Reforming the L'goty System

The Future of In-kind Benefits in Post-Soviet Russia

Author(s): Michael Rasell, Susanne Wengle
Editor(s): Jeronim Perovic, Robert Orttung, Matthias Neumann, Heiko Pleines, Hans-Henning Schröder
Series: Russian Analytical Digest (RAD)
Issue: 37
Pages: 6-9
Publisher(s): Center for Security Studies (CSS), ETH Zurich; Research Centre for East European Studies, University of Bremen
Publication Year: 2008

The monetization of social benefits was one of the most contested pieces of legislation during President Putin's time in office, prompting mass protests when it came into force in January 2005. The reform was designed to cash out in-kind benefits and reallocate responsibility for welfare services between the federal government and the regions. The new system was accompanied by rhetoric about targeting welfare resources to the poor and addressing inequalities in welfare provision. Although many elements of the Soviet-era l'goty system were retained, the reforms marked a significant overhaul of Russia's welfare provision and have important consequences for the regionalization of social policy and the introduction of means-testing.

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