Poverty as an economic category: Institutional aspect

Abstract

The article is devoted to the search for the causes of poverty and measures for its prevention in Russia’s regions. The socio-economic situation in the regions is studied by the example of Volgograd Oblast, in which high level of poverty hinders the favorable social modernization in the region. For preventing economic poverty, the authors substantiate the effective means of state regulation in the sphere of organization of labor payment in the form of establishment of minimum wages, but which lost its main functional role for provision of minimum guarantees of reproduction of work force. Population’s revenues and the level of poverty in the region are studied. The authors have developed a new classification of poverty, sub-divided into economic and social. The authors make conclusion on the necessity for reducing social poverty among working population. The necessity for measures aimed at qualitative change of the institutional environment is shown. The authors study possible measures aimed at struggle against poverty and possible methods of local administration’s influencing the course of economic development of the region. Development of intra-regional innovational clusters in the federal districts of Russia is offered – they would hinder the formation of social poverty.