Effects on Beneficiaries of the 'Monetization' of Privileges in Russia: Initial Experience in Saratov Oblast

摘要

In January 2005, Russia implemented a major overhaul of its social assistance system. The principal hallmark was the cashing out or monetization of some benefits previously provided on an in-kind basis. Using household survey data, this article measures the social and economic effects of the monetization of transportation privileges in the Saratov region and analyzes the attitude of citizen categories now receiving privileges to the further transformation of their privileges into cash benefits in the future. With respect to the types of beneficiaries that fared relatively better and worse through the reforms as measured by changes in consumption, local travel, and perceived changes in their standard of living, the clearest finding is that rural beneficiaries fared better than their urban counterparts. This was expected because monetization was rnimplemented for transportation benefits that are used primarily by urban residents. With respect to outcomes by income class, there is a broad pattern of beneficiaries in households with lower economic resources faring less well, although the overall effects are not large. Beneficiaries' responses to questions about further monetization of specific benefits overwhelmingly favor monetization, with the conspicuous exception of benefits for housing and communal services where sector-specific factors are at work. This is particularly telling given the poor implementation of the first wave of reforms.