The Russian Federation is the world’s largest country in terms of area, the largest producer and exporter of natural gas, crude oil, and many food products, which is why this state exerts a significant influence on others. If anything goes wrong there some countries will be rubbing their hands in delight that one of their competitors is getting weaker, while others will be in a difficult, situation, losing their main supplier or buyer.

Moscow is concerned about the demographic decline which negatively affects the country’s geopolitical, economic and military potential. Though the Russian population is not threatened with extinction in the foreseeable future, the media often describe the country’s demographic situation as difficult or critical. The labour force is said to be declining by 800 thousand workers every year. Immigration could be a solution but for a disproportionately high number of umie educated people among foreigners. A brain drain is yet another problem that the government needs to deal with.Certainly, pension expenditure will have to be increased because of the growing number of seniors or pensions will have to be reduced. There could arise a need to levy a higher income tax and extend the retirement age. As for now the authorities are focused on encouraging families to have children. Continue reading →