You're reading: Putin: Income differentiation in Russia ‘unacceptably high’

Moscow - The wide gap in the living standards of Russians is unacceptable, and all measures must be taken to increase personal income, said Russian President Vladimir Putin.

“Russian regions and municipalities are facing many social problems. For example, the income differentiation in our country is still unacceptably high. Unfortunately, 13%, or approximately 18 millions, still live below the poverty line,” Putin said at a State Council session in Moscow on Tuesday.

“Yes, the number of people living below the poverty line is falling, but the level is still fairly high,” Putin said.

One such measure is “to determine the mechanism for raising public sector wages,” he said. “Regions and municipalities should start introducing an ‘effective contract’ and raising awareness by explaining to people the advantages of a new system of work pay,” Putin said.

Another way is to develop the economy, he said. “Resolution of social problems is directly linked with increase in productivity. We are planning to increase by a half by upgraded obsolete and creating high-tech production facilities and attracting long-term investment to every Russian region. And of course, this problem cannot be resolved without active involvement of the regions themselves,” the president said.

“All this points only to one thing: it is time to radically change attitudes towards the people who take responsibility for raising their welfare,” he said.

“We need to form public respect towards them and their work and create the atmosphere of openness and honest competitions in regions,” Putin said.

The Agency of Strategic Initiatives has developed uniform rules for supporting entrepreneurs, he said. “Implement and use these standards aimed at improving the investment climate,” the president said.