Since the collapse of the Soviet Union in 1991 Russia has gone through a severe time of economic and social change.

Few people became very rich during the period of change but for the majority of the population the change meant a decline in living standard. The reforms aimed at transforming the centrally planned economy into a free market system caused trouble to the majortity of the Russians. For many people it was the experience of loosing social security. The health system is under developed, the living conditions are poor and alcoholism is widely spread among the population. Communications in Russia, in particular the Post system and the transportation network, are not up to European standards. Russian people do not trust the banks and therefore, rarely place the money for savings.

During Putin’s tenure as Prime Minister, and now President, the Russian society has seen some degree of stabilization. Although millions of people in the country live in poverty, a relatively low unemployment rate and a slightly increase in incomes indicate a step up in the social situation.

Terrorism is one of the threats for people living in Russia. As an example, the hostage taking in Beslan in 2004 has left hundreds of mourning families. Unfortunately, such tragedy may probably again.