during the opening ceremony, held in the very center of St. Petersburg at the magnificent Palace of Science – the former Grand Duke Vladimir’s Palace - located on the Dvortsovaya embankment of the Neva River.
Over 130 experts representing law enforcement agencies from various countries, as well as international organizations such as Interpol, Europol, FATF, the World Bank, European Commission, Council of Europe, UNODCCP, and the Russian Ministry of Finance, Office of the Prosecutor General, Federal Commission on Securities, Central Bank, participated to the Conference. During the two days working sessions, they considered the nature, characteristics and estimated size of the illegal economy, its impact on political and economic developments, and current trends in crime. Techniques for money laundering and the movement of illegal and criminal assets, the legislative foundations for combating money laundering at the international level, as well as international cooperation, the use of international agreements and mutual legal assistance treaties, and the role of the international organizations in promoting the repatriation of illegally transferred funds were also discussed.
Besides participating in the working sessions, an opportunity was offered to the conference’s guests to get acquainted with Russia’s northern capital during the glorious White Nights season. The cultural programme included a number of tours to museums and around the city, a boat trip along various rivers and channels, and a visit to the famous Mariinskii Opera and Ballet Theatre.
Speaking at the press briefing at the end of the Conference, Pino Arlacchi pointed out that Russia’s hosting and active participation in the discussions indicates the country’s obvious readiness to prevent organized crime and other criminals from taking advantage from its financial system, and to become a part of the cooperative international effort to combat this serious crime. Pino Arlacchi and Boris Gryzlov were both of the opinion that the Conference was not a purely scientific discussion, but rather a good chance for international experts and the Russian side to discuss the real problems they faced in fighting money laundering, and to find a common solution to these problems.
