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The Russian capital in recession – 10 observations from a Russian teacher
By Vlada 12 September 09
More info from a Russian teacher in London, or something you may be interested to know but may not learn in Russian lessons.
In Russian lessons in the last few months, my students have often asked me – is there a recession in Moscow as well? And if there is, what is it like? Well, the world is becoming smaller and smaller and we are connected more and more closely – so yes, we have recession too, and it’s worse than in the West (apparently), according to economists. And then you arrive in Moscow and can’t help wondering – where is this widely advertised recession and what are the signs of it? The prices are increasing as fast as ever, shopping centres and restaurants are packed with people, the glitz and the glamour are still there…
Here, for example, is an extract from a menu of a sea food restaurant in the centre of Moscow: “Bouillabaisse Imperial – for 4 persons – 24600 roubles (500 pounds); Lobster Florentine per 100 grams (!) – 890 roubles (20 pounds); Langoustine (flown in from France) per 100 grams – 1790 roubles (36 pounds)”, etc… And it was not empty when one of my friends was there recently!
At first sight, Moscow is as prosperous as it was a year ago. You need to look a bit deeper to see the problems. So I’ve just looked, and here are my 10 observations:
1. There are fewer people on the underground. Great news if you are a visitor! A year ago the public transport system was so overloaded that it was impossible to travel on some tube lines in the rush hour, and even at night the underground trains were full. With the coming of recession some people who lost their jobs in Moscow have gone back to their home towns.
2. The city generally feels a bit roomier and emptier, although the famous traffic jams are still horrendous, unbeaten by the crisis.
3. The construction and property industry is affected most of all. There is less building going on, and a lot of migrants working in construction have lost their jobs and are trying to find jobs elsewhere.
4. Property prices have dropped a bit (but not much), and there are more properties available. The cost of renting has gone down, and there are a lot of articles in the press about how to rent a flat cheaper in the recession.
5. Generally, prices are growing which doesn’t make much sense to me because in theory there should be sales in the shops, but I haven’t seen any. The price of food and most consumer goods is at the same level as in London; the price of clothes is higher. However, transport fares and utility bills are still much lower than in Europe (and especially the UK!)
6. It is said that a lot of office workers have lost their jobs or had to agree to pay cuts.
7. In Russian, recession is often called “crizis” (crisis). All shops and traders are actively using the theme of recession in advertising. Here are a couple of slogans I saw and heard in supermarkets: “Recession to the bourgeoisie, food to the people!” “Come and check out our crisis-busting prices!” “Anti-crisis sale is on!” All the discounts are called “anti-crisis prices”.
8. The consumption of beer and (I would imagine) vodka is soaring. Just like in the West, people are drowning their sorrows in alcohol, and it wouldn’t be Russia if they didn’t…
9. On TV, the “crisis” is constantly mentioned, but often in a cheerful manner, especially in TV ads. In newspapers, it is much talked about in various contexts: useful tips about what to do when you lose your job, how to survive in recession, how to save money etc are published along with serious analytical articles about the reasons and the outcomes of recession on a global scale.
10. The most remarkable thing though, is that most Russians, especially the older generation, are not really scared by the “crisis”: for people who have lived through the collapse of their country and its whole economy, seen the disintegration of the country’s ideology and way of life, a little thing like a recession is just a bit of a nuisance, really. I know how they feel – I am one of them!