Russia Makes Financial Literacy a Top Priority

On the heels of greater recognition of low levels of financial literacy in Russia, the government is rolling out more robust initiatives to arm its citizens with tools and resources designed to enable them to make more effective financial decisions.

Russia has a long history of investor uncertainty and lack of consumer confidence, which were further sparked by the disastrous default and shocks caused by financial pyramid schemes in the 1990s.  And the Russian populace still has difficulty selecting investments and making other informed financial decisions given the relatively low levels of financial literacy in the country.

The Russian government has been trying to increase financial capability for many years, but the last several months has seen a much more renewed and energized commitment to this matter.  During the country’s Group of 20 presidency this year, financial literacy was thrust into the spotlight, with Deputy Finance Minister Sergei Storchak stating that the issue of financial wherewithal and education is growing more and more urgent.  Addressing a filled hall local and foreign officials and economic leaders attending a conference on financial literacy held as part of Russia's G20 presidency, Storchak noted that financial illiteracy is a global problem and that Russia is focused on helping to address this issue.

While Russia’s interest and potential activism in global financial literacy affairs may stem from the country’s historical challenges in this area, the move by the Russian government to harness the power of greater financial literacy is nonetheless consistent with similar moves by other countries in the last year to prioritize financial literacy on their respective domestic policy agendas.  As this global trend continues, greater levels of financial education should raise the financial capabilities of individuals in both developed and developing countries going forward.