Russians welcome state intervention as crisis grow - poll
Interfax
October 23, 2008
About 80 per cent of Russians would welcome state regulation of prices, an opinion poll shows, and over 50 per cent believe it would be useful to nationalize major enterprises and banks. The following is text of report by corporate-owned Russian news agency Interfax.
Moscow, 23 October: Over 50 per cent of Russians feel confused in the current financial and economic situation but support the government's anti-crisis efforts.
Only 11 per cent said that the current crisis in the economy had been caused by the banking crisis, the All-Russian Public Opinion Research Centre (VTsIOM) told Interfax, citing the results of an opinion poll carried out in 140 towns in 42 Russian regions, territories and republics on 27-28 September and 4-5 October 2008.
"Among other reasons, respondents name unreasonable social and economic policies pursued by great powers (7 per cent), the USA's policies (6 per cent), and expenses on the war in Iraq and other regions (5 per cent). Over half of Russians are confused about the crisis - 58 per cent could not answer this question," the sociologists said.
The poll showed that 46 per cent approve an increase in federal budget spending on anti-crisis measures, while 30 per cent believe that this is a damaging and useless measure and taxpayers' money should not be spent on this, and 24 per cent were undecided.
Fifty-six per cent believe that measures to curb prices and inflation are more important that saving banks from bankruptcy; 23 per cent of the respondents spoke in support of banks, and 20 per cent were undecided.
The Russians are split on ways to resolve the problem of economic investment: in equal numbers (35 per cent each) they supported the policy of cutting taxes on businesses in order to increase their ability to invest in the economy, or the policy of direct budget financing.
A majority of Russians (81 per cent) do not agree that ration cards could be useful during the crisis, 12 per cent support such measures, and the rest were undecided.
A majority of Russians (79 per cent) believe that it would be useful if the government controlled prices during the crisis; 13 per cent are against this, and the rest are undecided.
Fifty-eight per cent believe that it would be useful to nationalize major enterprises, 20 per cent don't think this would be useful and 22 per cent were undecided.
Fifty per cent believe that it would be useful to nationalize the banks too; 24 per cent don't approve of this measure and 26 per cent were undecided.
Information about changes in consumer preferences during the crisis showed that 32 per cent have been forced to give up expensive products and replace them with cheaper alternatives.
Approximately the same number of respondents (30 per cent) said they were looking for an additional income. Thirty per cent had to give up some products and foodstuffs.
Eleven per cent demanded a pay rise at work. Nine per cent used their savings on products and consumer goods, 14 per cent were undecided.
Russians still believe that property is the most secure form of investment and savings during the crisis (51 per cent), 19 per cent prefer to invest in gold, and 17 per cent believe that (state-owned) Sberbank is the safest place to keep savings.
Only 13 per cent believe that safest way to keep savings is to change them into roubles and keep them in cash. Eight per cent believe the safest way is to buy shares. Only 7 per cent prefer to buy foreign currency and keep it in cash.
Nineteen per cent have no clear idea how to protect their savings. Thirty-two per cent of Russians have bank accounts and 66 don't.
Among account holders, 59.4 per cent said they are not afraid to lose their money and 40.6 per cent said they are. Most often, account holders are afraid to lose their savings in banks because of uncertainty in political and economic stability (21 per cent) and the fear that the default of 1998 will be repeated (18 per cent). Among other reasons for concern, they named inflation (16 per cent) and the consequences of the world financial crisis (15 per cent). In addition, account holders don't trust the Russian banking system and fear banks might go bankrupt (13 and 12 per cent respectively). Another 6 per cent fear the devaluation of the rouble, and 12 per cent were undecided.
A majority of Russians don't know which sum is guaranteed by the savings insurance system (60 per cent). Twenty-two per cent could not name the sum and only 18 per cent could.
Forty-four per cent of the respondents believe the financial crisis will negatively affect the economic situation in Russia. Thirty per cent believe the situation will get worse and 14 per cent note that it is already getting worse.
Another 19 per cent believe that the financial crisis will positively affect Russia's economy; 16 per cent believe the world financial crisis will have no effect on Russia's economy and 22 per cent were undecided.