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Russia Welfare Bill Sparks Anger
The BBC
August 3, 2004
About 200 Russian protesters have been rallying near the Duma, as parliament debates a controversial overhaul of the country's welfare system.
It is the key second reading of a bill which has sparked anger across Russia.
Under the plan, the Soviet-style system of automatic benefits, like free transport and subsidised medicine, would be dismantled.
It is part of a series of social reforms that President Vladimir Putin has committed to in his second term.
Millions of Russians receive automatic benefits. Under the new system, pensioners, invalids and war veterans would be allocated cash compensation instead.
Unpopular Reforms
The government argues it is a drive for fairness and efficiency that will clamp down on the problem of false claimants.
But the BBC's Sarah Rainsford in Moscow says the reform has sparked fury among pensioners, many of whom barely scrape by financially. They are certain the new law would make them worse off.
War veterans are offended: for them, subsidies are a mark of respect.
And many simply prefer benefits in kind to cash, which they fear will be eaten up by inflation.
President Putin, who was overwhelmingly re-elected in March, has promised a package of social reforms, taking advantage of Russia's current economic stability.
But removing these benefits threatens to alienate a large part of the population, our correspondent says.
The government is pressing ahead with its plan, backed by a public relations campaign on state television that is trying to win over the public.
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