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Historical Development of Social Protection Russia

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Historical Development of Social Protection Russia Historical development of social protection Russia Over the past four centuries, Russia has Social Protection Floors in Action: 3rd period: experienced a wide diversity of political, social 1st period: efforts to 2nd period: and economic environments, with the national origins of rationalise rapid social and social protection system changing and adapting expansion protection, modernise to the concurrent ideologies and circumstances by Soviets slow the system from 1917 constantly. This came to a headway in the last development from 1991 to 1991 century with expansion to universal social until 1917 until the protection coverage of the population during the present Union of Soviet Socialist Republics (USSR) period. The development of social protection in Russia can Main lessons learned be divided into three periods. The first period • (1598-1917) saw the origins of the earliest social Expansion of coverage to all employees and protection schemes, in the form of scattered members of collective farms in a short period interventions by the State and mainly provided to of time was made possible by the strong will achieve to stories success 100 State officials, the military and workers in large and commitment of the State to implement factories. The second period (1917-1991) existed the Soviet socialist ideology and provide during the erstwhile Soviet Union and saw the protection to all workers and their families. expansion of universal social protection coverage • This was aided by strong centralised throughout the USSR. Following a comprehensive governance and powerful public institutions. 1.3SDG reform in 1956, all employees and members of • During the Soviet period, all enterprises were collective farms1 were covered. The third period State-owned which made it relatively easy for (1991-present) shows how the social protection the State to collect contributions efficiently system changed following Russia’s transition from without evasion by employers and thereby a centrally-controlled to a market economy. mobilize sufficient resources to provide a wide range of benefits to the population. However, 1.3 and SDG Protection Social Universal The Recommendation on Social Protection the nature of the system necessarily meant Floors, 2012 (No. 202) stipulates establishing that social dialogue mechanisms and tripartite basic social security guarantees to ensure access structures were relatively weak. to essential healthcare and income security for • Following the dissolution of the Soviet Union all, including children, people of working age and and transition to a market economy, the older persons. system faced new challenges such as poverty, The Sustainable Development Goal 1.3, part of unemployment, informality, etc., and is still the UN 2030 agenda, aims to implement undergoing reforms to tackle them. nationally appropriate social protection systems 1 In the USSR, a collective farm referred to one or many farms and measures for all, including floors, organized as an economic unit operated by members of a supported by the Universal Social Protection community under the supervision of the State. partnership (USP2030). This brief presents a successful experience of a country in extending social protection. ILO Social Protection Department | Russia: Historical development of social protection 1 1. First period (1598-1917): Origins of social protection shelter, food, clothes and 1649 Council Code of in Russia and “pre-socialist” period care for orphans, elderly Tsar Alexis people and people with The Russian Empire from 1533 to 1894 stretched from disabilities belonging to the Arctic Ocean in the north to the Black Sea in the peasant families. The south, from the Baltic Sea in the west to the Pacific parishes were financed Ocean and until 1867, into Alaska in the east. It had a through a special tax population of 125.6 million registered by the 1897 collected in favour of the census, the third highest in the world after China and poor people. India. The empire comprised diverse ethnic and religious groups of peoples with different levels of In 1827, a new decree on economic development. the payment of lump-sum pensions was adopted, The period of the Russian empire saw scattered covering high-level interventions by the State to provide social protection government officials only. The size of the lump-sum to the population. The first recorded implementation of benefit was established by the Emperor’s sole decision. a social protection intervention by the Russian State is from 1598. The Code of Law of Tsar Ivan IV of Russia At the end of the nineteenth century, with the Industrial mentions, among other provisions, that a widow having Revolution taking root in Europe, large thermal power no children after the death of her husband had the right plants, textile mills and steel production factories to receive a pension equal to two grivna1 a year. started to grow. Workers, both adults and children, operated in large factories and mines in extremely The 1649 Council Code of Tsar Alexis2 contained a larger unsafe conditions and without adequate protection, number of articles devoted to the rights of people to thus necessitating the introduction of basic social social security. The Code enshrined the right to a protection measures. The factories began to put in place benefit, after the death of a landowner, for the some elements of social insurance for their workers maintenance of his widow, children and elderly parents. mainly in the form of sickness and work injury benefits. The amount of the benefit depended on the previous However, the benefits were scattered, ad-hoc and salary of the breadwinner and the cause of death. For varied from factory to factory without any systemic example, benefits varied for those landowners who approach. On 15 May 1901, the “Provisional pension were called upon to perform military duties and died in regulations for mine workers who have lost the ability the course of execution of those duties and landowners to work” were adopted, marking the beginning of rights- who died outside civil service. The Code also enshrined based insurance for industrial workers. the right of nobles to receive a minimum allowance in case of resignation from duty or during education and In 1912, four laws on social insurance were adopted, training. which expanded social security to workers in large factories, mines and transportation companies.3 The All the social protection provisions thus far had been for first kinds of social insurance to be provided in Russia nobles and landowners alone. There were no social were sickness and accident insurance for employees. benefits for the common people such as peasants who Later, old-age, disability and maternity insurance were constituted the large majority of the population. Only introduced. during the reign of Empress Elizabeth from 1741 to 1762 did parishes became commonplace. They provided survived until 1849, when its articles were revised under the 1 Grivna was the national currency at that time which took the direction of Mikhail Speransky. form of bullions of precious metals, usually silver. 3 The laws only applied to enterprises with more than 20 2 The Council Code was a legal code promulgated in 1649 workers and which used mechanical power in their industrial under Tsar Alexis of Russia as a replacement for the processes, thus aiming to ensure continued national “Sudebnik” of 1550 introduced by Ivan IV of Russia. The code economic growth brought about by the Industrial Revolution. ILO Social Protection Department | Russia: Historical development of social protection 2 Therefore, until 1917, social security schemes in Russia After the war, the new government initiated a series of only covered State officials, the military and workers in political, social and economic reforms in the USSR. large factories. In 1917, the Russian revolution dissolved In 1956, the Soviet government carried out a the empire and paved the way for the creation of the comprehensive reform of the social protection system, USSR. Following this, the development of social mainly focused on pensions. As a result of the reform, protection gained new momentum. there was a significant expansion of social protection along the vertical dimension (increase in benefits) and 2. Second period (1917-1991): Social protection in the the horizontal dimension (increase in coverage). Social USSR protection programmes now covered all workers, The principal feature of communism, according to including workers in small enterprises and members of Marxist-Leninist ideology, was public ownership of the collective farms, and provided higher old-age, disability means of production, in an effort to end the exploitation and survivor pensions; sickness and maternity benefits; of workers by landowners and large employers. Right family allowances and compensation for work-related from 1917, the Soviet Socialist Government actively injuries. A minimum pension was introduced and promoted the principles of solidarity and social justice guaranteed to all workers. Medical and maternity care and proclaimed workers’ rights as the central element were provided separately under the public health of policy. The Government assumed the central role in system. No provisions were made for unemployment 4 guaranteeing and implementing social protection for insurance. people. To address the increased demand for security The social protection system of the former USSR can be during and after the First World War, a few days after considered as comprehensive in the provision of the revolution of October 1917, the establishment of a benefits and services and effective in its outreach. The new social protection system covering people for system was implemented and managed by a highly contingencies through a more systemic approach was centralised governance system and powerful public announced. institutions. During Soviet times, there was no private The system protected people in the event of temporary sector and the State was the only employer. Social inability to work due to sickness, pregnancy, childbirth, contributions were paid solely by the State-owned childcare or caring for sick relatives. It provided old-age, enterprises i.e.
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