Ivanova I.A.

Global experience of income redistribution to overcome poverty and inequality and the possibility of its use in Russia

Keywords: global experience of income redistribution, inequality, poverty, poverty level, income distribution between the rich and the poor, social justice, well-being of the population, low-income citizens

The problem of socio-economic inequality and poverty remains one of the key challenges for global development. In response, governments are implementing a range of fiscal and social policy measures aimed at income redistribution. For Russia, which is characterized by a high level of inequality, adaptation of this experience is especially relevant in the light of the large–scale tax reform that began in 2025 – transition to a progressive personal income tax scale. The purpose of the study is to analyze the global experience of income redistribution to overcome poverty and inequality and to assess the possibilities of its adaptation in the Russian Federation. Materials and methods. The study is based on a comparative analysis of income redistribution models used in countries with different socio-economic structures (Scandinavian, continental, Anglo-Saxon, Latin American ones). The methods of a systematic approach and comparative analysis were used to assess the effectiveness of tax and social mechanisms in foreign countries and the possibility of their use in modern Russian conditions. Results. Based on a comparative analysis of the models of state income redistribution (Scandinavian, continental, Anglo-Saxon, Latin American ones), the key instruments used in international practice were systematised. There are two main channels: fiscal (progressive personal income tax, taxes on property, inheritance, capital) and social (targeted cash transfers, social insurance, universal services). It was established that the maximum effectiveness is achieved in their combined use. In the context of the Russian reform in 2025 (transition to a five-step scale of personal income tax), an assessment of the new tax mechanism was carried out. It was revealed that, while creating an institutional framework, the reform has limited redistributive potential due to moderate progression (rates 13–22%), a half-hearted approach to taxation of passive income (13/15%), fragmentation of targeted support and lack of direct impact on the quality of social services. Conclusions. To achieve a significant reduction in poverty and inequality, comprehensive models are needed that combine fiscal and social policy instruments to redistribute income and address the concentration of wealth. Assessing the potential for adapting this approach in Russia suggests that the introduction of a progressive personal income tax scale is a necessary, but is just an initial step in the reform process. To unlock its potential, further consistent steps are required in three priority areas: 1) gradually increasing tax progressivity and developing wealth taxation (property, inheritance); 2) establishing a national system of targeted social assistance based on means testing; 3) targeted increases in investment in the quality and accessibility of key public services – healthcare and education.

About authors

Ivanova Irina A.

Senior Lecturer, Department of Finance, Credit and Economic Security, Chuvash State University, Russia, Cheboksary (gia605@mail.ru; )

Article link

Ivanova I.A. Global experience of income redistribution to overcome poverty and inequality and the possibility of its use in Russia [Electronic resource] // Oeconomia et Jus. – 2026. – №1. P. 10-18. – URL: https://oecomia-et-jus.ru/en/single/2026/1/2/. DOI: 10.47026/2499-9636-2026-1-10-18.