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The Kremlin to Cut Number of State Officials by 20%

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WHAT'S RUSSIAN FOR LAYOFFS?
DailyFeed
The bars in Moscow will probably soon be hosting a lot more bureaucrats, many of whom will doubtlessly need an extra shot of vodka to ease the pain of their looming unemployment.

The AFP reports today that Russia plans to save 43 billion rubles ($1.49 billion) by abolishing 100,000 federal civil service jobs by 2013.

In all, Russian President Dmitry Medvedev has ordered the government to draw up plans to cut the number of state officials by 20%, which is necessary, he says, to keep a lid on Russia's largely inefficient bureaucracy. (The number of bureaucrats had swelled by 130,000 over the past four years).

These Russian bureaucrats can perhaps take some comfort in the fact that their public service brethren around the world are now having a tougher time. Many bureaucrats are feeling pressure, as governments try and exercise some degree of greater fiscal discipline.

Here in the US, the AP reported that, since 2008, 20 states have rolled back pension benefits or seriously considered doing do -- and not just for new hires, but for current employees and people already retired.

Even Havana is reportedly on board, with the Cuban government about to fire more than 500,000 workers, or 10% of the 5.1 million it employs.

Around the world, notes Dr. Ed Yardeni of Yardeni Research, workers are now getting abandoned by their political patrons.

“Why are governments turning against workers?” Yardeni asks. “They don’t have any choice, as demonstrated by the draconian layoffs in Cuba. Worker paradises don’t work because no one is working to pay for them.”
POSITION:  No positions in stocks mentioned.
TAGS:  UNEMPLOYMENT, DEFICIT, RUSSIA, BUREAUCRATS    SOURCE:   AFP
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