Tuesday, November 8, 2011

Russian Service Members Pay Increase - Troubling Trend?

Russian service members to earn almost as much as NATO counterparts: President Dmitry Medvedev has signed a law raising the salaries of Russian service personnel starting January 1, 2012.

Will the raises in salary come with an expected rise in professionalism?  Much of the Russian military structure and activity has always seemed to be based on cheap/unskilled labor of conscripts and a core of officers that are proficient.  It seems that the rank structure would have to change in order for the pay changes to seem feasible and responsible.  

This, coupled with Putin's recent remarks about the foreign policy of the United States, may be cause for a little concern.  Is Russia becoming a military state?
Russia’s military spending will begin increasing rapidly in 2012, from 13.9% of budget expenses in 2011 to 14.6% in 2012, 17% in 2013 and 18.8% in 2014. 
“Military spending will grow 1.5%-2% nearly every year, which is a considerable increase,” said Igor Nikolayev, chief strategist at FBK, a private audit firm. “Together with spending on security and law enforcement, this is more than one-third of all budget expenditures.” 
Increased military spending was one of the reasons behind the resignation of Finance Minister Alexei Kudrin, who urged a reconsideration of the military spending program. 
While military spending will grow, allocations for education and healthcare will be reduced. In particular, spending on education will fall from 5.1% this year to 4.7% in 2012, 4% in 2013 and 3.4% in 2014. Healthcare expenses will be even smaller: 4.6% in 2011, 4.4% in 2012, 3.7% in 2013 and 3.2% in 2014.

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