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Lord Forbid to Become Competitive

Lord Forbid to Become Competitive
Peter Tardov 01.08.2007

Recently Goskomstat (or may be some other not less authoritative source) informed that in 2007 the average salary of the Russian increased and reached the highest for the newest history level - 500 US dollars a month! Actually, not too much, in fact on the average 500 means that someone has 100 000 and the majority - 150 - 200 $. At such enormous stratification of a society as in Russia, the average salary in 500 $ is the evidence of poverty of overwhelming part of the population.


In the Europe the situation is different there, even if the average salary will be, for example, 1500 euro, it is precisely known that the bottom threshold cannot be below 800 euro a month, less sum is simply forbidden to pay under the law! There, certainly, could be found poor men, immigrants, illegals, etc. whose means of subsistence are much less, but we now speak about official statistics.


Even on a background of former allies from the block we look palely: in Slovakia similar parameter made 705$, in Poland 800$ and in Czechia - already 1000 $! Good biys, there is nothing to be said, though for the European Union which these countries have entered recently, it's actually a low-income poverty threshold. And where are we, one can ask. With the salary of 500$ we are not in the Europe for sure but in the a... well, you understand me.


For the country applying to be referred to not even as a superstate but simply normal and civilized, the population is palish. But the matter is even not in it. On the average 500 c.u. is certainly better, than on the average 200 or God forbids, 50! It looks as if figures say: standard of living is on rise, only 10-15 years and we shall be equal to the Europe (not with the Western, certainly, but with the former countries of "social camp" for sure).


Wait and why, actually, our standard of living should grow? Why it has grown, for example, in Poland is more or less clear personally to me. There only for the last year the salary of workers on automobile factories (for example, GM) increased almost for 30%. But it does not happen on favour of employers. There was a pressure from the organized working-class movement, strikes, participation of citizens in political process, promotion of the interests in parliament (and the worthy salary is - the basic interest for the majority of population). So, the result was received due to the functioning of the institutes of civil society. And what do we have...


We received these notorious 500 dollars monthly only owing to falling of dollar exchange rate to rouble, well and also due to the increases of prices for oil and gas. That's all!


And where is the real growth of incomes of the population?


Where is the growth of salaries?


Where are decisions of problem of poverty?


Where at least legislative establishment of the minimal salary at a level of a living wage?


There is nothing of the kind and it's not planned at all. We have no national project "Struggle against Poverty". As well as the project of struggle against children's homelessness. It is easier to appeal to poor citizens to spawn, however these appeals look ridiculously and floutingly on a background of tens and hundreds thousand foundlings. While the state will not see to them and their poor parents, what is the reason for the appeal "to multiply poverty"? Try to breed children on 500$ (and for the majority - much less).


But another thing amazed more in the message: it turns out that even such salary level couldn't be increased too quickly so that to make harm to the competitiveness!


So, that is the essence: it's not important that there will be poor people further more if only we were competitive. Well, I shall tell here the following: Lord forbids to become competitive in comparison, for example, with China where average salary is not 500 but 150 c.u. We shall not sustain such competition and we don't need it. We cannot compete to Argentina in animal industry or with Israel in cultivation of peaches (geographical conditions are different). The same is with China where hundred millions hands are ready to work 10-12 hours for 100-150$ a month - we can't compete with it. It's not possible to live on it here, all the more to better demography.


So the sooner we forget about such competitiveness the better, we should think not about it but so that people (at least 90%) in this country can live well. How to make - is already care of the government. For what reason it is necessary, if not for this one?


I shall tell you in secret, from the global point of view, the Western Europe as well as the USA "are already not competitive" for a long time, however, the average salary there is all the same 20 times above than in China and 5 times than in Russia. It's interesting, why do they not hasten to become competitive?


And now the most important. Who needs competitiveness of Russia and what is meant? Why we should be afraid of the decrease of competitiveness? Who will lose from it?


Obviously, large national and international business is interested in the competitiveness provided by low costs of labour. Though in conditions of globalization borders between them are almost completely dim. Just as the borders between large business and the state, an oligarch and the official in Russia. It is really dangerous when the state is anxious to satisfy first of profit and competitiveness of business as if it were personal interests and don't care of the blessing of people, in this case the prospects of the population of such a state are grey.


Competitiveness means that the salary should not grow. 90% of population doesn't and won't have shares which grow due to the competitiveness and involved "investors" who are the pride of the official propagation do not hasten to raise a level of salaries of the Russians (on the factories of transnational corporation they usually pay as little as on the domestic ones).


So a commoner doesn't need any competitiveness of the country. It's not possible to smear bread with it. Only one shouldn't think that if to raise the salary of the population, the competitiveness will fall so, that all investors will run out of Russia. Nothing of the kind - the market is too attractive. One can raise an average salary even in 2 times - all the same it's favourable to do business in Russia. Besides consumer ability will increase, the market will grow.


So, misters frightening with decrease of competitiveness from increase of salaries just play cunning. It's not the matter that make them anxious but the decrease of own profit.


I think, conclusion is clear - one in struggle for increase of a standard of living should help himself.
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