Integrating Housing Wealth into the Social Safety Net : The Elderly in Moscow

Buckley, Robert ; Cartwright, Kim ; Struyk, Raymond ; Szymanoski, Edward

World Bank, Washington, DC

关键词: ADVERSE SELECTION;    AGED;    ASYMMETRIC INFORMATION;    CAPACITY BUILDING;    CAPITALIZATION;   

DOI  :  10.1596/1813-9450-3115
RP-ID  :  WPS3115

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The elderly in Russia have often beenamong those least able to cope with all the changes thathave taken place during the transition. Unlike the situationprior to reform-when pensions were stable-they now faceconsiderable uncertainty. If they have not been in poverty,many have been close to it. While the elderly haveexperienced difficulties, they have also been thebeneficiaries of a very large transfer of wealth. In Russia,as in most transition economies, housing was privatized,under giveaway terms. As a result, although many elderlyhouseholds have low incomes, based on their wealth, theirdeprivation would appear to be less serious. Unfortunately,in the absence of a developed financial system, it isdifficult to use this wealth without selling it. In Russia,all households, not just the elderly, have not been able toborrow. The existence of such large unencumbered wealthholdings by lower income elderly households creates anopportunity to provide what might be termed "housingsafety net insurance" at low public cost. More thanreducing the incidence of poverty, such schemes could allowalso many of the elderly to be able to move out of povertyand into middle income status. The authors explain why manyof the elderly in the former Soviet Union (FSU), not just inRussia, are likely to have so much housing wealth. Then theydiscuss how financial instruments could access this wealth.The authors also discuss the empirical situation of theelderly in Moscow, illustrating the potential demand forsuch products. Finally, they suggest that the results forMoscow are likely to be similar in many other FSU countriesbecause these countries also have elderly populations whoalso own a great deal of unencumbered housing wealth.