**Russia’s Population Boost Efforts Hit Economic Roadblock**
The Russian government wants to encourage people to have more children through financial incentives. But, the country’s economic limitations are getting in the way.
According to a report by the Institute for the Study of War (ISW), Russia’s economy is not strong enough to support its efforts to boost the population. The Kremlin is facing a long-term demographic crisis, with the population shrinking and aging.
Russia’s war on Ukraine has made things worse. The country now faces severe labor shortages, with an estimated 5 million workers missing by the end of 2023.
To address this issue, some regional governments are introducing maternity capital payments to encourage people to have more children. In one region, Nizhny Novgorod Oblast, Governor Gleb Nikitin announced plans to provide one million rubles (around $10,000) for each child from 2025 onwards.
However, the funding for this program is limited, with federal and regional funds being used only for the first two children. Any additional children will rely solely on regional funding.
**Economic Limitations Remain a Challenge**
The Central Bank of Russia has defended its high interest rates, which are also affecting the country’s economy. This makes it even harder for the government to implement effective policies to boost the population.
In short, while some regional governments are trying to address Russia’s demographic crisis through financial incentives, the country’s economic limitations remain a significant challenge to overcome.