"Based on national legislation passed in the summer of 2004, Russia implemented wide-ranging changes to its system of category-based social benefits in January 2005. Implementation difficulties made headlines around the world. This article discusses the structure of the reforms and examines the extent to which they: (a) reduce or eliminate the categorical allocation of public resources; (b) replace in-kind benefits with cash transfers; and (c) target benefits, in whatever form, to low-income people. The overall conclusions are that the reforms score very badly against criteria (a) and (c), but get a middling score for cashing-out benefits."

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